Full Text of HB3388 95th General Assembly
HB3388sam001 95TH GENERAL ASSEMBLY
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Sen. Deanna Demuzio
Filed: 7/25/2007
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| AMENDMENT TO HOUSE BILL 3388
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| AMENDMENT NO. ______. Amend House Bill 3388 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 XXIII as follows: | 6 |
| (220 ILCS 5/Art. XXIII heading new)
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| ARTICLE XXIII. CLEAN COAL DEVELOPMENT PROGRAM LAW | 8 |
| (220 ILCS 5/23-101 new)
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| Sec. 23-101. Short title. This Article may be cited as the | 10 |
| Clean Coal Development Program Law.
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| (220 ILCS 5/23-105 new)
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| Sec. 23-105. 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 by reducing market energy prices and electric | 23 |
| capacity prices through increased supply. Such benefits will | 24 |
| include lower and more stable prices for electricity.
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| (220 ILCS 5/23-110 new)
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| Sec. 23-110. Definitions. For the purposes of this Article, | 2 |
| the following terms shall be defined as set forth in this | 3 |
| Section. | 4 |
| The terms defined in Section 16-102 of the Public Utilities | 5 |
| Act have the meanings ascribed to them in that Act. | 6 |
| "Actual total capital costs" means, as more specifically | 7 |
| set forth in the service agreement or agreements for a clean | 8 |
| coal project, the total initial capital costs recoverable by | 9 |
| such clean coal project pursuant to its wholesale sales tariff | 10 |
| upon completion of such clean coal project. | 11 |
| "CCN" means a certificate of convenience and necessity. | 12 |
| "Clean coal project" means any existing or planned electric | 13 |
| generating project that has a wholesale tariff pursuant to the | 14 |
| Federal Power Act and that is designed (1) to have a nameplate | 15 |
| capacity of no less than 400 megawatts gross, (2) to be | 16 |
| directly interconnected with a participating electric utility, | 17 |
| (3) to utilize integrated gasification combined cycle | 18 |
| technology, and (4) to utilize as its primary fuel or feedstock | 19 |
| coal having high volatile bituminous rank and greater than 1.7 | 20 |
| pounds of sulfur per million Btu content and for which a final | 21 |
| air permit, whether or not subject to a petition for review | 22 |
| before the Environmental Appeals Board, has been issued that | 23 |
| describes the project as having a designed nameplate capacity | 24 |
| of no less than 400 megawatts gross. When warranted by the | 25 |
| usage, "clean coal project" shall mean the owner, operator, or | 26 |
| lessee of a clean coal project. |
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| "Core plant construction cost ceiling" means, as more | 2 |
| specifically set forth in the service agreement or agreements | 3 |
| for a given clean coal project, $2,500 per kilowatt of net | 4 |
| design capacity (excluding for this purpose any power required | 5 |
| for carbon capture) of a clean coal project expressed in | 6 |
| January 2007 nominal dollars, adjusted for inflation using the | 7 |
| producer price index published by the U.S. Bureau of Labor | 8 |
| Statistics to the date upon that the core plant construction | 9 |
| cost quote for such clean coal project is expressed.
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| "Core plant construction cost quote" means, as more | 11 |
| specifically set forth for a clean coal project in the | 12 |
| applicable service agreement or agreements, a price quote or | 13 |
| estimate prepared by a reputable engineering and construction | 14 |
| services firm (or group of firms) for the costs payable to one | 15 |
| or more contractors or suppliers for the engineering, | 16 |
| procurement, and construction of the core plant facilities | 17 |
| comprising a clean coal project. Such core plant facilities | 18 |
| shall include all civil, structural, mechanical, electrical, | 19 |
| control, and safety systems associated with the following major | 20 |
| core plant functional areas: air separation, coal grinding and | 21 |
| slurry preparation, gasification and high temperature | 22 |
| synthesis gas cooling, low temperature synthesis gas cooling, | 23 |
| acid gas removal, sulfur recovery, tail gas treatment, combined | 24 |
| cycle power block, coal fines and slag handling, and water and | 25 |
| wastewater treatment at the plant site. The quote or estimate | 26 |
| shall be based on detailed design work sufficient to permit |
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| quantification of major categories of materials, commodities, | 2 |
| and labor man hours, and receipt of quotes from vendors of | 3 |
| major equipment packages. The costs shall be expressed in | 4 |
| nominal dollars as of the date of the estimate and shall be | 5 |
| exclusive of construction financing costs, taxes, insurance, | 6 |
| and an escalation in materials and labor beyond the date as of | 7 |
| which the core plant construction cost quote is expressed, | 8 |
| costs associated with non-core plant interconnection | 9 |
| facilities for electric transmission, natural gas supply, | 10 |
| water supply and coal delivery, and other non-core plant costs. | 11 |
| For purposes of Section 23-145, the core plant construction | 12 |
| cost quote shall be expressed in nominal dollars per kilowatt | 13 |
| of net design capacity of the clean coal project by dividing | 14 |
| the core plant construction cost quote by the net design | 15 |
| capacity of the clean coal project, excluding for this purpose | 16 |
| any power required for carbon capture. | 17 |
| "FERC" means the Federal Energy Regulatory Commission, an | 18 |
| independent
regulatory commission within the Department of | 19 |
| Energy established by Section 401 of the Department of Energy | 20 |
| Organization Act, or any agency succeeding to the powers | 21 |
| thereof under Section 205 of the Federal Power Act. | 22 |
| "Final air permit" means a Prevention of Significant | 23 |
| Deterioration of Air Quality (PSD) Construction Permit issued | 24 |
| on or before December 31, 2010. | 25 |
| "Formula rate" means a formula used to calculate a | 26 |
| cost-based rate for the sale of electric capacity and |
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| associated energy from a clean coal project set forth in the | 2 |
| applicable wholesale sales tariff. | 3 |
| "FutureGen demonstration project" means a 10-year | 4 |
| demonstration project sponsored by the United States to create | 5 |
| a zero-emissions electricity and hydrogen power plant that: | 6 |
| (1) is not otherwise eligible to participate in the | 7 |
| Clean Coal Development Program; | 8 |
| (2) is designed to include all of the following: | 9 |
| (A) have a nameplate capacity of not greater than | 10 |
| 300 megawatts gross; | 11 |
| (B) be directly interconnected with a | 12 |
| participating electric utility; and | 13 |
| (C) utilize as its primary fuel or feedstock coal | 14 |
| having high volatile bituminous rank and greater than | 15 |
| 1.7 pounds of sulfur per million Btu content; and | 16 |
| (3) has a planned construction start date not later | 17 |
| than December 31, 2010.
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| "Participating electric utility" means any Illinois | 19 |
| electric utility as defined in the Public Utilities Act that as | 20 |
| of the effective date of this Act provides delivery services to | 21 |
| more than 100,000 electric customers in Illinois. | 22 |
| "Service agreement" means a service agreement for the sale | 23 |
| of electric capacity and associated energy from a clean coal | 24 |
| project substantively identical to the pro forma service | 25 |
| agreement contained in the applicable wholesale sales tariff. | 26 |
| "Total capital cost target" means the net design output of |
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| the clean coal project (excluding for this purpose any power | 2 |
| requirements for carbon capture), expressed in kilowatts times | 3 |
| $3,850, as adjusted in accordance with the following: | 4 |
| (1) such amount shall be increased by any reasonably | 5 |
| estimated increase in any total capital costs per kilowatt | 6 |
| that results from the core plant construction cost quote, | 7 |
| as approved by the Commission in accordance with item (3) | 8 |
| of Section 23-145 of this Article, being higher than the | 9 |
| core plant construction cost ceiling; | 10 |
| (2) such amount shall be decreased or increased, as the | 11 |
| case may be, by the amount, if any, by which actual total | 12 |
| capital costs per kilowatt are decreased or increased due | 13 |
| to positive or negative price escalation provided for under | 14 |
| the applicable contract or contracts for the core plant | 15 |
| construction, with any escalation in commodity prices | 16 |
| being based on published indices; | 17 |
| (3) such amount shall be increased by the amount of any | 18 |
| additional capital costs per kilowatt that are justly and | 19 |
| reasonably incurred due to a change in law or regulation | 20 |
| enacted after the date the applicable service agreement is | 21 |
| executed by the participating electric utility; and | 22 |
| (4) such amount shall be increased by any increase in | 23 |
| total capitalized financing costs per kilowatt resulting | 24 |
| from a clean coal project not receiving Illinois moral | 25 |
| obligation bond financing or tax exempt finance volume cap | 26 |
| allocation in the amounts preliminarily approved for such |
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| clean coal project by the Illinois Finance Authority or not | 2 |
| receiving state grants equal to at least 15% of the total | 3 |
| capital cost target.
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| "Wholesale sales tariff" means a schedule of rates, terms, | 5 |
| and conditions for the sale of electric capacity and associated | 6 |
| energy from a clean coal project filed with FERC by the owner, | 7 |
| lessee, or operator of that clean coal project and allowed by | 8 |
| FERC to become effective pursuant to Section 205 of the Federal | 9 |
| Power Act and Part 35 of FERC's regulations.
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| (220 ILCS 5/23-115 new)
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| Sec. 23-115. Clean coal development program. | 12 |
| (a) Each participating electric utility shall purchase | 13 |
| electric capacity and associated energy from the owners, | 14 |
| lessees, or operators of clean coal projects pursuant to | 15 |
| service agreements in accordance with the provisions of Section | 16 |
| 23-115 of this Article. | 17 |
| (b) Upon receipt of an offer from a clean coal project to | 18 |
| sell capacity and associated energy pursuant to a wholesale | 19 |
| sales tariff, the participating electric utility shall, within | 20 |
| 30 days after receipt of the pro forma service agreement | 21 |
| contained in the wholesale sales tariff, execute the service | 22 |
| agreement and file the executed service agreement for | 23 |
| informational purposes with the Commission, provided that no | 24 |
| participating electric utility shall enter into a service | 25 |
| agreement if the amount of capacity to be purchased under such |
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| service agreement, together with the aggregate amount of all | 2 |
| capacity purchased under other service agreements executed | 3 |
| previously or contemporaneously by the participating electric | 4 |
| utility from all clean coal projects other than a FutureGen | 5 |
| demonstration project, exceeds 5% of the participating | 6 |
| electric utility's coincident peak delivery services load, | 7 |
| expressed in kilowatts, for the calendar year immediately | 8 |
| preceding the effective date of this Article.
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| (220 ILCS 5/23-120 new)
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| Sec. 23-120. Characteristics of the wholesale sales | 11 |
| tariff. Subject to the jurisdiction of FERC with respect to the | 12 |
| wholesale sales tariff, in order to fulfill the purposes of the | 13 |
| Clean Coal Development Program, it is desirable that the | 14 |
| formula rate and service agreement have characteristics that | 15 |
| are adequate and appropriate to support the long-term | 16 |
| investments necessary for the construction and operation of | 17 |
| clean coal projects. It is the intent of the General Assembly | 18 |
| that: | 19 |
| (1) With respect to the formula rate, the following | 20 |
| characteristics are adequate and appropriate: | 21 |
| (A) the use of a cost of service methodology | 22 |
| employing a level capital recovery component; | 23 |
| (B) the use of a hypothetical capital structure, as | 24 |
| such structure is used by FERC pursuant to Sections 205 | 25 |
| and 206 of the Federal Power Act, that assumes a |
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| capital structure for a clean coal project of 45% | 2 |
| equity and 55% debt; | 3 |
| (C) (i) with respect to the first clean coal | 4 |
| project that has a wholesale sales tariff made | 5 |
| effective pursuant to Section 205 of the Federal Power | 6 |
| Act and part 35 of FERC's regulations, the use of a | 7 |
| return on equity that is fixed for the term of the | 8 |
| service agreement at a rate equal to 11.5%; and (ii) | 9 |
| with respect to any subsequent clean coal projects, the | 10 |
| use of a return on equity that is fixed for the term of | 11 |
| the service agreement at a rate equal to a rate of | 12 |
| between 9% and 11% (with a single fixed rate being set | 13 |
| forth in the service agreement); and | 14 |
| (D) the use of an incentive or penalty mechanism | 15 |
| such that (i) if the actual total capital costs of a | 16 |
| given clean coal project exceeds the total capital cost | 17 |
| target, then the return on equity applicable to the | 18 |
| portion of the actual total capital costs in excess of | 19 |
| the total capital cost target (a) shall be reduced by | 20 |
| 300 basis points (with there being 100 basis points in | 21 |
| each percent of return on equity) for the first $80 per | 22 |
| kilowatt of such excess total capital costs, (b) shall | 23 |
| be reduced by 600 basis points for the next $80 per | 24 |
| kilowatt of such excess total capital costs, and (c) | 25 |
| shall be reduced to zero for any excess capital costs | 26 |
| over $160 per kilowatt, and (ii) if the actual total |
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| capital costs of a given clean coal project are less | 2 |
| than the total capital cost target, then the return on | 3 |
| equity for an amount equal to the amount that the total | 4 |
| capital cost is less than the total capital cost target | 5 |
| shall be increased by 300 basis points.
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| (2) With respect to the service agreement, the | 7 |
| following characteristics are adequate and appropriate: | 8 |
| (A) a provision setting forth a term of 30 to 40 | 9 |
| years commencing on the date upon which the clean coal | 10 |
| project achieves commercial operation; | 11 |
| (B) a provision incorporating the duties and | 12 |
| obligations of the clean coal project and the | 13 |
| participating electric utility with respect to the | 14 |
| notice and termination mechanism set forth in Section | 15 |
| 23-145 of this Article;
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| (C) a provision to the effect that a change in law, | 17 |
| regulation or market conditions is not a basis for | 18 |
| termination or reduction in payments by the purchaser; | 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 10% 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 |
| stated 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 5/23-125 new)
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| Sec. 23-125. 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 23-130. | 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 5/23-130 new)
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| Sec. 23-130. 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 23-115 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" defined as the sum of | 20 |
| accrued revenues recorded by the participating | 21 |
| electric utility during the determination period | 22 |
| associated with the sale of capacity and associated | 23 |
| energy by the participating electric utility pursuant | 24 |
| to Section 125 of this Article; | 25 |
| (F) "automatic CCDP balancing factor" defined as | 26 |
| the cumulative debit or credit balance, if any, |
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| resulting from the application of the CCDP factor from | 2 |
| the effective date of the tariff rider through the | 3 |
| determination period; | 4 |
| (G) "forecast usage" (expressed in kilowatt-hours) | 5 |
| defined as the forecast by the participating electric | 6 |
| utility of the total energy that the participating | 7 |
| electric utility expects to deliver to its delivery | 8 |
| services customers during the effective period; and | 9 |
| (H) a formula for the determination of the CCDP | 10 |
| factor that divides the sum of the CCDP accrued | 11 |
| revenues, CCDP accrued expenses, and automatic CCDP | 12 |
| balancing factor by the forecast usage. | 13 |
| (d) Each participating electric utility shall submit its | 14 |
| CCDP factor to the Commission in an informational filing at | 15 |
| least 3 business days prior to the start of each effective | 16 |
| period during which it is to be applied. In addition, each | 17 |
| participating electric utility that is purchasing capacity and | 18 |
| associated energy pursuant to a service agreement during a | 19 |
| calendar year shall prepare and submit to the Commission an | 20 |
| annual report for each calendar year during which such | 21 |
| purchases are made, containing the details of the calculation | 22 |
| of its CCDP factor on or before the last business day of April | 23 |
| of the following calendar year. | 24 |
| (220 ILCS 5/23-135 new)
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| Sec. 23-135. Affiliate transactions. Notwithstanding any |
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| other provision of this Article, if an electric utility or an | 2 |
| affiliate of an electric utility has an ownership interest in | 3 |
| any eligible facility, Article VII of this Act shall apply.
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| (220 ILCS 5/23-140 new)
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| Sec. 23-140. Certificates of convenience and necessity. | 6 |
| (a) If a CCN is required from the Commission for the | 7 |
| construction of transmission or pipeline facilities necessary | 8 |
| to support interconnection or supplemental fuel supply of a | 9 |
| clean coal project, the Commission's order shall be entered (1) | 10 |
| within 180 days after the date on which an application for such | 11 |
| a CCN has been filed pursuant to Section 8-406 of this Act | 12 |
| without a request for an order pursuant to Section 8-503 of | 13 |
| this Act; or (2) within 270 days in the case of an application | 14 |
| with a request for an order pursuant to Section 8-503 of this | 15 |
| Act. | 16 |
| (b) In any proceeding conducted by the Commission with | 17 |
| respect to a CCN filed pursuant to this Section, intervention | 18 |
| shall be limited to parties with a direct interest in the | 19 |
| requested CCN and any statutory consumer protection agency as | 20 |
| defined in subsection (d) of Section 9-102.1 of this Act. | 21 |
| Parties with a direct interest shall include each owner of | 22 |
| record of the land that would be crossed by the proposed | 23 |
| transmission or pipeline facilities unless the Commission | 24 |
| determines that such owner has acquired the land solely for the | 25 |
| purpose of becoming a party to the CCN proceeding, and all |
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LRB095 11414 MJR 38226 a |
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| utilities and railroads whose lines will be crossed by the | 2 |
| proposed transmission or pipeline facilities or whose lines | 3 |
| will be paralleled within 200 feet by such proposed facilities. | 4 |
| Any application seeking rehearing of an order issued in | 5 |
| response to an application for a CCN filed pursuant to the | 6 |
| Section shall be filed within 10 days after service of the | 7 |
| order. | 8 |
| (c) The construction of transmission and pipeline | 9 |
| facilities necessary to support interconnection or | 10 |
| supplemental fuel supply of a clean coal project is in the | 11 |
| public interest, and in determining whether to issue an order | 12 |
| granting a CCN for construction of such facilities, the | 13 |
| Commission shall liberally construe the provisions of this | 14 |
| Section in favor of granting a CCN for construction of such | 15 |
| facilities.
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| (220 ILCS 5/23-145 new)
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| Sec. 23-145. Termination mechanism. Because (i) the core | 18 |
| plant construction cost quote will not likely be known at the | 19 |
| time when the applicable service agreement is executed by the | 20 |
| participating electric utility and (ii) the clean coal project | 21 |
| will likely incur significant costs related to the engineering | 22 |
| and design services performed to obtain the core plant | 23 |
| construction cost quote, and in order to provide a mechanism | 24 |
| for the Commission to review and approve any increase in the | 25 |
| anticipated core plant construction costs quote, the following |
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LRB095 11414 MJR 38226 a |
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| termination mechanism shall apply to all clean coal projects | 2 |
| participating in the Clean Coal Development Program: | 3 |
| (1) Upon completion of the core plant construction cost | 4 |
| quote for a given clean coal project, the clean coal | 5 |
| project shall compare its core plant construction cost | 6 |
| quote to the inflation-adjusted core plant construction | 7 |
| cost ceiling and determine whether its core plant | 8 |
| construction cost quote is in excess of the | 9 |
| inflation-adjusted core plant construction cost ceiling. | 10 |
| (2) If a clean coal project determines that its core | 11 |
| plant construction cost quote is in excess of the | 12 |
| inflation-adjusted core plant construction cost ceiling, | 13 |
| then the clean coal project shall file with the Commission | 14 |
| a pleading summarizing its determination that its core | 15 |
| plant construction cost quote is in excess of the | 16 |
| inflation-adjusted core plant construction cost ceiling | 17 |
| and any calculations and work papers related to such | 18 |
| determination. | 19 |
| (3) Upon receipt of a filing pursuant to Section 23-145 | 20 |
| of this Article, the Commission shall promptly commence an | 21 |
| investigation pursuant to Article X of this Act to | 22 |
| determine whether it is in the public interest for the | 23 |
| clean coal project to be constructed given the | 24 |
| determination that the core plant construction cost quote | 25 |
| is in excess of the inflation-adjusted core plant | 26 |
| construction cost ceiling. The Commission shall make such |
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09500HB3388sam001 |
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LRB095 11414 MJR 38226 a |
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| public interest determination after hearing evidence | 2 |
| limited to the issue of whether the purposes of the Clean | 3 |
| Coal Development Program, as set forth in Section 23-105 of | 4 |
| this Article, shall be frustrated by the fact that the core | 5 |
| plant construction cost quote for the applicable clean coal | 6 |
| project is in excess of the inflation-adjusted core plant | 7 |
| construction cost ceiling. Any proceeding initiated by the | 8 |
| Commission pursuant to this Section may not exceed 120 days | 9 |
| in length. | 10 |
| (4) If, and only if, the Commission determines that the | 11 |
| purposes of the Clean Coal Development Program will be | 12 |
| frustrated by the fact that the core plant construction | 13 |
| cost quote for a given clean coal project is in excess of | 14 |
| the inflation-adjusted core plant construction cost | 15 |
| ceiling, then each participating electric utility that | 16 |
| executed a service agreement with such clean coal project | 17 |
| shall enforce its right to terminate such service agreement | 18 |
| and reimburse the clean coal project as a termination fee | 19 |
| the amounts paid by the clean coal project to unrelated | 20 |
| third parties to obtain the core plant construction cost | 21 |
| quote. In the event that more than one participating | 22 |
| electric utility has executed a service agreement with such | 23 |
| clean coal project, then the termination fee applicable to | 24 |
| each service agreement shall be allocated in proportion to | 25 |
| the amount of capacity contracted for relative to the total | 26 |
| capacity contracted for pursuant to all service agreements |
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LRB095 11414 MJR 38226 a |
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| applicable to such clean coal project. The aggregate of | 2 |
| termination fees paid by participating electric utilities | 3 |
| to a clean coal project pursuant to this Section shall not | 4 |
| exceed $8,000,000.
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| (5) If a participating electric utility terminates a | 6 |
| service agreement as contemplated in Section 23-145 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 23-130 of | 11 |
| this Article.
| 12 |
| (220 ILCS 5/23-150 new)
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| Sec. 23-150. 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 11414 MJR 38226 a |
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| 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 23-120(1) (other than Subsection 23-120(1)(D)) | 8 |
| and 23-120(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 23-120(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.
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| Section 99. Effective date. This Act takes effect upon | 23 |
| becoming law.".
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