Full Text of SB2660 96th General Assembly
SB2660sam001 96TH GENERAL ASSEMBLY
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Sen. James F. Clayborne, Jr.
Filed: 3/16/2010
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| AMENDMENT TO SENATE BILL 2660
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| AMENDMENT NO. ______. Amend Senate Bill 2660 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Public Utilities Act is amended by changing | 5 |
| Section 9-220 as follows: | 6 |
| (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220) | 7 |
| Sec. 9-220. Rate changes based on changes in fuel costs. | 8 |
| (a) Notwithstanding the provisions of Section 9-201, the
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| Commission may authorize the increase or decrease of rates and | 10 |
| charges
based upon changes in the cost of fuel used in the | 11 |
| generation or production
of electric power, changes in the cost | 12 |
| of purchased power, or changes in
the cost of purchased gas | 13 |
| through the application of fuel adjustment
clauses or purchased | 14 |
| gas adjustment clauses. The Commission may also
authorize the | 15 |
| increase or decrease of rates and charges based upon | 16 |
| expenditures
or revenues resulting from the purchase or sale of |
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| emission allowances created
under the federal Clean Air Act | 2 |
| Amendments of 1990,
through such fuel adjustment clauses, as a | 3 |
| cost of fuel. For the purposes of
this paragraph, cost of fuel | 4 |
| used in the generation or production of electric
power shall | 5 |
| include the amount of any fees paid by the utility for the
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| implementation and operation of a process for the | 7 |
| desulfurization of the
flue gas when burning high sulfur coal | 8 |
| at any location within the State of
Illinois irrespective of | 9 |
| the attainment status designation of such
location; but shall | 10 |
| not include transportation costs
of coal
(i) except to the | 11 |
| extent that for contracts entered into on
and after the | 12 |
| effective date of this amendatory Act of 1997,
the cost of the | 13 |
| coal, including transportation costs,
constitutes the lowest | 14 |
| cost for adequate and reliable fuel
supply reasonably available | 15 |
| to the public utility in
comparison to the cost, including | 16 |
| transportation costs, of
other adequate and reliable sources of | 17 |
| fuel supply reasonably
available to the public utility, or (ii)
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| except as otherwise provided in the next 3 sentences of this | 19 |
| paragraph.
Such costs of fuel
shall, when requested by a | 20 |
| utility or at the conclusion of the utility's
next general | 21 |
| electric rate proceeding, whichever shall first occur, include
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| transportation costs of coal purchased under existing coal | 23 |
| purchase
contracts. For purposes of this paragraph "existing | 24 |
| coal purchase
contracts" means contracts for the purchase of | 25 |
| coal in effect on the
effective date of this amendatory Act of | 26 |
| 1991, as such contracts may
thereafter be amended, but only to |
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| the extent that any such amendment does
not increase the | 2 |
| aggregate quantity of coal to be purchased under such
contract.
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| Nothing herein shall authorize an electric utility
to recover | 4 |
| through its fuel adjustment clause any amounts of
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| transportation costs of coal that were included in the revenue
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| requirement used to set base rates in its most recent general
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| rate proceeding.
Cost shall be based upon uniformly applied | 8 |
| accounting
principles. Annually, the Commission shall initiate | 9 |
| public hearings to
determine whether the clauses reflect actual | 10 |
| costs of fuel, gas, power, or
coal transportation purchased to | 11 |
| determine whether such purchases were
prudent, and to reconcile | 12 |
| any amounts collected with the actual costs of
fuel, power, | 13 |
| gas, or coal transportation prudently purchased. In each such
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| proceeding, the burden of proof shall be upon the utility to | 15 |
| establish the
prudence of its cost of fuel, power, gas, or coal
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| transportation purchases
and costs.
The Commission shall
issue | 17 |
| its final order in each such annual proceeding for an
electric | 18 |
| utility by December 31 of the year immediately
following the | 19 |
| year to which the proceeding pertains, provided,
that the | 20 |
| Commission shall issue its final order with respect
to such | 21 |
| annual proceeding for the years 1996 and earlier by December | 22 |
| 31, 1998. | 23 |
| (b) A public utility providing electric service, other than | 24 |
| a public utility
described in subsections (e) or (f) of this | 25 |
| Section, may at
any time during the mandatory transition period | 26 |
| file with the
Commission proposed tariff sheets that eliminate |
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| the public
utility's fuel adjustment clause and adjust the | 2 |
| public
utility's base rate tariffs by the amount necessary for | 3 |
| the
base fuel component of the base rates to recover the public
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| utility's average fuel and power supply costs per kilowatt-hour | 5 |
| for the 2
most recent years for which the Commission
has issued | 6 |
| final orders in annual proceedings pursuant to
subsection (a), | 7 |
| where the average fuel and power supply costs
per kilowatt-hour | 8 |
| shall be calculated as the sum of the public
utility's prudent | 9 |
| and allowable fuel and power supply costs as
found by the | 10 |
| Commission in the 2 proceedings divided by the
public utility's | 11 |
| actual jurisdictional kilowatt-hour sales for
those 2 years. | 12 |
| Notwithstanding any contrary or inconsistent
provisions in | 13 |
| Section 9-201 of this Act, in subsection (a) of
this Section or | 14 |
| in any rules or regulations promulgated by the
Commission | 15 |
| pursuant to subsection (g) of this Section, the
Commission | 16 |
| shall review and shall by order approve, or approve
as | 17 |
| modified, the proposed tariff sheets within 60 days after
the | 18 |
| date of the public utility's filing. The Commission may
modify | 19 |
| the public utility's proposed tariff sheets only to the
extent | 20 |
| the Commission finds necessary to achieve conformance
to the | 21 |
| requirements of this subsection (b). During the 5
years | 22 |
| following the date of the Commission's order, but in any
event | 23 |
| no earlier than January 1, 2007, a public utility whose
fuel | 24 |
| adjustment clause has been eliminated pursuant to this
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| subsection shall not file proposed tariff sheets seeking, or
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| otherwise petition the Commission for, reinstatement of a fuel
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| adjustment clause. | 2 |
| (c) Notwithstanding any contrary or inconsistent
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| provisions in Section 9-201 of this Act, in subsection (a) of
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| this Section or in any rules or regulations promulgated by the
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| Commission pursuant to subsection (g) of this Section, a
public | 6 |
| utility providing electric service, other than a public utility
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| described
in subsection (e) or (f) of this Section, may at any | 8 |
| time
during the mandatory transition period file with the
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| Commission proposed tariff sheets that establish the rate per
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| kilowatt-hour to be applied pursuant to the public utility's
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| fuel adjustment clause at the average value for such rate
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| during the preceding 24 months, provided that such average
rate | 13 |
| results in a credit to customers' bills, without making
any | 14 |
| revisions to the public utility's base rate tariffs. The
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| proposed tariff sheets shall establish the fuel adjustment
rate | 16 |
| for a specific time period of at least 3 years but not
more | 17 |
| than 5 years, provided that the terms and conditions for
any | 18 |
| reinstatement earlier than 5 years shall be set forth in
the | 19 |
| proposed tariff sheets and subject to modification or
approval | 20 |
| by the Commission. The Commission shall review and
shall by | 21 |
| order approve the proposed tariff sheets if it finds
that the | 22 |
| requirements of this subsection are met. The
Commission shall | 23 |
| not conduct the annual hearings specified in the
last 3 | 24 |
| sentences of subsection (a) of this Section for the
utility for | 25 |
| the period that the factor established pursuant to
this | 26 |
| subsection is in effect. |
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| (d) A public utility providing electric service, or a | 2 |
| public utility
providing gas service
may file with the | 3 |
| Commission proposed tariff sheets that
eliminate the public | 4 |
| utility's fuel or purchased gas
adjustment clause and adjust | 5 |
| the public utility's base rate
tariffs to provide for recovery | 6 |
| of power supply costs or gas
supply costs that would have been | 7 |
| recovered through such
clause; provided, that the provisions of | 8 |
| this subsection (d) shall not be
available to a public utility | 9 |
| described in subsections (e) or (f) of this
Section to | 10 |
| eliminate its fuel adjustment clause. Notwithstanding any | 11 |
| contrary
or inconsistent
provisions in Section 9-201 of this | 12 |
| Act, in subsection (a) of
this Section, or in any rules or | 13 |
| regulations promulgated by
the Commission pursuant to | 14 |
| subsection (g) of this Section, the
Commission shall review and | 15 |
| shall by order approve, or approve
as modified in the | 16 |
| Commission's order, the proposed tariff
sheets within 240 days | 17 |
| after the date of the public utility's
filing. The Commission's | 18 |
| order shall approve rates and
charges that the Commission, | 19 |
| based on information in the
public utility's filing or on the | 20 |
| record if a hearing is held
by the Commission, finds will | 21 |
| recover the reasonable, prudent
and necessary jurisdictional | 22 |
| power supply costs or gas supply
costs incurred or to be | 23 |
| incurred by the public utility during
a 12 month period found | 24 |
| by the Commission to be appropriate
for these purposes, | 25 |
| provided, that such period shall be either
(i) a 12 month | 26 |
| historical period occurring during the 15
months ending on the |
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| date of the public utility's filing, or
(ii) a 12 month future | 2 |
| period ending no later than 15 months
following the date of the | 3 |
| public utility's filing. The public
utility shall include with | 4 |
| its tariff filing information
showing both (1) its actual | 5 |
| jurisdictional power supply costs
or gas supply costs for a 12 | 6 |
| month historical period
conforming to (i) above and (2) its | 7 |
| projected jurisdictional
power supply costs or gas supply costs | 8 |
| for a future 12 month
period conforming to (ii) above. If the | 9 |
| Commission's order
requires modifications in the tariff sheets | 10 |
| filed by the
public utility, the public utility shall have 7 | 11 |
| days following
the date of the order to notify the Commission | 12 |
| whether the
public utility will implement the modified tariffs | 13 |
| or elect to
continue its fuel or purchased gas adjustment | 14 |
| clause in force
as though no order had been entered. The | 15 |
| Commission's order
shall provide for any reconciliation of | 16 |
| power supply costs or
gas supply costs, as the case may be, and | 17 |
| associated revenues
through the date that the public utility's | 18 |
| fuel or purchased
gas adjustment clause is eliminated. During | 19 |
| the 5 years
following the date of the Commission's order, a | 20 |
| public utility
whose fuel or purchased gas adjustment clause | 21 |
| has been
eliminated pursuant to this subsection shall not file | 22 |
| proposed
tariff sheets seeking, or otherwise petition the | 23 |
| Commission
for, reinstatement or adoption of a fuel or | 24 |
| purchased gas
adjustment clause. Nothing in this subsection (d) | 25 |
| shall be
construed as limiting the Commission's authority to | 26 |
| eliminate
a public utility's fuel adjustment clause or |
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| purchased gas
adjustment clause in accordance with any other | 2 |
| applicable
provisions of this Act. | 3 |
| (e) Notwithstanding any contrary or inconsistent | 4 |
| provisions in
Section 9-201 of this Act, in subsection (a) of | 5 |
| this Section, or in
any rules promulgated by the Commission | 6 |
| pursuant
to subsection (g) of this Section, a public utility | 7 |
| providing
electric service to more than 1,000,000 customers in | 8 |
| this State may, within the
first 6 months after the
effective | 9 |
| date of this amendatory Act of 1997, file with the
Commission | 10 |
| proposed tariff sheets that eliminate, effective
January 1, | 11 |
| 1997, the public utility's fuel adjustment clause
without | 12 |
| adjusting its base rates, and such tariff sheets shall be
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| effective upon filing. To the extent the application of the | 14 |
| fuel
adjustment clause had resulted in net charges to customers | 15 |
| after
January 1, 1997, the utility shall also file a tariff | 16 |
| sheet that
provides for a refund stated on a per kilowatt-hour | 17 |
| basis of such
charges over a period not to exceed 6 months; | 18 |
| provided
however, that such refund shall not include the | 19 |
| proportional
amounts of taxes paid under the Use Tax Act, | 20 |
| Service Use Tax Act,
Service Occupation Tax Act, and Retailers' | 21 |
| Occupation Tax Act on
fuel used in generation. The Commission | 22 |
| shall issue an order
within 45 days after the date of the | 23 |
| public utility's filing
approving or approving as modified such | 24 |
| tariff sheet. If the fuel
adjustment clause is eliminated | 25 |
| pursuant to this subsection, the
Commission shall not conduct | 26 |
| the annual hearings specified in the
last 3 sentences of |
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| subsection (a) of this Section for the
utility for any period | 2 |
| after December 31, 1996 and prior to any
reinstatement of such | 3 |
| clause. A public utility whose fuel
adjustment clause has been | 4 |
| eliminated pursuant to this subsection
shall not file a | 5 |
| proposed tariff sheet seeking, or otherwise
petition the | 6 |
| Commission for, reinstatement of the fuel adjustment
clause | 7 |
| prior to January 1, 2007. | 8 |
| (f) Notwithstanding any contrary or inconsistent | 9 |
| provisions in Section
9-201 of this Act, in subsection (a) of | 10 |
| this Section, or in any rules or
regulations promulgated by the | 11 |
| Commission pursuant to subsection (g) of this
Section, a public | 12 |
| utility providing electric service to more than 500,000
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| customers but fewer than 1,000,000 customers in this State may, | 14 |
| within the
first
6 months after the effective date of this | 15 |
| amendatory Act of 1997, file with the
Commission proposed | 16 |
| tariff sheets that eliminate, effective January 1, 1997,
the | 17 |
| public utility's fuel adjustment clause and adjust its base | 18 |
| rates by the
amount necessary for the base fuel component of | 19 |
| the base rates to recover
91% of the public utility's average | 20 |
| fuel and power supply costs for the 2 most
recent years for | 21 |
| which the Commission, as of January 1, 1997, has issued final
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| orders in annual proceedings pursuant to subsection (a), where | 23 |
| the average fuel
and power supply costs per kilowatt-hour shall | 24 |
| be calculated as the sum of the
public utility's prudent and | 25 |
| allowable fuel and power supply costs as found by
the | 26 |
| Commission in the 2 proceedings divided by the public utility's |
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| actual
jurisdictional kilowatt-hour sales for those 2 years, | 2 |
| provided, that such
tariff sheets shall be effective upon | 3 |
| filing. To the extent the application of
the fuel adjustment | 4 |
| clause had resulted in net charges to customers after
January | 5 |
| 1, 1997, the utility shall also file a tariff sheet that | 6 |
| provides for a
refund stated on a per kilowatt-hour basis of | 7 |
| such charges over a period not to
exceed 6 months. Provided | 8 |
| however, that such refund shall not include the
proportional | 9 |
| amounts of taxes paid under the Use Tax Act, Service Use Tax | 10 |
| Act,
Service Occupation Tax Act, and Retailers' Occupation Tax | 11 |
| Act on fuel used in
generation. The Commission shall issue an | 12 |
| order within 45 days after the date
of the public utility's | 13 |
| filing approving or approving as modified such tariff
sheet. If | 14 |
| the fuel adjustment clause is eliminated pursuant to this
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| subsection, the Commission shall not conduct the annual | 16 |
| hearings specified in
the last 3 sentences of subsection (a) of | 17 |
| this Section for the utility for any
period after December 31, | 18 |
| 1996 and prior to any reinstatement of such clause.
A public | 19 |
| utility whose fuel adjustment clause has been eliminated | 20 |
| pursuant to
this subsection shall not file a proposed tariff | 21 |
| sheet seeking, or otherwise
petition the Commission for, | 22 |
| reinstatement of the fuel adjustment clause prior
to January 1, | 23 |
| 2007. | 24 |
| (g) The Commission shall have authority to promulgate rules | 25 |
| and
regulations to
carry out the provisions of this Section. | 26 |
| (h) Any Illinois gas utility may enter into a contract for |
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| up to 10 20 years of supply with any company for the purchase | 2 |
| of substitute natural gas (SNG) produced from coal through the | 3 |
| gasification process if the company has commenced construction | 4 |
| of a coal gasification facility by July 1, 2012 in Jefferson | 5 |
| County and commencement of construction shall mean that | 6 |
| material physical site work has occurred, such as site clearing | 7 |
| and excavation, water runoff prevention, water retention | 8 |
| reservoir preparation, or foundation development 2010 . The | 9 |
| contract shall contain the following provisions cost for the | 10 |
| SNG is reasonable and prudent and recoverable through the | 11 |
| purchased gas adjustment clause for years one through 10 of the | 12 |
| contract if : (i) the only coal to be used in the gasification | 13 |
| process has high volatile bituminous rank and greater than 1.7 | 14 |
| pounds of sulfur per million Btu content; (ii) at the time the | 15 |
| contract term commences, the price per million Btu may does not | 16 |
| exceed $7.95 in 2008 dollars, adjusted annually based on the | 17 |
| change in the Annual Consumer Price Index for All Urban | 18 |
| Consumers for the Midwest Region as published in April by the | 19 |
| United States Department of Labor, Bureau of Labor Statistics | 20 |
| (or a suitable Consumer Price Index calculation if this | 21 |
| Consumer Price Index is not available) for the previous | 22 |
| calendar year; provided that the price per million Btu shall | 23 |
| not exceed $9.95 at any time during the contract; (iii) the | 24 |
| utility's aggregate long-term supply contracts for the | 25 |
| purchase of SNG does not exceed 25% of the annual system supply | 26 |
| requirements of the utility as of 2008 at the time the contract |
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| is entered into and the quantity of SNG supplied to a utility | 2 |
| may not exceed 16 million MMBtus; and (iv) contract costs | 3 |
| pursuant to subsection (h-10) of this Section shall not include | 4 |
| any lobbying expenses, chartable contributions, advertising, | 5 |
| organizational memberships, or marketing expenses by any one | 6 |
| producer may not exceed 20 billion cubic feet per year ; and | 7 |
| (iv) the contract is entered into within 120 days after the | 8 |
| effective date of this amendatory Act of the 95th General | 9 |
| Assembly and terminates no more than 20 years after the | 10 |
| commencement of the commercial production of SNG at the | 11 |
| facility. Contracts greater than 10 years shall provide that | 12 |
| if, at any time during supply years 11 through 20 of the | 13 |
| contract, the Commission determines that the cost for the | 14 |
| synthetic natural gas purchased under the contract during | 15 |
| supply years 11 through 20 is not reasonable and prudent, then | 16 |
| the company shall reimburse the utility for the difference | 17 |
| between the cost deemed reasonable and prudent by the | 18 |
| Commission and the cost imposed under the contract . | 19 |
| (h-5) The Attorney General, on behalf of the people of the | 20 |
| State of Illinois, may specifically enforce the requirements of | 21 |
| this subsection (h-5). All such contracts, regardless of | 22 |
| duration, shall require the owner of any facility supplying SNG | 23 |
| under the contract to provide documentation to the Commission | 24 |
| each year, starting in the facility's first year of commercial | 25 |
| operation, accurately reporting the quantity of carbon dioxide | 26 |
| emissions from the facility that have been captured and |
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| sequestered and reporting any quantities of carbon dioxide | 2 |
| released from the site or sites at which carbon dioxide | 3 |
| emissions were sequestered in prior years, based on continuous | 4 |
| monitoring of those sites. If, in any year, the owner of the | 5 |
| facility fails to demonstrate that the SNG facility captured | 6 |
| and sequestered at least 90% of the total carbon dioxide | 7 |
| emissions that the facility would otherwise emit or that | 8 |
| sequestration of emissions from prior years has failed, | 9 |
| resulting in the release of carbon dioxide into the atmosphere, | 10 |
| then the owner of the facility must offset excess emissions. | 11 |
| Any such carbon dioxide offsets must be permanent, additional, | 12 |
| verifiable, real, located within the State of Illinois, and | 13 |
| legally and practicably enforceable ; provided that the owner of | 14 |
| the facility shall not be obligated to acquire carbon dioxide | 15 |
| emission offsets to the extent that the cost of acquiring . The | 16 |
| costs of such offsets would shall not exceed $40 million in any | 17 |
| given year. No costs of any purchases of carbon offsets may be | 18 |
| recovered from a utility or its customers. All carbon offsets | 19 |
| purchased for this purpose must be permanently retired. In | 20 |
| addition, carbon dioxide emission credits equivalent to 50% of | 21 |
| the amount of credits associated with the required | 22 |
| sequestration of carbon dioxide from the facility must be | 23 |
| permanently retired. Compliance with the sequestration | 24 |
| requirements and the offset purchase requirements specified in | 25 |
| this subsection (h-5) (h) shall be assessed annually by an | 26 |
| independent expert retained by the owner of the SNG facility, |
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| with the advance written approval of the Attorney General. A An | 2 |
| SNG facility operating pursuant to this subsection (h-5) (h) | 3 |
| shall not forfeit its designation as a clean coal SNG facility | 4 |
| if the facility fails to fully comply with the applicable | 5 |
| carbon sequestration requirements in any given year, provided | 6 |
| the requisite offsets are purchased. However, the Attorney | 7 |
| General, on behalf of the People of the State of Illinois, may | 8 |
| specifically enforce the facility's sequestration | 9 |
| requirements. | 10 |
| (h-10) All contract costs for SNG incurred by any utility | 11 |
| are reasonable and prudent and recoverable through the | 12 |
| purchased gas adjustment clause and are not subject to review | 13 |
| or disallowance by the Commission. Contract costs are any costs | 14 |
| incurred by the utility under the terms of any contract that | 15 |
| incorporates the terms stated in subsection (h) of this Section | 16 |
| as confirmed in writing by the Illinois Power Agency as set | 17 |
| forth in subsection (h-20) of this Section, which confirmation | 18 |
| shall be deemed conclusive, or as a consequence of or condition | 19 |
| to its performance under the contract, including without | 20 |
| limitation, (i) amounts paid under the SNG contract; (ii) costs | 21 |
| incurred in its performance of any obligation, its resolution | 22 |
| of any claim or dispute, or its waiver, amendment, or | 23 |
| modification of any provision of such contract; and (iii) costs | 24 |
| of transportation, storage, and gas supply back-up services | 25 |
| purchased by a utility to receive, transport, and deliver SNG | 26 |
| pursuant to this subsection (h-10). Any contract, the terms of |
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| which have been confirmed in writing by the Illinois Power | 2 |
| Agency as set forth in subsection (h-20) of this Section and | 3 |
| the performance of the parties under such contract cannot be | 4 |
| grounds for challenging prudence or cost recovery by the | 5 |
| utility through the purchased gas adjustment clause, and in | 6 |
| such cases, the Commission is directed not to consider, and has | 7 |
| no authority to consider, any attempted challenges. | 8 |
| Transportation and storage services purchased from | 9 |
| interstate pipelines will be provided under federally approved | 10 |
| tariffs. Any storage and gas supply back-up services not | 11 |
| purchased under federally approved tariffs shall be purchased | 12 |
| under arms-length transactions and shall in no instance be | 13 |
| purchased from an affiliate of the Illinois utility making said | 14 |
| purchase. | 15 |
| The contracts entered into by Illinois gas utilities shall | 16 |
| provide that the utility retains the right to terminate the | 17 |
| contract without further obligation or liability to any party | 18 |
| if the contract has been impaired as a result of any | 19 |
| legislative, administrative, judicial, or other governmental | 20 |
| action that is taken that eliminates all or part of the | 21 |
| prudence protection of this subsection (h-10) or denies the | 22 |
| recoverability of all or part of the contract costs through the | 23 |
| purchased gas adjustment clause. Should any utility exercise | 24 |
| its right under this subsection (h-10) to terminate the | 25 |
| contract, all contract costs incurred prior to termination are | 26 |
| and will be deemed reasonable, prudent, and recoverable as and |
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| when incurred and not subject to review or disallowance by the | 2 |
| Commission. Any act of or by the State of Illinois, the | 3 |
| Illinois Finance Authority, or any agency or agents thereof | 4 |
| that gives rise to the right of a utility to terminate a | 5 |
| contract pursuant to this subsection (h-10) constitutes an | 6 |
| impermissible impairment in violation of subsection (h-25) of | 7 |
| this Section. | 8 |
| (h-15) With respect to each contract entered into by the | 9 |
| company with an Illinois utility in accordance with the terms | 10 |
| stated in subsection (h) of this Section, within 60 days | 11 |
| following the completion of purchases of SNG, the Illinois | 12 |
| Power Agency shall conduct an analysis to determine (i) the | 13 |
| average contract SNG cost, which shall be calculated as the | 14 |
| total amount paid to a company for SNG over the contract term, | 15 |
| plus the cost to the utility of required transportation, | 16 |
| storage, and gas supply back-up service costs for such SNG, | 17 |
| divided by the total number of MMBtus of SNG actually purchased | 18 |
| under the utility contract; (ii) the average natural gas | 19 |
| purchase cost, which shall be calculated as the total annual | 20 |
| supply costs paid for natural gas (excluding SNG) purchased by | 21 |
| such utility over the contract term, plus the cost of all | 22 |
| transportation, storage, and gas supply back-up service costs | 23 |
| for such natural gas (excluding such costs for SNG), divided by | 24 |
| the total number of MMBtus of natural gas (excluding SNG) | 25 |
| actually purchased by the utility during the contract term; | 26 |
| (iii) the cost differential, which shall be the difference |
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| between the average contract SNG cost and the average natural | 2 |
| gas purchase cost; and (iv) the revenue share target, which | 3 |
| shall be the cost differential multiplied by the total amount | 4 |
| of SNG purchased under such utility contract. If the average | 5 |
| contract SNG cost is equal to or less than the average natural | 6 |
| gas purchase cost, then the company shall have no further | 7 |
| obligation to the utility. If the average contract SNG cost for | 8 |
| such SNG contract is greater than the average natural gas | 9 |
| purchase cost for such utility, then the company shall market | 10 |
| the daily production of SNG and distribute on a monthly basis | 11 |
| 5% of amounts collected with respect to such future sales to | 12 |
| the utilities in proportion to each utility's SNG purchases | 13 |
| from the company during the term of the SNG contract to be used | 14 |
| to reduce the utility's natural gas costs through the purchased | 15 |
| gas adjustment clause; such payments to the utility shall | 16 |
| continue until such time as the sum of such payments equals the | 17 |
| revenue share target of that utility. The company or utilities | 18 |
| shall have no obligation to repay the revenue share target | 19 |
| except as provided for in this subsection (h-15). | 20 |
| (h-20) The General Assembly authorizes the Illinois | 21 |
| Finance Authority to issue bonds to the maximum extent | 22 |
| permitted to finance coal gasification facilities described in | 23 |
| this Section, which constitute both "industrial projects" | 24 |
| under of Article 801 of the Illinois Finance Authority Act and | 25 |
| "clean coal and energy projects" under Sections 825-65 through | 26 |
| 825-75 of the Illinois Finance Authority Act. The General |
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| Assembly further authorizes the Illinois Power Agency to become | 2 |
| party to agreements and take such actions as necessary to | 3 |
| enable the Illinois Power Agency or its designate to (i) review | 4 |
| and confirm in writing that the terms stated in subsection (h) | 5 |
| of this Section are incorporated in the SNG contract, and (ii) | 6 |
| conduct an analysis pursuant to subsection (h-15) of this | 7 |
| Section. Administrative costs incurred by the Illinois Finance | 8 |
| Authority and Illinois Power Agency in performance of this | 9 |
| subsection (h-20) shall be subject to reimbursement by the | 10 |
| company on terms as the Illinois Finance Authority, the | 11 |
| Illinois Power Agency, and the company may agree. The utility | 12 |
| and its customers shall have no obligation to reimburse the | 13 |
| company, the Illinois Finance Authority, or the Illinois Power | 14 |
| Agency for any such costs. | 15 |
| (h-25) The State of Illinois, including, but not limited | 16 |
| to, the Commission and the Illinois Finance Authority pledges, | 17 |
| covenants, and agrees with the company, Illinois utilities | 18 |
| entering into SNG contracts under or in accordance with this | 19 |
| Section, the Illinois Finance Authority, as well as the holders | 20 |
| of the bonds and notes issued by the Illinois Finance Authority | 21 |
| pursuant to Sections 801-40 and 825-65 through 825-75 of the | 22 |
| Illinois Finance Authority Act, which bonds or notes are | 23 |
| expected to be paid in whole or in part from revenues derived | 24 |
| from any contract entered into pursuant to or in accordance | 25 |
| with this Section, that, notwithstanding any change in law | 26 |
| subsequent to the making of such contract in accordance with |
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| this Section, until all of such bonds and notes have been paid | 2 |
| in full, the State will not take or permit any action to be | 3 |
| taken that would (i) impair any contract entered into pursuant | 4 |
| to this Section causing financial harm to the company, Illinois | 5 |
| utilities entering into SNG contracts under or in accordance | 6 |
| with this Section, the Illinois Finance Authority, or the | 7 |
| holders of the bonds and notes issued by the Illinois Finance | 8 |
| Authority pursuant to Sections 801-40 and 825-65 through 825-75 | 9 |
| of the Illinois Finance Authority Act, which bonds or notes are | 10 |
| expected to be paid in whole or in part from revenues derived | 11 |
| from any contract entered into pursuant to or in accordance | 12 |
| with this Section, including, without limitation, any action of | 13 |
| or by the State of Illinois, the Illinois Finance Authority, or | 14 |
| any agency or agents thereof which gives rise to the right of a | 15 |
| utility to terminate a contract as provided under subsection | 16 |
| (h-10) of this Section, (ii) limit, alter, or impair the | 17 |
| ability of the Illinois Finance Authority, the company, or any | 18 |
| Illinois utility to satisfy its contractual obligations, or in | 19 |
| the case of any utility, to continue purchasing SNG, pursuant | 20 |
| to or in accordance with this Section, or (iii) issue an order | 21 |
| requiring or authorizing the discontinuation of the merchant | 22 |
| function in a manner that limits, reduces, or impairs the value | 23 |
| of any contract hereunder over its full term. The Illinois | 24 |
| Finance Authority is authorized to include these pledges, | 25 |
| covenants, and agreements of the State of Illinois in any | 26 |
| contract with the holders of bonds or notes, which bonds or |
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| notes are expected to be paid in whole or in part from revenues | 2 |
| derived from any contract entered into pursuant to or in | 3 |
| accordance with this Section, the company, and Illinois gas | 4 |
| utilities. | 5 |
| (h-30) The company, Illinois utilities entering into SNG | 6 |
| contracts under or in accordance with this Section, as well as | 7 |
| the holders of the bonds and notes issued by the Illinois | 8 |
| Finance Authority pursuant to Sections 801-40 and 825-65 | 9 |
| through 825-75 of the Illinois Finance Authority Act, which | 10 |
| bonds or notes are expected to be paid in whole or in part from | 11 |
| revenues derived from any contract entered into pursuant to or | 12 |
| in accordance with this Section, may bring suits at law or | 13 |
| proceedings in equity to compel the performance and observance | 14 |
| by any person or by the State of Illinois, or the Illinois | 15 |
| Finance Authority or any of their respective agents, officers, | 16 |
| or employees of any contract, covenant, or pledge made in this | 17 |
| Section or entered into pursuant to or in accordance with this | 18 |
| Section and to compel such person or the State of Illinois or | 19 |
| the Illinois Finance Authority and any of their respective | 20 |
| agents, officers, or employees to perform any duties required | 21 |
| to be performed pursuant to any such contract, covenant, or | 22 |
| pledge, and to enjoin such person or the State of Illinois or | 23 |
| the Illinois Finance Authority and any of their respective | 24 |
| agents, officers, or employees from taking any action in | 25 |
| conflict with any such contract, covenant, or pledge. | 26 |
| (i) If a gas utility or an affiliate of a gas utility has |
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| an ownership interest in any entity that produces or sells | 2 |
| synthetic natural gas, Article VII of this Act shall apply.
| 3 |
| (Source: P.A. 94-63, eff. 6-21-05; 95-1027, eff. 6-1-09 .)
| 4 |
| Section 99. Effective date. This Act takes effect upon | 5 |
| becoming law.".
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