Rep. Gary Hannig
Filed: 4/26/2007
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1 | AMENDMENT TO HOUSE BILL 1834
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2 | AMENDMENT NO. ______. Amend House Bill 1834, AS AMENDED, by | ||||||
3 | replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Public Utilities Act is amended by adding | ||||||
6 | Article XXI as follows: | ||||||
7 | (220 ILCS 5/Art. XXI heading new)
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8 | ARTICLE XXI. CLEAN COAL DEVELOPMENT PROGRAM LAW | ||||||
9 | (220 ILCS 5/21-101 new)
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10 | Sec. 21-101. Short title. This Article may be cited as the | ||||||
11 | Clean Coal Development Program Law.
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12 | (220 ILCS 5/21-105 new)
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13 | Sec. 21-105. Findings. The General Assembly finds that: | ||||||
14 | (a) Growth of the State's population and economic base has |
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1 | created a need for new baseload electric generation capacity in | ||||||
2 | Illinois. | ||||||
3 | (b) Illinois has considerable natural resources that are | ||||||
4 | currently underutilized and could support development of new | ||||||
5 | baseload electric power at an affordable price. | ||||||
6 | (c) The development of new baseload electric generating | ||||||
7 | capacity is needed if the State is to continue to be successful | ||||||
8 | in attracting new businesses and jobs. | ||||||
9 | (d) Certain regions of the State, such as central and | ||||||
10 | southern Illinois, could benefit greatly from new employment | ||||||
11 | opportunities created by development of baseload electric | ||||||
12 | generating plants utilizing the plentiful supply of Illinois | ||||||
13 | Basin coal. | ||||||
14 | (e) Technology can be deployed that allows high sulfur | ||||||
15 | Illinois Basin coal to be burned efficiently while meeting | ||||||
16 | strict State and federal air quality limitations. | ||||||
17 | Specifically, the State shall encourage the use of advanced | ||||||
18 | clean coal technology, such as Integrated Gasification | ||||||
19 | Combined Cycle (IGCC) technology. | ||||||
20 | (f) The development of new baseload electric generating | ||||||
21 | plants, as contemplated in the Clean Coal Development Program | ||||||
22 | Law, will create benefits to all consumers of electricity in | ||||||
23 | the State by reducing market energy prices and electric | ||||||
24 | capacity prices through increased supply. Such benefits will | ||||||
25 | include lower and more stable prices for electricity.
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1 | (220 ILCS 5/21-110 new)
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2 | Sec. 21-110. Definitions. For the purposes of this Article, | ||||||
3 | the following terms shall be defined as set forth in this | ||||||
4 | Section. | ||||||
5 | The terms defined in Section 16-102 of the Public Utilities | ||||||
6 | Act have the meanings ascribed to them in that Act. | ||||||
7 | "Actual total capital costs" means, as more specifically | ||||||
8 | set forth in the service agreement or agreements for a clean | ||||||
9 | coal project, the total initial capital costs recoverable by | ||||||
10 | such clean coal project pursuant to its wholesale sales tariff | ||||||
11 | upon completion of such clean coal project. | ||||||
12 | "CCN" means a certificate of convenience and necessity. | ||||||
13 | "Clean coal project" means any existing or planned electric | ||||||
14 | generating project that has a wholesale tariff pursuant to the | ||||||
15 | Federal Power Act and that is designed (1) to have a nameplate | ||||||
16 | capacity of no less than 400 megawatts gross, (2) to be | ||||||
17 | directly interconnected with a participating electric utility, | ||||||
18 | (3) to utilize integrated gasification combined cycle | ||||||
19 | technology, and (4) to utilize as its primary fuel or feedstock | ||||||
20 | coal having high volatile bituminous rank and greater than 1.7 | ||||||
21 | pounds of sulfur per million Btu content and for which a final | ||||||
22 | air permit has been issued that describes the project as having | ||||||
23 | a designed nameplate capacity of no less than 400 megawatts | ||||||
24 | gross. When warranted by the usage, "clean coal project" shall | ||||||
25 | mean the owner, operator, or lessee of a clean coal project. | ||||||
26 | "Core plant construction cost ceiling" means, as more |
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1 | specifically set forth in the service agreement or agreements | ||||||
2 | for a given clean coal project, $2,500 per kilowatt of net | ||||||
3 | design capacity (excluding for this purpose any power required | ||||||
4 | for carbon capture) of a clean coal project expressed in | ||||||
5 | January 2007 nominal dollars, adjusted for inflation using the | ||||||
6 | producer price index published by the U.S. Bureau of Labor | ||||||
7 | Statistics to the date upon that the core plant construction | ||||||
8 | cost quote for such clean coal project is expressed.
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9 | "Core plant construction cost quote" means, as more | ||||||
10 | specifically set forth for a clean coal project in the | ||||||
11 | applicable service agreement or agreements, a price quote or | ||||||
12 | estimate prepared by a reputable engineering and construction | ||||||
13 | services firm (or group of firms) for the costs payable to one | ||||||
14 | or more contractors or suppliers for the engineering, | ||||||
15 | procurement, and construction of the core plant facilities | ||||||
16 | comprising a clean coal project. Such core plant facilities | ||||||
17 | shall include all civil, structural, mechanical, electrical, | ||||||
18 | control, and safety systems associated with the following major | ||||||
19 | core plant functional areas: air separation, coal grinding and | ||||||
20 | slurry preparation, gasification and high temperature | ||||||
21 | synthesis gas cooling, low temperature synthesis gas cooling, | ||||||
22 | acid gas removal, sulfur recovery, tail gas treatment, combined | ||||||
23 | cycle power block, coal fines and slag handling, and water and | ||||||
24 | wastewater treatment at the plant site. The quote or estimate | ||||||
25 | shall be based on detailed design work sufficient to permit | ||||||
26 | quantification of major categories of materials, commodities, |
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1 | and labor man hours, and receipt of quotes from vendors of | ||||||
2 | major equipment packages. The costs shall be expressed in | ||||||
3 | nominal dollars as of the date of the estimate and shall be | ||||||
4 | exclusive of construction financing costs, taxes, insurance, | ||||||
5 | and an escalation in materials and labor beyond the date as of | ||||||
6 | which the core plant construction cost quote is expressed, | ||||||
7 | costs associated with non-core plant interconnection | ||||||
8 | facilities for electric transmission, natural gas supply, | ||||||
9 | water supply and coal delivery, and other non-core plant costs. | ||||||
10 | For purposes of Section 21-145, the core plant construction | ||||||
11 | cost quote shall be expressed in nominal dollars per kilowatt | ||||||
12 | of net design capacity of the clean coal project by dividing | ||||||
13 | the core plant construction cost quote by the net design | ||||||
14 | capacity of the clean coal project. | ||||||
15 | "Department" means the Department of Commerce and Economic | ||||||
16 | Opportunity. | ||||||
17 | "FERC" means the Federal Energy Regulatory Commission, an | ||||||
18 | independent
regulatory commission within the Department of | ||||||
19 | Energy established by Section 401 of the Department of Energy | ||||||
20 | Organization Act, or any agency succeeding to the powers | ||||||
21 | thereof under Section 205 of the Federal Power Act. | ||||||
22 | "Final air permit" means a Prevention of Significant | ||||||
23 | Deterioration of Air Quality (PSD) Construction Permit issued | ||||||
24 | on or before December 31, 2010. | ||||||
25 | "Formula rate" means a formula used to calculate a | ||||||
26 | cost-based rate for the sale of electric capacity and |
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1 | associated energy from a clean coal project set forth in the | ||||||
2 | applicable wholesale sales tariff. | ||||||
3 | "FutureGen demonstration project" means a 10-year | ||||||
4 | demonstration project sponsored by the United States to create | ||||||
5 | a zero-emissions electricity and hydrogen power plant that is: | ||||||
6 | (1) not otherwise eligible to participate in the Clean | ||||||
7 | Coal Development Program; | ||||||
8 | (2) designed to include all of the following: | ||||||
9 | (A) have a nameplate capacity of not greater than | ||||||
10 | 300 megawatts gross; | ||||||
11 | (B) be directly interconnected with a | ||||||
12 | participating electric utility; and | ||||||
13 | (C) utilize as its primary fuel or feedstock coal | ||||||
14 | having high volatile bituminous rank and greater than | ||||||
15 | 1.7 pounds of sulfur per million Btu content; and | ||||||
16 | (3) has a planned construction start date not later | ||||||
17 | than December 31, 2010.
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18 | "Participating electric utility" means any Illinois | ||||||
19 | electric utility as defined in the Public Utilities Act that as | ||||||
20 | of the effective date of this Act provides delivery services to | ||||||
21 | more than 100,000 electric customers in Illinois. | ||||||
22 | "Service agreement" means a service agreement for the sale | ||||||
23 | of electric capacity and associated energy from a clean coal | ||||||
24 | project substantively identical to the pro forma service | ||||||
25 | agreement contained in the applicable wholesale sales tariff. | ||||||
26 | "Total capital cost target" means the net design output of |
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1 | the clean coal project (excluding for this purpose any power | ||||||
2 | requirements for carbon capture), expressed in kilowatts times | ||||||
3 | $3,850, as adjusted in accordance with the following: | ||||||
4 | (1) such amount shall be increased by any reasonably | ||||||
5 | estimated increase in any total capital costs per kilowatt | ||||||
6 | that results from the core plant construction cost quote, | ||||||
7 | as approved by the ICC, being higher than the core plant | ||||||
8 | construction cost ceiling; | ||||||
9 | (2) such amount shall be decreased or increased, as the | ||||||
10 | case may be, by the amount, if any, by which actual total | ||||||
11 | capital costs per kilowatt are decreased or increased due | ||||||
12 | to positive or negative price escalation provided for under | ||||||
13 | the applicable contract or contracts for the core plant | ||||||
14 | construction, with any escalation in commodity prices | ||||||
15 | being based on published indices; | ||||||
16 | (3) such amount shall be increased by the amount of any | ||||||
17 | additional capital costs per kilowatt that are justly and | ||||||
18 | reasonably incurred due to a change in law or regulation | ||||||
19 | enacted after the date the applicable service agreement is | ||||||
20 | executed by the participating electric utility; and | ||||||
21 | (4) such amount shall be increased by any increase in | ||||||
22 | total capitalized financing costs per kilowatt resulting | ||||||
23 | from a clean coal project not receiving Illinois moral | ||||||
24 | obligation bond financing or tax exempt finance volume cap | ||||||
25 | allocation in the amounts preliminarily approved for such | ||||||
26 | clean coal project by the Illinois Finance Authority or not |
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1 | receiving state grants equal to at least 15% of the total | ||||||
2 | capital cost ceiling.
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3 | "Wholesale sales tariff" means a schedule of rates, terms, | ||||||
4 | and conditions for the sale of electric capacity and associated | ||||||
5 | energy from a clean coal project filed with FERC by the owner, | ||||||
6 | lessee, or operator of that clean coal project and allowed by | ||||||
7 | FERC to become effective pursuant to Section 205 of the Federal | ||||||
8 | Power Act and Part 35 of FERC's regulations.
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9 | (220 ILCS 5/21-115 new)
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10 | Sec. 21-115. Clean coal development program. | ||||||
11 | (a) Each participating electric utility shall purchase | ||||||
12 | electric capacity and associated energy from the owners, | ||||||
13 | lessees, or operators of clean coal projects pursuant to | ||||||
14 | service agreements in accordance with the provisions of Section | ||||||
15 | 21-115 of this Article. | ||||||
16 | (b) Upon receipt of an offer from a clean coal project to | ||||||
17 | sell capacity and associated energy pursuant to a wholesale | ||||||
18 | sales tariff, the participating electric utility shall, within | ||||||
19 | 30 days after receipt of the pro forma service agreement | ||||||
20 | contained in the wholesale sales tariff, execute the service | ||||||
21 | agreement and file the executed service agreement for | ||||||
22 | informational purposes with the Commission, provided that no | ||||||
23 | participating electric utility shall enter into a service | ||||||
24 | agreement if the amount of capacity to be purchased under such | ||||||
25 | service agreement, together with the aggregate amount of all |
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1 | capacity purchased under other service agreements executed | ||||||
2 | previously or contemporaneously by the participating electric | ||||||
3 | utility from all clean coal projects other than a FutureGen | ||||||
4 | demonstration project, exceeds 5% of the participating | ||||||
5 | electric utility's coincident peak delivery services load, | ||||||
6 | expressed in kilowatts, for the calendar year immediately | ||||||
7 | preceding the effective date of this Article.
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8 | (220 ILCS 5/21-120 new)
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9 | Sec. 21-120. Characteristics of the wholesale sales | ||||||
10 | tariff. Subject to the jurisdiction of FERC with respect to the | ||||||
11 | wholesale sales tariff, in order to fulfill the purposes of the | ||||||
12 | Clean Coal Development Program, it is desirable that the | ||||||
13 | formula rate and service agreement have characteristics that | ||||||
14 | are adequate and appropriate to support the long-term | ||||||
15 | investments necessary for the construction and operation of | ||||||
16 | clean coal projects. It is the intent of the General Assembly | ||||||
17 | that: | ||||||
18 | (1) With respect to the formula rate, the following | ||||||
19 | characteristics are adequate and appropriate: | ||||||
20 | (A) the use of a cost of service methodology | ||||||
21 | employing a level capital recovery component; | ||||||
22 | (B) the use of a hypothetical capital structure, as | ||||||
23 | such structure is used by FERC pursuant to Sections 205 | ||||||
24 | and 206 of the Federal Power Act, that assumes a | ||||||
25 | capital structure for a clean coal project of 45% |
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1 | equity and 55% debt; | ||||||
2 | (C) (i) with respect to the first clean coal | ||||||
3 | project that has a wholesale sales tariff made | ||||||
4 | effective pursuant to Section 205 of the Federal Power | ||||||
5 | Act and part 35 of FERC's regulations, the use of a | ||||||
6 | return on equity that is fixed for the term of the | ||||||
7 | service agreement at a rate equal to 11.5%; and (ii) | ||||||
8 | with respect to any subsequent clean coal projects, the | ||||||
9 | use of a return on equity that is fixed for the term of | ||||||
10 | the service agreement at a rate equal to a rate of | ||||||
11 | between 9% and 11% (with a single fixed rate being set | ||||||
12 | forth in the service agreement); and | ||||||
13 | (D) the use of an incentive or penalty mechanism | ||||||
14 | such that (i) if the actual total capital costs of a | ||||||
15 | given clean coal project exceeds the total capital cost | ||||||
16 | target, then the return on equity applicable to the | ||||||
17 | portion of the actual total capital costs in excess of | ||||||
18 | the total capital cost target (a) shall be reduced by | ||||||
19 | 300 basis points (with there being 100 basis points in | ||||||
20 | each percent of return on equity) for the first $80 per | ||||||
21 | kilowatt of such excess total capital costs, (b) shall | ||||||
22 | be reduced by 600 basis points for the next $80 per | ||||||
23 | kilowatt of such excess total capital costs, and (c) | ||||||
24 | shall be reduced to zero for any excess capital costs | ||||||
25 | over $160 per kilowatt, and (ii) if the actual total | ||||||
26 | capital costs of a given clean coal project are less |
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1 | than the total capital cost target, then the return on | ||||||
2 | equity for an amount equal to the amount that the total | ||||||
3 | capital cost is less than the total capital cost target | ||||||
4 | shall be increased by 300 basis points.
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5 | (2) With respect to the service agreement, the | ||||||
6 | following characteristics are adequate and appropriate: | ||||||
7 | (A) a provision setting forth a term of 40 years | ||||||
8 | commencing on the date upon which the clean coal | ||||||
9 | project achieves commercial operation; | ||||||
10 | (B) a provision incorporating the duties and | ||||||
11 | obligations of the clean coal project and the | ||||||
12 | participating electric utility with respect to the | ||||||
13 | notice and termination mechanism set forth in Section | ||||||
14 | 21-145 of this Article;
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15 | (C) a provision to the effect that a change in law, | ||||||
16 | regulation or market conditions is not a basis for | ||||||
17 | termination or reduction in payments by the purchaser; | ||||||
18 | (D) provisions for a plant availability target of | ||||||
19 | 85% from and after the third full calendar year of | ||||||
20 | operation and an incentive structure for meeting such | ||||||
21 | target, provided that the total bonus in any year for | ||||||
22 | exceeding the target in any year shall not exceed an | ||||||
23 | amount equivalent to 10% of the total return on equity | ||||||
24 | for such year and the total penalty for falling short | ||||||
25 | of such target in any year shall not exceed an amount | ||||||
26 | equal to 15% of the total return on equity for such |
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1 | year; and | ||||||
2 | (E) a provision pursuant to which at the end of the | ||||||
3 | 40-year contract term the clean coal project will, upon | ||||||
4 | the request of the Commission or other agency of the | ||||||
5 | State of Illinois authorized to make such request, be | ||||||
6 | transferred for the benefit of ratepayers to a trust or | ||||||
7 | other entity nominated by the Commission or other | ||||||
8 | agency in return for no consideration other than the | ||||||
9 | assumption of the obligation to retire the clean coal | ||||||
10 | project and remediate the site when the clean coal | ||||||
11 | project reaches the end of its useful economic life.
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12 | (3) With respect to the standard of review under the | ||||||
13 | Federal Power Act of the wholesale sales tariff, it is | ||||||
14 | adequate and appropriate that absent mutual written | ||||||
15 | consent of the participating electric utility and the | ||||||
16 | owner, operator, or lessee of a clean coal project any | ||||||
17 | proposed changes under Sections 205 and 206 of the Federal | ||||||
18 | Power Act to the wholesale sales tariff, including without | ||||||
19 | limitation the formula rate and service agreement, are | ||||||
20 | subject to the "public interest" standard of review as such | ||||||
21 | standard of review is applied by FERC pursuant to sections | ||||||
22 | 205 and 206 of the Federal Power Act. | ||||||
23 | To the extent, if any, that a wholesale sales tariff as | ||||||
24 | allowed to be effective by FERC has characteristics in addition | ||||||
25 | to, or different from, those set forth in this Section, such | ||||||
26 | additional or different characteristics shall not alter a |
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1 | participating electric utility's obligation to purchase | ||||||
2 | capacity and associated energy pursuant to wholesale sales | ||||||
3 | tariffs as set forth in this Article. | ||||||
4 | Nothing in this Article shall be deemed to limit the | ||||||
5 | participation of the State, or any agency or political | ||||||
6 | subdivision thereof, or any elected or appointed official of | ||||||
7 | the State of Illinois or any agency or political subdivision | ||||||
8 | thereof, in any FERC proceeding related to a wholesale sales | ||||||
9 | tariff. | ||||||
10 | (220 ILCS 5/21-125 new)
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11 | Sec. 21-125. Disposition of capacity and energy. | ||||||
12 | (a) Each participating electric utility that executes a | ||||||
13 | service agreement pursuant to the Clean Coal Development | ||||||
14 | Program Law shall resell the capacity and associated energy | ||||||
15 | purchased from a clean coal project to wholesale purchasers in | ||||||
16 | the wholesale capacity and energy markets available to the | ||||||
17 | participating electric utility. The participating electric | ||||||
18 | utility shall use its best efforts to obtain the highest prices | ||||||
19 | for the capacity and associated energy sold pursuant to this | ||||||
20 | Section so as to minimize the costs passed through to the | ||||||
21 | participating electric utility's delivery service customers | ||||||
22 | pursuant to Section 21-130. | ||||||
23 | (b) The participating electric utility shall be in | ||||||
24 | compliance with this Section if: | ||||||
25 | (1) the prices obtained by the participating electric |
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1 | utility are no less than the prices available for the | ||||||
2 | capacity and associated energy if sold into the day-ahead | ||||||
3 | and real time capacity and energy markets administered by a | ||||||
4 | regional transmission organization to which the applicable | ||||||
5 | qualified clean coal project is interconnected; or | ||||||
6 | (2) the participating electric utility otherwise sells | ||||||
7 | the capacity and associated energy pursuant to a plan set | ||||||
8 | forth in a tariff approved by the Commission pursuant to | ||||||
9 | Article IX of the Public Utilities Act.
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10 | (220 ILCS 5/21-130 new)
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11 | Sec. 21-130. Pass-through of clean coal development | ||||||
12 | benefits and costs. | ||||||
13 | (a) Because a participating electric utility is required to | ||||||
14 | accept an offer from a clean coal project to sell capacity and | ||||||
15 | associated energy pursuant to a wholesale sales tariff as | ||||||
16 | provided in Section 21-115 of this Article, the participating | ||||||
17 | electric utility is entitled to recover the costs less benefits | ||||||
18 | from its purchases pursuant to the wholesale sales tariff in | ||||||
19 | its retail rates. Each participating electric utility shall | ||||||
20 | pass-through to its delivery services customers the benefits | ||||||
21 | and costs of the Clean Coal Development Program without mark-up | ||||||
22 | as set forth in this Section. | ||||||
23 | (b) Within 60 days after the effective date of this | ||||||
24 | Article, each participating electric utility shall file with | ||||||
25 | the Commission a rider to such utility's tariff that complies |
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1 | with this Section. Such tariff riders shall be subject to | ||||||
2 | Article IX of the Public Utilities Act; provided, however, that | ||||||
3 | the period of suspension of such rider shall not extend more | ||||||
4 | than 75 days beyond the time when such rider would otherwise go | ||||||
5 | into effect and such period of suspension shall not be extended | ||||||
6 | by the Commission. Any proceeding initiated pursuant to Article | ||||||
7 | IX with respect to such rider shall be limited to making a | ||||||
8 | determination that, as a matter of law, the tariff rider | ||||||
9 | complies with the requirements of this section and any such | ||||||
10 | proceeding may not exceed 120 days in length. | ||||||
11 | (c) In order to comply with this Section, a tariff rider | ||||||
12 | shall: | ||||||
13 | (1) apply to all customers to which the participating | ||||||
14 | electric utility provides bundled retail services or | ||||||
15 | retail distribution service; | ||||||
16 | (2) be incorporated onto the participating electric | ||||||
17 | utility's customer bills in the same manner in which the | ||||||
18 | participating electric utility, as of the effective date of | ||||||
19 | this Article, incorporates charges pursuant to Section 6-5 | ||||||
20 | of the Renewable Energy, Energy Efficiency and Coal | ||||||
21 | Resources Development Law of 1997; and | ||||||
22 | (3) use an automatic rate adjustment methodology, as | ||||||
23 | such methodology understood pursuant to the Public | ||||||
24 | Utilities Act, having the following characteristics: | ||||||
25 | (A) a "CCDP factor" defined as the factor | ||||||
26 | calculated as set forth in this subsection (c) to |
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1 | represent the net benefit or cost of the Clean Coal | ||||||
2 | Development Program; | ||||||
3 | (B) a "determination period" defined as the | ||||||
4 | calendar month for which a CCDP Factor is determined | ||||||
5 | for the participating electric utility's delivery | ||||||
6 | services customers; | ||||||
7 | (C) an "effective period" defined as the monthly | ||||||
8 | billing period occurring 2 months after the | ||||||
9 | determination period, during which the CCDP factor is | ||||||
10 | applied to kilowatt-hours of energy delivered by the | ||||||
11 | participating electric utility to its delivery | ||||||
12 | services customers; | ||||||
13 | (D) "accrued CCDP expenses" defined as the sum of | ||||||
14 | accrued expenses incurred by the participating | ||||||
15 | electric utility during the determination period | ||||||
16 | pursuant to executed service agreements with clean | ||||||
17 | coal projects; | ||||||
18 | (E) "accrued CCDP revenues" defined as the sum of | ||||||
19 | accrued revenues recorded by the participating | ||||||
20 | electric utility during the determination period | ||||||
21 | associated with the sale of capacity and associated | ||||||
22 | energy by the participating electric utility pursuant | ||||||
23 | to Section 125 of this Article; | ||||||
24 | (F) "automatic CCDP balancing factor" defined as | ||||||
25 | the cumulative debit or credit balance, if any, | ||||||
26 | resulting from the application of the CCDP factor from |
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1 | the effective date of the tariff rider through the | ||||||
2 | determination period; | ||||||
3 | (G) "forecast usage" (expressed in kilowatt-hours) | ||||||
4 | defined as the forecast by the participating electric | ||||||
5 | utility of the total energy that the participating | ||||||
6 | electric utility expects to deliver to its delivery | ||||||
7 | services customers during the effective period; and | ||||||
8 | (H) a formula for the determination of the CCDP | ||||||
9 | factor that divides the sum of the CCDP accrued | ||||||
10 | revenues, CCDP accrued expenses, and automatic CCDP | ||||||
11 | balancing factor by the forecast usage. | ||||||
12 | (d) Each participating electric utility shall submit its | ||||||
13 | CCDP factor to the Commission in an informational filing at | ||||||
14 | least 3 business days prior to the start of each effective | ||||||
15 | period during which it is to be applied. In addition, each | ||||||
16 | participating electric utility that is purchasing capacity and | ||||||
17 | associated energy pursuant to a service agreement during a | ||||||
18 | calendar year shall prepare and submit to the Commission an | ||||||
19 | annual report for each calendar year during which such | ||||||
20 | purchases are made, containing the details of the calculation | ||||||
21 | of its CCDP factor on or before the last business day of April | ||||||
22 | of the following calendar year. | ||||||
23 | (220 ILCS 5/21-135 new)
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24 | Sec. 21-135. Affiliate transactions. Notwithstanding any | ||||||
25 | other provision of this Article, if an electric utility or an |
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1 | affiliate of an electric utility has an ownership interest in | ||||||
2 | any eligible facility, Article VII of this Act shall apply.
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3 | (220 ILCS 5/21-140 new)
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4 | Sec. 21-140. Certificates of convenience and necessity. | ||||||
5 | (a) If a CCN is required from the Commission for the | ||||||
6 | construction of transmission or pipeline facilities necessary | ||||||
7 | to support interconnection or supplemental fuel supply of a | ||||||
8 | clean coal project, the Commission's order shall be entered (1) | ||||||
9 | within 180 days after the date on which an application for such | ||||||
10 | a CCN has been filed pursuant to Section 8-406 of this Act | ||||||
11 | without a request for an order pursuant to Section 8-503 of | ||||||
12 | this Act; or (2) within 270 days in the case of an application | ||||||
13 | with a request for an order pursuant to Section 8-503 of this | ||||||
14 | Act. | ||||||
15 | (b) In any proceeding conducted by the Commission with | ||||||
16 | respect to a CCN filed pursuant to this Section, intervention | ||||||
17 | shall be limited to parties with a direct interest in the | ||||||
18 | requested CCN and any statutory consumer protection agency as | ||||||
19 | defined in subsection (d) of Section 9-102.1 of this Act. | ||||||
20 | Parties with a direct interest shall include each owner of | ||||||
21 | record of the land that would be crossed by the proposed | ||||||
22 | transmission or pipeline facilities unless the Commission | ||||||
23 | determines that such owner has acquired the land solely for the | ||||||
24 | purpose of becoming a party to the CCN proceeding, and all | ||||||
25 | utilities and railroads whose lines will be crossed by the |
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1 | proposed transmission or pipeline facilities or whose lines | ||||||
2 | will be paralleled within 200 feet by such proposed facilities. | ||||||
3 | Any application seeking rehearing of an order issued in | ||||||
4 | response to an application for a CCN filed pursuant to the | ||||||
5 | Section shall be filed within 10 days after service of the | ||||||
6 | order. | ||||||
7 | (c) The construction of transmission and pipeline | ||||||
8 | facilities necessary to support interconnection or | ||||||
9 | supplemental fuel supply of a clean coal project is in the | ||||||
10 | public interest, and in determining whether to issue an order | ||||||
11 | granting a CCN for construction of such facilities, the | ||||||
12 | Commission shall liberally construe the provisions of this | ||||||
13 | Section in favor of granting a CCN for construction of such | ||||||
14 | facilities.
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15 | (220 ILCS 5/21-145 new)
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16 | Sec. 21-145. Termination mechanism. Because (i) the core | ||||||
17 | plant construction cost quote will not likely be known at the | ||||||
18 | time when the applicable service agreement is executed by the | ||||||
19 | participating electric utility and (ii) the clean coal project | ||||||
20 | will likely incur significant costs related to the engineering | ||||||
21 | and design services performed to obtain the core plant | ||||||
22 | construction cost quote, and in order to provide a mechanism | ||||||
23 | for the Commission to review and approve any increase in the | ||||||
24 | anticipated core plant construction costs quote, the following | ||||||
25 | termination mechanism shall apply to all clean coal projects |
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1 | participating in the Clean Coal Development Program: | ||||||
2 | (1) Upon completion of the core plant construction cost | ||||||
3 | quote for a given clean coal project, the clean coal | ||||||
4 | project shall compare its core plant construction cost | ||||||
5 | quote to the inflation-adjusted core plant construction | ||||||
6 | cost ceiling and determine whether its core plant | ||||||
7 | construction cost quote is in excess of the | ||||||
8 | inflation-adjusted core plant construction cost ceiling. | ||||||
9 | (2) If a clean coal project determines that its core | ||||||
10 | plant construction cost quote is in excess of the | ||||||
11 | inflation-adjusted core plant construction cost ceiling, | ||||||
12 | then the clean coal project shall file with the Commission | ||||||
13 | a pleading summarizing its determination that its core | ||||||
14 | plant construction cost quote is in excess of the | ||||||
15 | inflation-adjusted core plant construction cost ceiling | ||||||
16 | and any calculations and work papers related to such | ||||||
17 | determination. | ||||||
18 | (3) Upon receipt of a filing pursuant to Section 21-145 | ||||||
19 | of this Article, the Commission shall promptly commence an | ||||||
20 | investigation pursuant to Article X of this Act to | ||||||
21 | determine whether it is in the public interest for the | ||||||
22 | clean coal project to be constructed given the | ||||||
23 | determination that the core plant construction cost quote | ||||||
24 | is in excess of the inflation-adjusted core plant | ||||||
25 | construction cost ceiling. The Commission shall make such | ||||||
26 | public interest determination after hearing evidence |
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1 | limited to the issue of whether the purposes of the Clean | ||||||
2 | Coal Development Program, as set forth in Section 21-105 of | ||||||
3 | this Article, shall be frustrated by the fact that the core | ||||||
4 | plant construction cost quote for the applicable clean coal | ||||||
5 | project is in excess of the inflation-adjusted core plant | ||||||
6 | construction cost ceiling. Any proceeding initiated by the | ||||||
7 | Commission pursuant to this Section may not exceed 120 days | ||||||
8 | in length. | ||||||
9 | (4) If, and only if, the Commission determines that the | ||||||
10 | purposes of the Clean Coal Development Program will be | ||||||
11 | frustrated by the fact that the core plant construction | ||||||
12 | cost quote for a given clean coal project is in excess of | ||||||
13 | the inflation-adjusted core plant construction cost | ||||||
14 | ceiling, then each participating electric utility that | ||||||
15 | executed a service agreement with such clean coal project | ||||||
16 | shall enforce its right to terminate such service agreement | ||||||
17 | and reimburse the clean coal project as a termination fee | ||||||
18 | the amounts paid by the clean coal project to unrelated | ||||||
19 | third parties to obtain the core plant construction cost | ||||||
20 | quote. In the event that more than one participating | ||||||
21 | electric utility has executed a service agreement with such | ||||||
22 | clean coal project, then the termination fee applicable to | ||||||
23 | each service agreement shall be allocated in proportion to | ||||||
24 | the amount of capacity contracted for relative to the total | ||||||
25 | capacity contracted for pursuant to all service agreements | ||||||
26 | applicable to such clean coal project. The aggregate of |
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| |||||||
1 | termination fees paid by participating electric utilities | ||||||
2 | to a clean coal project pursuant to this Section shall not | ||||||
3 | exceed $8,000,000.
| ||||||
4 | (5) If a participating electric utility terminates a | ||||||
5 | service agreement as contemplated in Section 21-145 of this | ||||||
6 | Article, the participating electric utility shall treat | ||||||
7 | the termination fee paid to the clean coal project as an | ||||||
8 | accrued CCDP expense and recover such termination fee | ||||||
9 | pursuant to the tariff rider set forth in Section 21-130 of | ||||||
10 | this Article.
| ||||||
11 | (220 ILCS 5/21-150 new)
| ||||||
12 | Sec. 21-150. Participation by a FutureGen demonstration | ||||||
13 | project. A FutureGen demonstration project may elect to be | ||||||
14 | deemed a clean coal project and participate in the Clean Coal | ||||||
15 | Development Program as set forth in this Article and as | ||||||
16 | modified by this Section. A FutureGen demonstration project | ||||||
17 | shall be deemed to have made such election on the date that the | ||||||
18 | FutureGen demonstration project files its wholesale sales | ||||||
19 | tariff at FERC pursuant to Section 205 of the Federal Power | ||||||
20 | Act. | ||||||
21 | No participating electric utility shall enter into a | ||||||
22 | service agreement with a FutureGen demonstration project if the | ||||||
23 | amount of capacity to be purchased under such service | ||||||
24 | agreement, together with the aggregate amount of all capacity | ||||||
25 | purchased under other service agreements executed previously |
| |||||||
| |||||||
1 | or contemporaneously by the participating electric utility | ||||||
2 | with any FutureGen demonstration project, exceeds 1% of the | ||||||
3 | participating electric utility's coincident peak delivery | ||||||
4 | services load, expressed in kilowatts, for the calendar year | ||||||
5 | immediately preceding the effective date of this Article. | ||||||
6 | Subsections 21-120(1) (other than Subsection 21-120(1)(D)) | ||||||
7 | and 21-120(2) shall not apply to the wholesale sales tariff of | ||||||
8 | a FutureGen demonstration project that elects to be deemed a | ||||||
9 | clean coal project. Subsection 21-120(1)(D) and Section 145 | ||||||
10 | shall apply to a FutureGen demonstration project. With respect | ||||||
11 | to a FutureGen demonstration project that elects to be deemed a | ||||||
12 | clean coal project, it is the intent of the General Assembly | ||||||
13 | that the wholesale sales tariff of a FutureGen demonstration | ||||||
14 | project recognize that (i) the FutureGen demonstration project | ||||||
15 | may be operated based on objectives different from a baseload | ||||||
16 | generating plant, and (ii) a FutureGen demonstration project is | ||||||
17 | likely to be funded by government appropriations and | ||||||
18 | contributions from non-profit organizations for which | ||||||
19 | traditional ratemaking concepts such as return on invested | ||||||
20 | capital are not appropriate.
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21 | Section 99. Effective date. This Act takes effect upon | ||||||
22 | becoming law.".
|