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09500HB1834ham001 |
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| Illinois. |
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| (b) Illinois has considerable natural resources that are |
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| currently underutilized and could support development of new |
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| baseload electric power at an affordable price. |
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| (c) The development of new baseload electric generating |
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| capacity is needed if the State is to continue to be successful |
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| in attracting new businesses and jobs. |
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| (d) Certain regions of the State, such as central and |
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| southern Illinois, could benefit greatly from new employment |
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| opportunities created by development of baseload electric |
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| generating plants utilizing the plentiful supply of Illinois |
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| Basin coal. |
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| (e) Technology can be deployed that allows high sulfur |
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| Illinois Basin coal to be burned efficiently while meeting |
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| strict State and federal air quality limitations. |
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| Specifically, the State shall encourage the use of advanced |
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| clean coal technology, such as Integrated Gasification |
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| Combined Cycle (IGCC) technology. |
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| (f) The development of new baseload electric generating |
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| plants, as contemplated in the Clean Coal Development Program |
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| Law, will create benefits to all consumers of electricity in |
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| the State. Such benefits will include lower and more stable |
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| prices for electricity.
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| (220 ILCS 5/21-110 new)
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| Sec. 21-110. Definitions. For the purposes of this Article, |
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09500HB1834ham001 |
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LRB095 10034 MJR 33385 a |
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| the following terms shall be defined as set forth in this |
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| Section. |
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| The terms defined in Section 16-102 of the Public Utilities |
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| Act have the meanings ascribed to them in that Act. |
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| "Actual total capital costs" means, as more specifically |
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| set forth in the service agreement or agreements for a clean |
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| coal project, the total initial capital costs recoverable by |
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| such clean coal project pursuant to its wholesale sales tariff |
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| upon completion of such clean coal project. |
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| "CCN" means a certificate of convenience and necessity. |
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| "Clean coal project" means any existing or planned electric |
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| generating project that has a wholesale tariff pursuant to the |
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| Federal Power Act and that is designed (1) to have a nameplate |
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| capacity of no less than 400 megawatts gross, (2) to be |
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| directly interconnected with a participating electric utility, |
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| (3) to utilize integrated gasification combined cycle |
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| technology, and (4) to utilize as its primary fuel or feedstock |
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| coal having high volatile bituminous rank and greater than 1.7 |
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| pounds of sulfur per million Btu content and for which a final |
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| air permit has been issued that: |
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| (1) describes the project as having a designed |
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| nameplate capacity of no less than 400 megawatts gross; and |
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| (2) provides that the project's emissions shall not |
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| exceed the following standards: |
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| (A) with respect to NOx, 0.035 lbs./MMBtu; |
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| (B) with respect to PM10 Total (filterable and |
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LRB095 10034 MJR 33385 a |
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| condensable), 0.025 lbs./MMBtu; |
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| (C) with respect to SO2, 0.02 lbs. / MMBtu; and |
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| (D) with respect to mercury, 0.00002 lbs. / MWh. |
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| The standards above that are described in lbs. / MMBtu are |
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| to be expressed as MMBtu of heat input to the combined cycle |
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| gas turbines of a clean coal project. When warranted by the |
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| usage, "clean coal project" shall mean the owner, operator, or |
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| lessee of a clean coal project.
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| "Core plant construction cost ceiling" means, as more |
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| specifically set forth in the service agreement or agreements |
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| for a given clean coal project, $1 per kilowatt of net design |
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| capacity of a clean coal project expressed in January 2007 |
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| nominal dollars, adjusted for inflation using the producer |
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| price index published by the U.S. Bureau of Labor Statistics to |
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| the date upon that the core plant construction cost quote for |
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| such clean coal project is expressed.
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| "Core plant construction cost quote" means, as more |
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| specifically set forth for a clean coal project in the |
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| applicable service agreement or agreements, a price quote or |
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| estimate prepared by a reputable engineering and construction |
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| services firm (or group of firms) for the costs payable to one |
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| or more contractors or suppliers for the engineering, |
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| procurement, and construction of the core plant facilities |
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| comprising a clean coal project. Such core plant facilities |
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| shall include all civil, structural, mechanical, electrical, |
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| control, and safety systems associated with the following major |
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| core plant functional areas: air separation, coal grinding and |
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| slurry preparation, gasification and high temperature |
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| synthesis gas cooling, low temperature synthesis gas cooling, |
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| acid gas removal, sulfur recovery, tail gas treatment, combined |
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| cycle power block, coal fines and slag handling, and water and |
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| wastewater treatment at the plant site. The quote or estimate |
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| shall be based on detailed design work sufficient to permit |
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| quantification of major categories of materials, commodities, |
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| and labor man hours, and receipt of quotes from vendors of |
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| major equipment packages. The costs shall be expressed in |
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| nominal dollars as of the date of the estimate and shall be |
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| exclusive of construction financing costs, taxes, insurance, |
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| and an escalation in materials and labor beyond the date as of |
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| which the core plant construction cost quote is expressed, |
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| costs associated with non-core plant interconnection |
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| facilities for electric transmission, natural gas supply, |
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| water supply and coal delivery, and other non-core plant costs. |
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| For purposes of Section 21-145, the core plant construction |
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| cost quote shall be expressed in nominal dollars per kilowatt |
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| of net design capacity of the clean coal project by dividing |
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| the core plant construction cost quote by the net design |
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| capacity of the clean coal project. |
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| "Department" means the Department of Commerce and Economic |
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| Opportunity. |
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| "FERC" means the Federal Energy Regulatory Commission, an |
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| independent
regulatory commission within the Department of |
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| Energy established by Section 401 of the Department of Energy |
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| Organization Act, or any agency succeeding to the powers |
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| thereof under Section 205 of the Federal Power Act. |
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| "Final air permit" means a Prevention of Significant |
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| Deterioration of Air Quality (PSD) construction permit issued |
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| pursuant to a final decision or order made on or before |
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| December 31, 2010. |
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| "Formula rate" means a formula used to calculate a |
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| cost-based rate for the sale of electric capacity and |
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| associated energy from a clean coal project set forth in the |
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| applicable wholesale sales tariff. |
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| "FutureGen demonstration project" means a 10-year |
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| demonstration project sponsored by the United States to create |
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| a zero-emissions electricity and hydrogen power plant that is: |
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| (1) not otherwise eligible to participate in the Clean |
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| Coal Development Program; |
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| (2) designed to include all of the following: |
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| (A) have a nameplate capacity of not greater than |
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| 300 megawatts gross; |
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| (B) be directly interconnected with a |
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| participating electric utility; and |
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| (C) utilize as its primary fuel or feedstock coal |
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| having high volatile bituminous rank and greater than |
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| 1.7 pounds of sulfur per million Btu content; and |
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| (3) has a planned construction start date not later |
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| than December 31, 2010.
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LRB095 10034 MJR 33385 a |
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| "Participating electric utility" means any Illinois |
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| electric utility as defined in the Public Utilities Act that as |
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| of the effective date of this Act provides delivery services to |
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| more than 100,000 customers in Illinois. |
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| "Service agreement" means a service agreement for the sale |
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| of electric capacity and associated energy from a clean coal |
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| project substantively identical to the pro forma service |
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| agreement contained in the applicable wholesale sales tariff. |
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| "Total capital cost target" means $1, as adjusted in |
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| accordance with the following: |
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| (1) such amount shall be increased by any reasonably |
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| estimated increase any total capital costs that results |
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| from the core plant construction cost quote, as approved by |
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| the ICC, being higher than the core plant construction cost |
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| ceiling; |
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| (2) such amount shall be decreased or increased, as the |
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| case may be, by the amount, if any, by which actual total |
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| capital costs are decreased or increased due to positive or |
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| negative price escalation provided for under the |
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| applicable contract or contracts for the core plant |
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| construction, with any escalation in commodity prices |
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| being based on published indices; |
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| (3) such amount shall be increased by the amount of any |
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| additional capital costs that are justly and reasonably |
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| incurred due to a change in law or regulation enacted after |
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| the date the applicable service agreement is executed by |
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LRB095 10034 MJR 33385 a |
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| the participating electric utility; and |
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| (4) such amount shall be increased by any increase in |
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| total capitalized financing costs resulting from a clean |
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| coal project not receiving Illinois moral obligation bond |
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| financing or tax exempt finance volume cap allocation in |
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| the amounts preliminarily approved for such clean coal |
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| project by the Illinois Finance Authority or not receiving |
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| state grants equal to at least 15% of the total capital |
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| cost target.
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| "Wholesale sales tariff" means a schedule of rates, terms, |
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| and conditions for the sale of electric capacity and associated |
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| energy from a clean coal project filed with FERC by the owner, |
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| lessee, or operator of that clean coal project and allowed by |
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| FERC to become effective pursuant to Section 205 of the Federal |
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| Power Act and Part 35 of FERC's regulations.
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| (220 ILCS 5/21-115 new)
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| Sec. 21-115. Clean coal development program. |
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| (a) Each participating electric utility shall purchase |
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| electric capacity and associated energy from the owners, |
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| lessees, or operators of clean coal projects pursuant to |
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| service agreements in accordance with the provisions of Section |
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| 21-115 of this Article. |
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| (b) Upon receipt of an offer from a clean coal project to |
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| sell capacity and associated energy pursuant to a wholesale |
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| sales tariff, the participating electric utility shall, within |
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LRB095 10034 MJR 33385 a |
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| 30 days after receipt of the pro forma service agreement |
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| contained in the wholesale sales tariff, execute the service |
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| agreement and file the executed service agreement for |
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| informational purposes with the Commission, provided that no |
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| participating electric utility shall enter into a service |
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| agreement if the amount of capacity to be purchased under such |
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| service agreement, together with the aggregate amount of all |
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| capacity purchased under other service agreements executed |
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| previously or contemporaneously by the participating electric |
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| utility from a FutureGen demonstration project, exceeds 8% of |
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| the participating electric utility's coincident peak delivery |
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| services load, expressed in kilowatts, for the calendar year |
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| immediately preceding the effective date of this Article.
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| (220 ILCS 5/21-120 new)
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| Sec. 21-120. Characteristics of the wholesale sales |
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| tariff. Subject to the jurisdiction of FERC with respect to the |
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| wholesale sales tariff, in order to fulfill the purposes of the |
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| Clean Coal Development Program, it is desirable that the |
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| formula rate and service agreement have characteristics that |
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| are adequate and appropriate to support the long-term |
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| investments necessary for the construction and operation of |
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| clean coal projects. It is the intent of the General Assembly |
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| that: |
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| (1) With respect to the formula rate, the following |
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| characteristics are adequate and appropriate: |
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LRB095 10034 MJR 33385 a |
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| (A) the use of a cost of service methodology |
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| employing a level or ascending capital recovery |
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| component; |
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| (B) the use of a hypothetical capital structure, as |
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| such structure is used by FERC pursuant to Sections 205 |
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| and 206 of the Federal Power Act, that assumes a |
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| capital structure for a clean coal project of 50% |
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| equity and 50% debt; |
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| (C) the use of a return on equity that is fixed for |
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| the term of the service agreement at a rate equal to |
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| the sum of 1 basis point and the rate applicable to |
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| 30-year, commercial debt instruments bearing a senior, |
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| unsecured credit rating by Standard & Poor's of BBB as |
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| of the last business day of the month immediately |
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| preceding the month in which the service agreement is |
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| executed by the participating electric utility; and |
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| (D) the use of an incentive and penalty mechanism |
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| such that (i) if the actual total capital costs of a |
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| given clean coal project exceeds the total capital cost |
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| target by greater than 10%, then the return on equity |
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| applicable to the portion of the actual total capital |
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| costs in excess of 110% of the total capital cost |
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| target shall be reduced by 1 basis point (with there |
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| being 100 basis points in each percent of return on |
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| equity), and (ii) if the actual total capital costs of |
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| a given clean coal project are less than 90% of the |
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LRB095 10034 MJR 33385 a |
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| total capital cost target, then the return on equity |
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| for an amount equal to the amount that the total |
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| capital cost is less than 90% of the total capital cost |
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| target shall be increased by 1 basis point.
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| (2) With respect to the service agreement, the |
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| following characteristics are adequate and appropriate: |
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| (A) a provision setting forth a term of 30 years |
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| commencing on the date upon which the clean coal |
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| project achieves commercial operation; |
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| (B) a provision incorporating the duties and |
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| obligations of the clean coal project and the |
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| participating electric utility with respect to the |
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| notice and termination mechanism set forth in Section |
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| 21-145 of this Article;
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| (C) a provision to the effect that a change in law, |
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| regulation or market conditions is not a basis for |
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| termination or reduction in payments by the purchaser; |
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| and |
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| (D) provisions for a plant availability target of |
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| 85% from and after the third full calendar year of |
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| operation and an incentive structure for meeting such |
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| target, provided that the total bonus in any year for |
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| exceeding the target in any year shall not exceed an |
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| amount equivalent to 15% of the total return on equity |
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| for such year and the total penalty for falling short |
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| of such target in any year shall not exceed an amount |
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| equal to 15% of the total return on equity for such |
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| year; and |
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| (E) a provision pursuant to which at the end of the |
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| 30 year contract term the clean coal project will, upon |
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| the request of the Commission or other agency of the |
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| State of Illinois authorized to make such request, be |
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| transferred for the benefit of ratepayers to a trust or |
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| other entity nominated by the Commission or other |
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| agency in return for no consideration other than the |
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| assumption of the obligation to retire the clean coal |
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| project and remediate the site when the clean coal |
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| project reaches the end of its useful economic life.
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| (3) With respect to the standard of review under the |
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| Federal Power Act of the wholesale sales tariff, it is |
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| adequate and appropriate that absent mutual written |
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| consent of the participating electric utility and the |
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| owner, operator, or lessee of a clean coal project any |
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| proposed changes under Sections 205 and 206 of the Federal |
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| Power Act to the wholesale sales tariff, including without |
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| limitation the formula rate and service agreement, are |
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| subject to the "public interest" standard of review as such |
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| standard of review is applied by FERC pursuant to sections |
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| 205 and 206 of the Federal Power Act. |
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| To the extent, if any, that a wholesale sales tariff as |
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| allowed to be effective by FERC has characteristics in addition |
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| to, or different from, those set forth in this Section, such |
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09500HB1834ham001 |
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LRB095 10034 MJR 33385 a |
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| additional or different characteristics shall not alter a |
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| participating electric utility's obligation to purchase |
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| capacity and associated energy pursuant to wholesale sales |
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| tariffs as set forth in this Article. |
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| Nothing in this Article shall be deemed to limit the |
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| participation of the State, or any agency or political |
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| subdivision thereof, or any elected or appointed official of |
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| the State of Illinois or any agency or political subdivision |
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| thereof, in any FERC proceeding related to a wholesale sales |
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| tariff. |
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| (220 ILCS 5/21-125 new)
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| Sec. 21-125. Disposition of capacity and energy. |
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| (a) Each participating electric utility that executes a |
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| service agreement pursuant to the Clean Coal Development |
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| Program Law shall resell the capacity and associated energy |
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| purchased from a clean coal project to wholesale purchasers in |
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| the wholesale capacity and energy markets available to the |
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| participating electric utility. The participating electric |
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| utility shall use its best efforts to obtain the highest prices |
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| for the capacity and associated energy sold pursuant to this |
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| Section so as to minimize the costs passed through to the |
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| participating electric utility's delivery service customers |
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| pursuant to Section 21-130. |
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| (b) The participating electric utility shall be in |
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| compliance with this Section if: |
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09500HB1834ham001 |
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LRB095 10034 MJR 33385 a |
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| (1) the prices obtained by the participating electric |
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| utility are no less than the prices available for the |
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| capacity and associated energy if sold into the day-ahead |
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| and real time capacity and energy markets administered by a |
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| regional transmission organization to which the applicable |
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| qualified clean coal project is interconnected; or |
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| (2) the participating electric utility otherwise sells |
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| the capacity and associated energy pursuant to a plan set |
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| forth in a tariff approved by the Commission pursuant to |
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| Article IX of the Public Utilities Act.
|
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| (220 ILCS 5/21-130 new)
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| Sec. 21-130. Pass-through of clean coal development |
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| benefits and costs. |
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| (a) Because a participating electric utility is required to |
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| accept an offer from a clean coal project to sell capacity and |
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| associated energy pursuant to a wholesale sales tariff as |
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| provided in Section 21-115 of this Article, the participating |
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| electric utility is entitled to recover the costs less benefits |
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| from its purchases pursuant to the wholesale sales tariff in |
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| its retail rates. Each participating electric utility shall |
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| pass-through to its delivery services customers the benefits |
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| and costs of the Clean Coal Development Program without mark-up |
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| as set forth in this Section. |
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| (b) Within 60 days after the effective date of this |
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| Article, each participating electric utility shall file with |
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LRB095 10034 MJR 33385 a |
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| the Commission a rider to such utility's tariff that complies |
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| with this Section. Such tariff riders shall be subject to |
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| Article IX of the Public Utilities Act; provided, however, that |
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| the period of suspension of such rider shall not extend more |
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| than 75 days beyond the time when such rider would otherwise go |
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| into effect and such period of suspension shall not be extended |
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| by the Commission. Any proceeding initiated pursuant to Article |
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| IX with respect to such rider shall be limited to making a |
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| determination that, as a matter of law, the tariff rider |
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| complies with the requirements of this section and any such |
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| proceeding may not exceed 120 days in length. |
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| (c) In order to comply with this Section, a tariff rider |
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| shall: |
14 |
| (1) apply to all customers to which the participating |
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| electric utility provides bundled retail services or |
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| retail distribution service; |
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| (2) be incorporated onto the participating electric |
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| utility's customer bills in the same manner in which the |
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| participating electric utility, as of the effective date of |
20 |
| this Article, incorporates charges pursuant to Section 6-5 |
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| of the Renewable Energy, Energy Efficiency and Coal |
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| Resources Development Law of 1997; and |
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| (3) use an automatic rate adjustment methodology, as |
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| such methodology understood pursuant to the Public |
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| Utilities Act, having the following characteristics: |
26 |
| (A) a "CCDP factor" defined as the factor |
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| calculated as set forth in this subsection (c) to |
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| represent the net benefit or cost of the Clean Coal |
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| Development Program; |
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| (B) a "determination period" defined as the |
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| calendar month for which a CCDP Factor is determined |
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| for the participating electric utility's delivery |
7 |
| services customers; |
8 |
| (C) an "effective period" defined as the monthly |
9 |
| billing period occurring 2 months after the |
10 |
| determination period, during which the CCDP factor is |
11 |
| applied to kilowatt-hours of energy delivered by the |
12 |
| participating electric utility to its delivery |
13 |
| services customers; |
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| (D) "accrued CCDP expenses" defined as the sum of |
15 |
| accrued expenses incurred by the participating |
16 |
| electric utility during the determination period |
17 |
| pursuant to executed service agreements with clean |
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| coal projects; |
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| (E) "accrued CCDP revenues" (expressed as an |
20 |
| accounting credit) defined as the sum of accrued |
21 |
| revenues recorded by the participating electric |
22 |
| utility during the determination period associated |
23 |
| with the sale of capacity and associated energy by the |
24 |
| participating electric utility pursuant to Section 125 |
25 |
| of this Article; |
26 |
| (F) "automatic CCDP balancing factor" defined as |
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| the cumulative debit or credit balance, if any, |
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| resulting from the application of the CCDP factor from |
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| the effective date of the tariff rider through the |
4 |
| determination period; |
5 |
| (G) "forecast usage" (expressed in kilowatt-hours) |
6 |
| defined as the forecast by the participating electric |
7 |
| utility of the total energy that the participating |
8 |
| electric utility expects to deliver to its delivery |
9 |
| services customers during the effective period; and |
10 |
| (H) a formula for the determination of the CCDP |
11 |
| factor that divides the sum of the CCDP accrued |
12 |
| revenues, CCDP accrued expenses, and automatic CCDP |
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| balancing factor by the forecast usage. |
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| (d) Each participating electric utility shall submit its |
15 |
| CCDP factor to the Commission in an informational filing at |
16 |
| least 3 business days prior to the start of each effective |
17 |
| period during which it is to be applied. In addition, each |
18 |
| participating electric utility that is purchasing capacity and |
19 |
| associated energy pursuant to a service agreement during a |
20 |
| calendar year shall prepare and submit to the Commission an |
21 |
| annual report for each calendar year during which such |
22 |
| purchases are made, containing the details of the calculation |
23 |
| of its CCDP factor on or before the last business day of April |
24 |
| of the following calendar year. |
25 |
| (220 ILCS 5/21-135 new)
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| Sec. 21-135. Affiliate transactions. Notwithstanding any |
2 |
| other provision of this Article, if an electric utility or an |
3 |
| affiliate of an electric utility has an ownership interest in |
4 |
| any eligible facility, Article VII of this Act shall apply.
|
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| (220 ILCS 5/21-140 new)
|
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| Sec. 21-140. Certificates of convenience and necessity. |
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| (a) If a CCN is required from the Commission for the |
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| construction of transmission or pipeline facilities necessary |
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| to support interconnection or supplemental fuel supply of a |
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| clean coal project, the Commission's order shall be entered (1) |
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| within 180 days after the date on which an application for such |
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| a CCN has been filed pursuant to Section 8-406 of this Act |
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| without a request for an order pursuant to Section 8-503 of |
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| this Act; or (2) within 270 days in the case of an application |
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| with a request for an order pursuant to Section 8-503 of this |
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| Act. |
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| (b) In any proceeding conducted by the Commission with |
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| respect to a CCN filed pursuant to this Section, intervention |
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| shall be limited to parties with a direct interest in the |
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| requested CCN and any statutory consumer protection agency as |
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| defined in subsection (d) of Section 9-102.1 of this Act. |
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| Parties with a direct interest shall include each owner of |
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| record of the land that would be crossed by the proposed |
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| transmission or pipeline facilities unless the Commission |
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| determines that such owner has acquired the land solely for the |
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| purpose of becoming a party to the CCN proceeding, and all |
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| utilities and railroads whose lines will be crossed by the |
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| proposed transmission or pipeline facilities or whose lines |
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| will be paralleled within 200 feet by such proposed facilities. |
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| Any application seeking rehearing of an order issued in |
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| response to an application for a CCN filed pursuant to the |
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| Section shall be filed within 10 days after service of the |
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| order. |
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| (c) The construction of transmission and pipeline |
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| facilities necessary to support interconnection or |
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| supplemental fuel supply of a clean coal project is in the |
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| public interest, and in determining whether to issue an order |
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| granting a CCN for construction of such facilities, the |
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| Commission shall liberally construe the provisions of this |
15 |
| Section in favor of granting a CCN for construction of such |
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| facilities.
|
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| (220 ILCS 5/21-145 new)
|
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| Sec. 21-145. Termination mechanism. Because (i) the core |
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| plant construction cost quote will not likely be known at the |
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| time when the applicable service agreement is executed by the |
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| participating electric utility and (ii) the clean coal project |
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| will likely incur significant costs related to the engineering |
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| and design services performed to obtain the core plant |
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| construction cost quote, and in order to provide a mechanism |
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| for the Commission to review and approve any increase in the |
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LRB095 10034 MJR 33385 a |
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| anticipated core plant construction costs quote, the following |
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| termination mechanism shall apply to all clean coal projects |
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| participating in the Clean Coal Development Program: |
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| (1) Upon completion of the core plant construction cost |
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| quote for a given clean coal project, the clean coal |
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| project shall compare its core plant construction cost |
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| quote to the inflation-adjusted core plant construction |
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| cost ceiling and determine whether its core plant |
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| construction cost quote is in excess of the |
10 |
| inflation-adjusted core plant construction cost ceiling. |
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| (2) If a clean coal project determines that its core |
12 |
| plant construction cost quote is in excess of the |
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| inflation-adjusted core plant construction cost ceiling, |
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| then the clean coal project shall file with the Commission |
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| a pleading summarizing its determination that its core |
16 |
| plant construction cost quote is in excess of the |
17 |
| inflation-adjusted core plant construction cost ceiling |
18 |
| and any calculations and work papers related to such |
19 |
| determination. |
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| (3) Upon receipt of a filing pursuant to Section 21-145 |
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| of this Article, the Commission shall promptly commence an |
22 |
| investigation pursuant to Article X of this Act to |
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| determine whether it is in the public interest for the |
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| clean coal project to be constructed given the |
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| determination that the core plant construction cost quote |
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| is in excess of the inflation-adjusted core plant |
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LRB095 10034 MJR 33385 a |
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| construction cost ceiling. The Commission shall make such |
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| public interest determination after hearing evidence |
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| limited to the issue of whether the purposes of the Clean |
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| Coal Development Program, as set forth in Section 21-105 of |
5 |
| this Article, shall be frustrated by the fact that the core |
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| plant construction cost quote for the applicable clean coal |
7 |
| project is in excess of the inflation-adjusted core plant |
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| construction cost ceiling. Any proceeding initiated by the |
9 |
| Commission pursuant to this Section may not exceed 120 days |
10 |
| in length. |
11 |
| (4) If, and only if, the Commission determines that the |
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| purposes of the Clean Coal Development Program will be |
13 |
| frustrated by the fact that the core plant construction |
14 |
| cost quote for a given clean coal project is in excess of |
15 |
| the inflation-adjusted core plant construction cost |
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| ceiling, then each participating electric utility that |
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| executed a service agreement with such clean coal project |
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| shall enforce its right to terminate such service agreement |
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| and pay the clean coal project as a termination fee the |
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| cost incurred by the clean coal project to obtain the core |
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| plant construction cost quote. In the event that more than |
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| one participating electric utility has executed a service |
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| agreement with such clean coal project, then the |
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| termination fee applicable to each service agreement shall |
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| be allocated in proportion to the amount of capacity |
26 |
| contracted for relative to the total capacity contracted |
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| for pursuant to all service agreements applicable to such |
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| clean coal project. The aggregate of termination fees paid |
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| by participating electric utilities to a clean coal project |
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| pursuant to this Section shall not exceed $1.
|
5 |
| (5) If a participating electric utility terminates a |
6 |
| service agreement as contemplated in Section 21-145 of this |
7 |
| Article, the participating electric utility shall treat |
8 |
| the termination fee paid to the clean coal project as an |
9 |
| accrued CCDP expense and recover such termination fee |
10 |
| pursuant to the tariff rider set forth in Section 21-130 of |
11 |
| this Article.
|
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| (220 ILCS 5/21-150 new)
|
13 |
| Sec. 21-150. Participation by a FutureGen demonstration |
14 |
| project. A FutureGen demonstration project may elect to be |
15 |
| deemed a clean coal project and participate in the Clean Coal |
16 |
| Development Program as set forth in this Article and as |
17 |
| modified by this Section. A FutureGen demonstration project |
18 |
| shall be deemed to have made such election on the date that the |
19 |
| FutureGen demonstration project files its wholesale sales |
20 |
| tariff at FERC pursuant to Section 205 of the Federal Power |
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| Act. |
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| No participating electric utility shall enter into a |
23 |
| service agreement with a FutureGen demonstration project if the |
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| amount of capacity to be purchased under such service |
25 |
| agreement, together with the aggregate amount of all capacity |
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| purchased under other service agreements executed previously |
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| or contemporaneously by the participating electric utility |
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| with any FutureGen demonstration project, exceeds 1% of the |
4 |
| participating electric utility's coincident peak delivery |
5 |
| services load, expressed in kilowatts, for the calendar year |
6 |
| immediately preceding the effective date of this Article. |
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| Subsections 21-120(1) (other than Subsection 21-120(1)(D)) |
8 |
| and 21-120(2) shall not apply to the wholesale sales tariff of |
9 |
| a FutureGen demonstration project that elects to be deemed a |
10 |
| clean coal project. Subsection 21-120(1)(D) and Section 145 |
11 |
| shall apply to a FutureGen demonstration project. With respect |
12 |
| to a FutureGen demonstration project that elects to be deemed a |
13 |
| clean coal project, it is the intent of the General Assembly |
14 |
| that the wholesale sales tariff of a FutureGen demonstration |
15 |
| project recognize that (i) the FutureGen demonstration project |
16 |
| may be operated based on objectives different from a baseload |
17 |
| generating plant, and (ii) a FutureGen demonstration project is |
18 |
| likely to be funded by government appropriations and |
19 |
| contributions from non-profit organizations for which |
20 |
| traditional ratemaking concepts such as return on invested |
21 |
| capital are not appropriate.
|
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| Section 99. Effective date. This Act takes effect upon |
23 |
| becoming law.".
|