103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3854

 

Introduced 2/17/2023, by Rep. Marcus C. Evans, Jr.

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3855/1-5
220 ILCS 5/16-111.5
220 ILCS 5/16-115A

    Amends the Public Utilities Act. Provides that the analysis of the impact of any demand side and renewable energy initiatives including the proposed mix and selection of standard wholesale products for which contracts will be executed during the next year to meet that portion of its load requirements not met through preexisting contracts shall not preclude consideration of long-term contracts of up to and including 20 years for clean energy with an appropriate portion of the portfolio to be allocated to such long-term contracts. Provides the analysis shall further include for products procured for delivery years beginning after May 31, 2025, consideration of whether products offered into the procurement process are clean energy and give a preference to clean energy where such product or products can be procured at or below the price of nonclean energy after taking account of the social cost of carbon as set forth in provisions concerning the zero emission standard. Provides that for all eligible retail customers served by an alternative retail electric supplier, or electric utility other than the electric utility in whose service area a customer is located, such supplier or utility shall purchase products that include the same percentage of clean energy as was procured for the utility in whose service area such customers are located for the immediately prior delivery year. Makes a corresponding change to the Illinois Power Agency Act.


LRB103 30369 AMQ 56799 b

 

 

A BILL FOR

 

HB3854LRB103 30369 AMQ 56799 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Power Agency Act is amended by
5changing Section 1-5 as follows:
 
6    (20 ILCS 3855/1-5)
7    Sec. 1-5. Legislative declarations and findings. The
8General Assembly finds and declares:
9        (1) The health, welfare, and prosperity of all
10    Illinois residents require the provision of adequate,
11    reliable, affordable, efficient, and environmentally
12    sustainable electric service at the lowest total cost over
13    time, taking into account any benefits of price stability.
14        (1.5) To provide the highest quality of life for the
15    residents of Illinois and to provide for a clean and
16    healthy environment, it is the policy of this State to
17    rapidly transition to 100% clean energy by 2050.
18        (2) (Blank).
19        (3) (Blank).
20        (4) It is necessary to improve the process of
21    procuring electricity to serve Illinois residents, to
22    promote investment in energy efficiency and
23    demand-response measures, and to maintain and support

 

 

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1    development of clean coal technologies, generation
2    resources that operate at all hours of the day and under
3    all weather conditions, zero emission facilities, and
4    renewable resources.
5        (5) Procuring a diverse electricity supply portfolio
6    will ensure the lowest total cost over time for adequate,
7    reliable, efficient, and environmentally sustainable
8    electric service.
9        (6) Including renewable resources and zero emission
10    credits from zero emission facilities in that portfolio
11    will reduce long-term direct and indirect costs to
12    consumers by decreasing environmental impacts and by
13    avoiding or delaying the need for new generation,
14    transmission, and distribution infrastructure. Developing
15    new renewable energy resources in Illinois, including
16    brownfield solar projects and community solar projects,
17    will help to diversify Illinois electricity supply, avoid
18    and reduce pollution, reduce peak demand, and enhance
19    public health and well-being of Illinois residents.
20        (7) Developing community solar projects in Illinois
21    will help to expand access to renewable energy resources
22    to more Illinois residents.
23        (8) Developing brownfield solar projects in Illinois
24    will help return blighted or contaminated land to
25    productive use while enhancing public health and the
26    well-being of Illinois residents, including those in

 

 

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1    environmental justice communities.
2        (9) Energy efficiency, demand-response measures, zero
3    emission energy, and renewable energy are resources
4    currently underused in Illinois. These resources should be
5    used, when cost effective, to reduce costs to consumers,
6    improve reliability, and improve environmental quality and
7    public health.
8        (10) The State should encourage the use of advanced
9    clean coal technologies that capture and sequester carbon
10    dioxide emissions to advance environmental protection
11    goals and to demonstrate the viability of coal and
12    coal-derived fuels in a carbon-constrained economy.
13        (10.5) The State should encourage the development of
14    interregional high voltage direct current (HVDC)
15    transmission lines that benefit Illinois. All ratepayers
16    in the State served by the regional transmission
17    organization where the HVDC converter station is
18    interconnected benefit from the long-term price stability
19    and market access provided by interregional HVDC
20    transmission facilities. The benefits to Illinois include:
21    reduction in wholesale power prices; access to lower-cost
22    markets; enabling the integration of additional renewable
23    generating units within the State through near
24    instantaneous dispatchability and the provision of
25    ancillary services; creating good-paying union jobs in
26    Illinois; and, enhancing grid reliability and climate

 

 

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1    resilience via HVDC facilities that are installed
2    underground.
3        (10.6) The health, welfare, and safety of the people
4    of the State are advanced by developing new HVDC
5    transmission lines predominantly along transportation
6    rights-of-way, with an HVDC converter station that is
7    located in the service territory of a public utility as
8    defined in Section 3-105 of the Public Utilities Act
9    serving more than 3,000,000 retail customers, and with a
10    project labor agreement as defined in Section 1-10 of this
11    Act.
12        (11) The General Assembly enacted Public Act 96-0795
13    to reform the State's purchasing processes, recognizing
14    that government procurement is susceptible to abuse if
15    structural and procedural safeguards are not in place to
16    ensure independence, insulation, oversight, and
17    transparency.
18        (12) The principles that underlie the procurement
19    reform legislation apply also in the context of power
20    purchasing.
21        (13) To ensure that the benefits of installing
22    renewable resources are available to all Illinois
23    residents and located across the State, subject to
24    appropriation, it is necessary for the Agency to provide
25    public information and educational resources on how
26    residents can benefit from the expansion of renewable

 

 

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1    energy in Illinois and participate in the Illinois Solar
2    for All Program established in Section 1-56, the
3    Adjustable Block program established in Section 1-75, the
4    job training programs established by paragraph (1) of
5    subsection (a) of Section 16-108.12 of the Public
6    Utilities Act, and the programs and resources established
7    by the Energy Transition Act.
8        (14) To ensure the State's clean energy goals are
9    timely met and that reliable clean energy is produced and
10    available when customers need it, the Agency should begin
11    to procure clean power and encourage storage, including
12    through long-term contracts. An appropriate means of
13    comparing the price of clean and non-clean products is to
14    adjust for the social cost of carbon. Where the comparison
15    shows that clean products can be procured at or below the
16    cost of non-clean products, the clean products should be
17    procured. This requirement will limit the State's
18    dependence on fossil generation and reduce the potential
19    need to import dirty power.
20    The General Assembly therefore finds that it is necessary
21to create the Illinois Power Agency and that the goals and
22objectives of that Agency are to accomplish each of the
23following:
24        (A) Develop electricity procurement plans to ensure
25    adequate, reliable, affordable, efficient, and
26    environmentally sustainable electric service at the lowest

 

 

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1    total cost over time, taking into account any benefits of
2    price stability, for electric utilities that on December
3    31, 2005 provided electric service to at least 100,000
4    customers in Illinois and for small multi-jurisdictional
5    electric utilities that (i) on December 31, 2005 served
6    less than 100,000 customers in Illinois and (ii) request a
7    procurement plan for their Illinois jurisdictional load.
8    The procurement plan shall be updated on an annual basis
9    and shall include renewable energy resources and,
10    beginning with the delivery year commencing June 1, 2017,
11    zero emission credits from zero emission facilities
12    sufficient to achieve the standards specified in this Act.
13        (B) Conduct the competitive procurement processes
14    identified in this Act.
15        (C) Develop electric generation and co-generation
16    facilities that use indigenous coal or renewable
17    resources, or both, financed with bonds issued by the
18    Illinois Finance Authority.
19        (D) Supply electricity from the Agency's facilities at
20    cost to one or more of the following: municipal electric
21    systems, governmental aggregators, or rural electric
22    cooperatives in Illinois.
23        (E) Ensure that the process of power procurement is
24    conducted in an ethical and transparent fashion, immune
25    from improper influence.
26        (F) Continue to review its policies and practices to

 

 

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1    determine how best to meet its mission of providing the
2    lowest cost power to the greatest number of people, at any
3    given point in time, in accordance with applicable law.
4        (G) Operate in a structurally insulated, independent,
5    and transparent fashion so that nothing impedes the
6    Agency's mission to secure power at the best prices the
7    market will bear, provided that the Agency meets all
8    applicable legal requirements.
9        (H) Implement renewable energy procurement and
10    training programs throughout the State to diversify
11    Illinois electricity supply, improve reliability, avoid
12    and reduce pollution, reduce peak demand, and enhance
13    public health and well-being of Illinois residents,
14    including low-income residents.
15(Source: P.A. 102-662, eff. 9-15-21.)
 
16    Section 10. The Public Utilities Act is amended by
17changing Sections 16-111.5 and 16-115A as follows:
 
18    (220 ILCS 5/16-111.5)
19    Sec. 16-111.5. Provisions relating to procurement.
20    (a) An electric utility that on December 31, 2005 served
21at least 100,000 customers in Illinois shall procure power and
22energy for its eligible retail customers in accordance with
23the applicable provisions set forth in Section 1-75 of the
24Illinois Power Agency Act and this Section. Beginning with the

 

 

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1delivery year commencing on June 1, 2017, such electric
2utility shall also procure zero emission credits from zero
3emission facilities in accordance with the applicable
4provisions set forth in Section 1-75 of the Illinois Power
5Agency Act, and, for years beginning on or after June 1, 2017,
6the utility shall procure renewable energy resources in
7accordance with the applicable provisions set forth in Section
81-75 of the Illinois Power Agency Act and this Section.
9Beginning with the delivery year commencing on June 1, 2022,
10an electric utility serving over 3,000,000 customers shall
11also procure carbon mitigation credits from carbon-free energy
12resources in accordance with the applicable provisions set
13forth in Section 1-75 of the Illinois Power Agency Act and this
14Section. A small multi-jurisdictional electric utility that on
15December 31, 2005 served less than 100,000 customers in
16Illinois may elect to procure power and energy for all or a
17portion of its eligible Illinois retail customers in
18accordance with the applicable provisions set forth in this
19Section and Section 1-75 of the Illinois Power Agency Act.
20This Section shall not apply to a small multi-jurisdictional
21utility until such time as a small multi-jurisdictional
22utility requests the Illinois Power Agency to prepare a
23procurement plan for its eligible retail customers. "Eligible
24retail customers" for the purposes of this Section means those
25retail customers that purchase power and energy from the
26electric utility under fixed-price bundled service tariffs,

 

 

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1other than those retail customers whose service is declared or
2deemed competitive under Section 16-113 and those other
3customer groups specified in this Section, including
4self-generating customers, customers electing hourly pricing,
5or those customers who are otherwise ineligible for
6fixed-price bundled tariff service. For those customers that
7are excluded from the procurement plan's electric supply
8service requirements, and the utility shall procure any supply
9requirements, including capacity, ancillary services, and
10hourly priced energy, in the applicable markets as needed to
11serve those customers, provided that the utility may include
12in its procurement plan load requirements for the load that is
13associated with those retail customers whose service has been
14declared or deemed competitive pursuant to Section 16-113 of
15this Act to the extent that those customers are purchasing
16power and energy during one of the transition periods
17identified in subsection (b) of Section 16-113 of this Act.
18    (b) A procurement plan shall be prepared for each electric
19utility consistent with the applicable requirements of the
20Illinois Power Agency Act and this Section. For purposes of
21this Section, Illinois electric utilities that are affiliated
22by virtue of a common parent company are considered to be a
23single electric utility. Small multi-jurisdictional utilities
24may request a procurement plan for a portion of or all of its
25Illinois load. Each procurement plan shall analyze the
26projected balance of supply and demand for those retail

 

 

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1customers to be included in the plan's electric supply service
2requirements over a 5-year period, with the first planning
3year beginning on June 1 of the year following the year in
4which the plan is filed. The plan shall specifically identify
5the wholesale products to be procured following plan approval,
6and shall follow all the requirements set forth in the Public
7Utilities Act and all applicable State and federal laws,
8statutes, rules, or regulations, as well as Commission orders.
9Nothing in this Section precludes consideration of contracts
10longer than 5 years and related forecast data. Unless
11specified otherwise in this Section, in the procurement plan
12or in the implementing tariff, any procurement occurring in
13accordance with this plan shall be competitively bid through a
14request for proposals process. Approval and implementation of
15the procurement plan shall be subject to review and approval
16by the Commission according to the provisions set forth in
17this Section. A procurement plan shall include each of the
18following components:
19        (1) Hourly load analysis. This analysis shall include:
20            (i) multi-year historical analysis of hourly
21        loads;
22            (ii) switching trends and competitive retail
23        market analysis;
24            (iii) known or projected changes to future loads;
25        and
26            (iv) growth forecasts by customer class.

 

 

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1        (2) Analysis of the impact of any demand side and
2    renewable energy initiatives. This analysis shall include:
3            (i) the impact of demand response programs and
4        energy efficiency programs, both current and
5        projected; for small multi-jurisdictional utilities,
6        the impact of demand response and energy efficiency
7        programs approved pursuant to Section 8-408 of this
8        Act, both current and projected; and
9            (ii) supply side needs that are projected to be
10        offset by purchases of renewable energy resources, if
11        any.
12        (3) A plan for meeting the expected load requirements
13    that will not be met through preexisting contracts. This
14    plan shall include:
15            (i) definitions of the different Illinois retail
16        customer classes for which supply is being purchased;
17            (ii) the proposed mix of demand-response products
18        for which contracts will be executed during the next
19        year. For small multi-jurisdictional electric
20        utilities that on December 31, 2005 served fewer than
21        100,000 customers in Illinois, these shall be defined
22        as demand-response products offered in an energy
23        efficiency plan approved pursuant to Section 8-408 of
24        this Act. The cost-effective demand-response measures
25        shall be procured whenever the cost is lower than
26        procuring comparable capacity products, provided that

 

 

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1        such products shall:
2                (A) be procured by a demand-response provider
3            from those retail customers included in the plan's
4            electric supply service requirements;
5                (B) at least satisfy the demand-response
6            requirements of the regional transmission
7            organization market in which the utility's service
8            territory is located, including, but not limited
9            to, any applicable capacity or dispatch
10            requirements;
11                (C) provide for customers' participation in
12            the stream of benefits produced by the
13            demand-response products;
14                (D) provide for reimbursement by the
15            demand-response provider of the utility for any
16            costs incurred as a result of the failure of the
17            supplier of such products to perform its
18            obligations thereunder; and
19                (E) meet the same credit requirements as apply
20            to suppliers of capacity, in the applicable
21            regional transmission organization market;
22            (iii) monthly forecasted system supply
23        requirements, including expected minimum, maximum, and
24        average values for the planning period;
25            (iv) the proposed mix and selection of standard
26        wholesale products for which contracts will be

 

 

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1        executed during the next year, separately or in
2        combination, to meet that portion of its load
3        requirements not met through pre-existing contracts,
4        including but not limited to monthly 5 x 16 peak period
5        block energy, monthly off-peak wrap energy, monthly 7
6        x 24 energy, annual 5 x 16 energy, other standardized
7        energy or capacity products designed to provide
8        eligible retail customer benefits from commercially
9        deployed advanced technologies including but not
10        limited to high voltage direct current converter
11        stations, as such term is defined in Section 1-10 of
12        the Illinois Power Agency Act, whether or not such
13        product is currently available in wholesale markets,
14        annual off-peak wrap energy, annual 7 x 24 energy,
15        monthly capacity, annual capacity, peak load capacity
16        obligations, capacity purchase plan, and ancillary
17        services; however, nothing in this item (iv) precludes
18        consideration of long-term contracts with a length up
19        to and including 20 years for clean energy, as defined
20        in Section 1-10 of the Illinois Power Agency Act, with
21        an appropriate portion of the portfolio to be
22        allocated to such long-term contracts;
23            (v) proposed term structures for each wholesale
24        product type included in the proposed procurement plan
25        portfolio of products; and
26            (vi) an assessment of the price risk, load

 

 

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1        uncertainty, and other factors that are associated
2        with the proposed procurement plan; this assessment,
3        to the extent possible, shall include an analysis of
4        the following factors: contract terms, time frames for
5        securing products or services, fuel costs, weather
6        patterns, transmission costs, market conditions, and
7        the governmental regulatory environment; the proposed
8        procurement plan shall also identify alternatives for
9        those portfolio measures that are identified as having
10        significant price risk and mitigation in the form of
11        additional retail customer and ratepayer price,
12        reliability, and environmental benefits from
13        standardized energy products delivered from
14        commercially deployed advanced technologies,
15        including, but not limited to, high voltage direct
16        current converter stations, as such term is defined in
17        Section 1-10 of the Illinois Power Agency Act, whether
18        or not such product is currently available in
19        wholesale markets; and .
20            (v) for products procured for delivery years
21        beginning after May 31, 2025, consideration of whether
22        products offered into the procurement process are
23        clean energy, as defined in Section 1-10 of the
24        Illinois Power Agency Act, and give a preference to
25        clean energy where such product or products can be
26        procured at or below the price of nonclean energy

 

 

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1        after taking account of the social cost of carbon as
2        set forth in subparagraph (B) of paragraph (1) of
3        subsection (d-5) of Section 1-75 of the Illinois Power
4        Agency Act. Each product procured shall include all
5        environmental attributes, including, but not limited
6        to, renewable energy credits, zero emission credits,
7        and carbon mitigation credits, all as defined in
8        Section 1-10 of the Illinois Power Agency Act, and all
9        credits, characteristics, benefits, emissions
10        reductions, offsets, and allowances, howsoever
11        entitled, attributable to the generation of the
12        product procured or its displacement of generation.
13        (4) Proposed procedures for balancing loads. The
14    procurement plan shall include, for load requirements
15    included in the procurement plan, the process for (i)
16    hourly balancing of supply and demand and (ii) the
17    criteria for portfolio re-balancing in the event of
18    significant shifts in load.
19        (5) Long-Term Renewable Resources Procurement Plan.
20    The Agency shall prepare a long-term renewable resources
21    procurement plan for the procurement of renewable energy
22    credits under Sections 1-56 and 1-75 of the Illinois Power
23    Agency Act for delivery beginning in the 2017 delivery
24    year.
25            (i) The initial long-term renewable resources
26        procurement plan and all subsequent revisions shall be

 

 

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1        subject to review and approval by the Commission. For
2        the purposes of this Section, "delivery year" has the
3        same meaning as in Section 1-10 of the Illinois Power
4        Agency Act. For purposes of this Section, "Agency"
5        shall mean the Illinois Power Agency.
6            (ii) The long-term renewable resources planning
7        process shall be conducted as follows:
8                (A) Electric utilities shall provide a range
9            of load forecasts to the Illinois Power Agency
10            within 45 days of the Agency's request for
11            forecasts, which request shall specify the length
12            and conditions for the forecasts including, but
13            not limited to, the quantity of distributed
14            generation expected to be interconnected for each
15            year.
16                (B) The Agency shall publish for comment the
17            initial long-term renewable resources procurement
18            plan no later than 120 days after the effective
19            date of this amendatory Act of the 99th General
20            Assembly and shall review, and may revise, the
21            plan at least every 2 years thereafter. To the
22            extent practicable, the Agency shall review and
23            propose any revisions to the long-term renewable
24            energy resources procurement plan in conjunction
25            with the Agency's other planning and approval
26            processes conducted under this Section. The

 

 

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1            initial long-term renewable resources procurement
2            plan shall:
3                    (aa) Identify the procurement programs and
4                competitive procurement events consistent with
5                the applicable requirements of the Illinois
6                Power Agency Act and shall be designed to
7                achieve the goals set forth in subsection (c)
8                of Section 1-75 of that Act.
9                    (bb) Include a schedule for procurements
10                for renewable energy credits from
11                utility-scale wind projects, utility-scale
12                solar projects, and brownfield site
13                photovoltaic projects consistent with
14                subparagraph (G) of paragraph (1) of
15                subsection (c) of Section 1-75 of the Illinois
16                Power Agency Act.
17                    (cc) Identify the process whereby the
18                Agency will submit to the Commission for
19                review and approval the proposed contracts to
20                implement the programs required by such plan.
21                Copies of the initial long-term renewable
22            resources procurement plan and all subsequent
23            revisions shall be posted and made publicly
24            available on the Agency's and Commission's
25            websites, and copies shall also be provided to
26            each affected electric utility. An affected

 

 

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1            utility and other interested parties shall have 45
2            days following the date of posting to provide
3            comment to the Agency on the initial long-term
4            renewable resources procurement plan and all
5            subsequent revisions. All comments submitted to
6            the Agency shall be specific, supported by data or
7            other detailed analyses, and, if objecting to all
8            or a portion of the procurement plan, accompanied
9            by specific alternative wording or proposals. All
10            comments shall be posted on the Agency's and
11            Commission's websites. During this 45-day comment
12            period, the Agency shall hold at least one public
13            hearing within each utility's service area that is
14            subject to the requirements of this paragraph (5)
15            for the purpose of receiving public comment.
16            Within 21 days following the end of the 45-day
17            review period, the Agency may revise the long-term
18            renewable resources procurement plan based on the
19            comments received and shall file the plan with the
20            Commission for review and approval.
21                (C) Within 14 days after the filing of the
22            initial long-term renewable resources procurement
23            plan or any subsequent revisions, any person
24            objecting to the plan may file an objection with
25            the Commission. Within 21 days after the filing of
26            the plan, the Commission shall determine whether a

 

 

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1            hearing is necessary. The Commission shall enter
2            its order confirming or modifying the initial
3            long-term renewable resources procurement plan or
4            any subsequent revisions within 120 days after the
5            filing of the plan by the Illinois Power Agency.
6                (D) The Commission shall approve the initial
7            long-term renewable resources procurement plan and
8            any subsequent revisions, including expressly the
9            forecast used in the plan and taking into account
10            that funding will be limited to the amount of
11            revenues actually collected by the utilities, if
12            the Commission determines that the plan will
13            reasonably and prudently accomplish the
14            requirements of Section 1-56 and subsection (c) of
15            Section 1-75 of the Illinois Power Agency Act. The
16            Commission shall also approve the process for the
17            submission, review, and approval of the proposed
18            contracts to procure renewable energy credits or
19            implement the programs authorized by the
20            Commission pursuant to a long-term renewable
21            resources procurement plan approved under this
22            Section.
23                In approving any long-term renewable resources
24            procurement plan after the effective date of this
25            amendatory Act of the 102nd General Assembly, the
26            Commission shall approve or modify the Agency's

 

 

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1            proposal for minimum equity standards pursuant to
2            subsection (c-10) of Section 1-75 of the Illinois
3            Power Agency Act. The Commission shall consider
4            any analysis performed by the Agency in developing
5            its proposal, including past performance,
6            availability of equity eligible contractors, and
7            availability of equity eligible persons at the
8            time the long-term renewable resources procurement
9            plan is approved.
10            (iii) The Agency or third parties contracted by
11        the Agency shall implement all programs authorized by
12        the Commission in an approved long-term renewable
13        resources procurement plan without further review and
14        approval by the Commission. Third parties shall not
15        begin implementing any programs or receive any payment
16        under this Section until the Commission has approved
17        the contract or contracts under the process authorized
18        by the Commission in item (D) of subparagraph (ii) of
19        paragraph (5) of this subsection (b) and the third
20        party and the Agency or utility, as applicable, have
21        executed the contract. For those renewable energy
22        credits subject to procurement through a competitive
23        bid process under the plan or under the initial
24        forward procurements for wind and solar resources
25        described in subparagraph (G) of paragraph (1) of
26        subsection (c) of Section 1-75 of the Illinois Power

 

 

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1        Agency Act, the Agency shall follow the procurement
2        process specified in the provisions relating to
3        electricity procurement in subsections (e) through (i)
4        of this Section.
5            (iv) An electric utility shall recover its costs
6        associated with the procurement of renewable energy
7        credits under this Section and pursuant to subsection
8        (c-5) of Section 1-75 of the Illinois Power Agency Act
9        through an automatic adjustment clause tariff under
10        subsection (k) or a tariff pursuant to subsection
11        (i-5), as applicable, of Section 16-108 of this Act. A
12        utility shall not be required to advance any payment
13        or pay any amounts under this Section that exceed the
14        actual amount of revenues collected by the utility
15        under paragraph (6) of subsection (c) of Section 1-75
16        of the Illinois Power Agency Act, subsection (c-5) of
17        Section 1-75 of the Illinois Power Agency Act, and
18        subsection (k) or subsection (i-5), as applicable, of
19        Section 16-108 of this Act, and contracts executed
20        under this Section shall expressly incorporate this
21        limitation.
22            (v) For the public interest, safety, and welfare,
23        the Agency and the Commission may adopt rules to carry
24        out the provisions of this Section on an emergency
25        basis immediately following the effective date of this
26        amendatory Act of the 99th General Assembly.

 

 

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1            (vi) On or before July 1 of each year, the
2        Commission shall hold an informal hearing for the
3        purpose of receiving comments on the prior year's
4        procurement process and any recommendations for
5        change.
6    (b-5) An electric utility that as of January 1, 2019
7served more than 300,000 retail customers in this State shall
8purchase renewable energy credits from new renewable energy
9facilities constructed at or adjacent to the sites of
10coal-fueled electric generating facilities in this State in
11accordance with subsection (c-5) of Section 1-75 of the
12Illinois Power Agency Act. Except as expressly provided in
13this Section, the plans and procedures for such procurements
14shall not be included in the procurement plans provided for in
15this Section, but rather shall be conducted and implemented
16solely in accordance with subsection (c-5) of Section 1-75 of
17the Illinois Power Agency Act.
18    (c) The provisions of this subsection (c) shall not apply
19to procurements conducted pursuant to subsection (c-5) of
20Section 1-75 of the Illinois Power Agency Act. However, the
21Agency may retain a procurement administrator to assist the
22Agency in planning and carrying out the procurement events and
23implementing the other requirements specified in such
24subsection (c-5) of Section 1-75 of the Illinois Power Agency
25Act, with the costs incurred by the Agency for the procurement
26administrator to be recovered through fees charged to

 

 

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1applicants for selection to sell and deliver renewable energy
2credits to electric utilities pursuant to subsection (c-5) of
3Section 1-75 of the Illinois Power Agency Act. The procurement
4process set forth in Section 1-75 of the Illinois Power Agency
5Act and subsection (e) of this Section shall be administered
6by a procurement administrator and monitored by a procurement
7monitor.
8        (1) The procurement administrator shall:
9            (i) design the final procurement process in
10        accordance with Section 1-75 of the Illinois Power
11        Agency Act and subsection (e) of this Section
12        following Commission approval of the procurement plan;
13            (ii) develop benchmarks in accordance with
14        subsection (e)(3) to be used to evaluate bids; these
15        benchmarks shall be submitted to the Commission for
16        review and approval on a confidential basis prior to
17        the procurement event;
18            (iii) serve as the interface between the electric
19        utility and suppliers;
20            (iv) manage the bidder pre-qualification and
21        registration process;
22            (v) obtain the electric utilities' agreement to
23        the final form of all supply contracts and credit
24        collateral agreements;
25            (vi) administer the request for proposals process;
26            (vii) have the discretion to negotiate to

 

 

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1        determine whether bidders are willing to lower the
2        price of bids that meet the benchmarks approved by the
3        Commission; any post-bid negotiations with bidders
4        shall be limited to price only and shall be completed
5        within 24 hours after opening the sealed bids and
6        shall be conducted in a fair and unbiased manner; in
7        conducting the negotiations, there shall be no
8        disclosure of any information derived from proposals
9        submitted by competing bidders; if information is
10        disclosed to any bidder, it shall be provided to all
11        competing bidders;
12            (viii) maintain confidentiality of supplier and
13        bidding information in a manner consistent with all
14        applicable laws, rules, regulations, and tariffs;
15            (ix) submit a confidential report to the
16        Commission recommending acceptance or rejection of
17        bids;
18            (x) notify the utility of contract counterparties
19        and contract specifics; and
20            (xi) administer related contingency procurement
21        events.
22        (2) The procurement monitor, who shall be retained by
23    the Commission, shall:
24            (i) monitor interactions among the procurement
25        administrator, suppliers, and utility;
26            (ii) monitor and report to the Commission on the

 

 

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1        progress of the procurement process;
2            (iii) provide an independent confidential report
3        to the Commission regarding the results of the
4        procurement event;
5            (iv) assess compliance with the procurement plans
6        approved by the Commission for each utility that on
7        December 31, 2005 provided electric service to at
8        least 100,000 customers in Illinois and for each small
9        multi-jurisdictional utility that on December 31, 2005
10        served less than 100,000 customers in Illinois;
11            (v) preserve the confidentiality of supplier and
12        bidding information in a manner consistent with all
13        applicable laws, rules, regulations, and tariffs;
14            (vi) provide expert advice to the Commission and
15        consult with the procurement administrator regarding
16        issues related to procurement process design, rules,
17        protocols, and policy-related matters; and
18            (vii) consult with the procurement administrator
19        regarding the development and use of benchmark
20        criteria, standard form contracts, credit policies,
21        and bid documents.
22    (d) Except as provided in subsection (j), the planning
23process shall be conducted as follows:
24        (1) Beginning in 2008, each Illinois utility procuring
25    power pursuant to this Section shall annually provide a
26    range of load forecasts to the Illinois Power Agency by

 

 

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1    July 15 of each year, or such other date as may be required
2    by the Commission or Agency. The load forecasts shall
3    cover the 5-year procurement planning period for the next
4    procurement plan and shall include hourly data
5    representing a high-load, low-load, and expected-load
6    scenario for the load of those retail customers included
7    in the plan's electric supply service requirements. The
8    utility shall provide supporting data and assumptions for
9    each of the scenarios.
10        (2) Beginning in 2008, the Illinois Power Agency shall
11    prepare a procurement plan by August 15th of each year, or
12    such other date as may be required by the Commission. The
13    procurement plan shall identify the portfolio of
14    demand-response and power and energy products to be
15    procured. Cost-effective demand-response measures shall be
16    procured as set forth in item (iii) of subsection (b) of
17    this Section. Copies of the procurement plan shall be
18    posted and made publicly available on the Agency's and
19    Commission's websites, and copies shall also be provided
20    to each affected electric utility. An affected utility
21    shall have 30 days following the date of posting to
22    provide comment to the Agency on the procurement plan.
23    Other interested entities also may comment on the
24    procurement plan. All comments submitted to the Agency
25    shall be specific, supported by data or other detailed
26    analyses, and, if objecting to all or a portion of the

 

 

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1    procurement plan, accompanied by specific alternative
2    wording or proposals. All comments shall be posted on the
3    Agency's and Commission's websites. During this 30-day
4    comment period, the Agency shall hold at least one public
5    hearing within each utility's service area for the purpose
6    of receiving public comment on the procurement plan.
7    Within 14 days following the end of the 30-day review
8    period, the Agency shall revise the procurement plan as
9    necessary based on the comments received and file the
10    procurement plan with the Commission and post the
11    procurement plan on the websites.
12        (3) Within 5 days after the filing of the procurement
13    plan, any person objecting to the procurement plan shall
14    file an objection with the Commission. Within 10 days
15    after the filing, the Commission shall determine whether a
16    hearing is necessary. The Commission shall enter its order
17    confirming or modifying the procurement plan within 90
18    days after the filing of the procurement plan by the
19    Illinois Power Agency.
20        (4) The Commission shall approve the procurement plan,
21    including expressly the forecast used in the procurement
22    plan, if the Commission determines that it will ensure
23    adequate, reliable, affordable, efficient, and
24    environmentally sustainable electric service at the lowest
25    total cost over time, taking into account any benefits of
26    price stability.

 

 

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1        (4.5) The Commission shall review the Agency's
2    recommendations for the selection of applicants to enter
3    into long-term contracts for the sale and delivery of
4    renewable energy credits from new renewable energy
5    facilities to be constructed at or adjacent to the sites
6    of coal-fueled electric generating facilities in this
7    State in accordance with the provisions of subsection
8    (c-5) of Section 1-75 of the Illinois Power Agency Act,
9    and shall approve the Agency's recommendations if the
10    Commission determines that the applicants recommended by
11    the Agency for selection, the proposed new renewable
12    energy facilities to be constructed, the amounts of
13    renewable energy credits to be delivered pursuant to the
14    contracts, and the other terms of the contracts, are
15    consistent with the requirements of subsection (c-5) of
16    Section 1-75 of the Illinois Power Agency Act.
17    (e) The procurement process shall include each of the
18following components:
19        (1) Solicitation, pre-qualification, and registration
20    of bidders. The procurement administrator shall
21    disseminate information to potential bidders to promote a
22    procurement event, notify potential bidders that the
23    procurement administrator may enter into a post-bid price
24    negotiation with bidders that meet the applicable
25    benchmarks, provide supply requirements, and otherwise
26    explain the competitive procurement process. In addition

 

 

HB3854- 29 -LRB103 30369 AMQ 56799 b

1    to such other publication as the procurement administrator
2    determines is appropriate, this information shall be
3    posted on the Illinois Power Agency's and the Commission's
4    websites. The procurement administrator shall also
5    administer the prequalification process, including
6    evaluation of credit worthiness, compliance with
7    procurement rules, and agreement to the standard form
8    contract developed pursuant to paragraph (2) of this
9    subsection (e). The procurement administrator shall then
10    identify and register bidders to participate in the
11    procurement event.
12        (2) Standard contract forms and credit terms and
13    instruments. The procurement administrator, in
14    consultation with the utilities, the Commission, and other
15    interested parties and subject to Commission oversight,
16    shall develop and provide standard contract forms for the
17    supplier contracts that meet generally accepted industry
18    practices. Standard credit terms and instruments that meet
19    generally accepted industry practices shall be similarly
20    developed. The procurement administrator shall make
21    available to the Commission all written comments it
22    receives on the contract forms, credit terms, or
23    instruments. If the procurement administrator cannot reach
24    agreement with the applicable electric utility as to the
25    contract terms and conditions, the procurement
26    administrator must notify the Commission of any disputed

 

 

HB3854- 30 -LRB103 30369 AMQ 56799 b

1    terms and the Commission shall resolve the dispute. The
2    terms of the contracts shall not be subject to negotiation
3    by winning bidders, and the bidders must agree to the
4    terms of the contract in advance so that winning bids are
5    selected solely on the basis of price.
6        (3) Establishment of a market-based price benchmark.
7    As part of the development of the procurement process, the
8    procurement administrator, in consultation with the
9    Commission staff, Agency staff, and the procurement
10    monitor, shall establish benchmarks for evaluating the
11    final prices in the contracts for each of the products
12    that will be procured through the procurement process. The
13    benchmarks shall be based on price data for similar
14    products for the same delivery period and same delivery
15    hub, or other delivery hubs after adjusting for that
16    difference. The price benchmarks may also be adjusted to
17    take into account differences between the information
18    reflected in the underlying data sources and the specific
19    products and procurement process being used to procure
20    power for the Illinois utilities. The benchmarks shall be
21    confidential but shall be provided to, and will be subject
22    to Commission review and approval, prior to a procurement
23    event.
24        (4) Request for proposals competitive procurement
25    process. The procurement administrator shall design and
26    issue a request for proposals to supply electricity in

 

 

HB3854- 31 -LRB103 30369 AMQ 56799 b

1    accordance with each utility's procurement plan, as
2    approved by the Commission. The request for proposals
3    shall set forth a procedure for sealed, binding commitment
4    bidding with pay-as-bid settlement, and provision for
5    selection of bids on the basis of price.
6        (5) A plan for implementing contingencies in the event
7    of supplier default or failure of the procurement process
8    to fully meet the expected load requirement due to
9    insufficient supplier participation, Commission rejection
10    of results, or any other cause.
11            (i) Event of supplier default: In the event of
12        supplier default, the utility shall review the
13        contract of the defaulting supplier to determine if
14        the amount of supply is 200 megawatts or greater, and
15        if there are more than 60 days remaining of the
16        contract term. If both of these conditions are met,
17        and the default results in termination of the
18        contract, the utility shall immediately notify the
19        Illinois Power Agency that a request for proposals
20        must be issued to procure replacement power, and the
21        procurement administrator shall run an additional
22        procurement event. If the contracted supply of the
23        defaulting supplier is less than 200 megawatts or
24        there are less than 60 days remaining of the contract
25        term, the utility shall procure power and energy from
26        the applicable regional transmission organization

 

 

HB3854- 32 -LRB103 30369 AMQ 56799 b

1        market, including ancillary services, capacity, and
2        day-ahead or real time energy, or both, for the
3        duration of the contract term to replace the
4        contracted supply; provided, however, that if a needed
5        product is not available through the regional
6        transmission organization market it shall be purchased
7        from the wholesale market.
8            (ii) Failure of the procurement process to fully
9        meet the expected load requirement: If the procurement
10        process fails to fully meet the expected load
11        requirement due to insufficient supplier participation
12        or due to a Commission rejection of the procurement
13        results, the procurement administrator, the
14        procurement monitor, and the Commission staff shall
15        meet within 10 days to analyze potential causes of low
16        supplier interest or causes for the Commission
17        decision. If changes are identified that would likely
18        result in increased supplier participation, or that
19        would address concerns causing the Commission to
20        reject the results of the prior procurement event, the
21        procurement administrator may implement those changes
22        and rerun the request for proposals process according
23        to a schedule determined by those parties and
24        consistent with Section 1-75 of the Illinois Power
25        Agency Act and this subsection. In any event, a new
26        request for proposals process shall be implemented by

 

 

HB3854- 33 -LRB103 30369 AMQ 56799 b

1        the procurement administrator within 90 days after the
2        determination that the procurement process has failed
3        to fully meet the expected load requirement.
4            (iii) In all cases where there is insufficient
5        supply provided under contracts awarded through the
6        procurement process to fully meet the electric
7        utility's load requirement, the utility shall meet the
8        load requirement by procuring power and energy from
9        the applicable regional transmission organization
10        market, including ancillary services, capacity, and
11        day-ahead or real time energy, or both; provided,
12        however, that if a needed product is not available
13        through the regional transmission organization market
14        it shall be purchased from the wholesale market.
15        (6) The procurement processes described in this
16    subsection and in subsection (c-5) of Section 1-75 of the
17    Illinois Power Agency Act are exempt from the requirements
18    of the Illinois Procurement Code, pursuant to Section
19    20-10 of that Code.
20    (f) Within 2 business days after opening the sealed bids,
21the procurement administrator shall submit a confidential
22report to the Commission. The report shall contain the results
23of the bidding for each of the products along with the
24procurement administrator's recommendation for the acceptance
25and rejection of bids based on the price benchmark criteria
26and other factors observed in the process. The procurement

 

 

HB3854- 34 -LRB103 30369 AMQ 56799 b

1monitor also shall submit a confidential report to the
2Commission within 2 business days after opening the sealed
3bids. The report shall contain the procurement monitor's
4assessment of bidder behavior in the process as well as an
5assessment of the procurement administrator's compliance with
6the procurement process and rules. The Commission shall review
7the confidential reports submitted by the procurement
8administrator and procurement monitor, and shall accept or
9reject the recommendations of the procurement administrator
10within 2 business days after receipt of the reports.
11    (g) Within 3 business days after the Commission decision
12approving the results of a procurement event, the utility
13shall enter into binding contractual arrangements with the
14winning suppliers using the standard form contracts; except
15that the utility shall not be required either directly or
16indirectly to execute the contracts if a tariff that is
17consistent with subsection (l) of this Section has not been
18approved and placed into effect for that utility.
19    (h) For the procurement of standard wholesale products,
20the names of the successful bidders and the load weighted
21average of the winning bid prices for each contract type and
22for each contract term shall be made available to the public at
23the time of Commission approval of a procurement event. For
24procurements conducted to meet the requirements of subsection
25(b) of Section 1-56 or subsection (c) of Section 1-75 of the
26Illinois Power Agency Act governed by the provisions of this

 

 

HB3854- 35 -LRB103 30369 AMQ 56799 b

1Section, the address and nameplate capacity of the new
2renewable energy generating facility proposed by a winning
3bidder shall also be made available to the public at the time
4of Commission approval of a procurement event, along with the
5business address and contact information for any winning
6bidder. An estimate or approximation of the nameplate capacity
7of the new renewable energy generating facility may be
8disclosed if necessary to protect the confidentiality of
9individual bid prices.
10    The Commission, the procurement monitor, the procurement
11administrator, the Illinois Power Agency, and all participants
12in the procurement process shall maintain the confidentiality
13of all other supplier and bidding information in a manner
14consistent with all applicable laws, rules, regulations, and
15tariffs. Confidential information, including the confidential
16reports submitted by the procurement administrator and
17procurement monitor pursuant to subsection (f) of this
18Section, shall not be made publicly available and shall not be
19discoverable by any party in any proceeding, absent a
20compelling demonstration of need, nor shall those reports be
21admissible in any proceeding other than one for law
22enforcement purposes.
23    (i) Within 2 business days after a Commission decision
24approving the results of a procurement event or such other
25date as may be required by the Commission from time to time,
26the utility shall file for informational purposes with the

 

 

HB3854- 36 -LRB103 30369 AMQ 56799 b

1Commission its actual or estimated retail supply charges, as
2applicable, by customer supply group reflecting the costs
3associated with the procurement and computed in accordance
4with the tariffs filed pursuant to subsection (l) of this
5Section and approved by the Commission.
6    (j) Within 60 days following August 28, 2007 (the
7effective date of Public Act 95-481), each electric utility
8that on December 31, 2005 provided electric service to at
9least 100,000 customers in Illinois shall prepare and file
10with the Commission an initial procurement plan, which shall
11conform in all material respects to the requirements of the
12procurement plan set forth in subsection (b); provided,
13however, that the Illinois Power Agency Act shall not apply to
14the initial procurement plan prepared pursuant to this
15subsection. The initial procurement plan shall identify the
16portfolio of power and energy products to be procured and
17delivered for the period June 2008 through May 2009, and shall
18identify the proposed procurement administrator, who shall
19have the same experience and expertise as is required of a
20procurement administrator hired pursuant to Section 1-75 of
21the Illinois Power Agency Act. Copies of the procurement plan
22shall be posted and made publicly available on the
23Commission's website. The initial procurement plan may include
24contracts for renewable resources that extend beyond May 2009.
25        (i) Within 14 days following filing of the initial
26    procurement plan, any person may file a detailed objection

 

 

HB3854- 37 -LRB103 30369 AMQ 56799 b

1    with the Commission contesting the procurement plan
2    submitted by the electric utility. All objections to the
3    electric utility's plan shall be specific, supported by
4    data or other detailed analyses. The electric utility may
5    file a response to any objections to its procurement plan
6    within 7 days after the date objections are due to be
7    filed. Within 7 days after the date the utility's response
8    is due, the Commission shall determine whether a hearing
9    is necessary. If it determines that a hearing is
10    necessary, it shall require the hearing to be completed
11    and issue an order on the procurement plan within 60 days
12    after the filing of the procurement plan by the electric
13    utility.
14        (ii) The order shall approve or modify the procurement
15    plan, approve an independent procurement administrator,
16    and approve or modify the electric utility's tariffs that
17    are proposed with the initial procurement plan. The
18    Commission shall approve the procurement plan if the
19    Commission determines that it will ensure adequate,
20    reliable, affordable, efficient, and environmentally
21    sustainable electric service at the lowest total cost over
22    time, taking into account any benefits of price stability.
23    (k) (Blank).
24    (k-5) (Blank).
25    (l) An electric utility shall recover its costs incurred
26under this Section and subsection (c-5) of Section 1-75 of the

 

 

HB3854- 38 -LRB103 30369 AMQ 56799 b

1Illinois Power Agency Act, including, but not limited to, the
2costs of procuring power and energy demand-response resources
3under this Section and its costs for purchasing renewable
4energy credits pursuant to subsection (c-5) of Section 1-75 of
5the Illinois Power Agency Act. The utility shall file with the
6initial procurement plan its proposed tariffs through which
7its costs of procuring power that are incurred pursuant to a
8Commission-approved procurement plan and those other costs
9identified in this subsection (l), will be recovered. The
10tariffs shall include a formula rate or charge designed to
11pass through both the costs incurred by the utility in
12procuring a supply of electric power and energy for the
13applicable customer classes with no mark-up or return on the
14price paid by the utility for that supply, plus any just and
15reasonable costs that the utility incurs in arranging and
16providing for the supply of electric power and energy. The
17formula rate or charge shall also contain provisions that
18ensure that its application does not result in over or under
19recovery due to changes in customer usage and demand patterns,
20and that provide for the correction, on at least an annual
21basis, of any accounting errors that may occur. A utility
22shall recover through the tariff all reasonable costs incurred
23to implement or comply with any procurement plan that is
24developed and put into effect pursuant to Section 1-75 of the
25Illinois Power Agency Act and this Section, and for the
26procurement of renewable energy credits pursuant to subsection

 

 

HB3854- 39 -LRB103 30369 AMQ 56799 b

1(c-5) of Section 1-75 of the Illinois Power Agency Act,
2including any fees assessed by the Illinois Power Agency,
3costs associated with load balancing, and contingency plan
4costs. The electric utility shall also recover its full costs
5of procuring electric supply for which it contracted before
6the effective date of this Section in conjunction with the
7provision of full requirements service under fixed-price
8bundled service tariffs subsequent to December 31, 2006. All
9such costs shall be deemed to have been prudently incurred.
10The pass-through tariffs that are filed and approved pursuant
11to this Section shall not be subject to review under, or in any
12way limited by, Section 16-111(i) of this Act. All of the costs
13incurred by the electric utility associated with the purchase
14of zero emission credits in accordance with subsection (d-5)
15of Section 1-75 of the Illinois Power Agency Act, all costs
16incurred by the electric utility associated with the purchase
17of carbon mitigation credits in accordance with subsection
18(d-10) of Section 1-75 of the Illinois Power Agency Act, and,
19beginning June 1, 2017, all of the costs incurred by the
20electric utility associated with the purchase of renewable
21energy resources in accordance with Sections 1-56 and 1-75 of
22the Illinois Power Agency Act, and all of the costs incurred by
23the electric utility in purchasing renewable energy credits in
24accordance with subsection (c-5) of Section 1-75 of the
25Illinois Power Agency Act, shall be recovered through the
26electric utility's tariffed charges applicable to all of its

 

 

HB3854- 40 -LRB103 30369 AMQ 56799 b

1retail customers, as specified in subsection (k) or subsection
2(i-5), as applicable, of Section 16-108 of this Act, and shall
3not be recovered through the electric utility's tariffed
4charges for electric power and energy supply to its eligible
5retail customers.
6    (m) The Commission has the authority to adopt rules to
7carry out the provisions of this Section. For the public
8interest, safety, and welfare, the Commission also has
9authority to adopt rules to carry out the provisions of this
10Section on an emergency basis immediately following August 28,
112007 (the effective date of Public Act 95-481).
12    (n) Notwithstanding any other provision of this Act, any
13affiliated electric utilities that submit a single procurement
14plan covering their combined needs may procure for those
15combined needs in conjunction with that plan, and may enter
16jointly into power supply contracts, purchases, and other
17procurement arrangements, and allocate capacity and energy and
18cost responsibility therefor among themselves in proportion to
19their requirements.
20    (o) On or before June 1 of each year, the Commission shall
21hold an informal hearing for the purpose of receiving comments
22on the prior year's procurement process and any
23recommendations for change.
24    (p) An electric utility subject to this Section may
25propose to invest, lease, own, or operate an electric
26generation facility as part of its procurement plan, provided

 

 

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1the utility demonstrates that such facility is the least-cost
2option to provide electric service to those retail customers
3included in the plan's electric supply service requirements.
4If the facility is shown to be the least-cost option and is
5included in a procurement plan prepared in accordance with
6Section 1-75 of the Illinois Power Agency Act and this
7Section, then the electric utility shall make a filing
8pursuant to Section 8-406 of this Act, and may request of the
9Commission any statutory relief required thereunder. If the
10Commission grants all of the necessary approvals for the
11proposed facility, such supply shall thereafter be considered
12as a pre-existing contract under subsection (b) of this
13Section. The Commission shall in any order approving a
14proposal under this subsection specify how the utility will
15recover the prudently incurred costs of investing in, leasing,
16owning, or operating such generation facility through just and
17reasonable rates charged to those retail customers included in
18the plan's electric supply service requirements. Cost recovery
19for facilities included in the utility's procurement plan
20pursuant to this subsection shall not be subject to review
21under or in any way limited by the provisions of Section
2216-111(i) of this Act. Nothing in this Section is intended to
23prohibit a utility from filing for a fuel adjustment clause as
24is otherwise permitted under Section 9-220 of this Act.
25    (q) If the Illinois Power Agency filed with the
26Commission, under Section 16-111.5 of this Act, its proposed

 

 

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1procurement plan for the period commencing June 1, 2017, and
2the Commission has not yet entered its final order approving
3the plan on or before the effective date of this amendatory Act
4of the 99th General Assembly, then the Illinois Power Agency
5shall file a notice of withdrawal with the Commission, after
6the effective date of this amendatory Act of the 99th General
7Assembly, to withdraw the proposed procurement of renewable
8energy resources to be approved under the plan, other than the
9procurement of renewable energy credits from distributed
10renewable energy generation devices using funds previously
11collected from electric utilities' retail customers that take
12service pursuant to electric utilities' hourly pricing tariff
13or tariffs and, for an electric utility that serves less than
14100,000 retail customers in the State, other than the
15procurement of renewable energy credits from distributed
16renewable energy generation devices. Upon receipt of the
17notice, the Commission shall enter an order that approves the
18withdrawal of the proposed procurement of renewable energy
19resources from the plan. The initially proposed procurement of
20renewable energy resources shall not be approved or be the
21subject of any further hearing, investigation, proceeding, or
22order of any kind.
23    This amendatory Act of the 99th General Assembly preempts
24and supersedes any order entered by the Commission that
25approved the Illinois Power Agency's procurement plan for the
26period commencing June 1, 2017, to the extent it is

 

 

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1inconsistent with the provisions of this amendatory Act of the
299th General Assembly. To the extent any previously entered
3order approved the procurement of renewable energy resources,
4the portion of that order approving the procurement shall be
5void, other than the procurement of renewable energy credits
6from distributed renewable energy generation devices using
7funds previously collected from electric utilities' retail
8customers that take service under electric utilities' hourly
9pricing tariff or tariffs and, for an electric utility that
10serves less than 100,000 retail customers in the State, other
11than the procurement of renewable energy credits for
12distributed renewable energy generation devices.
13(Source: P.A. 102-662, eff. 9-15-21.)
 
14    (220 ILCS 5/16-115A)
15    Sec. 16-115A. Obligations of alternative retail electric
16suppliers.
17    (a) An alternative retail electric supplier:
18        (i) shall comply with the requirements imposed on
19    public utilities by Sections 8-201 through 8-207, 8-301,
20    8-505 and 8-507 of this Act, to the extent that these
21    Sections have application to the services being offered by
22    the alternative retail electric supplier;
23        (ii) shall continue to comply with the requirements
24    for certification stated in subsection (d) of Section
25    16-115;

 

 

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1        (iii) by May 31, 2020 and every June 30 thereafter,
2    shall submit to the Commission and the Office of the
3    Attorney General the rates the retail electric supplier
4    charged to residential customers in the prior year,
5    including each distinct rate charged and whether the rate
6    was a fixed or variable rate, the basis for the variable
7    rate, and any fees charged in addition to the supply rate,
8    including monthly fees, flat fees, or other service
9    charges; and
10        (iv) shall make publicly available on its website,
11    without the need for a customer login, rate information
12    for all of its variable, time-of-use, and fixed rate
13    contracts currently available to residential customers,
14    including, but not limited to, fixed monthly charges,
15    early termination fees, and kilowatt-hour charges.
16    (b) An alternative retail electric supplier shall obtain
17verifiable authorization from a customer, in a form or manner
18approved by the Commission consistent with Section 2EE of the
19Consumer Fraud and Deceptive Business Practices Act, before
20the customer is switched from another supplier.
21    (c) No alternative retail electric supplier, or electric
22utility other than the electric utility in whose service area
23a customer is located, shall (i) enter into or employ any
24arrangements which have the effect of preventing a retail
25customer with a maximum electrical demand of less than one
26megawatt from having access to the services of the electric

 

 

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1utility in whose service area the customer is located or (ii)
2charge retail customers for such access. This subsection shall
3not be construed to prevent an arms-length agreement between a
4supplier and a retail customer that sets a term of service,
5notice period for terminating service and provisions governing
6early termination through a tariff or contract as allowed by
7Section 16-119.
8    (d) An alternative retail electric supplier that is
9certified to serve residential or small commercial retail
10customers shall not:
11        (1) deny service to a customer or group of customers
12    nor establish any differences as to prices, terms,
13    conditions, services, products, facilities, or in any
14    other respect, whereby such denial or differences are
15    based upon race, gender or income, except as provided in
16    Section 16-115E.
17        (2) deny service to a customer or group of customers
18    based on locality nor establish any unreasonable
19    difference as to prices, terms, conditions, services,
20    products, or facilities as between localities.
21    (e) An alternative retail electric supplier shall comply
22with the following requirements with respect to the marketing,
23offering and provision of products or services to residential
24and small commercial retail customers:
25        (i) All marketing materials, including, but not
26    limited to, electronic marketing materials, in-person

 

 

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1    solicitations, and telephone solicitations, shall contain
2    information that adequately discloses the prices, terms,
3    and conditions of the products or services that the
4    alternative retail electric supplier is offering or
5    selling to the customer and shall disclose the current
6    utility electric supply price to compare applicable at the
7    time the alternative retail electric supplier is offering
8    or selling the products or services to the customer and
9    shall disclose the date on which the utility electric
10    supply price to compare became effective and the date on
11    which it will expire. The utility electric supply price to
12    compare shall be the sum of the electric supply charge and
13    the transmission services charge and shall not include the
14    purchased electricity adjustment. The disclosure shall
15    include a statement that the price to compare does not
16    include the purchased electricity adjustment, and, if
17    applicable, the range of the purchased electricity
18    adjustment. All marketing materials, including, but not
19    limited to, electronic marketing materials, in-person
20    solicitations, and telephone solicitations, shall include
21    the following statement:
22            "(Name of the alternative retail electric
23        supplier) is not the same entity as your electric
24        delivery company. You are not required to enroll with
25        (name of alternative retail electric supplier).
26        Beginning on (effective date), the electric supply

 

 

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1        price to compare is (price in cents per kilowatt
2        hour). The electric utility electric supply price will
3        expire on (expiration date). The utility electric
4        supply price to compare does not include the purchased
5        electricity adjustment factor. For more information go
6        to the Illinois Commerce Commission's free website at
7        www.pluginillinois.org.".
8        If applicable, the statement shall also include the
9    following statement:
10            "The purchased electricity adjustment factor may
11        range between +.5 cents and -.5 cents per kilowatt
12        hour.".
13        This paragraph (i) does not apply to goodwill or
14    institutional advertising.
15        (ii) Before any customer is switched from another
16    supplier, the alternative retail electric supplier shall
17    give the customer written information that adequately
18    discloses, in plain language, the prices, terms and
19    conditions of the products and services being offered and
20    sold to the customer. This written information shall be
21    provided in a language in which the customer subject to
22    the marketing or solicitation is able to understand and
23    communicate, and the alternative retail electric supplier
24    shall not switch a customer who is unable to understand
25    and communicate in a language in which the marketing or
26    solicitation was conducted. The alternative retail

 

 

HB3854- 48 -LRB103 30369 AMQ 56799 b

1    electric supplier shall comply with Section 2N of the
2    Consumer Fraud and Deceptive Business Practices Act.
3        (iii) An alternative retail electric supplier shall
4    provide documentation to the Commission and to customers
5    that substantiates any claims made by the alternative
6    retail electric supplier regarding the technologies and
7    fuel types used to generate the electricity offered or
8    sold to customers.
9        (iv) The alternative retail electric supplier shall
10    provide to the customer (1) itemized billing statements
11    that describe the products and services provided to the
12    customer and their prices, and (2) an additional
13    statement, at least annually, that adequately discloses
14    the average monthly prices, and the terms and conditions,
15    of the products and services sold to the customer.
16        (v) All in-person and telephone solicitations shall be
17    conducted in, translated into, and provided in a language
18    in which the consumer subject to the marketing or
19    solicitation is able to understand and communicate. An
20    alternative retail electric supplier shall terminate a
21    solicitation if the consumer subject to the marketing or
22    communication is unable to understand and communicate in
23    the language in which the marketing or solicitation is
24    being conducted. An alternative retail electric supplier
25    shall comply with Section 2N of the Consumer Fraud and
26    Deceptive Business Practices Act.

 

 

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1        (vi) Each alternative retail electric supplier shall
2    conduct training for individual representatives engaged in
3    in-person solicitation and telemarketing to residential
4    customers on behalf of that alternative retail electric
5    supplier prior to conducting any such solicitations on the
6    alternative retail electric supplier's behalf. Each
7    alternative retail electric supplier shall submit a copy
8    of its training material to the Commission on an annual
9    basis and the Commission shall have the right to review
10    and require updates to the material. After initial
11    training, each alternative retail electric supplier shall
12    be required to conduct refresher training for its
13    individual representatives every 6 months.
14    (f) An alternative retail electric supplier may limit the
15overall size or availability of a service offering by
16specifying one or more of the following: a maximum number of
17customers, maximum amount of electric load to be served, time
18period during which the offering will be available, or other
19comparable limitation, but not including the geographic
20locations of customers within the area which the alternative
21retail electric supplier is certificated to serve. The
22alternative retail electric supplier shall file the terms and
23conditions of such service offering including the applicable
24limitations with the Commission prior to making the service
25offering available to customers.
26    (g) Nothing in this Section shall be construed as

 

 

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1preventing an alternative retail electric supplier, which is
2an affiliate of, or which contracts with, (i) an industry or
3trade organization or association, (ii) a membership
4organization or association that exists for a purpose other
5than the purchase of electricity, or (iii) another
6organization that meets criteria established in a rule adopted
7by the Commission, from offering through the organization or
8association services at prices, terms and conditions that are
9available solely to the members of the organization or
10association.
11    (h) For all eligible retail customers, as defined in
12Section 16-111.5, served by an alternative retail electric
13supplier, or electric utility other than the electric utility
14in whose service area a customer is located, such supplier or
15utility shall purchase products that include the same
16percentage of clean energy, as defined in Section 1-10 of the
17Illinois Power Agency Act, as was procured for the utility in
18whose service area such customers are located for the
19immediately prior delivery year. Such clean energy shall
20include all environmental attributes as described in Section
2116-111.5.
22(Source: P.A. 101-590, eff. 1-1-20; 102-459, eff. 8-20-21.)