SB1104eng 102ND GENERAL ASSEMBLY

SB1104 Engrossed LRB102 04897 BMS 14916 b

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Illinois Regional Generation Reliability Task Force Act.

Section 5. Findings. The General Assembly hereby finds, determines, and declares the following:

(1) The reliability of the Illinois electricity grid is critically important to the consumers, businesses, and all residents of Illinois and should not be compromised.

(2) Illinois has taken definitive steps toward redefining the generation mix in Illinois.

(3) the Midcontinent Independent System Operator, Inc. ("MISO") is an independent, not-for-profit, member-based organization responsible for operating the power grid across 15 states and the Canadian province of Manitoba, serving 42 million people.

(4) The PJM Interconnection LLC ("PJM"), is an independent not-for-profit, member-based Regional Transmission Organization ("RTO") that manages the operations, supply, and movement of power across 13 states and the District of Columbia, serving 65 million people.

(5) Illinois is served by both PJM and MISO, which collectively ensure that sufficient electric power generation supply and transmission are available to meet electric demand every minute of every day for over 107 million people across 28 states and 2 countries. Wholesale electric power generation is regulated by the Federal Energy Regulatory Commission due to the interstate and international nature of the transmission grid operated by PJM and MISO. As such, Illinois policy changes at the State level can affect the reliability, availability, and cost of power for seniors, families, businesses, municipalities, universities, and hospitals across the region.

(6) When natural disasters occur, such as ice storms, blizzards, tornadoes, and hurricanes, states participating in PJM and MISO have provided support to each other through power generation restoration missions. The inability to deliver power generation in critical times can have a huge economic impact and can also result in death across the PJM and MISO Regional Transmission Organizations.

(7) PJM and MISO have multiple markets in which power suppliers participate. The Capacity Market, Day-Ahead Energy Market, and Frequency Market are markets that power generators participate in to ensure over 107 million people across 28 states and 2 countries receive the right amount of electricity every minute of every day.

(A) Capacity markets are used in wholesale electricity markets to pay resources for being available to meet peak electricity demand. Capacity is not actual electricity, but rather the ability to produce electricity when called upon. Capacity is procured, sometimes multiple years in advance of when it is needed, based on projections of future energy needs using historical demand requirements.

(B) The Day-Ahead Energy Market lets market participants commit to buy or sell wholesale electricity one day before the power is needed, to help avoid price volatility. The Real-Time Energy Market balances the differences between day-ahead commitments and the actual real-time demand for and production of electricity.

(C) The power grid operates, and shall be maintained, at a constant frequency of 60 hertz. Significant deviation from this level can result in catastrophic damage to the power grid as well as household appliances. Frequency is maintained when electric generators automatically add or remove power from the grid. For example, a large power plant suddenly tripping offline reduces the total amount of available kinetic energy, leading the rotating generators on the system to start rotating less rapidly and thereby decreasing the alternating current frequency across the grid system. Since a generator turbine's rotational velocity is directly coupled to the grid frequency, the generator's control systems can sense this frequency decline as an indicator of insufficient energy provision. The control system within each power plant, which usually has been in the form of a governor, can then automatically increase the plant's power output. This process is autonomous because the governor does not have to wait for a central dispatcher to send a signal, thus bypassing communications system delays.

(8) The shifting generation mix in PJM and MISO will require optimum performance and an increased focus on the need to retain reliability as certain existing generators shut down operations and new, intermittent generators are added. Additionally, increased power generation consumption due to increased electric vehicles and charging stations, along with increased electrification of building heating needs will undoubtedly place greater demand on the power system.

(9) Illinois has a responsibility to ensure the performance of Illinois and Regional Power Grids are safe, reliable, and maintain the necessary capacity to meet the power demands of Illinois residents. Additionally, Illinois has an obligation to do its part to ensure the regional power grid is safe and reliable for its partnering states. As part of the regional power grid, Illinois should be concerned that shuttered facilities in Illinois will be replaced by higher cost, higher emissions resources from other states.

Section 10. Illinois Regional Generation Reliability Task Force.

(a) The Illinois Regional Generation Reliability Task Force is created. The Task Force shall monitor the reliability of the Illinois power grid. The Task Force should consider the present and future needs of Illinois consumers while simultaneously addressing any issues related to the performance and reliability of power generation and transmission and being mindful of the ultimate cost to consumers.

(b) The duties and responsibilities of the Task Force include the following:

(1) Identifying and assessing policies, rules, and laws that have the potential to significantly affect the reliability of the Illinois and regional power grids.

(2) Developing a set of standards and conditions that will ensure optimal performance of the Illinois and regional power grids based on new and emerging technologies.

(3) Identifying opportunities to improve the Illinois power supply mix through existing and new laws to ensure continued power reliability at affordable rates for Illinois consumers.

(4) Compiling research and best practices from other states and countries on how to deploy technology to benefit the performance and reliability of the power grid.

(5) Developing tools to assess the impact of proposed policies and evaluate their costs and benefits on families, employers, the public, Illinois, and other states as part of the Illinois and regional power grids.

(6) Identifying data, reports, and relevant information on the performance of the power grid to ensure reliability and that pricing of power generation is in the best interest of families, businesses, and communities in Illinois.

(7) Providing its findings and recommendations for policy changes and any revisions to policies, rules, and laws that will facilitate the stability and reliability of the Illinois and regional power grids on an annual basis to the General Assembly.

(8) Developing and proposing legislative concepts to ensure the future stability and reliability of the power grid.

Section 15. Membership; meetings.

(a) The members of the Illinois Regional Generation Reliability Task Force shall be composed of the following:

(1) three Senators appointed by the President of the Senate, one of whom shall be designated by the President as the co-chair of the Task Force;

(2) three Representatives appointed by the Speaker of the House of Representatives, one of whom shall be designated by the Speaker as the co-chair of the Task Force;

(3) two Senators appointed by the Minority Leader of the Senate;

(4) two Representatives appointed by the Minority Leader of the House of Representatives;

(5) one member appointed by the Governor whose sole role is dedicated to energy policy for the State;

(6) one member of a State or local labor organization appointed by the President of the Senate;

(7) one member of a State or local labor organization appointed by the Speaker of the House of Representatives;

(8) one representative from PJM RTO, designated by PJM;

(9) one representative from the PJM Independent Market Monitor organization, designated by the PJM Independent Market Monitor organization;

(10) one representative from MISO RTO, designated by MISO;

(11) one representative from the MISO Independent Market Monitor organization, designated by the MISO Independent Market Monitor organization;

(12) six representatives from 6 different power generation companies that operate in the PJM or MISO regional transmission organization, 2 appointed by the President of the Senate, 2 appointed by the Speaker of the House of Representatives, one appointed by the Minority Leader in the Senate, and one appointed by the Minority Leader in the House of Representatives;

(13) one representative from a statewide organization representing retail merchants, appointed by the President of the Senate;

(14) one representative from a statewide organization representing manufacturers, appointed by the Speaker of the House of Representatives;

(15) one representative from a statewide organization representing retired people, appointed by the Speaker of the House of Representatives;

(16) one representative from a minority-owned geothermal group, appointed by the President of the Senate;

(17) one representative from a statewide organization representing business, appointed by the Speaker of the House of Representatives;

(18) two representatives from environmental law groups, one appointed by the President of the Senate and one appointed by the Speaker of the House of Representatives;

(19) the Director of the Illinois Power Agency, or the Director's designee;

(20) the Director of the Environmental Protection Agency, or the Director's designee; and

(21) the Chair of the Illinois Commerce Commission, or the Chair's designee.

(b) Appointments for the Task Force shall be made by July 1, 2022. The Task Force shall hold 7 meetings annually, either remotely or in person, and the first meeting shall be held within 30 days after appointments are made.

(c) Members of the Task Force shall serve without compensation.

(d) The Illinois Commerce Commission shall provide administrative support to the Task Force in conjunction with the Independent Market Monitors for the MISO and PJM Regional Transmission Organizations.

Section 20. Annual report.

(a) The Illinois Regional Generation Reliability Task Force shall issue an annual report based upon its findings in the course of performing its duties and responsibilities. The report shall be written by the administrative staff of the Task Force and with staff assistance from the Independent Market Monitors from the MISO and PJM Regional Transmission Organizations.

(b) The Illinois Regional Generation Reliability Task Force shall submit its first report on February 1, 2023, and each February 1 thereafter to the General Assembly upon the completion of its meeting schedule and shall continue to issue annual reports each year.

Section 99. Effective date. This Act takes effect upon becoming law.