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Public Act 099-0906 | ||||
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AN ACT concerning regulation.
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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 1. Findings.
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(a) In 2011, the General Assembly encouraged and enabled | ||||
the State's largest electric utilities to undertake | ||||
substantial investment to refurbish, rebuild, modernize, and | ||||
expand Illinois' century-old electric grid. Among those | ||||
investments were the deployment of a smart grid and advanced | ||||
metering infrastructure platform that would be accessible to | ||||
all retail customers through new, digital smart meters. This | ||||
investment, now well underway, not only allows utilities to | ||||
continue to provide safe, reliable, and affordable service to | ||||
the State's current and future utility customers, but also | ||||
empowers the citizens of this State to directly access and | ||||
participate in the rapidly emerging clean energy economy while | ||||
also presenting them with unprecedented choices in their source | ||||
of energy supply and pricing. | ||||
To ensure that the State and its citizens, including | ||||
low-income citizens, are equipped to enjoy the opportunities | ||||
and benefits of the smart grid and evolving clean energy | ||||
marketplace, the General Assembly finds and declares that | ||||
Illinois should continue in its efforts to build the grid of | ||||
the future using the smart grid and advanced metering |
infrastructure platform, as well as maximize the impact of the | ||
State's existing energy efficiency and renewable energy | ||
portfolio standards. Specifically, the Generally Assembly | ||
finds that:
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(1) the State should encourage: the adoption and | ||
deployment of cost-effective distributed energy resource | ||
technologies and devices, such as photovoltaics, which 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; investment in | ||
renewable energy resources, including, but not limited to, | ||
photovoltaic distributed generation, which should benefit | ||
all citizens of the State, including low-income | ||
households;
and | ||
(2) the State's existing energy efficiency standard | ||
should be updated to ensure that customers continue to | ||
realize increased value, to incorporate and optimize | ||
measures enabled by the smart grid, including voltage | ||
optimization measures, and to provide incentives for | ||
electric utilities to achieve the energy savings goals.
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(b) The General
Assembly finds that low-income customers | ||
should be included
within the State's efforts to expand the use | ||
of distributed
generation technologies and devices. | ||
Section 1.5. Zero emission standard legislative findings. |
The General Assembly finds and declares:
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(1) Reducing emissions of carbon dioxide and other air | ||
pollutants, such as sulfur oxides, nitrogen oxides, and | ||
particulate matter, is critical to improving air quality in | ||
Illinois for Illinois residents.
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(2) Sulfur oxides, nitrogen oxides, and particulate | ||
emissions have significant adverse health effects on | ||
persons exposed to them, and carbon dioxide emissions | ||
result in climate change trends that could significantly | ||
adversely impact Illinois.
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(3) The existing renewable portfolio standard has been | ||
successful in promoting the growth of renewable energy | ||
generation to reduce air pollution in Illinois. However, to | ||
achieve its environmental goals, Illinois must expand its | ||
commitment to zero emission energy generation and value the | ||
environmental attributes of zero emission generation that | ||
currently falls outside the scope of the existing renewable | ||
portfolio standard, including, but not limited to, nuclear | ||
power.
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(4) Preserving existing zero emission energy | ||
generation and promoting new zero emission energy | ||
generation is vital to placing the State on a glide path to | ||
achieving its environmental goals and ensuring that air | ||
quality in Illinois continues to improve.
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(5) The Illinois Commerce Commission, the Illinois | ||
Power Agency, the Illinois Environmental Protection |
Agency, and the Department of Commerce and Economic | ||
Opportunity issued a report dated January 5, 2015 titled | ||
"Potential Nuclear Power Plant Closings in Illinois" (the | ||
Report), which addressed the issues identified by Illinois | ||
House Resolution 1146 of the 98th General Assembly, which, | ||
among other things, urged the Illinois Environmental | ||
Protection Agency to prepare a report showing how the | ||
premature closure of existing nuclear power plants in | ||
Illinois will affect the societal cost of increased | ||
greenhouse gas emissions based upon the Environmental | ||
Protection Agency's published societal cost of greenhouse | ||
gases.
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(6) The Report also included analysis from PJM | ||
Interconnection, LLC, which identified significant adverse | ||
consequences for electric reliability, including | ||
significant voltage and thermal violations in the | ||
interstate transmission network, in the event that | ||
Illinois' existing nuclear facilities close prematurely. | ||
The Report also found that nuclear power plants are among | ||
the most reliable sources of energy, which means that | ||
electricity from nuclear power plants is available on the | ||
electric grid all hours of the day and when needed, thereby | ||
always reducing carbon emissions.
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(7) Illinois House Resolution 1146 further urged that | ||
the Report make findings concerning potential market-based | ||
solutions that will ensure that the premature closure of |
these nuclear power plants does not occur and that the | ||
associated dire consequences to the environment, electric | ||
reliability, and the regional economy are averted.
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(8) The Report identified potential market-based | ||
solutions that will ensure that the premature closure of | ||
these nuclear power plants does not occur and that the | ||
associated dire consequences to the environment, electric | ||
reliability, and the regional economy are averted.
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The General Assembly further finds that the Social Cost of | ||
Carbon is an appropriate valuation of the environmental | ||
benefits provided by zero emission facilities, provided that | ||
the valuation is subject to a price adjustment that can reduce | ||
the price for zero emission credits below the Social Cost of | ||
Carbon. This will ensure that the procurement of zero emission | ||
credits remains affordable for retail customers even if energy | ||
and capacity prices are projected to rise above 2016 levels | ||
reflected in the baseline market price index. | ||
The General Assembly therefore finds that it is necessary | ||
to establish and implement a zero emission standard, which will | ||
increase the State's reliance on zero emission energy through | ||
the procurement of zero emission credits from zero emission | ||
facilities, in order to achieve the State's environmental | ||
objectives and reduce the adverse impact of emitted air | ||
pollutants on the health and welfare of the State's citizens.
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Section 3. The Illinois Administrative Procedure Act is |
amended by changing Section 5-45 as follows: | ||
(5 ILCS 100/5-45) (from Ch. 127, par. 1005-45) | ||
Sec. 5-45. Emergency rulemaking. | ||
(a) "Emergency" means the existence of any situation that | ||
any agency
finds reasonably constitutes a threat to the public | ||
interest, safety, or
welfare. | ||
(b) If any agency finds that an
emergency exists that | ||
requires adoption of a rule upon fewer days than
is required by | ||
Section 5-40 and states in writing its reasons for that
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finding, the agency may adopt an emergency rule without prior | ||
notice or
hearing upon filing a notice of emergency rulemaking | ||
with the Secretary of
State under Section 5-70. The notice | ||
shall include the text of the
emergency rule and shall be | ||
published in the Illinois Register. Consent
orders or other | ||
court orders adopting settlements negotiated by an agency
may | ||
be adopted under this Section. Subject to applicable | ||
constitutional or
statutory provisions, an emergency rule | ||
becomes effective immediately upon
filing under Section 5-65 or | ||
at a stated date less than 10 days
thereafter. The agency's | ||
finding and a statement of the specific reasons
for the finding | ||
shall be filed with the rule. The agency shall take
reasonable | ||
and appropriate measures to make emergency rules known to the
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persons who may be affected by them. | ||
(c) An emergency rule may be effective for a period of not | ||
longer than
150 days, but the agency's authority to adopt an |
identical rule under Section
5-40 is not precluded. No | ||
emergency rule may be adopted more
than once in any 24-month 24 | ||
month period, except that this limitation on the number
of | ||
emergency rules that may be adopted in a 24-month 24 month | ||
period does not apply
to (i) emergency rules that make | ||
additions to and deletions from the Drug
Manual under Section | ||
5-5.16 of the Illinois Public Aid Code or the
generic drug | ||
formulary under Section 3.14 of the Illinois Food, Drug
and | ||
Cosmetic Act, (ii) emergency rules adopted by the Pollution | ||
Control
Board before July 1, 1997 to implement portions of the | ||
Livestock Management
Facilities Act, (iii) emergency rules | ||
adopted by the Illinois Department of Public Health under | ||
subsections (a) through (i) of Section 2 of the Department of | ||
Public Health Act when necessary to protect the public's | ||
health, (iv) emergency rules adopted pursuant to subsection (n) | ||
of this Section, (v) emergency rules adopted pursuant to | ||
subsection (o) of this Section, or (vi) emergency rules adopted | ||
pursuant to subsection (c-5) of this Section. Two or more | ||
emergency rules having substantially the same
purpose and | ||
effect shall be deemed to be a single rule for purposes of this
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Section. | ||
(c-5) To facilitate the maintenance of the program of group | ||
health benefits provided to annuitants, survivors, and retired | ||
employees under the State Employees Group Insurance Act of | ||
1971, rules to alter the contributions to be paid by the State, | ||
annuitants, survivors, retired employees, or any combination |
of those entities, for that program of group health benefits, | ||
shall be adopted as emergency rules. The adoption of those | ||
rules shall be considered an emergency and necessary for the | ||
public interest, safety, and welfare. | ||
(d) In order to provide for the expeditious and timely | ||
implementation
of the State's fiscal year 1999 budget, | ||
emergency rules to implement any
provision of Public Act 90-587 | ||
or 90-588
or any other budget initiative for fiscal year 1999 | ||
may be adopted in
accordance with this Section by the agency | ||
charged with administering that
provision or initiative, | ||
except that the 24-month limitation on the adoption
of | ||
emergency rules and the provisions of Sections 5-115 and 5-125 | ||
do not apply
to rules adopted under this subsection (d). The | ||
adoption of emergency rules
authorized by this subsection (d) | ||
shall be deemed to be necessary for the
public interest, | ||
safety, and welfare. | ||
(e) In order to provide for the expeditious and timely | ||
implementation
of the State's fiscal year 2000 budget, | ||
emergency rules to implement any
provision of Public Act 91-24
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or any other budget initiative for fiscal year 2000 may be | ||
adopted in
accordance with this Section by the agency charged | ||
with administering that
provision or initiative, except that | ||
the 24-month limitation on the adoption
of emergency rules and | ||
the provisions of Sections 5-115 and 5-125 do not apply
to | ||
rules adopted under this subsection (e). The adoption of | ||
emergency rules
authorized by this subsection (e) shall be |
deemed to be necessary for the
public interest, safety, and | ||
welfare. | ||
(f) In order to provide for the expeditious and timely | ||
implementation
of the State's fiscal year 2001 budget, | ||
emergency rules to implement any
provision of Public Act 91-712
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or any other budget initiative for fiscal year 2001 may be | ||
adopted in
accordance with this Section by the agency charged | ||
with administering that
provision or initiative, except that | ||
the 24-month limitation on the adoption
of emergency rules and | ||
the provisions of Sections 5-115 and 5-125 do not apply
to | ||
rules adopted under this subsection (f). The adoption of | ||
emergency rules
authorized by this subsection (f) shall be | ||
deemed to be necessary for the
public interest, safety, and | ||
welfare. | ||
(g) In order to provide for the expeditious and timely | ||
implementation
of the State's fiscal year 2002 budget, | ||
emergency rules to implement any
provision of Public Act 92-10
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or any other budget initiative for fiscal year 2002 may be | ||
adopted in
accordance with this Section by the agency charged | ||
with administering that
provision or initiative, except that | ||
the 24-month limitation on the adoption
of emergency rules and | ||
the provisions of Sections 5-115 and 5-125 do not apply
to | ||
rules adopted under this subsection (g). The adoption of | ||
emergency rules
authorized by this subsection (g) shall be | ||
deemed to be necessary for the
public interest, safety, and | ||
welfare. |
(h) In order to provide for the expeditious and timely | ||
implementation
of the State's fiscal year 2003 budget, | ||
emergency rules to implement any
provision of Public Act 92-597
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or any other budget initiative for fiscal year 2003 may be | ||
adopted in
accordance with this Section by the agency charged | ||
with administering that
provision or initiative, except that | ||
the 24-month limitation on the adoption
of emergency rules and | ||
the provisions of Sections 5-115 and 5-125 do not apply
to | ||
rules adopted under this subsection (h). The adoption of | ||
emergency rules
authorized by this subsection (h) shall be | ||
deemed to be necessary for the
public interest, safety, and | ||
welfare. | ||
(i) In order to provide for the expeditious and timely | ||
implementation
of the State's fiscal year 2004 budget, | ||
emergency rules to implement any
provision of Public Act 93-20
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or any other budget initiative for fiscal year 2004 may be | ||
adopted in
accordance with this Section by the agency charged | ||
with administering that
provision or initiative, except that | ||
the 24-month limitation on the adoption
of emergency rules and | ||
the provisions of Sections 5-115 and 5-125 do not apply
to | ||
rules adopted under this subsection (i). The adoption of | ||
emergency rules
authorized by this subsection (i) shall be | ||
deemed to be necessary for the
public interest, safety, and | ||
welfare. | ||
(j) In order to provide for the expeditious and timely | ||
implementation of the provisions of the State's fiscal year |
2005 budget as provided under the Fiscal Year 2005 Budget | ||
Implementation (Human Services) Act, emergency rules to | ||
implement any provision of the Fiscal Year 2005 Budget | ||
Implementation (Human Services) Act may be adopted in | ||
accordance with this Section by the agency charged with | ||
administering that provision, except that the 24-month | ||
limitation on the adoption of emergency rules and the | ||
provisions of Sections 5-115 and 5-125 do not apply to rules | ||
adopted under this subsection (j). The Department of Public Aid | ||
may also adopt rules under this subsection (j) necessary to | ||
administer the Illinois Public Aid Code and the Children's | ||
Health Insurance Program Act. The adoption of emergency rules | ||
authorized by this subsection (j) shall be deemed to be | ||
necessary for the public interest, safety, and welfare.
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(k) In order to provide for the expeditious and timely | ||
implementation of the provisions of the State's fiscal year | ||
2006 budget, emergency rules to implement any provision of | ||
Public Act 94-48 or any other budget initiative for fiscal year | ||
2006 may be adopted in accordance with this Section by the | ||
agency charged with administering that provision or | ||
initiative, except that the 24-month limitation on the adoption | ||
of emergency rules and the provisions of Sections 5-115 and | ||
5-125 do not apply to rules adopted under this subsection (k). | ||
The Department of Healthcare and Family Services may also adopt | ||
rules under this subsection (k) necessary to administer the | ||
Illinois Public Aid Code, the Senior Citizens and Persons with |
Disabilities Property Tax Relief Act, the Senior Citizens and | ||
Disabled Persons Prescription Drug Discount Program Act (now | ||
the Illinois Prescription Drug Discount Program Act), and the | ||
Children's Health Insurance Program Act. The adoption of | ||
emergency rules authorized by this subsection (k) shall be | ||
deemed to be necessary for the public interest, safety, and | ||
welfare.
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(l) In order to provide for the expeditious and timely | ||
implementation of the provisions of the
State's fiscal year | ||
2007 budget, the Department of Healthcare and Family Services | ||
may adopt emergency rules during fiscal year 2007, including | ||
rules effective July 1, 2007, in
accordance with this | ||
subsection to the extent necessary to administer the | ||
Department's responsibilities with respect to amendments to | ||
the State plans and Illinois waivers approved by the federal | ||
Centers for Medicare and Medicaid Services necessitated by the | ||
requirements of Title XIX and Title XXI of the federal Social | ||
Security Act. The adoption of emergency rules
authorized by | ||
this subsection (l) shall be deemed to be necessary for the | ||
public interest,
safety, and welfare.
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(m) In order to provide for the expeditious and timely | ||
implementation of the provisions of the
State's fiscal year | ||
2008 budget, the Department of Healthcare and Family Services | ||
may adopt emergency rules during fiscal year 2008, including | ||
rules effective July 1, 2008, in
accordance with this | ||
subsection to the extent necessary to administer the |
Department's responsibilities with respect to amendments to | ||
the State plans and Illinois waivers approved by the federal | ||
Centers for Medicare and Medicaid Services necessitated by the | ||
requirements of Title XIX and Title XXI of the federal Social | ||
Security Act. The adoption of emergency rules
authorized by | ||
this subsection (m) shall be deemed to be necessary for the | ||
public interest,
safety, and welfare.
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(n) In order to provide for the expeditious and timely | ||
implementation of the provisions of the State's fiscal year | ||
2010 budget, emergency rules to implement any provision of | ||
Public Act 96-45 or any other budget initiative authorized by | ||
the 96th General Assembly for fiscal year 2010 may be adopted | ||
in accordance with this Section by the agency charged with | ||
administering that provision or initiative. The adoption of | ||
emergency rules authorized by this subsection (n) shall be | ||
deemed to be necessary for the public interest, safety, and | ||
welfare. The rulemaking authority granted in this subsection | ||
(n) shall apply only to rules promulgated during Fiscal Year | ||
2010. | ||
(o) In order to provide for the expeditious and timely | ||
implementation of the provisions of the State's fiscal year | ||
2011 budget, emergency rules to implement any provision of | ||
Public Act 96-958 or any other budget initiative authorized by | ||
the 96th General Assembly for fiscal year 2011 may be adopted | ||
in accordance with this Section by the agency charged with | ||
administering that provision or initiative. The adoption of |
emergency rules authorized by this subsection (o) is deemed to | ||
be necessary for the public interest, safety, and welfare. The | ||
rulemaking authority granted in this subsection (o) applies | ||
only to rules promulgated on or after July 1, 2010 ( the | ||
effective date of Public Act 96-958 ) through June 30, 2011. | ||
(p) In order to provide for the expeditious and timely | ||
implementation of the provisions of Public Act 97-689, | ||
emergency rules to implement any provision of Public Act 97-689 | ||
may be adopted in accordance with this subsection (p) by the | ||
agency charged with administering that provision or | ||
initiative. The 150-day limitation of the effective period of | ||
emergency rules does not apply to rules adopted under this | ||
subsection (p), and the effective period may continue through | ||
June 30, 2013. The 24-month limitation on the adoption of | ||
emergency rules does not apply to rules adopted under this | ||
subsection (p). The adoption of emergency rules authorized by | ||
this subsection (p) is deemed to be necessary for the public | ||
interest, safety, and welfare. | ||
(q) In order to provide for the expeditious and timely | ||
implementation of the provisions of Articles 7, 8, 9, 11, and | ||
12 of Public Act 98-104, emergency rules to implement any | ||
provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104 | ||
may be adopted in accordance with this subsection (q) by the | ||
agency charged with administering that provision or | ||
initiative. The 24-month limitation on the adoption of | ||
emergency rules does not apply to rules adopted under this |
subsection (q). The adoption of emergency rules authorized by | ||
this subsection (q) is deemed to be necessary for the public | ||
interest, safety, and welfare. | ||
(r) In order to provide for the expeditious and timely | ||
implementation of the provisions of Public Act 98-651, | ||
emergency rules to implement Public Act 98-651 may be adopted | ||
in accordance with this subsection (r) by the Department of | ||
Healthcare and Family Services. The 24-month limitation on the | ||
adoption of emergency rules does not apply to rules adopted | ||
under this subsection (r). The adoption of emergency rules | ||
authorized by this subsection (r) is deemed to be necessary for | ||
the public interest, safety, and welfare. | ||
(s) In order to provide for the expeditious and timely | ||
implementation of the provisions of Sections 5-5b.1 and 5A-2 of | ||
the Illinois Public Aid Code, emergency rules to implement any | ||
provision of Section 5-5b.1 or Section 5A-2 of the Illinois | ||
Public Aid Code may be adopted in accordance with this | ||
subsection (s) by the Department of Healthcare and Family | ||
Services. The rulemaking authority granted in this subsection | ||
(s) shall apply only to those rules adopted prior to July 1, | ||
2015. Notwithstanding any other provision of this Section, any | ||
emergency rule adopted under this subsection (s) shall only | ||
apply to payments made for State fiscal year 2015. The adoption | ||
of emergency rules authorized by this subsection (s) is deemed | ||
to be necessary for the public interest, safety, and welfare. | ||
(t) In order to provide for the expeditious and timely |
implementation of the provisions of Article II of Public Act | ||
99-6, emergency rules to implement the changes made by Article | ||
II of Public Act 99-6 to the Emergency Telephone System Act may | ||
be adopted in accordance with this subsection (t) by the | ||
Department of State Police. The rulemaking authority granted in | ||
this subsection (t) shall apply only to those rules adopted | ||
prior to July 1, 2016. The 24-month limitation on the adoption | ||
of emergency rules does not apply to rules adopted under this | ||
subsection (t). The adoption of emergency rules authorized by | ||
this subsection (t) is deemed to be necessary for the public | ||
interest, safety, and welfare. | ||
(u) In order to provide for the expeditious and timely | ||
implementation of the provisions of the Burn Victims Relief | ||
Act, emergency rules to implement any provision of the Act may | ||
be adopted in accordance with this subsection (u) by the | ||
Department of Insurance. The rulemaking authority granted in | ||
this subsection (u) shall apply only to those rules adopted | ||
prior to December 31, 2015. The adoption of emergency rules | ||
authorized by this subsection (u) is deemed to be necessary for | ||
the public interest, safety, and welfare. | ||
(v) In order to provide for the expeditious and timely | ||
implementation of the provisions of Public Act 99-516 this | ||
amendatory Act of the 99th General Assembly , emergency rules to | ||
implement Public Act 99-516 this amendatory Act of the 99th | ||
General Assembly may be adopted in accordance with this | ||
subsection (v) by the Department of Healthcare and Family |
Services. The 24-month limitation on the adoption of emergency | ||
rules does not apply to rules adopted under this subsection | ||
(v). The adoption of emergency rules authorized by this | ||
subsection (v) is deemed to be necessary for the public | ||
interest, safety, and welfare. | ||
(w) (v) In order to provide for the expeditious and timely | ||
implementation of the provisions of Public Act 99-796 this | ||
amendatory Act of the 99th General Assembly , emergency rules to | ||
implement the changes made by Public Act 99-796 this amendatory | ||
Act of the 99th General Assembly may be adopted in accordance | ||
with this subsection (w) (v) by the Adjutant General. The | ||
adoption of emergency rules authorized by this subsection (w) | ||
(v) is deemed to be necessary for the public interest, safety, | ||
and welfare. | ||
(x) In order to provide for the expeditious and timely | ||
implementation of the provisions of this amendatory Act of the | ||
99th General Assembly, emergency rules to implement subsection | ||
(i) of Section 16-115D, subsection (g) of Section 16-128A, and | ||
subsection (a) of Section 16-128B of the Public Utilities Act | ||
may be adopted in accordance with this subsection (x) by the | ||
Illinois Commerce Commission. The rulemaking authority granted | ||
in this subsection (x) shall apply only to those rules adopted | ||
within 180 days after the effective date of this amendatory Act | ||
of the 99th General Assembly. The adoption of emergency rules | ||
authorized by this subsection (x) is deemed to be necessary for | ||
the public interest, safety, and welfare. |
(Source: P.A. 98-104, eff. 7-22-13; 98-463, eff. 8-16-13; | ||
98-651, eff. 6-16-14; 99-2, eff. 3-26-15; 99-6, eff. 1-1-16; | ||
99-143, eff. 7-27-15; 99-455, eff. 1-1-16; 99-516, eff. | ||
6-30-16; 99-642, eff. 7-28-16; 99-796, eff. 1-1-17; revised | ||
9-21-16.) | ||
Section 5. The Illinois Power Agency Act is amended by | ||
changing Sections 1-5, 1-10, 1-20, 1-25, 1-56, and 1-75 as | ||
follows: | ||
(20 ILCS 3855/1-5) | ||
Sec. 1-5. Legislative declarations and findings. The | ||
General Assembly finds and declares: | ||
(1) The health, welfare, and prosperity of all Illinois | ||
citizens require the provision of adequate, reliable, | ||
affordable, efficient, and environmentally sustainable | ||
electric service at the lowest total cost over time, taking | ||
into account any benefits of price stability. | ||
(2) (Blank). The transition to retail competition is | ||
not complete. Some customers, especially residential and | ||
small commercial customers, have failed to benefit from | ||
lower electricity costs from retail and wholesale | ||
competition. | ||
(3) (Blank). Escalating prices for electricity in | ||
Illinois pose a serious threat to the economic well-being, | ||
health, and safety of the residents of and the commerce and |
industry of the State. | ||
(4) It To protect against this threat to economic | ||
well-being, health, and safety it is necessary to improve | ||
the process of procuring electricity to serve Illinois | ||
residents, to promote investment in energy efficiency and | ||
demand-response measures, and to maintain and support | ||
development of clean coal technologies , generation | ||
resources that operate at all hours of the day and under | ||
all weather conditions, zero emission facilities, and | ||
renewable resources. | ||
(5) Procuring a diverse electricity supply portfolio | ||
will ensure the lowest total cost over time for adequate, | ||
reliable, efficient, and environmentally sustainable | ||
electric service. | ||
(6) Including cost-effective renewable resources and | ||
zero emission credits from zero emission facilities in that | ||
portfolio will reduce long-term direct and indirect costs | ||
to consumers by decreasing environmental impacts and by | ||
avoiding or delaying the need for new generation, | ||
transmission, and distribution infrastructure. Developing | ||
new renewable energy resources in Illinois, including | ||
brownfield solar projects and community solar projects, | ||
will help to diversify Illinois electricity supply, avoid | ||
and reduce pollution, reduce peak demand, and enhance | ||
public health and well-being of Illinois residents. | ||
(7) Developing community solar projects in Illinois |
will help to expand access to renewable energy resources to | ||
more Illinois residents. | ||
(8) Developing brownfield solar projects in Illinois | ||
will help return blighted or contaminated land to | ||
productive use while enhancing public health and the | ||
well-being of Illinois residents. | ||
(9) (7) Energy efficiency, demand-response measures, | ||
zero emission energy, and renewable energy are resources | ||
currently underused in Illinois. These resources should be | ||
used, when cost effective, to reduce costs to consumers, | ||
improve reliability, and improve environmental quality and | ||
public health. | ||
(10) (8) The State should encourage the use of advanced | ||
clean coal technologies that capture and sequester carbon | ||
dioxide emissions to advance environmental protection | ||
goals and to demonstrate the viability of coal and | ||
coal-derived fuels in a carbon-constrained economy. | ||
(11) (9) The General Assembly enacted Public Act | ||
96-0795 to reform the State's purchasing processes, | ||
recognizing that government procurement is susceptible to | ||
abuse if structural and procedural safeguards are not in | ||
place to ensure independence, insulation, oversight, and | ||
transparency. | ||
(12) (10) The principles that underlie the procurement | ||
reform legislation apply also in the context of power | ||
purchasing. |
The General Assembly therefore finds that it is necessary | ||
to create the Illinois Power Agency and that the goals and | ||
objectives of that Agency are to accomplish each of the | ||
following: | ||
(A) Develop electricity procurement plans 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 electric utilities that on December | ||
31, 2005 provided electric service to at least 100,000 | ||
customers in Illinois and for small multi-jurisdictional | ||
electric utilities that (i) on December 31, 2005 served | ||
less than 100,000 customers in Illinois and (ii) request a | ||
procurement plan for their Illinois jurisdictional load. | ||
The procurement plan shall be updated on an annual basis | ||
and shall include renewable energy resources and, | ||
beginning with the delivery year commencing June 1, 2017, | ||
zero emission credits from zero emission facilities | ||
sufficient to achieve the standards specified in this Act. | ||
(B) Conduct the competitive procurement processes | ||
identified in this Act to procure the supply resources | ||
identified in the procurement plan . | ||
(C) Develop electric generation and co-generation | ||
facilities that use indigenous coal or renewable | ||
resources, or both, financed with bonds issued by the | ||
Illinois Finance Authority. |
(D) Supply electricity from the Agency's facilities at | ||
cost to one or more of the following: municipal electric | ||
systems, governmental aggregators, or rural electric | ||
cooperatives in Illinois.
| ||
(E) Ensure that the process of power procurement is | ||
conducted in an ethical and transparent fashion, immune | ||
from improper influence. | ||
(F) Continue to review its policies and practices to | ||
determine how best to meet its mission of providing the | ||
lowest cost power to the greatest number of people, at any | ||
given point in time, in accordance with applicable law. | ||
(G) Operate in a structurally insulated, independent, | ||
and transparent fashion so that nothing impedes the | ||
Agency's mission to secure power at the best prices the | ||
market will bear, provided that the Agency meets all | ||
applicable legal requirements. | ||
(H) Implement renewable energy procurement and | ||
training programs throughout the State to diversify | ||
Illinois electricity supply, improve reliability, avoid | ||
and reduce pollution, reduce peak demand, and enhance | ||
public health and well-being of Illinois residents, | ||
including low-income residents. | ||
(Source: P.A. 97-325, eff. 8-12-11; 97-618, eff. 10-26-11; | ||
97-813, eff. 7-13-12.)
| ||
(20 ILCS 3855/1-10)
|
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. | ||
"Brownfield site photovoltaic project" means photovoltaics | ||
that are: | ||
(1) interconnected to an electric utility as defined in | ||
this Section, a municipal utility as defined in this | ||
Section, a public utility as defined in Section 3-105 of | ||
the Public Utilities Act, or an electric cooperative, as | ||
defined in Section 3-119 of the Public Utilities Act; and | ||
(2) located at a site that is regulated by any of the | ||
following entities under the following programs: | ||
(A) the United States Environmental Protection | ||
Agency under the federal Comprehensive Environmental | ||
Response, Compensation, and Liability Act of 1980, as | ||
amended; | ||
(B) the United States Environmental Protection | ||
Agency under the Corrective Action Program of the |
federal Resource Conservation and Recovery Act, as | ||
amended; | ||
(C) the Illinois Environmental Protection Agency | ||
under the Illinois Site Remediation Program; or | ||
(D) the Illinois Environmental Protection Agency | ||
under the Illinois Solid Waste Program. | ||
"Clean coal facility" means an electric generating | ||
facility that uses primarily coal as a feedstock and that | ||
captures and sequesters carbon dioxide emissions at the | ||
following levels: at least 50% of the total carbon dioxide | ||
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 dioxide 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 dioxide 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 brownfield facility" means a facility that | ||
(1) has commenced construction by July 1, 2015 on an urban | ||
brownfield site in a municipality with at least 1,000,000 | ||
residents; (2) uses a gasification process to produce | ||
substitute natural gas; (3) uses coal as at least 50% of the | ||
total feedstock over the term of any sourcing agreement with a | ||
utility and the remainder of the feedstock may be either | ||
petroleum coke or coal, with all such coal having a high | ||
bituminous rank and greater than 1.7 pounds of sulfur per | ||
million Btu content unless the facility reasonably determines
| ||
that it is necessary to use additional petroleum coke to
| ||
deliver additional consumer savings, in which case the
facility | ||
shall use coal for at least 35% of the total
feedstock over the | ||
term of any sourcing agreement; and (4) captures and sequesters | ||
at least 85% of the total carbon dioxide emissions that the | ||
facility would otherwise emit. | ||
"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 dioxide emissions | ||
that the facility would otherwise emit, that uses at least 90% | ||
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, and that has a valid and effective permit | ||
to construct emission sources and air pollution control | ||
equipment and approval with respect to the federal regulations | ||
for Prevention of Significant Deterioration of Air Quality | ||
(PSD) for the plant pursuant to the federal Clean Air Act; | ||
provided, however, a clean coal SNG brownfield facility shall | ||
not be a clean coal SNG facility. | ||
"Commission" means the Illinois Commerce Commission. | ||
"Community renewable generation project" means an electric | ||
generating facility that: | ||
(1) is powered by wind, solar thermal energy, | ||
photovoltaic cells or 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) is interconnected at the distribution system level | ||
of an electric utility as defined in this Section, a | ||
municipal utility as defined in this Section that owns or | ||
operates electric distribution facilities, a public | ||
utility as defined in Section 3-105 of the Public Utilities | ||
Act, or an electric cooperative, as defined in Section | ||
3-119 of the Public Utilities Act; | ||
(3) credits the value of electricity generated by the | ||
facility to the subscribers of the facility; and | ||
(4) is limited in nameplate capacity to less than or |
equal to 2,000 kilowatts. | ||
"Costs incurred in connection with the development and | ||
construction of a facility" means: | ||
(1) the cost of acquisition of all real property, | ||
fixtures, and improvements in connection therewith and | ||
equipment, personal property, 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, contingency, as | ||
required by lenders, 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 starting up, |
commissioning, and placing that project in operation. | ||
"Delivery services" has the same definition as found in | ||
Section 16-102 of the Public Utilities Act. | ||
"Delivery year" means the consecutive 12-month period | ||
beginning June 1 of a given year and ending May 31 of the | ||
following year. | ||
"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 or 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 this Section that owns or operates electric | ||
distribution facilities 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 less than or equal | ||
to no more than 2,000 kilowatts. | ||
"Energy efficiency" means measures that reduce the amount | ||
of electricity or natural gas consumed in order required to | ||
achieve a given end use. "Energy efficiency" includes voltage | ||
optimization measures that optimize the voltage at points on | ||
the electric distribution voltage system and thereby reduce | ||
electricity consumption by electric customers' end use | ||
devices. "Energy efficiency" also includes measures that | ||
reduce the total Btus of electricity , and natural gas , and | ||
other fuels needed to meet the end use or uses. | ||
"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 Section 1 of Article VII of the Illinois | ||
Constitution. | ||
"Municipality" means a city, village, or incorporated | ||
town. | ||
"Municipal utility" means a public utility owned and | ||
operated by any subdivision or municipal corporation of this | ||
State. | ||
"Nameplate capacity" means the aggregate inverter | ||
nameplate capacity in kilowatts AC. | ||
"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 one megawatt hour 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, anaerobic digestion, crops and untreated and | ||
unadulterated organic waste biomass, tree waste, and | ||
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. | ||
"Retail customer" has the same definition as found in | ||
Section 16-102 of the Public Utilities Act. | ||
"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, | ||
regardless of whether these activities are conducted by a clean | ||
coal facility, a clean coal SNG facility, a clean coal SNG | ||
brownfield facility, or a party with which a clean coal | ||
facility, clean coal SNG facility, or clean coal SNG brownfield | ||
facility has contracted for such purposes. | ||
"Service area" has the same definition as found in Section | ||
16-102 of the Public Utilities Act. | ||
"Sourcing 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, (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, and (iii) in case of a gas utility, | ||
an agreement between the owner of a clean coal SNG brownfield | ||
facility and the gas utility, which agreement shall have the | ||
terms and conditions meeting the requirements of subsection | ||
(h-1) of Section 9-220 of the Public Utilities Act. | ||
"Subscriber" means a person who (i) takes delivery service | ||
from an electric utility, and (ii) has a subscription of no | ||
less than 200 watts to a community renewable generation project |
that is located in the electric utility's service area. No | ||
subscriber's subscriptions may total more than 40% of the | ||
nameplate capacity of an individual community renewable | ||
generation project. Entities that are affiliated by virtue of a | ||
common parent shall not represent multiple subscriptions that | ||
total more than 40% of the nameplate capacity of an individual | ||
community renewable generation project. | ||
"Subscription" means an interest in a community renewable | ||
generation project expressed in kilowatts, which is sized | ||
primarily to offset part or all of the subscriber's electricity | ||
usage. | ||
"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 and including avoided | ||
costs associated with reduced use of natural gas or other |
fuels, avoided costs associated with reduced water | ||
consumption, and avoided costs associated with reduced | ||
operation and maintenance costs , 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. In discounting | ||
future societal costs and benefits for the purpose of | ||
calculating net present values, a societal discount rate based | ||
on actual, long-term Treasury bond yields should be used. | ||
Notwithstanding anything to the contrary, the TRC test shall | ||
not include or take into account a calculation of market price | ||
suppression effects or demand reduction induced price effects. | ||
"Utility-scale solar project" means an electric generating | ||
facility that: | ||
(1) generates electricity using photovoltaic cells; | ||
and | ||
(2) has a nameplate capacity that is greater than 2,000 | ||
kilowatts. |
"Utility-scale wind project" means an electric generating | ||
facility that: | ||
(1) generates electricity using wind; and | ||
(2) has a nameplate capacity that is greater than 2,000 | ||
kilowatts. | ||
"Zero emission credit" means a tradable credit that | ||
represents the environmental attributes of one megawatt hour of | ||
energy produced from a zero emission facility. | ||
"Zero emission facility" means a facility that: (1) is | ||
fueled by nuclear power; and (2) is interconnected with PJM | ||
Interconnection, LLC or the Midcontinent Independent System | ||
Operator, Inc., or their successors. | ||
(Source: P.A. 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-491, | ||
eff. 8-22-11; 97-616, eff. 10-26-11; 97-813, eff. 7-13-12; | ||
98-90, eff. 7-15-13.)
| ||
(20 ILCS 3855/1-20)
| ||
Sec. 1-20. General powers of the Agency. | ||
(a) The Agency is authorized to do each of the following: | ||
(1) Develop electricity procurement plans 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 electric utilities that on December | ||
31, 2005 provided electric service to at least 100,000 | ||
customers in Illinois and for small multi-jurisdictional |
electric utilities that (A) on December 31, 2005 served | ||
less than 100,000 customers in Illinois and (B) request a | ||
procurement plan for their Illinois jurisdictional load. | ||
Except as provided in paragraph (1.5) of this subsection | ||
(a), the electricity The procurement plans shall be updated | ||
on an annual basis and shall include electricity generated | ||
from renewable resources sufficient to achieve the | ||
standards specified in this Act. Beginning with the | ||
delivery year commencing June 1, 2017, develop procurement | ||
plans to include zero emission credits generated from zero | ||
emission facilities sufficient to achieve the standards | ||
specified in this Act. | ||
(1.5) Develop a long-term renewable resources | ||
procurement plan in accordance with subsection (c) of | ||
Section 1-75 of this Act for renewable energy credits in | ||
amounts sufficient to achieve the standards specified in | ||
this Act for delivery years commencing June 1, 2017 and for | ||
the programs and renewable energy credits specified in | ||
Section 1-56 of this Act. Electricity procurement plans for | ||
delivery years commencing after May 31, 2017, shall not | ||
include procurement of renewable energy resources. | ||
(2) Conduct competitive procurement processes to | ||
procure the supply resources identified in the electricity | ||
procurement plan, pursuant to Section 16-111.5 of the | ||
Public Utilities Act , and, for the delivery year commencing | ||
June 1, 2017, conduct procurement processes to procure zero |
emission credits from zero emission facilities, under | ||
subsection (d-5) of Section 1-75 of this Act . | ||
(2.5) Beginning with the procurement for the 2017 | ||
delivery year, conduct competitive procurement processes | ||
and implement programs to procure renewable energy credits | ||
identified in the long-term renewable resources | ||
procurement plan developed and approved under subsection | ||
(c) of Section 1-75 of this Act and Section 16-111.5 of the | ||
Public Utilities Act. | ||
(3) Develop electric generation and co-generation | ||
facilities that use indigenous coal or renewable | ||
resources, or both, financed with bonds issued by the | ||
Illinois Finance Authority. | ||
(4) Supply electricity from the Agency's facilities at | ||
cost to one or more of the following: municipal electric | ||
systems, governmental aggregators, or rural electric | ||
cooperatives in Illinois. | ||
(b) Except as otherwise limited by this Act, the Agency has | ||
all of the powers necessary or convenient to carry out the | ||
purposes and provisions of this Act, including without | ||
limitation, each of the following: | ||
(1) To have a corporate seal, and to alter that seal at | ||
pleasure, and to use it by causing it or a facsimile to be | ||
affixed or impressed or reproduced in any other manner. | ||
(2) To use the services of the Illinois Finance | ||
Authority necessary to carry out the Agency's purposes. |
(3) To negotiate and enter into loan agreements and | ||
other agreements with the Illinois Finance Authority. | ||
(4) To obtain and employ personnel and hire consultants | ||
that are necessary to fulfill the Agency's purposes, and to | ||
make expenditures for that purpose within the | ||
appropriations for that purpose. | ||
(5) To purchase, receive, take by grant, gift, devise, | ||
bequest, or otherwise, lease, or otherwise acquire, own, | ||
hold, improve, employ, use, and otherwise deal in and with, | ||
real or personal property whether tangible or intangible, | ||
or any interest therein, within the State. | ||
(6) To acquire real or personal property, whether | ||
tangible or intangible, including without limitation | ||
property rights, interests in property, franchises, | ||
obligations, contracts, and debt and equity securities, | ||
and to do so by the exercise of the power of eminent domain | ||
in accordance with Section 1-21; except that any real | ||
property acquired by the exercise of the power of eminent | ||
domain must be located within the State. | ||
(7) To sell, convey, lease, exchange, transfer, | ||
abandon, or otherwise dispose of, or mortgage, pledge, or | ||
create a security interest in, any of its assets, | ||
properties, or any interest therein, wherever situated. | ||
(8) To purchase, take, receive, subscribe for, or | ||
otherwise acquire, hold, make a tender offer for, vote, | ||
employ, sell, lend, lease, exchange, transfer, or |
otherwise dispose of, mortgage, pledge, or grant a security | ||
interest in, use, and otherwise deal in and with, bonds and | ||
other obligations, shares, or other securities (or | ||
interests therein) issued by others, whether engaged in a | ||
similar or different business or activity. | ||
(9) To make and execute agreements, contracts, and | ||
other instruments necessary or convenient in the exercise | ||
of the powers and functions of the Agency under this Act, | ||
including contracts with any person, including personal | ||
service contracts, or with any local government, State | ||
agency, or other entity; and all State agencies and all | ||
local governments are authorized to enter into and do all | ||
things necessary to perform any such agreement, contract, | ||
or other instrument with the Agency. No such agreement, | ||
contract, or other instrument shall exceed 40 years. | ||
(10) To lend money, invest and reinvest its funds in | ||
accordance with the Public Funds Investment Act, and take | ||
and hold real and personal property as security for the | ||
payment of funds loaned or invested. | ||
(11) To borrow money at such rate or rates of interest | ||
as the Agency may determine, issue its notes, bonds, or | ||
other obligations to evidence that indebtedness, and | ||
secure any of its obligations by mortgage or pledge of its | ||
real or personal property, machinery, equipment, | ||
structures, fixtures, inventories, revenues, grants, and | ||
other funds as provided or any interest therein, wherever |
situated. | ||
(12) To enter into agreements with the Illinois Finance | ||
Authority to issue bonds whether or not the income | ||
therefrom is exempt from federal taxation. | ||
(13) To procure insurance against any loss in | ||
connection with its properties or operations in such amount | ||
or amounts and from such insurers, including the federal | ||
government, as it may deem necessary or desirable, and to | ||
pay any premiums therefor. | ||
(14) To negotiate and enter into agreements with | ||
trustees or receivers appointed by United States | ||
bankruptcy courts or federal district courts or in other | ||
proceedings involving adjustment of debts and authorize | ||
proceedings involving adjustment of debts and authorize | ||
legal counsel for the Agency to appear in any such | ||
proceedings. | ||
(15) To file a petition under Chapter 9 of Title 11 of | ||
the United States Bankruptcy Code or take other similar | ||
action for the adjustment of its debts. | ||
(16) To enter into management agreements for the | ||
operation of any of the property or facilities owned by the | ||
Agency. | ||
(17) To enter into an agreement to transfer and to | ||
transfer any land, facilities, fixtures, or equipment of | ||
the Agency to one or more municipal electric systems, | ||
governmental aggregators, or rural electric agencies or |
cooperatives, for such consideration and upon such terms as | ||
the Agency may determine to be in the best interest of the | ||
citizens of Illinois. | ||
(18) To enter upon any lands and within any building | ||
whenever in its judgment it may be necessary for the | ||
purpose of making surveys and examinations to accomplish | ||
any purpose authorized by this Act. | ||
(19) To maintain an office or offices at such place or | ||
places in the State as it may determine. | ||
(20) To request information, and to make any inquiry, | ||
investigation, survey, or study that the Agency may deem | ||
necessary to enable it effectively to carry out the | ||
provisions of this Act. | ||
(21) To accept and expend appropriations. | ||
(22) To engage in any activity or operation that is | ||
incidental to and in furtherance of efficient operation to | ||
accomplish the Agency's purposes, including hiring | ||
employees that the Director deems essential for the | ||
operations of the Agency. | ||
(23) To adopt, revise, amend, and repeal rules with | ||
respect to its operations, properties, and facilities as | ||
may be necessary or convenient to carry out the purposes of | ||
this Act, subject to the provisions of the Illinois | ||
Administrative Procedure Act and Sections 1-22 and 1-35 of | ||
this Act. | ||
(24) To establish and collect charges and fees as |
described in this Act.
| ||
(25) To conduct competitive gasification feedstock | ||
procurement processes to procure the feedstocks for the | ||
clean coal SNG brownfield facility in accordance with the | ||
requirements of Section 1-78 of this Act. | ||
(26) To review, revise, and approve sourcing | ||
agreements and mediate and resolve disputes between gas | ||
utilities and the clean coal SNG brownfield facility | ||
pursuant to subsection (h-1) of Section 9-220 of the Public | ||
Utilities Act. | ||
(27) To request, review and accept proposals, execute | ||
contracts, purchase renewable energy credits and otherwise | ||
dedicate funds from the Illinois Power Agency Renewable | ||
Energy Resources Fund to create and carry out the | ||
objectives of the Illinois Solar for All program in | ||
accordance with Section 1-56 of this Act. | ||
(Source: P.A. 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10; | ||
97-96, eff. 7-13-11; 97-325, eff. 8-12-11; 97-618, eff. | ||
10-26-11; 97-813, eff. 7-13-12.) | ||
(20 ILCS 3855/1-25)
| ||
Sec. 1-25. Agency subject to other laws. Unless otherwise | ||
stated, the Agency is subject to the provisions of all | ||
applicable laws, including but not limited to, each of the | ||
following: | ||
(1) The State Records Act. |
(2) The Illinois Procurement Code, except that the | ||
Illinois Procurement Code does not apply to the hiring or | ||
payment of procurement administrators , or procurement | ||
planning consultants , third-party program managers, or | ||
other persons who will implement the programs described in | ||
Sections 1-56 and pursuant to Section 1-75 of the Illinois | ||
Power Agency Act. | ||
(3) The Freedom of Information Act. | ||
(4) The State Property Control Act. | ||
(5) (Blank). | ||
(6) The State Officials and Employees Ethics Act.
| ||
(Source: P.A. 97-618, eff. 10-26-11.) | ||
(20 ILCS 3855/1-56) | ||
Sec. 1-56. Illinois Power Agency Renewable Energy | ||
Resources Fund ; Illinois Solar for All Program . | ||
(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 as described in this | ||
subsection (b), provided that the changes to this subsection | ||
(b) made by this amendatory Act of the 99th General Assembly | ||
shall not interfere with existing contracts under this Section. | ||
(1) The Illinois Power Agency Renewable Energy | ||
Resources Fund shall be used to purchase renewable energy | ||
credits according to any approved procurement plan |
developed by the Agency prior to June 1, 2017. | ||
(2) The Illinois Power Agency Renewable Energy | ||
Resources Fund shall also be used to create the Illinois | ||
Solar for All Program, which shall include incentives for | ||
low-income distributed generation and community solar | ||
projects, and other associated approved expenditures. The | ||
objectives of the Illinois Solar for All Program are to | ||
bring photovoltaics to low-income communities in this | ||
State in a manner that maximizes the development of new | ||
photovoltaic generating facilities, to create a long-term, | ||
low-income solar marketplace throughout this State, to | ||
integrate, through interaction with stakeholders, with | ||
existing energy efficiency initiatives, and to minimize | ||
administrative costs. The Agency shall include a | ||
description of its proposed approach to the design, | ||
administration, implementation and evaluation of the | ||
Illinois Solar for All Program, as part of the long-term | ||
renewable resources procurement plan authorized by | ||
subsection (c) of Section 1-75 of this Act, and the program | ||
shall be designed to grow the low-income solar market. The | ||
Agency or utility, as applicable, shall purchase renewable | ||
energy credits from the (i) photovoltaic distributed | ||
renewable energy generation projects and (ii) community | ||
solar projects that are procured under procurement | ||
processes authorized by the long-term renewable resources | ||
procurement plans approved by the Commission. |
The Illinois Solar for All Program shall include the | ||
program offerings described in subparagraphs (A) through | ||
(D) of this paragraph (2), which the Agency shall implement | ||
through contracts with third-party providers and, subject | ||
to appropriation, pay the approximate amounts identified | ||
using monies available in the Illinois Power Agency | ||
Renewable Energy Resources Fund. Each contract that | ||
provides for the installation of solar facilities shall | ||
provide that the solar facilities will produce energy and | ||
economic benefits, at a level determined by the Agency to | ||
be reasonable, for the participating low income customers. | ||
The monies available in the Illinois Power Agency Renewable | ||
Energy Resources Fund and not otherwise committed to | ||
contracts executed under subsection (i) of this Section | ||
shall be allocated among the programs described in this | ||
paragraph (2), as follows: 22.5% of these funds shall be | ||
allocated to programs described in subparagraph (A) of this | ||
paragraph (2), 37.5% of these funds shall be allocated to | ||
programs described in subparagraph (B) of this paragraph | ||
(2), 15% of these funds shall be allocated to programs | ||
described in subparagraph (C) of this paragraph (2), and | ||
25% of these funds, but in no event more than $50,000,000, | ||
shall be allocated to programs described in subparagraph | ||
(D) of this paragraph (2). The allocation of funds among | ||
subparagraphs (A), (B), or (C) of this paragraph (2) may be | ||
changed if the Agency or administrator, through delegated |
authority, determines incentives in subparagraphs (A), | ||
(B), or (C) of this paragraph (2) have not been adequately | ||
subscribed to fully utilize the Illinois Power Agency | ||
Renewable Energy Resources Fund. The determination shall | ||
include input through a stakeholder process. The program | ||
offerings described in subparagraphs (A) through (D) of | ||
this paragraph (2) shall also be implemented through | ||
contracts funded from such additional amounts as are | ||
allocated to one or more of the programs in the long-term | ||
renewable resources procurement plans as specified in | ||
subsection (c) of Section 1-75 of this Act and subparagraph | ||
(O) of paragraph (1) of such subsection (c). | ||
Contracts that will be paid with funds in the Illinois | ||
Power Agency Renewable Energy Resources Fund shall be | ||
executed by the Agency. Contracts that will be paid with | ||
funds collected by an electric utility shall be executed by | ||
the electric utility. | ||
Contracts under the Illinois Solar for All Program | ||
shall include an approach, as set forth in the long-term | ||
renewable resources procurement plans, to ensure the | ||
wholesale market value of the energy is credited to | ||
participating low-income customers or organizations and to | ||
ensure tangible economic benefits flow directly to program | ||
participants, except in the case of low-income | ||
multi-family housing where the low-income customer does | ||
not directly pay for energy. Priority shall be given to |
projects that demonstrate meaningful involvement of | ||
low-income community members in designing the initial | ||
proposals. Acceptable proposals to implement projects must | ||
demonstrate the applicant's ability to conduct initial | ||
community outreach, education, and recruitment of | ||
low-income participants in the community. Projects must | ||
include job training opportunities if available, and shall | ||
endeavor to coordinate with the job training programs | ||
described in paragraph (1) of subsection (a) of Section | ||
16-108.12 of the Public Utilities Act. | ||
(A) Low-income distributed generation incentive. | ||
This program will provide incentives to low-income | ||
customers, either directly or through solar providers, | ||
to increase the participation of low-income households | ||
in photovoltaic on-site distributed generation. | ||
Companies participating in this program that install | ||
solar panels shall commit to hiring job trainees for a | ||
portion of their low-income installations, and an | ||
administrator shall facilitate partnering the | ||
companies that install solar panels with entities that | ||
provide solar panel installation job training. It is a | ||
goal of this program that a minimum of 25% of the | ||
incentives for this program be allocated to projects | ||
located within environmental justice communities. | ||
Contracts entered into under this paragraph may be | ||
entered into with an entity that will develop and |
administer the program and shall also include | ||
contracts for renewable energy credits from the | ||
photovoltaic distributed generation that is the | ||
subject of the program, as set forth in the long-term | ||
renewable resources procurement plan. | ||
(B) Low-Income Community Solar Project Initiative. | ||
Incentives shall be offered to low-income customers, | ||
either directly or through developers, to increase the | ||
participation of low-income subscribers of community | ||
solar projects. The developer of each project shall | ||
identify its partnership with community stakeholders | ||
regarding the location, development, and participation | ||
in the project, provided that nothing shall preclude a | ||
project from including an anchor tenant that does not | ||
qualify as low-income. Incentives should also be | ||
offered to community solar projects that are 100% | ||
low-income subscriber owned, which includes low-income | ||
households, not-for-profit organizations, and | ||
affordable housing owners. It is a goal of this program | ||
that a minimum of 25% of the incentives for this | ||
program be allocated to community photovoltaic | ||
projects in environmental justice communities. | ||
Contracts entered into under this paragraph may be | ||
entered into with developers and shall also include | ||
contracts for renewable energy credits related to the | ||
program. |
(C) Incentives for non-profits and public | ||
facilities. Under this program funds shall be used to | ||
support on-site photovoltaic distributed renewable | ||
energy generation devices to serve the load associated | ||
with not-for-profit customers and to support | ||
photovoltaic distributed renewable energy generation | ||
that uses photovoltaic technology to serve the load | ||
associated with public sector customers taking service | ||
at public buildings. It is a goal of this program that | ||
at least 25% of the incentives for this program be | ||
allocated to projects located in environmental justice | ||
communities. Contracts entered into under this | ||
paragraph may be entered into with an entity that will | ||
develop and administer the program or with developers | ||
and shall also include contracts for renewable energy | ||
credits related to the program. | ||
(D) Low-Income Community Solar Pilot Projects. | ||
Under this program, persons, including, but not | ||
limited to, electric utilities, shall propose pilot | ||
community solar projects. Community solar projects | ||
proposed under this subparagraph (D) may exceed 2,000 | ||
kilowatts in nameplate capacity, but the amount paid | ||
per project under this program may not exceed | ||
$20,000,000. Pilot projects must result in economic | ||
benefits for the members of the community in which the | ||
project will be located. The proposed pilot project |
must include a partnership with at least one | ||
community-based organization. Approved pilot projects | ||
shall be competitively bid by the Agency, subject to | ||
fair and equitable guidelines developed by the Agency. | ||
Funding available under this subparagraph (D) may not | ||
be distributed solely to a utility, and at least some | ||
funds under this subparagraph (D) must include a | ||
project partnership that includes community ownership | ||
by the project subscribers. Contracts entered into | ||
under this paragraph may be entered into with an entity | ||
that will develop and administer the program or with | ||
developers and shall also include contracts for | ||
renewable energy credits related to the program. A | ||
project proposed by a utility that is implemented under | ||
this subparagraph (D) shall not be included in the | ||
utility's ratebase. | ||
The requirement that a qualified person, as defined in | ||
paragraph (1) of subsection (i) of this Section, install | ||
photovoltaic devices does not apply to the Illinois Solar | ||
for All Program described in this subsection (b). | ||
(3) Costs associated with the Illinois Solar for All | ||
Program and its components described in paragraph (2) of | ||
this subsection (b), including, but not limited to, costs | ||
associated with procuring experts, consultants, and the | ||
program administrator referenced in this subsection (b) | ||
and related incremental costs, and costs related to the |
evaluation of the Illinois Solar for All Program, may be | ||
paid for using monies in the Illinois Power Agency | ||
Renewable Energy Resources Fund, but the Agency or program | ||
administrator shall strive to minimize costs in the | ||
implementation of the program. The Agency shall purchase | ||
renewable energy credits from generation that is the | ||
subject of a contract under subparagraphs (A) through (D) | ||
of this paragraph (2) of this subsection (b), and may pay | ||
for such renewable energy credits through an upfront | ||
payment per installed kilowatt of nameplate capacity paid | ||
once the device is interconnected at the distribution | ||
system level of the utility and is energized. The payment | ||
shall be in exchange for an assignment of all renewable | ||
energy credits generated by the system during the first 15 | ||
years of operation and shall be structured to overcome | ||
barriers to participation in the solar market by the | ||
low-income community. The incentives provided for in this | ||
Section may be implemented through the pricing of renewable | ||
energy credits where the prices paid for the credits are | ||
higher than the prices from programs offered under | ||
subsection (c) of Section 1-75 of this Act to account for | ||
the incentives. The Agency shall ensure collaboration with | ||
community agencies, and allocate up to 5% of the funds | ||
available under the Illinois Solar for All Program to | ||
community-based groups to assist in grassroots education | ||
efforts related to the Illinois Solar for All Program. The |
Agency shall retire any renewable energy credits purchased | ||
from this program and the credits shall count towards the | ||
obligation under subsection (c) of Section 1-75 of this Act | ||
for the electric utility to which the project is | ||
interconnected. | ||
(4) The Agency shall, consistent with the requirements | ||
of this subsection (b), propose the Illinois Solar for All | ||
Program terms, conditions, and requirements, including the | ||
prices to be paid for renewable energy credits, and which | ||
prices may be determined through a formula, through the | ||
development, review, and approval of the Agency's | ||
long-term renewable resources procurement plan described | ||
in subsection (c) of Section 1-75 of this Act and Section | ||
16-111.5 of the Public Utilities Act. In the course of the | ||
Commission proceeding initiated to review and approve the | ||
plan, including the Illinois Solar for All Program proposed | ||
by the Agency, a party may propose an additional low-income | ||
solar or solar incentive program, or modifications to the | ||
programs proposed by the Agency, and the Commission may | ||
approve an additional program, or modifications to the | ||
Agency's proposed program, if the additional or modified | ||
program more effectively maximizes the benefits to | ||
low-income customers after taking into account all | ||
relevant factors, including, but not limited to, the extent | ||
to which a competitive market for low-income solar has | ||
developed. Following the Commission's approval of the |
Illinois Solar for All Program, the Agency or a party may | ||
propose adjustments to the program terms, conditions, and | ||
requirements, including the price offered to new systems, | ||
to ensure the long-term viability and success of the | ||
program. The Commission shall review and approve any | ||
modifications to the program through the plan revision | ||
process described in Section 16-111.5 of the Public | ||
Utilities Act. | ||
(5) The Agency shall issue a request for qualifications | ||
for a third-party program administrator or administrators | ||
to administer all or a portion of the Illinois Solar for | ||
All Program. The third-party program administrator shall | ||
be chosen through a competitive bid process based on | ||
selection criteria and requirements developed by the | ||
Agency, including, but not limited to, experience in | ||
administering low-income energy programs and overseeing | ||
statewide clean energy or energy efficiency services. If | ||
the Agency retains a program administrator or | ||
administrators to implement all or a portion of the | ||
Illinois Solar for All Program, each administrator shall | ||
periodically submit reports to the Agency and Commission | ||
for each program that it administers, at appropriate | ||
intervals to be identified by the Agency in its long-term | ||
renewable resources procurement plan, provided that the | ||
reporting interval is at least quarterly. | ||
(6) The long-term renewable resources procurement plan |
shall also provide for an independent evaluation of the | ||
Illinois Solar for All Program. At least every 2 years, the | ||
Agency shall select an independent evaluator to review and | ||
report on the Illinois Solar for All Program and the | ||
performance of the third-party program administrator of | ||
the Illinois Solar for All Program. The evaluation shall be | ||
based on objective criteria developed through a public | ||
stakeholder process. The process shall include feedback | ||
and participation from Illinois Solar for All Program | ||
stakeholders, including participants and organizations in | ||
environmental justice and historically underserved | ||
communities. The report shall include a summary of the | ||
evaluation of the Illinois Solar for All Program based on | ||
the stakeholder developed objective criteria. The report | ||
shall include the number of projects installed; the total | ||
installed capacity in kilowatts; the average cost per | ||
kilowatt of installed capacity to the extent reasonably | ||
obtainable by the Agency; the number of jobs or job | ||
opportunities created; economic, social, and environmental | ||
benefits created; and the total administrative costs | ||
expended by the Agency and program administrator to | ||
implement and evaluate the program. The report shall be | ||
delivered to the Commission and posted on the Agency's | ||
website, and shall be used, as needed, to revise the | ||
Illinois Solar for All Program. The Commission shall also | ||
consider the results of the evaluation as part of its |
review of the long-term renewable resources procurement | ||
plan under subsection (c) of Section 1-75 of this Act. | ||
(7) If additional funding for the programs described in | ||
this subsection (b) is available under subsection (k) of | ||
Section 16-108 of the Public Utilities Act, then the Agency | ||
shall submit a procurement plan to the Commission no later | ||
than September 1, 2018, that proposes how the Agency will | ||
procure programs on behalf of the applicable utility. After | ||
notice and hearing, the Commission shall approve, or | ||
approve with modification, the plan no later than November | ||
1, 2018. | ||
As used in this subsection (b), "low-income households" | ||
means persons and families whose income does not exceed 80% of | ||
area median income, adjusted for family size and revised every | ||
5 years. | ||
For the purposes of this subsection (b), the Agency shall | ||
define "environmental justice community" as part of long-term | ||
renewable resources procurement plan development, to ensure, | ||
to the extent practicable, compatibility with other agencies' | ||
definitions and may, for guidance, look to the definitions used | ||
by federal, state, or local governments. | ||
(b-5) After the receipt of all payments required by Section | ||
16-115D of the Public Utilities Act, no additional funds shall | ||
be deposited into the Illinois Power Agency Renewable Energy | ||
Resources Fund unless directed by order of the Commission. | ||
(b-10) After the receipt of all payments required by |
Section 16-115D of the Public Utilities Act and payment in full | ||
of all contracts executed by the Agency under subsections (b) | ||
and (i) of this Section, if the balance of the Illinois Power | ||
Agency Renewable Energy Resources Fund is under $5,000, then | ||
the Fund shall be inoperative and any remaining funds and any | ||
funds submitted to the Fund after that date, shall be | ||
transferred to the Supplemental Low-Income Energy Assistance | ||
Fund for use in the Low-Income Home Energy Assistance Program, | ||
as authorized by the Energy Assistance Act. 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) (Blank). 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) (Blank). 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 selection of one or more third-party program | ||
managers or administrators, the selection of the independent | ||
evaluator, and the procurement processes described in this | ||
Section are exempt from the requirements of the Illinois | ||
Procurement Code, under Section 20-10 of that Code. 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.
| ||
(h-5) The Agency may assess fees to each bidder to recover | ||
the costs incurred in connection with a procurement process | ||
held under this Section. Fees collected from bidders shall be | ||
deposited into the Renewable Energy Resources Fund. | ||
(i) Supplemental procurement process. | ||
(1) Within 90 days after the effective date of this | ||
amendatory Act of the 98th General Assembly, the Agency | ||
shall develop a one-time supplemental procurement plan | ||
limited to the procurement of renewable energy credits, if | ||
available, from new or existing photovoltaics, including, | ||
but not limited to, distributed photovoltaic generation. | ||
Nothing in this subsection (i) requires procurement of wind | ||
generation through the supplemental procurement. |
Renewable energy credits procured from new | ||
photovoltaics, including, but not limited to, distributed | ||
photovoltaic generation, under this subsection (i) must be | ||
procured from devices installed by a qualified person. In | ||
its supplemental procurement plan, the Agency shall | ||
establish contractually enforceable mechanisms for | ||
ensuring that the installation of new photovoltaics is | ||
performed by a qualified person. | ||
For the purposes of this paragraph (1), "qualified | ||
person" means a person who performs installations of | ||
photovoltaics, including, but not limited to, distributed | ||
photovoltaic generation, and who: (A) has completed an | ||
apprenticeship as a journeyman electrician from a United | ||
States Department of Labor registered electrical | ||
apprenticeship and training program and received a | ||
certification of satisfactory completion; or (B) does not | ||
currently meet the criteria under clause (A) of this | ||
paragraph (1), but is enrolled in a United States | ||
Department of Labor registered electrical apprenticeship | ||
program, provided that the person is directly supervised by | ||
a person who meets the criteria under clause (A) of this | ||
paragraph (1); or (C) has obtained one of the following | ||
credentials in addition to attesting to satisfactory | ||
completion of at least 5 years or 8,000 hours of documented | ||
hands-on electrical experience: (i) a North American Board | ||
of Certified Energy Practitioners (NABCEP) Installer |
Certificate for Solar PV; (ii) an Underwriters | ||
Laboratories (UL) PV Systems Installer Certificate; (iii) | ||
an Electronics Technicians Association, International | ||
(ETAI) Level 3 PV Installer Certificate; or (iv) an | ||
Associate in Applied Science degree from an Illinois | ||
Community College Board approved community college program | ||
in renewable energy or a distributed generation | ||
technology. | ||
For the purposes of this paragraph (1), "directly | ||
supervised" means that there is a qualified person who | ||
meets the qualifications under clause (A) of this paragraph | ||
(1) and who is available for supervision and consultation | ||
regarding the work performed by persons under clause (B) of | ||
this paragraph (1), including a final inspection of the | ||
installation work that has been directly supervised to | ||
ensure safety and conformity with applicable codes. | ||
For the purposes of this paragraph (1), "install" means | ||
the major activities and actions required to connect, in | ||
accordance with applicable building and electrical codes, | ||
the conductors, connectors, and all associated fittings, | ||
devices, power outlets, or apparatuses mounted at the | ||
premises that are directly involved in delivering energy to | ||
the premises' electrical wiring from the photovoltaics, | ||
including, but not limited to, to distributed photovoltaic | ||
generation. | ||
The renewable energy credits procured pursuant to the |
supplemental procurement plan shall be procured using up to | ||
$30,000,000 from the Illinois Power Agency Renewable | ||
Energy Resources Fund. The Agency shall not plan to use | ||
funds from the Illinois Power Agency Renewable Energy | ||
Resources Fund in excess of the monies on deposit in such | ||
fund or projected to be deposited into such fund. The | ||
supplemental procurement plan shall ensure adequate, | ||
reliable, affordable, efficient, and environmentally | ||
sustainable renewable energy resources (including credits) | ||
at the lowest total cost over time, taking into account any | ||
benefits of price stability. | ||
To the extent available, 50% of the renewable energy | ||
credits procured from distributed renewable energy | ||
generation shall come from devices of less than 25 | ||
kilowatts in nameplate capacity. Procurement of renewable | ||
energy credits from distributed renewable energy | ||
generation devices shall be done through multi-year | ||
contracts of no less than 5 years. The Agency shall create | ||
credit requirements for counterparties. In order to | ||
minimize the administrative burden on contracting | ||
entities, the Agency shall solicit the use of third parties | ||
to aggregate distributed renewable energy. These third | ||
parties shall enter into and 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. | ||
In developing the supplemental procurement plan, the | ||
Agency shall hold at least one workshop open to the public | ||
within 90 days after the effective date of this amendatory | ||
Act of the 98th General Assembly and shall consider any | ||
comments made by stakeholders or the public. Upon | ||
development of the supplemental procurement plan within | ||
this 90-day period, copies of the supplemental procurement | ||
plan shall be posted and made publicly available on the | ||
Agency's and Commission's websites. All interested parties | ||
shall have 14 days following the date of posting to provide | ||
comment to the Agency on the supplemental 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 supplemental | ||
procurement plan, accompanied by specific alternative | ||
wording or proposals. All comments shall be posted on the | ||
Agency's and Commission's websites. Within 14 days | ||
following the end of the 14-day review period, the Agency | ||
shall revise the supplemental procurement plan as | ||
necessary based on the comments received and file its | ||
revised supplemental procurement plan with the Commission | ||
for approval. | ||
(2) Within 5 days after the filing of the supplemental | ||
procurement plan at the Commission, any person objecting to |
the supplemental 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 supplemental procurement plan within 90 days | ||
after the filing of the supplemental procurement plan by | ||
the Agency. | ||
(3) The Commission shall approve the supplemental | ||
procurement plan of renewable energy credits to be procured | ||
from new or existing photovoltaics, including, but not | ||
limited to, distributed photovoltaic generation, if the | ||
Commission determines that it will ensure adequate, | ||
reliable, affordable, efficient, and environmentally | ||
sustainable electric service in the form of renewable | ||
energy credits at the lowest total cost over time, taking | ||
into account any benefits of price stability. | ||
(4) The supplemental procurement process under this | ||
subsection (i) shall include each of the following | ||
components: | ||
(A) Procurement administrator. The Agency may | ||
retain a procurement administrator in the manner set | ||
forth in item (2) of subsection (a) of Section 1-75 of | ||
this Act to conduct the supplemental procurement or may | ||
elect to use the same procurement administrator | ||
administering the Agency's annual procurement under | ||
Section 1-75. |
(B) Procurement monitor. The procurement monitor | ||
retained by the Commission pursuant to Section | ||
16-111.5 of the Public Utilities Act shall: | ||
(i) monitor interactions among the procurement | ||
administrator and bidders and suppliers; | ||
(ii) monitor and report to the Commission on | ||
the progress of the supplemental procurement | ||
process; | ||
(iii) provide an independent confidential | ||
report to the Commission regarding the results of | ||
the procurement events; | ||
(iv) assess compliance with the procurement | ||
plan approved by the Commission for the | ||
supplemental procurement process; | ||
(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; | ||
(vii) consult with the procurement | ||
administrator regarding the development and use of | ||
benchmark criteria, standard form contracts, |
credit policies, and bid documents; and | ||
(viii) perform, with respect to the | ||
supplemental procurement process, any other | ||
procurement monitor duties specifically delineated | ||
within subsection (i) of this Section. | ||
(C) 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 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 item (D) of this paragraph (4). The | ||
procurement administrator shall then identify and | ||
register bidders to participate in the procurement | ||
event. | ||
(D) Standard contract forms and credit terms and |
instruments. The procurement administrator, in | ||
consultation with the Agency, 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 as well as include any | ||
applicable State of Illinois terms and conditions that | ||
are required for contracts entered into by an agency of | ||
the State of Illinois. Standard credit terms and | ||
instruments that meet generally accepted industry | ||
practices shall be similarly developed. Contracts for | ||
new photovoltaics shall include a provision attesting | ||
that the supplier will use a qualified person for the | ||
installation of the device pursuant to paragraph (1) of | ||
subsection (i) of this Section. 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 parties | ||
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. | ||
(E) Requests for proposals; competitive | ||
procurement process. The procurement administrator | ||
shall design and issue requests for proposals to supply | ||
renewable energy credits in accordance with the | ||
supplemental procurement plan, as approved by the | ||
Commission. The requests 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, provided, | ||
however, that no bid shall be accepted if it exceeds | ||
the benchmark developed pursuant to item (F) of this | ||
paragraph (4). | ||
(F) Benchmarks. Benchmarks for each product to be | ||
procured shall be developed by the procurement | ||
administrator in consultation with Commission staff, | ||
the Agency, and the procurement monitor for use in this | ||
supplemental procurement. | ||
(G) A plan for implementing contingencies in the | ||
event of supplier default, Commission rejection of | ||
results, or any other cause. | ||
(5) 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. | ||
(6) Within 3 business days after the Commission | ||
decision approving the results of a procurement event, the | ||
Agency shall enter into binding contractual arrangements | ||
with the winning suppliers using the standard form | ||
contracts. | ||
(7) The names of the successful bidders and the average | ||
of the winning bid prices for each contract type and for | ||
each contract term shall be made available to the public | ||
within 2 days after the supplemental procurement event. The | ||
Commission, the procurement monitor, the procurement | ||
administrator, the 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 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. | ||
(8) The supplemental procurement provided in this | ||
subsection (i) shall not be subject to the requirements and | ||
limitations of subsections (c) and (d) of this Section. | ||
(9) Expenses incurred in connection with the | ||
procurement process held pursuant to this Section, | ||
including, but not limited to, the cost of developing the | ||
supplemental procurement plan, the procurement | ||
administrator, procurement monitor, and the cost of the | ||
retirement of renewable energy credits purchased pursuant | ||
to the supplemental procurement shall be paid for from the | ||
Illinois Power Agency Renewable Energy Resources Fund. The | ||
Agency shall enter into an interagency agreement with the | ||
Commission to reimburse the Commission for its costs | ||
associated with the procurement monitor for the | ||
supplemental procurement process. | ||
(Source: P.A. 97-616, eff. 10-26-11; 98-672, eff. 6-30-14.) |
(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. Beginning with the delivery year | ||
commencing on June 1, 2017, the Planning and Procurement Bureau | ||
shall develop plans and processes for the procurement of zero | ||
emission credits from zero emission facilities in accordance | ||
with the requirements of subsection (d-5) of this Section. The | ||
Planning and Procurement Bureau shall also 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 small | ||
multi-jurisdictional electric utilities that (i) on December | ||
31, 2005 served less than 100,000 customers in Illinois and | ||
(ii) request a procurement plan for their Illinois | ||
jurisdictional load. This Section shall not apply to a small | ||
multi-jurisdictional utility until such time as a small | ||
multi-jurisdictional utility requests the Agency to prepare a |
procurement plan for their Illinois jurisdictional load. 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. | ||
Beginning with the plan or plans to be implemented in the | ||
2017 delivery year, the Agency shall no longer include the | ||
procurement of renewable energy resources in the annual | ||
procurement plans required by this subsection (a), except as | ||
provided in subsection (q) of Section 16-111.5 of the Public | ||
Utilities Act, and shall instead develop a long-term renewable | ||
resources procurement plan in accordance with subsection (c) of | ||
this Section and Section 16-111.5 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 contracts of up to 5 | ||
years to those selected. | ||
(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 5-year contract to the | ||
expert or expert consulting firm so selected with |
Commission approval. | ||
(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, and for eligible Illinois | ||
retail customers of small multi-jurisdictional electric | ||
utilities that (i) on December 31, 2005 served less than | ||
100,000 customers in Illinois and (ii) request a procurement | ||
plan for their Illinois jurisdictional load. | ||
(c) Renewable portfolio standard. | ||
(1) (A) The Agency shall develop a long-term renewable | ||
resources procurement plan that shall include procurement | ||
programs and competitive procurement events necessary to | ||
meet the goals set forth in this subsection (c). The | ||
initial long-term renewable resources procurement plan | ||
shall be released for comment no later than 160 days after | ||
the effective date of this amendatory Act of the 99th | ||
General Assembly. The Agency shall review, and may revise | ||
on an expedited basis, the long-term renewable resources | ||
procurement plan at least every 2 years, which shall be |
conducted in conjunction with the procurement plan under | ||
Section 16-111.5 of the Public Utilities Act to the extent | ||
practicable to minimize administrative expense. The | ||
long-term renewable resources procurement plans shall be | ||
subject to review and approval by the Commission under | ||
Section 16-111.5 of the Public Utilities Act. | ||
(B) Subject to subparagraph (F) of this paragraph (1), | ||
the long-term renewable resources procurement plan shall | ||
include the goals for procurement of renewable energy | ||
credits to meet at least the following overall percentages: | ||
13% by the 2017 delivery year; increasing by at least 1.5% | ||
each delivery year thereafter to at least 25% by the 2025 | ||
delivery year; and continuing at no less than 25% for each | ||
delivery year thereafter. In the event of a conflict | ||
between these goals and the new wind and new photovoltaic | ||
procurement requirements described in items (i) through | ||
(iii) of subparagraph (C) of this paragraph (1), the | ||
long-term plan shall prioritize compliance with the new | ||
wind and new photovoltaic procurement requirements | ||
described in items (i) through (iii) of subparagraph (C) of | ||
this paragraph (1) over the annual percentage targets | ||
described in this subparagraph (B). | ||
For the delivery year beginning June 1, 2017, the | ||
procurement plan shall include cost-effective renewable energy | ||
resources equal to at least 13% of each utility's load for | ||
eligible retail customers and 13% of the applicable portion of |
each utility's load for retail customers who are not eligible | ||
retail customers, which applicable portion shall equal 50% of | ||
the utility's load for retail customers who are not eligible | ||
retail customers on February 28, 2017. | ||
For the delivery year beginning June 1, 2018, the | ||
procurement plan shall include cost-effective renewable energy | ||
resources equal to at least 14.5% of each utility's load for | ||
eligible retail customers and 14.5% of the applicable portion | ||
of each utility's load for retail customers who are not | ||
eligible retail customers, which applicable portion shall | ||
equal 75% of the utility's load for retail customers who are | ||
not eligible retail customers on February 28, 2017. | ||
For the delivery year beginning June 1, 2019, and for each | ||
year thereafter, the procurement plans shall include | ||
cost-effective renewable energy resources equal to a minimum | ||
percentage of each utility's load for all retail customers as | ||
follows: 16% by June 1, 2019; increasing by 1.5% each year | ||
thereafter to 25% by June 1, 2025; and 25% by June 1, 2026 and | ||
each year thereafter. | ||
For each delivery year, the Agency shall first | ||
recognize each utility's obligations for that delivery | ||
year under existing contracts. Any renewable energy | ||
credits under existing contracts, including renewable | ||
energy credits as part of renewable energy resources, shall | ||
be used to meet the goals set forth in this subsection (c) | ||
for the delivery year. |
(C) Of the renewable energy credits procured under this | ||
subsection (c), at least 75% shall come from wind and | ||
photovoltaic projects. The long-term renewable resources | ||
procurement plan described in subparagraph (A) of this | ||
paragraph (1) shall include the procurement of renewable | ||
energy credits in amounts equal to at least the following: | ||
(i) By the end of the 2020 delivery year: | ||
At least 2,000,000 renewable energy credits | ||
for each delivery year shall come from new wind | ||
projects; and | ||
At least 2,000,000 renewable energy credits | ||
for each delivery year shall come from new | ||
photovoltaic projects; of that amount, to the | ||
extent possible, the Agency shall procure: at | ||
least 50% from solar photovoltaic projects using | ||
the program outlined in subparagraph (K) of this | ||
paragraph (1) from distributed renewable energy | ||
generation devices or community renewable | ||
generation projects; at least 40% from | ||
utility-scale solar projects; at least 2% from | ||
brownfield site photovoltaic projects that are not | ||
community renewable generation projects; and the | ||
remainder shall be determined through the | ||
long-term planning process described in | ||
subparagraph (A) of this paragraph (1). | ||
(ii) By the end of the 2025 delivery year: |
At least 3,000,000 renewable energy credits | ||
for each delivery year shall come from new wind | ||
projects; and | ||
At least 3,000,000 renewable energy credits | ||
for each delivery year shall come from new | ||
photovoltaic projects; of that amount, to the | ||
extent possible, the Agency shall procure: at | ||
least 50% from solar photovoltaic projects using | ||
the program outlined in subparagraph (K) of this | ||
paragraph (1) from distributed renewable energy | ||
devices or community renewable generation | ||
projects; at least 40% from utility-scale solar | ||
projects; at least 2% from brownfield site | ||
photovoltaic projects that are not community | ||
renewable generation projects; and the remainder | ||
shall be determined through the long-term planning | ||
process described in subparagraph (A) of this | ||
paragraph (1). | ||
(iii) By the end of the 2030 delivery year: | ||
At least 4,000,000 renewable energy credits | ||
for each delivery year shall come from new wind | ||
projects; and | ||
At least 4,000,000 renewable energy credits | ||
for each delivery year shall come from new | ||
photovoltaic projects; of that amount, to the | ||
extent possible, the Agency shall procure: at |
least 50% from solar photovoltaic projects using | ||
the program outlined in subparagraph (K) of this | ||
paragraph (1) from distributed renewable energy | ||
devices or community renewable generation | ||
projects; at least 40% from utility-scale solar | ||
projects; at least 2% from brownfield site | ||
photovoltaic projects that are not community | ||
renewable generation projects; and the remainder | ||
shall be determined through the long-term planning | ||
process described in subparagraph (A) of this | ||
paragraph (1). | ||
For purposes of this Section: | ||
"New wind projects" means wind renewable | ||
energy facilities that are energized after June 1, | ||
2017 for the delivery year commencing June 1, 2017 | ||
or within 3 years after the date the Commission | ||
approves contracts for subsequent delivery years. | ||
"New photovoltaic projects" means photovoltaic | ||
renewable energy facilities that are energized | ||
after June 1, 2017. Photovoltaic projects | ||
developed under Section 1-56 of this Act shall not | ||
apply towards the new photovoltaic project | ||
requirements in this subparagraph (C). | ||
(D) Renewable energy credits shall be cost effective. | ||
For purposes of this subsection (c), "cost effective" means | ||
that the costs of procuring renewable energy resources do |
not cause the limit stated in subparagraph (E) of this | ||
paragraph (1) to be exceeded and, for renewable energy | ||
credits procured through a competitive procurement event, | ||
do not exceed benchmarks based on market prices for like | ||
products in the region. For purposes of this subsection | ||
(c), "like products" means contracts for renewable energy | ||
credits from the same or substantially similar technology, | ||
same or substantially similar vintage (new or existing), | ||
the same or substantially similar quantity, and the same or | ||
substantially similar contract length and structure. | ||
Benchmarks 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. If price | ||
benchmarks for like products in the region are not | ||
available, the procurement administrator shall establish | ||
price benchmarks based on publicly available data on | ||
regional technology costs and expected current and future | ||
regional energy prices. The benchmarks in this Section | ||
shall not be used to curtail or otherwise reduce | ||
contractual obligations entered into by or through the | ||
Agency prior to the effective date of this amendatory Act | ||
of the 99th General Assembly. | ||
(E) For purposes of this subsection (c), the required | ||
procurement of cost-effective renewable energy resources | ||
for a particular year commencing prior to June 1, 2017 |
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 delivery year | ||
ending immediately prior to the procurement, and, for | ||
delivery years commencing on and after June 1, 2017, 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) delivered by the electric utility in the | ||
delivery year ending immediately prior to the procurement, | ||
to all retail customers in its service territory. 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 under | ||
the procurement plan for any single year shall be subject | ||
to the limitations of this subparagraph (E). Such | ||
procurement shall be reduced for all retail customers based | ||
on the 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 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. To arrive at a maximum dollar amount of | ||
renewable energy resources to be procured for the | ||
particular delivery year, the resulting per kilowatthour | ||
amount shall be applied to the actual amount of | ||
kilowatthours of electricity delivered, or applicable | ||
portion of such amount as specified in paragraph (1) of | ||
this subsection (c), as applicable, by the electric utility | ||
in the delivery year immediately prior to the procurement | ||
to all retail customers in its service territory. The | ||
calculations required by this subparagraph (E) shall be | ||
made only once for each delivery year at the time that the | ||
renewable energy resources are procured. Once the | ||
determination as to the amount of renewable energy | ||
resources to procure is made based on the calculations set | ||
forth in this subparagraph (E) and the contracts procuring | ||
those amounts are executed, no subsequent rate impact | ||
determinations shall be made and no adjustments to those | ||
contract amounts shall be allowed. All costs incurred under | ||
such contracts shall be fully recoverable by the electric | ||
utility as provided in this Section. | ||
(F) If the limitation on the amount of renewable energy | ||
resources procured in subparagraph (E) of this paragraph |
(1) prevents the Agency from meeting all of the goals in | ||
this subsection (c), the Agency's long-term plan shall | ||
prioritize compliance with the requirements of this | ||
subsection (c) regarding renewable energy credits in the | ||
following order: | ||
(i) renewable energy credits under existing | ||
contractual obligations; | ||
(i-5)funding for the Illinois Solar for All | ||
Program, as described in subparagraph (O) of this | ||
paragraph (1); | ||
(ii) renewable energy credits necessary to comply | ||
with the new wind and new photovoltaic procurement | ||
requirements described in items (i) through (iii) of | ||
subparagraph (C) of this paragraph (1); and | ||
(iii) renewable energy credits necessary to meet | ||
the remaining requirements of this subsection (c). | ||
(G) The following provisions shall apply to the | ||
Agency's procurement of renewable energy credits under | ||
this subsection (c): | ||
(i) Notwithstanding whether a long-term renewable | ||
resources procurement plan has been approved, the | ||
Agency shall conduct an initial forward procurement | ||
for renewable energy credits from new utility-scale | ||
wind projects within 160 days after the effective date | ||
of this amendatory Act of the 99th General Assembly. | ||
For the purposes of this initial forward procurement, |
the Agency shall solicit 15-year contracts for | ||
delivery of 1,000,000 renewable energy credits | ||
delivered annually from new utility-scale wind | ||
projects to begin delivery on June 1, 2019, if | ||
available, but not later than June 1, 2021. Payments to | ||
suppliers of renewable energy credits shall commence | ||
upon delivery. Renewable energy credits procured under | ||
this initial procurement shall be included in the | ||
Agency's long-term plan and shall apply to all | ||
renewable energy goals in this subsection (c). | ||
(ii) Notwithstanding whether a long-term renewable | ||
resources procurement plan has been approved, the | ||
Agency shall conduct an initial forward procurement | ||
for renewable energy credits from new utility-scale | ||
solar projects and brownfield site photovoltaic | ||
projects within one year after the effective date of | ||
this amendatory Act of the 99th General Assembly. For | ||
the purposes of this initial forward procurement, the | ||
Agency shall solicit 15-year contracts for delivery of | ||
1,000,000 renewable energy credits delivered annually | ||
from new utility-scale solar projects and brownfield | ||
site photovoltaic projects to begin delivery on June 1, | ||
2019, if available, but not later than June 1, 2021. | ||
The Agency may structure this initial procurement in | ||
one or more discrete procurement events. Payments to | ||
suppliers of renewable energy credits shall commence |
upon delivery. Renewable energy credits procured under | ||
this initial procurement shall be included in the | ||
Agency's long-term plan and shall apply to all | ||
renewable energy goals in this subsection (c). | ||
(iii) Subsequent forward procurements for | ||
utility-scale wind projects shall solicit at least | ||
1,000,000 renewable energy credits delivered annually | ||
per procurement event and shall be planned, scheduled, | ||
and designed such that the cumulative amount of | ||
renewable energy credits delivered from all new wind | ||
projects in each delivery year shall not exceed the | ||
Agency's projection of the cumulative amount of | ||
renewable energy credits that will be delivered from | ||
all new photovoltaic projects, including utility-scale | ||
and distributed photovoltaic devices, in the same | ||
delivery year at the time scheduled for wind contract | ||
delivery. | ||
(iv) If, at any time after the time set for | ||
delivery of renewable energy credits pursuant to the | ||
initial procurements in items (i) and (ii) of this | ||
subparagraph (G), the cumulative amount of renewable | ||
energy credits projected to be delivered from all new | ||
wind projects in a given delivery year exceeds the | ||
cumulative amount of renewable energy credits | ||
projected to be delivered from all new photovoltaic | ||
projects in that delivery year by 200,000 or more |
renewable energy credits, then the Agency shall within | ||
60 days adjust the procurement programs in the | ||
long-term renewable resources procurement plan to | ||
ensure that the projected cumulative amount of | ||
renewable energy credits to be delivered from all new | ||
wind projects does not exceed the projected cumulative | ||
amount of renewable energy credits to be delivered from | ||
all new photovoltaic projects by 200,000 or more | ||
renewable energy credits, provided that nothing in | ||
this Section shall preclude the projected cumulative | ||
amount of renewable energy credits to be delivered from | ||
all new photovoltaic projects from exceeding the | ||
projected cumulative amount of renewable energy | ||
credits to be delivered from all new wind projects in | ||
each delivery year and provided further that nothing in | ||
this item (iv) shall require the curtailment of an | ||
executed contract. The Agency shall update, on a | ||
quarterly basis, its projection of the renewable | ||
energy credits to be delivered from all projects in | ||
each delivery year. Notwithstanding anything to the | ||
contrary, the Agency may adjust the timing of | ||
procurement events conducted under this subparagraph | ||
(G). The long-term renewable resources procurement | ||
plan shall set forth the process by which the | ||
adjustments may be made. | ||
(v) All procurements under this subparagraph (G) |
shall comply with the geographic requirements in | ||
subparagraph (I) of this paragraph (1) and shall follow | ||
the procurement processes and procedures described in | ||
this Section and Section 16-111.5 of the Public | ||
Utilities Act to the extent practicable, and these | ||
processes and procedures may be expedited to | ||
accommodate the schedule established by this | ||
subparagraph (G). | ||
(H) The procurement of renewable energy resources for a | ||
given delivery year shall be reduced as described in this | ||
subparagraph (H) if an alternate retail electric supplier | ||
meets the requirements described in this subparagraph (H). | ||
(i) Within 45 days after the effective date of this | ||
amendatory Act of the 99th General Assembly, an | ||
alternative retail electric supplier or its successor | ||
shall submit an informational filing to the Illinois | ||
Commerce Commission certifying that, as of December | ||
31, 2015, the alternative retail electric supplier | ||
owned one or more electric generating facilities that | ||
generates renewable energy resources as defined in | ||
Section 1-10 of this Act, provided that such facilities | ||
are not powered by wind or photovoltaics, and the | ||
facilities generate one renewable energy credit for | ||
each megawatthour of energy produced from the | ||
facility. | ||
The informational filing shall identify each |
facility that was eligible to satisfy the alternative | ||
retail electric supplier's obligations under Section | ||
16-115D of the Public Utilities Act as described in | ||
this item (i). | ||
(ii) For a given delivery year, the alternative | ||
retail electric supplier may elect to supply its retail | ||
customers with renewable energy credits from the | ||
facility or facilities described in item (i) of this | ||
subparagraph (H) that continue to be owned by the | ||
alternative retail electric supplier. | ||
(iii) The alternative retail electric supplier | ||
shall notify the Agency and the applicable utility, no | ||
later than February 28 of the year preceding the | ||
applicable delivery year or 15 days after the effective | ||
date of this amendatory Act of the 99th General | ||
Assembly, whichever is later, of its election under | ||
item (ii) of this subparagraph (H) to supply renewable | ||
energy credits to retail customers of the utility. Such | ||
election shall identify the amount of renewable energy | ||
credits to be supplied by the alternative retail | ||
electric supplier to the utility's retail customers | ||
and the source of the renewable energy credits | ||
identified in the informational filing as described in | ||
item (i) of this subparagraph (H), subject to the | ||
following limitations: | ||
For the delivery year beginning June 1, 2018, |
the maximum amount of renewable energy credits to | ||
be supplied by an alternative retail electric | ||
supplier under this subparagraph (H) shall be 68% | ||
multiplied by 25% multiplied by 14.5% multiplied | ||
by the amount of metered electricity | ||
(megawatt-hours) delivered by the alternative | ||
retail electric supplier to Illinois retail | ||
customers during the delivery year ending May 31, | ||
2016. | ||
For delivery years beginning June 1, 2019 and | ||
each year thereafter, the maximum amount of | ||
renewable energy credits to be supplied by an | ||
alternative retail electric supplier under this | ||
subparagraph (H) shall be 68% multiplied by 50% | ||
multiplied by 16% multiplied by the amount of | ||
metered electricity (megawatt-hours) delivered by | ||
the alternative retail electric supplier to | ||
Illinois retail customers during the delivery year | ||
ending May 31, 2016, provided that the 16% value | ||
shall increase by 1.5% each delivery year | ||
thereafter to 25% by the delivery year beginning | ||
June 1, 2025, and thereafter the 25% value shall | ||
apply to each delivery year. | ||
For each delivery year, the total amount of | ||
renewable energy credits supplied by all alternative | ||
retail electric suppliers under this subparagraph (H) |
shall not exceed 9% of the Illinois target renewable | ||
energy credit quantity. The Illinois target renewable | ||
energy credit quantity for the delivery year beginning | ||
June 1, 2018 is 14.5% multiplied by the total amount of | ||
metered electricity (megawatt-hours) delivered in the | ||
delivery year immediately preceding that delivery | ||
year, provided that the 14.5% shall increase by 1.5% | ||
each delivery year thereafter to 25% by the delivery | ||
year beginning June 1, 2025, and thereafter the 25% | ||
value shall apply to each delivery year. | ||
If the requirements set forth in items (i) through | ||
(iii) of this subparagraph (H) are met, the charges | ||
that would otherwise be applicable to the retail | ||
customers of the alternative retail electric supplier | ||
under paragraph (6) of this subsection (c) for the | ||
applicable delivery year shall be reduced by the ratio | ||
of the quantity of renewable energy credits supplied by | ||
the alternative retail electric supplier compared to | ||
that supplier's target renewable energy credit | ||
quantity. The supplier's target renewable energy | ||
credit quantity for the delivery year beginning June 1, | ||
2018 is 14.5% multiplied by the total amount of metered | ||
electricity (megawatt-hours) delivered by the | ||
alternative retail supplier in that delivery year, | ||
provided that the 14.5% shall increase by 1.5% each | ||
delivery year thereafter to 25% by the delivery year |
beginning June 1, 2025, and thereafter the 25% value | ||
shall apply to each delivery year. | ||
On or before April 1 of each year, the Agency shall | ||
annually publish a report on its website that | ||
identifies the aggregate amount of renewable energy | ||
credits supplied by alternative retail electric | ||
suppliers under this subparagraph (H). | ||
(I) The Agency shall design its long-term renewable | ||
energy procurement plan to maximize the State's interest in | ||
the health, safety, and welfare of its residents, including | ||
but not limited to minimizing sulfur dioxide, nitrogen | ||
oxide, particulate matter and other pollution that | ||
adversely affects public health in this State, increasing | ||
fuel and resource diversity in this State, enhancing the | ||
reliability and resiliency of the electricity distribution | ||
system in this State, meeting goals to limit carbon dioxide | ||
emissions under federal or State law, and contributing to a | ||
cleaner and healthier environment for the citizens of this | ||
State. In order to further these legislative purposes, | ||
renewable energy credits shall be eligible to be counted | ||
toward the renewable energy requirements of this | ||
subsection (c) if they are generated from facilities | ||
located in this State. The Agency may qualify renewable | ||
energy credits from facilities located in states adjacent | ||
to Illinois if the generator demonstrates and the Agency | ||
determines that the operation of such facility or |
facilities will help promote the State's interest in the | ||
health, safety, and welfare of its residents based on the | ||
public interest criteria described above. To ensure that | ||
the public interest criteria are applied to the procurement | ||
and given full effect, the Agency's long-term procurement | ||
plan shall describe in detail how each public interest | ||
factor shall be considered and weighted for facilities | ||
located in states adjacent to Illinois. | ||
(J) In order to promote the competitive development of | ||
renewable energy resources in furtherance of the State's | ||
interest in the health, safety, and welfare of its | ||
residents, renewable energy credits shall not be eligible | ||
to be counted toward the renewable energy requirements of | ||
this subsection (c) if they are sourced from a generating | ||
unit whose costs were being recovered through rates | ||
regulated by this State or any other state or states on or | ||
after January 1, 2017. Each contract executed to purchase | ||
renewable energy credits under this subsection (c) shall | ||
provide for the contract's termination if the costs of the | ||
generating unit supplying the renewable energy credits | ||
subsequently begin to be recovered through rates regulated | ||
by this State or any other state or states; and each | ||
contract shall further provide that, in that event, the | ||
supplier of the credits must return 110% of all payments | ||
received under the contract. Amounts returned under the | ||
requirements of this subparagraph (J) shall be retained by |
the utility and all of these amounts shall be used for the | ||
procurement of additional renewable energy credits from | ||
new wind or new photovoltaic resources as defined in this | ||
subsection (c). The long-term plan shall provide that these | ||
renewable energy credits shall be procured in the next | ||
procurement event. | ||
Notwithstanding the limitations of this subparagraph | ||
(J), renewable energy credits sourced from generating | ||
units that are constructed, purchased, owned, or leased by | ||
an electric utility as part of an approved project, | ||
program, or pilot under Section 1-56 of this Act shall be | ||
eligible to be counted toward the renewable energy | ||
requirements of this subsection (c), regardless of how the | ||
costs of these units are recovered. | ||
(K) The long-term renewable resources procurement plan | ||
developed by the Agency in accordance with subparagraph (A) | ||
of this paragraph (1) shall include an Adjustable Block | ||
program for the procurement of renewable energy credits | ||
from new photovoltaic projects that are distributed | ||
renewable energy generation devices or new photovoltaic | ||
community renewable generation projects. The Adjustable | ||
Block program shall be designed to provide a transparent | ||
schedule of prices and quantities to enable the | ||
photovoltaic market to scale up and for renewable energy | ||
credit prices to adjust at a predictable rate over time. | ||
The prices set by the Adjustable Block program can be |
reflected as a set value or as the product of a formula. | ||
The Adjustable Block program shall include for each | ||
category of eligible projects: a schedule of standard block | ||
purchase prices to be offered; a series of steps, with | ||
associated nameplate capacity and purchase prices that | ||
adjust from step to step; and automatic opening of the next | ||
step as soon as the nameplate capacity and available | ||
purchase prices for an open step are fully committed or | ||
reserved. Only projects energized on or after June 1, 2017 | ||
shall be eligible for the Adjustable Block program. For | ||
each block group the Agency shall determine the number of | ||
blocks, the amount of generation capacity in each block, | ||
and the purchase price for each block, provided that the | ||
purchase price provided and the total amount of generation | ||
in all blocks for all block groups shall be sufficient to | ||
meet the goals in this subsection (c). The Agency may | ||
periodically review its prior decisions establishing the | ||
number of blocks, the amount of generation capacity in each | ||
block, and the purchase price for each block, and may | ||
propose, on an expedited basis, changes to these previously | ||
set values, including but not limited to redistributing | ||
these amounts and the available funds as necessary and | ||
appropriate, subject to Commission approval as part of the | ||
periodic plan revision process described in Section | ||
16-111.5 of the Public Utilities Act. The Agency may define | ||
different block sizes, purchase prices, or other distinct |
terms and conditions for projects located in different | ||
utility service territories if the Agency deems it | ||
necessary to meet the goals in this subsection (c). | ||
The Adjustable Block program shall include at least the | ||
following block groups in at least the following amounts, | ||
which may be adjusted upon review by the Agency and | ||
approval by the Commission as described in this | ||
subparagraph (K): | ||
(i) At least 25% from distributed renewable energy | ||
generation devices with a nameplate capacity of no more | ||
than 10 kilowatts. | ||
(ii) At least 25% from distributed renewable | ||
energy generation devices with a nameplate capacity of | ||
more than 10 kilowatts and no more than 2,000 | ||
kilowatts. The Agency may create sub-categories within | ||
this category to account for the differences between | ||
projects for small commercial customers, large | ||
commercial customers, and public or non-profit | ||
customers. | ||
(iii) At least 25% from photovoltaic community | ||
renewable generation projects. | ||
(iv) The remaining 25% shall be allocated as | ||
specified by the Agency in the long-term renewable | ||
resources procurement plan. | ||
The Adjustable Block program shall be designed to | ||
ensure that renewable energy credits are procured from |
photovoltaic distributed renewable energy generation | ||
devices and new photovoltaic community renewable energy | ||
generation projects in diverse locations and are not | ||
concentrated in a few geographic areas. | ||
(L) The procurement of photovoltaic renewable energy | ||
credits under items (i) through (iv) of subparagraph (K) of | ||
this paragraph (1) shall be subject to the following | ||
contract and payment terms: | ||
(i) The Agency shall procure contracts of at least | ||
15 years in length. | ||
(ii) For those renewable energy credits that | ||
qualify and are procured under item (i) of subparagraph | ||
(K) of this paragraph (1), the renewable energy credit | ||
purchase price shall be paid in full by the contracting | ||
utilities at the time that the facility producing the | ||
renewable energy credits is interconnected at the | ||
distribution system level of the utility and | ||
energized. The electric utility shall receive and | ||
retire all renewable energy credits generated by the | ||
project for the first 15 years of operation. | ||
(iii) For those renewable energy credits that | ||
qualify and are procured under item (ii) and (iii) of | ||
subparagraph (K) of this paragraph (1) and any | ||
additional categories of distributed generation | ||
included in the long-term renewable resources | ||
procurement plan and approved by the Commission, 20 |
percent of the renewable energy credit purchase price | ||
shall be paid by the contracting utilities at the time | ||
that the facility producing the renewable energy | ||
credits is interconnected at the distribution system | ||
level of the utility and energized. The remaining | ||
portion shall be paid ratably over the subsequent | ||
4-year period. The electric utility shall receive and | ||
retire all renewable energy credits generated by the | ||
project for the first 15 years of operation. | ||
(iv) Each contract shall include provisions to | ||
ensure the delivery of the renewable energy credits for | ||
the full term of the contract. | ||
(v) The utility shall be the counterparty to the | ||
contracts executed under this subparagraph (L) that | ||
are approved by the Commission under the process | ||
described in Section 16-111.5 of the Public Utilities | ||
Act. No contract shall be executed for an amount that | ||
is less than one renewable energy credit per year. | ||
(vi) If, at any time, approved applications for the | ||
Adjustable Block program exceed funds collected by the | ||
electric utility or would cause the Agency to exceed | ||
the limitation described in subparagraph (E) of this | ||
paragraph (1) on the amount of renewable energy | ||
resources that may be procured, then the Agency shall | ||
consider future uncommitted funds to be reserved for | ||
these contracts on a first-come, first-served basis, |
with the delivery of renewable energy credits required | ||
beginning at the time that the reserved funds become | ||
available. | ||
(vii) Nothing in this Section shall require the | ||
utility to advance any payment or pay any amounts that | ||
exceed the actual amount of revenues collected by the | ||
utility under paragraph (6) of this subsection (c) and | ||
subsection (k) of Section 16-108 of the Public | ||
Utilities Act, and contracts executed under this | ||
Section shall expressly incorporate this limitation. | ||
(M) The Agency shall be authorized to retain one or | ||
more experts or expert consulting firms to develop, | ||
administer, implement, operate, and evaluate the | ||
Adjustable Block program described in subparagraph (K) of | ||
this paragraph (1), and the Agency shall retain the | ||
consultant or consultants in the same manner, to the extent | ||
practicable, as the Agency retains others to administer | ||
provisions of this Act, including, but not limited to, the | ||
procurement administrator. The selection of experts and | ||
expert consulting firms and the procurement process | ||
described in this subparagraph (M) are exempt from the | ||
requirements of Section 20-10 of the Illinois Procurement | ||
Code, under Section 20-10 of that Code. The Agency shall | ||
strive to minimize administrative expenses in the | ||
implementation of the Adjustable Block program. | ||
The Agency and its consultant or consultants shall |
monitor block activity, share program activity with | ||
stakeholders and conduct regularly scheduled meetings to | ||
discuss program activity and market conditions. If | ||
necessary, the Agency may make prospective administrative | ||
adjustments to the Adjustable Block program design, such as | ||
redistributing available funds or making adjustments to | ||
purchase prices as necessary to achieve the goals of this | ||
subsection (c). Program modifications to any price, | ||
capacity block, or other program element that do not | ||
deviate from the Commission's approved value by more than | ||
25% shall take effect immediately and are not subject to | ||
Commission review and approval. Program modifications to | ||
any price, capacity block, or other program element that | ||
deviate more than 25% from the Commission's approved value | ||
must be approved by the Commission as a long-term plan | ||
amendment under Section 16-111.5 of the Public Utilities | ||
Act. The Agency shall consider stakeholder feedback when | ||
making adjustments to the Adjustable Block design and shall | ||
notify stakeholders in advance of any planned changes. | ||
(N) The long-term renewable resources procurement plan | ||
required by this subsection (c) shall include a community | ||
renewable generation program. The Agency shall establish | ||
the terms, conditions, and program requirements for | ||
community renewable generation projects with a goal to | ||
expand renewable energy generating facility access to a | ||
broader group of energy consumers, to ensure robust |
participation opportunities for residential and small | ||
commercial customers and those who cannot install | ||
renewable energy on their own properties. Any plan approved | ||
by the Commission shall allow subscriptions to community | ||
renewable generation projects to be portable and | ||
transferable. For purposes of this subparagraph (N), | ||
"portable" means that subscriptions may be retained by the | ||
subscriber even if the subscriber relocates or changes its | ||
address within the same utility service territory; and | ||
"transferable" means that a subscriber may assign or sell | ||
subscriptions to another person within the same utility | ||
service territory. | ||
Electric utilities shall provide a monetary credit to a | ||
subscriber's subsequent bill for service for the | ||
proportional output of a community renewable generation | ||
project attributable to that subscriber as specified in | ||
Section 16-107.5 of the Public Utilities Act. | ||
The Agency shall purchase renewable energy credits | ||
from subscribed shares of photovoltaic community renewable | ||
generation projects through the Adjustable Block program | ||
described in subparagraph (K) of this paragraph (1) or | ||
through the Illinois Solar for All Program described in | ||
Section 1-56 of this Act. The electric utility shall | ||
purchase any unsubscribed energy from community renewable | ||
generation projects that are Qualifying Facilities ("QF") | ||
under the electric utility's tariff for purchasing the |
output from QFs under Public Utilities Regulatory Policies | ||
Act of 1978. | ||
The owners of and any subscribers to a community | ||
renewable generation project shall not be considered | ||
public utilities or alternative retail electricity | ||
suppliers under the Public Utilities Act solely as a result | ||
of their interest in or subscription to a community | ||
renewable generation project and shall not be required to | ||
become an alternative retail electric supplier by | ||
participating in a community renewable generation project | ||
with a public utility. | ||
(O) For the delivery year beginning June 1, 2018, the | ||
long-term renewable resources procurement plan required by | ||
this subsection (c) shall provide for the Agency to procure | ||
contracts to continue offering the Illinois Solar for All | ||
Program described in subsection (b) of Section 1-56 of this | ||
Act, and the contracts approved by the Commission shall be | ||
executed by the utilities that are subject to this | ||
subsection (c). The long-term renewable resources | ||
procurement plan shall allocate 5% of the funds available | ||
under the plan for the applicable delivery year, or | ||
$10,000,000 per delivery year, whichever is greater, to | ||
fund the programs, and the plan shall determine the amount | ||
of funding to be apportioned to the programs identified in | ||
subsection (b) of Section 1-56 of this Act; provided that | ||
for the delivery years beginning June 1, 2017, June 1, |
2021, and June 1, 2025, the long-term renewable resources | ||
procurement plan shall allocate 10% of the funds available | ||
under the plan for the applicable delivery year, or | ||
$20,000,000 per delivery year, whichever is greater, and | ||
$10,000,000 of such funds in such year shall be used by an | ||
electric utility that serves more than 3,000,000 retail | ||
customers in the State to implement a Commission-approved | ||
plan under Section 16-108.12 of the Public Utilities Act. | ||
In making the determinations required under this | ||
subparagraph (O), the Commission shall consider the | ||
experience and performance under the programs and any | ||
evaluation reports. The Commission shall also provide for | ||
an independent evaluation of those programs on a periodic | ||
basis that are funded under this subparagraph (O). 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) (Blank). 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) (Blank). 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 2010 delivery year and ending | ||
June 1, 2017 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. | ||
(6) The electric utility shall be entitled to recover | ||
all of its costs associated with the procurement of | ||
renewable energy credits under plans approved under this | ||
Section and Section 16-111.5 of the Public Utilities Act. | ||
These costs shall include associated reasonable expenses | ||
for implementing the procurement programs, including, but | ||
not limited to, the costs of administering and evaluating | ||
the Adjustable Block program, through an automatic |
adjustment clause tariff in accordance with subsection (k) | ||
of Section 16-108 of the Public Utilities Act. | ||
(7) Renewable energy credits procured from new | ||
photovoltaic projects or new distributed renewable energy | ||
generation devices under this Section after the effective | ||
date of this amendatory Act of the 99th General Assembly | ||
must be procured from devices installed by a qualified | ||
person in compliance with the requirements of Section | ||
16-128A of the Public Utilities Act and any rules or | ||
regulations adopted thereunder. | ||
In meeting the renewable energy requirements of this | ||
subsection (c), to the extent feasible and consistent with | ||
State and federal law, the renewable energy credit | ||
procurements, Adjustable Block solar program, and | ||
community renewable generation program shall 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. | ||
(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 utility party to a sourcing agreement shall | ||
immediately retire any emission credits that it receives in | ||
connection with the electricity covered by such agreement. | ||
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. | ||
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 capitalized financing costs |
during construction,
taxes, insurance, and other | ||
owner's costs, and 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. The delivered fuel | ||
cost estimate will be provided by a recognized third | ||
party expert or experts in the fuel and transportation | ||
industries. 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 taxes, insurance, and other owner's costs, and | ||
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 an | ||
analysis of the initial clean coal facility's ability | ||
to deliver power and energy into the applicable | ||
regional transmission organization markets and 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. | ||
(d-5) Zero emission standard. | ||
(1) Beginning with the delivery year commencing on June | ||
1, 2017, the Agency shall, for electric utilities that | ||
serve at least 100,000 retail customers in this State, | ||
procure contracts with zero emission facilities that are | ||
reasonably capable of generating cost-effective zero | ||
emission credits in an amount approximately equal to 16% of | ||
the actual amount of electricity delivered by each electric | ||
utility to retail customers in the State during calendar | ||
year 2014. For an electric utility serving fewer than | ||
100,000 retail customers in this State that requested, | ||
under Section 16-111.5 of the Public Utilities Act, that | ||
the Agency procure power and energy for all or a portion of | ||
the utility's Illinois load for the delivery year | ||
commencing June 1, 2016, the Agency shall procure contracts | ||
with zero emission facilities that are reasonably capable | ||
of generating cost-effective zero emission credits in an | ||
amount approximately equal to 16% of the portion of power | ||
and energy to be procured by the Agency for the utility. | ||
The duration of the contracts procured under this | ||
subsection (d-5) shall be for a term of 10 years ending May | ||
31, 2027. The quantity of zero emission credits to be |
procured under the contracts shall be all of the zero | ||
emission credits generated by the zero emission facility in | ||
each delivery year; however, if the zero emission facility | ||
is owned by more than one entity, then the quantity of zero | ||
emission credits to be procured under the contracts shall | ||
be the amount of zero emission credits that are generated | ||
from the portion of the zero emission facility that is | ||
owned by the winning supplier. | ||
The 16% value identified in this paragraph (1) is the | ||
average of the percentage targets in subparagraph (B) of | ||
paragraph (1) of subsection (c) of Section 1-75 of this Act | ||
for the 5 delivery years beginning June 1, 2017. | ||
The procurement process shall be subject to the | ||
following provisions: | ||
(A) Those zero emission facilities that intend to | ||
participate in the procurement shall submit to the | ||
Agency the following eligibility information for each | ||
zero emission facility on or before the date | ||
established by the Agency: | ||
(i) the in-service date and remaining useful | ||
life of the zero emission facility; | ||
(ii) the amount of power generated annually | ||
for each of the years 2005 through 2015, and the | ||
projected zero emission credits to be generated | ||
over the remaining useful life of the zero emission | ||
facility, which shall be used to determine the |
capability of each facility; | ||
(iii) the annual zero emission facility cost | ||
projections, expressed on a per megawatthour | ||
basis, over the next 6 delivery years, which shall | ||
include the following: operation and maintenance | ||
expenses; fully allocated overhead costs, which | ||
shall be allocated using the methodology developed | ||
by the Institute for Nuclear Power Operations; | ||
fuel expenditures; non-fuel capital expenditures; | ||
spent fuel expenditures; a return on working | ||
capital; the cost of operational and market risks | ||
that could be avoided by ceasing operation; and any | ||
other costs necessary for continued operations, | ||
provided that "necessary" means, for purposes of | ||
this item (iii), that the costs could reasonably be | ||
avoided only by ceasing operations of the zero | ||
emission facility; and | ||
(iv) a commitment to continue operating, for | ||
the duration of the contract or contracts executed | ||
under the procurement held under this subsection | ||
(d-5), the zero emission facility that produces | ||
the zero emission credits to be procured in the | ||
procurement. | ||
The information described in item (iii) of this | ||
subparagraph (A) may be submitted on a confidential basis | ||
and shall be treated and maintained by the Agency, the |
procurement administrator, and the Commission as | ||
confidential and proprietary and exempt from disclosure | ||
under subparagraphs (a) and (g) of paragraph (1) of Section | ||
7 of the Freedom of Information Act. The Office of Attorney | ||
General shall have access to, and maintain the | ||
confidentiality of, such information pursuant to Section | ||
6.5 of the Attorney General Act. | ||
(B) The price for each zero emission credit | ||
procured under this subsection (d-5) for each delivery | ||
year shall be in an amount that equals the Social Cost | ||
of Carbon, expressed on a price per megawatthour basis. | ||
However, to ensure that the procurement remains | ||
affordable to retail customers in this State if | ||
electricity prices increase, the price in an | ||
applicable delivery year shall be reduced below the | ||
Social Cost of Carbon by the amount ("Price | ||
Adjustment") by which the market price index for the | ||
applicable delivery year exceeds the baseline market | ||
price index for the consecutive 12-month period ending | ||
May 31, 2016. If the Price Adjustment is greater than | ||
or equal to the Social Cost of Carbon in an applicable | ||
delivery year, then no payments shall be due in that | ||
delivery year. The components of this calculation are | ||
defined as follows: | ||
(i) Social Cost of Carbon: The Social Cost of | ||
Carbon is $16.50 per megawatthour, which is based |
on the U.S. Interagency Working Group on Social | ||
Cost of Carbon's price in the August 2016 Technical | ||
Update using a 3% discount rate, adjusted for | ||
inflation for each year of the program. Beginning | ||
with the delivery year commencing June 1, 2023, the | ||
price per megawatthour shall increase by $1 per | ||
megawatthour, and continue to increase by an | ||
additional $1 per megawatthour each delivery year | ||
thereafter. | ||
(ii) Baseline market price index: The baseline | ||
market price index for the consecutive 12-month | ||
period ending May 31, 2016 is $31.40 per | ||
megawatthour, which is based on the sum of (aa) the | ||
average day-ahead energy price across all hours of | ||
such 12-month period at the PJM Interconnection | ||
LLC Northern Illinois Hub, (bb) 50% multiplied by | ||
the Base Residual Auction, or its successor, | ||
capacity price for the rest of the RTO zone group | ||
determined by PJM Interconnection LLC, divided by | ||
24 hours per day, and (cc) 50% multiplied by the | ||
Planning Resource Auction, or its successor, | ||
capacity price for Zone 4 determined by the | ||
Midcontinent Independent System Operator, Inc., | ||
divided by 24 hours per day. | ||
(iii) Market price index: The market price | ||
index for a delivery year shall be the sum of |
projected energy prices and projected capacity | ||
prices determined as follows: | ||
(aa) Projected energy prices: the | ||
projected energy prices for the applicable | ||
delivery year shall be calculated once for the | ||
year using the forward market price for the PJM | ||
Interconnection, LLC Northern Illinois Hub. | ||
The forward market price shall be calculated as | ||
follows: the energy forward prices for each | ||
month of the applicable delivery year averaged | ||
for each trade date during the calendar year | ||
immediately preceding that delivery year to | ||
produce a single energy forward price for the | ||
delivery year. The forward market price | ||
calculation shall use data published by the | ||
Intercontinental Exchange, or its successor. | ||
(bb) Projected capacity prices: | ||
(I) For the delivery years commencing | ||
June 1, 2017, June 1, 2018, and June 1, | ||
2019, the projected capacity price shall | ||
be equal to the sum of (1) 50% multiplied | ||
by the Base Residual Auction, or its | ||
successor, price for the rest of the RTO | ||
zone group as determined by PJM | ||
Interconnection LLC, divided by 24 hours | ||
per day and, (2) 50% multiplied by the |
resource auction price determined in the | ||
resource auction administered by the | ||
Midcontinent Independent System Operator, | ||
Inc., in which the largest percentage of | ||
load cleared for Local Resource Zone 4, | ||
divided by 24 hours per day, and where such | ||
price is determined by the Midcontinent | ||
Independent System Operator, Inc. | ||
(II) For the delivery year commencing | ||
June 1, 2020, and each year thereafter, the | ||
projected capacity price shall be equal to | ||
the sum of (1) 50% multiplied by the Base | ||
Residual Auction, or its successor, price | ||
for the ComEd zone as determined by PJM | ||
Interconnection LLC, divided by 24 hours | ||
per day, and (2) 50% multiplied by the | ||
resource auction price determined in the | ||
resource auction administered by the | ||
Midcontinent Independent System Operator, | ||
Inc., in which the largest percentage of | ||
load cleared for Local Resource Zone 4, | ||
divided by 24 hours per day, and where such | ||
price is determined by the Midcontinent | ||
Independent System Operator, Inc. | ||
For purposes of this subsection (d-5): | ||
"Rest of the RTO" and "ComEd Zone" shall have |
the meaning ascribed to them by PJM | ||
Interconnection, LLC. | ||
"RTO" means regional transmission | ||
organization. | ||
(C) No later than 45 days after the effective date | ||
of this amendatory Act of the 99th General Assembly, | ||
the Agency shall publish its proposed zero emission | ||
standard procurement plan. The plan shall be | ||
consistent with the provisions of this paragraph (1) | ||
and shall provide that winning bids shall be selected | ||
based on public interest criteria that include, but are | ||
not limited to, minimizing carbon dioxide emissions | ||
that result from electricity consumed in Illinois and | ||
minimizing sulfur dioxide, nitrogen oxide, and | ||
particulate matter emissions that adversely affect the | ||
citizens of this State. In particular, the selection of | ||
winning bids shall take into account the incremental | ||
environmental benefits resulting from the procurement, | ||
such as any existing environmental benefits that are | ||
preserved by the procurements held under this | ||
amendatory Act of the 99th General Assembly and would | ||
cease to exist if the procurements were not held, | ||
including the preservation of zero emission | ||
facilities. The plan shall also describe in detail how | ||
each public interest factor shall be considered and | ||
weighted in the bid selection process to ensure that |
the public interest criteria are applied to the | ||
procurement and given full effect. | ||
For purposes of developing the plan, the Agency | ||
shall consider any reports issued by a State agency, | ||
board, or commission under House Resolution 1146 of the | ||
98th General Assembly and paragraph (4) of subsection | ||
(d) of Section 1-75 of this Act, as well as publicly | ||
available analyses and studies performed by or for | ||
regional transmission organizations that serve the | ||
State and their independent market monitors. | ||
Upon publishing of the zero emission standard | ||
procurement plan, copies of the plan shall be posted | ||
and made publicly available on the Agency's website. | ||
All interested parties shall have 10 days following the | ||
date of posting to provide comment to the Agency on the | ||
plan. All comments shall be posted to the Agency's | ||
website. Following the end of the comment period, but | ||
no more than 60 days later than the effective date of | ||
this amendatory Act of the 99th General Assembly, the | ||
Agency shall revise the plan as necessary based on the | ||
comments received and file its zero emission standard | ||
procurement plan with the Commission. | ||
If the Commission determines that the plan will | ||
result in the procurement of cost-effective zero | ||
emission credits, then the Commission shall, after | ||
notice and hearing, but no later than 45 days after the |
Agency filed the plan, approve the plan or approve with | ||
modification. For purposes of this subsection (d-5), | ||
"cost effective" means the projected costs of | ||
procuring zero emission credits from zero emission | ||
facilities do not cause the limit stated in paragraph | ||
(2) of this subsection to be exceeded. | ||
(C-5) As part of the Commission's review and | ||
acceptance or rejection of the procurement results, | ||
the Commission shall, in its public notice of | ||
successful bidders: | ||
(i) identify how the winning bids satisfy the | ||
public interest criteria described in subparagraph | ||
(C) of this paragraph (1) of minimizing carbon | ||
dioxide emissions that result from electricity | ||
consumed in Illinois and minimizing sulfur | ||
dioxide, nitrogen oxide, and particulate matter | ||
emissions that adversely affect the citizens of | ||
this State; | ||
(ii) specifically address how the selection of | ||
winning bids takes into account the incremental | ||
environmental benefits resulting from the | ||
procurement, including any existing environmental | ||
benefits that are preserved by the procurements | ||
held under this amendatory Act of the 99th General | ||
Assembly and would have ceased to exist if the | ||
procurements had not been held, such as the |
preservation of zero emission facilities; | ||
(iii) quantify the environmental benefit of | ||
preserving the resources identified in item (ii) | ||
of this subparagraph (C-5), including the | ||
following: | ||
(aa) the value of avoided greenhouse gas | ||
emissions measured as the product of the zero | ||
emission facilities' output over the contract | ||
term multiplied by the U.S. Environmental | ||
Protection Agency eGrid subregion carbon | ||
dioxide emission rate and the U.S. Interagency | ||
Working Group on Social Cost of Carbon's price | ||
in the August 2016 Technical Update using a 3% | ||
discount rate, adjusted for inflation for each | ||
delivery year; and | ||
(bb) the costs of replacement with other | ||
zero carbon dioxide resources, including wind | ||
and photovoltaic, based upon the simple | ||
average of the following: | ||
(I) the price, or if there is more than | ||
one price, the average of the prices, paid | ||
for renewable energy credits from new | ||
utility-scale wind projects in the | ||
procurement events specified in item (i) | ||
of subparagraph (G) of paragraph (1) of | ||
subsection (c) of Section 1-75 of this Act; |
and | ||
(II) the price, or if there is more | ||
than one price, the average of the prices, | ||
paid for renewable energy credits from new | ||
utility-scale solar projects and | ||
brownfield site photovoltaic projects in | ||
the procurement events specified in item | ||
(ii) of subparagraph (G) of paragraph (1) | ||
of subsection (c) of Section 1-75 of this | ||
Act and, after January 1, 2015, renewable | ||
energy credits from photovoltaic | ||
distributed generation projects in | ||
procurement events held under subsection | ||
(c) of Section 1-75 of this Act. | ||
Each utility shall enter into binding contractual arrangements | ||
with the winning suppliers. | ||
The procurement described in this subsection | ||
(d-5), including, but not limited to, the execution of | ||
all contracts procured, shall be completed no later | ||
than May 10, 2017. Based on the effective date of this | ||
amendatory Act of the 99th General Assembly, the Agency | ||
and Commission may, as appropriate, modify the various | ||
dates and timelines under this subparagraph and | ||
subparagraphs (C) and (D) of this paragraph (1). The | ||
procurement and plan approval processes required by | ||
this subsection (d-5) shall be conducted in |
conjunction with the procurement and plan approval | ||
processes required by subsection (c) of this Section | ||
and Section 16-111.5 of the Public Utilities Act, to | ||
the extent practicable. Notwithstanding whether a | ||
procurement event is conducted under Section 16-111.5 | ||
of the Public Utilities Act, the Agency shall | ||
immediately initiate a procurement process on the | ||
effective date of this amendatory Act of the 99th | ||
General Assembly. | ||
(D) Following the procurement event described in | ||
this paragraph (1) and consistent with subparagraph | ||
(B) of this paragraph (1), the Agency shall calculate | ||
the payments to be made under each contract for the | ||
next delivery year based on the market price index for | ||
that delivery year. The Agency shall publish the | ||
payment calculations no later than May 25, 2017 and | ||
every May 25 thereafter. | ||
(E) Notwithstanding the requirements of this | ||
subsection (d-5), the contracts executed under this | ||
subsection (d-5) shall provide that the zero emission | ||
facility may, as applicable, suspend or terminate | ||
performance under the contracts in the following | ||
instances: | ||
(i) A zero emission facility shall be excused | ||
from its performance under the contract for any | ||
cause beyond the control of the resource, |
including, but not restricted to, acts of God, | ||
flood, drought, earthquake, storm, fire, | ||
lightning, epidemic, war, riot, civil disturbance | ||
or disobedience, labor dispute, labor or material | ||
shortage, sabotage, acts of public enemy, | ||
explosions, orders, regulations or restrictions | ||
imposed by governmental, military, or lawfully | ||
established civilian authorities, which, in any of | ||
the foregoing cases, by exercise of commercially | ||
reasonable efforts the zero emission facility | ||
could not reasonably have been expected to avoid, | ||
and which, by the exercise of commercially | ||
reasonable efforts, it has been unable to | ||
overcome. In such event, the zero emission | ||
facility shall be excused from performance for the | ||
duration of the event, including, but not limited | ||
to, delivery of zero emission credits, and no | ||
payment shall be due to the zero emission facility | ||
during the duration of the event. | ||
(ii) A zero emission facility shall be | ||
permitted to terminate the contract if legislation | ||
is enacted into law by the General Assembly that | ||
imposes or authorizes a new tax, special | ||
assessment, or fee on the generation of | ||
electricity, the ownership or leasehold of a | ||
generating unit, or the privilege or occupation of |
such generation, ownership, or leasehold of | ||
generation units by a zero emission facility. | ||
However, the provisions of this item (ii) do not | ||
apply to any generally applicable tax, special | ||
assessment or fee, or requirements imposed by | ||
federal law. | ||
(iii) A zero emission facility shall be | ||
permitted to terminate the contract in the event | ||
that the resource requires capital expenditures in | ||
excess of $40,000,000 that were neither known nor | ||
reasonably foreseeable at the time it executed the | ||
contract and that a prudent owner or operator of | ||
such resource would not undertake. | ||
(iv) A zero emission facility shall be | ||
permitted to terminate the contract in the event | ||
the Nuclear Regulatory Commission terminates the | ||
resource's license. | ||
(F) If the zero emission facility elects to | ||
terminate a contract under this subparagraph (E, of | ||
this paragraph (1), then the Commission shall reopen | ||
the docket in which the Commission approved the zero | ||
emission standard procurement plan under subparagraph | ||
(C) of this paragraph (1) and, after notice and | ||
hearing, enter an order acknowledging the contract | ||
termination election if such termination is consistent | ||
with the provisions of this subsection (d-5). |
(2) For purposes of this subsection (d-5), 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-5), 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-5), the contracts executed under this subsection (d-5) | ||
shall provide that the total of zero emission credits | ||
procured under a procurement plan shall be subject to the | ||
limitations of this paragraph (2). For each delivery year, | ||
the contractual volume receiving payments in such year | ||
shall be reduced for all retail customers based on the | ||
amount necessary to limit the net increase that delivery | ||
year to the costs of those credits included in the amounts | ||
paid by eligible retail customers in connection with | ||
electric service to no more than 1.65% of the amount paid | ||
per kilowatthour by eligible retail customers during the | ||
year ending May 31, 2009. The result of this computation | ||
shall apply to and reduce the procurement for all retail | ||
customers, and all those customers shall pay the same | ||
single, uniform cents per kilowatthour charge under | ||
subsection (k) of Section 16-108 of the Public Utilities | ||
Act. To arrive at a maximum dollar amount of zero emission | ||
credits to be paid for the particular delivery year, the |
resulting per kilowatthour amount shall be applied to the | ||
actual amount of kilowatthours of electricity delivered by | ||
the electric utility in the delivery year immediately prior | ||
to the procurement, to all retail customers in its service | ||
territory. Unpaid contractual volume for any delivery year | ||
shall be paid in any subsequent delivery year in which such | ||
payments can be made without exceeding the amount specified | ||
in this paragraph (2). The calculations required by this | ||
paragraph (2) shall be made only once for each procurement | ||
plan year. Once the determination as to the amount of zero | ||
emission credits to be paid is made based on the | ||
calculations set forth in this paragraph (2), no subsequent | ||
rate impact determinations shall be made and no adjustments | ||
to those contract amounts shall be allowed. All costs | ||
incurred under those contracts and in implementing this | ||
subsection (d-5) shall be recovered by the electric utility | ||
as provided in this Section. | ||
No later than June 30, 2019, the Commission shall | ||
review the limitation on the amount of zero emission | ||
credits procured under this subsection (d-5) and report to | ||
the General Assembly its findings as to whether that | ||
limitation unduly constrains the procurement of | ||
cost-effective zero emission credits. | ||
(3) Six years after the execution of a contract under | ||
this subsection (d-5), the Agency shall determine whether | ||
the actual zero emission credit payments received by the |
supplier over the 6-year period exceed the Average ZEC | ||
Payment. In addition, at the end of the term of a contract | ||
executed under this subsection (d-5), or at the time, if | ||
any, a zero emission facility's contract is terminated | ||
under subparagraph (E) of paragraph (1) of this subsection | ||
(d-5), then the Agency shall determine whether the actual | ||
zero emission credit payments received by the supplier over | ||
the term of the contract exceed the Average ZEC Payment, | ||
after taking into account any amounts previously credited | ||
back to the utility under this paragraph (3). If the Agency | ||
determines that the actual zero emission credit payments | ||
received by the supplier over the relevant period exceed | ||
the Average ZEC Payment, then the supplier shall credit the | ||
difference back to the utility. The amount of the credit | ||
shall be remitted to the applicable electric utility no | ||
later than 120 days after the Agency's determination, which | ||
the utility shall reflect as a credit on its retail | ||
customer bills as soon as practicable; however, the credit | ||
remitted to the utility shall not exceed the total amount | ||
of payments received by the facility under its contract. | ||
For purposes of this Section, the Average ZEC Payment | ||
shall be calculated by multiplying the quantity of zero | ||
emission credits delivered under the contract times the | ||
average contract price. The average contract price shall be | ||
determined by subtracting the amount calculated under | ||
subparagraph (B) of this paragraph (3) from the amount |
calculated under subparagraph (A) of this paragraph (3), as | ||
follows: | ||
(A) The average of the Social Cost of Carbon, as | ||
defined in subparagraph (B) of paragraph (1) of this | ||
subsection (d-5), during the term of the contract. | ||
(B) The average of the market price indices, as | ||
defined in subparagraph (B) of paragraph (1) of this | ||
subsection (d-5), during the term of the contract, | ||
minus the baseline market price index, as defined in | ||
subparagraph (B) of paragraph (1) of this subsection | ||
(d-5). | ||
If the subtraction yields a negative number, then the | ||
Average ZEC Payment shall be zero. | ||
(4) Cost-effective zero emission credits procured from | ||
zero emission facilities shall satisfy the applicable | ||
definitions set forth in Section 1-10 of this Act. | ||
(5) The electric utility shall retire all zero emission | ||
credits used to comply with the requirements of this | ||
subsection (d-5). | ||
(6) Electric utilities shall be entitled to recover all | ||
of the costs associated with the procurement of zero | ||
emission credits through an automatic adjustment clause | ||
tariff in accordance with subsection (k) and (m) of Section | ||
16-108 of the Public Utilities Act, and the contracts | ||
executed under this subsection (d-5) shall provide that the | ||
utilities' payment obligations under such contracts shall |
be reduced if an adjustment is required under subsection | ||
(m) of Section 16-108 of the Public Utilities Act. | ||
(7) This subsection (d-5) shall become inoperative on | ||
January 1, 2028. | ||
(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.
| ||
(i) A renewable energy credit, carbon emission credit, or | ||
zero emission credit can only be used once to comply with a | ||
single portfolio or other standard as set forth in subsection | ||
(c), subsection (d), or subsection (d-5) of this Section, | ||
respectively. A renewable energy credit, carbon emission | ||
credit, or zero emission credit cannot be used to satisfy the | ||
requirements of more than one standard. If more than one type | ||
of credit is issued for the same megawatt hour of energy, only | ||
one credit can be used to satisfy the requirements of a single |
standard. After such use, the credit must be retired together | ||
with any other credits issued for the same megawatt hour of | ||
energy. | ||
(Source: P.A. 98-463, eff. 8-16-13; 99-536, eff. 7-8-16.) | ||
Section 10. The Illinois Procurement Code is amended by | ||
changing Section 20-10 as follows:
| ||
(30 ILCS 500/20-10)
| ||
(Text of Section from P.A. 96-159, 96-588, 97-96, 97-895, | ||
and 98-1076) | ||
Sec. 20-10. Competitive sealed bidding; reverse auction.
| ||
(a) Conditions for use. All contracts shall be awarded by
| ||
competitive sealed bidding
except as otherwise provided in | ||
Section 20-5.
| ||
(b) Invitation for bids. An invitation for bids shall be
| ||
issued and shall include a
purchase description and the | ||
material contractual terms and
conditions applicable to the
| ||
procurement.
| ||
(c) Public notice. Public notice of the invitation for bids | ||
shall be
published in the Illinois Procurement Bulletin at | ||
least 14 calendar days before the date
set in the invitation | ||
for the opening of bids.
| ||
(d) Bid opening. Bids shall be opened publicly in the
| ||
presence of one or more witnesses
at the time and place | ||
designated in the invitation for bids. The
name of each bidder, |
the amount
of each bid, and other relevant information as may | ||
be specified by
rule shall be
recorded. After the award of the | ||
contract, the winning bid and the
record of each unsuccessful | ||
bid shall be open to
public inspection.
| ||
(e) Bid acceptance and bid evaluation. Bids shall be
| ||
unconditionally accepted without
alteration or correction, | ||
except as authorized in this Code. Bids
shall be evaluated | ||
based on the
requirements set forth in the invitation for bids, | ||
which may
include criteria to determine
acceptability such as | ||
inspection, testing, quality, workmanship,
delivery, and | ||
suitability for a
particular purpose. Those criteria that will | ||
affect the bid price
and be considered in evaluation
for award, | ||
such as discounts, transportation costs, and total or
life | ||
cycle costs, shall be
objectively measurable. The invitation | ||
for bids shall set forth
the evaluation criteria to be used.
| ||
(f) Correction or withdrawal of bids. Correction or
| ||
withdrawal of inadvertently
erroneous bids before or after | ||
award, or cancellation of awards of
contracts based on bid
| ||
mistakes, shall be permitted in accordance with rules.
After | ||
bid opening, no
changes in bid prices or other provisions of | ||
bids prejudicial to
the interest of the State or fair
| ||
competition shall be permitted. All decisions to permit the
| ||
correction or withdrawal of bids
based on bid mistakes shall be | ||
supported by written determination
made by a State purchasing | ||
officer.
| ||
(g) Award. The contract shall be awarded with reasonable
|
promptness by written notice
to the lowest responsible and | ||
responsive bidder whose bid meets
the requirements and criteria
| ||
set forth in the invitation for bids, except when a State | ||
purchasing officer
determines it is not in the best interest of | ||
the State and by written
explanation determines another bidder | ||
shall receive the award. The explanation
shall appear in the | ||
appropriate volume of the Illinois Procurement Bulletin. The | ||
written explanation must include:
| ||
(1) a description of the agency's needs; | ||
(2) a determination that the anticipated cost will be | ||
fair and reasonable; | ||
(3) a listing of all responsible and responsive | ||
bidders; and | ||
(4) the name of the bidder selected, the total contract | ||
price, and the reasons for selecting that bidder. | ||
Each chief procurement officer may adopt guidelines to | ||
implement the requirements of this subsection (g). | ||
The written explanation shall be filed with the Legislative | ||
Audit Commission and the Procurement Policy Board, and be made | ||
available for inspection by the public, within 30 calendar days | ||
after the agency's decision to award the contract. | ||
(h) Multi-step sealed bidding. When it is considered
| ||
impracticable to initially prepare
a purchase description to | ||
support an award based on price, an
invitation for bids may be | ||
issued
requesting the submission of unpriced offers to be | ||
followed by an
invitation for bids limited to
those bidders |
whose offers have been qualified under the criteria
set forth | ||
in the first solicitation.
| ||
(i) Alternative procedures. Notwithstanding any other | ||
provision of this Act to the contrary, the Director of the | ||
Illinois Power Agency may create alternative bidding | ||
procedures to be used in procuring professional services under | ||
Section 1-56, subsections subsection (a) and (c) of Section | ||
1-75 and subsection (d) of Section 1-78 of the Illinois Power | ||
Agency Act and Section 16-111.5(c) of the Public Utilities Act | ||
and to procure renewable energy resources under Section 1-56 of | ||
the Illinois Power Agency Act. These alternative procedures | ||
shall be set forth together with the other criteria contained | ||
in the invitation for bids, and shall appear in the appropriate | ||
volume of the Illinois Procurement Bulletin.
| ||
(j) Reverse auction. Notwithstanding any other provision | ||
of this Section and in accordance with rules adopted by the | ||
chief procurement officer, that chief procurement officer may | ||
procure supplies or services through a competitive electronic | ||
auction bidding process after the chief procurement officer | ||
determines that the use of such a process will be in the best | ||
interest of the State. The chief procurement officer shall | ||
publish that determination in his or her next volume of the | ||
Illinois Procurement Bulletin. | ||
An invitation for bids shall be issued and shall include | ||
(i) a procurement description, (ii) all contractual terms, | ||
whenever practical, and (iii) conditions applicable to the |
procurement, including a notice that bids will be received in | ||
an electronic auction manner. | ||
Public notice of the invitation for bids shall be given in | ||
the same manner as provided in subsection (c). | ||
Bids shall be accepted electronically at the time and in | ||
the manner designated in the invitation for bids. During the | ||
auction, a bidder's price shall be disclosed to other bidders. | ||
Bidders shall have the opportunity to reduce their bid prices | ||
during the auction. At the conclusion of the auction, the | ||
record of the bid prices received and the name of each bidder | ||
shall be open to public inspection. | ||
After the auction period has terminated, withdrawal of bids | ||
shall be permitted as provided in subsection (f). | ||
The contract shall be awarded within 60 calendar days after | ||
the auction by written notice to the lowest responsible bidder, | ||
or all bids shall be rejected except as otherwise provided in | ||
this Code. Extensions of the date for the award may be made by | ||
mutual written consent of the State purchasing officer and the | ||
lowest responsible bidder. | ||
This subsection does not apply to (i) procurements of | ||
professional and artistic services, (ii) telecommunications | ||
services, communication services, and information services, | ||
and (iii) contracts for construction projects, including | ||
design professional services. | ||
(Source: P.A. 97-96, eff. 7-13-11; 97-895, eff. 8-3-12; | ||
98-1076, eff. 1-1-15.)
|
(Text of Section from P.A. 96-159, 96-795, 97-96, 97-895, | ||
and 98-1076)
| ||
Sec. 20-10. Competitive sealed bidding; reverse auction.
| ||
(a) Conditions for use. All contracts shall be awarded by
| ||
competitive sealed bidding
except as otherwise provided in | ||
Section 20-5.
| ||
(b) Invitation for bids. An invitation for bids shall be
| ||
issued and shall include a
purchase description and the | ||
material contractual terms and
conditions applicable to the
| ||
procurement.
| ||
(c) Public notice. Public notice of the invitation for bids | ||
shall be
published in the Illinois Procurement Bulletin at | ||
least 14 calendar days before the date
set in the invitation | ||
for the opening of bids.
| ||
(d) Bid opening. Bids shall be opened publicly in the
| ||
presence of one or more witnesses
at the time and place | ||
designated in the invitation for bids. The
name of each bidder, | ||
the amount
of each bid, and other relevant information as may | ||
be specified by
rule shall be
recorded. After the award of the | ||
contract, the winning bid and the
record of each unsuccessful | ||
bid shall be open to
public inspection.
| ||
(e) Bid acceptance and bid evaluation. Bids shall be
| ||
unconditionally accepted without
alteration or correction, | ||
except as authorized in this Code. Bids
shall be evaluated | ||
based on the
requirements set forth in the invitation for bids, |
which may
include criteria to determine
acceptability such as | ||
inspection, testing, quality, workmanship,
delivery, and | ||
suitability for a
particular purpose. Those criteria that will | ||
affect the bid price
and be considered in evaluation
for award, | ||
such as discounts, transportation costs, and total or
life | ||
cycle costs, shall be
objectively measurable. The invitation | ||
for bids shall set forth
the evaluation criteria to be used.
| ||
(f) Correction or withdrawal of bids. Correction or
| ||
withdrawal of inadvertently
erroneous bids before or after | ||
award, or cancellation of awards of
contracts based on bid
| ||
mistakes, shall be permitted in accordance with rules.
After | ||
bid opening, no
changes in bid prices or other provisions of | ||
bids prejudicial to
the interest of the State or fair
| ||
competition shall be permitted. All decisions to permit the
| ||
correction or withdrawal of bids
based on bid mistakes shall be | ||
supported by written determination
made by a State purchasing | ||
officer.
| ||
(g) Award. The contract shall be awarded with reasonable
| ||
promptness by written notice
to the lowest responsible and | ||
responsive bidder whose bid meets
the requirements and criteria
| ||
set forth in the invitation for bids, except when a State | ||
purchasing officer
determines it is not in the best interest of | ||
the State and by written
explanation determines another bidder | ||
shall receive the award. The explanation
shall appear in the | ||
appropriate volume of the Illinois Procurement Bulletin. The | ||
written explanation must include:
|
(1) a description of the agency's needs; | ||
(2) a determination that the anticipated cost will be | ||
fair and reasonable; | ||
(3) a listing of all responsible and responsive | ||
bidders; and | ||
(4) the name of the bidder selected, the total contract | ||
price, and the reasons for selecting that bidder. | ||
Each chief procurement officer may adopt guidelines to | ||
implement the requirements of this subsection (g). | ||
The written explanation shall be filed with the Legislative | ||
Audit Commission and the Procurement Policy Board, and be made | ||
available for inspection by the public, within 30 days after | ||
the agency's decision to award the contract. | ||
(h) Multi-step sealed bidding. When it is considered
| ||
impracticable to initially prepare
a purchase description to | ||
support an award based on price, an
invitation for bids may be | ||
issued
requesting the submission of unpriced offers to be | ||
followed by an
invitation for bids limited to
those bidders | ||
whose offers have been qualified under the criteria
set forth | ||
in the first solicitation.
| ||
(i) Alternative procedures. Notwithstanding any other | ||
provision of this Act to the contrary, the Director of the | ||
Illinois Power Agency may create alternative bidding | ||
procedures to be used in procuring professional services under | ||
subsections subsection (a) and (c) of Section 1-75 and | ||
subsection (d) of Section 1-78 of the Illinois Power Agency Act |
and Section 16-111.5(c) of the Public Utilities Act and to | ||
procure renewable energy resources under Section 1-56 of the | ||
Illinois Power Agency Act. These alternative procedures shall | ||
be set forth together with the other criteria contained in the | ||
invitation for bids, and shall appear in the appropriate volume | ||
of the Illinois Procurement Bulletin.
| ||
(j) Reverse auction. Notwithstanding any other provision | ||
of this Section and in accordance with rules adopted by the | ||
chief procurement officer, that chief procurement officer may | ||
procure supplies or services through a competitive electronic | ||
auction bidding process after the chief procurement officer | ||
determines that the use of such a process will be in the best | ||
interest of the State. The chief procurement officer shall | ||
publish that determination in his or her next volume of the | ||
Illinois Procurement Bulletin. | ||
An invitation for bids shall be issued and shall include | ||
(i) a procurement description, (ii) all contractual terms, | ||
whenever practical, and (iii) conditions applicable to the | ||
procurement, including a notice that bids will be received in | ||
an electronic auction manner. | ||
Public notice of the invitation for bids shall be given in | ||
the same manner as provided in subsection (c). | ||
Bids shall be accepted electronically at the time and in | ||
the manner designated in the invitation for bids. During the | ||
auction, a bidder's price shall be disclosed to other bidders. | ||
Bidders shall have the opportunity to reduce their bid prices |
during the auction. At the conclusion of the auction, the | ||
record of the bid prices received and the name of each bidder | ||
shall be open to public inspection. | ||
After the auction period has terminated, withdrawal of bids | ||
shall be permitted as provided in subsection (f). | ||
The contract shall be awarded within 60 calendar days after | ||
the auction by written notice to the lowest responsible bidder, | ||
or all bids shall be rejected except as otherwise provided in | ||
this Code. Extensions of the date for the award may be made by | ||
mutual written consent of the State purchasing officer and the | ||
lowest responsible bidder. | ||
This subsection does not apply to (i) procurements of | ||
professional and artistic services, (ii) telecommunications | ||
services, communication services, and information services,
| ||
and (iii) contracts for construction projects, including | ||
design professional services. | ||
(Source: P.A. 97-96, eff. 7-13-11; 97-895, eff. 8-3-12; | ||
98-1076, eff. 1-1-15 .) | ||
Section 15. The Public Utilities Act is amended by changing | ||
Sections 5-117, 5-202.1, 8-103, 8-104, 16-107, 16-107.5, | ||
16-108, 16-108.5, 16-111.1, 16-111.5, 16-111.5B, 16-111.7, | ||
16-115D, 16-119A, 16-127, and 16-128A and by adding Sections | ||
8-103B, 9-107, 16-107.6, 16-108.10, 16-108.11, 16-108.12, | ||
16-108.15, and 16-108.16 as follows: |
(220 ILCS 5/5-117) | ||
Sec. 5-117. Supplier diversity goals. | ||
(a) The public policy of this State is to collaboratively | ||
work with companies that serve Illinois residents to improve | ||
their supplier diversity in a non-antagonistic manner. | ||
(b) The Commission shall require all gas, electric, and | ||
water companies with at least 100,000 customers under its | ||
authority , as well as suppliers of wind energy, solar energy,
| ||
hydroelectricity, nuclear energy, and any other supplier of
| ||
energy within this State, to submit an annual report by April | ||
15, 2015 and every April 15 thereafter, in a searchable Adobe | ||
PDF format, on all procurement goals and actual spending for | ||
female-owned, minority-owned, veteran-owned, and small | ||
business enterprises in the previous calendar year. These goals | ||
shall be expressed as a percentage of the total work performed | ||
by the entity submitting the report, and the actual spending | ||
for all female-owned, minority-owned, veteran-owned, and small | ||
business enterprises shall also be expressed as a percentage of | ||
the total work performed by the entity submitting the report. | ||
(c) Each participating company in its annual report shall | ||
include the following information: | ||
(1) an explanation of the plan for the next year to | ||
increase participation; | ||
(2) an explanation of the plan to increase the goals; | ||
(3) the areas of procurement each company shall be | ||
actively seeking more participation in in the next year; |
(4) an outline of the plan to alert and encourage | ||
potential vendors in that area to seek business from the | ||
company; | ||
(5) an explanation of the challenges faced in finding | ||
quality vendors and offer any suggestions for what the | ||
Commission could do to be helpful to identify those | ||
vendors; | ||
(6) a list of the certifications the company | ||
recognizes; | ||
(7) the point of contact for any potential vendor who | ||
wishes to do business with the company and explain the | ||
process for a vendor to enroll with the company as a | ||
minority-owned, women-owned, or veteran-owned company; and | ||
(8) any particular success stories to encourage other | ||
companies to emulate best practices. | ||
(d) Each annual report shall include as much State-specific | ||
data as possible. If the submitting entity does not submit | ||
State-specific data, then the company shall include any | ||
national data it does have and explain why it could not submit | ||
State-specific data and how it intends to do so in future | ||
reports, if possible. | ||
(e) Each annual report shall include the rules, | ||
regulations, and definitions used for the procurement goals in | ||
the company's annual report. | ||
(f) The Commission and all participating entities shall | ||
hold an annual workshop open to the public in 2015 and every |
year thereafter on the state of supplier diversity to | ||
collaboratively seek solutions to structural impediments to | ||
achieving stated goals, including testimony from each | ||
participating entity as well as subject matter experts and | ||
advocates. The Commission shall publish a database on its | ||
website of the point of contact for each participating entity | ||
for supplier diversity, along with a list of certifications | ||
each company recognizes from the information submitted in each | ||
annual report. The Commission shall publish each annual report | ||
on its website and shall maintain each annual report for at | ||
least 5 years.
| ||
(Source: P.A. 98-1056, eff. 8-26-14.)
| ||
(220 ILCS 5/5-202.1)
| ||
Sec. 5-202.1. Misrepresentation before Commission; | ||
penalty.
| ||
(a) Any person or corporation, as defined in Sections 3-113 | ||
and 3-114 of
this Act, who knowingly misrepresents facts to the | ||
Commission in response to any Commission contact, inquiry or | ||
discussion or knowingly aids another in doing
so in response to | ||
any Commission contact, inquiry or discussion or knowingly | ||
permits another to
misrepresent facts through testimony or the | ||
offering or withholding of
material information in any
| ||
proceeding shall be subject to a civil penalty. Whenever
the | ||
Commission is of
the opinion that a person or corporation is | ||
misrepresenting or has
misrepresented facts,
the Commission |
may initiate a proceeding to determine
whether a | ||
misrepresentation has in fact occurred. If the Commission finds
| ||
that a person or corporation has violated this Section, the | ||
Commission shall
impose a penalty of not less than $1,000 and | ||
not greater than $500,000 . Each
misrepresentation of a fact
| ||
found by the
Commission shall constitute a separate and | ||
distinct violation. In determining
the amount of the penalty to | ||
be assessed, the Commission may consider any
matters of record | ||
in aggravation or mitigation of the penalty, as set forth in
| ||
Section 4-203, including but not limited to the following:
| ||
(1) the presence or absence of due diligence on the | ||
part of the violator
in attempting to comply with the Act;
| ||
(2) any economic benefits accrued, or expected to be | ||
accrued, by the
violator because of the misrepresentation; | ||
and
| ||
(3) the amount of monetary penalty that will serve to | ||
deter further
violations by the violator and to otherwise | ||
aid in enhancing
voluntary compliance with the Act.
| ||
(b) Any action to enforce civil penalties arising under | ||
this Section
shall
be undertaken pursuant to Section 4-203.
| ||
(c) For purposes of this Section, "Commission," as defined | ||
in Section 3-102, refers to any Commissioner, agent, or | ||
employee of the Illinois Commerce commission, and also refers | ||
to any other person engaged to represent the Commission in | ||
carrying out its regulatory or law enforcement obligations. | ||
(Source: P.A. 93-457, eff. 8-8-03.)
|
(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. | ||
(a-5) This Section applies to electric utilities serving | ||
500,000 or less but more than 200,000 retail customers in this | ||
State. Through December 31, 2017, this Section also applies to | ||
electric utilities serving more than 500,000 retail customers | ||
in the State. | ||
(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. |
Electric utilities may comply with this subsection (b) by | ||
meeting the annual incremental savings goal in the applicable | ||
year or by showing that the total cumulative annual savings | ||
within a 3-year planning period associated with measures | ||
implemented after May 31, 2014 was equal to the sum of each | ||
annual incremental savings requirement from May 31, 2014 | ||
through the end of the applicable year. | ||
(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 over a 3-year planning period by an amount | ||
necessary to limit the estimated average annual 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 rebate agreements, grants, or |
contracts for energy efficiency measures and provided | ||
supporting documentation for those rebate agreements, grants, | ||
and contracts to the utility. The Department is authorized to | ||
adopt any rules necessary and prescribe procedures in order to | ||
ensure compliance by applicants in carrying out the purposes of | ||
rebate agreements for energy efficiency measures implemented | ||
by the Department made under this Section. | ||
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, shall be deposited into the | ||
Energy Efficiency Portfolio Standards Fund, 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 1, an energy efficiency and | ||
demand-response plan with the Commission. If a utility does not |
file such a plan by September 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 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.
| ||
(l)(1) The energy efficiency and demand-response plans of | ||
electric utilities serving more than 500,000 retail customers | ||
in the State that were approved by the Commission on or before | ||
the effective date of this amendatory Act of the 99th General | ||
Assembly for the period June 1, 2014 through May 31, 2017 shall | ||
continue to be in force and effect through December 31, 2017 so | ||
that the energy efficiency programs set forth in those plans | ||
continue to be offered during the period June 1, 2017 through | ||
December 31, 2017. Each such utility is authorized to increase, | ||
on a pro rata basis, the energy savings goals and budgets | ||
approved in its plan to reflect the additional 7 months of the |
plan's operation, provided that such increase shall also | ||
incorporate reductions to goals and budgets to reflect the | ||
proportion of the utility's load attributable to customers who | ||
are exempt from this Section under subsection (m) of this | ||
Section. | ||
(2) If an electric utility serving more than 500,000 | ||
retail customers in the State filed with the Commission, | ||
under subsection (f) of this Section, its proposed energy | ||
efficiency and demand-response plan for the period June 1, | ||
2017 through May 31, 2020, and the Commission has not yet | ||
entered its final order approving such plan on or before | ||
the effective date of this amendatory Act of the 99th | ||
General Assembly, then the utility shall file a notice of | ||
withdrawal with the Commission, following such effective | ||
date, to withdraw the proposed energy efficiency and | ||
demand-response plan. Upon receipt of such notice, the | ||
Commission shall dismiss with prejudice any docket that had | ||
been initiated to investigate such plan, and the plan and | ||
the record related thereto shall not be the subject of any | ||
further hearing, investigation, or proceeding of any kind. | ||
(3) For those electric utilities that serve more than | ||
500,000 retail customers in the State, this amendatory Act | ||
of the 99th General Assembly preempts and supersedes any | ||
orders entered by the Commission that approved such | ||
utilities' energy efficiency and demand response plans for | ||
the period commencing June 1, 2017 and ending May 31, 2020. |
Any such orders shall be void, and the provisions of | ||
paragraph (1) of this subsection (l) shall apply. | ||
(m) Notwithstanding anything to the contrary, after May 31, | ||
2017, this Section does not apply to any retail customers of an | ||
electric utility that serves more than 3,000,000 retail | ||
customers in the State and whose total highest 30 minute demand | ||
was more than 10,000 kilowatts, or any retail customers of an | ||
electric utility that serves less than 3,000,000 retail | ||
customers but more than 500,000 retail customers in the State | ||
and whose total highest 15 minute demand was more than 10,000 | ||
kilowatts. For purposes of this subsection (m), "retail | ||
customer" has the meaning set forth in Section 16-102 of this | ||
Act. The criteria for determining whether this subsection (m) | ||
is applicable to a retail customer shall be based on the 12 | ||
consecutive billing periods prior to the start of the first | ||
year of each such multi-year plan. | ||
(Source: P.A. 97-616, eff. 10-26-11; 97-841, eff. 7-20-12; | ||
98-90, eff. 7-15-13.)
| ||
(220 ILCS 5/8-103B new) | ||
Sec. 8-103B. 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 expenditures 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 (c) 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" have the meanings set | ||
forth in the Illinois Power Agency Act. | ||
(a-5) This Section applies to electric utilities serving | ||
more than 500,000 retail customers in the State for those | ||
multi-year plans commencing after December 31, 2017. | ||
(b) For purposes of this Section, electric utilities | ||
subject to this Section that serve more than 3,000,000 retail | ||
customers in the State shall be deemed to have achieved a | ||
cumulative persisting annual savings of 6.6% from energy | ||
efficiency measures and programs implemented during the period | ||
beginning January 1, 2012 and ending December 31, 2017, which | ||
percent is based on the deemed average weather normalized sales | ||
of electric power and energy during calendar years 2014, 2015, | ||
and 2016 of 88,000,000 MWhs. For the purposes of this |
subsection (b) and subsection (b-5), the 88,000,000 MWhs of | ||
deemed electric power and energy sales shall be reduced by the | ||
number of MWhs equal to the sum of the annual consumption of | ||
customers that are exempt from subsections (a) through (j) of | ||
this Section under subsection (l) of this Section, as averaged | ||
across the calendar years 2014, 2015, and 2016. After 2017, the | ||
deemed value of cumulative persisting annual savings from | ||
energy efficiency measures and programs implemented during the | ||
period beginning January 1, 2012 and ending December 31, 2017, | ||
shall be reduced each year, as follows, and the applicable | ||
value shall be applied to and count toward the utility's | ||
achievement of the cumulative persisting annual savings goals | ||
set forth in subsection (b-5): | ||
(1) 5.8% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2018; | ||
(2) 5.2% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2019; | ||
(3) 4.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2020; | ||
(4) 4.0% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2021; | ||
(5) 3.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2022; | ||
(6) 3.1% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2023; | ||
(7) 2.8% deemed cumulative persisting annual savings |
for the year ending December 31, 2024; | ||
(8) 2.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2025; | ||
(9) 2.3% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2026; | ||
(10) 2.1% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2027; | ||
(11) 1.8% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2028; | ||
(12) 1.7% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2029; and | ||
(13) 1.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2030. | ||
For purposes of this Section, "cumulative persisting | ||
annual savings" means the total electric energy savings in a | ||
given year from measures installed in that year or in previous | ||
years, but no earlier than January 1, 2012, that are still | ||
operational and providing savings in that year because the | ||
measures have not yet reached the end of their useful lives. | ||
(b-5) Beginning in 2018, electric utilities subject to this | ||
Section that serve more than 3,000,000 retail customers in the | ||
State shall achieve the following cumulative persisting annual | ||
savings goals, as modified by subsection (f) of this Section | ||
and as compared to the deemed baseline of 88,000,000 MWhs of | ||
electric power and energy sales set forth in subsection (b), as | ||
reduced by the number of MWhs equal to the sum of the annual |
consumption of customers that are exempt from subsections (a) | ||
through (j) of this Section under subsection (l) of this | ||
Section as averaged across the calendar years 2014, 2015, and | ||
2016, through the implementation of energy efficiency measures | ||
during the applicable year and in prior years, but no earlier | ||
than January 1, 2012: | ||
(1) 7.8% cumulative persisting annual savings for the | ||
year ending December 31, 2018; | ||
(2) 9.1% cumulative persisting annual savings for the | ||
year ending December 31, 2019; | ||
(3) 10.4% cumulative persisting annual savings for the | ||
year ending December 31, 2020; | ||
(4) 11.8% cumulative persisting annual savings for the | ||
year ending December 31, 2021; | ||
(5) 13.1% cumulative persisting annual savings for the | ||
year ending December 31, 2022; | ||
(6) 14.4% cumulative persisting annual savings for the | ||
year ending December 31, 2023; | ||
(7) 15.7% cumulative persisting annual savings for the | ||
year ending December 31, 2024; | ||
(8) 17% cumulative persisting annual savings for the | ||
year ending December 31, 2025; | ||
(9) 17.9% cumulative persisting annual savings for the | ||
year ending December 31, 2026; | ||
(10) 18.8% cumulative persisting annual savings for | ||
the year ending December 31, 2027; |
(11) 19.7% cumulative persisting annual savings for | ||
the year ending December 31, 2028; | ||
(12) 20.6% cumulative persisting annual savings for | ||
the year ending December 31, 2029; and | ||
(13) 21.5% cumulative persisting annual savings for | ||
the year ending December 31, 2030. | ||
(b-10) For purposes of this Section, electric utilities | ||
subject to this Section that serve less than 3,000,000 retail | ||
customers but more than 500,000 retail customers in the State | ||
shall be deemed to have achieved a cumulative persisting annual | ||
savings of 6.6% from energy efficiency measures and programs | ||
implemented during the period beginning January 1, 2012 and | ||
ending December 31, 2017, which is based on the deemed average | ||
weather normalized sales of electric power and energy during | ||
calendar years 2014, 2015, and 2016 of 36,900,000 MWhs. For the | ||
purposes of this subsection (b-10) and subsection (b-15), the | ||
36,900,000 MWhs of deemed electric power and energy sales shall | ||
be reduced by the number of MWhs equal to the sum of the annual | ||
consumption of customers that are exempt from subsections (a) | ||
through (j) of this Section under subsection (l) of this | ||
Section, as averaged across the calendar years 2014, 2015, and | ||
2016. After 2017, the deemed value of cumulative persisting | ||
annual savings from energy efficiency measures and programs | ||
implemented during the period beginning January 1, 2012 and | ||
ending December 31, 2017, shall be reduced each year, as | ||
follows, and the applicable value shall be applied to and count |
toward the utility's achievement of the cumulative persisting | ||
annual savings goals set forth in subsection (b-15): | ||
(1) 5.8% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2018; | ||
(2) 5.2% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2019; | ||
(3) 4.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2020; | ||
(4) 4.0% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2021; | ||
(5) 3.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2022; | ||
(6) 3.1% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2023; | ||
(7) 2.8% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2024; | ||
(8) 2.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2025; | ||
(9) 2.3% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2026; | ||
(10) 2.1% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2027; | ||
(11) 1.8% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2028; | ||
(12) 1.7% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2029; and |
(13) 1.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2030. | ||
(b-15) Beginning in 2018, electric utilities subject to | ||
this Section that serve less than 3,000,000 retail customers | ||
but more than 500,000 retail customers in the State shall | ||
achieve the following cumulative persisting annual savings | ||
goals, as modified by subsection (b-20) and subsection (f) of | ||
this Section and as compared to the deemed baseline as reduced | ||
by the number of MWhs equal to the sum of the annual | ||
consumption of customers that are exempt from subsections (a) | ||
through (j) of this Section under subsection (l) of this | ||
Section as averaged across the calendar years 2014, 2015, and | ||
2016, through the implementation of energy efficiency measures | ||
during the applicable year and in prior years, but no earlier | ||
than January 1, 2012: | ||
(1) 7.4% cumulative persisting annual savings for the | ||
year ending December 31, 2018; | ||
(2) 8.2% cumulative persisting annual savings for the | ||
year ending December 31, 2019; | ||
(3) 9.0% cumulative persisting annual savings for the | ||
year ending December 31, 2020; | ||
(4) 9.8% cumulative persisting annual savings for the | ||
year ending December 31, 2021; | ||
(5) 10.6% cumulative persisting annual savings for the | ||
year ending December 31, 2022; | ||
(6) 11.4% cumulative persisting annual savings for the |
year ending December 31, 2023; | ||
(7) 12.2% cumulative persisting annual savings for the | ||
year ending December 31, 2024; | ||
(8) 13% cumulative persisting annual savings for the | ||
year ending December 31, 2025; | ||
(9) 13.6% cumulative persisting annual savings for the | ||
year ending December 31, 2026; | ||
(10) 14.2% cumulative persisting annual savings for | ||
the year ending December 31, 2027; | ||
(11) 14.8% cumulative persisting annual savings for | ||
the year ending December 31, 2028; | ||
(12) 15.4% cumulative persisting annual savings for | ||
the year ending December 31, 2029; and | ||
(13) 16% cumulative persisting annual savings for the | ||
year ending December 31, 2030. | ||
The difference between the cumulative persisting annual | ||
savings goal for the applicable calendar year and the | ||
cumulative persisting annual savings goal for the immediately | ||
preceding calendar year is 0.8% for the period of January 1, | ||
2018 through December 31, 2025 and 0.6% for the period of | ||
January 1, 2026 through December 31, 2030. | ||
(b-20) Each electric utility subject to this Section may | ||
include cost-effective voltage optimization measures in its | ||
plans submitted under subsections (f) and (g) of this Section, | ||
and the costs incurred by a utility to implement the measures | ||
under a Commission-approved plan shall be recovered under the |
provisions of Article IX or Section 16-108.5 of this Act. For | ||
purposes of this Section, the measure life of voltage | ||
optimization measures shall be 15 years. The measure life | ||
period is independent of the depreciation rate of the voltage | ||
optimization assets deployed. | ||
Within 270 days after the effective date of this amendatory | ||
Act of the 99th General Assembly, an electric utility that | ||
serves less than 3,000,000 retail customers but more than | ||
500,000 retail customers in the State shall file a plan with | ||
the Commission that identifies the cost-effective voltage | ||
optimization investment the electric utility plans to | ||
undertake through December 31, 2024. The Commission, after | ||
notice and hearing, shall approve or approve with modification | ||
the plan within 120 days after the plan's filing and, in the | ||
order approving or approving with modification the plan, the | ||
Commission shall adjust the applicable cumulative persisting | ||
annual savings goals set forth in subsection (b-15) to reflect | ||
any amount of cost-effective energy savings approved by the | ||
Commission that is greater than or less than the following | ||
cumulative persisting annual savings values attributable to | ||
voltage optimization for the applicable year: | ||
(1) 0.0% of cumulative persisting annual savings for | ||
the year ending December 31, 2018; | ||
(2) 0.17% of cumulative persisting annual savings for | ||
the year ending December 31, 2019; | ||
(3) 0.17% of cumulative persisting annual savings for |
the year ending December 31, 2020; | ||
(4) 0.33% of cumulative persisting annual savings for | ||
the year ending December 31, 2021; | ||
(5) 0.5% of cumulative persisting annual savings for | ||
the year ending December 31, 2022; | ||
(6) 0.67% of cumulative persisting annual savings for | ||
the year ending December 31, 2023; | ||
(7) 0.83% of cumulative persisting annual savings for | ||
the year ending December 31, 2024; and | ||
(8) 1.0% of cumulative persisting annual savings for | ||
the year ending December 31, 2025. | ||
(b-25) In the event an electric utility jointly offers an | ||
energy efficiency measure or program with a gas utility under | ||
plans approved under this Section and Section 8-104 of this | ||
Act, the electric utility may continue offering the program, | ||
including the gas energy efficiency measures, in the event the | ||
gas utility discontinues funding the program. In that event, | ||
the energy savings value associated with such other fuels shall | ||
be converted to electric energy savings on an equivalent Btu | ||
basis for the premises. However, the electric utility shall | ||
prioritize programs for low-income residential customers to | ||
the extent practicable. An electric utility may recover the | ||
costs of offering the gas energy efficiency measures under this | ||
subsection (b-25). | ||
For those energy efficiency measures or programs that save | ||
both electricity and other fuels but are not jointly offered |
with a gas utility under plans approved under this Section and | ||
Section 8-104 or not offered with an affiliated gas utility | ||
under paragraph (6) of subsection (f) of Section 8-104 of this | ||
Act, the electric utility may count savings of fuels other than | ||
electricity toward the achievement of its annual savings goal, | ||
and the energy savings value associated with such other fuels | ||
shall be converted to electric energy savings on an equivalent | ||
Btu basis at the premises. | ||
In no event shall more than 10% of each year's applicable | ||
annual incremental goal as defined in paragraph (7) of | ||
subsection (g) of this Section be met through savings of fuels | ||
other than electricity. | ||
(c) Electric utilities shall be responsible for overseeing | ||
the design, development, and filing of energy efficiency plans | ||
with the Commission and may, as part of that implementation, | ||
outsource various aspects of program development and | ||
implementation. A minimum of 10%, for electric utilities that | ||
serve more than 3,000,000 retail customers in the State, and a | ||
minimum of 7%, for electric utilities that serve less than | ||
3,000,000 retail customers but more than 500,000 retail | ||
customers in the State, of the utility's entire portfolio | ||
funding level for a given year shall be used to procure | ||
cost-effective energy efficiency measures from units of local | ||
government, municipal corporations, school districts, public | ||
housing, and community college districts, provided that a | ||
minimum percentage of available funds shall be used to procure |
energy efficiency from public housing, which percentage shall | ||
be equal to public housing's share of public building energy | ||
consumption. | ||
The utilities shall also implement energy efficiency | ||
measures targeted at low-income households, which, for | ||
purposes of this Section, shall be defined as households at or | ||
below 80% of area median income, and expenditures to implement | ||
the measures shall be no less than $25,000,000 per year for | ||
electric utilities that serve more than 3,000,000 retail | ||
customers in the State and no less than $8,350,000 per year for | ||
electric utilities that serve less than 3,000,000 retail | ||
customers but more than 500,000 retail customers in the State. | ||
Each electric utility shall assess opportunities to | ||
implement cost-effective energy efficiency measures and | ||
programs through a public housing authority or authorities | ||
located in its service territory. If such opportunities are | ||
identified, the utility shall propose such measures and | ||
programs to address the opportunities. Expenditures to address | ||
such opportunities shall be credited toward the minimum | ||
procurement and expenditure requirements set forth in this | ||
subsection (c). | ||
Implementation of energy efficiency measures and programs | ||
targeted at low-income households should be contracted, when it | ||
is practicable, to independent third parties that have | ||
demonstrated capabilities to serve such households, with a | ||
preference for not-for-profit entities and government agencies |
that have existing relationships with or experience serving | ||
low-income communities in the State. | ||
Each electric utility shall develop and implement | ||
reporting procedures that address and assist in determining the | ||
amount of energy savings that can be applied to the low-income | ||
procurement and expenditure requirements set forth in this | ||
subsection (c). | ||
The electric utilities shall also convene a low-income | ||
energy efficiency advisory committee to assist in the design | ||
and evaluation of the low-income energy efficiency programs. | ||
The committee shall be comprised of the electric utilities | ||
subject to the requirements of this Section, the gas utilities | ||
subject to the requirements of Section 8-104 of this Act, the | ||
utilities' low-income energy efficiency implementation | ||
contractors, and representatives of community-based | ||
organizations. | ||
(d) Notwithstanding any other provision of law to the | ||
contrary, a utility providing approved energy efficiency | ||
measures and, if applicable, demand-response measures in the | ||
State shall be permitted to recover all reasonable and | ||
prudently incurred costs of those measures from all retail | ||
customers, except as provided in subsection (l) of this | ||
Section, as follows, provided that nothing in this subsection | ||
(d) permits the double recovery of such costs from customers: | ||
(1) The utility may recover its costs 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. To enable the financing of the | ||
incremental capital expenditures, including regulatory | ||
assets, for electric utilities that serve less than | ||
3,000,000 retail customers but more than 500,000 retail | ||
customers in the State, the utility's actual year-end | ||
capital structure that includes a common equity ratio, | ||
excluding goodwill, of up to and including 50% of the total | ||
capital structure shall be deemed reasonable and used to | ||
set rates. | ||
(2) A utility may recover its costs through an energy | ||
efficiency formula rate approved by the Commission under a | ||
filing under subsections (f) and (g) of this Section, 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. The energy efficiency formula | ||
rate shall be implemented through a tariff filed with the |
Commission under subsections (f) and (g) of this Section | ||
that is consistent with the provisions of this paragraph | ||
(2) and that shall be applicable to all delivery services | ||
customers. The Commission shall conduct an investigation | ||
of the tariff in a manner consistent with the provisions of | ||
this paragraph (2), subsections (f) and (g) of this | ||
Section, and the provisions of Article IX of this Act to | ||
the extent they do not conflict with this paragraph (2). | ||
The energy efficiency formula rate approved by the | ||
Commission shall remain in effect at the discretion of the | ||
utility and shall do the following: | ||
(A) Provide for the recovery of the utility's | ||
actual costs incurred under this Section 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. | ||
(B) Reflect the utility's actual year-end capital | ||
structure for the applicable calendar year, excluding | ||
goodwill, subject to a determination of prudence and | ||
reasonableness consistent with Commission practice and | ||
law. To enable the financing of the incremental capital | ||
expenditures, including regulatory assets, for | ||
electric utilities that serve less than 3,000,000 |
retail customers but more than 500,000 retail | ||
customers in the State, a participating electric | ||
utility's actual year-end capital structure that | ||
includes a common equity ratio, excluding goodwill, of | ||
up to and including 50% of the total capital structure | ||
shall be deemed reasonable and used to set rates. | ||
(C) Include a cost of equity, which shall be | ||
calculated as the sum of the following: | ||
(i) 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 | ||
(ii) 580 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 (2). | ||
(D) Permit and set forth protocols, subject to a | ||
determination of prudence and reasonableness | ||
consistent with Commission practice and law, for the |
following: | ||
(i) 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; however, this protocol | ||
shall not apply if such expense related to costs | ||
incurred under this Section is recovered under | ||
Article IX or Section 16-108.5 of this Act; | ||
incentive compensation expense that is based on | ||
net income or an affiliate's earnings per share | ||
shall not be recoverable under the
energy | ||
efficiency formula rate; | ||
(ii) recovery of pension and other | ||
post-employment benefits expense, provided that | ||
such costs are supported by an actuarial study; | ||
however, this protocol shall not apply if such | ||
expense related to costs incurred under this | ||
Section is recovered under Article IX or Section | ||
16-108.5 of this Act; | ||
(iii) recovery of existing regulatory assets | ||
over the periods previously authorized by the | ||
Commission; | ||
(iv) as described in subsection (e), | ||
amortization of costs incurred under this Section; |
and | ||
(v) projected, weather normalized billing | ||
determinants for the applicable rate year. | ||
(E) Provide for an annual reconciliation, as | ||
described in paragraph (3) of this subsection (d), less | ||
any deferred taxes related to the reconciliation, with | ||
interest at an annual rate of return equal to the | ||
utility's weighted average cost of capital, including | ||
a revenue conversion factor calculated to recover or | ||
refund all additional income taxes that may be payable | ||
or receivable as a result of that return, of the energy | ||
efficiency revenue requirement reflected in rates for | ||
each calendar year, beginning with the calendar year in | ||
which the utility files its energy efficiency formula | ||
rate tariff under this paragraph (2), 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, the | ||
projected costs to be incurred by the utility during the | ||
rate year under the utility's multi-year plan approved | ||
under subsections (f) and (g) of this Section, including, | ||
but not limited to, the projected capital investment costs | ||
and projected regulatory asset balances with | ||
correspondingly updated depreciation and amortization | ||
reserves and expense, that shall populate the energy |
efficiency formula rate and set the initial rates under the | ||
formula. | ||
The Commission shall review the proposed tariff in | ||
conjunction with its review of a proposed multi-year plan, | ||
as specified in paragraph (5) of subsection (g) of this | ||
Section. The 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 beginning | ||
with the January monthly billing period following the | ||
Commission's approval. | ||
The tariff's rate design and cost allocation across | ||
customer classes shall be consistent with the utility's | ||
automatic adjustment clause tariff in effect on the | ||
effective date of this amendatory Act of the 99th General | ||
Assembly; however, the Commission may revise the tariff's | ||
rate design and cost allocation in subsequent proceedings | ||
under paragraph (3) of this subsection (d). | ||
If the energy efficiency formula rate is terminated, | ||
the then current rates shall remain in effect until such | ||
time as the energy efficiency costs are incorporated into | ||
new rates that are set under this subsection (d) or Article | ||
IX of this Act, subject to retroactive rate adjustment, | ||
with interest, to reconcile rates charged with actual |
costs. | ||
(3) The provisions of this paragraph (3) shall only | ||
apply to an electric utility that has elected to file an | ||
energy efficiency formula rate under paragraph (2) of this | ||
subsection (d). Subsequent to the Commission's issuance of | ||
an order approving the utility's energy efficiency formula | ||
rate structure and protocols, and initial rates under | ||
paragraph (2) of this subsection (d), the utility shall | ||
file, on or before June 1 of each year, with the Chief | ||
Clerk of the Commission its updated cost inputs to the | ||
energy efficiency formula rate for the applicable rate year | ||
and the corresponding new charges, as well as the | ||
information described in paragraph (9) of subsection (g) of | ||
this Section. Each such filing shall conform to the | ||
following requirements and include the following | ||
information: | ||
(A) The inputs to the energy efficiency formula | ||
rate for the applicable rate year shall be based on the | ||
projected costs to be incurred by the utility during | ||
the rate year under the utility's multi-year plan | ||
approved under subsections (f) and (g) of this Section, | ||
including, but not limited to, projected capital | ||
investment costs and projected regulatory asset | ||
balances with correspondingly updated depreciation and | ||
amortization reserves and expense. The filing shall | ||
also include a reconciliation of the energy efficiency |
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 (determined using a year-end rate base) that | ||
uses amounts 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 calculated at a rate equal | ||
to the utility's weighted average cost of capital | ||
approved by the Commission for the prior rate year, the | ||
charges for the applicable rate year. Such | ||
over-collection or under-collection shall be adjusted | ||
to remove any deferred taxes related to the | ||
reconciliation, for purposes of calculating interest | ||
at an annual rate of return equal to the utility's | ||
weighted average cost of capital approved by the | ||
Commission for the prior rate year, including a revenue | ||
conversion factor calculated to recover or refund all | ||
additional income taxes that may be payable or | ||
receivable as a result of that return. 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 subparagraph (E) of paragraph (2) of this | ||
subsection (d). | ||
Notwithstanding any other provision of law to the | ||
contrary, the intent of the reconciliation is to | ||
ultimately reconcile both the revenue requirement | ||
reflected in rates for each calendar year, beginning | ||
with the calendar year in which the utility files its | ||
energy efficiency formula rate tariff under paragraph | ||
(2) of this subsection (d), with what the revenue | ||
requirement determined using a year-end rate base for | ||
the applicable calendar year would have been had the | ||
actual cost information for the applicable calendar | ||
year been available at the filing date. | ||
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. | ||
(B) 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 under this | ||
paragraph (3). | ||
(C) The filing shall include relevant and | ||
necessary data and documentation for the applicable | ||
rate year. Normalization adjustments shall not be | ||
required. | ||
Within 45 days after the utility files its annual | ||
update of cost inputs to the energy efficiency formula | ||
rate, the Commission shall with reasonable notice, | ||
initiate a proceeding concerning whether the projected | ||
costs to be incurred by the utility and recovered during | ||
the applicable rate year, and that are reflected in the | ||
inputs to the energy efficiency formula rate, are | ||
consistent with the utility's approved multi-year plan | ||
under subsections (f) and (g) of this Section and whether | ||
the costs incurred by the utility during the prior rate | ||
year were prudent and reasonable. The Commission shall also | ||
have the authority to investigate the information and data | ||
described in paragraph (9) of subsection (g) of this | ||
Section, including the proposed adjustment to the | ||
utility's return on equity component of its weighted | ||
average cost of capital. During the course of the | ||
proceeding, 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 of Practice | ||
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, during the proceeding as it would apply in a | ||
proceeding 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 | ||
paragraph (3) to consider or order any changes to the | ||
structure or protocols of the energy efficiency formula | ||
rate approved under paragraph (2) of this subsection (d). | ||
In a proceeding under this paragraph (3), the Commission | ||
shall enter its order no later than the earlier of 195 days | ||
after the utility's filing of its annual update of cost | ||
inputs to the energy efficiency formula rate or December | ||
15. The utility's proposed return on equity calculation, as | ||
described in paragraphs (7) through (9) of subsection (g) | ||
of this Section, shall be deemed the final, approved | ||
calculation on December 15 of the year in which it is filed | ||
unless the Commission enters an order on or before December | ||
15, after notice and hearing, that modifies such | ||
calculation consistent with this Section. The Commission's | ||
determinations of the prudence and reasonableness of the | ||
costs incurred, and determination of such return on equity |
calculation, 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; however, nothing in this paragraph (3) | ||
shall prohibit a party from petitioning the Commission to | ||
rehear or appeal to the courts the order under the | ||
provisions of this Act. | ||
(e)
Beginning on the effective date of this amendatory Act | ||
of the 99th General Assembly, a utility subject to the | ||
requirements of this Section may elect to defer, as a | ||
regulatory asset, up to the full amount of its expenditures | ||
incurred under this Section for each annual period, including, | ||
but not limited to, any expenditures incurred above the funding | ||
level set by subsection (f) of this Section for a given year. | ||
The total expenditures deferred as a regulatory asset in a | ||
given year shall be amortized and recovered over a period that | ||
is equal to the weighted average of the energy efficiency | ||
measure lives implemented for that year that are reflected in | ||
the regulatory asset. The unamortized balance shall be | ||
recognized as of December 31 for a given year. The utility | ||
shall also earn a return on the total of the unamortized | ||
balances of all of the energy efficiency regulatory assets, | ||
less any deferred taxes related to those unamortized balances, | ||
at an annual rate equal to the utility's weighted average cost | ||
of capital that includes, based on a year-end capital |
structure, the utility's actual cost of debt for the applicable | ||
calendar year and a cost of equity, which shall be calculated | ||
as the sum of the (i) 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 (ii) 580 basis points, including a | ||
revenue conversion factor calculated to recover or refund all | ||
additional income taxes that may be payable or receivable as a | ||
result of that return. Capital investment costs shall be | ||
depreciated and recovered over their useful lives consistent | ||
with generally accepted accounting principles. The weighted | ||
average cost of capital shall be applied to the capital | ||
investment cost balance, less any accumulated depreciation and | ||
accumulated deferred income taxes, as of December 31 for a | ||
given year. | ||
When an electric utility creates a regulatory asset under | ||
the provisions of this Section, the costs are recovered over a | ||
period during which customers also receive a benefit which is | ||
in the public interest. Accordingly, it is the intent of the | ||
General Assembly that an electric utility that elects to create | ||
a regulatory asset under the provisions of this Section shall | ||
recover all of the associated costs as set forth in this | ||
Section. After the Commission has approved the prudence and | ||
reasonableness of the costs that comprise the regulatory asset, | ||
the electric utility shall be permitted to recover all such |
costs, and the value and recoverability through rates of the | ||
associated regulatory asset shall not be limited, altered, | ||
impaired, or reduced. | ||
(f) Beginning in 2017, each electric utility shall file an | ||
energy efficiency plan with the Commission to meet the energy | ||
efficiency standards for the next applicable multi-year period | ||
beginning January 1 of the year following the filing, according | ||
to the schedule set forth in paragraphs (1) through (3) of this | ||
subsection (f). If a utility does not file such a plan on or | ||
before the applicable filing deadline for the plan, it shall | ||
face a penalty of $100,000 per day until the plan is filed. | ||
(1) No later than 30 days after the effective date of | ||
this amendatory Act of the 99th General Assembly or May 1, | ||
2017, whichever is later, each electric utility shall file | ||
a 4-year energy efficiency plan commencing on January 1, | ||
2018 that is designed to achieve the cumulative persisting | ||
annual savings goals specified in paragraphs (1) through | ||
(4) of subsection (b-5) of this Section or in paragraphs | ||
(1) through (4) of subsection (b-15) of this Section, as | ||
applicable, through implementation of energy efficiency | ||
measures; however, the goals may be reduced if the | ||
utility's expenditures are limited pursuant to subsection | ||
(m) of this Section or, for a utility that serves less than | ||
3,000,000 retail customers, if each of the following | ||
conditions are met: (A) the plan's analysis and forecasts | ||
of the utility's ability to acquire energy savings |
demonstrate that achievement of such goals is not cost | ||
effective; and (B) the amount of energy savings achieved by | ||
the utility as determined by the independent evaluator for | ||
the most recent year for which savings have been evaluated | ||
preceding the plan filing was less than the average annual | ||
amount of savings required to achieve the goals for the | ||
applicable 4-year plan period. Except as provided in | ||
subsection (m) of this Section, annual increases in | ||
cumulative persisting annual savings goals during the | ||
applicable 4-year plan period shall not be reduced to | ||
amounts that are less than the maximum amount of cumulative | ||
persisting annual savings that is forecast to be | ||
cost-effectively achievable during the 4-year plan period. | ||
The Commission shall review any proposed goal reduction as | ||
part of its review and approval of the utility's proposed | ||
plan. | ||
(2) No later than March 1, 2021, each electric utility | ||
shall file a 4-year energy efficiency plan commencing on | ||
January 1, 2022 that is designed to achieve the cumulative | ||
persisting annual savings goals specified in paragraphs | ||
(5) through (8) of subsection (b-5) of this Section or in | ||
paragraphs (5) through (8) of subsection (b-15) of this | ||
Section, as applicable, through implementation of energy | ||
efficiency measures; however, the goals may be reduced if | ||
the utility's expenditures are limited pursuant to | ||
subsection (m) of this Section or, each of the following |
conditions are met: (A) the plan's analysis and forecasts | ||
of the utility's ability to acquire energy savings | ||
demonstrate that achievement of such goals is not cost | ||
effective; and (B) the amount of energy savings achieved by | ||
the utility as determined by the independent evaluator for | ||
the most recent year for which savings have been evaluated | ||
preceding the plan filing was less than the average annual | ||
amount of savings required to achieve the goals for the | ||
applicable 4-year plan period. Except as provided in | ||
subsection (m) of this Section, annual increases in | ||
cumulative persisting annual savings goals during the | ||
applicable 4-year plan period shall not be reduced to | ||
amounts that are less than the maximum amount of cumulative | ||
persisting annual savings that is forecast to be | ||
cost-effectively achievable during the 4-year plan period. | ||
The Commission shall review any proposed goal reduction as | ||
part of its review and approval of the utility's proposed | ||
plan. | ||
(3) No later than March 1, 2025, each electric utility | ||
shall file a 5-year energy efficiency plan commencing on | ||
January 1, 2026 that is designed to achieve the cumulative | ||
persisting annual savings goals specified in paragraphs | ||
(9) through (13) of subsection (b-5) of this Section or in | ||
paragraphs (9) through (13) of subsection (b-15) of this | ||
Section, as applicable, through implementation of energy | ||
efficiency measures; however, the goals may be reduced if |
the utility's expenditures are limited pursuant to | ||
subsection (m) of this Section or, each of the following | ||
conditions are met: (A) the plan's analysis and forecasts | ||
of the utility's ability to acquire energy savings | ||
demonstrate that achievement of such goals is not cost | ||
effective; and (B) the amount of energy savings achieved by | ||
the utility as determined by the independent evaluator for | ||
the most recent year for which savings have been evaluated | ||
preceding the plan filing was less than the average annual | ||
amount of savings required to achieve the goals for the | ||
applicable 5-year plan period. Except as provided in | ||
subsection (m) of this Section, annual increases in | ||
cumulative persisting annual savings goals during the | ||
applicable 5-year plan period shall not be reduced to | ||
amounts that are less than the maximum amount of cumulative | ||
persisting annual savings that is forecast to be | ||
cost-effectively achievable during the 5-year plan period. | ||
The Commission shall review any proposed goal reduction as | ||
part of its review and approval of the utility's proposed | ||
plan. | ||
Each utility's plan shall set forth the utility's proposals | ||
to meet the energy efficiency standards identified in | ||
subsection (b-5) or (b-15), as applicable and as such standards | ||
may have been modified under this subsection (f), taking into | ||
account the unique circumstances of the utility's service | ||
territory. For those plans commencing on January 1, 2018, the |
Commission shall seek public comment on the utility's plan and | ||
shall issue an order approving or disapproving each plan no | ||
later than August 31, 2017, or 105 days after the effective | ||
date of this amendatory Act of the 99th General Assembly, | ||
whichever is later. For those plans commencing after December | ||
31, 2021, the Commission shall seek public comment on the | ||
utility's plan and shall issue an order approving or | ||
disapproving each plan within 6 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. | ||
(g) In submitting proposed plans and funding levels under | ||
subsection (f) of this Section to meet the savings goals | ||
identified in subsection (b-5) or (b-15) of this Section, as | ||
applicable, the utility shall: | ||
(1) Demonstrate that its proposed energy efficiency | ||
measures will achieve the applicable requirements that are | ||
identified in subsection (b-5) or (b-15) of this Section, |
as modified by subsection (f) of this Section. | ||
(2) Present specific proposals to implement new | ||
building and appliance standards that have been placed into | ||
effect. | ||
(3) Demonstrate that its overall portfolio of | ||
measures, not including low-income programs described in | ||
subsection (c) of this Section, is cost-effective using the | ||
total resource cost test or complies with paragraphs (1) | ||
through (3) of subsection (f) of this Section and | ||
represents a diverse cross-section of opportunities for | ||
customers of all rate classes, other than those customers | ||
described in subsection (l) of this Section, to participate | ||
in the programs. Individual measures need not be cost | ||
effective. | ||
(4) Present a third-party energy efficiency | ||
implementation program subject to the following | ||
requirements: | ||
(A) beginning with the year commencing January 1, | ||
2019, electric utilities that serve more than | ||
3,000,000 retail customers in the State shall fund | ||
third-party energy efficiency programs in an amount | ||
that is no less than $25,000,000 per year, and electric | ||
utilities that serve less than 3,000,000 retail | ||
customers but more than 500,000 retail customers in the | ||
State shall fund third-party energy efficiency | ||
programs in an amount that is no less than $8,350,000 |
per year; | ||
(B) during 2018, the utility shall conduct a | ||
solicitation process for purposes of requesting | ||
proposals from third-party vendors for those | ||
third-party energy efficiency programs to be offered | ||
during one or more of the years commencing January 1, | ||
2019, January 1, 2020, and January 1, 2021; for those | ||
multi-year plans commencing on January 1, 2022 and | ||
January 1, 2026, the utility shall conduct a | ||
solicitation process during 2021 and 2025, | ||
respectively, for purposes of requesting proposals | ||
from third-party vendors for those third-party energy | ||
efficiency programs to be offered during one or more | ||
years of the respective multi-year plan period; for | ||
each solicitation process, the utility shall identify | ||
the sector, technology, or geographical area for which | ||
it is seeking requests for proposals; | ||
(C) the utility shall propose the bidder | ||
qualifications, performance measurement process, and | ||
contract structure, which must include a performance | ||
payment mechanism and general terms and conditions; | ||
the proposed qualifications, process, and structure | ||
shall be subject to Commission approval; and | ||
(D) the utility shall retain an independent third | ||
party to score the proposals received through the | ||
solicitation process described in this paragraph (4), |
rank them according to their cost per lifetime | ||
kilowatt-hours saved, and assemble the portfolio of | ||
third-party programs. | ||
The electric utility shall recover all costs | ||
associated with Commission-approved, third-party | ||
administered programs regardless of the success of those | ||
programs. | ||
(4.5)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 continues until December 31, | ||
2026. | ||
(5) Include a proposed or revised cost-recovery tariff | ||
mechanism, as provided for under subsection (d) of this | ||
Section, 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. | ||
(6) Provide for an annual independent evaluation of the | ||
performance of the cost-effectiveness of the utility's | ||
portfolio of measures, as well as a full review of the | ||
multi-year plan 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. | ||
(7) For electric utilities that serve more than | ||
3,000,000 retail customers in the State: | ||
(A) Through December 31, 2025, provide for an | ||
adjustment to the return on equity component of the | ||
utility's weighted average cost of capital calculated | ||
under subsection (d) of this Section: | ||
(i) If the independent evaluator determines | ||
that the utility achieved a cumulative persisting | ||
annual savings that is less than the applicable | ||
annual incremental goal, then the return on equity | ||
component shall be reduced by a maximum of 200 | ||
basis points in the event that the utility achieved | ||
no more than 75% of such goal. If the utility | ||
achieved more than 75% of the applicable annual | ||
incremental goal but less than 100% of such goal, | ||
then the return on equity component shall be | ||
reduced by 8 basis points for each percent by which | ||
the utility failed to achieve the goal. | ||
(ii) If the independent evaluator determines | ||
that the utility achieved a cumulative persisting | ||
annual savings that is more than the applicable | ||
annual incremental goal, then the return on equity | ||
component shall be increased by a maximum of 200 |
basis points in the event that the utility achieved | ||
at least 125% of such goal. If the utility achieved | ||
more than 100% of the applicable annual | ||
incremental goal but less than 125% of such goal, | ||
then the return on equity component shall be | ||
increased by 8 basis points for each percent by | ||
which the utility achieved above the goal. If the | ||
applicable annual incremental goal was reduced | ||
under paragraphs (1) or (2) of subsection (f) of | ||
this Section, then the following adjustments shall | ||
be made to the calculations described in this item | ||
(ii): | ||
(aa) the calculation for determining | ||
achievement that is at least 125% of the | ||
applicable annual incremental goal shall use | ||
the unreduced applicable annual incremental | ||
goal to set the value; and | ||
(bb) the calculation for determining | ||
achievement that is less than 125% but more | ||
than 100% of the applicable annual incremental | ||
goal shall use the reduced applicable annual | ||
incremental goal to set the value for 100% | ||
achievement of the goal and shall use the | ||
unreduced goal to set the value for 125% | ||
achievement. The 8 basis point value shall also | ||
be modified, as necessary, so that the 200 |
basis points are evenly apportioned among each | ||
percentage point value between 100% and 125% | ||
achievement. | ||
(B) For the period January 1, 2026 through December | ||
31, 2030, provide for an adjustment to the return on | ||
equity component of the utility's weighted average | ||
cost of capital calculated under subsection (d) of this | ||
Section: | ||
(i) If the independent evaluator determines | ||
that the utility achieved a cumulative persisting | ||
annual savings that is less than the applicable | ||
annual incremental goal, then the return on equity | ||
component shall be reduced by a maximum of 200 | ||
basis points in the event that the utility achieved | ||
no more than 66% of such goal. If the utility | ||
achieved more than 66% of the applicable annual | ||
incremental goal but less than 100% of such goal, | ||
then the return on equity component shall be | ||
reduced by 6 basis points for each percent by which | ||
the utility failed to achieve the goal. | ||
(ii) If the independent evaluator determines | ||
that the utility achieved a cumulative persisting | ||
annual savings that is more than the applicable | ||
annual incremental goal, then the return on equity | ||
component shall be increased by a maximum of 200 | ||
basis points in the event that the utility achieved |
at least 134% of such goal. If the utility achieved | ||
more than 100% of the applicable annual | ||
incremental goal but less than 134% of such goal, | ||
then the return on equity component shall be | ||
increased by 6 basis points for each percent by | ||
which the utility achieved above the goal. If the | ||
applicable annual incremental goal was reduced | ||
under paragraph (3) of subsection (f) of this | ||
Section, then the following adjustments shall be | ||
made to the calculations described in this item | ||
(ii): | ||
(aa) the calculation for determining | ||
achievement that is at least 134% of the | ||
applicable annual incremental goal shall use | ||
the unreduced applicable annual incremental | ||
goal to set the value; and | ||
(bb) the calculation for determining | ||
achievement that is less than 134% but more | ||
than 100% of the applicable annual incremental | ||
goal shall use the reduced applicable annual | ||
incremental goal to set the value for 100% | ||
achievement of the goal and shall use the | ||
unreduced goal to set the value for 134% | ||
achievement. The 6 basis point value shall also | ||
be modified, as necessary, so that the 200 | ||
basis points are evenly apportioned among each |
percentage point value between 100% and 134% | ||
achievement. | ||
(7.5) For purposes of this Section, the term | ||
"applicable
annual incremental goal" means the difference | ||
between the
cumulative persisting annual savings goal for | ||
the calendar
year that is the subject of the independent | ||
evaluator's
determination and the cumulative persisting | ||
annual savings
goal for the immediately preceding calendar | ||
year, as such
goals are defined in subsections (b-5) and | ||
(b-15) of this
Section and as these goals may have been | ||
modified as
provided for under subsection (b-20) and | ||
paragraphs (1)
through (3) of subsection (f) of this | ||
Section. Under
subsections (b), (b-5), (b-10), and (b-15) | ||
of this Section,
a utility must first replace energy | ||
savings from measures
that have reached the end of their | ||
measure lives and would
otherwise have to be replaced to | ||
meet the applicable
savings goals identified in subsection | ||
(b-5) or (b-15) of this Section before any progress towards | ||
achievement of its
applicable annual incremental goal may | ||
be counted.
Notwithstanding anything else set forth in this | ||
Section,
the difference between the actual annual | ||
incremental
savings achieved in any given year, including | ||
the
replacement of energy savings from measures that have
| ||
expired, and the applicable annual incremental goal shall
| ||
not affect adjustments to the return on equity for
| ||
subsequent calendar years under this subsection (g). |
(8) For electric utilities that serve less than | ||
3,000,000 retail customers but more than 500,000 retail | ||
customers in the State: | ||
(A) Through December 31, 2025, the applicable | ||
annual incremental goal shall be compared to the annual | ||
incremental savings as determined by the independent | ||
evaluator. | ||
(i) The return on equity component shall be | ||
reduced by 8 basis points for each percent by which | ||
the utility did not achieve 84.4% of the applicable | ||
annual incremental goal. | ||
(ii) The return on equity component shall be | ||
increased by 8 basis points for each percent by | ||
which the utility exceeded 100% of the applicable | ||
annual incremental goal. | ||
(iii) The return on equity component shall not | ||
be increased or decreased if the annual | ||
incremental savings as determined by the | ||
independent evaluator is greater than 84.4% of the | ||
applicable annual incremental goal and less than | ||
100% of the applicable annual incremental goal. | ||
(iv) The return on equity component shall not | ||
be increased or decreased by an amount greater than | ||
200 basis points pursuant to this subparagraph | ||
(A). | ||
(B) For the period of January 1, 2026 through |
December 31, 2030, the applicable annual incremental | ||
goal shall be compared to the annual incremental | ||
savings as determined by the independent evaluator. | ||
(i) The return on equity component shall be | ||
reduced by 6 basis points for each percent by which | ||
the utility did not achieve 100% of the applicable | ||
annual incremental goal. | ||
(ii) The return on equity component shall be | ||
increased by 6 basis points for each percent by | ||
which the utility exceeded 100% of the applicable | ||
annual incremental goal. | ||
(iii) The return on equity component shall not | ||
be increased or decreased by an amount greater than | ||
200 basis points pursuant to this subparagraph | ||
(B). | ||
(C) If the applicable annual incremental goal was | ||
reduced under paragraphs (1), (2) or (3) of subsection | ||
(f) of this Section, then the following adjustments | ||
shall be made to the calculations described in | ||
subparagraphs (A) and (B) of this paragraph (8): | ||
(i) The calculation for determining | ||
achievement that is at least 125% or 134%, as | ||
applicable, of the applicable annual incremental | ||
goal shall use the unreduced applicable annual | ||
incremental goal to set the value. | ||
(ii) For the period through December 31, 2025, |
the calculation for determining achievement that | ||
is less than 125% but more than 100% of the | ||
applicable annual incremental goal shall use the | ||
reduced applicable annual incremental goal to set | ||
the value for 100% achievement of the goal and | ||
shall use the unreduced goal to set the value for | ||
125% achievement. The 8 basis point value shall | ||
also be modified, as necessary, so that the 200 | ||
basis points are evenly apportioned among each | ||
percentage point value between 100% and 125% | ||
achievement. | ||
(iii) For the period of January 1, 2026 through | ||
December 31, 2030, the calculation for determining | ||
achievement that is less than 134% but more than | ||
100% of the applicable annual incremental goal | ||
shall use the reduced applicable annual | ||
incremental goal to set the value for 100% | ||
achievement of the goal and shall use the unreduced | ||
goal to set the value for 125% achievement. The 6 | ||
basis point value shall also be modified, as | ||
necessary, so that the 200 basis points are evenly | ||
apportioned among each percentage point value | ||
between 100% and 134% achievement. | ||
(9) The utility shall submit the energy savings data to | ||
the independent evaluator no later than 30 days after the | ||
close of the plan year. The independent evaluator shall |
determine the cumulative persisting annual savings for a | ||
given plan year no later than 120 days after the close of | ||
the plan year. The utility shall submit an informational | ||
filing to the Commission no later than 160 days after the | ||
close of the plan year that attaches the independent | ||
evaluator's final report identifying the cumulative | ||
persisting annual savings for the year and calculates, | ||
under paragraph (7) or (8) of this subsection (g), as | ||
applicable, any resulting change to the utility's return on | ||
equity component of the weighted average cost of capital | ||
applicable to the next plan year beginning with the January | ||
monthly billing period and extending through the December | ||
monthly billing period. However, if the utility recovers | ||
the costs incurred under this Section under paragraphs (2) | ||
and (3) of subsection (d) of this Section, then the utility | ||
shall not be required to submit such informational filing, | ||
and shall instead submit the information that would | ||
otherwise be included in the informational filing as part | ||
of its filing under paragraph (3) of such subsection (d) | ||
that is due on or before June 1 of each year. | ||
For those utilities that must submit the informational | ||
filing, the Commission may, on its own motion or by | ||
petition, initiate an investigation of such filing, | ||
provided, however, that the utility's proposed return on | ||
equity calculation shall be deemed the final, approved | ||
calculation on December 15 of the year in which it is filed |
unless the Commission enters an order on or before December | ||
15, after notice and hearing, that modifies such | ||
calculation consistent with this Section. | ||
The adjustments to the return on equity component | ||
described in paragraphs (7) and (8) of this subsection (g) | ||
shall be applied as described in such paragraphs through a | ||
separate tariff mechanism, which shall be filed by the | ||
utility under subsections (f) and (g) of this Section. | ||
(h) No more than 6% of energy efficiency and | ||
demand-response program revenue may be allocated for research, | ||
development, or pilot deployment of new equipment or measures.
| ||
(i) When practicable, electric utilities shall incorporate | ||
advanced metering infrastructure data into the planning, | ||
implementation, and evaluation of energy efficiency measures | ||
and programs, subject to the data privacy and confidentiality | ||
protections of applicable law. | ||
(j) The independent evaluator shall follow the guidelines | ||
and use the savings set forth in Commission-approved energy | ||
efficiency policy manuals and technical reference manuals, as | ||
each may be updated from time to time. Until such time as | ||
measure life values for energy efficiency measures implemented | ||
for low-income households under subsection (c) of this Section | ||
are incorporated into such Commission-approved manuals, the | ||
low-income measures shall have the same measure life values | ||
that are established for same measures implemented in | ||
households that are not low-income households. |
(k) Notwithstanding any provision of law to the contrary, | ||
an electric utility subject to the requirements of this Section | ||
may file a tariff cancelling an automatic adjustment clause | ||
tariff in effect under this Section or Section 8-103, which | ||
shall take effect no later than one business day after the date | ||
such tariff is filed. Thereafter, the utility shall be | ||
authorized to defer and recover its expenditures incurred under | ||
this Section through a new tariff authorized under subsection | ||
(d) of this Section or in the utility's next rate case under | ||
Article IX or Section 16-108.5 of this Act, with interest at an | ||
annual rate equal to the utility's weighted average cost of | ||
capital as approved by the Commission in such case. If the | ||
utility elects to file a new tariff under subsection (d) of | ||
this Section, the utility may file the tariff within 10 days | ||
after the effective date of this amendatory Act of the 99th | ||
General Assembly, and the cost inputs to such tariff shall be | ||
based on the projected costs to be incurred by the utility | ||
during the calendar year in which the new tariff is filed and | ||
that were not recovered under the tariff that was cancelled as | ||
provided for in this subsection. Such costs shall include those | ||
incurred or to be incurred by the utility under its multi-year | ||
plan approved under subsections (f) and (g) of this Section, | ||
including, but not limited to, projected capital investment | ||
costs and projected regulatory asset balances with | ||
correspondingly updated depreciation and amortization reserves | ||
and expense. The Commission shall, after notice and hearing, |
approve, or approve with modification, such tariff and cost | ||
inputs no later than 75 days after the utility filed the | ||
tariff, provided that such approval, or approval with | ||
modification, shall be consistent with the provisions of this | ||
Section to the extent they do not conflict with this subsection | ||
(k). The tariff approved by the Commission shall take effect no | ||
later than 5 days after the Commission enters its order | ||
approving the tariff. | ||
No later than 60 days after the effective date of the | ||
tariff cancelling the utility's automatic adjustment clause | ||
tariff, the utility shall file a reconciliation that reconciles | ||
the moneys collected under its automatic adjustment clause | ||
tariff with the costs incurred during the period beginning June | ||
1, 2016 and ending on the date that the electric utility's | ||
automatic adjustment clause tariff was cancelled. In the event | ||
the reconciliation reflects an under-collection, the utility | ||
shall recover the costs as specified in this subsection (k). If | ||
the reconciliation reflects an over-collection, the utility | ||
shall apply the amount of such over-collection as a one-time | ||
credit to retail customers' bills. | ||
(l) For the calendar years covered by a multi-year plan | ||
commencing after December 31, 2017, subsections (a) through (j) | ||
of this Section do not apply to any retail customers of an | ||
electric utility that serves more than 3,000,000 retail | ||
customers in the State and whose total highest 30 minute demand | ||
was more than 10,000 kilowatts, or any retail customers of an |
electric utility that serves less than 3,000,000 retail | ||
customers but more than 500,000 retail customers in the State | ||
and whose total highest 15 minute demand was more than 10,000 | ||
kilowatts. For purposes of this subsection (l), "retail | ||
customer" has the meaning set forth in Section 16-102 of this | ||
Act. A determination of whether this subsection is applicable | ||
to a customer shall be made for each multi-year plan beginning | ||
after December 31, 2017. The criteria for determining whether | ||
this subsection (l) is applicable to a retail customer shall be | ||
based on the 12 consecutive billing periods prior to the start | ||
of the first year of each such multi-year plan. | ||
(m) Notwithstanding the requirements of this Section, as | ||
part of a proceeding to approve a multi-year plan under | ||
subsections (f) and (g) of this Section, the Commission shall | ||
reduce the amount of energy efficiency measures implemented for | ||
any single year, and whose costs are recovered under subsection | ||
(d) of this Section, by an amount necessary to limit the | ||
estimated average net increase due to the cost of the measures | ||
to no more than | ||
(1) 3.5% for the each of the 4 years beginning January | ||
1, 2018, | ||
(2) 3.75% for each of the 4 years beginning January 1, | ||
2022, and | ||
(3) 4% for each of the 5 years beginning January 1, | ||
2026, | ||
of the average amount paid per kilowatthour by residential |
eligible retail customers during calendar year 2015. To | ||
determine the total amount that may be spent by an electric | ||
utility in any single year, the applicable percentage of the | ||
average amount paid per kilowatthour shall be multiplied by the | ||
total amount of energy delivered by such electric utility in | ||
the calendar year 2015, adjusted to reflect the proportion of | ||
the utility's load attributable to customers who are exempt | ||
from subsections (a) through (j) of this Section under | ||
subsection (l) of this Section. For purposes of this subsection | ||
(m), the amount paid per kilowatthour includes,
without | ||
limitation, estimated amounts paid for supply,
transmission, | ||
distribution, surcharges, and add-on taxes. For purposes of | ||
this Section, "eligible retail customers" shall have the | ||
meaning set forth in Section 16-111.5 of this Act. Once the | ||
Commission has approved a plan under subsections (f) and (g) of | ||
this Section, no subsequent rate impact determinations shall be | ||
made. | ||
(220 ILCS 5/8-104)
| ||
Sec. 8-104. Natural gas energy efficiency programs. | ||
(a) It is the policy of the State that natural gas | ||
utilities and the Department of Commerce and Economic | ||
Opportunity are required to use cost-effective energy | ||
efficiency to reduce direct and indirect costs to consumers. It | ||
serves the public interest to allow natural gas utilities to | ||
recover costs for reasonably and prudently incurred expenses |
for cost-effective energy efficiency measures. | ||
(b) For purposes of this Section, "energy efficiency" means | ||
measures that reduce the amount of energy required to achieve a | ||
given end use. "Energy efficiency" also includes measures that | ||
reduce the total Btus of electricity and natural gas needed to | ||
meet the end use or uses. "Cost-effective" means that the | ||
measures satisfy the total resource cost test which, for | ||
purposes of this Section, means a standard that is met if, for | ||
an investment in energy efficiency, 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 measures to the | ||
net present value of the total costs as calculated over the | ||
lifetime of the measures. The total resource cost test compares | ||
the sum of avoided natural gas 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 electric | ||
utility costs, to the sum of all incremental costs of end use | ||
measures (including both utility and participant | ||
contributions), plus costs to administer, deliver, and | ||
evaluate each demand-side measure, to quantify the net savings | ||
obtained by substituting demand-side measures for supply | ||
resources. In calculating avoided costs, reasonable estimates | ||
shall be included for financial costs likely to be imposed by | ||
future regulation of emissions of greenhouse gases. The | ||
low-income programs described in item (4) of subsection (f) of |
this Section shall not be required to meet the total resource | ||
cost test. | ||
(c) Natural gas utilities shall implement cost-effective | ||
energy efficiency measures to meet at least the following | ||
natural gas savings requirements, which shall be based upon the | ||
total amount of gas delivered to retail customers, other than | ||
the customers described in subsection (m) of this Section, | ||
during calendar year 2009 multiplied by the applicable | ||
percentage. Natural gas utilities may comply with this Section | ||
by meeting the annual incremental savings goal in the | ||
applicable year or by showing that total cumulative annual | ||
savings within a multi-year 3-year planning period associated | ||
with measures implemented after May 31, 2011 were equal to the | ||
sum of each annual incremental savings requirement from the | ||
first day of the multi-year planning period May 31, 2011 | ||
through the last day of the multi-year planning period end of | ||
the applicable year : | ||
(1) 0.2% by May 31, 2012; | ||
(2) an additional 0.4% by May 31, 2013, increasing | ||
total savings to .6%; | ||
(3) an additional 0.6% by May 31, 2014, increasing | ||
total savings to 1.2%; | ||
(4) an additional 0.8% by May 31, 2015, increasing | ||
total savings to 2.0%; | ||
(5) an additional 1% by May 31, 2016, increasing total | ||
savings to 3.0%; |
(6) an additional 1.2% by May 31, 2017, increasing | ||
total savings to 4.2%; | ||
(7) an additional 1.4% in the year commencing January | ||
1, 2018 by May 31, 2018, increasing total savings to 5.6% ; | ||
(8) an additional 1.5% in the year commencing January | ||
1, 2019 by May 31, 2019, increasing total savings to 7.1% ; | ||
and | ||
(9) an additional 1.5% in each 12-month period | ||
thereafter. | ||
(d) Notwithstanding the requirements of subsection (c) of | ||
this Section, a natural gas utility shall limit the amount of | ||
energy efficiency implemented in any multi-year 3-year | ||
reporting period established by subsection (f) of Section 8-104 | ||
of this Act, by an amount necessary to limit the estimated | ||
average increase in the amounts paid by retail customers in | ||
connection with natural gas service to no more than 2% in the | ||
applicable multi-year 3-year reporting period. The energy | ||
savings requirements in subsection (c) of this Section may be | ||
reduced by the Commission for the subject plan, if the utility | ||
demonstrates by substantial evidence that it is highly unlikely | ||
that the requirements could be achieved without exceeding the | ||
applicable spending limits in any multi-year 3-year reporting | ||
period. No later than September 1, 2013, the Commission shall | ||
review the limitation on the amount of energy efficiency | ||
measures implemented pursuant to this Section and report to the | ||
General Assembly, in the report required by subsection (k) of |
this Section, its findings as to whether that limitation unduly | ||
constrains the procurement of energy efficiency measures. | ||
(e) The provisions of this subsection (e) apply to those | ||
multi-year plans that commence prior to January 1, 2018 Natural | ||
gas utilities shall be responsible for overseeing the design, | ||
development, and filing of their efficiency plans with the | ||
Commission . The utility shall utilize 75% of the available | ||
funding associated with energy efficiency programs approved by | ||
the Commission, and may outsource various aspects of program | ||
development and implementation. The remaining 25% of available | ||
funding shall be used by the Department of Commerce and | ||
Economic Opportunity to implement energy efficiency measures | ||
that achieve no less than 20% of the requirements of subsection | ||
(c) of this Section. Such measures shall be designed in | ||
conjunction with the utility and approved by the Commission. | ||
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 local government, municipal corporations, | ||
school districts, and community college districts. Five | ||
percent of the entire portfolio of cost-effective energy | ||
efficiency measures may be granted to local government and | ||
municipal corporations for market transformation initiatives. | ||
The Department shall coordinate the implementation of these | ||
measures and shall integrate delivery of natural gas efficiency | ||
programs with electric efficiency programs delivered pursuant |
to Section 8-103 of this Act, unless the Department can show | ||
that integration is not feasible. | ||
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 rebate agreements, grants, or | ||
contracts for energy efficiency measures and provided | ||
supporting documentation for those rebate agreements, grants, | ||
and contracts to the utility. The Department is authorized to | ||
adopt any rules necessary and prescribe procedures in order to | ||
ensure compliance by applicants in carrying out the purposes of | ||
rebate agreements for energy efficiency measures implemented | ||
by the Department made under this Section. | ||
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 measures that the utility implements. | ||
The portfolio of measures, administered by both the | ||
utilities and the Department, shall, in combination, be | ||
designed to achieve the annual energy savings requirements set | ||
forth in subsection (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 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. | ||
(e-5) The provisions of this subsection (e-5) shall be | ||
applicable to those multi-year plans that commence after | ||
December 31, 2017. Natural gas utilities shall be responsible | ||
for overseeing the design, development, and filing of their | ||
efficiency plans with the Commission and 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 local | ||
government, municipal corporations, school districts, and | ||
community college districts. Five percent of the entire | ||
portfolio of cost-effective energy efficiency measures may be | ||
granted to local government and municipal corporations for | ||
market transformation initiatives. | ||
The utilities shall also 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. Such programs shall be targeted to |
households with incomes at or below 80% of area median income. | ||
(e-10) A utility providing approved energy efficiency | ||
measures in this 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 and | ||
shall be applicable to the utility's customers other than the | ||
customers described in subsection (m) of this Section. 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. | ||
(e-15) For those multi-year plans that commence prior to | ||
January 1, 2018, each 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 | ||
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, shall be deposited into the | ||
Energy Efficiency Portfolio Standards Fund, 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 energy savings requirements set | ||
forth in subsection (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 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 performance | ||
requirements 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 (8) 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 October 1, 2010, each gas utility shall | ||
file an energy efficiency plan with the Commission to meet the | ||
energy efficiency standards through May 31, 2014. No later than | ||
October 1, 2013, each gas utility shall file an energy | ||
efficiency plan with the Commission to meet the energy | ||
efficiency standards through May 31, 2017. Beginning in 2017 | ||
and every 4 Every 3 years thereafter, each utility shall file , | ||
no later than October 1, an energy efficiency plan with the | ||
Commission to meet the energy efficiency standards for the next | ||
applicable 4-year period beginning January 1 of the year | ||
following the filing. For those multi-year plans commencing on | ||
January 1, 2018, each utility shall file its proposed energy | ||
efficiency plan no later than 30 days after the effective date | ||
of this amendatory Act of the 99th General Assembly or May 1, | ||
2017, whichever is later. Beginning in 2021 and every 4 years | ||
thereafter, each utility shall file its energy efficiency plan | ||
no later than March 1 . If a utility does not file such a plan on | ||
or before the applicable filing deadline for the plan by |
October 1 of the applicable year , then 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 (c) of this Section, as | ||
modified by subsection (d) of this Section, taking into account | ||
the unique circumstances of the utility's service territory. | ||
For those plans commencing after December 31, 2021, the The | ||
Commission shall seek public comment on the utility's plan and | ||
shall issue an order approving or disapproving each plan within | ||
6 months after its submission. For those plans commencing on | ||
January 1, 2018, the Commission shall seek public comment on | ||
the utility's plan and shall issue an order approving or | ||
disapproving each plan no later than August 31, 2017, or 105 | ||
days after the effective date of this amendatory Act of the | ||
99th General Assembly, whichever is later . 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 | ||
after the disapproval, 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 measures. Penalties shall be deposited into the |
Energy Efficiency Trust Fund and the cost of any such penalties | ||
may not be recovered from ratepayers. In submitting proposed | ||
energy efficiency plans and funding levels to meet the savings | ||
goals adopted by this Act the utility shall: | ||
(1) Demonstrate that its proposed energy efficiency | ||
measures will achieve the requirements that are identified | ||
in subsection (c) of this Section, as modified by | ||
subsection (d) of this Section. | ||
(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 gas | ||
service expressed on a per therm basis associated with the | ||
proposed portfolio of measures designed to meet the | ||
requirements that are identified in subsection (c) of this | ||
Section, as modified by subsection (d) of this Section. | ||
(4) For those multi-year plans that commence prior to | ||
January 1, 2018, coordinate 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. Such 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 measures, not including low-income programs | ||
described in covered by item (4) of this subsection (f) and |
subsection (e-5) of this Section , 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) Demonstrate that a gas utility affiliated with an | ||
electric utility that is required to comply with Section | ||
8-103 or 8-103B of this Act has integrated gas and electric | ||
efficiency measures into a single program that reduces | ||
program or participant costs and appropriately allocates | ||
costs to gas and electric ratepayers. For those multi-year | ||
plans that commence prior to January 1, 2018, the The | ||
Department shall integrate all gas and electric programs it | ||
delivers in any such utilities' service territories, | ||
unless the Department can show that integration is not | ||
feasible or appropriate. | ||
(7) Include a proposed cost recovery tariff mechanism | ||
to fund the proposed energy efficiency measures and to | ||
ensure the recovery of the prudently and reasonably | ||
incurred costs of Commission-approved programs. | ||
(8) Provide for quarterly status reports tracking | ||
implementation of and expenditures for the utility's | ||
portfolio of measures and , if applicable, the Department's | ||
portfolio of measures, an annual independent review, and a | ||
full independent evaluation of the multi-year 3-year | ||
results of the performance and the cost-effectiveness of | ||
the utility's and , if applicable, Department's portfolios |
of measures and 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 multi-year 3-year period. | ||
(g) No more than 3% of expenditures on energy efficiency | ||
measures may be allocated for demonstration of breakthrough | ||
equipment and devices. | ||
(h) Illinois natural gas utilities that are affiliated by | ||
virtue of a common parent company may, at the utilities' | ||
request, be considered a single natural gas utility for | ||
purposes of complying with this Section. | ||
(i) If, after 3 years, a gas utility fails to meet the | ||
efficiency standard specified in subsection (c) of this Section | ||
as modified by subsection (d), then it shall make a | ||
contribution to the Low-Income Home Energy Assistance Program. | ||
The total liability for failure to meet the goal shall be | ||
assessed as follows: | ||
(1) a large gas utility shall pay $600,000; | ||
(2) a medium gas utility shall pay $400,000; and | ||
(3) a small gas utility shall pay $200,000. | ||
For purposes of this Section, (i) a "large gas utility" is | ||
a gas utility that on December 31, 2008, served more than | ||
1,500,000 gas customers in Illinois; (ii) a "medium gas | ||
utility" is a gas utility that on December 31, 2008, served | ||
fewer than 1,500,000, but more than 500,000 gas customers in |
Illinois; and (iii) a "small gas utility" is a gas utility that | ||
on December 31, 2008, served fewer than 500,000 and more than | ||
100,000 gas customers in Illinois. The costs of this | ||
contribution may not be recovered from ratepayers. | ||
If a gas utility fails to meet the efficiency standard | ||
specified in subsection (c) of this Section, as modified by | ||
subsection (d) of this Section, in any 2 consecutive multi-year | ||
3-year planning periods, then the responsibility for | ||
implementing the utility's energy efficiency measures shall be | ||
transferred to an independent program administrator selected | ||
by the Commission. Reasonable and prudent costs incurred by the | ||
independent program administrator to meet the efficiency | ||
standard specified in subsection (c) of this Section, as | ||
modified by subsection (d) of this Section, may be recovered | ||
from the customers of the affected gas utilities, other than | ||
customers described in subsection (m) of this Section. The | ||
utility shall provide the independent program administrator | ||
with all information and assistance necessary to perform the | ||
program administrator's duties including but not limited to | ||
customer, account, and energy usage data, and shall allow the | ||
program administrator to include inserts in customer bills. The | ||
utility may recover reasonable costs associated with any such | ||
assistance. | ||
(j) No 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. |
(k) Not later than January 1, 2012, the Commission shall | ||
develop and solicit public comment on a plan to foster | ||
statewide coordination and consistency between statutorily | ||
mandated natural gas and electric energy efficiency programs to | ||
reduce program or participant costs or to improve program | ||
performance. Not later than September 1, 2013, the Commission | ||
shall issue a report to the General Assembly containing its | ||
findings and recommendations. | ||
(l) This Section does not apply to a gas utility that on | ||
January 1, 2009, provided gas service to fewer than 100,000 | ||
customers in Illinois. | ||
(m) Subsections (a) through (k) of this Section do not | ||
apply to customers of a natural gas utility that have a North | ||
American Industry Classification System code number that is | ||
22111 or any such code number beginning with the digits 31, 32, | ||
or 33 and (i) annual usage in the aggregate of 4 million therms | ||
or more within the service territory of the affected gas | ||
utility or with aggregate usage of 8 million therms or more in | ||
this State and complying with the provisions of item (l) of | ||
this subsection (m); or (ii) using natural gas as feedstock and | ||
meeting the usage requirements described in item (i) of this | ||
subsection (m), to the extent such annual feedstock usage is | ||
greater than 60% of the customer's total annual usage of | ||
natural gas. | ||
(1) Customers described in this subsection (m) of this | ||
Section shall apply, on a form approved on or before |
October 1, 2009 by the Department, to the Department to be | ||
designated as a self-directing customer ("SDC") or as an | ||
exempt customer using natural gas as a feedstock from which | ||
other products are made, including, but not limited to, | ||
feedstock for a hydrogen plant, on or before the 1st day of | ||
February, 2010. Thereafter, application may be made not | ||
less than 6 months before the filing date of the gas | ||
utility energy efficiency plan described in subsection (f) | ||
of this Section; however, a new customer that commences | ||
taking service from a natural gas utility after February 1, | ||
2010 may apply to become a SDC or exempt customer up to 30 | ||
days after beginning service. Customers described in this | ||
subsection (m) that have not already been approved by the | ||
Department may apply to be designated a self-directing | ||
customer or exempt customer, on a form approved by the | ||
Department, between September 1, 2013 and September 30, | ||
2013. Customer applications that are approved by the | ||
Department under this amendatory Act of the 98th General | ||
Assembly shall be considered to be a self-directing | ||
customer or exempt customer, as applicable, for the current | ||
3-year planning period effective December 1, 2013. Such | ||
application shall contain the following: | ||
(A) the customer's certification that, at the time | ||
of its application, it qualifies to be a SDC or exempt | ||
customer described in this subsection (m) of this | ||
Section; |
(B) in the case of a SDC, the customer's | ||
certification that it has established or will | ||
establish by the beginning of the utility's multi-year | ||
3-year planning period commencing subsequent to the | ||
application, and will maintain for accounting | ||
purposes, an energy efficiency reserve account and | ||
that the customer will accrue funds in said account to | ||
be held for the purpose of funding, in whole or in | ||
part, energy efficiency measures of the customer's | ||
choosing, which may include, but are not limited to, | ||
projects involving combined heat and power systems | ||
that use the same energy source both for the generation | ||
of electrical or mechanical power and the production of | ||
steam or another form of useful thermal energy or the | ||
use of combustible gas produced from biomass, or both; | ||
(C) in the case of a SDC, the customer's | ||
certification that annual funding levels for the | ||
energy efficiency reserve account will be equal to 2% | ||
of the customer's cost of natural gas, composed of the | ||
customer's commodity cost and the delivery service | ||
charges paid to the gas utility, or $150,000, whichever | ||
is less; | ||
(D) in the case of a SDC, the customer's | ||
certification that the required reserve account | ||
balance will be capped at 3 years' worth of accruals | ||
and that the customer may, at its option, make further |
deposits to the account to the extent such deposit | ||
would increase the reserve account balance above the | ||
designated cap level; | ||
(E) in the case of a SDC, the customer's | ||
certification that by October 1 of each year, beginning | ||
no sooner than October 1, 2012, the customer will | ||
report to the Department information, for the 12-month | ||
period ending May 31 of the same year, on all deposits | ||
and reductions, if any, to the reserve account during | ||
the reporting year, and to the extent deposits to the | ||
reserve account in any year are in an amount less than | ||
$150,000, the basis for such reduced deposits; reserve | ||
account balances by month; a description of energy | ||
efficiency measures undertaken by the customer and | ||
paid for in whole or in part with funds from the | ||
reserve account; an estimate of the energy saved, or to | ||
be saved, by the measure; and that the report shall | ||
include a verification by an officer or plant manager | ||
of the customer or by a registered professional | ||
engineer or certified energy efficiency trade | ||
professional that the funds withdrawn from the reserve | ||
account were used for the energy efficiency measures; | ||
(F) in the case of an exempt customer, the | ||
customer's certification of the level of gas usage as | ||
feedstock in the customer's operation in a typical year | ||
and that it will provide information establishing this |
level, upon request of the Department; | ||
(G) in the case of either an exempt customer or a | ||
SDC, the customer's certification that it has provided | ||
the gas utility or utilities serving the customer with | ||
a copy of the application as filed with the Department; | ||
(H) in the case of either an exempt customer or a | ||
SDC, certification of the natural gas utility or | ||
utilities serving the customer in Illinois including | ||
the natural gas utility accounts that are the subject | ||
of the application; and | ||
(I) in the case of either an exempt customer or a | ||
SDC, a verification signed by a plant manager or an | ||
authorized corporate officer attesting to the | ||
truthfulness and accuracy of the information contained | ||
in the application. | ||
(2) The Department shall review the application to | ||
determine that it contains the information described in | ||
provisions (A) through (I) of item (1) of this subsection | ||
(m), as applicable. The review shall be completed within 30 | ||
days after the date the application is filed with the | ||
Department. Absent a determination by the Department | ||
within the 30-day period, the applicant shall be considered | ||
to be a SDC or exempt customer, as applicable, for all | ||
subsequent multi-year 3-year planning periods, as of the | ||
date of filing the application described in this subsection | ||
(m). If the Department determines that the application does |
not contain the applicable information described in | ||
provisions (A) through (I) of item (1) of this subsection | ||
(m), it shall notify the customer, in writing, of its | ||
determination that the application does not contain the | ||
required information and identify the information that is | ||
missing, and the customer shall provide the missing | ||
information within 15 working days after the date of | ||
receipt of the Department's notification. | ||
(3) The Department shall have the right to audit the | ||
information provided in the customer's application and | ||
annual reports to ensure continued compliance with the | ||
requirements of this subsection. Based on the audit, if the | ||
Department determines the customer is no longer in | ||
compliance with the requirements of items (A) through (I) | ||
of item (1) of this subsection (m), as applicable, the | ||
Department shall notify the customer in writing of the | ||
noncompliance. The customer shall have 30 days to establish | ||
its compliance, and failing to do so, may have its status | ||
as a SDC or exempt customer revoked by the Department. The | ||
Department shall treat all information provided by any | ||
customer seeking SDC status or exemption from the | ||
provisions of this Section as strictly confidential. | ||
(4) Upon request, or on its own motion, the Commission | ||
may open an investigation, no more than once every 3 years | ||
and not before October 1, 2014, to evaluate the | ||
effectiveness of the self-directing program described in |
this subsection (m). | ||
Customers described in this subsection (m) that applied to | ||
the Department on January 3, 2013, were approved by the | ||
Department on February 13, 2013 to be a self-directing customer | ||
or exempt customer, and receive natural gas from a utility that | ||
provides gas service to at least 500,000 retail customers in | ||
Illinois and electric service to at least 1,000,000 retail | ||
customers in Illinois shall be considered to be a | ||
self-directing customer or exempt customer, as applicable, for | ||
the current 3-year planning period effective December 1, 2013. | ||
(n) The applicability of this Section to customers | ||
described in subsection (m) of this Section is conditioned on | ||
the existence of the SDC program. In no event will any | ||
provision of this Section apply to such customers after January | ||
1, 2020.
| ||
(o) Utilities' 3-year energy efficiency plans approved by | ||
the Commission on or before the effective date of this | ||
amendatory Act of the 99th General Assembly for the period June | ||
1, 2014 through May 31, 2017 shall continue to be in force and | ||
effect through December 31, 2017 so that the energy efficiency | ||
programs set forth in those plans continue to be offered during | ||
the period June 1, 2017 through December 31, 2017. Each utility | ||
is authorized to increase, on a pro rata basis, the energy | ||
savings goals and budgets approved in its plan to reflect the | ||
additional 7 months of the plan's operation. | ||
(Source: P.A. 97-813, eff. 7-13-12; 97-841, eff. 7-20-12; |
98-90, eff. 7-15-13; 98-225, eff. 8-9-13; 98-604, eff. | ||
12-17-13.) | ||
(220 ILCS 5/9-107 new) | ||
Sec. 9-107. Revenue balancing adjustments. | ||
(a) In this Section: | ||
"Reconciliation period" means a period beginning with the | ||
January monthly billing period and extending through the | ||
December monthly billing period. | ||
"Rate case reconciliation revenue requirement" means the | ||
final distribution revenue requirement or requirements | ||
approved by the Commission in the utility's rate case or | ||
formula rate proceeding to set the rates initially applicable | ||
in the relevant reconciliation period after the conclusion of | ||
the period. In the event the Commission has approved more than | ||
one revenue requirement for the reconciliation period, the | ||
amount of rate case revenue under each approved revenue | ||
requirement shall be prorated based upon the number of days | ||
under which each revenue requirement was in effect. | ||
(b) If an electric utility has a performance-based formula | ||
rate in effect under Section 16-108.5, then the utility shall | ||
be permitted to revise the formula rate and schedules to reduce | ||
the 50 basis point values to zero that would otherwise apply | ||
under paragraph (5) of subsection (c) of Section 16-108.5. Such | ||
revision and reduction shall apply beginning with the | ||
reconciliation conducted for the 2017 calendar year. |
If the utility no longer has a performance-based formula in | ||
effect under Section 16-108.5, then the utility shall be | ||
permitted to implement the revenue balancing adjustment tariff | ||
described in subsection (c) of this Section. | ||
(c) An electric utility that is authorized under subsection | ||
(b) of this Section to implement a revenue balancing adjustment | ||
tariff may file the tariff for the purpose of preventing | ||
undercollections or overcollections of distribution revenues | ||
as compared to the revenue requirement or requirements approved | ||
by the Commission on which the rates giving rise to those | ||
revenues were based. The tariff shall calculate an annual | ||
adjustment that reflects any difference between the actual | ||
delivery service revenue billed for services provided during | ||
the relevant reconciliation period and the rate case | ||
reconciliation revenue requirement for the relevant | ||
reconciliation period and shall set forth the reconciliation | ||
categories or classes, or a combination of both, in a manner | ||
determined at the utility's discretion. | ||
(d) A utility that elects to file the tariff authorized by | ||
this Section shall file the tariff outside the context of a | ||
general rate case or formula rate proceeding, and the | ||
Commission shall, after notice and hearing, approve the tariff | ||
or approve with modification no later than 120 days after the | ||
utility files the tariff, and the tariff shall remain in effect | ||
at the discretion of the utility. The tariff shall also require | ||
that the electric utility submit an annual revenue balancing |
reconciliation report to the Commission reflecting the | ||
difference between the actual delivery service revenue and rate | ||
case revenue for the applicable reconciliation and identifying | ||
the charges or credits to be applied thereafter. The annual | ||
revenue balancing reconciliation report shall be filed with the | ||
Commission no later than March 20 of the year following a | ||
reconciliation period. The Commission may initiate a review of | ||
the revenue balancing reconciliation report each year to | ||
determine if any subsequent adjustment is necessary to align | ||
actual delivery service revenue and rate case revenue. In the | ||
event the Commission elects to initiate such review, the | ||
Commission shall, after notice and hearing, enter an order | ||
approving, or approving as modified, such revenue balancing | ||
reconciliation report no later than 120 days after the utility | ||
files its report with the Commission. If the Commission does | ||
not initiate such review, the revenue balancing reconciliation | ||
report and the identified charges or credits shall be deemed | ||
accepted and approved 120 days after the utility files the | ||
report and shall not be subject to review in any other | ||
proceeding.
| ||
(220 ILCS 5/16-107)
| ||
Sec. 16-107. Real-time pricing.
| ||
(a) Each electric utility shall file, on or before May 1,
| ||
1998, a tariff or tariffs which allow nonresidential retail
| ||
customers in the electric utility's service area to elect
|
real-time pricing beginning October 1, 1998.
| ||
(b) Each electric utility shall file, on or before May 1,
| ||
2000, a tariff or tariffs which allow residential retail
| ||
customers in the electric utility's service area to elect
| ||
real-time pricing beginning October 1, 2000.
| ||
(b-5) Each electric utility shall file a tariff or tariffs | ||
allowing residential retail customers in the electric | ||
utility's service area to elect real-time pricing beginning | ||
January 2, 2007. The Commission may, after notice and hearing, | ||
approve the tariff or tariffs. A customer who elects real-time | ||
pricing shall remain on such rate for a minimum of 12 months. | ||
The Commission may, after notice and hearing, approve the | ||
tariff or tariffs, provided that the Commission finds that the | ||
potential for demand reductions will result in net economic | ||
benefits to all residential customers of the electric utility. | ||
In examining economic benefits from demand reductions, the | ||
Commission shall, at a minimum, consider the following: | ||
improvements to system reliability and power quality, | ||
reduction in wholesale market prices and price volatility, | ||
electric utility cost avoidance and reductions, market power | ||
mitigation, and other benefits of demand reductions, but only | ||
to the extent that the effects of reduced demand can be | ||
demonstrated to lower the cost of electricity delivered to | ||
residential customers. A tariff or tariffs approved pursuant to | ||
this subsection (b-5) shall, at a minimum, describe (i) the | ||
methodology for determining the market price of energy to be |
reflected in the real-time rate and (ii) the manner in which | ||
customers who elect real-time pricing will be provided with | ||
ready access to hourly market prices, including, but not | ||
limited to, day-ahead hourly energy prices. A customer who | ||
elects real-time pricing under a tariff approved under this | ||
subsection (b-5) and thereafter terminates the election shall | ||
not return to taking service under the tariff for a period of | ||
12 months following the date on which the customer terminated | ||
real-time pricing. However, this limitation shall cease to | ||
apply on such date that the provision of electric power and | ||
energy is declared competitive under Section 16-113 of this Act | ||
for the customer group or groups to which this subsection (b-5) | ||
applies. | ||
A proceeding under this subsection (b-5) may not exceed 120 | ||
days in length.
| ||
(b-10) Each electric utility providing real-time pricing | ||
pursuant to subsection (b-5) shall install a meter capable of | ||
recording hourly interval energy use at the service location of | ||
each customer that elects real-time pricing pursuant to this | ||
subsection. | ||
(b-15) If the Commission issues an order pursuant to | ||
subsection (b-5), the affected electric utility shall contract | ||
with an entity not affiliated with the electric utility to | ||
serve as a program administrator to develop and implement a | ||
program to provide consumer outreach, enrollment, and | ||
education concerning real-time pricing and to establish and |
administer an information system and technical and other | ||
customer assistance that is necessary to enable customers to | ||
manage electricity use. The program administrator: (i) shall be | ||
selected and compensated by the electric utility, subject to | ||
Commission approval; (ii) shall have demonstrated technical | ||
and managerial competence in the development and | ||
administration of demand management programs; and (iii) may | ||
develop and implement risk management, energy efficiency, and | ||
other services related to energy use management for which the | ||
program administrator shall be compensated by participants in | ||
the program receiving such services. The electric utility shall | ||
provide the program administrator with all information and | ||
assistance necessary to perform the program administrator's | ||
duties, including, but not limited to, customer, account, and | ||
energy use data. The electric utility shall permit the program | ||
administrator to include inserts in residential customer bills | ||
2 times per year to assist with customer outreach and | ||
enrollment. | ||
The program administrator shall submit an annual report to | ||
the electric utility no later than April 1 of each year | ||
describing the operation and results of the program, including | ||
information concerning the number and types of customers using | ||
real-time pricing, changes in customers' energy use patterns, | ||
an assessment of the value of the program to both participants | ||
and non-participants, and recommendations concerning | ||
modification of the program and the tariff or tariffs filed |
under subsection (b-5). This report shall be filed by the | ||
electric utility with the Commission within 30 days of receipt | ||
and shall be available to the public on the Commission's web | ||
site. | ||
(b-20) The Commission shall monitor the performance of | ||
programs established pursuant to subsection (b-15) 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 not to exceed 4 years, resulting in net | ||
benefits to the residential customers of the electric utility.
| ||
(b-25) An electric utility shall be entitled to recover | ||
reasonable costs incurred in complying with this Section, | ||
provided that recovery of the costs is fairly apportioned among | ||
its residential customers as provided in this subsection | ||
(b-25). The electric utility may apportion greater costs on the | ||
residential customers who elect real-time pricing, but may also | ||
impose some of the costs of real-time pricing on customers who | ||
do not elect real-time pricing , provided that the Commission | ||
determines that the cost savings resulting from real-time | ||
pricing will exceed the costs imposed on customers for | ||
maintaining the program .
| ||
(c) The electric utility's tariff or tariffs filed
pursuant | ||
to this Section shall be subject to Article IX.
| ||
(d) This Section does not apply to any electric utility | ||
providing service to 100,000 or fewer customers.
| ||
(Source: P.A. 94-977, eff. 6-30-06.)
|
(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) "community renewable | ||
generation project" shall have the meaning set forth in Section | ||
1-10 of the Illinois Power Agency Act; (ii) "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; (iii) (ii) | ||
"electricity provider" means an electric utility or | ||
alternative retail electric supplier; (iv) (iii) "eligible | ||
renewable electrical generating facility" means a generator | ||
that is interconnected under rules adopted by the Commission | ||
and is 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; (v) 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 or subscriber; (vi) | ||
"subscriber" shall have the meaning as set forth in Section | ||
1-10 of the Illinois Power Agency Act; and (vii) "subscription" | ||
shall have the meaning set forth in Section 1-10 of the | ||
Illinois Power Agency Act .
| ||
(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 customers whose electric service has | ||
not been declared competitive pursuant to Section 16-113 of | ||
this Act as of July 1, 2011 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 , which may be the smart | ||
meter described by subsection (b) of Section 16-108.5 of |
this Act . | ||
(2) For eligible customers whose electric service has | ||
not been declared competitive pursuant to Section 16-113 of | ||
this Act as of July 1, 2011 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 , which may be the smart meter described by | ||
subsection (b) of Section 16-108.5 of this Act . | ||
(3) For all other eligible customers, until such time | ||
as the local electric utility installs a smart meter, as | ||
described by subsection (b) of Section 16-108.5 of this | ||
Act, 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.
| ||
(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 | ||
this the Act as of July 1, 2011 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) 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.
| ||
(d-5) 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 | ||
this Act as of July 1, 2011 and whose electric delivery
service | ||
is provided and measured on a kilowatt-hour basis and electric | ||
supply service is provided
based on hourly pricing in the | ||
following manner: | ||
(1) If the amount of electricity used by the customer | ||
during any hourly 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 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. | ||
(2) If the amount of electricity produced by a customer | ||
during any hourly period exceeds the amount of electricity |
used by the customer during that hourly period, the energy | ||
provider shall apply a credit for the net kilowatt-hours | ||
produced in such period. The credit shall consist of an | ||
energy credit and a delivery service credit. The energy
| ||
credit shall be valued at the same price per kilowatt-hour | ||
as the electric service provider
would charge for | ||
kilowatt-hour energy sales during that same hourly period. | ||
The delivery credit shall be equal to the net | ||
kilowatt-hours produced in such hourly period times a | ||
credit that reflects all kilowatt-hour based charges in the | ||
customer's electric service rate, excluding energy | ||
charges. | ||
(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 as of July 1, 2011 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. The customer shall 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. | ||
(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 customers who utilize net metering 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) 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), (d-5), nor (e) of this Section apply. | ||
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 hourly or 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 | ||
hourly or 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% of
the total peak demand supplied by
that electricity | ||
provider during the
previous year. After such time as the load | ||
of the electricity provider's net metering customers equals 5% | ||
of the total peak demand supplied by that electricity provider | ||
during the previous year, eligible customers that begin taking | ||
net metering shall only be eligible for netting of energy. | ||
Electricity providers are authorized to offer net metering | ||
beyond
the 5% level if they so choose.
| ||
(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% cap | ||
specified in subsection (j) of this Section. | ||
(l) (1) Notwithstanding the definition of "eligible |
customer" in item (ii) (i) of subsection (b) of this | ||
Section, each electricity provider shall consider whether | ||
to allow meter aggregation for the purposes of net metering | ||
as set forth in this subsection (l) and for the following | ||
projects on :
| ||
(A) (1) properties owned or leased by multiple | ||
customers that contribute to the operation of an | ||
eligible renewable electrical generating facility | ||
through an ownership or leasehold interest of at least | ||
200 watts in such 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 , provided that the facility is also located | ||
within the utility's service territory ; and
| ||
(B) (2) individual units, apartments, or | ||
properties located in a single building that are owned | ||
or leased by multiple customers and collectively | ||
served by a common eligible renewable electrical | ||
generating facility, such as an office or apartment | ||
building , a shopping center or strip mall served by | ||
photovoltaic panels on the roof ; and .
| ||
(C) subscriptions to community renewable | ||
generation projects. | ||
In addition, the nameplate capacity of the eligible | ||
renewable electric generating facility that serves the |
demand of the properties, units, or apartments identified | ||
in paragraphs (1) and (2) of this subsection (l) shall not | ||
exceed 2,000 kilowatts in nameplate capacity in total.
Any | ||
eligible renewable electrical generating facility or | ||
community renewable generation project that is powered by | ||
photovoltaic electric energy and installed after the | ||
effective date of this amendatory Act of the 99th General | ||
Assembly must be installed by a qualified person in | ||
compliance with the requirements of Section 16-128A of the | ||
Public Utilities Act and any rules or regulations adopted | ||
thereunder. | ||
(2) Notwithstanding anything to the contrary, an | ||
electricity provider shall provide credits for the | ||
electricity produced by the projects described in | ||
paragraph (1) of this subsection (l). The electricity | ||
provider shall provide credits at the subscriber's energy | ||
supply rate on the subscriber's monthly bill equal to the | ||
subscriber's share of the production of electricity from | ||
the project, as determined by paragraph (3) of this | ||
subsection (l). | ||
(3) For the purposes of facilitating net metering, the | ||
owner or operator of the eligible renewable electrical | ||
generating facility or community renewable generation | ||
project shall be responsible for determining the amount of | ||
the credit that each customer or subscriber participating | ||
in a project under this subsection (l) is to receive in the |
following manner: 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.
| ||
(A) The owner or operator shall, on a monthly | ||
basis, provide to the electric utility the | ||
kilowatthours of generation attributable to each of | ||
the utility's retail customers and subscribers | ||
participating in projects under this subsection (l) in | ||
accordance with the customer's or subscriber's share | ||
of the eligible renewable electric generating | ||
facility's or community renewable generation project's | ||
output of power and energy for such month. The owner or | ||
operator shall electronically transmit such | ||
calculations and associated documentation to the | ||
electric utility, in a format or method set forth in | ||
the applicable tariff, on a monthly basis so that the | ||
electric utility can reflect the monetary credits on | ||
customers' and subscribers' electric utility bills. | ||
The electric utility shall be permitted to revise its | ||
tariffs to implement the provisions of this amendatory | ||
Act of the 99th General Assembly. The owner or operator | ||
shall separately provide the electric utility with the | ||
documentation detailing the calculations supporting | ||
the credit in the manner set forth in the applicable | ||
tariff. |
(B) For those participating customers and | ||
subscribers who receive their energy supply from an | ||
alternative retail electric supplier, the electric | ||
utility shall remit to the applicable alternative | ||
retail electric supplier the information provided | ||
under subparagraph (A) of this paragraph (3) for such | ||
customers and subscribers in a manner set forth in such | ||
alternative retail electric supplier's net metering | ||
program, or as otherwise agreed between the utility and | ||
the alternative retail electric supplier. The | ||
alternative retail electric supplier shall then submit | ||
to the utility the amount of the charges for power and | ||
energy to be applied to such customers and subscribers, | ||
including the amount of the credit associated with net | ||
metering. | ||
(C) A participating customer or subscriber may | ||
provide authorization as required by applicable law | ||
that directs the electric utility to submit | ||
information to the owner or operator of the eligible | ||
renewable electrical generating facility or community | ||
renewable generation project to which the customer or | ||
subscriber has an ownership or leasehold interest or a | ||
subscription. Such information shall be limited to the | ||
components of the net metering credit calculated under | ||
this subsection (l), including the bill credit rate, | ||
total kilowatthours, and total monetary credit value |
applied to the customer's or subscriber's bill for the | ||
monthly billing period. | ||
(l-5) Within 90 days after the effective date of this | ||
amendatory Act of the 99th General Assembly, each electric | ||
utility subject to this Section shall file a tariff to | ||
implement the provisions of subsection (l) of this Section, | ||
which shall, consistent with the provisions of subsection (l), | ||
describe the terms and conditions under which owners or | ||
operators of qualifying properties, units, or apartments may | ||
participate in net metering. The Commission shall approve, or | ||
approve with modification, the tariff within 120 days after the | ||
effective date of this amendatory Act of the 99th General | ||
Assembly. | ||
(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.
| ||
(n) At such time, if any, that the load of the electricity | ||
provider's net metering customers equals 5% of the total peak | ||
demand supplied by that electricity provider during the | ||
previous year, as specified in subsection (j) of this Section, | ||
the net metering services described in subsections (d), (d-5), |
(e), (e-5), and (f) of this Section shall no longer be offered, | ||
except as to those retail customers that are receiving net | ||
metering service under these subsections at the time the net | ||
metering services under those subsections are no longer | ||
offered. Those retail customers that begin taking net metering | ||
service after the date that net metering services are no longer | ||
offered under such subsections shall be subject to the | ||
provisions set forth in the following paragraphs (1) through | ||
(3) of this subsection (n): | ||
(1) An electricity provider shall charge or credit for | ||
the net electricity supplied to eligible customers or | ||
provided by eligible customers whose electric supply | ||
service is not provided based on hourly pricing in the | ||
following manner: | ||
(A) 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 kilowatt-hour based electricity charges reflected | ||
in the customer's electric service rate supplied to and | ||
used by the customer as provided in paragraph (3) of | ||
this subsection (n). | ||
(B) 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 energy credit | ||
that reflects the kilowatt-hour based energy 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 energy 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. | ||
(C) 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. | ||
(2) An electricity provider shall charge or credit for | ||
the net electricity supplied to eligible customers or | ||
provided by eligible customers whose electric supply | ||
service is provided based on hourly pricing in the | ||
following manner: | ||
(A) If the amount of electricity used by the | ||
customer during any hourly 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 paragraph (3) of this subsection (n). | ||
(B) If the amount of electricity produced by a | ||
customer during any hourly period exceeds the amount of | ||
electricity used by the customer during that hourly | ||
period, the energy provider shall calculate an energy | ||
credit for the net kilowatt-hours produced in such | ||
period. The value of the energy credit shall be | ||
calculated using the same price per kilowatt-hour as | ||
the electric service provider would charge for | ||
kilowatt-hour energy sales during that same hourly | ||
period. | ||
(3) An electricity provider shall provide electric | ||
service to eligible customers who utilize net metering 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 | ||
charge the customer for the net electricity supplied to and | ||
used by the customer according to the terms of the contract | ||
or tariff to which the same customer would be assigned or | ||
be eligible for if the customer was 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 charge or | ||
credit that the customer receives for net electricity shall | ||
be at a rate equal to the customer's energy supply rate. | ||
The customer remains responsible for the gross amount of | ||
delivery services charges, supply-related charges that are | ||
kilowatt based, and all taxes and fees related to such | ||
charges. The customer also remains responsible for all | ||
taxes and fees that would otherwise be applicable to the | ||
net amount of electricity used by the customer. Paragraphs | ||
(1) and (2) of this subsection (n) 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. Nothing in this paragraph (3) | ||
shall be interpreted to mandate that a utility that is only | ||
required to provide delivery services to a given customer | ||
must also sell electricity to such customer.
| ||
(Source: P.A. 97-616, eff. 10-26-11; 97-646, eff. 12-30-11; | ||
97-824, eff. 7-18-12.) | ||
(220 ILCS 5/16-107.6 new) |
Sec. 16-107.6. Distributed generation rebate. | ||
(a) In this Section: | ||
"Smart inverter" means a device that converts direct | ||
current
into alternating current and can autonomously | ||
contribute to grid support during excursions from normal | ||
operating voltage and frequency conditions by providing each of | ||
the following: dynamic reactive and real power support, voltage | ||
and frequency ride-through, ramp rate controls, communication | ||
systems with ability to accept external commands, and other | ||
functions from the electric utility. | ||
"Subscriber" has the meaning set forth in Section 1-10 of | ||
the Illinois Power Agency Act. | ||
"Subscription" has the meaning set forth in Section 1-10 of | ||
the Illinois Power Agency Act. | ||
"Threshold date" means the date on which the load of an | ||
electricity provider's net metering customers equals 5% of the | ||
total peak demand supplied by that electricity provider during | ||
the previous year, as specified under subsection (j) of Section | ||
16-107.5 of this Act. | ||
(b) An electric utility that serves more than 200,000 | ||
customers in the State shall file a petition with the | ||
Commission requesting approval of the utility's tariff to | ||
provide a rebate to a retail customer who owns or operates | ||
distributed generation that meets the following criteria: | ||
(1) has a nameplate generating capacity no greater than | ||
2,000 kilowatts and is primarily used to offset that |
customer's electricity load; | ||
(2) is located on the customer's premises, for the | ||
customer's own use, and not for commercial use or sales, | ||
including, but not limited to, wholesale sales of electric | ||
power and energy; | ||
(3) is located in the electric utility's service | ||
territory; and | ||
(4) is interconnected under rules adopted by the | ||
Commission by means of the inverter or smart inverter | ||
required by this Section, as applicable. | ||
For purposes of this Section, "distributed generation" | ||
shall satisfy the definition of distributed renewable energy | ||
generation device set forth in Section 1-10 of the Illinois | ||
Power Agency Act to the extent such definition is consistent | ||
with the requirements of this Section. | ||
In addition, any new photovoltaic distributed generation | ||
that is installed after the effective date of this amendatory | ||
Act of the 99th General Assembly must be installed by a | ||
qualified person, as defined by subsection (i) of Section 1-56 | ||
of the Illinois Power Agency Act. | ||
The tariff shall provide that the utility shall be | ||
permitted to operate and control the smart inverter associated | ||
with the distributed generation that is the subject of the | ||
rebate for the purpose of preserving reliability during | ||
distribution system reliability events and shall address the | ||
terms and conditions of the operation and the compensation |
associated with the operation. Nothing in this Section shall | ||
negate or supersede Institute of Electrical and Electronics | ||
Engineers interconnection requirements or standards or other | ||
similar standards or requirements. The tariff shall also | ||
provide for additional uses of the smart inverter that shall be | ||
separately compensated and which may include, but are not | ||
limited to, voltage and VAR support, regulation, and other grid | ||
services. As part of the proceeding described in subsection (e) | ||
of this Section, the Commission shall review and determine | ||
whether smart inverters can provide any additional uses or | ||
services. If the Commission determines that an additional use | ||
or service would be beneficial, the Commission shall determine | ||
the terms and conditions of the operation and how the use or | ||
service should be separately compensated. | ||
(c) The proposed tariff authorized by subsection (b) of | ||
this Section shall include the following participation terms | ||
and formulae to calculate the value of the rebates to be | ||
applied under this Section for distributed generation that | ||
satisfies the criteria set forth in subsection (b) of this | ||
Section: | ||
(1) Until the utility files its tariff or tariffs to | ||
place into effect the rebate values established by the | ||
Commission under subsection (e) of this Section, | ||
non-residential customers that are taking service under a | ||
net metering program offered by an electricity provider | ||
under the terms of Section 16-107.5 of this Act may apply |
for a rebate as provided for in this Section. The value of | ||
the rebate shall be $250 per kilowatt of nameplate | ||
generating capacity, measured as nominal DC power output, | ||
of a non-residential customer's distributed generation. | ||
(2) After the utility's tariff or tariffs setting the | ||
new rebate values established under subsection (d) of this | ||
Section take effect, retail customers may, as applicable, | ||
make the following elections: | ||
(A) Residential customers that are taking service | ||
under a net metering program offered by an electricity | ||
provider under the terms of Section 16-107.5 of this | ||
Act on the threshold date may elect to either continue | ||
to take such service under the terms of such program as | ||
in effect on such threshold date for the useful life of | ||
the customer's eligible renewable electric generating | ||
facility as defined in such Section, or file an | ||
application to receive a rebate under the terms of this | ||
Section, provided that such application must be | ||
submitted within 6 months after the effective date of | ||
the tariff approved under subsection (d) of this | ||
Section. The value of the rebate shall be the amount | ||
established by the Commission and reflected in the | ||
utility's tariff pursuant to subsection (e) of this | ||
Section. | ||
(B) Non-residential customers that are taking | ||
service under a net metering program offered by an |
electricity provider under the terms of Section | ||
16-107.5 of this Act on the threshold date may apply | ||
for a rebate as provided for in this Section. The value | ||
of the rebate shall be the amount established by the | ||
Commission and reflected in the utility's tariff | ||
pursuant to subsection (e) of this Section. | ||
(3) Upon approval of a rebate application submitted | ||
under this subsection (c), the retail customer shall no | ||
longer be entitled to receive any delivery service credits | ||
for the excess electricity generated by its facility and | ||
shall be subject to the provisions of subsection (n) of | ||
Section 16-107.5 of this Act. | ||
(4) To be eligible for a rebate described in this | ||
subsection (c), customers who begin taking service after | ||
the effective date of this amendatory Act of the 99th | ||
General Assembly under a net metering program offered by an | ||
electricity provider under the terms of Section 16-107.5 of | ||
this Act must have a smart inverter associated with the | ||
customer's distributed generation. | ||
(d) The Commission shall review the proposed tariff | ||
submitted under subsections (b) and (c) of this Section and may | ||
make changes to the tariff that are consistent with this | ||
Section and with the Commission's authority under Article IX of | ||
this Act, subject to notice and hearing. Following notice and | ||
hearing, the Commission shall issue an order approving, or | ||
approving with modification, such tariff no later than 240 days |
after the utility files its tariff. | ||
(e) When the total generating capacity of the electricity | ||
provider's net metering customers is equal to 3%, the | ||
Commission shall open an investigation into an annual process | ||
and formula for calculating the value of rebates for the retail | ||
customers described in subsections (b) and (f) of this Section | ||
that submit rebate applications after the threshold date for an | ||
electric utility that elected to file a tariff pursuant to this | ||
Section. The investigation shall include diverse sets of | ||
stakeholders, calculations for valuing distributed energy | ||
resource benefits to the grid based on best practices, and | ||
assessments of present and future technological capabilities | ||
of distributed energy resources. The value of such rebates | ||
shall reflect the value of the distributed generation to the | ||
distribution system at the location at which it is | ||
interconnected, taking into account the geographic, | ||
time-based, and performance-based benefits, as well as | ||
technological capabilities and present and future grid needs.
| ||
No later than 10 days after the Commission enters its final | ||
order under this subsection (e), the utility shall file its | ||
tariff or tariffs in compliance with the order, and the | ||
Commission shall approve, or approve with modification, the | ||
tariff or tariffs within 45 days after the utility's filing. | ||
For those rebate applications filed after the threshold date | ||
but before the utility's tariff or tariffs filed pursuant to | ||
this subsection (e) take effect, the value of the rebate shall |
remain at the value established in subsection (c) of this | ||
Section until the tariff is approved. | ||
(f) Notwithstanding any provision of this Act to the | ||
contrary, the owner, developer, or subscriber of a generation | ||
facility that is part of a net metering program provided under | ||
subsection (l) of Section 16-107.5 shall also be eligible to | ||
apply for the rebate described in this Section. A subscriber to | ||
the generation facility may apply for a rebate in the amount of | ||
the subscriber's subscription only if the owner, developer, or | ||
previous subscriber to the same panel or panels has not already | ||
submitted an application, and, regardless of whether the | ||
subscriber is a residential or non-residential customer, may be | ||
allowed the amount identified in paragraph (1) of subsection | ||
(c) or in subsection (e) of this Section applicable to such | ||
customer on the date that the application is submitted. An | ||
application for a rebate for a portion of a project described | ||
in this subsection (f) may be submitted at or after the time | ||
that a related request for net metering is made. | ||
(g) No later than 60 days after the utility receives an | ||
application for a rebate under its tariff approved under | ||
subsection (d) or (e) of this Section, the utility shall issue | ||
a rebate to the applicant under the terms of the tariff. In the | ||
event the application is incomplete or the utility is otherwise | ||
unable to calculate the payment based on the information | ||
provided by the owner, the utility shall issue the payment no | ||
later than 60 days after the application is complete or all |
requested information is received. | ||
(h) An electric utility shall recover from its retail | ||
customers all of the costs of the rebates made under a tariff | ||
or tariffs placed into effect under this Section, including, | ||
but not limited to, the value of the rebates and all costs | ||
incurred by the utility to comply with and implement this | ||
Section, consistent with the following provisions: | ||
(1) The utility shall defer the full amount of its | ||
costs incurred under this Section as a regulatory asset. | ||
The total costs deferred as a regulatory asset shall be | ||
amortized over a 15-year period. The unamortized balance | ||
shall be recognized as of December 31 for a given year. The | ||
utility shall also earn a return on the total of the | ||
unamortized balance of the regulatory assets, less any | ||
deferred taxes related to the unamortized balance, at an | ||
annual rate equal to the utility's weighted average cost of | ||
capital that includes, based on a year-end capital | ||
structure, the utility's actual cost of debt for the | ||
applicable calendar year and a cost of equity, which shall | ||
be calculated as the sum of (i) 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 (ii) 580 | ||
basis points, including a revenue conversion factor | ||
calculated to recover or refund all additional income taxes |
that may be payable or receivable as a result of that | ||
return. | ||
When an electric utility creates a regulatory asset | ||
under the provisions of this Section, the costs are | ||
recovered over a period during which customers also receive | ||
a benefit, which is in the public interest. Accordingly, it | ||
is the intent of the General Assembly that an electric | ||
utility that elects to create a regulatory asset under the | ||
provisions of this Section shall recover all of the | ||
associated costs, including, but not limited to, its cost | ||
of capital as set forth in this Section. After the | ||
Commission has approved the prudence and reasonableness of | ||
the costs that comprise the regulatory asset, the electric | ||
utility shall be permitted to recover all such costs, and | ||
the value and recoverability through rates of the | ||
associated regulatory asset shall not be limited, altered, | ||
impaired, or reduced. To enable the financing of the | ||
incremental capital expenditures, including regulatory | ||
assets, for electric utilities that serve less than | ||
3,000,000 retail customers but more than 500,000 retail | ||
customers in the State, the utility's actual year-end | ||
capital structure that includes a common equity ratio, | ||
excluding goodwill, of up to and including 50% of the total | ||
capital structure shall be deemed reasonable and used to | ||
set rates. | ||
(2) The utility, at its election, may recover all of |
the costs it incurs under this Section as part of a filing | ||
for a general increase in rates under Article IX of this | ||
Act, as part of an annual filing to update a | ||
performance-based formula rate under subsection (d) of | ||
Section 16-108.5 of this Act, or through an automatic | ||
adjustment clause tariff, provided that nothing in this | ||
paragraph (2) permits the double recovery of such costs | ||
from customers. If the utility elects to recover the costs | ||
it incurs under this Section through an automatic | ||
adjustment clause tariff, the utility may file its proposed | ||
tariff together with the tariff it files under subsection | ||
(b) of this Section or at a later time. The proposed tariff | ||
shall provide for an annual reconciliation, less any | ||
deferred taxes related to the reconciliation, with | ||
interest at an annual rate of return equal to the utility's | ||
weighted average cost of capital as calculated under | ||
paragraph (1) of this subsection (h), including a revenue | ||
conversion factor calculated to recover or refund all | ||
additional income taxes that may be payable or receivable | ||
as a result of that return, of the revenue requirement | ||
reflected in rates for each calendar year, beginning with | ||
the calendar year in which the utility files its automatic | ||
adjustment clause tariff under this subsection (h), 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 Commission shall review |
the proposed tariff and may make changes to the tariff that | ||
are consistent with this Section and with the Commission's | ||
authority under Article IX of this Act, subject to notice | ||
and hearing. Following notice and hearing, the Commission | ||
shall issue an order approving, or approving with | ||
modification, such tariff no later than 240 days after the | ||
utility files its tariff. | ||
(i) No later than 90 days after the Commission enters an | ||
order, or order on rehearing, whichever is later, approving an | ||
electric utility's proposed tariff under subsection (d) of this | ||
Section, the electric utility shall provide notice of the | ||
availability of rebates under this Section. Subsequent to the | ||
utility's notice, any entity that offers in the State, for sale | ||
or lease, distributed generation and estimates the dollar | ||
saving attributable to such distributed generation shall | ||
provide estimates based on both delivery service credits and | ||
the rebates available under this Section.
| ||
(220 ILCS 5/16-108)
| ||
Sec. 16-108. Recovery of costs associated with the
| ||
provision of delivery and other services. | ||
(a) An electric utility shall file a delivery services
| ||
tariff with the Commission at least 210 days prior to the date
| ||
that it is required to begin offering such services pursuant
to | ||
this Act. An electric utility shall provide the components
of | ||
delivery services that are subject to the jurisdiction of
the |
Federal Energy Regulatory Commission at the same prices,
terms | ||
and conditions set forth in its applicable tariff as
approved | ||
or allowed into effect by that Commission. The
Commission shall | ||
otherwise have the authority pursuant to Article IX to review,
| ||
approve, and modify the prices, terms and conditions of those
| ||
components of delivery services not subject to the
jurisdiction | ||
of the Federal Energy Regulatory Commission,
including the | ||
authority to determine the extent to which such
delivery | ||
services should be offered on an unbundled basis. In making any | ||
such
determination the Commission shall consider, at a minimum, | ||
the effect of
additional unbundling on (i) the objective of | ||
just and reasonable rates, (ii)
electric utility employees, and | ||
(iii) the development of competitive markets
for electric | ||
energy services in Illinois.
| ||
(b) The Commission shall enter an order approving, or
| ||
approving as modified, the delivery services tariff no later
| ||
than 30 days prior to the date on which the electric utility
| ||
must commence offering such services. The Commission may
| ||
subsequently modify such tariff pursuant to this Act.
| ||
(c) The electric utility's
tariffs shall define the classes | ||
of its customers for purposes
of delivery services charges. | ||
Delivery services shall be priced and made
available to all | ||
retail customers electing delivery services in each such class
| ||
on a nondiscriminatory basis regardless of whether the retail | ||
customer chooses
the electric utility, an affiliate of the | ||
electric utility, or another entity
as its supplier of electric |
power and energy. Charges for delivery services
shall be cost | ||
based,
and shall allow the electric utility to recover the | ||
costs of
providing delivery services through its charges to its
| ||
delivery service customers that use the facilities and
services | ||
associated with such costs.
Such costs shall include the
costs | ||
of owning, operating and maintaining transmission and
| ||
distribution facilities. The Commission shall also be
| ||
authorized to consider whether, and if so to what extent, the
| ||
following costs are appropriately included in the electric
| ||
utility's delivery services rates: (i) the costs of that
| ||
portion of generation facilities used for the production and
| ||
absorption of reactive power in order that retail customers
| ||
located in the electric utility's service area can receive
| ||
electric power and energy from suppliers other than the
| ||
electric utility, and (ii) the costs associated with the use
| ||
and redispatch of generation facilities to mitigate
| ||
constraints on the transmission or distribution system in
order | ||
that retail customers located in the electric utility's
service | ||
area can receive electric power and energy from
suppliers other | ||
than the electric utility. Nothing in this
subsection shall be | ||
construed as directing the Commission to
allocate any of the | ||
costs described in (i) or (ii) that are
found to be | ||
appropriately included in the electric utility's
delivery | ||
services rates to any particular customer group or
geographic | ||
area in setting delivery services rates.
| ||
(d) The Commission shall establish charges, terms and
|
conditions for delivery services that are just and reasonable
| ||
and shall take into account customer impacts when establishing
| ||
such charges. In establishing charges, terms and conditions
for | ||
delivery services, the Commission shall take into account
| ||
voltage level differences. A retail customer shall have the
| ||
option to request to purchase electric service at any delivery
| ||
service voltage reasonably and technically feasible from the
| ||
electric facilities serving that customer's premises provided
| ||
that there are no significant adverse impacts upon system
| ||
reliability or system efficiency. A retail customer shall
also | ||
have the option to request to purchase electric service
at any | ||
point of delivery that is reasonably and technically
feasible | ||
provided that there are no significant adverse
impacts on | ||
system reliability or efficiency. Such requests
shall not be | ||
unreasonably denied.
| ||
(e) Electric utilities shall recover the costs of
| ||
installing, operating or maintaining facilities for the
| ||
particular benefit of one or more delivery services customers,
| ||
including without limitation any costs incurred in complying
| ||
with a customer's request to be served at a different voltage
| ||
level, directly from the retail customer or customers for
whose | ||
benefit the costs were incurred, to the extent such
costs are | ||
not recovered through the charges referred to in
subsections | ||
(c) and (d) of this Section.
| ||
(f) An electric utility shall be entitled but not
required | ||
to implement transition charges in conjunction with
the |
offering of delivery services pursuant to Section 16-104.
If an | ||
electric utility implements transition charges, it shall | ||
implement such
charges for all delivery services customers and | ||
for all customers described in
subsection (h), but shall not | ||
implement transition charges for power and
energy that a retail | ||
customer takes from cogeneration or self-generation
facilities | ||
located on that retail customer's premises, if such facilities | ||
meet
the following criteria:
| ||
(i) the cogeneration or self-generation facilities | ||
serve a single retail
customer and are located on that | ||
retail customer's premises (for purposes of
this | ||
subparagraph and subparagraph (ii), an industrial or | ||
manufacturing retail
customer and a third party contractor | ||
that is served by such industrial or
manufacturing customer | ||
through such retail customer's own electrical
distribution | ||
facilities under the circumstances described in subsection | ||
(vi) of
the definition of "alternative retail electric | ||
supplier" set forth in Section
16-102, shall be considered | ||
a single retail customer);
| ||
(ii) the cogeneration or self-generation facilities | ||
either (A) are sized
pursuant to generally accepted | ||
engineering standards for the retail customer's
electrical | ||
load at that premises (taking into account standby or other
| ||
reliability considerations related to that retail | ||
customer's operations at that
site) or (B) if the facility | ||
is a cogeneration facility located on the retail
customer's |
premises, the retail customer is the thermal host for that | ||
facility
and the facility has been designed to meet that | ||
retail customer's thermal
energy requirements resulting in | ||
electrical output beyond that retail
customer's electrical | ||
demand at that premises, comply with the operating and
| ||
efficiency standards applicable to "qualifying facilities" | ||
specified in title
18 Code of Federal Regulations Section | ||
292.205 as in effect on the effective
date of this | ||
amendatory Act of 1999;
| ||
(iii) the retail customer on whose premises the | ||
facilities are located
either has an exclusive right to | ||
receive, and corresponding obligation to pay
for, all of | ||
the electrical capacity of the facility, or in the case of | ||
a
cogeneration facility that has been designed to meet the | ||
retail customer's
thermal energy requirements at that | ||
premises, an identified amount of the
electrical capacity | ||
of the facility, over a minimum 5-year period; and
| ||
(iv) if the cogeneration facility is sized for the
| ||
retail customer's thermal load at that premises but exceeds | ||
the electrical
load, any sales of excess power or energy | ||
are made only at wholesale, are
subject to the jurisdiction | ||
of the Federal Energy Regulatory Commission, and
are not | ||
for the purpose of circumventing the provisions of this | ||
subsection (f).
| ||
If a generation facility located at a retail customer's | ||
premises does not meet
the above criteria, an electric utility |
implementing
transition charges shall implement a transition | ||
charge until December 31, 2006
for any power and energy taken | ||
by such retail customer from such facility as if
such power and | ||
energy had been delivered by the electric utility. Provided,
| ||
however, that an industrial retail customer that is taking | ||
power from a
generation facility that does not meet the above | ||
criteria but that is located
on such customer's premises will | ||
not be subject to a transition charge for the
power and energy | ||
taken by such retail customer from such generation facility if
| ||
the facility does not serve any other retail customer and | ||
either was installed
on behalf of the customer and for its own | ||
use prior to January 1, 1997, or is
both predominantly fueled | ||
by byproducts of such customer's manufacturing
process at such | ||
premises and sells or offers an average of 300 megawatts or
| ||
more of electricity produced from such generation facility into | ||
the wholesale
market.
Such charges
shall be calculated as | ||
provided in Section
16-102, and shall be collected
on each | ||
kilowatt-hour delivered under a
delivery services tariff to a | ||
retail customer from the date
the customer first takes delivery | ||
services until December 31,
2006 except as provided in | ||
subsection (h) of this Section.
Provided, however, that an | ||
electric utility, other than an electric utility
providing | ||
service to at least 1,000,000 customers in this State on | ||
January 1,
1999,
shall be entitled to petition for
entry of an | ||
order by the Commission authorizing the electric utility to
| ||
implement transition charges for an additional period ending no |
later than
December 31, 2008. The electric utility shall file | ||
its petition with
supporting evidence no earlier than 16 | ||
months, and no later than 12 months,
prior to December 31, | ||
2006. The Commission shall hold a hearing on the
electric | ||
utility's petition and shall enter its order no later than 8 | ||
months
after the petition is filed. The Commission shall | ||
determine whether and to
what extent the electric utility shall | ||
be authorized to implement transition
charges for an additional | ||
period. The Commission may authorize the electric
utility to | ||
implement transition charges for some or all of the additional
| ||
period, and shall determine the mitigation factors to be used | ||
in implementing
such transition charges; provided, that the | ||
Commission shall not authorize
mitigation factors less than | ||
110% of those in effect during the 12 months ended
December 31, | ||
2006. In making its determination, the Commission shall | ||
consider
the following factors: the necessity to implement | ||
transition charges for an
additional period in order to | ||
maintain the financial integrity of the electric
utility; the | ||
prudence of the electric utility's actions in reducing its | ||
costs
since the effective date of this amendatory Act of 1997; | ||
the ability of the
electric utility to provide safe, adequate | ||
and reliable service to retail
customers in its service area; | ||
and the impact on competition of allowing the
electric utility | ||
to implement transition charges for the additional period.
| ||
(g) The electric utility shall file tariffs that
establish | ||
the transition charges to be paid by each class of
customers to |
the electric utility in conjunction with the
provision of | ||
delivery services. The electric utility's tariffs
shall define | ||
the classes of its customers for purposes of
calculating | ||
transition charges. The electric utility's tariffs
shall | ||
provide for the calculation of transition charges on a
| ||
customer-specific basis for any retail customer whose average
| ||
monthly maximum electrical demand on the electric utility's
| ||
system during the 6 months with the customer's highest monthly
| ||
maximum electrical demands equals or exceeds 3.0 megawatts for
| ||
electric utilities having more than 1,000,000 customers, and
| ||
for other electric utilities for any customer that has an
| ||
average monthly maximum electrical demand on the electric
| ||
utility's system of one megawatt or more, and (A) for which
| ||
there exists data on the customer's usage during the 3 years
| ||
preceding the date that the customer became eligible to take
| ||
delivery services, or (B) for which there does not exist data
| ||
on the customer's usage during the 3 years preceding the date
| ||
that the customer became eligible to take delivery services,
if | ||
in the electric utility's reasonable judgment there exists
| ||
comparable usage information or a sufficient basis to develop
| ||
such information, and further provided that the electric
| ||
utility can require customers for which an individual
| ||
calculation is made to sign contracts that set forth the
| ||
transition charges to be paid by the customer to the electric
| ||
utility pursuant to the tariff.
| ||
(h) An electric utility shall also be entitled to file
|
tariffs that allow it to collect transition charges from
retail | ||
customers in the electric utility's service area that
do not | ||
take delivery services but that take electric power or
energy | ||
from an alternative retail electric supplier or from an
| ||
electric utility other than the electric utility in whose
| ||
service area the customer is located. Such charges shall be
| ||
calculated, in accordance with the definition of transition
| ||
charges in Section 16-102, for the period of time that the
| ||
customer would be obligated to pay transition charges if it
| ||
were taking delivery services, except that no deduction for
| ||
delivery services revenues shall be made in such calculation,
| ||
and usage data from the customer's class shall be used where
| ||
historical usage data is not available for the individual
| ||
customer. The customer shall be obligated to pay such charges
| ||
on a lump sum basis on or before the date on which the
customer | ||
commences to take service from the alternative retail
electric | ||
supplier or other electric utility, provided, that
the electric | ||
utility in whose service area the customer is
located shall | ||
offer the customer the option of signing a
contract pursuant to | ||
which the customer pays such charges
ratably over the period in | ||
which the charges would otherwise
have applied.
| ||
(i) An electric utility shall be entitled to add to the
| ||
bills of delivery services customers charges pursuant to
| ||
Sections 9-221, 9-222 (except as provided in Section 9-222.1), | ||
and Section
16-114 of this Act, Section 5-5 of the Electricity | ||
Infrastructure Maintenance
Fee Law, Section 6-5 of the |
Renewable Energy, Energy Efficiency, and Coal
Resources | ||
Development Law of 1997, and Section 13 of the Energy | ||
Assistance Act.
| ||
(j) If a retail customer that obtains electric power and
| ||
energy from cogeneration or self-generation facilities
| ||
installed for its own use on or before January 1, 1997,
| ||
subsequently takes service from an alternative retail electric
| ||
supplier or an electric utility other than the electric
utility | ||
in whose service area the customer is located for any
portion | ||
of the customer's electric power and energy
requirements | ||
formerly obtained from those facilities (including that amount
| ||
purchased from the utility in lieu of such generation and not | ||
as standby power
purchases, under a cogeneration displacement | ||
tariff in effect as of the
effective date of this amendatory | ||
Act of 1997), the
transition charges otherwise applicable | ||
pursuant to subsections (f), (g), or
(h) of this Section shall | ||
not be applicable
in any year to that portion of the customer's | ||
electric power
and energy requirements formerly obtained from | ||
those
facilities, provided, that for purposes of this | ||
subsection
(j), such portion shall not exceed the average | ||
number of
kilowatt-hours per year obtained from the | ||
cogeneration or
self-generation facilities during the 3 years | ||
prior to the
date on which the customer became eligible for | ||
delivery
services, except as provided in subsection (f) of | ||
Section
16-110.
| ||
(k) The electric utility shall be entitled to recover |
through tariffed charges all of the costs associated with the | ||
purchase of zero emission credits from zero emission facilities | ||
to meet the requirements of subsection (d-5) of Section 1-75 of | ||
the Illinois Power Agency Act. Such costs shall include the | ||
costs of procuring the zero emission credits, as well as the | ||
reasonable costs that the utility incurs as part of the | ||
procurement processes and to implement and comply with plans | ||
and processes approved by the Commission under such subsection | ||
(d-5). The costs shall be allocated across all retail customers | ||
through a single, uniform cents per kilowatt-hour charge | ||
applicable to all retail customers, which shall appear as a | ||
separate line item on each customer's bill. Beginning June 1, | ||
2017, the electric utility shall be entitled to recover through | ||
tariffed charges all of the costs associated with the purchase | ||
of renewable energy resources to meet the renewable energy | ||
resource standards of subsection (c) of Section 1-75 of the | ||
Illinois Power Agency Act, under procurement plans as approved | ||
in accordance with that Section and Section 16-111.5 of this | ||
Act. Such costs shall include the costs of procuring the | ||
renewable energy resources, as well as the reasonable costs | ||
that the utility incurs as part of the procurement processes | ||
and to implement and comply with plans and processes approved | ||
by the Commission under such Sections. The costs associated | ||
with the purchase of renewable energy resources shall be | ||
allocated across all retail customers in proportion to the | ||
amount of renewable energy resources the utility procures for |
such customers through a single, uniform cents per | ||
kilowatt-hour charge applicable to such retail customers, | ||
which shall appear as a separate line item on each such | ||
customer's bill. | ||
Notwithstanding whether the Commission has approved the | ||
initial long-term renewable resources procurement plan as of | ||
June 1, 2017, an electric utility shall place new tariffed | ||
charges into effect beginning with the June 2017 monthly | ||
billing period, to the extent practicable, to begin recovering | ||
the costs of procuring renewable energy resources, as those | ||
charges are calculated under the limitations described in | ||
subparagraph (E) of paragraph (1) of subsection (c) of Section | ||
1-75 of the Illinois Power Agency Act. Notwithstanding the date | ||
on which the utility places such new tariffed charges into | ||
effect, the utility shall be permitted to collect the charges | ||
under such tariff as if the tariff had been in effect beginning | ||
with the first day of the June 2017 monthly billing period. For | ||
the delivery years commencing June 1, 2017, June 1, 2018, and | ||
June 1, 2019, the electric utility shall deposit into a | ||
separate interest bearing account of a financial institution | ||
the monies collected under the tariffed charges. Any interest | ||
earned shall be credited back to retail customers under the | ||
reconciliation proceeding provided for in this subsection (k), | ||
provided that the electric utility shall first be reimbursed | ||
from the interest for the administrative costs that it incurs | ||
to administer and manage the account. Any taxes due on the |
funds in the account, or interest earned on it, will be paid | ||
from the account or, if insufficient monies are available in | ||
the account, from the monies collected under the tariffed | ||
charges to recover the costs of procuring renewable energy | ||
resources. Monies deposited in the account shall be subject to | ||
the review, reconciliation, and true-up process described in | ||
this subsection (k) that is applicable to the funds collected | ||
and costs incurred for the procurement of renewable energy | ||
resources. | ||
The electric utility shall be entitled to recover all of | ||
the costs identified in this subsection (k) through automatic | ||
adjustment clause tariffs applicable to all of the utility's | ||
retail customers that allow the electric utility to adjust its | ||
tariffed charges consistent with this subsection (k). The | ||
determination as to whether any excess funds were collected | ||
during a given delivery year for the purchase of renewable | ||
energy resources, and the crediting of any excess funds back to | ||
retail customers, shall not be made until after the close of | ||
the delivery year, which will ensure that the maximum amount of | ||
funds is available to implement the approved long-term | ||
renewable resources procurement plan during a given delivery | ||
year. The electric utility's collections under such automatic | ||
adjustment clause tariffs to recover the costs of renewable | ||
energy resources and zero emission credits from zero emission | ||
facilities shall be subject to separate annual review, | ||
reconciliation, and true-up against actual costs by the |
Commission under a procedure that shall be specified in the | ||
electric utility's automatic adjustment clause tariffs and | ||
that shall be approved by the Commission in connection with its | ||
approval of such tariffs. The procedure shall provide that any | ||
difference between the electric utility's collections under | ||
the automatic adjustment charges for an annual period and the | ||
electric utility's actual costs of renewable energy resources | ||
and zero emission credits from zero emission facilities for | ||
that same annual period shall be refunded to or collected from, | ||
as applicable, the electric utility's retail customers in | ||
subsequent periods. | ||
Nothing in this subsection (k) is intended to affect, | ||
limit, or change the right of the electric utility to recover | ||
the costs associated with the procurement of renewable energy | ||
resources for periods commencing before, on, or after June 1, | ||
2017, as otherwise provided in the Illinois Power Agency Act. | ||
Notwithstanding anything to the contrary, the Commission | ||
shall not conduct an annual review, reconciliation, and true-up | ||
associated with renewable energy resources' collections and | ||
costs for the delivery years commencing June 1, 2017, June 1, | ||
2018, June 1, 2019, and June 1, 2020, and shall instead conduct | ||
a single review, reconciliation, and true-up associated with | ||
renewable energy resources' collections and costs for the | ||
4-year period beginning June 1, 2017 and ending May 31, 2021, | ||
provided that the review, reconciliation, and true-up shall not | ||
be initiated until after August 31, 2021. During the 4-year |
period, the utility shall be permitted to collect and retain | ||
funds under this subsection (k) and to purchase renewable | ||
energy resources under an approved long-term renewable | ||
resources procurement plan using those funds regardless of the | ||
delivery year in which the funds were collected during the | ||
4-year period. | ||
If the amount of funds collected during the delivery year | ||
commencing June 1, 2017, exceeds the costs incurred during that | ||
delivery year, then up to half of this excess amount, as | ||
calculated on June 1, 2018, may be used to fund the programs | ||
under subsection (b) of Section 1-56 of the Illinois Power | ||
Agency Act in the same proportion the programs are funded under | ||
that subsection (b). However, any amount identified under this | ||
subsection (k) to fund programs under subsection (b) of Section | ||
1-56 of the Illinois Power Agency Act shall be reduced if it | ||
exceeds the funding shortfall. For purposes of this Section, | ||
"funding shortfall" means the difference between $200,000,000 | ||
and the amount appropriated by the General Assembly to the | ||
Illinois Power Agency Renewable Energy Resources Fund during | ||
the period that commences on the effective date of this | ||
amendatory act of the 99th General Assembly and ends on August | ||
1, 2018. | ||
If the amount of funds collected during the delivery year | ||
commencing June 1, 2018, exceeds the costs incurred during that | ||
delivery year, then up to half of this excess amount, as | ||
calculated on June 1, 2019, may be used to fund the programs |
under subsection (b) of Section 1-56 of the Illinois Power | ||
Agency Act in the same proportion the programs are funded under | ||
that subsection (b). However, any amount identified under this | ||
subsection (k) to fund programs under subsection (b) of Section | ||
1-56 of the Illinois Power Agency Act shall be reduced if it | ||
exceeds the funding shortfall. | ||
If the amount of funds collected during the delivery year | ||
commencing June 1, 2019, exceeds the costs incurred during that | ||
delivery year, then up to half of this excess amount, as | ||
calculated on June 1, 2020, may be used to fund the programs | ||
under subsection (b) of Section 1-56 of the Illinois Power | ||
Agency Act in the same proportion the programs are funded under | ||
that subsection (b). However, any amount identified under this | ||
subsection (k) to fund programs under subsection (b) of Section | ||
1-56 of the Illinois Power Agency Act shall be reduced if it | ||
exceeds the funding shortfall. | ||
The funding available under this subsection (k), if any, | ||
for the programs described under subsection (b) of Section 1-56 | ||
of the Illinois Power Agency Act shall not reduce the amount of | ||
funding for the programs described in subparagraph (O) of | ||
paragraph (1) of subsection (c) of Section 1-75 of the Illinois | ||
Power Agency Act. If funding is available under this subsection | ||
(k) for programs described under subsection (b) of Section 1-56 | ||
of the Illinois Power Agency Act, then the long-term renewable | ||
resources plan shall provide for the Agency to procure | ||
contracts in an amount that does not exceed the funding, and |
the contracts approved by the Commission shall be executed by | ||
the applicable utility or utilities. | ||
(l) A utility that has terminated any contract executed | ||
under subsection (d-5) of Section 1-75 of the Illinois Power | ||
Agency Act shall be entitled to recover any remaining balance | ||
associated with the purchase of zero emission credits prior to | ||
such termination, and such utility shall also apply a credit to | ||
its retail customer bills in the event of any over-collection. | ||
(m)(1) An electric utility that recovers its costs of | ||
procuring zero emission credits from zero emission | ||
facilities through a cents-per-kilowatthour charge under | ||
to subsection (k) of this Section shall be subject to the | ||
requirements of this subsection (m). Notwithstanding | ||
anything to the contrary, such electric utility shall, | ||
beginning on April 30, 2018, and each April 30 thereafter | ||
until April 30, 2026, calculate whether any reduction must | ||
be applied to such cents-per-kilowatthour charge that is | ||
paid by retail customers of the electric utility that are | ||
exempt from subsections (a) through (j) of Section 8-103B | ||
of this Act under subsection (l) of Section 8-103B. Such | ||
charge shall be reduced for such customers for the next | ||
delivery year commencing on June 1 based on the amount | ||
necessary, if any, to limit the annual estimated average | ||
net increase for the prior calendar year due to the future | ||
energy investment costs to no more than 1.3% of 5.98 cents | ||
per kilowatt-hour, which is the average amount paid per |
kilowatthour for electric service during the year ending | ||
December 31, 2015 by Illinois industrial retail customers, | ||
as reported to the Edison Electric Institute. | ||
The calculations required by this subsection (m) shall | ||
be made only once for each year, and no subsequent rate | ||
impact determinations shall be made. | ||
(2) For purposes of this Section, "future energy | ||
investment costs" shall be calculated by subtracting the | ||
cents-per-kilowatthour charge identified in subparagraph | ||
(A) of this paragraph (2) from the sum of the | ||
cents-per-kilowatthour charges identified in subparagraph | ||
(B) of this paragraph (2): | ||
(A) The cents-per-kilowatthour charge identified | ||
in the electric utility's tariff placed into effect | ||
under Section 8-103 of the Public Utilities Act that, | ||
on December 1, 2016, was applicable to those retail | ||
customers that are exempt from subsections (a) through | ||
(j) of Section 8-103B of this Act under subsection (l) | ||
of Section 8-103B. | ||
(B) The sum of the following | ||
cents-per-kilowatthour charges applicable to those | ||
retail customers that are exempt from subsections (a) | ||
through (j) of Section 8-103B of this Act under | ||
subsection (l) of Section 8-103B, provided that if one | ||
or more of the following charges has been in effect and | ||
applied to such customers for more than one calendar |
year, then each charge shall be equal to the average of | ||
the charges applied over a period that commences with | ||
the calendar year ending December 31, 2017 and ends | ||
with the most recently completed calendar year prior to | ||
the calculation required by this subsection (m): | ||
(i) the cents-per-kilowatthour charge to | ||
recover the costs incurred by the utility under | ||
subsection (d-5) of Section 1-75 of the Illinois | ||
Power Agency Act, adjusted for any reductions | ||
required under this subsection (m); and | ||
(ii) the cents-per-kilowatthour charge to | ||
recover the costs incurred by the utility under | ||
Section 16-107.6 of the Public Utilities Act. | ||
If no charge was applied for a given calendar year | ||
under item (i) or (ii) of this subparagraph (B), then | ||
the value of the charge for that year shall be zero. | ||
(3) If a reduction is required by the calculation | ||
performed under this subsection (m), then the amount of the | ||
reduction shall be multiplied by the number of years | ||
reflected in the averages calculated under subparagraph | ||
(B) of paragraph (2) of this subsection (m). Such reduction | ||
shall be applied to the cents-per-kilowatthour charge that | ||
is applicable to those retail customers that are exempt | ||
from subsections (a) through (j) of Section 8-103B of this | ||
Act under subsection (l) of Section 8-103B beginning with | ||
the next delivery year commencing after the date of the |
calculation required by this subsection (m). | ||
(4) The electric utility shall file a notice with the | ||
Commission on May 1 of 2018 and each May 1 thereafter until | ||
May 1, 2026 containing the reduction, if any, which must be | ||
applied for the delivery year which begins in the year of | ||
the filing. The notice shall contain the calculations made | ||
pursuant to this section. By October 1 of each year | ||
beginning in 2018, each electric utility shall notify the | ||
Commission if it appears, based on an estimate of the | ||
calculation required in this subsection (m), that a | ||
reduction will be required in the next year. | ||
(Source: P.A. 91-50, eff. 6-30-99; 92-690, eff. 7-18-02.)
| ||
(220 ILCS 5/16-108.5) | ||
Sec. 16-108.5. Infrastructure investment and | ||
modernization; regulatory reform. | ||
(a) (Blank). | ||
(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 (i) the infrastructure investment | ||
program consisting of the commitments and obligations | ||
described in this subsection (b) and (ii) the customer | ||
assistance program consisting of the commitments and | ||
obligations described in subsection (b-10) of this Section, | ||
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. These jobs shall | ||
include direct jobs, contractor positions, and induced jobs, | ||
but shall not include any portion of a job commitment, not | ||
specifically contingent on an amendatory Act of the 97th | ||
General Assembly becoming law, between a participating utility | ||
and a labor union that existed on December 30, 2011 (the | ||
effective date of Public Act 97-646) and that has not yet been | ||
fulfilled. A portion of the full-time equivalent jobs created | ||
by each participating utility shall include incremental | ||
personnel hired subsequent to December 30, 2011 (the effective |
date of Public Act 97-646). 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 | ||
October 26, 2011 (the effective date of Public Act 97-616), | ||
the participating utility shall, except as provided in | ||
subsection (b-5): | ||
(A) over a 5-year period, invest an estimated | ||
$1,300,000,000 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; | ||
(iii) wood pole inspection, treatment, and | ||
replacement programs; | ||
(iv) an estimated $200,000,000 for reducing | ||
the susceptibility of certain circuits to | ||
storm-related damage, including, but not limited | ||
to, high winds, thunderstorms, and ice storms; | ||
improvements may include, but are not limited to, | ||
overhead to underground conversion and other | ||
engineered outcomes for circuits; the | ||
participating utility shall prioritize the | ||
selection of circuits based on each circuit's | ||
historical susceptibility to storm-related damage |
and the ability to provide the greatest customer | ||
benefit upon completion of the improvements; to be | ||
eligible for improvement, the participating | ||
utility's ability to maintain proper tree | ||
clearances surrounding the overhead circuit must | ||
not have
been impeded by third parties; and | ||
(B) over a 10-year period, invest an estimated | ||
$1,300,000,000 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 | ||
October 26, 2011 (the effective date of Public Act 97-616), | ||
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. A participating utility may add | ||
reasonable construction ramp-up and ramp-down time to the | ||
investment periods specified in this subsection (b). For each | ||
such investment period, the ramp-up and ramp-down time shall | ||
not exceed a total of 6 months. | ||
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. Further, no later than | ||
45 days following the last day of the first, second, and third | ||
quarters of each year of the plan, a participating utility | ||
shall submit to the Commission a verified quarterly report for |
the prior quarter that includes (i) the total number of | ||
full-time equivalent jobs created during the prior quarter, | ||
(ii) the total number of employees as of the last day of the | ||
prior quarter, (iii) the total number of full-time equivalent | ||
hours in each job classification or job title, (iv) the total | ||
number of incremental employees and contractors in support of | ||
the investments undertaken pursuant to this subsection (b) for | ||
the prior quarter, and (v) any other information that the | ||
Commission may require by rule. | ||
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 $6,000 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. | ||
(b-10) All participating utilities shall make | ||
contributions for an energy low-income and support program in | ||
accordance with this subsection. Beginning no later than 180 | ||
days after a participating 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 December 30, 2011 (the effective date of Public Act 97-646), | ||
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, a participating utility other than a combination | ||
utility shall pay $10,000,000 per year for 5 years and a | ||
participating utility that is a combination utility shall pay | ||
$1,000,000 per year for 10 years to the energy low-income and | ||
support program, which is intended to fund customer assistance | ||
programs with the primary purpose being avoidance of
imminent | ||
disconnection. Such programs may include: | ||
(1) a residential hardship program that may partner | ||
with community-based
organizations, including senior | ||
citizen organizations, and provides grants to low-income | ||
residential customers, including low-income senior | ||
citizens, who demonstrate a hardship; | ||
(2) a program that provides grants and other bill | ||
payment concessions to veterans with disabilities who |
demonstrate a hardship and members of the armed services or | ||
reserve forces of the United States or members of the | ||
Illinois National Guard who are on active duty pursuant to | ||
an executive order of the President of the United States, | ||
an act of the Congress of the United States, or an order of | ||
the Governor and who demonstrate a
hardship; | ||
(3) a budget assistance program that provides tools and | ||
education to low-income senior citizens to assist them with | ||
obtaining information regarding energy usage and
effective | ||
means of managing energy costs; | ||
(4) a non-residential special hardship program that | ||
provides grants to non-residential customers such as small | ||
businesses and non-profit organizations that demonstrate a | ||
hardship, including those providing services to senior | ||
citizen and low-income customers; and | ||
(5) a performance-based assistance program that | ||
provides grants to encourage residential customers to make | ||
on-time payments by matching a portion of the customer's | ||
payments or providing credits towards arrearages. | ||
The payments made by a participating utility pursuant to | ||
this subsection (b-10) shall not be a recoverable expense. A | ||
participating utility may elect to fund either new or existing | ||
customer assistance programs, including, but not limited to, | ||
those that are administered by the utility. | ||
Programs that use funds that are provided by a | ||
participating utility to reduce utility bills may be |
implemented through tariffs that are filed with and reviewed by | ||
the Commission. If a utility elects to file tariffs with the | ||
Commission to implement all or a portion of the programs, those | ||
tariffs shall, regardless of the date actually filed, be deemed | ||
accepted and approved, and shall become effective on December | ||
30, 2011 (the effective date of Public Act 97-646). The | ||
participating utilities whose customers benefit from the funds | ||
that are disbursed as contemplated in this Section shall file | ||
annual reports documenting the disbursement of those funds with | ||
the Commission. The Commission has the authority to audit | ||
disbursement of the funds to ensure they were disbursed | ||
consistently with this Section. | ||
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-10) shall immediately | ||
terminate. | ||
(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 October 26, 2011 (the effective date of | ||
Public Act 97-616), 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. In the event the participating utility, prior to December | ||
30, 2011 (the effective date of Public Act 97-646), filed | ||
electric delivery services tariffs with the Commission | ||
pursuant to Section 9-201 of this Act that are related to the | ||
recovery of its electric delivery services costs that are still | ||
pending on December 30, 2011 (the effective date of Public Act | ||
97-646), the participating utility shall, at the time it files | ||
its performance-based formula rate tariff with the Commission, | ||
also file a notice of withdrawal with the Commission to | ||
withdraw the electric delivery services tariffs previously | ||
filed pursuant to Section 9-201 of this Act. Upon receipt of | ||
such notice, the Commission shall dismiss with prejudice any | ||
docket that had been initiated to investigate the electric | ||
delivery services tariffs filed pursuant to Section 9-201 of | ||
this Act, and such tariffs and the record related thereto shall | ||
not be the subject of any further hearing, investigation, or | ||
proceeding of any kind related to rates for electric delivery | ||
services. |
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 year-end capital | ||
structure for the applicable calendar year, excluding | ||
goodwill, subject to a determination of prudence and | ||
reasonableness consistent with Commission practice and |
law. To enable the financing of the incremental capital | ||
expenditures, including regulatory assets, for electric | ||
utilities that serve less than 3,000,000 retail customers | ||
but more than 500,000 retail customers in the State, a | ||
participating electric utility's actual year-end capital | ||
structure that includes a common equity ratio, excluding | ||
goodwill, of up to and including 50% of the total capital | ||
structure shall be deemed reasonable and used to set rates. | ||
(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) 580 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 at a rate equal to the | ||
utility's weighted average cost of long-term debt, on | ||
the pension assets as, and in the amount, reported in | ||
Account 186 (or in such other Account or Accounts as | ||
such asset may subsequently be recorded) of the | ||
utility's most recently filed FERC Form 1, net of |
deferred tax benefits; | ||
(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 October 26, | ||
2011 (the effective date of Public Act 97-616); | ||
(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, as described | ||
in subsection (d) of this Section, with interest, 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 October 26, 2011 (the effective date of | ||
Public Act 97-616), 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 | ||
(determined using a year-end rate base) that uses amounts | ||
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 |
calculated at a rate equal to the utility's weighted | ||
average cost of capital approved by the Commission for the | ||
prior rate year, 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 determined using a year-end rate base | ||
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, which shall be calculated as the sum of 590 basis | ||
points plus 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. 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 determined using a year-end | ||
rate base for the applicable calendar year 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 (i.e., in equal segments) 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 (3), 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. | ||
(3.5) For a participating utility other than a | ||
combination utility, 20% improvement in the System Average | ||
Interruption Frequency Index for its Northeastern Region, | ||
using a baseline of the average of the data from 2001 | ||
through 2010. For purposes of this paragraph (3.5), |
Northeastern 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 (3.5) 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, and provided further that the
| ||
participating utility shall exclude 9 extreme weather event | ||
days when calculating each year of the baseline period to the | ||
extent that there are 9 such days in a given year of the | ||
baseline period. 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 (3.5) 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 for the metrics set forth in subparagraphs (1) through | ||
(4) and (9) of this subsection (f), 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, | ||
and when the 10-year period shall commence for the metrics set | ||
forth in subparagraphs (5) through (8) of this subsection (f), | ||
provided that it begins no later than 14 months following the | ||
date on which the Commission enters its order approving the | ||
utility's Advanced Metering Infrastructure Deployment Plan | ||
pursuant to subsection (c) of Section 16-108.6 of this Act. | ||
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 of | ||
no more than a total of 30 basis points in each of the first 3 | ||
years, of no more than a total of 34 basis points
in each of the | ||
3 years thereafter, and of no more than a total of 38 basis | ||
points in each
of the 4 years thereafter, as follows: | ||
(1) With respect to each of the incremental annual | ||
performance goals established pursuant to paragraph (1) of | ||
subsection (f) of this Section, | ||
(A) 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 as
follows: during years 1 | ||
through 3, by 5 basis points; during years 4 through 6, | ||
by 6 basis points; and during years 7 through 10, by 7 | ||
basis points; and | ||
(B) 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 as follows: during years 1 through 3, | ||
by 10 basis points; during years 4 through 6, by 12
| ||
basis points; and during years 7 through 10, by 14 | ||
basis points. | ||
(2) With respect to each of the incremental annual | ||
performance goals established pursuant to paragraph (2) of | ||
subsection (f) of this Section, for each year that the | ||
participating utility does not achieve each such goal, the | ||
participating utility's return on equity shall be reduced | ||
as follows: during years 1 through 3, by 5 basis points; | ||
during years 4
through 6, by 6 basis points; and during | ||
years 7 through 10, by 7 basis points. | ||
(3) With respect to each of the incremental annual | ||
performance goals established
pursuant to paragraphs (3) | ||
and (3.5) of subsection (f) of this Section, for each year | ||
that a participating utility other than a combination | ||
utility does not achieve both such
goals, the participating | ||
utility's return on equity shall be reduced as follows: | ||
during years 1 through 3, by 5 basis points; during years 4 | ||
through 6, by 6 basis points; and during years 7 through | ||
10, by 7 basis points. | ||
(4) With respect to each of the incremental annual | ||
performance goals established
pursuant to paragraph (4) of | ||
subsection (f) of this Section, for each year that the | ||
participating utility does not achieve each such goal, the |
participating utility's return
on equity shall be reduced | ||
as follows: during years 1 through 3, by 5 basis points;
| ||
during years 4 through 6, by 6 basis points; and during | ||
years 7 through 10, by 7 basis points. | ||
(5) 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. | ||
(6) 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, which together measure non-operational | ||
customer savings and benefits
relating to the | ||
implementation of the Advanced Metering Infrastructure | ||
Deployment
Plan, as defined in Section 16-108.6 of this | ||
Act, 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. |
The financial penalties shall be applied as described in | ||
this subsection (f-5) for the 12-month period in which the | ||
deficiency occurred 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. "The average amount paid per | ||
kilowatthour" shall be based on the participating utility's | ||
tariffed rates actually in effect and shall not be calculated | ||
using any hypothetical rate or adjustments to actual charges | ||
(other than as specified for energy efficiency) as an input. | ||
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 |
October 26, 2011 (the effective date of Public Act 97-616). 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, 2019 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 , other than this subsection (h), do not | ||
become inoperative after December 31, 2019, 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). Public Act 97-616 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.
| ||
(k) The changes made in subsections (c) and (d) of this | ||
Section by Public Act 98-15 are intended to be a restatement | ||
and clarification of existing law, and intended to give binding | ||
effect to the provisions of House Resolution 1157 adopted by | ||
the House of Representatives of the 97th General Assembly and | ||
Senate Resolution 821 adopted by the Senate of the 97th General | ||
Assembly that are reflected in paragraph (3) of this | ||
subsection. In addition, Public Act 98-15 preempts and | ||
supersedes any final Commission orders entered in Docket Nos. | ||
11-0721, 12-0001, 12-0293, and 12-0321 to the extent |
inconsistent with the amendatory language added to subsections | ||
(c) and (d). | ||
(1) No earlier than 5 business days after May 22, 2013 | ||
(the effective date of Public Act 98-15), each | ||
participating utility shall file any tariff changes | ||
necessary to implement the amendatory language set forth in | ||
subsections (c) and (d) of this Section by Public Act 98-15 | ||
and a revised revenue requirement under the participating | ||
utility's performance-based formula rate. The Commission | ||
shall enter a final order approving such tariff changes and | ||
revised revenue requirement within 21 days after the | ||
participating utility's filing. | ||
(2) Notwithstanding anything that may be to the | ||
contrary, a participating utility may file a tariff to | ||
retroactively recover its previously unrecovered actual | ||
costs of delivery service that are no longer subject to | ||
recovery through a reconciliation adjustment under | ||
subsection (d) of this Section. This retroactive recovery | ||
shall include any derivative adjustments resulting from | ||
the changes to subsections (c) and (d) of this Section by | ||
Public Act 98-15. Such tariff shall allow the utility to | ||
assess, on current customer bills over a period of 12 | ||
monthly billing periods, a charge or credit related to | ||
those unrecovered costs with interest at the utility's | ||
weighted average cost of capital during the period in which | ||
those costs were unrecovered. A participating utility may |
file a tariff that implements a retroactive charge or | ||
credit as described in this paragraph for amounts not | ||
otherwise included in the tariff filing provided for in | ||
paragraph (1) of this subsection (k). The Commission shall | ||
enter a final order approving such tariff within 21 days | ||
after the participating utility's filing. | ||
(3) The tariff changes described in paragraphs (1) and | ||
(2) of this subsection (k) shall relate only to, and be | ||
consistent with, the following provisions of Public Act | ||
98-15: paragraph (2) of subsection (c) regarding year-end | ||
capital structure, subparagraph (D) of paragraph (4) of | ||
subsection (c) regarding pension assets, and subsection | ||
(d) regarding the reconciliation components related to | ||
year-end rate base and interest calculated at a rate equal | ||
to the utility's weighted average cost of capital. | ||
(4) Nothing in this subsection is intended to effect a | ||
dismissal of or otherwise affect an appeal from any final | ||
Commission orders entered in Docket Nos. 11-0721, 12-0001, | ||
12-0293, and 12-0321 other than to the extent of the | ||
amendatory language contained in subsections (c) and (d) of | ||
this Section of Public Act 98-15. | ||
(l) Each participating utility shall be deemed to have been | ||
in full compliance with all requirements of subsection (b) of | ||
this Section, subsection (c) of this Section, Section 16-108.6 | ||
of this Act, and all Commission orders entered pursuant to | ||
Sections 16-108.5 and 16-108.6 of this Act, up to and including |
May 22, 2013 (the effective date of Public Act 98-15). The | ||
Commission shall not undertake any investigation of such | ||
compliance and no penalty shall be assessed or adverse action | ||
taken against a participating utility for noncompliance with | ||
Commission orders associated with subsection (b) of this | ||
Section, subsection (c) of this Section, and Section 16-108.6 | ||
of this Act prior to such date. Each participating utility | ||
other than a combination utility shall be permitted, without | ||
penalty, a period of 12 months after such effective date to | ||
take actions required to ensure its infrastructure investment | ||
program is in compliance with subsection (b) of this Section | ||
and with Section 16-108.6 of this Act. Provided further, the | ||
following subparagraphs shall apply to a participating utility | ||
other than a combination utility: | ||
(A) if the Commission has initiated a proceeding | ||
pursuant to subsection (e) of Section 16-108.6 of this Act | ||
that is pending as of May 22, 2013 (the effective date of | ||
Public Act 98-15), then the order entered in such | ||
proceeding shall, after notice and hearing, accelerate the | ||
commencement of the meter deployment schedule approved in | ||
the final Commission order on rehearing entered in Docket | ||
No. 12-0298; | ||
(B) if the Commission has entered an order pursuant to | ||
subsection (e) of Section 16-108.6 of this Act prior to May | ||
22, 2013 (the effective date of Public Act 98-15) that does | ||
not accelerate the commencement of the meter deployment |
schedule approved in the final Commission order on | ||
rehearing entered in Docket No. 12-0298, then the utility | ||
shall file with the Commission, within 45 days after such | ||
effective date, a plan for accelerating the commencement of | ||
the utility's meter deployment schedule approved in the | ||
final Commission order on rehearing entered in Docket No. | ||
12-0298; the Commission shall reopen the proceeding in | ||
which it entered its order pursuant to subsection (e) of | ||
Section 16-108.6 of this Act and shall, after notice and | ||
hearing, enter an amendatory order that approves or | ||
approves as modified such accelerated plan within 90 days | ||
after the utility's filing; or | ||
(C) if the Commission has not initiated a proceeding | ||
pursuant to subsection (e) of Section 16-108.6 of this Act | ||
prior to May 22, 2013 (the effective date of Public Act | ||
98-15), then the utility shall file with the Commission, | ||
within 45 days after such effective date, a plan for | ||
accelerating the commencement of the utility's meter | ||
deployment schedule approved in the final Commission order | ||
on rehearing entered in Docket No. 12-0298 and the | ||
Commission shall, after notice and hearing, approve or | ||
approve as modified such plan within 90 days after the | ||
utility's filing. | ||
Any schedule for meter deployment approved by the | ||
Commission pursuant to this subsection (l) shall take into | ||
consideration procurement times for meters and other equipment |
and operational issues. Nothing in Public Act 98-15 shall | ||
shorten or extend the end dates for the 5-year or 10-year | ||
periods set forth in subsection (b) of this Section or Section | ||
16-108.6 of this Act. Nothing in this subsection is intended to | ||
address whether a participating utility has, or has not, | ||
satisfied any or all of the metrics and performance goals | ||
established pursuant to subsection (f) of this Section. | ||
(m) The provisions of Public Act 98-15 are severable under | ||
Section 1.31 of the Statute on Statutes. | ||
(Source: P.A. 98-15, eff. 5-22-13; 98-1175, eff. 6-1-15; | ||
99-143, eff. 7-27-15; 99-642, eff. 7-28-16.) | ||
(220 ILCS 5/16-108.10 new) | ||
Sec. 16-108.10. Energy low-income and support program. | ||
Beginning in 2017, without obtaining any approvals from the | ||
Commission or any other agency, regardless of whether any such | ||
approval would otherwise be required, a participating utility | ||
that is not a combination utility, as defined by Section | ||
16-108.5 of this Act, shall contribute $10,000,000 per year for | ||
5 years to the energy low-income and support program, which is | ||
intended to fund customer assistance programs with the primary | ||
purpose being avoidance of imminent disconnection and | ||
reconnecting customers who have been disconnected for | ||
non-payment. Such programs may include: | ||
(1) a residential hardship program that may partner | ||
with community-based organizations, including senior |
citizen organizations, and provides grants to low-income | ||
residential customers, including low-income senior | ||
citizens, who demonstrate a hardship; | ||
(2) a program that provides grants and other bill | ||
payment concessions to disabled veterans who demonstrate a | ||
hardship and members of the armed services or reserve | ||
forces of the United States or members of the Illinois | ||
National Guard who are on active duty under an executive | ||
order of the President of the United States, an act of the | ||
Congress of the United States, or an order of the Governor | ||
and who demonstrate a hardship; | ||
(3) a budget assistance program that provides tools and | ||
education to low-income senior citizens to assist them with | ||
obtaining information regarding energy usage and effective | ||
means of managing energy costs; | ||
(4) a non-residential special hardship program that | ||
provides grants to non-residential customers, such as | ||
small businesses and non-profit organizations, that | ||
demonstrate a hardship, including those providing services | ||
to senior citizen and low-income customers; and | ||
(5) a performance-based assistance program that | ||
provides grants to encourage residential customers to make | ||
on-time payments by matching a portion of the customer's | ||
payments or providing credits towards arrearages. | ||
The payments made by a participating utility under this | ||
Section shall not be a recoverable expense. A participating |
utility may elect to fund either new or existing customer | ||
assistance programs, including, but not limited to, those that | ||
are administered by the utility. | ||
Programs that use funds that are provided by an electric | ||
utility to reduce utility bills may be implemented through | ||
tariffs that are filed with and reviewed by the Commission. If | ||
a utility elects to file tariffs with the Commission to | ||
implement all or a portion of the programs, those tariffs | ||
shall, regardless of the date actually filed, be deemed | ||
accepted and approved and shall become effective on the first | ||
business day after they are filed. The electric utilities whose | ||
customers benefit from the funds that are disbursed as | ||
contemplated in this Section shall file annual reports | ||
documenting the disbursement of those funds with the | ||
Commission. The Commission may audit disbursement of the funds | ||
to ensure they were disbursed consistently with this Section. | ||
If the Commission finds that a participating utility is no | ||
longer eligible to update the performance-based formula rate | ||
tariff under subsection (d) of Section 16-108.5 of this Act or | ||
the performance-based formula rate is otherwise terminated, | ||
then the participating utility's obligations under this | ||
Section shall immediately terminate. | ||
(220 ILCS 5/16-108.11 new) | ||
Sec. 16-108.11. Employment opportunities. To the extent | ||
feasible and consistent with State and federal law, the |
procurement of contracted labor, materials, and supplies by | ||
electric utilities in connection with the offering of delivery | ||
services under Article XVI of this Act 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. | ||
(220 ILCS 5/16-108.12 new) | ||
Sec. 16-108.12. Utility job training program. | ||
(a) An electric utility that serves more than 3,000,000 | ||
customers in the State shall spend $10,000,000 per year in | ||
2017, 2021, and 2025 to fund the programs described in this | ||
Section. | ||
(1) The utility shall fund a solar training pipeline | ||
program in the amount of $3,000,000. The utility may | ||
administer the program or contract with another entity to | ||
administer the program. The program shall be designed to | ||
establish a solar installer training pipeline for projects | ||
authorized under Section 1-56 of the Illinois Power Agency | ||
Act and to establish a pool of trained installers who will | ||
be able to install solar projects authorized under | ||
subsection (c) of Section 1-75 of the Illinois Power Agency | ||
Act and otherwise. The program may include single event | ||
training programs. The program described in this paragraph | ||
(1) shall be designed to ensure that entities that offer |
training are located in, and trainees are recruited from, | ||
the same communities that the program aims to serve and | ||
that the program provides trainees with the opportunity to | ||
obtain real-world experience. The program described in | ||
this paragraph (1) shall also be designed to assist | ||
trainees so that they can obtain applicable certifications | ||
or participate in an apprenticeship program. The utility or | ||
administrator shall include funding for programs that | ||
provide training to individuals who are or were foster | ||
children or that target persons with a record who are | ||
transitioning with job training and job placement | ||
programs. The program shall include an incentive to | ||
facilitate an increase of hiring of qualified persons who | ||
are or were foster children and persons with a record. It | ||
is a goal of the program described in this paragraph (1) | ||
that at least 50% of the trainees in this program come from | ||
within environmental justice communities and that 2,000 | ||
jobs are created for persons who are or were foster | ||
children and persons with a record. | ||
(2) The utility shall fund a craft apprenticeship | ||
program in the amount of $3,000,000. The program shall be | ||
an accredited or otherwise recognized apprenticeship | ||
program over a period not to exceed 4 years, for particular | ||
crafts, trades, or skills in the electric industry that | ||
may, but need not, be related to solar installation. | ||
(3) The utility shall fund multi-cultural jobs |
programs in the amount of $4,000,000. The funding shall be | ||
allocated in the applicable year to individual programs as | ||
set forth in subparagraphs (A) through (F) of this | ||
paragraph (3) and may, but need not, be related to solar | ||
installation, over a period not to exceed 4 years, by | ||
diversity-focused community organizations that have a | ||
record of successfully delivering job training. | ||
(A) $1,000,000 to a community-based civil rights | ||
and human services not-for-profit organization that | ||
provides economic development, human capital, and | ||
education program services. | ||
(B) $500,000 to a not-for-profit organization that | ||
is also an education institution that offers training | ||
programs approved by the Illinois State Board of | ||
Education and United States Department of Education | ||
with the goal of providing workforce initiatives | ||
leading to economic independence. | ||
(C) $500,000 to a not-for-profit organization | ||
dedicated to developing the educational and leadership | ||
capacity of minority youth through the operation of | ||
schools, youth leadership clubs and youth development | ||
centers. | ||
(D) $1,000,000 to a not-for-profit organization | ||
dedicated to providing equal access to opportunities | ||
in the construction industry that offer training | ||
programs that include Occupational Safety and Health |
Administration 10 and 30 certifications, Environmental | ||
Protection Agency Renovation, Repair and Painting | ||
Certification and Leadership in Energy and | ||
Environmental Design Accredited Green Associate Exam | ||
preparation courses. | ||
(E) $500,000 to a non-profit organization that has | ||
a proven record of successfully implementing utility | ||
industry training programs, with expertise in creating | ||
programs that strengthen the economics of communities | ||
including technical training workshops and economic | ||
development through community and financial partners. | ||
(F) $500,000 to a nonprofit organization that | ||
provides family services, housing education, job and | ||
career education opportunities that has successfully | ||
partnered with the utility on electric industry job | ||
training. | ||
For the purposes of this Section, "person with a record" | ||
means any person who (1) has been convicted of a crime in this | ||
State or of an offense in any other jurisdiction, not including | ||
an offense or attempted offense that would subject a person to | ||
registration under the Sex Offender Registration Act; (2) has a | ||
record of an arrest or an arrest that did not result in | ||
conviction for any crime in this State or of an offense in any | ||
other jurisdiction; or (3) has a juvenile delinquency | ||
adjudication. | ||
(b) Within 60 days after the effective date of this |
amendatory Act of the 99th General Assembly, an electric | ||
utility that serves more than 3,000,000 customers in the State | ||
shall file with the Commission a plan to implement this | ||
Section. Within 60 days after the plan is filed, the Commission | ||
shall enter an order approving the plan if it is consistent | ||
with this Section or, if the plan is not consistent with this | ||
Section, the Commission shall explain the deficiencies, after | ||
which time the utility shall file a new plan. The utility shall | ||
use the funds described in subparagraph (O) of paragraph (1) of | ||
subsection (c) of Section 1-75 of the Illinois Power Agency Act | ||
to pay for the Commission approved programs under this Section. | ||
(220 ILCS 5/16-108.15 new) | ||
Sec. 16-108.15. Rate impacts. | ||
(a) Each electric utility that serves more than 500,000 | ||
retail customers in the State shall file with the Commission | ||
the reports required by this Section, which shall identify the | ||
actual and projected average monthly increases in residential | ||
retail customers' electric bills due to future energy | ||
investment costs for the applicable period or periods. | ||
(b) The average monthly increase calculation shall be | ||
comprised of the following components: | ||
(1) Beginning with the 2017 calendar year, the average | ||
monthly amount paid by residential retail customers, | ||
expressed on a cents-per-kilowatthour basis, to recover | ||
future energy investment costs, which include the charges |
to recover the costs incurred by the utility under the | ||
following provisions: | ||
(A) Sections 8-103, Section 8-103B, and 16-111.5B | ||
of this Act, as applicable, and as such costs may be | ||
recovered under Sections 8-103, 8-103B, 16-111.5B or | ||
Section 16-108.5 of this Act; | ||
(B) subsection (d-5) of Section 1-75 of the | ||
Illinois Power Agency Act, as such costs may be | ||
recovered under subsection (k) of Section 16-108 of | ||
this Act; and | ||
(C) Section 16-107.6 of this Act. | ||
Beginning with the 2018 calendar year, each of the | ||
average monthly charges calculated in subparagraphs (A) | ||
through (C) of this paragraph (1) shall be equal to the | ||
average of each such charge applied over a period that | ||
commences with the calendar year ending December 31, 2017 | ||
and ends with the most recently completed calendar year | ||
prior to the calculation or calculations required by this | ||
Section. | ||
(2) The sum of the following: | ||
(A) net energy savings to residential retail | ||
customers that are attributable to the implementation | ||
of voltage optimization measures under Section 8-103B | ||
of this Act, expressed on a cents-per-kilowatthour | ||
basis, which are estimated energy and capacity | ||
benefits for residential retail customers minus the |
measure costs recovered from those customers, divided | ||
by the total number of residential retail customers, | ||
which quotient shall be divided by the months in the | ||
relevant period; notwithstanding this subparagraph | ||
(A), a utility may elect not to include an estimate of | ||
net energy savings as described in this subparagraph | ||
(A), in which case the value under this subparagraph | ||
(A) shall be zero; and | ||
(B) for an electric utility that serves more than | ||
3,000,000 retail customers in the State, the benefits | ||
of the programs described in Section 16-108.10 of this | ||
Act, which are $0.00030 per kilowatthour for the 2017, | ||
2018, 2019, 2020, and 2021 calendar years. | ||
Beginning with the 2018 calendar year, each of the | ||
values identified in subparagraphs (A) and (B) of this | ||
paragraph (2) shall be equal to the average of each | ||
such value during a period that commences with the | ||
calendar year ending December 31, 2017 and ends with | ||
the most recently completed calendar year prior to the | ||
calculation or calculations required by this Section. | ||
(3) For an electric utility that serves more than | ||
3,000,000 retail customers in the State, the residential | ||
retail customer energy efficiency charges shall be $2.33 | ||
per month for the 2017 calendar year, provided that such | ||
charge shall be increased by 4% per year thereafter; for an | ||
electric utility that serves more than 500,000 but less |
than 3,000,000 retail customers in the State, the | ||
residential retail customer energy efficiency charges | ||
shall be $3.94 per month for the 2017 calendar year, | ||
provided that such charge shall be increased by 4% per year | ||
thereafter. Beginning with the 2018 calendar year, this | ||
charge shall be equal to the average of the charges applied | ||
over a period that commences with the calendar year ending | ||
December 31, 2017 and ends with the most recently completed | ||
calendar year prior to the calculation or calculations | ||
required by this Section. | ||
(c)(1) No later than June 30, 2017, an electric utility | ||
subject to this Section shall submit a report to the | ||
Commission that sets forth the utility's rolling 10-year | ||
projection of the values of each of the components | ||
described in paragraphs (1) through (3) of subsection (b) | ||
of this Section. No later than February 15, 2018 and every | ||
February 15 thereafter until February 15, 2031, each | ||
utility shall submit a report to the Commission that | ||
identifies the value of the actual charges applied during | ||
the immediately preceding calendar year and updates its | ||
rolling 10-year projection based on such actual charges | ||
provided that, beginning with the February 15, 2021 report | ||
and for each report thereafter, the period of time covered | ||
by such projection shall not extend beyond December 31, | ||
2030. Each report submitted under this subsection (c) shall | ||
calculate the actual average monthly increase in |
residential retail customers' electric bills due to future | ||
energy investment costs during the immediately preceding | ||
calendar year and shall also calculate the projected | ||
average monthly increase in residential retail customers' | ||
electric bills due to such costs over the rolling 10-year | ||
period. Such calculations shall be performed by | ||
subtracting the sum of paragraph (2) of subsection (b) of | ||
this Section from the sum of paragraph (1) of such | ||
subsection (b), multiplying such difference by, as | ||
applicable, the actual or forecasted average monthly | ||
kilowatthour consumption for the residential retail | ||
customer class for the applicable period, and subtracting | ||
from such product the applicable value identified under | ||
paragraph (3) of such subsection (b). | ||
If the actual or projected average monthly increase for | ||
residential retail customers of electric utility that | ||
serves more than 3 million retail customers in the State | ||
exceeds $0.25, or the actual or projected average monthly | ||
increase for residential retail customers of an electric | ||
utility that serves more than 500,000 but less than 3 | ||
million retail customers in the State exceeds $0.35, then | ||
the applicable utility shall comply with the provisions of | ||
paragraphs (2) through (4) of this subsection (c), as | ||
applicable. | ||
(2) If the projected average monthly increase for | ||
residential retail customers during a calendar year |
exceeds the applicable limitation set forth in paragraph | ||
(1) of this subsection (c), then the utility shall comply | ||
with the following provisions, as applicable: | ||
(A) If an exceedance is projected during the first | ||
four calendar year of the rolling 10-year projection, | ||
then the utility shall include in its report submitted | ||
under paragraph (1) of this subsection (c) the | ||
utility's proposal or proposals to decrease the future | ||
energy investment costs described in paragraph (1) of | ||
subsection (b) of this Section to ensure that the | ||
limitation set forth in such paragraph (1) is not | ||
exceeded. The Commission shall, after notice and | ||
hearing, enter an order directing the utility to | ||
implement one or more proposals, as such proposals may | ||
be modified by the Commission. The Commission shall | ||
have the authority under this subparagraph (A) to | ||
approve modifications to the contracts executed under | ||
subsection (d-5) of Section 1-75 of the Illinois Power | ||
Agency Act. If the Commission approves modifications | ||
to such contracts, then the supplier shall have the | ||
option of accepting the modifications or terminating | ||
the modified contract or contracts, subject to the | ||
termination requirements and notice provisions set | ||
forth in item (i) of subparagraph (B) of paragraph (4) | ||
of this Section. | ||
(B) If an exceedance is projected during any |
calendar year during the last 6 years of the 10-year | ||
projection, then the utility shall demonstrate in its | ||
report submitted under paragraph (1) of this | ||
subsection (c) how the utility will reduce the future | ||
energy investment costs described in paragraph (1) of | ||
subsection (b) of this Section to ensure that the | ||
limitation set forth in such paragraph (1) is not | ||
exceeded. | ||
(3) If the actual average monthly increase for | ||
residential retail customers during a calendar year | ||
exceeded the limitation set forth in paragraph (1) of this | ||
subsection (c), then the utility shall prepare and file | ||
with the Commission, at the time it submits its report | ||
under paragraph (1) of this subsection (c), a corrective | ||
action plan that identifies how the utility will | ||
immediately reduce expenditures so that the utility will be | ||
in compliance with such limitation beginning on January 1 | ||
of the next calendar year. The Commission shall initiate an | ||
investigation to determine the factors that contributed to | ||
the actual average monthly increase exceeding such | ||
limitation for the applicable calendar year, and shall, | ||
after notice and hearing, enter an order approving, or | ||
approving with modification, the utility's corrective | ||
action plan within 120 days after the utility files such | ||
plan. The Commission shall also submit a report to the | ||
General Assembly no later than 30 days after it enters such |
order, and the report shall explain the results of the | ||
Commission's investigation and findings and conclusions of | ||
its order. | ||
(4) If the actual average monthly increase for | ||
residential retail customers during a calendar year | ||
exceeds the limitation set forth in paragraph (1) of this | ||
subsection (c) for two consecutive years, then the utility | ||
shall indicate in its report filed under paragraph (1) of | ||
this subsection (c) whether the utility will proceed with | ||
or terminate the future energy investments described and | ||
authorized under subsection (d-5) of the Illinois Power | ||
Agency Act and Sections 8-103B and 16-107.6 of this Act. | ||
The utility shall be subject to the requirements of | ||
subparagraph (A) or (B) of this paragraph (4), as | ||
applicable. | ||
(A) If the utility indicates that it will proceed | ||
with the future energy investments, then it shall be | ||
subject to the corrective action plan requirements set | ||
forth in paragraph (3) of this subsection (c). In | ||
addition, the utility must commit to apply a credit to | ||
residential retail customers' bills if the actual | ||
average monthly increase for such customers exceeds | ||
the limitation set forth in paragraph (1) of this | ||
subsection (c) for the year in which the utility files | ||
its corrective action plan, which credit shall be in an | ||
amount that equals the portion by which the increase |
exceeds such limitation. The Commission shall initiate | ||
an investigation to determine the factors that | ||
contributed to the actual average monthly increase | ||
exceeding such limitation for the applicable calendar | ||
year, including an analysis of the factors | ||
contributing to the limitation being exceeded for two | ||
consecutive years, and shall, after notice and | ||
hearing, enter an order approving, or approving with | ||
modification, the utility's corrective action plan | ||
within 120 days after the utility files such plan. The | ||
Commission shall also submit a supplemental report to | ||
the General Assembly no later than 30 days after it | ||
enters such order, and the report shall explain the | ||
results of the Commission's investigation and findings | ||
and conclusions of its order. | ||
(B) If the utility indicates that it will terminate | ||
future energy investments, then the Commission shall, | ||
notwithstanding anything to the contrary: | ||
(i) Order the utility to terminate the | ||
contract or contracts executed under subsection | ||
(d-5) of Section 1-75 of the Illinois Power Agency | ||
Act, pursuant to the contract termination | ||
provisions set forth in such subsection (d-5), | ||
provided that notice of such termination must be | ||
made at least 3 years and 75 days prior to the | ||
effective date of such termination. In the event |
that only a portion of the contracts executed under | ||
such subsection (d-5) are terminated for a | ||
particular zero emission facility, then the zero | ||
emission facility may elect to terminate all of the | ||
contracts executed for that facility under such | ||
subsection (d-5). | ||
(ii) Within 30 days after the utility submits | ||
its report indicates that it will terminate future | ||
energy investments, initiate a proceeding to | ||
approve the process for terminating future | ||
expenditures under Section 16-107.6 of the Public | ||
Utilities Act. The Commission shall, after notice | ||
and hearing, enter its order approving such | ||
process no later than 120 days after initiating | ||
such proceeding. | ||
(iii) Within 30 days after the utility submits | ||
its report indicates that it will terminate future | ||
energy investments, initiate a proceeding under | ||
Section 8-103B of this Act to reduce the cumulative | ||
persisting annual savings goals previously | ||
approved by the Commission under such Section to | ||
ensure just and reasonable rates. The Commission | ||
shall, after notice and hearing, enter its order | ||
approving such goal reductions no later than 120 | ||
days after initiating such proceeding. | ||
Notwithstanding the termination of future energy |
investments pursuant to this subparagraph (B), the | ||
utility shall be permitted to continue to recover the | ||
costs of such investments that were incurred prior to | ||
such termination, including but not limited to all | ||
costs that are recovered through regulatory assets | ||
created under Sections 8-103B and 16-107.6 of this Act. | ||
Nothing in this Section shall limit the utility's | ||
ability to fully recover such costs. The utility shall | ||
also be permitted to continue to recover the costs of | ||
all payments made under contracts executed under | ||
subsection (d-5) until the effective date of the | ||
contract's termination. | ||
(220 ILCS 5/16-108.16 new) | ||
Sec. 16-108.16. Commercial Rate Impacts. | ||
(a) Each electric utility that serves more than 500,000 | ||
retail customers in the State shall file with the Commission | ||
the reports required by this Section, which shall identify the | ||
annual average increases due to future energy investment costs | ||
for the applicable period or periods in electric bills to | ||
commercial and industrial retail customers. For purposes of | ||
this Section, "commercial and industrial retail customers" | ||
means non-residential retail customers other than those | ||
customers who are exempt from subsections (a) through (j) of | ||
Section 8-103B of this Act under subsection (l) of Section | ||
8-103B. |
(b) The increase determination required by subsection (a) | ||
of this Section shall be based on a calculation comprised of | ||
the following components: | ||
(1 )Beginning with the 2017 calendar year, the average | ||
annual amount paid by commercial and industrial retail | ||
customers, expressed on a cents-per-kilowatthour basis, to | ||
recover future energy investment costs, which include the | ||
charges to recover the costs incurred by the utility under | ||
the following provisions: | ||
(A) Sections 8-103, Section 8-103B, and 16-111.5B | ||
of this Act, as applicable, and as such costs may be | ||
recovered under Sections 8-103, 8-103B, 16-111.5B or | ||
Section 16-108.5 of this Act; | ||
(B) subsection (d-5) of Section 1-75 of the | ||
Illinois Power Agency Act, as such costs may be | ||
recovered under subsection (k) of Section 16-108 of | ||
this Act; and | ||
(C) Section 16-107.6 of this Act. | ||
Beginning with the 2018 calendar year, each of the | ||
average annual charges calculated in subparagraphs (A) | ||
through (C) of this paragraph (1) shall be equal to the | ||
average of each such charge applied over a period that | ||
commences with the calendar year ending December 31, 2017 | ||
and ends with the most recently completed calendar year | ||
prior to the calculation or calculations required by this | ||
Section. |
(2) The sum of the following: | ||
(A) annual net energy savings to commercial and | ||
industrial retail customers that are attributable to | ||
the implementation of voltage optimization measures | ||
under Section 8-103B of this Act, expressed on a | ||
cents-per-kilowatthour basis, which are estimated | ||
energy and capacity benefits for commercial and | ||
industrial retail customers minus the measure costs | ||
recovered from those customers, divided by the average | ||
annual kilowatt-hour consumption of commercial and | ||
industrial retail customers; notwithstanding this | ||
subparagraph (A), a utility may elect not to include an | ||
estimate of net energy savings as described in this | ||
subparagraph (A), in which case the value under this | ||
subparagraph (A) shall be zero; | ||
(B) the average annual cents-per-kilowatthour | ||
charge applied under Section 8-103 of this Act to | ||
commercial and industrial retail customers during | ||
calendar year 2016 to recover the costs authorized by | ||
such Section; and | ||
(C) incremental energy efficiency savings, which | ||
shall be calculated by subtracting the value | ||
determined in item (ii) of this subparagraph (C) from | ||
the value determined in item (i) of this subparagraph | ||
and dividing the difference by the value identified in | ||
item (iii) of this subparagraph: |
(i) Total value, in dollars, of the cumulative | ||
persisting annual saving achieved from the | ||
installation or implementation of all energy | ||
efficiency measures for commercial and industrial | ||
retail customers under Sections 8-103, 8-103B and | ||
16-111.5 of this Act, net of the cumulative annual | ||
percentage savings in kilowatt-hours, if any, | ||
calculated under subparagraph (A) of this | ||
paragraph (2). | ||
(ii) 2016 value, which shall equal the value | ||
calculated under item (i) of this subparagraph (C) | ||
multiplied by the quotient of (aa) the cumulative | ||
persisting annual savings, in kilowatt-hours, | ||
achieved from the installation or implementation | ||
of all energy efficiency measures for commercial | ||
and industrial retail customers under Sections | ||
8-103, 8-103B and 16-111.5B of this Act as of | ||
December 31, 2016, divided by (bb) the cumulative | ||
persisting annual savings, in kilowatt-hours, from | ||
the installation or implementation of all energy | ||
efficiency measures for commercial and industrial | ||
retail customers under Sections 8-103, 8-103B and | ||
16-111.5 of this Act, net of the cumulative annual | ||
percentage savings in kilowatt-hours, if any, | ||
calculated under subparagraph (A) of this | ||
paragraph (2). |
(iii) The average annual kilowatt-hour | ||
consumption of those commercial and industrial | ||
retail customers that installed or implemented | ||
energy efficiency measures under energy efficiency | ||
programs or plans approved pursuant to Sections | ||
8-103, 8-103B or 16-111.5B of this Act. | ||
Beginning with the 2018 calendar year, each of the | ||
values identified in subparagraphs (A) and (C) of this | ||
paragraph (2) shall be equal to the average of each | ||
such value during a period that commences with the | ||
calendar year ending December 31, 2017 and ends with | ||
the most recently completed calendar year prior to the | ||
calculation or calculations required by this Section. | ||
For purposes of this Section, cumulative | ||
persisting annual savings shall have the meaning set | ||
forth in Section 8-103B of this Act, and energy | ||
efficiency measures shall have the meaning set forth in | ||
Section 1-10 of the Illinois Power Agency Act. | ||
(c)(1) No later than June 30, 2017, and every June 30 | ||
thereafter until June 30, 2027, an electric utility subject | ||
to this Section shall submit a report to the Commission | ||
that sets forth the utility's 10-year projection of the | ||
values of each of the components described in paragraphs | ||
(1) and (2) of subsection (b) of this Section. Each | ||
utility's report to the Commission shall identify the | ||
result of the computation performed under this Section for |
the immediately preceding calendar year and update its | ||
10-year projection. Such calculations shall be performed | ||
by subtracting the sum of paragraph (2) of subsection (b) | ||
of this Section from the sum of paragraph (1) of such | ||
subsection (b). | ||
In the event that the actual or projected average | ||
annual increase for commercial and industrial retail | ||
customers exceeds 1.3% of 8.90 cents-per-kilowatthour, | ||
which is the average amount paid per kilowatt-hour for | ||
electric service during the year ending December 31, 2015 | ||
by Illinois commercial retail customers, as reported to the | ||
Edison Electric Institute, then the applicable utility | ||
shall comply with the provisions of paragraphs (2) through | ||
(4) of this subsection (c), as applicable. | ||
(2) In the event that the projected average annual | ||
increase for commercial and industrial retail customers | ||
during a calendar year exceeds the applicable limitation | ||
set forth in paragraph (1) of this subsection (c), then the | ||
utility shall comply with the following provisions, as | ||
applicable: | ||
(A) If an exceedance is projected during the first | ||
four calendar years of the 10-year projection, then the | ||
utility shall include in its report submitted under | ||
paragraph (1) of this subsection (c) the utility's | ||
proposal or proposals to decrease the future energy | ||
investment costs described in paragraph (1) of |
subsection (b) of this Section to ensure that the | ||
limitation set forth in such paragraph (1) is not | ||
exceeded. The Commission shall, after notice and | ||
hearing, enter an order directing the utility to | ||
implement one or more proposals, as such proposals may | ||
be modified by the Commission. The Commission shall | ||
have the authority under this subparagraph (A) to | ||
approve modifications to the contracts executed under | ||
subsection (d-5) of Section 1-75 of the Illinois Power | ||
Agency Act. If the Commission approves modifications | ||
to such contracts that are in an amount that reduces | ||
the quantities to be procured under such contracts by | ||
more than 7%, then the supplier shall have the option | ||
of accepting the modifications or terminating the | ||
modified contract or contracts, subject to the | ||
termination requirements and notice provisions set | ||
forth in item (i) of subparagraph (B) of paragraph (4) | ||
of this Section. | ||
(B) If an exceedance is projected during any | ||
calendar year during the last 6 years of the 10-year | ||
projection, then the utility shall demonstrate in its | ||
report submitted under paragraph (1) of this | ||
subsection (c) how the utility will reduce the future | ||
energy investment costs described in paragraph (1) of | ||
subsection (b) of this Section to ensure that the | ||
limitation set forth in such paragraph (1) is not |
exceeded. | ||
(3) If the actual average annual increase for | ||
commercial and industrial retail customers during a | ||
calendar year exceeded the limitation set forth in | ||
paragraph (1) of this subsection (c), then the utility | ||
shall prepare and file with the Commission, at the time it | ||
submits its report under paragraph (1) of this subsection | ||
(c), a corrective action plan. The Commission shall | ||
initiate an investigation to determine the factors that | ||
contributed to the actual average annual increase | ||
exceeding such limitation for the applicable calendar | ||
year, and shall, after notice and hearing, enter an order | ||
approving, or approving with modification, the utility's | ||
corrective action plan within 120 days after the utility | ||
files such plan. The Commission shall also submit a report | ||
to the General Assembly no later than 30 days after it | ||
enters such order, and the report shall explain the results | ||
of the Commission's investigation and findings and | ||
conclusions of its order. | ||
(4) If the actual average annual increase for | ||
commercial and industrial retail customers during a | ||
calendar year exceeds the limitation set forth in paragraph | ||
(1) of this subsection (c) for two consecutive years, then | ||
the utility shall indicate in its report filed under | ||
paragraph (1) of this subsection (c) whether the utility | ||
will proceed with or terminate the future energy |
investments described and authorized under subsection | ||
(d-5) of the Illinois Power Agency Act and Sections 8-103B | ||
and 16-107.6 of this Act. The utility's election shall be | ||
subject to the requirements of subparagraph (A) or (B) of | ||
this paragraph (4), as applicable. | ||
(A) If the utility elects to proceed with the | ||
future energy investments, then it shall be subject to | ||
the corrective action plan requirements set forth in | ||
paragraph (3) of this subsection (c). In addition, the | ||
utility must commit to apply a credit to commercial and | ||
industrial retail customers' bills if the actual | ||
average annual increase for such customers exceeds the | ||
limitation set forth in paragraph (1) of this | ||
subsection (c) for the year in which the utility files | ||
its corrective action plan, which credit shall be in an | ||
amount that equals the portion by which the increase | ||
exceeds such limitation. The Commission shall initiate | ||
an investigation to determine the factors that | ||
contributed to the actual average annual increase | ||
exceeding such limitation for the applicable calendar | ||
year, including an analysis of the factors | ||
contributing to the limitation being exceeded for two | ||
consecutive years, and shall, after notice and | ||
hearing, enter an order approving, or approving with | ||
modification, the utility's corrective action plan | ||
within 120 days after the utility files such plan. The |
Commission shall also submit a supplemental report to | ||
the General Assembly no later than 30 days after it | ||
enters such order, and the report shall explain the | ||
results of the Commission's investigation and findings | ||
and conclusions of its order. | ||
(B) If the utility elects to terminate future | ||
energy investments, then the Commission shall, | ||
notwithstanding anything to the contrary: | ||
(i) Order the utility to terminate the | ||
contract or contracts executed under subsection | ||
(d-5) of Section 1-75 of the Illinois Power Agency | ||
Act, pursuant to the contract termination | ||
provisions set forth in such subsection (d-5), | ||
provided that notice of such termination must be | ||
made at least 3 years and 75 days prior to the | ||
effective date of such termination. In the event | ||
that only a portion of the contracts executed under | ||
such subsection (d-5) are terminated for a | ||
particular zero emission facility, then the zero | ||
emission facility may elect to terminate all of the | ||
contracts executed for that facility under such | ||
subsection (d-5). | ||
(ii) Within 30 days of the utility's report | ||
identifying its election to terminate future | ||
energy investments, initiate a proceeding to | ||
approve the process for terminating future |
expenditures under Sections 16-107.6 of the Public | ||
Utilities Act. The Commission shall, after notice | ||
and hearing, enter its order approving such | ||
process no later than 120 days after initiating | ||
such proceeding. | ||
(iii) Within 30 days of the utility's report | ||
identifying its election to terminate future | ||
energy investments, initiate a proceeding under | ||
Section 8-103B of this Act to reduce the cumulative | ||
persisting annual savings goals previously | ||
approved by the Commission under such Section to | ||
ensure just and reasonable rates. The Commission | ||
shall, after notice and hearing, enter its order | ||
approving such goal reductions no later than 120 | ||
days after initiating such proceeding. | ||
Notwithstanding the termination of future energy | ||
investments pursuant to this subparagraph (B), the | ||
utility shall be permitted to continue to recover the | ||
costs of such investments that were incurred prior to | ||
such termination, including but not limited to all | ||
costs that are recovered through regulatory assets | ||
created under Sections 8-103B and 16-107.6 of this Act. | ||
Nothing in this Section shall limit the utility's | ||
ability to fully recover such costs. The utility shall | ||
also be permitted to continue to recover the costs of | ||
all payments made under contracts executed under |
subsection (d-5) until the effective date of the | ||
contract's termination. | ||
(5) Notwithstanding anything to the contrary, if, | ||
under this Section or subsection (m) of Section 16-108 of | ||
this Act, modifications to the contracts executed under | ||
subsection (d-5) of Section 1-75 of the Illinois Power | ||
Agency Act are, in total, in an amount that reduces the | ||
quantities to procured under such contracts by more than | ||
10%, then the supplier shall have the option of accepting | ||
the modifications or terminating the modified contract or | ||
contracts, subject to the termination requirements and | ||
notice provisions set forth in item (i) of subparagraph (B) | ||
of paragraph (4) of this Section.
| ||
(220 ILCS 5/16-111.1)
| ||
Sec. 16-111.1. Illinois Clean Energy Community
Trust.
| ||
(a) An electric utility which has sold or transferred
| ||
generating facilities in a transaction to which subsection
(k) | ||
of Section 16-111 applies is authorized to establish an
| ||
Illinois clean energy community trust or foundation for the
| ||
purposes of providing financial 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 institutions, corporations, and
| ||
charitable, educational, environmental and community
| ||
organizations, for programs and projects that benefit the
|
public by improving energy efficiency, developing renewable
| ||
energy resources, supporting other energy related
projects | ||
that improve the State's environmental quality, and supporting
| ||
projects and programs intended to preserve or enhance the | ||
natural habitats and
wildlife areas of the State. Provided, | ||
however, that the trust or foundation
funds shall not be
used | ||
for the remediation of environmentally impaired property. The | ||
trust or
foundation may also assist in identifying other
energy | ||
and environmental grant opportunities.
| ||
(b) Such trust or foundation shall be governed by a
| ||
declaration of trust or articles of incorporation and bylaws | ||
which shall, at a
minimum, provide that:
| ||
(1) There shall be 6 voting trustees of the
trust or | ||
foundation, one of whom shall be appointed by
the Governor, | ||
one of whom shall be appointed by the
President of the | ||
Illinois Senate, one of whom shall be
appointed by the | ||
Minority Leader of the Illinois
Senate, one of whom shall | ||
be appointed by the Speaker
of the Illinois House of | ||
Representatives, one of whom
shall be appointed by the | ||
Minority Leader of the
Illinois House of Representatives, | ||
and one of whom
shall be appointed by the electric utility | ||
establishing
the trust or foundation, provided that the | ||
voting
trustee appointed by the utility shall be a
| ||
representative of a recognized environmental action
group | ||
selected by the utility. The Governor
shall designate one | ||
of the 6 voting trustees to serve as chairman of the trust |
or foundation, who shall serve as
chairman of the trust or | ||
foundation at the pleasure of the Governor. In addition,
| ||
there shall be 5 4 non-voting trustees, one of whom
shall | ||
be appointed by the Director of
Commerce and Economic | ||
Opportunity, one of whom shall be
appointed by the Director | ||
of the Illinois Environmental
Protection Agency, one of | ||
whom shall be appointed by
the Director of Natural | ||
Resources, and
2 one of whom shall be appointed by the | ||
electric utility
establishing the trust or foundation, | ||
provided that the
non-voting trustee appointed by the | ||
utility shall bring
financial expertise to the trust or | ||
foundation and
shall have appropriate credentials | ||
therefor.
| ||
(2) All voting trustees and the non-voting
trustee with | ||
financial expertise shall be entitled to
compensation for | ||
their services as trustees, provided,
however, that no | ||
member of the General Assembly and no
employee of the | ||
electric utility establishing the trust
or foundation | ||
serving as a voting trustee shall receive
any compensation | ||
for his or her services as a trustee,
and provided further | ||
that the compensation to the chairman
of the trust shall | ||
not exceed $25,000 annually and the
compensation to any | ||
other trustee shall not exceed $20,000 annually.
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 compensation and |
reimbursements shall be paid out
of the trust.
| ||
(3) Trustees shall be appointed within 30 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 trust or foundation shall be funded in
the | ||
minimum amount of $250,000,000, with the allocation
and | ||
disbursement of funds for the various purposes for
which | ||
the trust or foundation is established to be
determined by | ||
the trustees in accordance with the
declaration of trust or | ||
the articles of incorporation
and bylaws; provided, | ||
however, that this amount may be
reduced by up to | ||
$25,000,000 if, at the time the trust or foundation is | ||
funded,
a corresponding amount
is contributed by the | ||
electric utility establishing the
trust or foundation to | ||
the Board of Trustees of
Southern Illinois University for |
the purpose of funding programs or projects
related to | ||
clean coal
and provided further that $25,000,000 of the | ||
amount contributed to the
trust or foundation shall be | ||
available to fund programs or projects related to
clean | ||
coal.
| ||
(7) The trust or foundation shall be authorized
to | ||
employ an executive director and other employees, 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 $500,000 in the first fiscal | ||
year after the trust or foundation is
established and shall | ||
not exceed $1,000,000 in each subsequent fiscal year.
| ||
(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.
| ||
(c)(1) In addition to the allocation and disbursement of | ||
funds for
the purposes set forth in subsection (a) of this | ||
Section, the trustees of the
trust or foundation shall | ||
annually contribute funds in amounts set forth
in | ||
subparagraph (2) of this subsection to the Citizens Utility |
Board created by
the Citizens Utility Board Act; provided, | ||
however, that any such funds shall be
used solely for the | ||
representation of the interests of utility consumers | ||
before
the Illinois Commerce Commission, the Federal | ||
Energy Regulatory Commission,
and the Federal | ||
Communications Commission and for the provision of | ||
consumer
education on utility service and prices and on | ||
benefits and methods of energy
conservation.
Provided, | ||
however, that no part of such funds shall be used to | ||
support (i) any
lobbying activity, (ii) activities related | ||
to fundraising, (iii) advertising or
other marketing | ||
efforts regarding a particular utility, or (iv) | ||
solicitation of
support for, or advocacy of, a particular | ||
position regarding any specific
utility or a utility's | ||
docketed proceeding.
| ||
(2) In the calendar year in which the trust or | ||
foundation is first
funded, the trustees shall contribute | ||
$1,000,000 to the Citizens Utility Board
within 60 days | ||
after such trust or foundation is established; provided,
| ||
however, that such contribution shall be made after | ||
December 31, 1999. In each
of the 6 calendar years | ||
subsequent to the first contribution, if the trust or
| ||
foundation is in existence,
the trustees shall contribute | ||
to the Citizens Utility Board an amount equal to
the total | ||
expenditures by such organization in the prior calendar | ||
year, as set
forth in the report filed by the Citizens |
Utility Board with the chairman of
such trust or foundation | ||
as required by subparagraph (3) of this subsection.
Such | ||
subsequent contributions shall be made within 30 days of | ||
submission by the
Citizens Utility Board of such report to | ||
the Chairman of the trust or
foundation, but in no event | ||
shall any annual contribution by the trustees to
the | ||
Citizens Utility Board exceed $1,000,000. Following such | ||
7-year period, an
Illinois statutory consumer protection | ||
agency may petition the trust or
foundation for | ||
contributions to fund expenditures of the type identified | ||
in
paragraph (1), but in no event shall annual | ||
contributions by the trust or
foundation for such | ||
expenditures exceed $1,000,000.
| ||
(3) The Citizens Utility Board shall file a report with | ||
the chairman of
such
trust or foundation for each year in | ||
which it expends any funds received from
the trust or | ||
foundation setting forth the amount of any expenditures
| ||
(regardless of the source of funds for such expenditures) | ||
for: (i) the
representation of the interests of utility | ||
consumers before the Illinois
Commerce Commission, the | ||
Federal Energy Regulatory Commission, and the Federal
| ||
Communications Commission, and (ii) the provision of | ||
consumer education on
utility service and prices and on | ||
benefits and methods of energy conservation.
Such report | ||
shall separately state the total amount of expenditures for | ||
the
purposes or activities identified by items (i) and (ii) |
of this
paragraph, the name and address of the external | ||
recipient of any such
expenditure, if applicable, and the | ||
specific purposes or activities (including
internal | ||
purposes or activities) for which each expenditure was | ||
made. Any
report required by this subsection shall be filed | ||
with the chairman of such
trust or foundation no later than | ||
March 31 of the year immediately following
the year for | ||
which the report is required.
| ||
(d) In addition to any other allocation and disbursement of | ||
funds in this
Section, the
trustees of the trust or foundation | ||
shall contribute an amount up to
$125,000,000 (1) for deposit
| ||
into the General
Obligation Bond Retirement and Interest Fund | ||
held in the State treasury to
assist in the
repayment on | ||
general obligation bonds issued under subsection (d) of Section | ||
7
of the General
Obligation Bond Act, and (2) for deposit into | ||
funds administered by agencies
with
responsibility for | ||
environmental activities to assist in payment for
| ||
environmental
programs. The amount required to be contributed | ||
shall be
provided to the
trustees in a certification letter | ||
from the Director of the Bureau of the
Budget that shall be
| ||
provided no later than August 1, 2003.
The
payment from the
| ||
trustees shall be paid to the State no later than December 31st | ||
following the
receipt of the letter.
| ||
(Source: P.A. 93-32, eff. 6-20-03; 94-793, eff. 5-19-06.)
| ||
(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. Beginning with the delivery | ||
year commencing on June 1, 2017, such electric utility shall | ||
also procure zero emission credits from zero emission | ||
facilities in accordance with the applicable provisions set | ||
forth in Section 1-75 of the Illinois Power Agency Act, and, | ||
for years beginning on or after June 1, 2017, the utility shall | ||
procure renewable energy resources in accordance with the | ||
applicable provisions set forth in Section 1-75 of the Illinois | ||
Power Agency Act and this Section. A small multi-jurisdictional | ||
electric utility that on December 31, 2005 served less than | ||
100,000 customers in Illinois may elect to procure power and | ||
energy for all or a portion of its eligible Illinois retail | ||
customers in accordance with the applicable provisions set | ||
forth in this Section and Section 1-75 of the Illinois Power | ||
Agency Act. This Section shall not apply to a small | ||
multi-jurisdictional utility until such time as a small | ||
multi-jurisdictional utility requests the Illinois Power | ||
Agency to prepare a procurement plan for its eligible retail | ||
customers. "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. For those Those customers | ||
that are excluded from the definition of "eligible retail | ||
customers" shall not be included in the procurement plan's | ||
electric supply service 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. Small multi-jurisdictional utilities | ||
may request a procurement plan for a portion of or all of its |
Illinois load. Each procurement plan shall analyze the | ||
projected balance of supply and demand for those retail | ||
customers to be included in the plan's electric supply service | ||
requirements 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 and | ||
energy efficiency programs, both current and | ||
projected; for small multi-jurisdictional utilities, | ||
the impact of demand response and energy efficiency | ||
programs approved pursuant to Section 8-408 of this | ||
Act, both current and projected; and | ||
(ii) supply side needs that are projected to be | ||
offset by purchases of renewable energy resources, if | ||
any. | ||
(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 Illinois 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. For small multi-jurisdictional electric | ||
utilities that on December 31, 2005 served fewer than | ||
100,000 customers in Illinois, these shall be defined | ||
as demand-response products offered in an energy | ||
efficiency plan approved pursuant to Section 8-408 of | ||
this Act. 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 those eligible retail customers included in | ||
the plan's electric supply service requirements ; | ||
(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. | ||
(5) Long-Term Renewable Resources Procurement Plan. | ||
The Agency shall prepare a long-term renewable resources | ||
procurement plan for the procurement of renewable energy | ||
credits under Sections 1-56 and 1-75 of the Illinois Power | ||
Agency Act for delivery beginning in the 2017 delivery | ||
year. | ||
(i) The initial long-term renewable resources | ||
procurement plan and all subsequent revisions shall be | ||
subject to review and approval by the Commission. For | ||
the purposes of this Section, "delivery year" has the | ||
same meaning as in Section 1-10 of the Illinois Power | ||
Agency Act. For purposes of this Section, "Agency" | ||
shall mean the Illinois Power Agency. | ||
(ii) The long-term renewable resources planning | ||
process shall be conducted as follows: | ||
(A) Electric utilities shall provide a range | ||
of load forecasts to the Illinois Power Agency | ||
within 45 days of the Agency's request for | ||
forecasts, which request shall specify the length | ||
and conditions for the forecasts including, but | ||
not limited to, the quantity of distributed |
generation expected to be interconnected for each | ||
year. | ||
(B) The Agency shall publish for comment the | ||
initial long-term renewable resources procurement | ||
plan no later than 120 days after the effective | ||
date of this amendatory Act of the 99th General | ||
Assembly and shall review, and may revise, the plan | ||
at least every 2 years thereafter. To the extent | ||
practicable, the Agency shall review and propose | ||
any revisions to the long-term renewable energy | ||
resources procurement plan in conjunction with the | ||
Agency's other planning and approval processes | ||
conducted under this Section. The initial | ||
long-term renewable resources procurement plan | ||
shall: | ||
(aa) Identify the procurement programs and | ||
competitive procurement events consistent with | ||
the applicable requirements of the Illinois | ||
Power Agency Act and shall be designed to | ||
achieve the goals set forth in subsection (c) | ||
of Section 1-75 of that Act. | ||
(bb) Include a schedule for procurements | ||
for renewable energy credits from | ||
utility-scale wind projects, utility-scale | ||
solar projects, and brownfield site | ||
photovoltaic projects consistent with |
subparagraph (G) of paragraph (1) of | ||
subsection (c) of Section 1-75 of the Illinois | ||
Power Agency Act. | ||
(cc) Identify the process whereby the | ||
Agency will submit to the Commission for review | ||
and approval the proposed contracts to | ||
implement the programs required by such plan. | ||
Copies of the initial long-term renewable | ||
resources procurement plan and all subsequent | ||
revisions 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 and | ||
other interested parties shall have 45 days | ||
following the date of posting to provide comment to | ||
the Agency on the initial long-term renewable | ||
resources procurement plan and all subsequent | ||
revisions. 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 45-day comment | ||
period, the Agency shall hold at least one public | ||
hearing within each utility's service area that is |
subject to the requirements of this paragraph (5) | ||
for the purpose of receiving public comment. | ||
Within 21 days following the end of the 45-day | ||
review period, the Agency may revise the long-term | ||
renewable resources procurement plan based on the | ||
comments received and shall file the plan with the | ||
Commission for review and approval. | ||
(C) Within 14 days after the filing of the | ||
initial long-term renewable resources procurement | ||
plan or any subsequent revisions, any person | ||
objecting to the plan may file an objection with | ||
the Commission. Within 21 days after the filing of | ||
the plan, the Commission shall determine whether a | ||
hearing is necessary. The Commission shall enter | ||
its order confirming or modifying the initial | ||
long-term renewable resources procurement plan or | ||
any subsequent revisions within 120 days after the | ||
filing of the plan by the Illinois Power Agency. | ||
(D) The Commission shall approve the initial | ||
long-term renewable resources procurement plan and | ||
any subsequent revisions, including expressly the | ||
forecast used in the plan and taking into account | ||
that funding will be limited to the amount of | ||
revenues actually collected by the utilities, if | ||
the Commission determines that the plan will | ||
reasonably and prudently accomplish the |
requirements of Section 1-56 and subsection (c) of | ||
Section 1-75 of the Illinois Power Agency Act. The | ||
Commission shall also approve the process for the | ||
submission, review, and approval of the proposed | ||
contracts to procure renewable energy credits or | ||
implement the programs authorized by the | ||
Commission pursuant to a long-term renewable | ||
resources procurement plan approved under this | ||
Section. | ||
(iii) The Agency or third parties contracted by the | ||
Agency shall implement all programs authorized by the | ||
Commission in an approved long-term renewable | ||
resources procurement plan without further review and | ||
approval by the Commission. Third parties shall not | ||
begin implementing any programs or receive any payment | ||
under this Section until the Commission has approved | ||
the contract or contracts under the process authorized | ||
by the Commission in item (D) of subparagraph (ii) of | ||
paragraph (5) of this subsection (b) and the third | ||
party and the Agency or utility, as applicable, have | ||
executed the contract. For those renewable energy | ||
credits subject to procurement through a competitive | ||
bid process under the plan or under the initial forward | ||
procurements for wind and solar resources described in | ||
subparagraph (G) of paragraph (1) of subsection (c) of | ||
Section 1-75 of the Illinois Power Agency Act, the |
Agency shall follow the procurement process specified | ||
in the provisions relating to electricity procurement | ||
in subsections (e) through (i) of this Section. | ||
(iv) An electric utility shall recover its costs | ||
associated with the procurement of renewable energy | ||
credits under this Section through an automatic | ||
adjustment clause tariff under subsection (k) of | ||
Section 16-108 of this Act. A utility shall not be | ||
required to advance any payment or pay any amounts | ||
under this Section that exceed the actual amount of | ||
revenues collected by the utility under paragraph (6) | ||
of subsection (c) of Section 1-75 of the Illinois Power | ||
Agency Act and subsection (k) of Section 16-108 of this | ||
Act, and contracts executed under this Section shall | ||
expressly incorporate this limitation. | ||
(v) For the public interest, safety, and welfare, | ||
the Agency and the Commission may adopt rules to carry | ||
out the provisions of this Section on an emergency | ||
basis immediately following the effective date of this | ||
amendatory Act of the 99th General Assembly. | ||
(vi) On or before July 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. | ||
(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 at a | ||
least 100,000 customers in Illinois and for each small | ||
multi-jurisdictional utility that on December 31, 2005 | ||
served less than 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 those the eligible retail | ||
customers included in the plan's electric supply service | ||
requirements . 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 August 28, 2007 ( the effective | ||
date of Public Act 95-481) 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) (Blank). 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) (Blank). 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 October 26, 2011 (the | ||
effective date of Public Act 97-616) 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 October 26, 2011 (the effective date of | ||
Public Act 97-616), 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. All of the costs |
incurred by the electric utility associated with the purchase | ||
of zero emission credits in accordance with subsection (d-5) of | ||
Section 1-75 of the Illinois Power Agency Act and, beginning | ||
June 1, 2017, all of the costs incurred by the electric utility | ||
associated with the purchase of renewable energy resources in | ||
accordance with Sections 1-56 and 1-75 of the Illinois Power | ||
Agency Act, shall be recovered through the electric utility's | ||
tariffed charges applicable to all of its retail customers, as | ||
specified in subsection (k) of Section 16-108 of this Act, and | ||
shall not be recovered through the electric utility's tariffed | ||
charges for electric power and energy supply to its eligible | ||
retail customers. | ||
(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 August 28, | ||
2007 ( the effective date of Public Act 95-481) 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 those eligible retail customers | ||
included in the plan's electric supply service requirements . 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 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 those eligible retail customers included in the | ||
plan's electric supply service requirements . 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.
| ||
(q) If the Illinois Power Agency filed with the Commission, | ||
under Section 16-111.5 of this Act, its proposed procurement | ||
plan for the period commencing June 1, 2017, and the Commission | ||
has not yet entered its final order approving the plan on or | ||
before the effective date of this amendatory Act of the 99th | ||
General Assembly, then the Illinois Power Agency shall file a | ||
notice of withdrawal with the Commission, after the effective | ||
date of this amendatory Act of the 99th General Assembly, to | ||
withdraw the proposed procurement of renewable energy | ||
resources to be approved under the plan, other than the | ||
procurement of renewable energy credits from distributed | ||
renewable energy generation devices using funds previously | ||
collected from electric utilities' retail customers that take | ||
service pursuant to electric utilities' hourly pricing tariff | ||
or tariffs and, for an electric utility that serves less than | ||
100,000 retail customers in the State, other than the | ||
procurement of renewable energy credits from distributed | ||
renewable energy generation devices. Upon receipt of the | ||
notice, the Commission shall enter an order that approves the | ||
withdrawal of the proposed procurement of renewable energy |
resources from the plan. The initially proposed procurement of | ||
renewable energy resources shall not be approved or be the | ||
subject of any further hearing, investigation, proceeding, or | ||
order of any kind. | ||
This amendatory Act of the 99th General Assembly preempts | ||
and supersedes any order entered by the Commission that | ||
approved the Illinois Power Agency's procurement plan for the | ||
period commencing June 1, 2017, to the extent it is | ||
inconsistent with the provisions of this amendatory Act of the | ||
99th General Assembly. To the extent any previously entered | ||
order approved the procurement of renewable energy resources, | ||
the portion of that order approving the procurement shall be | ||
void, other than the procurement of renewable energy credits | ||
from distributed renewable energy generation devices using | ||
funds previously collected from electric utilities' retail | ||
customers that take service under electric utilities' hourly | ||
pricing tariff or tariffs and, for an electric utility that | ||
serves less than 100,000 retail customers in the State, other | ||
than the procurement of renewable energy credits for | ||
distributed renewable energy generation devices. | ||
(Source: P.A. 97-325, eff. 8-12-11; 97-616, eff. 10-26-11; | ||
97-813, eff. 7-13-12; revised 9-14-16.) | ||
(220 ILCS 5/16-111.5B) | ||
Sec. 16-111.5B. Provisions relating to energy efficiency | ||
procurement. |
(a) Procurement Beginning in 2012, procurement plans | ||
prepared and filed pursuant to Section 16-111.5 of this Act | ||
during the years 2012 through 2015 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 all retail customers whose | ||
electric service has not been declared competitive | ||
under Section 16-113 of this Act and who are eligible | ||
to purchase power and energy from the utility under | ||
fixed-price bundled service tariffs, regardless of | ||
whether such customers actually do purchase such power | ||
and energy from the utility. | ||
(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. | ||
(G) For each expanded or new program, the estimated | ||
amount that the program may reduce the agency's need to | ||
procure supply. | ||
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. The requirements set forth in paragraphs (1) | ||
through (5) of this subsection (a) shall terminate after | ||
the filing of the procurement plan in 2015, and no energy | ||
efficiency shall be procured by the Agency thereafter. | ||
Energy efficiency programs approved previously under this | ||
Section shall terminate no later than December 31, 2017. | ||
(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 all retail customers whose electric | ||
service has not been declared competitive under Section | ||
16-113 of this Act and who are eligible to purchase power | ||
and energy from the utility under fixed-price bundled | ||
service tariffs, regardless of whether such customers | ||
actually do purchase such power and energy from the utility | ||
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.
| ||
(c) The changes to this Section made by this amendatory Act | ||
of the 99th General Assembly shall not interfere with existing | ||
contracts executed under a Commission order entered under this | ||
Section. | ||
(d)(1) For those electric utilities subject to the | ||
requirements of Section 8-103B of this Act, the contracts | ||
governing the energy efficiency programs and measures approved |
by the Commission in its order approving the procurement plan | ||
for the period June 1, 2016 through May 31, 2017 may be | ||
extended through December 31, 2017 so that the energy | ||
efficiency programs subject to such contracts and approved in | ||
such plan continue to be offered during the period June 1, 2017 | ||
through December 31, 2017. Each such utility is authorized to | ||
increase, on a pro rata basis, the energy savings goals and | ||
budgets approved under this Section to reflect the additional 7 | ||
months of implementation of the energy efficiency programs and | ||
measures. | ||
(2) If the Illinois Power Agency filed with the | ||
Commission, under Section 16-111.5 of this Act, its | ||
proposed procurement plan for the period commencing June 1, | ||
2017, and the Commission has not yet entered its final | ||
order approving such plan on or before the effective date | ||
of this amendatory Act of the 99th General Assembly, then | ||
the Illinois Power Agency shall file a notice of withdrawal | ||
with the Commission to withdraw the proposed energy | ||
efficiency programs to be approved under such plan. Upon | ||
receipt of such notice, the Commission shall enter an order | ||
that approves the withdrawal of all proposed energy | ||
efficiency programs from the plan. The initially proposed | ||
energy efficiency programs shall not be approved or be the | ||
subject of any further hearing, investigation, proceeding, | ||
or order of any kind. | ||
(3) This amendatory Act of the 99th General Assembly |
preempts and supersedes any order entered by the Commission | ||
that approved the Illinois Power Agency's procurement plan | ||
for the period commencing June 1, 2017, to the extent | ||
inconsistent with the provisions of this amendatory Act of | ||
the 99th General Assembly. To the extent any such | ||
previously entered order approved energy efficiency | ||
programs under this Section, the portion of such order | ||
approving such programs shall be void, and the provisions | ||
of paragraph (1) of this subsection (d) shall apply. | ||
(Source: P.A. 97-616, eff. 10-26-11; 97-824, eff. 7-18-12.) | ||
(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 or 8-103B of this Act, 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 | ||
customers 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. | ||
Beginning no later than December 31, 2013, an electric | ||
utility subject to this subsection (b) shall also offer its | ||
program to eligible retail customers that own multifamily | ||
residential or mixed-use buildings with no more than 50 | ||
residential units, provided, however, that such customers must | ||
either be a residential customer or small commercial customer | ||
and may not use the program in such a way that repayment of the |
cost of energy efficiency measures is made through tenants' | ||
utility bills. An electric utility may impose a per site loan | ||
limit not to exceed $150,000. The program, and loans issued | ||
thereunder, shall only be offered to customers of the utility | ||
that meet the requirements of this Section and that also have | ||
an electric service account at the premises where the energy | ||
efficiency measures being financed shall be installed. | ||
Beginning no later than 2 years after the effective date of | ||
this amendatory Act of the 99th General Assembly, the 50 | ||
residential unit limitation described in this paragraph shall | ||
no longer apply, and the utility shall replace the per site | ||
loan limit of $150,000 with a loan limit that correlates to a | ||
maximum monthly payment that does not exceed 50% of the | ||
customer's average utility bill over the prior 12-month period. | ||
Beginning no later than 2 years after the effective date of | ||
this amendatory Act of the 99th General Assembly, an electric | ||
utility subject to this subsection (b) shall also offer its | ||
program to eligible retail customers that are Unit Owners' | ||
Associations, as defined in subsection (o) of Section 2 of the | ||
Condominium Property Act, or Master Associations, as defined in | ||
subsection (u) of the Condominium Property Act. However, such | ||
customers must either be residential customers or small | ||
commercial customers and may not use the program in such a way | ||
that repayment of the cost of energy efficiency measures is | ||
made through unit owners' utility bills. The program and loans | ||
issued under the program shall only be offered to customers of |
the utility that meet the requirements of this Section and that | ||
also have an electric service account at the premises where the | ||
energy efficiency measures being financed shall be installed. | ||
For purposes of this Section, "small commercial customer" | ||
means, for an electric utility serving more than 3,000,000 | ||
retail customers, those customers having peak demand of less | ||
than 100 kilowatts, and, for an electric utility serving less | ||
than 3,000,000 retail customers, those customers having peak | ||
demand of less than 150 kilowatts; provided, however, that in | ||
the event the Commission, after the effective date of this | ||
amendatory Act of the 98th General Assembly, approves changes | ||
to a utility's tariffs that reflects new or revised demand | ||
criteria for the utility's customer rate classifications, then | ||
the utility may file a petition with the Commission to revise | ||
the applicable definition of a small commercial customer to | ||
reflect the new or revised demand criteria for the purposes of | ||
this Section. After notice and hearing, the Commission shall | ||
enter an order approving, or approving with modification, the | ||
revised definition within 60 days after the utility files the | ||
petition. | ||
(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 a product or service for which one or more of the | ||
following is true: | ||
(A) (blank); | ||
(B) the projected electricity savings (determined | ||
by rates in effect at the time of purchase) 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; or | ||
(C) the product or service is included in a | ||
Commission-approved energy efficiency and |
demand-response plan under Section 8-103 or 8-103B of | ||
this Act. | ||
(1.5) Beginning no later than 2 years after the | ||
effective date of this amendatory Act of the 99th General | ||
Assembly, an eligible electric energy efficiency measure | ||
(measure) shall be a product or service that qualifies | ||
under subparagraph (B) or (C) of paragraph (1) of this | ||
subsection (c) or for which one or more of the following is | ||
true: | ||
(A) a building energy assessment, performed by an | ||
energy auditor who is certified by the Building | ||
Performance Institute or who holds a similar | ||
certification, has recommended the product or service | ||
as likely to be cost effective over the course of its | ||
installed life for the building in which the measure is | ||
to be installed; or | ||
(B) the product or service is necessary to safely | ||
or correctly install to code or industry standard an | ||
efficiency measure, including, but not limited to, | ||
installation work; changes needed to plumbing or | ||
electrical connections; upgrades to wiring or | ||
fixtures; removal of hazardous materials; correction | ||
of leaks; changes to thermostats, controls, or similar | ||
devices; and changes to venting or exhaust | ||
necessitated by the measure. However, the costs of the | ||
product or service described in this subparagraph (B) |
shall not exceed 25% of the total cost of installing | ||
the measure. | ||
(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 in this subsection and subsection (c-5) of this | ||
Section 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. Beginning after the effective date of this | ||
amendatory Act of the 99th General Assembly, the total | ||
maximum outstanding amount financed under the program in | ||
this subsection and subsections (c-5) and (c-10) of this | ||
Section shall increase by $5,000,000 per year until such | ||
time as the total maximum outstanding amount financed | ||
reaches $20,000,000. For purposes of this Section, | ||
"maximum outstanding amount financed" means the sum of all | ||
principal that has been loaned and not yet repaid. | ||
(c-5) Within 120 days after the effective date of this | ||
amendatory Act of the 98th General Assembly, each electric | ||
utility subject to the requirements of this Section shall | ||
submit an informational filing to the Commission that describes |
its plan for implementing the provisions of this amendatory Act | ||
of the 98th General Assembly on or before December 31, 2013. | ||
Such filing shall also describe how the electric utility shall | ||
coordinate its program with any gas utility or utilities that | ||
provide gas service to buildings within the electric utility's | ||
service territory so that it is practical and feasible for the | ||
owner of a multifamily building to make a single application to | ||
access loans for both gas and electric energy efficiency | ||
measures in any individual building. | ||
(c-10) No later than 365 days after the effective date of | ||
this amendatory Act of the 99th General Assembly, each electric | ||
utility subject to the requirements of this Section shall | ||
submit an informational filing to the Commission that describes | ||
its plan for implementing the provisions of this amendatory Act | ||
of the 99th General Assembly that were incorporated into this | ||
Section. Such filing shall also include the criteria to be used | ||
by the program for determining if measures to be financed are | ||
eligible electric energy efficiency measures, as defined by | ||
paragraph (1.5) of subsection (c) of this Section. | ||
(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 or 8-103B 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. 97-616, eff. 10-26-11; 98-586, eff. 8-27-13.) | ||
(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) Through May 31, 2017, the 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) Through May 31, 2017, the 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) and 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) and 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. | ||
(3.5) For the delivery year commencing June 1, 2017, | ||
the quantity of renewable energy resources shall be at | ||
least 13.0% of the uncovered amount of metered electricity | ||
(megawatt-hours) delivered by the alternative retail | ||
electric supplier to Illinois retail customers during the | ||
delivery year, which uncovered amount shall equal 50% of | ||
such metered electricity delivered by the alternative | ||
retail electric supplier. For the delivery year commencing |
June 1, 2018, the quantity of renewable energy resources | ||
shall be at least 14.5% of the uncovered amount of metered | ||
electricity (megawatt-hours) delivered by the alternative | ||
retail electric supplier to Illinois retail customers | ||
during the delivery year, which uncovered amount shall | ||
equal 25% of such metered electricity delivered by the | ||
alternative retail electric supplier. At least 32% of the | ||
renewable energy resources procured by the alternative | ||
retail electric supplier for its uncovered portion under | ||
this paragraph (3.5) shall come from wind or photovoltaic | ||
generation. The renewable energy resources procured under | ||
this paragraph (3.5) shall not include any resources from a | ||
facility whose costs were being recovered through rates | ||
regulated by any state or states on or after January 1, | ||
2017. | ||
(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) Compliance obligations. | ||
(1) Through May 31, 2017, an 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 for the period prior to | ||
June 1, 2017. | ||
(2) For the delivery years beginning June 1, 2017 and |
June 1, 2018, an alternative retail electric supplier need | ||
not make any alternative compliance payment to meet any | ||
portion of its compliance obligation, as set forth in | ||
paragraph (3.5) of subsection (a) of this Section. | ||
(3) An alternative retail electric supplier shall use | ||
and any one or combination of the following means to cover | ||
the remainder of the alternative retail electric | ||
supplier's compliance obligation , as set forth in | ||
paragraphs (3) and (3.5) of subsection (a) of this Section, | ||
not covered by an alternative compliance payment made under | ||
paragraphs (1) and (2) of this subsection (b) of this | ||
Section : | ||
(A) (1) Generating electricity using renewable | ||
energy resources identified pursuant to item (4) of | ||
subsection (a) of this Section. | ||
(B) (2) Purchasing electricity generated using | ||
renewable energy resources identified pursuant to item | ||
(4) of subsection (a) of this Section through an energy | ||
contract. | ||
(C) (3) Purchasing renewable energy credits from | ||
renewable energy resources identified pursuant to item | ||
(4) of subsection (a) of this Section. | ||
(D) (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 for which the | ||
utility is procuring renewable energy resources in a given | ||
delivery year , 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 for which the supplier has a compliance | ||
obligation 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) or (3.5) | ||
of subsection (a) of this Section and the actual amount of | ||
metered electricity delivered by the alternative retail | ||
electrical electric supplier to retail customers for which | ||
the supplier has a compliance obligation within the service | ||
territory during the compliance period. | ||
(4) Through May 31, 2017, all 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. | ||
(4.5) Beginning with the delivery year commencing June | ||
1, 2017, all alternative compliance payments by | ||
alternative retail electric suppliers shall be remitted to | ||
the applicable electric utility. To facilitate this | ||
remittance, each electric utility shall file a tariff with | ||
the Commission no later than 30 days following the | ||
effective date of this amendatory Act of the 99th General | ||
Assembly, which the Commission shall approve, after notice | ||
and hearing, no later than 45 days after its filing. The | ||
Illinois Power Agency shall use such payments to increase | ||
the amount of renewable energy resources otherwise to be | ||
procured under subsection (c) of Section 1-75 of the | ||
Illinois Power Agency Act. |
(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.
| ||
(i) The obligations of alternative retail electric | ||
suppliers and electric utilities operating outside their | ||
service territories to procure renewable energy resources, | ||
make alternative compliance payments, and file annual reports, | ||
and the obligations of the Commission to determine and post | ||
alternative compliance payment rates, shall terminate after | ||
May 31, 2019, provided that alternative retail electric | ||
suppliers and electric utilities operating outside their | ||
service territories shall be obligated to make all alternative | ||
compliance payments that they were obligated to pay for periods | ||
through and including May 31, 2019, but were not paid as of | ||
that date. The Commission shall continue to enforce the payment | ||
of unpaid alternative compliance payments in accordance with |
subsections (f) and (g) of this Section. All alternative | ||
compliance payments made after May 31, 2016 shall be remitted | ||
to the applicable electric utility and used to purchase | ||
renewable energy credits, in accordance with Section 1-75 of | ||
the Illinois Power Agency Act. | ||
This subsection (i) is intended to accommodate the | ||
transition to the procurement of renewable energy resources for | ||
all retail customers in the amounts specified under subsection | ||
(c) of Section 1-75 of the Illinois Power Agency Act and | ||
Section 16-111.5 of this Act, including but not limited to the | ||
transition to a single charge applicable to all retail | ||
customers to recover the costs of these resources. Each | ||
alternative retail electric supplier shall certify in its | ||
annual reports filed pursuant to subsection (e) of this Section | ||
after May 31, 2019, that its retail customers are not paying | ||
the costs of alternative compliance payments or renewable | ||
energy resources that the alternative retail electric supplier | ||
is not required to remit or purchase under this Section. The | ||
Commission shall have the authority to initiate an emergency | ||
rulemaking to adopt rules regarding such certification. | ||
(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; | ||
96-1437, eff. 8-17-10; 97-658, eff. 1-13-12.)
| ||
(220 ILCS 5/16-119A)
| ||
Sec. 16-119A. Functional separation.
| ||
(a) Within 90 days after the effective date of this |
amendatory Act of 1997,
the Commission shall open a rulemaking | ||
proceeding to
establish standards of conduct for every electric | ||
utility
described in subsection (b). To create efficient | ||
competition
between suppliers of generating services and | ||
sellers of such
services at retail and wholesale, the rules | ||
shall allow all
customers of a public utility that distributes | ||
electric power
and energy to purchase electric power and energy | ||
from the
supplier of their choice in accordance with the | ||
provisions of
Section 16-104. In addition, the rules shall | ||
address relations
between providers of any 2 services described | ||
in subsection (b)
to prevent undue discrimination and promote | ||
efficient
competition. Provided, however, that a proposed rule | ||
shall not be
published prior to May 15, 1999.
| ||
(b) The Commission shall also have the authority to | ||
investigate
the need for, and adopt rules requiring, functional | ||
separation
between the generation services and the delivery | ||
services of
those electric utilities whose principal service | ||
area is in
Illinois as necessary to meet the objective of | ||
creating efficient
competition between suppliers of generating | ||
services and sellers
of such services at retail and wholesale. | ||
After January 1, 2003,
the Commission shall also have the | ||
authority to investigate the
need for, and adopt rules | ||
requiring, functional separation
between an electric utility's | ||
competitive and non-competitive
services.
| ||
(b-5) If there is a change in ownership of a majority of | ||
the voting
capital
stock of
an electric utility or the |
ownership or control of any entity that owns or
controls a
| ||
majority of the voting capital stock of an electric utility, | ||
the electric
utility shall have the
right to file with the | ||
Commission a new plan. The newly filed plan shall
supersede any | ||
plan previously
approved
by the Commission pursuant to this | ||
Section for that electric utility, subject
to Commission | ||
approval. This
subsection only
applies to the extent that the | ||
Commission rules for the functional separation
of delivery
| ||
services and generation services provide an electric utility | ||
with the ability
to select from 2
or more options to comply | ||
with this Section. The electric utility may file its
revised | ||
plan
with the Commission up to one calendar year after the | ||
conclusion of the sale,
purchase,
or any other transfer of | ||
ownership described in this subsection. In all other
respects, | ||
an electric utility must comply with the Commission rules in | ||
effect
under this Section. The Commission
may
promulgate rules | ||
to implement this subsection. This subsection shall have no
| ||
legal effect after January 1, 2005.
| ||
(c) In establishing or considering the need for rules under
| ||
subsections (a) and (b), the Commission shall take into account
| ||
the effects on the cost and reliability of service and the
| ||
obligation of the utility to provide bundled service under this
| ||
Act. The Commission shall adopt rules that are a cost effective
| ||
means to ensure compliance with this Section.
| ||
(d) Nothing in this Section shall be construed as imposing | ||
any
requirements or obligations that are in conflict with |
federal
law.
| ||
(e) Notwithstanding anything to the contrary, an electric | ||
utility may market and promote the services, rates and programs | ||
authorized by Sections 16-107, and 16-108.6 of this Act. | ||
(Source: P.A. 92-756, eff. 8-2-02.)
| ||
(220 ILCS 5/16-127)
| ||
Sec. 16-127. Environmental disclosure.
| ||
(a) Effective January 1, 2013, every electric utility and
| ||
alternative retail electric supplier shall provide the
| ||
following information, to the maximum extent practicable, to | ||
its customers on a quarterly basis:
| ||
(i) the known sources of electricity supplied,
| ||
broken-out by percentages, of biomass power, coal-fired
| ||
power, hydro power, natural gas-fired power, nuclear
| ||
power, oil-fired power, solar power, wind power and other
| ||
resources, respectively;
| ||
(ii) a pie chart pie-chart that graphically depicts the
| ||
percentages of the sources of the electricity supplied as
| ||
set forth in subparagraph (i) of this subsection; and
| ||
(iii) a pie chart pie-chart that graphically depicts | ||
the quantity of renewable energy resources procured | ||
pursuant to Section 1-75 of the Illinois Power Agency Act | ||
as a percentage of electricity supplied to serve eligible | ||
retail customers as defined in Section 16-111.5(a) of this | ||
Act ; and . |
(iv) after May, 31, 2017, a pie chart that graphically | ||
depicts the quantity of zero emission credits from zero | ||
emission facilities procured under Section 1-75 of the | ||
Illinois Power Agency Act as a percentage of the actual | ||
load of retail customers within its service area.
| ||
(b) In addition, every electric utility and alternative
| ||
retail electric supplier shall provide, to the maximum extent
| ||
practicable, to its customers on a quarterly
basis, a | ||
standardized chart in a format to be determined by
the | ||
Commission in a rule following notice and hearings which
| ||
provides the amounts of carbon dioxide,
nitrogen oxides
and | ||
sulfur dioxide emissions and nuclear waste
attributable to the | ||
known sources of electricity supplied as
set forth in | ||
subparagraph (i) of subsection (a) of this
Section.
| ||
(c) The electric utilities and alternative retail
electric | ||
suppliers may provide their customers with such other
| ||
information as they believe relevant to the information
| ||
required in subsections (a) and (b) of this Section. All of the | ||
information required in subsections (a) and (b) of this Section | ||
shall be made available by the electric utilities or | ||
alternative retail electric suppliers either in an electronic | ||
medium, such as on a website or by electronic mail, or through | ||
the U.S. Postal Service.
| ||
(d) For the purposes of subsection (a) of this Section,
| ||
"biomass" means dedicated crops grown for energy production
and | ||
organic wastes.
|
(e) All of the information provided in subsections (a)
and | ||
(b) of this Section shall be presented to the Commission
for | ||
inclusion in its World Wide Web Site.
| ||
(Source: P.A. 97-1092, eff. 1-1-13.)
| ||
(220 ILCS 5/16-128A) | ||
Sec. 16-128A. Certification of installers, maintainers, or | ||
repairers. | ||
(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, as specified by Commission | ||
rule, 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 persons | ||
or entities that install, maintain, or repair electric vehicle | ||
charging stations. The notification and certification | ||
requirements of this Section shall only be applicable to | ||
individuals or entities that perform work on or within an | ||
electric vehicle charging station, including, but not limited | ||
to, connection of power to an electric vehicle charging | ||
station. | ||
For the purposes of this Section "electric vehicle charging | ||
station" means any facility or equipment that is used to charge | ||
a battery or other energy storage device of an electric | ||
vehicle.
| ||
Rules regulating the installation, maintenance, or repair | ||
of electric vehicle charging stations, in which the Commission | ||
may establish separate requirements based upon the | ||
characteristics of electric vehicle charging stations, so long | ||
as it is in accordance with the requirements of subsection (a) | ||
of Section 16-128 and Section 16-128A of this Act, shall: | ||
(1) establish a certification process for persons or | ||
entities that install, maintain, or repair of electric | ||
vehicle charging stations; | ||
(2) require persons or entities that install, |
maintain, or repair electric vehicle stations to be | ||
certified to do business and to be bonded in the State; | ||
(3) ensure that persons or entities that install, | ||
maintain, or repair electric vehicle charging stations | ||
have the requisite knowledge, skills, training, | ||
experience, and competence to perform functions in a safe | ||
and reliable manner as required under subsection (a) of | ||
Section 16-128 of this Act; | ||
(4) impose reasonable certification fees and penalties | ||
on persons or entities that install, maintain, or repair of | ||
electric vehicle charging stations for noncompliance of | ||
the rules adopted under this subsection; | ||
(5) ensure that all persons or entities that install, | ||
maintain, or repair electric vehicle charging stations | ||
conform to applicable building and electrical codes; | ||
(6) ensure that all electric vehicle charging stations | ||
meet recognized industry standards as the Commission deems | ||
appropriate, such as the National Electric Code (NEC) and | ||
standards developed or created by the Institute of | ||
Electrical and Electronics Engineers (IEEE), the Electric | ||
Power Research Institute (EPRI), the Detroit Edison | ||
Institute (DTE), the Underwriters Laboratory (UL), the | ||
Society of Automotive Engineers (SAE), and the National | ||
Institute of Standards and Technology (NIST); | ||
(7) include any additional requirements that the | ||
Commission deems reasonable to ensure that persons or |
entities that install, maintain, or repair electric | ||
vehicle charging stations meet adequate training, | ||
financial, and competency requirements; | ||
(8) ensure that the obligations required under this | ||
Section and subsection (a) of Section 16-128 of this Act | ||
are met prior to the interconnection of any electric | ||
vehicle charging station; | ||
(9) ensure electric vehicle charging stations | ||
installed by a self-installer are not used for any | ||
commercial purpose; | ||
(10) establish an inspection procedure for the | ||
conversion of electric vehicle charging stations installed | ||
by a self-installer if it is determined that the | ||
self-installed electric vehicle charging station is being | ||
used for commercial purposes; | ||
(11) establish the requirement that all persons or | ||
entities that install electric vehicle charging stations | ||
shall notify the servicing electric utility in writing of | ||
plans to install an electric vehicle charging station and | ||
shall notify the servicing electric utility in writing when | ||
installation is complete; | ||
(12) ensure that all persons or entities that install, | ||
maintain, or repair electric vehicle charging stations | ||
obtain certificates of insurance in sufficient amounts and | ||
coverages that the Commission so determines and, if | ||
necessary as determined by the Commission, names the |
affected public utility as an additional insured; and | ||
(13) identify and determine the training or other | ||
programs by which persons or entities may obtain the | ||
requisite training, skills, or experience necessary to | ||
achieve and maintain compliance with the requirements set | ||
forth in this subsection and subsection (a) of Section | ||
16-128 to install, maintain, or repair electric vehicle | ||
charging stations. | ||
Within 18 months after the effective date of this | ||
amendatory Act of the 97th General Assembly, the Commission | ||
shall adopt rules, and may, if it deems necessary, adopt | ||
emergency rules, for the installation, maintenance, or repair | ||
of electric vehicle charging stations. | ||
All retail customers who own, maintain, or repair an | ||
electric vehicle charging station shall provide the servicing | ||
electric utility (i) a certification that the customer | ||
installing the electric vehicle charging station was a | ||
self-installer or (ii) evidence that the electric vehicle | ||
charging station was installed by an entity certified under | ||
this subsection (d) that is also in good standing with the | ||
Commission. For purposes of this subsection (d), a retail | ||
customer includes that retail customer's employees, officers, | ||
and agents. If the electric vehicle charging station was not | ||
installed by a self-installer, then the person or entity that | ||
plans to install the electric vehicle charging station shall | ||
provide notice to the servicing electric utility prior to |
installation and when installation is complete and provide any | ||
other information required by the Commission's rules | ||
established under subsection (d) of this Section. An electric | ||
utility shall file a tariff or tariffs with the Commission | ||
setting forth the documentation, as specified by Commission | ||
rule, that a retail customer who owns, uses, operates, or | ||
maintains an electric vehicle charging station must provide to | ||
an electric utility. | ||
For the purposes of this subsection, an electric vehicle | ||
charging station shall constitute a distribution facility or | ||
equipment as that term is used in subsection (a) of Section | ||
16-128 of this Act. The phrase "self-installer" means an | ||
individual who (i) leases or purchases an electric vehicle | ||
charging station for his or her own personal use and (ii) | ||
installs an electric vehicle charging station on his or her own | ||
premises without the assistance of any other person. | ||
(e) Fees and penalties collected under this Section shall | ||
be deposited into the Public Utility Fund and used to fund the | ||
Commission's compliance with the obligations imposed by this | ||
Section. | ||
(f) The rules established under subsection (d) of this | ||
Section shall specify the initial dates for compliance with the | ||
rules. | ||
(g) Within 18 months of the effective date of this | ||
amendatory Act of the 99th General Assembly, the Commission | ||
shall adopt rules, including emergency rules, establishing a |
process for entities installing a new utility-scale wind | ||
project or a new utility-scale solar project to certify | ||
compliance with the requirements of this Section. For purposes | ||
of this Section, the phrase "entities installing a new | ||
utility-scale wind project or a new utility-scale solar | ||
project" shall include, but is not limited to, any entity | ||
installing new wind projects or new photovoltaic projects as | ||
such terms are defined in subsection (c) of Section 1-75 of the | ||
Illinois Power Agency Act. | ||
The process shall include an option to complete the | ||
certification electronically by completing forms on-line. An | ||
entity installing a new utility-scale wind project or a new | ||
utility-scale solar project shall be permitted to complete | ||
certification after the subject work has been completed. The | ||
Commission shall maintain on its website a list of entities | ||
installing new utility-scale wind projects or new | ||
utility-scale solar projects measures that have successfully | ||
completed the certification process. | ||
(h) 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 | ||
subsection (g) of this Section; (2) impose reasonable | ||
certification fees and penalties; (3) adopt disciplinary | ||
procedures; (4) investigate any and all activities subject to | ||
subsection (g) or this subsection (h) of 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 subsection (g) of this | ||
Section or take other enforcement action against an entity | ||
subject to subsection (g) or this subsection (h) of this | ||
Section; (6) prescribe forms to be issued for the | ||
administration and enforcement of subsection (g) and this | ||
subsection (h) of this Section; and (7) establish requirements | ||
to ensure that entities installing a new wind project or a new | ||
photovoltaic project have the requisite knowledge, skills, | ||
training, experience, and competence to perform in a safe and | ||
reliable manner as required by subsection (a) of Section 16-128 | ||
of this Act. | ||
(i) The certification of persons or entities that install, | ||
maintain, or repair new wind projects, new photovoltaic | ||
projects, distributed generation facilities , and electric | ||
vehicle charging stations as set forth in this Section is an | ||
exclusive power and function of the State. A home rule unit or | ||
other units of local government authority may subject persons | ||
or entities that install, maintain, or repair new wind | ||
projects, new photovoltaic projects, distributed generation | ||
facilities , or electric vehicle charging stations as set forth | ||
in this Section to any applicable local licensing, siting, and | ||
permitting requirements otherwise permitted under law so long | ||
as only Commission-certified persons or entities are | ||
authorized to install, maintain, or repair new wind projects, |
new photovoltaic projects, distributed generation facilities , | ||
or electric vehicle charging stations. This Section is a | ||
limitation under subsection (h) of Section 6 of Article VII of | ||
the Illinois Constitution on the exercise by home rule units of | ||
powers and functions exclusively exercised by the State. | ||
(Source: P.A. 97-616, eff. 10-26-11; 97-1128, eff. 8-28-12.) | ||
(220 ILCS 5/16-128B new) | ||
Sec. 16-128B. Qualified energy efficiency installers. | ||
(a) Within 18 months after the effective date of this | ||
amendatory Act of the 99th General Assembly, the Commission | ||
shall adopt rules, including emergency rules, establishing a | ||
process for entities installing energy efficiency measures to | ||
certify compliance with the requirements of this Section. | ||
The process shall include an option to complete the | ||
certification electronically by completing forms on-line. An | ||
entity installing energy efficiency measures shall be | ||
permitted to complete the certification after the subject work | ||
has been completed. | ||
The Commission shall maintain on its website a list of | ||
entities installing energy efficiency measures that have | ||
successfully completed the certification process. | ||
(b) In addition to any authority granted to the Commission | ||
under this Act, the Commission may: | ||
(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) An electric utility may not provide a retail customer | ||
with a rebate or other energy efficiency incentive for a | ||
measure that exceeds a minimal amount determined by the | ||
Commission unless the customer provides the electric utility | ||
with (1) a certification that the person installing the energy | ||
efficiency measure was a self-installer; or (2) evidence that | ||
the energy efficiency measure was installed by an entity | ||
certified under this Section that is also in good standing with | ||
the Commission. | ||
(d) The Commission shall: | ||
(1) require entities installing energy efficiency | ||
measures to be certified to do business and to be bonded in | ||
this State; | ||
(2) ensure that entities installing energy efficiency |
measures have the requisite knowledge, skill, training, | ||
experience, and competence to perform functions in a safe | ||
and reliable manner as required under subsection (a) of | ||
Section 16-128 of this Act; | ||
(3) ensure that entities installing energy efficiency | ||
measures conform to applicable building and electrical | ||
codes; | ||
(4) ensure that all entities installing energy | ||
efficiency measures meet recognized industry standards as | ||
the Commission deems appropriate; | ||
(5) include any additional requirements that the | ||
Commission deems reasonable to ensure that entities | ||
installing energy efficiency measures meet adequate | ||
training, financial, and competency requirements; | ||
(6) ensure that all entities installing energy | ||
efficiency measures obtain certificates of insurance in | ||
sufficient amounts and coverages that the Commission so | ||
determines; and | ||
(7) identify and determine the training or other | ||
programs by which persons or entities may obtain the | ||
requisite training, skill, or experience necessary to | ||
achieve and maintain compliance with the requirements of | ||
this Section. | ||
(e) Fees and penalties collected under this Section shall | ||
be deposited into the Public Utility Fund and used to fund the | ||
Commission's compliance with the obligations imposed by this |
Section. | ||
(f) The rules adopted under this Section shall specify the | ||
initial dates for compliance with the rules. | ||
(g) For purposes of this Section, entities installing | ||
energy efficiency measures shall endeavor to support the | ||
diversity goals of this State by attracting, developing, | ||
retaining, and providing opportunities to employees of all | ||
backgrounds and by supporting female-owned, minority-owned, | ||
veteran-owned, and small businesses. | ||
Section 20. The Energy Assistance Act is amended by | ||
changing Sections 13 and 18 as follows:
| ||
(305 ILCS 20/13)
| ||
(Section scheduled to be repealed on December 31, 2018) | ||
Sec. 13. Supplemental Low-Income Energy Assistance Fund.
| ||
(a) The Supplemental Low-Income Energy Assistance
Fund is | ||
hereby created as a special fund in the State
Treasury. The | ||
Supplemental Low-Income Energy Assistance Fund
is authorized | ||
to receive moneys from voluntary donations from individuals, | ||
foundations, corporations, and other sources, moneys received | ||
pursuant to Section 17, and, by statutory deposit, the moneys
| ||
collected pursuant to this Section. The Fund is also authorized | ||
to receive voluntary donations from individuals, foundations, | ||
corporations, and other sources, as well as contributions made | ||
in accordance with Section 507MM of the Illinois Income Tax |
Act. Subject to appropriation,
the Department shall use
moneys | ||
from the Supplemental Low-Income Energy Assistance Fund
for | ||
payments to electric or gas public utilities,
municipal | ||
electric or gas utilities, and electric cooperatives
on behalf | ||
of their customers who are participants in the
program | ||
authorized by Sections 4 and 18 of this Act, for the provision | ||
of
weatherization services and for
administration of the | ||
Supplemental Low-Income Energy
Assistance Fund. The yearly | ||
expenditures for weatherization may not exceed 10%
of the | ||
amount collected during the year pursuant to this Section. The | ||
yearly administrative expenses of the
Supplemental Low-Income | ||
Energy Assistance Fund may not exceed
10% of the amount | ||
collected during that year
pursuant to this Section, except | ||
when unspent funds from the Supplemental Low-Income Energy | ||
Assistance Fund are reallocated from a previous year; any | ||
unspent balance of the 10% administrative allowance may be | ||
utilized for administrative expenses in the year they are | ||
reallocated.
| ||
(b) Notwithstanding the provisions of Section 16-111
of the | ||
Public Utilities Act but subject to subsection (k) of this | ||
Section,
each public utility, electric
cooperative, as defined | ||
in Section 3.4 of the Electric Supplier Act,
and municipal | ||
utility, as referenced in Section 3-105 of the Public Utilities
| ||
Act, that is engaged in the delivery of electricity or the
| ||
distribution of natural gas within the State of Illinois
shall, | ||
effective January 1, 1998,
assess each of
its customer accounts |
a monthly Energy Assistance Charge for
the Supplemental | ||
Low-Income Energy Assistance Fund.
The delivering public | ||
utility, municipal electric or gas utility, or electric
or gas
| ||
cooperative for a self-assessing purchaser remains subject to | ||
the collection of
the
fee imposed by this Section.
The
monthly | ||
charge shall be as follows:
| ||
(1) $0.48 per month on each account for
residential | ||
electric service;
| ||
(2) $0.48 per month on each account for
residential gas | ||
service;
| ||
(3) $4.80 per month on each account for non-residential | ||
electric service
which had less than 10 megawatts
of peak | ||
demand during the previous calendar year;
| ||
(4) $4.80 per month on each account for non-residential | ||
gas service which
had distributed to it less than
4,000,000 | ||
therms of gas during the previous calendar year;
| ||
(5) $360 per month on each account for non-residential | ||
electric service
which had 10 megawatts or greater
of peak | ||
demand during the previous calendar year; and
| ||
(6) $360 per month on each account for non-residential | ||
gas service
which had 4,000,000 or more therms of
gas | ||
distributed to it during the previous calendar year. | ||
The incremental change to such charges imposed by this | ||
amendatory Act of the 96th General Assembly shall not (i) be | ||
used for any purpose other than to directly assist customers | ||
and (ii) be applicable to utilities serving less than 100,000 |
customers in Illinois on January 1, 2009. | ||
In addition, electric and gas utilities have committed, and | ||
shall contribute, a one-time payment of $22 million to the | ||
Fund, within 10 days after the effective date of the tariffs | ||
established pursuant to Sections 16-111.8 and 19-145 of the | ||
Public Utilities Act to be used for the Department's cost of | ||
implementing the programs described in Section 18 of this | ||
amendatory Act of the 96th General Assembly, the Arrearage | ||
Reduction Program described in Section 18, and the programs | ||
described in Section 8-105 of the Public Utilities Act. If a | ||
utility elects not to file a rider within 90 days after the | ||
effective date of this amendatory Act of the 96th General | ||
Assembly, then the contribution from such utility shall be made | ||
no later than February 1, 2010.
| ||
(c) For purposes of this Section:
| ||
(1) "residential electric service" means
electric | ||
utility service for household purposes delivered to a
| ||
dwelling of 2 or fewer units which is billed under a
| ||
residential rate, or electric utility service for | ||
household
purposes delivered to a dwelling unit or units | ||
which is billed
under a residential rate and is registered | ||
by a separate meter
for each dwelling unit;
| ||
(2) "residential gas service" means gas utility
| ||
service for household purposes distributed to a dwelling of
| ||
2 or fewer units which is billed under a residential rate,
| ||
or gas utility service for household purposes distributed |
to a
dwelling unit or units which is billed under a | ||
residential
rate and is registered by a separate meter for | ||
each dwelling
unit;
| ||
(3) "non-residential electric service" means
electric | ||
utility service which is not residential electric
service; | ||
and
| ||
(4) "non-residential gas service" means gas
utility | ||
service which is not residential gas service.
| ||
(d) Within 30 days after the effective date of this | ||
amendatory Act of the 96th General Assembly, each public
| ||
utility engaged in the delivery of electricity or the
| ||
distribution of natural gas shall file with the Illinois
| ||
Commerce Commission tariffs incorporating the Energy
| ||
Assistance Charge in other charges stated in such tariffs, | ||
which shall become effective no later than the beginning of the | ||
first billing cycle following such filing.
| ||
(e) The Energy Assistance Charge assessed by
electric and | ||
gas public utilities shall be considered a charge
for public | ||
utility service.
| ||
(f) By the 20th day of the month following the month in | ||
which the charges
imposed by the Section were collected, each | ||
public
utility,
municipal utility, and electric cooperative | ||
shall remit to the
Department of Revenue all moneys received as | ||
payment of the
Energy Assistance Charge on a return prescribed | ||
and furnished by the
Department of Revenue showing such | ||
information as the Department of Revenue may
reasonably |
require; provided, however, that a utility offering an | ||
Arrearage Reduction Program or Supplemental Arrearage | ||
Reduction Program pursuant to Section 18 of this Act shall be | ||
entitled to net those amounts necessary to fund and recover the | ||
costs of such Programs Program as authorized by that Section | ||
that is no more than the incremental change in such Energy | ||
Assistance Charge authorized by Public Act 96-33 this | ||
amendatory Act of the 96th General Assembly . If a customer | ||
makes a partial payment, a public
utility, municipal
utility, | ||
or electric cooperative may elect either: (i) to apply
such | ||
partial payments first to amounts owed to the
utility or | ||
cooperative for its services and then to payment
for the Energy | ||
Assistance Charge or (ii) to apply such partial payments
on a | ||
pro-rata basis between amounts owed to the
utility or | ||
cooperative for its services and to payment for the
Energy | ||
Assistance Charge.
| ||
(g) The Department of Revenue shall deposit into the
| ||
Supplemental Low-Income Energy Assistance Fund all moneys
| ||
remitted to it in accordance with subsection (f) of this
| ||
Section; provided, however, that the amounts remitted by each | ||
utility shall be used to provide assistance to that utility's | ||
customers. The utilities shall coordinate with the Department | ||
to establish an equitable and practical methodology for | ||
implementing this subsection (g) beginning with the 2010 | ||
program year.
| ||
(h) On or before December 31, 2002, the Department shall
|
prepare a report for the General Assembly on the expenditure of | ||
funds
appropriated from the Low-Income Energy Assistance Block | ||
Grant Fund for the
program authorized under Section 4 of this | ||
Act.
| ||
(i) The Department of Revenue may establish such
rules as | ||
it deems necessary to implement this Section.
| ||
(j) The Department of Commerce and Economic Opportunity
may | ||
establish such rules as it deems necessary to implement
this | ||
Section.
| ||
(k) The charges imposed by this Section shall only apply to | ||
customers of
municipal electric or gas utilities and electric | ||
or gas cooperatives if
the municipal
electric or gas
utility or | ||
electric or gas cooperative makes an affirmative decision to
| ||
impose the
charge. If a municipal electric or gas utility or an | ||
electric
cooperative makes an affirmative decision to impose | ||
the charge provided by
this
Section, the municipal electric or | ||
gas utility or electric cooperative shall
inform the
Department | ||
of Revenue in writing of such decision when it begins to impose | ||
the
charge. If a municipal electric or gas utility or electric | ||
or gas
cooperative does not
assess
this charge, the Department | ||
may not use funds from the Supplemental Low-Income
Energy | ||
Assistance Fund to provide benefits to its customers under the | ||
program
authorized by Section 4 of this Act.
| ||
In its use of federal funds under this Act, the Department | ||
may not cause a
disproportionate share of those federal funds | ||
to benefit customers of systems
which do not assess the charge |
provided by this Section.
| ||
This Section is repealed on January 1, 2025 effective | ||
December 31, 2018
unless
renewed by action of the General | ||
Assembly. The General Assembly shall
consider the results of | ||
the evaluations described in Section 8 in its
deliberations.
| ||
(Source: P.A. 98-429, eff. 8-16-13; 99-457, eff. 1-1-16 .)
| ||
(305 ILCS 20/18)
| ||
Sec. 18. Financial assistance; payment plans. | ||
(a) The Percentage of Income Payment Plan (PIPP or PIP | ||
Plan) is hereby created as a mandatory bill payment assistance | ||
program for low-income residential customers of utilities | ||
serving more than 100,000 retail customers as of January 1, | ||
2009. The PIP Plan will: | ||
(1) bring participants' gas and electric bills into the | ||
range of affordability; | ||
(2) provide incentives for participants to make timely | ||
payments; | ||
(3) encourage participants to reduce usage and | ||
participate in conservation and energy efficiency measures | ||
that reduce the customer's bill and payment requirements; | ||
and | ||
(4) identify participants whose homes are most in need | ||
of weatherization. | ||
(b) For purposes of this Section: | ||
(1) "LIHEAP" means the energy assistance program |
established under the Illinois Energy Assistance Act and | ||
the Low-Income Home Energy Assistance Act of 1981. | ||
(2) "Plan participant" is an eligible participant who | ||
is also eligible for the PIPP and who will receive either a | ||
percentage of income payment credit under the PIPP criteria | ||
set forth in this Act or a benefit pursuant to Section 4 of | ||
this Act. Plan participants are a subset of eligible | ||
participants. | ||
(3) "Pre-program arrears" means the amount a plan | ||
participant owes for gas or electric service at the time | ||
the participant is determined to be eligible for the PIPP | ||
or the program set forth in Section 4 of this Act. | ||
(4) "Eligible participant" means any person who has | ||
applied for, been accepted and is receiving residential | ||
service from a gas or electric utility and who is also | ||
eligible for LIHEAP. | ||
(c) The PIP Plan shall be administered as follows: | ||
(1) The Department shall coordinate with Local | ||
Administrative Agencies (LAAs), to determine eligibility | ||
for the Illinois Low Income Home Energy Assistance Program | ||
(LIHEAP) pursuant to the Energy Assistance Act, provided | ||
that eligible income shall be no more than 150% of the | ||
poverty level. Applicants will be screened to determine | ||
whether the applicant's projected payments for electric | ||
service or natural gas service over a 12-month period | ||
exceed the criteria established in this Section. To |
maintain the financial integrity of the program, the | ||
Department may limit eligibility to households with income | ||
below 125% of the poverty level. | ||
(2) The Department shall establish the percentage of | ||
income formula to determine the amount of a monthly credit, | ||
not to exceed $150 per month per household, not to exceed | ||
$1,800 annually, that will be applied to PIP Plan | ||
participants' utility bills based on the portion of the | ||
bill that is the responsibility of the participant provided | ||
that the percentage shall be no more than a total of 6% of | ||
the relevant income for gas and electric utility bills | ||
combined, but in any event no less than $10 per month, | ||
unless the household does not pay directly for heat, in | ||
which case its payment shall be 2.4% of income but in any | ||
event no less than $5 per month. The Department may | ||
establish a minimum credit amount based on the cost of | ||
administering the program and may deny credits to otherwise | ||
eligible participants if the cost of administering the | ||
credit exceeds the actual amount of any monthly credit to a | ||
participant. If the participant takes both gas and electric | ||
service, 66.67% of the credit shall be allocated to the | ||
entity that provides the participant's primary energy | ||
supply for heating. Each participant shall enter into a | ||
levelized payment plan for, as applicable, gas and electric | ||
service and such plans shall be implemented by the utility | ||
so that a participant's usage and required payments are |
reviewed and adjusted regularly, but no more frequently | ||
than quarterly.
Nothing in this Section is intended to | ||
prohibit a customer, who is otherwise eligible for LIHEAP, | ||
from participating in the program described in Section 4 of | ||
this Act. Eligible participants who receive such a benefit | ||
shall be considered plan participants and shall be eligible | ||
to participate in the Arrearage Reduction Program | ||
described in item (5) of this subsection (c). | ||
(3) The Department shall remit, through the LAAs, to | ||
the utility or participating alternative supplier that | ||
portion of the plan participant's bill that is not the | ||
responsibility of the participant. In the event that the | ||
Department fails to timely remit payment to the utility, | ||
the utility shall be entitled to recover all costs related | ||
to such nonpayment through the automatic adjustment clause | ||
tariffs established pursuant to Section 16-111.8 and | ||
Section 19-145 of the Public Utilities Act. For purposes of | ||
this item (3) of this subsection (c), payment is due on the | ||
date specified on the participant's bill. The Department, | ||
the Department of Revenue and LAAs shall adopt processes | ||
that provide for the timely payment required by this item | ||
(3) of this subsection (c). | ||
(4) A plan participant is responsible for all actual | ||
charges for utility service in excess of the PIPP credit. | ||
Pre-program arrears that are included in the Arrearage | ||
Reduction Program described in item (5) of this subsection |
(c) shall not be included in the calculation of the | ||
levelized payment plan. Emergency or crisis assistance | ||
payments shall not affect the amount of any PIPP credit to | ||
which a participant is entitled. | ||
(5) Electric and gas utilities subject to this Section | ||
shall implement an Arrearage Reduction Program (ARP) for | ||
plan participants as follows: for each month that a plan | ||
participant timely pays his or her utility bill, the | ||
utility shall apply a credit to a portion of the | ||
participant's pre-program arrears, if any, equal to | ||
one-twelfth of such arrearage provided that the total | ||
amount of arrearage credits shall equal no more than $1,000 | ||
annually for each participant for gas and no more than | ||
$1,000 annually for each participant for electricity. In | ||
the third year of the PIPP, the Department, in consultation | ||
with the Policy Advisory Council established pursuant to | ||
Section 5 of this Act, shall determine by rule an | ||
appropriate per participant total cap on such amounts, if | ||
any. Those plan participants participating in the ARP shall | ||
not be subject to the imposition of any additional late | ||
payment fees on pre-program arrears covered by the ARP. In | ||
all other respects, the utility shall bill and collect the | ||
monthly bill of a plan participant pursuant to the same | ||
rules, regulations, programs and policies as applicable to | ||
residential customers generally. Participation in the | ||
Arrearage Reduction Program shall be limited to the maximum |
amount of funds available as set forth in subsection (f) of | ||
Section 13 of this Act. In the event any donated funds | ||
under Section 13 of this Act are specifically designated | ||
for the purpose of funding the ARP, the Department shall | ||
remit such amounts to the utilities upon verification that | ||
such funds are needed to fund the ARP. Nothing in this | ||
Section shall preclude a utility from continuing to | ||
implement, and apply credits under, an ARP in the event | ||
that the PIPP or LIHEAP is suspended due to lack of funding | ||
such that the plan participant does not receive a benefit | ||
under either the PIPP or LIHEAP. | ||
(5.5) In addition to the ARP described in paragraph (5) | ||
of this subsection (c), utilities may also implement a | ||
Supplemental Arrearage Reduction Program (SARP) for | ||
eligible participants who are not able to become plan | ||
participants due to PIPP timing or funding constraints. If | ||
a utility elects to implement a SARP, it shall be | ||
administered as follows: for each month that a SARP | ||
participant timely pays his or her utility bill, the | ||
utility shall apply a credit to a portion of the | ||
participant's pre-program arrears, if any, equal to | ||
one-twelfth of such arrearage, provided that the utility | ||
may limit the total amount of arrearage credits to no more | ||
than $1,000 annually for each participant for gas and no | ||
more than $1,000 annually for each participant for | ||
electricity. SARP participants shall not be subject to the |
imposition of any additional late payment fees on | ||
pre-program arrears covered by the SARP. In all other | ||
respects, the utility shall bill and collect the monthly | ||
bill of a SARP participant under the same rules, | ||
regulations, programs, and policies as applicable to | ||
residential customers generally. Participation in the SARP | ||
shall be limited to the maximum amount of funds available | ||
as set forth in subsection (f) of Section 13 of this Act. | ||
In the event any donated funds under Section 13 of this Act | ||
are specifically designated for the purpose of funding the | ||
SARP, the Department shall remit such amounts to the | ||
utilities upon verification that such funds are needed to | ||
fund the SARP. | ||
(6) The Department may terminate a plan participant's | ||
eligibility for the PIP Plan upon notification by the | ||
utility that the participant's monthly utility payment is | ||
more than 45 days past due. | ||
(7) The Department, in consultation with the Policy | ||
Advisory Council, may adjust the number of PIP Plan | ||
participants annually, if necessary, to match the | ||
availability of funds from LIHEAP . Any plan participant who | ||
qualifies for a PIPP credit under a utility's PIPP shall be | ||
entitled to participate in and receive a credit under such | ||
utility's ARP for so long as such utility has ARP funds | ||
available, regardless of whether the customer's | ||
participation under another utility's PIPP or ARP has been |
curtailed or limited because of a lack of funds. | ||
(8) The Department shall fully implement the PIPP at | ||
the earliest possible date it is able to effectively | ||
administer the PIPP. Within 90 days of the effective date | ||
of this amendatory Act of the 96th General Assembly, the | ||
Department shall, in consultation with utility companies, | ||
participating alternative suppliers, LAAs and the Illinois | ||
Commerce Commission (Commission), issue a detailed | ||
implementation plan which shall include detailed testing | ||
protocols and analysis of the capacity for implementation | ||
by the LAAs and utilities. Such consultation process also | ||
shall address how to implement the PIPP in the most | ||
cost-effective and timely manner, and shall identify | ||
opportunities for relying on the expertise of utilities, | ||
LAAs and the Commission. Following the implementation of | ||
the testing protocols, the Department shall issue a written | ||
report on the feasibility of full or gradual | ||
implementation. The PIPP shall be fully implemented by | ||
September 1, 2011, but may be phased in prior to that date. | ||
(9) As part of the screening process established under | ||
item (1) of this subsection (c), the Department and LAAs | ||
shall assess whether any energy efficiency or demand | ||
response measures are available to the plan participant at | ||
no cost, and if so, the participant shall enroll in any | ||
such program for which he or she is eligible. The LAAs | ||
shall assist the participant in the applicable enrollment |
or application process. | ||
(10) Each alternative retail electric and gas supplier | ||
serving residential customers shall elect whether to | ||
participate in the PIPP or ARP described in this Section. | ||
Any such supplier electing to participate in the PIPP shall | ||
provide to the Department such information as the | ||
Department may require, including, without limitation, | ||
information sufficient for the Department to determine the | ||
proportionate allocation of credits between the | ||
alternative supplier and the utility. If a utility in whose | ||
service territory an alternative supplier serves customers | ||
contributes money to the ARP fund which is not recovered | ||
from ratepayers, then an alternative supplier which | ||
participates in ARP in that utility's service territory | ||
shall also contribute to the ARP fund in an amount that is | ||
commensurate with the number of alternative supplier | ||
customers who elect to participate in the program. | ||
(d) The Department, in consultation with the Policy | ||
Advisory Council, shall develop and implement a program to | ||
educate customers about the PIP Plan and about their rights and | ||
responsibilities under the percentage of income component. The | ||
Department, in consultation with the Policy Advisory Council, | ||
shall establish a process that LAAs shall use to contact | ||
customers in jeopardy of losing eligibility due to late | ||
payments. The Department shall ensure that LAAs are adequately | ||
funded to perform all necessary educational tasks. |
(e) The PIPP shall be administered in a manner which | ||
ensures that credits to plan participants will not be counted | ||
as income or as a resource in other means-tested assistance | ||
programs for low-income households or otherwise result in the | ||
loss of federal or State assistance dollars for low-income | ||
households. | ||
(f) In order to ensure that implementation costs are | ||
minimized, the Department and utilities shall work together to | ||
identify cost-effective ways to transfer information | ||
electronically and to employ available protocols that will | ||
minimize their respective administrative costs as follows: | ||
(1) The Commission may require utilities to provide | ||
such information on customer usage and billing and payment | ||
information as required by the Department to implement the | ||
PIP Plan and to provide written notices and communications | ||
to plan participants. | ||
(2) Each utility and participating alternative | ||
supplier shall file annual reports with the Department and | ||
the Commission that cumulatively summarize and update | ||
program information as required by the Commission's rules. | ||
The reports shall track implementation costs and contain | ||
such information as is necessary to evaluate the success of | ||
the PIPP. | ||
(3) The Department and the Commission shall have the | ||
authority to promulgate rules and regulations necessary to | ||
execute and administer the provisions of this Section. |
(g) Each utility shall be entitled to recover reasonable | ||
administrative and operational costs incurred to comply with | ||
this Section from the Supplemental Low Income Energy Assistance | ||
Fund. The utility may net such costs against monies it would | ||
otherwise remit to the Funds, and each utility shall include in | ||
the annual report required under subsection (f) of this Section | ||
an accounting for the funds collected.
| ||
(Source: P.A. 96-33, eff. 7-10-09.)
| ||
Section 85. The Public Utilities Act is amended by changing | ||
Section 2-202 as follows:
| ||
(220 ILCS 5/2-202) (from Ch. 111 2/3, par. 2-202)
| ||
Sec. 2-202. Policy; Public Utility Fund; tax.
| ||
(a) It is declared to be the public policy of this State | ||
that
in order to maintain and foster the effective regulation | ||
of public
utilities under this Act in the interests of the | ||
People of the State of
Illinois and the public utilities as | ||
well, the public utilities subject
to regulation under this Act | ||
and which enjoy the privilege of operating
as public utilities | ||
in this State, shall bear the expense of
administering this Act | ||
by means of a tax on such privilege measured by the
annual | ||
gross revenue of such public utilities in the manner provided | ||
in
this Section. For purposes of this Section, "expense of
| ||
administering this Act" includes any costs incident to studies, | ||
whether
made by the Commission or under contract entered into |
by the Commission,
concerning environmental pollution problems | ||
caused or contributed to by
public utilities and the means for | ||
eliminating or abating those
problems. Such proceeds shall be | ||
deposited in the Public Utility Fund in
the State treasury.
| ||
(b) All of the ordinary and contingent expenses of the
| ||
Commission incident to the administration of this Act shall be | ||
paid out
of the Public Utility Fund except the compensation of | ||
the members of the
Commission which shall be paid from the | ||
General Revenue Fund.
Notwithstanding other provisions of this | ||
Act to the contrary, the
ordinary and contingent expenses of | ||
the Commission incident to the
administration of the Illinois | ||
Commercial Transportation Law may be paid
from appropriations | ||
from the Public Utility Fund through the end of fiscal
year | ||
1986.
| ||
(c) A tax is imposed upon each public utility subject to | ||
the
provisions of this Act equal to .08% of its gross revenue | ||
for each
calendar year commencing with the calendar year | ||
beginning January 1, 1982,
except that the Commission may, by | ||
rule, establish a different rate no
greater than 0.1%.
For | ||
purposes of this Section, "gross revenue" shall not include
| ||
revenue from the production, transmission, distribution, sale,
| ||
delivery, or furnishing of electricity.
"Gross revenue" shall | ||
not include amounts paid by telecommunications retailers
under | ||
the Telecommunications Infrastructure Maintenance Fee Act.
| ||
(d) Annual gross revenue returns shall be filed in | ||
accordance with
paragraph (1) or (2) of this subsection (d).
|
(1) Except as provided in paragraph (2) of this | ||
subsection (d), on
or before January 10 of each year each | ||
public utility
subject to the provisions of this Act shall | ||
file with the Commission an
estimated annual gross revenue | ||
return containing an estimate of the amount
of its gross | ||
revenue for the calendar year commencing January 1 of said
| ||
year and a statement of the amount of tax due for said | ||
calendar year on the
basis of that estimate. Public | ||
utilities may also file revised returns
containing updated | ||
estimates and updated amounts of tax due during the
| ||
calendar year. These revised returns, if filed, shall form | ||
the basis for
quarterly payments due during the remainder | ||
of the calendar year. In
addition, on or before March 31 of | ||
each year, each public
utility shall
file an amended return | ||
showing the actual amount of gross revenues shown by
the | ||
company's books and records as of December 31 of the | ||
previous year.
Forms and instructions for such estimated, | ||
revised, and amended returns
shall be devised and supplied | ||
by the Commission.
| ||
(2) Beginning with returns due after January 1, 2002, | ||
the
requirements of paragraph (1) of
this subsection (d) | ||
shall not apply to any public utility in any calendar year
| ||
for which the total tax the public utility owes under this | ||
Section is less than
$10,000. For such public utilities | ||
with respect to such years,
the public
utility shall file | ||
with the Commission, on or before March 31
of the
following |
year, an annual gross revenue return for the year and a | ||
statement of
the amount of tax due for that year on the | ||
basis of such a return. Forms and
instructions for such | ||
returns and corrected returns shall be devised and
supplied | ||
by the Commission.
| ||
(e) All returns submitted to the Commission by a public | ||
utility as
provided in this subsection (e) or subsection (d) of | ||
this Section shall contain
or be verified by a written | ||
declaration by an appropriate officer of the public
utility | ||
that the return is made under the penalties of perjury. The | ||
Commission
may audit each such return submitted and may, under | ||
the provisions of Section
5-101 of this Act, take such measures | ||
as are necessary to ascertain the
correctness of the returns | ||
submitted. The Commission has the power to direct
the filing of | ||
a corrected return by any utility which has filed an incorrect
| ||
return and to direct the filing of a return by any utility | ||
which has failed to
submit a return. A taxpayer's signing a | ||
fraudulent return under this Section
is perjury, as defined in | ||
Section 32-2 of the Criminal Code of 2012.
| ||
(f) (1) For all public utilities subject to paragraph (1) | ||
of
subsection (d), at least one quarter of the annual amount of | ||
tax due
under subsection (c) shall be paid to the Commission on | ||
or before the tenth day
of January, April, July, and October of | ||
the calendar year subject to tax. In
the event that an | ||
adjustment in the amount of tax due should be necessary as a
| ||
result of the filing of an amended or corrected return under |
subsection (d) or
subsection (e) of this Section, the amount of | ||
any deficiency shall be paid by
the public utility together | ||
with the amended or corrected return and the amount
of any | ||
excess shall, after the filing of a claim for credit by the | ||
public
utility, be returned to the public utility in the form | ||
of a credit memorandum
in the amount of such excess or be | ||
refunded to the public utility in accordance
with the | ||
provisions of subsection (k) of this Section. However, if such
| ||
deficiency or excess is less than $1, then the public utility | ||
need not pay the
deficiency and may not claim a credit.
| ||
(2) Any public utility subject to paragraph (2) of | ||
subsection (d)
shall pay the amount of tax due under subsection | ||
(c) on or before March
31 next following the end of the | ||
calendar year subject to tax. In the
event that an adjustment | ||
in the amount of tax due should be necessary as a
result of the | ||
filing of a corrected return under subsection (e), the amount
| ||
of any deficiency shall be paid by the public utility at the | ||
time the
corrected return is filed. Any excess tax payment by | ||
the public utility shall
be returned to it after the filing of | ||
a claim for credit, in the form of a
credit memorandum in the | ||
amount of the excess. However, if such deficiency or
excess is | ||
less than $1, the public utility need not pay the deficiency | ||
and may
not claim a credit.
| ||
(g) Each installment or required payment of the tax imposed | ||
by
subsection (c) becomes delinquent at midnight of the date | ||
that it is due.
Failure to make a payment as required by this |
Section shall result in the
imposition of a late payment | ||
penalty, an underestimation penalty, or both,
as provided by | ||
this subsection. The late payment penalty shall be the
greater | ||
of:
| ||
(1) $25 for each month or portion of a month that the | ||
installment or
required payment is unpaid or
| ||
(2) an amount equal to the difference between what | ||
should have been paid
on the due date, based upon the most | ||
recently filed estimated, annual, or
amended return, and | ||
what was
actually paid, times 1%, for each month or portion | ||
of a
month that
the installment or required payment goes | ||
unpaid. This penalty may be
assessed as soon as the | ||
installment or required payment becomes delinquent.
| ||
The underestimation penalty shall apply to those public | ||
utilities
subject to paragraph (1) of subsection (d) and shall | ||
be calculated after
the filing of the amended return. It shall | ||
be imposed if the amount actually
paid on any of the dates | ||
specified in subsection (f) is not equal to at least
one-fourth | ||
of the amount actually due for the year, and shall equal the | ||
greater
of:
| ||
(1) $25 for each month or portion of a month that the | ||
amount due is unpaid
or
| ||
(2) an amount equal to the difference between what | ||
should have been
paid, based on the amended return, and | ||
what was actually paid as of the
date specified in | ||
subsection (f), times a percentage equal to 1/12 of the
sum |
of 10% and the percentage most recently established by the | ||
Commission
for interest to be paid on customer deposits | ||
under 83 Ill. Adm. Code
280.70(e)(1), for each month or | ||
portion of a month that the amount due goes
unpaid, except | ||
that no underestimation penalty shall be assessed if the
| ||
amount actually paid on or before each of the dates | ||
specified in subsection
(f) was
based on an estimate of | ||
gross revenues at least equal to the actual gross
revenues | ||
for the previous year. The Commission may enforce the | ||
collection
of any delinquent installment or payment, or | ||
portion thereof by legal
action or in any other manner by | ||
which the collection of debts due the
State of Illinois may | ||
be enforced under the laws of this State. The
executive | ||
director or his designee may excuse the payment of an
| ||
assessed penalty or a portion of an assessed penalty if he | ||
determines that
enforced collection of the penalty as | ||
assessed
would be unjust.
| ||
(h) All sums collected by the Commission under the | ||
provisions of
this Section shall be paid promptly after the | ||
receipt of the same, accompanied
by a detailed statement | ||
thereof, into the Public Utility Fund in the State
treasury.
| ||
(i) During the month of October of each odd-numbered year | ||
the
Commission shall:
| ||
(1) determine the amount of all moneys deposited in the | ||
Public Utility
Fund during the preceding fiscal biennium | ||
plus the balance, if any, in that
fund at the beginning of |
that biennium;
| ||
(2) determine the sum total of the following items: (A) | ||
all moneys
expended or obligated against appropriations | ||
made from the Public Utility
Fund during the preceding | ||
fiscal biennium, plus (B) the sum of the credit
memoranda | ||
then outstanding against the Public Utility Fund, if any; | ||
and
| ||
(3) determine the amount, if any, by which the sum | ||
determined as
provided in item (1) exceeds the amount | ||
determined as provided in item (2).
| ||
If the amount determined as provided in item (3) of this | ||
subsection exceeds
50% of the previous fiscal year's | ||
appropriation level, the Commission shall then compute the
| ||
proportionate amount, if
any, which (x) the tax paid hereunder | ||
by each utility during the preceding
biennium, and (y) the | ||
amount paid into the Public Utility Fund during the
preceding | ||
biennium by the Department of Revenue pursuant to Sections 2-9 | ||
and
2-11
of the Electricity Excise Tax Law, bears to the | ||
difference between the amount
determined as
provided in item | ||
(3) of this subsection (i) and 50% of the previous fiscal | ||
year's appropriation level.
The
Commission
shall cause the | ||
proportionate amount determined with respect to payments
made | ||
under the Electricity Excise Tax Law to be transferred into the | ||
General
Revenue Fund in the State Treasury, and notify each
| ||
public utility that it may file during the 3 month period after | ||
the date of
notification a claim for credit for the |
proportionate amount
determined with respect to payments made | ||
hereunder by the public utility.
If the
proportionate amount is | ||
less than $10, no notification will be sent by the
Commission, | ||
and no right to a claim exists as to that amount. Upon the
| ||
filing of a claim for credit within the period provided, the | ||
Commission
shall issue a credit memorandum in such amount to | ||
such public utility. Any
claim for credit filed after the | ||
period provided for in this Section is void.
| ||
(i-5) During the month of October of each year the | ||
Commission shall: | ||
(1) determine the amount of all moneys expected to be | ||
deposited in the Public Utility Fund during the current | ||
fiscal year, plus the balance, if any, in that fund at the | ||
beginning of that year; | ||
(2) determine the total of all moneys expected to be | ||
expended or obligated against appropriations made from the | ||
Public Utility Fund during the current fiscal year; and | ||
(3) determine the amount, if any, by which the amount | ||
determined in paragraph (2) exceeds the amount determined | ||
as provided in paragraph (1). | ||
If the amount determined as provided in paragraph (3) of | ||
this subsection (i-5) results in a deficit, the Commission may | ||
assess electric utilities and gas utilities for the difference | ||
between the amount appropriated for the ordinary and contingent | ||
expenses of the Commission and the amount derived under | ||
paragraph (1) of this subsection (i-5). Such proceeds shall be |
deposited in the Public Utility Fund in
the State treasury. The | ||
Commission shall apportion that difference among those public | ||
utilities on the basis of each utility's share of the total | ||
intrastate gross revenues of the utilities subject to this | ||
subsection (i-5). Payments required under this subsection | ||
(i-5) shall be made in the time and manner directed by the | ||
Commission. The Commission shall permit utilities to recover | ||
Illinois Commerce Commission assessments effective pursuant to | ||
this subsection through an automatic adjustment mechanism that | ||
is incorporated into an existing tariff that recovers costs | ||
associated with this Section, or through a supplemental | ||
customer charge. | ||
Within 6 months after the first time assessments are made | ||
under this subsection (i-5), the Commission shall initiate a | ||
docketed proceeding in which it shall consider, in addition to | ||
assessments from electric and gas utilities subject to this | ||
subsection, the raising of assessments from, or the payment of | ||
fees by, water and sewer utilities, entities possessing | ||
certificates of service authority as alternative retail | ||
electric suppliers under Section 16-115 of this Act, entities | ||
possessing certificates of service authority as alternative | ||
gas suppliers under Section 19-110 of this Act, and | ||
telecommunications carriers providing local exchange | ||
telecommunications service or interexchange telecommunications | ||
service under sections 13-204 or 13-205 of this Act. The | ||
amounts so determined shall be based on the costs to the agency |
of the exercise of its regulatory and supervisory functions | ||
with regard to the different industries and service providers | ||
subject to the proceeding. No less often than every 3 years | ||
after the end of a proceeding under this subsection (i-5), the | ||
Commission shall initiate another proceeding for that purpose. | ||
The Commission may use this apportionment method until the | ||
docketed proceeding in which the Commission considers the | ||
raising of assessments from other entities subject to its | ||
jurisdiction under this Act has concluded. No credit memoranda | ||
shall be issued pursuant to subsection (i) if the amount | ||
determined as provided in paragraph (3) of this subsection | ||
(i-5) results in a deficit. | ||
(j) Credit memoranda issued pursuant to subsection (f)
and | ||
credit memoranda issued after notification and filing pursuant | ||
to
subsection (i) may be applied for the 2 year period from the | ||
date of issuance,
against the payment of any amount due during | ||
that period under
the tax imposed by subsection (c), or, | ||
subject to reasonable rule of the
Commission including | ||
requirement of notification, may be assigned to any
other | ||
public utility subject to regulation under this Act. Any | ||
application
of credit memoranda after the period provided for | ||
in this Section is void.
| ||
(k) The chairman or executive director may make refund of | ||
fees, taxes or
other charges whenever he shall determine that | ||
the person or public utility
will not be liable for payment of | ||
such fees, taxes or charges during the
next 24 months and he |
determines that the issuance of a credit memorandum
would be | ||
unjust.
| ||
(Source: P.A. 97-1150, eff. 1-25-13.)
| ||
Section 97. Severability. The provisions of this Act are | ||
severable under Section 1.31 of the Statute on Statutes. |