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Public Act 097-0616 | ||||
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AN ACT concerning public utilities.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Power Agency Act is amended by | ||||
changing Section 1-10, 1-56, and 1-75 as follows:
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(20 ILCS 3855/1-10)
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Sec. 1-10. Definitions. | ||||
"Agency" means the Illinois Power Agency. | ||||
"Agency loan agreement" means any agreement pursuant to | ||||
which the Illinois Finance Authority agrees to loan the | ||||
proceeds of revenue bonds issued with respect to a project to | ||||
the Agency upon terms providing for loan repayment installments | ||||
at least sufficient to pay when due all principal of, interest | ||||
and premium, if any, on those revenue bonds, and providing for | ||||
maintenance, insurance, and other matters in respect of the | ||||
project. | ||||
"Authority" means the Illinois Finance Authority. | ||||
"Clean coal facility" means an electric generating | ||||
facility that uses primarily coal as a feedstock and that | ||||
captures and sequesters carbon emissions at the following | ||||
levels: at least 50% of the total carbon emissions that the | ||||
facility would otherwise emit if, at the time construction | ||||
commences, the facility is scheduled to commence operation |
before 2016, at least 70% of the total carbon emissions that | ||
the facility would otherwise emit if, at the time construction | ||
commences, the facility is scheduled to commence operation | ||
during 2016 or 2017, and at least 90% of the total carbon | ||
emissions that the facility would otherwise emit if, at the | ||
time construction commences, the facility is scheduled to | ||
commence operation after 2017. The power block of the clean | ||
coal facility shall not exceed allowable emission rates for | ||
sulfur dioxide, nitrogen oxides, carbon monoxide, particulates | ||
and mercury for a natural gas-fired combined-cycle facility the | ||
same size as and in the same location as the clean coal | ||
facility at the time the clean coal facility obtains an | ||
approved air permit. All coal used by a clean coal facility | ||
shall have high volatile bituminous rank and greater than 1.7 | ||
pounds of sulfur per million btu content, unless the clean coal | ||
facility does not use gasification technology and was operating | ||
as a conventional coal-fired electric generating facility on | ||
June 1, 2009 (the effective date of Public Act 95-1027). | ||
"Clean coal SNG facility" means a facility that uses a | ||
gasification process to produce substitute natural gas, that | ||
sequesters at least 90% of the total carbon emissions that the | ||
facility would otherwise emit and that uses petroleum coke or | ||
coal as a feedstock, with all such coal having a high | ||
bituminous rank and greater than 1.7 pounds of sulfur per | ||
million btu content. | ||
"Commission" means the Illinois Commerce Commission. |
"Costs incurred in connection with the development and | ||
construction of a facility" means: | ||
(1) the cost of acquisition of all real property and | ||
improvements in connection therewith and equipment and | ||
other property, rights, and easements acquired that are | ||
deemed necessary for the operation and maintenance of the | ||
facility; | ||
(2) financing costs with respect to bonds, notes, and | ||
other evidences of indebtedness of the Agency; | ||
(3) all origination, commitment, utilization, | ||
facility, placement, underwriting, syndication, credit | ||
enhancement, and rating agency fees; | ||
(4) engineering, design, procurement, consulting, | ||
legal, accounting, title insurance, survey, appraisal, | ||
escrow, trustee, collateral agency, interest rate hedging, | ||
interest rate swap, capitalized interest and other | ||
financing costs, and other expenses for professional | ||
services; and | ||
(5) the costs of plans, specifications, site study and | ||
investigation, installation, surveys, other Agency costs | ||
and estimates of costs, and other expenses necessary or | ||
incidental to determining the feasibility of any project, | ||
together with such other expenses as may be necessary or | ||
incidental to the financing, insuring, acquisition, and | ||
construction of a specific project and placing that project | ||
in operation. |
"Department" means the Department of Commerce and Economic | ||
Opportunity. | ||
"Director" means the Director of the Illinois Power Agency. | ||
"Demand-response" means measures that decrease peak | ||
electricity demand or shift demand from peak to off-peak | ||
periods. | ||
"Distributed renewable energy generation device" means a | ||
device that is: | ||
(1) powered by wind, solar thermal energy, | ||
photovoltaic cells and panels, biodiesel, crops and | ||
untreated and unadulterated organic waste biomass, tree | ||
waste, and hydropower that does not involve new | ||
construction or significant expansion of hydropower dams; | ||
(2) interconnected at the distribution system level of | ||
either an electric utility as defined in this Section, an | ||
alternative retail electric supplier as defined in Section | ||
16-102 of the Public Utilities Act, a municipal utility as | ||
defined in Section 3-105 of the Public Utilities Act, or a | ||
rural electric cooperative as defined in Section 3-119 of | ||
the Public Utilities Act; | ||
(3) located on the customer side of the customer's | ||
electric meter and is primarily used to offset that | ||
customer's electricity load; and | ||
(4) limited in nameplate capacity to no more than 2,000 | ||
kilowatts. | ||
"Energy efficiency" means measures that reduce the amount |
of electricity or natural gas required to achieve a given end | ||
use. | ||
"Electric utility" has the same definition as found in | ||
Section 16-102 of the Public Utilities Act. | ||
"Facility" means an electric generating unit or a | ||
co-generating unit that produces electricity along with | ||
related equipment necessary to connect the facility to an | ||
electric transmission or distribution system. | ||
"Governmental aggregator" means one or more units of local | ||
government that individually or collectively procure | ||
electricity to serve residential retail electrical loads | ||
located within its or their jurisdiction. | ||
"Local government" means a unit of local government as | ||
defined in Article VII of Section 1 of the Illinois | ||
Constitution. | ||
"Municipality" means a city, village, or incorporated | ||
town. | ||
"Person" means any natural person, firm, partnership, | ||
corporation, either domestic or foreign, company, association, | ||
limited liability company, joint stock company, or association | ||
and includes any trustee, receiver, assignee, or personal | ||
representative thereof. | ||
"Project" means the planning, bidding, and construction of | ||
a facility. | ||
"Public utility" has the same definition as found in | ||
Section 3-105 of the Public Utilities Act. |
"Real property" means any interest in land together with | ||
all structures, fixtures, and improvements thereon, including | ||
lands under water and riparian rights, any easements, | ||
covenants, licenses, leases, rights-of-way, uses, and other | ||
interests, together with any liens, judgments, mortgages, or | ||
other claims or security interests related to real property. | ||
"Renewable energy credit" means a tradable credit that | ||
represents the environmental attributes of a certain amount of | ||
energy produced from a renewable energy resource. | ||
"Renewable energy resources" includes energy and its | ||
associated renewable energy credit or renewable energy credits | ||
from wind, solar thermal energy, photovoltaic cells and panels, | ||
biodiesel, crops and untreated and unadulterated organic waste | ||
biomass, tree waste, hydropower that does not involve new | ||
construction or significant expansion of hydropower dams, and | ||
other alternative sources of environmentally preferable | ||
energy. For purposes of this Act, landfill gas produced in the | ||
State is considered a renewable energy resource. "Renewable | ||
energy resources" does not include the incineration or burning | ||
of tires, garbage, general household, institutional, and | ||
commercial waste, industrial lunchroom or office waste, | ||
landscape waste other than tree waste, railroad crossties, | ||
utility poles, or construction or demolition debris, other than | ||
untreated and unadulterated waste wood. | ||
"Revenue bond" means any bond, note, or other evidence of | ||
indebtedness issued by the Authority, the principal and |
interest of which is payable solely from revenues or income | ||
derived from any project or activity of the Agency. | ||
"Sequester" means permanent storage of carbon dioxide by | ||
injecting it into a saline aquifer, a depleted gas reservoir, | ||
or an oil reservoir, directly or through an enhanced oil | ||
recovery process that may involve intermediate storage in a | ||
salt dome. | ||
"Servicing agreement" means (i) in the case of an electric | ||
utility, an agreement between the owner of a clean coal | ||
facility and such electric utility, which agreement shall have | ||
terms and conditions meeting the requirements of paragraph (3) | ||
of subsection (d) of Section 1-75, and (ii) in the case of an | ||
alternative retail electric supplier, an agreement between the | ||
owner of a clean coal facility and such alternative retail | ||
electric supplier, which agreement shall have terms and | ||
conditions meeting the requirements of Section 16-115(d)(5) of | ||
the Public Utilities Act. | ||
"Substitute natural gas" or "SNG" means a gas manufactured | ||
by gasification of hydrocarbon feedstock, which is | ||
substantially interchangeable in use and distribution with | ||
conventional natural gas. | ||
"Total resource cost test" or "TRC test" means a standard | ||
that is met if, for an investment in energy efficiency or | ||
demand-response measures, the benefit-cost ratio is greater | ||
than one. The benefit-cost ratio is the ratio of the net | ||
present value of the total benefits of the program to the net |
present value of the total costs as calculated over the | ||
lifetime of the measures. A total resource cost test compares | ||
the sum of avoided electric utility costs, representing the | ||
benefits that accrue to the system and the participant in the | ||
delivery of those efficiency measures, as well as other | ||
quantifiable societal benefits, including avoided natural gas | ||
utility costs, to the sum of all incremental costs of end-use | ||
measures that are implemented due to the program (including | ||
both utility and participant contributions), plus costs to | ||
administer, deliver, and evaluate each demand-side program, to | ||
quantify the net savings obtained by substituting the | ||
demand-side program for supply resources. In calculating | ||
avoided costs of power and energy that an electric utility | ||
would otherwise have had to acquire, reasonable estimates shall | ||
be included of financial costs likely to be imposed by future | ||
regulations and legislation on emissions of greenhouse gases.
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(Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09; | ||
95-1027, eff. 6-1-09; 96-33, eff. 7-10-09; 96-159, eff. | ||
8-10-09; 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10.)
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(20 ILCS 3855/1-56) | ||
Sec. 1-56. Illinois Power Agency Renewable Energy | ||
Resources Fund. | ||
(a) The Illinois Power Agency Renewable Energy Resources | ||
Fund is created as a special fund in the State treasury. | ||
(b) The Illinois Power Agency Renewable Energy Resources |
Fund shall be administered by the Agency to procure renewable | ||
energy resources. Prior to June 1, 2011, resources procured | ||
pursuant to this Section shall be procured from facilities | ||
located in Illinois, provided the resources are available from | ||
those facilities. If resources are not available in Illinois, | ||
then they shall be procured in states that adjoin Illinois. If | ||
resources are not available in Illinois or in states that | ||
adjoin Illinois, then they may be purchased elsewhere. | ||
Beginning June 1, 2011, resources procured pursuant to this | ||
Section shall be procured from facilities located in Illinois | ||
or states that adjoin Illinois. If resources are not available | ||
in Illinois or in states that adjoin Illinois, then they may be | ||
procured elsewhere. To the extent available, at least 75% of | ||
these renewable energy resources shall come from wind | ||
generation. Of the renewable energy resources procured | ||
pursuant to this Section at least the following specified | ||
percentages shall come from photovoltaics on the following | ||
schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by | ||
June 1, 2014; and 6% by June 1, 2015 and thereafter. Of the | ||
renewable energy resources procured pursuant to this Section, | ||
at least the following percentages shall come from distributed | ||
renewable energy generation devices: 0.5% by June 1, 2013, | ||
0.75% by June 1, 2014, and 1% by June 1, 2015 and thereafter. | ||
To the extent available, half of the renewable energy resources | ||
procured from distributed renewable energy generation shall | ||
come from devices of less than 25 kilowatts in nameplate |
capacity. Renewable energy resources procured from distributed | ||
generation devices may also count towards the required | ||
percentages for wind and solar photovoltaics. Procurement of | ||
renewable energy resources from distributed renewable energy | ||
generation devices shall be done on an annual basis through | ||
multi-year contracts of no less than 5 years, and shall consist | ||
solely of renewable energy credits. | ||
The Agency shall create credit requirements for suppliers | ||
of distributed renewable energy. In order to minimize the | ||
administrative burden on contracting entities, the Agency | ||
shall solicit the use of third-party organizations to aggregate | ||
distributed renewable energy into groups of no less than one | ||
megawatt in installed capacity. These third-party | ||
organizations shall administer contracts with individual | ||
distributed renewable energy generation device owners. An | ||
individual distributed renewable energy generation device | ||
owner shall have the ability to measure the output of his or | ||
her distributed renewable energy generation device. | ||
(c) The Agency shall procure renewable energy resources at | ||
least once each year in conjunction with a procurement event | ||
for electric utilities required to comply with Section 1-75 of | ||
the Act and shall, whenever possible, enter into long-term | ||
contracts on an annual basis for a portion of the incremental | ||
requirement for the given procurement year . | ||
(d) The price paid to procure renewable energy credits | ||
using monies from the Illinois Power Agency Renewable Energy |
Resources Fund shall not exceed the winning bid prices paid for | ||
like resources procured for electric utilities required to | ||
comply with Section 1-75 of this Act. | ||
(e) All renewable energy credits procured using monies from | ||
the Illinois Power Agency Renewable Energy Resources Fund shall | ||
be permanently retired. | ||
(f) The procurement process described in this Section is | ||
exempt from the requirements of the Illinois Procurement Code, | ||
pursuant to Section 20-10 of that Code. | ||
(g) All disbursements from the Illinois Power Agency | ||
Renewable Energy Resources Fund shall be made only upon | ||
warrants of the Comptroller drawn upon the Treasurer as | ||
custodian of the Fund upon vouchers signed by the Director or | ||
by the person or persons designated by the Director for that | ||
purpose. The Comptroller is authorized to draw the warrant upon | ||
vouchers so signed. The Treasurer shall accept all warrants so | ||
signed and shall be released from liability for all payments | ||
made on those warrants. | ||
(h) The Illinois Power Agency Renewable Energy Resources | ||
Fund shall not be subject to sweeps, administrative charges, or | ||
chargebacks, including, but not limited to, those authorized | ||
under Section 8h of the State Finance Act, that would in any | ||
way result in the transfer of any funds from this Fund to any | ||
other fund of this State or in having any such funds utilized | ||
for any purpose other than the express purposes set forth in | ||
this Section.
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(Source: P.A. 96-159, eff. 8-10-09; 96-1000, eff. 7-2-10; | ||
96-1437, eff. 8-17-10.) | ||
(20 ILCS 3855/1-75) | ||
Sec. 1-75. Planning and Procurement Bureau. The Planning | ||
and Procurement Bureau has the following duties and | ||
responsibilities: | ||
(a) The Planning and Procurement Bureau shall each | ||
year, beginning in 2008, develop procurement plans and | ||
conduct competitive procurement processes in accordance | ||
with the requirements of Section 16-111.5 of the Public | ||
Utilities Act for the eligible retail customers of electric | ||
utilities that on December 31, 2005 provided electric | ||
service to at least 100,000 customers in Illinois. For the | ||
purposes of this Section, the term "eligible retail | ||
customers" has the same definition as found in Section | ||
16-111.5(a) of the Public Utilities Act. | ||
(1) The Agency shall each year, beginning in 2008, | ||
as needed, issue a request for qualifications for | ||
experts or expert consulting firms to develop the | ||
procurement plans in accordance with Section 16-111.5 | ||
of the Public Utilities Act. In order to qualify an | ||
expert or expert consulting firm must have: | ||
(A) direct previous experience assembling | ||
large-scale power supply plans or portfolios for | ||
end-use customers; |
(B) an advanced degree in economics, | ||
mathematics, engineering, risk management, or a | ||
related area of study; | ||
(C) 10 years of experience in the electricity | ||
sector, including managing supply risk; | ||
(D) expertise in wholesale electricity market | ||
rules, including those established by the Federal | ||
Energy Regulatory Commission and regional | ||
transmission organizations; | ||
(E) expertise in credit protocols and | ||
familiarity with contract protocols; | ||
(F) adequate resources to perform and fulfill | ||
the required functions and responsibilities; and | ||
(G) the absence of a conflict of interest and | ||
inappropriate bias for or against potential | ||
bidders or the affected electric utilities. | ||
(2) The Agency shall each year, as needed, issue a | ||
request for qualifications for a procurement | ||
administrator to conduct the competitive procurement | ||
processes in accordance with Section 16-111.5 of the | ||
Public Utilities Act. In order to qualify an expert or | ||
expert consulting firm must have: | ||
(A) direct previous experience administering a | ||
large-scale competitive procurement process; | ||
(B) an advanced degree in economics, | ||
mathematics, engineering, or a related area of |
study; | ||
(C) 10 years of experience in the electricity | ||
sector, including risk management experience; | ||
(D) expertise in wholesale electricity market | ||
rules, including those established by the Federal | ||
Energy Regulatory Commission and regional | ||
transmission organizations; | ||
(E) expertise in credit and contract | ||
protocols; | ||
(F) adequate resources to perform and fulfill | ||
the required functions and responsibilities; and | ||
(G) the absence of a conflict of interest and | ||
inappropriate bias for or against potential | ||
bidders or the affected electric utilities. | ||
(3) The Agency shall provide affected utilities | ||
and other interested parties with the lists of | ||
qualified experts or expert consulting firms | ||
identified through the request for qualifications | ||
processes that are under consideration to develop the | ||
procurement plans and to serve as the procurement | ||
administrator. The Agency shall also provide each | ||
qualified expert's or expert consulting firm's | ||
response to the request for qualifications. All | ||
information provided under this subparagraph shall | ||
also be provided to the Commission. The Agency may | ||
provide by rule for fees associated with supplying the |
information to utilities and other interested parties. | ||
These parties shall, within 5 business days, notify the | ||
Agency in writing if they object to any experts or | ||
expert consulting firms on the lists. Objections shall | ||
be based on: | ||
(A) failure to satisfy qualification criteria; | ||
(B) identification of a conflict of interest; | ||
or | ||
(C) evidence of inappropriate bias for or | ||
against potential bidders or the affected | ||
utilities. | ||
The Agency shall remove experts or expert | ||
consulting firms from the lists within 10 days if there | ||
is a reasonable basis for an objection and provide the | ||
updated lists to the affected utilities and other | ||
interested parties. If the Agency fails to remove an | ||
expert or expert consulting firm from a list, an | ||
objecting party may seek review by the Commission | ||
within 5 days thereafter by filing a petition, and the | ||
Commission shall render a ruling on the petition within | ||
10 days. There is no right of appeal of the | ||
Commission's ruling. | ||
(4) The Agency shall issue requests for proposals | ||
to the qualified experts or expert consulting firms to | ||
develop a procurement plan for the affected utilities | ||
and to serve as procurement administrator. |
(5) The Agency shall select an expert or expert | ||
consulting firm to develop procurement plans based on | ||
the proposals submitted and shall award one-year | ||
contracts to those selected with an option for the | ||
Agency for a one-year renewal. | ||
(6) The Agency shall select an expert or expert | ||
consulting firm, with approval of the Commission, to | ||
serve as procurement administrator based on the | ||
proposals submitted. If the Commission rejects, within | ||
5 days, the Agency's selection, the Agency shall submit | ||
another recommendation within 3 days based on the | ||
proposals submitted. The Agency shall award a one-year | ||
contract to the expert or expert consulting firm so | ||
selected with Commission approval with an option for | ||
the Agency for a one-year renewal. | ||
(b) The experts or expert consulting firms retained by | ||
the Agency shall, as appropriate, prepare procurement | ||
plans, and conduct a competitive procurement process as | ||
prescribed in Section 16-111.5 of the Public Utilities Act, | ||
to ensure adequate, reliable, affordable, efficient, and | ||
environmentally sustainable electric service at the lowest | ||
total cost over time, taking into account any benefits of | ||
price stability, for eligible retail customers of electric | ||
utilities that on December 31, 2005 provided electric | ||
service to at least 100,000 customers in the State of | ||
Illinois. |
(c) Renewable portfolio standard. | ||
(1) The procurement plans shall include | ||
cost-effective renewable energy resources. A minimum | ||
percentage of each utility's total supply to serve the | ||
load of eligible retail customers, as defined in | ||
Section 16-111.5(a) of the Public Utilities Act, | ||
procured for each of the following years shall be | ||
generated from cost-effective renewable energy | ||
resources: at least 2% by June 1, 2008; at least 4% by | ||
June 1, 2009; at least 5% by June 1, 2010; at least 6% | ||
by June 1, 2011; at least 7% by June 1, 2012; at least | ||
8% by June 1, 2013; at least 9% by June 1, 2014; at | ||
least 10% by June 1, 2015; and increasing by at least | ||
1.5% each year thereafter to at least 25% by June 1, | ||
2025. To the extent that it is available, at least 75% | ||
of the renewable energy resources used to meet these | ||
standards shall come from wind generation and, | ||
beginning on June 1, 2011, at least the following | ||
percentages of the renewable energy resources used to | ||
meet these standards shall come from photovoltaics on | ||
the following schedule: 0.5% by June 1, 2012, 1.5% by | ||
June 1, 2013; 3% by June 1, 2014; and 6% by June 1, | ||
2015 and thereafter. Of the renewable energy resources | ||
procured pursuant to this Section, at least the | ||
following percentages shall come from distributed | ||
renewable energy generation devices: 0.5% by June 1, |
2013, 0.75% by June 1, 2014, and 1% by June 1, 2015 and | ||
thereafter. To the extent available, half of the | ||
renewable energy resources procured from distributed | ||
renewable energy generation shall come from devices of | ||
less than 25 kilowatts in nameplate capacity. | ||
Renewable energy resources procured from distributed | ||
generation devices may also count towards the required | ||
percentages for wind and solar photovoltaics. | ||
Procurement of renewable energy resources from | ||
distributed renewable energy generation devices shall | ||
be done on an annual basis through multi-year contracts | ||
of no less than 5 years, and shall consist solely of | ||
renewable energy credits. | ||
The Agency shall create credit requirements for | ||
suppliers of distributed renewable energy. In order to | ||
minimize the administrative burden on contracting | ||
entities, the Agency shall solicit the use of | ||
third-party organizations to aggregate distributed | ||
renewable energy into groups of no less than one | ||
megawatt in installed capacity. These third-party | ||
organizations shall administer contracts with | ||
individual distributed renewable energy generation | ||
device owners. An individual distributed renewable | ||
energy generation device owner shall have the ability | ||
to measure the output of his or her distributed | ||
renewable energy generation device. For purposes of |
this subsection (c), "cost-effective" means that the | ||
costs of procuring renewable energy resources do not | ||
cause the limit stated in paragraph (2) of this | ||
subsection (c) to be exceeded and do not exceed | ||
benchmarks based on market prices for renewable energy | ||
resources in the region, which shall be developed by | ||
the procurement administrator, in consultation with | ||
the Commission staff, Agency staff, and the | ||
procurement monitor and shall be subject to Commission | ||
review and approval. | ||
(2) For purposes of this subsection (c), the | ||
required procurement of cost-effective renewable | ||
energy resources for a particular year shall be | ||
measured as a percentage of the actual amount of | ||
electricity (megawatt-hours) supplied by the electric | ||
utility to eligible retail customers in the planning | ||
year ending immediately prior to the procurement. For | ||
purposes of this subsection (c), the amount paid per | ||
kilowatthour means the total amount paid for electric | ||
service expressed on a per kilowatthour basis. For | ||
purposes of this subsection (c), the total amount paid | ||
for electric service includes without limitation | ||
amounts paid for supply, transmission, distribution, | ||
surcharges, and add-on taxes. | ||
Notwithstanding the requirements of this | ||
subsection (c), the total of renewable energy |
resources procured pursuant to the procurement plan | ||
for any single year shall be reduced by an amount | ||
necessary to limit the annual estimated average net | ||
increase due to the costs of these resources included | ||
in the amounts paid by eligible retail customers in | ||
connection with electric service to: | ||
(A) in 2008, no more than 0.5% of the amount | ||
paid per kilowatthour by those customers during | ||
the year ending May 31, 2007; | ||
(B) in 2009, the greater of an additional 0.5% | ||
of the amount paid per kilowatthour by those | ||
customers during the year ending May 31, 2008 or 1% | ||
of the amount paid per kilowatthour by those | ||
customers during the year ending May 31, 2007; | ||
(C) in 2010, the greater of an additional 0.5% | ||
of the amount paid per kilowatthour by those | ||
customers during the year ending May 31, 2009 or | ||
1.5% of the amount paid per kilowatthour by those | ||
customers during the year ending May 31, 2007; | ||
(D) in 2011, the greater of an additional 0.5% | ||
of the amount paid per kilowatthour by those | ||
customers during the year ending May 31, 2010 or 2% | ||
of the amount paid per kilowatthour by those | ||
customers during the year ending May 31, 2007; and | ||
(E) thereafter, the amount of renewable energy | ||
resources procured pursuant to the procurement |
plan for any single year shall be reduced by an | ||
amount necessary to limit the estimated average | ||
net increase due to the cost of these resources | ||
included in the amounts paid by eligible retail | ||
customers in connection with electric service to | ||
no more than the greater of 2.015% of the amount | ||
paid per kilowatthour by those customers during | ||
the year ending May 31, 2007 or the incremental | ||
amount per kilowatthour paid for these resources | ||
in 2011. | ||
No later than June 30, 2011, the Commission shall | ||
review the limitation on the amount of renewable energy | ||
resources procured pursuant to this subsection (c) and | ||
report to the General Assembly its findings as to | ||
whether that limitation unduly constrains the | ||
procurement of cost-effective renewable energy | ||
resources. | ||
(3) Through June 1, 2011, renewable energy | ||
resources shall be counted for the purpose of meeting | ||
the renewable energy standards set forth in paragraph | ||
(1) of this subsection (c) only if they are generated | ||
from facilities located in the State, provided that | ||
cost-effective renewable energy resources are | ||
available from those facilities. If those | ||
cost-effective resources are not available in | ||
Illinois, they shall be procured in states that adjoin |
Illinois and may be counted towards compliance. If | ||
those cost-effective resources are not available in | ||
Illinois or in states that adjoin Illinois, they shall | ||
be purchased elsewhere and shall be counted towards | ||
compliance. After June 1, 2011, cost-effective | ||
renewable energy resources located in Illinois and in | ||
states that adjoin Illinois may be counted towards | ||
compliance with the standards set forth in paragraph | ||
(1) of this subsection (c). If those cost-effective | ||
resources are not available in Illinois or in states | ||
that adjoin Illinois, they shall be purchased | ||
elsewhere and shall be counted towards compliance. | ||
(4) The electric utility shall retire all | ||
renewable energy credits used to comply with the | ||
standard. | ||
(5) Beginning with the year commencing June 1, | ||
2010, an electric utility subject to this subsection | ||
(c) shall apply the lesser of the maximum alternative | ||
compliance payment rate or the most recent estimated | ||
alternative compliance payment rate for its service | ||
territory for the corresponding compliance period, | ||
established pursuant to subsection (d) of Section | ||
16-115D of the Public Utilities Act to its retail | ||
customers that take service pursuant to the electric | ||
utility's hourly pricing tariff or tariffs. The | ||
electric utility shall retain all amounts collected as |
a result of the application of the alternative | ||
compliance payment rate or rates to such customers, | ||
and, beginning in 2011, the utility shall include in | ||
the information provided under item (1) of subsection | ||
(d) of Section 16-111.5 of the Public Utilities Act the | ||
amounts collected under the alternative compliance | ||
payment rate or rates for the prior year ending May 31. | ||
Notwithstanding any limitation on the procurement of | ||
renewable energy resources imposed by item (2) of this | ||
subsection (c), the Agency shall increase its spending | ||
on the purchase of renewable energy resources to be | ||
procured by the electric utility for the next plan year | ||
by an amount equal to the amounts collected by the | ||
utility under the alternative compliance payment rate | ||
or rates in the prior year ending May 31. | ||
(d) Clean coal portfolio standard. | ||
(1) The procurement plans shall include electricity | ||
generated using clean coal. Each utility shall enter into | ||
one or more sourcing agreements with the initial clean coal | ||
facility, as provided in paragraph (3) of this subsection | ||
(d), covering electricity generated by the initial clean | ||
coal facility representing at least 5% of each utility's | ||
total supply to serve the load of eligible retail customers | ||
in 2015 and each year thereafter, as described in paragraph | ||
(3) of this subsection (d), subject to the limits specified | ||
in paragraph (2) of this subsection (d). It is the goal of |
the State that by January 1, 2025, 25% of the electricity | ||
used in the State shall be generated by cost-effective | ||
clean coal facilities. For purposes of this subsection (d), | ||
"cost-effective" means that the expenditures pursuant to | ||
such sourcing agreements do not cause the limit stated in | ||
paragraph (2) of this subsection (d) to be exceeded and do | ||
not exceed cost-based benchmarks, which shall be developed | ||
to assess all expenditures pursuant to such sourcing | ||
agreements covering electricity generated by clean coal | ||
facilities, other than the initial clean coal facility, by | ||
the procurement administrator, in consultation with the | ||
Commission staff, Agency staff, and the procurement | ||
monitor and shall be subject to Commission review and | ||
approval. | ||
(A) A utility party to a sourcing agreement shall | ||
immediately retire any emission credits that it | ||
receives in connection with the electricity covered by | ||
such agreement. | ||
(B) Utilities shall maintain adequate records | ||
documenting the purchases under the sourcing agreement | ||
to comply with this subsection (d) and shall file an | ||
accounting with the load forecast that must be filed | ||
with the Agency by July 15 of each year, in accordance | ||
with subsection (d) of Section 16-111.5 of the Public | ||
Utilities Act. | ||
(C) A utility shall be deemed to have complied with |
the clean coal portfolio standard specified in this | ||
subsection (d) if the utility enters into a sourcing | ||
agreement as required by this subsection (d). | ||
(2) For purposes of this subsection (d), the required | ||
execution of sourcing agreements with the initial clean | ||
coal facility for a particular year shall be measured as a | ||
percentage of the actual amount of electricity | ||
(megawatt-hours) supplied by the electric utility to | ||
eligible retail customers in the planning year ending | ||
immediately prior to the agreement's execution. For | ||
purposes of this subsection (d), the amount paid per | ||
kilowatthour means the total amount paid for electric | ||
service expressed on a per kilowatthour basis. For purposes | ||
of this subsection (d), the total amount paid for electric | ||
service includes without limitation amounts paid for | ||
supply, transmission, distribution, surcharges and add-on | ||
taxes. | ||
Notwithstanding the requirements of this subsection | ||
(d), the total amount paid under sourcing agreements with | ||
clean coal facilities pursuant to the procurement plan for | ||
any given year shall be reduced by an amount necessary to | ||
limit the annual estimated average net increase due to the | ||
costs of these resources included in the amounts paid by | ||
eligible retail customers in connection with electric | ||
service to: | ||
(A) in 2010, no more than 0.5% of the amount |
paid per kilowatthour by those customers during | ||
the year ending May 31, 2009; | ||
(B) in 2011, the greater of an additional 0.5% | ||
of the amount paid per kilowatthour by those | ||
customers during the year ending May 31, 2010 or 1% | ||
of the amount paid per kilowatthour by those | ||
customers during the year ending May 31, 2009; | ||
(C) in 2012, the greater of an additional 0.5% | ||
of the amount paid per kilowatthour by those | ||
customers during the year ending May 31, 2011 or | ||
1.5% of the amount paid per kilowatthour by those | ||
customers during the year ending May 31, 2009; | ||
(D) in 2013, the greater of an additional 0.5% | ||
of the amount paid per kilowatthour by those | ||
customers during the year ending May 31, 2012 or 2% | ||
of the amount paid per kilowatthour by those | ||
customers during the year ending May 31, 2009; and | ||
(E) thereafter, the total amount paid under | ||
sourcing agreements with clean coal facilities | ||
pursuant to the procurement plan for any single | ||
year shall be reduced by an amount necessary to | ||
limit the estimated average net increase due to the | ||
cost of these resources included in the amounts | ||
paid by eligible retail customers in connection | ||
with electric service to no more than the greater | ||
of (i) 2.015% of the amount paid per kilowatthour |
by those customers during the year ending May 31, | ||
2009 or (ii) the incremental amount per | ||
kilowatthour paid for these resources in 2013. | ||
These requirements may be altered only as provided | ||
by statute.
No later than June 30, 2015, the | ||
Commission shall review the limitation on the | ||
total amount paid under sourcing agreements, if | ||
any, with clean coal facilities pursuant to this | ||
subsection (d) and report to the General Assembly | ||
its findings as to whether that limitation unduly | ||
constrains the amount of electricity generated by | ||
cost-effective clean coal facilities that is | ||
covered by sourcing agreements. | ||
(3) Initial clean coal facility. In order to promote | ||
development of clean coal facilities in Illinois, each | ||
electric utility subject to this Section shall execute a | ||
sourcing agreement to source electricity from a proposed | ||
clean coal facility in Illinois (the "initial clean coal | ||
facility") that will have a nameplate capacity of at least | ||
500 MW when commercial operation commences, that has a | ||
final Clean Air Act permit on the effective date of this | ||
amendatory Act of the 95th General Assembly, and that will | ||
meet the definition of clean coal facility in Section 1-10 | ||
of this Act when commercial operation commences. The | ||
sourcing agreements with this initial clean coal facility | ||
shall be subject to both approval of the initial clean coal |
facility by the General Assembly and satisfaction of the | ||
requirements of paragraph (4) of this subsection (d) and | ||
shall be executed within 90 days after any such approval by | ||
the General Assembly. The Agency and the Commission shall | ||
have authority to inspect all books and records associated | ||
with the initial clean coal facility during the term of | ||
such a sourcing agreement. A utility's sourcing agreement | ||
for electricity produced by the initial clean coal facility | ||
shall include: | ||
(A) a formula contractual price (the "contract | ||
price") approved pursuant to paragraph (4) of this | ||
subsection (d), which shall: | ||
(i) be determined using a cost of service | ||
methodology employing either a level or deferred | ||
capital recovery component, based on a capital | ||
structure consisting of 45% equity and 55% debt, | ||
and a return on equity as may be approved by the | ||
Federal Energy Regulatory Commission, which in any | ||
case may not exceed the lower of 11.5% or the rate | ||
of return approved by the General Assembly | ||
pursuant to paragraph (4) of this subsection (d); | ||
and | ||
(ii) provide that all miscellaneous net | ||
revenue, including but not limited to net revenue | ||
from the sale of emission allowances, if any, | ||
substitute natural gas, if any, grants or other |
support provided by the State of Illinois or the | ||
United States Government, firm transmission | ||
rights, if any, by-products produced by the | ||
facility, energy or capacity derived from the | ||
facility and not covered by a sourcing agreement | ||
pursuant to paragraph (3) of this subsection (d) or | ||
item (5) of subsection (d) of Section 16-115 of the | ||
Public Utilities Act, whether generated from the | ||
synthesis gas derived from coal, from SNG, or from | ||
natural gas, shall be credited against the revenue | ||
requirement for this initial clean coal facility; | ||
(B) power purchase provisions, which shall: | ||
(i) provide that the utility party to such | ||
sourcing agreement shall pay the contract price | ||
for electricity delivered under such sourcing | ||
agreement; | ||
(ii) require delivery of electricity to the | ||
regional transmission organization market of the | ||
utility that is party to such sourcing agreement; | ||
(iii) require the utility party to such | ||
sourcing agreement to buy from the initial clean | ||
coal facility in each hour an amount of energy | ||
equal to all clean coal energy made available from | ||
the initial clean coal facility during such hour | ||
times a fraction, the numerator of which is such | ||
utility's retail market sales of electricity |
(expressed in kilowatthours sold) in the State | ||
during the prior calendar month and the | ||
denominator of which is the total retail market | ||
sales of electricity (expressed in kilowatthours | ||
sold) in the State by utilities during such prior | ||
month and the sales of electricity (expressed in | ||
kilowatthours sold) in the State by alternative | ||
retail electric suppliers during such prior month | ||
that are subject to the requirements of this | ||
subsection (d) and paragraph (5) of subsection (d) | ||
of Section 16-115 of the Public Utilities Act, | ||
provided that the amount purchased by the utility | ||
in any year will be limited by paragraph (2) of | ||
this subsection (d); and | ||
(iv) be considered pre-existing contracts in | ||
such utility's procurement plans for eligible | ||
retail customers; | ||
(C) contract for differences provisions, which | ||
shall: | ||
(i) require the utility party to such sourcing | ||
agreement to contract with the initial clean coal | ||
facility in each hour with respect to an amount of | ||
energy equal to all clean coal energy made | ||
available from the initial clean coal facility | ||
during such hour times a fraction, the numerator of | ||
which is such utility's retail market sales of |
electricity (expressed in kilowatthours sold) in | ||
the utility's service territory in the State | ||
during the prior calendar month and the | ||
denominator of which is the total retail market | ||
sales of electricity (expressed in kilowatthours | ||
sold) in the State by utilities during such prior | ||
month and the sales of electricity (expressed in | ||
kilowatthours sold) in the State by alternative | ||
retail electric suppliers during such prior month | ||
that are subject to the requirements of this | ||
subsection (d) and paragraph (5) of subsection (d) | ||
of Section 16-115 of the Public Utilities Act, | ||
provided that the amount paid by the utility in any | ||
year will be limited by paragraph (2) of this | ||
subsection (d); | ||
(ii) provide that the utility's payment | ||
obligation in respect of the quantity of | ||
electricity determined pursuant to the preceding | ||
clause (i) shall be limited to an amount equal to | ||
(1) the difference between the contract price | ||
determined pursuant to subparagraph (A) of | ||
paragraph (3) of this subsection (d) and the | ||
day-ahead price for electricity delivered to the | ||
regional transmission organization market of the | ||
utility that is party to such sourcing agreement | ||
(or any successor delivery point at which such |
utility's supply obligations are financially | ||
settled on an hourly basis) (the "reference | ||
price") on the day preceding the day on which the | ||
electricity is delivered to the initial clean coal | ||
facility busbar, multiplied by (2) the quantity of | ||
electricity determined pursuant to the preceding | ||
clause (i); and | ||
(iii) not require the utility to take physical | ||
delivery of the electricity produced by the | ||
facility; | ||
(D) general provisions, which shall: | ||
(i) specify a term of no more than 30 years, | ||
commencing on the commercial operation date of the | ||
facility; | ||
(ii) provide that utilities shall maintain | ||
adequate records documenting purchases under the | ||
sourcing agreements entered into to comply with | ||
this subsection (d) and shall file an accounting | ||
with the load forecast that must be filed with the | ||
Agency by July 15 of each year, in accordance with | ||
subsection (d) of Section 16-111.5 of the Public | ||
Utilities Act. | ||
(iii) provide that all costs associated with | ||
the initial clean coal facility will be | ||
periodically reported to the Federal Energy | ||
Regulatory Commission and to purchasers in |
accordance with applicable laws governing | ||
cost-based wholesale power contracts; | ||
(iv) permit the Illinois Power Agency to | ||
assume ownership of the initial clean coal | ||
facility, without monetary consideration and | ||
otherwise on reasonable terms acceptable to the | ||
Agency, if the Agency so requests no less than 3 | ||
years prior to the end of the stated contract term; | ||
(v) require the owner of the initial clean coal | ||
facility to provide documentation to the | ||
Commission each year, starting in the facility's | ||
first year of commercial operation, accurately | ||
reporting the quantity of carbon emissions from | ||
the facility that have been captured and | ||
sequestered and report any quantities of carbon | ||
released from the site or sites at which carbon | ||
emissions were sequestered in prior years, based | ||
on continuous monitoring of such sites. If, in any | ||
year after the first year of commercial operation, | ||
the owner of the facility fails to demonstrate that | ||
the initial clean coal facility captured and | ||
sequestered at least 50% of the total carbon | ||
emissions that the facility would otherwise emit | ||
or that sequestration of emissions from prior | ||
years has failed, resulting in the release of | ||
carbon dioxide into the atmosphere, the owner of |
the facility must offset excess emissions. Any | ||
such carbon offsets must be permanent, additional, | ||
verifiable, real, located within the State of | ||
Illinois, and legally and practicably enforceable. | ||
The cost of such offsets for the facility that are | ||
not recoverable shall not exceed $15 million in any | ||
given year. No costs of any such purchases of | ||
carbon offsets may be recovered from a utility or | ||
its customers. All carbon offsets purchased for | ||
this purpose and any carbon emission credits | ||
associated with sequestration of carbon from the | ||
facility must be permanently retired. The initial | ||
clean coal facility shall not forfeit its | ||
designation as a clean coal facility if the | ||
facility fails to fully comply with the applicable | ||
carbon sequestration requirements in any given | ||
year, provided the requisite offsets are | ||
purchased. However, the Attorney General, on | ||
behalf of the People of the State of Illinois, may | ||
specifically enforce the facility's sequestration | ||
requirement and the other terms of this contract | ||
provision. Compliance with the sequestration | ||
requirements and offset purchase requirements | ||
specified in paragraph (3) of this subsection (d) | ||
shall be reviewed annually by an independent | ||
expert retained by the owner of the initial clean |
coal facility, with the advance written approval | ||
of the Attorney General. The Commission may, in the | ||
course of the review specified in item (vii), | ||
reduce the allowable return on equity for the | ||
facility if the facility wilfully fails to comply | ||
with the carbon capture and sequestration | ||
requirements set forth in this item (v); | ||
(vi) include limits on, and accordingly | ||
provide for modification of, the amount the | ||
utility is required to source under the sourcing | ||
agreement consistent with paragraph (2) of this | ||
subsection (d); | ||
(vii) require Commission review: (1) to | ||
determine the justness, reasonableness, and | ||
prudence of the inputs to the formula referenced in | ||
subparagraphs (A)(i) through (A)(iii) of paragraph | ||
(3) of this subsection (d), prior to an adjustment | ||
in those inputs including, without limitation, the | ||
capital structure and return on equity, fuel | ||
costs, and other operations and maintenance costs | ||
and (2) to approve the costs to be passed through | ||
to customers under the sourcing agreement by which | ||
the utility satisfies its statutory obligations. | ||
Commission review shall occur no less than every 3 | ||
years, regardless of whether any adjustments have | ||
been proposed, and shall be completed within 9 |
months; | ||
(viii) limit the utility's obligation to such | ||
amount as the utility is allowed to recover through | ||
tariffs filed with the Commission, provided that | ||
neither the clean coal facility nor the utility | ||
waives any right to assert federal pre-emption or | ||
any other argument in response to a purported | ||
disallowance of recovery costs; | ||
(ix) limit the utility's or alternative retail | ||
electric supplier's obligation to incur any | ||
liability until such time as the facility is in | ||
commercial operation and generating power and | ||
energy and such power and energy is being delivered | ||
to the facility busbar; | ||
(x) provide that the owner or owners of the | ||
initial clean coal facility, which is the | ||
counterparty to such sourcing agreement, shall | ||
have the right from time to time to elect whether | ||
the obligations of the utility party thereto shall | ||
be governed by the power purchase provisions or the | ||
contract for differences provisions; | ||
(xi) append documentation showing that the | ||
formula rate and contract, insofar as they relate | ||
to the power purchase provisions, have been | ||
approved by the Federal Energy Regulatory | ||
Commission pursuant to Section 205 of the Federal |
Power Act; | ||
(xii) provide that any changes to the terms of | ||
the contract, insofar as such changes relate to the | ||
power purchase provisions, are subject to review | ||
under the public interest standard applied by the | ||
Federal Energy Regulatory Commission pursuant to | ||
Sections 205 and 206 of the Federal Power Act; and | ||
(xiii) conform with customary lender | ||
requirements in power purchase agreements used as | ||
the basis for financing non-utility generators. | ||
(4) Effective date of sourcing agreements with the | ||
initial clean coal facility. Any proposed sourcing | ||
agreement with the initial clean coal facility shall not | ||
become effective unless the following reports are prepared | ||
and submitted and authorizations and approvals obtained: | ||
(i) Facility cost report. The owner of the | ||
initial clean coal facility shall submit to the | ||
Commission, the Agency, and the General Assembly a | ||
front-end engineering and design study, a facility | ||
cost report, method of financing (including but | ||
not limited to structure and associated costs), | ||
and an operating and maintenance cost quote for the | ||
facility (collectively "facility cost report"), | ||
which shall be prepared in accordance with the | ||
requirements of this paragraph (4) of subsection | ||
(d) of this Section, and shall provide the |
Commission and the Agency access to the work | ||
papers, relied upon documents, and any other | ||
backup documentation related to the facility cost | ||
report. | ||
(ii) Commission report. Within 6 months | ||
following receipt of the facility cost report, the | ||
Commission, in consultation with the Agency, shall | ||
submit a report to the General Assembly setting | ||
forth its analysis of the facility cost report. | ||
Such report shall include, but not be limited to, a | ||
comparison of the costs associated with | ||
electricity generated by the initial clean coal | ||
facility to the costs associated with electricity | ||
generated by other types of generation facilities, | ||
an analysis of the rate impacts on residential and | ||
small business customers over the life of the | ||
sourcing agreements, and an analysis of the | ||
likelihood that the initial clean coal facility | ||
will commence commercial operation by and be | ||
delivering power to the facility's busbar by 2016. | ||
To assist in the preparation of its report, the | ||
Commission, in consultation with the Agency, may | ||
hire one or more experts or consultants, the costs | ||
of which shall be paid for by the owner of the | ||
initial clean coal facility. The Commission and | ||
Agency may begin the process of selecting such |
experts or consultants prior to receipt of the | ||
facility cost report. | ||
(iii) General Assembly approval. The proposed | ||
sourcing agreements shall not take effect unless, | ||
based on the facility cost report and the | ||
Commission's report, the General Assembly enacts | ||
authorizing legislation approving (A) the | ||
projected price, stated in cents per kilowatthour, | ||
to be charged for electricity generated by the | ||
initial clean coal facility, (B) the projected | ||
impact on residential and small business | ||
customers' bills over the life of the sourcing | ||
agreements, and (C) the maximum allowable return | ||
on equity for the project; and | ||
(iv) Commission review. If the General | ||
Assembly enacts authorizing legislation pursuant | ||
to subparagraph (iii) approving a sourcing | ||
agreement, the Commission shall, within 90 days of | ||
such enactment, complete a review of such sourcing | ||
agreement. During such time period, the Commission | ||
shall implement any directive of the General | ||
Assembly, resolve any disputes between the parties | ||
to the sourcing agreement concerning the terms of | ||
such agreement, approve the form of such | ||
agreement, and issue an order finding that the | ||
sourcing agreement is prudent and reasonable. |
The facility cost report shall be prepared as follows: | ||
(A) The facility cost report shall be prepared by | ||
duly licensed engineering and construction firms | ||
detailing the estimated capital costs payable to one or | ||
more contractors or suppliers for the engineering, | ||
procurement and construction of the components | ||
comprising the initial clean coal facility and the | ||
estimated costs of operation and maintenance of the | ||
facility. The facility cost report shall include: | ||
(i) an estimate of the capital cost of the core | ||
plant based on one or more front end engineering | ||
and design studies for the gasification island and | ||
related facilities. The core plant shall include | ||
all civil, structural, mechanical, electrical, | ||
control, and safety systems. | ||
(ii) an estimate of the capital cost of the | ||
balance of the plant, including any capital costs | ||
associated with sequestration of carbon dioxide | ||
emissions and all interconnects and interfaces | ||
required to operate the facility, such as | ||
transmission of electricity, construction or | ||
backfeed power supply, pipelines to transport | ||
substitute natural gas or carbon dioxide, potable | ||
water supply, natural gas supply, water supply, | ||
water discharge, landfill, access roads, and coal | ||
delivery. |
The quoted construction costs shall be expressed | ||
in nominal dollars as of the date that the quote is | ||
prepared and shall include (1) capitalized financing | ||
costs during construction,
(2) taxes, insurance, and | ||
other owner's costs, and (3) an assumed escalation in | ||
materials and labor beyond the date as of which the | ||
construction cost quote is expressed. | ||
(B) The front end engineering and design study for | ||
the gasification island and the cost study for the | ||
balance of plant shall include sufficient design work | ||
to permit quantification of major categories of | ||
materials, commodities and labor hours, and receipt of | ||
quotes from vendors of major equipment required to | ||
construct and operate the clean coal facility. | ||
(C) The facility cost report shall also include an | ||
operating and maintenance cost quote that will provide | ||
the estimated cost of delivered fuel, personnel, | ||
maintenance contracts, chemicals, catalysts, | ||
consumables, spares, and other fixed and variable | ||
operations and maintenance costs. | ||
(a) The delivered fuel cost estimate will be | ||
provided by a recognized third party expert or | ||
experts in the fuel and transportation industries. | ||
(b) The balance of the operating and | ||
maintenance cost quote, excluding delivered fuel | ||
costs will be developed based on the inputs |
provided by duly licensed engineering and | ||
construction firms performing the construction | ||
cost quote, potential vendors under long-term | ||
service agreements and plant operating agreements, | ||
or recognized third party plant operator or | ||
operators. | ||
The operating and maintenance cost quote | ||
(including the cost of the front end engineering | ||
and design study) shall be expressed in nominal | ||
dollars as of the date that the quote is prepared | ||
and shall include (1) taxes, insurance, and other | ||
owner's costs, and (2) an assumed escalation in | ||
materials and labor beyond the date as of which the | ||
operating and maintenance cost quote is expressed. | ||
(D) The facility cost report shall also include (i) | ||
an analysis of the initial clean coal facility's | ||
ability to deliver power and energy into the applicable | ||
regional transmission organization markets and (ii) an | ||
analysis of the expected capacity factor for the | ||
initial clean coal facility. | ||
(E) Amounts paid to third parties unrelated to the | ||
owner or owners of the initial clean coal facility to | ||
prepare the core plant construction cost quote, | ||
including the front end engineering and design study, | ||
and the operating and maintenance cost quote will be | ||
reimbursed through Coal Development Bonds. |
(5) Re-powering and retrofitting coal-fired power | ||
plants previously owned by Illinois utilities to qualify as | ||
clean coal facilities. During the 2009 procurement | ||
planning process and thereafter, the Agency and the | ||
Commission shall consider sourcing agreements covering | ||
electricity generated by power plants that were previously | ||
owned by Illinois utilities and that have been or will be | ||
converted into clean coal facilities, as defined by Section | ||
1-10 of this Act. Pursuant to such procurement planning | ||
process, the owners of such facilities may propose to the | ||
Agency sourcing agreements with utilities and alternative | ||
retail electric suppliers required to comply with | ||
subsection (d) of this Section and item (5) of subsection | ||
(d) of Section 16-115 of the Public Utilities Act, covering | ||
electricity generated by such facilities. In the case of | ||
sourcing agreements that are power purchase agreements, | ||
the contract price for electricity sales shall be | ||
established on a cost of service basis. In the case of | ||
sourcing agreements that are contracts for differences, | ||
the contract price from which the reference price is | ||
subtracted shall be established on a cost of service basis. | ||
The Agency and the Commission may approve any such utility | ||
sourcing agreements that do not exceed cost-based | ||
benchmarks developed by the procurement administrator, in | ||
consultation with the Commission staff, Agency staff and | ||
the procurement monitor, subject to Commission review and |
approval. The Commission shall have authority to inspect | ||
all books and records associated with these clean coal | ||
facilities during the term of any such contract. | ||
(6) Costs incurred under this subsection (d) or | ||
pursuant to a contract entered into under this subsection | ||
(d) shall be deemed prudently incurred and reasonable in | ||
amount and the electric utility shall be entitled to full | ||
cost recovery pursuant to the tariffs filed with the | ||
Commission. | ||
(e) The draft procurement plans are subject to public | ||
comment, as required by Section 16-111.5 of the Public | ||
Utilities Act. | ||
(f) The Agency shall submit the final procurement plan | ||
to the Commission. The Agency shall revise a procurement | ||
plan if the Commission determines that it does not meet the | ||
standards set forth in Section 16-111.5 of the Public | ||
Utilities Act. | ||
(g) The Agency shall assess fees to each affected | ||
utility to recover the costs incurred in preparation of the | ||
annual procurement plan for the utility. | ||
(h) The Agency shall assess fees to each bidder to | ||
recover the costs incurred in connection with a competitive | ||
procurement process.
| ||
(Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09; | ||
96-159, eff. 8-10-09; 96-1437, eff. 8-17-10.) |
Section 10. The Public Utilities Act is amended by changing | ||
Sections 8-103, 16-107.5, 16-111.5, 16-111.7, and 16-128 and by | ||
adding Sections 8-103A, 16-108.5, 16-108.6, 16-108.7, | ||
16-108.8, 16-111.5B, and 16-128A as follows:
| ||
(220 ILCS 5/8-103)
| ||
Sec. 8-103. Energy efficiency and demand-response | ||
measures. | ||
(a) It is the policy of the State that electric utilities | ||
are required to use cost-effective energy efficiency and | ||
demand-response measures to reduce delivery load. Requiring | ||
investment in cost-effective energy efficiency and | ||
demand-response measures will reduce direct and indirect costs | ||
to consumers by decreasing environmental impacts and by | ||
avoiding or delaying the need for new generation, transmission, | ||
and distribution infrastructure. It serves the public interest | ||
to allow electric utilities to recover costs for reasonably and | ||
prudently incurred expenses for energy efficiency and | ||
demand-response measures. As used in this Section, | ||
"cost-effective" means that the measures satisfy the total | ||
resource cost test. The low-income measures described in | ||
subsection (f)(4) of this Section shall not be required to meet | ||
the total resource cost test. For purposes of this Section, the | ||
terms "energy-efficiency", "demand-response", "electric | ||
utility", and "total resource cost test" shall have the | ||
meanings set forth in the Illinois Power Agency Act. For |
purposes of this Section, the amount per kilowatthour means the | ||
total amount paid for electric service expressed on a per | ||
kilowatthour basis. For purposes of this Section, the total | ||
amount paid for electric service includes without limitation | ||
estimated amounts paid for supply, transmission, distribution, | ||
surcharges, and add-on-taxes. | ||
(b) Electric utilities shall implement cost-effective | ||
energy efficiency measures to meet the following incremental | ||
annual energy savings goals: | ||
(1) 0.2% of energy delivered in the year commencing | ||
June 1, 2008; | ||
(2) 0.4% of energy delivered in the year commencing | ||
June 1, 2009; | ||
(3) 0.6% of energy delivered in the year commencing | ||
June 1, 2010; | ||
(4) 0.8% of energy delivered in the year commencing | ||
June 1, 2011; | ||
(5) 1% of energy delivered in the year commencing June | ||
1, 2012; | ||
(6) 1.4% of energy delivered in the year commencing | ||
June 1, 2013; | ||
(7) 1.8% of energy delivered in the year commencing | ||
June 1, 2014; and | ||
(8) 2% of energy delivered in the year commencing June | ||
1, 2015 and each year thereafter. | ||
(c) Electric utilities shall implement cost-effective |
demand-response measures to reduce peak demand by 0.1% over the | ||
prior year for eligible retail customers, as defined in Section | ||
16-111.5 of this Act, and for customers that elect hourly | ||
service from the utility pursuant to Section 16-107 of this | ||
Act, provided those customers have not been declared | ||
competitive. This requirement commences June 1, 2008 and | ||
continues for 10 years. | ||
(d) Notwithstanding the requirements of subsections (b) | ||
and (c) of this Section, an electric utility shall reduce the | ||
amount of energy efficiency and demand-response measures | ||
implemented in any single year by an amount necessary to limit | ||
the estimated average increase in the amounts paid by retail | ||
customers in connection with electric service due to the cost | ||
of those measures to: | ||
(1) in 2008, no more than 0.5% of the amount paid per | ||
kilowatthour by those customers during the year ending May | ||
31, 2007; | ||
(2) in 2009, the greater of an additional 0.5% of the | ||
amount paid per kilowatthour by those customers during the | ||
year ending May 31, 2008 or 1% of the amount paid per | ||
kilowatthour by those customers during the year ending May | ||
31, 2007; | ||
(3) in 2010, the greater of an additional 0.5% of the | ||
amount paid per kilowatthour by those customers during the | ||
year ending May 31, 2009 or 1.5% of the amount paid per | ||
kilowatthour by those customers during the year ending May |
31, 2007; | ||
(4) in 2011, the greater of an additional 0.5% of the | ||
amount paid per kilowatthour by those customers during the | ||
year ending May 31, 2010 or 2% of the amount paid per | ||
kilowatthour by those customers during the year ending May | ||
31, 2007; and
| ||
(5) thereafter, the amount of energy efficiency and | ||
demand-response measures implemented for any single year | ||
shall be reduced by an amount necessary to limit the | ||
estimated average net increase due to the cost of these | ||
measures included in the amounts paid by eligible retail | ||
customers in connection with electric service to no more | ||
than the greater of 2.015% of the amount paid per | ||
kilowatthour by those customers during the year ending May | ||
31, 2007 or the incremental amount per kilowatthour paid | ||
for these measures in 2011.
| ||
No later than June 30, 2011, the Commission shall review | ||
the limitation on the amount of energy efficiency and | ||
demand-response measures implemented pursuant to this Section | ||
and report to the General Assembly its findings as to whether | ||
that limitation unduly constrains the procurement of energy | ||
efficiency and demand-response measures. | ||
(e) Electric utilities shall be responsible for overseeing | ||
the design, development, and filing of energy efficiency and | ||
demand-response plans with the Commission. Electric utilities | ||
shall implement 100% of the demand-response measures in the |
plans. Electric utilities shall implement 75% of the energy | ||
efficiency measures approved by the Commission, and may, as | ||
part of that implementation, outsource various aspects of | ||
program development and implementation. The remaining 25% of | ||
those energy efficiency measures approved by the Commission | ||
shall be implemented by the Department of Commerce and Economic | ||
Opportunity, and must be designed in conjunction with the | ||
utility and the filing process. The Department may outsource | ||
development and implementation of energy efficiency measures. | ||
A minimum of 10% of the entire portfolio of cost-effective | ||
energy efficiency measures shall be procured from units of | ||
local government, municipal corporations, school districts, | ||
and community college districts. The Department shall | ||
coordinate the implementation of these measures. | ||
The apportionment of the dollars to cover the costs to | ||
implement the Department's share of the portfolio of energy | ||
efficiency measures shall be made to the Department once the | ||
Department has executed grants or contracts for energy | ||
efficiency measures and provided supporting documentation for | ||
those grants and the contracts to the utility. | ||
The details of the measures implemented by the Department | ||
shall be submitted by the Department to the Commission in | ||
connection with the utility's filing regarding the energy | ||
efficiency and demand-response measures that the utility | ||
implements. | ||
A utility providing approved energy efficiency and |
demand-response measures in the State shall be permitted to | ||
recover costs of those measures through an automatic adjustment | ||
clause tariff filed with and approved by the Commission. The | ||
tariff shall be established outside the context of a general | ||
rate case. Each year the Commission shall initiate a review to | ||
reconcile any amounts collected with the actual costs and to | ||
determine the required adjustment to the annual tariff factor | ||
to match annual expenditures. | ||
Each utility shall include, in its recovery of costs, the | ||
costs estimated for both the utility's and the Department's | ||
implementation of energy efficiency and demand-response | ||
measures. Costs collected by the utility for measures | ||
implemented by the Department shall be submitted to the | ||
Department pursuant to Section 605-323 of the Civil | ||
Administrative Code of Illinois and shall be used by the | ||
Department solely for the purpose of implementing these | ||
measures. A utility shall not be required to advance any moneys | ||
to the Department but only to forward such funds as it has | ||
collected. The Department shall report to the Commission on an | ||
annual basis regarding the costs actually incurred by the | ||
Department in the implementation of the measures. Any changes | ||
to the costs of energy efficiency measures as a result of plan | ||
modifications shall be appropriately reflected in amounts | ||
recovered by the utility and turned over to the Department. | ||
The portfolio of measures, administered by both the | ||
utilities and the Department, shall, in combination, be |
designed to achieve the annual savings targets described in | ||
subsections (b) and (c) of this Section, as modified by | ||
subsection (d) of this Section. | ||
The utility and the Department shall agree upon a | ||
reasonable portfolio of measures and determine the measurable | ||
corresponding percentage of the savings goals associated with | ||
measures implemented by the utility or Department. | ||
No utility shall be assessed a penalty under subsection (f) | ||
of this Section for failure to make a timely filing if that | ||
failure is the result of a lack of agreement with the | ||
Department with respect to the allocation of responsibilities | ||
or related costs or target assignments. In that case, the | ||
Department and the utility shall file their respective plans | ||
with the Commission and the Commission shall determine an | ||
appropriate division of measures and programs that meets the | ||
requirements of this Section. | ||
If the Department is unable to meet incremental annual | ||
performance goals for the portion of the portfolio implemented | ||
by the Department, then the utility and the Department shall | ||
jointly submit a modified filing to the Commission explaining | ||
the performance shortfall and recommending an appropriate | ||
course going forward, including any program modifications that | ||
may be appropriate in light of the evaluations conducted under | ||
item (7) of subsection (f) of this Section. In this case, the | ||
utility obligation to collect the Department's costs and turn | ||
over those funds to the Department under this subsection (e) |
shall continue only if the Commission approves the | ||
modifications to the plan proposed by the Department. | ||
(f) No later than November 15, 2007, each electric utility | ||
shall file an energy efficiency and demand-response plan with | ||
the Commission to meet the energy efficiency and | ||
demand-response standards for 2008 through 2010. No later than | ||
October 1, 2010, each electric utility shall file an energy | ||
efficiency and demand-response plan with the Commission to meet | ||
the energy efficiency and demand-response standards for 2011 | ||
through 2013. Every 3 years thereafter, each electric utility | ||
shall file, no later than September October 1, an energy | ||
efficiency and demand-response plan with the Commission. If a | ||
utility does not file such a plan by September October 1 of an | ||
applicable year, it shall face a penalty of $100,000 per day | ||
until the plan is filed. Each utility's plan shall set forth | ||
the utility's proposals to meet the utility's portion of the | ||
energy efficiency standards identified in subsection (b) and | ||
the demand-response standards identified in subsection (c) of | ||
this Section as modified by subsections (d) and (e), taking | ||
into account the unique circumstances of the utility's service | ||
territory. The Commission shall seek public comment on the | ||
utility's plan and shall issue an order approving or | ||
disapproving each plan within 5 3 months after its submission. | ||
If the Commission disapproves a plan, the Commission shall, | ||
within 30 days, describe in detail the reasons for the | ||
disapproval and describe a path by which the utility may file a |
revised draft of the plan to address the Commission's concerns | ||
satisfactorily. If the utility does not refile with the | ||
Commission within 60 days, the utility shall be subject to | ||
penalties at a rate of $100,000 per day until the plan is | ||
filed. This process shall continue, and penalties shall accrue, | ||
until the utility has successfully filed a portfolio of energy | ||
efficiency and demand-response measures. Penalties shall be | ||
deposited into the Energy Efficiency Trust Fund. In submitting | ||
proposed energy efficiency and demand-response plans and | ||
funding levels to meet the savings goals adopted by this Act | ||
the utility shall: | ||
(1) Demonstrate that its proposed energy efficiency | ||
and demand-response measures will achieve the requirements | ||
that are identified in subsections (b) and (c) of this | ||
Section, as modified by subsections (d) and (e). | ||
(2) Present specific proposals to implement new | ||
building and appliance standards that have been placed into | ||
effect. | ||
(3) Present estimates of the total amount paid for | ||
electric service expressed on a per kilowatthour basis | ||
associated with the proposed portfolio of measures | ||
designed to meet the requirements that are identified in | ||
subsections (b) and (c) of this Section, as modified by | ||
subsections (d) and (e). | ||
(4) Coordinate with the Department to present a | ||
portfolio of energy efficiency measures proportionate to |
the share of total annual utility revenues in Illinois from | ||
households at or below 150% of the poverty level. The | ||
energy efficiency programs shall be targeted to households | ||
with incomes at or below 80% of area median income. | ||
(5) Demonstrate that its overall portfolio of energy | ||
efficiency and demand-response measures, not including | ||
programs covered by item (4) of this subsection (f), are | ||
cost-effective using the total resource cost test and | ||
represent a diverse cross-section of opportunities for | ||
customers of all rate classes to participate in the | ||
programs. | ||
(6) Include a proposed cost-recovery tariff mechanism | ||
to fund the proposed energy efficiency and demand-response | ||
measures and to ensure the recovery of the prudently and | ||
reasonably incurred costs of Commission-approved programs. | ||
(7) Provide for an annual independent evaluation of the | ||
performance of the cost-effectiveness of the utility's | ||
portfolio of measures and the Department's portfolio of | ||
measures, as well as a full review of the 3-year results of | ||
the broader net program impacts and, to the extent | ||
practical, for adjustment of the measures on a | ||
going-forward basis as a result of the evaluations. The | ||
resources dedicated to evaluation shall not exceed 3% of | ||
portfolio resources in any given year. | ||
(g) No more than 3% of energy efficiency and | ||
demand-response program revenue may be allocated for |
demonstration of breakthrough equipment and devices. | ||
(h) This Section does not apply to an electric utility that | ||
on December 31, 2005 provided electric service to fewer than | ||
100,000 customers in Illinois. | ||
(i) If, after 2 years, an electric utility fails to meet | ||
the efficiency standard specified in subsection (b) of this | ||
Section, as modified by subsections (d) and (e), it shall make | ||
a contribution to the Low-Income Home Energy Assistance | ||
Program. The combined total liability for failure to meet the | ||
goal shall be $1,000,000, which shall be assessed as follows: a | ||
large electric utility shall pay $665,000, and a medium | ||
electric utility shall pay $335,000. If, after 3 years, an | ||
electric utility fails to meet the efficiency standard | ||
specified in subsection (b) of this Section, as modified by | ||
subsections (d) and (e), it shall make a contribution to the | ||
Low-Income Home Energy Assistance Program. The combined total | ||
liability for failure to meet the goal shall be $1,000,000, | ||
which shall be assessed as follows: a large electric utility | ||
shall pay $665,000, and a medium electric utility shall pay | ||
$335,000. In addition, the responsibility for implementing the | ||
energy efficiency measures of the utility making the payment | ||
shall be transferred to the Illinois Power Agency if, after 3 | ||
years, or in any subsequent 3-year period, the utility fails to | ||
meet the efficiency standard specified in subsection (b) of | ||
this Section, as modified by subsections (d) and (e). The | ||
Agency shall implement a competitive procurement program to |
procure resources necessary to meet the standards specified in | ||
this Section as modified by subsections (d) and (e), with costs | ||
for those resources to be recovered in the same manner as | ||
products purchased through the procurement plan as provided in | ||
Section 16-111.5. The Director shall implement this | ||
requirement in connection with the procurement plan as provided | ||
in Section 16-111.5. | ||
For purposes of this Section, (i) a "large electric | ||
utility" is an electric utility that, on December 31, 2005, | ||
served more than 2,000,000 electric customers in Illinois; (ii) | ||
a "medium electric utility" is an electric utility that, on | ||
December 31, 2005, served 2,000,000 or fewer but more than | ||
100,000 electric customers in Illinois; and (iii) Illinois | ||
electric utilities that are affiliated by virtue of a common | ||
parent company are considered a single electric utility. | ||
(j) If, after 3 years, or any subsequent 3-year period, the | ||
Department fails to implement the Department's share of energy | ||
efficiency measures required by the standards in subsection | ||
(b), then the Illinois Power Agency may assume responsibility | ||
for and control of the Department's share of the required | ||
energy efficiency measures. The Agency shall implement a | ||
competitive procurement program to procure resources necessary | ||
to meet the standards specified in this Section, with the costs | ||
of these resources to be recovered in the same manner as | ||
provided for the Department in this Section.
| ||
(k) No electric utility shall be deemed to have failed to |
meet the energy efficiency standards to the extent any such | ||
failure is due to a failure of the Department or the Agency.
| ||
(Source: P.A. 95-481, eff. 8-28-07; 95-876, eff. 8-21-08; | ||
96-33, eff. 7-10-09; 96-159, eff. 8-10-09; 96-1000, eff. | ||
7-2-10.)
| ||
(220 ILCS 5/8-103A new) | ||
Sec. 8-103A. Energy efficiency analysis. Beginning in | ||
2013, an electric utility subject to the requirements of | ||
Section 8-103 of this Act shall include in its energy | ||
efficiency and demand-response plan submitted pursuant to | ||
subsection (f) of Section 8-103 an analysis of additional | ||
cost-effective energy efficiency measures that could be | ||
implemented, by customer class, absent the limitations set | ||
forth in subsection (d) of Section 8-103. In seeking public | ||
comment on the electric utility's plan pursuant to subsection | ||
(f) of Section 8-103, the Commission shall include, beginning | ||
in 2013, the assessment of additional cost-effective energy | ||
efficiency measures submitted pursuant to this Section. For | ||
purposes of this Section, the term "energy efficiency" shall | ||
have the meaning set forth in Section 1-10 of the Illinois | ||
Power Agency Act, and the term "cost-effective" shall have the | ||
meaning set forth in subsection (a) of Section 8-103 of this | ||
Act. | ||
(220 ILCS 5/16-107.5)
|
Sec. 16-107.5. Net electricity metering. | ||
(a) The Legislature finds and declares that a program to | ||
provide net electricity
metering, as defined in this Section,
| ||
for eligible customers can encourage private investment in | ||
renewable energy
resources, stimulate
economic growth, enhance | ||
the continued diversification of Illinois' energy
resource | ||
mix, and protect
the Illinois environment.
| ||
(b) As used in this Section, (i) "eligible customer" means | ||
a retail
customer that owns or operates a
solar, wind, or other | ||
eligible renewable electrical generating facility with a rated | ||
capacity of not more than
2,000 kilowatts that is
located on | ||
the customer's premises and is intended primarily to offset the | ||
customer's
own electrical requirements; (ii) "electricity | ||
provider" means an electric utility or alternative retail | ||
electric supplier; (iii) "eligible renewable electrical | ||
generating facility" means a generator powered by solar | ||
electric energy, wind, dedicated crops grown for electricity | ||
generation, agricultural residues, untreated and unadulterated | ||
wood waste, landscape trimmings, livestock manure, anaerobic | ||
digestion of livestock or food processing waste, fuel cells or | ||
microturbines powered by renewable fuels, or hydroelectric | ||
energy; and (iv) "net electricity metering" (or "net metering") | ||
means the
measurement, during the
billing period applicable to | ||
an eligible customer, of the net amount of
electricity supplied | ||
by an
electricity provider to the customer's premises or | ||
provided to the electricity provider by the customer.
|
(c) A net metering facility shall be equipped with metering | ||
equipment that can measure the flow of electricity in both | ||
directions at the same rate. | ||
(1) For eligible residential customers whose electric | ||
service has not been declared competitive pursuant to | ||
Section 16-113 of this Act and whose electric delivery | ||
service is provided and measured on a kilowatt-hour basis | ||
and electric supply service is not provided based on hourly | ||
pricing , this shall typically be accomplished through use | ||
of a single, bi-directional meter. If the eligible | ||
customer's existing electric revenue meter does not meet | ||
this requirement, the electricity provider shall arrange | ||
for the local electric utility or a meter service provider | ||
to install and maintain a new revenue meter at the | ||
electricity provider's expense. | ||
(2) For eligible customers whose electric service has | ||
not been declared competitive pursuant to Section 16-113 of | ||
this Act and whose electric delivery service is provided | ||
and measured on a kilowatt demand basis and electric supply | ||
service is not provided based on hourly pricing, this shall | ||
typically be accomplished through use of a dual channel | ||
meter capable of measuring the flow of electricity both | ||
into and out of the customer's facility at the same rate | ||
and ratio. If such customer's existing electric revenue | ||
meter does not meet this requirement, then the electricity | ||
provider shall arrange for the local electric utility or a |
meter service provider to install and maintain a new | ||
revenue meter at the electricity provider's expense. | ||
(3) For all other eligible customers, For | ||
non-residential customers, the electricity provider may | ||
arrange for the local electric utility or a meter service | ||
provider to install and maintain metering equipment | ||
capable of measuring the flow of electricity both into and | ||
out of the customer's facility at the same rate and ratio, | ||
typically through the use of a dual channel meter. If the | ||
eligible customer's existing electric revenue meter does | ||
not meet this requirement, then the costs of installing | ||
such equipment shall be paid for by the customer. For | ||
generators with a nameplate rating of 40 kilowatts and | ||
below, the costs of installing such equipment shall be paid | ||
for by the electricity provider. For generators with a | ||
nameplate rating over 40 kilowatts and up to 2,000 | ||
kilowatts capacity, the costs of installing such equipment | ||
shall be paid for by the customer. Any subsequent revenue | ||
meter change necessitated by any eligible customer shall be | ||
paid for by the customer.
| ||
(d) An electricity provider shall
measure and charge or | ||
credit for the net
electricity supplied to eligible customers | ||
or provided by eligible customers whose electric service has | ||
not been declared competitive pursuant to Section 16-113 of the | ||
Act and whose electric delivery service is provided and | ||
measured on a kilowatt-hour basis and electric supply service |
is not provided based on hourly pricing in
the following | ||
manner:
| ||
(1) If the amount of electricity used by the customer | ||
during the billing
period exceeds the
amount of electricity | ||
produced by the customer, the electricity provider shall | ||
charge the customer for the net electricity supplied to and | ||
used
by the customer as provided in subsection (e-5) (e) of | ||
this Section.
| ||
(2) If the amount of electricity produced by a customer | ||
during the billing period exceeds the amount of electricity | ||
used by the customer during that billing period, the | ||
electricity provider supplying that customer shall apply a | ||
1:1 kilowatt-hour credit to a subsequent bill for service | ||
to the customer for the net electricity supplied to the | ||
electricity provider. The electricity provider shall | ||
continue to carry over any excess kilowatt-hour credits | ||
earned and apply those credits to subsequent billing | ||
periods to offset any customer-generator consumption in | ||
those billing periods until all credits are used or until | ||
the end of the annualized period.
| ||
(3) At the end of the year or annualized over the | ||
period that service is supplied by means of net metering, | ||
or in the event that the retail customer terminates service | ||
with the electricity provider prior to the end of the year | ||
or the annualized period, any remaining credits in the | ||
customer's account shall expire.
|
(e) An electricity provider shall measure and charge or | ||
credit for the net electricity supplied to eligible customers | ||
whose electric service has not been declared competitive | ||
pursuant to Section 16-113 of this Act and whose electric | ||
delivery service is provided and measured on a kilowatt demand | ||
basis and electric supply service is not provided based on | ||
hourly pricing in the following manner: | ||
(1) If the amount of electricity used by the customer | ||
during the billing period exceeds the amount of electricity | ||
produced by the customer, then the electricity provider | ||
shall charge the customer for the net electricity supplied | ||
to and used by the customer as provided in subsection (e-5) | ||
of this Section, provided that the electricity provider | ||
shall assess and the customer remains responsible for all | ||
taxes, fees, and utility delivery charges that would | ||
otherwise be applicable to the gross amount of | ||
kilowatt-hours supplied to the eligible customer by the | ||
electricity provider. | ||
(2) If the amount of electricity produced by a customer | ||
during the billing period exceeds the amount of electricity | ||
used by the customer during that billing period, then the | ||
electricity provider supplying that customer shall apply a | ||
1:1 kilowatt-hour credit that reflects the kilowatt-hour | ||
based charges in the customer's electric service rate to a | ||
subsequent bill for service to the customer for the net | ||
electricity supplied to the electricity provider. The |
electricity provider shall continue to carry over any | ||
excess kilowatt-hour credits earned and apply those | ||
credits to subsequent billing periods to offset any | ||
customer-generator consumption in those billing periods | ||
until all credits are used or until the end of the | ||
annualized period. | ||
(3) At the end of the year or annualized over the | ||
period that service is supplied by means of net metering, | ||
or in the event that the retail customer terminates service | ||
with the electricity provider prior to the end of the year | ||
or the annualized period, any remaining credits in the | ||
customer's account shall expire. | ||
(e-5) An electricity provider shall provide electric | ||
service to eligible net metering customers whose electric | ||
service has not been declared competitive pursuant to Section | ||
16-113 of this Act and whose electric supply service is not | ||
provided based on hourly pricing who utilize net metering | ||
electric service at non-discriminatory rates that are | ||
identical, with respect to rate structure, retail rate | ||
components, and any monthly charges, to the rates that the | ||
customer would be charged if not a net metering customer. An | ||
electricity provider shall not charge net metering customers | ||
any fee or charge or require additional equipment, insurance, | ||
or any other requirements not specifically authorized by | ||
interconnection standards authorized by the Commission, unless | ||
the fee, charge, or other requirement would apply to other |
similarly situated customers who are not net metering | ||
customers. The customer will remain responsible for all taxes, | ||
fees, and utility delivery charges that would otherwise be | ||
applicable to the net amount of electricity used by the | ||
customer. Subsections (c) through (e) of this Section shall not | ||
be construed to prevent an arms-length agreement between an | ||
electricity provider and an eligible customer that sets forth | ||
different prices, terms, and conditions for the provision of | ||
net metering service, including, but not limited to, the | ||
provision of the appropriate metering equipment for | ||
non-residential customers.
| ||
(f) Notwithstanding the requirements of subsections (c) | ||
through (e-5) (e) of this Section, an electricity provider must | ||
require dual-channel metering for customers operating eligible | ||
renewable electrical generating facilities with a nameplate | ||
rating up to 2,000 kilowatts and to whom the provisions of | ||
neither subsection (d) nor (e) of this Section apply | ||
non-residential customers operating eligible renewable | ||
electrical generating facilities with a nameplate rating over | ||
40 kilowatts and up to 2,000 kilowatts . In such cases, | ||
electricity charges and credits shall be determined as follows:
| ||
(1) The electricity provider shall assess and the | ||
customer remains responsible for all taxes, fees, and | ||
utility delivery charges that would otherwise be | ||
applicable to the gross amount of kilowatt-hours supplied | ||
to the eligible customer by the electricity provider. |
(2) Each month that service is supplied by means of | ||
dual-channel metering, the electricity provider shall | ||
compensate the eligible customer for any excess | ||
kilowatt-hour credits at the electricity provider's | ||
avoided cost of electricity supply over the monthly period | ||
or as otherwise specified by the terms of a power-purchase | ||
agreement negotiated between the customer and electricity | ||
provider. | ||
(3) For all eligible net metering customers taking | ||
service from an electricity provider under contracts or | ||
tariffs employing time of use rates, any monthly | ||
consumption of electricity shall be calculated according | ||
to the terms of the contract or tariff to which the same | ||
customer would be assigned to or be eligible for if the | ||
customer was not a net metering customer. When those same | ||
customer-generators are net generators during any discrete | ||
time of use period, the net kilowatt-hours produced shall | ||
be valued at the same price per kilowatt-hour as the | ||
electric service provider would charge for retail | ||
kilowatt-hour sales during that same time of use period.
| ||
(g) For purposes of federal and State laws providing | ||
renewable energy credits or greenhouse gas credits, the | ||
eligible customer shall be treated as owning and having title | ||
to the renewable energy attributes, renewable energy credits, | ||
and greenhouse gas emission credits related to any electricity | ||
produced by the qualified generating unit. The electricity |
provider may not condition participation in a net metering | ||
program on the signing over of a customer's renewable energy | ||
credits; provided, however, this subsection (g) shall not be | ||
construed to prevent an arms-length agreement between an | ||
electricity provider and an eligible customer that sets forth | ||
the ownership or title of the credits.
| ||
(h) Within 120 days after the effective date of this
| ||
amendatory Act of the 95th General Assembly, the Commission | ||
shall establish standards for net metering and, if the | ||
Commission has not already acted on its own initiative, | ||
standards for the interconnection of eligible renewable | ||
generating equipment to the utility system. The | ||
interconnection standards shall address any procedural | ||
barriers, delays, and administrative costs associated with the | ||
interconnection of customer-generation while ensuring the | ||
safety and reliability of the units and the electric utility | ||
system. The Commission shall consider the Institute of | ||
Electrical and Electronics Engineers (IEEE) Standard 1547 and | ||
the issues of (i) reasonable and fair fees and costs, (ii) | ||
clear timelines for major milestones in the interconnection | ||
process, (iii) nondiscriminatory terms of agreement, and (iv) | ||
any best practices for interconnection of distributed | ||
generation.
| ||
(i) All electricity providers shall begin to offer net | ||
metering
no later than April 1,
2008.
| ||
(j) An electricity provider shall provide net metering to |
eligible
customers until the load of its net metering customers | ||
equals 5% 1% of
the total peak demand supplied by
that | ||
electricity provider during the
previous year. Electricity | ||
providers are authorized to offer net metering beyond
the 5% 1% | ||
level if they so choose. The number of new eligible customers | ||
with generators that have a nameplate rating of 40 kilowatts | ||
and below will be limited to 200 total new billing accounts for | ||
the utilities (Ameren Companies, ComEd, and MidAmerican) for | ||
the period of April 1, 2008 through March 31, 2009.
| ||
(k) Each electricity provider shall maintain records and | ||
report annually to the Commission the total number of net | ||
metering customers served by the provider, as well as the type, | ||
capacity, and energy sources of the generating systems used by | ||
the net metering customers. Nothing in this Section shall limit | ||
the ability of an electricity provider to request the redaction | ||
of information deemed by the Commission to be confidential | ||
business information. Each electricity provider shall notify | ||
the Commission when the total generating capacity of its net | ||
metering customers is equal to or in excess of the 5% 1% cap | ||
specified in subsection (j) of this Section. | ||
(l) Notwithstanding the definition of "eligible customer" | ||
in item (i) of subsection (b) of this Section, each electricity | ||
provider shall consider whether to allow meter aggregation for | ||
the purposes of net metering on:
| ||
(1) properties owned or leased by multiple customers | ||
that contribute to the operation of an eligible renewable |
electrical generating facility, such as a community-owned | ||
wind project , a community-owned biomass project, a | ||
community-owned solar project, or a community methane | ||
digester processing livestock waste from multiple sources; | ||
and
| ||
(2) individual units, apartments, or properties owned | ||
or leased by multiple customers and collectively served by | ||
a common eligible renewable electrical generating | ||
facility, such as an apartment building served by | ||
photovoltaic panels on the roof.
| ||
For the purposes of this subsection (l), "meter | ||
aggregation" means the combination of reading and billing on a | ||
pro rata basis for the types of eligible customers described in | ||
this Section.
| ||
(m) Nothing in this Section shall affect the right of an | ||
electricity provider to continue to provide, or the right of a | ||
retail customer to continue to receive service pursuant to a | ||
contract for electric service between the electricity provider | ||
and the retail customer in accordance with the prices, terms, | ||
and conditions provided for in that contract. Either the | ||
electricity provider or the customer may require compliance | ||
with the prices, terms, and conditions of the contract.
| ||
(Source: P.A. 95-420, eff. 8-24-07.) | ||
(220 ILCS 5/16-108.5 new) | ||
Sec. 16-108.5. Infrastructure investment and |
modernization; regulatory reform. | ||
(a) The General Assembly recognizes that for well over a | ||
century Illinois residents and businesses have been | ||
well-served by and have benefitted from a comprehensive | ||
electric utility system. The General Assembly finds that | ||
electric utilities are now entering a new construction cycle | ||
that is needed to refurbish, rebuild, modernize, and expand | ||
systems to continue to provide safe, reliable, and affordable | ||
service to the State's current and future utility customers in | ||
this newly digitized age. In particular, the General Assembly | ||
finds that it is the policy of this State that significant | ||
investments must be made in the State's electric grid over the | ||
next decade to modernize and upgrade transmission and | ||
distribution facilities in the State. These investments will | ||
ensure that the State's electric utility infrastructure will | ||
promote future economic development in the State and that the | ||
State's electric utilities will be able to continue to provide | ||
quality electric service to their customers, including | ||
innovative technological offerings that will enhance customer | ||
experience and choice such as smart meters that are dependent | ||
on a modernized or Smart Grid. These investments, including | ||
programs to reinforce the safety and security of high voltage | ||
transmission lines, will also ensure that the State's electric | ||
utility infrastructure continues to be safe and reliable. The | ||
introduction of performance metrics will further ensure that | ||
reliability and other indicators are not just maintained but |
improved over the next decade. | ||
The General Assembly further recognizes that, in addition | ||
to attracting capital and businesses to the State, these | ||
investments will create training opportunities for the | ||
citizens of this State, all of which will create new employment | ||
opportunities for Illinoisans at a time when they are most | ||
needed, especially for minority-owned and female-owned | ||
business enterprises. The General Assembly further finds that | ||
regulatory reform measures that increase predictability, | ||
stability, and transparency in the ratemaking process are | ||
needed to promote prudent, long-term infrastructure investment | ||
and to mutually benefit the State's electric utilities and | ||
their customers, regulators, and investors. | ||
(b) For purposes of this Section, "participating utility" | ||
means an electric utility or a combination utility serving more | ||
than 1,000,000 customers in Illinois that voluntarily elects | ||
and commits to undertake the infrastructure investment program | ||
consisting of the commitments and obligations described in this | ||
subsection (b), notwithstanding any other provisions of this | ||
Act and without obtaining any approvals from the Commission or | ||
any other agency other than as set forth in this Section, | ||
regardless of whether any such approval would otherwise be | ||
required. "Combination utility" means a utility that, as of | ||
January 1, 2011, provided electric service to at least one | ||
million retail customers in Illinois and gas service to at | ||
least 500,000 retail customers in Illinois. A participating |
utility shall recover the expenditures made under the | ||
infrastructure investment program through the ratemaking | ||
process, including, but not limited to, the performance-based | ||
formula rate and process set forth in this Section. | ||
During the infrastructure investment program's peak | ||
program year, a participating utility other than a combination | ||
utility shall create 2,000 full-time equivalent jobs in | ||
Illinois, and a participating utility that is a combination | ||
utility shall create 450 full-time equivalent jobs in Illinois | ||
related to the provision of electric service, including direct | ||
jobs, contractor positions, and induced jobs. For purposes of | ||
this Section, "peak program year" means the consecutive | ||
12-month period with the highest number of full-time equivalent | ||
jobs that occurs between the beginning of investment year 2 and | ||
the end of investment year 4. | ||
A participating utility shall meet one of the following | ||
commitments, as applicable: | ||
(1) Beginning no later than 180 days after a | ||
participating utility other than a combination utility | ||
files a performance-based formula rate tariff pursuant to | ||
subsection (c) of this Section, or, beginning no later than | ||
January 1, 2012 if such utility files such | ||
performance-based formula rate tariff within 14 days of the | ||
effective date of this amendatory Act of the 97th General | ||
Assembly, the participating utility shall, except as | ||
provided in subsection (b-5): |
(A) over a 5-year period, invest an estimated | ||
$1,100,000,000 in electric system upgrades, | ||
modernization projects, and training facilities, | ||
including, but not limited to: | ||
(i) distribution infrastructure improvements | ||
totaling an estimated $1,000,000,000, including | ||
underground residential distribution cable | ||
injection and replacement and mainline cable | ||
system refurbishment and replacement projects; | ||
(ii) training facility construction or upgrade | ||
projects totaling an estimated $10,000,000, | ||
provided that, at a minimum, one such facility | ||
shall be located in a municipality having a | ||
population of more than 2 million residents and one | ||
such facility shall be located in a municipality | ||
having a population of more than 150,000 residents | ||
but fewer than 170,000 residents; any such new | ||
facility located in a municipality having a | ||
population of more than 2 million residents must be | ||
designed for the purpose of obtaining, and the | ||
owner of the facility shall apply for, | ||
certification under the United States Green | ||
Building Council's Leadership in Energy Efficiency | ||
Design Green Building Rating System; and | ||
(iii) wood pole inspection, treatment, and | ||
replacement programs; and |
(B) over a 10-year period, invest an estimated | ||
$1,500,000,000 to upgrade and modernize its | ||
transmission and distribution infrastructure and in | ||
Smart Grid electric system upgrades, including, but | ||
not limited to: | ||
(i) additional smart meters; | ||
(ii) distribution automation; | ||
(iii) associated cyber secure data | ||
communication network; and | ||
(iv) substation micro-processor relay | ||
upgrades. | ||
(2) Beginning no later than 180 days after a | ||
participating utility that is a combination utility files a | ||
performance-based formula rate tariff pursuant to | ||
subsection (c) of this Section, or, beginning no later than | ||
January 1, 2012 if such utility files such | ||
performance-based formula rate tariff within 14 days of the | ||
effective date of this amendatory Act of the 97th General | ||
Assembly, the participating utility shall, except as | ||
provided in subsection (b-5): | ||
(A) over a 10-year period, invest an estimated | ||
$265,000,000 in electric system upgrades, | ||
modernization projects, and training facilities, | ||
including, but not limited to: | ||
(i) distribution infrastructure improvements | ||
totaling an estimated $245,000,000, which may |
include bulk supply substations, transformers, | ||
reconductoring, and rebuilding overhead | ||
distribution and sub-transmission lines, | ||
underground residential distribution cable | ||
injection and replacement and mainline cable | ||
system refurbishment and replacement projects; | ||
(ii) training facility construction or upgrade | ||
projects totaling an estimated $1,000,000; any | ||
such new facility must be designed for the purpose | ||
of obtaining, and the owner of the facility shall | ||
apply for, certification under the United States | ||
Green Building Council's Leadership in Energy | ||
Efficiency Design Green Building Rating System; | ||
and | ||
(iii) wood pole inspection, treatment, and | ||
replacement programs; and | ||
(B) over a 10-year period, invest an estimated | ||
$360,000,000 to upgrade and modernize its transmission | ||
and distribution infrastructure and in Smart Grid | ||
electric system upgrades, including, but not limited | ||
to: | ||
(i) additional smart meters; | ||
(ii) distribution automation; | ||
(iii) associated cyber secure data | ||
communication network; and | ||
(iv) substation micro-processor relay |
upgrades. | ||
For purposes of this Section, "Smart Grid electric system | ||
upgrades" shall have the meaning set forth in subsection (a) of | ||
Section 16-108.6 of this Act. | ||
The investments in the infrastructure investment program | ||
described in this subsection (b) shall be incremental to the | ||
participating utility's annual capital investment program, as | ||
defined by, for purposes of this subsection (b), the | ||
participating utility's average capital spend for calendar | ||
years 2008, 2009, and 2010 as reported in the applicable | ||
Federal Energy Regulatory Commission (FERC) Form 1; provided | ||
that where one or more utilities have merged, the average | ||
capital spend shall be determined using the aggregate of the | ||
merged utilities' capital spend reported in FERC Form 1 for the | ||
years 2008, 2009, and 2010. | ||
Within 60 days after filing a tariff under subsection (c) | ||
of this Section, a participating utility shall submit to the | ||
Commission its plan, including scope, schedule, and staffing, | ||
for satisfying its infrastructure investment program | ||
commitments pursuant to this subsection (b). The submitted plan | ||
shall include a schedule and staffing plan for the next | ||
calendar year. The plan shall also include a plan for the | ||
creation, operation, and administration of a Smart Grid test | ||
bed as described in subsection (c) of Section 16-108.8. The | ||
plan need not allocate the work equally over the respective | ||
periods, but should allocate material increments throughout |
such periods commensurate with the work to be undertaken. No | ||
later than April 1 of each subsequent year, the utility shall | ||
submit to the Commission a report that includes any updates to | ||
the plan, a schedule for the next calendar year, the | ||
expenditures made for the prior calendar year and cumulatively, | ||
and the number of full-time equivalent jobs created for the | ||
prior calendar year and cumulatively. If the utility is | ||
materially deficient in satisfying a schedule or staffing plan, | ||
then the report must also include a corrective action plan to | ||
address the deficiency. The fact that the plan, implementation | ||
of the plan, or a schedule changes shall not imply the | ||
imprudence or unreasonableness of the infrastructure | ||
investment program, plan, or schedule. | ||
With respect to the participating utility's peak job | ||
commitment, if, after considering the utility's corrective | ||
action plan and compliance thereunder, the Commission enters an | ||
order finding, after notice and hearing, that a participating | ||
utility did not satisfy its peak job commitment described in | ||
this subsection (b) for reasons that are reasonably within its | ||
control, then the Commission shall also determine, after | ||
consideration of the evidence, including, but not limited to, | ||
evidence submitted by the Department of Commerce and Economic | ||
Opportunity and the utility, the deficiency in the number of | ||
full-time equivalent jobs during the peak program year due to | ||
such failure. The Commission shall notify the Department of any | ||
proceeding that is initiated pursuant to this paragraph. For |
each full-time equivalent job deficiency during the peak | ||
program year that the Commission finds as set forth in this | ||
paragraph, the participating utility shall, within 30 days | ||
after the entry of the Commission's order, pay $3,000 to a fund | ||
for training grants administered under Section 605-800 of The | ||
Department of Commerce and Economic Opportunity Law, which | ||
shall not be a recoverable expense. | ||
With respect to the participating utility's investment | ||
amount commitments, if, after considering the utility's | ||
corrective action plan and compliance thereunder, the | ||
Commission enters an order finding, after notice and hearing, | ||
that a participating utility is not satisfying its investment | ||
amount commitments described in this subsection (b), then the | ||
utility shall no longer be eligible to annually update the | ||
performance-based formula rate tariff pursuant to subsection | ||
(d) of this Section. In such event, the then current rates | ||
shall remain in effect until such time as new rates are set | ||
pursuant to Article IX of this Act, subject to retroactive | ||
adjustment, with interest, to reconcile rates charged with | ||
actual costs. | ||
If the Commission finds that a participating utility is no | ||
longer eligible to update the performance-based formula rate | ||
tariff pursuant to subsection (d) of this Section, or the | ||
performance-based formula rate is otherwise terminated, then | ||
the participating utility's voluntary commitments and | ||
obligations under this subsection (b) shall immediately |
terminate, except for the utility's obligation to pay an amount | ||
already owed to the fund for training grants pursuant to a | ||
Commission order. | ||
In meeting the obligations of this subsection (b), to the | ||
extent feasible and consistent with State and federal law, the | ||
investments under the infrastructure investment program should | ||
provide employment opportunities for all segments of the | ||
population and workforce, including minority-owned and | ||
female-owned business enterprises, and shall not, consistent | ||
with State and federal law, discriminate based on race or | ||
socioeconomic status. | ||
(b-5) Nothing in this Section shall prohibit the Commission | ||
from investigating the prudence and reasonableness of the | ||
expenditures made under the infrastructure investment program | ||
during the annual review required by subsection (d) of this | ||
Section and shall, as part of such investigation, determine | ||
whether the utility's actual costs under the program are | ||
prudent and reasonable. The fact that a participating utility | ||
invests more than the minimum amounts specified in subsection | ||
(b) of this Section or its plan shall not imply imprudence or | ||
unreasonableness. | ||
If the participating utility finds that it is implementing | ||
its plan for satisfying the infrastructure investment program | ||
commitments described in subsection (b) of this Section at a | ||
cost below the estimated amounts specified in subsection (b) of | ||
this Section, then the utility may file a petition with the |
Commission requesting that it be permitted to satisfy its | ||
commitments by spending less than the estimated amounts | ||
specified in subsection (b) of this Section. The Commission | ||
shall, after notice and hearing, enter its order approving, or | ||
approving as modified, or denying each such petition within 150 | ||
days after the filing of the petition. | ||
In no event, absent General Assembly approval, shall the | ||
capital investment costs incurred by a participating utility | ||
other than a combination utility in satisfying its | ||
infrastructure investment program commitments described in | ||
subsection (b) of this Section exceed $3,000,000,000 or, for a | ||
participating utility that is a combination utility, | ||
$720,000,000. If the participating utility's updated cost | ||
estimates for satisfying its infrastructure investment program | ||
commitments described in subsection (b) of this Section exceed | ||
the limitation imposed by this subsection (b-5), then it shall | ||
submit a report to the Commission that identifies the increased | ||
costs and explains the reason or reasons for the increased | ||
costs no later than the year in which the utility estimates it | ||
will exceed the limitation. The Commission shall review the | ||
report and shall, within 90 days after the participating | ||
utility files the report, report to the General Assembly its | ||
findings regarding the participating utility's report. If the | ||
General Assembly does not amend the limitation imposed by this | ||
subsection (b-5), then the utility may modify its plan so as | ||
not to exceed the limitation imposed by this subsection (b-5) |
and may propose corresponding changes to the metrics | ||
established pursuant to subparagraphs (5) through (8) of | ||
subsection (f) of this Section, and the Commission may modify | ||
the metrics and incremental savings goals established pursuant | ||
to subsection (f) of this Section accordingly. | ||
(c) A participating utility may elect to recover its | ||
delivery services costs through a performance-based formula | ||
rate approved by the Commission, which shall specify the cost | ||
components that form the basis of the rate charged to customers | ||
with sufficient specificity to operate in a standardized manner | ||
and be updated annually with transparent information that | ||
reflects the utility's actual costs to be recovered during the | ||
applicable rate year, which is the period beginning with the | ||
first billing day of January and extending through the last | ||
billing day of the following December. In the event the utility | ||
recovers a portion of its costs through automatic adjustment | ||
clause tariffs on the effective date of this amendatory Act of | ||
the 97th General Assembly, the utility may elect to continue to | ||
recover these costs through such tariffs, but then these costs | ||
shall not be recovered through the performance-based formula | ||
rate. | ||
The performance-based formula rate shall be implemented | ||
through a tariff filed with the Commission consistent with the | ||
provisions of this subsection (c) that shall be applicable to | ||
all delivery services customers. The Commission shall initiate | ||
and conduct an investigation of the tariff in a manner |
consistent with the provisions of this subsection (c) and the | ||
provisions of Article IX of this Act to the extent they do not | ||
conflict with this subsection (c). Except in the case where the | ||
Commission finds, after notice and hearing, that a | ||
participating utility is not satisfying its investment amount | ||
commitments under subsection (b) of this Section, the | ||
performance-based formula rate shall remain in effect at the | ||
discretion of the utility. The performance-based formula rate | ||
approved by the Commission shall do the following: | ||
(1) Provide for the recovery of the utility's actual | ||
costs of delivery services that are prudently incurred and | ||
reasonable in amount consistent with Commission practice | ||
and law. The sole fact that a cost differs from that | ||
incurred in a prior calendar year or that an investment is | ||
different from that made in a prior calendar year shall not | ||
imply the imprudence or unreasonableness of that cost or | ||
investment. | ||
(2) Reflect the utility's actual capital structure for | ||
the applicable calendar year, excluding goodwill, subject | ||
to a determination of prudence and reasonableness | ||
consistent with Commission practice and law. | ||
(3) Include a cost of equity, which shall be calculated | ||
as the sum of the following: | ||
(A) the average for the applicable calendar year of | ||
the monthly average yields of 30-year U.S. Treasury | ||
bonds published by the Board of Governors of the |
Federal Reserve System in its weekly H.15 Statistical | ||
Release or successor publication; and | ||
(B) 600 basis points. | ||
At such time as the Board of Governors of the Federal | ||
Reserve System ceases to include the monthly average yields | ||
of 30-year U.S. Treasury bonds in its weekly H.15 | ||
Statistical Release or successor publication, the monthly | ||
average yields of the U.S. Treasury bonds then having the | ||
longest duration published by the Board of Governors in its | ||
weekly H.15 Statistical Release or successor publication | ||
shall instead be used for purposes of this paragraph (3). | ||
(4) Permit and set forth protocols, subject to a | ||
determination of prudence and reasonableness consistent | ||
with Commission practice and law, for the following: | ||
(A) recovery of incentive compensation expense | ||
that is based on the achievement of operational | ||
metrics, including metrics related to budget controls, | ||
outage duration and frequency, safety, customer | ||
service, efficiency and productivity, and | ||
environmental compliance. Incentive compensation | ||
expense that is based on net income or an affiliate's | ||
earnings per share shall not be recoverable under the | ||
performance-based formula rate; | ||
(B) recovery of pension and other post-employment | ||
benefits expense, provided that such costs are | ||
supported by an actuarial study; |
(C) recovery of severance costs, provided that if | ||
the amount is over $3,700,000 for a participating | ||
utility that is a combination utility or $10,000,000 | ||
for a participating utility that serves more than 3 | ||
million retail customers, then the full amount shall be | ||
amortized consistent with subparagraph (F) of this | ||
paragraph (4); | ||
(D) investment return on pension assets net of | ||
deferred tax benefits equal to the utility's long-term | ||
debt cost of capital as of the end of the applicable | ||
calendar year; | ||
(E) recovery of the expenses related to the | ||
Commission proceeding under this subsection (c) to | ||
approve this performance-based formula rate and | ||
initial rates or to subsequent proceedings related to | ||
the formula, provided that the recovery shall be | ||
amortized over a 3-year period; recovery of expenses | ||
related to the annual Commission proceedings under | ||
subsection (d) of this Section to review the inputs to | ||
the performance-based formula rate shall be expensed | ||
and recovered through the performance-based formula | ||
rate; | ||
(F) amortization over a 5-year period of the full | ||
amount of each charge or credit that exceeds $3,700,000 | ||
for a participating utility that is a combination | ||
utility or $10,000,000 for a participating utility |
that serves more than 3 million retail customers in the | ||
applicable calendar year and that relates to a | ||
workforce reduction program's severance costs, changes | ||
in accounting rules, changes in law, compliance with | ||
any Commission-initiated audit, or a single storm or | ||
other similar expense, provided that any unamortized | ||
balance shall be reflected in rate base. For purposes | ||
of this subparagraph (F), changes in law includes any | ||
enactment, repeal, or amendment in a law, ordinance, | ||
rule, regulation, interpretation, permit, license, | ||
consent, or order, including those relating to taxes, | ||
accounting, or to environmental matters, or in the | ||
interpretation or application thereof by any | ||
governmental authority occurring after the effective | ||
date of this amendatory Act of the 97th General | ||
Assembly; | ||
(G) recovery of existing regulatory assets over | ||
the periods previously authorized by the Commission; | ||
(H) historical weather normalized billing | ||
determinants; and | ||
(I) allocation methods for common costs. | ||
(5) Provide that if the participating utility's earned | ||
rate of return on common equity related to the provision of | ||
delivery services for the prior rate year (calculated using | ||
costs and capital structure approved by the Commission as | ||
provided in subparagraph (2) of this subsection (c), |
consistent with this Section, in accordance with | ||
Commission rules and orders, including, but not limited to, | ||
adjustments for goodwill, and after any Commission-ordered | ||
disallowances and taxes) is more than 50 basis points | ||
higher than the rate of return on common equity calculated | ||
pursuant to paragraph (3) of this subsection (c) (after | ||
adjusting for any penalties to the rate of return on common | ||
equity applied pursuant to the performance metrics | ||
provision of subsection (f) of this Section), then the | ||
participating utility shall apply a credit through the | ||
performance-based formula rate that reflects an amount | ||
equal to the value of that portion of the earned rate of | ||
return on common equity that is more than 50 basis points | ||
higher than the rate of return on common equity calculated | ||
pursuant to paragraph (3) of this subsection (c) (after | ||
adjusting for any penalties to the rate of return on common | ||
equity applied pursuant to the performance metrics | ||
provision of subsection (f) of this Section) for the prior | ||
rate year, adjusted for taxes. If the participating | ||
utility's earned rate of return on common equity related to | ||
the provision of delivery services for the prior rate year | ||
(calculated using costs and capital structure approved by | ||
the Commission as provided in subparagraph (2) of this | ||
subsection (c), consistent with this Section, in | ||
accordance with Commission rules and orders, including, | ||
but not limited to, adjustments for goodwill, and after any |
Commission-ordered disallowances and taxes) is more than | ||
50 basis points less than the return on common equity | ||
calculated pursuant to paragraph (3) of this subsection (c) | ||
(after adjusting for any penalties to the rate of return on | ||
common equity applied pursuant to the performance metrics | ||
provision of subsection (f) of this Section), then the | ||
participating utility shall apply a charge through the | ||
performance-based formula rate that reflects an amount | ||
equal to the value of that portion of the earned rate of | ||
return on common equity that is more than 50 basis points | ||
less than the rate of return on common equity calculated | ||
pursuant to paragraph (3) of this subsection (c) (after | ||
adjusting for any penalties to the rate of return on common | ||
equity applied pursuant to the performance metrics | ||
provision of subsection (f) of this Section) for the prior | ||
rate year, adjusted for taxes. | ||
(6) Provide for an annual reconciliation, with | ||
interest as described in subsection (d) of this Section, of | ||
the revenue requirement reflected in rates for each | ||
calendar year, beginning with the calendar year in which | ||
the utility files its performance-based formula rate | ||
tariff pursuant to subsection (c) of this Section, with | ||
what the revenue requirement would have been had the actual | ||
cost information for the applicable calendar year been | ||
available at the filing date. | ||
The utility shall file, together with its tariff, final |
data based on its most recently filed FERC Form 1, plus | ||
projected plant additions and correspondingly updated | ||
depreciation reserve and expense for the calendar year in which | ||
the tariff and data are filed, that shall populate the | ||
performance-based formula rate and set the initial delivery | ||
services rates under the formula. For purposes of this Section, | ||
"FERC Form 1" means the Annual Report of Major Electric | ||
Utilities, Licensees and Others that electric utilities are | ||
required to file with the Federal Energy Regulatory Commission | ||
under the Federal Power Act, Sections 3, 4(a), 304 and 209, | ||
modified as necessary to be consistent with 83 Ill. Admin. Code | ||
Part 415 as of May 1, 2011. Nothing in this Section is intended | ||
to allow costs that are not otherwise recoverable to be | ||
recoverable by virtue of inclusion in FERC Form 1. | ||
After the utility files its proposed performance-based | ||
formula rate structure and protocols and initial rates, the | ||
Commission shall initiate a docket to review the filing. The | ||
Commission shall enter an order approving, or approving as | ||
modified, the performance-based formula rate, including the | ||
initial rates, as just and reasonable within 270 days after the | ||
date on which the tariff was filed, or, if the tariff is filed | ||
within 14 days after the effective date of this amendatory Act | ||
of the 97th General Assembly, then by May 31, 2012. Such review | ||
shall be based on the same evidentiary standards, including, | ||
but not limited to, those concerning the prudence and | ||
reasonableness of the costs incurred by the utility, the |
Commission applies in a hearing to review a filing for a | ||
general increase in rates under Article IX of this Act. The | ||
initial rates shall take effect within 30 days after the | ||
Commission's order approving the performance-based formula | ||
rate tariff. | ||
Until such time as the Commission approves a different rate | ||
design and cost allocation pursuant to subsection (e) of this | ||
Section, rate design and cost allocation across customer | ||
classes shall be consistent with the Commission's most recent | ||
order regarding the participating utility's request for a | ||
general increase in its delivery services rates. | ||
Subsequent changes to the performance-based formula rate | ||
structure or protocols shall be made as set forth in Section | ||
9-201 of this Act, but nothing in this subsection (c) is | ||
intended to limit the Commission's authority under Article IX | ||
and other provisions of this Act to initiate an investigation | ||
of a participating utility's performance-based formula rate | ||
tariff, provided that any such changes shall be consistent with | ||
paragraphs (1) through (6) of this subsection (c). Any change | ||
ordered by the Commission shall be made at the same time new | ||
rates take effect following the Commission's next order | ||
pursuant to subsection (d) of this Section, provided that the | ||
new rates take effect no less than 30 days after the date on | ||
which the Commission issues an order adopting the change. | ||
A participating utility that files a tariff pursuant to | ||
this subsection (c) must submit a one-time $200,000 filing fee |
at the time the Chief Clerk of the Commission accepts the | ||
filing, which shall be a recoverable expense. | ||
In the event the performance-based formula rate is | ||
terminated, the then current rates shall remain in effect until | ||
such time as new rates are set pursuant to Article IX of this | ||
Act, subject to retroactive rate adjustment, with interest, to | ||
reconcile rates charged with actual costs. At such time that | ||
the performance-based formula rate is terminated, the | ||
participating utility's voluntary commitments and obligations | ||
under subsection (b) of this Section shall immediately | ||
terminate, except for the utility's obligation to pay an amount | ||
already owed to the fund for training grants pursuant to a | ||
Commission order issued under subsection (b) of this Section. | ||
(d) Subsequent to the Commission's issuance of an order | ||
approving the utility's performance-based formula rate | ||
structure and protocols, and initial rates under subsection (c) | ||
of this Section, the utility shall file, on or before May 1 of | ||
each year, with the Chief Clerk of the Commission its updated | ||
cost inputs to the performance-based formula rate for the | ||
applicable rate year and the corresponding new charges. Each | ||
such filing shall conform to the following requirements and | ||
include the following information: | ||
(1) The inputs to the performance-based formula rate | ||
for the applicable rate year shall be based on final | ||
historical data reflected in the utility's most recently | ||
filed annual FERC Form 1 plus projected plant additions and |
correspondingly updated depreciation reserve and expense | ||
for the calendar year in which the inputs are filed. The | ||
filing shall also include a reconciliation of the revenue | ||
requirement that was in effect for the prior rate year (as | ||
set by the cost inputs for the prior rate year) with the | ||
actual revenue requirement for the prior rate year (as | ||
reflected in the applicable FERC Form 1 that reports the | ||
actual costs for the prior rate year). Any over-collection | ||
or under-collection indicated by such reconciliation shall | ||
be reflected as a credit against, or recovered as an | ||
additional charge to, respectively, with interest, the | ||
charges for the applicable rate year. Provided, however, | ||
that the first such reconciliation shall be for the | ||
calendar year in which the utility files its | ||
performance-based formula rate tariff pursuant to | ||
subsection (c) of this Section and shall reconcile (i) the | ||
revenue requirement or requirements established by the | ||
rate order or orders in effect from time to time during | ||
such calendar year (weighted, as applicable) with (ii) the | ||
revenue requirement for that calendar year calculated | ||
pursuant to the performance-based formula rate using (A) | ||
actual costs for that year as reflected in the applicable | ||
FERC Form 1, and (B) for the first such reconciliation | ||
only, the cost of equity approved by the Commission in such | ||
order or orders in effect during that year (weighted, as | ||
applicable). The first such reconciliation is not intended |
to provide for the recovery of costs previously excluded | ||
from rates based on a prior Commission order finding of | ||
imprudence or unreasonableness. Each reconciliation shall | ||
be certified by the participating utility in the same | ||
manner that FERC Form 1 is certified. The filing shall also | ||
include the charge or credit, if any, resulting from the | ||
calculation required by paragraph (6) of subsection (c) of | ||
this Section. | ||
Notwithstanding anything that may be to the contrary, | ||
the intent of the reconciliation is to ultimately reconcile | ||
the revenue requirement reflected in rates for each | ||
calendar year, beginning with the calendar year in which | ||
the utility files its performance-based formula rate | ||
tariff pursuant to subsection (c) of this Section, with | ||
what the revenue requirement would have been had the actual | ||
cost information for the applicable calendar year been | ||
available at the filing date. | ||
(2) The new charges shall take effect beginning on the | ||
first billing day of the following January billing period | ||
and remain in effect through the last billing day of the | ||
next December billing period regardless of whether the | ||
Commission enters upon a hearing pursuant to this | ||
subsection (d). | ||
(3) The filing shall include relevant and necessary | ||
data and documentation for the applicable rate year that is | ||
consistent with the Commission's rules applicable to a |
filing for a general increase in rates or any rules adopted | ||
by the Commission to implement this Section. Normalization | ||
adjustments shall not be required. Notwithstanding any | ||
other provision of this Section or Act or any rule or other | ||
requirement adopted by the Commission, a participating | ||
utility that is a combination utility with more than one | ||
rate zone shall not be required to file a separate set of | ||
such data and documentation for each rate zone and may | ||
combine such data and documentation into a single set of | ||
schedules. | ||
Within 45 days after the utility files its annual update of | ||
cost inputs to the performance-based formula rate, the | ||
Commission shall have the authority, either upon complaint or | ||
its own initiative, but with reasonable notice, to enter upon a | ||
hearing concerning the prudence and reasonableness of the costs | ||
incurred by the utility to be recovered during the applicable | ||
rate year that are reflected in the inputs to the | ||
performance-based formula rate derived from the utility's FERC | ||
Form 1. During the course of the hearing, each objection shall | ||
be stated with particularity and evidence provided in support | ||
thereof, after which the utility shall have the opportunity to | ||
rebut the evidence. Discovery shall be allowed consistent with | ||
the Commission's Rules of Practice, which Rules shall be | ||
enforced by the Commission or the assigned hearing examiner. | ||
The Commission shall apply the same evidentiary standards, | ||
including, but not limited to, those concerning the prudence |
and reasonableness of the costs incurred by the utility, in the | ||
hearing as it would apply in a hearing to review a filing for a | ||
general increase in rates under Article IX of this Act. The | ||
Commission shall not, however, have the authority in a | ||
proceeding under this subsection (d) to consider or order any | ||
changes to the structure or protocols of the performance-based | ||
formula rate approved pursuant to subsection (c) of this | ||
Section. In a proceeding under this subsection (d), the | ||
Commission shall enter its order no later than the earlier of | ||
240 days after the utility's filing of its annual update of | ||
cost inputs to the performance-based formula rate or December | ||
31. The Commission's determinations of the prudence and | ||
reasonableness of the costs incurred for the applicable | ||
calendar year shall be final upon entry of the Commission's | ||
order and shall not be subject to reopening, reexamination, or | ||
collateral attack in any other Commission proceeding, case, | ||
docket, order, rule or regulation, provided, however, that | ||
nothing in this subsection (d) shall prohibit a party from | ||
petitioning the Commission to rehear or appeal to the courts | ||
the order pursuant to the provisions of this Act. | ||
In the event the Commission does not, either upon complaint | ||
or its own initiative, enter upon a hearing within 45 days | ||
after the utility files the annual update of cost inputs to its | ||
performance-based formula rate, then the costs incurred for the | ||
applicable calendar year shall be deemed prudent and | ||
reasonable, and the filed charges shall not be subject to |
reopening, reexamination, or collateral attack in any other | ||
proceeding, case, docket, order, rule, or regulation. | ||
A participating utility's first filing of the updated cost | ||
inputs, and any Commission investigation of such inputs | ||
pursuant to this subsection (d) shall proceed notwithstanding | ||
the fact that the Commission's investigation under subsection | ||
(c) of this Section is still pending and notwithstanding any | ||
other law, order, rule, or Commission practice to the contrary. | ||
(e) Nothing in subsections (c) or (d) of this Section shall | ||
prohibit the Commission from investigating, or a participating | ||
utility from filing, revenue-neutral tariff changes related to | ||
rate design of a performance-based formula rate that has been | ||
placed into effect for the utility. Following approval of a | ||
participating utility's performance-based formula rate tariff | ||
pursuant to subsection (c) of this Section, the utility shall | ||
make a filing with the Commission within one year after the | ||
effective date of the performance-based formula rate tariff | ||
that proposes changes to the tariff to incorporate the findings | ||
of any final rate design orders of the Commission applicable to | ||
the participating utility and entered subsequent to the | ||
Commission's approval of the tariff. The Commission shall, | ||
after notice and hearing, enter its order approving, or | ||
approving with modification, the proposed changes to the | ||
performance-based formula rate tariff within 240 days after the | ||
utility's filing. Following such approval, the utility shall | ||
make a filing with the Commission during each subsequent 3-year |
period that either proposes revenue-neutral tariff changes or | ||
re-files the existing tariffs without change, which shall | ||
present the Commission with an opportunity to suspend the | ||
tariffs and consider revenue-neutral tariff changes related to | ||
rate design. | ||
(f) Within 30 days after the filing of a tariff pursuant to | ||
subsection (c) of this Section, each participating utility | ||
shall develop and file with the Commission multi-year metrics | ||
designed to achieve, ratably over a 10-year period, improvement | ||
over baseline performance values as follows: | ||
(1) Twenty percent improvement in the System Average | ||
Interruption Frequency Index, using a baseline of the | ||
average of the data from 2001 through 2010. | ||
(2) Fifteen percent improvement in the system Customer | ||
Average Interruption Duration Index, using a baseline of | ||
the average of the data from 2001 through 2010. | ||
(3) For a participating utility other than a | ||
combination utility, 20% improvement in the System Average | ||
Interruption Frequency Index for its Southern Region, | ||
using a baseline of the average of the data from 2001 | ||
through 2010. For purposes of this paragraph (C), Southern | ||
Region shall have the meaning set forth in the | ||
participating utility's most recent report filed pursuant | ||
to Section 16-125 of this Act. | ||
(4) Seventy-five percent improvement in the total | ||
number of customers who exceed the service reliability |
targets as set forth in subparagraphs (A) through (C) of | ||
paragraph (4) of subsection (b) of 83 Ill. Admin. Code Part | ||
411.140 as of May 1, 2011, using 2010 as the baseline year. | ||
(5) Reduction in issuance of estimated electric bills: | ||
90% improvement for a participating utility other than a | ||
combination utility, and 56% improvement for a | ||
participating utility that is a combination utility, using | ||
a baseline of the average number of estimated bills for the | ||
years 2008 through 2010. | ||
(6) Consumption on inactive meters: 90% improvement | ||
for a participating utility other than a combination | ||
utility, and 56% improvement for a participating utility | ||
that is a combination utility, using a baseline of the | ||
average unbilled kilowatthours for the years 2009 and 2010. | ||
(7) Unaccounted for energy: 50% improvement for a | ||
participating utility other than a combination utility | ||
using a baseline of the non-technical line loss unaccounted | ||
for energy kilowatthours for the year 2009. | ||
(8) Uncollectible expense: reduce uncollectible | ||
expense by at least $30,000,000 for a participating utility | ||
other than a combination utility and by at least $3,500,000 | ||
for a participating utility that is a combination utility, | ||
using a baseline of the average uncollectible expense for | ||
the years 2008 through 2010. | ||
(9) Opportunities for minority-owned and female-owned | ||
business enterprises: design a performance metric |
regarding the creation of opportunities for minority-owned | ||
and female-owned business enterprises consistent with | ||
State and federal law using a base performance value of the | ||
percentage of the participating utility's capital | ||
expenditures that were paid to minority-owned and | ||
female-owned business enterprises in 2010. | ||
The definitions set forth in 83 Ill. Admin. Code Part | ||
411.20 as of May 1, 2011 shall be used for purposes of | ||
calculating performance under paragraphs (1) through (3) of | ||
this subsection (f), provided, however, that the participating | ||
utility may exclude up to 9 extreme weather event days from | ||
such calculation for each year. For purposes of this Section, | ||
an extreme weather event day is a 24-hour calendar day | ||
(beginning at 12:00 a.m. and ending at 11:59 p.m.) during which | ||
any weather event (e.g., storm, tornado) caused interruptions | ||
for 10,000 or more of the participating utility's customers for | ||
3 hours or more. If there are more than 9 extreme weather event | ||
days in a year, then the utility may choose no more than 9 | ||
extreme weather event days to exclude, provided that the same | ||
extreme weather event days are excluded from each of the | ||
calculations performed under paragraphs (1) through (3) of this | ||
subsection (f). | ||
The metrics shall include incremental performance goals | ||
for each year of the 10-year period, which shall be designed to | ||
demonstrate that the utility is on track to achieve the | ||
performance goal in each category at the end of the 10-year |
period. The utility shall elect when the 10-year period shall | ||
commence, provided that it begins no later than 14 months | ||
following the date on which the utility begins investing | ||
pursuant to subsection (b) of this Section. | ||
The metrics and performance goals set forth in | ||
subparagraphs (5) through (8) of this subsection (f) are based | ||
on the assumptions that the participating utility may fully | ||
implement the technology described in subsection (b) of this | ||
Section, including utilizing the full functionality of such | ||
technology and that there is no requirement for personal | ||
on-site notification. If the utility is unable to meet the | ||
metrics and performance goals set forth in subparagraphs (5) | ||
through (8) of this subsection (f) for such reasons, and the | ||
Commission so finds after notice and hearing, then the utility | ||
shall be excused from compliance, but only to the limited | ||
extent achievement of the affected metrics and performance | ||
goals was hindered by the less than full implementation. | ||
(f-5) The financial penalties applicable to the metrics | ||
described in subparagraphs (1) through (8) of subsection (f) of | ||
this Section, as applicable, shall be applied through an | ||
adjustment to the participating utility's return on equity as | ||
follows: | ||
(1) With respect to each of the incremental annual | ||
performance goals established pursuant to paragraph (1) of | ||
subsection (f) of this Section, for each year that a | ||
participating utility other than a combination utility |
does not achieve the annual goal, the participating | ||
utility's return on equity shall be reduced by 5 basis | ||
points for such unachieved goal for the following 12-month | ||
period, and for each year that a participating utility that | ||
is a combination utility does not achieve the annual goal, | ||
the participating utility's return on equity shall be | ||
reduced by 10 basis points for each such unachieved goal | ||
for the following 12-month period. | ||
(2) With respect to each of the incremental annual | ||
performance goals established pursuant to subparagraphs | ||
(2), (3), and (4) of subsection (f) of this Section, as | ||
applicable, for each year that the participating utility | ||
does not achieve each such goal, the participating | ||
utility's return on equity shall be reduced by 5 basis | ||
points for each such unachieved goal for the following | ||
12-month period. With respect to each of the incremental | ||
annual performance goals established pursuant to | ||
subparagraph (5) of subsection (f) of this Section, for | ||
each year that the participating utility does not achieve | ||
at least 95% of each such goal, the participating utility's | ||
return on equity shall be reduced by 5 basis points for | ||
each such unachieved goal for the following 12-month | ||
period. | ||
(3) With respect to each of the incremental annual | ||
performance goals established pursuant to paragraphs (6), | ||
(7), and (8) of subsection (f) of this Section, as |
applicable, the performance under each such goal shall be | ||
calculated in terms of the percentage of the goal achieved. | ||
The percentage of goal achieved for each of the goals shall | ||
be aggregated, and an average percentage value calculated, | ||
for each year of the 10-year period. If the utility does | ||
not achieve an average percentage value in a given year of | ||
at least 95%, the participating utility's return on equity | ||
shall be reduced by 5 basis points for the following | ||
12-month period. | ||
The financial penalties shall be applied as described in | ||
this subsection (f-5) through a separate tariff mechanism, | ||
which shall be filed by the utility together with its metrics. | ||
In the event the formula rate tariff established pursuant to | ||
subsection (c) of this Section terminates, the utility's | ||
obligations under subsection (f) of this Section and this | ||
subsection (f-5) shall also terminate, provided, however, that | ||
the tariff mechanism established pursuant to subsection (f) of | ||
this Section and this subsection (f-5) shall remain in effect | ||
until any penalties due and owing at the time of such | ||
termination are applied. | ||
The Commission shall, after notice and hearing, enter an | ||
order within 120 days after the metrics are filed approving, or | ||
approving with modification, a participating utility's tariff | ||
or mechanism to satisfy the metrics set forth in subsection (f) | ||
of this Section. On June 1 of each subsequent year, each | ||
participating utility shall file a report with the Commission |
that includes, among other things, a description of how the | ||
participating utility performed under each metric and an | ||
identification of any extraordinary events that adversely | ||
impacted the utility's performance. Whenever a participating | ||
utility does not satisfy the metrics required pursuant to | ||
subsection (f) of this Section, the Commission shall, after | ||
notice and hearing, enter an order approving financial | ||
penalties in accordance with this subsection (f-5). The | ||
Commission-approved financial penalties shall be applied | ||
beginning with the next rate year. Nothing in this Section | ||
shall authorize the Commission to reduce or otherwise obviate | ||
the imposition of financial penalties for failing to achieve | ||
one or more of the metrics established pursuant to subparagraph | ||
(1) through (4) of subsection (f) of this Section. | ||
(g) On or before July 31, 2014, each participating utility | ||
shall file a report with the Commission that sets forth the | ||
average annual increase in the average amount paid per | ||
kilowatthour for residential eligible retail customers, | ||
exclusive of the effects of energy efficiency programs, | ||
comparing the 12-month period ending May 31, 2012; the 12-month | ||
period ending May 31, 2013; and the 12-month period ending May | ||
31, 2014. For a participating utility that is a combination | ||
utility with more than one rate zone, the weighted average | ||
aggregate increase shall be provided. The report shall be filed | ||
together with a statement from an independent auditor attesting | ||
to the accuracy of the report. The cost of the independent |
auditor shall be borne by the participating utility and shall | ||
not be a recoverable expense. | ||
In the event that the average annual increase exceeds 2.5% | ||
as calculated pursuant to this subsection (g), then Sections | ||
16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other | ||
than this subsection, shall be inoperative as they relate to | ||
the utility and its service area as of the date of the report | ||
due to be submitted pursuant to this subsection and the utility | ||
shall no longer be eligible to annually update the | ||
performance-based formula rate tariff pursuant to subsection | ||
(d) of this Section. In such event, the then current rates | ||
shall remain in effect until such time as new rates are set | ||
pursuant to Article IX of this Act, subject to retroactive | ||
adjustment, with interest, to reconcile rates charged with | ||
actual costs, and the participating utility's voluntary | ||
commitments and obligations under subsection (b) of this | ||
Section shall immediately terminate, except for the utility's | ||
obligation to pay an amount already owed to the fund for | ||
training grants pursuant to a Commission order issued under | ||
subsection (b) of this Section. | ||
In the event that the average annual increase is 2.5% or | ||
less as calculated pursuant to this subsection (g), then the | ||
performance-based formula rate shall remain in effect as set | ||
forth in this Section. | ||
For purposes of this Section, the amount per kilowatthour | ||
means the total amount paid for electric service expressed on a |
per kilowatthour basis, and the total amount paid for electric | ||
service includes without limitation amounts paid for supply, | ||
transmission, distribution, surcharges, and add-on taxes | ||
exclusive of any increases in taxes or new taxes imposed after | ||
the effective date of this amendatory Act of the 97th General | ||
Assembly. For purposes of this Section, "eligible retail | ||
customers" shall have the meaning set forth in Section 16-111.5 | ||
of this Act. | ||
The fact that this Section becomes inoperative as set forth | ||
in this subsection shall not be construed to mean that the | ||
Commission may reexamine or otherwise reopen prudence or | ||
reasonableness determinations already made. | ||
(h) Sections 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of | ||
this Act, other than this subsection, are inoperative after | ||
December 31, 2017 for every participating utility, after which | ||
time a participating utility shall no longer be eligible to | ||
annually update the performance-based formula rate tariff | ||
pursuant to subsection (d) of this Section. At such time, the | ||
then current rates shall remain in effect until such time as | ||
new rates are set pursuant to Article IX of this Act, subject | ||
to retroactive adjustment, with interest, to reconcile rates | ||
charged with actual costs. | ||
By December 31, 2017, the Commission shall prepare and file | ||
with the General Assembly a report on the infrastructure | ||
program and the performance-based formula rate. The report | ||
shall include the change in the average amount per kilowatthour |
paid by residential customers between June 1, 2011 and May 31, | ||
2017. If the change in the total average rate paid exceeds 2.5% | ||
compounded annually, the Commission shall include in the report | ||
an analysis that shows the portion of the change due to the | ||
delivery services component and the portion of the change due | ||
to the supply component of the rate. The report shall include | ||
separate sections for each participating utility. | ||
In the event Sections 16-108.5, 16-108.6, 16-108.7, and | ||
16-108.8 of this Act do not become inoperative after December | ||
31, 2017, then these Sections are inoperative after December | ||
31, 2022 for every participating utility, after which time a | ||
participating utility shall no longer be eligible to annually | ||
update the performance-based formula rate tariff pursuant to | ||
subsection (d) of this Section. At such time, the then current | ||
rates shall remain in effect until such time as new rates are | ||
set pursuant to Article IX of this Act, subject to retroactive | ||
adjustment, with interest, to reconcile rates charged with | ||
actual costs. | ||
The fact that this Section becomes inoperative as set forth | ||
in this subsection shall not be construed to mean that the | ||
Commission may reexamine or otherwise reopen prudence or | ||
reasonableness determinations already made. | ||
(i) While a participating utility may use, develop, and | ||
maintain broadband systems and the delivery of broadband | ||
services, voice-over-internet-protocol services, | ||
telecommunications services, and cable and video programming |
services for use in providing delivery services and Smart Grid | ||
functionality or application to its retail customers, | ||
including, but not limited to, the installation, | ||
implementation and maintenance of Smart Grid electric system | ||
upgrades as defined in Section 16-108.6 of this Act, a | ||
participating utility is prohibited from offering to its retail | ||
customers broadband services or the delivery of broadband | ||
services, voice-over-internet-protocol services, | ||
telecommunications services, or cable or video programming | ||
services, unless they are part of a service directly related to | ||
delivery services or Smart Grid functionality or applications | ||
as defined in Section 16-108.6 of this Act, and from recovering | ||
the costs of such offerings from retail customers. | ||
(j) Nothing in this Section is intended to legislatively | ||
overturn the opinion issued in Commonwealth Edison Co. v. Ill. | ||
Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137, | ||
1-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App. | ||
Ct. 2d Dist. Sept. 30, 2010). This amendatory Act of the 97th | ||
General Assembly shall not be construed as creating a contract | ||
between the General Assembly and the participating utility, and | ||
shall not establish a property right in the participating | ||
utility. | ||
(220 ILCS 5/16-108.6 new) | ||
Sec. 16-108.6. Provisions relating to Smart Grid Advanced | ||
Metering Infrastructure Deployment Plan. |
(a) For purposes of this Section and Sections 16-108.7 and | ||
16-108.8 of this Act: | ||
"Advanced Metering Infrastructure" or "AMI" means the | ||
communications hardware and software and associated system | ||
software that enables Smart Grid functions by creating a | ||
network between advanced meters and utility business systems | ||
and allowing collection and distribution of information to | ||
customers and other parties in addition to providing | ||
information to the utility itself. | ||
"Cost-beneficial" means a determination that the benefits | ||
of a participating utility's Smart Grid AMI Deployment Plan | ||
exceed the costs of the Smart Grid AMI Deployment Plan as | ||
initially filed with the Commission or as subsequently modified | ||
by the Commission. This standard is met if the present value of | ||
the total benefits of the Smart Grid AMI Deployment Plan | ||
exceeds the present value of the total costs of the Smart Grid | ||
AMI Deployment Plan. The total cost shall include all utility | ||
costs reasonably associated with the Smart Grid AMI Deployment | ||
Plan. The total benefits shall include the sum of avoided | ||
electricity costs, including avoided utility operational | ||
costs, avoided consumer power, capacity, and energy costs, and | ||
avoided societal costs associated with the production and | ||
consumption of electricity, as well as other societal benefits, | ||
including the greater integration of renewable and distributed | ||
power resources, reductions in the emissions of harmful | ||
pollutants and associated avoided health-related costs, other |
benefits associated with energy efficiency measures, | ||
demand-response activities, and the enabling of greater | ||
penetration of alternative fuel vehicles. | ||
"Participating utility" has the meaning set forth in | ||
Section 16-108.5 of this Act. | ||
"Smart Grid" means investments and policies that together | ||
promote one or more of the following goals: | ||
(1) Increased use of digital information and controls | ||
technology to improve reliability, security, and | ||
efficiency of the electric grid. | ||
(2) Dynamic optimization of grid operations and | ||
resources, with full cyber security. | ||
(3) Deployment and integration of distributed | ||
resources and generation, including renewable resources. | ||
(4) Development and incorporation of demand-response, | ||
demand-side resources, and energy efficiency resources. | ||
(5) Deployment of "smart" technologies (real-time, | ||
automated, interactive technologies that optimize the | ||
physical operation of appliances and consumer devices) for | ||
metering, communications concerning grid operations and | ||
status, and distribution automation. | ||
(6) Integration of "smart" appliances and consumer | ||
devices. | ||
(7) Deployment and integration of advanced electricity | ||
storage and peak-shaving technologies, including plug-in | ||
electric and hybrid electric vehicles, thermal-storage air |
conditioning and renewable energy generation. | ||
(8) Provision to consumers of timely information and | ||
control options. | ||
(9) Development of open access standards for | ||
communication and interoperability of appliances and | ||
equipment connected to the electric grid, including the | ||
infrastructure serving the grid. | ||
(10) Identification and lowering of unreasonable or | ||
unnecessary barriers to adoption of Smart Grid | ||
technologies, practices, services, and business models | ||
that support energy efficiency, demand-response, and | ||
distributed generation. | ||
"Smart Grid Advisory Council" means the group of | ||
stakeholders formed pursuant to subsection (b) of this Section | ||
for the purposes of advising and working with participating | ||
utilities on the development and implementation of a Smart Grid | ||
Advanced Metering Infrastructure Deployment Plan. | ||
"Smart Grid electric system upgrades" means any of the | ||
following: | ||
(1) metering devices, sensors, control devices, and | ||
other devices integrated with and attached to an electric | ||
utility system that are capable of engaging in Smart Grid | ||
functions; | ||
(2) other monitoring and communications devices that | ||
enable Smart Grid functions, including, but not limited to, | ||
distribution automation; |
(3) software that enables devices or computers to | ||
engage in Smart Grid functions; | ||
(4) associated cyber secure data communication | ||
network, including enhancements to cyber-security | ||
technologies and measures; | ||
(5) substation micro-processor relay upgrades; | ||
(6) devices that allow electric or hybrid-electric | ||
vehicles to engage in Smart Grid functions; or | ||
(7) devices that enable individual consumers to | ||
incorporate distributed and micro-generation. | ||
"Smart Grid electric system upgrades" does not include | ||
expenditures for: (1) electricity generation, transmission, or | ||
distribution infrastructure or equipment that does not | ||
directly relate to or support installing, implementing or | ||
enabling Smart Grid functions; (2) physical interconnection of | ||
generators or other devices to the grid except those that are | ||
directly related to enabling Smart Grid functions; or (3) | ||
ongoing or routine operation, billing, customer relations, | ||
security, and maintenance. | ||
"Smart Grid functions" means: | ||
(1) the ability to develop, store, send, and receive | ||
digital information concerning or enabling grid | ||
operations, electricity use, costs, prices, time of use, | ||
nature of use, storage, or other information relevant to | ||
device, grid, or utility operations, to or from or by means | ||
of the electric utility system through one or a combination |
of devices and technologies; | ||
(2) the ability to develop, store, send, and receive | ||
digital information concerning electricity use, costs, | ||
prices, time of use, nature of use, storage, or other | ||
information relevant to device, grid, or utility | ||
operations to or from a computer or other control device; | ||
(3) the ability to measure or monitor electricity use | ||
as a function of time of day, power quality characteristics | ||
such as voltage level, current, cycles per second, or | ||
source or type of generation and to store, synthesize, or | ||
report that information by digital means; | ||
(4) the ability to sense and localize disruptions or | ||
changes in power flows on the grid and communicate such | ||
information instantaneously and automatically for purposes | ||
of enabling automatic protective responses to sustain | ||
reliability and security of grid operations; | ||
(5) the ability to detect, prevent, communicate with | ||
regard to, respond to, or recover from system security | ||
threats, including cyber-security threats and terrorism, | ||
using digital information, media, and devices; | ||
(6) the ability of any device or machine to respond to | ||
signals, measurements, or communications automatically or | ||
in a manner programmed by its owner or operator without | ||
independent human intervention; | ||
(7) the ability to use digital information to operate | ||
functionalities on the electric utility grid that were |
previously electro-mechanical or manual; | ||
(8) the ability to use digital controls to manage and | ||
modify electricity demand, enable congestion management, | ||
assist in voltage control, provide operating reserves, and | ||
provide frequency regulation; or | ||
(9) the ability to integrate electric plug-in | ||
vehicles, distributed generation, and storage in a safe and | ||
cost-effective manner on the electric grid. | ||
(b) Within 30 days after the effective date of this | ||
amendatory Act of the 97th General Assembly, the Smart Grid | ||
Advisory Council shall be established, which shall consist of 7 | ||
total voting members with each member possessing either | ||
technical, business or consumer expertise in Smart Grid issues | ||
and each having been the single appointment of one of the | ||
following: the Governor, the Speaker of the House, the Minority | ||
Leader of the House, the President of the Senate, the Minority | ||
Leader of the Senate, the Illinois Science and Technology | ||
Coalition, and the Citizens Utility Board. The Governor shall | ||
designate one of the members of the Council to serve as | ||
chairman, and that person shall serve as the chairman at the | ||
pleasure of the Governor. The members shall not be compensated | ||
for serving on the Smart Grid Advisory Council. The Smart Grid | ||
Advisory Council shall have the following duties: | ||
(1) Serve as an advisor to participating utilities | ||
subject to this Section and in the manner described in this | ||
Section, and the recommendations provided by the Council, |
although non-binding, shall be considered by the | ||
utilities. | ||
(2) Serve as trustees of the trust or foundation | ||
established pursuant to Section 16-108.7 of this Act with | ||
the duties enumerated thereunder. | ||
(c) After consultation with the Smart Grid Advisory | ||
Council, each participating utility shall file a Smart Grid | ||
Advanced Metering Infrastructure Deployment Plan ("AMI Plan") | ||
with the Commission within 180 days after the effective date of | ||
this amendatory Act of the 97th General Assembly or by November | ||
1, 2011, whichever is later, or in the case of a combination | ||
utility as defined in Section 16-108.5, by April 1, 2012, | ||
provided that a participating utility shall not file its plan | ||
until the evaluation report on the Pilot Program described in | ||
this subsection (c) is issued. The AMI Plan shall provide for | ||
investment over a 10-year period that is sufficient to | ||
implement the AMI Plan across its entire service territory in a | ||
manner that is consistent with subsection (b) of Section | ||
16-108.5 of this Act. The AMI Plan shall contain: | ||
(1) the participating utility's Smart Grid AMI vision | ||
statement that is consistent with the goal of developing a | ||
cost-beneficial Smart Grid; | ||
(2) a statement of Smart Grid AMI strategy that | ||
includes a description of how the utility evaluates and | ||
prioritizes technology choices to create customer value, | ||
including a plan to enhance and enable customers' ability |
to take advantage of Smart Grid functions beginning at the | ||
time an account has billed successfully on the AMI network; | ||
(3) a deployment schedule and plan that includes | ||
deployment of AMI to all customers for a participating | ||
utility other than a combination utility, and to 62% of all | ||
customers for a participating utility that is a combination | ||
utility; | ||
(4) annual milestones and metrics for the purposes of | ||
measuring the success of the AMI Plan in enabling Smart | ||
Grid functions; and enhancing consumer benefits from Smart | ||
Grid AMI; and | ||
(5) a plan for the consumer education to be implemented | ||
by the participating utility. | ||
The AMI Plan shall be fully consistent with the standards | ||
of the National Institute of Standard and Technology (NIST) for | ||
Smart Grid interoperability that are in effect at the time the | ||
participating utility files its AMI Plan, shall include open | ||
standards and internet protocol to the maximum extent possible | ||
consistent with cyber security, and shall maximize, to the | ||
extent possible, a flexible smart meter platform that can | ||
accept remote device upgrades and contain sufficient internal | ||
memory capacity for additional storage capabilities, functions | ||
and services without the need for physical access to the meter. | ||
The AMI Plan shall secure the privacy of personal | ||
information and establish the right of consumers to consent to | ||
the disclosure of personal energy information to third parties |
through electronic, web-based, and other means in accordance | ||
with State and federal law and regulations regarding consumer | ||
privacy and protection of consumer data. | ||
After notice and hearing, the Commission shall, within 60 | ||
days of the filing of an AMI Plan, issue its order approving, | ||
or approving with modification, the AMI Plan if the Commission | ||
finds that the AMI Plan contains the information required in | ||
paragraphs (1) through (5) of this subsection (c) and further | ||
finds that the implementation of the AMI Plan will be | ||
cost-beneficial consistent with the principles established | ||
through the Illinois Smart Grid Collaborative, giving weight to | ||
the results of any Commission-approved pilot designed to | ||
examine the benefits and costs of AMI deployment. A | ||
participating utility's decision to invest pursuant to an AMI | ||
Plan approved by the Commission shall not be subject to | ||
prudence reviews in subsequent Commission proceedings. Nothing | ||
in this subsection (c) is intended to limit the Commission's | ||
ability to review the reasonableness of the costs incurred | ||
under the AMI Plan. A participating utility shall be allowed to | ||
recover the reasonable costs it incurs in implementing a | ||
Commission-approved AMI Plan, including the costs of retired | ||
meters, and may recover such costs through its tariffs, | ||
including the performance-based formula rate tariff approved | ||
pursuant to subsection (c) of Section 16-108.5 of this Act. | ||
(d) The AMI Plan shall secure the privacy of the customer's | ||
personal information. "Personal information" for this purpose |
consists of the customer's name, address, telephone number, and | ||
other personally identifying information, as well as | ||
information about the customer's electric usage. Electric | ||
utilities, their contractors or agents, and any third party who | ||
comes into possession of such personal information by virtue of | ||
working on Smart Grid technology shall not disclose such | ||
personal information to be used in mailing lists or to be used | ||
for other commercial purposes not reasonably related to the | ||
conduct of the utility's business. Electric utilities shall | ||
comply with the consumer privacy requirements of the Personal | ||
Information Protection Act. In the event a participating | ||
utility receives revenues from the sale of information obtained | ||
through Smart Grid technology that is not personal information, | ||
the participating utility shall use such revenues to offset the | ||
revenue requirement. | ||
(e) On April 1 of each year beginning in 2013 and after | ||
consultation with the Smart Grid Advisory Council, each | ||
participating utility shall submit a report regarding the | ||
progress it has made toward completing implementation of its | ||
AMI Plan. This report shall: | ||
(1) describe the AMI investments made during the prior | ||
12 months and the AMI investments planned to be made in the | ||
following 12 months; | ||
(2) provide sufficient detail to determine the | ||
utility's progress in meeting the metrics and milestones | ||
identified by the utility in its AMI Plan; and |
(3) identify any updates to the AMI Plan. | ||
Within 21 days after the utility files its annual report, | ||
the Commission shall have authority, either upon complaint or | ||
its own initiative, but with reasonable notice, to enter upon | ||
an investigation regarding the utility's progress in | ||
implementing the AMI Plan as described in paragraph (1) of this | ||
subsection (e). If the Commission finds, after notice and | ||
hearing, that the participating utility's progress in | ||
implementing the AMI Plan is materially deficient for the given | ||
plan year, then the Commission shall issue an order requiring | ||
the participating utility to devise a corrective action plan, | ||
subject to Commission approval and oversight, to bring | ||
implementation back on schedule consistent with the AMI Plan. | ||
The Commission's order must be entered within 90 days after the | ||
utility files its annual report. If the Commission does not | ||
initiate an investigation within 21 days after the utility | ||
files its annual report, then the filing shall be deemed | ||
accepted by the Commission. The utility shall not be required | ||
to suspend implementation of its AMI Plan during any Commission | ||
investigation. | ||
The participating utility's annual report regarding AMI | ||
Plan year 10 shall contain a statement verifying that the | ||
implementation of its AMI Plan is complete, provided, however, | ||
that if the utility is subject to a corrective action plan that | ||
extends the implementation period beyond 10 years, the utility | ||
shall include the verification statement in its final annual |
report. Following the date of a Commission order approving the | ||
final annual report or the date on which the final report is | ||
deemed accepted by the Commission, the utility's annual | ||
reporting obligations under this subsection (d) shall | ||
terminate, provided, however, that the utility shall have a | ||
continuing obligation to provide information, upon request, to | ||
the Commission and Smart Grid Advisory Council regarding the | ||
AMI Plan. | ||
(f) Each participating utility shall pay a pro rata share, | ||
based on number of customers, of $5,000,000 per year to the | ||
trust or foundation established pursuant to Section 16-108.7 of | ||
this Act for each plan year of the AMI Plan, which shall be | ||
used for purposes of providing customer education regarding | ||
smart meters and related consumer-facing technologies and | ||
services and 70% of which shall be a recoverable expense; | ||
provided that other reasonable amounts expended by the utility | ||
for such consumer education shall not be subject to the 70% | ||
limitation of this subsection. | ||
(g) Within 60 days after the Commission approves a | ||
participating utility's AMI Plan pursuant to subsection (c) of | ||
this Section, the participating utility, after consultation | ||
with the Smart Grid Advisory Council, shall file a proposed | ||
tariff with the Commission that offers an opt-in market-based | ||
peak time rebate program to all residential retail customers | ||
with smart meters that is designed to provide, in a | ||
competitively neutral manner, rebates to those residential |
retail customers that curtail their use of electricity during | ||
specific periods that are identified as peak usage periods. The | ||
total amount of rebates shall be the amount of compensation the | ||
utility obtains through markets or programs at the applicable | ||
regional transmission organization. The utility shall make all | ||
reasonable attempts to secure funding for the peak time rebate | ||
program through markets or programs at the applicable regional | ||
transmission organization. The rules and procedures for | ||
consumers to opt-in to the peak time rebate program shall | ||
include electronic sign-up, be designed to maximize | ||
participation, and be included on the utility's website. The | ||
Commission shall monitor the performance of programs | ||
established pursuant to this subsection (g) and shall order the | ||
termination or modification of a program if it determines that | ||
the program is not, after a reasonable period of time for | ||
development of at least 4 years, resulting in net benefits to | ||
the residential customers of the participating utility. | ||
(h) If Section 16-108.5 of this Act becomes inoperative | ||
with respect to one or more participating utilities as set | ||
forth in subsection (g) or (h) of that Section, then Sections | ||
16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act shall | ||
become inoperative as to each affected utility and its service | ||
area on the same date as Section 16-108.5 becomes inoperative. | ||
(220 ILCS 5/16-108.7 new) | ||
Sec. 16-108.7. Illinois Science and Energy Innovation |
Trust. | ||
(a) Within 90 days of the effective date of this amendatory | ||
Act of the 97th General Assembly, the members of the Smart Grid | ||
Advisory Council established pursuant to Section 16-108.6 of | ||
this Act, or a majority of the members thereof, shall cause to | ||
be established an Illinois science and energy innovation trust | ||
or foundation for the purposes of providing financial and | ||
technical support and assistance to entities, public or | ||
private, within the State of Illinois including, but not | ||
limited to, units of State and local government, educational | ||
and research institutions, corporations, and charitable, | ||
educational, environmental and community organizations, for | ||
programs and projects that support, encourage or utilize | ||
innovative technologies or other methods of modernizing the | ||
State's electric grid that will benefit the public by promoting | ||
economic development in Illinois. Such activities shall be | ||
supported through grants, loans, contracts, or other programs | ||
designed to assist and further benefit technological advances | ||
in the area of electric grid modernization and operation. The | ||
trust or foundation shall also be eligible for receipt of other | ||
energy and environmental grant opportunities, from public or | ||
private sources. The trust or foundation shall not be a | ||
governmental entity. | ||
(b) Funds received by the trust or foundation pursuant to | ||
subsection (f) of Section 16-108.6 of this Act shall be used | ||
solely for the purpose of providing consumer education |
regarding smart meters and related consumer-facing | ||
technologies and services and the peak time rebate program | ||
described in subsection (g) of Section 16-108.6 of this Act. | ||
Thirty percent of such funds received from each participating | ||
utility shall be used by the trust or foundation for purposes | ||
of providing such education to each participating utility's | ||
low-income retail customers, including low-income senior | ||
citizens. | ||
The trust or foundation shall use all funds received | ||
pursuant to subsection (f) of Section 16-108.6 of this Act in a | ||
manner that reflects the unique needs and characteristics of | ||
each participating utility's service territory and in | ||
proportion to each participating utility's payment. | ||
(c) Such trust or foundation shall be governed by a | ||
declaration of trust or articles of incorporation and bylaws | ||
which shall, at a minimum, provide the following: | ||
(1) There shall initially be 7 trustees of the trust or | ||
foundation, which shall consist of the members of the Smart | ||
Grid Advisory Council established pursuant to Section | ||
16-108.6 of this Act. Subsequently, the participating | ||
utilities shall appoint one trustee and the Clean Energy | ||
Trust shall appoint one non-voting trustee who shall | ||
provide expertise regarding early stage investment in | ||
Smart Grid projects. | ||
(2) All trustees shall be entitled to reimbursement for | ||
reasonable expenses incurred on behalf of the trust in the |
performance of their duties as trustees. All such | ||
reimbursements shall be paid out of the trust. | ||
(3) Trustees shall be appointed within 60 days after | ||
the creation of the trust or foundation and shall serve for | ||
a term of 5 years commencing upon the date of their | ||
respective appointments, until their respective successors | ||
are appointed and qualified. | ||
(4) A vacancy in the office of trustee shall be filled | ||
by the person holding the office responsible for appointing | ||
the trustee whose death or resignation creates the vacancy, | ||
and a trustee appointed to fill a vacancy shall serve the | ||
remainder of the term of the trustee whose resignation or | ||
death created the vacancy. | ||
(5) The trust or foundation shall have an indefinite | ||
term and shall terminate at such time as no trust assets | ||
remain. | ||
(6) The allocation and disbursement of funds for the | ||
various purposes for which the trust or foundation is | ||
established shall be determined by the trustees in | ||
accordance with the declaration of trust or the articles of | ||
incorporation and bylaws. | ||
(7) The trust or foundation shall be authorized to | ||
employ an executive director and other employees, or | ||
contract management of the trust or foundation in its | ||
entirety to an outside organization found suitable by the | ||
trustees, to enter into leases, contracts and other |
obligations on behalf of the trust or foundation, and to | ||
incur expenses that the trustees deem necessary or | ||
appropriate for the fulfillment of the purposes for which | ||
the trust or foundation is established, provided, however, | ||
that salaries and administrative expenses incurred on | ||
behalf of the trust or foundation shall not exceed 3% of | ||
the trust's principal value, or $750,000, whichever is | ||
greater, in any given year. The trustees shall not be | ||
compensated by the trust or foundation. | ||
(8) The trustees may create and appoint advisory boards | ||
or committees to assist them with the administration of the | ||
trust or foundation, and to advise and make recommendations | ||
to them regarding the contribution and disbursement of the | ||
trust or foundation funds. | ||
(9) All funds dispersed by the trust or foundation for | ||
programs and projects to meet the objectives of the trust | ||
or foundation as enumerated in this Section shall be | ||
subject to a peer-review process as determined by the | ||
trustees. This process shall be designed to determine, in | ||
an objective and unbiased manner, those programs and | ||
projects that best fit the objectives of the trust or | ||
foundation. In each fiscal year the trustees shall | ||
determine, based solely on the information provided | ||
through the peer-review process, a budget for programs and | ||
projects for that fiscal year. | ||
(10) The trustees shall administer a Smart Grid |
education fund from which it shall make grants to qualified | ||
not-for-profit organizations for the purpose of educating | ||
customers with regard to smart meters and related | ||
consumer-facing technologies and services. In making such | ||
grants the trust or foundation shall strongly encourage | ||
grantees to coordinate to the extent practicable and | ||
consider recommendations from the participating utilities | ||
regarding the development and implementation of customer | ||
education plans. | ||
(11) One of the objectives of the trust or foundation | ||
is to remain self-funding. In order to meet this objective, | ||
the trustees may sign agreements with those entities | ||
receiving funding that provide for license fees, | ||
royalties, or other payments to the trust or foundation | ||
from such entities that receive support for their product | ||
development from the trust or foundation. Such payments, | ||
however, shall be contingent on the commercialization of | ||
such products, services, or technologies enabled by the | ||
funding provided by the trust or foundation. | ||
(d) The trustees shall notify each participating utility as | ||
defined in Section 16-108.5 of this Act of the formation of the | ||
trust or foundation. Within 90 days after receipt of the | ||
notification, each participating utility that is not a | ||
combination utility as defined in Section 16-108.5 of this Act | ||
shall contribute $15,000,000 to the trust or foundation, and | ||
each participating utility that is a combination utility, as |
defined in Section 16-108.5 of this Act, shall contribute | ||
$7,500,000 to the trust or foundation established pursuant to | ||
this Section. Such contributions shall not be a recoverable | ||
expense. | ||
(e) If Section 16-108.5 of this Act becomes inoperative | ||
with respect to one or more participating utilities as set | ||
forth in subsection (g) or (h) of that Section, then Sections | ||
16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act shall | ||
become inoperative as to each affected utility and its service | ||
area on the same date as Section 16-108.5 becomes inoperative. | ||
(220 ILCS 5/16-108.8 new) | ||
Sec. 16-108.8. Illinois Smart Grid test bed. | ||
(a) Within 180 days after the effective date of this | ||
amendatory Act of the 97th General Assembly, each participating | ||
utility, as defined by Section 16-108.5 of this Act, shall | ||
create or otherwise designate a Smart Grid test bed, which may | ||
be located at one or more places within the utility's system, | ||
for the purposes of allowing for the testing of Smart Grid | ||
technologies. The objectives of this test bed shall be to: | ||
(1) provide an open, unbiased opportunity for testing | ||
programs, technologies, business models, and other Smart | ||
Grid-related activities; | ||
(2) provide on-grid locations for the testing of | ||
potentially innovative Smart Grid-related technologies and | ||
services, including but not limited to those funded by the |
trust or foundation established pursuant to Section | ||
16-108.7 of this Act; | ||
(3) facilitate testing of business models or services | ||
that help integrate Smart Grid-related technologies into | ||
the electric grid, especially those business models that | ||
may help promote new products and services for retail | ||
customers; | ||
(4) offer opportunities to test and showcase Smart Grid | ||
technologies and services, especially those likely to | ||
support the economic development goals of the State of | ||
Illinois. | ||
(b) The test bed shall reside in one or more locations on | ||
the participating utility's network. Such locations shall be | ||
chosen by the utility to maximize the opportunity for real-time | ||
and real-world testing of Smart Grid technologies and services | ||
taking into account the safety and security of the | ||
participating utility's grid and grid operations. | ||
(c) The participating utility, with input from the Smart | ||
Grid Advisory Council established pursuant to Section 16-108.6 | ||
of this Act, shall, as part of its filing under subsection (b) | ||
of Section 16-108.5, include a plan for the creation, | ||
operation, and administration of the test bed. This plan shall | ||
address the following: | ||
(1) how the utility proposes to comply with each of the | ||
objectives set forth in subsection (a) of this Section; | ||
(2) the proposed location or locations of the test bed; |
(3) the process by which the utility will receive, | ||
review, and qualify proposals to use the test bed; | ||
(4) the criteria by which the utility proposes to | ||
qualify proposals to use the test bed, including, but not | ||
limited to, safety, reliability, security, customer data | ||
security, privacy, and economic development | ||
considerations; | ||
(5) the engineering and operations support that the | ||
utility will provide to test bed users, including provision | ||
of customer data; and | ||
(6) the estimated costs to establish, administer and | ||
promote the availability of the test bed. | ||
(d) The test bed should be open to all qualified entities | ||
wishing to test programs, technologies, business models, and | ||
other Smart Grid-related activities, provided that the utility | ||
retains control of its grid and operations and may reject any | ||
programs, technologies, business models, and other Smart | ||
Grid-related activities that threaten the reliability, safety, | ||
security, or operations of its network, or that would threaten | ||
the security of customer-identifiable data in the judgment of | ||
the utility. The number of technologies and entities | ||
participating in the test bed at any time may be limited by the | ||
utility based on its determination of its ability to maintain a | ||
secure, safe, and reliable grid. | ||
(e) At a minimum, the test bed shall have the ability to | ||
receive live signals from PJM Interconnection LLC or other |
applicable regional transmission organization, the ability to | ||
test new applications in a utility scale environment (to | ||
include ramp rate regulations for distributed wind and solar | ||
resources), critical peak price response, and market-based | ||
power dispatch. | ||
(f) At the end of the fourth year of operation the test bed | ||
shall be subject to an independent evaluation to determine if | ||
the test bed is meeting the objectives of this Section or is | ||
likely to meet the objectives in the future. The evaluation | ||
shall include the performance of the utility as test bed | ||
operator. Subject to the findings, the utility and the trust or | ||
foundation established pursuant to Section 16-108.7 of this Act | ||
may choose to continue operating the test bed. | ||
(g) The utility shall be entitled to recover all prudently | ||
incurred and reasonable costs associated with evaluation of | ||
proposals, engineering, construction, operation, and | ||
administration of the test bed through the performance-based | ||
formula rate tariff established pursuant to Section 16-108.5 of | ||
this Act. | ||
(h) The utility is authorized to charge fees to users of | ||
the test bed that shall recover the costs associated with the | ||
incremental costs to the utility associated with | ||
administration of the test bed, provided, however, that any | ||
such fees collected by the utility shall be used to offset the | ||
costs to be recovered pursuant to subsection (g) of this | ||
Section. |
(i) On a quarterly basis, the utility shall provide the | ||
trust or foundation established pursuant to Section 16-108.7 of | ||
this Act with a report summarizing test bed activities, | ||
customers, discoveries, and other information as shall be | ||
mutually deemed relevant. | ||
(j) To the extent practicable, the utility and trust or | ||
foundation established pursuant to Section 16-108.7 of this Act | ||
shall jointly pursue resources that enhance the capabilities | ||
and capacity of the test bed. | ||
(k) If Section 16-108.5 of this Act becomes inoperative | ||
with respect to one or more participating utilities as set | ||
forth in subsection (g) or (h) of that Section, then Sections | ||
16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act shall | ||
become inoperative as to each affected utility and its service | ||
area on the same date as Section 16-108.5 become inoperative. | ||
(220 ILCS 5/16-111.5) | ||
Sec. 16-111.5. Provisions relating to procurement. | ||
(a) An electric utility that on December 31, 2005 served at | ||
least 100,000 customers in Illinois shall procure power and | ||
energy for its eligible retail customers in accordance with the | ||
applicable provisions set forth in Section 1-75 of the Illinois | ||
Power Agency Act and this Section. "Eligible retail customers" | ||
for the purposes of this Section means those retail customers | ||
that purchase power and energy from the electric utility under | ||
fixed-price bundled service tariffs, other than those retail |
customers whose service is declared or deemed competitive under | ||
Section 16-113 and those other customer groups specified in | ||
this Section, including self-generating customers, customers | ||
electing hourly pricing, or those customers who are otherwise | ||
ineligible for fixed-price bundled tariff service. Those | ||
customers that are excluded from the definition of "eligible | ||
retail customers" shall not be included in the procurement plan | ||
load requirements, and the utility shall procure any supply | ||
requirements, including capacity, ancillary services, and | ||
hourly priced energy, in the applicable markets as needed to | ||
serve those customers, provided that the utility may include in | ||
its procurement plan load requirements for the load that is | ||
associated with those retail customers whose service has been | ||
declared or deemed competitive pursuant to Section 16-113 of | ||
this Act to the extent that those customers are purchasing | ||
power and energy during one of the transition periods | ||
identified in subsection (b) of Section 16-113 of this Act. | ||
(b) A procurement plan shall be prepared for each electric | ||
utility consistent with the applicable requirements of the | ||
Illinois Power Agency Act and this Section. For purposes of | ||
this Section, Illinois electric utilities that are affiliated | ||
by virtue of a common parent company are considered to be a | ||
single electric utility. Each procurement plan shall analyze | ||
the projected balance of supply and demand for eligible retail | ||
customers over a 5-year period with the first planning year | ||
beginning on June 1 of the year following the year in which the |
plan is filed. The plan shall specifically identify the | ||
wholesale products to be procured following plan approval, and | ||
shall follow all the requirements set forth in the Public | ||
Utilities Act and all applicable State and federal laws, | ||
statutes, rules, or regulations, as well as Commission orders. | ||
Nothing in this Section precludes consideration of contracts | ||
longer than 5 years and related forecast data. Unless specified | ||
otherwise in this Section, in the procurement plan or in the | ||
implementing tariff, any procurement occurring in accordance | ||
with this plan shall be competitively bid through a request for | ||
proposals process. Approval and implementation of the | ||
procurement plan shall be subject to review and approval by the | ||
Commission according to the provisions set forth in this | ||
Section. A procurement plan shall include each of the following | ||
components: | ||
(1) Hourly load analysis. This analysis shall include: | ||
(i) multi-year historical analysis of hourly | ||
loads; | ||
(ii) switching trends and competitive retail | ||
market analysis; | ||
(iii) known or projected changes to future loads; | ||
and | ||
(iv) growth forecasts by customer class. | ||
(2) Analysis of the impact of any demand side and | ||
renewable energy initiatives. This analysis shall include: | ||
(i) the impact of demand response programs, both |
current and projected; | ||
(ii) supply side needs that are projected to be | ||
offset by purchases of renewable energy resources, if | ||
any; and | ||
(iii) the impact of energy efficiency programs, | ||
both current and projected. | ||
(3) A plan for meeting the expected load requirements | ||
that will not be met through preexisting contracts. This | ||
plan shall include: | ||
(i) definitions of the different retail customer | ||
classes for which supply is being purchased; | ||
(ii) the proposed mix of demand-response products | ||
for which contracts will be executed during the next | ||
year. The cost-effective demand-response measures | ||
shall be procured whenever the cost is lower than | ||
procuring comparable capacity products, provided that | ||
such products shall: | ||
(A) be procured by a demand-response provider | ||
from eligible retail customers; | ||
(B) at least satisfy the demand-response | ||
requirements of the regional transmission | ||
organization market in which the utility's service | ||
territory is located, including, but not limited | ||
to, any applicable capacity or dispatch | ||
requirements; | ||
(C) provide for customers' participation in |
the stream of benefits produced by the | ||
demand-response products; | ||
(D) provide for reimbursement by the | ||
demand-response provider of the utility for any | ||
costs incurred as a result of the failure of the | ||
supplier of such products to perform its | ||
obligations thereunder; and | ||
(E) meet the same credit requirements as apply | ||
to suppliers of capacity, in the applicable | ||
regional transmission organization market; | ||
(iii) monthly forecasted system supply | ||
requirements, including expected minimum, maximum, and | ||
average values for the planning period; | ||
(iv) the proposed mix and selection of standard | ||
wholesale products for which contracts will be | ||
executed during the next year, separately or in | ||
combination, to meet that portion of its load | ||
requirements not met through pre-existing contracts, | ||
including but not limited to monthly 5 x 16 peak period | ||
block energy, monthly off-peak wrap energy, monthly 7 x | ||
24 energy, annual 5 x 16 energy, annual off-peak wrap | ||
energy, annual 7 x 24 energy, monthly capacity, annual | ||
capacity, peak load capacity obligations, capacity | ||
purchase plan, and ancillary services; | ||
(v) proposed term structures for each wholesale | ||
product type included in the proposed procurement plan |
portfolio of products; and | ||
(vi) an assessment of the price risk, load | ||
uncertainty, and other factors that are associated | ||
with the proposed procurement plan; this assessment, | ||
to the extent possible, shall include an analysis of | ||
the following factors: contract terms, time frames for | ||
securing products or services, fuel costs, weather | ||
patterns, transmission costs, market conditions, and | ||
the governmental regulatory environment; the proposed | ||
procurement plan shall also identify alternatives for | ||
those portfolio measures that are identified as having | ||
significant price risk. | ||
(4) Proposed procedures for balancing loads. The | ||
procurement plan shall include, for load requirements | ||
included in the procurement plan, the process for (i) | ||
hourly balancing of supply and demand and (ii) the criteria | ||
for portfolio re-balancing in the event of significant | ||
shifts in load. | ||
(c) The procurement process set forth in Section 1-75 of | ||
the Illinois Power Agency Act and subsection (e) of this | ||
Section shall be administered by a procurement administrator | ||
and monitored by a procurement monitor. | ||
(1) The procurement administrator shall: | ||
(i) design the final procurement process in | ||
accordance with Section 1-75 of the Illinois Power | ||
Agency Act and subsection (e) of this Section following |
Commission approval of the procurement plan; | ||
(ii) develop benchmarks in accordance with | ||
subsection (e)(3) to be used to evaluate bids; these | ||
benchmarks shall be submitted to the Commission for | ||
review and approval on a confidential basis prior to | ||
the procurement event; | ||
(iii) serve as the interface between the electric | ||
utility and suppliers; | ||
(iv) manage the bidder pre-qualification and | ||
registration process; | ||
(v) obtain the electric utilities' agreement to | ||
the final form of all supply contracts and credit | ||
collateral agreements; | ||
(vi) administer the request for proposals process; | ||
(vii) have the discretion to negotiate to | ||
determine whether bidders are willing to lower the | ||
price of bids that meet the benchmarks approved by the | ||
Commission; any post-bid negotiations with bidders | ||
shall be limited to price only and shall be completed | ||
within 24 hours after opening the sealed bids and shall | ||
be conducted in a fair and unbiased manner; in | ||
conducting the negotiations, there shall be no | ||
disclosure of any information derived from proposals | ||
submitted by competing bidders; if information is | ||
disclosed to any bidder, it shall be provided to all | ||
competing bidders; |
(viii) maintain confidentiality of supplier and | ||
bidding information in a manner consistent with all | ||
applicable laws, rules, regulations, and tariffs; | ||
(ix) submit a confidential report to the | ||
Commission recommending acceptance or rejection of | ||
bids; | ||
(x) notify the utility of contract counterparties | ||
and contract specifics; and | ||
(xi) administer related contingency procurement | ||
events. | ||
(2) The procurement monitor, who shall be retained by | ||
the Commission, shall: | ||
(i) monitor interactions among the procurement | ||
administrator, suppliers, and utility; | ||
(ii) monitor and report to the Commission on the | ||
progress of the procurement process; | ||
(iii) provide an independent confidential report | ||
to the Commission regarding the results of the | ||
procurement event; | ||
(iv) assess compliance with the procurement plans | ||
approved by the Commission for each utility that on | ||
December 31, 2005 provided electric service to a least | ||
100,000 customers in Illinois; | ||
(v) preserve the confidentiality of supplier and | ||
bidding information in a manner consistent with all | ||
applicable laws, rules, regulations, and tariffs; |
(vi) provide expert advice to the Commission and | ||
consult with the procurement administrator regarding | ||
issues related to procurement process design, rules, | ||
protocols, and policy-related matters; and | ||
(vii) consult with the procurement administrator | ||
regarding the development and use of benchmark | ||
criteria, standard form contracts, credit policies, | ||
and bid documents. | ||
(d) Except as provided in subsection (j), the planning | ||
process shall be conducted as follows: | ||
(1) Beginning in 2008, each Illinois utility procuring | ||
power pursuant to this Section shall annually provide a | ||
range of load forecasts to the Illinois Power Agency by | ||
July 15 of each year, or such other date as may be required | ||
by the Commission or Agency. The load forecasts shall cover | ||
the 5-year procurement planning period for the next | ||
procurement plan and shall include hourly data | ||
representing a high-load, low-load and expected-load | ||
scenario for the load of the eligible retail customers. The | ||
utility shall provide supporting data and assumptions for | ||
each of the scenarios.
| ||
(2) Beginning in 2008, the Illinois Power Agency shall | ||
prepare a procurement plan by August 15th of each year, or | ||
such other date as may be required by the Commission. The | ||
procurement plan shall identify the portfolio of | ||
demand-response and power and energy products to be |
procured. Cost-effective demand-response measures shall be | ||
procured as set forth in item (iii) of subsection (b) of | ||
this Section. Copies of the procurement plan shall be | ||
posted and made publicly available on the Agency's and | ||
Commission's websites, and copies shall also be provided to | ||
each affected electric utility. An affected utility shall | ||
have 30 days following the date of posting to provide | ||
comment to the Agency on the procurement plan. Other | ||
interested entities also may comment on the procurement | ||
plan. All comments submitted to the Agency shall be | ||
specific, supported by data or other detailed analyses, | ||
and, if objecting to all or a portion of the procurement | ||
plan, accompanied by specific alternative wording or | ||
proposals. All comments shall be posted on the Agency's and | ||
Commission's websites. During this 30-day comment period, | ||
the Agency shall hold at least one public hearing within | ||
each utility's service area for the purpose of receiving | ||
public comment on the procurement plan. Within 14 days | ||
following the end of the 30-day review period, the Agency | ||
shall revise the procurement plan as necessary based on the | ||
comments received and file the procurement plan with the | ||
Commission and post the procurement plan on the websites. | ||
(3) Within 5 days after the filing of the procurement | ||
plan, any person objecting to the procurement plan shall | ||
file an objection with the Commission. Within 10 days after | ||
the filing, the Commission shall determine whether a |
hearing is necessary. The Commission shall enter its order | ||
confirming or modifying the procurement plan within 90 days | ||
after the filing of the procurement plan by the Illinois | ||
Power Agency. | ||
(4) The Commission shall approve the procurement plan, | ||
including expressly the forecast used in the procurement | ||
plan, if the Commission determines that it will ensure | ||
adequate, reliable, affordable, efficient, and | ||
environmentally sustainable electric service at the lowest | ||
total cost over time, taking into account any benefits of | ||
price stability. | ||
(e) The procurement process shall include each of the | ||
following components: | ||
(1) Solicitation, pre-qualification, and registration | ||
of bidders. The procurement administrator shall | ||
disseminate information to potential bidders to promote a | ||
procurement event, notify potential bidders that the | ||
procurement administrator may enter into a post-bid price | ||
negotiation with bidders that meet the applicable | ||
benchmarks, provide supply requirements, and otherwise | ||
explain the competitive procurement process. In addition | ||
to such other publication as the procurement administrator | ||
determines is appropriate, this information shall be | ||
posted on the Illinois Power Agency's and the Commission's | ||
websites. The procurement administrator shall also | ||
administer the prequalification process, including |
evaluation of credit worthiness, compliance with | ||
procurement rules, and agreement to the standard form | ||
contract developed pursuant to paragraph (2) of this | ||
subsection (e). The procurement administrator shall then | ||
identify and register bidders to participate in the | ||
procurement event. | ||
(2) Standard contract forms and credit terms and | ||
instruments. The procurement administrator, in | ||
consultation with the utilities, the Commission, and other | ||
interested parties and subject to Commission oversight, | ||
shall develop and provide standard contract forms for the | ||
supplier contracts that meet generally accepted industry | ||
practices. Standard credit terms and instruments that meet | ||
generally accepted industry practices shall be similarly | ||
developed. The procurement administrator shall make | ||
available to the Commission all written comments it | ||
receives on the contract forms, credit terms, or | ||
instruments. If the procurement administrator cannot reach | ||
agreement with the applicable electric utility as to the | ||
contract terms and conditions, the procurement | ||
administrator must notify the Commission of any disputed | ||
terms and the Commission shall resolve the dispute. The | ||
terms of the contracts shall not be subject to negotiation | ||
by winning bidders, and the bidders must agree to the terms | ||
of the contract in advance so that winning bids are | ||
selected solely on the basis of price. |
(3) Establishment of a market-based price benchmark. | ||
As part of the development of the procurement process, the | ||
procurement administrator, in consultation with the | ||
Commission staff, Agency staff, and the procurement | ||
monitor, shall establish benchmarks for evaluating the | ||
final prices in the contracts for each of the products that | ||
will be procured through the procurement process. The | ||
benchmarks shall be based on price data for similar | ||
products for the same delivery period and same delivery | ||
hub, or other delivery hubs after adjusting for that | ||
difference. The price benchmarks may also be adjusted to | ||
take into account differences between the information | ||
reflected in the underlying data sources and the specific | ||
products and procurement process being used to procure | ||
power for the Illinois utilities. The benchmarks shall be | ||
confidential but shall be provided to, and will be subject | ||
to Commission review and approval, prior to a procurement | ||
event. | ||
(4) Request for proposals competitive procurement | ||
process. The procurement administrator shall design and | ||
issue a request for proposals to supply electricity in | ||
accordance with each utility's procurement plan, as | ||
approved by the Commission. The request for proposals shall | ||
set forth a procedure for sealed, binding commitment | ||
bidding with pay-as-bid settlement, and provision for | ||
selection of bids on the basis of price. |
(5) A plan for implementing contingencies in the event | ||
of supplier default or failure of the procurement process | ||
to fully meet the expected load requirement due to | ||
insufficient supplier participation, Commission rejection | ||
of results, or any other cause. | ||
(i) Event of supplier default: In the event of | ||
supplier default, the utility shall review the | ||
contract of the defaulting supplier to determine if the | ||
amount of supply is 200 megawatts or greater, and if | ||
there are more than 60 days remaining of the contract | ||
term. If both of these conditions are met, and the | ||
default results in termination of the contract, the | ||
utility shall immediately notify the Illinois Power | ||
Agency that a request for proposals must be issued to | ||
procure replacement power, and the procurement | ||
administrator shall run an additional procurement | ||
event. If the contracted supply of the defaulting | ||
supplier is less than 200 megawatts or there are less | ||
than 60 days remaining of the contract term, the | ||
utility shall procure power and energy from the | ||
applicable regional transmission organization market, | ||
including ancillary services, capacity, and day-ahead | ||
or real time energy, or both, for the duration of the | ||
contract term to replace the contracted supply; | ||
provided, however, that if a needed product is not | ||
available through the regional transmission |
organization market it shall be purchased from the | ||
wholesale market. | ||
(ii) Failure of the procurement process to fully | ||
meet the expected load requirement: If the procurement | ||
process fails to fully meet the expected load | ||
requirement due to insufficient supplier participation | ||
or due to a Commission rejection of the procurement | ||
results, the procurement administrator, the | ||
procurement monitor, and the Commission staff shall | ||
meet within 10 days to analyze potential causes of low | ||
supplier interest or causes for the Commission | ||
decision. If changes are identified that would likely | ||
result in increased supplier participation, or that | ||
would address concerns causing the Commission to | ||
reject the results of the prior procurement event, the | ||
procurement administrator may implement those changes | ||
and rerun the request for proposals process according | ||
to a schedule determined by those parties and | ||
consistent with Section 1-75 of the Illinois Power | ||
Agency Act and this subsection. In any event, a new | ||
request for proposals process shall be implemented by | ||
the procurement administrator within 90 days after the | ||
determination that the procurement process has failed | ||
to fully meet the expected load requirement. | ||
(iii) In all cases where there is insufficient | ||
supply provided under contracts awarded through the |
procurement process to fully meet the electric | ||
utility's load requirement, the utility shall meet the | ||
load requirement by procuring power and energy from the | ||
applicable regional transmission organization market, | ||
including ancillary services, capacity, and day-ahead | ||
or real time energy or both; provided, however, that if | ||
a needed product is not available through the regional | ||
transmission organization market it shall be purchased | ||
from the wholesale market. | ||
(6) The procurement process described in this | ||
subsection is exempt from the requirements of the Illinois | ||
Procurement Code, pursuant to Section 20-10 of that Code. | ||
(f) Within 2 business days after opening the sealed bids, | ||
the procurement administrator shall submit a confidential | ||
report to the Commission. The report shall contain the results | ||
of the bidding for each of the products along with the | ||
procurement administrator's recommendation for the acceptance | ||
and rejection of bids based on the price benchmark criteria and | ||
other factors observed in the process. The procurement monitor | ||
also shall submit a confidential report to the Commission | ||
within 2 business days after opening the sealed bids. The | ||
report shall contain the procurement monitor's assessment of | ||
bidder behavior in the process as well as an assessment of the | ||
procurement administrator's compliance with the procurement | ||
process and rules. The Commission shall review the confidential | ||
reports submitted by the procurement administrator and |
procurement monitor, and shall accept or reject the | ||
recommendations of the procurement administrator within 2 | ||
business days after receipt of the reports. | ||
(g) Within 3 business days after the Commission decision | ||
approving the results of a procurement event, the utility shall | ||
enter into binding contractual arrangements with the winning | ||
suppliers using the standard form contracts; except that the | ||
utility shall not be required either directly or indirectly to | ||
execute the contracts if a tariff that is consistent with | ||
subsection (l) of this Section has not been approved and placed | ||
into effect for that utility. | ||
(h) The names of the successful bidders and the load | ||
weighted average of the winning bid prices for each contract | ||
type and for each contract term shall be made available to the | ||
public at the time of Commission approval of a procurement | ||
event. The Commission, the procurement monitor, the | ||
procurement administrator, the Illinois Power Agency, and all | ||
participants in the procurement process shall maintain the | ||
confidentiality of all other supplier and bidding information | ||
in a manner consistent with all applicable laws, rules, | ||
regulations, and tariffs. Confidential information, including | ||
the confidential reports submitted by the procurement | ||
administrator and procurement monitor pursuant to subsection | ||
(f) of this Section, shall not be made publicly available and | ||
shall not be discoverable by any party in any proceeding, | ||
absent a compelling demonstration of need, nor shall those |
reports be admissible in any proceeding other than one for law | ||
enforcement purposes. | ||
(i) Within 2 business days after a Commission decision | ||
approving the results of a procurement event or such other date | ||
as may be required by the Commission from time to time, the | ||
utility shall file for informational purposes with the | ||
Commission its actual or estimated retail supply charges, as | ||
applicable, by customer supply group reflecting the costs | ||
associated with the procurement and computed in accordance with | ||
the tariffs filed pursuant to subsection (l) of this Section | ||
and approved by the Commission. | ||
(j) Within 60 days following the effective date of this | ||
amendatory Act, each electric utility that on December 31, 2005 | ||
provided electric service to at least 100,000 customers in | ||
Illinois shall prepare and file with the Commission an initial | ||
procurement plan, which shall conform in all material respects | ||
to the requirements of the procurement plan set forth in | ||
subsection (b); provided, however, that the Illinois Power | ||
Agency Act shall not apply to the initial procurement plan | ||
prepared pursuant to this subsection. The initial procurement | ||
plan shall identify the portfolio of power and energy products | ||
to be procured and delivered for the period June 2008 through | ||
May 2009, and shall identify the proposed procurement | ||
administrator, who shall have the same experience and expertise | ||
as is required of a procurement administrator hired pursuant to | ||
Section 1-75 of the Illinois Power Agency Act. Copies of the |
procurement plan shall be posted and made publicly available on | ||
the Commission's website. The initial procurement plan may | ||
include contracts for renewable resources that extend beyond | ||
May 2009. | ||
(i) Within 14 days following filing of the initial | ||
procurement plan, any person may file a detailed objection | ||
with the Commission contesting the procurement plan | ||
submitted by the electric utility. All objections to the | ||
electric utility's plan shall be specific, supported by | ||
data or other detailed analyses. The electric utility may | ||
file a response to any objections to its procurement plan | ||
within 7 days after the date objections are due to be | ||
filed. Within 7 days after the date the utility's response | ||
is due, the Commission shall determine whether a hearing is | ||
necessary. If it determines that a hearing is necessary, it | ||
shall require the hearing to be completed and issue an | ||
order on the procurement plan within 60 days after the | ||
filing of the procurement plan by the electric utility. | ||
(ii) The order shall approve or modify the procurement | ||
plan, approve an independent procurement administrator, | ||
and approve or modify the electric utility's tariffs that | ||
are proposed with the initial procurement plan. The | ||
Commission shall approve the procurement plan if the | ||
Commission determines that it will ensure adequate, | ||
reliable, affordable, efficient, and environmentally | ||
sustainable electric service at the lowest total cost over |
time, taking into account any benefits of price stability. | ||
(k) In order to promote price stability for residential and | ||
small commercial customers during the transition to | ||
competition in Illinois, and notwithstanding any other | ||
provision of this Act, each electric utility subject to this | ||
Section shall enter into one or more multi-year financial swap | ||
contracts that become effective on the effective date of this | ||
amendatory Act. These contracts may be executed with generators | ||
and power marketers, including affiliated interests of the | ||
electric utility. These contracts shall be for a term of no | ||
more than 5 years and shall, for each respective utility or for | ||
any Illinois electric utilities that are affiliated by virtue | ||
of a common parent company and that are thereby considered a | ||
single electric utility for purposes of this subsection (k), | ||
not exceed in the aggregate 3,000 megawatts for any hour of the | ||
year. The contracts shall be financial contracts and not energy | ||
sales contracts. The contracts shall be executed as | ||
transactions under a negotiated master agreement based on the | ||
form of master agreement for financial swap contracts sponsored | ||
by the International Swaps and Derivatives Association, Inc. | ||
and shall be considered pre-existing contracts in the | ||
utilities' procurement plans for residential and small | ||
commercial customers. Costs incurred pursuant to a contract | ||
authorized by this subsection (k) shall be deemed prudently | ||
incurred and reasonable in amount and the electric utility | ||
shall be entitled to full cost recovery pursuant to the tariffs |
filed with the Commission. | ||
(k-5) In order to promote price stability for residential | ||
and small commercial customers during the infrastructure | ||
investment program described in subsection (b) of Section | ||
16-108.5 of this Act, and notwithstanding any other provision | ||
of this Act or the Illinois Power Agency Act, for each electric | ||
utility that serves more than one million retail customers in | ||
Illinois, the Illinois Power Agency shall conduct a procurement | ||
event within 120 days after the effective date of this | ||
amendatory Act of the 97th General Assembly and may procure | ||
contracts for energy and renewable energy credits for the | ||
period June 1, 2013 through December 31, 2017 that satisfy the | ||
requirements of this subsection (k-5), including the | ||
benchmarks described in this subsection. These contracts shall | ||
be entered into as the result of a competitive procurement | ||
event, and, to the extent that any provisions of this Section | ||
or the Illinois Power Agency Act do not conflict with this | ||
subsection (k-5), such provisions shall apply to the | ||
procurement event. The energy contracts shall be for 24 hour by | ||
7 day supply over a term that runs from the first delivery year | ||
through December 31, 2017. For a utility that serves over 2 | ||
million customers, the energy contracts shall be multi-year | ||
with pricing escalating at 2.5% per annum. The energy contracts | ||
may be designed as financial swaps or may require physical | ||
delivery. | ||
Within 30 days of the effective date of this amendatory Act |
of the 97th General Assembly, each such utility shall submit to | ||
the Agency updated load forecasts for the period June 1, 2013 | ||
through December 31, 2017. The megawatt volume of the contracts | ||
shall be based on the updated load forecasts of the minimum | ||
monthly on-peak or off-peak average load requirements shown in | ||
the forecasts, taking into account any existing energy | ||
contracts in effect as well as the expected migration of the | ||
utility's customers to alternative retail electric suppliers. | ||
The renewable energy credit volume shall be based on the number | ||
of credits that would satisfy the requirements of subsection | ||
(c) of Section 1-75 of the Illinois Power Agency Act, subject | ||
to the rate impact caps and other provisions of subsection (c) | ||
of Section 1-75 of the Illinois Power Agency Act. The | ||
evaluation of contract bids in the competitive procurement | ||
events for energy and for renewable energy credits shall | ||
incorporate price benchmarks set collaboratively by the | ||
Agency, the procurement administrator, the staff of the | ||
Commission, and the procurement monitor. If the contracts are | ||
swap contracts, then they shall be executed as transactions | ||
under a negotiated master agreement based on the form of master | ||
agreement for financial swap contracts sponsored by the | ||
International Swaps and Derivatives Association, Inc. Costs | ||
incurred pursuant to a contract authorized by this subsection | ||
(k-5) shall be deemed prudently incurred and reasonable in | ||
amount and the electric utility shall be entitled to full cost | ||
recovery pursuant to the tariffs filed with the Commission. |
The cost of administering the procurement event described | ||
in this subsection (k-5) shall be paid by the winning supplier | ||
or suppliers to the procurement administrator through a | ||
supplier fee. In the event that there is no winning supplier | ||
for a particular utility, such utility will pay the procurement | ||
administrator for the costs associated with the procurement | ||
event, and those costs shall not be a recoverable expense. | ||
Nothing in this subsection (k-5) is intended to alter the | ||
recovery of costs for any other procurement event. | ||
(l) An electric utility shall recover its costs incurred | ||
under this Section, including, but not limited to, the costs of | ||
procuring power and energy demand-response resources under | ||
this Section. The utility shall file with the initial | ||
procurement plan its proposed tariffs through which its costs | ||
of procuring power that are incurred pursuant to a | ||
Commission-approved procurement plan and those other costs | ||
identified in this subsection (l), will be recovered. The | ||
tariffs shall include a formula rate or charge designed to pass | ||
through both the costs incurred by the utility in procuring a | ||
supply of electric power and energy for the applicable customer | ||
classes with no mark-up or return on the price paid by the | ||
utility for that supply, plus any just and reasonable costs | ||
that the utility incurs in arranging and providing for the | ||
supply of electric power and energy. The formula rate or charge | ||
shall also contain provisions that ensure that its application | ||
does not result in over or under recovery due to changes in |
customer usage and demand patterns, and that provide for the | ||
correction, on at least an annual basis, of any accounting | ||
errors that may occur. A utility shall recover through the | ||
tariff all reasonable costs incurred to implement or comply | ||
with any procurement plan that is developed and put into effect | ||
pursuant to Section 1-75 of the Illinois Power Agency Act and | ||
this Section, including any fees assessed by the Illinois Power | ||
Agency, costs associated with load balancing, and contingency | ||
plan costs. The electric utility shall also recover its full | ||
costs of procuring electric supply for which it contracted | ||
before the effective date of this Section in conjunction with | ||
the provision of full requirements service under fixed-price | ||
bundled service tariffs subsequent to December 31, 2006. All | ||
such costs shall be deemed to have been prudently incurred. The | ||
pass-through tariffs that are filed and approved pursuant to | ||
this Section shall not be subject to review under, or in any | ||
way limited by, Section 16-111(i) of this Act. | ||
(m) The Commission has the authority to adopt rules to | ||
carry out the provisions of this Section. For the public | ||
interest, safety, and welfare, the Commission also has | ||
authority to adopt rules to carry out the provisions of this | ||
Section on an emergency basis immediately following the | ||
effective date of this amendatory Act. | ||
(n) Notwithstanding any other provision of this Act, any | ||
affiliated electric utilities that submit a single procurement | ||
plan covering their combined needs may procure for those |
combined needs in conjunction with that plan, and may enter | ||
jointly into power supply contracts, purchases, and other | ||
procurement arrangements, and allocate capacity and energy and | ||
cost responsibility therefor among themselves in proportion to | ||
their requirements. | ||
(o) On or before June 1 of each year, the Commission shall | ||
hold an informal hearing for the purpose of receiving comments | ||
on the prior year's procurement process and any recommendations | ||
for change.
| ||
(p) An electric utility subject to this Section may propose | ||
to invest, lease, own, or operate an electric generation | ||
facility as part of its procurement plan, provided the utility | ||
demonstrates that such facility is the least-cost option to | ||
provide electric service to eligible retail customers. If the | ||
facility is shown to be the least-cost option and is included | ||
in a procurement plan prepared in accordance with Section 1-75 | ||
of the Illinois Power Agency Act and this Section, then the | ||
electric utility shall make a filing pursuant to Section 8-406 | ||
of this the Act, and may request of the Commission any | ||
statutory relief required thereunder. If the Commission grants | ||
all of the necessary approvals for the proposed facility, such | ||
supply shall thereafter be considered as a pre-existing | ||
contract under subsection (b) of this Section. The Commission | ||
shall in any order approving a proposal under this subsection | ||
specify how the utility will recover the prudently incurred | ||
costs of investing in, leasing, owning, or operating such |
generation facility through just and reasonable rates charged | ||
to eligible retail customers. Cost recovery for facilities | ||
included in the utility's procurement plan pursuant to this | ||
subsection shall not be subject to review under or in any way | ||
limited by the provisions of Section 16-111(i) of this Act. | ||
Nothing in this Section is intended to prohibit a utility from | ||
filing for a fuel adjustment clause as is otherwise permitted | ||
under Section 9-220 of this Act.
| ||
(Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09 .) | ||
(220 ILCS 5/16-111.5B new) | ||
Sec. 16-111.5B. Provisions relating to energy efficiency | ||
procurement. | ||
(a) Beginning in 2012, procurement plans prepared pursuant | ||
to Section 16-111.5 of this Act shall be subject to the | ||
following additional requirements: | ||
(1) The analysis included pursuant to paragraph (2) of | ||
subsection (b) of Section 16-111.5 shall also include the | ||
impact of energy efficiency building codes or appliance | ||
standards, both current and projected. | ||
(2) The procurement plan components described in | ||
subsection (b) of Section 16-111.5 shall also include an | ||
assessment of opportunities to expand the programs | ||
promoting energy efficiency measures that have been | ||
offered under plans approved pursuant to Section 8-103 of | ||
this Act or to implement additional cost-effective energy |
efficiency programs or measures. | ||
(3) In addition to the information provided pursuant to | ||
paragraph (1) of subsection (d) of Section 16-111.5 of this | ||
Act, each Illinois utility procuring power pursuant to that | ||
Section shall annually provide to the Illinois Power Agency | ||
by July 15 of each year, or such other date as may be | ||
required by the Commission or Agency, an assessment of | ||
cost-effective energy efficiency programs or measures that | ||
could be included in the procurement plan. The assessment | ||
shall include the following: | ||
(A) A comprehensive energy efficiency potential | ||
study for the utility's service territory that was | ||
completed within the past 3 years. | ||
(B) Beginning in 2014, the most recent analysis | ||
submitted pursuant to Section 8-103A of this Act and | ||
approved by the Commission under subsection (f) of | ||
Section 8-103 of this Act. | ||
(C) Identification of new or expanded | ||
cost-effective energy efficiency programs or measures | ||
that are incremental to those included in energy | ||
efficiency and demand-response plans approved by the | ||
Commission pursuant to Section 8-103 of this Act and | ||
that would be offered to eligible retail customers. | ||
(D) Analysis showing that the new or expanded | ||
cost-effective energy efficiency programs or measures | ||
would lead to a reduction in the overall cost of |
electric service. | ||
(E) Analysis of how the cost of procuring | ||
additional cost-effective energy efficiency measures | ||
compares over the life of the measures to the | ||
prevailing cost of comparable supply. | ||
(F) An energy savings goal, expressed in | ||
megawatt-hours, for the year in which the measures will | ||
be implemented. | ||
In preparing such assessments, a utility shall conduct | ||
an annual solicitation process for purposes of requesting | ||
proposals from third-party vendors, the results of which | ||
shall be provided to the Agency as part of the assessment, | ||
including documentation of all bids received. The utility | ||
shall develop requests for proposals consistent with the | ||
manner in which it develops requests for proposals under | ||
plans approved pursuant to Section 8-103 of this Act, which | ||
considers input from the Agency and interested | ||
stakeholders. | ||
(4) The Illinois Power Agency shall include in the | ||
procurement plan prepared pursuant to paragraph (2) of | ||
subsection (d) of Section 16-111.5 of this Act energy | ||
efficiency programs and measures it determines are | ||
cost-effective and the associated annual energy savings | ||
goal included in the annual solicitation process and | ||
assessment submitted pursuant to paragraph (3) of this | ||
subsection (a). |
(5) Pursuant to paragraph (4) of subsection (d) of | ||
Section 16-111.5 of this Act, the Commission shall also | ||
approve the energy efficiency programs and measures | ||
included in the procurement plan, including the annual | ||
energy savings goal, if the Commission determines they | ||
fully capture the potential for all achievable | ||
cost-effective savings, to the extent practicable, and | ||
otherwise satisfy the requirements of Section 8-103 of this | ||
Act. | ||
In the event the Commission approves the procurement of | ||
additional energy efficiency, it shall reduce the amount of | ||
power to be procured under the procurement plan to reflect | ||
the additional energy efficiency and shall direct the | ||
utility to undertake the procurement of such energy | ||
efficiency, which shall not be subject to the requirements | ||
of subsection (e) of Section 16-111.5 of this Act. The | ||
utility shall consider input from the Agency and interested | ||
stakeholders on the procurement and administration | ||
process. | ||
(6) An electric utility shall recover its costs | ||
incurred under this Section related to the implementation | ||
of energy efficiency programs and measures approved by the | ||
Commission in its order approving the procurement plan | ||
under Section 16-111.5 of this Act, including, but not | ||
limited to, all costs associated with complying with this | ||
Section and all start-up and administrative costs and the |
costs for any evaluation, measurement, and verification of | ||
the measures, from eligible retail customers through the | ||
automatic adjustment clause tariff established pursuant to | ||
Section 8-103 of this Act, provided, however, that the | ||
limitations described in subsection (d) of that Section | ||
shall not apply to the costs incurred pursuant to this | ||
Section or Section 16-111.7 of this Act. | ||
(b) For purposes of this Section, the term "energy | ||
efficiency" shall have the meaning set forth in Section 1-10 of | ||
the Illinois Power Agency Act, and the term "cost-effective" | ||
shall have the meaning set forth in subsection (a) of Section | ||
8-103 of this Act. In addition, the estimated costs to acquire | ||
an additional energy efficiency measure, when divided by the | ||
number of kilowatt-hours expected to be saved over the life of | ||
the measure, shall be less than or equal to the electricity | ||
costs that would be avoided as a result of the energy | ||
efficiency measure. | ||
(220 ILCS 5/16-111.7)
| ||
Sec. 16-111.7. On-bill financing program; electric | ||
utilities. | ||
(a) The Illinois General Assembly finds that Illinois homes | ||
and businesses have the potential to save energy through | ||
conservation and cost-effective energy efficiency measures. | ||
Programs created pursuant to this Section will allow utility | ||
customers to purchase cost-effective energy efficiency |
measures , including measures set forth in a | ||
Commission-approved energy efficiency and demand-response plan | ||
under Section 8-103 of this Act and that are cost-effective as | ||
that term is defined by that Section, with no required initial | ||
upfront payment, and to pay the cost of those products and | ||
services over time on their utility bill. | ||
(b) Notwithstanding any other provision of this Act, an | ||
electric utility serving more than 100,000 customers on January | ||
1, 2009 shall offer a Commission-approved on-bill financing | ||
program ("program") that allows its eligible retail customers, | ||
as that term is defined in Section 16-111.5 of this Act, who | ||
own a residential single family home, duplex, or other | ||
residential building with 4 or less units, or condominium at | ||
which the electric service is being provided (i) to borrow | ||
funds from a third party lender in order to purchase electric | ||
energy efficiency measures approved under the program for | ||
installation in such home or condominium without any required | ||
upfront payment and (ii) to pay back such funds over time | ||
through the electric utility's bill. Based upon the process | ||
described in subsection (b-5) of this Section, small commercial | ||
retail customers, as that term is defined in Section 16-102 of | ||
this Act, who own the premises at which electric service is | ||
being provided may be included in such program. After receiving | ||
a request from an electric utility for approval of a proposed | ||
program and tariffs pursuant to this Section, the Commission | ||
shall render its decision within 120 days. If no decision is |
rendered within 120 days, then the request shall be deemed to | ||
be approved. | ||
(b-5) Within 30 days after the effective date of this | ||
amendatory Act of the 96th General Assembly, the Commission | ||
shall convene a workshop process during which interested | ||
participants may discuss issues related to the program, | ||
including program design, eligible electric energy efficiency | ||
measures, vendor qualifications, and a methodology for | ||
ensuring ongoing compliance with such qualifications, | ||
financing, sample documents such as request for proposals, | ||
contracts and agreements, dispute resolution, pre-installment | ||
and post-installment verification, and evaluation. The | ||
workshop process shall be completed within 150 days after the | ||
effective date of this amendatory Act of the 96th General | ||
Assembly. | ||
(c) Not later than 60 days following completion of the | ||
workshop process described in subsection (b-5) of this Section, | ||
each electric utility subject to subsection (b) of this Section | ||
shall submit a proposed program to the Commission that contains | ||
the following components: | ||
(1) A list of recommended electric energy efficiency | ||
measures that will be eligible for on-bill financing. An | ||
eligible electric energy efficiency measure ("measure") | ||
shall be defined by the following: | ||
(A) the measure would be applied to or replace | ||
electric energy-using equipment; and either |
(B) application of the measure to equipment and | ||
systems will have estimated electricity savings | ||
(determined by rates in effect at the time of | ||
purchase), that are sufficient to cover the costs of | ||
implementing the measures, including finance charges | ||
and any program fees not recovered pursuant to | ||
subsection (f) of this Section ; to . To assist the | ||
electric utility in identifying or approving measures, | ||
the utility may consult with the Department of Commerce | ||
and Economic Opportunity, as well as with retailers, | ||
technicians, and installers of electric energy | ||
efficiency measures and energy auditors (collectively | ||
"vendors") ; or . | ||
(C) the measure is included in a | ||
Commission-approved energy efficiency and | ||
demand-response plan under Section 8-103 of this Act | ||
and is cost-effective as that term is defined by that | ||
Section. | ||
(2) The electric utility shall issue a request for | ||
proposals ("RFP") to lenders for purposes of providing | ||
financing to participants to pay for approved measures. The | ||
RFP criteria shall include, but not be limited to, the | ||
interest rate, origination fees, and credit terms. The | ||
utility shall select the winning bidders based on its | ||
evaluation of these criteria, with a preference for those | ||
bids containing the rates, fees, and terms most favorable |
to participants; | ||
(3) The utility shall work with the lenders selected | ||
pursuant to the RFP process, and with vendors, to establish | ||
the terms and processes pursuant to which a participant can | ||
purchase eligible electric energy efficiency measures | ||
using the financing obtained from the lender. The vendor | ||
shall explain and offer the approved financing packaging to | ||
those customers identified in subsection (b) of this | ||
Section and shall assist customers in applying for | ||
financing. As part of the process, vendors shall also | ||
provide to participants information about any other | ||
incentives that may be available for the measures. | ||
(4) The lender shall conduct credit checks or undertake | ||
other appropriate measures to limit credit risk, and shall | ||
review and approve or deny financing applications | ||
submitted by customers identified in subsection (b) of this | ||
Section. Following the lender's approval of financing and | ||
the participant's purchase of the measure or measures, the | ||
lender shall forward payment information to the electric | ||
utility, and the utility shall add as a separate line item | ||
on the participant's utility bill a charge showing the | ||
amount due under the program each month. | ||
(5) A loan issued to a participant pursuant to the | ||
program shall be the sole responsibility of the | ||
participant, and any dispute that may arise concerning the | ||
loan's terms, conditions, or charges shall be resolved |
between the participant and lender. Upon transfer of the | ||
property title for the premises at which the participant | ||
receives electric service from the utility or the | ||
participant's request to terminate service at such | ||
premises, the participant shall pay in full its electric | ||
utility bill, including all amounts due under the program, | ||
provided that this obligation may be modified as provided | ||
in subsection (g) of this Section. Amounts due under the | ||
program shall be deemed amounts owed for residential and, | ||
as appropriate, small commercial electric service. | ||
(6) The electric utility shall remit payment in full to | ||
the lender each month on behalf of the participant. In the | ||
event a participant defaults on payment of its electric | ||
utility bill, the electric utility shall continue to remit | ||
all payments due under the program to the lender, and the | ||
utility shall be entitled to recover all costs related to a | ||
participant's nonpayment through the automatic adjustment | ||
clause tariff established pursuant to Section 16-111.8 of | ||
this Act. In addition, the electric utility shall retain a | ||
security interest in the measure or measures purchased | ||
under the program, and the utility retains its right to | ||
disconnect a participant that defaults on the payment of | ||
its utility bill. | ||
(7) The total outstanding amount financed under the | ||
program shall not exceed $2.5 million for an electric | ||
utility or electric utilities under a single holding |
company, provided that the electric utility or electric | ||
utilities may petition the Commission for an increase in | ||
such amount. | ||
(d) A program approved by the Commission shall also include | ||
the following criteria and guidelines for such program: | ||
(1) guidelines for financing of measures installed | ||
under a program, including, but not limited to, RFP | ||
criteria and limits on both individual loan amounts and the | ||
duration of the loans; | ||
(2) criteria and standards for identifying and | ||
approving measures; | ||
(3) qualifications of vendors that will market or | ||
install measures, as well as a methodology for ensuring | ||
ongoing compliance with such qualifications; | ||
(4) sample contracts and agreements necessary to | ||
implement the measures and program; and | ||
(5) the types of data and information that utilities | ||
and vendors participating in the program shall collect for | ||
purposes of preparing the reports required under | ||
subsection (g) of this Section. | ||
(e) The proposed program submitted by each electric utility | ||
shall be consistent with the provisions of this Section that | ||
define operational, financial and billing arrangements between | ||
and among program participants, vendors, lenders, and the | ||
electric utility. | ||
(f) An electric utility shall recover all of the prudently |
incurred costs of offering a program approved by the Commission | ||
pursuant to this Section, including, but not limited to, all | ||
start-up and administrative costs and the costs for program | ||
evaluation. All prudently incurred costs under this Section | ||
shall be recovered from the residential and small commercial | ||
retail customer classes eligible to participate in the program | ||
through the automatic adjustment clause tariff established | ||
pursuant to Section 8-103 of this Act. | ||
(g) An independent evaluation of a program shall be | ||
conducted after 3 years of the program's operation. The | ||
electric utility shall retain an independent evaluator who | ||
shall evaluate the effects of the measures installed under the | ||
program and the overall operation of the program, including but | ||
not limited to customer eligibility criteria and whether the | ||
payment obligation for permanent electric energy efficiency | ||
measures that will continue to provide benefits of energy | ||
savings should attach to the meter location. As part of the | ||
evaluation process, the evaluator shall also solicit feedback | ||
from participants and interested stakeholders. The evaluator | ||
shall issue a report to the Commission on its findings no later | ||
than 4 years after the date on which the program commenced, and | ||
the Commission shall issue a report to the Governor and General | ||
Assembly including a summary of the information described in | ||
this Section as well as its recommendations as to whether the | ||
program should be discontinued, continued with modification or | ||
modifications or continued without modification, provided that |
any recommended modifications shall only apply prospectively | ||
and to measures not yet installed or financed. | ||
(h) An electric utility offering a Commission-approved | ||
program pursuant to this Section shall not be required to | ||
comply with any other statute, order, rule, or regulation of | ||
this State that may relate to the offering of such program, | ||
provided that nothing in this Section is intended to limit the | ||
electric utility's obligation to comply with this Act and the | ||
Commission's orders, rules, and regulations, including Part | ||
280 of Title 83 of the Illinois Administrative Code. | ||
(i) The source of a utility customer's electric supply | ||
shall not disqualify a customer from participation in the | ||
utility's on-bill financing program. Customers of alternative | ||
retail electric suppliers may participate in the program under | ||
the same terms and conditions applicable to the utility's | ||
supply customers.
| ||
(Source: P.A. 96-33, eff. 7-10-09.)
| ||
(220 ILCS 5/16-128)
| ||
Sec. 16-128. Provisions related to utility employees
| ||
during the mandatory transition period. | ||
(a) The General Assembly finds:
| ||
(1) The reliability and safety of the electric system | ||
has depended and depends on a
workforce of skilled and | ||
dedicated employees, equipped with technical training
and | ||
experience.
|
(2) The integrity and reliability of the system has | ||
also requires depended on the
industry's commitment to | ||
invest in regular inspection and maintenance, to
assure | ||
that it can withstand the demands of heavy service | ||
requirements and
emergency situations.
| ||
(3) It is in the State's interest to protect the | ||
interests of utility
employees who have and continue to | ||
dedicate dedicated themselves to assuring reliable service | ||
to the
citizens of this State, and who might otherwise be | ||
economically displaced in a
restructured industry.
| ||
The General Assembly further finds that it is
necessary to | ||
assure that employees of electric utilities and employees of | ||
contractors or subcontractors performing work on behalf of an | ||
electric utility operating in the
deregulated industry have the | ||
requisite skills, knowledge, training, experience, and
| ||
competence to provide reliable and safe electrical service | ||
under this Act
and therefore that alternative retail electric | ||
suppliers shall be required to
demonstrate
the competence of | ||
their employees to work in the industry .
| ||
The General Assembly also finds that it is necessary to | ||
assure that employees of alternative retail electric suppliers | ||
and employees of contractors or subcontractors performing work | ||
on behalf of an alternative retail electric supplier operating | ||
in the deregulated industry have the requisite skills, | ||
knowledge, training, experience, and competence to provide | ||
reliable and safe electrical service under this Act. |
To ensure that these findings and prerequisites for | ||
reliable and safe electrical service continue to prevail, each | ||
alternative retail electric supplier, electric utility, and | ||
contractors and subcontractors performing work on behalf of an | ||
electric utility or alternative retail electric supplier must | ||
demonstrate the competence of their respective employees to | ||
work on the distribution system. | ||
The knowledge, skill, training, experience, and competence | ||
levels to be
demonstrated shall be consistent with those | ||
generally required
of or by the electric utilities in this | ||
State as of January 1, 2007, with respect to
their employees | ||
and employees of contractors or subcontractors performing work | ||
on their behalf. Nothing in this Section shall prohibit an | ||
electric utility from establishing knowledge, skill, training, | ||
experience, and competence levels greater than those required | ||
as of January 1, 2007 .
| ||
An adequate Adequate demonstration of requisite knowledge, | ||
skill , training, experience, and
competence shall include , at a | ||
minimum, such factors as completion or current participation | ||
and ultimate completion by the
employee of an accredited or | ||
otherwise recognized
apprenticeship program for the particular | ||
craft, trade or
skill, or specified and several years of | ||
employment with an electric
utility performing a particular | ||
work function that is utilized by an electric utility .
| ||
Notwithstanding any law, tariff, Commission rule, order, | ||
or decision to the contrary, the Commission shall have an |
affirmative statutory obligation to ensure that an electric | ||
utility is employing employees, contractors, and | ||
subcontractors with employees who meet the requirements of | ||
subsection (a) of this Section when installing, constructing, | ||
operating, and maintaining generation, transmission, or | ||
distribution facilities and equipment within this State | ||
pursuant to any provision in this Act or any Commission order, | ||
rule, or decision. | ||
For purposes of this Section, "distribution facilities and | ||
equipment" means any and all of the facilities and equipment, | ||
including, but not limited to, substations, distribution | ||
feeder circuits, switches, meters, protective equipment, | ||
primary circuits, distribution transformers, line extensions | ||
and service extensions both above or below ground, conduit, | ||
risers, elbows, transformer pads, junction boxes, manholes, | ||
pedestals, conductors, and all associated fittings that | ||
connect the transmission or distribution system to either the | ||
weatherhead on the retail customer's building or other | ||
structure for above ground service or to the terminals on the | ||
meter base of the retail customer's building or other structure | ||
for below ground service. | ||
To implement this requirement for alternative retail | ||
electric suppliers , the Commission, in
determining that an | ||
applicant meets the standards for
certification as an | ||
alternative retail electric supplier,
shall require the | ||
applicant to demonstrate (i) that the
applicant is licensed to |
do business, and bonded, in the State
of Illinois; and (ii) | ||
that the employees of the applicant that
will be installing, | ||
operating, and maintaining generation,
transmission, or | ||
distribution facilities within this State, or
any entity with | ||
which the applicant has contracted to perform
those functions | ||
within this State, have the requisite knowledge, skills, | ||
training, experience, and
competence to perform those | ||
functions in a safe and
responsible manner in order to provide | ||
safe and reliable
service, in accordance with the criteria | ||
stated above.
| ||
(b) The General Assembly finds, based on experience in
| ||
other industries that have undergone similar transitions, that
| ||
the introduction of competition into the State's electric
| ||
utility industry may result in workforce reductions by
electric | ||
utilities which may adversely affect persons who have
been | ||
employed by this State's electric utilities in functions
| ||
important to the public convenience and welfare. The General
| ||
Assembly further finds that the impacts on employees and their
| ||
communities of any necessary reductions in the utility
| ||
workforce directly caused by this restructuring of the
electric | ||
industry shall be mitigated to the extent
practicable through | ||
such means as offers of voluntary
severance, retraining, early | ||
retirement, outplacement and
related benefits. Therefore, | ||
before any such reduction in the
workforce during the | ||
transition period, an electric utility
shall present to its | ||
employees or their representatives a
workforce reduction plan |
outlining the means by which the
electric utility intends to | ||
mitigate the impact of such
workforce reduction on its | ||
employees.
| ||
(c) In the event of a sale, purchase, or any other transfer
| ||
of ownership during the mandatory transition period of one or
| ||
more Illinois divisions or business units, and/or generating
| ||
stations or generating units, of an electric utility, the
| ||
electric utility's contract and/or agreements with the
| ||
acquiring entity or persons shall require that the entity or
| ||
persons hire a sufficient number of non-supervisory employees
| ||
to operate and maintain the station, division or unit by
| ||
initially making offers of employment to the non-supervisory
| ||
workforce of the electric utility's division, business unit,
| ||
generating station and/or generating unit at no less than the
| ||
wage rates, and substantially equivalent fringe benefits and
| ||
terms and conditions of employment that are in effect at the
| ||
time of transfer of ownership of said division, business unit,
| ||
generating station, and/or generating units; and said wage
| ||
rates and substantially equivalent fringe benefits and terms
| ||
and conditions of employment shall continue for at least 30
| ||
months from the time of said transfer of ownership unless the
| ||
parties mutually agree to different terms and conditions of
| ||
employment within that 30-month period. The utility shall
offer | ||
a transition plan to those employees who are not offered
jobs | ||
by the acquiring entity because that entity has a need
for | ||
fewer workers. If there is litigation concerning the
sale, or |
other transfer of ownership of the electric utility's
| ||
divisions, business units, generating station, or
generating | ||
units, the 30-month period will begin on the date
the acquiring | ||
entity or persons take control or management
of the divisions, | ||
business units, generating station or
generating units of the | ||
electric utility.
| ||
(d) If a utility transfers ownership during the mandatory
| ||
transition period of one or more Illinois divisions, business
| ||
units, generating stations or generating units of an
electric | ||
utility to a majority-owned subsidiary, that
subsidiary shall | ||
continue to employ the utility's employees
who were employed by | ||
the utility at such division, business
unit or generating | ||
station at the time of the transfer under
the same terms and | ||
conditions of employment as those employees
enjoyed at the time | ||
of the transfer. If ownership of the
subsidiary is subsequently | ||
sold or transferred to a third
party during the transition | ||
period, the transition provisions
outlined in subsection (c) | ||
shall apply.
| ||
(e) The plant transfer provisions set forth above shall not
| ||
apply to any generating station which was the subject of a
| ||
sales agreement entered into before January 1, 1997.
| ||
(Source: P.A. 90-561, eff. 12-16-97.)
| ||
(220 ILCS 5/16-128A new) | ||
Sec. 16-128A. Certification of installers. | ||
(a) Within 18 months of the effective date of this |
amendatory Act of the 97th General Assembly, the Commission | ||
shall adopt rules, including emergency rules, establishing | ||
certification requirements ensuring that entities installing | ||
distributed generation facilities are in compliance with the | ||
requirements of subsection (a) of Section 16-128 of this Act. | ||
For purposes of this Section, the phrase "entities | ||
installing distributed generation facilities" shall include, | ||
but not be limited to, all entities that are exempt from the | ||
definition of "alternative retail electric supplier" under | ||
item (v) of Section 16-102 of this Act.
For purposes of this | ||
Section, the phrase "self-installer" means an individual who | ||
(i) leases or purchases a cogeneration facility for his or her | ||
own personal use and (ii) installs such cogeneration or | ||
self-generation facility on his or her own premises without the | ||
assistance of any other person. | ||
(b) In addition to any authority granted to the Commission | ||
under this Act, the Commission is also authorized to: (1) | ||
determine which entities are subject to certification under | ||
this Section; (2) impose reasonable certification fees and | ||
penalties; (3) adopt disciplinary procedures; (4) investigate | ||
any and all activities subject to this Section, including | ||
violations thereof; (5) adopt procedures to issue or renew, or | ||
to refuse to issue or renew, a certification or to revoke, | ||
suspend, place on probation, reprimand, or otherwise | ||
discipline a certified entity under this Act or take other | ||
enforcement action against an entity subject to this Section; |
and (6) prescribe forms to be issued for the administration and | ||
enforcement of this Section. | ||
(c) No electric utility shall provide a retail customer | ||
with net metering service related to interconnection of that | ||
customer's distributed generation facility unless the customer | ||
provides the electric utility with (i) a certification that the | ||
customer installing the distributed generation facility was a | ||
self-installer or (ii) evidence that the distributed | ||
generation facility was installed by an entity certified under | ||
this Section that is also in good standing with the Commission. | ||
For purposes of this subsection, a retail customer includes | ||
that customer's employees, officers, and agents. An electric | ||
utility shall file a tariff or tariffs with the Commission | ||
setting forth the documentation that a retail customer must | ||
provide to an electric utility. The provisions of this | ||
subsection (c) shall apply on or after the effective date of | ||
the Commission's rules prescribed pursuant to subsection (a) of | ||
this Section. | ||
(d) Within 180 days after the effective date of this | ||
amendatory Act of the 97th General Assembly, the Commission | ||
shall initiate a rulemaking proceeding to establish | ||
certification requirements that shall be applicable to vendors | ||
that install electric vehicle charging stations.
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
|