Full Text of SB1987 95th General Assembly
SB1987ham001 95TH GENERAL ASSEMBLY
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Rep. Gary Hannig
Filed: 5/30/2008
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| AMENDMENT TO SENATE BILL 1987
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| AMENDMENT NO. ______. Amend Senate Bill 1987 by replacing | 3 |
| everything after the enacting clause with the following:
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| "ARTICLE 1 | 5 |
| Section 1-1. Short title. This Article may be cited as the | 6 |
| Clean Coal Portfolio Standard Law. | 7 |
| Section 1-5. The Illinois Power Agency Act is amended by | 8 |
| changing Sections 1-5, 1-10, 1-75, and 1-80 as follows: | 9 |
| (20 ILCS 3855/1-5)
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| Sec. 1-5. Legislative declarations and findings. The | 11 |
| General Assembly finds and declares: | 12 |
| (1) The health, welfare, and prosperity of all Illinois | 13 |
| citizens require the provision of adequate, reliable, | 14 |
| affordable, efficient, and environmentally sustainable |
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| electric service at the lowest total cost over time, taking | 2 |
| into account any benefits of price stability. | 3 |
| (2) The transition to retail competition is not | 4 |
| complete. Some customers, especially residential and small | 5 |
| commercial customers, have failed to benefit from lower | 6 |
| electricity costs from retail and wholesale competition. | 7 |
| (3) Escalating prices for electricity in Illinois pose | 8 |
| a serious threat to the economic well-being, health, and | 9 |
| safety of the residents of and the commerce and industry of | 10 |
| the State. | 11 |
| (4) To protect against this threat to economic | 12 |
| well-being, health, and safety it is necessary to improve | 13 |
| the process of procuring electricity to serve Illinois | 14 |
| residents, to promote investment in energy efficiency and | 15 |
| demand-response measures, and to support development of | 16 |
| clean coal technologies and renewable resources. | 17 |
| (5) Procuring a diverse electricity supply portfolio | 18 |
| will ensure the lowest total cost over time for adequate, | 19 |
| reliable, efficient, and environmentally sustainable | 20 |
| electric service. | 21 |
| (6) Including cost-effective renewable resources in | 22 |
| that portfolio will reduce long-term direct and indirect | 23 |
| costs to consumers by decreasing environmental impacts and | 24 |
| by avoiding or delaying the need for new generation, | 25 |
| transmission, and distribution infrastructure. | 26 |
| (7) Energy efficiency, demand-response measures, and |
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| renewable energy are resources currently underused in | 2 |
| Illinois. | 3 |
| (8) The State should encourage the use of advanced | 4 |
| clean coal technologies that capture and sequester carbon | 5 |
| dioxide emissions to advance environmental protection | 6 |
| goals and to demonstrate the viability of coal and | 7 |
| coal-derived fuels in a carbon-constrained economy. | 8 |
| The General Assembly therefore finds that it is necessary | 9 |
| to create the Illinois Power Agency and that the goals and | 10 |
| objectives of that Agency are to accomplish each of the | 11 |
| following: | 12 |
| (A) Develop electricity procurement plans to ensure | 13 |
| adequate, reliable, affordable, efficient, and | 14 |
| environmentally sustainable electric service at the lowest | 15 |
| total cost over time, taking into account any benefits of | 16 |
| price stability, for electric utilities that on December | 17 |
| 31, 2005 provided electric service to at least 100,000 | 18 |
| customers in Illinois. The procurement plan shall be | 19 |
| updated on an annual basis and shall include renewable | 20 |
| energy resources sufficient to achieve the standards | 21 |
| specified in this Act. | 22 |
| (B) Conduct competitive procurement processes to | 23 |
| procure the supply resources identified in the procurement | 24 |
| plan. | 25 |
| (C) Develop electric generation and co-generation | 26 |
| facilities that use indigenous coal or renewable |
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| resources, or both, financed with bonds issued by the | 2 |
| Illinois Finance Authority. | 3 |
| (D) Supply electricity from the Agency's facilities at | 4 |
| cost to one or more of the following: municipal electric | 5 |
| systems, governmental aggregators, or rural electric | 6 |
| cooperatives in Illinois.
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| (Source: P.A. 95-481, eff. 8-28-07.) | 8 |
| (20 ILCS 3855/1-10)
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| Sec. 1-10. Definitions. | 10 |
| "Agency" means the Illinois Power Agency. | 11 |
| "Agency loan agreement" means any agreement pursuant to | 12 |
| which the Illinois Finance Authority agrees to loan the | 13 |
| proceeds of revenue bonds issued with respect to a project to | 14 |
| the Agency upon terms providing for loan repayment installments | 15 |
| at least sufficient to pay when due all principal of, interest | 16 |
| and premium, if any, on those revenue bonds, and providing for | 17 |
| maintenance, insurance, and other matters in respect of the | 18 |
| project. | 19 |
| "Authority" means the Illinois Finance Authority. | 20 |
| "Clean coal facility" means an electric generating | 21 |
| facility that uses primarily coal as a feedstock and that | 22 |
| captures and sequesters carbon emissions at the following | 23 |
| levels: at least 50% of the total carbon emissions that the | 24 |
| facility would otherwise emit if, at the time construction | 25 |
| commences, the facility is scheduled to commence operation |
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| before 2015, at least 70% of the total carbon emissions that | 2 |
| the facility would otherwise emit if, at the time construction | 3 |
| commences, the facility is scheduled to commence operation | 4 |
| during 2015 or 2016, and at least 90% of the total carbon | 5 |
| emissions that the facility would otherwise emit if, at the | 6 |
| time construction commences, the facility is scheduled to | 7 |
| commence operation after 2016. The power block of the clean | 8 |
| coal facility shall not exceed allowable emission rates for | 9 |
| sulfur dioxide, nitrogen oxides, carbon monoxide, particulates | 10 |
| and mercury for a natural gas-fired combined-cycle facility the | 11 |
| same size as and in the same location as the clean coal | 12 |
| facility at the time the clean coal facility obtains an | 13 |
| approved air permit. All coal used by a clean coal facility | 14 |
| shall have high volatile bituminous rank and greater than 1.7 | 15 |
| pounds of sulfur per million btu content, unless the clean coal | 16 |
| facility does not use gasification technology and was operating | 17 |
| as a conventional coal-fired electric generating facility on | 18 |
| the effective date of this amendatory Act of the 95th General | 19 |
| Assembly. | 20 |
| "Clean coal SNG facility" means a facility that uses a | 21 |
| gasification process to produce substitute natural gas, that | 22 |
| sequesters at least 90% of the total carbon emissions that the | 23 |
| facility would otherwise emit and that uses coal as a | 24 |
| feedstock, with all such coal having a high bituminous rank and | 25 |
| greater than 1.7 pounds of sulfur per million btu content. | 26 |
| "Commission" means the Illinois Commerce Commission. |
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| "Costs incurred in connection with the development and | 2 |
| construction of a facility" means: | 3 |
| (1) the cost of acquisition of all real property and | 4 |
| improvements in connection therewith and equipment and | 5 |
| other property, rights, and easements acquired that are | 6 |
| deemed necessary for the operation and maintenance of the | 7 |
| facility; | 8 |
| (2) financing costs with respect to bonds, notes, and | 9 |
| other evidences of indebtedness of the Agency; | 10 |
| (3) all origination, commitment, utilization, | 11 |
| facility, placement, underwriting, syndication, credit | 12 |
| enhancement, and rating agency fees; | 13 |
| (4) engineering, design, procurement, consulting, | 14 |
| legal, accounting, title insurance, survey, appraisal, | 15 |
| escrow, trustee, collateral agency, interest rate hedging, | 16 |
| interest rate swap, capitalized interest and other | 17 |
| financing costs, and other expenses for professional | 18 |
| services; and | 19 |
| (5) the costs of plans, specifications, site study and | 20 |
| investigation, installation, surveys, other Agency costs | 21 |
| and estimates of costs, and other expenses necessary or | 22 |
| incidental to determining the feasibility of any project, | 23 |
| together with such other expenses as may be necessary or | 24 |
| incidental to the financing, insuring, acquisition, and | 25 |
| construction of a specific project and placing that project | 26 |
| in operation. |
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| "Department" means the Department of Commerce and Economic | 2 |
| Opportunity. | 3 |
| "Director" means the Director of the Illinois Power Agency. | 4 |
| "Demand-response" means measures that decrease peak | 5 |
| electricity demand or shift demand from peak to off-peak | 6 |
| periods. | 7 |
| "Energy efficiency" means measures that reduce the amount | 8 |
| of electricity required to achieve a given end use. | 9 |
| "Electric utility" has the same definition as found in | 10 |
| Section 16-102 of the Public Utilities Act. | 11 |
| "Facility" means an electric generating unit or a | 12 |
| co-generating unit that produces electricity along with | 13 |
| related equipment necessary to connect the facility to an | 14 |
| electric transmission or distribution system. | 15 |
| "Governmental aggregator" means one or more units of local | 16 |
| government that individually or collectively procure | 17 |
| electricity to serve residential retail electrical loads | 18 |
| located within its or their jurisdiction. | 19 |
| "Local government" means a unit of local government as | 20 |
| defined in Article VII of Section 1 of the Illinois | 21 |
| Constitution. | 22 |
| "Municipality" means a city, village, or incorporated | 23 |
| town. | 24 |
| "Person" means any natural person, firm, partnership, | 25 |
| corporation, either domestic or foreign, company, association, | 26 |
| limited liability company, joint stock company, or association |
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| and includes any trustee, receiver, assignee, or personal | 2 |
| representative thereof. | 3 |
| "Project" means the planning, bidding, and construction of | 4 |
| a facility. | 5 |
| "Public utility" has the same definition as found in | 6 |
| Section 3-105 of the Public Utilities Act. | 7 |
| "Real property" means any interest in land together with | 8 |
| all structures, fixtures, and improvements thereon, including | 9 |
| lands under water and riparian rights, any easements, | 10 |
| covenants, licenses, leases, rights-of-way, uses, and other | 11 |
| interests, together with any liens, judgments, mortgages, or | 12 |
| other claims or security interests related to real property. | 13 |
| "Renewable energy credit" means a tradable credit that | 14 |
| represents the environmental attributes of a certain amount of | 15 |
| energy produced from a renewable energy resource. | 16 |
| "Renewable energy resources" includes energy and its | 17 |
| associated renewable energy credit or renewable energy credits | 18 |
| from wind, solar thermal energy, photovoltaic cells and panels, | 19 |
| biodiesel, crops and untreated and unadulterated organic waste | 20 |
| biomass, trees and tree trimmings, hydropower that does not | 21 |
| involve new construction or significant expansion of | 22 |
| hydropower dams, and other alternative sources of | 23 |
| environmentally preferable energy. For purposes of this Act, | 24 |
| landfill gas produced in the State is considered a renewable | 25 |
| energy resource. "Renewable energy resources" does not include | 26 |
| the incineration, burning, or heating of tires, garbage, |
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| general household, institutional, and commercial waste, | 2 |
| industrial lunchroom or office waste, landscape waste other | 3 |
| than trees and tree trimmings, railroad crossties, utility | 4 |
| poles, and construction or demolition debris, other than | 5 |
| untreated and unadulterated waste wood. | 6 |
| "Revenue bond" means any bond, note, or other evidence of | 7 |
| indebtedness issued by the Authority, the principal and | 8 |
| interest of which is payable solely from revenues or income | 9 |
| derived from any project or activity of the Agency. | 10 |
| "Sequester" means permanent storage of carbon dioxide by | 11 |
| injecting it into a saline aquifer, a depleted gas reservoir, | 12 |
| or an oil reservoir, directly or through an enhanced oil | 13 |
| recovery process that may involve intermediate storage in a | 14 |
| salt dome. | 15 |
| "Substitute natural gas" or "SNG" means a gas manufactured | 16 |
| by gasification of hydrocarbon feedstock, which is | 17 |
| substantially interchangeable in use and distribution with | 18 |
| conventional natural gas. | 19 |
| "Total resource cost test" or "TRC test" means a standard | 20 |
| that is met if, for an investment in energy efficiency or | 21 |
| demand-response measures, the benefit-cost ratio is greater | 22 |
| than one. The benefit-cost ratio is the ratio of the net | 23 |
| present value of the total benefits of the program to the net | 24 |
| present value of the total costs as calculated over the | 25 |
| lifetime of the measures. A total resource cost test compares | 26 |
| the sum of avoided electric utility costs, representing the |
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| benefits that accrue to the system and the participant in the | 2 |
| delivery of those efficiency measures, to the sum of all | 3 |
| incremental costs of end-use measures that are implemented due | 4 |
| to the program (including both utility and participant | 5 |
| contributions), plus costs to administer, deliver, and | 6 |
| evaluate each demand-side program, to quantify the net savings | 7 |
| obtained by substituting the demand-side program for supply | 8 |
| resources. In calculating avoided costs of power and energy | 9 |
| that an electric utility would otherwise have had to acquire, | 10 |
| reasonable estimates shall be included of financial costs | 11 |
| likely to be imposed by future regulations and legislation on | 12 |
| emissions of greenhouse gases.
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| (Source: P.A. 95-481, eff. 8-28-07.) | 14 |
| (20 ILCS 3855/1-75)
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| Sec. 1-75. Planning and Procurement Bureau. The Planning | 16 |
| and Procurement Bureau has the following duties and | 17 |
| responsibilities: | 18 |
| (a) The Planning and Procurement Bureau shall each | 19 |
| year, beginning in 2008, develop plans for the procurement | 20 |
| of electricity supply, including electricity generated by | 21 |
| clean coal facilities and facilities that use renewable | 22 |
| resources. The Bureau shall plans and conduct competitive | 23 |
| procurement processes in accordance with the requirements | 24 |
| of Section 16-111.5 of the Public Utilities Act for the | 25 |
| eligible retail customers of electric utilities that on |
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| December 31, 2005 provided electric service to at least | 2 |
| 100,000 customers in Illinois. For the purposes of this | 3 |
| Section, the term "eligible retail customers" has the same | 4 |
| definition as found in Section 16-111.5(a) of the Public | 5 |
| Utilities Act. | 6 |
| (1) The Agency shall each year, beginning in 2008, | 7 |
| as needed, issue a request for qualifications for | 8 |
| experts or expert consulting firms to develop the | 9 |
| procurement plans in accordance with Section 16-111.5 | 10 |
| of the Public Utilities Act. In order to qualify an | 11 |
| expert or expert consulting firm must have: | 12 |
| (A) direct previous experience assembling | 13 |
| large-scale power supply plans or portfolios for | 14 |
| end-use customers; | 15 |
| (B) an advanced degree in economics, | 16 |
| mathematics, engineering, risk management, or a | 17 |
| related area of study; | 18 |
| (C) 10 years of experience in the electricity | 19 |
| sector, including managing supply risk; | 20 |
| (D) expertise in wholesale electricity market | 21 |
| rules, including those established by the Federal | 22 |
| Energy Regulatory Commission and regional | 23 |
| transmission organizations; | 24 |
| (E) expertise in credit protocols and | 25 |
| familiarity with contract protocols; | 26 |
| (F) adequate resources to perform and fulfill |
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| the required functions and responsibilities; and | 2 |
| (G) the absence of a conflict of interest and | 3 |
| inappropriate bias for or against potential | 4 |
| bidders or the affected electric utilities. | 5 |
| (2) The Agency shall each year, as needed, issue a | 6 |
| request for qualifications for a procurement | 7 |
| administrator to conduct the competitive procurement | 8 |
| processes in accordance with Section 16-111.5 of the | 9 |
| Public Utilities Act. In order to qualify an expert or | 10 |
| expert consulting firm must have: | 11 |
| (A) direct previous experience administering a | 12 |
| large-scale competitive procurement process; | 13 |
| (B) an advanced degree in economics, | 14 |
| mathematics, engineering, or a related area of | 15 |
| study; | 16 |
| (C) 10 years of experience in the electricity | 17 |
| sector, including risk management experience; | 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 and contract | 23 |
| 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 |
| (3) The Agency shall provide affected utilities | 4 |
| and other interested parties with the lists of | 5 |
| qualified experts or expert consulting firms | 6 |
| identified through the request for qualifications | 7 |
| processes that are under consideration to develop the | 8 |
| procurement plans and to serve as the procurement | 9 |
| administrator. The Agency shall also provide each | 10 |
| qualified expert's or expert consulting firm's | 11 |
| response to the request for qualifications. All | 12 |
| information provided under this subparagraph shall | 13 |
| also be provided to the Commission. The Agency may | 14 |
| provide by rule for fees associated with supplying the | 15 |
| information to utilities and other interested parties. | 16 |
| These parties shall, within 5 business days, notify the | 17 |
| Agency in writing if they object to any experts or | 18 |
| expert consulting firms on the lists. Objections shall | 19 |
| be based on: | 20 |
| (A) failure to satisfy qualification criteria; | 21 |
| (B) identification of a conflict of interest; | 22 |
| or | 23 |
| (C) evidence of inappropriate bias for or | 24 |
| against potential bidders or the affected | 25 |
| utilities. | 26 |
| The Agency shall remove experts or expert |
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| consulting firms from the lists within 10 days if there | 2 |
| is a reasonable basis for an objection and provide the | 3 |
| updated lists to the affected utilities and other | 4 |
| interested parties. If the Agency fails to remove an | 5 |
| expert or expert consulting firm from a list, an | 6 |
| objecting party may seek review by the Commission | 7 |
| within 5 days thereafter by filing a petition, and the | 8 |
| Commission shall render a ruling on the petition within | 9 |
| 10 days. There is no right of appeal of the | 10 |
| Commission's ruling. | 11 |
| (4) The Agency shall issue requests for proposals | 12 |
| to the qualified experts or expert consulting firms to | 13 |
| develop a procurement plan for the affected utilities | 14 |
| and to serve as procurement administrator. | 15 |
| (5) The Agency shall select an expert or expert | 16 |
| consulting firm to develop procurement plans based on | 17 |
| the proposals submitted and shall award one-year | 18 |
| contracts to those selected with an option for the | 19 |
| Agency for a one-year renewal. | 20 |
| (6) The Agency shall select an expert or expert | 21 |
| consulting firm, with approval of the Commission, to | 22 |
| serve as procurement administrator based on the | 23 |
| proposals submitted. If the Commission rejects, within | 24 |
| 5 days, the Agency's selection, the Agency shall submit | 25 |
| another recommendation within 3 days based on the | 26 |
| proposals submitted. The Agency shall award a one-year |
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| contract to the expert or expert consulting firm so | 2 |
| selected with Commission approval with an option for | 3 |
| the Agency for a one-year renewal. | 4 |
| (b) The experts or expert consulting firms retained by | 5 |
| the Agency shall, as appropriate, prepare procurement | 6 |
| plans, and conduct a competitive procurement process as | 7 |
| prescribed in Section 16-111.5 of the Public Utilities Act, | 8 |
| to ensure adequate, reliable, affordable, efficient, and | 9 |
| environmentally sustainable electric service at the lowest | 10 |
| total cost over time, taking into account any benefits of | 11 |
| price stability, for eligible retail customers of electric | 12 |
| utilities that on December 31, 2005 provided electric | 13 |
| service to at least 100,000 customers in the State of | 14 |
| Illinois. | 15 |
| (c) Renewable portfolio standard. | 16 |
| (1) The procurement plans shall include | 17 |
| cost-effective renewable energy resources. A minimum | 18 |
| percentage of each utility's total supply to serve the | 19 |
| load of eligible retail customers, as defined in | 20 |
| Section 16-111.5(a) of the Public Utilities Act, | 21 |
| procured for each of the following years shall be | 22 |
| generated from cost-effective renewable energy | 23 |
| resources: at least 2% by June 1, 2008; at least 4% by | 24 |
| June 1, 2009; at least 5% by June 1, 2010; at least 6% | 25 |
| by June 1, 2011; at least 7% by June 1, 2012; at least | 26 |
| 8% by June 1, 2013; at least 9% by June 1, 2014; at |
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| least 10% by June 1, 2015; and increasing by at least | 2 |
| 1.5% each year thereafter to at least 25% by June 1, | 3 |
| 2025. To the extent that it is available, at least 75% | 4 |
| of the renewable energy resources used to meet these | 5 |
| standards shall come from wind generation. For | 6 |
| purposes of this Section, "cost-effective" means that | 7 |
| the costs of procuring renewable energy resources do | 8 |
| not cause the limit stated in paragraph (2) of this | 9 |
| subsection (c) to be exceeded and do not exceed | 10 |
| benchmarks based on market prices for renewable | 11 |
| resources in the region, which shall be developed by | 12 |
| the procurement administrator, in consultation with | 13 |
| the Commission staff, Agency staff, and the | 14 |
| procurement monitor and shall be subject to Commission | 15 |
| review and approval . | 16 |
| (2) For purposes of this subsection (c), the | 17 |
| required procurement of cost-effective renewable | 18 |
| energy resources for a particular year shall be | 19 |
| measured as a percentage of the actual amount of | 20 |
| electricity (megawatt-hours) supplied by the electric | 21 |
| utility to eligible retail customers in the planning | 22 |
| year ending immediately prior to the procurement. For | 23 |
| purposes of this subsection (c), the amount per | 24 |
| kilowatthour means the total amount paid for electric | 25 |
| service expressed on a per kilowatthour basis. For | 26 |
| purposes of this subsection (c), the total amount paid |
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| for electric service includes without limitation | 2 |
| amounts paid for supply, transmission, distribution, | 3 |
| surcharges, and add-on taxes. | 4 |
| Notwithstanding the requirements of this | 5 |
| subsection (c), the total of renewable energy | 6 |
| resources procured pursuant to the procurement plan | 7 |
| for any single year shall be reduced by an amount | 8 |
| necessary to limit the annual estimated average net | 9 |
| increase due to the costs of these resources included | 10 |
| in the amounts paid by eligible retail customers in | 11 |
| connection with electric service to: | 12 |
| (A) in 2008, no more than 0.5% of the amount | 13 |
| paid per kilowatthour by those customers during | 14 |
| the year ending May 31, 2007; | 15 |
| (B) in 2009, the greater of an additional 0.5% | 16 |
| of the amount paid per kilowatthour by those | 17 |
| customers during the year ending May 31, 2008 or 1% | 18 |
| of the amount paid per kilowatthour by those | 19 |
| customers during the year ending May 31, 2007; | 20 |
| (C) in 2010, the greater of an additional 0.5% | 21 |
| of the amount paid per kilowatthour by those | 22 |
| customers during the year ending May 31, 2009 or | 23 |
| 1.5% of the amount paid per kilowatthour by those | 24 |
| customers during the year ending May 31, 2007; | 25 |
| (D) in 2011, the greater of an additional 0.5% | 26 |
| of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2010 or 2% | 2 |
| of the amount paid per kilowatthour by those | 3 |
| customers during the year ending May 31, 2007; and | 4 |
| (E) thereafter, the amount of renewable energy | 5 |
| resources procured pursuant to the procurement | 6 |
| plan for any single year shall be reduced by an | 7 |
| amount necessary to limit the estimated average | 8 |
| net increase due to the cost of these resources | 9 |
| included in the amounts paid by eligible retail | 10 |
| customers in connection with electric service to | 11 |
| no more than the greater of 2.015% of the amount | 12 |
| paid per kilowatthour by those customers during | 13 |
| the year ending May 31, 2007 or the incremental | 14 |
| amount per kilowatthour paid for these resources | 15 |
| in 2011. | 16 |
| No later than June 30, 2011, the Commission shall | 17 |
| review the limitation on the amount of renewable energy | 18 |
| resources procured pursuant to this subsection (c) and | 19 |
| report to the General Assembly its findings as to | 20 |
| whether that limitation unduly constrains the | 21 |
| procurement of cost-effective renewable energy | 22 |
| resources. | 23 |
| (3) Through June 1, 2011, renewable energy | 24 |
| resources shall be counted for the purpose of meeting | 25 |
| the renewable energy standards set forth in paragraph | 26 |
| (1) of this subsection (c) only if they are generated |
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| from facilities located in the State, provided that | 2 |
| cost-effective renewable energy resources are | 3 |
| available from those facilities. If those | 4 |
| cost-effective resources are not available in | 5 |
| Illinois, they shall be procured in states that adjoin | 6 |
| Illinois and may be counted towards compliance. If | 7 |
| those cost-effective resources are not available in | 8 |
| Illinois or in states that adjoin Illinois, they shall | 9 |
| be purchased elsewhere and shall be counted towards | 10 |
| compliance. After June 1, 2011, cost-effective | 11 |
| renewable energy resources located in Illinois and in | 12 |
| states that adjoin Illinois may be counted towards | 13 |
| compliance with the standards set forth in paragraph | 14 |
| (1) of this subsection (c). If those cost-effective | 15 |
| resources are not available in Illinois or in states | 16 |
| that adjoin Illinois, they shall be purchased | 17 |
| elsewhere and shall be counted towards compliance. | 18 |
| (4) The electric utility shall retire all | 19 |
| renewable energy credits used to comply with the | 20 |
| standard. | 21 |
| (d) Clean coal portfolio standard. | 22 |
| (1) The procurement plans shall include electricity | 23 |
| generated by cost-effective clean coal facilities. At | 24 |
| least 5% of each utility's total supply to serve the load | 25 |
| of eligible retail customers in 2015 and each year | 26 |
| thereafter shall be generated by the initial clean coal |
|
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| facility, subject to the limits specified in paragraph (2) | 2 |
| of this subsection (d). It is the goal of the State that by | 3 |
| January 1, 2025, 25% of the electricity used in the State | 4 |
| shall be generated by cost-effective clean coal | 5 |
| facilities. For purposes of this Section, "cost-effective" | 6 |
| means that the costs of procuring electricity generated by | 7 |
| cost-effective clean coal facilities do not cause the limit | 8 |
| stated in paragraph (2) of this subsection (d) to be | 9 |
| exceeded and do not exceed cost-based benchmarks, which | 10 |
| shall be developed to assess all purchases of electricity | 11 |
| generated by clean coal facilities, other than the initial | 12 |
| clean coal facility, by the procurement administrator, in | 13 |
| consultation with the Commission staff, Agency staff, and | 14 |
| the procurement monitor and shall be subject to Commission | 15 |
| review and approval. For purposes of meeting the | 16 |
| requirements of this Section: | 17 |
| (A) A utility need not actually deliver | 18 |
| electricity purchased to comply with this Section to | 19 |
| eligible retail customers, provided that if the | 20 |
| utility claims credit for such purpose, subsequent | 21 |
| purchasers shall not receive any emission credits in | 22 |
| connection with the purchase of such electricity. | 23 |
| Utilities shall maintain adequate records documenting | 24 |
| the contractual disposition of all electricity | 25 |
| purchased to comply with this Section and shall file an | 26 |
| accounting with the load forecast that must be filed |
|
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| 1 |
| with the Agency by July 15 of each year, in accordance | 2 |
| with subsection (d) of Section 16-111.5 of the Public | 3 |
| Utilities Act. | 4 |
| (B) A utility shall be deemed to have complied with | 5 |
| this item (1) of the clean coal portfolio standard if, | 6 |
| in any given year, the utility solicits bids for | 7 |
| electricity generated by clean coal facilities but | 8 |
| does not receive acceptable bids for the quantity that | 9 |
| is needed, in combination with any existing contracts, | 10 |
| to comply with the portfolio standard for that year. | 11 |
| (2) For purposes of this subsection (d), the required | 12 |
| procurement of electricity generated by cost-effective | 13 |
| clean coal facilities 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 year | 17 |
| ending immediately prior to the procurement. For purposes | 18 |
| of this subsection (d) the amount per kilowatt-hour means | 19 |
| the total amount paid for electric service expressed on a | 20 |
| per kilowatt-hour basis. For purposes of this subsection | 21 |
| (d), the total amount paid for electric service includes | 22 |
| without limitation amounts paid for supply, transmission, | 23 |
| distribution, surcharges and add-on taxes. | 24 |
| Notwithstanding the requirements of this subsection | 25 |
| (d), the total amount of electricity generated by clean | 26 |
| coal facilities procured pursuant to the procurement plan |
|
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| for any given year shall be reduced by an amount necessary | 2 |
| to limit the annual estimated average net increase due to | 3 |
| the costs of these resources included in the amounts paid | 4 |
| by eligible retail customers in connection with electric | 5 |
| service to: | 6 |
| (i) in 2010, no more than 0.5% of the amount | 7 |
| paid per kilowatthour by those customers during | 8 |
| the year ending May 31, 2009; | 9 |
| (ii) in 2011, the greater of an additional 0.5% | 10 |
| of the amount paid per kilowatthour by those | 11 |
| customers during the year ending May 31, 2010 or 1% | 12 |
| of the amount paid per kilowatthour by those | 13 |
| customers during the year ending May 31, 2009; | 14 |
| (iii) in 2012, the greater of an additional | 15 |
| 0.5% of the amount paid per kilowatthour by those | 16 |
| customers during the year ending May 31, 2011 or | 17 |
| 1.5% of the amount paid per kilowatthour by those | 18 |
| customers during the year ending May 31, 2009; | 19 |
| (iv) in 2013, the greater of an additional 0.5% | 20 |
| of the amount paid per kilowatthour by those | 21 |
| customers during the year ending May 31, 2012 or 2% | 22 |
| of the amount paid per kilowatthour by those | 23 |
| customers during the year ending May 31, 2009; and | 24 |
| (v) thereafter, the amount of electricity | 25 |
| generated by clean coal facilities procured | 26 |
| pursuant to the procurement plan for any single |
|
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| year shall be reduced by an amount necessary to | 2 |
| limit the estimated average net increase due to the | 3 |
| cost of these resources included in the amounts | 4 |
| paid by eligible retail customers in connection | 5 |
| with electric service to no more than the greater | 6 |
| of (i) 2.015% of the amount paid per kilowatthour | 7 |
| by those customers during the year ending May 31, | 8 |
| 2009 or (ii) 0.5% of the amount paid per | 9 |
| kilowatt-hour by those customers during the year | 10 |
| ending on the last day of May of the prior year. | 11 |
| These requirements may be altered only as provided | 12 |
| by statute.
No later than June 30, 2015, the | 13 |
| Commission shall review the limitation on the | 14 |
| amount of electricity generated by clean coal | 15 |
| facilities procured pursuant to this subsection | 16 |
| (d) and report to the General Assembly its findings | 17 |
| as to whether that limitation unduly constrains | 18 |
| the procurement of cost-effective clean coal | 19 |
| facilities. | 20 |
| (3) Initial clean coal facility. In order to promote | 21 |
| development of clean coal facilities in Illinois, each | 22 |
| electric utility subject to this Section shall execute a | 23 |
| power purchase agreement to purchase electricity from a | 24 |
| proposed clean coal facility in Illinois (the "initial | 25 |
| clean coal facility") that will have a nameplate capacity | 26 |
| of at least 500 MW when commercial operation commences, |
|
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| that has a final Clean Air Act permit on the effective date | 2 |
| of this amendatory Act of the 95th General Assembly, and | 3 |
| that will meet the definition of clean coal facility in | 4 |
| Section 1-10 of this Act when commercial operation | 5 |
| commences. The power purchase agreements with this initial | 6 |
| clean coal facility shall be executed within 60 days after | 7 |
| the later of the effective date of this amendatory Act of | 8 |
| the 95th General Assembly or approval of the agreement by | 9 |
| the Federal Energy Regulatory Commission and shall be | 10 |
| considered pre-existing contracts in the utilities' | 11 |
| procurement plans for eligible retail customers. The | 12 |
| Agency and the Commission shall have authority to inspect | 13 |
| all books and records associated with the initial clean | 14 |
| coal facility during the term of such a power purchase | 15 |
| agreement. A utility's power purchase agreement for the | 16 |
| sale of energy and capacity produced by the initial clean | 17 |
| coal facility shall: | 18 |
| (i) provide for a formula rate, approved | 19 |
| pursuant to paragraph (4) of this subsection (d), | 20 |
| which shall be determined using a cost of service | 21 |
| methodology employing either a level or deferred | 22 |
| capital recovery component, based on a capital | 23 |
| structure consisting of 45% equity and 55% debt, | 24 |
| and a return on equity as may be approved by the | 25 |
| Federal Energy Regulatory Commission, but in any | 26 |
| case not to exceed the lower of 11.5% or the rate |
|
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| of return approved by the General Assembly | 2 |
| pursuant to paragraph (4) of this subsection (d); | 3 |
| (ii) provide that all miscellaneous net | 4 |
| revenue, including but not limited to net revenue | 5 |
| from the sale of emission allowances, if any, | 6 |
| substitute natural gas, if any, grants or other | 7 |
| support provided by the State of Illinois or the | 8 |
| United States Government, firm transmission | 9 |
| rights, if any, by-products produced by the | 10 |
| facility, energy or capacity derived from the | 11 |
| facility and not purchased pursuant to paragraph | 12 |
| (3) of this subsection (d) or item (5) of | 13 |
| subsection (d) of Section 16-115 of the Public | 14 |
| Utilities Act, whether generated from the | 15 |
| synthesis gas derived from coal, from substitute | 16 |
| natural gas, or from natural gas, shall be credited | 17 |
| against the revenue requirement for this initial | 18 |
| clean coal facility; | 19 |
| (iii) establish a plant availability target of | 20 |
| 85% starting in the third year of commercial | 21 |
| operation and an incentive structure based on this | 22 |
| target, under which the penalty in any given year | 23 |
| shall not exceed 15% of the amount of return on | 24 |
| equity approved pursuant to paragraph (4) of this | 25 |
| subsection (d) and the bonus shall not exceed 10% | 26 |
| of the amount of return on equity approved pursuant |
|
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| to paragraph (4) of this subsection (d); | 2 |
| (iv) require delivery of electricity to the | 3 |
| initial clean coal facility busbar, which shall be | 4 |
| interconnected with transmission facilities | 5 |
| operated by the Midwest Independent System | 6 |
| Operator, the PJM Interconnection or their | 7 |
| successors; | 8 |
| (v) specify a term of no more than 30 years, | 9 |
| commencing on the commercial operation date of the | 10 |
| facility; | 11 |
| (vi) require a utility subject to this Section | 12 |
| to buy from the initial clean coal facility in each | 13 |
| hour an amount of energy equal to all clean coal | 14 |
| energy made available from the initial clean coal | 15 |
| facility during such hour times a fraction, the | 16 |
| numerator of which is such utility's market share | 17 |
| of electricity sold in the utility's service | 18 |
| territory (expressed in kilowatt-hours sold) | 19 |
| during the prior calendar month and the | 20 |
| denominator of which is the total market shares | 21 |
| during the prior month of all utilities and | 22 |
| alternative retail electric suppliers that are | 23 |
| party to a power purchase agreement with the | 24 |
| initial clean coal facility, provided that the | 25 |
| amount purchased by the utility in any year will be | 26 |
| limited by item (2) of this subsection (d); |
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| (vii) append documentation showing that the | 2 |
| formula rate and contract have been approved by the | 3 |
| Federal Energy Regulatory Commission pursuant to | 4 |
| Section 205 of the Federal Power Act; | 5 |
| (viii) provide that all costs associated with | 6 |
| the initial clean coal project will be | 7 |
| periodically reported to the Federal Energy | 8 |
| Regulatory Commission and to purchasers in | 9 |
| accordance with applicable laws governing | 10 |
| cost-based wholesale power contracts; | 11 |
| (ix) provide that any changes to the terms of | 12 |
| the contract are subject to review under the public | 13 |
| interest standard applied by the Federal Energy | 14 |
| Regulatory Commission pursuant to Sections 205 and | 15 |
| 206 of the Federal Power Act; | 16 |
| (x) conform with customary lender requirements | 17 |
| in power purchase agreements used as the basis for | 18 |
| financing non-utility generators; | 19 |
| (xi) permit the Illinois Power Agency to | 20 |
| assume ownership of the initial clean coal | 21 |
| facility, without monetary consideration and | 22 |
| otherwise on reasonable terms acceptable to the | 23 |
| Agency, if the Agency so requests no less than 3 | 24 |
| years prior to the end of the stated contract term; | 25 |
| (xii) require the owner of the initial clean | 26 |
| coal facility to provide documentation to the |
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| Commission each year, starting in the facility's | 2 |
| third year of commercial operation, accurately | 3 |
| reporting the quantity of carbon emissions from | 4 |
| the facility that have been captured and | 5 |
| sequestered and report any quantities of carbon | 6 |
| released from the site or sites at which carbon | 7 |
| emissions were sequestered in prior years, based | 8 |
| on continuous monitoring of such sites. If, in any | 9 |
| year after the third year of commercial operation, | 10 |
| the owner of the facility fails to demonstrate that | 11 |
| the initial clean coal facility captured and | 12 |
| sequestered at least 50% of the total carbon | 13 |
| emissions that the facility would otherwise emit | 14 |
| or that sequestration of emissions from prior | 15 |
| years has failed, resulting in the release of | 16 |
| carbon dioxide into the atmosphere, the owner of | 17 |
| the facility must offset excess emissions. Any | 18 |
| such carbon offsets must be permanent, additional, | 19 |
| verifiable, real, located within the state of | 20 |
| Illinois, and legally and practicably enforceable. | 21 |
| The cost of such offsets for the facility that are | 22 |
| not recoverable shall not exceed $15 million in any | 23 |
| given year. No costs of any such purchases of | 24 |
| carbon offsets may be recovered from a utility or | 25 |
| its customers. All carbon offsets purchased for | 26 |
| this purpose and any carbon emission credits |
|
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| associated with sequestration of carbon from the | 2 |
| facility must be permanently retired. The initial | 3 |
| clean coal facility shall not forfeit its | 4 |
| designation as a clean coal facility if the | 5 |
| facility fails to fully comply with the applicable | 6 |
| carbon sequestration requirements in any given | 7 |
| year, provided the requisite offsets are | 8 |
| purchased. However, the Attorney General, on | 9 |
| behalf of the People of the State of Illinois, may | 10 |
| specifically enforce the facility's sequestration | 11 |
| requirement and the other terms of this contract | 12 |
| provision; | 13 |
| (xiii) include limits on, and accordingly | 14 |
| provide for modification of, the amount of energy | 15 |
| the utility is required to purchase under the | 16 |
| contract consistent with item (2) of this | 17 |
| subsection (d); | 18 |
| (xiv) limit the utility's obligation to such | 19 |
| amount as the utility is allowed to recover through | 20 |
| tariffs filed with the Commission, provided that | 21 |
| neither the clean coal facility nor the utility | 22 |
| waives any right to assert federal pre-emption or | 23 |
| any other argument in response to a purported | 24 |
| disallowance of recovery costs; | 25 |
| (xv) limit the purchaser's obligation to incur | 26 |
| any liability until such time as the facility is |
|
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| generating power and energy and such power and | 2 |
| energy is being delivered to the facility busbar. | 3 |
| (4) Effective date of power purchase agreements for the | 4 |
| initial clean coal facility. Power purchase agreements | 5 |
| with the initial clean coal facility shall not become | 6 |
| effective unless authorizing legislation is enacted to | 7 |
| approve the projected price, stated in cents per | 8 |
| kilowatt-hour, to be charged for electricity generated by | 9 |
| the initial clean coal facility; the projected impact on | 10 |
| residential and small business customers' bills over the | 11 |
| life of the power purchase agreement; and allowable return | 12 |
| on equity for the project, based on a front end engineering | 13 |
| and design study, a facility cost report, and an operating | 14 |
| and maintenance cost quote for the facility, which shall be | 15 |
| prepared as follows: | 16 |
| (A) The facility cost report shall be prepared by | 17 |
| duly licensed engineering and construction firms | 18 |
| detailing the estimated capital costs payable to one or | 19 |
| more contractors or suppliers for the engineering, | 20 |
| procurement and construction of the components | 21 |
| comprising the initial clean coal facility and the | 22 |
| estimated costs of operation and maintenance of the | 23 |
| facility. The facility cost report shall include: | 24 |
| (i) an estimate of the capital cost of the core | 25 |
| plant based on one or more front end engineering | 26 |
| and design studies for the gasification island and |
|
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| related facilities. The core plant shall include | 2 |
| all civil, structural, mechanical, electrical, | 3 |
| control, and safety systems. | 4 |
| (ii) an estimate of the capital cost of the | 5 |
| balance of the plant, including any capital costs | 6 |
| associated with sequestration of carbon dioxide | 7 |
| emissions and all interconnects and interfaces | 8 |
| required to operate the facility, such as | 9 |
| transmission of electricity, construction or | 10 |
| backfeed power supply, pipelines to transport | 11 |
| substitute natural gas or carbon dioxide, potable | 12 |
| water supply, natural gas supply, water supply, | 13 |
| water discharge, landfill, access roads, and coal | 14 |
| delivery. | 15 |
| The quoted construction costs shall be expressed | 16 |
| in nominal dollars as of the date that the quote is | 17 |
| prepared and shall include (1) capitalized financing | 18 |
| costs during construction,
(2) taxes, insurance, and | 19 |
| other owners costs, and (3) an assumed escalation in | 20 |
| materials and labor beyond the date as of which the | 21 |
| construction cost quote is expressed. | 22 |
| (B) The front end engineering and design study for | 23 |
| the gasification island and the cost study for the | 24 |
| balance of plant shall include sufficient design work | 25 |
| to permit quantification of major categories of | 26 |
| materials, commodities and labor hours, and receipt of |
|
|
|
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| quotes from vendors of major equipment required to | 2 |
| construct and operate the clean coal facility. | 3 |
| (C) The facility cost report shall also include an | 4 |
| operating and maintenance cost quote that will provide | 5 |
| the estimated cost of delivered fuel, personnel, | 6 |
| maintenance contracts, chemicals, catalysts, | 7 |
| consumables, spares, and other fixed and variable | 8 |
| operations and maintenance costs. | 9 |
| (a) The delivered fuel cost estimate will be | 10 |
| provided by a recognized third party expert or | 11 |
| experts in the fuel and transportation industries. | 12 |
| (b) The balance of the operating and | 13 |
| maintenance cost quote, excluding delivered fuel | 14 |
| costs will be developed based on the inputs | 15 |
| provided by duly licensed engineering and | 16 |
| construction firms performing the construction | 17 |
| cost quote, potential vendors under long-term | 18 |
| service agreements and plant operating agreements, | 19 |
| or recognized third party plant operator or | 20 |
| operators. | 21 |
| The operating and maintenance cost quote | 22 |
| (including the cost of the front end engineering | 23 |
| and design study) shall be expressed in nominal | 24 |
| dollars as of the date that the quote is prepared | 25 |
| and shall include (1) taxes, insurance, and other | 26 |
| owner's costs, and (2) an assumed escalation in |
|
|
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| materials and labor beyond the date as of which the | 2 |
| operating and maintenance cost quote is expressed. | 3 |
| (D) Amounts paid to third parties unrelated to the | 4 |
| owner or owners of the initial clean coal facility to | 5 |
| prepare the core plant construction cost quote, | 6 |
| including the front end engineering and design study, | 7 |
| and the operating and maintenance cost quote will be | 8 |
| reimbursed through Coal Development Bonds. | 9 |
| (5) Re-powering and retrofitting coal-fired power | 10 |
| plants previously owned by Illinois utilities to qualify as | 11 |
| clean coal facilities. During the 2009 procurement | 12 |
| planning process and thereafter, the Agency and the | 13 |
| Commission shall consider contracts to purchase | 14 |
| electricity generated by power plants that were previously | 15 |
| owned by Illinois utilities and that have been or will be | 16 |
| converted into clean coal facilities, as defined by Section | 17 |
| 1-10 of this Act. The owners of such facilities may propose | 18 |
| long-term power purchase agreements to sell electricity on | 19 |
| a cost of service basis, to utilities and Alternative | 20 |
| Retail Electric Suppliers required, under subsection (d) | 21 |
| of this Section and item (5) of subsection (d) of Section | 22 |
| 16-115 of the Public Utilities Act to comply with the clean | 23 |
| coal portfolio standard. The Agency and the Commission may | 24 |
| approve any such utility contracts that do not exceed | 25 |
| cost-based benchmarks developed by the procurement | 26 |
| administrator, in consultation with the Commission staff, |
|
|
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| Agency staff and the procurement monitor, subject to | 2 |
| Commission review and approval. The Commission shall have | 3 |
| authority to inspect all books and records associated with | 4 |
| these clean coal facilities during the term of any such | 5 |
| contract. | 6 |
| (6) Costs incurred under this subsection (d) or | 7 |
| pursuant to a contract entered into under this subsection | 8 |
| (d) shall be deemed prudently incurred and reasonable in | 9 |
| amount and the electric utility shall be entitled to full | 10 |
| cost recovery pursuant to the tariffs filed with the | 11 |
| Commission. | 12 |
| (e) (d) The draft procurement plans are subject to | 13 |
| public comment, as required by Section 16-111.5 of the | 14 |
| Public Utilities Act. | 15 |
| (f) (e) The Agency shall submit the final procurement | 16 |
| plan to the Commission. The Agency shall revise a | 17 |
| procurement plan if the Commission determines that it does | 18 |
| not meet the standards set forth in Section 16-111.5 of the | 19 |
| Public Utilities Act. | 20 |
| (g) (f) The Agency shall assess fees to each affected | 21 |
| utility to recover the costs incurred in preparation of the | 22 |
| annual procurement plan for the utility. | 23 |
| (h) (g) The Agency shall assess fees to each bidder to | 24 |
| recover the costs incurred in connection with a competitive | 25 |
| procurement process.
| 26 |
| (Source: P.A. 95-481, eff. 8-28-07.) |
|
|
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| (20 ILCS 3855/1-80)
| 2 |
| Sec. 1-80. Resource Development Bureau. The Resource | 3 |
| Development Bureau has the following duties and | 4 |
| responsibilities: | 5 |
| (a) At the Agency's discretion, conduct feasibility | 6 |
| studies on the construction of any facility. Funding for a | 7 |
| study shall come from either: | 8 |
| (i) fees assessed by the Agency on municipal | 9 |
| electric systems, governmental aggregators, unit or | 10 |
| units of local government, or rural electric | 11 |
| cooperatives requesting the feasibility study; or | 12 |
| (ii) an appropriation from the General Assembly. | 13 |
| (b) If the Agency undertakes the construction of a | 14 |
| facility, moneys generated from the sale of revenue bonds | 15 |
| by the Authority for the facility shall be used to | 16 |
| reimburse the source of the money used for the facility's | 17 |
| feasibility study. | 18 |
| (c) The Agency may develop, finance, construct, or | 19 |
| operate electric generation and co-generation facilities | 20 |
| that use indigenous coal or renewable resources, or both, | 21 |
| financed with bonds issued by the Authority on behalf of | 22 |
| the Agency. Any such facility that uses coal must be a | 23 |
| clean coal facility and must be constructed in a location | 24 |
| Preference shall be given to technologies that enable | 25 |
| carbon capture and sites in locations where the geology is |
|
|
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| suitable for carbon sequestration. The Agency may also | 2 |
| develop, finance, construct, or operate a carbon | 3 |
| sequestration facility. | 4 |
| (1) The Agency may enter into contractual | 5 |
| arrangements with private and public entities, | 6 |
| including but not limited to municipal electric | 7 |
| systems, governmental aggregators, and rural electric | 8 |
| cooperatives, to plan, site, construct, improve, | 9 |
| rehabilitate, and operate those electric generation | 10 |
| and co-generation facilities. No contract shall be | 11 |
| entered into by the Agency that would jeopardize the | 12 |
| tax-exempt status of any bond issued in connection with | 13 |
| a project for which the Agency entered into the | 14 |
| contract. | 15 |
| (2) The Agency shall hold at least one public | 16 |
| hearing before entering into any such contractual | 17 |
| arrangements. At least 30-days' notice of the hearing | 18 |
| shall be given by publication once in each week during | 19 |
| that period in 6 newspapers within the State, at least | 20 |
| one of which has a circulation area that includes the | 21 |
| location of the proposed facility. | 22 |
| (3) The first facility that the Agency develops, | 23 |
| finances, or constructs shall be a facility that uses | 24 |
| coal produced in Illinois. The Agency may, however, | 25 |
| also develop, finance, or construct renewable energy | 26 |
| facilities after work on the first facility has |
|
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| commenced. | 2 |
| (4) The Agency may not develop, finance, or | 3 |
| construct a nuclear power plant. | 4 |
| (5) The Agency shall assess fees to applicants | 5 |
| seeking to partner with the Agency on projects. | 6 |
| (d) Use of electricity generated by the Agency's | 7 |
| facilities. The Agency may supply electricity produced by | 8 |
| the Agency's facilities to municipal electric systems, | 9 |
| governmental aggregators, or rural electric cooperatives | 10 |
| in Illinois. The electricity shall be supplied at cost. | 11 |
| (1) Contracts to supply power and energy from the | 12 |
| Agency's facilities shall provide for the effectuation | 13 |
| of the policies set forth in this Act. | 14 |
| (2) The contracts shall also provide that, | 15 |
| notwithstanding any provision in the Public Utilities | 16 |
| Act, entities supplied with power and energy from an | 17 |
| Agency facility shall supply the power and energy to | 18 |
| retail customers at the same price paid to purchase | 19 |
| power and energy from the Agency. | 20 |
| (e) Electric utilities shall not be required to purchase | 21 |
| electricity directly or indirectly from facilities developed | 22 |
| or sponsored by the Agency. | 23 |
| (f) The Agency may sell excess capacity and excess energy | 24 |
| into the wholesale electric market at prevailing market rates; | 25 |
| provided, however, the Agency may not sell excess capacity or | 26 |
| excess energy through the procurement process described in |
|
|
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| Section 16-111.5 of the Public Utilities Act. | 2 |
| (g) The Agency shall not directly sell electric power and | 3 |
| energy to retail customers. Nothing in this paragraph shall be | 4 |
| construed to prohibit sales to municipal electric systems, | 5 |
| governmental aggregators, or rural electric cooperatives.
| 6 |
| (Source: P.A. 95-481, eff. 8-28-07.) | 7 |
| Section 1-10. The Public Utilities Act is amended by | 8 |
| changing Sections 9-220, 16-101A, and 16-115 as follows:
| 9 |
| (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220)
| 10 |
| Sec. 9-220. Rate changes based on changes in fuel costs.
| 11 |
| (a) Notwithstanding the provisions of Section 9-201, the
| 12 |
| Commission may authorize the increase or decrease of rates and | 13 |
| charges
based upon changes in the cost of fuel used in the | 14 |
| generation or production
of electric power, changes in the cost | 15 |
| of purchased power, or changes in
the cost of purchased gas | 16 |
| through the application of fuel adjustment
clauses or purchased | 17 |
| gas adjustment clauses. The Commission may also
authorize the | 18 |
| increase or decrease of rates and charges based upon | 19 |
| expenditures
or revenues resulting from the purchase or sale of | 20 |
| emission allowances created
under the federal Clean Air Act | 21 |
| Amendments of 1990,
through such fuel adjustment clauses, as a | 22 |
| cost of fuel. For the purposes of
this paragraph, cost of fuel | 23 |
| used in the generation or production of electric
power shall | 24 |
| include the amount of any fees paid by the utility for the
|
|
|
|
09500SB1987ham001 |
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LRB095 14199 MJR 51793 a |
|
| 1 |
| implementation and operation of a process for the | 2 |
| desulfurization of the
flue gas when burning high sulfur coal | 3 |
| at any location within the State of
Illinois irrespective of | 4 |
| the attainment status designation of such
location; but shall | 5 |
| not include transportation costs
of coal
(i) except to the | 6 |
| extent that for contracts entered into on
and after the | 7 |
| effective date of this amendatory Act of 1997,
the cost of the | 8 |
| coal, including transportation costs,
constitutes the lowest | 9 |
| cost for adequate and reliable fuel
supply reasonably available | 10 |
| to the public utility in
comparison to the cost, including | 11 |
| transportation costs, of
other adequate and reliable sources of | 12 |
| fuel supply reasonably
available to the public utility, or (ii)
| 13 |
| except as otherwise provided in the next 3 sentences of this | 14 |
| paragraph.
Such costs of fuel
shall, when requested by a | 15 |
| utility or at the conclusion of the utility's
next general | 16 |
| electric rate proceeding, whichever shall first occur, include
| 17 |
| transportation costs of coal purchased under existing coal | 18 |
| purchase
contracts. For purposes of this paragraph "existing | 19 |
| coal purchase
contracts" means contracts for the purchase of | 20 |
| coal in effect on the
effective date of this amendatory Act of | 21 |
| 1991, as such contracts may
thereafter be amended, but only to | 22 |
| the extent that any such amendment does
not increase the | 23 |
| aggregate quantity of coal to be purchased under such
contract.
| 24 |
| Nothing herein shall authorize an electric utility
to recover | 25 |
| through its fuel adjustment clause any amounts of
| 26 |
| transportation costs of coal that were included in the revenue
|
|
|
|
09500SB1987ham001 |
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LRB095 14199 MJR 51793 a |
|
| 1 |
| requirement used to set base rates in its most recent general
| 2 |
| rate proceeding.
Cost shall be based upon uniformly applied | 3 |
| accounting
principles. Annually, the Commission shall initiate | 4 |
| public hearings to
determine whether the clauses reflect actual | 5 |
| costs of fuel, gas, power, or
coal transportation purchased to | 6 |
| determine whether such purchases were
prudent, and to reconcile | 7 |
| any amounts collected with the actual costs of
fuel, power, | 8 |
| gas, or coal transportation prudently purchased. In each such
| 9 |
| proceeding, the burden of proof shall be upon the utility to | 10 |
| establish the
prudence of its cost of fuel, power, gas, or coal
| 11 |
| transportation purchases
and costs.
The Commission shall
issue | 12 |
| its final order in each such annual proceeding for an
electric | 13 |
| utility by December 31 of the year immediately
following the | 14 |
| year to which the proceeding pertains, provided,
that the | 15 |
| Commission shall issue its final order with respect
to such | 16 |
| annual proceeding for the years 1996 and earlier by December | 17 |
| 31, 1998.
| 18 |
| (b) A public utility providing electric service, other than | 19 |
| a public utility
described in subsections (e) or (f) of this | 20 |
| Section, may at
any time during the mandatory transition period | 21 |
| file with the
Commission proposed tariff sheets that eliminate | 22 |
| the public
utility's fuel adjustment clause and adjust the | 23 |
| public
utility's base rate tariffs by the amount necessary for | 24 |
| the
base fuel component of the base rates to recover the public
| 25 |
| utility's average fuel and power supply costs per kilowatt-hour | 26 |
| for the 2
most recent years for which the Commission
has issued |
|
|
|
09500SB1987ham001 |
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LRB095 14199 MJR 51793 a |
|
| 1 |
| final orders in annual proceedings pursuant to
subsection (a), | 2 |
| where the average fuel and power supply costs
per kilowatt-hour | 3 |
| shall be calculated as the sum of the public
utility's prudent | 4 |
| and allowable fuel and power supply costs as
found by the | 5 |
| Commission in the 2 proceedings divided by the
public utility's | 6 |
| actual jurisdictional kilowatt-hour sales for
those 2 years. | 7 |
| Notwithstanding any contrary or inconsistent
provisions in | 8 |
| Section 9-201 of this Act, in subsection (a) of
this Section or | 9 |
| in any rules or regulations promulgated by the
Commission | 10 |
| pursuant to subsection (g) of this Section, the
Commission | 11 |
| shall review and shall by order approve, or approve
as | 12 |
| modified, the proposed tariff sheets within 60 days after
the | 13 |
| date of the public utility's filing. The Commission may
modify | 14 |
| the public utility's proposed tariff sheets only to the
extent | 15 |
| the Commission finds necessary to achieve conformance
to the | 16 |
| requirements of this subsection (b). During the 5
years | 17 |
| following the date of the Commission's order, but in any
event | 18 |
| no earlier than January 1, 2007, a public utility whose
fuel | 19 |
| adjustment clause has been eliminated pursuant to this
| 20 |
| subsection shall not file proposed tariff sheets seeking, or
| 21 |
| otherwise petition the Commission for, reinstatement of a fuel
| 22 |
| adjustment clause.
| 23 |
| (c) Notwithstanding any contrary or inconsistent
| 24 |
| provisions in Section 9-201 of this Act, in subsection (a) of
| 25 |
| this Section or in any rules or regulations promulgated by the
| 26 |
| Commission pursuant to subsection (g) of this Section, a
public |
|
|
|
09500SB1987ham001 |
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LRB095 14199 MJR 51793 a |
|
| 1 |
| utility providing electric service, other than a public utility
| 2 |
| described
in subsection (e) or (f) of this Section, may at any | 3 |
| time
during the mandatory transition period file with the
| 4 |
| Commission proposed tariff sheets that establish the rate per
| 5 |
| kilowatt-hour to be applied pursuant to the public utility's
| 6 |
| fuel adjustment clause at the average value for such rate
| 7 |
| during the preceding 24 months, provided that such average
rate | 8 |
| results in a credit to customers' bills, without making
any | 9 |
| revisions to the public utility's base rate tariffs. The
| 10 |
| proposed tariff sheets shall establish the fuel adjustment
rate | 11 |
| for a specific time period of at least 3 years but not
more | 12 |
| than 5 years, provided that the terms and conditions for
any | 13 |
| reinstatement earlier than 5 years shall be set forth in
the | 14 |
| proposed tariff sheets and subject to modification or
approval | 15 |
| by the Commission. The Commission shall review and
shall by | 16 |
| order approve the proposed tariff sheets if it finds
that the | 17 |
| requirements of this subsection are met. The
Commission shall | 18 |
| not conduct the annual hearings specified in the
last 3 | 19 |
| sentences of subsection (a) of this Section for the
utility for | 20 |
| the period that the factor established pursuant to
this | 21 |
| subsection is in effect.
| 22 |
| (d) A public utility providing electric service, or a | 23 |
| public utility
providing gas service
may file with the | 24 |
| Commission proposed tariff sheets that
eliminate the public | 25 |
| utility's fuel or purchased gas
adjustment clause and adjust | 26 |
| the public utility's base rate
tariffs to provide for recovery |
|
|
|
09500SB1987ham001 |
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LRB095 14199 MJR 51793 a |
|
| 1 |
| of power supply costs or gas
supply costs that would have been | 2 |
| recovered through such
clause; provided, that the provisions of | 3 |
| this subsection (d) shall not be
available to a public utility | 4 |
| described in subsections (e) or (f) of this
Section to | 5 |
| eliminate its fuel adjustment clause. Notwithstanding any | 6 |
| contrary
or inconsistent
provisions in Section 9-201 of this | 7 |
| Act, in subsection (a) of
this Section, or in any rules or | 8 |
| regulations promulgated by
the Commission pursuant to | 9 |
| subsection (g) of this Section, the
Commission shall review and | 10 |
| shall by order approve, or approve
as modified in the | 11 |
| Commission's order, the proposed tariff
sheets within 240 days | 12 |
| after the date of the public utility's
filing. The Commission's | 13 |
| order shall approve rates and
charges that the Commission, | 14 |
| based on information in the
public utility's filing or on the | 15 |
| record if a hearing is held
by the Commission, finds will | 16 |
| recover the reasonable, prudent
and necessary jurisdictional | 17 |
| power supply costs or gas supply
costs incurred or to be | 18 |
| incurred by the public utility during
a 12 month period found | 19 |
| by the Commission to be appropriate
for these purposes, | 20 |
| provided, that such period shall be either
(i) a 12 month | 21 |
| historical period occurring during the 15
months ending on the | 22 |
| date of the public utility's filing, or
(ii) a 12 month future | 23 |
| period ending no later than 15 months
following the date of the | 24 |
| public utility's filing. The public
utility shall include with | 25 |
| its tariff filing information
showing both (1) its actual | 26 |
| jurisdictional power supply costs
or gas supply costs for a 12 |
|
|
|
09500SB1987ham001 |
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LRB095 14199 MJR 51793 a |
|
| 1 |
| month historical period
conforming to (i) above and (2) its | 2 |
| projected jurisdictional
power supply costs or gas supply costs | 3 |
| for a future 12 month
period conforming to (ii) above. If the | 4 |
| Commission's order
requires modifications in the tariff sheets | 5 |
| filed by the
public utility, the public utility shall have 7 | 6 |
| days following
the date of the order to notify the Commission | 7 |
| whether the
public utility will implement the modified tariffs | 8 |
| or elect to
continue its fuel or purchased gas adjustment | 9 |
| clause in force
as though no order had been entered. The | 10 |
| Commission's order
shall provide for any reconciliation of | 11 |
| power supply costs or
gas supply costs, as the case may be, and | 12 |
| associated revenues
through the date that the public utility's | 13 |
| fuel or purchased
gas adjustment clause is eliminated. During | 14 |
| the 5 years
following the date of the Commission's order, a | 15 |
| public utility
whose fuel or purchased gas adjustment clause | 16 |
| has been
eliminated pursuant to this subsection shall not file | 17 |
| proposed
tariff sheets seeking, or otherwise petition the | 18 |
| Commission
for, reinstatement or adoption of a fuel or | 19 |
| purchased gas
adjustment clause. Nothing in this subsection (d) | 20 |
| shall be
construed as limiting the Commission's authority to | 21 |
| eliminate
a public utility's fuel adjustment clause or | 22 |
| purchased gas
adjustment clause in accordance with any other | 23 |
| applicable
provisions of this Act.
| 24 |
| (e) Notwithstanding any contrary or inconsistent | 25 |
| provisions in
Section 9-201 of this Act, in subsection (a) of | 26 |
| this Section, or in
any rules promulgated by the Commission |
|
|
|
09500SB1987ham001 |
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LRB095 14199 MJR 51793 a |
|
| 1 |
| pursuant
to subsection (g) of this Section, a public utility | 2 |
| providing
electric service to more than 1,000,000 customers in | 3 |
| this State may, within the
first 6 months after the
effective | 4 |
| date of this amendatory Act of 1997, file with the
Commission | 5 |
| proposed tariff sheets that eliminate, effective
January 1, | 6 |
| 1997, the public utility's fuel adjustment clause
without | 7 |
| adjusting its base rates, and such tariff sheets shall be
| 8 |
| effective upon filing. To the extent the application of the | 9 |
| fuel
adjustment clause had resulted in net charges to customers | 10 |
| after
January 1, 1997, the utility shall also file a tariff | 11 |
| sheet that
provides for a refund stated on a per kilowatt-hour | 12 |
| basis of such
charges over a period not to exceed 6 months; | 13 |
| provided
however, that such refund shall not include the | 14 |
| proportional
amounts of taxes paid under the Use Tax Act, | 15 |
| Service Use Tax Act,
Service Occupation Tax Act, and Retailers' | 16 |
| Occupation Tax Act on
fuel used in generation. The Commission | 17 |
| shall issue an order
within 45 days after the date of the | 18 |
| public utility's filing
approving or approving as modified such | 19 |
| tariff sheet. If the fuel
adjustment clause is eliminated | 20 |
| pursuant to this subsection, the
Commission shall not conduct | 21 |
| the annual hearings specified in the
last 3 sentences of | 22 |
| subsection (a) of this Section for the
utility for any period | 23 |
| after December 31, 1996 and prior to any
reinstatement of such | 24 |
| clause. A public utility whose fuel
adjustment clause has been | 25 |
| eliminated pursuant to this subsection
shall not file a | 26 |
| proposed tariff sheet seeking, or otherwise
petition the |
|
|
|
09500SB1987ham001 |
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LRB095 14199 MJR 51793 a |
|
| 1 |
| Commission for, reinstatement of the fuel adjustment
clause | 2 |
| prior to January 1, 2007.
| 3 |
| (f) Notwithstanding any contrary or inconsistent | 4 |
| provisions in Section
9-201 of this Act, in subsection (a) of | 5 |
| this Section, or in any rules or
regulations promulgated by the | 6 |
| Commission pursuant to subsection (g) of this
Section, a public | 7 |
| utility providing electric service to more than 500,000
| 8 |
| customers but fewer than 1,000,000 customers in this State may, | 9 |
| within the
first
6 months after the effective date of this | 10 |
| amendatory Act of 1997, file with the
Commission proposed | 11 |
| tariff sheets that eliminate, effective January 1, 1997,
the | 12 |
| public utility's fuel adjustment clause and adjust its base | 13 |
| rates by the
amount necessary for the base fuel component of | 14 |
| the base rates to recover
91% of the public utility's average | 15 |
| fuel and power supply costs for the 2 most
recent years for | 16 |
| which the Commission, as of January 1, 1997, has issued final
| 17 |
| orders in annual proceedings pursuant to subsection (a), where | 18 |
| the average fuel
and power supply costs per kilowatt-hour shall | 19 |
| be calculated as the sum of the
public utility's prudent and | 20 |
| allowable fuel and power supply costs as found by
the | 21 |
| Commission in the 2 proceedings divided by the public utility's | 22 |
| actual
jurisdictional kilowatt-hour sales for those 2 years, | 23 |
| provided, that such
tariff sheets shall be effective upon | 24 |
| filing. To the extent the application of
the fuel adjustment | 25 |
| clause had resulted in net charges to customers after
January | 26 |
| 1, 1997, the utility shall also file a tariff sheet that |
|
|
|
09500SB1987ham001 |
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LRB095 14199 MJR 51793 a |
|
| 1 |
| provides for a
refund stated on a per kilowatt-hour basis of | 2 |
| such charges over a period not to
exceed 6 months. Provided | 3 |
| however, that such refund shall not include the
proportional | 4 |
| amounts of taxes paid under the Use Tax Act, Service Use Tax | 5 |
| Act,
Service Occupation Tax Act, and Retailers' Occupation Tax | 6 |
| Act on fuel used in
generation. The Commission shall issue an | 7 |
| order within 45 days after the date
of the public utility's | 8 |
| filing approving or approving as modified such tariff
sheet. If | 9 |
| the fuel adjustment clause is eliminated pursuant to this
| 10 |
| subsection, the Commission shall not conduct the annual | 11 |
| hearings specified in
the last 3 sentences of subsection (a) of | 12 |
| this Section for the utility for any
period after December 31, | 13 |
| 1996 and prior to any reinstatement of such clause.
A public | 14 |
| utility whose fuel adjustment clause has been eliminated | 15 |
| pursuant to
this subsection shall not file a proposed tariff | 16 |
| sheet seeking, or otherwise
petition the Commission for, | 17 |
| reinstatement of the fuel adjustment clause prior
to January 1, | 18 |
| 2007.
| 19 |
| (g) The Commission shall have authority to promulgate rules | 20 |
| and
regulations to
carry out the provisions of this Section.
| 21 |
| (h) Any gas utility may enter into a contract for up to 20 | 22 |
| years of supply with any company for the purchase of substitute | 23 |
| natural gas (SNG) produced from coal through the gasification | 24 |
| process if the company has commenced construction of a coal | 25 |
| gasification facility by July 1, 2010. The cost for the SNG is | 26 |
| reasonable and prudent and recoverable through the purchased |
|
|
|
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LRB095 14199 MJR 51793 a |
|
| 1 |
| gas adjustment clause for years one through 10 of the contract | 2 |
| if: (i) the only coal used in the gasification process has high | 3 |
| volatile bituminous rank and greater than 1.7 pounds of sulfur | 4 |
| per million Btu content; (ii) at the time the contract term | 5 |
| commences, the price per million Btu does not exceed $7.95 in | 6 |
| 2008 dollars, adjusted annually based on the change in the | 7 |
| Annual Consumer Price Index for All Urban Consumers for the | 8 |
| Midwest Region as published in April by the United States | 9 |
| Department of Labor, Bureau of Labor Statistics (or a suitable | 10 |
| Consumer Price Index calculation if this Consumer Price Index | 11 |
| is not available) for the previous calendar year; provided that | 12 |
| the price per million Btu shall not exceed $8.95 at any time | 13 |
| during the contract; (iii) the utility's aggregate long-term | 14 |
| supply contracts for the purchase of SNG does not exceed 25% of | 15 |
| the annual system supply requirements of the utility at the | 16 |
| time the contract is entered into and the quantity of SNG | 17 |
| supplied to a utility by any one producer may not exceed 20 | 18 |
| billion cubic feet per year; and (iv) the contract is entered | 19 |
| into within 120 days after the effective date of this | 20 |
| amendatory Act of the 95th General Assembly and terminates no | 21 |
| more than 20 years after the commencement of the commercial | 22 |
| production of synthetic natural gas at the facility. Contracts | 23 |
| greater than 10 years shall provide that if, at any time during | 24 |
| supply years 11 through 20 of the contract, the Commission | 25 |
| determines that the cost for the synthetic natural gas | 26 |
| purchased under the contract during supply years 11 through 20 |
|
|
|
09500SB1987ham001 |
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LRB095 14199 MJR 51793 a |
|
| 1 |
| is not reasonable and prudent, then the company shall reimburse | 2 |
| the utility for the difference between the cost deemed | 3 |
| reasonable and prudent by the Commission and the cost imposed | 4 |
| under the contract. All such contracts, regardless of duration, | 5 |
| shall require the owner of any facility supplying SNG under the | 6 |
| contract to provide documentation to the Commission each year, | 7 |
| starting in the facility's third year of commercial operation, | 8 |
| accurately reporting the quantity of carbon dioxide emissions | 9 |
| from the facility that have been captured and sequestered and | 10 |
| reporting any quantities of carbon dioxide released from the | 11 |
| site or sites at which carbon dioxide emissions were | 12 |
| sequestered in prior years, based on continuous monitoring of | 13 |
| those sites. If, in any year, the owner of the facility fails | 14 |
| to demonstrate that the SNG facility captured and sequestered | 15 |
| at least 90% of the total carbon dioxide emissions that the | 16 |
| facility would otherwise emit or that sequestration of | 17 |
| emissions from prior years has failed, resulting in the release | 18 |
| of carbon dioxide into the atmosphere, the owner of the | 19 |
| facility must offset excess emissions. Any such carbon dioxide | 20 |
| offsets must be permanent, additional, verifiable, real, | 21 |
| located within the State of Illinois, and legally and | 22 |
| practicably enforceable. The costs of such offsets that are not | 23 |
| recoverable shall not exceed $30 million in any given year. No | 24 |
| costs of any such purchases of carbon offsets may be recovered | 25 |
| from a utility or its customers. All carbon offsets purchased | 26 |
| for this purpose must be permanently retired. In addition, 50% |
|
|
|
09500SB1987ham001 |
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LRB095 14199 MJR 51793 a |
|
| 1 |
| of the carbon dioxide emission credits associated with the | 2 |
| required sequestration of carbon dioxide from the facility must | 3 |
| be permanently retired. An SNG facility operating pursuant to | 4 |
| this subsection (h) shall not forfeit its designation as a | 5 |
| clean coal SNG facility if the facility fails to fully comply | 6 |
| with the applicable carbon sequestration requirements in any | 7 |
| given year, provided the requisite offsets are purchased. | 8 |
| However, the Attorney General, on behalf of the People of the | 9 |
| State of Illinois, may specifically enforce the facility's | 10 |
| sequestration requirements. Any gas utility may enter into a | 11 |
| 20-year supply contract with any company for synthetic natural | 12 |
| gas produced from coal through the gasification process if the | 13 |
| company has commenced construction of a coal gasification | 14 |
| facility by July 1, 2008. The cost for the synthetic natural | 15 |
| gas is reasonable and prudent and recoverable through the | 16 |
| purchased gas adjustment clause for years one through 10 of the | 17 |
| contract if: (i) the only coal used in the gasification process | 18 |
| has high volatile bituminous rank and greater than 1.7 pounds | 19 |
| of sulfur per million Btu content; (ii) at the time the | 20 |
| contract term commences, the price per million Btu does not | 21 |
| exceed $5 in 2004 dollars, adjusted annually based on the | 22 |
| change in the Annual Consumer Price Index for All Urban | 23 |
| Consumers for the Midwest Region as published in April by the | 24 |
| United States Department of Labor, Bureau of Labor Statistics | 25 |
| (or a suitable Consumer Price Index calculation if this | 26 |
| Consumer Price Index is not available) for the previous |
|
|
|
09500SB1987ham001 |
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LRB095 14199 MJR 51793 a |
|
| 1 |
| calendar year; provided that the price per million Btu shall | 2 |
| not exceed $5.50 at any time during the contract; (iii) the | 3 |
| utility's aggregate long-term supply contracts for the | 4 |
| purchase of synthetic natural gas produced from coal through | 5 |
| the gasification process does not exceed 25% of the annual | 6 |
| system supply requirements of the utility at the time the | 7 |
| contract is entered into; and (iv) the contract is entered into | 8 |
| within one year after the effective date of this amendatory Act | 9 |
| of the 94th General Assembly and terminates 20 years after the | 10 |
| commencement of the production of synthetic natural gas. The | 11 |
| contract shall provide that if, at any time during years 11 | 12 |
| through 20 of the contract, the Commission determines that the | 13 |
| cost for the synthetic natural gas under the contract is not | 14 |
| reasonable and prudent, then the company shall reimburse the | 15 |
| utility for the difference between the cost deemed reasonable | 16 |
| and prudent by the Commission and the cost imposed under the | 17 |
| contract. | 18 |
| (i) If a gas utility or an affiliate of a gas utility has | 19 |
| an ownership interest in any entity that produces or sells | 20 |
| synthetic natural gas, Article VII of this Act shall apply.
| 21 |
| (Source: P.A. 94-63, eff. 6-21-05.)
| 22 |
| (220 ILCS 5/16-101A)
| 23 |
| Sec. 16-101A. Legislative findings.
| 24 |
| (a) The citizens and businesses of the State of Illinois
| 25 |
| have been well-served by a comprehensive electrical utility
|
|
|
|
09500SB1987ham001 |
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LRB095 14199 MJR 51793 a |
|
| 1 |
| system which has provided safe, reliable, and affordable
| 2 |
| service. The electrical utility system in the State of
Illinois | 3 |
| has historically been subject to State and federal
regulation, | 4 |
| aimed at assuring the citizens and businesses of
the State of | 5 |
| safe, reliable, and affordable service, while at
the same time | 6 |
| assuring the utility system of a return on its
investment.
| 7 |
| (b) Competitive forces are affecting the market for
| 8 |
| electricity as a result of recent federal regulatory and
| 9 |
| statutory changes and the activities of other states.
| 10 |
| Competition in the electric services market may create
| 11 |
| opportunities for new products and services for customers and
| 12 |
| lower costs for users of electricity. Long-standing regulatory
| 13 |
| relationships need to be altered to accommodate the
competition | 14 |
| that could fundamentally alter the structure of
the electric | 15 |
| services market.
| 16 |
| (c) With the advent of increasing competition in this
| 17 |
| industry, the State has a continued interest in assuring that
| 18 |
| the safety, reliability, and affordability of electrical power
| 19 |
| is not sacrificed to competitive pressures, and to that end,
| 20 |
| intends to implement safeguards to assure that the industry
| 21 |
| continues to operate the electrical system in a manner that
| 22 |
| will serve the public's interest. Under the existing
regulatory | 23 |
| framework, the industry has been encouraged to
undertake | 24 |
| certain investments in its physical plant and
personnel to | 25 |
| enhance its efficient operation, the cost of
which it has been | 26 |
| permitted to pass on to consumers. The
State has an interest in |
|
|
|
09500SB1987ham001 |
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LRB095 14199 MJR 51793 a |
|
| 1 |
| providing the existing utilities a
reasonable opportunity to | 2 |
| obtain a return on certain
investments on which they depended | 3 |
| in undertaking those
commitments in the first instance while, | 4 |
| at the same time, not
permitting new entrants into the industry | 5 |
| to take unreasonable
advantage of the investments made by the | 6 |
| formerly regulated
industry.
| 7 |
| (d) A competitive wholesale and retail market must
benefit | 8 |
| all Illinois citizens. The Illinois Commerce
Commission should | 9 |
| act to promote the development of an
effectively competitive | 10 |
| electricity market that operates
efficiently and is equitable | 11 |
| to all consumers. Consumer
protections must be in place to | 12 |
| ensure that all customers
continue to receive safe, reliable, | 13 |
| affordable, and
environmentally safe electric service.
| 14 |
| (e) All consumers must benefit in an equitable and timely
| 15 |
| fashion from the lower costs for electricity that result from
| 16 |
| retail and wholesale competition and receive sufficient
| 17 |
| information to make informed choices among suppliers and
| 18 |
| services. The use of renewable resources and energy efficiency
| 19 |
| resources should be encouraged in competitive markets.
| 20 |
| (f) The efficiency of electric markets depends both upon | 21 |
| the competitiveness of supply and upon the | 22 |
| price-responsiveness of the demand for service. Therefore, to | 23 |
| ensure the lowest total cost of service and to enhance the | 24 |
| reliability of service, all classes of the electricity | 25 |
| customers of electric utilities should have access to and be | 26 |
| able to voluntarily use real-time pricing and other |
|
|
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| price-response and demand-response mechanisms.
| 2 |
| (g) Including cost-effective renewable resources in a | 3 |
| diverse electricity supply portfolio will reduce long-term | 4 |
| direct and indirect costs to consumers by decreasing | 5 |
| environmental impacts and by avoiding or delaying the need for | 6 |
| new generation, transmission, and distribution infrastructure. | 7 |
| It serves the public interest to allow electric utilities to | 8 |
| recover costs for reasonably and prudently incurred expenses | 9 |
| for electricity generated by renewable resources.
| 10 |
| (h) Including electricity generated by clean coal | 11 |
| facilities, as defined under Section 1-10 of the Illinois Power | 12 |
| Agency Act, in a diverse electricity procurement portfolio will | 13 |
| reduce the need to purchase, directly or indirectly, carbon | 14 |
| dioxide emission credits and will decrease environmental | 15 |
| impacts. It serves the public interest to allow electric | 16 |
| utilities to recover costs for reasonably and prudently | 17 |
| incurred expenses for electricity generated by clean coal | 18 |
| facilities. | 19 |
| (Source: P.A. 94-977, eff. 6-30-06; 95-481, eff. 8-28-07.)
| 20 |
| (220 ILCS 5/16-115)
| 21 |
| Sec. 16-115. Certification of alternative retail
electric | 22 |
| suppliers. | 23 |
| (a) Any alternative retail electric supplier must obtain
a | 24 |
| certificate of service authority from the Commission in
| 25 |
| accordance with this Section before serving any retail
customer |
|
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| or other user located in this State. An alternative
retail | 2 |
| electric supplier may request, and the Commission may
grant, a | 3 |
| certificate of service authority for the entire State
or for a | 4 |
| specified geographic area of the State.
| 5 |
| (b) An alternative retail electric supplier seeking a
| 6 |
| certificate of service authority shall file with the
Commission | 7 |
| a verified application containing information
showing that the | 8 |
| applicant meets the requirements of this
Section. The | 9 |
| alternative retail electric supplier shall
publish notice of | 10 |
| its application in the official State
newspaper within 10 days | 11 |
| following the date of its filing. No
later than 45 days after | 12 |
| the application is properly filed
with the Commission, and such | 13 |
| notice is published, the
Commission shall issue its order | 14 |
| granting or denying the
application.
| 15 |
| (c) An application for a certificate of service
authority | 16 |
| shall identify the area or areas in which the
applicant intends | 17 |
| to offer service and the types of services
it intends to offer. | 18 |
| Applicants that seek to serve
residential or small commercial | 19 |
| retail customers within a
geographic area that is smaller than | 20 |
| an electric utility's
service area shall submit evidence | 21 |
| demonstrating that the
designation of this smaller area does | 22 |
| not violate Section 16-115A. An applicant
that seeks to serve | 23 |
| residential or small
commercial retail customers may state in | 24 |
| its application for
certification any limitations that will be | 25 |
| imposed on the
number of customers or maximum load to be | 26 |
| served.
|
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| (d) The Commission shall grant the application for a
| 2 |
| certificate of service authority if it makes the findings set
| 3 |
| forth in this subsection
based on the verified
application and | 4 |
| such other information as the applicant may
submit:
| 5 |
| (1) That the applicant possesses sufficient
technical, | 6 |
| financial and managerial resources and
abilities to | 7 |
| provide the service for which it seeks a
certificate of | 8 |
| service authority. In determining the
level of technical, | 9 |
| financial and managerial resources
and abilities which the | 10 |
| applicant must demonstrate, the
Commission shall consider | 11 |
| (i) the characteristics,
including the size and financial | 12 |
| sophistication, of the
customers that the applicant seeks | 13 |
| to serve, and (ii)
whether the applicant seeks to provide | 14 |
| electric power and
energy using property, plant and | 15 |
| equipment which it owns,
controls or operates;
| 16 |
| (2) That the applicant will comply with all
applicable | 17 |
| federal, State, regional and industry rules,
policies, | 18 |
| practices and procedures for the use,
operation, and | 19 |
| maintenance of the safety, integrity and
reliability, of | 20 |
| the interconnected electric transmission
system;
| 21 |
| (3) That the applicant will only provide service to
| 22 |
| retail customers in an electric utility's service area
that | 23 |
| are eligible to take delivery services under this
Act;
| 24 |
| (4) That the applicant will comply with such
| 25 |
| informational or reporting requirements as the Commission
| 26 |
| may by rule establish and provide the information required |
|
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| by Section 16-112.
Any data related to
contracts for the | 2 |
| purchase and sale of electric power and
energy shall be | 3 |
| made available for review by the Staff of
the Commission on | 4 |
| a confidential and proprietary basis
and only to the extent | 5 |
| and for the purposes which the
Commission determines are | 6 |
| reasonably necessary in order
to carry out the purposes of | 7 |
| this Act;
| 8 |
| (5) That the applicant will supply electricity | 9 |
| generated by renewable energy resources and clean coal | 10 |
| facilities, as defined in Section 1-10 of the Illinois | 11 |
| Power Agency Act, to all of the applicant's Illinois | 12 |
| customers in amounts at least equal to the percentages set | 13 |
| forth in subsections (c) and (d) of Section 1-72 of the | 14 |
| Illinois Power Agency Act. For purposes of this Section:
| 15 |
| (i) The required procurement of electricity | 16 |
| generated by renewable energy resources and clean coal | 17 |
| facilities shall be measured as a percentage of the | 18 |
| actual amount of electricity (megawatt-hours) supplied | 19 |
| by the alternative retail electric supplier in the | 20 |
| prior calendar year, as reported for that year to the | 21 |
| Commission. This purchase obligation applies to all | 22 |
| electricity sold pursuant to retail contracts | 23 |
| executed, extended, or otherwise revised after the | 24 |
| effective date of this amendatory Act, provided the | 25 |
| alternative retail electric supplier submits all | 26 |
| documentation needed by the Commission to determine |
|
|
|
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| the actual amount of electricity supplied under | 2 |
| contracts that may be excluded under this limitation. | 3 |
| (ii) An alternative retail electric supplier need | 4 |
| not actually deliver electricity purchased to comply | 5 |
| with this Section to its customers, provided that if | 6 |
| the alternative retail electric supplier claims credit | 7 |
| for such purpose, subsequent purchasers shall not | 8 |
| receive any emission credits or renewable energy | 9 |
| credits in connection with the purchase of such | 10 |
| electricity. Alternative retail electric suppliers | 11 |
| shall maintain adequate records documenting the | 12 |
| contractual disposition of all electricity purchased | 13 |
| to comply with this Section and shall file an | 14 |
| accounting in the report which must be filed with the | 15 |
| Commission on August 1 of each year, starting in 2009, | 16 |
| in accordance with subsection (e) of this Section. | 17 |
| (iii) The required procurement of electricity | 18 |
| generated by renewable resources and clean coal | 19 |
| facilities, other than the initial clean coal | 20 |
| facility, shall be limited to the amount of electricity | 21 |
| that can be purchased at a price at or below the | 22 |
| benchmarks approved by the Commission each year in | 23 |
| accordance with item (1) of subsection (c) and items | 24 |
| (1) and (5) of subsection (d) of Section 1-75 of the | 25 |
| Illinois Power Agency Act. | 26 |
| (iv) all alternative retail electric suppliers |
|
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| shall execute a power purchase agreement to purchase | 2 |
| electricity from the initial clean coal facility, on | 3 |
| the terms set forth in items (3) and (4) of subsection | 4 |
| (d) of Section 1-75 of the Illinois Power Agency Act, | 5 |
| except that in lieu of the requirements in items | 6 |
| (3)(vi), (xiii), and (xiv) of that subsection (d), the | 7 |
| applicant shall contract to purchase in each hour an | 8 |
| amount of electricity equal to all clean coal energy | 9 |
| made available from the initial clean coal facility to | 10 |
| all alternative retail electric suppliers, multiplied | 11 |
| by a fraction, the numerator of which is the | 12 |
| alternative electricity retail electric supplier's | 13 |
| Illinois market share, expressed in kilowatt-hours | 14 |
| sold during the prior month and the denominator of | 15 |
| which is the total market shares during the prior month | 16 |
| of all alternative retail electric suppliers that are | 17 |
| party to power purchase agreements with the initial | 18 |
| clean coal facility. | 19 |
| (v) if, in any year after the third year of | 20 |
| commercial operation, the owner of the clean coal | 21 |
| facility fails to demonstrate to the Commission that | 22 |
| the initial clean coal facility captured and | 23 |
| sequestered at least 50% of the total carbon emissions | 24 |
| that the facility would otherwise emit or that | 25 |
| sequestration of emissions from prior years has | 26 |
| failed, resulting in the release of carbon into the |
|
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| atmosphere, the owner of the facility must offset | 2 |
| excess emissions. Any such carbon offsets must be | 3 |
| permanent, additional, verifiable, real, located | 4 |
| within the State of Illinois, and legally and | 5 |
| practicably enforceable. The costs of any such offsets | 6 |
| that are not recoverable shall not exceed $15 million | 7 |
| in any given year. No costs of any such purchases of | 8 |
| carbon offsets may be recovered from an alternative | 9 |
| retail electric supplier or its customers. All carbon | 10 |
| offsets purchased for this purpose and any carbon | 11 |
| emission credits associated with sequestration of | 12 |
| carbon from the facility must be permanently retired. | 13 |
| The initial clean coal facility shall not forfeit its | 14 |
| designation as a clean coal facility if the facility | 15 |
| fails to fully comply with the applicable carbon | 16 |
| sequestration requirements in any given year, provided | 17 |
| the requisite offsets are purchased. However, the | 18 |
| Attorney General, on behalf of the People of the State | 19 |
| of Illinois, may specifically enforce the facility's | 20 |
| sequestration requirement and the other terms of this | 21 |
| contract provision (Blank) ;
| 22 |
| (6) With respect to an applicant that seeks to serve
| 23 |
| residential or small commercial retail customers, that
the | 24 |
| area to be served by the applicant and any
limitations it | 25 |
| proposes on the number of customers or
maximum amount of | 26 |
| load to be served meet the provisions
of Section 16-115A, |
|
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| provided, that the Commission can
extend the time for | 2 |
| considering such a certificate
request by up to 90 days, | 3 |
| and can schedule hearings on
such a request;
| 4 |
| (7) That the applicant meets the requirements of | 5 |
| subsection (a) of Section
16-128; and
| 6 |
| (8) That the applicant will comply with all other
| 7 |
| applicable laws and regulations.
| 8 |
| (d-5) The Commission shall revoke the certification of any | 9 |
| alternative retail electric supplier that fails to execute a | 10 |
| power purchase agreement to purchase electricity from the | 11 |
| initial clean coal facility, as required by item (5) of | 12 |
| subsection (d) of this Section, within 60 days after the later | 13 |
| of the effective date of this amendatory Act or approval of the | 14 |
| agreement by the Federal Energy Regulatory Commission, and | 15 |
| that, on August 1, 2009 and each year thereafter, fails to | 16 |
| demonstrate that the electricity provided to the alternative | 17 |
| retail electricity supplier's Illinois customers during the | 18 |
| previous year was generated by renewable energy resources and | 19 |
| clean coal facilities in amounts at least equal to the | 20 |
| percentages set forth in subsections (c) and (d) of Section | 21 |
| 1-75 of the Illinois Power Agency Act, as limited by subsection | 22 |
| (d)(5)(iii) of this Section. The Commission shall not accept an | 23 |
| application for certification from an alternative retail | 24 |
| electric supplier that has lost certification under this | 25 |
| subsection (d-5), or any corporate affiliate thereof, for at | 26 |
| least one year from the date of revocation. |
|
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| (e) A retail customer that owns a cogeneration or | 2 |
| self-generation facility
and that seeks certification only to
| 3 |
| provide electric power and energy from such facility to
retail | 4 |
| customers at separate locations which customers are
both (i) | 5 |
| owned by, or a subsidiary or other corporate
affiliate of, such | 6 |
| applicant and
(ii) eligible for delivery services, shall be | 7 |
| granted a
certificate of service authority upon filing an | 8 |
| application
and notifying the Commission that it has entered | 9 |
| into an
agreement with the relevant electric utilities pursuant | 10 |
| to
Section 16-118.
Provided, however, that if the retail | 11 |
| customer owning such cogeneration or
self-generation facility | 12 |
| would not be charged a transition charge due to the
exemption | 13 |
| provided under subsection (f) of Section 16-108 prior to the
| 14 |
| certification, and the retail customers at separate locations | 15 |
| are taking
delivery services in conjunction with purchasing | 16 |
| power and energy from the
facility, the retail customer on | 17 |
| whose premises the facility is located shall
not thereafter be | 18 |
| required to pay transition charges on the power and energy
that | 19 |
| such retail customer takes from the facility.
| 20 |
| (f) The Commission shall have the authority to
promulgate | 21 |
| rules and regulations to carry out the provisions
of this | 22 |
| Section. On or before May 1, 1999, the Commission
shall adopt a | 23 |
| rule or rules applicable to the certification of
those | 24 |
| alternative retail electric suppliers that seek to serve
only | 25 |
| nonresidential retail customers with maximum electrical
| 26 |
| demands of one megawatt or more which shall provide for (i)
|
|
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| expedited and streamlined procedures
for certification of such | 2 |
| alternative
retail electric suppliers and (ii) specific | 3 |
| criteria which,
if met by any such alternative retail electric | 4 |
| supplier, shall
constitute the demonstration of technical, | 5 |
| financial and
managerial resources and abilities to provide | 6 |
| service required
by subsection (d) (1) of this Section, such as | 7 |
| a requirement
to post a bond or letter of credit, from a | 8 |
| responsible surety
or financial institution, of sufficient | 9 |
| size for the nature
and scope of the services to be provided; | 10 |
| demonstration of
adequate insurance for the scope and nature of | 11 |
| the services to
be provided; and experience in providing | 12 |
| similar services in
other jurisdictions.
| 13 |
| (Source: P.A. 95-130, eff. 1-1-08.)
| 14 |
| ARTICLE 5 | 15 |
| Section 5-5. The Public Utilities Act is amended by | 16 |
| changing Section 2-203 as follows:
| 17 |
| (220 ILCS 5/2-203)
| 18 |
| (Section scheduled to be repealed on January 1, 2009)
| 19 |
| Sec. 2-203. Public Utility Fund base maintenance | 20 |
| contribution. Each For each of the years 2003 through 2008, | 21 |
| each electric
utility as defined in Section 16-102 of this Act | 22 |
| providing service to more than
12,500 customers in this State | 23 |
| on January 1, 1995 shall contribute annually a
pro rata share |
|
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| of a total amount of $5,500,000 based upon the number of
| 2 |
| kilowatt-hours delivered to retail customers within this State | 3 |
| by each such
electric utility in the 12 months preceding the | 4 |
| year of contribution. On or
before May 1 of each year, the | 5 |
| Illinois Commerce Commission shall determine and
notify the | 6 |
| Illinois Department of Revenue of the pro rata share owed by | 7 |
| each
electric utility based upon information supplied annually | 8 |
| to the Commission. On
or before June 1 of each year, the | 9 |
| Department of Revenue shall send written
notification to each | 10 |
| electric utility of the amount of pro rata share they owe.
| 11 |
| These contributions shall be remitted to the Department of | 12 |
| Revenue no earlier
that July 1 and no later than July 31 of | 13 |
| each year the contribution is due on a
return prescribed and
| 14 |
| furnished by the Department of Revenue showing such information | 15 |
| as the
Department of Revenue may reasonably require. The | 16 |
| Department of Revenue shall
place the funds remitted under this | 17 |
| Section in the Public Utility Fund in the
State treasury. The | 18 |
| funds received pursuant to this Section shall be subject to
| 19 |
| appropriation by the General Assembly. If an electric utility | 20 |
| does
not remit its pro rata share to the Department of Revenue, | 21 |
| the Department of
Revenue must inform the Illinois Commerce | 22 |
| Commission of such failure. The
Illinois Commerce Commission | 23 |
| may then revoke the certification of that electric
utility. | 24 |
| This Section is repealed on January 1, 2014 2009 .
| 25 |
| (Source: P.A. 92-600, eff. 6-28-02.)
|
|
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09500SB1987ham001 |
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| ARTICLE 10. | 2 |
| Section 10-5. The Public Utilities Act is amended by | 3 |
| changing Section 16-125 as follows:
| 4 |
| (220 ILCS 5/16-125)
| 5 |
| Sec. 16-125. Transmission and distribution reliability
| 6 |
| requirements.
| 7 |
| (a) To assure the reliable delivery of electricity to all
| 8 |
| customers in this State and the effective implementation of
the | 9 |
| provisions of this Article, the Commission shall, within
180 | 10 |
| days of the effective date of this Article, adopt rules
and | 11 |
| regulations for assessing and assuring the reliability of
the | 12 |
| transmission and distribution systems and facilities that
are | 13 |
| under the Commission's jurisdiction.
| 14 |
| (b) These rules and regulations shall require each electric | 15 |
| utility or
alternative retail electric supplier owning, | 16 |
| controlling, or operating
transmission and distribution | 17 |
| facilities and equipment subject to the
Commission's | 18 |
| jurisdiction, referred to in this Section as "jurisdictional
| 19 |
| entities", to adopt and implement procedures for restoring | 20 |
| transmission and
distribution services to customers after | 21 |
| transmission or distribution outages
on a nondiscriminatory | 22 |
| basis without regard to whether a customer has chosen
the | 23 |
| electric utility, an affiliate of the electric utility, or | 24 |
| another entity
as its provider of electric power and energy. |
|
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| These rules and regulations
shall also, at a minimum, | 2 |
| specifically require each jurisdictional entity to
submit | 3 |
| annually to the Commission.
| 4 |
| (1) the number and duration of planned and
unplanned | 5 |
| outages during the prior year and their impacts
on | 6 |
| customers;
| 7 |
| (2) outages that were controllable and outages that
| 8 |
| were exacerbated in scope or duration by the condition of
| 9 |
| facilities, equipment or premises or by the actions or
| 10 |
| inactions of operating personnel or agents;
| 11 |
| (3) customer service interruptions that were due
| 12 |
| solely to the actions or inactions of an alternative
retail | 13 |
| electric supplier or a public utility in supplying
power or | 14 |
| energy;
| 15 |
| (4) a detailed report of the age, current
condition, | 16 |
| reliability and performance of the
jurisdictional entity's | 17 |
| existing transmission and
distribution facilities, which | 18 |
| shall include, without
limitation, the following data:
| 19 |
| (i) a summary of the jurisdictional entity's
| 20 |
| outages and voltage variances reportable under the
| 21 |
| Commission's rules;
| 22 |
| (ii) the jurisdictional entity's expenditures
for | 23 |
| transmission construction and maintenance, the
ratio | 24 |
| of those expenditures to the jurisdictional
entity's | 25 |
| transmission investment, and the average
remaining | 26 |
| depreciation lives of the entity's
transmission |
|
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| facilities, expressed as a percentage
of total | 2 |
| depreciation lives;
| 3 |
| (iii) the jurisdictional entity's expenditures
for | 4 |
| distribution construction and maintenance, the
ratio | 5 |
| of those expenditures to the jurisdictional
entity's | 6 |
| distribution investment, and the average
remaining | 7 |
| depreciation lives of the entity's
distribution | 8 |
| facilities, expressed as a percentage
of total | 9 |
| depreciation lives;
| 10 |
| (iv) a customer satisfaction survey covering,
| 11 |
| among other areas identified in Commission rules,
| 12 |
| reliability, customer service, and understandability
| 13 |
| of the jurisdictional entity's services and prices;
| 14 |
| and
| 15 |
| (v) the corresponding information, in the same
| 16 |
| format, for the previous 3 years, if available;
| 17 |
| (5) a plan for future investment and reliability
| 18 |
| improvements for the jurisdictional entity's transmission
| 19 |
| and distribution facilities that will ensure continued
| 20 |
| reliable delivery of energy to customers and provide the
| 21 |
| delivery reliability needed for fair and open competition; | 22 |
| and
| 23 |
| (6) a report of the jurisdictional entity's
| 24 |
| implementation of its plan filed pursuant to subparagraph | 25 |
| (5)
for the previous reporting period.
| 26 |
| (c) The Commission rules shall set forth the criteria
that |
|
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| 1 |
| will be used to assess each jurisdictional entity's annual | 2 |
| report and
evaluate its reliability performance. Such criteria
| 3 |
| must take into account, at a minimum: the items required to be
| 4 |
| reported in subsection (b); the relevant characteristics of
the | 5 |
| area served; the age and condition of the system's
equipment | 6 |
| and facilities; good engineering practices; the
costs of | 7 |
| potential actions; and the benefits of avoiding the
risks of | 8 |
| service disruption.
| 9 |
| (d) At least every 3 years, beginning in the year
the | 10 |
| Commission issues the rules required by subsection
(a) or the | 11 |
| following year if the rules are issued after June
1, the | 12 |
| Commission shall assess the annual report of each
| 13 |
| jurisdictional entity and evaluate its reliability | 14 |
| performance. The
Commission's evaluation shall
include | 15 |
| specific identification of, and recommendations
concerning, | 16 |
| any potential reliability problems that it has
identified as a | 17 |
| result of its evaluation.
| 18 |
| (e) In the event that more than either (i) 30,000 (or some | 19 |
| other number, but only as provided by statute) of the total | 20 |
| customers or (ii) 0.8% (or some other percentage, but only as | 21 |
| provided by statute) of the total customers , whichever is less, | 22 |
| of an electric
utility are subjected to a continuous power | 23 |
| interruption of
4 hours or more that results in the | 24 |
| transmission of power
at less than 50% of the standard voltage, | 25 |
| or that results in
the total loss of power transmission, the | 26 |
| utility shall be
responsible for compensating customers |
|
|
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| affected by that interruption for 4
hours or more for all
| 2 |
| actual damages, which shall not include consequential
damages, | 3 |
| suffered as a result of the power interruption.
The utility | 4 |
| shall also reimburse the affected municipality,
county, or | 5 |
| other unit of local government in which the power
interruption | 6 |
| has taken place for all
emergency and contingency expenses | 7 |
| incurred by the unit of
local government as a result of the | 8 |
| interruption. A waiver
of the requirements of this subsection | 9 |
| may be granted by the
Commission in instances in which the | 10 |
| utility can show that
the power interruption was a result of | 11 |
| any
one or more of the following causes:
| 12 |
| (1) Unpreventable damage due to weather events or
| 13 |
| conditions.
| 14 |
| (2) Customer tampering.
| 15 |
| (3) Unpreventable damage due to civil or
international | 16 |
| unrest or animals.
| 17 |
| (4) Damage to utility equipment or other actions by a | 18 |
| party other
than the utility, its employees, agents, or
| 19 |
| contractors.
| 20 |
| Loss of revenue and expenses incurred in complying with this
| 21 |
| subsection may not be recovered from ratepayers.
| 22 |
| (f) In the event of a power surge or other fluctuation
that | 23 |
| causes damage and affects more than either (i) 30,000 (or some | 24 |
| other number, but only as provided by statute) of the total | 25 |
| customers or (ii) 0.8% (or some other percentage, but only as | 26 |
| provided by statute) of the total customers, whichever is less, |
|
|
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| the electric utility
shall pay to
affected customers the | 2 |
| replacement value of all goods
damaged as a result of the power | 3 |
| surge or other fluctuation
unless the utility can show that the | 4 |
| power surge or other
fluctuation was due to one or more of the | 5 |
| following causes:
| 6 |
| (1) Unpreventable damage due to weather events or
| 7 |
| conditions.
| 8 |
| (2) Customer tampering.
| 9 |
| (3) Unpreventable damage due to civil or
international | 10 |
| unrest or animals.
| 11 |
| (4) Damage to utility equipment or other actions by a | 12 |
| party other
than the utility, its employees, agents, or
| 13 |
| contractors.
| 14 |
| Loss of revenue and expenses incurred in complying with this
| 15 |
| subsection may not be recovered from ratepayers. Customers with | 16 |
| respect to
whom a waiver has been granted by the Commission | 17 |
| pursuant to subparagraphs
(1)-(4) of subsections (e) and (f) | 18 |
| shall not count toward the either (i) 30,000 (or some other | 19 |
| number, but only as provided by statute) of the total customers | 20 |
| or (ii) 0.8% (or some other percentage, but only as provided by | 21 |
| statute) of the total customers
required therein.
| 22 |
| (g) Whenever an electric utility must perform
planned or | 23 |
| routine maintenance or repairs on its equipment
that will | 24 |
| result in transmission of power at less than 50%
of the | 25 |
| standard voltage, loss of power, or power fluctuation
(as | 26 |
| defined in subsection (f)), the utility shall make
reasonable |
|
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| efforts to notify potentially affected customers
no less than | 2 |
| 24 hours in advance of performance of the
repairs or | 3 |
| maintenance.
| 4 |
| (h) Remedies provided for under this Section may be
sought | 5 |
| exclusively through the Illinois Commerce Commission
as | 6 |
| provided under Section 10-109 of this Act. Damages
awarded | 7 |
| under this Section for a power interruption shall be
limited to | 8 |
| actual damages, which shall not include
consequential damages, | 9 |
| and litigation costs. A utility's request for a waiver of this | 10 |
| Section shall be timely if filed no later than 30 days after | 11 |
| the date on which a claim is filed with the Commission seeking | 12 |
| damages or expense reimbursement under this Section. No utility | 13 |
| shall be liable under this Section while a request for waiver | 14 |
| is pending. Damage awards
may not be paid out of utility rate | 15 |
| funds.
| 16 |
| (i) The provisions of this Section shall not in any way
| 17 |
| diminish or replace other civil or administrative remedies
| 18 |
| available to a customer or a class of customers.
| 19 |
| (j) The Commission shall by rule require an electric
| 20 |
| utility to maintain service records detailing
information on | 21 |
| each instance of transmission of power at
less than 50% of the | 22 |
| standard voltage, loss of power, or
power fluctuation (as | 23 |
| defined in subsection (f)), that
affects 10 or more customers. | 24 |
| Occurrences that are
momentary shall not be required to be | 25 |
| recorded or reported.
The service record shall include, for | 26 |
| each occurrence, the
following information:
|
|
|
|
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| (1) The date.
| 2 |
| (2) The time of occurrence.
| 3 |
| (3) The duration of the incident.
| 4 |
| (4) The number of customers affected.
| 5 |
| (5) A description of the cause.
| 6 |
| (6) The geographic area affected.
| 7 |
| (7) The specific equipment involved in the
fluctuation | 8 |
| or interruption.
| 9 |
| (8) A description of measures taken to restore
service.
| 10 |
| (9) A description of measures taken to remedy the
cause | 11 |
| of the power interruption or fluctuation.
| 12 |
| (10) A description of measures taken to prevent
future | 13 |
| occurrence.
| 14 |
| (11) The amount of remuneration, if any, paid to
| 15 |
| affected customers.
| 16 |
| (12) A statement of whether the fixed charge was
waived | 17 |
| for affected customers.
| 18 |
| Copies of the records containing this information shall
be | 19 |
| available for public inspection at the utility's offices,
and | 20 |
| copies thereof may be obtained upon payment of a fee not
| 21 |
| exceeding the reasonable cost of reproduction. A copy of
each | 22 |
| record shall be filed with the Commission and shall be
| 23 |
| available for public inspection. Copies of the records may
be | 24 |
| obtained upon payment of a fee not exceeding the
reasonable | 25 |
| cost of reproduction.
| 26 |
| (k) The requirements of subsections (e) through (j) of
this |
|
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| Section shall apply only to an electric public utility
having | 2 |
| 100,000 1,000,000 or more customers.
| 3 |
| (Source: P.A. 90-561, eff. 12-16-97.)
| 4 |
| ARTICLE 15 | 5 |
| Section 15-5. The Public Utilities Act is amended by | 6 |
| changing Section 2-202 as follows:
| 7 |
| (220 ILCS 5/2-202) (from Ch. 111 2/3, par. 2-202)
| 8 |
| Sec. 2-202. Policy; Public Utility Fund; tax.
| 9 |
| (a) It is declared to be the public policy of this State | 10 |
| that
in order to maintain and foster the effective regulation | 11 |
| of public
utilities under this Act in the interests of the | 12 |
| People of the State of
Illinois and the public utilities as | 13 |
| well, the public utilities subject
to regulation under this Act | 14 |
| and which enjoy the privilege of operating
as public utilities | 15 |
| in this State, shall bear the expense of
administering this Act | 16 |
| by means of a tax on such privilege measured by the
annual | 17 |
| gross revenue of such public utilities in the manner provided | 18 |
| in
this Section. For purposes of this Section, "expense of
| 19 |
| administering this Act" includes any costs incident to studies, | 20 |
| whether
made by the Commission or under contract entered into | 21 |
| by the Commission,
concerning environmental pollution problems | 22 |
| caused or contributed to by
public utilities and the means for | 23 |
| eliminating or abating those
problems. Such proceeds shall be |
|
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| deposited in the Public Utility Fund in
the State treasury.
| 2 |
| (b) All of the ordinary and contingent expenses of the
| 3 |
| Commission incident to the administration of this Act shall be | 4 |
| paid out
of the Public Utility Fund except the compensation of | 5 |
| the members of the
Commission which shall be paid from the | 6 |
| General Revenue Fund.
Notwithstanding other provisions of this | 7 |
| Act to the contrary, the
ordinary and contingent expenses of | 8 |
| the Commission incident to the
administration of the Illinois | 9 |
| Commercial Transportation Law may be paid
from appropriations | 10 |
| from the Public Utility Fund through the end of fiscal
year | 11 |
| 1986.
| 12 |
| (c) A tax is imposed upon each public utility subject to | 13 |
| the
provisions of this Act equal to .08% of its gross revenue | 14 |
| for each
calendar year commencing with the calendar year | 15 |
| beginning January 1, 1982,
except that the Commission may, by | 16 |
| rule, establish a different rate no
greater than 0.1%.
For | 17 |
| purposes of this Section, "gross revenue" shall not include
| 18 |
| revenue from the production, transmission, distribution, sale,
| 19 |
| delivery, or furnishing of electricity.
"Gross revenue" shall | 20 |
| not include amounts paid by telecommunications retailers
under | 21 |
| the Telecommunications Infrastructure Maintenance Fee Act.
| 22 |
| (d) Annual gross revenue returns shall be filed in | 23 |
| accordance with
paragraph (1) or (2) of this subsection (d).
| 24 |
| (1) Except as provided in paragraph (2) of this | 25 |
| subsection (d), on
or before January 10 of each year each | 26 |
| public utility
subject to the provisions of this Act shall |
|
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| file with the Commission an
estimated annual gross revenue | 2 |
| return containing an estimate of the amount
of its gross | 3 |
| revenue for the calendar year commencing January 1 of said
| 4 |
| year and a statement of the amount of tax due for said | 5 |
| calendar year on the
basis of that estimate. Public | 6 |
| utilities may also file revised returns
containing updated | 7 |
| estimates and updated amounts of tax due during the
| 8 |
| calendar year. These revised returns, if filed, shall form | 9 |
| the basis for
quarterly payments due during the remainder | 10 |
| of the calendar year. In
addition, on or before March 31 of | 11 |
| each year, each public
utility shall
file an amended return | 12 |
| showing the actual amount of gross revenues shown by
the | 13 |
| company's books and records as of December 31 of the | 14 |
| previous year.
Forms and instructions for such estimated, | 15 |
| revised, and amended returns
shall be devised and supplied | 16 |
| by the Commission.
| 17 |
| (2) Beginning with returns due after January 1, 2002, | 18 |
| the
requirements of paragraph (1) of
this subsection (d) | 19 |
| shall not apply to any public utility in any calendar year
| 20 |
| for which the total tax the public utility owes under this | 21 |
| Section is less than
$10,000. For such public utilities | 22 |
| with respect to such years,
the public
utility shall file | 23 |
| with the Commission, on or before March 31
of the
following | 24 |
| year, an annual gross revenue return for the year and a | 25 |
| statement of
the amount of tax due for that year on the | 26 |
| basis of such a return. Forms and
instructions for such |
|
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| returns and corrected returns shall be devised and
supplied | 2 |
| by the Commission.
| 3 |
| (e) All returns submitted to the Commission by a public | 4 |
| utility as
provided in this subsection (e) or subsection (d) of | 5 |
| this Section shall contain
or be verified by a written | 6 |
| declaration by an appropriate officer of the public
utility | 7 |
| that the return is made under the penalties of perjury. The | 8 |
| Commission
may audit each such return submitted and may, under | 9 |
| the provisions of Section
5-101 of this Act, take such measures | 10 |
| as are necessary to ascertain the
correctness of the returns | 11 |
| submitted. The Commission has the power to direct
the filing of | 12 |
| a corrected return by any utility which has filed an incorrect
| 13 |
| return and to direct the filing of a return by any utility | 14 |
| which has failed to
submit a return. A taxpayer's signing a | 15 |
| fraudulent return under this Section
is perjury, as defined in | 16 |
| Section 32-2 of the Criminal Code of 1961.
| 17 |
| (f) (1) For all public utilities subject to paragraph (1) | 18 |
| of
subsection (d), at least one quarter of the annual amount of | 19 |
| tax due
under subsection (c) shall be paid to the Commission on | 20 |
| or before the tenth day
of January, April, July, and October of | 21 |
| the calendar year subject to tax. In
the event that an | 22 |
| adjustment in the amount of tax due should be necessary as a
| 23 |
| result of the filing of an amended or corrected return under | 24 |
| subsection (d) or
subsection (e) of this Section, the amount of | 25 |
| any deficiency shall be paid by
the public utility together | 26 |
| with the amended or corrected return and the amount
of any |
|
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| excess shall, after the filing of a claim for credit by the | 2 |
| public
utility, be returned to the public utility in the form | 3 |
| of a credit memorandum
in the amount of such excess or be | 4 |
| refunded to the public utility in accordance
with the | 5 |
| provisions of subsection (k) of this Section. However, if such
| 6 |
| deficiency or excess is less than $1, then the public utility | 7 |
| need not pay the
deficiency and may not claim a credit.
| 8 |
| (2) Any public utility subject to paragraph (2) of | 9 |
| subsection (d)
shall pay the amount of tax due under subsection | 10 |
| (c) on or before March
31 next following the end of the | 11 |
| calendar year subject to tax. In the
event that an adjustment | 12 |
| in the amount of tax due should be necessary as a
result of the | 13 |
| filing of a corrected return under subsection (e), the amount
| 14 |
| of any deficiency shall be paid by the public utility at the | 15 |
| time the
corrected return is filed. Any excess tax payment by | 16 |
| the public utility shall
be returned to it after the filing of | 17 |
| a claim for credit, in the form of a
credit memorandum in the | 18 |
| amount of the excess. However, if such deficiency or
excess is | 19 |
| less than $1, the public utility need not pay the deficiency | 20 |
| and may
not claim a credit.
| 21 |
| (g) Each installment or required payment of the tax imposed | 22 |
| by
subsection (c) becomes delinquent at midnight of the date | 23 |
| that it is due.
Failure to make a payment as required by this | 24 |
| Section shall result in the
imposition of a late payment | 25 |
| penalty, an underestimation penalty, or both,
as provided by | 26 |
| this subsection. The late payment penalty shall be the
greater |
|
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| of:
| 2 |
| (1) $25 for each month or portion of a month that the | 3 |
| installment or
required payment is unpaid or
| 4 |
| (2) an amount equal to the difference between what | 5 |
| should have been paid
on the due date, based upon the most | 6 |
| recently filed estimated, annual, or
amended return, and | 7 |
| what was
actually paid, times 1%, for each month or portion | 8 |
| of a
month that
the installment or required payment goes | 9 |
| unpaid. This penalty may be
assessed as soon as the | 10 |
| installment or required payment becomes delinquent.
| 11 |
| The underestimation penalty shall apply to those public | 12 |
| utilities
subject to paragraph (1) of subsection (d) and shall | 13 |
| be calculated after
the filing of the amended return. It shall | 14 |
| be imposed if the amount actually
paid on any of the dates | 15 |
| specified in subsection (f) is not equal to at least
one-fourth | 16 |
| of the amount actually due for the year, and shall equal the | 17 |
| greater
of:
| 18 |
| (1) $25 for each month or portion of a month that the | 19 |
| amount due is unpaid
or
| 20 |
| (2) an amount equal to the difference between what | 21 |
| should have been
paid, based on the amended return, and | 22 |
| what was actually paid as of the
date specified in | 23 |
| subsection (f), times a percentage equal to 1/12 of the
sum | 24 |
| of 10% and the percentage most recently established by the | 25 |
| Commission
for interest to be paid on customer deposits | 26 |
| under 83 Ill. Adm. Code
280.70(e)(1), for each month or |
|
|
|
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| portion of a month that the amount due goes
unpaid, except | 2 |
| that no underestimation penalty shall be assessed if the
| 3 |
| amount actually paid on or before each of the dates | 4 |
| specified in subsection
(f) was
based on an estimate of | 5 |
| gross revenues at least equal to the actual gross
revenues | 6 |
| for the previous year. The Commission may enforce the | 7 |
| collection
of any delinquent installment or payment, or | 8 |
| portion thereof by legal
action or in any other manner by | 9 |
| which the collection of debts due the
State of Illinois may | 10 |
| be enforced under the laws of this State. The
executive | 11 |
| director or his designee may excuse the payment of an
| 12 |
| assessed penalty or a portion of an assessed penalty if he | 13 |
| determines that
enforced collection of the penalty as | 14 |
| assessed
would be unjust.
| 15 |
| (h) All sums collected by the Commission under the | 16 |
| provisions of
this Section shall be paid promptly after the | 17 |
| receipt of the same, accompanied
by a detailed statement | 18 |
| thereof, into the Public Utility Fund in the State
treasury.
| 19 |
| (i) During the month of October of each odd-numbered year | 20 |
| the
Commission shall:
| 21 |
| (1) determine the amount of all moneys deposited in the | 22 |
| Public Utility
Fund during the preceding fiscal biennium | 23 |
| plus the balance, if any, in that
fund at the beginning of | 24 |
| that biennium;
| 25 |
| (2) determine the sum total of the following items: (A) | 26 |
| all moneys
expended or obligated against appropriations |
|
|
|
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| made from the Public Utility
Fund during the preceding | 2 |
| fiscal biennium, plus (B) the sum of the credit
memoranda | 3 |
| then outstanding against the Public Utility Fund, if any; | 4 |
| and
| 5 |
| (3) determine the amount, if any, by which the sum | 6 |
| determined as
provided in item (1) exceeds the amount | 7 |
| determined as provided in item (2).
| 8 |
| If the amount determined as provided in item (3) of this | 9 |
| subsection exceeds
50% of the previous fiscal year's | 10 |
| appropriation level $5,000,000 , the Commission shall then | 11 |
| compute the
proportionate amount, if
any, which (x) the tax | 12 |
| paid hereunder by each utility during the preceding
biennium, | 13 |
| and (y) the amount paid into the Public Utility Fund during the
| 14 |
| preceding biennium by the Department of Revenue pursuant to | 15 |
| Sections 2-9 and
2-11
of the Electricity Excise Tax Law, bears | 16 |
| to the difference between the amount
determined as
provided in | 17 |
| item (3) of this subsection (i) and 50% of the previous fiscal | 18 |
| year's appropriation level $5,000,000 .
The
Commission
shall | 19 |
| cause the proportionate amount determined with respect to | 20 |
| payments
made under the Electricity Excise Tax Law to be | 21 |
| transferred into the General
Revenue Fund in the State | 22 |
| Treasury, and notify each
public utility that it may file | 23 |
| during the 3 month period after the date of
notification a | 24 |
| claim for credit for the proportionate amount
determined with | 25 |
| respect to payments made hereunder by the public utility.
If | 26 |
| the
proportionate amount is less than $10, no notification will |
|
|
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| be sent by the
Commission, and no right to a claim exists as to | 2 |
| that amount. Upon the
filing of a claim for credit within the | 3 |
| period provided, the Commission
shall issue a credit memorandum | 4 |
| in such amount to such public utility. Any
claim for credit | 5 |
| filed after the period provided for in this Section is void.
| 6 |
| (j) Credit memoranda issued pursuant to subsection (f)
and | 7 |
| credit memoranda issued after notification and filing pursuant | 8 |
| to
subsection (i) may be applied for the 2 year period from the | 9 |
| date of issuance,
against the payment of any amount due during | 10 |
| that period under
the tax imposed by subsection (c), or, | 11 |
| subject to reasonable rule of the
Commission including | 12 |
| requirement of notification, may be assigned to any
other | 13 |
| public utility subject to regulation under this Act. Any | 14 |
| application
of credit memoranda after the period provided for | 15 |
| in this Section is void.
| 16 |
| (k) The chairman or executive director may make refund of | 17 |
| fees, taxes or
other charges whenever he shall determine that | 18 |
| the person or public utility
will not be liable for payment of | 19 |
| such fees, taxes or charges during the
next 24 months and he | 20 |
| determines that the issuance of a credit memorandum
would be | 21 |
| unjust.
| 22 |
| (Source: P.A. 92-11, eff. 6-11-01; 92-22, eff. 6-30-01; 92-526, | 23 |
| eff.
1-1-03.)
| 24 |
| Section 15-10. The Illinois Vehicle Code is amended by | 25 |
| changing Section 18c-1503 as follows:
|
|
|
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| 1 |
| (625 ILCS 5/18c-1503) (from Ch. 95 1/2, par. 18c-1503)
| 2 |
| Sec. 18c-1503. Legislative Intent. It is the intent of the | 3 |
| Legislature that the exercise of powers
under Sections 18c-1501 | 4 |
| and 18c-1502 of this Chapter shall not
diminish revenues to the | 5 |
| Commission, and that any surplus or
deficit of revenues in the | 6 |
| Transportation Regulatory Fund,
together with any projected | 7 |
| changes in the cost of administering
and enforcing this | 8 |
| Chapter, should be considered in establishing or
adjusting fees | 9 |
| and taxes in succeeding years. The Commission
shall administer | 10 |
| fees and taxes under this Chapter in such a manner
as to insure | 11 |
| that any surplus generated or accumulated in the
Transportation | 12 |
| Regulatory Fund does not exceed 50% of the previous fiscal | 13 |
| year's appropriation the surplus
accumulated in the Motor | 14 |
| Vehicle Fund during fiscal year 1984, and
shall adjust the | 15 |
| level of such fees and taxes to insure
compliance with this | 16 |
| provision.
| 17 |
| (Source: P.A. 84-796.)
| 18 |
| ARTICLE 99 | 19 |
| Section 99-97. Severability. The provisions of this Act are | 20 |
| severable under Section 1.31 of the Statute on Statutes.
| 21 |
| Section 99-99. Effective date. This Act takes effect upon | 22 |
| becoming law.".
|
|