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1 | AN ACT concerning State government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Power Agency Act is amended by | |||||||||||||||||||
5 | changing Section 1-75 as follows:
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6 | (20 ILCS 3855/1-75) | |||||||||||||||||||
7 | Sec. 1-75. Planning and Procurement Bureau. The Planning | |||||||||||||||||||
8 | and Procurement Bureau has the following duties and | |||||||||||||||||||
9 | responsibilities: | |||||||||||||||||||
10 | (a) The Planning and Procurement Bureau shall each year, | |||||||||||||||||||
11 | beginning in 2008, develop procurement plans and conduct | |||||||||||||||||||
12 | competitive procurement processes in accordance with the | |||||||||||||||||||
13 | requirements of Section 16-111.5 of the Public Utilities Act | |||||||||||||||||||
14 | for the eligible retail customers of electric utilities that on | |||||||||||||||||||
15 | December 31, 2005 provided electric service to at least 100,000 | |||||||||||||||||||
16 | customers in Illinois. The Planning and Procurement Bureau | |||||||||||||||||||
17 | shall also develop procurement plans and conduct competitive | |||||||||||||||||||
18 | procurement processes in accordance with the requirements of | |||||||||||||||||||
19 | Section 16-111.5 of the Public Utilities Act for the eligible | |||||||||||||||||||
20 | retail customers of small multi-jurisdictional electric | |||||||||||||||||||
21 | utilities that (i) on December 31, 2005 served less than | |||||||||||||||||||
22 | 100,000 customers in Illinois and (ii) request a procurement | |||||||||||||||||||
23 | plan for their Illinois jurisdictional load. This Section shall |
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1 | not apply to a small multi-jurisdictional utility until such | ||||||
2 | time as a small multi-jurisdictional utility requests the | ||||||
3 | Agency to prepare a procurement plan for their Illinois | ||||||
4 | jurisdictional load. For the purposes of this Section, the term | ||||||
5 | "eligible retail customers" has the same definition as found in | ||||||
6 | Section 16-111.5(a) of the Public Utilities Act. | ||||||
7 | (1) The Agency shall each year, beginning in 2008, as | ||||||
8 | needed, issue a request for qualifications for experts or | ||||||
9 | expert consulting firms to develop the procurement plans in | ||||||
10 | accordance with Section 16-111.5 of the Public Utilities | ||||||
11 | Act. In order to qualify an expert or expert consulting | ||||||
12 | firm must have: | ||||||
13 | (A) direct previous experience assembling | ||||||
14 | large-scale power supply plans or portfolios for | ||||||
15 | end-use customers; | ||||||
16 | (B) an advanced degree in economics, mathematics, | ||||||
17 | engineering, risk management, or a related area of | ||||||
18 | study; | ||||||
19 | (C) 10 years of experience in the electricity | ||||||
20 | sector, including managing supply risk; | ||||||
21 | (D) expertise in wholesale electricity market | ||||||
22 | rules, including those established by the Federal | ||||||
23 | Energy Regulatory Commission and regional transmission | ||||||
24 | organizations; | ||||||
25 | (E) expertise in credit protocols and familiarity | ||||||
26 | with contract protocols; |
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1 | (F) adequate resources to perform and fulfill the | ||||||
2 | required functions and responsibilities; and | ||||||
3 | (G) the absence of a conflict of interest and | ||||||
4 | inappropriate bias for or against potential bidders or | ||||||
5 | the affected electric utilities. | ||||||
6 | (2) The Agency shall each year, as needed, issue a | ||||||
7 | request for qualifications for a procurement administrator | ||||||
8 | to conduct the competitive procurement processes in | ||||||
9 | accordance with Section 16-111.5 of the Public Utilities | ||||||
10 | Act. In order to qualify an expert or expert consulting | ||||||
11 | firm must have: | ||||||
12 | (A) direct previous experience administering a | ||||||
13 | large-scale competitive procurement process; | ||||||
14 | (B) an advanced degree in economics, mathematics, | ||||||
15 | engineering, or a related area of study; | ||||||
16 | (C) 10 years of experience in the electricity | ||||||
17 | sector, including risk management experience; | ||||||
18 | (D) expertise in wholesale electricity market | ||||||
19 | rules, including those established by the Federal | ||||||
20 | Energy Regulatory Commission and regional transmission | ||||||
21 | organizations; | ||||||
22 | (E) expertise in credit and contract protocols; | ||||||
23 | (F) adequate resources to perform and fulfill the | ||||||
24 | required functions and responsibilities; and | ||||||
25 | (G) the absence of a conflict of interest and | ||||||
26 | inappropriate bias for or against potential bidders or |
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1 | the affected electric utilities. | ||||||
2 | (3) The Agency shall provide affected utilities and | ||||||
3 | other interested parties with the lists of qualified | ||||||
4 | experts or expert consulting firms identified through the | ||||||
5 | request for qualifications processes that are under | ||||||
6 | consideration to develop the procurement plans and to serve | ||||||
7 | as the procurement administrator. The Agency shall also | ||||||
8 | provide each qualified expert's or expert consulting | ||||||
9 | firm's response to the request for qualifications. All | ||||||
10 | information provided under this subparagraph shall also be | ||||||
11 | provided to the Commission. The Agency may provide by rule | ||||||
12 | for fees associated with supplying the information to | ||||||
13 | utilities and other interested parties. These parties | ||||||
14 | shall, within 5 business days, notify the Agency in writing | ||||||
15 | if they object to any experts or expert consulting firms on | ||||||
16 | the lists. Objections shall be based on: | ||||||
17 | (A) failure to satisfy qualification criteria; | ||||||
18 | (B) identification of a conflict of interest; or | ||||||
19 | (C) evidence of inappropriate bias for or against | ||||||
20 | potential bidders or the affected utilities. | ||||||
21 | The Agency shall remove experts or expert consulting | ||||||
22 | firms from the lists within 10 days if there is a | ||||||
23 | reasonable basis for an objection and provide the updated | ||||||
24 | lists to the affected utilities and other interested | ||||||
25 | parties. If the Agency fails to remove an expert or expert | ||||||
26 | consulting firm from a list, an objecting party may seek |
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1 | review by the Commission within 5 days thereafter by filing | ||||||
2 | a petition, and the Commission shall render a ruling on the | ||||||
3 | petition within 10 days. There is no right of appeal of the | ||||||
4 | Commission's ruling. | ||||||
5 | (4) The Agency shall issue requests for proposals to | ||||||
6 | the qualified experts or expert consulting firms to develop | ||||||
7 | a procurement plan for the affected utilities and to serve | ||||||
8 | as procurement administrator. | ||||||
9 | (5) The Agency shall select an expert or expert | ||||||
10 | consulting firm to develop procurement plans based on the | ||||||
11 | proposals submitted and shall award contracts of up to 5 | ||||||
12 | years to those selected. | ||||||
13 | (6) The Agency shall select an expert or expert | ||||||
14 | consulting firm, with approval of the Commission, to serve | ||||||
15 | as procurement administrator based on the proposals | ||||||
16 | submitted. If the Commission rejects, within 5 days, the | ||||||
17 | Agency's selection, the Agency shall submit another | ||||||
18 | recommendation within 3 days based on the proposals | ||||||
19 | submitted. The Agency shall award a 5-year contract to the | ||||||
20 | expert or expert consulting firm so selected with | ||||||
21 | Commission approval. | ||||||
22 | (b) The experts or expert consulting firms retained by the | ||||||
23 | Agency shall, as appropriate, prepare procurement plans, and | ||||||
24 | conduct a competitive procurement process as prescribed in | ||||||
25 | Section 16-111.5 of the Public Utilities Act, to ensure | ||||||
26 | adequate, reliable, affordable, efficient, and environmentally |
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1 | sustainable electric service at the lowest total cost over | ||||||
2 | time, taking into account any benefits of price stability, for | ||||||
3 | eligible retail customers of electric utilities that on | ||||||
4 | December 31, 2005 provided electric service to at least 100,000 | ||||||
5 | customers in the State of Illinois, and for eligible Illinois | ||||||
6 | retail customers of small multi-jurisdictional electric | ||||||
7 | utilities that (i) on December 31, 2005 served less than | ||||||
8 | 100,000 customers in Illinois and (ii) request a procurement | ||||||
9 | plan for their Illinois jurisdictional load. | ||||||
10 | (c) Renewable portfolio standard. | ||||||
11 | (1) The procurement plans shall include cost-effective | ||||||
12 | renewable energy resources. A minimum percentage of each | ||||||
13 | utility's total supply to serve the load of eligible retail | ||||||
14 | customers, as defined in Section 16-111.5(a) of the Public | ||||||
15 | Utilities Act, procured for each of the following years | ||||||
16 | shall be generated from cost-effective renewable energy | ||||||
17 | resources: at least 2% by June 1, 2008; at least 4% by June | ||||||
18 | 1, 2009; at least 5% by June 1, 2010; at least 6% by June 1, | ||||||
19 | 2011; at least 7% by June 1, 2012; at least 8% by June 1, | ||||||
20 | 2013; at least 9% by June 1, 2014; at least 10% by June 1, | ||||||
21 | 2015; and increasing by at least 1.5% each year thereafter | ||||||
22 | to at least 25% by June 1, 2025. To the extent that it is | ||||||
23 | available, at least 75% of the renewable energy resources | ||||||
24 | used to meet these standards shall come from wind | ||||||
25 | generation and, beginning on June 1, 2011, at least the | ||||||
26 | following percentages of the renewable energy resources |
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1 | used to meet these standards shall come from photovoltaics | ||||||
2 | on the following schedule: 0.5% by June 1, 2012, 1.5% by | ||||||
3 | June 1, 2013; 3% by June 1, 2014; and 6% by June 1, 2015 and | ||||||
4 | thereafter. Of the renewable energy resources procured | ||||||
5 | pursuant to this Section, at least the following | ||||||
6 | percentages shall come from distributed renewable energy | ||||||
7 | generation devices: 0.5% by June 1, 2013, 0.75% by June 1, | ||||||
8 | 2014, and 1% by June 1, 2015 and thereafter. To the extent | ||||||
9 | available, half of the renewable energy resources procured | ||||||
10 | from distributed renewable energy generation shall come | ||||||
11 | from devices of less than 25 kilowatts in nameplate | ||||||
12 | capacity. Renewable energy resources procured from | ||||||
13 | distributed generation devices may also count towards the | ||||||
14 | required percentages for wind and solar photovoltaics. | ||||||
15 | Procurement of renewable energy resources from distributed | ||||||
16 | renewable energy generation devices shall be done on an | ||||||
17 | annual basis through multi-year contracts of no less than 5 | ||||||
18 | years, and shall consist solely of renewable energy | ||||||
19 | credits. | ||||||
20 | The Agency shall create credit requirements for | ||||||
21 | suppliers of distributed renewable energy. In order to | ||||||
22 | minimize the administrative burden on contracting | ||||||
23 | entities, the Agency shall solicit the use of third-party | ||||||
24 | organizations to aggregate distributed renewable energy | ||||||
25 | into groups of no less than one megawatt in installed | ||||||
26 | capacity. These third-party organizations shall administer |
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1 | contracts with individual distributed renewable energy | ||||||
2 | generation device owners. An individual distributed | ||||||
3 | renewable energy generation device owner shall have the | ||||||
4 | ability to measure the output of his or her distributed | ||||||
5 | renewable energy generation device. | ||||||
6 | For purposes of this subsection (c), "cost-effective" | ||||||
7 | means that the costs of procuring renewable energy | ||||||
8 | resources do not cause the limit stated in paragraph (2) of | ||||||
9 | this subsection (c) to be exceeded and do not exceed | ||||||
10 | benchmarks based on market prices for renewable energy | ||||||
11 | resources in the region, which shall be developed by the | ||||||
12 | procurement administrator, in consultation with the | ||||||
13 | Commission staff, Agency staff, and the procurement | ||||||
14 | monitor and shall be subject to Commission review and | ||||||
15 | approval. | ||||||
16 | (2) For purposes of this subsection (c), the required | ||||||
17 | procurement of cost-effective renewable energy resources | ||||||
18 | for a particular year shall be measured as a percentage of | ||||||
19 | the actual amount of electricity (megawatt-hours) supplied | ||||||
20 | by the electric utility to eligible retail customers in the | ||||||
21 | planning year ending immediately prior to the procurement. | ||||||
22 | For purposes of this subsection (c), the amount paid per | ||||||
23 | kilowatthour means the total amount paid for electric | ||||||
24 | service expressed on a per kilowatthour basis. For purposes | ||||||
25 | of this subsection (c), the total amount paid for electric | ||||||
26 | service includes without limitation amounts paid for |
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1 | supply, transmission, distribution, surcharges, and add-on | ||||||
2 | taxes. | ||||||
3 | Notwithstanding the requirements of this subsection | ||||||
4 | (c), the total of renewable energy resources procured | ||||||
5 | pursuant to the procurement plan for any single year shall | ||||||
6 | be reduced by an amount necessary to limit the annual | ||||||
7 | estimated average net increase due to the costs of these | ||||||
8 | resources included in the amounts paid by eligible retail | ||||||
9 | customers in connection with electric service to: | ||||||
10 | (A) in 2008, no more than 0.5% of the amount paid | ||||||
11 | per kilowatthour by those customers during the year | ||||||
12 | ending May 31, 2007; | ||||||
13 | (B) in 2009, the greater of an additional 0.5% of | ||||||
14 | the amount paid per kilowatthour by those customers | ||||||
15 | during the year ending May 31, 2008 or 1% of the amount | ||||||
16 | paid per kilowatthour by those customers during the | ||||||
17 | year ending May 31, 2007; | ||||||
18 | (C) in 2010, the greater of an additional 0.5% of | ||||||
19 | the amount paid per kilowatthour by those customers | ||||||
20 | during the year ending May 31, 2009 or 1.5% of the | ||||||
21 | amount paid per kilowatthour by those customers during | ||||||
22 | the year ending May 31, 2007; | ||||||
23 | (D) in 2011, the greater of an additional 0.5% of | ||||||
24 | the amount paid per kilowatthour by those customers | ||||||
25 | during the year ending May 31, 2010 or 2% of the amount | ||||||
26 | paid per kilowatthour by those customers during the |
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1 | year ending May 31, 2007; and | ||||||
2 | (E) thereafter, the amount of renewable energy | ||||||
3 | resources procured pursuant to the procurement plan | ||||||
4 | for any single year shall be reduced by an amount | ||||||
5 | necessary to limit the estimated average net increase | ||||||
6 | due to the cost of these resources included in the | ||||||
7 | amounts paid by eligible retail customers in | ||||||
8 | connection with electric service to no more than the | ||||||
9 | greater of 2.015% of the amount paid per kilowatthour | ||||||
10 | by those customers during the year ending May 31, 2007 | ||||||
11 | or the incremental amount per kilowatthour paid for | ||||||
12 | these resources in 2011. | ||||||
13 | No later than June 30, 2011, the Commission shall | ||||||
14 | review the limitation on the amount of renewable energy | ||||||
15 | resources procured pursuant to this subsection (c) and | ||||||
16 | report to the General Assembly its findings as to | ||||||
17 | whether that limitation unduly constrains the | ||||||
18 | procurement of cost-effective renewable energy | ||||||
19 | resources. | ||||||
20 | (3) Through June 1, 2011, renewable energy resources | ||||||
21 | shall be counted for the purpose of meeting the renewable | ||||||
22 | energy standards set forth in paragraph (1) of this | ||||||
23 | subsection (c) only if they are generated from facilities | ||||||
24 | located in the State, provided that cost-effective | ||||||
25 | renewable energy resources are available from those | ||||||
26 | facilities. If those cost-effective resources are not |
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1 | available in Illinois, they shall be procured in states | ||||||
2 | that adjoin Illinois and may be counted towards compliance. | ||||||
3 | If those cost-effective resources are not available in | ||||||
4 | Illinois or in states that adjoin Illinois, they shall be | ||||||
5 | purchased elsewhere and shall be counted towards | ||||||
6 | compliance. After June 1, 2011, cost-effective renewable | ||||||
7 | energy resources located in Illinois and in states that | ||||||
8 | adjoin Illinois may be counted towards compliance with the | ||||||
9 | standards set forth in paragraph (1) of this subsection | ||||||
10 | (c). If those cost-effective resources are not available in | ||||||
11 | Illinois or in states that adjoin Illinois, they shall be | ||||||
12 | purchased elsewhere and shall be counted towards | ||||||
13 | compliance. | ||||||
14 | (4) The electric utility shall retire all renewable | ||||||
15 | energy credits used to comply with the standard. | ||||||
16 | (5) Beginning with the year commencing June 1, 2010, an | ||||||
17 | electric utility subject to this subsection (c) shall apply | ||||||
18 | the lesser of the maximum alternative compliance payment | ||||||
19 | rate or the most recent estimated alternative compliance | ||||||
20 | payment rate for its service territory for the | ||||||
21 | corresponding compliance period, established pursuant to | ||||||
22 | subsection (d) of Section 16-115D of the Public Utilities | ||||||
23 | Act to its retail customers that take service pursuant to | ||||||
24 | the electric utility's hourly pricing tariff or tariffs. | ||||||
25 | The electric utility shall retain all amounts collected as | ||||||
26 | a result of the application of the alternative compliance |
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1 | payment rate or rates to such customers, and, beginning in | ||||||
2 | 2011, the utility shall include in the information provided | ||||||
3 | under item (1) of subsection (d) of Section 16-111.5 of the | ||||||
4 | Public Utilities Act the amounts collected under the | ||||||
5 | alternative compliance payment rate or rates for the prior | ||||||
6 | year ending May 31. Notwithstanding any limitation on the | ||||||
7 | procurement of renewable energy resources imposed by item | ||||||
8 | (2) of this subsection (c), the Agency shall increase its | ||||||
9 | spending on the purchase of renewable energy resources to | ||||||
10 | be procured by the electric utility for the next plan year | ||||||
11 | by an amount equal to the amounts collected by the utility | ||||||
12 | under the alternative compliance payment rate or rates in | ||||||
13 | the prior year ending May 31. Beginning April 1, 2012, and | ||||||
14 | each year thereafter, the Agency shall prepare a public | ||||||
15 | report for the General Assembly and Illinois Commerce | ||||||
16 | Commission that shall include, but not necessarily be | ||||||
17 | limited to: | ||||||
18 | (A) a comparison of the costs associated with the | ||||||
19 | Agency's procurement of renewable energy resources to | ||||||
20 | (1) the Agency's costs associated with electricity | ||||||
21 | generated by other types of generation facilities and | ||||||
22 | (2) the benefits associated with the Agency's | ||||||
23 | procurement of renewable energy resources; and | ||||||
24 | (B) an analysis of the rate impacts associated with | ||||||
25 | the Illinois Power Agency's procurement of renewable | ||||||
26 | resources, including, but not limited to, any |
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1 | long-term contracts, on the eligible retail customers | ||||||
2 | of electric utilities. | ||||||
3 | The analysis shall include the Agency's estimate of the | ||||||
4 | total dollar impact that the Agency's procurement of | ||||||
5 | renewable resources has had on the annual electricity bills | ||||||
6 | of the customer classes that comprise each eligible retail | ||||||
7 | customer class taking service from an electric utility. The | ||||||
8 | Agency's report shall also analyze how the operation of the | ||||||
9 | alternative compliance payment mechanism, any long-term | ||||||
10 | contracts, or other aspects of the applicable renewable | ||||||
11 | portfolio standards impacts the rates of customers of | ||||||
12 | alternative retail electric suppliers. | ||||||
13 | (d) Clean coal portfolio standard. | ||||||
14 | (1) The procurement plans shall include electricity | ||||||
15 | generated using clean coal. Each utility shall enter into | ||||||
16 | one or more sourcing agreements with the initial clean coal | ||||||
17 | facility, as provided in paragraph (3) of this subsection | ||||||
18 | (d), covering electricity generated by the initial clean | ||||||
19 | coal facility representing at least 5% of each utility's | ||||||
20 | total supply to serve the load of eligible retail customers | ||||||
21 | in 2015 and each year thereafter, as described in paragraph | ||||||
22 | (3) of this subsection (d), subject to the limits specified | ||||||
23 | in paragraph (2) of this subsection (d). It is the goal of | ||||||
24 | the State that by January 1, 2025, 25% of the electricity | ||||||
25 | used in the State shall be generated by cost-effective | ||||||
26 | clean coal facilities. For purposes of this subsection (d), |
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1 | "cost-effective" means that the expenditures pursuant to | ||||||
2 | such sourcing agreements do not cause the limit stated in | ||||||
3 | paragraph (2) of this subsection (d) to be exceeded and do | ||||||
4 | not exceed cost-based benchmarks, which shall be developed | ||||||
5 | to assess all expenditures pursuant to such sourcing | ||||||
6 | agreements covering electricity generated by clean coal | ||||||
7 | facilities, other than the initial clean coal facility, by | ||||||
8 | the procurement administrator, in consultation with the | ||||||
9 | Commission staff, Agency staff, and the procurement | ||||||
10 | monitor and shall be subject to Commission review and | ||||||
11 | approval. | ||||||
12 | A utility party to a sourcing agreement shall | ||||||
13 | immediately retire any emission credits that it receives in | ||||||
14 | connection with the electricity covered by such agreement. | ||||||
15 | Utilities shall maintain adequate records documenting | ||||||
16 | the purchases under the sourcing agreement to comply with | ||||||
17 | this subsection (d) and shall file an accounting with the | ||||||
18 | load forecast that must be filed with the Agency by July 15 | ||||||
19 | of each year, in accordance with subsection (d) of Section | ||||||
20 | 16-111.5 of the Public Utilities Act. | ||||||
21 | A utility shall be deemed to have complied with the | ||||||
22 | clean coal portfolio standard specified in this subsection | ||||||
23 | (d) if the utility enters into a sourcing agreement as | ||||||
24 | required by this subsection (d). | ||||||
25 | (2) For purposes of this subsection (d), the required | ||||||
26 | execution of sourcing agreements with the initial clean |
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1 | coal facility for a particular year shall be measured as a | ||||||
2 | percentage of the actual amount of electricity | ||||||
3 | (megawatt-hours) supplied by the electric utility to | ||||||
4 | eligible retail customers in the planning year ending | ||||||
5 | immediately prior to the agreement's execution. For | ||||||
6 | purposes of this subsection (d), the amount paid per | ||||||
7 | kilowatthour means the total amount paid for electric | ||||||
8 | service expressed on a per kilowatthour basis. For purposes | ||||||
9 | of this subsection (d), the total amount paid for electric | ||||||
10 | service includes without limitation amounts paid for | ||||||
11 | supply, transmission, distribution, surcharges and add-on | ||||||
12 | taxes. | ||||||
13 | Notwithstanding the requirements of this subsection | ||||||
14 | (d), the total amount paid under sourcing agreements with | ||||||
15 | clean coal facilities pursuant to the procurement plan for | ||||||
16 | any given year shall be reduced by an amount necessary to | ||||||
17 | limit the annual estimated average net increase due to the | ||||||
18 | costs of these resources included in the amounts paid by | ||||||
19 | eligible retail customers in connection with electric | ||||||
20 | service to: | ||||||
21 | (A) in 2010, no more than 0.5% of the amount paid | ||||||
22 | per kilowatthour by those customers during the year | ||||||
23 | ending May 31, 2009; | ||||||
24 | (B) in 2011, the greater of an additional 0.5% of | ||||||
25 | the amount paid per kilowatthour by those customers | ||||||
26 | during the year ending May 31, 2010 or 1% of the amount |
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1 | paid per kilowatthour by those customers during the | ||||||
2 | year ending May 31, 2009; | ||||||
3 | (C) in 2012, the greater of an additional 0.5% of | ||||||
4 | the amount paid per kilowatthour by those customers | ||||||
5 | during the year ending May 31, 2011 or 1.5% of the | ||||||
6 | amount paid per kilowatthour by those customers during | ||||||
7 | the year ending May 31, 2009; | ||||||
8 | (D) in 2013, the greater of an additional 0.5% of | ||||||
9 | the amount paid per kilowatthour by those customers | ||||||
10 | during the year ending May 31, 2012 or 2% of the amount | ||||||
11 | paid per kilowatthour by those customers during the | ||||||
12 | year ending May 31, 2009; and | ||||||
13 | (E) thereafter, the total amount paid under | ||||||
14 | sourcing agreements with clean coal facilities | ||||||
15 | pursuant to the procurement plan for any single year | ||||||
16 | shall be reduced by an amount necessary to limit the | ||||||
17 | estimated average net increase due to the cost of these | ||||||
18 | resources included in the amounts paid by eligible | ||||||
19 | retail customers in connection with electric service | ||||||
20 | to no more than the greater of (i) 2.015% of the amount | ||||||
21 | paid per kilowatthour by those customers during the | ||||||
22 | year ending May 31, 2009 or (ii) the incremental amount | ||||||
23 | per kilowatthour paid for these resources in 2013. | ||||||
24 | These requirements may be altered only as provided by | ||||||
25 | statute. | ||||||
26 | No later than June 30, 2015, the Commission shall |
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1 | review the limitation on the total amount paid under | ||||||
2 | sourcing agreements, if any, with clean coal facilities | ||||||
3 | pursuant to this subsection (d) and report to the General | ||||||
4 | Assembly its findings as to whether that limitation unduly | ||||||
5 | constrains the amount of electricity generated by | ||||||
6 | cost-effective clean coal facilities that is covered by | ||||||
7 | sourcing agreements. | ||||||
8 | (3) Initial clean coal facility. In order to promote | ||||||
9 | development of clean coal facilities in Illinois, each | ||||||
10 | electric utility subject to this Section shall execute a | ||||||
11 | sourcing agreement to source electricity from a proposed | ||||||
12 | clean coal facility in Illinois (the "initial clean coal | ||||||
13 | facility") that will have a nameplate capacity of at least | ||||||
14 | 500 MW when commercial operation commences, that has a | ||||||
15 | final Clean Air Act permit on the effective date of this | ||||||
16 | amendatory Act of the 95th General Assembly, and that will | ||||||
17 | meet the definition of clean coal facility in Section 1-10 | ||||||
18 | of this Act when commercial operation commences. The | ||||||
19 | sourcing agreements with this initial clean coal facility | ||||||
20 | shall be subject to both approval of the initial clean coal | ||||||
21 | facility by the General Assembly and satisfaction of the | ||||||
22 | requirements of paragraph (4) of this subsection (d) and | ||||||
23 | shall be executed within 90 days after any such approval by | ||||||
24 | the General Assembly. The Agency and the Commission shall | ||||||
25 | have authority to inspect all books and records associated | ||||||
26 | with the initial clean coal facility during the term of |
| |||||||
| |||||||
1 | such a sourcing agreement. A utility's sourcing agreement | ||||||
2 | for electricity produced by the initial clean coal facility | ||||||
3 | shall include: | ||||||
4 | (A) a formula contractual price (the "contract | ||||||
5 | price") approved pursuant to paragraph (4) of this | ||||||
6 | subsection (d), which shall: | ||||||
7 | (i) be determined using a cost of service | ||||||
8 | methodology employing either a level or deferred | ||||||
9 | capital recovery component, based on a capital | ||||||
10 | structure consisting of 45% equity and 55% debt, | ||||||
11 | and a return on equity as may be approved by the | ||||||
12 | Federal Energy Regulatory Commission, which in any | ||||||
13 | case may not exceed the lower of 11.5% or the rate | ||||||
14 | of return approved by the General Assembly | ||||||
15 | pursuant to paragraph (4) of this subsection (d); | ||||||
16 | and | ||||||
17 | (ii) provide that all miscellaneous net | ||||||
18 | revenue, including but not limited to net revenue | ||||||
19 | from the sale of emission allowances, if any, | ||||||
20 | substitute natural gas, if any, grants or other | ||||||
21 | support provided by the State of Illinois or the | ||||||
22 | United States Government, firm transmission | ||||||
23 | rights, if any, by-products produced by the | ||||||
24 | facility, energy or capacity derived from the | ||||||
25 | facility and not covered by a sourcing agreement | ||||||
26 | pursuant to paragraph (3) of this subsection (d) or |
| |||||||
| |||||||
1 | item (5) of subsection (d) of Section 16-115 of the | ||||||
2 | Public Utilities Act, whether generated from the | ||||||
3 | synthesis gas derived from coal, from SNG, or from | ||||||
4 | natural gas, shall be credited against the revenue | ||||||
5 | requirement for this initial clean coal facility; | ||||||
6 | (B) power purchase provisions, which shall: | ||||||
7 | (i) provide that the utility party to such | ||||||
8 | sourcing agreement shall pay the contract price | ||||||
9 | for electricity delivered under such sourcing | ||||||
10 | agreement; | ||||||
11 | (ii) require delivery of electricity to the | ||||||
12 | regional transmission organization market of the | ||||||
13 | utility that is party to such sourcing agreement; | ||||||
14 | (iii) require the utility party to such | ||||||
15 | sourcing agreement to buy from the initial clean | ||||||
16 | coal facility in each hour an amount of energy | ||||||
17 | equal to all clean coal energy made available from | ||||||
18 | the initial clean coal facility during such hour | ||||||
19 | times a fraction, the numerator of which is such | ||||||
20 | utility's retail market sales of electricity | ||||||
21 | (expressed in kilowatthours sold) in the State | ||||||
22 | during the prior calendar month and the | ||||||
23 | denominator of which is the total retail market | ||||||
24 | sales of electricity (expressed in kilowatthours | ||||||
25 | sold) in the State by utilities during such prior | ||||||
26 | month and the sales of electricity (expressed in |
| |||||||
| |||||||
1 | kilowatthours sold) in the State by alternative | ||||||
2 | retail electric suppliers during such prior month | ||||||
3 | that are subject to the requirements of this | ||||||
4 | subsection (d) and paragraph (5) of subsection (d) | ||||||
5 | of Section 16-115 of the Public Utilities Act, | ||||||
6 | provided that the amount purchased by the utility | ||||||
7 | in any year will be limited by paragraph (2) of | ||||||
8 | this subsection (d); and | ||||||
9 | (iv) be considered pre-existing contracts in | ||||||
10 | such utility's procurement plans for eligible | ||||||
11 | retail customers; | ||||||
12 | (C) contract for differences provisions, which | ||||||
13 | shall: | ||||||
14 | (i) require the utility party to such sourcing | ||||||
15 | agreement to contract with the initial clean coal | ||||||
16 | facility in each hour with respect to an amount of | ||||||
17 | energy equal to all clean coal energy made | ||||||
18 | available from the initial clean coal facility | ||||||
19 | during such hour times a fraction, the numerator of | ||||||
20 | which is such utility's retail market sales of | ||||||
21 | electricity (expressed in kilowatthours sold) in | ||||||
22 | the utility's service territory in the State | ||||||
23 | during the prior calendar month and the | ||||||
24 | denominator of which is the total retail market | ||||||
25 | sales of electricity (expressed in kilowatthours | ||||||
26 | sold) in the State by utilities during such prior |
| |||||||
| |||||||
1 | month and the sales of electricity (expressed in | ||||||
2 | kilowatthours sold) in the State by alternative | ||||||
3 | retail electric suppliers during such prior month | ||||||
4 | that are subject to the requirements of this | ||||||
5 | subsection (d) and paragraph (5) of subsection (d) | ||||||
6 | of Section 16-115 of the Public Utilities Act, | ||||||
7 | provided that the amount paid by the utility in any | ||||||
8 | year will be limited by paragraph (2) of this | ||||||
9 | subsection (d); | ||||||
10 | (ii) provide that the utility's payment | ||||||
11 | obligation in respect of the quantity of | ||||||
12 | electricity determined pursuant to the preceding | ||||||
13 | clause (i) shall be limited to an amount equal to | ||||||
14 | (1) the difference between the contract price | ||||||
15 | determined pursuant to subparagraph (A) of | ||||||
16 | paragraph (3) of this subsection (d) and the | ||||||
17 | day-ahead price for electricity delivered to the | ||||||
18 | regional transmission organization market of the | ||||||
19 | utility that is party to such sourcing agreement | ||||||
20 | (or any successor delivery point at which such | ||||||
21 | utility's supply obligations are financially | ||||||
22 | settled on an hourly basis) (the "reference | ||||||
23 | price") on the day preceding the day on which the | ||||||
24 | electricity is delivered to the initial clean coal | ||||||
25 | facility busbar, multiplied by (2) the quantity of | ||||||
26 | electricity determined pursuant to the preceding |
| |||||||
| |||||||
1 | clause (i); and | ||||||
2 | (iii) not require the utility to take physical | ||||||
3 | delivery of the electricity produced by the | ||||||
4 | facility; | ||||||
5 | (D) general provisions, which shall: | ||||||
6 | (i) specify a term of no more than 30 years, | ||||||
7 | commencing on the commercial operation date of the | ||||||
8 | facility; | ||||||
9 | (ii) provide that utilities shall maintain | ||||||
10 | adequate records documenting purchases under the | ||||||
11 | sourcing agreements entered into to comply with | ||||||
12 | this subsection (d) and shall file an accounting | ||||||
13 | with the load forecast that must be filed with the | ||||||
14 | Agency by July 15 of each year, in accordance with | ||||||
15 | subsection (d) of Section 16-111.5 of the Public | ||||||
16 | Utilities Act; | ||||||
17 | (iii) provide that all costs associated with | ||||||
18 | the initial clean coal facility will be | ||||||
19 | periodically reported to the Federal Energy | ||||||
20 | Regulatory Commission and to purchasers in | ||||||
21 | accordance with applicable laws governing | ||||||
22 | cost-based wholesale power contracts; | ||||||
23 | (iv) permit the Illinois Power Agency to | ||||||
24 | assume ownership of the initial clean coal | ||||||
25 | facility, without monetary consideration and | ||||||
26 | otherwise on reasonable terms acceptable to the |
| |||||||
| |||||||
1 | Agency, if the Agency so requests no less than 3 | ||||||
2 | years prior to the end of the stated contract term; | ||||||
3 | (v) require the owner of the initial clean coal | ||||||
4 | facility to provide documentation to the | ||||||
5 | Commission each year, starting in the facility's | ||||||
6 | first year of commercial operation, accurately | ||||||
7 | reporting the quantity of carbon emissions from | ||||||
8 | the facility that have been captured and | ||||||
9 | sequestered and report any quantities of carbon | ||||||
10 | released from the site or sites at which carbon | ||||||
11 | emissions were sequestered in prior years, based | ||||||
12 | on continuous monitoring of such sites. If, in any | ||||||
13 | year after the first year of commercial operation, | ||||||
14 | the owner of the facility fails to demonstrate that | ||||||
15 | the initial clean coal facility captured and | ||||||
16 | sequestered at least 50% of the total carbon | ||||||
17 | emissions that the facility would otherwise emit | ||||||
18 | or that sequestration of emissions from prior | ||||||
19 | years has failed, resulting in the release of | ||||||
20 | carbon dioxide into the atmosphere, the owner of | ||||||
21 | the facility must offset excess emissions. Any | ||||||
22 | such carbon offsets must be permanent, additional, | ||||||
23 | verifiable, real, located within the State of | ||||||
24 | Illinois, and legally and practicably enforceable. | ||||||
25 | The cost of such offsets for the facility that are | ||||||
26 | not recoverable shall not exceed $15 million in any |
| |||||||
| |||||||
1 | given year. No costs of any such purchases of | ||||||
2 | carbon offsets may be recovered from a utility or | ||||||
3 | its customers. All carbon offsets purchased for | ||||||
4 | this purpose and any carbon emission credits | ||||||
5 | associated with sequestration of carbon from the | ||||||
6 | facility must be permanently retired. The initial | ||||||
7 | clean coal facility shall not forfeit its | ||||||
8 | designation as a clean coal facility if the | ||||||
9 | facility fails to fully comply with the applicable | ||||||
10 | carbon sequestration requirements in any given | ||||||
11 | year, provided the requisite offsets are | ||||||
12 | purchased. However, the Attorney General, on | ||||||
13 | behalf of the People of the State of Illinois, may | ||||||
14 | specifically enforce the facility's sequestration | ||||||
15 | requirement and the other terms of this contract | ||||||
16 | provision. Compliance with the sequestration | ||||||
17 | requirements and offset purchase requirements | ||||||
18 | specified in paragraph (3) of this subsection (d) | ||||||
19 | shall be reviewed annually by an independent | ||||||
20 | expert retained by the owner of the initial clean | ||||||
21 | coal facility, with the advance written approval | ||||||
22 | of the Attorney General. The Commission may, in the | ||||||
23 | course of the review specified in item (vii), | ||||||
24 | reduce the allowable return on equity for the | ||||||
25 | facility if the facility wilfully fails to comply | ||||||
26 | with the carbon capture and sequestration |
| |||||||
| |||||||
1 | requirements set forth in this item (v); | ||||||
2 | (vi) include limits on, and accordingly | ||||||
3 | provide for modification of, the amount the | ||||||
4 | utility is required to source under the sourcing | ||||||
5 | agreement consistent with paragraph (2) of this | ||||||
6 | subsection (d); | ||||||
7 | (vii) require Commission review: (1) to | ||||||
8 | determine the justness, reasonableness, and | ||||||
9 | prudence of the inputs to the formula referenced in | ||||||
10 | subparagraphs (A)(i) through (A)(iii) of paragraph | ||||||
11 | (3) of this subsection (d), prior to an adjustment | ||||||
12 | in those inputs including, without limitation, the | ||||||
13 | capital structure and return on equity, fuel | ||||||
14 | costs, and other operations and maintenance costs | ||||||
15 | and (2) to approve the costs to be passed through | ||||||
16 | to customers under the sourcing agreement by which | ||||||
17 | the utility satisfies its statutory obligations. | ||||||
18 | Commission review shall occur no less than every 3 | ||||||
19 | years, regardless of whether any adjustments have | ||||||
20 | been proposed, and shall be completed within 9 | ||||||
21 | months; | ||||||
22 | (viii) limit the utility's obligation to such | ||||||
23 | amount as the utility is allowed to recover through | ||||||
24 | tariffs filed with the Commission, provided that | ||||||
25 | neither the clean coal facility nor the utility | ||||||
26 | waives any right to assert federal pre-emption or |
| |||||||
| |||||||
1 | any other argument in response to a purported | ||||||
2 | disallowance of recovery costs; | ||||||
3 | (ix) limit the utility's or alternative retail | ||||||
4 | electric supplier's obligation to incur any | ||||||
5 | liability until such time as the facility is in | ||||||
6 | commercial operation and generating power and | ||||||
7 | energy and such power and energy is being delivered | ||||||
8 | to the facility busbar; | ||||||
9 | (x) provide that the owner or owners of the | ||||||
10 | initial clean coal facility, which is the | ||||||
11 | counterparty to such sourcing agreement, shall | ||||||
12 | have the right from time to time to elect whether | ||||||
13 | the obligations of the utility party thereto shall | ||||||
14 | be governed by the power purchase provisions or the | ||||||
15 | contract for differences provisions; | ||||||
16 | (xi) append documentation showing that the | ||||||
17 | formula rate and contract, insofar as they relate | ||||||
18 | to the power purchase provisions, have been | ||||||
19 | approved by the Federal Energy Regulatory | ||||||
20 | Commission pursuant to Section 205 of the Federal | ||||||
21 | Power Act; | ||||||
22 | (xii) provide that any changes to the terms of | ||||||
23 | the contract, insofar as such changes relate to the | ||||||
24 | power purchase provisions, are subject to review | ||||||
25 | under the public interest standard applied by the | ||||||
26 | Federal Energy Regulatory Commission pursuant to |
| |||||||
| |||||||
1 | Sections 205 and 206 of the Federal Power Act; and | ||||||
2 | (xiii) conform with customary lender | ||||||
3 | requirements in power purchase agreements used as | ||||||
4 | the basis for financing non-utility generators. | ||||||
5 | (4) Effective date of sourcing agreements with the | ||||||
6 | initial clean coal facility. | ||||||
7 | Any proposed sourcing agreement with the initial clean | ||||||
8 | coal facility shall not become effective unless the | ||||||
9 | following reports are prepared and submitted and | ||||||
10 | authorizations and approvals obtained: | ||||||
11 | (i) Facility cost report. The owner of the initial | ||||||
12 | clean coal facility shall submit to the Commission, the | ||||||
13 | Agency, and the General Assembly a front-end | ||||||
14 | engineering and design study, a facility cost report, | ||||||
15 | method of financing (including but not limited to | ||||||
16 | structure and associated costs), and an operating and | ||||||
17 | maintenance cost quote for the facility (collectively | ||||||
18 | "facility cost report"), which shall be prepared in | ||||||
19 | accordance with the requirements of this paragraph (4) | ||||||
20 | of subsection (d) of this Section, and shall provide | ||||||
21 | the Commission and the Agency access to the work | ||||||
22 | papers, relied upon documents, and any other backup | ||||||
23 | documentation related to the facility cost report. | ||||||
24 | (ii) Commission report. Within 6 months following | ||||||
25 | receipt of the facility cost report, the Commission, in | ||||||
26 | consultation with the Agency, shall submit a report to |
| |||||||
| |||||||
1 | the General Assembly setting forth its analysis of the | ||||||
2 | facility cost report. Such report shall include, but | ||||||
3 | not be limited to, a comparison of the costs associated | ||||||
4 | with electricity generated by the initial clean coal | ||||||
5 | facility to the costs associated with electricity | ||||||
6 | generated by other types of generation facilities, an | ||||||
7 | analysis of the rate impacts on residential and small | ||||||
8 | business customers over the life of the sourcing | ||||||
9 | agreements, and an analysis of the likelihood that the | ||||||
10 | initial clean coal facility will commence commercial | ||||||
11 | operation by and be delivering power to the facility's | ||||||
12 | busbar by 2016. To assist in the preparation of its | ||||||
13 | report, the Commission, in consultation with the | ||||||
14 | Agency, may hire one or more experts or consultants, | ||||||
15 | the costs of which shall be paid for by the owner of | ||||||
16 | the initial clean coal facility. The Commission and | ||||||
17 | Agency may begin the process of selecting such experts | ||||||
18 | or consultants prior to receipt of the facility cost | ||||||
19 | report. | ||||||
20 | (iii) General Assembly approval. The proposed | ||||||
21 | sourcing agreements shall not take effect unless, | ||||||
22 | based on the facility cost report and the Commission's | ||||||
23 | report, the General Assembly enacts authorizing | ||||||
24 | legislation approving (A) the projected price, stated | ||||||
25 | in cents per kilowatthour, to be charged for | ||||||
26 | electricity generated by the initial clean coal |
| |||||||
| |||||||
1 | facility, (B) the projected impact on residential and | ||||||
2 | small business customers' bills over the life of the | ||||||
3 | sourcing agreements, and (C) the maximum allowable | ||||||
4 | return on equity for the project; and | ||||||
5 | (iv) Commission review. If the General Assembly | ||||||
6 | enacts authorizing legislation pursuant to | ||||||
7 | subparagraph (iii) approving a sourcing agreement, the | ||||||
8 | Commission shall, within 90 days of such enactment, | ||||||
9 | complete a review of such sourcing agreement. During | ||||||
10 | such time period, the Commission shall implement any | ||||||
11 | directive of the General Assembly, resolve any | ||||||
12 | disputes between the parties to the sourcing agreement | ||||||
13 | concerning the terms of such agreement, approve the | ||||||
14 | form of such agreement, and issue an order finding that | ||||||
15 | the sourcing agreement is prudent and reasonable. | ||||||
16 | The facility cost report shall be prepared as follows: | ||||||
17 | (A) The facility cost report shall be prepared by | ||||||
18 | duly licensed engineering and construction firms | ||||||
19 | detailing the estimated capital costs payable to one or | ||||||
20 | more contractors or suppliers for the engineering, | ||||||
21 | procurement and construction of the components | ||||||
22 | comprising the initial clean coal facility and the | ||||||
23 | estimated costs of operation and maintenance of the | ||||||
24 | facility. The facility cost report shall include: | ||||||
25 | (i) an estimate of the capital cost of the core | ||||||
26 | plant based on one or more front end engineering |
| |||||||
| |||||||
1 | and design studies for the gasification island and | ||||||
2 | related facilities. The core plant shall include | ||||||
3 | all civil, structural, mechanical, electrical, | ||||||
4 | control, and safety systems. | ||||||
5 | (ii) an estimate of the capital cost of the | ||||||
6 | balance of the plant, including any capital costs | ||||||
7 | associated with sequestration of carbon dioxide | ||||||
8 | emissions and all interconnects and interfaces | ||||||
9 | required to operate the facility, such as | ||||||
10 | transmission of electricity, construction or | ||||||
11 | backfeed power supply, pipelines to transport | ||||||
12 | substitute natural gas or carbon dioxide, potable | ||||||
13 | water supply, natural gas supply, water supply, | ||||||
14 | water discharge, landfill, access roads, and coal | ||||||
15 | delivery. | ||||||
16 | The quoted construction costs shall be expressed | ||||||
17 | in nominal dollars as of the date that the quote is | ||||||
18 | prepared and shall include capitalized financing costs | ||||||
19 | during construction,
taxes, insurance, and other | ||||||
20 | owner's costs, and an assumed escalation in materials | ||||||
21 | and labor beyond the date as of which the construction | ||||||
22 | cost quote is expressed. | ||||||
23 | (B) The front end engineering and design study for | ||||||
24 | the gasification island and the cost study for the | ||||||
25 | balance of plant shall include sufficient design work | ||||||
26 | to permit quantification of major categories of |
| |||||||
| |||||||
1 | materials, commodities and labor hours, and receipt of | ||||||
2 | quotes from vendors of major equipment required to | ||||||
3 | construct and operate the clean coal facility. | ||||||
4 | (C) The facility cost report shall also include an | ||||||
5 | operating and maintenance cost quote that will provide | ||||||
6 | the estimated cost of delivered fuel, personnel, | ||||||
7 | maintenance contracts, chemicals, catalysts, | ||||||
8 | consumables, spares, and other fixed and variable | ||||||
9 | operations and maintenance costs. The delivered fuel | ||||||
10 | cost estimate will be provided by a recognized third | ||||||
11 | party expert or experts in the fuel and transportation | ||||||
12 | industries. The balance of the operating and | ||||||
13 | maintenance cost quote, excluding delivered fuel | ||||||
14 | costs, will be developed based on the inputs provided | ||||||
15 | by duly licensed engineering and construction firms | ||||||
16 | performing the construction cost quote, potential | ||||||
17 | vendors under long-term service agreements and plant | ||||||
18 | operating agreements, or recognized third party plant | ||||||
19 | operator or operators. | ||||||
20 | The operating and maintenance cost quote | ||||||
21 | (including the cost of the front end engineering and | ||||||
22 | design study) shall be expressed in nominal dollars as | ||||||
23 | of the date that the quote is prepared and shall | ||||||
24 | include taxes, insurance, and other owner's costs, and | ||||||
25 | an assumed escalation in materials and labor beyond the | ||||||
26 | date as of which the operating and maintenance cost |
| |||||||
| |||||||
1 | quote is expressed. | ||||||
2 | (D) The facility cost report shall also include an | ||||||
3 | analysis of the initial clean coal facility's ability | ||||||
4 | to deliver power and energy into the applicable | ||||||
5 | regional transmission organization markets and an | ||||||
6 | analysis of the expected capacity factor for the | ||||||
7 | initial clean coal facility. | ||||||
8 | (E) Amounts paid to third parties unrelated to the | ||||||
9 | owner or owners of the initial clean coal facility to | ||||||
10 | prepare the core plant construction cost quote, | ||||||
11 | including the front end engineering and design study, | ||||||
12 | and the operating and maintenance cost quote will be | ||||||
13 | reimbursed through Coal Development Bonds. | ||||||
14 | (5) Re-powering and retrofitting coal-fired power | ||||||
15 | plants previously owned by Illinois utilities to qualify as | ||||||
16 | clean coal facilities. During the 2009 procurement | ||||||
17 | planning process and thereafter, the Agency and the | ||||||
18 | Commission shall consider sourcing agreements covering | ||||||
19 | electricity generated by power plants that were previously | ||||||
20 | owned by Illinois utilities and that have been or will be | ||||||
21 | converted into clean coal facilities, as defined by Section | ||||||
22 | 1-10 of this Act. Pursuant to such procurement planning | ||||||
23 | process, the owners of such facilities may propose to the | ||||||
24 | Agency sourcing agreements with utilities and alternative | ||||||
25 | retail electric suppliers required to comply with | ||||||
26 | subsection (d) of this Section and item (5) of subsection |
| |||||||
| |||||||
1 | (d) of Section 16-115 of the Public Utilities Act, covering | ||||||
2 | electricity generated by such facilities. In the case of | ||||||
3 | sourcing agreements that are power purchase agreements, | ||||||
4 | the contract price for electricity sales shall be | ||||||
5 | established on a cost of service basis. In the case of | ||||||
6 | sourcing agreements that are contracts for differences, | ||||||
7 | the contract price from which the reference price is | ||||||
8 | subtracted shall be established on a cost of service basis. | ||||||
9 | The Agency and the Commission may approve any such utility | ||||||
10 | sourcing agreements that do not exceed cost-based | ||||||
11 | benchmarks developed by the procurement administrator, in | ||||||
12 | consultation with the Commission staff, Agency staff and | ||||||
13 | the procurement monitor, subject to Commission review and | ||||||
14 | approval. The Commission shall have authority to inspect | ||||||
15 | all books and records associated with these clean coal | ||||||
16 | facilities during the term of any such contract. | ||||||
17 | (5.5) Other clean coal facilities. In order to promote | ||||||
18 | the development of clean coal power generation, and in | ||||||
19 | furtherance of the State's goal of having at least 25% of | ||||||
20 | the State's electricity generated by cost-effective clean | ||||||
21 | coal facilities by January 1, 2025 as provided in paragraph | ||||||
22 | (1) of this subsection (d), the Agency and Commission shall | ||||||
23 | include sourcing agreements covering power produced by (i) | ||||||
24 | clean coal facilities, as defined in Section 1-10 of this | ||||||
25 | Act, and (ii) facilities specified in paragraphs (3) and | ||||||
26 | (5) of this subsection (d), in each annual power |
| |||||||
| |||||||
1 | procurement plan. | ||||||
2 | The Agency and Commission shall require utilities and | ||||||
3 | alternative retail electric suppliers to enter into such | ||||||
4 | sourcing agreements as part of the annual power procurement | ||||||
5 | process. | ||||||
6 | The Agency and Commission shall establish a | ||||||
7 | competitive procedure to solicit and receive proposed | ||||||
8 | sourcing terms from producers of clean coal power | ||||||
9 | interested in selection for sourcing agreements. The | ||||||
10 | competitive procedure shall include a method of selection | ||||||
11 | for inclusion in those agreements. | ||||||
12 | These sourcing agreements shall be subject to the | ||||||
13 | limits contained in items (A) through (E) of paragraph (2) | ||||||
14 | of this subsection (d), the benchmarks as set forth by | ||||||
15 | paragraph (1) of this subsection (d), and the requirements | ||||||
16 | for sourcing agreements contained in paragraph (3) of this | ||||||
17 | subsection (d). As part of the annual procurement planning | ||||||
18 | process, the owners of clean coal facilities may offer | ||||||
19 | proposals to the Agency sourcing agreements with utilities | ||||||
20 | and alternate retail electric suppliers required to comply | ||||||
21 | with this subsection (d), as well as item (5) of subsection | ||||||
22 | (d) of Section 16-115 of the Public Utilities Act, covering | ||||||
23 | electricity generated by such facilities. In the case of | ||||||
24 | sourcing agreements that are power purchase agreements, | ||||||
25 | the contract price for electricity sales shall be | ||||||
26 | established on a cost-of-service basis. In the case of |
| |||||||
| |||||||
1 | sourcing agreements that are contracts for differences, | ||||||
2 | the contract price from which the reference price is | ||||||
3 | subtracted shall be established on a cost-of-service | ||||||
4 | basis. The sourcing agreements shall be included under and | ||||||
5 | governed by provisions of the Public Utilities Act. | ||||||
6 | (6) Costs incurred under this subsection (d) or | ||||||
7 | pursuant to a contract entered into under this subsection | ||||||
8 | (d) shall be deemed prudently incurred and reasonable in | ||||||
9 | amount and the electric utility shall be entitled to full | ||||||
10 | cost recovery pursuant to the tariffs filed with the | ||||||
11 | Commission. | ||||||
12 | (e) The draft procurement plans are subject to public | ||||||
13 | comment, as required by Section 16-111.5 of the Public | ||||||
14 | Utilities Act. | ||||||
15 | (f) The Agency shall submit the final procurement plan to | ||||||
16 | the Commission. The Agency shall revise a procurement plan if | ||||||
17 | the Commission determines that it does not meet the standards | ||||||
18 | set forth in Section 16-111.5 of the Public Utilities Act. | ||||||
19 | (g) The Agency shall assess fees to each affected utility | ||||||
20 | to recover the costs incurred in preparation of the annual | ||||||
21 | procurement plan for the utility. | ||||||
22 | (h) The Agency shall assess fees to each bidder to recover | ||||||
23 | the costs incurred in connection with a competitive procurement | ||||||
24 | process.
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25 | (Source: P.A. 97-325, eff. 8-12-11; 97-616, eff. 10-26-11; | ||||||
26 | 97-618, eff. 10-26-11; 97-658, eff. 1-13-12; 97-813, eff. |
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1 | 7-13-12; 98-463, eff. 8-16-13.)
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2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.
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