Full Text of HB5855 95th General Assembly
HB5855ham001 95TH GENERAL ASSEMBLY
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Electric Utility Oversight Committee
Adopted in House Comm. on Mar 12, 2008
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| AMENDMENT TO HOUSE BILL 5855
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| AMENDMENT NO. ______. Amend House Bill 5855 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Power Agency Act is amended by | 5 |
| changing Section 1-75 as follows: | 6 |
| (20 ILCS 3855/1-75)
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| Sec. 1-75. Planning and Procurement Bureau. The Planning | 8 |
| and Procurement Bureau has the following duties and | 9 |
| responsibilities: | 10 |
| (a) The Planning and Procurement Bureau shall each | 11 |
| year, beginning in 2008, develop procurement plans and | 12 |
| conduct competitive procurement processes in accordance | 13 |
| with the requirements of Section 16-111.5 of the Public | 14 |
| Utilities Act for the eligible retail customers of electric | 15 |
| utilities that on December 31, 2005 provided electric | 16 |
| service to at least 100,000 customers in Illinois. For the |
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| purposes of this Section, the term "eligible retail | 2 |
| customers" has the same definition as found in Section | 3 |
| 16-111.5(a) of the Public Utilities Act. | 4 |
| (1) The Agency shall each year, beginning in 2008, | 5 |
| as needed, issue a request for qualifications for | 6 |
| experts or expert consulting firms to develop the | 7 |
| procurement plans in accordance with Section 16-111.5 | 8 |
| of the Public Utilities Act. In order to qualify an | 9 |
| expert or expert consulting firm must have: | 10 |
| (A) direct previous experience assembling | 11 |
| large-scale power supply plans or portfolios for | 12 |
| end-use customers; | 13 |
| (B) an advanced degree in economics, | 14 |
| mathematics, engineering, risk management, or a | 15 |
| related area of study; | 16 |
| (C) 10 years of experience in the electricity | 17 |
| sector, including managing supply risk; | 18 |
| (D) expertise in wholesale electricity market | 19 |
| rules, including those established by the Federal | 20 |
| Energy Regulatory Commission and regional | 21 |
| transmission organizations; | 22 |
| (E) expertise in credit protocols and | 23 |
| familiarity with contract protocols; | 24 |
| (F) adequate resources to perform and fulfill | 25 |
| the required functions and responsibilities; and | 26 |
| (G) the absence of a conflict of interest and |
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| inappropriate bias for or against potential | 2 |
| bidders or the affected electric utilities. | 3 |
| (2) The Agency shall each year, as needed, issue a | 4 |
| request for qualifications for a procurement | 5 |
| administrator to conduct the competitive procurement | 6 |
| processes in accordance with Section 16-111.5 of the | 7 |
| Public Utilities Act. In order to qualify an expert or | 8 |
| expert consulting firm must have: | 9 |
| (A) direct previous experience administering a | 10 |
| large-scale competitive procurement process; | 11 |
| (B) an advanced degree in economics, | 12 |
| mathematics, engineering, or a related area of | 13 |
| study; | 14 |
| (C) 10 years of experience in the electricity | 15 |
| sector, including risk management experience; | 16 |
| (D) expertise in wholesale electricity market | 17 |
| rules, including those established by the Federal | 18 |
| Energy Regulatory Commission and regional | 19 |
| transmission organizations; | 20 |
| (E) expertise in credit and contract | 21 |
| protocols; | 22 |
| (F) adequate resources to perform and fulfill | 23 |
| the required functions and responsibilities; and | 24 |
| (G) the absence of a conflict of interest and | 25 |
| inappropriate bias for or against potential | 26 |
| bidders or the affected electric utilities. |
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| (3) The Agency shall provide affected utilities | 2 |
| and other interested parties with the lists of | 3 |
| qualified experts or expert consulting firms | 4 |
| identified through the request for qualifications | 5 |
| processes that are under consideration to develop the | 6 |
| procurement plans and to serve as the procurement | 7 |
| administrator. The Agency shall also provide each | 8 |
| qualified expert's or expert consulting firm's | 9 |
| response to the request for qualifications. All | 10 |
| information provided under this subparagraph shall | 11 |
| also be provided to the Commission. The Agency may | 12 |
| provide by rule for fees associated with supplying the | 13 |
| information to utilities and other interested parties. | 14 |
| These parties shall, within 5 business days, notify the | 15 |
| Agency in writing if they object to any experts or | 16 |
| expert consulting firms on the lists. Objections shall | 17 |
| be based on: | 18 |
| (A) failure to satisfy qualification criteria; | 19 |
| (B) identification of a conflict of interest; | 20 |
| or | 21 |
| (C) evidence of inappropriate bias for or | 22 |
| against potential bidders or the affected | 23 |
| utilities. | 24 |
| The Agency shall remove experts or expert | 25 |
| consulting firms from the lists within 10 days if there | 26 |
| is a reasonable basis for an objection and provide the |
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| updated lists to the affected utilities and other | 2 |
| interested parties. If the Agency fails to remove an | 3 |
| expert or expert consulting firm from a list, an | 4 |
| objecting party may seek review by the Commission | 5 |
| within 5 days thereafter by filing a petition, and the | 6 |
| Commission shall render a ruling on the petition within | 7 |
| 10 days. There is no right of appeal of the | 8 |
| Commission's ruling. | 9 |
| (4) The Agency shall issue requests for proposals | 10 |
| to the qualified experts or expert consulting firms to | 11 |
| develop a procurement plan for the affected utilities | 12 |
| and to serve as procurement administrator. | 13 |
| (5) The Agency shall select an expert or expert | 14 |
| consulting firm to develop procurement plans based on | 15 |
| the proposals submitted and shall award one-year | 16 |
| contracts to those selected with an option for the | 17 |
| Agency for a one-year renewal. | 18 |
| (6) The Agency shall select an expert or expert | 19 |
| consulting firm, with approval of the Commission, to | 20 |
| serve as procurement administrator based on the | 21 |
| proposals submitted. If the Commission rejects, within | 22 |
| 5 days, the Agency's selection, the Agency shall submit | 23 |
| another recommendation within 3 days based on the | 24 |
| proposals submitted. The Agency shall award a one-year | 25 |
| contract to the expert or expert consulting firm so | 26 |
| selected with Commission approval with an option for |
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| the Agency for a one-year renewal. | 2 |
| (b) The experts or expert consulting firms retained by | 3 |
| the Agency shall, as appropriate, prepare procurement | 4 |
| plans, and conduct a competitive procurement process as | 5 |
| prescribed in Section 16-111.5 of the Public Utilities Act, | 6 |
| to ensure adequate, reliable, affordable, efficient, and | 7 |
| environmentally sustainable electric service at the lowest | 8 |
| total cost over time, taking into account any benefits of | 9 |
| price stability, for eligible retail customers of electric | 10 |
| utilities that on December 31, 2005 provided electric | 11 |
| service to at least 100,000 customers in the State of | 12 |
| Illinois. | 13 |
| (c) Renewable portfolio standard. | 14 |
| (1) The procurement plans shall include | 15 |
| cost-effective renewable energy resources. A minimum | 16 |
| percentage of each utility's total supply to serve the | 17 |
| load of eligible retail customers, as defined in | 18 |
| Section 16-111.5(a) of the Public Utilities Act, | 19 |
| procured for each of the following years shall be | 20 |
| generated from cost-effective renewable energy | 21 |
| resources: at least 2% by June 1, 2008; at least 4% by | 22 |
| June 1, 2009; at least 5% by June 1, 2010; at least 6% | 23 |
| by June 1, 2011; at least 7% by June 1, 2012; at least | 24 |
| 8% by June 1, 2013; at least 9% by June 1, 2014; at | 25 |
| least 10% by June 1, 2015; and increasing by at least | 26 |
| 1.5% each year thereafter to at least 25% by June 1, |
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| 2025. To the extent that it is available, at least 75% | 2 |
| of the renewable energy resources used to meet these | 3 |
| standards shall come from wind generation. For | 4 |
| purposes of this Section, "cost-effective" means that | 5 |
| the costs of procuring renewable energy resources do | 6 |
| not cause the limit stated in paragraph (2) of this | 7 |
| subsection (c) to be exceeded. For purposes of meeting | 8 |
| the requirements of this Section, utilities may enter | 9 |
| into contracts with renewable energy generators for a | 10 |
| term of up to 20 years. | 11 |
| (2) For purposes of this subsection (c), the | 12 |
| required procurement of cost-effective renewable | 13 |
| energy resources for a particular year shall be | 14 |
| measured as a percentage of the actual amount of | 15 |
| electricity (megawatt-hours) supplied by the electric | 16 |
| utility to eligible retail customers in the planning | 17 |
| year ending immediately prior to the procurement. For | 18 |
| purposes of this subsection (c), the amount per | 19 |
| kilowatthour means the total amount paid for electric | 20 |
| service expressed on a per kilowatthour basis. For | 21 |
| purposes of this subsection (c), the total amount paid | 22 |
| for electric service includes without limitation | 23 |
| amounts paid for supply, transmission, distribution, | 24 |
| surcharges, and add-on taxes. | 25 |
| Notwithstanding the requirements of this | 26 |
| subsection (c), the total of renewable energy |
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| resources procured pursuant to the procurement plan | 2 |
| for any single year shall be reduced by an amount | 3 |
| necessary to limit the annual estimated average net | 4 |
| increase due to the costs of these resources included | 5 |
| in the amounts paid by eligible retail customers in | 6 |
| connection with electric service to: | 7 |
| (A) in 2008, no more than 0.5% of the amount | 8 |
| paid per kilowatthour by those customers during | 9 |
| the year ending May 31, 2007; | 10 |
| (B) in 2009, the greater of an additional 0.5% | 11 |
| of the amount paid per kilowatthour by those | 12 |
| customers during the year ending May 31, 2008 or 1% | 13 |
| of the amount paid per kilowatthour by those | 14 |
| customers during the year ending May 31, 2007; | 15 |
| (C) in 2010, the greater of an additional 0.5% | 16 |
| of the amount paid per kilowatthour by those | 17 |
| customers during the year ending May 31, 2009 or | 18 |
| 1.5% of the amount paid per kilowatthour by those | 19 |
| customers during the year ending May 31, 2007; | 20 |
| (D) in 2011, the greater of an additional 0.5% | 21 |
| of the amount paid per kilowatthour by those | 22 |
| customers during the year ending May 31, 2010 or 2% | 23 |
| of the amount paid per kilowatthour by those | 24 |
| customers during the year ending May 31, 2007; and | 25 |
| (E) thereafter, the amount of renewable energy | 26 |
| resources procured pursuant to the procurement |
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| plan for any single year shall be reduced by an | 2 |
| amount necessary to limit the estimated average | 3 |
| net increase due to the cost of these resources | 4 |
| included in the amounts paid by eligible retail | 5 |
| customers in connection with electric service to | 6 |
| no more than the greater of 2.015% of the amount | 7 |
| paid per kilowatthour by those customers during | 8 |
| the year ending May 31, 2007 or the incremental | 9 |
| amount per kilowatthour paid for these resources | 10 |
| in 2011. | 11 |
| No later than June 30, 2011, the Commission shall | 12 |
| review the limitation on the amount of renewable energy | 13 |
| resources procured pursuant to this subsection (c) and | 14 |
| report to the General Assembly its findings as to | 15 |
| whether that limitation unduly constrains the | 16 |
| procurement of cost-effective renewable energy | 17 |
| resources. | 18 |
| (3) Through June 1, 2011, renewable energy | 19 |
| resources shall be counted for the purpose of meeting | 20 |
| the renewable energy standards set forth in paragraph | 21 |
| (1) of this subsection (c) only if they are generated | 22 |
| from facilities located in the State, provided that | 23 |
| cost-effective renewable energy resources are | 24 |
| available from those facilities. If those | 25 |
| cost-effective resources are not available in | 26 |
| Illinois, they shall be procured in states that adjoin |
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| Illinois and may be counted towards compliance. If | 2 |
| those cost-effective resources are not available in | 3 |
| Illinois or in states that adjoin Illinois, they shall | 4 |
| be purchased elsewhere and shall be counted towards | 5 |
| compliance. After June 1, 2011, cost-effective | 6 |
| renewable energy resources located in Illinois and in | 7 |
| states that adjoin Illinois may be counted towards | 8 |
| compliance with the standards set forth in paragraph | 9 |
| (1) of this subsection (c). If those cost-effective | 10 |
| resources are not available in Illinois or in states | 11 |
| that adjoin Illinois, they shall be purchased | 12 |
| elsewhere and shall be counted towards compliance. | 13 |
| (4) The electric utility shall retire all | 14 |
| renewable energy credits used to comply with the | 15 |
| standard. | 16 |
| (d) The draft procurement plans are subject to public | 17 |
| comment, as required by Section 16-111.5 of the Public | 18 |
| Utilities Act. | 19 |
| (e) The Agency shall submit the final procurement plan | 20 |
| to the Commission. The Agency shall revise a procurement | 21 |
| plan if the Commission determines that it does not meet the | 22 |
| standards set forth in Section 16-111.5 of the Public | 23 |
| Utilities Act. | 24 |
| (f) The Agency shall assess fees to each affected | 25 |
| utility to recover the costs incurred in preparation of the | 26 |
| annual procurement plan for the utility. |
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| (g) The Agency shall assess fees to each bidder to | 2 |
| recover the costs incurred in connection with a competitive | 3 |
| procurement process. | 4 |
| (h) Notwithstanding any other rulemaking authority | 5 |
| that may exist, neither the Governor nor any agency or | 6 |
| agency head under the jurisdiction of the Governor has any | 7 |
| authority to make or promulgate rules to implement or | 8 |
| enforce the provisions of this amendatory Act of the 95th | 9 |
| General Assembly. If, however, the Governor believes that | 10 |
| rules are necessary to implement or enforce the provisions | 11 |
| of this amendatory Act of the 95th General Assembly, the | 12 |
| Governor may suggest rules to the General Assembly by | 13 |
| filing them with the Clerk of the House and the Secretary | 14 |
| of the Senate and by requesting that the General Assembly | 15 |
| authorize such rulemaking by law, enact those suggested | 16 |
| rules into law, or take any other appropriate action in the | 17 |
| General Assembly's discretion. Nothing contained in this | 18 |
| amendatory Act of the 95th General Assembly shall be | 19 |
| interpreted to grant rulemaking authority under any other | 20 |
| Illinois statute where such authority is not otherwise | 21 |
| explicitly given. For the purposes of this amendatory Act | 22 |
| of the 95th General Assembly, "rules" is given the meaning | 23 |
| contained in Section 1-70 of the Illinois Administrative | 24 |
| Procedure Act, and "agency" and "agency head" are given the | 25 |
| meanings contained in Sections 1-20 and 1-25 of the | 26 |
| Illinois Administrative Procedure Act to the extent that |
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| such definitions apply to agencies or agency heads under | 2 |
| the jurisdiction of the Governor.
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| (Source: P.A. 95-481, eff. 8-28-07.) | 4 |
| Section 10. The Public Utilities Act is amended by changing | 5 |
| Sections 16-107.5 and 16-111.5 as follows: | 6 |
| (220 ILCS 5/16-107.5)
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| Sec. 16-107.5. Net electricity metering. | 8 |
| (a) The Legislature finds and declares that a program to | 9 |
| provide net electricity
metering, as defined in this Section,
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| for eligible customers can encourage private investment in | 11 |
| renewable energy
resources, stimulate
economic growth, enhance | 12 |
| the continued diversification of Illinois' energy
resource | 13 |
| mix, and protect
the Illinois environment.
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| (b) As used in this Section, (i) "eligible customer" means | 15 |
| a retail
customer that owns or operates a
solar, wind, or other | 16 |
| eligible renewable electrical generating facility with a rated | 17 |
| capacity of not more than
2,000 kilowatts that is
located on | 18 |
| the customer's premises and is intended primarily to offset the | 19 |
| customer's
own electrical requirements; (ii) "electricity | 20 |
| provider" means an electric utility or alternative retail | 21 |
| electric supplier; (iii) "eligible renewable electrical | 22 |
| generating facility" means a generator powered by solar | 23 |
| electric energy, wind, dedicated crops grown for electricity | 24 |
| generation, anaerobic digestion of livestock or food |
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| processing waste, fuel cells or microturbines powered by | 2 |
| renewable fuels, or hydroelectric energy; and (iv) "net | 3 |
| electricity metering" (or "net metering") means the
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| measurement, during the
billing period applicable to an | 5 |
| eligible customer, of the net amount of
electricity supplied by | 6 |
| an
electricity provider to the customer's premises or provided | 7 |
| to the electricity provider by the customer.
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| (c) A net metering facility shall be equipped with metering | 9 |
| equipment that can measure the flow of electricity in both | 10 |
| directions at the same rate. For eligible residential | 11 |
| customers, this shall typically be accomplished through use of | 12 |
| a single, bi-directional meter. If the eligible customer's | 13 |
| existing electric revenue meter does not meet this requirement, | 14 |
| the electricity provider shall arrange for the local electric | 15 |
| utility or a meter service provider to install and maintain a | 16 |
| new revenue meter at the electricity provider's expense. For | 17 |
| non-residential customers, the electricity provider may | 18 |
| arrange for the local electric utility or a meter service | 19 |
| provider to install and maintain metering equipment capable of | 20 |
| measuring the flow of electricity both into and out of the | 21 |
| customer's facility at the same rate and ratio, typically | 22 |
| through the use of a dual channel meter. For generators with a | 23 |
| nameplate rating of 40 kilowatts and below, the costs of | 24 |
| installing such equipment shall be paid for by the electricity | 25 |
| provider. For generators with a nameplate rating over 40 | 26 |
| kilowatts and up to 2,000 kilowatts capacity, the costs of |
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| installing such equipment shall be paid for by the customer. | 2 |
| Any subsequent revenue meter change necessitated by any | 3 |
| eligible customer shall be paid for by the customer.
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| (d) An electricity provider shall
measure and charge or | 5 |
| credit for the net
electricity supplied to eligible customers | 6 |
| or provided by eligible customers in
the following manner:
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| (1) If the amount of electricity used by the customer | 8 |
| during the billing
period exceeds the
amount of electricity | 9 |
| produced by the customer, the electricity provider shall | 10 |
| charge the customer for the net electricity supplied to and | 11 |
| used
by the customer as provided in subsection (e) of this | 12 |
| Section.
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| (2) If the amount of electricity produced by a customer | 14 |
| during the billing period exceeds the amount of electricity | 15 |
| used by the customer during that billing period, the | 16 |
| electricity provider supplying that customer shall apply a | 17 |
| 1:1 kilowatt-hour credit to a subsequent bill for service | 18 |
| to the customer for the net electricity supplied to the | 19 |
| electricity provider. The electricity provider shall | 20 |
| continue to carry over any excess kilowatt-hour credits | 21 |
| earned and apply those credits to subsequent billing | 22 |
| periods to offset any customer-generator consumption in | 23 |
| those billing periods until all credits are used or until | 24 |
| the end of the annualized period.
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| (3) At the end of the year or annualized over the | 26 |
| period that service is supplied by means of net metering, |
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| or in the event that the retail customer terminates service | 2 |
| with the electricity provider prior to the end of the year | 3 |
| or the annualized period, any remaining credits in the | 4 |
| customer's account shall expire.
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| (e) An electricity provider shall provide to net metering | 6 |
| customers electric service at non-discriminatory rates that | 7 |
| are identical, with respect to rate structure, retail rate | 8 |
| components, and any monthly charges, to the rates that the | 9 |
| customer would be charged if not a net metering customer. An | 10 |
| electricity provider shall not charge net metering customers | 11 |
| any fee or charge or require additional equipment, insurance, | 12 |
| or any other requirements not specifically authorized by | 13 |
| interconnection standards authorized by the Commission, unless | 14 |
| the fee, charge, or other requirement would apply to other | 15 |
| similarly situated customers who are not net metering | 16 |
| customers. The customer will remain responsible for all taxes, | 17 |
| fees, and utility delivery charges that would otherwise be | 18 |
| applicable to the net amount of electricity used by the | 19 |
| customer. Subsections (c) through (e) of this Section shall not | 20 |
| be construed to prevent an arms-length agreement between an | 21 |
| electricity provider and an eligible customer that sets forth | 22 |
| different prices, terms, and conditions for the provision of | 23 |
| net metering service, including, but not limited to, the | 24 |
| provision of the appropriate metering equipment for | 25 |
| non-residential customers.
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| (f) Notwithstanding the requirements of subsections (c) |
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| through (e) of this Section, an electricity provider must | 2 |
| require dual-channel metering for non-residential customers | 3 |
| operating eligible renewable electrical generating facilities | 4 |
| with a nameplate rating over 40 kilowatts and up to 2,000 | 5 |
| kilowatts. In such cases, electricity charges and credits shall | 6 |
| be determined as follows:
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| (1) The electricity provider shall assess and the | 8 |
| customer remains responsible for all taxes, fees, and | 9 |
| utility delivery charges that would otherwise be | 10 |
| applicable to the gross amount of kilowatt-hours supplied | 11 |
| to the eligible customer by the electricity provider. | 12 |
| (2) Each month that service is supplied by means of | 13 |
| dual-channel metering, the electricity provider shall | 14 |
| compensate the eligible customer for any excess | 15 |
| kilowatt-hour credits at the electricity provider's | 16 |
| avoided cost of electricity supply over the monthly period | 17 |
| or as otherwise specified by the terms of a power-purchase | 18 |
| agreement negotiated between the customer and electricity | 19 |
| provider. | 20 |
| (3) For all eligible net metering customers taking | 21 |
| service from an electricity provider under contracts or | 22 |
| tariffs employing time of use rates, any monthly | 23 |
| consumption of electricity shall be calculated according | 24 |
| to the terms of the contract or tariff to which the same | 25 |
| customer would be assigned to or be eligible for if the | 26 |
| customer was not a net metering customer. When those same |
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| customer-generators are net generators during any discrete | 2 |
| time of use period, the net kilowatt-hours produced shall | 3 |
| be valued at the same price per kilowatt-hour as the | 4 |
| electric service provider would charge for retail | 5 |
| kilowatt-hour sales during that same time of use period.
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| (g) Notwithstanding subsections (a) through (f) of this | 7 |
| Section, a netmetering customer shall be compensated for all | 8 |
| gross kilowatt-hours generated using photovoltaic technology | 9 |
| at a rate that is 200% of the price the electric service | 10 |
| provider would charge that customer for retail kilowatt-hour | 11 |
| sales during the same period. | 12 |
| (h) (g) For purposes of federal and State laws providing | 13 |
| renewable energy credits or greenhouse gas credits, the | 14 |
| eligible customer shall be treated as owning and having title | 15 |
| to the renewable energy attributes, renewable energy credits, | 16 |
| and greenhouse gas emission credits related to any electricity | 17 |
| produced by the qualified generating unit. The electricity | 18 |
| provider may not condition participation in a net metering | 19 |
| program on the signing over of a customer's renewable energy | 20 |
| credits; provided, however, this subsection (h) (g) shall not | 21 |
| be construed to prevent an arms-length agreement between an | 22 |
| electricity provider and an eligible customer that sets forth | 23 |
| the ownership or title of the credits.
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| (i) (h) Within 120 days after the effective date of this
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| amendatory Act of the 95th General Assembly, the Commission | 26 |
| shall establish standards for net metering and, if the |
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| Commission has not already acted on its own initiative, | 2 |
| standards for the interconnection of eligible renewable | 3 |
| generating equipment to the utility system. The | 4 |
| interconnection standards shall address any procedural | 5 |
| barriers, delays, and administrative costs associated with the | 6 |
| interconnection of customer-generation while ensuring the | 7 |
| safety and reliability of the units and the electric utility | 8 |
| system. The Commission shall consider the Institute of | 9 |
| Electrical and Electronics Engineers (IEEE) Standard 1547 and | 10 |
| the issues of (i) reasonable and fair fees and costs, (ii) | 11 |
| clear timelines for major milestones in the interconnection | 12 |
| process, (iii) nondiscriminatory terms of agreement, and (iv) | 13 |
| any best practices for interconnection of distributed | 14 |
| generation.
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| (j) (i) All electricity providers shall begin to offer net | 16 |
| metering
no later than April 1,
2008.
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| (k) (j) An electricity provider shall provide net metering | 18 |
| to eligible
customers until the load of its net metering | 19 |
| customers equals 1% of
the total peak demand supplied by
that | 20 |
| electricity provider during the
previous year. Electricity | 21 |
| providers are authorized to offer net metering beyond
the 1% | 22 |
| level if they so choose. The number of new eligible customers | 23 |
| with generators that have a nameplate rating of 40 kilowatts | 24 |
| and below will be limited to 200 total new billing accounts for | 25 |
| the utilities (Ameren Companies, ComEd, and MidAmerican) for | 26 |
| the period of April 1, 2008 through March 31, 2009.
|
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09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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| 1 |
| (l) (k) Each electricity provider shall maintain records | 2 |
| and report annually to the Commission the total number of net | 3 |
| metering customers served by the provider, as well as the type, | 4 |
| capacity, and energy sources of the generating systems used by | 5 |
| the net metering customers. Nothing in this Section shall limit | 6 |
| the ability of an electricity provider to request the redaction | 7 |
| of information deemed by the Commission to be confidential | 8 |
| business information. Each electricity provider shall notify | 9 |
| the Commission when the total generating capacity of its net | 10 |
| metering customers is equal to or in excess of the 1% cap | 11 |
| specified in subsection (k) (j) of this Section. | 12 |
| (m) (l) Notwithstanding the definition of "eligible | 13 |
| customer" in item (i) of subsection (b) of this Section, each | 14 |
| electricity provider shall consider whether to allow meter | 15 |
| aggregation for the purposes of net metering on:
| 16 |
| (1) properties owned or leased by multiple customers | 17 |
| that contribute to the operation of an eligible renewable | 18 |
| electrical generating facility, such as a community-owned | 19 |
| wind project or a community methane digester processing | 20 |
| livestock waste from multiple sources; and
| 21 |
| (2) individual units, apartments, or properties owned | 22 |
| or leased by multiple customers and collectively served by | 23 |
| a common eligible renewable electrical generating | 24 |
| facility, such as an apartment building served by | 25 |
| photovoltaic panels on the roof.
| 26 |
| For the purposes of this subsection (l), "meter |
|
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09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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| 1 |
| aggregation" means the combination of reading and billing on a | 2 |
| pro rata basis for the types of eligible customers described in | 3 |
| this Section.
| 4 |
| (n) (m) Nothing in this Section shall affect the right of | 5 |
| an electricity provider to continue to provide, or the right of | 6 |
| a retail customer to continue to receive service pursuant to a | 7 |
| contract for electric service between the electricity provider | 8 |
| and the retail customer in accordance with the prices, terms, | 9 |
| and conditions provided for in that contract. Either the | 10 |
| electricity provider or the customer may require compliance | 11 |
| with the prices, terms, and conditions of the contract.
| 12 |
| (o) Notwithstanding any other rulemaking authority that | 13 |
| may exist, neither the Governor nor any agency or agency head | 14 |
| under the jurisdiction of the Governor has any authority to | 15 |
| make or promulgate rules to implement or enforce the provisions | 16 |
| of this amendatory Act of the 95th General Assembly. If, | 17 |
| however, the Governor believes that rules are necessary to | 18 |
| implement or enforce the provisions of this amendatory Act of | 19 |
| the 95th General Assembly, the Governor may suggest rules to | 20 |
| the General Assembly by filing them with the Clerk of the House | 21 |
| and the Secretary of the Senate and by requesting that the | 22 |
| General Assembly authorize such rulemaking by law, enact those | 23 |
| suggested rules into law, or take any other appropriate action | 24 |
| in the General Assembly's discretion. Nothing contained in this | 25 |
| amendatory Act of the 95th General Assembly shall be | 26 |
| interpreted to grant rulemaking authority under any other |
|
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|
09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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| 1 |
| Illinois statute where such authority is not otherwise | 2 |
| explicitly given. For the purposes of this amendatory Act of | 3 |
| the 95th General Assembly, "rules" is given the meaning | 4 |
| contained in Section 1-70 of the Illinois Administrative | 5 |
| Procedure Act, and "agency" and "agency head" are given the | 6 |
| meanings contained in Sections 1-20 and 1-25 of the Illinois | 7 |
| Administrative Procedure Act to the extent that such | 8 |
| definitions apply to agencies or agency heads under the | 9 |
| jurisdiction of the Governor.
| 10 |
| (Source: P.A. 95-420, eff. 8-24-07.) | 11 |
| (220 ILCS 5/16-111.5) | 12 |
| Sec. 16-111.5. Provisions relating to procurement. | 13 |
| (a) An electric utility that on December 31, 2005 served at | 14 |
| least 100,000 customers in Illinois shall procure power and | 15 |
| energy for its eligible retail customers in accordance with the | 16 |
| applicable provisions set forth in Section 1-75 of the Illinois | 17 |
| Power Agency Act and this Section. "Eligible retail customers" | 18 |
| for the purposes of this Section means those retail customers | 19 |
| that purchase power and energy from the electric utility under | 20 |
| fixed-price bundled service tariffs, other than those retail | 21 |
| customers whose service is declared or deemed competitive under | 22 |
| Section 16-113 and those other customer groups specified in | 23 |
| this Section, including self-generating customers, customers | 24 |
| electing hourly pricing, or those customers who are otherwise | 25 |
| ineligible for fixed-price bundled tariff service. Those |
|
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|
09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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| 1 |
| customers that are excluded from the definition of "eligible | 2 |
| retail customers" shall not be included in the procurement plan | 3 |
| load requirements, and the utility shall procure any supply | 4 |
| requirements, including capacity, ancillary services, and | 5 |
| hourly priced energy, in the applicable markets as needed to | 6 |
| serve those customers, provided that the utility may include in | 7 |
| its procurement plan load requirements for the load that is | 8 |
| associated with those retail customers whose service has been | 9 |
| declared or deemed competitive pursuant to Section 16-113 of | 10 |
| this Act to the extent that those customers are purchasing | 11 |
| power and energy during one of the transition periods | 12 |
| identified in subsection (b) of Section 16-113 of this Act. | 13 |
| (b) A procurement plan shall be prepared for each electric | 14 |
| utility consistent with the applicable requirements of the | 15 |
| Illinois Power Agency Act and this Section. For purposes of | 16 |
| this Section, Illinois electric utilities that are affiliated | 17 |
| by virtue of a common parent company are considered to be a | 18 |
| single electric utility. Each procurement plan shall analyze | 19 |
| the projected balance of supply and demand for eligible retail | 20 |
| customers over a 5-year period with the first planning year | 21 |
| beginning on June 1 of the year following the year in which the | 22 |
| plan is filed. The plan shall specifically identify the | 23 |
| wholesale products to be procured following plan approval, and | 24 |
| shall follow all the requirements set forth in the Public | 25 |
| Utilities Act and all applicable State and federal laws, | 26 |
| statutes, rules, or regulations, as well as Commission orders. |
|
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09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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| 1 |
| Nothing in this Section precludes consideration of contracts | 2 |
| longer than 5 years and related forecast data. Unless specified | 3 |
| otherwise in this Section, in the procurement plan or in the | 4 |
| implementing tariff, any procurement occurring in accordance | 5 |
| with this plan shall be competitively bid through a request for | 6 |
| proposals process. Approval and implementation of the | 7 |
| procurement plan shall be subject to review and approval by the | 8 |
| Commission according to the provisions set forth in this | 9 |
| Section. A procurement plan shall include each of the following | 10 |
| components: | 11 |
| (1) Hourly load analysis. This analysis shall include: | 12 |
| (i) multi-year historical analysis of hourly | 13 |
| loads; | 14 |
| (ii) switching trends and competitive retail | 15 |
| market analysis; | 16 |
| (iii) known or projected changes to future loads; | 17 |
| and | 18 |
| (iv) growth forecasts by customer class. | 19 |
| (2) Analysis of the impact of any demand side and | 20 |
| renewable energy initiatives. This analysis shall include: | 21 |
| (i) the impact of demand response programs, both | 22 |
| current and projected; | 23 |
| (ii) supply side needs that are projected to be | 24 |
| offset by purchases of renewable energy resources, if | 25 |
| any; and | 26 |
| (iii) the impact of energy efficiency programs, |
|
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|
09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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| 1 |
| both current and projected. Energy efficiency | 2 |
| resources shall be integrated into each utility's plan | 3 |
| and cost-effective energy efficiency shall be treated | 4 |
| as a priority resource. | 5 |
| (3) A plan for meeting the expected load requirements | 6 |
| that will not be met through preexisting contracts. This | 7 |
| plan shall include: | 8 |
| (i) definitions of the different retail customer | 9 |
| classes for which supply is being purchased; | 10 |
| (ii) monthly forecasted system supply | 11 |
| requirements, including expected minimum, maximum, and | 12 |
| average values for the planning period; | 13 |
| (iii) the proposed mix and selection of standard | 14 |
| wholesale products for which contracts will be | 15 |
| executed during the next year, separately or in | 16 |
| combination, to meet that portion of its load | 17 |
| requirements not met through pre-existing contracts, | 18 |
| including but not limited to monthly 5 x 16 peak period | 19 |
| block energy, monthly off-peak wrap energy, monthly 7 x | 20 |
| 24 energy, annual 5 x 16 energy, annual off-peak wrap | 21 |
| energy, annual 7 x 24 energy, monthly capacity, annual | 22 |
| capacity, peak load capacity obligations, capacity | 23 |
| purchase plan, and ancillary services; | 24 |
| (iv) proposed term structures for each wholesale | 25 |
| product type included in the proposed procurement plan | 26 |
| portfolio of products; and |
|
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|
09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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| 1 |
| (v) an assessment of the price risk, load | 2 |
| uncertainty, and other factors that are associated | 3 |
| with the proposed procurement plan; this assessment, | 4 |
| to the extent possible, shall include an analysis of | 5 |
| the following factors: contract terms, time frames for | 6 |
| securing products or services, fuel costs, weather | 7 |
| patterns, transmission costs, market conditions, and | 8 |
| the governmental regulatory environment; the proposed | 9 |
| procurement plan shall also identify alternatives for | 10 |
| those portfolio measures that are identified as having | 11 |
| significant price risk. | 12 |
| (4) Proposed procedures for balancing loads. The | 13 |
| procurement plan shall include, for load requirements | 14 |
| included in the procurement plan, the process for (i) | 15 |
| hourly balancing of supply and demand and (ii) the criteria | 16 |
| for portfolio re-balancing in the event of significant | 17 |
| shifts in load. | 18 |
| (c) The procurement process set forth in Section 1-75 of | 19 |
| the Illinois Power Agency Act and subsection (e) of this | 20 |
| Section shall be administered by a procurement administrator | 21 |
| and monitored by a procurement monitor. | 22 |
| (1) The procurement administrator shall: | 23 |
| (i) design the final procurement process in | 24 |
| accordance with Section 1-75 of the Illinois Power | 25 |
| Agency Act and subsection (e) of this Section following | 26 |
| Commission approval of the procurement plan; |
|
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09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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| 1 |
| (ii) develop benchmarks in accordance with | 2 |
| subsection (e)(3) to be used to evaluate bids; these | 3 |
| benchmarks shall be submitted to the Commission for | 4 |
| review and approval on a confidential basis prior to | 5 |
| the procurement event; | 6 |
| (iii) serve as the interface between the electric | 7 |
| utility and suppliers; | 8 |
| (iv) manage the bidder pre-qualification and | 9 |
| registration process; | 10 |
| (v) obtain the electric utilities' agreement to | 11 |
| the final form of all supply contracts and credit | 12 |
| collateral agreements; | 13 |
| (vi) administer the request for proposals process; | 14 |
| (vii) have the discretion to negotiate to | 15 |
| determine whether bidders are willing to lower the | 16 |
| price of bids that meet the benchmarks approved by the | 17 |
| Commission; any post-bid negotiations with bidders | 18 |
| shall be limited to price only and shall be completed | 19 |
| within 24 hours after opening the sealed bids and shall | 20 |
| be conducted in a fair and unbiased manner; in | 21 |
| conducting the negotiations, there shall be no | 22 |
| disclosure of any information derived from proposals | 23 |
| submitted by competing bidders; if information is | 24 |
| disclosed to any bidder, it shall be provided to all | 25 |
| competing bidders; | 26 |
| (viii) maintain confidentiality of supplier and |
|
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09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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| 1 |
| bidding information in a manner consistent with all | 2 |
| applicable laws, rules, regulations, and tariffs; | 3 |
| (ix) submit a confidential report to the | 4 |
| Commission recommending acceptance or rejection of | 5 |
| bids; | 6 |
| (x) notify the utility of contract counterparties | 7 |
| and contract specifics; and | 8 |
| (xi) administer related contingency procurement | 9 |
| events. | 10 |
| (2) The procurement monitor, who shall be retained by | 11 |
| the Commission, shall: | 12 |
| (i) monitor interactions among the procurement | 13 |
| administrator, suppliers, and utility; | 14 |
| (ii) monitor and report to the Commission on the | 15 |
| progress of the procurement process; | 16 |
| (iii) provide an independent confidential report | 17 |
| to the Commission regarding the results of the | 18 |
| procurement event; | 19 |
| (iv) assess compliance with the procurement plans | 20 |
| approved by the Commission for each utility that on | 21 |
| December 31, 2005 provided electric service to a least | 22 |
| 100,000 customers in Illinois; | 23 |
| (v) preserve the confidentiality of supplier and | 24 |
| bidding information in a manner consistent with all | 25 |
| applicable laws, rules, regulations, and tariffs; | 26 |
| (vi) provide expert advice to the Commission and |
|
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09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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| 1 |
| consult with the procurement administrator regarding | 2 |
| issues related to procurement process design, rules, | 3 |
| protocols, and policy-related matters; and | 4 |
| (vii) consult with the procurement administrator | 5 |
| regarding the development and use of benchmark | 6 |
| criteria, standard form contracts, credit policies, | 7 |
| and bid documents. | 8 |
| (d) Except as provided in subsection (j), the planning | 9 |
| process shall be conducted as follows: | 10 |
| (1) Beginning in 2008, each Illinois utility procuring | 11 |
| power pursuant to this Section shall annually provide a | 12 |
| range of load forecasts to the Illinois Power Agency by | 13 |
| July 15 of each year, or such other date as may be required | 14 |
| by the Commission or Agency. The load forecasts shall cover | 15 |
| the 5-year procurement planning period for the next | 16 |
| procurement plan and shall include hourly data | 17 |
| representing a high-load, low-load and expected-load | 18 |
| scenario for the load of the eligible retail customers. The | 19 |
| utility shall provide supporting data and assumptions for | 20 |
| each of the scenarios.
| 21 |
| (2) Beginning in 2008, the Illinois Power Agency shall | 22 |
| prepare a procurement plan by August 15th of each year, or | 23 |
| such other date as may be required by the Commission. The | 24 |
| procurement plan shall identify the portfolio of power and | 25 |
| energy products to be procured. Copies of the procurement | 26 |
| plan shall be posted and made publicly available on the |
|
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|
09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
|
| 1 |
| Agency's and Commission's websites, and copies shall also | 2 |
| be provided to each affected electric utility. An affected | 3 |
| utility shall have 30 days following the date of posting to | 4 |
| provide comment to the Agency on the procurement plan. | 5 |
| Other interested entities also may comment on the | 6 |
| procurement plan. All comments submitted to the Agency | 7 |
| shall be specific, supported by data or other detailed | 8 |
| analyses, and, if objecting to all or a portion of the | 9 |
| procurement plan, accompanied by specific alternative | 10 |
| wording or proposals. All comments shall be posted on the | 11 |
| Agency's and Commission's websites. During this 30-day | 12 |
| comment period, the Agency shall hold at least one public | 13 |
| hearing within each utility's service area for the purpose | 14 |
| of receiving public comment on the procurement plan. Within | 15 |
| 14 days following the end of the 30-day review period, the | 16 |
| Agency shall revise the procurement plan as necessary based | 17 |
| on the comments received and file the procurement plan with | 18 |
| the Commission and post the procurement plan on the | 19 |
| websites. | 20 |
| (3) Within 5 days after the filing of the procurement | 21 |
| plan, any person objecting to the procurement plan shall | 22 |
| file an objection with the Commission. Within 10 days after | 23 |
| the filing, the Commission shall determine whether a | 24 |
| hearing is necessary. The Commission shall enter its order | 25 |
| confirming or modifying the procurement plan within 90 days | 26 |
| after the filing of the procurement plan by the Illinois |
|
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LRB095 17917 MJR 48216 a |
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| 1 |
| Power Agency. | 2 |
| (4) The Commission shall approve the procurement plan, | 3 |
| including expressly the forecast used in the procurement | 4 |
| plan, if the Commission determines that it will ensure | 5 |
| adequate, reliable, affordable, efficient, and | 6 |
| environmentally sustainable electric service at the lowest | 7 |
| total cost over time, taking into account any benefits of | 8 |
| price stability. | 9 |
| (e) The procurement process shall include each of the | 10 |
| following components: | 11 |
| (1) Solicitation, pre-qualification, and registration | 12 |
| of bidders. The procurement administrator shall | 13 |
| disseminate information to potential bidders to promote a | 14 |
| procurement event, notify potential bidders that the | 15 |
| procurement administrator may enter into a post-bid price | 16 |
| negotiation with bidders that meet the applicable | 17 |
| benchmarks, provide supply requirements, and otherwise | 18 |
| explain the competitive procurement process. In addition | 19 |
| to such other publication as the procurement administrator | 20 |
| determines is appropriate, this information shall be | 21 |
| posted on the Illinois Power Agency's and the Commission's | 22 |
| websites. The procurement administrator shall also | 23 |
| administer the prequalification process, including | 24 |
| evaluation of credit worthiness, compliance with | 25 |
| procurement rules, and agreement to the standard form | 26 |
| contract developed pursuant to paragraph (2) of this |
|
|
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LRB095 17917 MJR 48216 a |
|
| 1 |
| subsection (e). The procurement administrator shall then | 2 |
| identify and register bidders to participate in the | 3 |
| procurement event. | 4 |
| (2) Standard contract forms and credit terms and | 5 |
| instruments. The procurement administrator, in | 6 |
| consultation with the utilities, the Commission, and other | 7 |
| interested parties and subject to Commission oversight, | 8 |
| shall develop and provide standard contract forms for the | 9 |
| supplier contracts that meet generally accepted industry | 10 |
| practices. Standard credit terms and instruments that meet | 11 |
| generally accepted industry practices shall be similarly | 12 |
| developed. The procurement administrator shall make | 13 |
| available to the Commission all written comments it | 14 |
| receives on the contract forms, credit terms, or | 15 |
| instruments. If the procurement administrator cannot reach | 16 |
| agreement with the applicable electric utility as to the | 17 |
| contract terms and conditions, the procurement | 18 |
| administrator must notify the Commission of any disputed | 19 |
| terms and the Commission shall resolve the dispute. The | 20 |
| terms of the contracts shall not be subject to negotiation | 21 |
| by winning bidders, and the bidders must agree to the terms | 22 |
| of the contract in advance so that winning bids are | 23 |
| selected solely on the basis of price. | 24 |
| (3) Establishment of a market-based price benchmark. | 25 |
| As part of the development of the procurement process, the | 26 |
| procurement administrator, in consultation with the |
|
|
|
09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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| 1 |
| Commission staff, Agency staff, and the procurement | 2 |
| monitor, shall establish benchmarks for evaluating the | 3 |
| final prices in the contracts for each of the products that | 4 |
| will be procured through the procurement process. The | 5 |
| benchmarks shall be based on price data for similar | 6 |
| products for the same delivery period and same delivery | 7 |
| hub, or other delivery hubs after adjusting for that | 8 |
| difference. The price benchmarks may also be adjusted to | 9 |
| take into account differences between the information | 10 |
| reflected in the underlying data sources and the specific | 11 |
| products and procurement process being used to procure | 12 |
| power for the Illinois utilities. The benchmarks shall be | 13 |
| confidential but shall be provided to, and will be subject | 14 |
| to Commission review and approval, prior to a procurement | 15 |
| event. | 16 |
| (4) Request for proposals competitive procurement | 17 |
| process. The procurement administrator shall design and | 18 |
| issue a request for proposals to supply electricity in | 19 |
| accordance with each utility's procurement plan, as | 20 |
| approved by the Commission. The request for proposals shall | 21 |
| set forth a procedure for sealed, binding commitment | 22 |
| bidding with pay-as-bid settlement, and provision for | 23 |
| selection of bids on the basis of price. | 24 |
| (5) A plan for implementing contingencies in the event | 25 |
| of supplier default or failure of the procurement process | 26 |
| to fully meet the expected load requirement due to |
|
|
|
09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
|
| 1 |
| insufficient supplier participation, Commission rejection | 2 |
| of results, or any other cause. | 3 |
| (i) Event of supplier default: In the event of | 4 |
| supplier default, the utility shall review the | 5 |
| contract of the defaulting supplier to determine if the | 6 |
| amount of supply is 200 megawatts or greater, and if | 7 |
| there are more than 60 days remaining of the contract | 8 |
| term. If both of these conditions are met, and the | 9 |
| default results in termination of the contract, the | 10 |
| utility shall immediately notify the Illinois Power | 11 |
| Agency that a request for proposals must be issued to | 12 |
| procure replacement power, and the procurement | 13 |
| administrator shall run an additional procurement | 14 |
| event. If the contracted supply of the defaulting | 15 |
| supplier is less than 200 megawatts or there are less | 16 |
| than 60 days remaining of the contract term, the | 17 |
| utility shall procure power and energy from the | 18 |
| applicable regional transmission organization market, | 19 |
| including ancillary services, capacity, and day-ahead | 20 |
| or real time energy, or both, for the duration of the | 21 |
| contract term to replace the contracted supply; | 22 |
| provided, however, that if a needed product is not | 23 |
| available through the regional transmission | 24 |
| organization market it shall be purchased from the | 25 |
| wholesale market. | 26 |
| (ii) Failure of the procurement process to fully |
|
|
|
09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
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| 1 |
| meet the expected load requirement: If the procurement | 2 |
| process fails to fully meet the expected load | 3 |
| requirement due to insufficient supplier participation | 4 |
| or due to a Commission rejection of the procurement | 5 |
| results, the procurement administrator, the | 6 |
| procurement monitor, and the Commission staff shall | 7 |
| meet within 10 days to analyze potential causes of low | 8 |
| supplier interest or causes for the Commission | 9 |
| decision. If changes are identified that would likely | 10 |
| result in increased supplier participation, or that | 11 |
| would address concerns causing the Commission to | 12 |
| reject the results of the prior procurement event, the | 13 |
| procurement administrator may implement those changes | 14 |
| and rerun the request for proposals process according | 15 |
| to a schedule determined by those parties and | 16 |
| consistent with Section 1-75 of the Illinois Power | 17 |
| Agency Act and this subsection. In any event, a new | 18 |
| request for proposals process shall be implemented by | 19 |
| the procurement administrator within 90 days after the | 20 |
| determination that the procurement process has failed | 21 |
| to fully meet the expected load requirement. | 22 |
| (iii) In all cases where there is insufficient | 23 |
| supply provided under contracts awarded through the | 24 |
| procurement process to fully meet the electric | 25 |
| utility's load requirement, the utility shall meet the | 26 |
| load requirement by procuring power and energy from the |
|
|
|
09500HB5855ham001 |
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LRB095 17917 MJR 48216 a |
|
| 1 |
| applicable regional transmission organization market, | 2 |
| including ancillary services, capacity, and day-ahead | 3 |
| or real time energy or both; provided, however, that if | 4 |
| a needed product is not available through the regional | 5 |
| transmission organization market it shall be purchased | 6 |
| from the wholesale market. | 7 |
| (6) The procurement process described in this | 8 |
| subsection is exempt from the requirements of the Illinois | 9 |
| Procurement Code, pursuant to Section 20-10 of that Code. | 10 |
| (f) Within 2 business days after opening the sealed bids, | 11 |
| the procurement administrator shall submit a confidential | 12 |
| report to the Commission. The report shall contain the results | 13 |
| of the bidding for each of the products along with the | 14 |
| procurement administrator's recommendation for the acceptance | 15 |
| and rejection of bids based on the price benchmark criteria and | 16 |
| other factors observed in the process. The procurement monitor | 17 |
| also shall submit a confidential report to the Commission | 18 |
| within 2 business days after opening the sealed bids. The | 19 |
| report shall contain the procurement monitor's assessment of | 20 |
| bidder behavior in the process as well as an assessment of the | 21 |
| procurement administrator's compliance with the procurement | 22 |
| process and rules. The Commission shall review the confidential | 23 |
| reports submitted by the procurement administrator and | 24 |
| procurement monitor, and shall accept or reject the | 25 |
| recommendations of the procurement administrator within 2 | 26 |
| business days after receipt of the reports. |
|
|
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LRB095 17917 MJR 48216 a |
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| 1 |
| (g) Within 3 business days after the Commission decision | 2 |
| approving the results of a procurement event, the utility shall | 3 |
| enter into binding contractual arrangements with the winning | 4 |
| suppliers using the standard form contracts; except that the | 5 |
| utility shall not be required either directly or indirectly to | 6 |
| execute the contracts if a tariff that is consistent with | 7 |
| subsection (l) of this Section has not been approved and placed | 8 |
| into effect for that utility. | 9 |
| (h) The names of the successful bidders and the load | 10 |
| weighted average of the winning bid prices for each contract | 11 |
| type and for each contract term shall be made available to the | 12 |
| public at the time of Commission approval of a procurement | 13 |
| event. The Commission, the procurement monitor, the | 14 |
| procurement administrator, the Illinois Power Agency, and all | 15 |
| participants in the procurement process shall maintain the | 16 |
| confidentiality of all other supplier and bidding information | 17 |
| in a manner consistent with all applicable laws, rules, | 18 |
| regulations, and tariffs. Confidential information, including | 19 |
| the confidential reports submitted by the procurement | 20 |
| administrator and procurement monitor pursuant to subsection | 21 |
| (f) of this Section, shall not be made publicly available and | 22 |
| shall not be discoverable by any party in any proceeding, | 23 |
| absent a compelling demonstration of need, nor shall those | 24 |
| reports be admissible in any proceeding other than one for law | 25 |
| enforcement purposes. | 26 |
| (i) Within 2 business days after a Commission decision |
|
|
|
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LRB095 17917 MJR 48216 a |
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| 1 |
| approving the results of a procurement event or such other date | 2 |
| as may be required by the Commission from time to time, the | 3 |
| utility shall file for informational purposes with the | 4 |
| Commission its actual or estimated retail supply charges, as | 5 |
| applicable, by customer supply group reflecting the costs | 6 |
| associated with the procurement and computed in accordance with | 7 |
| the tariffs filed pursuant to subsection (l) of this Section | 8 |
| and approved by the Commission. | 9 |
| (j) Within 60 days following the effective date of this | 10 |
| amendatory Act, each electric utility that on December 31, 2005 | 11 |
| provided electric service to at least 100,000 customers in | 12 |
| Illinois shall prepare and file with the Commission an initial | 13 |
| procurement plan, which shall conform in all material respects | 14 |
| to the requirements of the procurement plan set forth in | 15 |
| subsection (b); provided, however, that the Illinois Power | 16 |
| Agency Act shall not apply to the initial procurement plan | 17 |
| prepared pursuant to this subsection. The initial procurement | 18 |
| plan shall identify the portfolio of power and energy products | 19 |
| to be procured and delivered for the period June 2008 through | 20 |
| May 2009, and shall identify the proposed procurement | 21 |
| administrator, who shall have the same experience and expertise | 22 |
| as is required of a procurement administrator hired pursuant to | 23 |
| Section 1-75 of the Illinois Power Agency Act. Copies of the | 24 |
| procurement plan shall be posted and made publicly available on | 25 |
| the Commission's website. The initial procurement plan may | 26 |
| include contracts for renewable resources that extend beyond |
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| May 2009. | 2 |
| (i) Within 14 days following filing of the initial | 3 |
| procurement plan, any person may file a detailed objection | 4 |
| with the Commission contesting the procurement plan | 5 |
| submitted by the electric utility. All objections to the | 6 |
| electric utility's plan shall be specific, supported by | 7 |
| data or other detailed analyses. The electric utility may | 8 |
| file a response to any objections to its procurement plan | 9 |
| within 7 days after the date objections are due to be | 10 |
| filed. Within 7 days after the date the utility's response | 11 |
| is due, the Commission shall determine whether a hearing is | 12 |
| necessary. If it determines that a hearing is necessary, it | 13 |
| shall require the hearing to be completed and issue an | 14 |
| order on the procurement plan within 60 days after the | 15 |
| filing of the procurement plan by the electric utility. | 16 |
| (ii) The order shall approve or modify the procurement | 17 |
| plan, approve an independent procurement administrator, | 18 |
| and approve or modify the electric utility's tariffs that | 19 |
| are proposed with the initial procurement plan. The | 20 |
| Commission shall approve the procurement plan if the | 21 |
| Commission determines that it will ensure adequate, | 22 |
| reliable, affordable, efficient, and environmentally | 23 |
| sustainable electric service at the lowest total cost over | 24 |
| time, taking into account any benefits of price stability. | 25 |
| (k) In order to promote price stability for residential and | 26 |
| small commercial customers during the transition to |
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| competition in Illinois, and notwithstanding any other | 2 |
| provision of this Act, each electric utility subject to this | 3 |
| Section shall enter into one or more multi-year financial swap | 4 |
| contracts that become effective on the effective date of this | 5 |
| amendatory Act. These contracts may be executed with generators | 6 |
| and power marketers, including affiliated interests of the | 7 |
| electric utility. These contracts shall be for a term of no | 8 |
| more than 5 years and shall, for each respective utility or for | 9 |
| any Illinois electric utilities that are affiliated by virtue | 10 |
| of a common parent company and that are thereby considered a | 11 |
| single electric utility for purposes of this subsection (k), | 12 |
| not exceed in the aggregate 3,000 megawatts for any hour of the | 13 |
| year. The contracts shall be financial contracts and not energy | 14 |
| sales contracts. The contracts shall be executed as | 15 |
| transactions under a negotiated master agreement based on the | 16 |
| form of master agreement for financial swap contracts sponsored | 17 |
| by the International Swaps and Derivatives Association, Inc. | 18 |
| and shall be considered pre-existing contracts in the | 19 |
| utilities' procurement plans for residential and small | 20 |
| commercial customers. Costs incurred pursuant to a contract | 21 |
| authorized by this subsection (k) shall be deemed prudently | 22 |
| incurred and reasonable in amount and the electric utility | 23 |
| shall be entitled to full cost recovery pursuant to the tariffs | 24 |
| filed with the Commission. | 25 |
| (l) An electric utility shall recover its costs of | 26 |
| procuring power and energy under this Section. The utility |
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| shall file with the initial procurement plan its proposed | 2 |
| tariffs through which its costs of procuring power that are | 3 |
| incurred pursuant to a Commission-approved procurement plan | 4 |
| and those other costs identified in this subsection (l), will | 5 |
| be recovered. The tariffs shall include a formula rate or | 6 |
| charge designed to pass through both the costs incurred by the | 7 |
| utility in procuring a supply of electric power and energy for | 8 |
| the applicable customer classes with no mark-up or return on | 9 |
| the price paid by the utility for that supply, plus any just | 10 |
| and reasonable costs that the utility incurs in arranging and | 11 |
| providing for the supply of electric power and energy. The | 12 |
| formula rate or charge shall also contain provisions that | 13 |
| ensure that its application does not result in over or under | 14 |
| recovery due to changes in customer usage and demand patterns, | 15 |
| and that provide for the correction, on at least an annual | 16 |
| basis, of any accounting errors that may occur. A utility shall | 17 |
| recover through the tariff all reasonable costs incurred to | 18 |
| implement or comply with any procurement plan that is developed | 19 |
| and put into effect pursuant to Section 1-75 of the Illinois | 20 |
| Power Agency Act and this Section, including any fees assessed | 21 |
| by the Illinois Power Agency, costs associated with load | 22 |
| balancing, and contingency plan costs. The electric utility | 23 |
| shall also recover its full costs of procuring electric supply | 24 |
| for which it contracted before the effective date of this | 25 |
| Section in conjunction with the provision of full requirements | 26 |
| service under fixed-price bundled service tariffs subsequent |
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| to December 31, 2006. All such costs shall be deemed to have | 2 |
| been prudently incurred. The pass-through tariffs that are | 3 |
| filed and approved pursuant to this Section shall not be | 4 |
| subject to review under, or in any way limited by, Section | 5 |
| 16-111(i) of this Act. | 6 |
| (m) The Commission has the authority to adopt rules to | 7 |
| carry out the provisions of this Section. For the public | 8 |
| interest, safety, and welfare, the Commission also has | 9 |
| authority to adopt rules to carry out the provisions of this | 10 |
| Section on an emergency basis immediately following the | 11 |
| effective date of this amendatory Act. | 12 |
| (n) Notwithstanding any other provision of this Act, any | 13 |
| affiliated electric utilities that submit a single procurement | 14 |
| plan covering their combined needs may procure for those | 15 |
| combined needs in conjunction with that plan, and may enter | 16 |
| jointly into power supply contracts, purchases, and other | 17 |
| procurement arrangements, and allocate capacity and energy and | 18 |
| cost responsibility therefor among themselves in proportion to | 19 |
| their requirements. | 20 |
| (o) On or before June 1 of each year, the Commission shall | 21 |
| hold an informal hearing for the purpose of receiving comments | 22 |
| on the prior year's procurement process and any recommendations | 23 |
| for change.
| 24 |
| (p) An electric utility subject to this Section may propose | 25 |
| to invest, lease, own, or operate an electric generation | 26 |
| facility as part of its procurement plan, provided the utility |
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| demonstrates that such facility is the least-cost option to | 2 |
| provide electric service to eligible retail customers. If the | 3 |
| facility is shown to be the least-cost option and is included | 4 |
| in a procurement plan prepared in accordance with Section 1-75 | 5 |
| of the Illinois Power Agency Act and this Section, then the | 6 |
| electric utility shall make a filing pursuant to Section 8-406 | 7 |
| of the Act, and may request of the Commission any statutory | 8 |
| relief required thereunder. If the Commission grants all of the | 9 |
| necessary approvals for the proposed facility, such supply | 10 |
| shall thereafter be considered as a pre-existing contract under | 11 |
| subsection (b) of this Section. The Commission shall in any | 12 |
| order approving a proposal under this subsection specify how | 13 |
| the utility will recover the prudently incurred costs of | 14 |
| investing in, leasing, owning, or operating such generation | 15 |
| facility through just and reasonable rates charged to eligible | 16 |
| retail customers. Cost recovery for facilities included in the | 17 |
| utility's procurement plan pursuant to this subsection shall | 18 |
| not be subject to review under or in any way limited by the | 19 |
| provisions of Section 16-111(i) of this Act. Nothing in this | 20 |
| Section is intended to prohibit a utility from filing for a | 21 |
| fuel adjustment clause as is otherwise permitted under Section | 22 |
| 9-220 of this Act.
| 23 |
| (q) Notwithstanding any other rulemaking authority that | 24 |
| may exist, neither the Governor nor any agency or agency head | 25 |
| under the jurisdiction of the Governor has any authority to | 26 |
| make or promulgate rules to implement or enforce the provisions |
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| of this amendatory Act of the 95th General Assembly. If, | 2 |
| however, the Governor believes that rules are necessary to | 3 |
| implement or enforce the provisions of this amendatory Act of | 4 |
| the 95th General Assembly, the Governor may suggest rules to | 5 |
| the General Assembly by filing them with the Clerk of the House | 6 |
| and the Secretary of the Senate and by requesting that the | 7 |
| General Assembly authorize such rulemaking by law, enact those | 8 |
| suggested rules into law, or take any other appropriate action | 9 |
| in the General Assembly's discretion. Nothing contained in this | 10 |
| amendatory Act of the 95th General Assembly shall be | 11 |
| interpreted to grant rulemaking authority under any other | 12 |
| Illinois statute where such authority is not otherwise | 13 |
| explicitly given. For the purposes of this amendatory Act of | 14 |
| the 95th General Assembly, "rules" is given the meaning | 15 |
| contained in Section 1-70 of the Illinois Administrative | 16 |
| Procedure Act, and "agency" and "agency head" are given the | 17 |
| meanings contained in Sections 1-20 and 1-25 of the Illinois | 18 |
| Administrative Procedure Act to the extent that such | 19 |
| definitions apply to agencies or agency heads under the | 20 |
| jurisdiction of the Governor.
| 21 |
| (Source: P.A. 95-481, eff. 8-28-07.)
| 22 |
| Section 99. Effective date. This Act takes effect upon | 23 |
| becoming law.".
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