Full Text of HB2630 102nd General Assembly
HB2630ham001 102ND GENERAL ASSEMBLY | Rep. William Davis Filed: 3/12/2021
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| 1 | | AMENDMENT TO HOUSE BILL 2630
| 2 | | AMENDMENT NO. ______. Amend House Bill 2630 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Public Utilities Act is amended by | 5 | | changing Section 16-108 as follows:
| 6 | | (220 ILCS 5/16-108)
| 7 | | Sec. 16-108. Recovery of costs associated with the
| 8 | | provision of delivery and other services. | 9 | | (a) An electric utility shall file a delivery services
| 10 | | tariff with the Commission at least 210 days prior to the date
| 11 | | that it is required to begin offering such services pursuant
| 12 | | to this Act. An electric utility shall provide the components
| 13 | | of delivery services that are subject to the jurisdiction of
| 14 | | the Federal Energy Regulatory Commission at the same prices,
| 15 | | terms and conditions set forth in its applicable tariff as
| 16 | | approved or allowed into effect by that Commission. The
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| 1 | | Commission shall otherwise have the authority pursuant to | 2 | | Article IX to review,
approve, and modify the prices, terms | 3 | | and conditions of those
components of delivery services not | 4 | | subject to the
jurisdiction of the Federal Energy Regulatory | 5 | | Commission,
including the authority to determine the extent to | 6 | | which such
delivery services should be offered on an unbundled | 7 | | basis. In making any such
determination the Commission shall | 8 | | consider, at a minimum, the effect of
additional unbundling on | 9 | | (i) the objective of just and reasonable rates, (ii)
electric | 10 | | utility employees, and (iii) the development of competitive | 11 | | markets
for electric energy services in Illinois.
| 12 | | (b) The Commission shall enter an order approving, or
| 13 | | approving as modified, the delivery services tariff no later
| 14 | | than 30 days prior to the date on which the electric utility
| 15 | | must commence offering such services. The Commission may
| 16 | | subsequently modify such tariff pursuant to this Act.
| 17 | | (c) The electric utility's
tariffs shall define the | 18 | | classes of its customers for purposes
of delivery services | 19 | | charges. Delivery services shall be priced and made
available | 20 | | to all retail customers electing delivery services in each | 21 | | such class
on a nondiscriminatory basis regardless of whether | 22 | | the retail customer chooses
the electric utility, an affiliate | 23 | | of the electric utility, or another entity
as its supplier of | 24 | | electric power and energy. Charges for delivery services
shall | 25 | | be cost based,
and shall allow the electric utility to recover | 26 | | the costs of
providing delivery services through its charges |
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| 1 | | to its
delivery service customers that use the facilities and
| 2 | | services associated with such costs.
Such costs shall include | 3 | | the
costs of owning, operating and maintaining transmission | 4 | | and
distribution facilities. The Commission shall also be
| 5 | | authorized to consider whether, and if so to what extent, the
| 6 | | following costs are appropriately included in the electric
| 7 | | utility's delivery services rates: (i) the costs of that
| 8 | | portion of generation facilities used for the production and
| 9 | | absorption of reactive power in order that retail customers
| 10 | | located in the electric utility's service area can receive
| 11 | | electric power and energy from suppliers other than the
| 12 | | electric utility, and (ii) the costs associated with the use
| 13 | | and redispatch of generation facilities to mitigate
| 14 | | constraints on the transmission or distribution system in
| 15 | | order that retail customers located in the electric utility's
| 16 | | service area can receive electric power and energy from
| 17 | | suppliers other than the electric utility. Nothing in this
| 18 | | subsection shall be construed as directing the Commission to
| 19 | | allocate any of the costs described in (i) or (ii) that are
| 20 | | found to be appropriately included in the electric utility's
| 21 | | delivery services rates to any particular customer group or
| 22 | | geographic area in setting delivery services rates.
| 23 | | (d) The Commission shall establish charges, terms and
| 24 | | conditions for delivery services that are just and reasonable
| 25 | | and shall take into account customer impacts when establishing
| 26 | | such charges. In establishing charges, terms and conditions
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| 1 | | for delivery services, the Commission shall take into account
| 2 | | voltage level differences. A retail customer shall have the
| 3 | | option to request to purchase electric service at any delivery
| 4 | | service voltage reasonably and technically feasible from the
| 5 | | electric facilities serving that customer's premises provided
| 6 | | that there are no significant adverse impacts upon system
| 7 | | reliability or system efficiency. A retail customer shall
also | 8 | | have the option to request to purchase electric service
at any | 9 | | point of delivery that is reasonably and technically
feasible | 10 | | provided that there are no significant adverse
impacts on | 11 | | system reliability or efficiency. Such requests
shall not be | 12 | | unreasonably denied.
| 13 | | (e) Electric utilities shall recover the costs of
| 14 | | installing, operating or maintaining facilities for the
| 15 | | particular benefit of one or more delivery services customers,
| 16 | | including without limitation any costs incurred in complying
| 17 | | with a customer's request to be served at a different voltage
| 18 | | level, directly from the retail customer or customers for
| 19 | | whose benefit the costs were incurred, to the extent such
| 20 | | costs are not recovered through the charges referred to in
| 21 | | subsections (c) and (d) of this Section.
| 22 | | (f) An electric utility shall be entitled but not
required | 23 | | to implement transition charges in conjunction with
the | 24 | | offering of delivery services pursuant to Section 16-104.
If | 25 | | an electric utility implements transition charges, it shall | 26 | | implement such
charges for all delivery services customers and |
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| 1 | | for all customers described in
subsection (h), but shall not | 2 | | implement transition charges for power and
energy that a | 3 | | retail customer takes from cogeneration or self-generation
| 4 | | facilities located on that retail customer's premises, if such | 5 | | facilities meet
the following criteria:
| 6 | | (i) the cogeneration or self-generation facilities | 7 | | serve a single retail
customer and are located on that | 8 | | retail customer's premises (for purposes of
this | 9 | | subparagraph and subparagraph (ii), an industrial or | 10 | | manufacturing retail
customer and a third party contractor | 11 | | that is served by such industrial or
manufacturing | 12 | | customer through such retail customer's own electrical
| 13 | | distribution facilities under the circumstances described | 14 | | in subsection (vi) of
the definition of "alternative | 15 | | retail electric supplier" set forth in Section
16-102, | 16 | | shall be considered a single retail customer);
| 17 | | (ii) the cogeneration or self-generation facilities | 18 | | either (A) are sized
pursuant to generally accepted | 19 | | engineering standards for the retail customer's
electrical | 20 | | load at that premises (taking into account standby or | 21 | | other
reliability considerations related to that retail | 22 | | customer's operations at that
site) or (B) if the facility | 23 | | is a cogeneration facility located on the retail
| 24 | | customer's premises, the retail customer is the thermal | 25 | | host for that facility
and the facility has been designed | 26 | | to meet that retail customer's thermal
energy requirements |
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| 1 | | resulting in electrical output beyond that retail
| 2 | | customer's electrical demand at that premises, comply with | 3 | | the operating and
efficiency standards applicable to | 4 | | "qualifying facilities" specified in title
18 Code of | 5 | | Federal Regulations Section 292.205 as in effect on the | 6 | | effective
date of this amendatory Act of 1999;
| 7 | | (iii) the retail customer on whose premises the | 8 | | facilities are located
either has an exclusive right to | 9 | | receive, and corresponding obligation to pay
for, all of | 10 | | the electrical capacity of the facility, or in the case of | 11 | | a
cogeneration facility that has been designed to meet the | 12 | | retail customer's
thermal energy requirements at that | 13 | | premises, an identified amount of the
electrical capacity | 14 | | of the facility, over a minimum 5-year period; and
| 15 | | (iv) if the cogeneration facility is sized for the
| 16 | | retail customer's thermal load at that premises but | 17 | | exceeds the electrical
load, any sales of excess power or | 18 | | energy are made only at wholesale, are
subject to the | 19 | | jurisdiction of the Federal Energy Regulatory Commission, | 20 | | and
are not for the purpose of circumventing the | 21 | | provisions of this subsection (f).
| 22 | | If a generation facility located at a retail customer's | 23 | | premises does not meet
the above criteria, an electric utility | 24 | | implementing
transition charges shall implement a transition | 25 | | charge until December 31, 2006
for any power and energy taken | 26 | | by such retail customer from such facility as if
such power and |
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| 1 | | energy had been delivered by the electric utility. Provided,
| 2 | | however, that an industrial retail customer that is taking | 3 | | power from a
generation facility that does not meet the above | 4 | | criteria but that is located
on such customer's premises will | 5 | | not be subject to a transition charge for the
power and energy | 6 | | taken by such retail customer from such generation facility if
| 7 | | the facility does not serve any other retail customer and | 8 | | either was installed
on behalf of the customer and for its own | 9 | | use prior to January 1, 1997, or is
both predominantly fueled | 10 | | by byproducts of such customer's manufacturing
process at such | 11 | | premises and sells or offers an average of 300 megawatts or
| 12 | | more of electricity produced from such generation facility | 13 | | into the wholesale
market.
Such charges
shall be calculated as | 14 | | provided in Section
16-102, and shall be collected
on each | 15 | | kilowatt-hour delivered under a
delivery services tariff to a | 16 | | retail customer from the date
the customer first takes | 17 | | delivery services until December 31,
2006 except as provided | 18 | | in subsection (h) of this Section.
Provided, however, that an | 19 | | electric utility, other than an electric utility
providing | 20 | | service to at least 1,000,000 customers in this State on | 21 | | January 1,
1999,
shall be entitled to petition for
entry of an | 22 | | order by the Commission authorizing the electric utility to
| 23 | | implement transition charges for an additional period ending | 24 | | no later than
December 31, 2008. The electric utility shall | 25 | | file its petition with
supporting evidence no earlier than 16 | 26 | | months, and no later than 12 months,
prior to December 31, |
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| 1 | | 2006. The Commission shall hold a hearing on the
electric | 2 | | utility's petition and shall enter its order no later than 8 | 3 | | months
after the petition is filed. The Commission shall | 4 | | determine whether and to
what extent the electric utility | 5 | | shall be authorized to implement transition
charges for an | 6 | | additional period. The Commission may authorize the electric
| 7 | | utility to implement transition charges for some or all of the | 8 | | additional
period, and shall determine the mitigation factors | 9 | | to be used in implementing
such transition charges; provided, | 10 | | that the Commission shall not authorize
mitigation factors | 11 | | less than 110% of those in effect during the 12 months ended
| 12 | | December 31, 2006. In making its determination, the Commission | 13 | | shall consider
the following factors: the necessity to | 14 | | implement transition charges for an
additional period in order | 15 | | to maintain the financial integrity of the electric
utility; | 16 | | the prudence of the electric utility's actions in reducing its | 17 | | costs
since the effective date of this amendatory Act of 1997; | 18 | | the ability of the
electric utility to provide safe, adequate | 19 | | and reliable service to retail
customers in its service area; | 20 | | and the impact on competition of allowing the
electric utility | 21 | | to implement transition charges for the additional period.
| 22 | | (g) The electric utility shall file tariffs that
establish | 23 | | the transition charges to be paid by each class of
customers to | 24 | | the electric utility in conjunction with the
provision of | 25 | | delivery services. The electric utility's tariffs
shall define | 26 | | the classes of its customers for purposes of
calculating |
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| 1 | | transition charges. The electric utility's tariffs
shall | 2 | | provide for the calculation of transition charges on a
| 3 | | customer-specific basis for any retail customer whose average
| 4 | | monthly maximum electrical demand on the electric utility's
| 5 | | system during the 6 months with the customer's highest monthly
| 6 | | maximum electrical demands equals or exceeds 3.0 megawatts for
| 7 | | electric utilities having more than 1,000,000 customers, and
| 8 | | for other electric utilities for any customer that has an
| 9 | | average monthly maximum electrical demand on the electric
| 10 | | utility's system of one megawatt or more, and (A) for which
| 11 | | there exists data on the customer's usage during the 3 years
| 12 | | preceding the date that the customer became eligible to take
| 13 | | delivery services, or (B) for which there does not exist data
| 14 | | on the customer's usage during the 3 years preceding the date
| 15 | | that the customer became eligible to take delivery services,
| 16 | | if in the electric utility's reasonable judgment there exists
| 17 | | comparable usage information or a sufficient basis to develop
| 18 | | such information, and further provided that the electric
| 19 | | utility can require customers for which an individual
| 20 | | calculation is made to sign contracts that set forth the
| 21 | | transition charges to be paid by the customer to the electric
| 22 | | utility pursuant to the tariff.
| 23 | | (h) An electric utility shall also be entitled to file
| 24 | | tariffs that allow it to collect transition charges from
| 25 | | retail customers in the electric utility's service area that
| 26 | | do not take delivery services but that take electric power or
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| 1 | | energy from an alternative retail electric supplier or from an
| 2 | | electric utility other than the electric utility in whose
| 3 | | service area the customer is located. Such charges shall be
| 4 | | calculated, in accordance with the definition of transition
| 5 | | charges in Section 16-102, for the period of time that the
| 6 | | customer would be obligated to pay transition charges if it
| 7 | | were taking delivery services, except that no deduction for
| 8 | | delivery services revenues shall be made in such calculation,
| 9 | | and usage data from the customer's class shall be used where
| 10 | | historical usage data is not available for the individual
| 11 | | customer. The customer shall be obligated to pay such charges
| 12 | | on a lump sum basis on or before the date on which the
customer | 13 | | commences to take service from the alternative retail
electric | 14 | | supplier or other electric utility, provided, that
the | 15 | | electric utility in whose service area the customer is
located | 16 | | shall offer the customer the option of signing a
contract | 17 | | pursuant to which the customer pays such charges
ratably over | 18 | | the period in which the charges would otherwise
have applied.
| 19 | | (i) An electric utility shall be entitled to add to the
| 20 | | bills of delivery services customers charges pursuant to
| 21 | | Sections 9-221, 9-222 (except as provided in Section 9-222.1), | 22 | | and Section
16-114 of this Act, Section 5-5 of the Electricity | 23 | | Infrastructure Maintenance
Fee Law, Section 6-5 of the | 24 | | Renewable Energy, Energy Efficiency, and Coal
Resources | 25 | | Development Law of 1997, and Section 13 of the Energy | 26 | | Assistance Act.
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| 1 | | (j) If a retail customer that obtains electric power and
| 2 | | energy from cogeneration or self-generation facilities
| 3 | | installed for its own use on or before January 1, 1997,
| 4 | | subsequently takes service from an alternative retail electric
| 5 | | supplier or an electric utility other than the electric
| 6 | | utility in whose service area the customer is located for any
| 7 | | portion of the customer's electric power and energy
| 8 | | requirements formerly obtained from those facilities | 9 | | (including that amount
purchased from the utility in lieu of | 10 | | such generation and not as standby power
purchases, under a | 11 | | cogeneration displacement tariff in effect as of the
effective | 12 | | date of this amendatory Act of 1997), the
transition charges | 13 | | otherwise applicable pursuant to subsections (f), (g), or
(h) | 14 | | of this Section shall not be applicable
in any year to that | 15 | | portion of the customer's electric power
and energy | 16 | | requirements formerly obtained from those
facilities, | 17 | | provided, that for purposes of this subsection
(j), such | 18 | | portion shall not exceed the average number of
kilowatt-hours | 19 | | per year obtained from the cogeneration or
self-generation | 20 | | facilities during the 3 years prior to the
date on which the | 21 | | customer became eligible for delivery
services, except as | 22 | | provided in subsection (f) of Section
16-110.
| 23 | | (k) The electric utility shall be entitled to recover | 24 | | through tariffed charges all of the costs associated with the | 25 | | purchase of zero emission credits from zero emission | 26 | | facilities to meet the requirements of subsection (d-5) of |
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| 1 | | Section 1-75 of the Illinois Power Agency Act. Such costs | 2 | | shall include the costs of procuring the zero emission | 3 | | credits, as well as the reasonable costs that the utility | 4 | | incurs as part of the procurement processes and to implement | 5 | | and comply with plans and processes approved by the Commission | 6 | | under such subsection (d-5). The costs shall be allocated | 7 | | across all retail customers through a single, uniform cents | 8 | | per kilowatt-hour charge applicable to all retail customers, | 9 | | which shall appear as a separate line item on each customer's | 10 | | bill. Beginning June 1, 2017, the electric utility shall be | 11 | | entitled to recover through tariffed charges all of the costs | 12 | | associated with the purchase of renewable energy resources to | 13 | | meet the renewable energy resource standards of subsection (c) | 14 | | of Section 1-75 of the Illinois Power Agency Act, under | 15 | | procurement plans as approved in accordance with that Section | 16 | | and Section 16-111.5 of this Act. Such costs shall include the | 17 | | costs of procuring the renewable energy resources, as well as | 18 | | the reasonable costs that the utility incurs as part of the | 19 | | procurement processes and to implement and comply with plans | 20 | | and processes approved by the Commission under such Sections. | 21 | | The costs associated with the purchase of renewable energy | 22 | | resources shall be allocated across all retail customers in | 23 | | proportion to the amount of renewable energy resources the | 24 | | utility procures for such customers through a single, uniform | 25 | | cents per kilowatt-hour charge applicable to such retail | 26 | | customers, which shall appear as a separate line item on each |
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| 1 | | such customer's bill. | 2 | | Notwithstanding whether the Commission has approved the | 3 | | initial long-term renewable resources procurement plan as of | 4 | | June 1, 2017, an electric utility shall place new tariffed | 5 | | charges into effect beginning with the June 2017 monthly | 6 | | billing period, to the extent practicable, to begin recovering | 7 | | the costs of procuring renewable energy resources, as those | 8 | | charges are calculated under the limitations described in | 9 | | subparagraph (E) of paragraph (1) of subsection (c) of Section | 10 | | 1-75 of the Illinois Power Agency Act. Notwithstanding the | 11 | | date on which the utility places such new tariffed charges | 12 | | into effect, the utility shall be permitted to collect the | 13 | | charges under such tariff as if the tariff had been in effect | 14 | | beginning with the first day of the June 2017 monthly billing | 15 | | period. For the delivery years commencing June 1, 2017, June | 16 | | 1, 2018, and June 1, 2019, June 1, 2020, and June 1, 2021, the | 17 | | electric utility shall deposit into a separate interest | 18 | | bearing account of a financial institution the monies | 19 | | collected under the tariffed charges. Any interest earned | 20 | | shall be credited back to retail customers under the | 21 | | reconciliation proceeding provided for in this subsection (k), | 22 | | provided that the electric utility shall first be reimbursed | 23 | | from the interest for the administrative costs that it incurs | 24 | | to administer and manage the account. Any taxes due on the | 25 | | funds in the account, or interest earned on it, will be paid | 26 | | from the account or, if insufficient monies are available in |
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| 1 | | the account, from the monies collected under the tariffed | 2 | | charges to recover the costs of procuring renewable energy | 3 | | resources. Monies deposited in the account shall be subject to | 4 | | the review, reconciliation, and true-up process described in | 5 | | this subsection (k) that is applicable to the funds collected | 6 | | and costs incurred for the procurement of renewable energy | 7 | | resources. | 8 | | The electric utility shall be entitled to recover all of | 9 | | the costs identified in this subsection (k) through automatic | 10 | | adjustment clause tariffs applicable to all of the utility's | 11 | | retail customers that allow the electric utility to adjust its | 12 | | tariffed charges consistent with this subsection (k). The | 13 | | determination as to whether any excess funds were collected | 14 | | during a given delivery year for the purchase of renewable | 15 | | energy resources, and the crediting of any excess funds back | 16 | | to retail customers, shall not be made until after the close of | 17 | | the delivery year, which will ensure that the maximum amount | 18 | | of funds is available to implement the approved long-term | 19 | | renewable resources procurement plan during a given delivery | 20 | | year. The amount of excess funds credited back to retail | 21 | | customers shall be reduced by an amount equal to the payment | 22 | | obligations required by any contracts entered into by an | 23 | | electric utility under the Adjustable Block Program described | 24 | | in subparagraphs (K) through (M) of paragraph (1) of | 25 | | subsection (c) of Section 1-75 of the Illinois Power Agency | 26 | | Act or the Illinois Solar for All Program described in |
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| 1 | | subsection (b) of Section 1-56 of the Illinois Power Agency | 2 | | Act, even if such payments have not yet been made. The electric | 3 | | utility's collections under such automatic adjustment clause | 4 | | tariffs to recover the costs of renewable energy resources and | 5 | | zero emission credits from zero emission facilities shall be | 6 | | subject to separate annual review, reconciliation, and true-up | 7 | | against actual costs by the Commission under a procedure that | 8 | | shall be specified in the electric utility's automatic | 9 | | adjustment clause tariffs and that shall be approved by the | 10 | | Commission in connection with its approval of such tariffs. | 11 | | The procedure shall provide that any difference between the | 12 | | electric utility's collections under the automatic adjustment | 13 | | charges for an annual period and the electric utility's actual | 14 | | costs of renewable energy resources and zero emission credits | 15 | | from zero emission facilities for that same annual period | 16 | | shall be refunded to or collected from, as applicable, the | 17 | | electric utility's retail customers in subsequent periods. | 18 | | Nothing in this subsection (k) is intended to affect, | 19 | | limit, or change the right of the electric utility to recover | 20 | | the costs associated with the procurement of renewable energy | 21 | | resources for periods commencing before, on, or after June 1, | 22 | | 2017, as otherwise provided in the Illinois Power Agency Act. | 23 | | Notwithstanding anything to the contrary, the Commission | 24 | | shall not conduct an annual review, reconciliation, and | 25 | | true-up associated with renewable energy resources' | 26 | | collections and costs for the delivery years commencing June |
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| 1 | | 1, 2017, June 1, 2018, June 1, 2019, and June 1, 2020, June 1, | 2 | | 2021, and June 1, 2022, and shall instead conduct a single | 3 | | review, reconciliation, and true-up associated with renewable | 4 | | energy resources' collections and costs for the 6-year 4-year | 5 | | period beginning June 1, 2017 and ending May 31, 2023 2021 , | 6 | | provided that the review, reconciliation, and true-up shall | 7 | | not be initiated until after August 31, 2023 2021 . During the | 8 | | 6-year 4-year period, the utility shall be permitted to | 9 | | collect and retain funds under this subsection (k) and to | 10 | | purchase renewable energy resources under an approved | 11 | | long-term renewable resources procurement plan using those | 12 | | funds regardless of the delivery year in which the funds were | 13 | | collected during the 6-year 4-year period. | 14 | | If the amount of funds collected during the delivery year | 15 | | commencing June 1, 2017, exceeds the costs incurred during | 16 | | that delivery year, then up to half of this excess amount, as | 17 | | calculated on June 1, 2018, may be used to fund the programs | 18 | | under subsection (b) of Section 1-56 of the Illinois Power | 19 | | Agency Act in the same proportion the programs are funded | 20 | | under that subsection (b). However, any amount identified | 21 | | under this subsection (k) to fund programs under subsection | 22 | | (b) of Section 1-56 of the Illinois Power Agency Act shall be | 23 | | reduced if it exceeds the funding shortfall. For purposes of | 24 | | this Section, "funding shortfall" means the difference between | 25 | | $200,000,000 and the amount appropriated by the General | 26 | | Assembly to the Illinois Power Agency Renewable Energy |
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| 1 | | Resources Fund during the period that commences on the | 2 | | effective date of this amendatory act of the 99th General | 3 | | Assembly and ends on August 1, 2018. | 4 | | If the amount of funds collected during the delivery year | 5 | | commencing June 1, 2018, exceeds the costs incurred during | 6 | | that delivery year, then up to half of this excess amount, as | 7 | | calculated on June 1, 2019, may be used to fund the programs | 8 | | under subsection (b) of Section 1-56 of the Illinois Power | 9 | | Agency Act in the same proportion the programs are funded | 10 | | under that subsection (b). However, any amount identified | 11 | | under this subsection (k) to fund programs under subsection | 12 | | (b) of Section 1-56 of the Illinois Power Agency Act shall be | 13 | | reduced if it exceeds the funding shortfall. | 14 | | If the amount of funds collected during the delivery year | 15 | | commencing June 1, 2019, exceeds the costs incurred during | 16 | | that delivery year, then up to half of this excess amount, as | 17 | | calculated on June 1, 2020, may be used to fund the programs | 18 | | under subsection (b) of Section 1-56 of the Illinois Power | 19 | | Agency Act in the same proportion the programs are funded | 20 | | under that subsection (b). However, any amount identified | 21 | | under this subsection (k) to fund programs under subsection | 22 | | (b) of Section 1-56 of the Illinois Power Agency Act shall be | 23 | | reduced if it exceeds the funding shortfall. | 24 | | If the amount of funds collected during the delivery year | 25 | | commencing June 1, 2020, exceeds the costs incurred during | 26 | | that delivery year, then up to half of this excess amount, as |
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| 1 | | calculated on June 1, 2021, may be used to fund the programs | 2 | | under subsection (b) of Section 1-56 of the Illinois Power | 3 | | Agency Act in the same proportion the programs are funded | 4 | | under that subsection (b). However, any amount identified | 5 | | under this subsection (k) to fund programs under subsection | 6 | | (b) of Section 1-56 of the Illinois Power Agency Act shall be | 7 | | reduced if it exceeds the funding shortfall. | 8 | | If the amount of funds collected during the delivery year | 9 | | commencing June 1, 2021, exceeds the costs incurred during | 10 | | that delivery year, then up to half of this excess amount, as | 11 | | calculated on June 1, 2022, may be used to fund the programs | 12 | | under subsection (b) of Section 1-56 of the Illinois Power | 13 | | Agency Act in the same proportion the programs are funded | 14 | | under that subsection (b). However, any amount identified | 15 | | under this subsection (k) to fund programs under subsection | 16 | | (b) of Section 1-56 of the Illinois Power Agency Act shall be | 17 | | reduced if it exceeds the funding shortfall. | 18 | | The funding available under this subsection (k), if any, | 19 | | for the programs described under subsection (b) of Section | 20 | | 1-56 of the Illinois Power Agency Act shall not reduce the | 21 | | amount of funding for the programs described in subparagraph | 22 | | (O) of paragraph (1) of subsection (c) of Section 1-75 of the | 23 | | Illinois Power Agency Act. If funding is available under this | 24 | | subsection (k) for programs described under subsection (b) of | 25 | | Section 1-56 of the Illinois Power Agency Act, then the | 26 | | long-term renewable resources plan shall provide for the |
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| 1 | | Agency to procure contracts in an amount that does not exceed | 2 | | the funding, and the contracts approved by the Commission | 3 | | shall be executed by the applicable utility or utilities. | 4 | | (k-5)(1) The General Assembly finds and declares that | 5 | | maintaining continuity in funding for new renewable energy | 6 | | projects in Illinois is critical to preserving jobs, providing | 7 | | lower customer bills, helping to improve the economic | 8 | | well-being of the State of Illinois, and improving the | 9 | | environment. To preserve jobs and avoid industry disruption, | 10 | | this Act requires that the Illinois Power Agency update its | 11 | | long-term renewable energy resources procurement plan approved | 12 | | by the Commission pursuant to paragraph (5) of subsection (b) | 13 | | of Section 16-111.5 of the Public Utilities Act to leverage | 14 | | funds preserved for renewable energy resource procurement | 15 | | through this amendatory Act of the 102nd General Assembly. | 16 | | This update shall be a one-time update to the long-term | 17 | | renewable resources procurement plan and is intended to be a | 18 | | one-time stimulus program using only that funding preserved | 19 | | from reconciliation through this amendatory Act of the 102nd | 20 | | General Assembly, and shall be referred to as the "Emergency | 21 | | Relief for Renewable Jobs Program". | 22 | | (2) Notwithstanding anything to the contrary, the Agency | 23 | | shall file an update to the revised long-term renewable | 24 | | resources procurement plan approved by the Commission on | 25 | | February 18, 2020 within 15 days after the effective date of | 26 | | this amendatory Act of the 102nd General Assembly in |
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| 1 | | accordance with Section 16-111.5 of the Public Utilities Act | 2 | | and paragraph (3) of this subsection. This update shall be | 3 | | limited to specifying how the Agency will allocate capacity | 4 | | between and within programs and procurements pursuant to this | 5 | | Act using any additional funding made available as a result of | 6 | | this amendatory Act of the 102nd General Assembly. The | 7 | | Commission shall approve the update, after notice and hearing, | 8 | | no later than 30 days after it is filed by the Agency. | 9 | | (3) The update to the revised long-term renewable | 10 | | resources procurement plan shall, at a minimum, provide for | 11 | | the following: | 12 | | (A) Procurement of additional renewable energy credits | 13 | | from the categories of the Adjustable Block Program | 14 | | established pursuant to items (i), (ii), and (iii) of | 15 | | subparagraph (K) of paragraph (1) of subsection (c) of | 16 | | Section 1-75 of the Illinois Power Agency Act at the | 17 | | minimum percentages required for each block by | 18 | | subparagraph (K) of paragraph (1) of subsection (c) of | 19 | | Section 1-75 of the Illinois Power Agency Act, and with | 20 | | the remaining 25% allocated equally across each of the | 21 | | three categories. The Agency shall seek to fill a minimum | 22 | | of one block for each of the groups and categories | 23 | | specified in the revised long-term renewable resources | 24 | | procurement plan. Blocks need not conform to each other or | 25 | | previous block sizes. Block capacity in each group and | 26 | | category shall be assigned to waitlisted projects first. |
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| 1 | | The renewable energy credit price for the first block | 2 | | opened in each group and each category of the Emergency | 3 | | Relief for Renewable Jobs Program shall be 4% lower than | 4 | | the renewable energy credit price in the last open block | 5 | | for each respective group and category. | 6 | | (B) Procurement of renewable energy credits from new | 7 | | utility-scale wind projects, new utility-scale solar | 8 | | projects, and new brownfield site photovoltaic projects. | 9 | | The update shall identify proposed procurement quantities | 10 | | for a single procurement event from new utility-scale wind | 11 | | projects, new utility-scale solar projects, and new | 12 | | brownfield site photovoltaic projects at a maximum of | 13 | | 1,000,000 renewable energy credits delivered annually from | 14 | | each of utility-scale wind projects and utility-scale | 15 | | solar projects, and 100,000 renewable energy credits | 16 | | delivered annually from brownfield site photovoltaic | 17 | | projects using the competitive procurement process | 18 | | described in Section 16-111.5 of the Public Utilities Act. | 19 | | Notwithstanding anything to the contrary, projects | 20 | | selected through procurements authorized by this update | 21 | | shall begin delivery of renewable energy credits no | 22 | | earlier than June 1, 2024. The planning for procurement | 23 | | events under this subparagraph (B) shall not delay the | 24 | | opening of new blocks of the Adjustable Block Program | 25 | | under subparagraph (A). | 26 | | Any company that receives a renewable energy credit |
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| 1 | | contract from the Emergency Relief for Renewable Jobs Program | 2 | | shall submit an annual report pursuant to Section 5-117 of | 3 | | this Act within 6 months after the date of the contract award. | 4 | | (4) The implementation of the update filed under paragraph | 5 | | (2) of this subsection shall commence as soon as practicable | 6 | | with blocks from subparagraph (A) of paragraph (3) of this | 7 | | subsection to open 5 business days after Commission approval. | 8 | | (l) A utility that has terminated any contract executed | 9 | | under subsection (d-5) of Section 1-75 of the Illinois Power | 10 | | Agency Act shall be entitled to recover any remaining balance | 11 | | associated with the purchase of zero emission credits prior to | 12 | | such termination, and such utility shall also apply a credit | 13 | | to its retail customer bills in the event of any | 14 | | over-collection. | 15 | | (m)(1) An electric utility that recovers its costs of | 16 | | procuring zero emission credits from zero emission | 17 | | facilities through a cents-per-kilowatthour charge under | 18 | | to subsection (k) of this Section shall be subject to the | 19 | | requirements of this subsection (m). Notwithstanding | 20 | | anything to the contrary, such electric utility shall, | 21 | | beginning on April 30, 2018, and each April 30 thereafter | 22 | | until April 30, 2026, calculate whether any reduction must | 23 | | be applied to such cents-per-kilowatthour charge that is | 24 | | paid by retail customers of the electric utility that are | 25 | | exempt from subsections (a) through (j) of Section 8-103B | 26 | | of this Act under subsection (l) of Section 8-103B. Such |
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| 1 | | charge shall be reduced for such customers for the next | 2 | | delivery year commencing on June 1 based on the amount | 3 | | necessary, if any, to limit the annual estimated average | 4 | | net increase for the prior calendar year due to the future | 5 | | energy investment costs to no more than 1.3% of 5.98 cents | 6 | | per kilowatt-hour, which is the average amount paid per | 7 | | kilowatthour for electric service during the year ending | 8 | | December 31, 2015 by Illinois industrial retail customers, | 9 | | as reported to the Edison Electric Institute. | 10 | | The calculations required by this subsection (m) shall | 11 | | be made only once for each year, and no subsequent rate | 12 | | impact determinations shall be made. | 13 | | (2) For purposes of this Section, "future energy | 14 | | investment costs" shall be calculated by subtracting the | 15 | | cents-per-kilowatthour charge identified in subparagraph | 16 | | (A) of this paragraph (2) from the sum of the | 17 | | cents-per-kilowatthour charges identified in subparagraph | 18 | | (B) of this paragraph (2): | 19 | | (A) The cents-per-kilowatthour charge identified | 20 | | in the electric utility's tariff placed into effect | 21 | | under Section 8-103 of the Public Utilities Act that, | 22 | | on December 1, 2016, was applicable to those retail | 23 | | customers that are exempt from subsections (a) through | 24 | | (j) of Section 8-103B of this Act under subsection (l) | 25 | | of Section 8-103B. | 26 | | (B) The sum of the following |
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| 1 | | cents-per-kilowatthour charges applicable to those | 2 | | retail customers that are exempt from subsections (a) | 3 | | through (j) of Section 8-103B of this Act under | 4 | | subsection (l) of Section 8-103B, provided that if one | 5 | | or more of the following charges has been in effect and | 6 | | applied to such customers for more than one calendar | 7 | | year, then each charge shall be equal to the average of | 8 | | the charges applied over a period that commences with | 9 | | the calendar year ending December 31, 2017 and ends | 10 | | with the most recently completed calendar year prior | 11 | | to the calculation required by this subsection (m): | 12 | | (i) the cents-per-kilowatthour charge to | 13 | | recover the costs incurred by the utility under | 14 | | subsection (d-5) of Section 1-75 of the Illinois | 15 | | Power Agency Act, adjusted for any reductions | 16 | | required under this subsection (m); and | 17 | | (ii) the cents-per-kilowatthour charge to | 18 | | recover the costs incurred by the utility under | 19 | | Section 16-107.6 of the Public Utilities Act. | 20 | | If no charge was applied for a given calendar year | 21 | | under item (i) or (ii) of this subparagraph (B), then | 22 | | the value of the charge for that year shall be zero. | 23 | | (3) If a reduction is required by the calculation | 24 | | performed under this subsection (m), then the amount of | 25 | | the reduction shall be multiplied by the number of years | 26 | | reflected in the averages calculated under subparagraph |
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| 1 | | (B) of paragraph (2) of this subsection (m). Such | 2 | | reduction shall be applied to the cents-per-kilowatthour | 3 | | charge that is applicable to those retail customers that | 4 | | are exempt from subsections (a) through (j) of Section | 5 | | 8-103B of this Act under subsection (l) of Section 8-103B | 6 | | beginning with the next delivery year commencing after the | 7 | | date of the calculation required by this subsection (m). | 8 | | (4) The electric utility shall file a notice with the | 9 | | Commission on May 1 of 2018 and each May 1 thereafter until | 10 | | May 1, 2026 containing the reduction, if any, which must | 11 | | be applied for the delivery year which begins in the year | 12 | | of the filing. The notice shall contain the calculations | 13 | | made pursuant to this Section. By October 1 of each year | 14 | | beginning in 2018, each electric utility shall notify the | 15 | | Commission if it appears, based on an estimate of the | 16 | | calculation required in this subsection (m), that a | 17 | | reduction will be required in the next year. | 18 | | (Source: P.A. 99-906, eff. 6-1-17 .)
| 19 | | Section 99. Effective date. This Act takes effect upon | 20 | | becoming law.".
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