Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2552 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2552 Introduced 3/23/2023, by Sen. David Koehler SYNOPSIS AS INTRODUCED: See Index Amends the Illinois Power Agency Act. Authorizes the Illinois Power Agency to develop capacity procurement plans and conduct competitive procurement processes for the procurement of capacity needed to ensure environmentally sustainable long-term resource adequacy across the State at the lowest cost over time. Amends the Public Utilities Act. Changes the cumulative persisting annual savings goals for electric utilities that serve less than 3,000,000 retail customers but more than 500,000 retail customers for the years of 2024 through 2030. Provides that the cumulative persisting annual savings goals beyond the year 2030 shall increase by 0.9 (rather than 0.6) percentage points per year. Changes the requirements for submitting proposed plans and funding levels to meet savings goals for an electric utility serving more than 500,000 retail customers (rather than serving less than 3,000,000 retail customers but more than 500,000 retail customers). Provides that an electric utility that has a tariff approved within one year of the amendatory Act shall also offer at least one market-based, time-of-use rate for eligible retail customers that choose to take power and energy supply service from the utility. Sets forth provisions regarding the Illinois Commerce Commission's powers and duties related to residential time-of-use pricing. Provides that the Illinois Power Agency shall conduct capacity procurement events to procure a target portion of capacity towards the Planning Reserve Margin Requirement for all Load Serving Entities serving customers within the Applicable Local Resource Zone and a target portion of capacity towards the PJM Region Reliability Requirement for Load Serving Entities serving customers within the Applicable Locational Deliverability Area. Provides that each capacity procurement event may include the procurement of capacity through a mix of contracts with different terms and different initial delivery dates. Sets forth the requirements of prepared capacity procurement plans. Requires each alternative electric supplier to make payment to an applicable electric utility for capacity, receive transfers of capacity credits, report capacity credits procured on its behalf to the applicable regional transmission organization, and submit the capacity credits to the applicable regional transmission organization under that regional transmission organization's rules and procedures. Makes other changes. LRB103 31416 LNS 59082 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2552 Introduced 3/23/2023, by Sen. David Koehler SYNOPSIS AS INTRODUCED: See Index See Index Amends the Illinois Power Agency Act. Authorizes the Illinois Power Agency to develop capacity procurement plans and conduct competitive procurement processes for the procurement of capacity needed to ensure environmentally sustainable long-term resource adequacy across the State at the lowest cost over time. Amends the Public Utilities Act. Changes the cumulative persisting annual savings goals for electric utilities that serve less than 3,000,000 retail customers but more than 500,000 retail customers for the years of 2024 through 2030. Provides that the cumulative persisting annual savings goals beyond the year 2030 shall increase by 0.9 (rather than 0.6) percentage points per year. Changes the requirements for submitting proposed plans and funding levels to meet savings goals for an electric utility serving more than 500,000 retail customers (rather than serving less than 3,000,000 retail customers but more than 500,000 retail customers). Provides that an electric utility that has a tariff approved within one year of the amendatory Act shall also offer at least one market-based, time-of-use rate for eligible retail customers that choose to take power and energy supply service from the utility. Sets forth provisions regarding the Illinois Commerce Commission's powers and duties related to residential time-of-use pricing. Provides that the Illinois Power Agency shall conduct capacity procurement events to procure a target portion of capacity towards the Planning Reserve Margin Requirement for all Load Serving Entities serving customers within the Applicable Local Resource Zone and a target portion of capacity towards the PJM Region Reliability Requirement for Load Serving Entities serving customers within the Applicable Locational Deliverability Area. Provides that each capacity procurement event may include the procurement of capacity through a mix of contracts with different terms and different initial delivery dates. Sets forth the requirements of prepared capacity procurement plans. Requires each alternative electric supplier to make payment to an applicable electric utility for capacity, receive transfers of capacity credits, report capacity credits procured on its behalf to the applicable regional transmission organization, and submit the capacity credits to the applicable regional transmission organization under that regional transmission organization's rules and procedures. Makes other changes. LRB103 31416 LNS 59082 b LRB103 31416 LNS 59082 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2552 Introduced 3/23/2023, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Amends the Illinois Power Agency Act. Authorizes the Illinois Power Agency to develop capacity procurement plans and conduct competitive procurement processes for the procurement of capacity needed to ensure environmentally sustainable long-term resource adequacy across the State at the lowest cost over time. Amends the Public Utilities Act. Changes the cumulative persisting annual savings goals for electric utilities that serve less than 3,000,000 retail customers but more than 500,000 retail customers for the years of 2024 through 2030. Provides that the cumulative persisting annual savings goals beyond the year 2030 shall increase by 0.9 (rather than 0.6) percentage points per year. Changes the requirements for submitting proposed plans and funding levels to meet savings goals for an electric utility serving more than 500,000 retail customers (rather than serving less than 3,000,000 retail customers but more than 500,000 retail customers). Provides that an electric utility that has a tariff approved within one year of the amendatory Act shall also offer at least one market-based, time-of-use rate for eligible retail customers that choose to take power and energy supply service from the utility. Sets forth provisions regarding the Illinois Commerce Commission's powers and duties related to residential time-of-use pricing. Provides that the Illinois Power Agency shall conduct capacity procurement events to procure a target portion of capacity towards the Planning Reserve Margin Requirement for all Load Serving Entities serving customers within the Applicable Local Resource Zone and a target portion of capacity towards the PJM Region Reliability Requirement for Load Serving Entities serving customers within the Applicable Locational Deliverability Area. Provides that each capacity procurement event may include the procurement of capacity through a mix of contracts with different terms and different initial delivery dates. Sets forth the requirements of prepared capacity procurement plans. Requires each alternative electric supplier to make payment to an applicable electric utility for capacity, receive transfers of capacity credits, report capacity credits procured on its behalf to the applicable regional transmission organization, and submit the capacity credits to the applicable regional transmission organization under that regional transmission organization's rules and procedures. Makes other changes.
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8	8	A BILL FOR
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10	10	SB2552 LRB103 31416 LNS 59082 b
11	11	1 AN ACT concerning regulation.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Power Agency Act is amended by
15	15	5 changing Section 1-20 as follows:
16	16	6 (20 ILCS 3855/1-20)
17	17	7 Sec. 1-20. General powers and duties of the Agency.
18	18	8 (a) The Agency is authorized to do each of the following:
19	19	9 (1) Develop electricity procurement plans to ensure
20	20	10 adequate, reliable, affordable, efficient, and
21	21	11 environmentally sustainable electric service at the lowest
22	22	12 total cost over time, taking into account any benefits of
23	23	13 price stability, for electric utilities that on December
24	24	14 31, 2005 provided electric service to at least 100,000
25	25	15 customers in Illinois and for small multi-jurisdictional
26	26	16 electric utilities that (A) on December 31, 2005 served
27	27	17 less than 100,000 customers in Illinois and (B) request a
28	28	18 procurement plan for their Illinois jurisdictional load.
29	29	19 Except as provided in paragraph (1.5) of this subsection
30	30	20 (a), the electricity procurement plans shall be updated on
31	31	21 an annual basis and shall include electricity generated
32	32	22 from renewable resources sufficient to achieve the
33	33	23 standards specified in this Act. Beginning with the
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2552 Introduced 3/23/2023, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
38	38	See Index See Index
39	39	See Index
40	40	Amends the Illinois Power Agency Act. Authorizes the Illinois Power Agency to develop capacity procurement plans and conduct competitive procurement processes for the procurement of capacity needed to ensure environmentally sustainable long-term resource adequacy across the State at the lowest cost over time. Amends the Public Utilities Act. Changes the cumulative persisting annual savings goals for electric utilities that serve less than 3,000,000 retail customers but more than 500,000 retail customers for the years of 2024 through 2030. Provides that the cumulative persisting annual savings goals beyond the year 2030 shall increase by 0.9 (rather than 0.6) percentage points per year. Changes the requirements for submitting proposed plans and funding levels to meet savings goals for an electric utility serving more than 500,000 retail customers (rather than serving less than 3,000,000 retail customers but more than 500,000 retail customers). Provides that an electric utility that has a tariff approved within one year of the amendatory Act shall also offer at least one market-based, time-of-use rate for eligible retail customers that choose to take power and energy supply service from the utility. Sets forth provisions regarding the Illinois Commerce Commission's powers and duties related to residential time-of-use pricing. Provides that the Illinois Power Agency shall conduct capacity procurement events to procure a target portion of capacity towards the Planning Reserve Margin Requirement for all Load Serving Entities serving customers within the Applicable Local Resource Zone and a target portion of capacity towards the PJM Region Reliability Requirement for Load Serving Entities serving customers within the Applicable Locational Deliverability Area. Provides that each capacity procurement event may include the procurement of capacity through a mix of contracts with different terms and different initial delivery dates. Sets forth the requirements of prepared capacity procurement plans. Requires each alternative electric supplier to make payment to an applicable electric utility for capacity, receive transfers of capacity credits, report capacity credits procured on its behalf to the applicable regional transmission organization, and submit the capacity credits to the applicable regional transmission organization under that regional transmission organization's rules and procedures. Makes other changes.
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43	43	A BILL FOR
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49	49	See Index
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68	68	1 delivery year commencing June 1, 2017, develop procurement
69	69	2 plans to include zero emission credits generated from zero
70	70	3 emission facilities sufficient to achieve the standards
71	71	4 specified in this Act. Beginning with the delivery year
72	72	5 commencing on June 1, 2022, the Agency is authorized to
73	73	6 develop carbon mitigation credit procurement plans to
74	74	7 include carbon mitigation credits generated from
75	75	8 carbon-free energy resources sufficient to achieve the
76	76	9 standards specified in this Act.
77	77	10 (1.5) Develop a long-term renewable resources
78	78	11 procurement plan in accordance with subsection (c) of
79	79	12 Section 1-75 of this Act for renewable energy credits in
80	80	13 amounts sufficient to achieve the standards specified in
81	81	14 this Act for delivery years commencing June 1, 2017 and
82	82	15 for the programs and renewable energy credits specified in
83	83	16 Section 1-56 of this Act. Electricity procurement plans
84	84	17 for delivery years commencing after May 31, 2017, shall
85	85	18 not include procurement of renewable energy resources.
86	86	19 (2) Conduct competitive procurement processes to
87	87	20 procure the supply resources identified in the electricity
88	88	21 procurement plan, pursuant to Section 16-111.5 of the
89	89	22 Public Utilities Act, and, for the delivery year
90	90	23 commencing June 1, 2017, conduct procurement processes to
91	91	24 procure zero emission credits from zero emission
92	92	25 facilities, under subsection (d-5) of Section 1-75 of this
93	93	26 Act. For the delivery year commencing June 1, 2022, the
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104	104	1 Agency is authorized to conduct procurement processes to
105	105	2 procure carbon mitigation credits from carbon-free energy
106	106	3 resources, under subsection (d-10) of Section 1-75 of this
107	107	4 Act.
108	108	5 (2.5) Beginning with the procurement for the 2017
109	109	6 delivery year, conduct competitive procurement processes
110	110	7 and implement programs to procure renewable energy credits
111	111	8 identified in the long-term renewable resources
112	112	9 procurement plan developed and approved under subsection
113	113	10 (c) of Section 1-75 of this Act and Section 16-111.5 of the
114	114	11 Public Utilities Act.
115	115	12 (2.10) Oversee the procurement by electric utilities
116	116	13 that served more than 300,000 customers in this State as
117	117	14 of January 1, 2019 of renewable energy credits from new
118	118	15 renewable energy facilities to be installed, along with
119	119	16 energy storage facilities, at or adjacent to the sites of
120	120	17 electric generating facilities that burned coal as their
121	121	18 primary fuel source as of January 1, 2016 in accordance
122	122	19 with subsection (c-5) of Section 1-75 of this Act.
123	123	20 (2.15) Beginning with the procurement for the delivery
124	124	21 year commencing June 1, 2025, develop capacity procurement
125	125	22 plans and conduct competitive procurement processes for
126	126	23 the procurement of capacity needed to ensure
127	127	24 environmentally sustainable long-term resource adequacy
128	128	25 across the State, for both distribution utilities and
129	129	26 alternative retail electric suppliers, at the lowest cost
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140	140	1 over time, while taking into account the benefits of price
141	141	2 stability and the need to ensure the reliability,
142	142	3 adequacy, and resilience of the bulk power generation and
143	143	4 delivery system, as well as the health and safety of State
144	144	5 residents, and the urgent need to address climate change.
145	145	6 (3) Develop electric generation and co-generation
146	146	7 facilities that use indigenous coal or renewable
147	147	8 resources, or both, financed with bonds issued by the
148	148	9 Illinois Finance Authority.
149	149	10 (4) Supply electricity from the Agency's facilities at
150	150	11 cost to one or more of the following: municipal electric
151	151	12 systems, governmental aggregators, or rural electric
152	152	13 cooperatives in Illinois.
153	153	14 (b) Except as otherwise limited by this Act, the Agency
154	154	15 has all of the powers necessary or convenient to carry out the
155	155	16 purposes and provisions of this Act, including without
156	156	17 limitation, each of the following:
157	157	18 (1) To have a corporate seal, and to alter that seal at
158	158	19 pleasure, and to use it by causing it or a facsimile to be
159	159	20 affixed or impressed or reproduced in any other manner.
160	160	21 (2) To use the services of the Illinois Finance
161	161	22 Authority necessary to carry out the Agency's purposes.
162	162	23 (3) To negotiate and enter into loan agreements and
163	163	24 other agreements with the Illinois Finance Authority.
164	164	25 (4) To obtain and employ personnel and hire
165	165	26 consultants that are necessary to fulfill the Agency's
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176	176	1 purposes, and to make expenditures for that purpose within
177	177	2 the appropriations for that purpose.
178	178	3 (5) To purchase, receive, take by grant, gift, devise,
179	179	4 bequest, or otherwise, lease, or otherwise acquire, own,
180	180	5 hold, improve, employ, use, and otherwise deal in and
181	181	6 with, real or personal property whether tangible or
182	182	7 intangible, or any interest therein, within the State.
183	183	8 (6) To acquire real or personal property, whether
184	184	9 tangible or intangible, including without limitation
185	185	10 property rights, interests in property, franchises,
186	186	11 obligations, contracts, and debt and equity securities,
187	187	12 and to do so by the exercise of the power of eminent domain
188	188	13 in accordance with Section 1-21; except that any real
189	189	14 property acquired by the exercise of the power of eminent
190	190	15 domain must be located within the State.
191	191	16 (7) To sell, convey, lease, exchange, transfer,
192	192	17 abandon, or otherwise dispose of, or mortgage, pledge, or
193	193	18 create a security interest in, any of its assets,
194	194	19 properties, or any interest therein, wherever situated.
195	195	20 (8) To purchase, take, receive, subscribe for, or
196	196	21 otherwise acquire, hold, make a tender offer for, vote,
197	197	22 employ, sell, lend, lease, exchange, transfer, or
198	198	23 otherwise dispose of, mortgage, pledge, or grant a
199	199	24 security interest in, use, and otherwise deal in and with,
200	200	25 bonds and other obligations, shares, or other securities
201	201	26 (or interests therein) issued by others, whether engaged
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212	212	1 in a similar or different business or activity.
213	213	2 (9) To make and execute agreements, contracts, and
214	214	3 other instruments necessary or convenient in the exercise
215	215	4 of the powers and functions of the Agency under this Act,
216	216	5 including contracts with any person, including personal
217	217	6 service contracts, or with any local government, State
218	218	7 agency, or other entity; and all State agencies and all
219	219	8 local governments are authorized to enter into and do all
220	220	9 things necessary to perform any such agreement, contract,
221	221	10 or other instrument with the Agency. No such agreement,
222	222	11 contract, or other instrument shall exceed 40 years.
223	223	12 (10) To lend money, invest and reinvest its funds in
224	224	13 accordance with the Public Funds Investment Act, and take
225	225	14 and hold real and personal property as security for the
226	226	15 payment of funds loaned or invested.
227	227	16 (11) To borrow money at such rate or rates of interest
228	228	17 as the Agency may determine, issue its notes, bonds, or
229	229	18 other obligations to evidence that indebtedness, and
230	230	19 secure any of its obligations by mortgage or pledge of its
231	231	20 real or personal property, machinery, equipment,
232	232	21 structures, fixtures, inventories, revenues, grants, and
233	233	22 other funds as provided or any interest therein, wherever
234	234	23 situated.
235	235	24 (12) To enter into agreements with the Illinois
236	236	25 Finance Authority to issue bonds whether or not the income
237	237	26 therefrom is exempt from federal taxation.
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248	248	1 (13) To procure insurance against any loss in
249	249	2 connection with its properties or operations in such
250	250	3 amount or amounts and from such insurers, including the
251	251	4 federal government, as it may deem necessary or desirable,
252	252	5 and to pay any premiums therefor.
253	253	6 (14) To negotiate and enter into agreements with
254	254	7 trustees or receivers appointed by United States
255	255	8 bankruptcy courts or federal district courts or in other
256	256	9 proceedings involving adjustment of debts and authorize
257	257	10 proceedings involving adjustment of debts and authorize
258	258	11 legal counsel for the Agency to appear in any such
259	259	12 proceedings.
260	260	13 (15) To file a petition under Chapter 9 of Title 11 of
261	261	14 the United States Bankruptcy Code or take other similar
262	262	15 action for the adjustment of its debts.
263	263	16 (16) To enter into management agreements for the
264	264	17 operation of any of the property or facilities owned by
265	265	18 the Agency.
266	266	19 (17) To enter into an agreement to transfer and to
267	267	20 transfer any land, facilities, fixtures, or equipment of
268	268	21 the Agency to one or more municipal electric systems,
269	269	22 governmental aggregators, or rural electric agencies or
270	270	23 cooperatives, for such consideration and upon such terms
271	271	24 as the Agency may determine to be in the best interest of
272	272	25 the residents of Illinois.
273	273	26 (18) To enter upon any lands and within any building
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284	284	1 whenever in its judgment it may be necessary for the
285	285	2 purpose of making surveys and examinations to accomplish
286	286	3 any purpose authorized by this Act.
287	287	4 (19) To maintain an office or offices at such place or
288	288	5 places in the State as it may determine.
289	289	6 (20) To request information, and to make any inquiry,
290	290	7 investigation, survey, or study that the Agency may deem
291	291	8 necessary to enable it effectively to carry out the
292	292	9 provisions of this Act.
293	293	10 (21) To accept and expend appropriations.
294	294	11 (22) To engage in any activity or operation that is
295	295	12 incidental to and in furtherance of efficient operation to
296	296	13 accomplish the Agency's purposes, including hiring
297	297	14 employees that the Director deems essential for the
298	298	15 operations of the Agency.
299	299	16 (23) To adopt, revise, amend, and repeal rules with
300	300	17 respect to its operations, properties, and facilities as
301	301	18 may be necessary or convenient to carry out the purposes
302	302	19 of this Act, subject to the provisions of the Illinois
303	303	20 Administrative Procedure Act and Sections 1-22 and 1-35 of
304	304	21 this Act.
305	305	22 (24) To establish and collect charges and fees as
306	306	23 described in this Act.
307	307	24 (25) To conduct competitive gasification feedstock
308	308	25 procurement processes to procure the feedstocks for the
309	309	26 clean coal SNG brownfield facility in accordance with the
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320	320	1 requirements of Section 1-78 of this Act.
321	321	2 (26) To review, revise, and approve sourcing
322	322	3 agreements and mediate and resolve disputes between gas
323	323	4 utilities and the clean coal SNG brownfield facility
324	324	5 pursuant to subsection (h-1) of Section 9-220 of the
325	325	6 Public Utilities Act.
326	326	7 (27) To request, review and accept proposals, execute
327	327	8 contracts, purchase renewable energy credits and otherwise
328	328	9 dedicate funds from the Illinois Power Agency Renewable
329	329	10 Energy Resources Fund to create and carry out the
330	330	11 objectives of the Illinois Solar for All Program in
331	331	12 accordance with Section 1-56 of this Act.
332	332	13 (28) To ensure Illinois residents and business benefit
333	333	14 from programs administered by the Agency and are properly
334	334	15 protected from any deceptive or misleading marketing
335	335	16 practices by participants in the Agency's programs and
336	336	17 procurements.
337	337	18 (c) In conducting the procurement of electricity or other
338	338	19 products, beginning January 1, 2022, the Agency shall not
339	339	20 procure any products or services from persons or organizations
340	340	21 that are in violation of the Displaced Energy Workers Bill of
341	341	22 Rights, as provided under the Energy Community Reinvestment
342	342	23 Act at the time of the procurement event or fail to comply the
343	343	24 labor standards established in subparagraph (Q) of paragraph
344	344	25 (1) of subsection (c) of Section 1-75.
345	345	26 (Source: P.A. 102-662, eff. 9-15-21.)
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356	356	1 Section 10. The Public Utilities Act is amended by
357	357	2 changing Sections 3-105, 8-103B, 16-111.5, 16-115, and 16-115D
358	358	3 and by adding Section 16-107.8 as follows:
359	359	4 (220 ILCS 5/3-105) (from Ch. 111 2/3, par. 3-105)
360	360	5 Sec. 3-105. Public utility.
361	361	6 (a) "Public utility" means and includes, except where
362	362	7 otherwise expressly provided in this Section, every
363	363	8 corporation, company, limited liability company, association,
364	364	9 joint stock company or association, firm, partnership or
365	365	10 individual, their lessees, trustees, or receivers appointed by
366	366	11 any court whatsoever now or hereafter that owns, controls,
367	367	12 operates or manages, within this State, directly or
368	368	13 indirectly, for public use, any plant, equipment or property
369	369	14 used or to be used for or in connection with, or owns or
370	370	15 controls or seeks Commission approval to own or control any
371	371	16 franchise, license, permit or right to engage in:
372	372	17 (1) the production, storage, transmission, sale,
373	373	18 delivery or furnishing of heat, cold, power, electricity,
374	374	19 water, or light, except when used solely for
375	375	20 communications purposes;
376	376	21 (2) the disposal of sewerage; or
377	377	22 (3) the conveyance of oil or gas by pipe line.
378	378	23 (b) "Public utility" does not include, however:
379	379	24 (1) public utilities that are owned and operated by
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390	390	1 any political subdivision, public institution of higher
391	391	2 education or municipal corporation of this State, or
392	392	3 public utilities that are owned by such political
393	393	4 subdivision, public institution of higher education, or
394	394	5 municipal corporation and operated by any of its lessees
395	395	6 or operating agents;
396	396	7 (2) water companies which are purely mutual concerns,
397	397	8 having no rates or charges for services, but paying the
398	398	9 operating expenses by assessment upon the members of such
399	399	10 a company and no other person;
400	400	11 (3) electric cooperatives as defined in Section 3-119;
401	401	12 (4) the following natural gas cooperatives:
402	402	13 (A) residential natural gas cooperatives that are
403	403	14 not-for-profit corporations established for the
404	404	15 purpose of administering and operating, on a
405	405	16 cooperative basis, the furnishing of natural gas to
406	406	17 residences for the benefit of their members who are
407	407	18 residential consumers of natural gas. For entities
408	408	19 qualifying as residential natural gas cooperatives and
409	409	20 recognized by the Illinois Commerce Commission as
410	410	21 such, the State shall guarantee legally binding
411	411	22 contracts entered into by residential natural gas
412	412	23 cooperatives for the express purpose of acquiring
413	413	24 natural gas supplies for their members. The Illinois
414	414	25 Commerce Commission shall establish rules and
415	415	26 regulations providing for such guarantees. The total
416	416
417	417
418	418
419	419
420	420
421	421	SB2552 - 11 - LRB103 31416 LNS 59082 b
422	422
423	423
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425	425	SB2552 - 12 - LRB103 31416 LNS 59082 b
426	426	1 liability of the State in providing all such
427	427	2 guarantees shall not at any time exceed $1,000,000,
428	428	3 nor shall the State provide such a guarantee to a
429	429	4 residential natural gas cooperative for more than 3
430	430	5 consecutive years; and
431	431	6 (B) natural gas cooperatives that are
432	432	7 not-for-profit corporations operated for the purpose
433	433	8 of administering, on a cooperative basis, the
434	434	9 furnishing of natural gas for the benefit of their
435	435	10 members and that, prior to 90 days after the effective
436	436	11 date of this amendatory Act of the 94th General
437	437	12 Assembly, either had acquired or had entered into an
438	438	13 asset purchase agreement to acquire all or
439	439	14 substantially all of the operating assets of a public
440	440	15 utility or natural gas cooperative with the intention
441	441	16 of operating those assets as a natural gas
442	442	17 cooperative;
443	443	18 (5) sewage disposal companies which provide sewage
444	444	19 disposal services on a mutual basis without establishing
445	445	20 rates or charges for services, but paying the operating
446	446	21 expenses by assessment upon the members of the company and
447	447	22 no others;
448	448	23 (6) (blank);
449	449	24 (7) cogeneration facilities, small power production
450	450	25 facilities, and other qualifying facilities, as defined in
451	451	26 the Public Utility Regulatory Policies Act and regulations
452	452
453	453
454	454
455	455
456	456
457	457	SB2552 - 12 - LRB103 31416 LNS 59082 b
458	458
459	459
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461	461	SB2552 - 13 - LRB103 31416 LNS 59082 b
462	462	1 promulgated thereunder, except to the extent State
463	463	2 regulatory jurisdiction and action is required or
464	464	3 authorized by federal law, regulations, regulatory
465	465	4 decisions or the decisions of federal or State courts of
466	466	5 competent jurisdiction;
467	467	6 (8) the ownership or operation of a facility that
468	468	7 sells compressed natural gas at retail to the public for
469	469	8 use only as a motor vehicle fuel and the selling of
470	470	9 compressed natural gas at retail to the public for use
471	471	10 only as a motor vehicle fuel;
472	472	11 (9) alternative retail electric suppliers as defined
473	473	12 in Article XVI; and
474	474	13 (10) the Illinois Power Agency.
475	475	14 (c) An entity that furnishes the service of charging
476	476	15 electric vehicles does not and shall not be deemed to sell
477	477	16 electricity and is not and shall not be deemed a public utility
478	478	17 notwithstanding the basis on which the service is provided or
479	479	18 billed. If, however, the entity is otherwise deemed a public
480	480	19 utility under this Act, or is otherwise subject to regulation
481	481	20 under this Act, then that entity is not exempt from and remains
482	482	21 subject to the otherwise applicable provisions of this Act.
483	483	22 The installation, maintenance, and repair of an electric
484	484	23 vehicle charging station shall comply with the requirements of
485	485	24 subsection (a) of Section 16-128 and Section 16-128A of this
486	486	25 Act.
487	487	26 For purposes of this subsection, the term "electric
488	488
489	489
490	490
491	491
492	492
493	493	SB2552 - 13 - LRB103 31416 LNS 59082 b
494	494
495	495
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497	497	SB2552 - 14 - LRB103 31416 LNS 59082 b
498	498	1 vehicles" has the meaning ascribed to that term in Section 10
499	499	2 of the Electric Vehicle Act.
500	500	3 (Source: P.A. 97-1128, eff. 8-28-12.)
501	501	4 (220 ILCS 5/8-103B)
502	502	5 Sec. 8-103B. Energy efficiency and demand-response
503	503	6 measures.
504	504	7 (a) It is the policy of the State that electric utilities
505	505	8 are required to use cost-effective energy efficiency and
506	506	9 demand-response measures to reduce delivery load. Requiring
507	507	10 investment in cost-effective energy efficiency and
508	508	11 demand-response measures will reduce direct and indirect costs
509	509	12 to consumers by decreasing environmental impacts and by
510	510	13 avoiding or delaying the need for new generation,
511	511	14 transmission, and distribution infrastructure. It serves the
512	512	15 public interest to allow electric utilities to recover costs
513	513	16 for reasonably and prudently incurred expenditures for energy
514	514	17 efficiency and demand-response measures. As used in this
515	515	18 Section, "cost-effective" means that the measures satisfy the
516	516	19 total resource cost test. The low-income measures described in
517	517	20 subsection (c) of this Section shall not be required to meet
518	518	21 the total resource cost test. For purposes of this Section,
519	519	22 the terms "energy-efficiency", "demand-response", "electric
520	520	23 utility", and "total resource cost test" have the meanings set
521	521	24 forth in the Illinois Power Agency Act. "Black, indigenous,
522	522	25 and people of color" and "BIPOC" means people who are members
523	523
524	524
525	525
526	526
527	527
528	528	SB2552 - 14 - LRB103 31416 LNS 59082 b
529	529
530	530
531	531	SB2552- 15 -LRB103 31416 LNS 59082 b SB2552 - 15 - LRB103 31416 LNS 59082 b
532	532	SB2552 - 15 - LRB103 31416 LNS 59082 b
533	533	1 of the groups described in subparagraphs (a) through (e) of
534	534	2 paragraph (A) of subsection (1) of Section 2 of the Business
535	535	3 Enterprise for Minorities, Women, and Persons with
536	536	4 Disabilities Act.
537	537	5 (a-5) This Section applies to electric utilities serving
538	538	6 more than 500,000 retail customers in the State for those
539	539	7 multi-year plans commencing after December 31, 2017.
540	540	8 (b) For purposes of this Section, electric utilities
541	541	9 subject to this Section that serve more than 3,000,000 retail
542	542	10 customers in the State shall be deemed to have achieved a
543	543	11 cumulative persisting annual savings of 6.6% from energy
544	544	12 efficiency measures and programs implemented during the period
545	545	13 beginning January 1, 2012 and ending December 31, 2017, which
546	546	14 percent is based on the deemed average weather normalized
547	547	15 sales of electric power and energy during calendar years 2014,
548	548	16 2015, and 2016 of 88,000,000 MWhs. For the purposes of this
549	549	17 subsection (b) and subsection (b-5), the 88,000,000 MWhs of
550	550	18 deemed electric power and energy sales shall be reduced by the
551	551	19 number of MWhs equal to the sum of the annual consumption of
552	552	20 customers that have opted out of subsections (a) through (j)
553	553	21 of this Section under paragraph (1) of subsection (l) of this
554	554	22 Section, as averaged across the calendar years 2014, 2015, and
555	555	23 2016. After 2017, the deemed value of cumulative persisting
556	556	24 annual savings from energy efficiency measures and programs
557	557	25 implemented during the period beginning January 1, 2012 and
558	558	26 ending December 31, 2017, shall be reduced each year, as
559	559
560	560
561	561
562	562
563	563
564	564	SB2552 - 15 - LRB103 31416 LNS 59082 b
565	565
566	566
567	567	SB2552- 16 -LRB103 31416 LNS 59082 b SB2552 - 16 - LRB103 31416 LNS 59082 b
568	568	SB2552 - 16 - LRB103 31416 LNS 59082 b
569	569	1 follows, and the applicable value shall be applied to and
570	570	2 count toward the utility's achievement of the cumulative
571	571	3 persisting annual savings goals set forth in subsection (b-5):
572	572	4 (1) 5.8% deemed cumulative persisting annual savings
573	573	5 for the year ending December 31, 2018;
574	574	6 (2) 5.2% deemed cumulative persisting annual savings
575	575	7 for the year ending December 31, 2019;
576	576	8 (3) 4.5% deemed cumulative persisting annual savings
577	577	9 for the year ending December 31, 2020;
578	578	10 (4) 4.0% deemed cumulative persisting annual savings
579	579	11 for the year ending December 31, 2021;
580	580	12 (5) 3.5% deemed cumulative persisting annual savings
581	581	13 for the year ending December 31, 2022;
582	582	14 (6) 3.1% deemed cumulative persisting annual savings
583	583	15 for the year ending December 31, 2023;
584	584	16 (7) 2.8% deemed cumulative persisting annual savings
585	585	17 for the year ending December 31, 2024;
586	586	18 (8) 2.5% deemed cumulative persisting annual savings
587	587	19 for the year ending December 31, 2025;
588	588	20 (9) 2.3% deemed cumulative persisting annual savings
589	589	21 for the year ending December 31, 2026;
590	590	22 (10) 2.1% deemed cumulative persisting annual savings
591	591	23 for the year ending December 31, 2027;
592	592	24 (11) 1.8% deemed cumulative persisting annual savings
593	593	25 for the year ending December 31, 2028;
594	594	26 (12) 1.7% deemed cumulative persisting annual savings
595	595
596	596
597	597
598	598
599	599
600	600	SB2552 - 16 - LRB103 31416 LNS 59082 b
601	601
602	602
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604	604	SB2552 - 17 - LRB103 31416 LNS 59082 b
605	605	1 for the year ending December 31, 2029;
606	606	2 (13) 1.5% deemed cumulative persisting annual savings
607	607	3 for the year ending December 31, 2030;
608	608	4 (14) 1.3% deemed cumulative persisting annual savings
609	609	5 for the year ending December 31, 2031;
610	610	6 (15) 1.1% deemed cumulative persisting annual savings
611	611	7 for the year ending December 31, 2032;
612	612	8 (16) 0.9% deemed cumulative persisting annual savings
613	613	9 for the year ending December 31, 2033;
614	614	10 (17) 0.7% deemed cumulative persisting annual savings
615	615	11 for the year ending December 31, 2034;
616	616	12 (18) 0.5% deemed cumulative persisting annual savings
617	617	13 for the year ending December 31, 2035;
618	618	14 (19) 0.4% deemed cumulative persisting annual savings
619	619	15 for the year ending December 31, 2036;
620	620	16 (20) 0.3% deemed cumulative persisting annual savings
621	621	17 for the year ending December 31, 2037;
622	622	18 (21) 0.2% deemed cumulative persisting annual savings
623	623	19 for the year ending December 31, 2038;
624	624	20 (22) 0.1% deemed cumulative persisting annual savings
625	625	21 for the year ending December 31, 2039; and
626	626	22 (23) 0.0% deemed cumulative persisting annual savings
627	627	23 for the year ending December 31, 2040 and all subsequent
628	628	24 years.
629	629	25 For purposes of this Section, "cumulative persisting
630	630	26 annual savings" means the total electric energy savings in a
631	631
632	632
633	633
634	634
635	635
636	636	SB2552 - 17 - LRB103 31416 LNS 59082 b
637	637
638	638
639	639	SB2552- 18 -LRB103 31416 LNS 59082 b SB2552 - 18 - LRB103 31416 LNS 59082 b
640	640	SB2552 - 18 - LRB103 31416 LNS 59082 b
641	641	1 given year from measures installed in that year or in previous
642	642	2 years, but no earlier than January 1, 2012, that are still
643	643	3 operational and providing savings in that year because the
644	644	4 measures have not yet reached the end of their useful lives.
645	645	5 (b-5) Beginning in 2018, electric utilities subject to
646	646	6 this Section that serve more than 3,000,000 retail customers
647	647	7 in the State shall achieve the following cumulative persisting
648	648	8 annual savings goals, as modified by subsection (f) of this
649	649	9 Section and as compared to the deemed baseline of 88,000,000
650	650	10 MWhs of electric power and energy sales set forth in
651	651	11 subsection (b), as reduced by the number of MWhs equal to the
652	652	12 sum of the annual consumption of customers that have opted out
653	653	13 of subsections (a) through (j) of this Section under paragraph
654	654	14 (1) of subsection (l) of this Section as averaged across the
655	655	15 calendar years 2014, 2015, and 2016, through the
656	656	16 implementation of energy efficiency measures during the
657	657	17 applicable year and in prior years, but no earlier than
658	658	18 January 1, 2012:
659	659	19 (1) 7.8% cumulative persisting annual savings for the
660	660	20 year ending December 31, 2018;
661	661	21 (2) 9.1% cumulative persisting annual savings for the
662	662	22 year ending December 31, 2019;
663	663	23 (3) 10.4% cumulative persisting annual savings for the
664	664	24 year ending December 31, 2020;
665	665	25 (4) 11.8% cumulative persisting annual savings for the
666	666	26 year ending December 31, 2021;
667	667
668	668
669	669
670	670
671	671
672	672	SB2552 - 18 - LRB103 31416 LNS 59082 b
673	673
674	674
675	675	SB2552- 19 -LRB103 31416 LNS 59082 b SB2552 - 19 - LRB103 31416 LNS 59082 b
676	676	SB2552 - 19 - LRB103 31416 LNS 59082 b
677	677	1 (5) 13.1% cumulative persisting annual savings for the
678	678	2 year ending December 31, 2022;
679	679	3 (6) 14.4% cumulative persisting annual savings for the
680	680	4 year ending December 31, 2023;
681	681	5 (7) 15.7% cumulative persisting annual savings for the
682	682	6 year ending December 31, 2024;
683	683	7 (8) 17% cumulative persisting annual savings for the
684	684	8 year ending December 31, 2025;
685	685	9 (9) 17.9% cumulative persisting annual savings for the
686	686	10 year ending December 31, 2026;
687	687	11 (10) 18.8% cumulative persisting annual savings for
688	688	12 the year ending December 31, 2027;
689	689	13 (11) 19.7% cumulative persisting annual savings for
690	690	14 the year ending December 31, 2028;
691	691	15 (12) 20.6% cumulative persisting annual savings for
692	692	16 the year ending December 31, 2029; and
693	693	17 (13) 21.5% cumulative persisting annual savings for
694	694	18 the year ending December 31, 2030.
695	695	19 No later than December 31, 2021, the Illinois Commerce
696	696	20 Commission shall establish additional cumulative persisting
697	697	21 annual savings goals for the years 2031 through 2035. No later
698	698	22 than December 31, 2024, the Illinois Commerce Commission shall
699	699	23 establish additional cumulative persisting annual savings
700	700	24 goals for the years 2036 through 2040. The Commission shall
701	701	25 also establish additional cumulative persisting annual savings
702	702	26 goals every 5 years thereafter to ensure that utilities always
703	703
704	704
705	705
706	706
707	707
708	708	SB2552 - 19 - LRB103 31416 LNS 59082 b
709	709
710	710
711	711	SB2552- 20 -LRB103 31416 LNS 59082 b SB2552 - 20 - LRB103 31416 LNS 59082 b
712	712	SB2552 - 20 - LRB103 31416 LNS 59082 b
713	713	1 have goals that extend at least 11 years into the future. The
714	714	2 cumulative persisting annual savings goals beyond the year
715	715	3 2030 shall increase by 0.9 percentage points per year, absent
716	716	4 a Commission decision to initiate a proceeding to consider
717	717	5 establishing goals that increase by more or less than that
718	718	6 amount. Such a proceeding must be conducted in accordance with
719	719	7 the procedures described in subsection (f) of this Section. If
720	720	8 such a proceeding is initiated, the cumulative persisting
721	721	9 annual savings goals established by the Commission through
722	722	10 that proceeding shall reflect the Commission's best estimate
723	723	11 of the maximum amount of additional savings that are forecast
724	724	12 to be cost-effectively achievable unless such best estimates
725	725	13 would result in goals that represent less than 0.5 percentage
726	726	14 point annual increases in total cumulative persisting annual
727	727	15 savings. The Commission may only establish goals that
728	728	16 represent less than 0.5 percentage point annual increases in
729	729	17 cumulative persisting annual savings if it can demonstrate,
730	730	18 based on clear and convincing evidence and through independent
731	731	19 analysis, that 0.5 percentage point increases are not
732	732	20 cost-effectively achievable. The Commission shall inform its
733	733	21 decision based on an energy efficiency potential study that
734	734	22 conforms to the requirements of this Section.
735	735	23 (b-10) For purposes of this Section, electric utilities
736	736	24 subject to this Section that serve less than 3,000,000 retail
737	737	25 customers but more than 500,000 retail customers in the State
738	738	26 shall be deemed to have achieved a cumulative persisting
739	739
740	740
741	741
742	742
743	743
744	744	SB2552 - 20 - LRB103 31416 LNS 59082 b
745	745
746	746
747	747	SB2552- 21 -LRB103 31416 LNS 59082 b SB2552 - 21 - LRB103 31416 LNS 59082 b
748	748	SB2552 - 21 - LRB103 31416 LNS 59082 b
749	749	1 annual savings of 6.6% from energy efficiency measures and
750	750	2 programs implemented during the period beginning January 1,
751	751	3 2012 and ending December 31, 2017, which is based on the deemed
752	752	4 average weather normalized sales of electric power and energy
753	753	5 during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs.
754	754	6 For the purposes of this subsection (b-10) and subsection
755	755	7 (b-15), the 36,900,000 MWhs of deemed electric power and
756	756	8 energy sales shall be reduced by the number of MWhs equal to
757	757	9 the sum of the annual consumption of customers that have opted
758	758	10 out of subsections (a) through (j) of this Section under
759	759	11 paragraph (1) of subsection (l) of this Section, as averaged
760	760	12 across the calendar years 2014, 2015, and 2016. After 2017,
761	761	13 the deemed value of cumulative persisting annual savings from
762	762	14 energy efficiency measures and programs implemented during the
763	763	15 period beginning January 1, 2012 and ending December 31, 2017,
764	764	16 shall be reduced each year, as follows, and the applicable
765	765	17 value shall be applied to and count toward the utility's
766	766	18 achievement of the cumulative persisting annual savings goals
767	767	19 set forth in subsection (b-15):
768	768	20 (1) 5.8% deemed cumulative persisting annual savings
769	769	21 for the year ending December 31, 2018;
770	770	22 (2) 5.2% deemed cumulative persisting annual savings
771	771	23 for the year ending December 31, 2019;
772	772	24 (3) 4.5% deemed cumulative persisting annual savings
773	773	25 for the year ending December 31, 2020;
774	774	26 (4) 4.0% deemed cumulative persisting annual savings
775	775
776	776
777	777
778	778
779	779
780	780	SB2552 - 21 - LRB103 31416 LNS 59082 b
781	781
782	782
783	783	SB2552- 22 -LRB103 31416 LNS 59082 b SB2552 - 22 - LRB103 31416 LNS 59082 b
784	784	SB2552 - 22 - LRB103 31416 LNS 59082 b
785	785	1 for the year ending December 31, 2021;
786	786	2 (5) 3.5% deemed cumulative persisting annual savings
787	787	3 for the year ending December 31, 2022;
788	788	4 (6) 3.1% deemed cumulative persisting annual savings
789	789	5 for the year ending December 31, 2023;
790	790	6 (7) 2.8% deemed cumulative persisting annual savings
791	791	7 for the year ending December 31, 2024;
792	792	8 (8) 2.5% deemed cumulative persisting annual savings
793	793	9 for the year ending December 31, 2025;
794	794	10 (9) 2.3% deemed cumulative persisting annual savings
795	795	11 for the year ending December 31, 2026;
796	796	12 (10) 2.1% deemed cumulative persisting annual savings
797	797	13 for the year ending December 31, 2027;
798	798	14 (11) 1.8% deemed cumulative persisting annual savings
799	799	15 for the year ending December 31, 2028;
800	800	16 (12) 1.7% deemed cumulative persisting annual savings
801	801	17 for the year ending December 31, 2029;
802	802	18 (13) 1.5% deemed cumulative persisting annual savings
803	803	19 for the year ending December 31, 2030;
804	804	20 (14) 1.3% deemed cumulative persisting annual savings
805	805	21 for the year ending December 31, 2031;
806	806	22 (15) 1.1% deemed cumulative persisting annual savings
807	807	23 for the year ending December 31, 2032;
808	808	24 (16) 0.9% deemed cumulative persisting annual savings
809	809	25 for the year ending December 31, 2033;
810	810	26 (17) 0.7% deemed cumulative persisting annual savings
811	811
812	812
813	813
814	814
815	815
816	816	SB2552 - 22 - LRB103 31416 LNS 59082 b
817	817
818	818
819	819	SB2552- 23 -LRB103 31416 LNS 59082 b SB2552 - 23 - LRB103 31416 LNS 59082 b
820	820	SB2552 - 23 - LRB103 31416 LNS 59082 b
821	821	1 for the year ending December 31, 2034;
822	822	2 (18) 0.5% deemed cumulative persisting annual savings
823	823	3 for the year ending December 31, 2035;
824	824	4 (19) 0.4% deemed cumulative persisting annual savings
825	825	5 for the year ending December 31, 2036;
826	826	6 (20) 0.3% deemed cumulative persisting annual savings
827	827	7 for the year ending December 31, 2037;
828	828	8 (21) 0.2% deemed cumulative persisting annual savings
829	829	9 for the year ending December 31, 2038;
830	830	10 (22) 0.1% deemed cumulative persisting annual savings
831	831	11 for the year ending December 31, 2039; and
832	832	12 (23) 0.0% deemed cumulative persisting annual savings
833	833	13 for the year ending December 31, 2040 and all subsequent
834	834	14 years.
835	835	15 (b-15) Beginning in 2018, electric utilities subject to
836	836	16 this Section that serve less than 3,000,000 retail customers
837	837	17 but more than 500,000 retail customers in the State shall
838	838	18 achieve the following cumulative persisting annual savings
839	839	19 goals, as modified by subsection (b-20) and subsection (f) of
840	840	20 this Section and as compared to the deemed baseline as reduced
841	841	21 by the number of MWhs equal to the sum of the annual
842	842	22 consumption of customers that have opted out of subsections
843	843	23 (a) through (j) of this Section under paragraph (1) of
844	844	24 subsection (l) of this Section as averaged across the calendar
845	845	25 years 2014, 2015, and 2016, through the implementation of
846	846	26 energy efficiency measures during the applicable year and in
847	847
848	848
849	849
850	850
851	851
852	852	SB2552 - 23 - LRB103 31416 LNS 59082 b
853	853
854	854
855	855	SB2552- 24 -LRB103 31416 LNS 59082 b SB2552 - 24 - LRB103 31416 LNS 59082 b
856	856	SB2552 - 24 - LRB103 31416 LNS 59082 b
857	857	1 prior years, but no earlier than January 1, 2012:
858	858	2 (1) 7.4% cumulative persisting annual savings for the
859	859	3 year ending December 31, 2018;
860	860	4 (2) 8.2% cumulative persisting annual savings for the
861	861	5 year ending December 31, 2019;
862	862	6 (3) 9.0% cumulative persisting annual savings for the
863	863	7 year ending December 31, 2020;
864	864	8 (4) 9.8% cumulative persisting annual savings for the
865	865	9 year ending December 31, 2021;
866	866	10 (5) 10.6% cumulative persisting annual savings for the
867	867	11 year ending December 31, 2022;
868	868	12 (6) 11.4% cumulative persisting annual savings for the
869	869	13 year ending December 31, 2023;
870	870	14 (7) 12.8% 12.2% cumulative persisting annual savings
871	871	15 for the year ending December 31, 2024;
872	872	16 (8) 14.3% 13% cumulative persisting annual savings for
873	873	17 the year ending December 31, 2025;
874	874	18 (9) 15.7% 13.6% cumulative persisting annual savings
875	875	19 for the year ending December 31, 2026;
876	876	20 (10) 17.2% 14.2% cumulative persisting annual savings
877	877	21 for the year ending December 31, 2027;
878	878	22 (11) 18.6% 14.8% cumulative persisting annual savings
879	879	23 for the year ending December 31, 2028;
880	880	24 (12) 20.1% 15.4% cumulative persisting annual savings
881	881	25 for the year ending December 31, 2029; and
882	882	26 (13) 21.5% 16% cumulative persisting annual savings
883	883
884	884
885	885
886	886
887	887
888	888	SB2552 - 24 - LRB103 31416 LNS 59082 b
889	889
890	890
891	891	SB2552- 25 -LRB103 31416 LNS 59082 b SB2552 - 25 - LRB103 31416 LNS 59082 b
892	892	SB2552 - 25 - LRB103 31416 LNS 59082 b
893	893	1 for the year ending December 31, 2030.
894	894	2 No later than December 31, 2021, the Illinois Commerce
895	895	3 Commission shall establish additional cumulative persisting
896	896	4 annual savings goals for the years 2031 through 2035. No later
897	897	5 than December 31, 2024, the Illinois Commerce Commission shall
898	898	6 establish additional cumulative persisting annual savings
899	899	7 goals for the years 2036 through 2040. The Commission shall
900	900	8 also establish additional cumulative persisting annual savings
901	901	9 goals every 5 years thereafter to ensure that utilities always
902	902	10 have goals that extend at least 11 years into the future. The
903	903	11 cumulative persisting annual savings goals beyond the year
904	904	12 2030 shall increase by 0.9 0.6 percentage points per year,
905	905	13 absent a Commission decision to initiate a proceeding to
906	906	14 consider establishing goals that increase by more or less than
907	907	15 that amount. Such a proceeding must be conducted in accordance
908	908	16 with the procedures described in subsection (f) of this
909	909	17 Section. If such a proceeding is initiated, the cumulative
910	910	18 persisting annual savings goals established by the Commission
911	911	19 through that proceeding shall reflect the Commission's best
912	912	20 estimate of the maximum amount of additional savings that are
913	913	21 forecast to be cost-effectively achievable unless such best
914	914	22 estimates would result in goals that represent less than 0.5
915	915	23 0.4 percentage point annual increases in total cumulative
916	916	24 persisting annual savings. The Commission may only establish
917	917	25 goals that represent less than 0.5 0.4 percentage point annual
918	918	26 increases in cumulative persisting annual savings if it can
919	919
920	920
921	921
922	922
923	923
924	924	SB2552 - 25 - LRB103 31416 LNS 59082 b
925	925
926	926
927	927	SB2552- 26 -LRB103 31416 LNS 59082 b SB2552 - 26 - LRB103 31416 LNS 59082 b
928	928	SB2552 - 26 - LRB103 31416 LNS 59082 b
929	929	1 demonstrate, based on clear and convincing evidence and
930	930	2 through independent analysis, that 0.5 0.4 percentage point
931	931	3 increases are not cost-effectively achievable. The Commission
932	932	4 shall inform its decision based on an energy efficiency
933	933	5 potential study that conforms to the requirements of this
934	934	6 Section.
935	935	7 (b-20) Each electric utility subject to this Section may
936	936	8 include cost-effective voltage optimization measures in its
937	937	9 plans submitted under subsections (f) and (g) of this Section,
938	938	10 and the costs incurred by a utility to implement the measures
939	939	11 under a Commission-approved plan shall be recovered under the
940	940	12 provisions of Article IX or Section 16-108.5 of this Act. For
941	941	13 purposes of this Section, the measure life of voltage
942	942	14 optimization measures shall be 15 years. The measure life
943	943	15 period is independent of the depreciation rate of the voltage
944	944	16 optimization assets deployed. Utilities may claim savings from
945	945	17 voltage optimization on circuits for more than 15 years if
946	946	18 they can demonstrate that they have made additional
947	947	19 investments necessary to enable voltage optimization savings
948	948	20 to continue beyond 15 years. Such demonstrations must be
949	949	21 subject to the review of independent evaluation.
950	950	22 Within 270 days after June 1, 2017 (the effective date of
951	951	23 Public Act 99-906), an electric utility that serves less than
952	952	24 3,000,000 retail customers but more than 500,000 retail
953	953	25 customers in the State shall file a plan with the Commission
954	954	26 that identifies the cost-effective voltage optimization
955	955
956	956
957	957
958	958
959	959
960	960	SB2552 - 26 - LRB103 31416 LNS 59082 b
961	961
962	962
963	963	SB2552- 27 -LRB103 31416 LNS 59082 b SB2552 - 27 - LRB103 31416 LNS 59082 b
964	964	SB2552 - 27 - LRB103 31416 LNS 59082 b
965	965	1 investment the electric utility plans to undertake through
966	966	2 December 31, 2024. The Commission, after notice and hearing,
967	967	3 shall approve or approve with modification the plan within 120
968	968	4 days after the plan's filing and, in the order approving or
969	969	5 approving with modification the plan, the Commission shall
970	970	6 adjust the applicable cumulative persisting annual savings
971	971	7 goals set forth in subsection (b-15) to reflect any amount of
972	972	8 cost-effective energy savings approved by the Commission that
973	973	9 is greater than or less than the following cumulative
974	974	10 persisting annual savings values attributable to voltage
975	975	11 optimization for the applicable year:
976	976	12 (1) 0.0% of cumulative persisting annual savings for
977	977	13 the year ending December 31, 2018;
978	978	14 (2) 0.17% of cumulative persisting annual savings for
979	979	15 the year ending December 31, 2019;
980	980	16 (3) 0.17% of cumulative persisting annual savings for
981	981	17 the year ending December 31, 2020;
982	982	18 (4) 0.33% of cumulative persisting annual savings for
983	983	19 the year ending December 31, 2021;
984	984	20 (5) 0.5% of cumulative persisting annual savings for
985	985	21 the year ending December 31, 2022;
986	986	22 (6) 0.67% of cumulative persisting annual savings for
987	987	23 the year ending December 31, 2023;
988	988	24 (7) 0.83% of cumulative persisting annual savings for
989	989	25 the year ending December 31, 2024; and
990	990	26 (8) 1.0% of cumulative persisting annual savings for
991	991
992	992
993	993
994	994
995	995
996	996	SB2552 - 27 - LRB103 31416 LNS 59082 b
997	997
998	998
999	999	SB2552- 28 -LRB103 31416 LNS 59082 b SB2552 - 28 - LRB103 31416 LNS 59082 b
1000	1000	SB2552 - 28 - LRB103 31416 LNS 59082 b
1001	1001	1 the year ending December 31, 2025 and all subsequent
1002	1002	2 years.
1003	1003	3 (b-25) In the event an electric utility jointly offers an
1004	1004	4 energy efficiency measure or program with a gas utility under
1005	1005	5 plans approved under this Section and Section 8-104 of this
1006	1006	6 Act, the electric utility may continue offering the program,
1007	1007	7 including the gas energy efficiency measures, in the event the
1008	1008	8 gas utility discontinues funding the program. In that event,
1009	1009	9 the energy savings value associated with such other fuels
1010	1010	10 shall be converted to electric energy savings on an equivalent
1011	1011	11 Btu basis for the premises. However, the electric utility
1012	1012	12 shall prioritize programs for low-income residential customers
1013	1013	13 to the extent practicable. An electric utility may recover the
1014	1014	14 costs of offering the gas energy efficiency measures under
1015	1015	15 this subsection (b-25).
1016	1016	16 For those energy efficiency measures or programs that save
1017	1017	17 both electricity and other fuels but are not jointly offered
1018	1018	18 with a gas utility under plans approved under this Section and
1019	1019	19 Section 8-104 or not offered with an affiliated gas utility
1020	1020	20 under paragraph (6) of subsection (f) of Section 8-104 of this
1021	1021	21 Act, the electric utility may count savings of fuels other
1022	1022	22 than electricity toward the achievement of its annual savings
1023	1023	23 goal, and the energy savings value associated with such other
1024	1024	24 fuels shall be converted to electric energy savings on an
1025	1025	25 equivalent Btu basis at the premises.
1026	1026	26 In no event shall more than 10% of each year's applicable
1027	1027
1028	1028
1029	1029
1030	1030
1031	1031
1032	1032	SB2552 - 28 - LRB103 31416 LNS 59082 b
1033	1033
1034	1034
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1036	1036	SB2552 - 29 - LRB103 31416 LNS 59082 b
1037	1037	1 annual total savings requirement as defined in paragraph (7.5)
1038	1038	2 of subsection (g) of this Section be met through savings of
1039	1039	3 fuels other than electricity.
1040	1040	4 (b-27) Beginning in 2022, an electric utility may offer
1041	1041	5 and promote measures that electrify space heating, water
1042	1042	6 heating, cooling, drying, cooking, industrial processes, and
1043	1043	7 other building and industrial end uses that would otherwise be
1044	1044	8 served by combustion of fossil fuel at the premises, provided
1045	1045	9 that the electrification measures reduce total energy
1046	1046	10 consumption at the premises. The electric utility may count
1047	1047	11 the reduction in energy consumption at the premises toward
1048	1048	12 achievement of its annual savings goals. The reduction in
1049	1049	13 energy consumption at the premises shall be calculated as the
1050	1050	14 difference between: (A) the reduction in Btu consumption of
1051	1051	15 fossil fuels as a result of electrification, converted to
1052	1052	16 kilowatt-hour equivalents by dividing by 3,412 Btus Btu's per
1053	1053	17 kilowatt hour; and (B) the increase in kilowatt hours of
1054	1054	18 electricity consumption resulting from the displacement of
1055	1055	19 fossil fuel consumption as a result of electrification. An
1056	1056	20 electric utility may recover the costs of offering and
1057	1057	21 promoting electrification measures under this subsection
1058	1058	22 (b-27).
1059	1059	23 In no event shall electrification savings counted toward
1060	1060	24 each year's applicable annual total savings requirement, as
1061	1061	25 defined in paragraph (7.5) of subsection (g) of this Section,
1062	1062	26 be greater than:
1063	1063
1064	1064
1065	1065
1066	1066
1067	1067
1068	1068	SB2552 - 29 - LRB103 31416 LNS 59082 b
1069	1069
1070	1070
1071	1071	SB2552- 30 -LRB103 31416 LNS 59082 b SB2552 - 30 - LRB103 31416 LNS 59082 b
1072	1072	SB2552 - 30 - LRB103 31416 LNS 59082 b
1073	1073	1 (1) 5% per year for each year from 2022 through 2025;
1074	1074	2 (2) 10% per year for each year from 2026 through 2029;
1075	1075	3 and
1076	1076	4 (3) 15% per year for 2030 and all subsequent years.
1077	1077	5 In addition, a minimum of 25% of all electrification savings
1078	1078	6 counted toward a utility's applicable annual total savings
1079	1079	7 requirement must be from electrification of end uses in
1080	1080	8 low-income housing. The limitations on electrification savings
1081	1081	9 that may be counted toward a utility's annual savings goals
1082	1082	10 are separate from and in addition to the subsection (b-25)
1083	1083	11 limitations governing the counting of the other fuel savings
1084	1084	12 resulting from efficiency measures and programs.
1085	1085	13 As part of the annual informational filing to the
1086	1086	14 Commission that is required under paragraph (9) of subsection
1087	1087	15 (g) of this Section, each utility shall identify the specific
1088	1088	16 electrification measures offered under this subsection
1089	1089	17 subjection (b-27); the quantity of each electrification
1090	1090	18 measure that was installed by its customers; the average total
1091	1091	19 cost, average utility cost, average reduction in fossil fuel
1092	1092	20 consumption, and average increase in electricity consumption
1093	1093	21 associated with each electrification measure; the portion of
1094	1094	22 installations of each electrification measure that were in
1095	1095	23 low-income single-family housing, low-income multifamily
1096	1096	24 housing, non-low-income single-family housing, non-low-income
1097	1097	25 multifamily housing, commercial buildings, and industrial
1098	1098	26 facilities; and the quantity of savings associated with each
1099	1099
1100	1100
1101	1101
1102	1102
1103	1103
1104	1104	SB2552 - 30 - LRB103 31416 LNS 59082 b
1105	1105
1106	1106
1107	1107	SB2552- 31 -LRB103 31416 LNS 59082 b SB2552 - 31 - LRB103 31416 LNS 59082 b
1108	1108	SB2552 - 31 - LRB103 31416 LNS 59082 b
1109	1109	1 measure category in each customer category that are being
1110	1110	2 counted toward the utility's applicable annual total savings
1111	1111	3 requirement. Prior to installing an electrification measure,
1112	1112	4 the utility shall provide a customer with an estimate of the
1113	1113	5 impact of the new measure on the customer's average monthly
1114	1114	6 electric bill and total annual energy expenses.
1115	1115	7 (c) Electric utilities shall be responsible for overseeing
1116	1116	8 the design, development, and filing of energy efficiency plans
1117	1117	9 with the Commission and may, as part of that implementation,
1118	1118	10 outsource various aspects of program development and
1119	1119	11 implementation. A minimum of 10%, for electric utilities that
1120	1120	12 serve more than 3,000,000 retail customers in the State, and a
1121	1121	13 minimum of 7%, for electric utilities that serve less than
1122	1122	14 3,000,000 retail customers but more than 500,000 retail
1123	1123	15 customers in the State, of the utility's entire portfolio
1124	1124	16 funding level for a given year shall be used to procure
1125	1125	17 cost-effective energy efficiency measures from units of local
1126	1126	18 government, municipal corporations, school districts, public
1127	1127	19 housing, and community college districts, provided that a
1128	1128	20 minimum percentage of available funds shall be used to procure
1129	1129	21 energy efficiency from public housing, which percentage shall
1130	1130	22 be equal to public housing's share of public building energy
1131	1131	23 consumption.
1132	1132	24 The utilities shall also implement energy efficiency
1133	1133	25 measures targeted at low-income households, which, for
1134	1134	26 purposes of this Section, shall be defined as households at or
1135	1135
1136	1136
1137	1137
1138	1138
1139	1139
1140	1140	SB2552 - 31 - LRB103 31416 LNS 59082 b
1141	1141
1142	1142
1143	1143	SB2552- 32 -LRB103 31416 LNS 59082 b SB2552 - 32 - LRB103 31416 LNS 59082 b
1144	1144	SB2552 - 32 - LRB103 31416 LNS 59082 b
1145	1145	1 below 80% of area median income, and expenditures to implement
1146	1146	2 the measures shall be no less than $40,000,000 per year for
1147	1147	3 electric utilities that serve more than 3,000,000 retail
1148	1148	4 customers in the State and no less than $13,000,000 per year
1149	1149	5 for electric utilities that serve less than 3,000,000 retail
1150	1150	6 customers but more than 500,000 retail customers in the State.
1151	1151	7 The ratio of spending on efficiency programs targeted at
1152	1152	8 low-income multifamily buildings to spending on efficiency
1153	1153	9 programs targeted at low-income single-family buildings shall
1154	1154	10 be designed to achieve levels of savings from each building
1155	1155	11 type that are approximately proportional to the magnitude of
1156	1156	12 cost-effective lifetime savings potential in each building
1157	1157	13 type. Investment in low-income whole-building weatherization
1158	1158	14 programs shall constitute a minimum of 80% of a utility's
1159	1159	15 total budget specifically dedicated to serving low-income
1160	1160	16 customers.
1161	1161	17 The utilities shall work to bundle low-income energy
1162	1162	18 efficiency offerings with other programs that serve low-income
1163	1163	19 households to maximize the benefits going to these households.
1164	1164	20 The utilities shall market and implement low-income energy
1165	1165	21 efficiency programs in coordination with low-income assistance
1166	1166	22 programs, the Illinois Solar for All Program, and
1167	1167	23 weatherization whenever practicable. The program implementer
1168	1168	24 shall walk the customer through the enrollment process for any
1169	1169	25 programs for which the customer is eligible. The utilities
1170	1170	26 shall also pilot targeting customers with high arrearages,
1171	1171
1172	1172
1173	1173
1174	1174
1175	1175
1176	1176	SB2552 - 32 - LRB103 31416 LNS 59082 b
1177	1177
1178	1178
1179	1179	SB2552- 33 -LRB103 31416 LNS 59082 b SB2552 - 33 - LRB103 31416 LNS 59082 b
1180	1180	SB2552 - 33 - LRB103 31416 LNS 59082 b
1181	1181	1 high energy intensity (ratio of energy usage divided by home
1182	1182	2 or unit square footage), or energy assistance programs with
1183	1183	3 energy efficiency offerings, and then track reduction in
1184	1184	4 arrearages as a result of the targeting. This targeting and
1185	1185	5 bundling of low-income energy programs shall be offered to
1186	1186	6 both low-income single-family and multifamily customers
1187	1187	7 (owners and residents).
1188	1188	8 The utilities shall invest in health and safety measures
1189	1189	9 appropriate and necessary for comprehensively weatherizing a
1190	1190	10 home or multifamily building, and shall implement a health and
1191	1191	11 safety fund of at least 15% of the total income-qualified
1192	1192	12 weatherization budget that shall be used for the purpose of
1193	1193	13 making grants for technical assistance, construction,
1194	1194	14 reconstruction, improvement, or repair of buildings to
1195	1195	15 facilitate their participation in the energy efficiency
1196	1196	16 programs targeted at low-income single-family and multifamily
1197	1197	17 households. These funds may also be used for the purpose of
1198	1198	18 making grants for technical assistance, construction,
1199	1199	19 reconstruction, improvement, or repair of the following
1200	1200	20 buildings to facilitate their participation in the energy
1201	1201	21 efficiency programs created by this Section: (1) buildings
1202	1202	22 that are owned or operated by registered 501(c)(3) public
1203	1203	23 charities; and (2) day care centers, day care homes, or group
1204	1204	24 day care homes, as defined under 89 Ill. Adm. Code Part 406,
1205	1205	25 407, or 408, respectively.
1206	1206	26 Each electric utility shall assess opportunities to
1207	1207
1208	1208
1209	1209
1210	1210
1211	1211
1212	1212	SB2552 - 33 - LRB103 31416 LNS 59082 b
1213	1213
1214	1214
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1216	1216	SB2552 - 34 - LRB103 31416 LNS 59082 b
1217	1217	1 implement cost-effective energy efficiency measures and
1218	1218	2 programs through a public housing authority or authorities
1219	1219	3 located in its service territory. If such opportunities are
1220	1220	4 identified, the utility shall propose such measures and
1221	1221	5 programs to address the opportunities. Expenditures to address
1222	1222	6 such opportunities shall be credited toward the minimum
1223	1223	7 procurement and expenditure requirements set forth in this
1224	1224	8 subsection (c).
1225	1225	9 Implementation of energy efficiency measures and programs
1226	1226	10 targeted at low-income households should be contracted, when
1227	1227	11 it is practicable, to independent third parties that have
1228	1228	12 demonstrated capabilities to serve such households, with a
1229	1229	13 preference for not-for-profit entities and government agencies
1230	1230	14 that have existing relationships with or experience serving
1231	1231	15 low-income communities in the State.
1232	1232	16 Each electric utility shall develop and implement
1233	1233	17 reporting procedures that address and assist in determining
1234	1234	18 the amount of energy savings that can be applied to the
1235	1235	19 low-income procurement and expenditure requirements set forth
1236	1236	20 in this subsection (c). Each electric utility shall also track
1237	1237	21 the types and quantities or volumes of insulation and air
1238	1238	22 sealing materials, and their associated energy saving
1239	1239	23 benefits, installed in energy efficiency programs targeted at
1240	1240	24 low-income single-family and multifamily households.
1241	1241	25 The electric utilities shall participate in a low-income
1242	1242	26 energy efficiency accountability committee ("the committee"),
1243	1243
1244	1244
1245	1245
1246	1246
1247	1247
1248	1248	SB2552 - 34 - LRB103 31416 LNS 59082 b
1249	1249
1250	1250
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1252	1252	SB2552 - 35 - LRB103 31416 LNS 59082 b
1253	1253	1 which will directly inform the design, implementation, and
1254	1254	2 evaluation of the low-income and public-housing energy
1255	1255	3 efficiency programs. The committee shall be comprised of the
1256	1256	4 electric utilities subject to the requirements of this
1257	1257	5 Section, the gas utilities subject to the requirements of
1258	1258	6 Section 8-104 of this Act, the utilities' low-income energy
1259	1259	7 efficiency implementation contractors, nonprofit
1260	1260	8 organizations, community action agencies, advocacy groups,
1261	1261	9 State and local governmental agencies, public-housing
1262	1262	10 organizations, and representatives of community-based
1263	1263	11 organizations, especially those living in or working with
1264	1264	12 environmental justice communities and BIPOC communities. The
1265	1265	13 committee shall be composed of 2 geographically differentiated
1266	1266	14 subcommittees: one for stakeholders in northern Illinois and
1267	1267	15 one for stakeholders in central and southern Illinois. The
1268	1268	16 subcommittees shall meet together at least twice per year.
1269	1269	17 There shall be one statewide leadership committee led by
1270	1270	18 and composed of community-based organizations that are
1271	1271	19 representative of BIPOC and environmental justice communities
1272	1272	20 and that includes equitable representation from BIPOC
1273	1273	21 communities. The leadership committee shall be composed of an
1274	1274	22 equal number of representatives from the 2 subcommittees. The
1275	1275	23 subcommittees shall address specific programs and issues, with
1276	1276	24 the leadership committee convening targeted workgroups as
1277	1277	25 needed. The leadership committee may elect to work with an
1278	1278	26 independent facilitator to solicit and organize feedback,
1279	1279
1280	1280
1281	1281
1282	1282
1283	1283
1284	1284	SB2552 - 35 - LRB103 31416 LNS 59082 b
1285	1285
1286	1286
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1288	1288	SB2552 - 36 - LRB103 31416 LNS 59082 b
1289	1289	1 recommendations and meeting participation from a wide variety
1290	1290	2 of community-based stakeholders. If a facilitator is used,
1291	1291	3 they shall be fair and responsive to the needs of all
1292	1292	4 stakeholders involved in the committee.
1293	1293	5 All committee meetings must be accessible, with rotating
1294	1294	6 locations if meetings are held in-person, virtual
1295	1295	7 participation options, and materials and agendas circulated in
1296	1296	8 advance.
1297	1297	9 There shall also be opportunities for direct input by
1298	1298	10 committee members outside of committee meetings, such as via
1299	1299	11 individual meetings, surveys, emails and calls, to ensure
1300	1300	12 robust participation by stakeholders with limited capacity and
1301	1301	13 ability to attend committee meetings. Committee meetings shall
1302	1302	14 emphasize opportunities to bundle and coordinate delivery of
1303	1303	15 low-income energy efficiency with other programs that serve
1304	1304	16 low-income communities, such as the Illinois Solar for All
1305	1305	17 Program and bill payment assistance programs. Meetings shall
1306	1306	18 include educational opportunities for stakeholders to learn
1307	1307	19 more about these additional offerings, and the committee shall
1308	1308	20 assist in figuring out the best methods for coordinated
1309	1309	21 delivery and implementation of offerings when serving
1310	1310	22 low-income communities. The committee shall directly and
1311	1311	23 equitably influence and inform utility low-income and
1312	1312	24 public-housing energy efficiency programs and priorities.
1313	1313	25 Participating utilities shall implement recommendations from
1314	1314	26 the committee whenever possible.
1315	1315
1316	1316
1317	1317
1318	1318
1319	1319
1320	1320	SB2552 - 36 - LRB103 31416 LNS 59082 b
1321	1321
1322	1322
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1324	1324	SB2552 - 37 - LRB103 31416 LNS 59082 b
1325	1325	1 Participating utilities shall track and report how input
1326	1326	2 from the committee has led to new approaches and changes in
1327	1327	3 their energy efficiency portfolios. This reporting shall occur
1328	1328	4 at committee meetings and in quarterly energy efficiency
1329	1329	5 reports to the Stakeholder Advisory Group and Illinois
1330	1330	6 Commerce Commission, and other relevant reporting mechanisms.
1331	1331	7 Participating utilities shall also report on relevant equity
1332	1332	8 data and metrics requested by the committee, such as energy
1333	1333	9 burden data, geographic, racial, and other relevant
1334	1334	10 demographic data on where programs are being delivered and
1335	1335	11 what populations programs are serving.
1336	1336	12 The Illinois Commerce Commission shall oversee and have
1337	1337	13 relevant staff participate in the committee. The committee
1338	1338	14 shall have a budget of 0.25% of each utility's entire
1339	1339	15 efficiency portfolio funding for a given year. The budget
1340	1340	16 shall be overseen by the Commission. The budget shall be used
1341	1341	17 to provide grants for community-based organizations serving on
1342	1342	18 the leadership committee, stipends for community-based
1343	1343	19 organizations participating in the committee, grants for
1344	1344	20 community-based organizations to do energy efficiency outreach
1345	1345	21 and education, and relevant meeting needs as determined by the
1346	1346	22 leadership committee. The education and outreach shall
1347	1347	23 include, but is not limited to, basic energy efficiency
1348	1348	24 education, information about low-income energy efficiency
1349	1349	25 programs, and information on the committee's purpose,
1350	1350	26 structure, and activities.
1351	1351
1352	1352
1353	1353
1354	1354
1355	1355
1356	1356	SB2552 - 37 - LRB103 31416 LNS 59082 b
1357	1357
1358	1358
1359	1359	SB2552- 38 -LRB103 31416 LNS 59082 b SB2552 - 38 - LRB103 31416 LNS 59082 b
1360	1360	SB2552 - 38 - LRB103 31416 LNS 59082 b
1361	1361	1 (d) Notwithstanding any other provision of law to the
1362	1362	2 contrary, a utility providing approved energy efficiency
1363	1363	3 measures and, if applicable, demand-response measures in the
1364	1364	4 State shall be permitted to recover all reasonable and
1365	1365	5 prudently incurred costs of those measures from all retail
1366	1366	6 customers, except as provided in subsection (l) of this
1367	1367	7 Section, as follows, provided that nothing in this subsection
1368	1368	8 (d) permits the double recovery of such costs from customers:
1369	1369	9 (1) The utility may recover its costs through an
1370	1370	10 automatic adjustment clause tariff filed with and approved
1371	1371	11 by the Commission. The tariff shall be established outside
1372	1372	12 the context of a general rate case. Each year the
1373	1373	13 Commission shall initiate a review to reconcile any
1374	1374	14 amounts collected with the actual costs and to determine
1375	1375	15 the required adjustment to the annual tariff factor to
1376	1376	16 match annual expenditures. To enable the financing of the
1377	1377	17 incremental capital expenditures, including regulatory
1378	1378	18 assets, for electric utilities that serve less than
1379	1379	19 3,000,000 retail customers but more than 500,000 retail
1380	1380	20 customers in the State, the utility's actual year-end
1381	1381	21 capital structure that includes a common equity ratio,
1382	1382	22 excluding goodwill, of up to and including 50% of the
1383	1383	23 total capital structure shall be deemed reasonable and
1384	1384	24 used to set rates.
1385	1385	25 (2) A utility may recover its costs through an energy
1386	1386	26 efficiency formula rate approved by the Commission under a
1387	1387
1388	1388
1389	1389
1390	1390
1391	1391
1392	1392	SB2552 - 38 - LRB103 31416 LNS 59082 b
1393	1393
1394	1394
1395	1395	SB2552- 39 -LRB103 31416 LNS 59082 b SB2552 - 39 - LRB103 31416 LNS 59082 b
1396	1396	SB2552 - 39 - LRB103 31416 LNS 59082 b
1397	1397	1 filing under subsections (f) and (g) of this Section,
1398	1398	2 which shall specify the cost components that form the
1399	1399	3 basis of the rate charged to customers with sufficient
1400	1400	4 specificity to operate in a standardized manner and be
1401	1401	5 updated annually with transparent information that
1402	1402	6 reflects the utility's actual costs to be recovered during
1403	1403	7 the applicable rate year, which is the period beginning
1404	1404	8 with the first billing day of January and extending
1405	1405	9 through the last billing day of the following December.
1406	1406	10 The energy efficiency formula rate shall be implemented
1407	1407	11 through a tariff filed with the Commission under
1408	1408	12 subsections (f) and (g) of this Section that is consistent
1409	1409	13 with the provisions of this paragraph (2) and that shall
1410	1410	14 be applicable to all delivery services customers. The
1411	1411	15 Commission shall conduct an investigation of the tariff in
1412	1412	16 a manner consistent with the provisions of this paragraph
1413	1413	17 (2), subsections (f) and (g) of this Section, and the
1414	1414	18 provisions of Article IX of this Act to the extent they do
1415	1415	19 not conflict with this paragraph (2). The energy
1416	1416	20 efficiency formula rate approved by the Commission shall
1417	1417	21 remain in effect at the discretion of the utility and
1418	1418	22 shall do the following:
1419	1419	23 (A) Provide for the recovery of the utility's
1420	1420	24 actual costs incurred under this Section that are
1421	1421	25 prudently incurred and reasonable in amount consistent
1422	1422	26 with Commission practice and law. The sole fact that a
1423	1423
1424	1424
1425	1425
1426	1426
1427	1427
1428	1428	SB2552 - 39 - LRB103 31416 LNS 59082 b
1429	1429
1430	1430
1431	1431	SB2552- 40 -LRB103 31416 LNS 59082 b SB2552 - 40 - LRB103 31416 LNS 59082 b
1432	1432	SB2552 - 40 - LRB103 31416 LNS 59082 b
1433	1433	1 cost differs from that incurred in a prior calendar
1434	1434	2 year or that an investment is different from that made
1435	1435	3 in a prior calendar year shall not imply the
1436	1436	4 imprudence or unreasonableness of that cost or
1437	1437	5 investment.
1438	1438	6 (B) Reflect the utility's actual year-end capital
1439	1439	7 structure for the applicable calendar year, excluding
1440	1440	8 goodwill, subject to a determination of prudence and
1441	1441	9 reasonableness consistent with Commission practice and
1442	1442	10 law. To enable the financing of the incremental
1443	1443	11 capital expenditures, including regulatory assets, for
1444	1444	12 electric utilities that serve less than 3,000,000
1445	1445	13 retail customers but more than 500,000 retail
1446	1446	14 customers in the State, a participating electric
1447	1447	15 utility's actual year-end capital structure that
1448	1448	16 includes a common equity ratio, excluding goodwill, of
1449	1449	17 up to and including 50% of the total capital structure
1450	1450	18 shall be deemed reasonable and used to set rates.
1451	1451	19 (C) Include a cost of equity, which shall be
1452	1452	20 calculated as the sum of the following:
1453	1453	21 (i) the average for the applicable calendar
1454	1454	22 year of the monthly average yields of 30-year U.S.
1455	1455	23 Treasury bonds published by the Board of Governors
1456	1456	24 of the Federal Reserve System in its weekly H.15
1457	1457	25 Statistical Release or successor publication; and
1458	1458	26 (ii) 580 basis points.
1459	1459
1460	1460
1461	1461
1462	1462
1463	1463
1464	1464	SB2552 - 40 - LRB103 31416 LNS 59082 b
1465	1465
1466	1466
1467	1467	SB2552- 41 -LRB103 31416 LNS 59082 b SB2552 - 41 - LRB103 31416 LNS 59082 b
1468	1468	SB2552 - 41 - LRB103 31416 LNS 59082 b
1469	1469	1 At such time as the Board of Governors of the
1470	1470	2 Federal Reserve System ceases to include the monthly
1471	1471	3 average yields of 30-year U.S. Treasury bonds in its
1472	1472	4 weekly H.15 Statistical Release or successor
1473	1473	5 publication, the monthly average yields of the U.S.
1474	1474	6 Treasury bonds then having the longest duration
1475	1475	7 published by the Board of Governors in its weekly H.15
1476	1476	8 Statistical Release or successor publication shall
1477	1477	9 instead be used for purposes of this paragraph (2).
1478	1478	10 (D) Permit and set forth protocols, subject to a
1479	1479	11 determination of prudence and reasonableness
1480	1480	12 consistent with Commission practice and law, for the
1481	1481	13 following:
1482	1482	14 (i) recovery of incentive compensation expense
1483	1483	15 that is based on the achievement of operational
1484	1484	16 metrics, including metrics related to budget
1485	1485	17 controls, outage duration and frequency, safety,
1486	1486	18 customer service, efficiency and productivity, and
1487	1487	19 environmental compliance; however, this protocol
1488	1488	20 shall not apply if such expense related to costs
1489	1489	21 incurred under this Section is recovered under
1490	1490	22 Article IX or Section 16-108.5 of this Act;
1491	1491	23 incentive compensation expense that is based on
1492	1492	24 net income or an affiliate's earnings per share
1493	1493	25 shall not be recoverable under the energy
1494	1494	26 efficiency formula rate;
1495	1495
1496	1496
1497	1497
1498	1498
1499	1499
1500	1500	SB2552 - 41 - LRB103 31416 LNS 59082 b
1501	1501
1502	1502
1503	1503	SB2552- 42 -LRB103 31416 LNS 59082 b SB2552 - 42 - LRB103 31416 LNS 59082 b
1504	1504	SB2552 - 42 - LRB103 31416 LNS 59082 b
1505	1505	1 (ii) recovery of pension and other
1506	1506	2 post-employment benefits expense, provided that
1507	1507	3 such costs are supported by an actuarial study;
1508	1508	4 however, this protocol shall not apply if such
1509	1509	5 expense related to costs incurred under this
1510	1510	6 Section is recovered under Article IX or Section
1511	1511	7 16-108.5 of this Act;
1512	1512	8 (iii) recovery of existing regulatory assets
1513	1513	9 over the periods previously authorized by the
1514	1514	10 Commission;
1515	1515	11 (iv) as described in subsection (e),
1516	1516	12 amortization of costs incurred under this Section;
1517	1517	13 and
1518	1518	14 (v) projected, weather normalized billing
1519	1519	15 determinants for the applicable rate year.
1520	1520	16 (E) Provide for an annual reconciliation, as
1521	1521	17 described in paragraph (3) of this subsection (d),
1522	1522	18 less any deferred taxes related to the reconciliation,
1523	1523	19 with interest at an annual rate of return equal to the
1524	1524	20 utility's weighted average cost of capital, including
1525	1525	21 a revenue conversion factor calculated to recover or
1526	1526	22 refund all additional income taxes that may be payable
1527	1527	23 or receivable as a result of that return, of the energy
1528	1528	24 efficiency revenue requirement reflected in rates for
1529	1529	25 each calendar year, beginning with the calendar year
1530	1530	26 in which the utility files its energy efficiency
1531	1531
1532	1532
1533	1533
1534	1534
1535	1535
1536	1536	SB2552 - 42 - LRB103 31416 LNS 59082 b
1537	1537
1538	1538
1539	1539	SB2552- 43 -LRB103 31416 LNS 59082 b SB2552 - 43 - LRB103 31416 LNS 59082 b
1540	1540	SB2552 - 43 - LRB103 31416 LNS 59082 b
1541	1541	1 formula rate tariff under this paragraph (2), with
1542	1542	2 what the revenue requirement would have been had the
1543	1543	3 actual cost information for the applicable calendar
1544	1544	4 year been available at the filing date.
1545	1545	5 The utility shall file, together with its tariff, the
1546	1546	6 projected costs to be incurred by the utility during the
1547	1547	7 rate year under the utility's multi-year plan approved
1548	1548	8 under subsections (f) and (g) of this Section, including,
1549	1549	9 but not limited to, the projected capital investment costs
1550	1550	10 and projected regulatory asset balances with
1551	1551	11 correspondingly updated depreciation and amortization
1552	1552	12 reserves and expense, that shall populate the energy
1553	1553	13 efficiency formula rate and set the initial rates under
1554	1554	14 the formula.
1555	1555	15 The Commission shall review the proposed tariff in
1556	1556	16 conjunction with its review of a proposed multi-year plan,
1557	1557	17 as specified in paragraph (5) of subsection (g) of this
1558	1558	18 Section. The review shall be based on the same evidentiary
1559	1559	19 standards, including, but not limited to, those concerning
1560	1560	20 the prudence and reasonableness of the costs incurred by
1561	1561	21 the utility, the Commission applies in a hearing to review
1562	1562	22 a filing for a general increase in rates under Article IX
1563	1563	23 of this Act. The initial rates shall take effect beginning
1564	1564	24 with the January monthly billing period following the
1565	1565	25 Commission's approval.
1566	1566	26 The tariff's rate design and cost allocation across
1567	1567
1568	1568
1569	1569
1570	1570
1571	1571
1572	1572	SB2552 - 43 - LRB103 31416 LNS 59082 b
1573	1573
1574	1574
1575	1575	SB2552- 44 -LRB103 31416 LNS 59082 b SB2552 - 44 - LRB103 31416 LNS 59082 b
1576	1576	SB2552 - 44 - LRB103 31416 LNS 59082 b
1577	1577	1 customer classes shall be consistent with the utility's
1578	1578	2 automatic adjustment clause tariff in effect on June 1,
1579	1579	3 2017 (the effective date of Public Act 99-906); however,
1580	1580	4 the Commission may revise the tariff's rate design and
1581	1581	5 cost allocation in subsequent proceedings under paragraph
1582	1582	6 (3) of this subsection (d).
1583	1583	7 If the energy efficiency formula rate is terminated,
1584	1584	8 the then current rates shall remain in effect until such
1585	1585	9 time as the energy efficiency costs are incorporated into
1586	1586	10 new rates that are set under this subsection (d) or
1587	1587	11 Article IX of this Act, subject to retroactive rate
1588	1588	12 adjustment, with interest, to reconcile rates charged with
1589	1589	13 actual costs.
1590	1590	14 (3) The provisions of this paragraph (3) shall only
1591	1591	15 apply to an electric utility that has elected to file an
1592	1592	16 energy efficiency formula rate under paragraph (2) of this
1593	1593	17 subsection (d). Subsequent to the Commission's issuance of
1594	1594	18 an order approving the utility's energy efficiency formula
1595	1595	19 rate structure and protocols, and initial rates under
1596	1596	20 paragraph (2) of this subsection (d), the utility shall
1597	1597	21 file, on or before June 1 of each year, with the Chief
1598	1598	22 Clerk of the Commission its updated cost inputs to the
1599	1599	23 energy efficiency formula rate for the applicable rate
1600	1600	24 year and the corresponding new charges, as well as the
1601	1601	25 information described in paragraph (9) of subsection (g)
1602	1602	26 of this Section. Each such filing shall conform to the
1603	1603
1604	1604
1605	1605
1606	1606
1607	1607
1608	1608	SB2552 - 44 - LRB103 31416 LNS 59082 b
1609	1609
1610	1610
1611	1611	SB2552- 45 -LRB103 31416 LNS 59082 b SB2552 - 45 - LRB103 31416 LNS 59082 b
1612	1612	SB2552 - 45 - LRB103 31416 LNS 59082 b
1613	1613	1 following requirements and include the following
1614	1614	2 information:
1615	1615	3 (A) The inputs to the energy efficiency formula
1616	1616	4 rate for the applicable rate year shall be based on the
1617	1617	5 projected costs to be incurred by the utility during
1618	1618	6 the rate year under the utility's multi-year plan
1619	1619	7 approved under subsections (f) and (g) of this
1620	1620	8 Section, including, but not limited to, projected
1621	1621	9 capital investment costs and projected regulatory
1622	1622	10 asset balances with correspondingly updated
1623	1623	11 depreciation and amortization reserves and expense.
1624	1624	12 The filing shall also include a reconciliation of the
1625	1625	13 energy efficiency revenue requirement that was in
1626	1626	14 effect for the prior rate year (as set by the cost
1627	1627	15 inputs for the prior rate year) with the actual
1628	1628	16 revenue requirement for the prior rate year
1629	1629	17 (determined using a year-end rate base) that uses
1630	1630	18 amounts reflected in the applicable FERC Form 1 that
1631	1631	19 reports the actual costs for the prior rate year. Any
1632	1632	20 over-collection or under-collection indicated by such
1633	1633	21 reconciliation shall be reflected as a credit against,
1634	1634	22 or recovered as an additional charge to, respectively,
1635	1635	23 with interest calculated at a rate equal to the
1636	1636	24 utility's weighted average cost of capital approved by
1637	1637	25 the Commission for the prior rate year, the charges
1638	1638	26 for the applicable rate year. Such over-collection or
1639	1639
1640	1640
1641	1641
1642	1642
1643	1643
1644	1644	SB2552 - 45 - LRB103 31416 LNS 59082 b
1645	1645
1646	1646
1647	1647	SB2552- 46 -LRB103 31416 LNS 59082 b SB2552 - 46 - LRB103 31416 LNS 59082 b
1648	1648	SB2552 - 46 - LRB103 31416 LNS 59082 b
1649	1649	1 under-collection shall be adjusted to remove any
1650	1650	2 deferred taxes related to the reconciliation, for
1651	1651	3 purposes of calculating interest at an annual rate of
1652	1652	4 return equal to the utility's weighted average cost of
1653	1653	5 capital approved by the Commission for the prior rate
1654	1654	6 year, including a revenue conversion factor calculated
1655	1655	7 to recover or refund all additional income taxes that
1656	1656	8 may be payable or receivable as a result of that
1657	1657	9 return. Each reconciliation shall be certified by the
1658	1658	10 participating utility in the same manner that FERC
1659	1659	11 Form 1 is certified. The filing shall also include the
1660	1660	12 charge or credit, if any, resulting from the
1661	1661	13 calculation required by subparagraph (E) of paragraph
1662	1662	14 (2) of this subsection (d).
1663	1663	15 Notwithstanding any other provision of law to the
1664	1664	16 contrary, the intent of the reconciliation is to
1665	1665	17 ultimately reconcile both the revenue requirement
1666	1666	18 reflected in rates for each calendar year, beginning
1667	1667	19 with the calendar year in which the utility files its
1668	1668	20 energy efficiency formula rate tariff under paragraph
1669	1669	21 (2) of this subsection (d), with what the revenue
1670	1670	22 requirement determined using a year-end rate base for
1671	1671	23 the applicable calendar year would have been had the
1672	1672	24 actual cost information for the applicable calendar
1673	1673	25 year been available at the filing date.
1674	1674	26 For purposes of this Section, "FERC Form 1" means
1675	1675
1676	1676
1677	1677
1678	1678
1679	1679
1680	1680	SB2552 - 46 - LRB103 31416 LNS 59082 b
1681	1681
1682	1682
1683	1683	SB2552- 47 -LRB103 31416 LNS 59082 b SB2552 - 47 - LRB103 31416 LNS 59082 b
1684	1684	SB2552 - 47 - LRB103 31416 LNS 59082 b
1685	1685	1 the Annual Report of Major Electric Utilities,
1686	1686	2 Licensees and Others that electric utilities are
1687	1687	3 required to file with the Federal Energy Regulatory
1688	1688	4 Commission under the Federal Power Act, Sections 3,
1689	1689	5 4(a), 304 and 209, modified as necessary to be
1690	1690	6 consistent with 83 Ill. Adm. Admin. Code Part 415 as of
1691	1691	7 May 1, 2011. Nothing in this Section is intended to
1692	1692	8 allow costs that are not otherwise recoverable to be
1693	1693	9 recoverable by virtue of inclusion in FERC Form 1.
1694	1694	10 (B) The new charges shall take effect beginning on
1695	1695	11 the first billing day of the following January billing
1696	1696	12 period and remain in effect through the last billing
1697	1697	13 day of the next December billing period regardless of
1698	1698	14 whether the Commission enters upon a hearing under
1699	1699	15 this paragraph (3).
1700	1700	16 (C) The filing shall include relevant and
1701	1701	17 necessary data and documentation for the applicable
1702	1702	18 rate year. Normalization adjustments shall not be
1703	1703	19 required.
1704	1704	20 Within 45 days after the utility files its annual
1705	1705	21 update of cost inputs to the energy efficiency formula
1706	1706	22 rate, the Commission shall with reasonable notice,
1707	1707	23 initiate a proceeding concerning whether the projected
1708	1708	24 costs to be incurred by the utility and recovered during
1709	1709	25 the applicable rate year, and that are reflected in the
1710	1710	26 inputs to the energy efficiency formula rate, are
1711	1711
1712	1712
1713	1713
1714	1714
1715	1715
1716	1716	SB2552 - 47 - LRB103 31416 LNS 59082 b
1717	1717
1718	1718
1719	1719	SB2552- 48 -LRB103 31416 LNS 59082 b SB2552 - 48 - LRB103 31416 LNS 59082 b
1720	1720	SB2552 - 48 - LRB103 31416 LNS 59082 b
1721	1721	1 consistent with the utility's approved multi-year plan
1722	1722	2 under subsections (f) and (g) of this Section and whether
1723	1723	3 the costs incurred by the utility during the prior rate
1724	1724	4 year were prudent and reasonable. The Commission shall
1725	1725	5 also have the authority to investigate the information and
1726	1726	6 data described in paragraph (9) of subsection (g) of this
1727	1727	7 Section, including the proposed adjustment to the
1728	1728	8 utility's return on equity component of its weighted
1729	1729	9 average cost of capital. During the course of the
1730	1730	10 proceeding, each objection shall be stated with
1731	1731	11 particularity and evidence provided in support thereof,
1732	1732	12 after which the utility shall have the opportunity to
1733	1733	13 rebut the evidence. Discovery shall be allowed consistent
1734	1734	14 with the Commission's Rules of Practice, which Rules of
1735	1735	15 Practice shall be enforced by the Commission or the
1736	1736	16 assigned administrative law judge. The Commission shall
1737	1737	17 apply the same evidentiary standards, including, but not
1738	1738	18 limited to, those concerning the prudence and
1739	1739	19 reasonableness of the costs incurred by the utility,
1740	1740	20 during the proceeding as it would apply in a proceeding to
1741	1741	21 review a filing for a general increase in rates under
1742	1742	22 Article IX of this Act. The Commission shall not, however,
1743	1743	23 have the authority in a proceeding under this paragraph
1744	1744	24 (3) to consider or order any changes to the structure or
1745	1745	25 protocols of the energy efficiency formula rate approved
1746	1746	26 under paragraph (2) of this subsection (d). In a
1747	1747
1748	1748
1749	1749
1750	1750
1751	1751
1752	1752	SB2552 - 48 - LRB103 31416 LNS 59082 b
1753	1753
1754	1754
1755	1755	SB2552- 49 -LRB103 31416 LNS 59082 b SB2552 - 49 - LRB103 31416 LNS 59082 b
1756	1756	SB2552 - 49 - LRB103 31416 LNS 59082 b
1757	1757	1 proceeding under this paragraph (3), the Commission shall
1758	1758	2 enter its order no later than the earlier of 195 days after
1759	1759	3 the utility's filing of its annual update of cost inputs
1760	1760	4 to the energy efficiency formula rate or December 15. The
1761	1761	5 utility's proposed return on equity calculation, as
1762	1762	6 described in paragraphs (7) through (9) of subsection (g)
1763	1763	7 of this Section, shall be deemed the final, approved
1764	1764	8 calculation on December 15 of the year in which it is filed
1765	1765	9 unless the Commission enters an order on or before
1766	1766	10 December 15, after notice and hearing, that modifies such
1767	1767	11 calculation consistent with this Section. The Commission's
1768	1768	12 determinations of the prudence and reasonableness of the
1769	1769	13 costs incurred, and determination of such return on equity
1770	1770	14 calculation, for the applicable calendar year shall be
1771	1771	15 final upon entry of the Commission's order and shall not
1772	1772	16 be subject to reopening, reexamination, or collateral
1773	1773	17 attack in any other Commission proceeding, case, docket,
1774	1774	18 order, rule, or regulation; however, nothing in this
1775	1775	19 paragraph (3) shall prohibit a party from petitioning the
1776	1776	20 Commission to rehear or appeal to the courts the order
1777	1777	21 under the provisions of this Act.
1778	1778	22 (e) Beginning on June 1, 2017 (the effective date of
1779	1779	23 Public Act 99-906), a utility subject to the requirements of
1780	1780	24 this Section may elect to defer, as a regulatory asset, up to
1781	1781	25 the full amount of its expenditures incurred under this
1782	1782	26 Section for each annual period, including, but not limited to,
1783	1783
1784	1784
1785	1785
1786	1786
1787	1787
1788	1788	SB2552 - 49 - LRB103 31416 LNS 59082 b
1789	1789
1790	1790
1791	1791	SB2552- 50 -LRB103 31416 LNS 59082 b SB2552 - 50 - LRB103 31416 LNS 59082 b
1792	1792	SB2552 - 50 - LRB103 31416 LNS 59082 b
1793	1793	1 any expenditures incurred above the funding level set by
1794	1794	2 subsection (f) of this Section for a given year. The total
1795	1795	3 expenditures deferred as a regulatory asset in a given year
1796	1796	4 shall be amortized and recovered over a period that is equal to
1797	1797	5 the weighted average of the energy efficiency measure lives
1798	1798	6 implemented for that year that are reflected in the regulatory
1799	1799	7 asset. The unamortized balance shall be recognized as of
1800	1800	8 December 31 for a given year. The utility shall also earn a
1801	1801	9 return on the total of the unamortized balances of all of the
1802	1802	10 energy efficiency regulatory assets, less any deferred taxes
1803	1803	11 related to those unamortized balances, at an annual rate equal
1804	1804	12 to the utility's weighted average cost of capital that
1805	1805	13 includes, based on a year-end capital structure, the utility's
1806	1806	14 actual cost of debt for the applicable calendar year and a cost
1807	1807	15 of equity, which shall be calculated as the sum of the (i) the
1808	1808	16 average for the applicable calendar year of the monthly
1809	1809	17 average yields of 30-year U.S. Treasury bonds published by the
1810	1810	18 Board of Governors of the Federal Reserve System in its weekly
1811	1811	19 H.15 Statistical Release or successor publication; and (ii)
1812	1812	20 580 basis points, including a revenue conversion factor
1813	1813	21 calculated to recover or refund all additional income taxes
1814	1814	22 that may be payable or receivable as a result of that return.
1815	1815	23 Capital investment costs shall be depreciated and recovered
1816	1816	24 over their useful lives consistent with generally accepted
1817	1817	25 accounting principles. The weighted average cost of capital
1818	1818	26 shall be applied to the capital investment cost balance, less
1819	1819
1820	1820
1821	1821
1822	1822
1823	1823
1824	1824	SB2552 - 50 - LRB103 31416 LNS 59082 b
1825	1825
1826	1826
1827	1827	SB2552- 51 -LRB103 31416 LNS 59082 b SB2552 - 51 - LRB103 31416 LNS 59082 b
1828	1828	SB2552 - 51 - LRB103 31416 LNS 59082 b
1829	1829	1 any accumulated depreciation and accumulated deferred income
1830	1830	2 taxes, as of December 31 for a given year.
1831	1831	3 When an electric utility creates a regulatory asset under
1832	1832	4 the provisions of this Section, the costs are recovered over a
1833	1833	5 period during which customers also receive a benefit which is
1834	1834	6 in the public interest. Accordingly, it is the intent of the
1835	1835	7 General Assembly that an electric utility that elects to
1836	1836	8 create a regulatory asset under the provisions of this Section
1837	1837	9 shall recover all of the associated costs as set forth in this
1838	1838	10 Section. After the Commission has approved the prudence and
1839	1839	11 reasonableness of the costs that comprise the regulatory
1840	1840	12 asset, the electric utility shall be permitted to recover all
1841	1841	13 such costs, and the value and recoverability through rates of
1842	1842	14 the associated regulatory asset shall not be limited, altered,
1843	1843	15 impaired, or reduced.
1844	1844	16 (f) Beginning in 2017, each electric utility shall file an
1845	1845	17 energy efficiency plan with the Commission to meet the energy
1846	1846	18 efficiency standards for the next applicable multi-year period
1847	1847	19 beginning January 1 of the year following the filing,
1848	1848	20 according to the schedule set forth in paragraphs (1) through
1849	1849	21 (3) of this subsection (f). If a utility does not file such a
1850	1850	22 plan on or before the applicable filing deadline for the plan,
1851	1851	23 it shall face a penalty of $100,000 per day until the plan is
1852	1852	24 filed.
1853	1853	25 (1) No later than 30 days after June 1, 2017 (the
1854	1854	26 effective date of Public Act 99-906), each electric
1855	1855
1856	1856
1857	1857
1858	1858
1859	1859
1860	1860	SB2552 - 51 - LRB103 31416 LNS 59082 b
1861	1861
1862	1862
1863	1863	SB2552- 52 -LRB103 31416 LNS 59082 b SB2552 - 52 - LRB103 31416 LNS 59082 b
1864	1864	SB2552 - 52 - LRB103 31416 LNS 59082 b
1865	1865	1 utility shall file a 4-year energy efficiency plan
1866	1866	2 commencing on January 1, 2018 that is designed to achieve
1867	1867	3 the cumulative persisting annual savings goals specified
1868	1868	4 in paragraphs (1) through (4) of subsection (b-5) of this
1869	1869	5 Section or in paragraphs (1) through (4) of subsection
1870	1870	6 (b-15) of this Section, as applicable, through
1871	1871	7 implementation of energy efficiency measures; however, the
1872	1872	8 goals may be reduced if the utility's expenditures are
1873	1873	9 limited pursuant to subsection (m) of this Section or, for
1874	1874	10 a utility that serves less than 3,000,000 retail
1875	1875	11 customers, if each of the following conditions are met:
1876	1876	12 (A) the plan's analysis and forecasts of the utility's
1877	1877	13 ability to acquire energy savings demonstrate that
1878	1878	14 achievement of such goals is not cost effective; and (B)
1879	1879	15 the amount of energy savings achieved by the utility as
1880	1880	16 determined by the independent evaluator for the most
1881	1881	17 recent year for which savings have been evaluated
1882	1882	18 preceding the plan filing was less than the average annual
1883	1883	19 amount of savings required to achieve the goals for the
1884	1884	20 applicable 4-year plan period. Except as provided in
1885	1885	21 subsection (m) of this Section, annual increases in
1886	1886	22 cumulative persisting annual savings goals during the
1887	1887	23 applicable 4-year plan period shall not be reduced to
1888	1888	24 amounts that are less than the maximum amount of
1889	1889	25 cumulative persisting annual savings that is forecast to
1890	1890	26 be cost-effectively achievable during the 4-year plan
1891	1891
1892	1892
1893	1893
1894	1894
1895	1895
1896	1896	SB2552 - 52 - LRB103 31416 LNS 59082 b
1897	1897
1898	1898
1899	1899	SB2552- 53 -LRB103 31416 LNS 59082 b SB2552 - 53 - LRB103 31416 LNS 59082 b
1900	1900	SB2552 - 53 - LRB103 31416 LNS 59082 b
1901	1901	1 period. The Commission shall review any proposed goal
1902	1902	2 reduction as part of its review and approval of the
1903	1903	3 utility's proposed plan.
1904	1904	4 (2) No later than March 1, 2021, each electric utility
1905	1905	5 shall file a 4-year energy efficiency plan commencing on
1906	1906	6 January 1, 2022 that is designed to achieve the cumulative
1907	1907	7 persisting annual savings goals specified in paragraphs
1908	1908	8 (5) through (8) of subsection (b-5) of this Section or in
1909	1909	9 paragraphs (5) through (8) of subsection (b-15) of this
1910	1910	10 Section, as applicable, through implementation of energy
1911	1911	11 efficiency measures; however, the goals may be reduced if
1912	1912	12 either (1) clear and convincing evidence demonstrates,
1913	1913	13 through independent analysis, that the expenditure limits
1914	1914	14 in subsection (m) of this Section preclude full
1915	1915	15 achievement of the goals or (2) each of the following
1916	1916	16 conditions are met: (A) the plan's analysis and forecasts
1917	1917	17 of the utility's ability to acquire energy savings
1918	1918	18 demonstrate by clear and convincing evidence and through
1919	1919	19 independent analysis that achievement of such goals is not
1920	1920	20 cost effective; and (B) the amount of energy savings
1921	1921	21 achieved by the utility as determined by the independent
1922	1922	22 evaluator for the most recent year for which savings have
1923	1923	23 been evaluated preceding the plan filing was less than the
1924	1924	24 average annual amount of savings required to achieve the
1925	1925	25 goals for the applicable 4-year plan period. If there is
1926	1926	26 not clear and convincing evidence that achieving the
1927	1927
1928	1928
1929	1929
1930	1930
1931	1931
1932	1932	SB2552 - 53 - LRB103 31416 LNS 59082 b
1933	1933
1934	1934
1935	1935	SB2552- 54 -LRB103 31416 LNS 59082 b SB2552 - 54 - LRB103 31416 LNS 59082 b
1936	1936	SB2552 - 54 - LRB103 31416 LNS 59082 b
1937	1937	1 savings goals specified in paragraph (b-5) or (b-15) of
1938	1938	2 this Section is possible both cost-effectively and within
1939	1939	3 the expenditure limits in subsection (m), such savings
1940	1940	4 goals shall not be reduced. Except as provided in
1941	1941	5 subsection (m) of this Section, annual increases in
1942	1942	6 cumulative persisting annual savings goals during the
1943	1943	7 applicable 4-year plan period shall not be reduced to
1944	1944	8 amounts that are less than the maximum amount of
1945	1945	9 cumulative persisting annual savings that is forecast to
1946	1946	10 be cost-effectively achievable during the 4-year plan
1947	1947	11 period. The Commission shall review any proposed goal
1948	1948	12 reduction as part of its review and approval of the
1949	1949	13 utility's proposed plan.
1950	1950	14 (3) No later than March 1, 2025, each electric utility
1951	1951	15 shall file a 4-year energy efficiency plan commencing on
1952	1952	16 January 1, 2026 that is designed to achieve the cumulative
1953	1953	17 persisting annual savings goals specified in paragraphs
1954	1954	18 (9) through (12) of subsection (b-5) of this Section or in
1955	1955	19 paragraphs (9) through (12) of subsection (b-15) of this
1956	1956	20 Section, as applicable, through implementation of energy
1957	1957	21 efficiency measures; however, the goals may be reduced if
1958	1958	22 either (1) clear and convincing evidence demonstrates,
1959	1959	23 through independent analysis, that the expenditure limits
1960	1960	24 in subsection (m) of this Section preclude full
1961	1961	25 achievement of the goals or (2) each of the following
1962	1962	26 conditions are met: (A) the plan's analysis and forecasts
1963	1963
1964	1964
1965	1965
1966	1966
1967	1967
1968	1968	SB2552 - 54 - LRB103 31416 LNS 59082 b
1969	1969
1970	1970
1971	1971	SB2552- 55 -LRB103 31416 LNS 59082 b SB2552 - 55 - LRB103 31416 LNS 59082 b
1972	1972	SB2552 - 55 - LRB103 31416 LNS 59082 b
1973	1973	1 of the utility's ability to acquire energy savings
1974	1974	2 demonstrate by clear and convincing evidence and through
1975	1975	3 independent analysis that achievement of such goals is not
1976	1976	4 cost effective; and (B) the amount of energy savings
1977	1977	5 achieved by the utility as determined by the independent
1978	1978	6 evaluator for the most recent year for which savings have
1979	1979	7 been evaluated preceding the plan filing was less than the
1980	1980	8 average annual amount of savings required to achieve the
1981	1981	9 goals for the applicable 4-year plan period. If there is
1982	1982	10 not clear and convincing evidence that achieving the
1983	1983	11 savings goals specified in paragraphs (b-5) or (b-15) of
1984	1984	12 this Section is possible both cost-effectively and within
1985	1985	13 the expenditure limits in subsection (m), such savings
1986	1986	14 goals shall not be reduced. Except as provided in
1987	1987	15 subsection (m) of this Section, annual increases in
1988	1988	16 cumulative persisting annual savings goals during the
1989	1989	17 applicable 4-year plan period shall not be reduced to
1990	1990	18 amounts that are less than the maximum amount of
1991	1991	19 cumulative persisting annual savings that is forecast to
1992	1992	20 be cost-effectively achievable during the 4-year plan
1993	1993	21 period. The Commission shall review any proposed goal
1994	1994	22 reduction as part of its review and approval of the
1995	1995	23 utility's proposed plan.
1996	1996	24 (4) No later than March 1, 2029, and every 4 years
1997	1997	25 thereafter, each electric utility shall file a 4-year
1998	1998	26 energy efficiency plan commencing on January 1, 2030, and
1999	1999
2000	2000
2001	2001
2002	2002
2003	2003
2004	2004	SB2552 - 55 - LRB103 31416 LNS 59082 b
2005	2005
2006	2006
2007	2007	SB2552- 56 -LRB103 31416 LNS 59082 b SB2552 - 56 - LRB103 31416 LNS 59082 b
2008	2008	SB2552 - 56 - LRB103 31416 LNS 59082 b
2009	2009	1 every 4 years thereafter, respectively, that is designed
2010	2010	2 to achieve the cumulative persisting annual savings goals
2011	2011	3 established by the Illinois Commerce Commission pursuant
2012	2012	4 to direction of subsections (b-5) and (b-15) of this
2013	2013	5 Section, as applicable, through implementation of energy
2014	2014	6 efficiency measures; however, the goals may be reduced if
2015	2015	7 either (1) clear and convincing evidence and independent
2016	2016	8 analysis demonstrates that the expenditure limits in
2017	2017	9 subsection (m) of this Section preclude full achievement
2018	2018	10 of the goals or (2) each of the following conditions are
2019	2019	11 met: (A) the plan's analysis and forecasts of the
2020	2020	12 utility's ability to acquire energy savings demonstrate by
2021	2021	13 clear and convincing evidence and through independent
2022	2022	14 analysis that achievement of such goals is not
2023	2023	15 cost-effective; and (B) the amount of energy savings
2024	2024	16 achieved by the utility as determined by the independent
2025	2025	17 evaluator for the most recent year for which savings have
2026	2026	18 been evaluated preceding the plan filing was less than the
2027	2027	19 average annual amount of savings required to achieve the
2028	2028	20 goals for the applicable 4-year plan period. If there is
2029	2029	21 not clear and convincing evidence that achieving the
2030	2030	22 savings goals specified in paragraphs (b-5) or (b-15) of
2031	2031	23 this Section is possible both cost-effectively and within
2032	2032	24 the expenditure limits in subsection (m), such savings
2033	2033	25 goals shall not be reduced. Except as provided in
2034	2034	26 subsection (m) of this Section, annual increases in
2035	2035
2036	2036
2037	2037
2038	2038
2039	2039
2040	2040	SB2552 - 56 - LRB103 31416 LNS 59082 b
2041	2041
2042	2042
2043	2043	SB2552- 57 -LRB103 31416 LNS 59082 b SB2552 - 57 - LRB103 31416 LNS 59082 b
2044	2044	SB2552 - 57 - LRB103 31416 LNS 59082 b
2045	2045	1 cumulative persisting annual savings goals during the
2046	2046	2 applicable 4-year plan period shall not be reduced to
2047	2047	3 amounts that are less than the maximum amount of
2048	2048	4 cumulative persisting annual savings that is forecast to
2049	2049	5 be cost-effectively achievable during the 4-year plan
2050	2050	6 period. The Commission shall review any proposed goal
2051	2051	7 reduction as part of its review and approval of the
2052	2052	8 utility's proposed plan.
2053	2053	9 Each utility's plan shall set forth the utility's
2054	2054	10 proposals to meet the energy efficiency standards identified
2055	2055	11 in subsection (b-5) or (b-15), as applicable and as such
2056	2056	12 standards may have been modified under this subsection (f),
2057	2057	13 taking into account the unique circumstances of the utility's
2058	2058	14 service territory. For those plans commencing on January 1,
2059	2059	15 2018, the Commission shall seek public comment on the
2060	2060	16 utility's plan and shall issue an order approving or
2061	2061	17 disapproving each plan no later than 105 days after June 1,
2062	2062	18 2017 (the effective date of Public Act 99-906). For those
2063	2063	19 plans commencing after December 31, 2021, the Commission shall
2064	2064	20 seek public comment on the utility's plan and shall issue an
2065	2065	21 order approving or disapproving each plan within 6 months
2066	2066	22 after its submission. If the Commission disapproves a plan,
2067	2067	23 the Commission shall, within 30 days, describe in detail the
2068	2068	24 reasons for the disapproval and describe a path by which the
2069	2069	25 utility may file a revised draft of the plan to address the
2070	2070	26 Commission's concerns satisfactorily. If the utility does not
2071	2071
2072	2072
2073	2073
2074	2074
2075	2075
2076	2076	SB2552 - 57 - LRB103 31416 LNS 59082 b
2077	2077
2078	2078
2079	2079	SB2552- 58 -LRB103 31416 LNS 59082 b SB2552 - 58 - LRB103 31416 LNS 59082 b
2080	2080	SB2552 - 58 - LRB103 31416 LNS 59082 b
2081	2081	1 refile with the Commission within 60 days, the utility shall
2082	2082	2 be subject to penalties at a rate of $100,000 per day until the
2083	2083	3 plan is filed. This process shall continue, and penalties
2084	2084	4 shall accrue, until the utility has successfully filed a
2085	2085	5 portfolio of energy efficiency and demand-response measures.
2086	2086	6 Penalties shall be deposited into the Energy Efficiency Trust
2087	2087	7 Fund.
2088	2088	8 (g) In submitting proposed plans and funding levels under
2089	2089	9 subsection (f) of this Section to meet the savings goals
2090	2090	10 identified in subsection (b-5) or (b-15) of this Section, as
2091	2091	11 applicable, the utility shall:
2092	2092	12 (1) Demonstrate that its proposed energy efficiency
2093	2093	13 measures will achieve the applicable requirements that are
2094	2094	14 identified in subsection (b-5) or (b-15) of this Section,
2095	2095	15 as modified by subsection (f) of this Section.
2096	2096	16 (2) (Blank).
2097	2097	17 (2.5) Demonstrate consideration of program options for
2098	2098	18 (A) advancing new building codes, appliance standards, and
2099	2099	19 municipal regulations governing existing and new building
2100	2100	20 efficiency improvements and (B) supporting efforts to
2101	2101	21 improve compliance with new building codes, appliance
2102	2102	22 standards and municipal regulations, as potentially
2103	2103	23 cost-effective means of acquiring energy savings to count
2104	2104	24 toward savings goals.
2105	2105	25 (3) Demonstrate that its overall portfolio of
2106	2106	26 measures, not including low-income programs described in
2107	2107
2108	2108
2109	2109
2110	2110
2111	2111
2112	2112	SB2552 - 58 - LRB103 31416 LNS 59082 b
2113	2113
2114	2114
2115	2115	SB2552- 59 -LRB103 31416 LNS 59082 b SB2552 - 59 - LRB103 31416 LNS 59082 b
2116	2116	SB2552 - 59 - LRB103 31416 LNS 59082 b
2117	2117	1 subsection (c) of this Section, is cost-effective using
2118	2118	2 the total resource cost test or complies with paragraphs
2119	2119	3 (1) through (3) of subsection (f) of this Section and
2120	2120	4 represents a diverse cross-section of opportunities for
2121	2121	5 customers of all rate classes, other than those customers
2122	2122	6 described in subsection (l) of this Section, to
2123	2123	7 participate in the programs. Individual measures need not
2124	2124	8 be cost effective.
2125	2125	9 (3.5) Demonstrate that the utility's plan integrates
2126	2126	10 the delivery of energy efficiency programs with natural
2127	2127	11 gas efficiency programs, programs promoting distributed
2128	2128	12 solar, programs promoting demand response and other
2129	2129	13 efforts to address bill payment issues, including, but not
2130	2130	14 limited to, LIHEAP and the Percentage of Income Payment
2131	2131	15 Plan, to the extent such integration is practical and has
2132	2132	16 the potential to enhance customer engagement, minimize
2133	2133	17 market confusion, or reduce administrative costs.
2134	2134	18 (4) Present a third-party energy efficiency
2135	2135	19 implementation program subject to the following
2136	2136	20 requirements:
2137	2137	21 (A) beginning with the year commencing January 1,
2138	2138	22 2019, electric utilities that serve more than
2139	2139	23 3,000,000 retail customers in the State shall fund
2140	2140	24 third-party energy efficiency programs in an amount
2141	2141	25 that is no less than $25,000,000 per year, and
2142	2142	26 electric utilities that serve less than 3,000,000
2143	2143
2144	2144
2145	2145
2146	2146
2147	2147
2148	2148	SB2552 - 59 - LRB103 31416 LNS 59082 b
2149	2149
2150	2150
2151	2151	SB2552- 60 -LRB103 31416 LNS 59082 b SB2552 - 60 - LRB103 31416 LNS 59082 b
2152	2152	SB2552 - 60 - LRB103 31416 LNS 59082 b
2153	2153	1 retail customers but more than 500,000 retail
2154	2154	2 customers in the State shall fund third-party energy
2155	2155	3 efficiency programs in an amount that is no less than
2156	2156	4 $8,350,000 per year;
2157	2157	5 (B) during 2018, the utility shall conduct a
2158	2158	6 solicitation process for purposes of requesting
2159	2159	7 proposals from third-party vendors for those
2160	2160	8 third-party energy efficiency programs to be offered
2161	2161	9 during one or more of the years commencing January 1,
2162	2162	10 2019, January 1, 2020, and January 1, 2021; for those
2163	2163	11 multi-year plans commencing on January 1, 2022 and
2164	2164	12 January 1, 2026, the utility shall conduct a
2165	2165	13 solicitation process during 2021 and 2025,
2166	2166	14 respectively, for purposes of requesting proposals
2167	2167	15 from third-party vendors for those third-party energy
2168	2168	16 efficiency programs to be offered during one or more
2169	2169	17 years of the respective multi-year plan period; for
2170	2170	18 each solicitation process, the utility shall identify
2171	2171	19 the sector, technology, or geographical area for which
2172	2172	20 it is seeking requests for proposals; the solicitation
2173	2173	21 process must be either for programs that fill gaps in
2174	2174	22 the utility's program portfolio and for programs that
2175	2175	23 target low-income customers, business sectors,
2176	2176	24 building types, geographies, or other specific parts
2177	2177	25 of its customer base with initiatives that would be
2178	2178	26 more effective at reaching these customer segments
2179	2179
2180	2180
2181	2181
2182	2182
2183	2183
2184	2184	SB2552 - 60 - LRB103 31416 LNS 59082 b
2185	2185
2186	2186
2187	2187	SB2552- 61 -LRB103 31416 LNS 59082 b SB2552 - 61 - LRB103 31416 LNS 59082 b
2188	2188	SB2552 - 61 - LRB103 31416 LNS 59082 b
2189	2189	1 than the utilities' programs filed in its energy
2190	2190	2 efficiency plans;
2191	2191	3 (C) the utility shall propose the bidder
2192	2192	4 qualifications, performance measurement process, and
2193	2193	5 contract structure, which must include a performance
2194	2194	6 payment mechanism and general terms and conditions;
2195	2195	7 the proposed qualifications, process, and structure
2196	2196	8 shall be subject to Commission approval; and
2197	2197	9 (D) the utility shall retain an independent third
2198	2198	10 party to score the proposals received through the
2199	2199	11 solicitation process described in this paragraph (4),
2200	2200	12 rank them according to their cost per lifetime
2201	2201	13 kilowatt-hours saved, and assemble the portfolio of
2202	2202	14 third-party programs.
2203	2203	15 The electric utility shall recover all costs
2204	2204	16 associated with Commission-approved, third-party
2205	2205	17 administered programs regardless of the success of those
2206	2206	18 programs.
2207	2207	19 (4.5) Implement cost-effective demand-response
2208	2208	20 measures to reduce peak demand by 0.1% over the prior year
2209	2209	21 for eligible retail customers, as defined in Section
2210	2210	22 16-111.5 of this Act, and for customers that elect hourly
2211	2211	23 service from the utility pursuant to Section 16-107 of
2212	2212	24 this Act, provided those customers have not been declared
2213	2213	25 competitive. This requirement continues until December 31,
2214	2214	26 2026.
2215	2215
2216	2216
2217	2217
2218	2218
2219	2219
2220	2220	SB2552 - 61 - LRB103 31416 LNS 59082 b
2221	2221
2222	2222
2223	2223	SB2552- 62 -LRB103 31416 LNS 59082 b SB2552 - 62 - LRB103 31416 LNS 59082 b
2224	2224	SB2552 - 62 - LRB103 31416 LNS 59082 b
2225	2225	1 (5) Include a proposed or revised cost-recovery tariff
2226	2226	2 mechanism, as provided for under subsection (d) of this
2227	2227	3 Section, to fund the proposed energy efficiency and
2228	2228	4 demand-response measures and to ensure the recovery of the
2229	2229	5 prudently and reasonably incurred costs of
2230	2230	6 Commission-approved programs.
2231	2231	7 (6) Provide for an annual independent evaluation of
2232	2232	8 the performance of the cost-effectiveness of the utility's
2233	2233	9 portfolio of measures, as well as a full review of the
2234	2234	10 multi-year plan results of the broader net program impacts
2235	2235	11 and, to the extent practical, for adjustment of the
2236	2236	12 measures on a going-forward basis as a result of the
2237	2237	13 evaluations. The resources dedicated to evaluation shall
2238	2238	14 not exceed 3% of portfolio resources in any given year.
2239	2239	15 (7) For electric utilities that serve more than
2240	2240	16 500,000 3,000,000 retail customers in the State:
2241	2241	17 (A) Through December 31, 2025, provide for an
2242	2242	18 adjustment to the return on equity component of the
2243	2243	19 utility's weighted average cost of capital calculated
2244	2244	20 under subsection (d) of this Section:
2245	2245	21 (i) If the independent evaluator determines
2246	2246	22 that the utility achieved a cumulative persisting
2247	2247	23 annual savings that is less than the applicable
2248	2248	24 annual incremental goal, then the return on equity
2249	2249	25 component shall be reduced by a maximum of 200
2250	2250	26 basis points in the event that the utility
2251	2251
2252	2252
2253	2253
2254	2254
2255	2255
2256	2256	SB2552 - 62 - LRB103 31416 LNS 59082 b
2257	2257
2258	2258
2259	2259	SB2552- 63 -LRB103 31416 LNS 59082 b SB2552 - 63 - LRB103 31416 LNS 59082 b
2260	2260	SB2552 - 63 - LRB103 31416 LNS 59082 b
2261	2261	1 achieved no more than 75% of such goal. If the
2262	2262	2 utility achieved more than 75% of the applicable
2263	2263	3 annual incremental goal but less than 100% of such
2264	2264	4 goal, then the return on equity component shall be
2265	2265	5 reduced by 8 basis points for each percent by
2266	2266	6 which the utility failed to achieve the goal.
2267	2267	7 (ii) If the independent evaluator determines
2268	2268	8 that the utility achieved a cumulative persisting
2269	2269	9 annual savings that is more than the applicable
2270	2270	10 annual incremental goal, then the return on equity
2271	2271	11 component shall be increased by a maximum of 200
2272	2272	12 basis points in the event that the utility
2273	2273	13 achieved at least 125% of such goal. If the
2274	2274	14 utility achieved more than 100% of the applicable
2275	2275	15 annual incremental goal but less than 125% of such
2276	2276	16 goal, then the return on equity component shall be
2277	2277	17 increased by 8 basis points for each percent by
2278	2278	18 which the utility achieved above the goal. If the
2279	2279	19 applicable annual incremental goal was reduced
2280	2280	20 under paragraph paragraphs (1) or (2) of
2281	2281	21 subsection (f) of this Section, then the following
2282	2282	22 adjustments shall be made to the calculations
2283	2283	23 described in this item (ii):
2284	2284	24 (aa) the calculation for determining
2285	2285	25 achievement that is at least 125% of the
2286	2286	26 applicable annual incremental goal shall use
2287	2287
2288	2288
2289	2289
2290	2290
2291	2291
2292	2292	SB2552 - 63 - LRB103 31416 LNS 59082 b
2293	2293
2294	2294
2295	2295	SB2552- 64 -LRB103 31416 LNS 59082 b SB2552 - 64 - LRB103 31416 LNS 59082 b
2296	2296	SB2552 - 64 - LRB103 31416 LNS 59082 b
2297	2297	1 the unreduced applicable annual incremental
2298	2298	2 goal to set the value; and
2299	2299	3 (bb) the calculation for determining
2300	2300	4 achievement that is less than 125% but more
2301	2301	5 than 100% of the applicable annual incremental
2302	2302	6 goal shall use the reduced applicable annual
2303	2303	7 incremental goal to set the value for 100%
2304	2304	8 achievement of the goal and shall use the
2305	2305	9 unreduced goal to set the value for 125%
2306	2306	10 achievement. The 8 basis point value shall
2307	2307	11 also be modified, as necessary, so that the
2308	2308	12 200 basis points are evenly apportioned among
2309	2309	13 each percentage point value between 100% and
2310	2310	14 125% achievement.
2311	2311	15 (B) For the period January 1, 2026 through
2312	2312	16 December 31, 2029 and in all subsequent 4-year
2313	2313	17 periods, provide for an adjustment to the return on
2314	2314	18 equity component of the utility's weighted average
2315	2315	19 cost of capital calculated under subsection (d) of
2316	2316	20 this Section:
2317	2317	21 (i) If the independent evaluator determines
2318	2318	22 that the utility achieved a cumulative persisting
2319	2319	23 annual savings that is less than the applicable
2320	2320	24 annual incremental goal, then the return on equity
2321	2321	25 component shall be reduced by a maximum of 200
2322	2322	26 basis points in the event that the utility
2323	2323
2324	2324
2325	2325
2326	2326
2327	2327
2328	2328	SB2552 - 64 - LRB103 31416 LNS 59082 b
2329	2329
2330	2330
2331	2331	SB2552- 65 -LRB103 31416 LNS 59082 b SB2552 - 65 - LRB103 31416 LNS 59082 b
2332	2332	SB2552 - 65 - LRB103 31416 LNS 59082 b
2333	2333	1 achieved no more than 66% of such goal. If the
2334	2334	2 utility achieved more than 66% of the applicable
2335	2335	3 annual incremental goal but less than 100% of such
2336	2336	4 goal, then the return on equity component shall be
2337	2337	5 reduced by 6 basis points for each percent by
2338	2338	6 which the utility failed to achieve the goal.
2339	2339	7 (ii) If the independent evaluator determines
2340	2340	8 that the utility achieved a cumulative persisting
2341	2341	9 annual savings that is more than the applicable
2342	2342	10 annual incremental goal, then the return on equity
2343	2343	11 component shall be increased by a maximum of 200
2344	2344	12 basis points in the event that the utility
2345	2345	13 achieved at least 134% of such goal. If the
2346	2346	14 utility achieved more than 100% of the applicable
2347	2347	15 annual incremental goal but less than 134% of such
2348	2348	16 goal, then the return on equity component shall be
2349	2349	17 increased by 6 basis points for each percent by
2350	2350	18 which the utility achieved above the goal. If the
2351	2351	19 applicable annual incremental goal was reduced
2352	2352	20 under paragraph (3) of subsection (f) of this
2353	2353	21 Section, then the following adjustments shall be
2354	2354	22 made to the calculations described in this item
2355	2355	23 (ii):
2356	2356	24 (aa) the calculation for determining
2357	2357	25 achievement that is at least 134% of the
2358	2358	26 applicable annual incremental goal shall use
2359	2359
2360	2360
2361	2361
2362	2362
2363	2363
2364	2364	SB2552 - 65 - LRB103 31416 LNS 59082 b
2365	2365
2366	2366
2367	2367	SB2552- 66 -LRB103 31416 LNS 59082 b SB2552 - 66 - LRB103 31416 LNS 59082 b
2368	2368	SB2552 - 66 - LRB103 31416 LNS 59082 b
2369	2369	1 the unreduced applicable annual incremental
2370	2370	2 goal to set the value; and
2371	2371	3 (bb) the calculation for determining
2372	2372	4 achievement that is less than 134% but more
2373	2373	5 than 100% of the applicable annual incremental
2374	2374	6 goal shall use the reduced applicable annual
2375	2375	7 incremental goal to set the value for 100%
2376	2376	8 achievement of the goal and shall use the
2377	2377	9 unreduced goal to set the value for 134%
2378	2378	10 achievement. The 6 basis point value shall
2379	2379	11 also be modified, as necessary, so that the
2380	2380	12 200 basis points are evenly apportioned among
2381	2381	13 each percentage point value between 100% and
2382	2382	14 134% achievement.
2383	2383	15 (C) Notwithstanding the provisions of
2384	2384	16 subparagraphs (A) and (B) of this paragraph (7), if
2385	2385	17 the applicable annual incremental goal for an electric
2386	2386	18 utility is ever less than 0.6% of deemed average
2387	2387	19 weather normalized sales of electric power and energy
2388	2388	20 during calendar years 2014, 2015, and 2016, an
2389	2389	21 adjustment to the return on equity component of the
2390	2390	22 utility's weighted average cost of capital calculated
2391	2391	23 under subsection (d) of this Section shall be made as
2392	2392	24 follows:
2393	2393	25 (i) If the independent evaluator determines
2394	2394	26 that the utility achieved a cumulative persisting
2395	2395
2396	2396
2397	2397
2398	2398
2399	2399
2400	2400	SB2552 - 66 - LRB103 31416 LNS 59082 b
2401	2401
2402	2402
2403	2403	SB2552- 67 -LRB103 31416 LNS 59082 b SB2552 - 67 - LRB103 31416 LNS 59082 b
2404	2404	SB2552 - 67 - LRB103 31416 LNS 59082 b
2405	2405	1 annual savings that is less than would have been
2406	2406	2 achieved had the applicable annual incremental
2407	2407	3 goal been achieved, then the return on equity
2408	2408	4 component shall be reduced by a maximum of 200
2409	2409	5 basis points if the utility achieved no more than
2410	2410	6 75% of its applicable annual total savings
2411	2411	7 requirement as defined in paragraph (7.5) of this
2412	2412	8 subsection. If the utility achieved more than 75%
2413	2413	9 of the applicable annual total savings requirement
2414	2414	10 but less than 100% of such goal, then the return on
2415	2415	11 equity component shall be reduced by 8 basis
2416	2416	12 points for each percent by which the utility
2417	2417	13 failed to achieve the goal.
2418	2418	14 (ii) If the independent evaluator determines
2419	2419	15 that the utility achieved a cumulative persisting
2420	2420	16 annual savings that is more than would have been
2421	2421	17 achieved had the applicable annual incremental
2422	2422	18 goal been achieved, then the return on equity
2423	2423	19 component shall be increased by a maximum of 200
2424	2424	20 basis points if the utility achieved at least 125%
2425	2425	21 of its applicable annual total savings
2426	2426	22 requirement. If the utility achieved more than
2427	2427	23 100% of the applicable annual total savings
2428	2428	24 requirement but less than 125% of such goal, then
2429	2429	25 the return on equity component shall be increased
2430	2430	26 by 8 basis points for each percent by which the
2431	2431
2432	2432
2433	2433
2434	2434
2435	2435
2436	2436	SB2552 - 67 - LRB103 31416 LNS 59082 b
2437	2437
2438	2438
2439	2439	SB2552- 68 -LRB103 31416 LNS 59082 b SB2552 - 68 - LRB103 31416 LNS 59082 b
2440	2440	SB2552 - 68 - LRB103 31416 LNS 59082 b
2441	2441	1 utility achieved above the applicable annual total
2442	2442	2 savings requirement. If the applicable annual
2443	2443	3 incremental goal was reduced under paragraph (1)
2444	2444	4 or (2) of subsection (f) of this Section, then the
2445	2445	5 following adjustments shall be made to the
2446	2446	6 calculations described in this item (ii):
2447	2447	7 (aa) the calculation for determining
2448	2448	8 achievement that is at least 125% of the
2449	2449	9 applicable annual total savings requirement
2450	2450	10 shall use the unreduced applicable annual
2451	2451	11 incremental goal to set the value; and
2452	2452	12 (bb) the calculation for determining
2453	2453	13 achievement that is less than 125% but more
2454	2454	14 than 100% of the applicable annual total
2455	2455	15 savings requirement shall use the reduced
2456	2456	16 applicable annual incremental goal to set the
2457	2457	17 value for 100% achievement of the goal and
2458	2458	18 shall use the unreduced goal to set the value
2459	2459	19 for 125% achievement. The 8 basis point value
2460	2460	20 shall also be modified, as necessary, so that
2461	2461	21 the 200 basis points are evenly apportioned
2462	2462	22 among each percentage point value between 100%
2463	2463	23 and 125% achievement.
2464	2464	24 (7.5) For purposes of this Section, the term
2465	2465	25 "applicable annual incremental goal" means the difference
2466	2466	26 between the cumulative persisting annual savings goal for
2467	2467
2468	2468
2469	2469
2470	2470
2471	2471
2472	2472	SB2552 - 68 - LRB103 31416 LNS 59082 b
2473	2473
2474	2474
2475	2475	SB2552- 69 -LRB103 31416 LNS 59082 b SB2552 - 69 - LRB103 31416 LNS 59082 b
2476	2476	SB2552 - 69 - LRB103 31416 LNS 59082 b
2477	2477	1 the calendar year that is the subject of the independent
2478	2478	2 evaluator's determination and the cumulative persisting
2479	2479	3 annual savings goal for the immediately preceding calendar
2480	2480	4 year, as such goals are defined in subsections (b-5) and
2481	2481	5 (b-15) of this Section and as these goals may have been
2482	2482	6 modified as provided for under subsection (b-20) and
2483	2483	7 paragraphs (1) through (3) of subsection (f) of this
2484	2484	8 Section. Under subsections (b), (b-5), (b-10), and (b-15)
2485	2485	9 of this Section, a utility must first replace energy
2486	2486	10 savings from measures that have expired before any
2487	2487	11 progress towards achievement of its applicable annual
2488	2488	12 incremental goal may be counted. Savings may expire
2489	2489	13 because measures installed in previous years have reached
2490	2490	14 the end of their lives, because measures installed in
2491	2491	15 previous years are producing lower savings in the current
2492	2492	16 year than in the previous year, or for other reasons
2493	2493	17 identified by independent evaluators. Notwithstanding
2494	2494	18 anything else set forth in this Section, the difference
2495	2495	19 between the actual annual incremental savings achieved in
2496	2496	20 any given year, including the replacement of energy
2497	2497	21 savings that have expired, and the applicable annual
2498	2498	22 incremental goal shall not affect adjustments to the
2499	2499	23 return on equity for subsequent calendar years under this
2500	2500	24 subsection (g).
2501	2501	25 In this Section, "applicable annual total savings
2502	2502	26 requirement" means the total amount of new annual savings
2503	2503
2504	2504
2505	2505
2506	2506
2507	2507
2508	2508	SB2552 - 69 - LRB103 31416 LNS 59082 b
2509	2509
2510	2510
2511	2511	SB2552- 70 -LRB103 31416 LNS 59082 b SB2552 - 70 - LRB103 31416 LNS 59082 b
2512	2512	SB2552 - 70 - LRB103 31416 LNS 59082 b
2513	2513	1 that the utility must achieve in any given year to achieve
2514	2514	2 the applicable annual incremental goal. This is equal to
2515	2515	3 the applicable annual incremental goal plus the total new
2516	2516	4 annual savings that are required to replace savings that
2517	2517	5 expired in or at the end of the previous year.
2518	2518	6 (8) (Blank). For electric utilities that serve less
2519	2519	7 than 3,000,000 retail customers but more than 500,000
2520	2520	8 retail customers in the State:
2521	2521	9 (A) Through December 31, 2025, the applicable
2522	2522	10 annual incremental goal shall be compared to the
2523	2523	11 annual incremental savings as determined by the
2524	2524	12 independent evaluator.
2525	2525	13 (i) The return on equity component shall be
2526	2526	14 reduced by 8 basis points for each percent by
2527	2527	15 which the utility did not achieve 84.4% of the
2528	2528	16 applicable annual incremental goal.
2529	2529	17 (ii) The return on equity component shall be
2530	2530	18 increased by 8 basis points for each percent by
2531	2531	19 which the utility exceeded 100% of the applicable
2532	2532	20 annual incremental goal.
2533	2533	21 (iii) The return on equity component shall not
2534	2534	22 be increased or decreased if the annual
2535	2535	23 incremental savings as determined by the
2536	2536	24 independent evaluator is greater than 84.4% of the
2537	2537	25 applicable annual incremental goal and less than
2538	2538	26 100% of the applicable annual incremental goal.
2539	2539
2540	2540
2541	2541
2542	2542
2543	2543
2544	2544	SB2552 - 70 - LRB103 31416 LNS 59082 b
2545	2545
2546	2546
2547	2547	SB2552- 71 -LRB103 31416 LNS 59082 b SB2552 - 71 - LRB103 31416 LNS 59082 b
2548	2548	SB2552 - 71 - LRB103 31416 LNS 59082 b
2549	2549	1 (iv) The return on equity component shall not
2550	2550	2 be increased or decreased by an amount greater
2551	2551	3 than 200 basis points pursuant to this
2552	2552	4 subparagraph (A).
2553	2553	5 (B) For the period of January 1, 2026 through
2554	2554	6 December 31, 2029 and in all subsequent 4-year
2555	2555	7 periods, the applicable annual incremental goal shall
2556	2556	8 be compared to the annual incremental savings as
2557	2557	9 determined by the independent evaluator.
2558	2558	10 (i) The return on equity component shall be
2559	2559	11 reduced by 6 basis points for each percent by
2560	2560	12 which the utility did not achieve 100% of the
2561	2561	13 applicable annual incremental goal.
2562	2562	14 (ii) The return on equity component shall be
2563	2563	15 increased by 6 basis points for each percent by
2564	2564	16 which the utility exceeded 100% of the applicable
2565	2565	17 annual incremental goal.
2566	2566	18 (iii) The return on equity component shall not
2567	2567	19 be increased or decreased by an amount greater
2568	2568	20 than 200 basis points pursuant to this
2569	2569	21 subparagraph (B).
2570	2570	22 (C) Notwithstanding provisions in subparagraphs
2571	2571	23 (A) and (B) of paragraph (7) of this subsection, if the
2572	2572	24 applicable annual incremental goal for an electric
2573	2573	25 utility is ever less than 0.6% of deemed average
2574	2574	26 weather normalized sales of electric power and energy
2575	2575
2576	2576
2577	2577
2578	2578
2579	2579
2580	2580	SB2552 - 71 - LRB103 31416 LNS 59082 b
2581	2581
2582	2582
2583	2583	SB2552- 72 -LRB103 31416 LNS 59082 b SB2552 - 72 - LRB103 31416 LNS 59082 b
2584	2584	SB2552 - 72 - LRB103 31416 LNS 59082 b
2585	2585	1 during calendar years 2014, 2015 and 2016, an
2586	2586	2 adjustment to the return on equity component of the
2587	2587	3 utility's weighted average cost of capital calculated
2588	2588	4 under subsection (d) of this Section shall be made as
2589	2589	5 follows:
2590	2590	6 (i) The return on equity component shall be
2591	2591	7 reduced by 8 basis points for each percent by
2592	2592	8 which the utility did not achieve 100% of the
2593	2593	9 applicable annual total savings requirement.
2594	2594	10 (ii) The return on equity component shall be
2595	2595	11 increased by 8 basis points for each percent by
2596	2596	12 which the utility exceeded 100% of the applicable
2597	2597	13 annual total savings requirement.
2598	2598	14 (iii) The return on equity component shall not
2599	2599	15 be increased or decreased by an amount greater
2600	2600	16 than 200 basis points pursuant to this
2601	2601	17 subparagraph (C).
2602	2602	18 (D) If the applicable annual incremental goal was
2603	2603	19 reduced under paragraph (1), (2), (3), or (4) of
2604	2604	20 subsection (f) of this Section, then the following
2605	2605	21 adjustments shall be made to the calculations
2606	2606	22 described in subparagraphs (A), (B), and (C) of this
2607	2607	23 paragraph (8):
2608	2608	24 (i) The calculation for determining
2609	2609	25 achievement that is at least 125% or 134%, as
2610	2610	26 applicable, of the applicable annual incremental
2611	2611
2612	2612
2613	2613
2614	2614
2615	2615
2616	2616	SB2552 - 72 - LRB103 31416 LNS 59082 b
2617	2617
2618	2618
2619	2619	SB2552- 73 -LRB103 31416 LNS 59082 b SB2552 - 73 - LRB103 31416 LNS 59082 b
2620	2620	SB2552 - 73 - LRB103 31416 LNS 59082 b
2621	2621	1 goal or the applicable annual total savings
2622	2622	2 requirement, as applicable, shall use the
2623	2623	3 unreduced applicable annual incremental goal to
2624	2624	4 set the value.
2625	2625	5 (ii) For the period through December 31, 2025,
2626	2626	6 the calculation for determining achievement that
2627	2627	7 is less than 125% but more than 100% of the
2628	2628	8 applicable annual incremental goal or the
2629	2629	9 applicable annual total savings requirement, as
2630	2630	10 applicable, shall use the reduced applicable
2631	2631	11 annual incremental goal to set the value for 100%
2632	2632	12 achievement of the goal and shall use the
2633	2633	13 unreduced goal to set the value for 125%
2634	2634	14 achievement. The 8 basis point value shall also be
2635	2635	15 modified, as necessary, so that the 200 basis
2636	2636	16 points are evenly apportioned among each
2637	2637	17 percentage point value between 100% and 125%
2638	2638	18 achievement.
2639	2639	19 (iii) For the period of January 1, 2026
2640	2640	20 through December 31, 2029 and all subsequent
2641	2641	21 4-year periods, the calculation for determining
2642	2642	22 achievement that is less than 125% or 134%, as
2643	2643	23 applicable, but more than 100% of the applicable
2644	2644	24 annual incremental goal or the applicable annual
2645	2645	25 total savings requirement, as applicable, shall
2646	2646	26 use the reduced applicable annual incremental goal
2647	2647
2648	2648
2649	2649
2650	2650
2651	2651
2652	2652	SB2552 - 73 - LRB103 31416 LNS 59082 b
2653	2653
2654	2654
2655	2655	SB2552- 74 -LRB103 31416 LNS 59082 b SB2552 - 74 - LRB103 31416 LNS 59082 b
2656	2656	SB2552 - 74 - LRB103 31416 LNS 59082 b
2657	2657	1 to set the value for 100% achievement of the goal
2658	2658	2 and shall use the unreduced goal to set the value
2659	2659	3 for 125% achievement. The 6 basis-point value or 8
2660	2660	4 basis-point value, as applicable, shall also be
2661	2661	5 modified, as necessary, so that the 200 basis
2662	2662	6 points are evenly apportioned among each
2663	2663	7 percentage point value between 100% and 125% or
2664	2664	8 between 100% and 134% achievement, as applicable.
2665	2665	9 (9) The utility shall submit the energy savings data
2666	2666	10 to the independent evaluator no later than 30 days after
2667	2667	11 the close of the plan year. The independent evaluator
2668	2668	12 shall determine the cumulative persisting annual savings
2669	2669	13 for a given plan year, as well as an estimate of job
2670	2670	14 impacts and other macroeconomic impacts of the efficiency
2671	2671	15 programs for that year, no later than 120 days after the
2672	2672	16 close of the plan year. The utility shall submit an
2673	2673	17 informational filing to the Commission no later than 160
2674	2674	18 days after the close of the plan year that attaches the
2675	2675	19 independent evaluator's final report identifying the
2676	2676	20 cumulative persisting annual savings for the year and
2677	2677	21 calculates, under paragraph (7) or (8) of this subsection
2678	2678	22 (g), as applicable, any resulting change to the utility's
2679	2679	23 return on equity component of the weighted average cost of
2680	2680	24 capital applicable to the next plan year beginning with
2681	2681	25 the January monthly billing period and extending through
2682	2682	26 the December monthly billing period. However, if the
2683	2683
2684	2684
2685	2685
2686	2686
2687	2687
2688	2688	SB2552 - 74 - LRB103 31416 LNS 59082 b
2689	2689
2690	2690
2691	2691	SB2552- 75 -LRB103 31416 LNS 59082 b SB2552 - 75 - LRB103 31416 LNS 59082 b
2692	2692	SB2552 - 75 - LRB103 31416 LNS 59082 b
2693	2693	1 utility recovers the costs incurred under this Section
2694	2694	2 under paragraphs (2) and (3) of subsection (d) of this
2695	2695	3 Section, then the utility shall not be required to submit
2696	2696	4 such informational filing, and shall instead submit the
2697	2697	5 information that would otherwise be included in the
2698	2698	6 informational filing as part of its filing under paragraph
2699	2699	7 (3) of such subsection (d) that is due on or before June 1
2700	2700	8 of each year.
2701	2701	9 For those utilities that must submit the informational
2702	2702	10 filing, the Commission may, on its own motion or by
2703	2703	11 petition, initiate an investigation of such filing,
2704	2704	12 provided, however, that the utility's proposed return on
2705	2705	13 equity calculation shall be deemed the final, approved
2706	2706	14 calculation on December 15 of the year in which it is filed
2707	2707	15 unless the Commission enters an order on or before
2708	2708	16 December 15, after notice and hearing, that modifies such
2709	2709	17 calculation consistent with this Section.
2710	2710	18 The adjustments to the return on equity component
2711	2711	19 described in paragraph paragraphs (7) and (8) of this
2712	2712	20 subsection (g) shall be applied as described in such
2713	2713	21 paragraphs through a separate tariff mechanism, which
2714	2714	22 shall be filed by the utility under subsections (f) and
2715	2715	23 (g) of this Section.
2716	2716	24 (9.5) The utility must demonstrate how it will ensure
2717	2717	25 that program implementation contractors and energy
2718	2718	26 efficiency installation vendors will promote workforce
2719	2719
2720	2720
2721	2721
2722	2722
2723	2723
2724	2724	SB2552 - 75 - LRB103 31416 LNS 59082 b
2725	2725
2726	2726
2727	2727	SB2552- 76 -LRB103 31416 LNS 59082 b SB2552 - 76 - LRB103 31416 LNS 59082 b
2728	2728	SB2552 - 76 - LRB103 31416 LNS 59082 b
2729	2729	1 equity and quality jobs.
2730	2730	2 (9.6) Utilities shall collect data necessary to ensure
2731	2731	3 compliance with paragraph (9.5) no less than quarterly and
2732	2732	4 shall communicate progress toward compliance with
2733	2733	5 paragraph (9.5) to program implementation contractors and
2734	2734	6 energy efficiency installation vendors no less than
2735	2735	7 quarterly. Utilities shall work with relevant vendors,
2736	2736	8 providing education, training, and other resources needed
2737	2737	9 to ensure compliance and, where necessary, adjusting or
2738	2738	10 terminating work with vendors that cannot assist with
2739	2739	11 compliance.
2740	2740	12 (10) Utilities required to implement efficiency
2741	2741	13 programs under subsections (b-5) and (b-10) shall report
2742	2742	14 annually to the Illinois Commerce Commission and the
2743	2743	15 General Assembly on how hiring, contracting, job training,
2744	2744	16 and other practices related to its energy efficiency
2745	2745	17 programs enhance the diversity of vendors working on such
2746	2746	18 programs. These reports must include data on vendor and
2747	2747	19 employee diversity, including data on the implementation
2748	2748	20 of paragraphs (9.5) and (9.6). If the utility is not
2749	2749	21 meeting the requirements of paragraphs (9.5) and (9.6),
2750	2750	22 the utility shall submit a plan to adjust their activities
2751	2751	23 so that they meet the requirements of paragraphs (9.5) and
2752	2752	24 (9.6) within the following year.
2753	2753	25 (h) No more than 4% of energy efficiency and
2754	2754	26 demand-response program revenue may be allocated for research,
2755	2755
2756	2756
2757	2757
2758	2758
2759	2759
2760	2760	SB2552 - 76 - LRB103 31416 LNS 59082 b
2761	2761
2762	2762
2763	2763	SB2552- 77 -LRB103 31416 LNS 59082 b SB2552 - 77 - LRB103 31416 LNS 59082 b
2764	2764	SB2552 - 77 - LRB103 31416 LNS 59082 b
2765	2765	1 development, or pilot deployment of new equipment or measures.
2766	2766	2 Electric utilities shall work with interested stakeholders to
2767	2767	3 formulate a plan for how these funds should be spent,
2768	2768	4 incorporate statewide approaches for these allocations, and
2769	2769	5 file a 4-year plan that demonstrates that collaboration. If a
2770	2770	6 utility files a request for modified annual energy savings
2771	2771	7 goals with the Commission, then a utility shall forgo spending
2772	2772	8 portfolio dollars on research and development proposals.
2773	2773	9 (i) When practicable, electric utilities shall incorporate
2774	2774	10 advanced metering infrastructure data into the planning,
2775	2775	11 implementation, and evaluation of energy efficiency measures
2776	2776	12 and programs, subject to the data privacy and confidentiality
2777	2777	13 protections of applicable law.
2778	2778	14 (j) The independent evaluator shall follow the guidelines
2779	2779	15 and use the savings set forth in Commission-approved energy
2780	2780	16 efficiency policy manuals and technical reference manuals, as
2781	2781	17 each may be updated from time to time. Until such time as
2782	2782	18 measure life values for energy efficiency measures implemented
2783	2783	19 for low-income households under subsection (c) of this Section
2784	2784	20 are incorporated into such Commission-approved manuals, the
2785	2785	21 low-income measures shall have the same measure life values
2786	2786	22 that are established for same measures implemented in
2787	2787	23 households that are not low-income households.
2788	2788	24 (k) Notwithstanding any provision of law to the contrary,
2789	2789	25 an electric utility subject to the requirements of this
2790	2790	26 Section may file a tariff cancelling an automatic adjustment
2791	2791
2792	2792
2793	2793
2794	2794
2795	2795
2796	2796	SB2552 - 77 - LRB103 31416 LNS 59082 b
2797	2797
2798	2798
2799	2799	SB2552- 78 -LRB103 31416 LNS 59082 b SB2552 - 78 - LRB103 31416 LNS 59082 b
2800	2800	SB2552 - 78 - LRB103 31416 LNS 59082 b
2801	2801	1 clause tariff in effect under this Section or Section 8-103,
2802	2802	2 which shall take effect no later than one business day after
2803	2803	3 the date such tariff is filed. Thereafter, the utility shall
2804	2804	4 be authorized to defer and recover its expenditures incurred
2805	2805	5 under this Section through a new tariff authorized under
2806	2806	6 subsection (d) of this Section or in the utility's next rate
2807	2807	7 case under Article IX or Section 16-108.5 of this Act, with
2808	2808	8 interest at an annual rate equal to the utility's weighted
2809	2809	9 average cost of capital as approved by the Commission in such
2810	2810	10 case. If the utility elects to file a new tariff under
2811	2811	11 subsection (d) of this Section, the utility may file the
2812	2812	12 tariff within 10 days after June 1, 2017 (the effective date of
2813	2813	13 Public Act 99-906), and the cost inputs to such tariff shall be
2814	2814	14 based on the projected costs to be incurred by the utility
2815	2815	15 during the calendar year in which the new tariff is filed and
2816	2816	16 that were not recovered under the tariff that was cancelled as
2817	2817	17 provided for in this subsection. Such costs shall include
2818	2818	18 those incurred or to be incurred by the utility under its
2819	2819	19 multi-year plan approved under subsections (f) and (g) of this
2820	2820	20 Section, including, but not limited to, projected capital
2821	2821	21 investment costs and projected regulatory asset balances with
2822	2822	22 correspondingly updated depreciation and amortization reserves
2823	2823	23 and expense. The Commission shall, after notice and hearing,
2824	2824	24 approve, or approve with modification, such tariff and cost
2825	2825	25 inputs no later than 75 days after the utility filed the
2826	2826	26 tariff, provided that such approval, or approval with
2827	2827
2828	2828
2829	2829
2830	2830
2831	2831
2832	2832	SB2552 - 78 - LRB103 31416 LNS 59082 b
2833	2833
2834	2834
2835	2835	SB2552- 79 -LRB103 31416 LNS 59082 b SB2552 - 79 - LRB103 31416 LNS 59082 b
2836	2836	SB2552 - 79 - LRB103 31416 LNS 59082 b
2837	2837	1 modification, shall be consistent with the provisions of this
2838	2838	2 Section to the extent they do not conflict with this
2839	2839	3 subsection (k). The tariff approved by the Commission shall
2840	2840	4 take effect no later than 5 days after the Commission enters
2841	2841	5 its order approving the tariff.
2842	2842	6 No later than 60 days after the effective date of the
2843	2843	7 tariff cancelling the utility's automatic adjustment clause
2844	2844	8 tariff, the utility shall file a reconciliation that
2845	2845	9 reconciles the moneys collected under its automatic adjustment
2846	2846	10 clause tariff with the costs incurred during the period
2847	2847	11 beginning June 1, 2016 and ending on the date that the electric
2848	2848	12 utility's automatic adjustment clause tariff was cancelled. In
2849	2849	13 the event the reconciliation reflects an under-collection, the
2850	2850	14 utility shall recover the costs as specified in this
2851	2851	15 subsection (k). If the reconciliation reflects an
2852	2852	16 over-collection, the utility shall apply the amount of such
2853	2853	17 over-collection as a one-time credit to retail customers'
2854	2854	18 bills.
2855	2855	19 (l) (Blank). For the calendar years covered by a
2856	2856	20 multi-year plan commencing after December 31, 2017,
2857	2857	21 subsections (a) through (j) of this Section do not apply to
2858	2858	22 eligible large private energy customers that have chosen to
2859	2859	23 opt out of multi-year plans consistent with this subsection
2860	2860	24 (1).
2861	2861	25 (1) For purposes of this subsection (l), "eligible
2862	2862	26 large private energy customer" means any retail customers,
2863	2863
2864	2864
2865	2865
2866	2866
2867	2867
2868	2868	SB2552 - 79 - LRB103 31416 LNS 59082 b
2869	2869
2870	2870
2871	2871	SB2552- 80 -LRB103 31416 LNS 59082 b SB2552 - 80 - LRB103 31416 LNS 59082 b
2872	2872	SB2552 - 80 - LRB103 31416 LNS 59082 b
2873	2873	1 except for federal, State, municipal, and other public
2874	2874	2 customers, of an electric utility that serves more than
2875	2875	3 3,000,000 retail customers, except for federal, State,
2876	2876	4 municipal and other public customers, in the State and
2877	2877	5 whose total highest 30 minute demand was more than 10,000
2878	2878	6 kilowatts, or any retail customers of an electric utility
2879	2879	7 that serves less than 3,000,000 retail customers but more
2880	2880	8 than 500,000 retail customers in the State and whose total
2881	2881	9 highest 15 minute demand was more than 10,000 kilowatts.
2882	2882	10 For purposes of this subsection (l), "retail customer" has
2883	2883	11 the meaning set forth in Section 16-102 of this Act.
2884	2884	12 However, for a business entity with multiple sites located
2885	2885	13 in the State, where at least one of those sites qualifies
2886	2886	14 as an eligible large private energy customer, then any of
2887	2887	15 that business entity's sites, properly identified on a
2888	2888	16 form for notice, shall be considered eligible large
2889	2889	17 private energy customers for the purposes of this
2890	2890	18 subsection (l). A determination of whether this subsection
2891	2891	19 is applicable to a customer shall be made for each
2892	2892	20 multi-year plan beginning after December 31, 2017. The
2893	2893	21 criteria for determining whether this subsection (l) is
2894	2894	22 applicable to a retail customer shall be based on the 12
2895	2895	23 consecutive billing periods prior to the start of the
2896	2896	24 first year of each such multi-year plan.
2897	2897	25 (2) Within 45 days after the effective date of this
2898	2898	26 amendatory Act of the 102nd General Assembly, the
2899	2899
2900	2900
2901	2901
2902	2902
2903	2903
2904	2904	SB2552 - 80 - LRB103 31416 LNS 59082 b
2905	2905
2906	2906
2907	2907	SB2552- 81 -LRB103 31416 LNS 59082 b SB2552 - 81 - LRB103 31416 LNS 59082 b
2908	2908	SB2552 - 81 - LRB103 31416 LNS 59082 b
2909	2909	1 Commission shall prescribe the form for notice required
2910	2910	2 for opting out of energy efficiency programs. The notice
2911	2911	3 must be submitted to the retail electric utility 12 months
2912	2912	4 before the next energy efficiency planning cycle. However,
2913	2913	5 within 120 days after the Commission's initial issuance of
2914	2914	6 the form for notice, eligible large private energy
2915	2915	7 customers may submit a form for notice to an electric
2916	2916	8 utility. The form for notice for opting out of energy
2917	2917	9 efficiency programs shall include all of the following:
2918	2918	10 (A) a statement indicating that the customer has
2919	2919	11 elected to opt out;
2920	2920	12 (B) the account numbers for the customer accounts
2921	2921	13 to which the opt out shall apply;
2922	2922	14 (C) the mailing address associated with the
2923	2923	15 customer accounts identified under subparagraph (B);
2924	2924	16 (D) an American Society of Heating, Refrigerating,
2925	2925	17 and Air-Conditioning Engineers (ASHRAE) level 2 or
2926	2926	18 higher audit report conducted by an independent
2927	2927	19 third-party expert identifying cost-effective energy
2928	2928	20 efficiency project opportunities that could be
2929	2929	21 invested in over the next 10 years. A retail customer
2930	2930	22 with specialized processes may utilize a self-audit
2931	2931	23 process in lieu of the ASHRAE audit;
2932	2932	24 (E) a description of the customer's plans to
2933	2933	25 reallocate the funds toward internal energy efficiency
2934	2934	26 efforts identified in the subparagraph (D) report,
2935	2935
2936	2936
2937	2937
2938	2938
2939	2939
2940	2940	SB2552 - 81 - LRB103 31416 LNS 59082 b
2941	2941
2942	2942
2943	2943	SB2552- 82 -LRB103 31416 LNS 59082 b SB2552 - 82 - LRB103 31416 LNS 59082 b
2944	2944	SB2552 - 82 - LRB103 31416 LNS 59082 b
2945	2945	1 including, but not limited to: (i) strategic energy
2946	2946	2 management or other programs, including descriptions
2947	2947	3 of targeted buildings, equipment and operations; (ii)
2948	2948	4 eligible energy efficiency measures; and (iii)
2949	2949	5 expected energy savings, itemized by technology. If
2950	2950	6 the subparagraph (D) audit report identifies that the
2951	2951	7 customer currently utilizes the best available energy
2952	2952	8 efficient technology, equipment, programs, and
2953	2953	9 operations, the customer may provide a statement that
2954	2954	10 more efficient technology, equipment, programs, and
2955	2955	11 operations are not reasonably available as a means of
2956	2956	12 satisfying this subparagraph (E); and
2957	2957	13 (F) the effective date of the opt out, which will
2958	2958	14 be the next January 1 following notice of the opt out.
2959	2959	15 (3) Upon receipt of a properly and timely noticed
2960	2960	16 request for opt out submitted by an eligible large private
2961	2961	17 energy customer, the retail electric utility shall grant
2962	2962	18 the request, file the request with the Commission and,
2963	2963	19 beginning January 1 of the following year, the opted out
2964	2964	20 customer shall no longer be assessed the costs of the plan
2965	2965	21 and shall be prohibited from participating in that 4-year
2966	2966	22 plan cycle to give the retail utility the certainty to
2967	2967	23 design program plan proposals.
2968	2968	24 (4) Upon a customer's election to opt out under
2969	2969	25 paragraphs (1) and (2) of this subsection (l) and
2970	2970	26 commencing on the effective date of said opt out, the
2971	2971
2972	2972
2973	2973
2974	2974
2975	2975
2976	2976	SB2552 - 82 - LRB103 31416 LNS 59082 b
2977	2977
2978	2978
2979	2979	SB2552- 83 -LRB103 31416 LNS 59082 b SB2552 - 83 - LRB103 31416 LNS 59082 b
2980	2980	SB2552 - 83 - LRB103 31416 LNS 59082 b
2981	2981	1 account properly identified in the customer's notice under
2982	2982	2 paragraph (2) shall not be subject to any cost recovery
2983	2983	3 and shall not be eligible to participate in, or directly
2984	2984	4 benefit from, compliance with energy efficiency cumulative
2985	2985	5 persisting savings requirements under subsections (a)
2986	2986	6 through (j).
2987	2987	7 (5) A utility's cumulative persisting annual savings
2988	2988	8 targets will exclude any opted out load.
2989	2989	9 (6) The request to opt out is only valid for the
2990	2990	10 requested plan cycle. An eligible large private energy
2991	2991	11 customer must also request to opt out for future energy
2992	2992	12 plan cycles, otherwise the customer will be included in
2993	2993	13 the future energy plan cycle.
2994	2994	14 (m) Notwithstanding the requirements of this Section, as
2995	2995	15 part of a proceeding to approve a multi-year plan under
2996	2996	16 subsections (f) and (g) of this Section if the multi-year plan
2997	2997	17 has been designed to maximize savings, but does not meet the
2998	2998	18 cost cap limitations of this Section, the Commission shall
2999	2999	19 reduce the amount of energy efficiency measures implemented
3000	3000	20 for any single year, and whose costs are recovered under
3001	3001	21 subsection (d) of this Section, by an amount necessary to
3002	3002	22 limit the estimated average net increase due to the cost of the
3003	3003	23 measures to no more than
3004	3004	24 (1) 3.5% for each of the 4 years beginning January 1,
3005	3005	25 2018,
3006	3006	26 (2) (blank),
3007	3007
3008	3008
3009	3009
3010	3010
3011	3011
3012	3012	SB2552 - 83 - LRB103 31416 LNS 59082 b
3013	3013
3014	3014
3015	3015	SB2552- 84 -LRB103 31416 LNS 59082 b SB2552 - 84 - LRB103 31416 LNS 59082 b
3016	3016	SB2552 - 84 - LRB103 31416 LNS 59082 b
3017	3017	1 (3) 4% for each of the 4 years beginning January 1,
3018	3018	2 2022,
3019	3019	3 (4) 4.25% for the 4 years beginning January 1, 2026,
3020	3020	4 and
3021	3021	5 (5) 4.25% plus an increase sufficient to account for
3022	3022	6 the rate of inflation between January 1, 2026 and January
3023	3023	7 1 of the first year of each subsequent 4-year plan cycle,
3024	3024	8 of the average amount paid per kilowatthour by residential
3025	3025	9 eligible retail customers during calendar year 2015. An
3026	3026	10 electric utility may plan to spend up to 10% more in any year
3027	3027	11 during an applicable multi-year plan period to
3028	3028	12 cost-effectively achieve additional savings so long as the
3029	3029	13 average over the applicable multi-year plan period does not
3030	3030	14 exceed the percentages defined in items (1) through (5). To
3031	3031	15 determine the total amount that may be spent by an electric
3032	3032	16 utility in any single year, the applicable percentage of the
3033	3033	17 average amount paid per kilowatthour shall be multiplied by
3034	3034	18 the total amount of energy delivered by such electric utility
3035	3035	19 in the calendar year 2015, adjusted to reflect the proportion
3036	3036	20 of the utility's load attributable to customers that have
3037	3037	21 opted out of subsections (a) through (j) of this Section under
3038	3038	22 subsection (l) of this Section. For purposes of this
3039	3039	23 subsection (m), the amount paid per kilowatthour includes,
3040	3040	24 without limitation, estimated amounts paid for supply,
3041	3041	25 transmission, distribution, surcharges, and add-on taxes. For
3042	3042	26 purposes of this Section, "eligible retail customers" shall
3043	3043
3044	3044
3045	3045
3046	3046
3047	3047
3048	3048	SB2552 - 84 - LRB103 31416 LNS 59082 b
3049	3049
3050	3050
3051	3051	SB2552- 85 -LRB103 31416 LNS 59082 b SB2552 - 85 - LRB103 31416 LNS 59082 b
3052	3052	SB2552 - 85 - LRB103 31416 LNS 59082 b
3053	3053	1 have the meaning set forth in Section 16-111.5 of this Act.
3054	3054	2 Once the Commission has approved a plan under subsections (f)
3055	3055	3 and (g) of this Section, no subsequent rate impact
3056	3056	4 determinations shall be made.
3057	3057	5 (n) A utility shall take advantage of the efficiencies
3058	3058	6 available through existing Illinois Home Weatherization
3059	3059	7 Assistance Program infrastructure and services, such as
3060	3060	8 enrollment, marketing, quality assurance and implementation,
3061	3061	9 which can reduce the need for similar services at a lower cost
3062	3062	10 than utility-only programs, subject to capacity constraints at
3063	3063	11 community action agencies, for both single-family and
3064	3064	12 multifamily weatherization services, to the extent Illinois
3065	3065	13 Home Weatherization Assistance Program community action
3066	3066	14 agencies provide multifamily services. A utility's plan shall
3067	3067	15 demonstrate that in formulating annual weatherization budgets,
3068	3068	16 it has sought input and coordination with community action
3069	3069	17 agencies regarding agencies' capacity to expand and maximize
3070	3070	18 Illinois Home Weatherization Assistance Program delivery using
3071	3071	19 the ratepayer dollars collected under this Section.
3072	3072	20 (Source: P.A. 101-81, eff. 7-12-19; 102-662, eff. 9-15-21;
3073	3073	21 revised 2-28-22.)
3074	3074	22 (220 ILCS 5/16-107.8 new)
3075	3075	23 Sec. 16-107.8. Residential time-of-use pricing.
3076	3076	24 (a) The General Assembly finds that time-of-use rates and
3077	3077	25 pricing plans can lower energy costs for consumers and reduce
3078	3078
3079	3079
3080	3080
3081	3081
3082	3082
3083	3083	SB2552 - 85 - LRB103 31416 LNS 59082 b
3084	3084
3085	3085
3086	3086	SB2552- 86 -LRB103 31416 LNS 59082 b SB2552 - 86 - LRB103 31416 LNS 59082 b
3087	3087	SB2552 - 86 - LRB103 31416 LNS 59082 b
3088	3088	1 grid costs as well as help the State achieve its energy policy
3089	3089	2 goals by improving load shape, encouraging energy
3090	3090	3 conservation, and shifting usage away from periods where
3091	3091	4 fossil fuels are used to meet peak demand. Further, by
3092	3092	5 providing consumers information relating the costs of service
3093	3093	6 to the time of energy usage, time-of-use rates can help
3094	3094	7 consumers reduce their energy bills by using electricity when
3095	3095	8 it is less costly. Time-of-use rates can help allocate
3096	3096	9 electricity system costs more accurately and thus equitably to
3097	3097	10 those who cause costs. Such rates can reduce the need for
3098	3098	11 ramping resources and increase the grid's ability to
3099	3099	12 cost-effectively integrate greater quantities of variable
3100	3100	13 renewable energy and distributed energy resources.
3101	3101	14 (b) An electric utility that has a tariff approved under
3102	3102	15 subsection (d) of Section 16-108.18 within one year of this
3103	3103	16 amendatory Act of the 103rd General Assembly shall also offer
3104	3104	17 at least one market-based, time-of-use rate for eligible
3105	3105	18 retail customers that choose to take power and energy supply
3106	3106	19 service from the utility. If the utility has a pending request
3107	3107	20 for approval of a Multi-Year Integrated Grid Plan, the utility
3108	3108	21 shall update its filing in that docket to reflect the likely
3109	3109	22 impacts of the time-of-use rate offering. The utility shall
3110	3110	23 file its time-of-use rate tariff no later than 120 days after
3111	3111	24 the effective date of this amendatory Act of the 103rd General
3112	3112	25 Assembly, and each utility subject to this requirement shall
3113	3113	26 implement the requirements of this subsection by filing a
3114	3114
3115	3115
3116	3116
3117	3117
3118	3118
3119	3119	SB2552 - 86 - LRB103 31416 LNS 59082 b
3120	3120
3121	3121
3122	3122	SB2552- 87 -LRB103 31416 LNS 59082 b SB2552 - 87 - LRB103 31416 LNS 59082 b
3123	3123	SB2552 - 87 - LRB103 31416 LNS 59082 b
3124	3124	1 tariff with the Commission. The tariff or tariffs shall be
3125	3125	2 subject to the following provisions:
3126	3126	3 (1) If more than one tariff is proposed, at least one
3127	3127	4 tariff shall include at least 3 time blocks: a peak time
3128	3128	5 block, defined as 2 p.m. to 7 p.m. on nonholiday weekdays
3129	3129	6 or the 5 consecutive hours best reflecting the highest
3130	3130	7 system peak demands; an off-peak time block, defined as 10
3131	3131	8 a.m. to 2 p.m. and 7 p.m. to 10 p.m. on nonholiday weekdays
3132	3132	9 or the 7 total hours occurring in some combination before
3133	3133	10 and after the peak period, which reflect the next highest
3134	3134	11 system peak demands; and a super-off-peak time block,
3135	3135	12 defined as all other hours and including weekend days.
3136	3136	13 (2) This tariff shall strive to achieve price ratios
3137	3137	14 between the blocks as follows: the super-off-peak time
3138	3138	15 block price shall be no less than zero but no greater than
3139	3139	16 one-half of the price of the off-peak time block price,
3140	3140	17 and the off-peak time block price shall be no greater than
3141	3141	18 one-half of the price of the peak time block price.
3142	3142	19 (3) The time-of-use rate shall include the costs of
3143	3143	20 electric capacity, costs of transmission services, and
3144	3144	21 charges for network integration transmission service,
3145	3145	22 transmission enhancement, and locational reliability, as
3146	3146	23 these terms are defined in the PJM Interconnection LLC
3147	3147	24 Open Access Transmission Tariff and manuals on January 1,
3148	3148	25 2019, within the prices for each time block and seasonal
3149	3149	26 block in which the associated costs generally are
3150	3150
3151	3151
3152	3152
3153	3153
3154	3154
3155	3155	SB2552 - 87 - LRB103 31416 LNS 59082 b
3156	3156
3157	3157
3158	3158	SB2552- 88 -LRB103 31416 LNS 59082 b SB2552 - 88 - LRB103 31416 LNS 59082 b
3159	3159	SB2552 - 88 - LRB103 31416 LNS 59082 b
3160	3160	1 incurred. If the Open Access Transmission Tariff or
3161	3161	2 manuals subsequently renames those terms, the services
3162	3162	3 reflected under those terms shall continue to be included
3163	3163	4 in the time-of-use rate described in this paragraph.
3164	3164	5 (4) Adjustments to the charges set by the tariff may
3165	3165	6 be made on a semi-annual basis, as follows: each May and
3166	3166	7 November, the utility shall submit to the Commission,
3167	3167	8 through an informational filing, its updated charges, and
3168	3168	9 such charges shall take effect beginning with the June
3169	3169	10 monthly billing period and December monthly billing
3170	3170	11 period, respectively.
3171	3171	12 (5) The tariff shall include a purchased energy
3172	3172	13 adjustment to fully recover the supply costs for the
3173	3173	14 customers taking service under this tariff.
3174	3174	15 As used in this subsection, "eligible retail customers"
3175	3175	16 includes, but is not limited to, customers participating in
3176	3176	17 net electricity metering under the terms of Section 16-107.5.
3177	3177	18 (c) The Commission shall, after notice and hearing,
3178	3178	19 approve the tariff or tariffs with modifications the
3179	3179	20 Commission finds necessary to improve the program design,
3180	3180	21 customer participation in the program, or coordination with
3181	3181	22 existing utility pricing programs, energy efficiency programs,
3182	3182	23 demand response programs, and any other programs supporting
3183	3183	24 State energy policy goals and the integration of distributed
3184	3184	25 energy resources. The Commission shall also consider how the
3185	3185	26 proposed time-of-use rate design reflects the system costs and
3186	3186
3187	3187
3188	3188
3189	3189
3190	3190
3191	3191	SB2552 - 88 - LRB103 31416 LNS 59082 b
3192	3192
3193	3193
3194	3194	SB2552- 89 -LRB103 31416 LNS 59082 b SB2552 - 89 - LRB103 31416 LNS 59082 b
3195	3195	SB2552 - 89 - LRB103 31416 LNS 59082 b
3196	3196	1 usage patterns of the utility. A proceeding under this
3197	3197	2 subsection may not exceed 120 days in length.
3198	3198	3 (d) If the Commission issues an order pursuant to this
3199	3199	4 subsection, the affected electric utility shall contract with
3200	3200	5 an entity not affiliated with the electric utility to serve as
3201	3201	6 a program administrator to develop and implement a program to
3202	3202	7 provide consumer outreach, enrollment, and education
3203	3203	8 concerning time-of-use pricing and to establish and administer
3204	3204	9 an information system and technical and other customer
3205	3205	10 assistance that is necessary to enable customers to manage
3206	3206	11 electricity use. The program administrator: (i) shall be
3207	3207	12 selected and compensated by the electric utility, subject to
3208	3208	13 Commission approval; (ii) shall have demonstrated technical
3209	3209	14 and managerial competence in the development and
3210	3210	15 administration of demand management programs; and (iii) may
3211	3211	16 develop and implement risk management, energy efficiency, and
3212	3212	17 other services related to energy use management for which the
3213	3213	18 program administrator shall be compensated by participants in
3214	3214	19 the program receiving such services. The electric utility
3215	3215	20 shall provide the program administrator with all information
3216	3216	21 and assistance necessary to perform the program
3217	3217	22 administrator's duties, including, but not limited to,
3218	3218	23 customer, account, and energy use data. The electric utility
3219	3219	24 shall permit the program administrator to include inserts in
3220	3220	25 residential customer bills 2 times per year to assist with
3221	3221	26 customer outreach and enrollment. The program administrator
3222	3222
3223	3223
3224	3224
3225	3225
3226	3226
3227	3227	SB2552 - 89 - LRB103 31416 LNS 59082 b
3228	3228
3229	3229
3230	3230	SB2552- 90 -LRB103 31416 LNS 59082 b SB2552 - 90 - LRB103 31416 LNS 59082 b
3231	3231	SB2552 - 90 - LRB103 31416 LNS 59082 b
3232	3232	1 shall submit an annual report to the electric utility no later
3233	3233	2 than April 1 of each year describing the operation and results
3234	3234	3 of the program, including information concerning the number
3235	3235	4 and types of customers using the program, changes in
3236	3236	5 customers' energy use patterns, an assessment of the value of
3237	3237	6 the program to both participants and nonparticipants, and
3238	3238	7 recommendations concerning modification of the program and the
3239	3239	8 tariff or tariffs filed under this Section. This report shall
3240	3240	9 be filed by the electric utility with the Commission within 30
3241	3241	10 days after receipt and shall be available to the public on the
3242	3242	11 Commission's website.
3243	3243	12 (e) Once the tariff or tariffs has been in effect for 12
3244	3244	13 months, the Commission may, upon complaint, petition, or its
3245	3245	14 own initiative, open a proceeding to investigate whether
3246	3246	15 changes or modifications to the tariff or tariffs, program
3247	3247	16 administration and any other program design element is
3248	3248	17 necessary to achieve the goals described in subsection (a) and
3249	3249	18 to shifting usage away from periods where fossil fuels are
3250	3250	19 used to meet peak demand and realign usage to periods when
3251	3251	20 renewable generation is available. Such a proceeding may not
3252	3252	21 last more than 180 days from the date upon which the
3253	3253	22 investigation is opened by Commission order. Thereafter, the
3254	3254	23 Commission may, upon complaint, petition, or its own
3255	3255	24 initiative, open a proceeding to investigate changes or
3256	3256	25 modifications to the tariff or tariffs at any time the
3257	3257	26 Commission deems reasonable in order to achieve these
3258	3258
3259	3259
3260	3260
3261	3261
3262	3262
3263	3263	SB2552 - 90 - LRB103 31416 LNS 59082 b
3264	3264
3265	3265
3266	3266	SB2552- 91 -LRB103 31416 LNS 59082 b SB2552 - 91 - LRB103 31416 LNS 59082 b
3267	3267	SB2552 - 91 - LRB103 31416 LNS 59082 b
3268	3268	1 objectives.
3269	3269	2 (f) An electric utility shall be entitled to recover
3270	3270	3 reasonable costs incurred in complying with this Section, if
3271	3271	4 the recovery of the costs is fairly apportioned among its
3272	3272	5 residential customers.
3273	3273	6 (g) The electric utility's tariff or tariffs filed
3274	3274	7 pursuant to this Section shall be subject to the provisions of
3275	3275	8 Article IX of this Act insofar as they do not conflict with
3276	3276	9 this Section.
3277	3277	10 (h) This Section does not apply to any electric utility
3278	3278	11 providing service to 100,000 or fewer customers.
3279	3279	12 (220 ILCS 5/16-111.5)
3280	3280	13 Sec. 16-111.5. Provisions relating to procurement.
3281	3281	14 (a) An electric utility that on December 31, 2005 served
3282	3282	15 at least 100,000 customers in Illinois shall procure power and
3283	3283	16 energy for its eligible retail customers in accordance with
3284	3284	17 the applicable provisions set forth in Section 1-75 of the
3285	3285	18 Illinois Power Agency Act and this Section. Beginning with the
3286	3286	19 delivery year commencing on June 1, 2017, such electric
3287	3287	20 utility shall also procure zero emission credits from zero
3288	3288	21 emission facilities in accordance with the applicable
3289	3289	22 provisions set forth in Section 1-75 of the Illinois Power
3290	3290	23 Agency Act, and, for years beginning on or after June 1, 2017,
3291	3291	24 the utility shall procure renewable energy resources in
3292	3292	25 accordance with the applicable provisions set forth in Section
3293	3293
3294	3294
3295	3295
3296	3296
3297	3297
3298	3298	SB2552 - 91 - LRB103 31416 LNS 59082 b
3299	3299
3300	3300
3301	3301	SB2552- 92 -LRB103 31416 LNS 59082 b SB2552 - 92 - LRB103 31416 LNS 59082 b
3302	3302	SB2552 - 92 - LRB103 31416 LNS 59082 b
3303	3303	1 1-75 of the Illinois Power Agency Act and this Section.
3304	3304	2 Beginning with the delivery year commencing on June 1, 2022,
3305	3305	3 an electric utility serving over 3,000,000 customers shall
3306	3306	4 also procure carbon mitigation credits from carbon-free energy
3307	3307	5 resources in accordance with the applicable provisions set
3308	3308	6 forth in Section 1-75 of the Illinois Power Agency Act and this
3309	3309	7 Section. A small multi-jurisdictional electric utility that on
3310	3310	8 December 31, 2005 served less than 100,000 customers in
3311	3311	9 Illinois may elect to procure power and energy for all or a
3312	3312	10 portion of its eligible Illinois retail customers in
3313	3313	11 accordance with the applicable provisions set forth in this
3314	3314	12 Section and Section 1-75 of the Illinois Power Agency Act.
3315	3315	13 This Section shall not apply to a small multi-jurisdictional
3316	3316	14 utility until such time as a small multi-jurisdictional
3317	3317	15 utility requests the Illinois Power Agency to prepare a
3318	3318	16 procurement plan for its eligible retail customers. "Eligible
3319	3319	17 retail customers" for the purposes of this Section means those
3320	3320	18 retail customers that purchase power and energy from the
3321	3321	19 electric utility under fixed-price bundled service tariffs,
3322	3322	20 other than those retail customers whose service is declared or
3323	3323	21 deemed competitive under Section 16-113 and those other
3324	3324	22 customer groups specified in this Section, including
3325	3325	23 self-generating customers, customers electing hourly pricing,
3326	3326	24 or those customers who are otherwise ineligible for
3327	3327	25 fixed-price bundled tariff service. For those customers that
3328	3328	26 are excluded from the procurement plan's electric supply
3329	3329
3330	3330
3331	3331
3332	3332
3333	3333
3334	3334	SB2552 - 92 - LRB103 31416 LNS 59082 b
3335	3335
3336	3336
3337	3337	SB2552- 93 -LRB103 31416 LNS 59082 b SB2552 - 93 - LRB103 31416 LNS 59082 b
3338	3338	SB2552 - 93 - LRB103 31416 LNS 59082 b
3339	3339	1 service requirements, and the utility shall procure any supply
3340	3340	2 requirements, including capacity, ancillary services, and
3341	3341	3 hourly priced energy, in the applicable markets as needed to
3342	3342	4 serve those customers, provided that the utility may include
3343	3343	5 in its procurement plan load requirements for the load that is
3344	3344	6 associated with those retail customers whose service has been
3345	3345	7 declared or deemed competitive pursuant to Section 16-113 of
3346	3346	8 this Act to the extent that those customers are purchasing
3347	3347	9 power and energy during one of the transition periods
3348	3348	10 identified in subsection (b) of Section 16-113 of this Act.
3349	3349	11 (b) A procurement plan shall be prepared for each electric
3350	3350	12 utility consistent with the applicable requirements of the
3351	3351	13 Illinois Power Agency Act and this Section. For purposes of
3352	3352	14 this Section, Illinois electric utilities that are affiliated
3353	3353	15 by virtue of a common parent company are considered to be a
3354	3354	16 single electric utility. Small multi-jurisdictional utilities
3355	3355	17 may request a procurement plan for a portion of or all of its
3356	3356	18 Illinois load. Each procurement plan shall analyze the
3357	3357	19 projected balance of supply and demand for those retail
3358	3358	20 customers to be included in the plan's electric supply service
3359	3359	21 requirements over a 5-year period, with the first planning
3360	3360	22 year beginning on June 1 of the year following the year in
3361	3361	23 which the plan is filed. The plan shall specifically identify
3362	3362	24 the wholesale products to be procured following plan approval,
3363	3363	25 and shall follow all the requirements set forth in the Public
3364	3364	26 Utilities Act and all applicable State and federal laws,
3365	3365
3366	3366
3367	3367
3368	3368
3369	3369
3370	3370	SB2552 - 93 - LRB103 31416 LNS 59082 b
3371	3371
3372	3372
3373	3373	SB2552- 94 -LRB103 31416 LNS 59082 b SB2552 - 94 - LRB103 31416 LNS 59082 b
3374	3374	SB2552 - 94 - LRB103 31416 LNS 59082 b
3375	3375	1 statutes, rules, or regulations, as well as Commission orders.
3376	3376	2 Nothing in this Section precludes consideration of contracts
3377	3377	3 longer than 5 years and related forecast data. Unless
3378	3378	4 specified otherwise in this Section, in the procurement plan
3379	3379	5 or in the implementing tariff, any procurement occurring in
3380	3380	6 accordance with this plan shall be competitively bid through a
3381	3381	7 request for proposals process. Approval and implementation of
3382	3382	8 the procurement plan shall be subject to review and approval
3383	3383	9 by the Commission according to the provisions set forth in
3384	3384	10 this Section. A procurement plan shall include each of the
3385	3385	11 following components:
3386	3386	12 (1) Hourly load analysis. This analysis shall include:
3387	3387	13 (i) multi-year historical analysis of hourly
3388	3388	14 loads;
3389	3389	15 (ii) switching trends and competitive retail
3390	3390	16 market analysis;
3391	3391	17 (iii) known or projected changes to future loads;
3392	3392	18 and
3393	3393	19 (iv) growth forecasts by customer class.
3394	3394	20 (2) Analysis of the impact of any demand side and
3395	3395	21 renewable energy initiatives. This analysis shall include:
3396	3396	22 (i) the impact of demand response programs and
3397	3397	23 energy efficiency programs, both current and
3398	3398	24 projected; for small multi-jurisdictional utilities,
3399	3399	25 the impact of demand response and energy efficiency
3400	3400	26 programs approved pursuant to Section 8-408 of this
3401	3401
3402	3402
3403	3403
3404	3404
3405	3405
3406	3406	SB2552 - 94 - LRB103 31416 LNS 59082 b
3407	3407
3408	3408
3409	3409	SB2552- 95 -LRB103 31416 LNS 59082 b SB2552 - 95 - LRB103 31416 LNS 59082 b
3410	3410	SB2552 - 95 - LRB103 31416 LNS 59082 b
3411	3411	1 Act, both current and projected; and
3412	3412	2 (ii) supply side needs that are projected to be
3413	3413	3 offset by purchases of renewable energy resources, if
3414	3414	4 any.
3415	3415	5 (3) A plan for meeting the expected load requirements
3416	3416	6 that will not be met through preexisting contracts. This
3417	3417	7 plan shall include:
3418	3418	8 (i) definitions of the different Illinois retail
3419	3419	9 customer classes for which supply is being purchased;
3420	3420	10 (ii) the proposed mix of demand-response products
3421	3421	11 for which contracts will be executed during the next
3422	3422	12 year. For small multi-jurisdictional electric
3423	3423	13 utilities that on December 31, 2005 served fewer than
3424	3424	14 100,000 customers in Illinois, these shall be defined
3425	3425	15 as demand-response products offered in an energy
3426	3426	16 efficiency plan approved pursuant to Section 8-408 of
3427	3427	17 this Act. The cost-effective demand-response measures
3428	3428	18 shall be procured whenever the cost is lower than
3429	3429	19 procuring comparable capacity products, provided that
3430	3430	20 such products shall:
3431	3431	21 (A) be procured by a demand-response provider
3432	3432	22 from those retail customers included in the plan's
3433	3433	23 electric supply service requirements;
3434	3434	24 (B) at least satisfy the demand-response
3435	3435	25 requirements of the regional transmission
3436	3436	26 organization market in which the utility's service
3437	3437
3438	3438
3439	3439
3440	3440
3441	3441
3442	3442	SB2552 - 95 - LRB103 31416 LNS 59082 b
3443	3443
3444	3444
3445	3445	SB2552- 96 -LRB103 31416 LNS 59082 b SB2552 - 96 - LRB103 31416 LNS 59082 b
3446	3446	SB2552 - 96 - LRB103 31416 LNS 59082 b
3447	3447	1 territory is located, including, but not limited
3448	3448	2 to, any applicable capacity or dispatch
3449	3449	3 requirements;
3450	3450	4 (C) provide for customers' participation in
3451	3451	5 the stream of benefits produced by the
3452	3452	6 demand-response products;
3453	3453	7 (D) provide for reimbursement by the
3454	3454	8 demand-response provider of the utility for any
3455	3455	9 costs incurred as a result of the failure of the
3456	3456	10 supplier of such products to perform its
3457	3457	11 obligations thereunder; and
3458	3458	12 (E) meet the same credit requirements as apply
3459	3459	13 to suppliers of capacity, in the applicable
3460	3460	14 regional transmission organization market;
3461	3461	15 (iii) monthly forecasted system supply
3462	3462	16 requirements, including expected minimum, maximum, and
3463	3463	17 average values for the planning period;
3464	3464	18 (iv) the proposed mix and selection of standard
3465	3465	19 wholesale products for which contracts will be
3466	3466	20 executed during the next year, separately or in
3467	3467	21 combination, to meet that portion of its load
3468	3468	22 requirements not met through pre-existing contracts,
3469	3469	23 including but not limited to monthly 5 x 16 peak period
3470	3470	24 block energy, monthly off-peak wrap energy, monthly 7
3471	3471	25 x 24 energy, annual 5 x 16 energy, other standardized
3472	3472	26 energy or capacity products designed to provide
3473	3473
3474	3474
3475	3475
3476	3476
3477	3477
3478	3478	SB2552 - 96 - LRB103 31416 LNS 59082 b
3479	3479
3480	3480
3481	3481	SB2552- 97 -LRB103 31416 LNS 59082 b SB2552 - 97 - LRB103 31416 LNS 59082 b
3482	3482	SB2552 - 97 - LRB103 31416 LNS 59082 b
3483	3483	1 eligible retail customer benefits from commercially
3484	3484	2 deployed advanced technologies including but not
3485	3485	3 limited to high voltage direct current converter
3486	3486	4 stations, as such term is defined in Section 1-10 of
3487	3487	5 the Illinois Power Agency Act, whether or not such
3488	3488	6 product is currently available in wholesale markets,
3489	3489	7 annual off-peak wrap energy, annual 7 x 24 energy,
3490	3490	8 monthly capacity, annual capacity, peak load capacity
3491	3491	9 obligations, capacity purchase plan, and ancillary
3492	3492	10 services;
3493	3493	11 (v) proposed term structures for each wholesale
3494	3494	12 product type included in the proposed procurement plan
3495	3495	13 portfolio of products; and
3496	3496	14 (vi) an assessment of the price risk, load
3497	3497	15 uncertainty, and other factors that are associated
3498	3498	16 with the proposed procurement plan; this assessment,
3499	3499	17 to the extent possible, shall include an analysis of
3500	3500	18 the following factors: contract terms, time frames for
3501	3501	19 securing products or services, fuel costs, weather
3502	3502	20 patterns, transmission costs, market conditions, and
3503	3503	21 the governmental regulatory environment; the proposed
3504	3504	22 procurement plan shall also identify alternatives for
3505	3505	23 those portfolio measures that are identified as having
3506	3506	24 significant price risk and mitigation in the form of
3507	3507	25 additional retail customer and ratepayer price,
3508	3508	26 reliability, and environmental benefits from
3509	3509
3510	3510
3511	3511
3512	3512
3513	3513
3514	3514	SB2552 - 97 - LRB103 31416 LNS 59082 b
3515	3515
3516	3516
3517	3517	SB2552- 98 -LRB103 31416 LNS 59082 b SB2552 - 98 - LRB103 31416 LNS 59082 b
3518	3518	SB2552 - 98 - LRB103 31416 LNS 59082 b
3519	3519	1 standardized energy products delivered from
3520	3520	2 commercially deployed advanced technologies,
3521	3521	3 including, but not limited to, high voltage direct
3522	3522	4 current converter stations, as such term is defined in
3523	3523	5 Section 1-10 of the Illinois Power Agency Act, whether
3524	3524	6 or not such product is currently available in
3525	3525	7 wholesale markets.
3526	3526	8 (4) Proposed procedures for balancing loads. The
3527	3527	9 procurement plan shall include, for load requirements
3528	3528	10 included in the procurement plan, the process for (i)
3529	3529	11 hourly balancing of supply and demand and (ii) the
3530	3530	12 criteria for portfolio re-balancing in the event of
3531	3531	13 significant shifts in load.
3532	3532	14 (5) Long-Term Renewable Resources Procurement Plan.
3533	3533	15 The Agency shall prepare a long-term renewable resources
3534	3534	16 procurement plan for the procurement of renewable energy
3535	3535	17 credits under Sections 1-56 and 1-75 of the Illinois Power
3536	3536	18 Agency Act for delivery beginning in the 2017 delivery
3537	3537	19 year.
3538	3538	20 (i) The initial long-term renewable resources
3539	3539	21 procurement plan and all subsequent revisions shall be
3540	3540	22 subject to review and approval by the Commission. For
3541	3541	23 the purposes of this Section, "delivery year" has the
3542	3542	24 same meaning as in Section 1-10 of the Illinois Power
3543	3543	25 Agency Act. For purposes of this Section, "Agency"
3544	3544	26 shall mean the Illinois Power Agency.
3545	3545
3546	3546
3547	3547
3548	3548
3549	3549
3550	3550	SB2552 - 98 - LRB103 31416 LNS 59082 b
3551	3551
3552	3552
3553	3553	SB2552- 99 -LRB103 31416 LNS 59082 b SB2552 - 99 - LRB103 31416 LNS 59082 b
3554	3554	SB2552 - 99 - LRB103 31416 LNS 59082 b
3555	3555	1 (ii) The long-term renewable resources planning
3556	3556	2 process shall be conducted as follows:
3557	3557	3 (A) Electric utilities shall provide a range
3558	3558	4 of load forecasts to the Illinois Power Agency
3559	3559	5 within 45 days of the Agency's request for
3560	3560	6 forecasts, which request shall specify the length
3561	3561	7 and conditions for the forecasts including, but
3562	3562	8 not limited to, the quantity of distributed
3563	3563	9 generation expected to be interconnected for each
3564	3564	10 year.
3565	3565	11 (B) The Agency shall publish for comment the
3566	3566	12 initial long-term renewable resources procurement
3567	3567	13 plan no later than 120 days after the effective
3568	3568	14 date of this amendatory Act of the 99th General
3569	3569	15 Assembly and shall review, and may revise, the
3570	3570	16 plan at least every 2 years thereafter. To the
3571	3571	17 extent practicable, the Agency shall review and
3572	3572	18 propose any revisions to the long-term renewable
3573	3573	19 energy resources procurement plan in conjunction
3574	3574	20 with the Agency's other planning and approval
3575	3575	21 processes conducted under this Section. The
3576	3576	22 initial long-term renewable resources procurement
3577	3577	23 plan shall:
3578	3578	24 (aa) Identify the procurement programs and
3579	3579	25 competitive procurement events consistent with
3580	3580	26 the applicable requirements of the Illinois
3581	3581
3582	3582
3583	3583
3584	3584
3585	3585
3586	3586	SB2552 - 99 - LRB103 31416 LNS 59082 b
3587	3587
3588	3588
3589	3589	SB2552- 100 -LRB103 31416 LNS 59082 b SB2552 - 100 - LRB103 31416 LNS 59082 b
3590	3590	SB2552 - 100 - LRB103 31416 LNS 59082 b
3591	3591	1 Power Agency Act and shall be designed to
3592	3592	2 achieve the goals set forth in subsection (c)
3593	3593	3 of Section 1-75 of that Act.
3594	3594	4 (bb) Include a schedule for procurements
3595	3595	5 for renewable energy credits from
3596	3596	6 utility-scale wind projects, utility-scale
3597	3597	7 solar projects, and brownfield site
3598	3598	8 photovoltaic projects consistent with
3599	3599	9 subparagraph (G) of paragraph (1) of
3600	3600	10 subsection (c) of Section 1-75 of the Illinois
3601	3601	11 Power Agency Act.
3602	3602	12 (cc) Identify the process whereby the
3603	3603	13 Agency will submit to the Commission for
3604	3604	14 review and approval the proposed contracts to
3605	3605	15 implement the programs required by such plan.
3606	3606	16 Copies of the initial long-term renewable
3607	3607	17 resources procurement plan and all subsequent
3608	3608	18 revisions shall be posted and made publicly
3609	3609	19 available on the Agency's and Commission's
3610	3610	20 websites, and copies shall also be provided to
3611	3611	21 each affected electric utility. An affected
3612	3612	22 utility and other interested parties shall have 45
3613	3613	23 days following the date of posting to provide
3614	3614	24 comment to the Agency on the initial long-term
3615	3615	25 renewable resources procurement plan and all
3616	3616	26 subsequent revisions. All comments submitted to
3617	3617
3618	3618
3619	3619
3620	3620
3621	3621
3622	3622	SB2552 - 100 - LRB103 31416 LNS 59082 b
3623	3623
3624	3624
3625	3625	SB2552- 101 -LRB103 31416 LNS 59082 b SB2552 - 101 - LRB103 31416 LNS 59082 b
3626	3626	SB2552 - 101 - LRB103 31416 LNS 59082 b
3627	3627	1 the Agency shall be specific, supported by data or
3628	3628	2 other detailed analyses, and, if objecting to all
3629	3629	3 or a portion of the procurement plan, accompanied
3630	3630	4 by specific alternative wording or proposals. All
3631	3631	5 comments shall be posted on the Agency's and
3632	3632	6 Commission's websites. During this 45-day comment
3633	3633	7 period, the Agency shall hold at least one public
3634	3634	8 hearing within each utility's service area that is
3635	3635	9 subject to the requirements of this paragraph (5)
3636	3636	10 for the purpose of receiving public comment.
3637	3637	11 Within 21 days following the end of the 45-day
3638	3638	12 review period, the Agency may revise the long-term
3639	3639	13 renewable resources procurement plan based on the
3640	3640	14 comments received and shall file the plan with the
3641	3641	15 Commission for review and approval.
3642	3642	16 (C) Within 14 days after the filing of the
3643	3643	17 initial long-term renewable resources procurement
3644	3644	18 plan or any subsequent revisions, any person
3645	3645	19 objecting to the plan may file an objection with
3646	3646	20 the Commission. Within 21 days after the filing of
3647	3647	21 the plan, the Commission shall determine whether a
3648	3648	22 hearing is necessary. The Commission shall enter
3649	3649	23 its order confirming or modifying the initial
3650	3650	24 long-term renewable resources procurement plan or
3651	3651	25 any subsequent revisions within 120 days after the
3652	3652	26 filing of the plan by the Illinois Power Agency.
3653	3653
3654	3654
3655	3655
3656	3656
3657	3657
3658	3658	SB2552 - 101 - LRB103 31416 LNS 59082 b
3659	3659
3660	3660
3661	3661	SB2552- 102 -LRB103 31416 LNS 59082 b SB2552 - 102 - LRB103 31416 LNS 59082 b
3662	3662	SB2552 - 102 - LRB103 31416 LNS 59082 b
3663	3663	1 (D) The Commission shall approve the initial
3664	3664	2 long-term renewable resources procurement plan and
3665	3665	3 any subsequent revisions, including expressly the
3666	3666	4 forecast used in the plan and taking into account
3667	3667	5 that funding will be limited to the amount of
3668	3668	6 revenues actually collected by the utilities, if
3669	3669	7 the Commission determines that the plan will
3670	3670	8 reasonably and prudently accomplish the
3671	3671	9 requirements of Section 1-56 and subsection (c) of
3672	3672	10 Section 1-75 of the Illinois Power Agency Act. The
3673	3673	11 Commission shall also approve the process for the
3674	3674	12 submission, review, and approval of the proposed
3675	3675	13 contracts to procure renewable energy credits or
3676	3676	14 implement the programs authorized by the
3677	3677	15 Commission pursuant to a long-term renewable
3678	3678	16 resources procurement plan approved under this
3679	3679	17 Section.
3680	3680	18 In approving any long-term renewable resources
3681	3681	19 procurement plan after the effective date of this
3682	3682	20 amendatory Act of the 102nd General Assembly, the
3683	3683	21 Commission shall approve or modify the Agency's
3684	3684	22 proposal for minimum equity standards pursuant to
3685	3685	23 subsection (c-10) of Section 1-75 of the Illinois
3686	3686	24 Power Agency Act. The Commission shall consider
3687	3687	25 any analysis performed by the Agency in developing
3688	3688	26 its proposal, including past performance,
3689	3689
3690	3690
3691	3691
3692	3692
3693	3693
3694	3694	SB2552 - 102 - LRB103 31416 LNS 59082 b
3695	3695
3696	3696
3697	3697	SB2552- 103 -LRB103 31416 LNS 59082 b SB2552 - 103 - LRB103 31416 LNS 59082 b
3698	3698	SB2552 - 103 - LRB103 31416 LNS 59082 b
3699	3699	1 availability of equity eligible contractors, and
3700	3700	2 availability of equity eligible persons at the
3701	3701	3 time the long-term renewable resources procurement
3702	3702	4 plan is approved.
3703	3703	5 (iii) The Agency or third parties contracted by
3704	3704	6 the Agency shall implement all programs authorized by
3705	3705	7 the Commission in an approved long-term renewable
3706	3706	8 resources procurement plan without further review and
3707	3707	9 approval by the Commission. Third parties shall not
3708	3708	10 begin implementing any programs or receive any payment
3709	3709	11 under this Section until the Commission has approved
3710	3710	12 the contract or contracts under the process authorized
3711	3711	13 by the Commission in item (D) of subparagraph (ii) of
3712	3712	14 paragraph (5) of this subsection (b) and the third
3713	3713	15 party and the Agency or utility, as applicable, have
3714	3714	16 executed the contract. For those renewable energy
3715	3715	17 credits subject to procurement through a competitive
3716	3716	18 bid process under the plan or under the initial
3717	3717	19 forward procurements for wind and solar resources
3718	3718	20 described in subparagraph (G) of paragraph (1) of
3719	3719	21 subsection (c) of Section 1-75 of the Illinois Power
3720	3720	22 Agency Act, the Agency shall follow the procurement
3721	3721	23 process specified in the provisions relating to
3722	3722	24 electricity procurement in subsections (e) through (i)
3723	3723	25 of this Section.
3724	3724	26 (iv) An electric utility shall recover its costs
3725	3725
3726	3726
3727	3727
3728	3728
3729	3729
3730	3730	SB2552 - 103 - LRB103 31416 LNS 59082 b
3731	3731
3732	3732
3733	3733	SB2552- 104 -LRB103 31416 LNS 59082 b SB2552 - 104 - LRB103 31416 LNS 59082 b
3734	3734	SB2552 - 104 - LRB103 31416 LNS 59082 b
3735	3735	1 associated with the procurement of renewable energy
3736	3736	2 credits under this Section and pursuant to subsection
3737	3737	3 (c-5) of Section 1-75 of the Illinois Power Agency Act
3738	3738	4 through an automatic adjustment clause tariff under
3739	3739	5 subsection (k) or a tariff pursuant to subsection
3740	3740	6 (i-5), as applicable, of Section 16-108 of this Act. A
3741	3741	7 utility shall not be required to advance any payment
3742	3742	8 or pay any amounts under this Section that exceed the
3743	3743	9 actual amount of revenues collected by the utility
3744	3744	10 under paragraph (6) of subsection (c) of Section 1-75
3745	3745	11 of the Illinois Power Agency Act, subsection (c-5) of
3746	3746	12 Section 1-75 of the Illinois Power Agency Act, and
3747	3747	13 subsection (k) or subsection (i-5), as applicable, of
3748	3748	14 Section 16-108 of this Act, and contracts executed
3749	3749	15 under this Section shall expressly incorporate this
3750	3750	16 limitation.
3751	3751	17 (v) For the public interest, safety, and welfare,
3752	3752	18 the Agency and the Commission may adopt rules to carry
3753	3753	19 out the provisions of this Section on an emergency
3754	3754	20 basis immediately following the effective date of this
3755	3755	21 amendatory Act of the 99th General Assembly.
3756	3756	22 (vi) On or before July 1 of each year, the
3757	3757	23 Commission shall hold an informal hearing for the
3758	3758	24 purpose of receiving comments on the prior year's
3759	3759	25 procurement process and any recommendations for
3760	3760	26 change.
3761	3761
3762	3762
3763	3763
3764	3764
3765	3765
3766	3766	SB2552 - 104 - LRB103 31416 LNS 59082 b
3767	3767
3768	3768
3769	3769	SB2552- 105 -LRB103 31416 LNS 59082 b SB2552 - 105 - LRB103 31416 LNS 59082 b
3770	3770	SB2552 - 105 - LRB103 31416 LNS 59082 b
3771	3771	1 (b-5) An electric utility that as of January 1, 2019
3772	3772	2 served more than 300,000 retail customers in this State shall
3773	3773	3 purchase renewable energy credits from new renewable energy
3774	3774	4 facilities constructed at or adjacent to the sites of
3775	3775	5 coal-fueled electric generating facilities in this State in
3776	3776	6 accordance with subsection (c-5) of Section 1-75 of the
3777	3777	7 Illinois Power Agency Act. Except as expressly provided in
3778	3778	8 this Section, the plans and procedures for such procurements
3779	3779	9 shall not be included in the procurement plans provided for in
3780	3780	10 this Section, but rather shall be conducted and implemented
3781	3781	11 solely in accordance with subsection (c-5) of Section 1-75 of
3782	3782	12 the Illinois Power Agency Act.
3783	3783	13 (b-10) Capacity procurement.
3784	3784	14 (1) Definitions. For purposes of this subsection:
3785	3785	15 "Applicable Local Resource Zone" means the Zone 4
3786	3786	16 Local Resource Zone as set forth in the MISO Business
3787	3787	17 Practices Manual 011 Resource Adequacy, or any future
3788	3788	18 successor zone for the same geographic space, as
3789	3789	19 designated by MISO governing documents.
3790	3790	20 "Applicable locational deliverability area" means the
3791	3791	21 ComEd Locational Deliverability Area as set forth in the
3792	3792	22 PJM Manual, or any future successor area for the same
3793	3793	23 geographic space, as designated by PJM governing
3794	3794	24 documents.
3795	3795	25 "Electric cooperative" has the meaning given to that
3796	3796	26 term in Section 3-119.
3797	3797
3798	3798
3799	3799
3800	3800
3801	3801
3802	3802	SB2552 - 105 - LRB103 31416 LNS 59082 b
3803	3803
3804	3804
3805	3805	SB2552- 106 -LRB103 31416 LNS 59082 b SB2552 - 106 - LRB103 31416 LNS 59082 b
3806	3806	SB2552 - 106 - LRB103 31416 LNS 59082 b
3807	3807	1 "Fixed Resource Adequacy Plan", "Local Clearing
3808	3808	2 Requirement", "Local Resource Zone", "Planning Resource",
3809	3809	3 and "Planning Reserve Margin Requirement" have the
3810	3810	4 meanings given to those terms in the MISO Tariff,
3811	3811	5 including as they may apply to individual Load Serving
3812	3812	6 Entities, as applicable. For avoidance of doubt, these
3813	3813	7 terms shall be interpreted as multiple seasonal values
3814	3814	8 within a given delivery year if MISO's then-prevailing
3815	3815	9 resource adequacy construct has a seasonal component.
3816	3816	10 "Load Serving Entity" has the meaning given to that
3817	3817	11 term by the regional transmission organization where the
3818	3818	12 entity serves customers, either in the Midcontinent
3819	3819	13 Independent System Operator Tariff or PJM Interconnection,
3820	3820	14 LLC Reliability Assurance Agreement. For entities that
3821	3821	15 serve customers in multiple regional transmission
3822	3822	16 organizations, their operations within each regional
3823	3823	17 transmission organization shall be defined and subject to
3824	3824	18 the definition set forth by the relevant regional
3825	3825	19 transmission organization. "Load Serving Entity" includes
3826	3826	20 any electric utility as defined in Section 16-102 of the
3827	3827	21 Public Utilities Act or alternative retail electric
3828	3828	22 supplier as defined in Section 16-102 of the Public
3829	3829	23 Utilities Act. "Load Serving Entity" does not include
3830	3830	24 municipal utilities, electric cooperatives, and multistate
3831	3831	25 electric utilities.
3832	3832	26 "Midcontinent Independent System Operator" or "MISO"
3833	3833
3834	3834
3835	3835
3836	3836
3837	3837
3838	3838	SB2552 - 106 - LRB103 31416 LNS 59082 b
3839	3839
3840	3840
3841	3841	SB2552- 107 -LRB103 31416 LNS 59082 b SB2552 - 107 - LRB103 31416 LNS 59082 b
3842	3842	SB2552 - 107 - LRB103 31416 LNS 59082 b
3843	3843	1 means the Midcontinent Independent System Operator, Inc.,
3844	3844	2 or its successor approved by the federal Energy Regulatory
3845	3845	3 Commission as the regional transmission organization for
3846	3846	4 the Applicable Local Resource Zone.
3847	3847	5 "MISO Tariff" shall mean the open access transmission
3848	3848	6 and energy markets tariff of the Midcontinent Independent
3849	3849	7 System Operator, Inc. or its successor, as that tariff may
3850	3850	8 be updated from time to time.
3851	3851	9 "Municipal utility" has the meaning given to that term
3852	3852	10 in paragraph (1) of subsection (b) of Section 3-105.
3853	3853	11 "Peak Load Contribution" means the peak load
3854	3854	12 contribution, calculated in the manner specified in the
3855	3855	13 MISO Tariff, PJM Reliability Assurance Agreement, or other
3856	3856	14 applicable governing documents by a regional transmission
3857	3857	15 organization serving this State, of, as applicable, a
3858	3858	16 retail customer, a group of customers served by a Load
3859	3859	17 Serving Entity, or all customers of the Load Serving
3860	3860	18 Entity in the Applicable Local Resource Zone or Locational
3861	3861	19 Deliverability Area.
3862	3862	20 "PJM" means PJM Interconnection, LLC, or its successor
3863	3863	21 approved by the federal Energy Regulatory Commission.
3864	3864	22 "PJM Open Access Transmission Tariff", "PJM Operating
3865	3865	23 Agreement", "PJM Reliability Assurance Agreement", and
3866	3866	24 "PJM Manual" means the respective governing documents of
3867	3867	25 PJM Interconnection, LLC, or its successor, as it may be
3868	3868	26 updated from time to time.
3869	3869
3870	3870
3871	3871
3872	3872
3873	3873
3874	3874	SB2552 - 107 - LRB103 31416 LNS 59082 b
3875	3875
3876	3876
3877	3877	SB2552- 108 -LRB103 31416 LNS 59082 b SB2552 - 108 - LRB103 31416 LNS 59082 b
3878	3878	SB2552 - 108 - LRB103 31416 LNS 59082 b
3879	3879	1 "PJM Region Reliability Requirement" and "Internal
3880	3880	2 Resource Requirement" have the meaning given to those
3881	3881	3 terms in the PJM Manual on the Capacity Market. For
3882	3882	4 avoidance of doubt, this term shall be interpreted as
3883	3883	5 multiple seasonal values within a given delivery year if
3884	3884	6 PJM's then-prevailing resource adequacy construct has a
3885	3885	7 seasonal component.
3886	3886	8 "Qualified resources" means: (i) energy efficiency
3887	3887	9 measures that are implemented pursuant to plans approved
3888	3888	10 by the Commission under Sections 8-103, 8-103B, and 8-104;
3889	3889	11 (ii) wind, solar thermal energy, photovoltaic cells and
3890	3890	12 panels, and hydropower; (iii) demand response resources,
3891	3891	13 as long as they do not involve fossil fuel generation; and
3892	3892	14 (iv) energy storage, as long as it was charged entirely
3893	3893	15 with resources listed in item (ii).
3894	3894	16 (2) Capacity planning. The Agency shall conduct
3895	3895	17 capacity procurement events to procure a target portion of
3896	3896	18 capacity toward the Planning Reserve Margin Requirement
3897	3897	19 for all Load Serving Entities serving customers within the
3898	3898	20 Applicable Local Resource Zone and a target portion of
3899	3899	21 capacity toward the PJM Region Reliability Requirement for
3900	3900	22 Load Serving Entities serving customers within the
3901	3901	23 Applicable Locational Deliverability Area, for delivery
3902	3902	24 years as specified in this subsection.
3903	3903	25 (A) Capacity procurement mechanics.
3904	3904	26 (i) Capacity procurement schedules.
3905	3905
3906	3906
3907	3907
3908	3908
3909	3909
3910	3910	SB2552 - 108 - LRB103 31416 LNS 59082 b
3911	3911
3912	3912
3913	3913	SB2552- 109 -LRB103 31416 LNS 59082 b SB2552 - 109 - LRB103 31416 LNS 59082 b
3914	3914	SB2552 - 109 - LRB103 31416 LNS 59082 b
3915	3915	1 For the delivery year 2025-2026, the Agency
3916	3916	2 shall procure capacity that is sufficient to meet
3917	3917	3 at least 12% of the portion of the projected
3918	3918	4 Planning Reserve Margin Requirement for Load
3919	3919	5 Serving Entities serving customers within the
3920	3920	6 Applicable Local Resource Zone, and 12% of the PJM
3921	3921	7 Region Reliability Requirement for Load Serving
3922	3922	8 Entities serving customers within the Applicable
3923	3923	9 Locational Deliverability Area.
3924	3924	10 For the delivery year 2026-2027, the Agency
3925	3925	11 shall procure capacity that is sufficient to meet
3926	3926	12 at least 15% of the portion of the projected
3927	3927	13 Planning Reserve Margin Requirement for Load
3928	3928	14 Serving Entities serving customers within the
3929	3929	15 Applicable Local Resource Zone, and 15% of the PJM
3930	3930	16 Region Reliability Requirement for Load Serving
3931	3931	17 Entities serving customers within the Applicable
3932	3932	18 Locational Deliverability Area.
3933	3933	19 For the delivery year 2027-2028, the Agency
3934	3934	20 shall procure capacity that is sufficient to meet
3935	3935	21 at least 18% of the portion of the projected
3936	3936	22 Planning Reserve Margin Requirement for Load
3937	3937	23 Serving Entities serving customers within the
3938	3938	24 Applicable Local Resource Zone, and 18% of the PJM
3939	3939	25 Region Reliability Requirement for Load Serving
3940	3940	26 Entities serving customers within the Applicable
3941	3941
3942	3942
3943	3943
3944	3944
3945	3945
3946	3946	SB2552 - 109 - LRB103 31416 LNS 59082 b
3947	3947
3948	3948
3949	3949	SB2552- 110 -LRB103 31416 LNS 59082 b SB2552 - 110 - LRB103 31416 LNS 59082 b
3950	3950	SB2552 - 110 - LRB103 31416 LNS 59082 b
3951	3951	1 Locational Deliverability Area.
3952	3952	2 For the delivery year 2028-2029, the Agency
3953	3953	3 shall procure capacity that is sufficient to meet
3954	3954	4 at least 21% of the portion of the projected
3955	3955	5 Planning Reserve Margin Requirement for Load
3956	3956	6 Serving Entities serving customers within the
3957	3957	7 Applicable Local Resource Zone, and 21% of the PJM
3958	3958	8 Region Reliability Requirement for Load Serving
3959	3959	9 Entities serving customers within the Applicable
3960	3960	10 Locational Deliverability Area.
3961	3961	11 For the delivery year 2029-2030, the Agency
3962	3962	12 shall procure capacity that is sufficient to meet
3963	3963	13 at least 24% of the portion of the projected
3964	3964	14 Planning Reserve Margin Requirement for Load
3965	3965	15 Serving Entities serving customers within the
3966	3966	16 Applicable Local Resource Zone, and 24% of the PJM
3967	3967	17 Region Reliability Requirement for Load Serving
3968	3968	18 Entities serving customers within the Applicable
3969	3969	19 Locational Deliverability Area.
3970	3970	20 For the delivery year 2030-2031, the Agency
3971	3971	21 shall procure capacity that is sufficient to meet
3972	3972	22 at least 27% of the portion of the projected
3973	3973	23 Planning Reserve Margin Requirement for Load
3974	3974	24 Serving Entities serving customers within the
3975	3975	25 Applicable Local Resource Zone, and 27% of the PJM
3976	3976	26 Region Reliability Requirement for Load Serving
3977	3977
3978	3978
3979	3979
3980	3980
3981	3981
3982	3982	SB2552 - 110 - LRB103 31416 LNS 59082 b
3983	3983
3984	3984
3985	3985	SB2552- 111 -LRB103 31416 LNS 59082 b SB2552 - 111 - LRB103 31416 LNS 59082 b
3986	3986	SB2552 - 111 - LRB103 31416 LNS 59082 b
3987	3987	1 Entities serving customers within the Applicable
3988	3988	2 Locational Deliverability Area.
3989	3989	3 For the delivery year 2031-2032, the Agency
3990	3990	4 shall procure capacity that is sufficient to meet
3991	3991	5 at least 30% of the portion of the projected
3992	3992	6 Planning Reserve Margin Requirement for Load
3993	3993	7 Serving Entities serving customers within the
3994	3994	8 Applicable Local Resource Zone, and 30% of the PJM
3995	3995	9 Region Reliability Requirement for Load Serving
3996	3996	10 Entities serving customers within the Applicable
3997	3997	11 Locational Deliverability Area.
3998	3998	12 For the delivery year 2032-2033, the Agency
3999	3999	13 shall procure capacity that is sufficient to meet
4000	4000	14 at least 33% of the portion of the projected
4001	4001	15 Planning Reserve Margin Requirement for Load
4002	4002	16 Serving Entities serving customers within the
4003	4003	17 Applicable Local Resource Zone, and 33% of the PJM
4004	4004	18 Region Reliability Requirement for Load Serving
4005	4005	19 Entities serving customers within the Applicable
4006	4006	20 Locational Deliverability Area.
4007	4007	21 For the delivery year 2033-2034, the Agency
4008	4008	22 shall procure capacity that is sufficient to meet
4009	4009	23 at least 36% of the portion of the projected
4010	4010	24 Planning Reserve Margin Requirement for Load
4011	4011	25 Serving Entities serving customers within the
4012	4012	26 Applicable Local Resource Zone, and 36% of the PJM
4013	4013
4014	4014
4015	4015
4016	4016
4017	4017
4018	4018	SB2552 - 111 - LRB103 31416 LNS 59082 b
4019	4019
4020	4020
4021	4021	SB2552- 112 -LRB103 31416 LNS 59082 b SB2552 - 112 - LRB103 31416 LNS 59082 b
4022	4022	SB2552 - 112 - LRB103 31416 LNS 59082 b
4023	4023	1 Region Reliability Requirement for Load Serving
4024	4024	2 Entities serving customers within the Applicable
4025	4025	3 Locational Deliverability Area.
4026	4026	4 For the delivery year 2034-2035, the Agency
4027	4027	5 shall procure capacity that is sufficient to meet
4028	4028	6 at least 39% of the portion of the projected
4029	4029	7 Planning Reserve Margin Requirement for Load
4030	4030	8 Serving Entities serving customers within the
4031	4031	9 Applicable Local Resource Zone, and 39% of the PJM
4032	4032	10 Region Reliability Requirement for Load Serving
4033	4033	11 Entities serving customers within the Applicable
4034	4034	12 Locational Deliverability Area.
4035	4035	13 For the delivery year 2035-2036, the Agency
4036	4036	14 shall procure capacity that is sufficient to meet
4037	4037	15 at least 42% of the portion of the projected
4038	4038	16 Planning Reserve Margin Requirement for Load
4039	4039	17 Serving Entities serving customers within the
4040	4040	18 Applicable Local Resource Zone, and 42% of the PJM
4041	4041	19 Region Reliability Requirement for Load Serving
4042	4042	20 Entities serving customers within the Applicable
4043	4043	21 Locational Deliverability Area.
4044	4044	22 (ii) For all the procurement events described
4045	4045	23 in this subsection, any capacity procured must be
4046	4046	24 attributable to the projected load of the
4047	4047	25 customers of each Load Serving Entity. The
4048	4048	26 contract buyer shall be, for all resulting
4049	4049
4050	4050
4051	4051
4052	4052
4053	4053
4054	4054	SB2552 - 112 - LRB103 31416 LNS 59082 b
4055	4055
4056	4056
4057	4057	SB2552- 113 -LRB103 31416 LNS 59082 b SB2552 - 113 - LRB103 31416 LNS 59082 b
4058	4058	SB2552 - 113 - LRB103 31416 LNS 59082 b
4059	4059	1 contracts as described in paragraph (7), the
4060	4060	2 largest electric utility located in MISO for
4061	4061	3 procured capacity that satisfies Load Serving
4062	4062	4 Entities' customer requirements in the Applicable
4063	4063	5 Local Resource Zone, and the largest electric
4064	4064	6 utility located in PJM for procured capacity that
4065	4065	7 satisfies Load Serving Entities' customer
4066	4066	8 requirements in the Applicable Locational
4067	4067	9 Deliverability Area. Following receipt of the
4068	4068	10 product under each contract, the contract buyer
4069	4069	11 shall timely transfer procured capacity credits to
4070	4070	12 other Load Serving Entities in the same regional
4071	4071	13 transmission organization, following the
4072	4072	14 applicable prevailing rules for transfer of
4073	4073	15 capacity credits under the MISO Tariff or PJM Open
4074	4074	16 Access Transmission Tariff, based on the
4075	4075	17 allocation described in subparagraph (A) of
4076	4076	18 paragraph (7).
4077	4077	19 (iii) For all procurement events described in
4078	4078	20 this subsection, the Agency may use its discretion
4079	4079	21 in determining how much capacity it procures in
4080	4080	22 each procurement event, so long as the cumulative
4081	4081	23 procurement of Agency-procured capacity for a
4082	4082	24 given delivery year by the time of that delivery
4083	4083	25 year is equal, for both the Applicable Local
4084	4084	26 Resource Zone and Applicable Locational
4085	4085
4086	4086
4087	4087
4088	4088
4089	4089
4090	4090	SB2552 - 113 - LRB103 31416 LNS 59082 b
4091	4091
4092	4092
4093	4093	SB2552- 114 -LRB103 31416 LNS 59082 b SB2552 - 114 - LRB103 31416 LNS 59082 b
4094	4094	SB2552 - 114 - LRB103 31416 LNS 59082 b
4095	4095	1 Deliverability Area, to the target percentage for
4096	4096	2 that delivery year. The Agency may hold
4097	4097	3 procurement events for a target delivery year
4098	4098	4 during the period January 1 to March 1 of the
4099	4099	5 calendar year in which the target delivery year
4100	4100	6 begins, or during the period January 1 to March 1
4101	4101	7 of either of the 2 previous calendar years. The
4102	4102	8 Agency shall endeavor to complete capacity
4103	4103	9 procurement events on a schedule so that procured
4104	4104	10 capacity credits for a delivery year covered by an
4105	4105	11 immediately upcoming regional transmission
4106	4106	12 organization capacity auction may be timely
4107	4107	13 submitted by Load Serving Entities to the
4108	4108	14 applicable regional transmission organization.
4109	4109	15 (iv) The Agency, at its discretion, may
4110	4110	16 procure qualified resources as defined in
4111	4111	17 subparagraph (B) to meet the target portion of
4112	4112	18 capacity for a given delivery year, further in
4113	4113	19 advance than the timelines given in item (iii), as
4114	4114	20 long as the contracts do not exceed 15 years in
4115	4115	21 length. Resources that are not qualified resources
4116	4116	22 as defined in subparagraph (B) may not be procured
4117	4117	23 under this item.
4118	4118	24 (v) Each of the Load Serving Entities shall
4119	4119	25 annually report its capacity commitments resulting
4120	4120	26 from the procurement events described in this
4121	4121
4122	4122
4123	4123
4124	4124
4125	4125
4126	4126	SB2552 - 114 - LRB103 31416 LNS 59082 b
4127	4127
4128	4128
4129	4129	SB2552- 115 -LRB103 31416 LNS 59082 b SB2552 - 115 - LRB103 31416 LNS 59082 b
4130	4130	SB2552 - 115 - LRB103 31416 LNS 59082 b
4131	4131	1 subsection, based on the allocation described in
4132	4132	2 subparagraph (A) of paragraph (7), in accordance
4133	4133	3 with the applicable provisions of the PJM Open
4134	4134	4 Access Transmission Tariff, the applicable
4135	4135	5 provisions of the MISO Tariff, and other official
4136	4136	6 standards of regional transmission organizations
4137	4137	7 as appropriate.
4138	4138	8 (vi) The capacity procurement plans developed
4139	4139	9 by the Agency and the capacity procurement events
4140	4140	10 shall be designed to procure capacity to ensure
4141	4141	11 long-term resource adequacy at the lowest
4142	4142	12 environmentally safe cost over time, taking into
4143	4143	13 account the benefits of price stability and the
4144	4144	14 need to ensure the reliability, adequacy, and
4145	4145	15 resilience of the bulk power generation and
4146	4146	16 delivery system, as well as the health and climate
4147	4147	17 impacts of various capacity resources. The
4148	4148	18 procurement shall not interfere with the emissions
4149	4149	19 reductions required in Section 9.15 of the
4150	4150	20 Environmental Protection Act and the procurement
4151	4151	21 shall be in keeping with the goals of the Paris
4152	4152	22 Climate Agreement, to limit the rise in mean
4153	4153	23 global temperature to well below 2 degrees Celsius
4154	4154	24 (3.6 degrees Fahrenheit) above preindustrial
4155	4155	25 levels, and preferably limit the increase to 1.5
4156	4156	26 degrees Celsius (2.7 degrees Fahrenheit).
4157	4157
4158	4158
4159	4159
4160	4160
4161	4161
4162	4162	SB2552 - 115 - LRB103 31416 LNS 59082 b
4163	4163
4164	4164
4165	4165	SB2552- 116 -LRB103 31416 LNS 59082 b SB2552 - 116 - LRB103 31416 LNS 59082 b
4166	4166	SB2552 - 116 - LRB103 31416 LNS 59082 b
4167	4167	1 (B) Clean capacity. A percentage of the total
4168	4168	2 capacity procured according to subparagraph (A) shall
4169	4169	3 be from qualified resources with the goals of reducing
4170	4170	4 pollution from the power sector, lowering consumer
4171	4171	5 costs, and creating investment opportunities for new
4172	4172	6 renewable resources. Capacity procurements conducted
4173	4173	7 under subparagraph (A) shall contain the following
4174	4174	8 percentage of qualified resources: 25% of the total
4175	4175	9 amount procured in the capacity procurement events
4176	4176	10 conducted in 2025, increasing at least 3 percentage
4177	4177	11 points per delivery year to reach 40% by 2030 and
4178	4178	12 continuing at no less than 40% each year thereafter.
4179	4179	13 The Agency may procure capacity from qualified
4180	4180	14 resources described in this subparagraph using
4181	4181	15 contract durations of up to 15 years. Capacity from
4182	4182	16 these qualified resources counts toward the capacity
4183	4183	17 procurement amounts described in subparagraph (A).
4184	4184	18 (C) In determining or projecting the capacity
4185	4185	19 obligation attributable to the customers of the Load
4186	4186	20 Serving Entity for a delivery year for purposes of
4187	4187	21 capacity procurement plans and capacity procurement
4188	4188	22 events under this subsection, the Agency and, as
4189	4189	23 applicable, the procurement administrator shall use,
4190	4190	24 as applicable, the Planning Reserve Margin Requirement
4191	4191	25 and Peak Load Contribution, as established or
4192	4192	26 projected by the Midcontinent Independent System
4193	4193
4194	4194
4195	4195
4196	4196
4197	4197
4198	4198	SB2552 - 116 - LRB103 31416 LNS 59082 b
4199	4199
4200	4200
4201	4201	SB2552- 117 -LRB103 31416 LNS 59082 b SB2552 - 117 - LRB103 31416 LNS 59082 b
4202	4202	SB2552 - 117 - LRB103 31416 LNS 59082 b
4203	4203	1 Operator or the PJM Region Reliability Requirement as
4204	4204	2 established or projected by PJM Interconnection, LLC.
4205	4205	3 If the Midcontinent Independent System Operator or PJM
4206	4206	4 Interconnection, LLC have not established or released
4207	4207	5 a projection of these figures a delivery year, the
4208	4208	6 Agency and, as applicable, the procurement
4209	4209	7 administrator shall develop forecasts of the Planning
4210	4210	8 Reserve Margin Requirement, Peak Load Contribution,
4211	4211	9 PJM Region Reliability Requirement, and other relevant
4212	4212	10 figures used by the Midcontinent Independent System
4213	4213	11 Operator and PJM Interconnection, LLC to maintain
4214	4214	12 reliability, respectively, in the Applicable Local
4215	4215	13 Resource Zone and Applicable Locational Deliverability
4216	4216	14 Area for that delivery year based on available
4217	4217	15 information, including, without limiting the
4218	4218	16 foregoing, the most recent Planning Reserve Margin
4219	4219	17 Requirement, Peak Load Contribution, and established
4220	4220	18 by the Midcontinent Independent System Operator, and
4221	4221	19 the most recent PJM Region Reliability Requirement
4222	4222	20 established by PJM Interconnection, LLC for a delivery
4223	4223	21 year and any other information from the Midcontinent
4224	4224	22 Independent System Operator, PJM Interconnection, LLC,
4225	4225	23 and the Load Serving Entity. If requested by the
4226	4226	24 Agency, the Load Serving Entity shall provide to the
4227	4227	25 Agency actual and forecasted peak electric load
4228	4228	26 information for the customers of the Load Serving
4229	4229
4230	4230
4231	4231
4232	4232
4233	4233
4234	4234	SB2552 - 117 - LRB103 31416 LNS 59082 b
4235	4235
4236	4236
4237	4237	SB2552- 118 -LRB103 31416 LNS 59082 b SB2552 - 118 - LRB103 31416 LNS 59082 b
4238	4238	SB2552 - 118 - LRB103 31416 LNS 59082 b
4239	4239	1 Entity in the Applicable Local Resource Zone and PJM
4240	4240	2 Region Reliability Requirement.
4241	4241	3 (3) (A) Each capacity procurement event may include
4242	4242	4 the procurement of capacity through a mix of contracts
4243	4243	5 with different terms and different initial delivery dates
4244	4244	6 as proposed by the Agency in its capacity procurement plan
4245	4245	7 and approved by the Commission, so long as each annual
4246	4246	8 capacity procurement event results in the procurement of
4247	4247	9 an amount of capacity that, together with capacity
4248	4248	10 procured in previous capacity procurement events, is equal
4249	4249	11 to the portion or portions of the projected Planning
4250	4250	12 Reserve Margin Requirement (for Load Serving Entities in
4251	4251	13 MISO) and PJM Region Reliability Requirement (for Load
4252	4252	14 Serving Entities in PJM) for the delivery year or delivery
4253	4253	15 years for which capacity is to be procured as specified in
4254	4254	16 paragraph (2). Each capacity procurement event shall
4255	4255	17 specify all Load Serving Entities for which capacity is
4256	4256	18 ultimately being procured, and indicate their projected
4257	4257	19 shares of the targeted capacity, consistent with
4258	4258	20 subparagraph (A) of paragraph (7).
4259	4259	21 (B) The Agency's annual capacity procurement plans for
4260	4260	22 the Applicable Local Resource Zone shall be developed as
4261	4261	23 follows: No later than July 15 of each year, the Agency
4262	4262	24 shall post on its website and otherwise make publicly
4263	4263	25 available, for public comment, its draft capacity
4264	4264	26 procurement plan for the capacity procurement event to be
4265	4265
4266	4266
4267	4267
4268	4268
4269	4269
4270	4270	SB2552 - 118 - LRB103 31416 LNS 59082 b
4271	4271
4272	4272
4273	4273	SB2552- 119 -LRB103 31416 LNS 59082 b SB2552 - 119 - LRB103 31416 LNS 59082 b
4274	4274	SB2552 - 119 - LRB103 31416 LNS 59082 b
4275	4275	1 held in February of the following calendar year.
4276	4276	2 Interested parties shall be allowed 30 days from the
4277	4277	3 posting of the draft capacity procurement plan to submit
4278	4278	4 comments to the Agency. The Agency shall consider any
4279	4279	5 comments received and shall file its proposed capacity
4280	4280	6 procurement plan with the Commission within 15 days
4281	4281	7 following the conclusion of the public comment period. The
4282	4282	8 Commission shall open a docketed proceeding for
4283	4283	9 consideration and approval or modification of the proposed
4284	4284	10 capacity procurement plan. The Commission or its
4285	4285	11 administrative law judge assigned to the proceeding shall
4286	4286	12 establish a procedural schedule for the proceeding that
4287	4287	13 will enable the Commission to issue an order, within 90
4288	4288	14 days following the date the capacity procurement plan was
4289	4289	15 filed with the Commission, approving, with any
4290	4290	16 modifications directed by the Commission, the capacity
4291	4291	17 procurement plan. On or before December 1 each year, the
4292	4292	18 Commission shall issue its order in the proceeding
4293	4293	19 approving, or approving with modifications, the capacity
4294	4294	20 procurement plan. For the initial capacity procurement
4295	4295	21 event to be conducted in 2025: (i) the Agency shall file
4296	4296	22 its proposed capacity procurement plan with the Commission
4297	4297	23 within 30 days following the effective date of this
4298	4298	24 amendatory Act of the 103rd General Assembly; (ii) the
4299	4299	25 Commission, after notice and hearing, shall approve the
4300	4300	26 capacity procurement plan, with such modifications as
4301	4301
4302	4302
4303	4303
4304	4304
4305	4305
4306	4306	SB2552 - 119 - LRB103 31416 LNS 59082 b
4307	4307
4308	4308
4309	4309	SB2552- 120 -LRB103 31416 LNS 59082 b SB2552 - 120 - LRB103 31416 LNS 59082 b
4310	4310	SB2552 - 120 - LRB103 31416 LNS 59082 b
4311	4311	1 directed by the Commission, within 30 days following the
4312	4312	2 date that the proposed capacity procurement plan was filed
4313	4313	3 with the Commission; and (iii) the capacity procurement
4314	4314	4 event shall be held no later than March 1, 2025.
4315	4315	5 (C) The Agency shall meet the goals and requirements
4316	4316	6 of this subsection prior to considering any of the other
4317	4317	7 capacity procurement goals, options, or requirements of
4318	4318	8 this Section (including those set out in subparagraphs
4319	4319	9 (ii) and (iv) of paragraph (3) of subsection (b)).
4320	4320	10 (4) To the extent that any other provision of this
4321	4321	11 Section or any provision of the Illinois Power Agency Act
4322	4322	12 are not inconsistent with the provisions of this
4323	4323	13 subsection for, and are otherwise applicable to, capacity
4324	4324	14 procurement events conducted under this subsection, those
4325	4325	15 other provisions shall be used in conducting capacity
4326	4326	16 procurement events conducted under this subsection.
4327	4327	17 (5) The capacity procurement plans prepared by, and
4328	4328	18 the capacity procurement events conducted by, the Agency
4329	4329	19 under this subsection shall be subject to the following
4330	4330	20 requirements:
4331	4331	21 (A) The mix of capacity resources selected in any
4332	4332	22 procurement event conducted under this subsection must
4333	4333	23 include sufficient qualified Zonal Resource Credits
4334	4334	24 (for Load Serving Entities in MISO) or accredited
4335	4335	25 megawatts (for Load Serving Entities in PJM), together
4336	4336	26 with capacity procured in previous capacity
4337	4337
4338	4338
4339	4339
4340	4340
4341	4341
4342	4342	SB2552 - 120 - LRB103 31416 LNS 59082 b
4343	4343
4344	4344
4345	4345	SB2552- 121 -LRB103 31416 LNS 59082 b SB2552 - 121 - LRB103 31416 LNS 59082 b
4346	4346	SB2552 - 121 - LRB103 31416 LNS 59082 b
4347	4347	1 procurement events, to satisfy the portion specified
4348	4348	2 in item (i) of subparagraph (a) of paragraph (2) of the
4349	4349	3 Applicable Local Resource Zone and Applicable
4350	4350	4 Locational Deliverability Area and must otherwise be
4351	4351	5 consistent with the requirements for capacity
4352	4352	6 established by the Midcontinent Independent System
4353	4353	7 Operator and PJM Interconnection LLC. The procurement
4354	4354	8 of capacity in the capacity procurement events shall
4355	4355	9 not include the portion of the Planning Reserve Margin
4356	4356	10 Requirement for the Applicable Local Resource Zone or
4357	4357	11 Applicable Locational Deliverability Area associated
4358	4358	12 with customers served by a municipal utility, an
4359	4359	13 electric cooperative, or a multistate electric
4360	4360	14 utility.
4361	4361	15 (B) The capacity to be procured for each delivery
4362	4362	16 year for Load Serving Entities in MISO shall include
4363	4363	17 an amount of capacity from capacity resources
4364	4364	18 physically located within the Applicable Local
4365	4365	19 Resource Zone that is no less than the portion of the
4366	4366	20 projected Local Clearing Requirement for the
4367	4367	21 Applicable Local Resource Zone for that delivery year
4368	4368	22 attributable to the load of the customers of the Load
4369	4369	23 Serving Entities. The capacity to be procured for each
4370	4370	24 delivery year for Load Serving Entities in PJM shall
4371	4371	25 include an amount of capacity from capacity resources
4372	4372	26 physically located within the Applicable Locational
4373	4373
4374	4374
4375	4375
4376	4376
4377	4377
4378	4378	SB2552 - 121 - LRB103 31416 LNS 59082 b
4379	4379
4380	4380
4381	4381	SB2552- 122 -LRB103 31416 LNS 59082 b SB2552 - 122 - LRB103 31416 LNS 59082 b
4382	4382	SB2552 - 122 - LRB103 31416 LNS 59082 b
4383	4383	1 Deliverability Area that represents a percentage
4384	4384	2 equaling at least the Internal Resource Requirement
4385	4385	3 for the Applicable Locational Deliverability Area as
4386	4386	4 set by PJM.
4387	4387	5 (C) In each capacity procurement plan, the Agency
4388	4388	6 shall include a discussion of whether factors, other
4389	4389	7 than price, to support reliability in the Applicable
4390	4390	8 Local Resource Zone or Applicable Locational
4391	4391	9 Deliverability Area should be taken into account in
4392	4392	10 selecting capacity resources in the capacity
4393	4393	11 procurement event or events that are the subject of
4394	4394	12 the capacity procurement plan. The Agency may propose
4395	4395	13 in the capacity procurement plan to procure a
4396	4396	14 specified amount or amounts of capacity from capacity
4397	4397	15 resources located within the Applicable Local Resource
4398	4398	16 Zone and Applicable Locational Deliverability Area,
4399	4399	17 over and above the amount of capacity required to
4400	4400	18 satisfy the Planning Resource Margin Requirement or
4401	4401	19 PJM Region Reliability Requirement, as applicable, to
4402	4402	20 support reliability within the Applicable Local
4403	4403	21 Resource Zone or Applicable Locational Deliverability
4404	4404	22 Area, including, but not limited to, for purposes of
4405	4405	23 transmission security, voltage support, dynamic
4406	4406	24 stability, frequency response, fuel security and
4407	4407	25 on-site fuel supply, public health benefits, and
4408	4408	26 import transfer capability. The inclusion of any such
4409	4409
4410	4410
4411	4411
4412	4412
4413	4413
4414	4414	SB2552 - 122 - LRB103 31416 LNS 59082 b
4415	4415
4416	4416
4417	4417	SB2552- 123 -LRB103 31416 LNS 59082 b SB2552 - 123 - LRB103 31416 LNS 59082 b
4418	4418	SB2552 - 123 - LRB103 31416 LNS 59082 b
4419	4419	1 factors in the capacity procurement plan shall be
4420	4420	2 subject to approval of the Commission.
4421	4421	3 (D) Any capacity resource, including, without
4422	4422	4 limitation, demand response resources, energy
4423	4423	5 efficiency resources, and renewable energy resources,
4424	4424	6 that meets the other eligibility requirements of this
4425	4425	7 subsection shall be eligible to participate in a
4426	4426	8 capacity procurement event under this subsection if,
4427	4427	9 and to the extent that, the resource satisfies all the
4428	4428	10 requirements of the MISO Tariff, PJM Reliability
4429	4429	11 Assurance Agreement, or other appropriate standards
4430	4430	12 from regional transmission organizations or their
4431	4431	13 successors. A municipal utility, an electric
4432	4432	14 cooperative, a municipal electric power agency or
4433	4433	15 other group, association, or consortium of municipal
4434	4434	16 utilities or electric cooperatives may participate in
4435	4435	17 a capacity procurement event, using capacity that it
4436	4436	18 owns or leases, only to the extent that the owned and
4437	4437	19 leased capacity of the municipal utility, electric
4438	4438	20 cooperative, municipal electric power agency, or
4439	4439	21 group, association, or consortium exceeds the Planning
4440	4440	22 Reserve Margin Requirement or PJM Region Reliability
4441	4441	23 Requirement, as applicable, attributable to the load
4442	4442	24 of the customers that the municipal utility, electric
4443	4443	25 cooperative, municipal electric power agency, or
4444	4444	26 group, association, or consortium is obligated to
4445	4445
4446	4446
4447	4447
4448	4448
4449	4449
4450	4450	SB2552 - 123 - LRB103 31416 LNS 59082 b
4451	4451
4452	4452
4453	4453	SB2552- 124 -LRB103 31416 LNS 59082 b SB2552 - 124 - LRB103 31416 LNS 59082 b
4454	4454	SB2552 - 124 - LRB103 31416 LNS 59082 b
4455	4455	1 serve. As a condition to eligibility to participate in
4456	4456	2 a capacity procurement event conducted under this
4457	4457	3 subsection, each municipal utility, electric
4458	4458	4 cooperative, municipal electric power agency, and
4459	4459	5 group, association, and consortium of municipal
4460	4460	6 utilities or electric cooperatives shall certify its
4461	4461	7 compliance with this requirement to the Agency for the
4462	4462	8 capacity procurement event. A municipal utility,
4463	4463	9 electric cooperative, municipal electric power agency,
4464	4464	10 and group, association, or consortium of municipal
4465	4465	11 utilities or electric cooperatives may not enter or
4466	4466	12 bid any resources into a capacity procurement event if
4467	4467	13 those resources use coal as a fuel.
4468	4468	14 (E) Capacity awarded in the Peak Time Rewards or
4469	4469	15 Peak Time Savings program or successor program, if
4470	4470	16 any, of an Load Serving Entity that is an electric
4471	4471	17 utility shall be included in the capacity resources
4472	4472	18 selected for each delivery year for which capacity is
4473	4473	19 procured in a capacity procurement event, at a price
4474	4474	20 for that delivery year equal to the weighted average
4475	4475	21 price of the other capacity resources selected under
4476	4476	22 this subsection for the delivery year. Prior to a
4477	4477	23 capacity procurement event being conducted under this
4478	4478	24 subsection to procure capacity for a delivery year,
4479	4479	25 the Load Serving Entity shall notify the Agency and
4480	4480	26 the procurement administrator of the amount of
4481	4481
4482	4482
4483	4483
4484	4484
4485	4485
4486	4486	SB2552 - 124 - LRB103 31416 LNS 59082 b
4487	4487
4488	4488
4489	4489	SB2552- 125 -LRB103 31416 LNS 59082 b SB2552 - 125 - LRB103 31416 LNS 59082 b
4490	4490	SB2552 - 125 - LRB103 31416 LNS 59082 b
4491	4491	1 capacity awarded or forecasted to be awarded in the
4492	4492	2 Peak Time Rewards program for each delivery year for
4493	4493	3 which capacity is to be procured in the capacity
4494	4494	4 procurement event. For purposes of contract
4495	4495	5 administration and settlements, the Load Serving
4496	4496	6 Entity shall be deemed the capacity supplier of
4497	4497	7 capacity awarded in its Peak Time Rewards program or
4498	4498	8 successor program.
4499	4499	9 (6) Each (i) capacity supplier selected in a capacity
4500	4500	10 procurement event conducted by the Agency under this
4501	4501	11 subsection and (ii) each Load Serving Entity that is an
4502	4502	12 electric utility within the applicable regional
4503	4503	13 transmission organization shall enter into contracts for
4504	4504	14 capacity developed by the procurement administrator in
4505	4505	15 accordance with paragraph (7).
4506	4506	16 (7) The procurement administrator, in conjunction with
4507	4507	17 the Agency and the staff of the Commission and based on
4508	4508	18 consultation with prospective capacity suppliers and with
4509	4509	19 electric utilities, shall adopt, and shall revise from
4510	4510	20 time to time as necessary and appropriate, standard form
4511	4511	21 contracts to be entered into between the electric
4512	4512	22 utilities and capacity suppliers selected in procurement
4513	4513	23 events conducted under this subsection. The standard form
4514	4514	24 contracts to be used in connection with each capacity
4515	4515	25 procurement event conducted under this subsection shall be
4516	4516	26 made available to prospective capacity suppliers prior to
4517	4517
4518	4518
4519	4519
4520	4520
4521	4521
4522	4522	SB2552 - 125 - LRB103 31416 LNS 59082 b
4523	4523
4524	4524
4525	4525	SB2552- 126 -LRB103 31416 LNS 59082 b SB2552 - 126 - LRB103 31416 LNS 59082 b
4526	4526	SB2552 - 126 - LRB103 31416 LNS 59082 b
4527	4527	1 the capacity procurement event. Each capacity supplier
4528	4528	2 seeking to participate in a capacity procurement event
4529	4529	3 shall agree, as a condition of eligibility to participate,
4530	4530	4 that if selected, it will enter into the standard form
4531	4531	5 contract with the applicable electric utility located in
4532	4532	6 the relevant regional transmission organization territory.
4533	4533	7 The standard form contracts shall contain, without
4534	4534	8 limitation, the following provisions:
4535	4535	9 (A) Each contract between a capacity supplier and
4536	4536	10 an electric utility as buyer shall specify in an
4537	4537	11 addendum that the capacity to be provided by the
4538	4538	12 capacity supplier shall be ultimately allocated to
4539	4539	13 each Load Serving Entity serving customers in the
4540	4540	14 Applicable Local Resource Zone or Applicable
4541	4541	15 Locational Deliverability Area, as applicable, where
4542	4542	16 that portion of the total capacity to be supplied by
4543	4543	17 the capacity supplier for any given Load Serving
4544	4544	18 Entity, consistent with the transfer described in part
4545	4545	19 item (ii) of subparagraph (A) of paragraph (2), shall
4546	4546	20 equal the load ratio share of the Load Serving
4547	4547	21 Entity's customers served by the Load Serving Entity
4548	4548	22 as a percentage of the total Planning Reserve Margin
4549	4549	23 Requirement or PJM Region Reliability Requirement, as
4550	4550	24 applicable, attributable to the load of all Load
4551	4551	25 Serving Entities customers in the Applicable Local
4552	4552	26 Resource Zone or Applicable Locational Deliverability
4553	4553
4554	4554
4555	4555
4556	4556
4557	4557
4558	4558	SB2552 - 126 - LRB103 31416 LNS 59082 b
4559	4559
4560	4560
4561	4561	SB2552- 127 -LRB103 31416 LNS 59082 b SB2552 - 127 - LRB103 31416 LNS 59082 b
4562	4562	SB2552 - 127 - LRB103 31416 LNS 59082 b
4563	4563	1 Area, as applicable, on March 1 immediately preceding
4564	4564	2 the first delivery year for which the contract is in
4565	4565	3 effect.
4566	4566	4 (B) The standard form contracts shall specify that
4567	4567	5 if the Agency determines between March 1 and June 1 of
4568	4568	6 a calendar year that the aggregate amount of capacity
4569	4569	7 procured in capacity procurement events for the
4570	4570	8 immediately upcoming delivery year beginning June 1
4571	4571	9 exceeds the amount of capacity needed to meet the
4572	4572	10 targeted portion of Planning Reserve Margin
4573	4573	11 Requirement attributable to the load of the customers
4574	4574	12 of all Load Serving Entities in the Applicable Local
4575	4575	13 Resource Zone, or the PJM Region Reliability
4576	4576	14 Requirement in the Applicable Locational
4577	4577	15 Deliverability Area, as applicable, and directs that
4578	4578	16 the capacity to be supplied by each capacity supplier
4579	4579	17 for the immediately upcoming delivery year beginning
4580	4580	18 June 1 shall be reduced on a pro rata basis so that the
4581	4581	19 aggregate amount of capacity to be supplied for the
4582	4582	20 immediately upcoming delivery year is equal to the
4583	4583	21 amount of capacity needed to meet the targeted portion
4584	4584	22 of the Planning Reserve Margin Requirement
4585	4585	23 attributable to the load of the customers of all Load
4586	4586	24 Serving Entities in the Applicable Local Resource
4587	4587	25 Zone, or the PJM Region Reliability Requirement in the
4588	4588	26 Applicable Locational Deliverability Area, as
4589	4589
4590	4590
4591	4591
4592	4592
4593	4593
4594	4594	SB2552 - 127 - LRB103 31416 LNS 59082 b
4595	4595
4596	4596
4597	4597	SB2552- 128 -LRB103 31416 LNS 59082 b SB2552 - 128 - LRB103 31416 LNS 59082 b
4598	4598	SB2552 - 128 - LRB103 31416 LNS 59082 b
4599	4599	1 applicable, then the amount of capacity to be supplied
4600	4600	2 and purchased under each contract between a capacity
4601	4601	3 supplier and a Load Serving Entity that is an electric
4602	4602	4 utility shall be deemed reduced as directed by the
4603	4603	5 Agency. The standard form contract shall specify that
4604	4604	6 any such reduction in the capacity to be supplied
4605	4605	7 under the contract shall apply only to the immediately
4606	4606	8 upcoming delivery year and not to any subsequent years
4607	4607	9 in the contract term. The standard form contracts
4608	4608	10 shall provide that in the event of a reduction in the
4609	4609	11 capacity to be supplied in accordance with this
4610	4610	12 subparagraph, the capacity supplier may resell or
4611	4611	13 otherwise dispose of the capacity it is no longer
4612	4612	14 obligated to supply.
4613	4613	15 (C) Each Load Serving Entity's allocated share of
4614	4614	16 procured capacity in an Applicable Local Resource Zone
4615	4615	17 or Applicable Locational Deliverability Area, as
4616	4616	18 applicable, as originally determined as described in
4617	4617	19 subparagraph (A), shall be deemed adjusted on a daily
4618	4618	20 basis to be equal to the load ratio share of the Load
4619	4619	21 Serving Entity's customers in the Applicable Local
4620	4620	22 Resource Zone or Applicable Locational Deliverability
4621	4621	23 Area, as applicable, that are served by the Load
4622	4622	24 Serving Entity to the total Planning Reserve Margin
4623	4623	25 Requirement or PJM Region Reliability Requirement, as
4624	4624	26 applicable, attributable to the load of all the Load
4625	4625
4626	4626
4627	4627
4628	4628
4629	4629
4630	4630	SB2552 - 128 - LRB103 31416 LNS 59082 b
4631	4631
4632	4632
4633	4633	SB2552- 129 -LRB103 31416 LNS 59082 b SB2552 - 129 - LRB103 31416 LNS 59082 b
4634	4634	SB2552 - 129 - LRB103 31416 LNS 59082 b
4635	4635	1 Serving Entities' customers in the Applicable Local
4636	4636	2 Resource Zone or Applicable Locational Deliverability
4637	4637	3 Area, as applicable, on that day. Based on the
4638	4638	4 calculations in this subparagraph, the invoice amounts
4639	4639	5 described in paragraph (8) shall include true-ups as
4640	4640	6 appropriate.
4641	4641	7 (D) The standard form contracts shall specify the
4642	4642	8 frequency of billing periods and payment remittance
4643	4643	9 periods for the capacity supplier to bill the electric
4644	4644	10 utility, and the electric utility to remit payment to
4645	4645	11 the capacity supplier, for the capacity provided by
4646	4646	12 the capacity supplier to the electric utility under
4647	4647	13 the contract on each day during the billing period. A
4648	4648	14 capacity supplier and an electric utility may agree to
4649	4649	15 modify their contract to provide for billing and
4650	4650	16 payment remittance periods other than the billing and
4651	4651	17 payment dates specified in the standard form
4652	4652	18 contracts.
4653	4653	19 (E) The standard form contracts shall include
4654	4654	20 provisions relating to the credit, collateral,
4655	4655	21 performance, and dispute resolution obligations of the
4656	4656	22 parties, and other terms and conditions as described
4657	4657	23 in paragraph (2) of subsection (e).
4658	4658	24 (F) The standard form contracts shall memorialize
4659	4659	25 that other Load Serving Entities in the contract
4660	4660	26 buyer's regional transmission organization, as
4661	4661
4662	4662
4663	4663
4664	4664
4665	4665
4666	4666	SB2552 - 129 - LRB103 31416 LNS 59082 b
4667	4667
4668	4668
4669	4669	SB2552- 130 -LRB103 31416 LNS 59082 b SB2552 - 130 - LRB103 31416 LNS 59082 b
4670	4670	SB2552 - 130 - LRB103 31416 LNS 59082 b
4671	4671	1 identified as described in subparagraph (A), shall be
4672	4672	2 considered as third-party beneficiaries of the
4673	4673	3 contracts but shall not have contractual rights or
4674	4674	4 remedies against the contract seller.
4675	4675	5 (G) The standard form contracts shall provide for
4676	4676	6 the capacity supplier to take financial responsibility
4677	4677	7 to make whole all Load Serving Entities for whom
4678	4678	8 capacity is procured, if the applicable regional
4679	4679	9 transmission organization ultimately disqualifies or
4680	4680	10 imposes any nonperformance penalties in the applicable
4681	4681	11 delivery year with respect to the procured capacity
4682	4682	12 credits.
4683	4683	13 (8) (A) Each contract buyer shall invoice all other
4684	4684	14 Load Serving Entities in the Applicable Local Resource
4685	4685	15 Zone or Applicable Locational Deliverability Area, as
4686	4686	16 applicable, for their allocated share of capacity payments
4687	4687	17 actually made under each contract, as determined in
4688	4688	18 subparagraph (A) of paragraph (7) as modified by
4689	4689	19 subparagraphs (B) and (C). Each Load Serving Entity that
4690	4690	20 is an alternative retail electric supplier shall promptly
4691	4691	21 pay the contract buyer upon receiving the invoice.
4692	4692	22 (B) Each Load Serving Entity that is an alternative
4693	4693	23 retail electric supplier shall be allowed to recover and
4694	4694	24 shall be responsible for recovering its costs for capacity
4695	4695	25 incurred under contracts entered into under this
4696	4696	26 subsection in accordance with its contracts and
4697	4697
4698	4698
4699	4699
4700	4700
4701	4701
4702	4702	SB2552 - 130 - LRB103 31416 LNS 59082 b
4703	4703
4704	4704
4705	4705	SB2552- 131 -LRB103 31416 LNS 59082 b SB2552 - 131 - LRB103 31416 LNS 59082 b
4706	4706	SB2552 - 131 - LRB103 31416 LNS 59082 b
4707	4707	1 arrangements entered into with its customers. A Load
4708	4708	2 Serving Entity that is an electric utility shall recover
4709	4709	3 its costs for capacity incurred under contracts entered
4710	4710	4 into under this subsection in accordance with the electric
4711	4711	5 utility's tariff or other cost recovery mechanism approved
4712	4712	6 by the Commission under subsection (l).
4713	4713	7 (9) Nothing in this subsection is intended to preclude
4714	4714	8 the Agency or the Commission from conducting the
4715	4715	9 procurement events and processes described in this
4716	4716	10 subsection in conjunction with other procurement processes
4717	4717	11 described in this Section or Section 1-75 of the Illinois
4718	4718	12 Power Agency Act, to the extent the Agency and the
4719	4719	13 Commission find that approach is appropriate and
4720	4720	14 practicable while allowing the annual capacity procurement
4721	4721	15 plans to be developed and submitted by the Agency and
4722	4722	16 approved by the Commission in accordance with the schedule
4723	4723	17 set forth in subparagraph (B) of paragraph (3), and
4724	4724	18 allowing the capacity procurement events to be conducted
4725	4725	19 within the time periods specified in this subsection.
4726	4726	20 (10) It is the intent of this subsection that the
4727	4727	21 Agency's and the Commission's implementation of this
4728	4728	22 subsection, including, but not limited to, the timing and
4729	4729	23 number of procurement events and the duration of
4730	4730	24 contracts, shall conform, at a minimum, to any applicable
4731	4731	25 requirements of the MISO Tariff and PJM Open Access
4732	4732	26 Transmission Tariff, as the MISO Tariff or PJM Open Access
4733	4733
4734	4734
4735	4735
4736	4736
4737	4737
4738	4738	SB2552 - 131 - LRB103 31416 LNS 59082 b
4739	4739
4740	4740
4741	4741	SB2552- 132 -LRB103 31416 LNS 59082 b SB2552 - 132 - LRB103 31416 LNS 59082 b
4742	4742	SB2552 - 132 - LRB103 31416 LNS 59082 b
4743	4743	1 Transmission Tariff may be changed, replaced, or
4744	4744	2 superseded from time to time, that are necessary for Load
4745	4745	3 Serving Entities serving State customers to (if in MISO
4746	4746	4 service territory) exercise and implement the Fixed
4747	4747	5 Resource Adequacy Plan capacity procurement option, or (if
4748	4748	6 in PJM service territory) to offset their Locational
4749	4749	7 Reliability Charge, or in either case a successor capacity
4750	4750	8 procurement mechanism. Notwithstanding anything to the
4751	4751	9 contrary, the Agency and the Commission shall have the
4752	4752	10 authority to take all steps necessary to implement this
4753	4753	11 subsection consistent with applicable federal tariffs, and
4754	4754	12 as those tariffs may be changed, replaced, or superseded
4755	4755	13 from time to time, to procure capacity for the electric
4756	4756	14 load of customers of Load Serving Entities subject to the
4757	4757	15 requirements of this subsection.
4758	4758	16 (c) The provisions of this subsection (c) shall not apply
4759	4759	17 to procurements conducted pursuant to subsection (c-5) of
4760	4760	18 Section 1-75 of the Illinois Power Agency Act. However, the
4761	4761	19 Agency may retain a procurement administrator to assist the
4762	4762	20 Agency in planning and carrying out the procurement events and
4763	4763	21 implementing the other requirements specified in such
4764	4764	22 subsection (c-5) of Section 1-75 of the Illinois Power Agency
4765	4765	23 Act, with the costs incurred by the Agency for the procurement
4766	4766	24 administrator to be recovered through fees charged to
4767	4767	25 applicants for selection to sell and deliver renewable energy
4768	4768	26 credits to electric utilities pursuant to subsection (c-5) of
4769	4769
4770	4770
4771	4771
4772	4772
4773	4773
4774	4774	SB2552 - 132 - LRB103 31416 LNS 59082 b
4775	4775
4776	4776
4777	4777	SB2552- 133 -LRB103 31416 LNS 59082 b SB2552 - 133 - LRB103 31416 LNS 59082 b
4778	4778	SB2552 - 133 - LRB103 31416 LNS 59082 b
4779	4779	1 Section 1-75 of the Illinois Power Agency Act. The procurement
4780	4780	2 process set forth in Section 1-75 of the Illinois Power Agency
4781	4781	3 Act and subsection (e) of this Section shall be administered
4782	4782	4 by a procurement administrator and monitored by a procurement
4783	4783	5 monitor.
4784	4784	6 (1) The procurement administrator shall:
4785	4785	7 (i) design the final procurement process in
4786	4786	8 accordance with Section 1-75 of the Illinois Power
4787	4787	9 Agency Act and subsection (e) of this Section
4788	4788	10 following Commission approval of the procurement plan;
4789	4789	11 (ii) develop benchmarks in accordance with
4790	4790	12 subsection (e)(3) to be used to evaluate bids; these
4791	4791	13 benchmarks shall be submitted to the Commission for
4792	4792	14 review and approval on a confidential basis prior to
4793	4793	15 the procurement event;
4794	4794	16 (iii) serve as the interface between the electric
4795	4795	17 utility and suppliers;
4796	4796	18 (iv) manage the bidder pre-qualification and
4797	4797	19 registration process;
4798	4798	20 (v) obtain the electric utilities' agreement to
4799	4799	21 the final form of all supply contracts and credit
4800	4800	22 collateral agreements;
4801	4801	23 (vi) administer the request for proposals process;
4802	4802	24 (vii) have the discretion to negotiate to
4803	4803	25 determine whether bidders are willing to lower the
4804	4804	26 price of bids that meet the benchmarks approved by the
4805	4805
4806	4806
4807	4807
4808	4808
4809	4809
4810	4810	SB2552 - 133 - LRB103 31416 LNS 59082 b
4811	4811
4812	4812
4813	4813	SB2552- 134 -LRB103 31416 LNS 59082 b SB2552 - 134 - LRB103 31416 LNS 59082 b
4814	4814	SB2552 - 134 - LRB103 31416 LNS 59082 b
4815	4815	1 Commission; any post-bid negotiations with bidders
4816	4816	2 shall be limited to price only and shall be completed
4817	4817	3 within 24 hours after opening the sealed bids and
4818	4818	4 shall be conducted in a fair and unbiased manner; in
4819	4819	5 conducting the negotiations, there shall be no
4820	4820	6 disclosure of any information derived from proposals
4821	4821	7 submitted by competing bidders; if information is
4822	4822	8 disclosed to any bidder, it shall be provided to all
4823	4823	9 competing bidders;
4824	4824	10 (viii) maintain confidentiality of supplier and
4825	4825	11 bidding information in a manner consistent with all
4826	4826	12 applicable laws, rules, regulations, and tariffs;
4827	4827	13 (ix) submit a confidential report to the
4828	4828	14 Commission recommending acceptance or rejection of
4829	4829	15 bids;
4830	4830	16 (x) notify the utility of contract counterparties
4831	4831	17 and contract specifics; and
4832	4832	18 (xi) administer related contingency procurement
4833	4833	19 events.
4834	4834	20 (2) The procurement monitor, who shall be retained by
4835	4835	21 the Commission, shall:
4836	4836	22 (i) monitor interactions among the procurement
4837	4837	23 administrator, suppliers, and utility;
4838	4838	24 (ii) monitor and report to the Commission on the
4839	4839	25 progress of the procurement process;
4840	4840	26 (iii) provide an independent confidential report
4841	4841
4842	4842
4843	4843
4844	4844
4845	4845
4846	4846	SB2552 - 134 - LRB103 31416 LNS 59082 b
4847	4847
4848	4848
4849	4849	SB2552- 135 -LRB103 31416 LNS 59082 b SB2552 - 135 - LRB103 31416 LNS 59082 b
4850	4850	SB2552 - 135 - LRB103 31416 LNS 59082 b
4851	4851	1 to the Commission regarding the results of the
4852	4852	2 procurement event;
4853	4853	3 (iv) assess compliance with the procurement plans
4854	4854	4 approved by the Commission for each utility that on
4855	4855	5 December 31, 2005 provided electric service to at
4856	4856	6 least 100,000 customers in Illinois and for each small
4857	4857	7 multi-jurisdictional utility that on December 31, 2005
4858	4858	8 served less than 100,000 customers in Illinois;
4859	4859	9 (v) preserve the confidentiality of supplier and
4860	4860	10 bidding information in a manner consistent with all
4861	4861	11 applicable laws, rules, regulations, and tariffs;
4862	4862	12 (vi) provide expert advice to the Commission and
4863	4863	13 consult with the procurement administrator regarding
4864	4864	14 issues related to procurement process design, rules,
4865	4865	15 protocols, and policy-related matters; and
4866	4866	16 (vii) consult with the procurement administrator
4867	4867	17 regarding the development and use of benchmark
4868	4868	18 criteria, standard form contracts, credit policies,
4869	4869	19 and bid documents.
4870	4870	20 (d) Except as provided in subsection (j), the planning
4871	4871	21 process shall be conducted as follows:
4872	4872	22 (1) Beginning in 2008, each Illinois utility procuring
4873	4873	23 power pursuant to this Section shall annually provide a
4874	4874	24 range of load forecasts to the Illinois Power Agency by
4875	4875	25 July 15 of each year, or such other date as may be required
4876	4876	26 by the Commission or Agency. The load forecasts shall
4877	4877
4878	4878
4879	4879
4880	4880
4881	4881
4882	4882	SB2552 - 135 - LRB103 31416 LNS 59082 b
4883	4883
4884	4884
4885	4885	SB2552- 136 -LRB103 31416 LNS 59082 b SB2552 - 136 - LRB103 31416 LNS 59082 b
4886	4886	SB2552 - 136 - LRB103 31416 LNS 59082 b
4887	4887	1 cover the 5-year procurement planning period for the next
4888	4888	2 procurement plan and shall include hourly data
4889	4889	3 representing a high-load, low-load, and expected-load
4890	4890	4 scenario for the load of those retail customers included
4891	4891	5 in the plan's electric supply service requirements. The
4892	4892	6 utility shall provide supporting data and assumptions for
4893	4893	7 each of the scenarios.
4894	4894	8 (2) Beginning in 2008, the Illinois Power Agency shall
4895	4895	9 prepare a procurement plan by August 15th of each year, or
4896	4896	10 such other date as may be required by the Commission. The
4897	4897	11 procurement plan shall identify the portfolio of
4898	4898	12 demand-response and power and energy products to be
4899	4899	13 procured. Cost-effective demand-response measures shall be
4900	4900	14 procured as set forth in item (iii) of subsection (b) of
4901	4901	15 this Section. Copies of the procurement plan shall be
4902	4902	16 posted and made publicly available on the Agency's and
4903	4903	17 Commission's websites, and copies shall also be provided
4904	4904	18 to each affected electric utility. An affected utility
4905	4905	19 shall have 30 days following the date of posting to
4906	4906	20 provide comment to the Agency on the procurement plan.
4907	4907	21 Other interested entities also may comment on the
4908	4908	22 procurement plan. All comments submitted to the Agency
4909	4909	23 shall be specific, supported by data or other detailed
4910	4910	24 analyses, and, if objecting to all or a portion of the
4911	4911	25 procurement plan, accompanied by specific alternative
4912	4912	26 wording or proposals. All comments shall be posted on the
4913	4913
4914	4914
4915	4915
4916	4916
4917	4917
4918	4918	SB2552 - 136 - LRB103 31416 LNS 59082 b
4919	4919
4920	4920
4921	4921	SB2552- 137 -LRB103 31416 LNS 59082 b SB2552 - 137 - LRB103 31416 LNS 59082 b
4922	4922	SB2552 - 137 - LRB103 31416 LNS 59082 b
4923	4923	1 Agency's and Commission's websites. During this 30-day
4924	4924	2 comment period, the Agency shall hold at least one public
4925	4925	3 hearing within each utility's service area for the purpose
4926	4926	4 of receiving public comment on the procurement plan.
4927	4927	5 Within 14 days following the end of the 30-day review
4928	4928	6 period, the Agency shall revise the procurement plan as
4929	4929	7 necessary based on the comments received and file the
4930	4930	8 procurement plan with the Commission and post the
4931	4931	9 procurement plan on the websites.
4932	4932	10 (3) Within 5 days after the filing of the procurement
4933	4933	11 plan, any person objecting to the procurement plan shall
4934	4934	12 file an objection with the Commission. Within 10 days
4935	4935	13 after the filing, the Commission shall determine whether a
4936	4936	14 hearing is necessary. The Commission shall enter its order
4937	4937	15 confirming or modifying the procurement plan within 90
4938	4938	16 days after the filing of the procurement plan by the
4939	4939	17 Illinois Power Agency.
4940	4940	18 (4) The Commission shall approve the procurement plan,
4941	4941	19 including expressly the forecast used in the procurement
4942	4942	20 plan, if the Commission determines that it will ensure
4943	4943	21 adequate, reliable, affordable, efficient, and
4944	4944	22 environmentally sustainable electric service at the lowest
4945	4945	23 total cost over time, taking into account any benefits of
4946	4946	24 price stability.
4947	4947	25 (4.5) The Commission shall review the Agency's
4948	4948	26 recommendations for the selection of applicants to enter
4949	4949
4950	4950
4951	4951
4952	4952
4953	4953
4954	4954	SB2552 - 137 - LRB103 31416 LNS 59082 b
4955	4955
4956	4956
4957	4957	SB2552- 138 -LRB103 31416 LNS 59082 b SB2552 - 138 - LRB103 31416 LNS 59082 b
4958	4958	SB2552 - 138 - LRB103 31416 LNS 59082 b
4959	4959	1 into long-term contracts for the sale and delivery of
4960	4960	2 renewable energy credits from new renewable energy
4961	4961	3 facilities to be constructed at or adjacent to the sites
4962	4962	4 of coal-fueled electric generating facilities in this
4963	4963	5 State in accordance with the provisions of subsection
4964	4964	6 (c-5) of Section 1-75 of the Illinois Power Agency Act,
4965	4965	7 and shall approve the Agency's recommendations if the
4966	4966	8 Commission determines that the applicants recommended by
4967	4967	9 the Agency for selection, the proposed new renewable
4968	4968	10 energy facilities to be constructed, the amounts of
4969	4969	11 renewable energy credits to be delivered pursuant to the
4970	4970	12 contracts, and the other terms of the contracts, are
4971	4971	13 consistent with the requirements of subsection (c-5) of
4972	4972	14 Section 1-75 of the Illinois Power Agency Act.
4973	4973	15 (e) The procurement process shall include each of the
4974	4974	16 following components:
4975	4975	17 (1) Solicitation, pre-qualification, and registration
4976	4976	18 of bidders. The procurement administrator shall
4977	4977	19 disseminate information to potential bidders to promote a
4978	4978	20 procurement event, notify potential bidders that the
4979	4979	21 procurement administrator may enter into a post-bid price
4980	4980	22 negotiation with bidders that meet the applicable
4981	4981	23 benchmarks, provide supply requirements, and otherwise
4982	4982	24 explain the competitive procurement process. In addition
4983	4983	25 to such other publication as the procurement administrator
4984	4984	26 determines is appropriate, this information shall be
4985	4985
4986	4986
4987	4987
4988	4988
4989	4989
4990	4990	SB2552 - 138 - LRB103 31416 LNS 59082 b
4991	4991
4992	4992
4993	4993	SB2552- 139 -LRB103 31416 LNS 59082 b SB2552 - 139 - LRB103 31416 LNS 59082 b
4994	4994	SB2552 - 139 - LRB103 31416 LNS 59082 b
4995	4995	1 posted on the Illinois Power Agency's and the Commission's
4996	4996	2 websites. The procurement administrator shall also
4997	4997	3 administer the prequalification process, including
4998	4998	4 evaluation of credit worthiness, compliance with
4999	4999	5 procurement rules, and agreement to the standard form
5000	5000	6 contract developed pursuant to paragraph (2) of this
5001	5001	7 subsection (e). The procurement administrator shall then
5002	5002	8 identify and register bidders to participate in the
5003	5003	9 procurement event.
5004	5004	10 (2) Standard contract forms and credit terms and
5005	5005	11 instruments. The procurement administrator, in
5006	5006	12 consultation with the utilities, the Commission, and other
5007	5007	13 interested parties and subject to Commission oversight,
5008	5008	14 shall develop and provide standard contract forms for the
5009	5009	15 supplier contracts that meet generally accepted industry
5010	5010	16 practices. Standard credit terms and instruments that meet
5011	5011	17 generally accepted industry practices shall be similarly
5012	5012	18 developed. The procurement administrator shall make
5013	5013	19 available to the Commission all written comments it
5014	5014	20 receives on the contract forms, credit terms, or
5015	5015	21 instruments. If the procurement administrator cannot reach
5016	5016	22 agreement with the applicable electric utility as to the
5017	5017	23 contract terms and conditions, the procurement
5018	5018	24 administrator must notify the Commission of any disputed
5019	5019	25 terms and the Commission shall resolve the dispute. The
5020	5020	26 terms of the contracts shall not be subject to negotiation
5021	5021
5022	5022
5023	5023
5024	5024
5025	5025
5026	5026	SB2552 - 139 - LRB103 31416 LNS 59082 b
5027	5027
5028	5028
5029	5029	SB2552- 140 -LRB103 31416 LNS 59082 b SB2552 - 140 - LRB103 31416 LNS 59082 b
5030	5030	SB2552 - 140 - LRB103 31416 LNS 59082 b
5031	5031	1 by winning bidders, and the bidders must agree to the
5032	5032	2 terms of the contract in advance so that winning bids are
5033	5033	3 selected solely on the basis of price.
5034	5034	4 (3) Establishment of a market-based price benchmark.
5035	5035	5 As part of the development of the procurement process, the
5036	5036	6 procurement administrator, in consultation with the
5037	5037	7 Commission staff, Agency staff, and the procurement
5038	5038	8 monitor, shall establish benchmarks for evaluating the
5039	5039	9 final prices in the contracts for each of the products
5040	5040	10 that will be procured through the procurement process. The
5041	5041	11 benchmarks shall be based on price data for similar
5042	5042	12 products for the same delivery period and same delivery
5043	5043	13 hub, or other delivery hubs after adjusting for that
5044	5044	14 difference. The price benchmarks may also be adjusted to
5045	5045	15 take into account differences between the information
5046	5046	16 reflected in the underlying data sources and the specific
5047	5047	17 products and procurement process being used to procure
5048	5048	18 power for the Illinois utilities. The benchmarks shall be
5049	5049	19 confidential but shall be provided to, and will be subject
5050	5050	20 to Commission review and approval, prior to a procurement
5051	5051	21 event.
5052	5052	22 (4) Request for proposals competitive procurement
5053	5053	23 process. The procurement administrator shall design and
5054	5054	24 issue a request for proposals to supply electricity in
5055	5055	25 accordance with each utility's procurement plan, as
5056	5056	26 approved by the Commission. The request for proposals
5057	5057
5058	5058
5059	5059
5060	5060
5061	5061
5062	5062	SB2552 - 140 - LRB103 31416 LNS 59082 b
5063	5063
5064	5064
5065	5065	SB2552- 141 -LRB103 31416 LNS 59082 b SB2552 - 141 - LRB103 31416 LNS 59082 b
5066	5066	SB2552 - 141 - LRB103 31416 LNS 59082 b
5067	5067	1 shall set forth a procedure for sealed, binding commitment
5068	5068	2 bidding with pay-as-bid settlement, and provision for
5069	5069	3 selection of bids on the basis of price.
5070	5070	4 (5) A plan for implementing contingencies in the event
5071	5071	5 of supplier default or failure of the procurement process
5072	5072	6 to fully meet the expected load requirement due to
5073	5073	7 insufficient supplier participation, Commission rejection
5074	5074	8 of results, or any other cause.
5075	5075	9 (i) Event of supplier default: In the event of
5076	5076	10 supplier default, the utility shall review the
5077	5077	11 contract of the defaulting supplier to determine if
5078	5078	12 the amount of supply is 200 megawatts or greater, and
5079	5079	13 if there are more than 60 days remaining of the
5080	5080	14 contract term. If both of these conditions are met,
5081	5081	15 and the default results in termination of the
5082	5082	16 contract, the utility shall immediately notify the
5083	5083	17 Illinois Power Agency that a request for proposals
5084	5084	18 must be issued to procure replacement power, and the
5085	5085	19 procurement administrator shall run an additional
5086	5086	20 procurement event. If the contracted supply of the
5087	5087	21 defaulting supplier is less than 200 megawatts or
5088	5088	22 there are less than 60 days remaining of the contract
5089	5089	23 term, the utility shall procure power and energy from
5090	5090	24 the applicable regional transmission organization
5091	5091	25 market, including ancillary services, capacity, and
5092	5092	26 day-ahead or real time energy, or both, for the
5093	5093
5094	5094
5095	5095
5096	5096
5097	5097
5098	5098	SB2552 - 141 - LRB103 31416 LNS 59082 b
5099	5099
5100	5100
5101	5101	SB2552- 142 -LRB103 31416 LNS 59082 b SB2552 - 142 - LRB103 31416 LNS 59082 b
5102	5102	SB2552 - 142 - LRB103 31416 LNS 59082 b
5103	5103	1 duration of the contract term to replace the
5104	5104	2 contracted supply; provided, however, that if a needed
5105	5105	3 product is not available through the regional
5106	5106	4 transmission organization market it shall be purchased
5107	5107	5 from the wholesale market.
5108	5108	6 (ii) Failure of the procurement process to fully
5109	5109	7 meet the expected load requirement: If the procurement
5110	5110	8 process fails to fully meet the expected load
5111	5111	9 requirement due to insufficient supplier participation
5112	5112	10 or due to a Commission rejection of the procurement
5113	5113	11 results, the procurement administrator, the
5114	5114	12 procurement monitor, and the Commission staff shall
5115	5115	13 meet within 10 days to analyze potential causes of low
5116	5116	14 supplier interest or causes for the Commission
5117	5117	15 decision. If changes are identified that would likely
5118	5118	16 result in increased supplier participation, or that
5119	5119	17 would address concerns causing the Commission to
5120	5120	18 reject the results of the prior procurement event, the
5121	5121	19 procurement administrator may implement those changes
5122	5122	20 and rerun the request for proposals process according
5123	5123	21 to a schedule determined by those parties and
5124	5124	22 consistent with Section 1-75 of the Illinois Power
5125	5125	23 Agency Act and this subsection. In any event, a new
5126	5126	24 request for proposals process shall be implemented by
5127	5127	25 the procurement administrator within 90 days after the
5128	5128	26 determination that the procurement process has failed
5129	5129
5130	5130
5131	5131
5132	5132
5133	5133
5134	5134	SB2552 - 142 - LRB103 31416 LNS 59082 b
5135	5135
5136	5136
5137	5137	SB2552- 143 -LRB103 31416 LNS 59082 b SB2552 - 143 - LRB103 31416 LNS 59082 b
5138	5138	SB2552 - 143 - LRB103 31416 LNS 59082 b
5139	5139	1 to fully meet the expected load requirement.
5140	5140	2 (iii) In all cases where there is insufficient
5141	5141	3 supply provided under contracts awarded through the
5142	5142	4 procurement process to fully meet the electric
5143	5143	5 utility's load requirement, the utility shall meet the
5144	5144	6 load requirement by procuring power and energy from
5145	5145	7 the applicable regional transmission organization
5146	5146	8 market, including ancillary services, capacity, and
5147	5147	9 day-ahead or real time energy, or both; provided,
5148	5148	10 however, that if a needed product is not available
5149	5149	11 through the regional transmission organization market
5150	5150	12 it shall be purchased from the wholesale market.
5151	5151	13 (6) The procurement processes described in this
5152	5152	14 subsection and in subsection (c-5) of Section 1-75 of the
5153	5153	15 Illinois Power Agency Act are exempt from the requirements
5154	5154	16 of the Illinois Procurement Code, pursuant to Section
5155	5155	17 20-10 of that Code.
5156	5156	18 (f) Within 2 business days after opening the sealed bids,
5157	5157	19 the procurement administrator shall submit a confidential
5158	5158	20 report to the Commission. The report shall contain the results
5159	5159	21 of the bidding for each of the products along with the
5160	5160	22 procurement administrator's recommendation for the acceptance
5161	5161	23 and rejection of bids based on the price benchmark criteria
5162	5162	24 and other factors observed in the process. The procurement
5163	5163	25 monitor also shall submit a confidential report to the
5164	5164	26 Commission within 2 business days after opening the sealed
5165	5165
5166	5166
5167	5167
5168	5168
5169	5169
5170	5170	SB2552 - 143 - LRB103 31416 LNS 59082 b
5171	5171
5172	5172
5173	5173	SB2552- 144 -LRB103 31416 LNS 59082 b SB2552 - 144 - LRB103 31416 LNS 59082 b
5174	5174	SB2552 - 144 - LRB103 31416 LNS 59082 b
5175	5175	1 bids. The report shall contain the procurement monitor's
5176	5176	2 assessment of bidder behavior in the process as well as an
5177	5177	3 assessment of the procurement administrator's compliance with
5178	5178	4 the procurement process and rules. The Commission shall review
5179	5179	5 the confidential reports submitted by the procurement
5180	5180	6 administrator and procurement monitor, and shall accept or
5181	5181	7 reject the recommendations of the procurement administrator
5182	5182	8 within 2 business days after receipt of the reports.
5183	5183	9 (g) Within 3 business days after the Commission decision
5184	5184	10 approving the results of a procurement event, the utility
5185	5185	11 shall enter into binding contractual arrangements with the
5186	5186	12 winning suppliers using the standard form contracts; except
5187	5187	13 that the utility shall not be required either directly or
5188	5188	14 indirectly to execute the contracts if a tariff that is
5189	5189	15 consistent with subsection (l) of this Section has not been
5190	5190	16 approved and placed into effect for that utility.
5191	5191	17 (h) For the procurement of standard wholesale products,
5192	5192	18 the names of the successful bidders and the load weighted
5193	5193	19 average of the winning bid prices for each contract type and
5194	5194	20 for each contract term shall be made available to the public at
5195	5195	21 the time of Commission approval of a procurement event. For
5196	5196	22 procurements conducted to meet the requirements of subsection
5197	5197	23 (b) of Section 1-56 or subsection (c) of Section 1-75 of the
5198	5198	24 Illinois Power Agency Act governed by the provisions of this
5199	5199	25 Section, the address and nameplate capacity of the new
5200	5200	26 renewable energy generating facility proposed by a winning
5201	5201
5202	5202
5203	5203
5204	5204
5205	5205
5206	5206	SB2552 - 144 - LRB103 31416 LNS 59082 b
5207	5207
5208	5208
5209	5209	SB2552- 145 -LRB103 31416 LNS 59082 b SB2552 - 145 - LRB103 31416 LNS 59082 b
5210	5210	SB2552 - 145 - LRB103 31416 LNS 59082 b
5211	5211	1 bidder shall also be made available to the public at the time
5212	5212	2 of Commission approval of a procurement event, along with the
5213	5213	3 business address and contact information for any winning
5214	5214	4 bidder. An estimate or approximation of the nameplate capacity
5215	5215	5 of the new renewable energy generating facility may be
5216	5216	6 disclosed if necessary to protect the confidentiality of
5217	5217	7 individual bid prices.
5218	5218	8 The Commission, the procurement monitor, the procurement
5219	5219	9 administrator, the Illinois Power Agency, and all participants
5220	5220	10 in the procurement process shall maintain the confidentiality
5221	5221	11 of all other supplier and bidding information in a manner
5222	5222	12 consistent with all applicable laws, rules, regulations, and
5223	5223	13 tariffs. Confidential information, including the confidential
5224	5224	14 reports submitted by the procurement administrator and
5225	5225	15 procurement monitor pursuant to subsection (f) of this
5226	5226	16 Section, shall not be made publicly available and shall not be
5227	5227	17 discoverable by any party in any proceeding, absent a
5228	5228	18 compelling demonstration of need, nor shall those reports be
5229	5229	19 admissible in any proceeding other than one for law
5230	5230	20 enforcement purposes.
5231	5231	21 (i) Within 2 business days after a Commission decision
5232	5232	22 approving the results of a procurement event or such other
5233	5233	23 date as may be required by the Commission from time to time,
5234	5234	24 the utility shall file for informational purposes with the
5235	5235	25 Commission its actual or estimated retail supply charges, as
5236	5236	26 applicable, by customer supply group reflecting the costs
5237	5237
5238	5238
5239	5239
5240	5240
5241	5241
5242	5242	SB2552 - 145 - LRB103 31416 LNS 59082 b
5243	5243
5244	5244
5245	5245	SB2552- 146 -LRB103 31416 LNS 59082 b SB2552 - 146 - LRB103 31416 LNS 59082 b
5246	5246	SB2552 - 146 - LRB103 31416 LNS 59082 b
5247	5247	1 associated with the procurement and computed in accordance
5248	5248	2 with the tariffs filed pursuant to subsection (l) of this
5249	5249	3 Section and approved by the Commission.
5250	5250	4 (j) Within 60 days following August 28, 2007 (the
5251	5251	5 effective date of Public Act 95-481), each electric utility
5252	5252	6 that on December 31, 2005 provided electric service to at
5253	5253	7 least 100,000 customers in Illinois shall prepare and file
5254	5254	8 with the Commission an initial procurement plan, which shall
5255	5255	9 conform in all material respects to the requirements of the
5256	5256	10 procurement plan set forth in subsection (b); provided,
5257	5257	11 however, that the Illinois Power Agency Act shall not apply to
5258	5258	12 the initial procurement plan prepared pursuant to this
5259	5259	13 subsection. The initial procurement plan shall identify the
5260	5260	14 portfolio of power and energy products to be procured and
5261	5261	15 delivered for the period June 2008 through May 2009, and shall
5262	5262	16 identify the proposed procurement administrator, who shall
5263	5263	17 have the same experience and expertise as is required of a
5264	5264	18 procurement administrator hired pursuant to Section 1-75 of
5265	5265	19 the Illinois Power Agency Act. Copies of the procurement plan
5266	5266	20 shall be posted and made publicly available on the
5267	5267	21 Commission's website. The initial procurement plan may include
5268	5268	22 contracts for renewable resources that extend beyond May 2009.
5269	5269	23 (i) Within 14 days following filing of the initial
5270	5270	24 procurement plan, any person may file a detailed objection
5271	5271	25 with the Commission contesting the procurement plan
5272	5272	26 submitted by the electric utility. All objections to the
5273	5273
5274	5274
5275	5275
5276	5276
5277	5277
5278	5278	SB2552 - 146 - LRB103 31416 LNS 59082 b
5279	5279
5280	5280
5281	5281	SB2552- 147 -LRB103 31416 LNS 59082 b SB2552 - 147 - LRB103 31416 LNS 59082 b
5282	5282	SB2552 - 147 - LRB103 31416 LNS 59082 b
5283	5283	1 electric utility's plan shall be specific, supported by
5284	5284	2 data or other detailed analyses. The electric utility may
5285	5285	3 file a response to any objections to its procurement plan
5286	5286	4 within 7 days after the date objections are due to be
5287	5287	5 filed. Within 7 days after the date the utility's response
5288	5288	6 is due, the Commission shall determine whether a hearing
5289	5289	7 is necessary. If it determines that a hearing is
5290	5290	8 necessary, it shall require the hearing to be completed
5291	5291	9 and issue an order on the procurement plan within 60 days
5292	5292	10 after the filing of the procurement plan by the electric
5293	5293	11 utility.
5294	5294	12 (ii) The order shall approve or modify the procurement
5295	5295	13 plan, approve an independent procurement administrator,
5296	5296	14 and approve or modify the electric utility's tariffs that
5297	5297	15 are proposed with the initial procurement plan. The
5298	5298	16 Commission shall approve the procurement plan if the
5299	5299	17 Commission determines that it will ensure adequate,
5300	5300	18 reliable, affordable, efficient, and environmentally
5301	5301	19 sustainable electric service at the lowest total cost over
5302	5302	20 time, taking into account any benefits of price stability.
5303	5303	21 (k) (Blank).
5304	5304	22 (k-5) (Blank).
5305	5305	23 (l) An electric utility shall recover its costs incurred
5306	5306	24 under this Section and subsection (c-5) of Section 1-75 of the
5307	5307	25 Illinois Power Agency Act, including, but not limited to, the
5308	5308	26 costs of procuring power and energy demand-response resources
5309	5309
5310	5310
5311	5311
5312	5312
5313	5313
5314	5314	SB2552 - 147 - LRB103 31416 LNS 59082 b
5315	5315
5316	5316
5317	5317	SB2552- 148 -LRB103 31416 LNS 59082 b SB2552 - 148 - LRB103 31416 LNS 59082 b
5318	5318	SB2552 - 148 - LRB103 31416 LNS 59082 b
5319	5319	1 under this Section and its costs for purchasing renewable
5320	5320	2 energy credits pursuant to subsection (c-5) of Section 1-75 of
5321	5321	3 the Illinois Power Agency Act. The utility shall file with the
5322	5322	4 initial procurement plan its proposed tariffs through which
5323	5323	5 its costs of procuring power that are incurred pursuant to a
5324	5324	6 Commission-approved procurement plan and those other costs
5325	5325	7 identified in this subsection (l), will be recovered. The
5326	5326	8 tariffs shall include a formula rate or charge designed to
5327	5327	9 pass through both the costs incurred by the utility in
5328	5328	10 procuring a supply of electric power and energy for the
5329	5329	11 applicable customer classes with no mark-up or return on the
5330	5330	12 price paid by the utility for that supply, plus any just and
5331	5331	13 reasonable costs that the utility incurs in arranging and
5332	5332	14 providing for the supply of electric power and energy. The
5333	5333	15 formula rate or charge shall also contain provisions that
5334	5334	16 ensure that its application does not result in over or under
5335	5335	17 recovery due to changes in customer usage and demand patterns,
5336	5336	18 and that provide for the correction, on at least an annual
5337	5337	19 basis, of any accounting errors that may occur. A utility
5338	5338	20 shall recover through the tariff all reasonable costs incurred
5339	5339	21 to implement or comply with any procurement plan that is
5340	5340	22 developed and put into effect pursuant to Section 1-75 of the
5341	5341	23 Illinois Power Agency Act and this Section, and for the
5342	5342	24 procurement of renewable energy credits pursuant to subsection
5343	5343	25 (c-5) of Section 1-75 of the Illinois Power Agency Act,
5344	5344	26 including any fees assessed by the Illinois Power Agency,
5345	5345
5346	5346
5347	5347
5348	5348
5349	5349
5350	5350	SB2552 - 148 - LRB103 31416 LNS 59082 b
5351	5351
5352	5352
5353	5353	SB2552- 149 -LRB103 31416 LNS 59082 b SB2552 - 149 - LRB103 31416 LNS 59082 b
5354	5354	SB2552 - 149 - LRB103 31416 LNS 59082 b
5355	5355	1 costs associated with load balancing, and contingency plan
5356	5356	2 costs. The electric utility shall also recover its full costs
5357	5357	3 of procuring electric supply for which it contracted before
5358	5358	4 the effective date of this Section in conjunction with the
5359	5359	5 provision of full requirements service under fixed-price
5360	5360	6 bundled service tariffs subsequent to December 31, 2006. All
5361	5361	7 such costs shall be deemed to have been prudently incurred.
5362	5362	8 The pass-through tariffs that are filed and approved pursuant
5363	5363	9 to this Section shall not be subject to review under, or in any
5364	5364	10 way limited by, Section 16-111(i) of this Act. All of the costs
5365	5365	11 incurred by the electric utility associated with the purchase
5366	5366	12 of zero emission credits in accordance with subsection (d-5)
5367	5367	13 of Section 1-75 of the Illinois Power Agency Act, all costs
5368	5368	14 incurred by the electric utility associated with the purchase
5369	5369	15 of carbon mitigation credits in accordance with subsection
5370	5370	16 (d-10) of Section 1-75 of the Illinois Power Agency Act, and,
5371	5371	17 beginning June 1, 2017, all of the costs incurred by the
5372	5372	18 electric utility associated with the purchase of renewable
5373	5373	19 energy resources in accordance with Sections 1-56 and 1-75 of
5374	5374	20 the Illinois Power Agency Act, and all of the costs incurred by
5375	5375	21 the electric utility in purchasing renewable energy credits in
5376	5376	22 accordance with subsection (c-5) of Section 1-75 of the
5377	5377	23 Illinois Power Agency Act, shall be recovered through the
5378	5378	24 electric utility's tariffed charges applicable to all of its
5379	5379	25 retail customers, as specified in subsection (k) or subsection
5380	5380	26 (i-5), as applicable, of Section 16-108 of this Act, and shall
5381	5381
5382	5382
5383	5383
5384	5384
5385	5385
5386	5386	SB2552 - 149 - LRB103 31416 LNS 59082 b
5387	5387
5388	5388
5389	5389	SB2552- 150 -LRB103 31416 LNS 59082 b SB2552 - 150 - LRB103 31416 LNS 59082 b
5390	5390	SB2552 - 150 - LRB103 31416 LNS 59082 b
5391	5391	1 not be recovered through the electric utility's tariffed
5392	5392	2 charges for electric power and energy supply to its eligible
5393	5393	3 retail customers.
5394	5394	4 (m) The Commission has the authority to adopt rules to
5395	5395	5 carry out the provisions of this Section. For the public
5396	5396	6 interest, safety, and welfare, the Commission also has
5397	5397	7 authority to adopt rules to carry out the provisions of this
5398	5398	8 Section on an emergency basis immediately following August 28,
5399	5399	9 2007 (the effective date of Public Act 95-481).
5400	5400	10 (n) Notwithstanding any other provision of this Act, any
5401	5401	11 affiliated electric utilities that submit a single procurement
5402	5402	12 plan covering their combined needs may procure for those
5403	5403	13 combined needs in conjunction with that plan, and may enter
5404	5404	14 jointly into power supply contracts, purchases, and other
5405	5405	15 procurement arrangements, and allocate capacity and energy and
5406	5406	16 cost responsibility therefor among themselves in proportion to
5407	5407	17 their requirements.
5408	5408	18 (o) On or before June 1 of each year, the Commission shall
5409	5409	19 hold an informal hearing for the purpose of receiving comments
5410	5410	20 on the prior year's procurement process and any
5411	5411	21 recommendations for change.
5412	5412	22 (p) An electric utility subject to this Section may
5413	5413	23 propose to invest, lease, own, or operate an electric
5414	5414	24 generation facility as part of its procurement plan, provided
5415	5415	25 the utility demonstrates that such facility is the least-cost
5416	5416	26 option to provide electric service to those retail customers
5417	5417
5418	5418
5419	5419
5420	5420
5421	5421
5422	5422	SB2552 - 150 - LRB103 31416 LNS 59082 b
5423	5423
5424	5424
5425	5425	SB2552- 151 -LRB103 31416 LNS 59082 b SB2552 - 151 - LRB103 31416 LNS 59082 b
5426	5426	SB2552 - 151 - LRB103 31416 LNS 59082 b
5427	5427	1 included in the plan's electric supply service requirements.
5428	5428	2 If the facility is shown to be the least-cost option and is
5429	5429	3 included in a procurement plan prepared in accordance with
5430	5430	4 Section 1-75 of the Illinois Power Agency Act and this
5431	5431	5 Section, then the electric utility shall make a filing
5432	5432	6 pursuant to Section 8-406 of this Act, and may request of the
5433	5433	7 Commission any statutory relief required thereunder. If the
5434	5434	8 Commission grants all of the necessary approvals for the
5435	5435	9 proposed facility, such supply shall thereafter be considered
5436	5436	10 as a pre-existing contract under subsection (b) of this
5437	5437	11 Section. The Commission shall in any order approving a
5438	5438	12 proposal under this subsection specify how the utility will
5439	5439	13 recover the prudently incurred costs of investing in, leasing,
5440	5440	14 owning, or operating such generation facility through just and
5441	5441	15 reasonable rates charged to those retail customers included in
5442	5442	16 the plan's electric supply service requirements. Cost recovery
5443	5443	17 for facilities included in the utility's procurement plan
5444	5444	18 pursuant to this subsection shall not be subject to review
5445	5445	19 under or in any way limited by the provisions of Section
5446	5446	20 16-111(i) of this Act. Nothing in this Section is intended to
5447	5447	21 prohibit a utility from filing for a fuel adjustment clause as
5448	5448	22 is otherwise permitted under Section 9-220 of this Act.
5449	5449	23 (q) If the Illinois Power Agency filed with the
5450	5450	24 Commission, under Section 16-111.5 of this Act, its proposed
5451	5451	25 procurement plan for the period commencing June 1, 2017, and
5452	5452	26 the Commission has not yet entered its final order approving
5453	5453
5454	5454
5455	5455
5456	5456
5457	5457
5458	5458	SB2552 - 151 - LRB103 31416 LNS 59082 b
5459	5459
5460	5460
5461	5461	SB2552- 152 -LRB103 31416 LNS 59082 b SB2552 - 152 - LRB103 31416 LNS 59082 b
5462	5462	SB2552 - 152 - LRB103 31416 LNS 59082 b
5463	5463	1 the plan on or before the effective date of this amendatory Act
5464	5464	2 of the 99th General Assembly, then the Illinois Power Agency
5465	5465	3 shall file a notice of withdrawal with the Commission, after
5466	5466	4 the effective date of this amendatory Act of the 99th General
5467	5467	5 Assembly, to withdraw the proposed procurement of renewable
5468	5468	6 energy resources to be approved under the plan, other than the
5469	5469	7 procurement of renewable energy credits from distributed
5470	5470	8 renewable energy generation devices using funds previously
5471	5471	9 collected from electric utilities' retail customers that take
5472	5472	10 service pursuant to electric utilities' hourly pricing tariff
5473	5473	11 or tariffs and, for an electric utility that serves less than
5474	5474	12 100,000 retail customers in the State, other than the
5475	5475	13 procurement of renewable energy credits from distributed
5476	5476	14 renewable energy generation devices. Upon receipt of the
5477	5477	15 notice, the Commission shall enter an order that approves the
5478	5478	16 withdrawal of the proposed procurement of renewable energy
5479	5479	17 resources from the plan. The initially proposed procurement of
5480	5480	18 renewable energy resources shall not be approved or be the
5481	5481	19 subject of any further hearing, investigation, proceeding, or
5482	5482	20 order of any kind.
5483	5483	21 This amendatory Act of the 99th General Assembly preempts
5484	5484	22 and supersedes any order entered by the Commission that
5485	5485	23 approved the Illinois Power Agency's procurement plan for the
5486	5486	24 period commencing June 1, 2017, to the extent it is
5487	5487	25 inconsistent with the provisions of this amendatory Act of the
5488	5488	26 99th General Assembly. To the extent any previously entered
5489	5489
5490	5490
5491	5491
5492	5492
5493	5493
5494	5494	SB2552 - 152 - LRB103 31416 LNS 59082 b
5495	5495
5496	5496
5497	5497	SB2552- 153 -LRB103 31416 LNS 59082 b SB2552 - 153 - LRB103 31416 LNS 59082 b
5498	5498	SB2552 - 153 - LRB103 31416 LNS 59082 b
5499	5499	1 order approved the procurement of renewable energy resources,
5500	5500	2 the portion of that order approving the procurement shall be
5501	5501	3 void, other than the procurement of renewable energy credits
5502	5502	4 from distributed renewable energy generation devices using
5503	5503	5 funds previously collected from electric utilities' retail
5504	5504	6 customers that take service under electric utilities' hourly
5505	5505	7 pricing tariff or tariffs and, for an electric utility that
5506	5506	8 serves less than 100,000 retail customers in the State, other
5507	5507	9 than the procurement of renewable energy credits for
5508	5508	10 distributed renewable energy generation devices.
5509	5509	11 (Source: P.A. 102-662, eff. 9-15-21.)
5510	5510	12 (220 ILCS 5/16-115)
5511	5511	13 Sec. 16-115. Certification of alternative retail electric
5512	5512	14 suppliers.
5513	5513	15 (a) Any alternative retail electric supplier must obtain a
5514	5514	16 certificate of service authority from the Commission in
5515	5515	17 accordance with this Section before serving any retail
5516	5516	18 customer or other user located in this State. An alternative
5517	5517	19 retail electric supplier may request, and the Commission may
5518	5518	20 grant, a certificate of service authority for the entire State
5519	5519	21 or for a specified geographic area of the State. A certificate
5520	5520	22 granted pursuant to this Section is not property, and the
5521	5521	23 grant of a certificate to an entity does not create a property
5522	5522	24 interest in the certificate. This Section does not diminish
5523	5523	25 the existing rights of a certificate holder to notice and
5524	5524
5525	5525
5526	5526
5527	5527
5528	5528
5529	5529	SB2552 - 153 - LRB103 31416 LNS 59082 b
5530	5530
5531	5531
5532	5532	SB2552- 154 -LRB103 31416 LNS 59082 b SB2552 - 154 - LRB103 31416 LNS 59082 b
5533	5533	SB2552 - 154 - LRB103 31416 LNS 59082 b
5534	5534	1 hearing as proscribed by the Illinois Administrative Procedure
5535	5535	2 Act and in rules adopted by the Commission.
5536	5536	3 (b) An alternative retail electric supplier seeking a
5537	5537	4 certificate of service authority shall file with the
5538	5538	5 Commission a verified application containing information
5539	5539	6 showing that the applicant meets the requirements of this
5540	5540	7 Section. The alternative retail electric supplier shall
5541	5541	8 publish notice of its application in the official State
5542	5542	9 newspaper within 10 days following the date of its filing. No
5543	5543	10 later than 45 days after a complete application is properly
5544	5544	11 filed with the Commission, and such notice is published, the
5545	5545	12 Commission shall issue its order granting or denying the
5546	5546	13 application.
5547	5547	14 (c) An application for a certificate of service authority
5548	5548	15 shall identify the area or areas in which the applicant
5549	5549	16 intends to offer service and the types of services it intends
5550	5550	17 to offer. Applicants that seek to serve residential or small
5551	5551	18 commercial retail customers within a geographic area that is
5552	5552	19 smaller than an electric utility's service area shall submit
5553	5553	20 evidence demonstrating that the designation of this smaller
5554	5554	21 area does not violate Section 16-115A. An applicant that seeks
5555	5555	22 to serve residential or small commercial retail customers may
5556	5556	23 state in its application for certification any limitations
5557	5557	24 that will be imposed on the number of customers or maximum load
5558	5558	25 to be served.
5559	5559	26 (d) The Commission shall grant the application for a
5560	5560
5561	5561
5562	5562
5563	5563
5564	5564
5565	5565	SB2552 - 154 - LRB103 31416 LNS 59082 b
5566	5566
5567	5567
5568	5568	SB2552- 155 -LRB103 31416 LNS 59082 b SB2552 - 155 - LRB103 31416 LNS 59082 b
5569	5569	SB2552 - 155 - LRB103 31416 LNS 59082 b
5570	5570	1 certificate of service authority if it makes the findings set
5571	5571	2 forth in this subsection based on the verified application and
5572	5572	3 such other information as the applicant may submit:
5573	5573	4 (1) That the applicant possesses sufficient technical,
5574	5574	5 financial, and managerial resources and abilities to
5575	5575	6 provide the service for which it seeks a certificate of
5576	5576	7 service authority. In determining the level of technical,
5577	5577	8 financial, and managerial resources and abilities which
5578	5578	9 the applicant must demonstrate, the Commission shall
5579	5579	10 consider (i) the characteristics, including the size and
5580	5580	11 financial sophistication, of the customers that the
5581	5581	12 applicant seeks to serve, and (ii) whether the applicant
5582	5582	13 seeks to provide electric power and energy using property,
5583	5583	14 plant, and equipment which it owns, controls, or operates;
5584	5584	15 (2) That the applicant will comply with all applicable
5585	5585	16 federal, State, regional, and industry rules, policies,
5586	5586	17 practices, and procedures for the use, operation, and
5587	5587	18 maintenance of the safety, integrity, and reliability, of
5588	5588	19 the interconnected electric transmission system;
5589	5589	20 (3) That the applicant will only provide service to
5590	5590	21 retail customers in an electric utility's service area
5591	5591	22 that are eligible to take delivery services under this
5592	5592	23 Act;
5593	5593	24 (4) That the applicant will comply with such
5594	5594	25 informational or reporting requirements as the Commission
5595	5595	26 may by rule establish and provide the information required
5596	5596
5597	5597
5598	5598
5599	5599
5600	5600
5601	5601	SB2552 - 155 - LRB103 31416 LNS 59082 b
5602	5602
5603	5603
5604	5604	SB2552- 156 -LRB103 31416 LNS 59082 b SB2552 - 156 - LRB103 31416 LNS 59082 b
5605	5605	SB2552 - 156 - LRB103 31416 LNS 59082 b
5606	5606	1 by Section 16-112. Any data related to contracts for the
5607	5607	2 purchase and sale of electric power and energy shall be
5608	5608	3 made available for review by the Staff of the Commission
5609	5609	4 on a confidential and proprietary basis and only to the
5610	5610	5 extent and for the purposes which the Commission
5611	5611	6 determines are reasonably necessary in order to carry out
5612	5612	7 the purposes of this Act;
5613	5613	8 (5) That the applicant will procure renewable energy
5614	5614	9 resources and comply with the capacity portfolio
5615	5615	10 requirement in accordance with Section 16-115D of this
5616	5616	11 Act, and will source electricity from clean coal
5617	5617	12 facilities, as defined in Section 1-10 of the Illinois
5618	5618	13 Power Agency Act, in amounts at least equal to the
5619	5619	14 percentages set forth in subsections (c) and (d) of
5620	5620	15 Section 1-75 of the Illinois Power Agency Act. For
5621	5621	16 purposes of this Section:
5622	5622	17 (i) (blank);
5623	5623	18 (ii) (blank);
5624	5624	19 (iii) the required sourcing of electricity
5625	5625	20 generated by clean coal facilities, other than the
5626	5626	21 initial clean coal facility, shall be limited to the
5627	5627	22 amount of electricity that can be procured or sourced
5628	5628	23 at a price at or below the benchmarks approved by the
5629	5629	24 Commission each year in accordance with item (1) of
5630	5630	25 subsection (c) and items (1) and (5) of subsection (d)
5631	5631	26 of Section 1-75 of the Illinois Power Agency Act;
5632	5632
5633	5633
5634	5634
5635	5635
5636	5636
5637	5637	SB2552 - 156 - LRB103 31416 LNS 59082 b
5638	5638
5639	5639
5640	5640	SB2552- 157 -LRB103 31416 LNS 59082 b SB2552 - 157 - LRB103 31416 LNS 59082 b
5641	5641	SB2552 - 157 - LRB103 31416 LNS 59082 b
5642	5642	1 (iv) all alternative retail electric suppliers
5643	5643	2 shall execute a sourcing agreement to source
5644	5644	3 electricity from the initial clean coal facility, on
5645	5645	4 the terms set forth in paragraphs (3) and (4) of
5646	5646	5 subsection (d) of Section 1-75 of the Illinois Power
5647	5647	6 Agency Act, except that in lieu of the requirements in
5648	5648	7 subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of
5649	5649	8 paragraph (3) of that subsection (d), the applicant
5650	5650	9 shall execute one or more of the following:
5651	5651	10 (1) if the sourcing agreement is a power
5652	5652	11 purchase agreement, a contract with the initial
5653	5653	12 clean coal facility to purchase in each hour an
5654	5654	13 amount of electricity equal to all clean coal
5655	5655	14 energy made available from the initial clean coal
5656	5656	15 facility during such hour, which the utilities are
5657	5657	16 not required to procure under the terms of
5658	5658	17 subsection (d) of Section 1-75 of the Illinois
5659	5659	18 Power Agency Act, multiplied by a fraction, the
5660	5660	19 numerator of which is the alternative retail
5661	5661	20 electric supplier's retail market sales of
5662	5662	21 electricity (expressed in kilowatthours sold) in
5663	5663	22 the State during the prior calendar month and the
5664	5664	23 denominator of which is the total sales of
5665	5665	24 electricity (expressed in kilowatthours sold) in
5666	5666	25 the State by alternative retail electric suppliers
5667	5667	26 during such prior month that are subject to the
5668	5668
5669	5669
5670	5670
5671	5671
5672	5672
5673	5673	SB2552 - 157 - LRB103 31416 LNS 59082 b
5674	5674
5675	5675
5676	5676	SB2552- 158 -LRB103 31416 LNS 59082 b SB2552 - 158 - LRB103 31416 LNS 59082 b
5677	5677	SB2552 - 158 - LRB103 31416 LNS 59082 b
5678	5678	1 requirements of this paragraph (5) of subsection
5679	5679	2 (d) of this Section and subsection (d) of Section
5680	5680	3 1-75 of the Illinois Power Agency Act plus the
5681	5681	4 total sales of electricity (expressed in
5682	5682	5 kilowatthours sold) by utilities outside of their
5683	5683	6 service areas during such prior month, pursuant to
5684	5684	7 subsection (c) of Section 16-116 of this Act; or
5685	5685	8 (2) if the sourcing agreement is a contract
5686	5686	9 for differences, a contract with the initial clean
5687	5687	10 coal facility in each hour with respect to an
5688	5688	11 amount of electricity equal to all clean coal
5689	5689	12 energy made available from the initial clean coal
5690	5690	13 facility during such hour, which the utilities are
5691	5691	14 not required to procure under the terms of
5692	5692	15 subsection (d) of Section 1-75 of the Illinois
5693	5693	16 Power Agency Act, multiplied by a fraction, the
5694	5694	17 numerator of which is the alternative retail
5695	5695	18 electric supplier's retail market sales of
5696	5696	19 electricity (expressed in kilowatthours sold) in
5697	5697	20 the State during the prior calendar month and the
5698	5698	21 denominator of which is the total sales of
5699	5699	22 electricity (expressed in kilowatthours sold) in
5700	5700	23 the State by alternative retail electric suppliers
5701	5701	24 during such prior month that are subject to the
5702	5702	25 requirements of this paragraph (5) of subsection
5703	5703	26 (d) of this Section and subsection (d) of Section
5704	5704
5705	5705
5706	5706
5707	5707
5708	5708
5709	5709	SB2552 - 158 - LRB103 31416 LNS 59082 b
5710	5710
5711	5711
5712	5712	SB2552- 159 -LRB103 31416 LNS 59082 b SB2552 - 159 - LRB103 31416 LNS 59082 b
5713	5713	SB2552 - 159 - LRB103 31416 LNS 59082 b
5714	5714	1 1-75 of the Illinois Power Agency Act plus the
5715	5715	2 total sales of electricity (expressed in
5716	5716	3 kilowatthours sold) by utilities outside of their
5717	5717	4 service areas during such prior month, pursuant to
5718	5718	5 subsection (c) of Section 16-116 of this Act;
5719	5719	6 (v) if, in any year after the first year of
5720	5720	7 commercial operation, the owner of the clean coal
5721	5721	8 facility fails to demonstrate to the Commission that
5722	5722	9 the initial clean coal facility captured and
5723	5723	10 sequestered at least 50% of the total carbon emissions
5724	5724	11 that the facility would otherwise emit or that
5725	5725	12 sequestration of emissions from prior years has
5726	5726	13 failed, resulting in the release of carbon into the
5727	5727	14 atmosphere, the owner of the facility must offset
5728	5728	15 excess emissions. Any such carbon offsets must be
5729	5729	16 permanent, additional, verifiable, real, located
5730	5730	17 within the State of Illinois, and legally and
5731	5731	18 practicably enforceable. The costs of any such offsets
5732	5732	19 that are not recoverable shall not exceed $15,000,000
5733	5733	20 in any given year. No costs of any such purchases of
5734	5734	21 carbon offsets may be recovered from an alternative
5735	5735	22 retail electric supplier or its customers. All carbon
5736	5736	23 offsets purchased for this purpose and any carbon
5737	5737	24 emission credits associated with sequestration of
5738	5738	25 carbon from the facility must be permanently retired.
5739	5739	26 The initial clean coal facility shall not forfeit its
5740	5740
5741	5741
5742	5742
5743	5743
5744	5744
5745	5745	SB2552 - 159 - LRB103 31416 LNS 59082 b
5746	5746
5747	5747
5748	5748	SB2552- 160 -LRB103 31416 LNS 59082 b SB2552 - 160 - LRB103 31416 LNS 59082 b
5749	5749	SB2552 - 160 - LRB103 31416 LNS 59082 b
5750	5750	1 designation as a clean coal facility if the facility
5751	5751	2 fails to fully comply with the applicable carbon
5752	5752	3 sequestration requirements in any given year, provided
5753	5753	4 the requisite offsets are purchased. However, the
5754	5754	5 Attorney General, on behalf of the People of the State
5755	5755	6 of Illinois, may specifically enforce the facility's
5756	5756	7 sequestration requirement and the other terms of this
5757	5757	8 contract provision. Compliance with the sequestration
5758	5758	9 requirements and offset purchase requirements that
5759	5759	10 apply to the initial clean coal facility shall be
5760	5760	11 reviewed annually by an independent expert retained by
5761	5761	12 the owner of the initial clean coal facility, with the
5762	5762	13 advance written approval of the Attorney General;
5763	5763	14 (vi) The Commission shall, after notice and
5764	5764	15 hearing, revoke the certification of any alternative
5765	5765	16 retail electric supplier that fails to execute a
5766	5766	17 sourcing agreement with the initial clean coal
5767	5767	18 facility as required by item (5) of subsection (d) of
5768	5768	19 this Section. The sourcing agreements with this
5769	5769	20 initial clean coal facility shall be subject to both
5770	5770	21 approval of the initial clean coal facility by the
5771	5771	22 General Assembly and satisfaction of the requirements
5772	5772	23 of item (4) of subsection (d) of Section 1-75 of the
5773	5773	24 Illinois Power Agency Act, and shall be executed
5774	5774	25 within 90 days after any such approval by the General
5775	5775	26 Assembly. The Commission shall not accept an
5776	5776
5777	5777
5778	5778
5779	5779
5780	5780
5781	5781	SB2552 - 160 - LRB103 31416 LNS 59082 b
5782	5782
5783	5783
5784	5784	SB2552- 161 -LRB103 31416 LNS 59082 b SB2552 - 161 - LRB103 31416 LNS 59082 b
5785	5785	SB2552 - 161 - LRB103 31416 LNS 59082 b
5786	5786	1 application for certification from an alternative
5787	5787	2 retail electric supplier that has lost certification
5788	5788	3 under this subsection (d), or any corporate affiliate
5789	5789	4 thereof, for at least one year from the date of
5790	5790	5 revocation;
5791	5791	6 (6) With respect to an applicant that seeks to serve
5792	5792	7 residential or small commercial retail customers, that the
5793	5793	8 area to be served by the applicant and any limitations it
5794	5794	9 proposes on the number of customers or maximum amount of
5795	5795	10 load to be served meet the provisions of Section 16-115A,
5796	5796	11 provided, that the Commission can extend the time for
5797	5797	12 considering such a certificate request by up to 90 days,
5798	5798	13 and can schedule hearings on such a request;
5799	5799	14 (7) That the applicant meets the requirements of
5800	5800	15 subsection (a) of Section 16-128;
5801	5801	16 (8) That the applicant discloses whether the applicant
5802	5802	17 is the subject of any lawsuit filed in a court of law or
5803	5803	18 formal complaint filed with a regulatory agency alleging
5804	5804	19 fraud, deception, or unfair marketing practices or other
5805	5805	20 similar allegations and, if the applicant is the subject
5806	5806	21 of such lawsuit or formal complaint, the applicant shall
5807	5807	22 identify the name, case number, and jurisdiction of each
5808	5808	23 lawsuit or complaint, and that the applicant is capable of
5809	5809	24 fulfilling its obligations as an alternative retail
5810	5810	25 electric supplier in Illinois notwithstanding any lawsuit
5811	5811	26 or complaint. For the purpose of this item (8), "formal
5812	5812
5813	5813
5814	5814
5815	5815
5816	5816
5817	5817	SB2552 - 161 - LRB103 31416 LNS 59082 b
5818	5818
5819	5819
5820	5820	SB2552- 162 -LRB103 31416 LNS 59082 b SB2552 - 162 - LRB103 31416 LNS 59082 b
5821	5821	SB2552 - 162 - LRB103 31416 LNS 59082 b
5822	5822	1 complaint" includes only those complaints that seek a
5823	5823	2 binding determination from a State or federal regulatory
5824	5824	3 body;
5825	5825	4 (9) That the applicant shall at all times remain in
5826	5826	5 compliance with requirements for certification stated in
5827	5827	6 this Section and as the Commission may establish by rule;
5828	5828	7 (10) That the applicant shall execute and maintain a
5829	5829	8 license or permit bond issued by a qualifying surety or
5830	5830	9 insurance company authorized to transact business in the
5831	5831	10 State of Illinois in favor of the People of the State of
5832	5832	11 Illinois. The amount of the bond shall equal $30,000 if
5833	5833	12 the applicant seeks to serve only nonresidential retail
5834	5834	13 customers with maximum electrical demands of one megawatt
5835	5835	14 or more, $150,000 if the applicant seeks to serve only
5836	5836	15 nonresidential retail customers with annual electrical
5837	5837	16 consumption greater than 15,000 kilowatt-hours, or
5838	5838	17 $500,000 if the applicant seeks to serve all eligible
5839	5839	18 customers. Applicants shall be required to submit an
5840	5840	19 additional $500,000 bond if the applicant intends to
5841	5841	20 market to residential customers using in-person
5842	5842	21 solicitations. The bonds shall be conditioned upon the
5843	5843	22 full and faithful performance of all duties and
5844	5844	23 obligations of the applicant as an alternative retail
5845	5845	24 electric supplier, shall be valid for a period of not less
5846	5846	25 than one year, and may be drawn upon in whole or in part to
5847	5847	26 satisfy any penalties imposed, and finally adjudicated, by
5848	5848
5849	5849
5850	5850
5851	5851
5852	5852
5853	5853	SB2552 - 162 - LRB103 31416 LNS 59082 b
5854	5854
5855	5855
5856	5856	SB2552- 163 -LRB103 31416 LNS 59082 b SB2552 - 163 - LRB103 31416 LNS 59082 b
5857	5857	SB2552 - 163 - LRB103 31416 LNS 59082 b
5858	5858	1 the Commission pursuant to Section 16-115B for a violation
5859	5859	2 of the applicant's duties or obligations, except that the
5860	5860	3 total amount of claims and penalties against the bond
5861	5861	4 shall not exceed the penal sum of the bond and shall not
5862	5862	5 include any consequential or punitive damage. The cost of
5863	5863	6 the bond shall be paid by the applicant. The applicant
5864	5864	7 shall file a copy of this bond, with a notarized
5865	5865	8 verification page from the issuer, as part of its
5866	5866	9 application for certification under 83 Ill. Adm. Code 451;
5867	5867	10 and
5868	5868	11 (11) That the applicant will comply with all other
5869	5869	12 applicable laws and regulations.
5870	5870	13 (d-3) The Commission may deny with prejudice an
5871	5871	14 application in which the applicant fails to provide the
5872	5872	15 Commission with information sufficient for the Commission to
5873	5873	16 grant the application.
5874	5874	17 (d-5) (Blank).
5875	5875	18 (e) A retail customer that owns a cogeneration or
5876	5876	19 self-generation facility and that seeks certification only to
5877	5877	20 provide electric power and energy from such facility to retail
5878	5878	21 customers at separate locations which customers are both (i)
5879	5879	22 owned by, or a subsidiary or other corporate affiliate of,
5880	5880	23 such applicant and (ii) eligible for delivery services, shall
5881	5881	24 be granted a certificate of service authority upon filing an
5882	5882	25 application and notifying the Commission that it has entered
5883	5883	26 into an agreement with the relevant electric utilities
5884	5884
5885	5885
5886	5886
5887	5887
5888	5888
5889	5889	SB2552 - 163 - LRB103 31416 LNS 59082 b
5890	5890
5891	5891
5892	5892	SB2552- 164 -LRB103 31416 LNS 59082 b SB2552 - 164 - LRB103 31416 LNS 59082 b
5893	5893	SB2552 - 164 - LRB103 31416 LNS 59082 b
5894	5894	1 pursuant to Section 16-118. Provided, however, that if the
5895	5895	2 retail customer owning such cogeneration or self-generation
5896	5896	3 facility would not be charged a transition charge due to the
5897	5897	4 exemption provided under subsection (f) of Section 16-108
5898	5898	5 prior to the certification, and the retail customers at
5899	5899	6 separate locations are taking delivery services in conjunction
5900	5900	7 with purchasing power and energy from the facility, the retail
5901	5901	8 customer on whose premises the facility is located shall not
5902	5902	9 thereafter be required to pay transition charges on the power
5903	5903	10 and energy that such retail customer takes from the facility.
5904	5904	11 (f) The Commission shall have the authority to promulgate
5905	5905	12 rules and regulations to carry out the provisions of this
5906	5906	13 Section. On or before May 1, 1999, the Commission shall adopt a
5907	5907	14 rule or rules applicable to the certification of those
5908	5908	15 alternative retail electric suppliers that seek to serve only
5909	5909	16 nonresidential retail customers with maximum electrical
5910	5910	17 demands of one megawatt or more which shall provide for (i)
5911	5911	18 expedited and streamlined procedures for certification of such
5912	5912	19 alternative retail electric suppliers and (ii) specific
5913	5913	20 criteria which, if met by any such alternative retail electric
5914	5914	21 supplier, shall constitute the demonstration of technical,
5915	5915	22 financial and managerial resources and abilities to provide
5916	5916	23 service required by paragraph (1) of subsection (d) of this
5917	5917	24 Section, such as a requirement to post a bond or letter of
5918	5918	25 credit, from a responsible surety or financial institution, of
5919	5919	26 sufficient size for the nature and scope of the services to be
5920	5920
5921	5921
5922	5922
5923	5923
5924	5924
5925	5925	SB2552 - 164 - LRB103 31416 LNS 59082 b
5926	5926
5927	5927
5928	5928	SB2552- 165 -LRB103 31416 LNS 59082 b SB2552 - 165 - LRB103 31416 LNS 59082 b
5929	5929	SB2552 - 165 - LRB103 31416 LNS 59082 b
5930	5930	1 provided; demonstration of adequate insurance for the scope
5931	5931	2 and nature of the services to be provided; and experience in
5932	5932	3 providing similar services in other jurisdictions.
5933	5933	4 (g) An alternative retail electric supplier may seek
5934	5934	5 confidential treatment for the following information by filing
5935	5935	6 an affidavit with the Commission so long as the affidavit
5936	5936	7 meets the requirements in this subsection (g):
5937	5937	8 (1) the total annual kilowatt-hours delivered and sold
5938	5938	9 by an alternative retail electric supplier to retail
5939	5939	10 customers within each utility service territory and the
5940	5940	11 total annual kilowatt-hours delivered and sold by an
5941	5941	12 alternative retail electric supplier to retail customers
5942	5942	13 in all utility service territories in the preceding
5943	5943	14 calendar year as required by 83 Ill. Adm. Code 451.770;
5944	5944	15 (2) the total peak demand supplied by an alternative
5945	5945	16 retail electric supplier during the previous year in each
5946	5946	17 utility service territory as required by 83 Ill. Adm. Code
5947	5947	18 465.40;
5948	5948	19 (3) a good faith estimate of the amount an alternative
5949	5949	20 retail electric supplier expects to be obliged to pay the
5950	5950	21 utility under single billing tariffs during the next 12
5951	5951	22 months and the amount of any bond or letter of credit used
5952	5952	23 to demonstrate an alternative retail electric supplier's
5953	5953	24 credit worthiness to provide single billing services
5954	5954	25 pursuant to 83 Ill. Adm. Code 451.510(a) and (b).
5955	5955	26 The affidavit must be filed contemporaneously with the
5956	5956
5957	5957
5958	5958
5959	5959
5960	5960
5961	5961	SB2552 - 165 - LRB103 31416 LNS 59082 b
5962	5962
5963	5963
5964	5964	SB2552- 166 -LRB103 31416 LNS 59082 b SB2552 - 166 - LRB103 31416 LNS 59082 b
5965	5965	SB2552 - 166 - LRB103 31416 LNS 59082 b
5966	5966	1 information for which confidential treatment is sought and
5967	5967	2 must clearly state that the affiant seeks confidential
5968	5968	3 treatment pursuant to this subsection (g) and the information
5969	5969	4 for which confidential treatment is sought must be clearly
5970	5970	5 identified on the confidential version of the document filed
5971	5971	6 with the Commission. The affidavit must be accompanied by a
5972	5972	7 "confidential" and a "public" version of the document or
5973	5973	8 documents containing the information for which confidential
5974	5974	9 treatment is sought.
5975	5975	10 If the alternative retail electric supplier has met the
5976	5976	11 affidavit requirements of this subsection (g), then the
5977	5977	12 Commission shall afford confidential treatment to the
5978	5978	13 information identified in the affidavit for a period of 2
5979	5979	14 years after the date the affidavit is received by the
5980	5980	15 Commission.
5981	5981	16 Nothing in this subsection (g) prevents an alternative
5982	5982	17 retail electric supplier from filing a petition with the
5983	5983	18 Commission seeking confidential treatment for information
5984	5984	19 beyond that identified in this subsection (g) or for
5985	5985	20 information contained in other reports or documents filed with
5986	5986	21 the Commission other than annual rate reports.
5987	5987	22 Nothing in this subsection (g) prevents the Commission, on
5988	5988	23 its own motion, or any party from filing a formal petition with
5989	5989	24 the Commission seeking to reconsider the conferring of
5990	5990	25 confidential status on an item of information afforded
5991	5991	26 confidential treatment pursuant to this subsection (g).
5992	5992
5993	5993
5994	5994
5995	5995
5996	5996
5997	5997	SB2552 - 166 - LRB103 31416 LNS 59082 b
5998	5998
5999	5999
6000	6000	SB2552- 167 -LRB103 31416 LNS 59082 b SB2552 - 167 - LRB103 31416 LNS 59082 b
6001	6001	SB2552 - 167 - LRB103 31416 LNS 59082 b
6002	6002	1 The Commission, on its own motion, may at any time
6003	6003	2 initiate a docketed proceeding to investigate the continued
6004	6004	3 applicability of this subsection (g) to the information
6005	6005	4 contained in items (i), (ii), and (iii) of this subsection
6006	6006	5 (g). If, at the end of such investigation, the Commission
6007	6007	6 determines that a particular item of information should no
6008	6008	7 longer be eligible for the affidavit-based process outlined in
6009	6009	8 this subsection (g), the Commission may enter an order to
6010	6010	9 remove that item from the list of items eligible for the
6011	6011	10 process set forth in this subsection (g). Notwithstanding any
6012	6012	11 such order, in the event the Commission makes such a
6013	6013	12 determination, nothing in this subsection (g) prevents an
6014	6014	13 alternative retail electric supplier desiring confidential
6015	6015	14 treatment for such information from filing a formal petition
6016	6016	15 with the Commission seeking confidential treatment for such
6017	6017	16 information.
6018	6018	17 (Source: P.A. 101-590, eff. 1-1-20; 102-958, eff. 1-1-23.)
6019	6019	18 (220 ILCS 5/16-115D)
6020	6020	19 Sec. 16-115D. Renewable portfolio standard for alternative
6021	6021	20 retail electric suppliers and electric utilities operating
6022	6022	21 outside their service territories.
6023	6023	22 (a) An alternative retail electric supplier shall be
6024	6024	23 responsible for procuring cost-effective renewable energy
6025	6025	24 resources as required under item (5) of subsection (d) of
6026	6026	25 Section 16-115 of this Act as outlined herein:
6027	6027
6028	6028
6029	6029
6030	6030
6031	6031
6032	6032	SB2552 - 167 - LRB103 31416 LNS 59082 b
6033	6033
6034	6034
6035	6035	SB2552- 168 -LRB103 31416 LNS 59082 b SB2552 - 168 - LRB103 31416 LNS 59082 b
6036	6036	SB2552 - 168 - LRB103 31416 LNS 59082 b
6037	6037	1 (1) The definition of renewable energy resources
6038	6038	2 contained in Section 1-10 of the Illinois Power Agency Act
6039	6039	3 applies to all renewable energy resources required to be
6040	6040	4 procured by alternative retail electric suppliers.
6041	6041	5 (2) Through May 31, 2017, the quantity of renewable
6042	6042	6 energy resources shall be measured as a percentage of the
6043	6043	7 actual amount of metered electricity (megawatt-hours)
6044	6044	8 delivered by the alternative retail electric supplier to
6045	6045	9 Illinois retail customers during the 12-month period June
6046	6046	10 1 through May 31, commencing June 1, 2009, and the
6047	6047	11 comparable 12-month period in each year thereafter except
6048	6048	12 as provided in item (6) of this subsection (a).
6049	6049	13 (3) Through May 31, 2017, the quantity of renewable
6050	6050	14 energy resources shall be in amounts at least equal to the
6051	6051	15 annual percentages set forth in item (1) of subsection (c)
6052	6052	16 of Section 1-75 of the Illinois Power Agency Act. At least
6053	6053	17 60% of the renewable energy resources procured pursuant to
6054	6054	18 items (1) and (3) of subsection (b) of this Section shall
6055	6055	19 come from wind generation and, starting June 1, 2015, at
6056	6056	20 least 6% of the renewable energy resources procured
6057	6057	21 pursuant to items (1) and (3) of subsection (b) of this
6058	6058	22 Section shall come from solar photovoltaics. If, in any
6059	6059	23 given year, an alternative retail electric supplier does
6060	6060	24 not purchase at least these levels of renewable energy
6061	6061	25 resources, then the alternative retail electric supplier
6062	6062	26 shall make alternative compliance payments, as described
6063	6063
6064	6064
6065	6065
6066	6066
6067	6067
6068	6068	SB2552 - 168 - LRB103 31416 LNS 59082 b
6069	6069
6070	6070
6071	6071	SB2552- 169 -LRB103 31416 LNS 59082 b SB2552 - 169 - LRB103 31416 LNS 59082 b
6072	6072	SB2552 - 169 - LRB103 31416 LNS 59082 b
6073	6073	1 in subsection (d) of this Section.
6074	6074	2 (3.5) For the delivery year commencing June 1, 2017,
6075	6075	3 the quantity of renewable energy resources shall be at
6076	6076	4 least 13.0% of the uncovered amount of metered electricity
6077	6077	5 (megawatt-hours) delivered by the alternative retail
6078	6078	6 electric supplier to Illinois retail customers during the
6079	6079	7 delivery year, which uncovered amount shall equal 50% of
6080	6080	8 such metered electricity delivered by the alternative
6081	6081	9 retail electric supplier. For the delivery year commencing
6082	6082	10 June 1, 2018, the quantity of renewable energy resources
6083	6083	11 shall be at least 14.5% of the uncovered amount of metered
6084	6084	12 electricity (megawatt-hours) delivered by the alternative
6085	6085	13 retail electric supplier to Illinois retail customers
6086	6086	14 during the delivery year, which uncovered amount shall
6087	6087	15 equal 25% of such metered electricity delivered by the
6088	6088	16 alternative retail electric supplier. At least 32% of the
6089	6089	17 renewable energy resources procured by the alternative
6090	6090	18 retail electric supplier for its uncovered portion under
6091	6091	19 this paragraph (3.5) shall come from wind or photovoltaic
6092	6092	20 generation. The renewable energy resources procured under
6093	6093	21 this paragraph (3.5) shall not include any resources from
6094	6094	22 a facility whose costs were being recovered through rates
6095	6095	23 regulated by any state or states on or after January 1,
6096	6096	24 2017.
6097	6097	25 (4) The quantity and source of renewable energy
6098	6098	26 resources shall be independently verified through the PJM
6099	6099
6100	6100
6101	6101
6102	6102
6103	6103
6104	6104	SB2552 - 169 - LRB103 31416 LNS 59082 b
6105	6105
6106	6106
6107	6107	SB2552- 170 -LRB103 31416 LNS 59082 b SB2552 - 170 - LRB103 31416 LNS 59082 b
6108	6108	SB2552 - 170 - LRB103 31416 LNS 59082 b
6109	6109	1 Environmental Information System Generation Attribute
6110	6110	2 Tracking System (PJM-GATS) or the Midwest Renewable Energy
6111	6111	3 Tracking System (M-RETS), which shall document the
6112	6112	4 location of generation, resource type, month, and year of
6113	6113	5 generation for all qualifying renewable energy resources
6114	6114	6 that an alternative retail electric supplier uses to
6115	6115	7 comply with this Section. No later than June 1, 2009, the
6116	6116	8 Illinois Power Agency shall provide PJM-GATS, M-RETS, and
6117	6117	9 alternative retail electric suppliers with all information
6118	6118	10 necessary to identify resources located in Illinois,
6119	6119	11 within states that adjoin Illinois or within portions of
6120	6120	12 the PJM and MISO footprint in the United States that
6121	6121	13 qualify under the definition of renewable energy resources
6122	6122	14 in Section 1-10 of the Illinois Power Agency Act for
6123	6123	15 compliance with this Section 16-115D. Alternative retail
6124	6124	16 electric suppliers shall not be subject to the
6125	6125	17 requirements in item (3) of subsection (c) of Section 1-75
6126	6126	18 of the Illinois Power Agency Act.
6127	6127	19 (5) All renewable energy credits used to comply with
6128	6128	20 this Section shall be permanently retired.
6129	6129	21 (6) The required procurement of renewable energy
6130	6130	22 resources by an alternative retail electric supplier shall
6131	6131	23 apply to all metered electricity delivered to Illinois
6132	6132	24 retail customers by the alternative retail electric
6133	6133	25 supplier pursuant to contracts executed or extended after
6134	6134	26 March 15, 2009.
6135	6135
6136	6136
6137	6137
6138	6138
6139	6139
6140	6140	SB2552 - 170 - LRB103 31416 LNS 59082 b
6141	6141
6142	6142
6143	6143	SB2552- 171 -LRB103 31416 LNS 59082 b SB2552 - 171 - LRB103 31416 LNS 59082 b
6144	6144	SB2552 - 171 - LRB103 31416 LNS 59082 b
6145	6145	1 (b) Compliance obligations.
6146	6146	2 (1) Through May 31, 2017, an alternative retail
6147	6147	3 electric supplier shall comply with the renewable energy
6148	6148	4 portfolio standards by making an alternative compliance
6149	6149	5 payment, as described in subsection (d) of this Section,
6150	6150	6 to cover at least one-half of the alternative retail
6151	6151	7 electric supplier's compliance obligation for the period
6152	6152	8 prior to June 1, 2017.
6153	6153	9 (2) For the delivery years beginning June 1, 2017 and
6154	6154	10 June 1, 2018, an alternative retail electric supplier need
6155	6155	11 not make any alternative compliance payment to meet any
6156	6156	12 portion of its compliance obligation, as set forth in
6157	6157	13 paragraph (3.5) of subsection (a) of this Section.
6158	6158	14 (3) An alternative retail electric supplier shall use
6159	6159	15 any one or combination of the following means to cover the
6160	6160	16 remainder of the alternative retail electric supplier's
6161	6161	17 compliance obligation, as set forth in paragraphs (3) and
6162	6162	18 (3.5) of subsection (a) of this Section, not covered by an
6163	6163	19 alternative compliance payment made under paragraphs (1)
6164	6164	20 and (2) of this subsection (b) of this Section:
6165	6165	21 (A) Generating electricity using renewable energy
6166	6166	22 resources identified pursuant to item (4) of
6167	6167	23 subsection (a) of this Section.
6168	6168	24 (B) Purchasing electricity generated using
6169	6169	25 renewable energy resources identified pursuant to item
6170	6170	26 (4) of subsection (a) of this Section through an
6171	6171
6172	6172
6173	6173
6174	6174
6175	6175
6176	6176	SB2552 - 171 - LRB103 31416 LNS 59082 b
6177	6177
6178	6178
6179	6179	SB2552- 172 -LRB103 31416 LNS 59082 b SB2552 - 172 - LRB103 31416 LNS 59082 b
6180	6180	SB2552 - 172 - LRB103 31416 LNS 59082 b
6181	6181	1 energy contract.
6182	6182	2 (C) Purchasing renewable energy credits from
6183	6183	3 renewable energy resources identified pursuant to item
6184	6184	4 (4) of subsection (a) of this Section.
6185	6185	5 (D) Making an alternative compliance payment as
6186	6186	6 described in subsection (d) of this Section.
6187	6187	7 (c) Use of renewable energy credits.
6188	6188	8 (1) Renewable energy credits that are not used by an
6189	6189	9 alternative retail electric supplier to comply with a
6190	6190	10 renewable portfolio standard in a compliance year may be
6191	6191	11 banked and carried forward up to 2 12-month compliance
6192	6192	12 periods after the compliance period in which the credit
6193	6193	13 was generated for the purpose of complying with a
6194	6194	14 renewable portfolio standard in those 2 subsequent
6195	6195	15 compliance periods. For the 2009-2010 and 2010-2011
6196	6196	16 compliance periods, an alternative retail electric
6197	6197	17 supplier may use renewable credits generated after
6198	6198	18 December 31, 2008 and before June 1, 2009 to comply with
6199	6199	19 this Section.
6200	6200	20 (2) An alternative retail electric supplier is
6201	6201	21 responsible for demonstrating that a renewable energy
6202	6202	22 credit used to comply with a renewable portfolio standard
6203	6203	23 is derived from a renewable energy resource and that the
6204	6204	24 alternative retail electric supplier has not used, traded,
6205	6205	25 sold, or otherwise transferred the credit.
6206	6206	26 (3) The same renewable energy credit may be used by an
6207	6207
6208	6208
6209	6209
6210	6210
6211	6211
6212	6212	SB2552 - 172 - LRB103 31416 LNS 59082 b
6213	6213
6214	6214
6215	6215	SB2552- 173 -LRB103 31416 LNS 59082 b SB2552 - 173 - LRB103 31416 LNS 59082 b
6216	6216	SB2552 - 173 - LRB103 31416 LNS 59082 b
6217	6217	1 alternative retail electric supplier to comply with a
6218	6218	2 federal renewable portfolio standard and a renewable
6219	6219	3 portfolio standard established under this Act. An
6220	6220	4 alternative retail electric supplier that uses a renewable
6221	6221	5 energy credit to comply with a renewable portfolio
6222	6222	6 standard imposed by any other state may not use the same
6223	6223	7 credit to comply with a renewable portfolio standard
6224	6224	8 established under this Act.
6225	6225	9 (d) Alternative compliance payments.
6226	6226	10 (1) The Commission shall establish and post on its
6227	6227	11 website, within 5 business days after entering an order
6228	6228	12 approving a procurement plan pursuant to Section 1-75 of
6229	6229	13 the Illinois Power Agency Act, maximum alternative
6230	6230	14 compliance payment rates, expressed on a per kilowatt-hour
6231	6231	15 basis, that will be applicable in the first compliance
6232	6232	16 period following the plan approval. A separate maximum
6233	6233	17 alternative compliance payment rate shall be established
6234	6234	18 for the service territory of each electric utility that is
6235	6235	19 subject to subsection (c) of Section 1-75 of the Illinois
6236	6236	20 Power Agency Act. Each maximum alternative compliance
6237	6237	21 payment rate shall be equal to the maximum allowable
6238	6238	22 annual estimated average net increase due to the costs of
6239	6239	23 the utility's purchase of renewable energy resources
6240	6240	24 included in the amounts paid by eligible retail customers
6241	6241	25 in connection with electric service, as described in item
6242	6242	26 (2) of subsection (c) of Section 1-75 of the Illinois
6243	6243
6244	6244
6245	6245
6246	6246
6247	6247
6248	6248	SB2552 - 173 - LRB103 31416 LNS 59082 b
6249	6249
6250	6250
6251	6251	SB2552- 174 -LRB103 31416 LNS 59082 b SB2552 - 174 - LRB103 31416 LNS 59082 b
6252	6252	SB2552 - 174 - LRB103 31416 LNS 59082 b
6253	6253	1 Power Agency Act for the compliance period, and as
6254	6254	2 established in the approved procurement plan. Following
6255	6255	3 each procurement event through which renewable energy
6256	6256	4 resources are purchased for one or more of these utilities
6257	6257	5 for the compliance period, the Commission shall establish
6258	6258	6 and post on its website estimates of the alternative
6259	6259	7 compliance payment rates, expressed on a per kilowatt-hour
6260	6260	8 basis, that shall apply for that compliance period.
6261	6261	9 Posting of the estimates shall occur no later than 10
6262	6262	10 business days following the procurement event, however,
6263	6263	11 the Commission shall not be required to establish and post
6264	6264	12 such estimates more often than once per calendar month. By
6265	6265	13 July 1 of each year, the Commission shall establish and
6266	6266	14 post on its website the actual alternative compliance
6267	6267	15 payment rates for the preceding compliance year. For
6268	6268	16 compliance years beginning prior to June 1, 2014, each
6269	6269	17 alternative compliance payment rate shall be equal to the
6270	6270	18 total amount of dollars that the utility contracted to
6271	6271	19 spend on renewable resources, excepting the additional
6272	6272	20 incremental cost attributable to solar resources, for the
6273	6273	21 compliance period divided by the forecasted load of
6274	6274	22 eligible retail customers, at the customers' meters, as
6275	6275	23 previously established in the Commission-approved
6276	6276	24 procurement plan for that compliance year. For compliance
6277	6277	25 years commencing on or after June 1, 2014, each
6278	6278	26 alternative compliance payment rate shall be equal to the
6279	6279
6280	6280
6281	6281
6282	6282
6283	6283
6284	6284	SB2552 - 174 - LRB103 31416 LNS 59082 b
6285	6285
6286	6286
6287	6287	SB2552- 175 -LRB103 31416 LNS 59082 b SB2552 - 175 - LRB103 31416 LNS 59082 b
6288	6288	SB2552 - 175 - LRB103 31416 LNS 59082 b
6289	6289	1 total amount of dollars that the utility contracted to
6290	6290	2 spend on all renewable resources for the compliance period
6291	6291	3 divided by the forecasted load of retail customers for
6292	6292	4 which the utility is procuring renewable energy resources
6293	6293	5 in a given delivery year, at the customers' meters, as
6294	6294	6 previously established in the Commission-approved
6295	6295	7 procurement plan for that compliance year. The actual
6296	6296	8 alternative compliance payment rates may not exceed the
6297	6297	9 maximum alternative compliance payment rates established
6298	6298	10 for the compliance period. For purposes of this subsection
6299	6299	11 (d), the term "eligible retail customers" has the same
6300	6300	12 meaning as found in Section 16-111.5 of this Act.
6301	6301	13 (2) In any given compliance year, an alternative
6302	6302	14 retail electric supplier may elect to use alternative
6303	6303	15 compliance payments to comply with all or a part of the
6304	6304	16 applicable renewable portfolio standard. In the event that
6305	6305	17 an alternative retail electric supplier elects to make
6306	6306	18 alternative compliance payments to comply with all or a
6307	6307	19 part of the applicable renewable portfolio standard, such
6308	6308	20 payments shall be made by September 1, 2010 for the period
6309	6309	21 of June 1, 2009 to May 1, 2010 and by September 1 of each
6310	6310	22 year thereafter for the subsequent compliance period, in
6311	6311	23 the manner and form as determined by the Commission. Any
6312	6312	24 election by an alternative retail electric supplier to use
6313	6313	25 alternative compliance payments is subject to review by
6314	6314	26 the Commission under subsection (e) of this Section.
6315	6315
6316	6316
6317	6317
6318	6318
6319	6319
6320	6320	SB2552 - 175 - LRB103 31416 LNS 59082 b
6321	6321
6322	6322
6323	6323	SB2552- 176 -LRB103 31416 LNS 59082 b SB2552 - 176 - LRB103 31416 LNS 59082 b
6324	6324	SB2552 - 176 - LRB103 31416 LNS 59082 b
6325	6325	1 (3) An alternative retail electric supplier's
6326	6326	2 alternative compliance payments shall be computed
6327	6327	3 separately for each electric utility's service territory
6328	6328	4 within which the alternative retail electric supplier
6329	6329	5 provided retail service during the compliance period,
6330	6330	6 provided that the electric utility was subject to
6331	6331	7 subsection (c) of Section 1-75 of the Illinois Power
6332	6332	8 Agency Act. For each service territory, the alternative
6333	6333	9 retail electric supplier's alternative compliance payment
6334	6334	10 shall be equal to (i) the actual alternative compliance
6335	6335	11 payment rate established in item (1) of this subsection
6336	6336	12 (d), multiplied by (ii) the actual amount of metered
6337	6337	13 electricity delivered by the alternative retail electric
6338	6338	14 supplier to retail customers for which the supplier has a
6339	6339	15 compliance obligation within the service territory during
6340	6340	16 the compliance period, multiplied by (iii) the result of
6341	6341	17 one minus the ratios of the quantity of renewable energy
6342	6342	18 resources used by the alternative retail electric supplier
6343	6343	19 to comply with the requirements of this Section within the
6344	6344	20 service territory to the product of the percentage of
6345	6345	21 renewable energy resources required under item (3) or
6346	6346	22 (3.5) of subsection (a) of this Section and the actual
6347	6347	23 amount of metered electricity delivered by the alternative
6348	6348	24 retail electrical supplier to retail customers for which
6349	6349	25 the supplier has a compliance obligation within the
6350	6350	26 service territory during the compliance period.
6351	6351
6352	6352
6353	6353
6354	6354
6355	6355
6356	6356	SB2552 - 176 - LRB103 31416 LNS 59082 b
6357	6357
6358	6358
6359	6359	SB2552- 177 -LRB103 31416 LNS 59082 b SB2552 - 177 - LRB103 31416 LNS 59082 b
6360	6360	SB2552 - 177 - LRB103 31416 LNS 59082 b
6361	6361	1 (4) Through May 31, 2017, all alternative compliance
6362	6362	2 payments by alternative retail electric suppliers shall be
6363	6363	3 deposited in the Illinois Power Agency Renewable Energy
6364	6364	4 Resources Fund and used to purchase renewable energy
6365	6365	5 credits, in accordance with Section 1-56 of the Illinois
6366	6366	6 Power Agency Act. Beginning April 1, 2012 and by April 1 of
6367	6367	7 each year thereafter, the Illinois Power Agency shall
6368	6368	8 submit an annual report to the General Assembly, the
6369	6369	9 Commission, and alternative retail electric suppliers that
6370	6370	10 shall include, but not be limited to:
6371	6371	11 (A) the total amount of alternative compliance
6372	6372	12 payments received in aggregate from alternative retail
6373	6373	13 electric suppliers by planning year for all previous
6374	6374	14 planning years in which the alternative compliance
6375	6375	15 payment was in effect;
6376	6376	16 (B) the amount of those payments utilized to
6377	6377	17 purchased renewable energy credits itemized by the
6378	6378	18 date of each procurement in which the payments were
6379	6379	19 utilized; and
6380	6380	20 (C) the unused and remaining balance in the Agency
6381	6381	21 Renewable Energy Resources Fund attributable to those
6382	6382	22 payments.
6383	6383	23 (4.5) Beginning with the delivery year commencing June
6384	6384	24 1, 2017, all alternative compliance payments by
6385	6385	25 alternative retail electric suppliers shall be remitted to
6386	6386	26 the applicable electric utility. To facilitate this
6387	6387
6388	6388
6389	6389
6390	6390
6391	6391
6392	6392	SB2552 - 177 - LRB103 31416 LNS 59082 b
6393	6393
6394	6394
6395	6395	SB2552- 178 -LRB103 31416 LNS 59082 b SB2552 - 178 - LRB103 31416 LNS 59082 b
6396	6396	SB2552 - 178 - LRB103 31416 LNS 59082 b
6397	6397	1 remittance, each electric utility shall file a tariff with
6398	6398	2 the Commission no later than 30 days following the
6399	6399	3 effective date of this amendatory Act of the 99th General
6400	6400	4 Assembly, which the Commission shall approve, after notice
6401	6401	5 and hearing, no later than 45 days after its filing. The
6402	6402	6 Illinois Power Agency shall use such payments to increase
6403	6403	7 the amount of renewable energy resources otherwise to be
6404	6404	8 procured under subsection (c) of Section 1-75 of the
6405	6405	9 Illinois Power Agency Act.
6406	6406	10 (5) The Commission, in consultation with the Illinois
6407	6407	11 Power Agency, shall establish a process or proceeding to
6408	6408	12 consider the impact of a federal renewable portfolio
6409	6409	13 standard, if enacted, on the operation of the alternative
6410	6410	14 compliance mechanism, which shall include, but not be
6411	6411	15 limited to, developing, to the extent permitted by the
6412	6412	16 applicable federal statute, an appropriate methodology to
6413	6413	17 apportion renewable energy credits retired as a result of
6414	6414	18 alternative compliance payments made in accordance with
6415	6415	19 this Section. The Commission shall commence any such
6416	6416	20 process or proceeding within 35 days after enactment of a
6417	6417	21 federal renewable portfolio standard.
6418	6418	22 (e) Each alternative retail electric supplier shall, by
6419	6419	23 September 1, 2010 and by September 1 of each year thereafter,
6420	6420	24 prepare and submit to the Commission a report, in a format to
6421	6421	25 be specified by the Commission, that provides information
6422	6422	26 certifying compliance by the alternative retail electric
6423	6423
6424	6424
6425	6425
6426	6426
6427	6427
6428	6428	SB2552 - 178 - LRB103 31416 LNS 59082 b
6429	6429
6430	6430
6431	6431	SB2552- 179 -LRB103 31416 LNS 59082 b SB2552 - 179 - LRB103 31416 LNS 59082 b
6432	6432	SB2552 - 179 - LRB103 31416 LNS 59082 b
6433	6433	1 supplier with this Section, including copies of all PJM-GATS
6434	6434	2 and M-RETS reports, and documentation relating to banking,
6435	6435	3 retiring renewable energy credits, and any other information
6436	6436	4 that the Commission determines necessary to ensure compliance
6437	6437	5 with this Section.
6438	6438	6 An alternative retail electric supplier may file
6439	6439	7 commercially or financially sensitive information or trade
6440	6440	8 secrets with the Commission as provided under the rules of the
6441	6441	9 Commission. To be filed confidentially, the information shall
6442	6442	10 be accompanied by an affidavit that sets forth both the
6443	6443	11 reasons for the confidentiality and a public synopsis of the
6444	6444	12 information.
6445	6445	13 (e-5) Each alternative retail electric supplier shall make
6446	6446	14 payment to an applicable electric utility for capacity,
6447	6447	15 receive transfers of capacity credits, timely report capacity
6448	6448	16 credits procured on its behalf to the applicable regional
6449	6449	17 transmission organization, and submit the capacity credits to
6450	6450	18 the applicable regional transmission organization under that
6451	6451	19 regional transmission organization's rules and procedures, in
6452	6452	20 all respects as set out in subsection (b-10) of Section
6453	6453	21 16-111.5. The Commission shall have authority to adopt rules
6454	6454	22 for the certification by alternative retail electric suppliers
6455	6455	23 of their ongoing compliance with the requirements in this
6456	6456	24 subsection.
6457	6457	25 (f) The Commission may initiate a contested case to review
6458	6458	26 allegations that the alternative retail electric supplier has
6459	6459
6460	6460
6461	6461
6462	6462
6463	6463
6464	6464	SB2552 - 179 - LRB103 31416 LNS 59082 b
6465	6465
6466	6466
6467	6467	SB2552- 180 -LRB103 31416 LNS 59082 b SB2552 - 180 - LRB103 31416 LNS 59082 b
6468	6468	SB2552 - 180 - LRB103 31416 LNS 59082 b
6469	6469	1 violated this Section, including an order issued or rule
6470	6470	2 promulgated under this Section. In any such proceeding, the
6471	6471	3 alternative retail electric supplier shall have the burden of
6472	6472	4 proof. If the Commission finds, after notice and hearing, that
6473	6473	5 an alternative retail electric supplier has violated this
6474	6474	6 Section, then the Commission shall issue an order requiring
6475	6475	7 the alternative retail electric supplier to:
6476	6476	8 (1) immediately comply with this Section; and
6477	6477	9 (2) if the violation involves a failure to procure the
6478	6478	10 requisite quantity of renewable energy resources or pay
6479	6479	11 the applicable alternative compliance payment by the
6480	6480	12 annual deadline, the Commission shall require the
6481	6481	13 alternative retail electric supplier to double the
6482	6482	14 applicable alternative compliance payment that would
6483	6483	15 otherwise be required to bring the alternative retail
6484	6484	16 electric supplier into compliance with this Section.
6485	6485	17 If an alternative retail electric supplier fails to comply
6486	6486	18 with the renewable energy resource portfolio requirement or
6487	6487	19 capacity portfolio requirement in this Section more than once
6488	6488	20 in a 5-year period, then the Commission shall revoke the
6489	6489	21 alternative electric supplier's certificate of service
6490	6490	22 authority. The Commission shall not accept an application for
6491	6491	23 a certificate of service authority from an alternative retail
6492	6492	24 electric supplier that has lost certification under this
6493	6493	25 subsection (f), or any corporate affiliate thereof, for at
6494	6494	26 least one year after the date of revocation.
6495	6495
6496	6496
6497	6497
6498	6498
6499	6499
6500	6500	SB2552 - 180 - LRB103 31416 LNS 59082 b
6501	6501
6502	6502
6503	6503	SB2552- 181 -LRB103 31416 LNS 59082 b SB2552 - 181 - LRB103 31416 LNS 59082 b
6504	6504	SB2552 - 181 - LRB103 31416 LNS 59082 b
6505	6505	1 (g) All of the provisions of this Section apply to
6506	6506	2 electric utilities operating outside their service area except
6507	6507	3 under item (2) of subsection (a) of this Section the quantity
6508	6508	4 of renewable energy resources shall be measured as a
6509	6509	5 percentage of the actual amount of electricity
6510	6510	6 (megawatt-hours) supplied in the State outside of the
6511	6511	7 utility's service territory during the 12-month period June 1
6512	6512	8 through May 31, commencing June 1, 2009, and the comparable
6513	6513	9 12-month period in each year thereafter except as provided in
6514	6514	10 item (6) of subsection (a) of this Section.
6515	6515	11 If any such utility fails to procure the requisite
6516	6516	12 quantity of renewable energy resources by the annual deadline,
6517	6517	13 then the Commission shall require the utility to double the
6518	6518	14 alternative compliance payment that would otherwise be
6519	6519	15 required to bring the utility into compliance with this
6520	6520	16 Section.
6521	6521	17 If any such utility fails to comply with the renewable
6522	6522	18 energy resource portfolio requirement in this Section more
6523	6523	19 than once in a 5-year period, then the Commission shall order
6524	6524	20 the utility to cease all sales outside of the utility's
6525	6525	21 service territory for a period of at least one year.
6526	6526	22 (h) The provisions of this Section and the provisions of
6527	6527	23 subsection (d) of Section 16-115 of this Act relating to
6528	6528	24 procurement of renewable energy resources shall not apply to
6529	6529	25 an alternative retail electric supplier that operates a
6530	6530	26 combined heat and power system in this State or that has a
6531	6531
6532	6532
6533	6533
6534	6534
6535	6535
6536	6536	SB2552 - 181 - LRB103 31416 LNS 59082 b
6537	6537
6538	6538
6539	6539	SB2552- 182 -LRB103 31416 LNS 59082 b SB2552 - 182 - LRB103 31416 LNS 59082 b
6540	6540	SB2552 - 182 - LRB103 31416 LNS 59082 b
6541	6541	1 corporate affiliate that operates such a combined heat and
6542	6542	2 power system in this State that supplies electricity primarily
6543	6543	3 to or for the benefit of: (i) facilities owned by the supplier,
6544	6544	4 its subsidiary, or other corporate affiliate; (ii) facilities
6545	6545	5 electrically integrated with the electrical system of
6546	6546	6 facilities owned by the supplier, its subsidiary, or other
6547	6547	7 corporate affiliate; or (iii) facilities that are adjacent to
6548	6548	8 the site on which the combined heat and power system is
6549	6549	9 located.
6550	6550	10 (i) The obligations of alternative retail electric
6551	6551	11 suppliers and electric utilities operating outside their
6552	6552	12 service territories to procure renewable energy resources,
6553	6553	13 make alternative compliance payments, and file annual reports,
6554	6554	14 and the obligations of the Commission to determine and post
6555	6555	15 alternative compliance payment rates, shall terminate after
6556	6556	16 May 31, 2019, provided that alternative retail electric
6557	6557	17 suppliers and electric utilities operating outside their
6558	6558	18 service territories shall be obligated to make all alternative
6559	6559	19 compliance payments that they were obligated to pay for
6560	6560	20 periods through and including May 31, 2019, but were not paid
6561	6561	21 as of that date. The Commission shall continue to enforce the
6562	6562	22 payment of unpaid alternative compliance payments in
6563	6563	23 accordance with subsections (f) and (g) of this Section. All
6564	6564	24 alternative compliance payments made after May 31, 2016 shall
6565	6565	25 be remitted to the applicable electric utility and used to
6566	6566	26 purchase renewable energy credits, in accordance with Section
6567	6567
6568	6568
6569	6569
6570	6570
6571	6571
6572	6572	SB2552 - 182 - LRB103 31416 LNS 59082 b
6573	6573
6574	6574
6575	6575	SB2552- 183 -LRB103 31416 LNS 59082 b SB2552 - 183 - LRB103 31416 LNS 59082 b
6576	6576	SB2552 - 183 - LRB103 31416 LNS 59082 b
6577	6577	1 1-75 of the Illinois Power Agency Act.
6578	6578	2 This subsection (i) is intended to accommodate the
6579	6579	3 transition to the procurement of renewable energy resources
6580	6580	4 for all retail customers in the amounts specified under
6581	6581	5 subsection (c) of Section 1-75 of the Illinois Power Agency
6582	6582	6 Act and Section 16-111.5 of this Act, including but not
6583	6583	7 limited to the transition to a single charge applicable to all
6584	6584	8 retail customers to recover the costs of these resources. Each
6585	6585	9 alternative retail electric supplier shall certify in its
6586	6586	10 annual reports filed pursuant to subsection (e) of this
6587	6587	11 Section after May 31, 2019, that its retail customers are not
6588	6588	12 paying the costs of alternative compliance payments or
6589	6589	13 renewable energy resources that the alternative retail
6590	6590	14 electric supplier is not required to remit or purchase under
6591	6591	15 this Section. The Commission shall have the authority to
6592	6592	16 initiate an emergency rulemaking to adopt rules regarding such
6593	6593	17 certification.
6594	6594	18 (Source: P.A. 99-906, eff. 6-1-17.)
6595	6595	SB2552- 184 -LRB103 31416 LNS 59082 b 1 INDEX 2 Statutes amended in order of appearance SB2552- 184 -LRB103 31416 LNS 59082 b SB2552 - 184 - LRB103 31416 LNS 59082 b 1 INDEX 2 Statutes amended in order of appearance
6596	6596	SB2552- 184 -LRB103 31416 LNS 59082 b SB2552 - 184 - LRB103 31416 LNS 59082 b
6597	6597	SB2552 - 184 - LRB103 31416 LNS 59082 b
6598	6598	1 INDEX
6599	6599	2 Statutes amended in order of appearance
6600	6600
6601	6601
6602	6602
6603	6603
6604	6604
6605	6605	SB2552 - 183 - LRB103 31416 LNS 59082 b
6606	6606
6607	6607
6608	6608
6609	6609	SB2552- 184 -LRB103 31416 LNS 59082 b SB2552 - 184 - LRB103 31416 LNS 59082 b
6610	6610	SB2552 - 184 - LRB103 31416 LNS 59082 b
6611	6611	1 INDEX
6612	6612	2 Statutes amended in order of appearance
6613	6613
6614	6614
6615	6615
6616	6616
6617	6617
6618	6618	SB2552 - 184 - LRB103 31416 LNS 59082 b