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Public Act 097-0658 | ||||
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AN ACT concerning State government.
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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 Sections 1-75 and 1-125 as follows: | ||||
(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. 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. Beginning | ||
April 1, 2012, and each year thereafter, the Agency | ||
shall prepare a public report for the General Assembly | ||
and Illinois Commerce Commission that shall include, | ||
but not necessarily be limited to: | ||
(A) a comparison of the costs associated with | ||
the Agency's procurement of renewable energy | ||
resources to (1) the Agency's costs associated | ||
with electricity generated by other types of | ||
generation facilities and (2) the benefits | ||
associated with the Agency's procurement of |
renewable energy resources; and | ||
(B) an analysis of the rate impacts associated | ||
with the Illinois Power Agency's procurement of | ||
renewable resources, including, but not limited | ||
to, any long-term contracts, on the eligible | ||
retail customers of electric utilities. | ||
The analysis shall include the Agency's estimate | ||
of the total dollar impact that the Agency's | ||
procurement of renewable resources has had on the | ||
annual electricity bills of the customer classes that | ||
comprise each eligible retail customer class taking | ||
service from an electric utility. The Agency's report | ||
shall also analyze how the operation of the alternative | ||
compliance payment mechanism, any long-term contracts, | ||
or other aspects of the applicable renewable portfolio | ||
standards impacts the rates of customers of | ||
alternative retail electric suppliers. | ||
(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.) | ||
(20 ILCS 3855/1-125)
| ||
Sec. 1-125. Agency annual reports. By December 1, 2011 and | ||
each December 1 thereafter, the The Agency shall report | ||
annually to the Governor and the General Assembly on the | ||
operations and transactions of the Agency. The annual report | ||
shall include, but not be limited to, each of the following: | ||
(1) The quantity, price, and term of all contracts for | ||
electricity procured under the procurement plans for | ||
electric utilities. | ||
(2) The quantity, price, and rate impact of all | ||
renewable resources purchased under the electricity | ||
procurement plans for electric utilities. | ||
(3) The quantity, price, and rate impact of all energy | ||
efficiency and demand response measures purchased for | ||
electric utilities. | ||
(4) The amount of power and energy produced by each | ||
Agency facility. | ||
(5) The quantity of electricity supplied by each Agency | ||
facility to municipal electric systems, governmental | ||
aggregators, or rural electric cooperatives in Illinois. | ||
(6) The revenues as allocated by the Agency to each | ||
facility. | ||
(7) The costs as allocated by the Agency to each | ||
facility. |
(8) The accumulated depreciation for each facility. | ||
(9) The status of any projects under development. | ||
(10) Basic financial and operating information | ||
specifically detailed for the reporting year and | ||
including, but not limited to, income and expense | ||
statements, balance sheets, and changes in financial | ||
position, all in accordance with generally accepted | ||
accounting principles, debt structure, and a summary of | ||
funds on a cash basis. | ||
(11) The quantity, price, and rate impact of all | ||
renewable resources purchased pursuant to long-term | ||
contracts under the electricity procurement plans for | ||
electric utilities.
| ||
(Source: P.A. 95-481, eff. 8-28-07.) | ||
Section 10. The Public Utilities Act is amended by changing | ||
Section 16-115D as follows: | ||
(220 ILCS 5/16-115D) | ||
Sec. 16-115D. Renewable portfolio standard for alternative | ||
retail electric suppliers and electric utilities operating | ||
outside their service territories. | ||
(a) An alternative retail electric supplier shall be | ||
responsible for procuring cost-effective renewable energy | ||
resources as required under item (5) of subsection (d) of | ||
Section 16-115 of this Act as outlined herein: |
(1) The definition of renewable energy resources | ||
contained in Section 1-10 of the Illinois Power Agency Act | ||
applies to all renewable energy resources required to be | ||
procured by alternative retail electric suppliers. | ||
(2) The quantity of renewable energy resources shall be | ||
measured as a percentage of the actual amount of metered | ||
electricity (megawatt-hours) delivered by the alternative | ||
retail electric supplier to Illinois retail customers | ||
during the 12-month period June 1 through May 31, | ||
commencing June 1, 2009, and the comparable 12-month period | ||
in each year thereafter except as provided in item (6) of | ||
this subsection (a). | ||
(3) The quantity of renewable energy resources shall be | ||
in amounts at least equal to the annual percentages set | ||
forth in item (1) of subsection (c) of Section 1-75 of the | ||
Illinois Power Agency Act. At least 60% of the renewable | ||
energy resources procured pursuant to items (1) through (3) | ||
of subsection (b) of this Section shall come from wind | ||
generation and, starting June 1, 2015, at least 6% of the | ||
renewable energy resources procured pursuant to items (1) | ||
through (3) of subsection (b) of this Section shall come | ||
from solar photovoltaics. If, in any given year, an | ||
alternative retail electric supplier does not purchase at | ||
least these levels of renewable energy resources, then the | ||
alternative retail electric supplier shall make | ||
alternative compliance payments, as described in |
subsection (d) of this Section. | ||
(4) The quantity and source of renewable energy | ||
resources shall be independently verified through the PJM | ||
Environmental Information System Generation Attribute | ||
Tracking System (PJM-GATS) or the Midwest Renewable Energy | ||
Tracking System (M-RETS), which shall document the | ||
location of generation, resource type, month, and year of | ||
generation for all qualifying renewable energy resources | ||
that an alternative retail electric supplier uses to comply | ||
with this Section. No later than June 1, 2009, the Illinois | ||
Power Agency shall provide PJM-GATS, M-RETS, and | ||
alternative retail electric suppliers with all information | ||
necessary to identify resources located in Illinois, | ||
within states that adjoin Illinois or within portions of | ||
the PJM and MISO footprint in the United States that | ||
qualify under the definition of renewable energy resources | ||
in Section 1-10 of the Illinois Power Agency Act for | ||
compliance with this Section 16-115D. Alternative retail | ||
electric suppliers shall not be subject to the requirements | ||
in item (3) of subsection (c) of Section 1-75 of the | ||
Illinois Power Agency Act. | ||
(5) All renewable energy credits used to comply with | ||
this Section shall be permanently retired. | ||
(6) The required procurement of renewable energy | ||
resources by an alternative retail electric supplier shall | ||
apply to all metered electricity delivered to Illinois |
retail customers by the alternative retail electric | ||
supplier pursuant to contracts executed or extended after | ||
March 15, 2009. | ||
(b) An alternative retail electric supplier shall comply | ||
with the renewable energy portfolio standards by making an | ||
alternative compliance payment, as described in subsection (d) | ||
of this Section, to cover at least one-half of the alternative | ||
retail electric supplier's compliance obligation and any one or | ||
combination of the following means to cover the remainder of | ||
the alternative retail electric supplier's compliance | ||
obligation: | ||
(1) Generating electricity using renewable energy | ||
resources identified pursuant to item (4) of subsection (a) | ||
of this Section. | ||
(2) Purchasing electricity generated using renewable | ||
energy resources identified pursuant to item (4) of | ||
subsection (a) of this Section through an energy contract. | ||
(3) Purchasing renewable energy credits from renewable | ||
energy resources identified pursuant to item (4) of | ||
subsection (a) of this Section. | ||
(4) Making an alternative compliance payment as | ||
described in subsection (d) of this Section. | ||
(c) Use of renewable energy credits. | ||
(1) Renewable energy credits that are not used by an | ||
alternative retail electric supplier to comply with a | ||
renewable portfolio standard in a compliance year may be |
banked and carried forward up to 2 12-month compliance | ||
periods after the compliance period in which the credit was | ||
generated for the purpose of complying with a renewable | ||
portfolio standard in those 2 subsequent compliance | ||
periods. For the 2009-2010 and 2010-2011 compliance | ||
periods, an alternative retail electric supplier may use | ||
renewable credits generated after December 31, 2008 and | ||
before June 1, 2009 to comply with this Section. | ||
(2) An alternative retail electric supplier is | ||
responsible for demonstrating that a renewable energy | ||
credit used to comply with a renewable portfolio standard | ||
is derived from a renewable energy resource and that the | ||
alternative retail electric supplier has not used, traded, | ||
sold, or otherwise transferred the credit. | ||
(3) The same renewable energy credit may be used by an | ||
alternative retail electric supplier to comply with a | ||
federal renewable portfolio standard and a renewable | ||
portfolio standard established under this Act. An | ||
alternative retail electric supplier that uses a renewable | ||
energy credit to comply with a renewable portfolio standard | ||
imposed by any other state may not use the same credit to | ||
comply with a renewable portfolio standard established | ||
under this Act. | ||
(d) Alternative compliance payments. | ||
(1) The Commission shall establish and post on its | ||
website, within 5 business days after entering an order |
approving a procurement plan pursuant to Section 1-75 of | ||
the Illinois Power Agency Act, maximum alternative | ||
compliance payment rates, expressed on a per kilowatt-hour | ||
basis, that will be applicable in the first compliance | ||
period following the plan approval. A separate maximum | ||
alternative compliance payment rate shall be established | ||
for the service territory of each electric utility that is | ||
subject to subsection (c) of Section 1-75 of the Illinois | ||
Power Agency Act. Each maximum alternative compliance | ||
payment rate shall be equal to the maximum allowable annual | ||
estimated average net increase due to the costs of the | ||
utility's purchase of renewable energy resources included | ||
in the amounts paid by eligible retail customers in | ||
connection with electric service, as described in item (2) | ||
of subsection (c) of Section 1-75 of the Illinois Power | ||
Agency Act for the compliance period, and as established in | ||
the approved procurement plan. Following each procurement | ||
event through which renewable energy resources are | ||
purchased for one or more of these utilities for the | ||
compliance period, the Commission shall establish and post | ||
on its website estimates of the alternative compliance | ||
payment rates, expressed on a per kilowatt-hour basis, that | ||
shall apply for that compliance period. Posting of the | ||
estimates shall occur no later than 10 business days | ||
following the procurement event, however, the Commission | ||
shall not be required to establish and post such estimates |
more often than once per calendar month. By July 1 of each | ||
year, the Commission shall establish and post on its | ||
website the actual alternative compliance payment rates | ||
for the preceding compliance year. For compliance years | ||
beginning prior to June 1, 2014, each alternative | ||
compliance payment rate shall be equal to the total amount | ||
of dollars that the utility contracted to spend on | ||
renewable resources, excepting the additional incremental | ||
cost attributable to solar resources, for the compliance | ||
period divided by the forecasted load of eligible retail | ||
customers, at the customers' meters, as previously | ||
established in the Commission-approved procurement plan | ||
for that compliance year. For compliance years commencing | ||
on or after June 1, 2014, each alternative compliance | ||
payment rate shall be equal to the total amount of dollars | ||
that the utility contracted to spend on all renewable | ||
resources for the compliance period divided by the | ||
forecasted load of eligible retail customers, at the | ||
customers' meters, as previously established in the | ||
Commission-approved procurement plan for that compliance | ||
year. The actual alternative compliance payment rates may | ||
not exceed the maximum alternative compliance payment | ||
rates established for the compliance period. For purposes | ||
of this subsection (d), the term "eligible retail | ||
customers" has the same meaning as found in Section | ||
16-111.5 of this Act. |
(2) In any given compliance year, an alternative retail | ||
electric supplier may elect to use alternative compliance | ||
payments to comply with all or a part of the applicable | ||
renewable portfolio standard. In the event that an | ||
alternative retail electric supplier elects to make | ||
alternative compliance payments to comply with all or a | ||
part of the applicable renewable portfolio standard, such | ||
payments shall be made by September 1, 2010 for the period | ||
of June 1, 2009 to May 1, 2010 and by September 1 of each | ||
year thereafter for the subsequent compliance period, in | ||
the manner and form as determined by the Commission. Any | ||
election by an alternative retail electric supplier to use | ||
alternative compliance payments is subject to review by the | ||
Commission under subsection (e) of this Section. | ||
(3) An alternative retail electric supplier's | ||
alternative compliance payments shall be computed | ||
separately for each electric utility's service territory | ||
within which the alternative retail electric supplier | ||
provided retail service during the compliance period, | ||
provided that the electric utility was subject to | ||
subsection (c) of Section 1-75 of the Illinois Power Agency | ||
Act. For each service territory, the alternative retail | ||
electric supplier's alternative compliance payment shall | ||
be equal to (i) the actual alternative compliance payment | ||
rate established in item (1) of this subsection (d), | ||
multiplied by (ii) the actual amount of metered electricity |
delivered by the alternative retail electric supplier to | ||
retail customers within the service territory during the | ||
compliance period, multiplied by (iii) the result of one | ||
minus the ratios of the quantity of renewable energy | ||
resources used by the alternative retail electric supplier | ||
to comply with the requirements of this Section within the | ||
service territory to the product of the percentage of | ||
renewable energy resources required under item (3) of | ||
subsection (a) of this Section and the actual amount of | ||
metered electricity delivered by the alternative retail | ||
electric supplier to retail customers within the service | ||
territory during the compliance period. | ||
(4) All alternative compliance payments by alternative | ||
retail electric suppliers shall be deposited in the | ||
Illinois Power Agency Renewable Energy Resources Fund and | ||
used to purchase renewable energy credits, in accordance | ||
with Section 1-56 of the Illinois Power Agency Act. | ||
Beginning April 1, 2012 and by April 1 of each year | ||
thereafter, the Illinois Power Agency shall submit an | ||
annual report to the General Assembly, the Commission, and | ||
alternative retail electric suppliers that shall include, | ||
but not be limited to: | ||
(A) the total amount of alternative compliance | ||
payments received in aggregate from alternative retail | ||
electric suppliers by planning year for all previous | ||
planning years in which the alternative compliance |
payment was in effect; | ||
(B) the amount of those payments utilized to | ||
purchased renewable energy credits itemized by the | ||
date of each procurement in which the payments were | ||
utilized; and | ||
(C) the unused and remaining balance in the Agency | ||
Renewable Energy Resources Fund attributable to those | ||
payments. | ||
(5) The Commission, in consultation with the Illinois | ||
Power Agency, shall establish a process or proceeding to | ||
consider the impact of a federal renewable portfolio | ||
standard, if enacted, on the operation of the alternative | ||
compliance mechanism, which shall include, but not be | ||
limited to, developing, to the extent permitted by the | ||
applicable federal statute, an appropriate methodology to | ||
apportion renewable energy credits retired as a result of | ||
alternative compliance payments made in accordance with | ||
this Section. The Commission shall commence any such | ||
process or proceeding within 35 days after enactment of a | ||
federal renewable portfolio standard. | ||
(e) Each alternative retail electric supplier shall, by | ||
September 1, 2010 and by September 1 of each year thereafter, | ||
prepare and submit to the Commission a report, in a format to | ||
be specified by the Commission on or before December 31, 2009, | ||
that provides information certifying compliance by the | ||
alternative retail electric supplier with this Section, |
including copies of all PJM-GATS and M-RETS reports, and | ||
documentation relating to banking, retiring renewable energy | ||
credits, and any other information that the Commission | ||
determines necessary to ensure compliance with this Section. An | ||
alternative retail electric supplier may file commercially or | ||
financially sensitive information or trade secrets with the | ||
Commission as provided under the rules of the Commission. To be | ||
filed confidentially, the information shall be accompanied by | ||
an affidavit that sets forth both the reasons for the | ||
confidentiality and a public synopsis of the information. | ||
(f) The Commission may initiate a contested case to review | ||
allegations that the alternative retail electric supplier has | ||
violated this Section, including an order issued or rule | ||
promulgated under this Section. In any such proceeding, the | ||
alternative retail electric supplier shall have the burden of | ||
proof. If the Commission finds, after notice and hearing, that | ||
an alternative retail electric supplier has violated this | ||
Section, then the Commission shall issue an order requiring the | ||
alternative retail electric supplier to: | ||
(1) immediately comply with this Section; and | ||
(2) if the violation involves a failure to procure the | ||
requisite quantity of renewable energy resources or pay the | ||
applicable alternative compliance payment by the annual | ||
deadline, the Commission shall require the alternative | ||
retail electric supplier to double the applicable | ||
alternative compliance payment that would otherwise be |
required to bring the alternative retail electric supplier | ||
into compliance with this Section. | ||
If an alternative retail electric supplier fails to comply | ||
with the renewable energy resource portfolio requirement in | ||
this Section more than once in a 5-year period, then the | ||
Commission shall revoke the alternative electric supplier's | ||
certificate of service authority. The Commission shall not | ||
accept an application for a certificate of service authority | ||
from an alternative retail electric supplier that has lost | ||
certification under this subsection (f), or any corporate | ||
affiliate thereof, for at least one year after the date of | ||
revocation. | ||
(g) All of the provisions of this Section apply to electric | ||
utilities operating outside their service area except under | ||
item (2) of subsection (a) of this Section the quantity of | ||
renewable energy resources shall be measured as a percentage of | ||
the actual amount of electricity (megawatt-hours) supplied in | ||
the State outside of the utility's service territory during the | ||
12-month period June 1 through May 31, commencing June 1, 2009, | ||
and the comparable 12-month period in each year thereafter | ||
except as provided in item (6) of subsection (a) of this | ||
Section. | ||
If any such utility fails to procure the requisite quantity | ||
of renewable energy resources by the annual deadline, then the | ||
Commission shall require the utility to double the alternative | ||
compliance payment that would otherwise be required to bring |
the utility into compliance with this Section. | ||
If any such utility fails to comply with the renewable | ||
energy resource portfolio requirement in this Section more than | ||
once in a 5-year period, then the Commission shall order the | ||
utility to cease all sales outside of the utility's service | ||
territory for a period of at least one year. | ||
(h) The provisions of this Section and the provisions of | ||
subsection (d) of Section 16-115 of this Act relating to | ||
procurement of renewable energy resources shall not apply to an | ||
alternative retail electric supplier that operates a combined | ||
heat and power system in this State or that has a corporate | ||
affiliate that operates such a combined heat and power system | ||
in this State that supplies electricity primarily to or for the | ||
benefit of: (i) facilities owned by the supplier, its | ||
subsidiary, or other corporate affiliate; (ii) facilities | ||
electrically integrated with the electrical system of | ||
facilities owned by the supplier, its subsidiary, or other | ||
corporate affiliate; or (iii) facilities that are adjacent to | ||
the site on which the combined heat and power system is | ||
located.
| ||
(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; | ||
96-1437, eff. 8-17-10.)
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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