Bill Text: IL SB3636 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Power Agency Act. Makes legislative declarations and findings regarding the deployment of energy storage systems. Makes it a goal of the Illinois Power Agency to include implementing procurement of energy storage credits to cost-effectively deploy contracted energy storage systems. Provides that the Agency is authorized to conduct competitive solicitations to procure contracted energy storage credits sufficient to achieve, at minimum, certain energy storage standards. Provides that the Agency has the power to request, review, and accept proposals, execute contracts, and procure energy storage credits. Provides that the Agency shall develop a storage procurement plan that results in the electric utilities contracting for energy storage credits from contracted energy storage systems in specified amounts. Provides that within 90 days of the effective date of the amendatory Act, the Agency shall develop an energy storage procurement plan. Provides that all procurements under these provisions shall comply with the geographic requirements of the Act and shall follow the procurement processes and procedures described in the Act and the Public Utilities Act. Authorizes the Agency to develop and implement a firm energy resource procurement plan. Provides that no later than December 31, 2026 and every 2 years thereafter, the Agency shall conduct an analysis to determine whether the contracted quantity of energy storage in energy storage capacity and energy storage duration is sufficient to support the State's renewable energy standards and carbon emission standards. Makes other provisions. Defines terms. Makes corresponding changes in the Public Utilities Act. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-03-15 - Rule 3-9(a) / Re-referred to Assignments [SB3636 Detail]

Download: Illinois-2023-SB3636-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3636 Introduced 2/9/2024, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
20 ILCS 3855/1-5
20 ILCS 3855/1-10
20 ILCS 3855/1-20
20 ILCS 3855/1-93 new
20 ILCS 3855/1-94 new
220 ILCS 5/16-108
220 ILCS 5/16-111.5
Amends the Illinois Power Agency Act. Makes legislative declarations and findings regarding the deployment of energy storage systems. Makes it a goal of the Illinois Power Agency to include implementing procurement of energy storage credits to cost-effectively deploy contracted energy storage systems. Provides that the Agency is authorized to conduct competitive solicitations to procure contracted energy storage credits sufficient to achieve, at minimum, certain energy storage standards. Provides that the Agency has the power to request, review, and accept proposals, execute contracts, and procure energy storage credits. Provides that the Agency shall develop a storage procurement plan that results in the electric utilities contracting for energy storage credits from contracted energy storage systems in specified amounts. Provides that within 90 days of the effective date of the amendatory Act, the Agency shall develop an energy storage procurement plan. Provides that all procurements under these provisions shall comply with the geographic requirements of the Act and shall follow the procurement processes and procedures described in the Act and the Public Utilities Act. Authorizes the Agency to develop and implement a firm energy resource procurement plan. Provides that no later than December 31, 2026 and every 2 years thereafter, the Agency shall conduct an analysis to determine whether the contracted quantity of energy storage in energy storage capacity and energy storage duration is sufficient to support the State's renewable energy standards and carbon emission standards. Makes other provisions. Defines terms. Makes corresponding changes in the Public Utilities Act. Effective immediately.
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A BILL FOR
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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Power Agency Act is amended by
changing Sections 1-5, 1-10, and 1-20 and by adding Section
1-93 and 1-94 as follows:
(20 ILCS 3855/1-5)
Sec. 1-5. Legislative declarations and findings. The
General Assembly finds and declares:
(1) The health, welfare, and prosperity of all
Illinois residents require the provision of adequate,
reliable, affordable, efficient, and environmentally
sustainable electric service at the lowest total cost over
time, taking into account any benefits of price stability.
(1.5) To provide the highest quality of life for the
residents of Illinois and to provide for a clean and
healthy environment, it is the policy of this State to
rapidly transition to 100% clean energy by 2050.
(2) (Blank).
(3) (Blank).
(4) It is necessary to improve the process of
procuring electricity to serve Illinois residents, to
promote investment in energy efficiency and

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demand-response measures, and to maintain and support
development of clean coal technologies, generation
resources that operate at all hours of the day and under
all weather conditions, zero emission facilities, and
renewable resources.
(5) Procuring a diverse electricity supply portfolio
will ensure the lowest total cost over time for adequate,
reliable, efficient, and environmentally sustainable
electric service.
(6) Including renewable resources and zero emission
credits from zero emission facilities in that portfolio
will reduce long-term direct and indirect costs to
consumers by decreasing environmental impacts and by
avoiding or delaying the need for new generation,
transmission, and distribution infrastructure. Developing
new renewable energy resources in Illinois, including
brownfield solar projects and community solar projects,
will help to diversify Illinois electricity supply, avoid
and reduce pollution, reduce peak demand, and enhance
public health and well-being of Illinois residents.
(7) Developing community solar projects in Illinois
will help to expand access to renewable energy resources
to more Illinois residents.
(8) Developing brownfield solar projects in Illinois
will help return blighted or contaminated land to
productive use while enhancing public health and the

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well-being of Illinois residents, including those in
environmental justice communities.
(9) Energy efficiency, demand-response measures, zero
emission energy, and renewable energy are resources
currently underused in Illinois. These resources should be
used, when cost effective, to reduce costs to consumers,
improve reliability, and improve environmental quality and
public health.
(10) The State should encourage the use of advanced
clean coal technologies that capture and sequester carbon
dioxide emissions to advance environmental protection
goals and to demonstrate the viability of coal and
coal-derived fuels in a carbon-constrained economy.
(10.5) The State should encourage the development of
interregional high voltage direct current (HVDC)
transmission lines that benefit Illinois. All ratepayers
in the State served by the regional transmission
organization where the HVDC converter station is
interconnected benefit from the long-term price stability
and market access provided by interregional HVDC
transmission facilities. The benefits to Illinois include:
reduction in wholesale power prices; access to lower-cost
markets; enabling the integration of additional renewable
generating units within the State through near
instantaneous dispatchability and the provision of
ancillary services; creating good-paying union jobs in

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Illinois; and, enhancing grid reliability and climate
resilience via HVDC facilities that are installed
underground.
(10.6) The health, welfare, and safety of the people
of the State are advanced by developing new HVDC
transmission lines predominantly along transportation
rights-of-way, with an HVDC converter station that is
located in the service territory of a public utility as
defined in Section 3-105 of the Public Utilities Act
serving more than 3,000,000 retail customers, and with a
project labor agreement as defined in Section 1-10 of this
Act.
(11) The General Assembly enacted Public Act 96-0795
to reform the State's purchasing processes, recognizing
that government procurement is susceptible to abuse if
structural and procedural safeguards are not in place to
ensure independence, insulation, oversight, and
transparency.
(12) The principles that underlie the procurement
reform legislation apply also in the context of power
purchasing.
(13) To ensure that the benefits of installing
renewable resources are available to all Illinois
residents and located across the State, subject to
appropriation, it is necessary for the Agency to provide
public information and educational resources on how

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residents can benefit from the expansion of renewable
energy in Illinois and participate in the Illinois Solar
for All Program established in Section 1-56, the
Adjustable Block program established in Section 1-75, the
job training programs established by paragraph (1) of
subsection (a) of Section 16-108.12 of the Public
Utilities Act, and the programs and resources established
by the Energy Transition Act.
(14) The deployment of energy storage systems is
necessary to achieve high levels of renewable energy, to
avoid the use of peaking fossil fuel plants, and to
maintain an efficient, reliable, and resilient electric
grid.
The General Assembly therefore finds that it is necessary
to create the Illinois Power Agency and that the goals and
objectives of that Agency are to accomplish each of the
following:
(A) Develop electricity procurement plans to ensure
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability, for electric utilities that on December
31, 2005 provided electric service to at least 100,000
customers in Illinois and for small multi-jurisdictional
electric utilities that (i) on December 31, 2005 served
less than 100,000 customers in Illinois and (ii) request a

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procurement plan for their Illinois jurisdictional load.
The procurement plan shall be updated on an annual basis
and shall include renewable energy resources and,
beginning with the delivery year commencing June 1, 2017,
zero emission credits from zero emission facilities
sufficient to achieve the standards specified in this Act.
(B) Conduct the competitive procurement processes
identified in this Act.
(C) Develop electric generation and co-generation
facilities that use indigenous coal or renewable
resources, or both, financed with bonds issued by the
Illinois Finance Authority.
(D) Supply electricity from the Agency's facilities at
cost to one or more of the following: municipal electric
systems, governmental aggregators, or rural electric
cooperatives in Illinois.
(E) Ensure that the process of power procurement is
conducted in an ethical and transparent fashion, immune
from improper influence.
(F) Continue to review its policies and practices to
determine how best to meet its mission of providing the
lowest cost power to the greatest number of people, at any
given point in time, in accordance with applicable law.
(G) Operate in a structurally insulated, independent,
and transparent fashion so that nothing impedes the
Agency's mission to secure power at the best prices the

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market will bear, provided that the Agency meets all
applicable legal requirements.
(H) Implement renewable energy procurement and
training programs throughout the State to diversify
Illinois electricity supply, improve reliability, avoid
and reduce pollution, reduce peak demand, and enhance
public health and well-being of Illinois residents,
including low-income residents.
(I) Implement procurement of energy storage credits to
cost-effectively deploy contracted energy storage systems.
(Source: P.A. 102-662, eff. 9-15-21.)
(20 ILCS 3855/1-10)
Sec. 1-10. Definitions.
"Agency" means the Illinois Power Agency.
"Agency loan agreement" means any agreement pursuant to
which the Illinois Finance Authority agrees to loan the
proceeds of revenue bonds issued with respect to a project to
the Agency upon terms providing for loan repayment
installments at least sufficient to pay when due all principal
of, interest and premium, if any, on those revenue bonds, and
providing for maintenance, insurance, and other matters in
respect of the project.
"Authority" means the Illinois Finance Authority.
"Brownfield site photovoltaic project" means photovoltaics
that are either:

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(1) interconnected to an electric utility as defined
in this Section, a municipal utility as defined in this
Section, a public utility as defined in Section 3-105 of
the Public Utilities Act, or an electric cooperative as
defined in Section 3-119 of the Public Utilities Act and
located at a site that is regulated by any of the following
entities under the following programs:
(A) the United States Environmental Protection
Agency under the federal Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as
amended;
(B) the United States Environmental Protection
Agency under the Corrective Action Program of the
federal Resource Conservation and Recovery Act, as
amended;
(C) the Illinois Environmental Protection Agency
under the Illinois Site Remediation Program; or
(D) the Illinois Environmental Protection Agency
under the Illinois Solid Waste Program; or
(2) located at the site of a coal mine that has
permanently ceased coal production, permanently halted any
re-mining operations, and is no longer accepting any coal
combustion residues; has both completed all clean-up and
remediation obligations under the federal Surface Mining
and Reclamation Act of 1977 and all applicable Illinois
rules and any other clean-up, remediation, or ongoing

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monitoring to safeguard the health and well-being of the
people of the State of Illinois, as well as demonstrated
compliance with all applicable federal and State
environmental rules and regulations, including, but not
limited, to 35 Ill. Adm. Code Part 845 and any rules for
historic fill of coal combustion residuals, including any
rules finalized in Subdocket A of Illinois Pollution
Control Board docket R2020-019.
"Clean coal facility" means an electric generating
facility that uses primarily coal as a feedstock and that
captures and sequesters carbon dioxide emissions at the
following levels: at least 50% of the total carbon dioxide
emissions that the facility would otherwise emit if, at the
time construction commences, the facility is scheduled to
commence operation before 2016, at least 70% of the total
carbon dioxide emissions that the facility would otherwise
emit if, at the time construction commences, the facility is
scheduled to commence operation during 2016 or 2017, and at
least 90% of the total carbon dioxide emissions that the
facility would otherwise emit if, at the time construction
commences, the facility is scheduled to commence operation
after 2017. The power block of the clean coal facility shall
not exceed allowable emission rates for sulfur dioxide,
nitrogen oxides, carbon monoxide, particulates and mercury for
a natural gas-fired combined-cycle facility the same size as
and in the same location as the clean coal facility at the time

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the clean coal facility obtains an approved air permit. All
coal used by a clean coal facility shall have high volatile
bituminous rank and greater than 1.7 pounds of sulfur per
million Btu content, unless the clean coal facility does not
use gasification technology and was operating as a
conventional coal-fired electric generating facility on June
1, 2009 (the effective date of Public Act 95-1027).
"Clean coal SNG brownfield facility" means a facility that
(1) has commenced construction by July 1, 2015 on an urban
brownfield site in a municipality with at least 1,000,000
residents; (2) uses a gasification process to produce
substitute natural gas; (3) uses coal as at least 50% of the
total feedstock over the term of any sourcing agreement with a
utility and the remainder of the feedstock may be either
petroleum coke or coal, with all such coal having a high
bituminous rank and greater than 1.7 pounds of sulfur per
million Btu content unless the facility reasonably determines
that it is necessary to use additional petroleum coke to
deliver additional consumer savings, in which case the
facility shall use coal for at least 35% of the total feedstock
over the term of any sourcing agreement; and (4) captures and
sequesters at least 85% of the total carbon dioxide emissions
that the facility would otherwise emit.
"Clean coal SNG facility" means a facility that uses a
gasification process to produce substitute natural gas, that
sequesters at least 90% of the total carbon dioxide emissions

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that the facility would otherwise emit, that uses at least 90%
coal as a feedstock, with all such coal having a high
bituminous rank and greater than 1.7 pounds of sulfur per
million Btu content, and that has a valid and effective permit
to construct emission sources and air pollution control
equipment and approval with respect to the federal regulations
for Prevention of Significant Deterioration of Air Quality
(PSD) for the plant pursuant to the federal Clean Air Act;
provided, however, a clean coal SNG brownfield facility shall
not be a clean coal SNG facility.
"Clean energy" means energy generation that is 90% or
greater free of carbon dioxide emissions.
"Commission" means the Illinois Commerce Commission.
"Community renewable generation project" means an electric
generating facility that:
(1) is powered by wind, solar thermal energy,
photovoltaic cells or panels, biodiesel, crops and
untreated and unadulterated organic waste biomass, and
hydropower that does not involve new construction of dams;
(2) is interconnected at the distribution system level
of an electric utility as defined in this Section, a
municipal utility as defined in this Section that owns or
operates electric distribution facilities, a public
utility as defined in Section 3-105 of the Public
Utilities Act, or an electric cooperative, as defined in
Section 3-119 of the Public Utilities Act;

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(3) credits the value of electricity generated by the
facility to the subscribers of the facility; and
(4) is limited in nameplate capacity to less than or
equal to 5,000 kilowatts.
"Contracted energy storage system" means an energy storage
system that is the subject of a long-term energy storage
contract under Section 1-93. "Contracted energy storage
system" does not include an energy storage system put into
service before the effective date of this amendatory Act of
the 103rd General Assembly.
"Costs incurred in connection with the development and
construction of a facility" means:
(1) the cost of acquisition of all real property,
fixtures, and improvements in connection therewith and
equipment, personal property, and other property, rights,
and easements acquired that are deemed necessary for the
operation and maintenance of the facility;
(2) financing costs with respect to bonds, notes, and
other evidences of indebtedness of the Agency;
(3) all origination, commitment, utilization,
facility, placement, underwriting, syndication, credit
enhancement, and rating agency fees;
(4) engineering, design, procurement, consulting,
legal, accounting, title insurance, survey, appraisal,
escrow, trustee, collateral agency, interest rate hedging,
interest rate swap, capitalized interest, contingency, as

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required by lenders, and other financing costs, and other
expenses for professional services; and
(5) the costs of plans, specifications, site study and
investigation, installation, surveys, other Agency costs
and estimates of costs, and other expenses necessary or
incidental to determining the feasibility of any project,
together with such other expenses as may be necessary or
incidental to the financing, insuring, acquisition, and
construction of a specific project and starting up,
commissioning, and placing that project in operation.
"Delivery services" has the same definition as found in
Section 16-102 of the Public Utilities Act.
"Delivery year" means the consecutive 12-month period
beginning June 1 of a given year and ending May 31 of the
following year.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of the Illinois Power
Agency.
"Demand-response" means measures that decrease peak
electricity demand or shift demand from peak to off-peak
periods.
"Distributed renewable energy generation device" means a
device that is:
(1) powered by wind, solar thermal energy,
photovoltaic cells or panels, biodiesel, crops and

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untreated and unadulterated organic waste biomass, tree
waste, and hydropower that does not involve new
construction of dams, waste heat to power systems, or
qualified combined heat and power systems;
(2) interconnected at the distribution system level of
either an electric utility as defined in this Section, a
municipal utility as defined in this Section that owns or
operates electric distribution facilities, or a rural
electric cooperative as defined in Section 3-119 of the
Public Utilities Act;
(3) located on the customer side of the customer's
electric meter and is primarily used to offset that
customer's electricity load; and
(4) (blank).
"Energy efficiency" means measures that reduce the amount
of electricity or natural gas consumed in order to achieve a
given end use. "Energy efficiency" includes voltage
optimization measures that optimize the voltage at points on
the electric distribution voltage system and thereby reduce
electricity consumption by electric customers' end use
devices. "Energy efficiency" also includes measures that
reduce the total Btus of electricity, natural gas, and other
fuels needed to meet the end use or uses.
"Energy storage capacity" means the nameplate capacity of
a contracted energy storage system, measured in megawatts AC.
"Energy storage credit" means a fungible credit that

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represents the flexibility value of a contracted energy
storage system. An energy storage credit is produced for each
one megawatt of energy storage capacity multiplied by the
energy storage duration each month that the contracted energy
storage system is interconnected with wholesale electricity
markets.
"Energy storage credit counterparty" has the same meaning
as "public utility" as defined in Section 3-105 of the Public
Utilities Act.
"Energy storage credit value" means a price, measured in
dollars per credit, calculated for each month for a contracted
energy storage system.
"Energy storage duration" means the number of hours over
which an energy storage system is capable of continuously
discharging energy at its full energy storage capacity.
"Energy storage system" means commercially available
technology that is capable of absorbing energy and storing it
for use at a later time, including, but not limited to,
electrochemical, thermal, and electromechanical technologies.
"Electric utility" has the same definition as found in
Section 16-102 of the Public Utilities Act.
"Equity investment eligible community" or "eligible
community" are synonymous and mean the geographic areas
throughout Illinois which would most benefit from equitable
investments by the State designed to combat discrimination.
Specifically, the eligible communities shall be defined as the

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following areas:
(1) R3 Areas as established pursuant to Section 10-40
of the Cannabis Regulation and Tax Act, where residents
have historically been excluded from economic
opportunities, including opportunities in the energy
sector; and
(2) environmental justice communities, as defined by
the Illinois Power Agency pursuant to the Illinois Power
Agency Act, where residents have historically been subject
to disproportionate burdens of pollution, including
pollution from the energy sector.
"Equity eligible persons" or "eligible persons" means
persons who would most benefit from equitable investments by
the State designed to combat discrimination, specifically:
(1) persons who graduate from or are current or former
participants in the Clean Jobs Workforce Network Program,
the Clean Energy Contractor Incubator Program, the
Illinois Climate Works Preapprenticeship Program,
Returning Residents Clean Jobs Training Program, or the
Clean Energy Primes Contractor Accelerator Program, and
the solar training pipeline and multi-cultural jobs
program created in paragraphs (a)(1) and (a)(3) of Section
16-208.12 of the Public Utilities Act;
(2) persons who are graduates of or currently enrolled
in the foster care system;
(3) persons who were formerly incarcerated;

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(4) persons whose primary residence is in an equity
investment eligible community.
"Equity eligible contractor" means a business that is
majority-owned by eligible persons, or a nonprofit or
cooperative that is majority-governed by eligible persons, or
is a natural person that is an eligible person offering
personal services as an independent contractor.
"Facility" means an electric generating unit or a
co-generating unit that produces electricity along with
related equipment necessary to connect the facility to an
electric transmission or distribution system.
"Firm energy resource" means electrical resources,
including long-duration energy storage and multi-day energy
storage, that can individually, or in combination, deliver
electricity with guaranteed high availability at rated
capacity for the expected duration of multi-day extreme or
atypical weather events, including periods of low renewable
energy generation, and facilitate integration of eligible
renewable energy resources into the electrical grid and the
transition to a zero-carbon electrical grid.
"General contractor" means the entity or organization with
main responsibility for the building of a construction project
and who is the party signing the prime construction contract
for the project.
"Governmental aggregator" means one or more units of local
government that individually or collectively procure

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electricity to serve residential retail electrical loads
located within its or their jurisdiction.
"High voltage direct current converter station" means the
collection of equipment that converts direct current energy
from a high voltage direct current transmission line into
alternating current using Voltage Source Conversion technology
and that is interconnected with transmission or distribution
assets located in Illinois.
"High voltage direct current renewable energy credit"
means a renewable energy credit associated with a renewable
energy resource where the renewable energy resource has
entered into a contract to transmit the energy associated with
such renewable energy credit over high voltage direct current
transmission facilities.
"High voltage direct current transmission facilities"
means the collection of installed equipment that converts
alternating current energy in one location to direct current
and transmits that direct current energy to a high voltage
direct current converter station using Voltage Source
Conversion technology. "High voltage direct current
transmission facilities" includes the high voltage direct
current converter station itself and associated high voltage
direct current transmission lines. Notwithstanding the
preceding, after September 15, 2021 (the effective date of
Public Act 102-662), an otherwise qualifying collection of
equipment does not qualify as high voltage direct current

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transmission facilities unless its developer entered into a
project labor agreement, is capable of transmitting
electricity at 525kv with an Illinois converter station
located and interconnected in the region of the PJM
Interconnection, LLC, and the system does not operate as a
public utility, as that term is defined in Section 3-105 of the
Public Utilities Act.
"Hydropower" means any method of electricity generation or
storage that results from the flow of water, including
impoundment facilities, diversion facilities, and pumped
storage facilities.
"Index price" means the real-time energy settlement price
at the applicable Illinois trading hub, such as PJM-NIHUB or
MISO-IL, for a given settlement period.
"Indexed renewable energy credit" means a tradable credit
that represents the environmental attributes of one megawatt
hour of energy produced from a renewable energy resource, the
price of which shall be calculated by subtracting the strike
price offered by a new utility-scale wind project or a new
utility-scale photovoltaic project from the index price in a
given settlement period.
"Indexed renewable energy credit counterparty" has the
same meaning as "public utility" as defined in Section 3-105
of the Public Utilities Act.
"Local government" means a unit of local government as
defined in Section 1 of Article VII of the Illinois

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Constitution.
"Long-duration energy storage" means an energy storage
system capable of dispatching energy at its full rated
capacity for 10 hours or greater.
"Long-term energy storage contract" means a contract for
the purchase of energy storage credits generated by an energy
storage system for a period of at least 15 years.
"Multi-day energy storage" means an energy storage system
capable of dispatching energy at its full rated capacity for
greater than 24 hours.
"Modernized" or "retooled" means the construction, repair,
maintenance, or significant expansion of turbines and existing
hydropower dams.
"Municipality" means a city, village, or incorporated
town.
"Municipal utility" means a public utility owned and
operated by any subdivision or municipal corporation of this
State.
"Nameplate capacity" means the aggregate inverter
nameplate capacity in kilowatts AC.
"Person" means any natural person, firm, partnership,
corporation, either domestic or foreign, company, association,
limited liability company, joint stock company, or association
and includes any trustee, receiver, assignee, or personal
representative thereof.
"Project" means the planning, bidding, and construction of

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a facility.
"Project labor agreement" means a pre-hire collective
bargaining agreement that covers all terms and conditions of
employment on a specific construction project and must include
the following:
(1) provisions establishing the minimum hourly wage
for each class of labor organization employee;
(2) provisions establishing the benefits and other
compensation for each class of labor organization
employee;
(3) provisions establishing that no strike or disputes
will be engaged in by the labor organization employees;
(4) provisions establishing that no lockout or
disputes will be engaged in by the general contractor
building the project; and
(5) provisions for minorities and women, as defined
under the Business Enterprise for Minorities, Women, and
Persons with Disabilities Act, setting forth goals for
apprenticeship hours to be performed by minorities and
women and setting forth goals for total hours to be
performed by underrepresented minorities and women.
A labor organization and the general contractor building
the project shall have the authority to include other terms
and conditions as they deem necessary.
"Public utility" has the same definition as found in
Section 3-105 of the Public Utilities Act.

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"Qualified combined heat and power systems" means systems
that, either simultaneously or sequentially, produce
electricity and useful thermal energy from a single fuel
source. Such systems are eligible for "renewable energy
credits" in an amount equal to its total energy output where a
renewable fuel is consumed or in an amount equal to the net
reduction in nonrenewable fuel consumed on a total energy
output basis.
"Real property" means any interest in land together with
all structures, fixtures, and improvements thereon, including
lands under water and riparian rights, any easements,
covenants, licenses, leases, rights-of-way, uses, and other
interests, together with any liens, judgments, mortgages, or
other claims or security interests related to real property.
"Reference capacity price" means a price, measured in
dollars per megawatt-hours, representing the revenue available
for a contracted energy storage system through participation
in the MISO Planning Resource Auction or the PJM Base Residual
Auction, or their successor resource adequacy constructs. The
reference capacity price shall be calculated by adjusting the
most recent clearing price in the MISO Planning Resource
Auction or the PJM Base Residual Action, or their successor
resource adequacy constructs, by the accredited capacity of
the contracted energy storage system and converting the units
to megawatt-hours.
"Renewable energy credit" means a tradable credit that

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represents the environmental attributes of one megawatt hour
of energy produced from a renewable energy resource.
"Renewable energy resources" includes energy and its
associated renewable energy credit or renewable energy credits
from wind, solar thermal energy, photovoltaic cells and
panels, biodiesel, anaerobic digestion, crops and untreated
and unadulterated organic waste biomass, and hydropower that
does not involve new construction of dams, waste heat to power
systems, or qualified combined heat and power systems. For
purposes of this Act, landfill gas produced in the State is
considered a renewable energy resource. "Renewable energy
resources" does not include the incineration or burning of
tires, garbage, general household, institutional, and
commercial waste, industrial lunchroom or office waste,
landscape waste, railroad crossties, utility poles, or
construction or demolition debris, other than untreated and
unadulterated waste wood. "Renewable energy resources" also
includes high voltage direct current renewable energy credits
and the associated energy converted to alternating current by
a high voltage direct current converter station to the extent
that: (1) the generator of such renewable energy resource
contracted with a third party to transmit the energy over the
high voltage direct current transmission facilities, and (2)
the third-party contracting for delivery of renewable energy
resources over the high voltage direct current transmission
facilities have ownership rights over the unretired associated

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high voltage direct current renewable energy credit.
"Retail customer" has the same definition as found in
Section 16-102 of the Public Utilities Act.
"Revenue bond" means any bond, note, or other evidence of
indebtedness issued by the Authority, the principal and
interest of which is payable solely from revenues or income
derived from any project or activity of the Agency.
"Sequester" means permanent storage of carbon dioxide by
injecting it into a saline aquifer, a depleted gas reservoir,
or an oil reservoir, directly or through an enhanced oil
recovery process that may involve intermediate storage,
regardless of whether these activities are conducted by a
clean coal facility, a clean coal SNG facility, a clean coal
SNG brownfield facility, or a party with which a clean coal
facility, clean coal SNG facility, or clean coal SNG
brownfield facility has contracted for such purposes.
"Service area" has the same definition as found in Section
16-102 of the Public Utilities Act.
"Settlement period" means the period of time utilized by
MISO and PJM and their successor organizations as the basis
for settlement calculations in the real-time energy market.
"Sourcing agreement" means (i) in the case of an electric
utility, an agreement between the owner of a clean coal
facility and such electric utility, which agreement shall have
terms and conditions meeting the requirements of paragraph (3)
of subsection (d) of Section 1-75, (ii) in the case of an

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alternative retail electric supplier, an agreement between the
owner of a clean coal facility and such alternative retail
electric supplier, which agreement shall have terms and
conditions meeting the requirements of Section 16-115(d)(5) of
the Public Utilities Act, and (iii) in case of a gas utility,
an agreement between the owner of a clean coal SNG brownfield
facility and the gas utility, which agreement shall have the
terms and conditions meeting the requirements of subsection
(h-1) of Section 9-220 of the Public Utilities Act.
"Strike price" means a contract price for energy and
renewable energy credits from a new utility-scale wind project
or a new utility-scale photovoltaic project.
"Subscriber" means a person who (i) takes delivery service
from an electric utility, and (ii) has a subscription of no
less than 200 watts to a community renewable generation
project that is located in the electric utility's service
area. No subscriber's subscriptions may total more than 40% of
the nameplate capacity of an individual community renewable
generation project. Entities that are affiliated by virtue of
a common parent shall not represent multiple subscriptions
that total more than 40% of the nameplate capacity of an
individual community renewable generation project.
"Subscription" means an interest in a community renewable
generation project expressed in kilowatts, which is sized
primarily to offset part or all of the subscriber's
electricity usage.

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"Substitute natural gas" or "SNG" means a gas manufactured
by gasification of hydrocarbon feedstock, which is
substantially interchangeable in use and distribution with
conventional natural gas.
"Total resource cost test" or "TRC test" means a standard
that is met if, for an investment in energy efficiency or
demand-response measures, the benefit-cost ratio is greater
than one. The benefit-cost ratio is the ratio of the net
present value of the total benefits of the program to the net
present value of the total costs as calculated over the
lifetime of the measures. A total resource cost test compares
the sum of avoided electric utility costs, representing the
benefits that accrue to the system and the participant in the
delivery of those efficiency measures and including avoided
costs associated with reduced use of natural gas or other
fuels, avoided costs associated with reduced water
consumption, and avoided costs associated with reduced
operation and maintenance costs, as well as other quantifiable
societal benefits, to the sum of all incremental costs of
end-use measures that are implemented due to the program
(including both utility and participant contributions), plus
costs to administer, deliver, and evaluate each demand-side
program, to quantify the net savings obtained by substituting
the demand-side program for supply resources. In calculating
avoided costs of power and energy that an electric utility
would otherwise have had to acquire, reasonable estimates

SB3636 - 27 - LRB103 39306 CES 69460 b
shall be included of financial costs likely to be imposed by
future regulations and legislation on emissions of greenhouse
gases. In discounting future societal costs and benefits for
the purpose of calculating net present values, a societal
discount rate based on actual, long-term Treasury bond yields
should be used. Notwithstanding anything to the contrary, the
TRC test shall not include or take into account a calculation
of market price suppression effects or demand reduction
induced price effects.
"Utility-scale solar project" means an electric generating
facility that:
(1) generates electricity using photovoltaic cells;
and
(2) has a nameplate capacity that is greater than
5,000 kilowatts.
"Utility-scale wind project" means an electric generating
facility that:
(1) generates electricity using wind; and
(2) has a nameplate capacity that is greater than
5,000 kilowatts.
"Waste Heat to Power Systems" means systems that capture
and generate electricity from energy that would otherwise be
lost to the atmosphere without the use of additional fuel.
"Zero emission credit" means a tradable credit that
represents the environmental attributes of one megawatt hour
of energy produced from a zero emission facility.

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"Zero emission facility" means a facility that: (1) is
fueled by nuclear power; and (2) is interconnected with PJM
Interconnection, LLC or the Midcontinent Independent System
Operator, Inc., or their successors.
(Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-28-23;
103-380, eff. 1-1-24.)
(20 ILCS 3855/1-20)
Sec. 1-20. General powers and duties of the Agency.
(a) The Agency is authorized to do each of the following:
(1) Develop electricity procurement plans to ensure
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability, for electric utilities that on December
31, 2005 provided electric service to at least 100,000
customers in Illinois and for small multi-jurisdictional
electric utilities that (A) on December 31, 2005 served
less than 100,000 customers in Illinois and (B) request a
procurement plan for their Illinois jurisdictional load.
Except as provided in paragraph (1.5) of this subsection
(a), the electricity procurement plans shall be updated on
an annual basis and shall include electricity generated
from renewable resources sufficient to achieve the
standards specified in this Act. Beginning with the
delivery year commencing June 1, 2017, develop procurement

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plans to include zero emission credits generated from zero
emission facilities sufficient to achieve the standards
specified in this Act. Beginning with the delivery year
commencing on June 1, 2022, the Agency is authorized to
develop carbon mitigation credit procurement plans to
include carbon mitigation credits generated from
carbon-free energy resources sufficient to achieve the
standards specified in this Act.
(1.5) Develop a long-term renewable resources
procurement plan in accordance with subsection (c) of
Section 1-75 of this Act for renewable energy credits in
amounts sufficient to achieve the standards specified in
this Act for delivery years commencing June 1, 2017 and
for the programs and renewable energy credits specified in
Section 1-56 of this Act. Electricity procurement plans
for delivery years commencing after May 31, 2017, shall
not include procurement of renewable energy resources.
(2) Conduct competitive procurement processes to
procure the supply resources identified in the electricity
procurement plan, pursuant to Section 16-111.5 of the
Public Utilities Act, and, for the delivery year
commencing June 1, 2017, conduct procurement processes to
procure zero emission credits from zero emission
facilities, under subsection (d-5) of Section 1-75 of this
Act. For the delivery year commencing June 1, 2022, the
Agency is authorized to conduct procurement processes to

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procure carbon mitigation credits from carbon-free energy
resources, under subsection (d-10) of Section 1-75 of this
Act.
(2.5) Beginning with the procurement for the 2017
delivery year, conduct competitive procurement processes
and implement programs to procure renewable energy credits
identified in the long-term renewable resources
procurement plan developed and approved under subsection
(c) of Section 1-75 of this Act and Section 16-111.5 of the
Public Utilities Act.
(2.10) Oversee the procurement by electric utilities
that served more than 300,000 customers in this State as
of January 1, 2019 of renewable energy credits from new
renewable energy facilities to be installed, along with
energy storage facilities, at or adjacent to the sites of
electric generating facilities that burned coal as their
primary fuel source as of January 1, 2016 in accordance
with subsection (c-5) of Section 1-75 of this Act.
(2.15) Oversee the procurement by electric utilities
of renewable energy credits from newly modernized or
retooled hydropower dams or dams that have been converted
to support hydropower generation.
(3) Develop electric generation and co-generation
facilities that use indigenous coal or renewable
resources, or both, financed with bonds issued by the
Illinois Finance Authority.

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(4) Supply electricity from the Agency's facilities at
cost to one or more of the following: municipal electric
systems, governmental aggregators, or rural electric
cooperatives in Illinois.
(5) Conduct competitive solicitations to procure
energy storage credits sufficient to achieve, at minimum,
the energy storage standard under Section 1-93 of this
Act.
(b) Except as otherwise limited by this Act, the Agency
has all of the powers necessary or convenient to carry out the
purposes and provisions of this Act, including without
limitation, each of the following:
(1) To have a corporate seal, and to alter that seal at
pleasure, and to use it by causing it or a facsimile to be
affixed or impressed or reproduced in any other manner.
(2) To use the services of the Illinois Finance
Authority necessary to carry out the Agency's purposes.
(3) To negotiate and enter into loan agreements and
other agreements with the Illinois Finance Authority.
(4) To obtain and employ personnel and hire
consultants that are necessary to fulfill the Agency's
purposes, and to make expenditures for that purpose within
the appropriations for that purpose.
(5) To purchase, receive, take by grant, gift, devise,
bequest, or otherwise, lease, or otherwise acquire, own,
hold, improve, employ, use, and otherwise deal in and

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with, real or personal property whether tangible or
intangible, or any interest therein, within the State.
(6) To acquire real or personal property, whether
tangible or intangible, including without limitation
property rights, interests in property, franchises,
obligations, contracts, and debt and equity securities,
and to do so by the exercise of the power of eminent domain
in accordance with Section 1-21; except that any real
property acquired by the exercise of the power of eminent
domain must be located within the State.
(7) To sell, convey, lease, exchange, transfer,
abandon, or otherwise dispose of, or mortgage, pledge, or
create a security interest in, any of its assets,
properties, or any interest therein, wherever situated.
(8) To purchase, take, receive, subscribe for, or
otherwise acquire, hold, make a tender offer for, vote,
employ, sell, lend, lease, exchange, transfer, or
otherwise dispose of, mortgage, pledge, or grant a
security interest in, use, and otherwise deal in and with,
bonds and other obligations, shares, or other securities
(or interests therein) issued by others, whether engaged
in a similar or different business or activity.
(9) To make and execute agreements, contracts, and
other instruments necessary or convenient in the exercise
of the powers and functions of the Agency under this Act,
including contracts with any person, including personal

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service contracts, or with any local government, State
agency, or other entity; and all State agencies and all
local governments are authorized to enter into and do all
things necessary to perform any such agreement, contract,
or other instrument with the Agency. No such agreement,
contract, or other instrument shall exceed 40 years.
(10) To lend money, invest and reinvest its funds in
accordance with the Public Funds Investment Act, and take
and hold real and personal property as security for the
payment of funds loaned or invested.
(11) To borrow money at such rate or rates of interest
as the Agency may determine, issue its notes, bonds, or
other obligations to evidence that indebtedness, and
secure any of its obligations by mortgage or pledge of its
real or personal property, machinery, equipment,
structures, fixtures, inventories, revenues, grants, and
other funds as provided or any interest therein, wherever
situated.
(12) To enter into agreements with the Illinois
Finance Authority to issue bonds whether or not the income
therefrom is exempt from federal taxation.
(13) To procure insurance against any loss in
connection with its properties or operations in such
amount or amounts and from such insurers, including the
federal government, as it may deem necessary or desirable,
and to pay any premiums therefor.

SB3636 - 34 - LRB103 39306 CES 69460 b
(14) To negotiate and enter into agreements with
trustees or receivers appointed by United States
bankruptcy courts or federal district courts or in other
proceedings involving adjustment of debts and authorize
proceedings involving adjustment of debts and authorize
legal counsel for the Agency to appear in any such
proceedings.
(15) To file a petition under Chapter 9 of Title 11 of
the United States Bankruptcy Code or take other similar
action for the adjustment of its debts.
(16) To enter into management agreements for the
operation of any of the property or facilities owned by
the Agency.
(17) To enter into an agreement to transfer and to
transfer any land, facilities, fixtures, or equipment of
the Agency to one or more municipal electric systems,
governmental aggregators, or rural electric agencies or
cooperatives, for such consideration and upon such terms
as the Agency may determine to be in the best interest of
the residents of Illinois.
(18) To enter upon any lands and within any building
whenever in its judgment it may be necessary for the
purpose of making surveys and examinations to accomplish
any purpose authorized by this Act.
(19) To maintain an office or offices at such place or
places in the State as it may determine.

SB3636 - 35 - LRB103 39306 CES 69460 b
(20) To request information, and to make any inquiry,
investigation, survey, or study that the Agency may deem
necessary to enable it effectively to carry out the
provisions of this Act.
(21) To accept and expend appropriations.
(22) To engage in any activity or operation that is
incidental to and in furtherance of efficient operation to
accomplish the Agency's purposes, including hiring
employees that the Director deems essential for the
operations of the Agency.
(23) To adopt, revise, amend, and repeal rules with
respect to its operations, properties, and facilities as
may be necessary or convenient to carry out the purposes
of this Act, subject to the provisions of the Illinois
Administrative Procedure Act and Sections 1-22 and 1-35 of
this Act.
(24) To establish and collect charges and fees as
described in this Act.
(25) To conduct competitive gasification feedstock
procurement processes to procure the feedstocks for the
clean coal SNG brownfield facility in accordance with the
requirements of Section 1-78 of this Act.
(26) To review, revise, and approve sourcing
agreements and mediate and resolve disputes between gas
utilities and the clean coal SNG brownfield facility
pursuant to subsection (h-1) of Section 9-220 of the

SB3636 - 36 - LRB103 39306 CES 69460 b
Public Utilities Act.
(27) To request, review and accept proposals, execute
contracts, purchase renewable energy credits and otherwise
dedicate funds from the Illinois Power Agency Renewable
Energy Resources Fund to create and carry out the
objectives of the Illinois Solar for All Program in
accordance with Section 1-56 of this Act.
(28) To ensure Illinois residents and business benefit
from programs administered by the Agency and are properly
protected from any deceptive or misleading marketing
practices by participants in the Agency's programs and
procurements.
(29) To request, review, and accept proposals, execute
contracts, and procure energy storage credits.
(c) In conducting the procurement of electricity or other
products, beginning January 1, 2022, the Agency shall not
procure any products or services from persons or organizations
that are in violation of the Displaced Energy Workers Bill of
Rights, as provided under the Energy Community Reinvestment
Act at the time of the procurement event or fail to comply the
labor standards established in subparagraph (Q) of paragraph
(1) of subsection (c) of Section 1-75.
(Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24.)
(20 ILCS 3855/1-93 new)
Sec. 1-93. Energy storage credit targets.

SB3636 - 37 - LRB103 39306 CES 69460 b
(a) The Agency shall develop a storage procurement plan
that results in the electric utilities contracting for energy
storage credits from contracted energy storage systems in the
following amounts:
(1) at least 1,000 megawatts of cumulative energy
storage capacity by the end of delivery year 2024;
(2) at least 3,000 megawatts of cumulative energy
storage capacity by delivery year 2026;
(3) at least 5,000 megawatts of cumulative energy
storage capacity by delivery year 2028; and
(4) at least 7,500 megawatts of cumulative energy
storage capacity by delivery year 2030.
(b) Within 90 days of the effective date of this
amendatory Act of the 103rd General Assembly, the Agency shall
develop an energy storage procurement plan in accordance with
this Section and Section 16-111.5 of the Public Utilities Act.
(c) For all procurements of energy storage credits, the
Agency shall procure energy storage credits and direct
respondents to offer an energy storage capacity price. The
purchase price of the energy storage credit payment shall be
calculated for each settlement period. The payment, for any
settlement period, shall be equal to the energy storage
capacity for that settlement period.
(d) All procurements under this Section shall comply with
the geographic requirements in subparagraph (I) of paragraph
(1) of subsection (c) of Section 1-75 and shall follow the

SB3636 - 38 - LRB103 39306 CES 69460 b
procurement processes and procedures described in this Section
and Section 16-111.5 of the Public Utilities Act to the extent
practicable, and these processes and procedures may be
expedited to accommodate the schedule established by this
Section. The Agency shall select bids based solely on the
strike price. The winning bidders shall comply with the
prevailing wage requirements in subparagraph (Q) of paragraph
(1) of subsection (c) of Section 1-75 and equity
accountability system requirements in Section (c-10) of
Section 1-75.
(e) No later than December 31, 2026 and every 2 years
thereafter, the Agency shall conduct an analysis to determine
whether the contracted quantity of energy storage in energy
storage capacity and energy storage duration is sufficient to
support the State's renewable energy standards and carbon
emission standards. To conduct the analysis, the Agency shall
retain an independent consultant with experience in wholesale
electric system modeling in PJM and MISO and may seek the
support of the federal Department of Energy and National Labs
to conduct its analysis. The independent consultant shall
utilize a production cost model, capacity expansion model, or
similar comprehensive analysis of the electricity systems and
shall provide opportunities for stakeholders to provide
feedback on the scope, inputs, and assumptions used in the
analysis. The Agency is authorized to collect costs for
conducting the analysis from electric utilities. The electric

SB3636 - 39 - LRB103 39306 CES 69460 b
utilities are authorized to recover the cost of the analysis
as part of the recovery of the cost of energy storage credits,
as authorized in this Section and Section 16-108 of the Public
Utilities Act. If the Agency determines that the need for
energy storage capacity or energy storage duration is greater
than the energy storage credit target in this Section, the
Agency shall establish and the Commission shall approve new
energy storage credit targets to meet the identified need. If
the Agency determines that deployment of energy storage beyond
2030 will not be achieved through wholesale market prices and
other energy storage programs established by the State, the
Agency shall establish additional targets for years beyond
2030.
(20 ILCS 3855/1-94 new)
Sec. 1-94. Firm energy resource procurement plan. The
Agency is authorized to develop and implement a firm energy
resource procurement plan for new resources, including
initiating proceedings and conducting competitive
solicitations to deploy new long-duration and multi-day energy
storage. The procurement plan shall ensure regular procurement
opportunities to deploy new long-duration and multi-day energy
storage resources by 2030 and shall ensure stable, competitive
resource development at a pace needed to ensure grid
reliability and resilience during atypical or extreme grid
conditions that may occur at least once in 20 years while

SB3636 - 40 - LRB103 39306 CES 69460 b
meeting the emissions requirements of Section 9.15 of the
Environmental Protection Act.
The Agency's plan shall ensure that a minimum of 2 new
long-duration or multi-day energy storage resources each with
a rated capacity greater than 20 megawatts shall be deployed
or contracted by the end of delivery year 2026.
Within 365 days of the effective date of this amendatory
Act of the 103rd General Assembly, the Agency shall develop a
firm energy resource procurement plan in accordance with this
Section and Section 16-111.5 of the Public Utilities Act.
Section 10. The Public Utilities Act is amended by
changing Sections 16-108 and 16-111.5 as follows:
(220 ILCS 5/16-108)
Sec. 16-108. Recovery of costs associated with the
provision of delivery and other services.
(a) An electric utility shall file a delivery services
tariff with the Commission at least 210 days prior to the date
that it is required to begin offering such services pursuant
to this Act. An electric utility shall provide the components
of delivery services that are subject to the jurisdiction of
the Federal Energy Regulatory Commission at the same prices,
terms and conditions set forth in its applicable tariff as
approved or allowed into effect by that Commission. The
Commission shall otherwise have the authority pursuant to

SB3636 - 41 - LRB103 39306 CES 69460 b
Article IX to review, approve, and modify the prices, terms
and conditions of those components of delivery services not
subject to the jurisdiction of the Federal Energy Regulatory
Commission, including the authority to determine the extent to
which such delivery services should be offered on an unbundled
basis. In making any such determination the Commission shall
consider, at a minimum, the effect of additional unbundling on
(i) the objective of just and reasonable rates, (ii) electric
utility employees, and (iii) the development of competitive
markets for electric energy services in Illinois.
(b) The Commission shall enter an order approving, or
approving as modified, the delivery services tariff no later
than 30 days prior to the date on which the electric utility
must commence offering such services. The Commission may
subsequently modify such tariff pursuant to this Act.
(c) The electric utility's tariffs shall define the
classes of its customers for purposes of delivery services
charges. Delivery services shall be priced and made available
to all retail customers electing delivery services in each
such class on a nondiscriminatory basis regardless of whether
the retail customer chooses the electric utility, an affiliate
of the electric utility, or another entity as its supplier of
electric power and energy. Charges for delivery services shall
be cost based, and shall allow the electric utility to recover
the costs of providing delivery services through its charges
to its delivery service customers that use the facilities and

SB3636 - 42 - LRB103 39306 CES 69460 b
services associated with such costs. Such costs shall include
the costs of owning, operating and maintaining transmission
and distribution facilities. The Commission shall also be
authorized to consider whether, and if so to what extent, the
following costs are appropriately included in the electric
utility's delivery services rates: (i) the costs of that
portion of generation facilities used for the production and
absorption of reactive power in order that retail customers
located in the electric utility's service area can receive
electric power and energy from suppliers other than the
electric utility, and (ii) the costs associated with the use
and redispatch of generation facilities to mitigate
constraints on the transmission or distribution system in
order that retail customers located in the electric utility's
service area can receive electric power and energy from
suppliers other than the electric utility. Nothing in this
subsection shall be construed as directing the Commission to
allocate any of the costs described in (i) or (ii) that are
found to be appropriately included in the electric utility's
delivery services rates to any particular customer group or
geographic area in setting delivery services rates.
(d) The Commission shall establish charges, terms and
conditions for delivery services that are just and reasonable
and shall take into account customer impacts when establishing
such charges. In establishing charges, terms and conditions
for delivery services, the Commission shall take into account

SB3636 - 43 - LRB103 39306 CES 69460 b
voltage level differences. A retail customer shall have the
option to request to purchase electric service at any delivery
service voltage reasonably and technically feasible from the
electric facilities serving that customer's premises provided
that there are no significant adverse impacts upon system
reliability or system efficiency. A retail customer shall also
have the option to request to purchase electric service at any
point of delivery that is reasonably and technically feasible
provided that there are no significant adverse impacts on
system reliability or efficiency. Such requests shall not be
unreasonably denied.
(e) Electric utilities shall recover the costs of
installing, operating or maintaining facilities for the
particular benefit of one or more delivery services customers,
including without limitation any costs incurred in complying
with a customer's request to be served at a different voltage
level, directly from the retail customer or customers for
whose benefit the costs were incurred, to the extent such
costs are not recovered through the charges referred to in
subsections (c) and (d) of this Section.
(f) An electric utility shall be entitled but not required
to implement transition charges in conjunction with the
offering of delivery services pursuant to Section 16-104. If
an electric utility implements transition charges, it shall
implement such charges for all delivery services customers and
for all customers described in subsection (h), but shall not

SB3636 - 44 - LRB103 39306 CES 69460 b
implement transition charges for power and energy that a
retail customer takes from cogeneration or self-generation
facilities located on that retail customer's premises, if such
facilities meet the following criteria:
(i) the cogeneration or self-generation facilities
serve a single retail customer and are located on that
retail customer's premises (for purposes of this
subparagraph and subparagraph (ii), an industrial or
manufacturing retail customer and a third party contractor
that is served by such industrial or manufacturing
customer through such retail customer's own electrical
distribution facilities under the circumstances described
in subsection (vi) of the definition of "alternative
retail electric supplier" set forth in Section 16-102,
shall be considered a single retail customer);
(ii) the cogeneration or self-generation facilities
either (A) are sized pursuant to generally accepted
engineering standards for the retail customer's electrical
load at that premises (taking into account standby or
other reliability considerations related to that retail
customer's operations at that site) or (B) if the facility
is a cogeneration facility located on the retail
customer's premises, the retail customer is the thermal
host for that facility and the facility has been designed
to meet that retail customer's thermal energy requirements
resulting in electrical output beyond that retail

SB3636 - 45 - LRB103 39306 CES 69460 b
customer's electrical demand at that premises, comply with
the operating and efficiency standards applicable to
"qualifying facilities" specified in title 18 Code of
Federal Regulations Section 292.205 as in effect on the
effective date of this amendatory Act of 1999;
(iii) the retail customer on whose premises the
facilities are located either has an exclusive right to
receive, and corresponding obligation to pay for, all of
the electrical capacity of the facility, or in the case of
a cogeneration facility that has been designed to meet the
retail customer's thermal energy requirements at that
premises, an identified amount of the electrical capacity
of the facility, over a minimum 5-year period; and
(iv) if the cogeneration facility is sized for the
retail customer's thermal load at that premises but
exceeds the electrical load, any sales of excess power or
energy are made only at wholesale, are subject to the
jurisdiction of the Federal Energy Regulatory Commission,
and are not for the purpose of circumventing the
provisions of this subsection (f).
If a generation facility located at a retail customer's
premises does not meet the above criteria, an electric utility
implementing transition charges shall implement a transition
charge until December 31, 2006 for any power and energy taken
by such retail customer from such facility as if such power and
energy had been delivered by the electric utility. Provided,

SB3636 - 46 - LRB103 39306 CES 69460 b
however, that an industrial retail customer that is taking
power from a generation facility that does not meet the above
criteria but that is located on such customer's premises will
not be subject to a transition charge for the power and energy
taken by such retail customer from such generation facility if
the facility does not serve any other retail customer and
either was installed on behalf of the customer and for its own
use prior to January 1, 1997, or is both predominantly fueled
by byproducts of such customer's manufacturing process at such
premises and sells or offers an average of 300 megawatts or
more of electricity produced from such generation facility
into the wholesale market. Such charges shall be calculated as
provided in Section 16-102, and shall be collected on each
kilowatt-hour delivered under a delivery services tariff to a
retail customer from the date the customer first takes
delivery services until December 31, 2006 except as provided
in subsection (h) of this Section. Provided, however, that an
electric utility, other than an electric utility providing
service to at least 1,000,000 customers in this State on
January 1, 1999, shall be entitled to petition for entry of an
order by the Commission authorizing the electric utility to
implement transition charges for an additional period ending
no later than December 31, 2008. The electric utility shall
file its petition with supporting evidence no earlier than 16
months, and no later than 12 months, prior to December 31,
2006. The Commission shall hold a hearing on the electric

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utility's petition and shall enter its order no later than 8
months after the petition is filed. The Commission shall
determine whether and to what extent the electric utility
shall be authorized to implement transition charges for an
additional period. The Commission may authorize the electric
utility to implement transition charges for some or all of the
additional period, and shall determine the mitigation factors
to be used in implementing such transition charges; provided,
that the Commission shall not authorize mitigation factors
less than 110% of those in effect during the 12 months ended
December 31, 2006. In making its determination, the Commission
shall consider the following factors: the necessity to
implement transition charges for an additional period in order
to maintain the financial integrity of the electric utility;
the prudence of the electric utility's actions in reducing its
costs since the effective date of this amendatory Act of 1997;
the ability of the electric utility to provide safe, adequate
and reliable service to retail customers in its service area;
and the impact on competition of allowing the electric utility
to implement transition charges for the additional period.
(g) The electric utility shall file tariffs that establish
the transition charges to be paid by each class of customers to
the electric utility in conjunction with the provision of
delivery services. The electric utility's tariffs shall define
the classes of its customers for purposes of calculating
transition charges. The electric utility's tariffs shall

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provide for the calculation of transition charges on a
customer-specific basis for any retail customer whose average
monthly maximum electrical demand on the electric utility's
system during the 6 months with the customer's highest monthly
maximum electrical demands equals or exceeds 3.0 megawatts for
electric utilities having more than 1,000,000 customers, and
for other electric utilities for any customer that has an
average monthly maximum electrical demand on the electric
utility's system of one megawatt or more, and (A) for which
there exists data on the customer's usage during the 3 years
preceding the date that the customer became eligible to take
delivery services, or (B) for which there does not exist data
on the customer's usage during the 3 years preceding the date
that the customer became eligible to take delivery services,
if in the electric utility's reasonable judgment there exists
comparable usage information or a sufficient basis to develop
such information, and further provided that the electric
utility can require customers for which an individual
calculation is made to sign contracts that set forth the
transition charges to be paid by the customer to the electric
utility pursuant to the tariff.
(h) An electric utility shall also be entitled to file
tariffs that allow it to collect transition charges from
retail customers in the electric utility's service area that
do not take delivery services but that take electric power or
energy from an alternative retail electric supplier or from an

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electric utility other than the electric utility in whose
service area the customer is located. Such charges shall be
calculated, in accordance with the definition of transition
charges in Section 16-102, for the period of time that the
customer would be obligated to pay transition charges if it
were taking delivery services, except that no deduction for
delivery services revenues shall be made in such calculation,
and usage data from the customer's class shall be used where
historical usage data is not available for the individual
customer. The customer shall be obligated to pay such charges
on a lump sum basis on or before the date on which the customer
commences to take service from the alternative retail electric
supplier or other electric utility, provided, that the
electric utility in whose service area the customer is located
shall offer the customer the option of signing a contract
pursuant to which the customer pays such charges ratably over
the period in which the charges would otherwise have applied.
(i) An electric utility shall be entitled to add to the
bills of delivery services customers charges pursuant to
Sections 9-221, 9-222 (except as provided in Section 9-222.1),
and Section 16-114 of this Act, Section 5-5 of the Electricity
Infrastructure Maintenance Fee Law, Section 6-5 of the
Renewable Energy, Energy Efficiency, and Coal Resources
Development Law of 1997, and Section 13 of the Energy
Assistance Act.
(i-5) An electric utility required to impose the Coal to

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Solar and Energy Storage Initiative Charge provided for in
subsection (c-5) of Section 1-75 of the Illinois Power Agency
Act shall add such charge to the bills of its delivery services
customers pursuant to the terms of a tariff conforming to the
requirements of subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act and this subsection (i-5) and filed
with and approved by the Commission. The electric utility
shall file its proposed tariff with the Commission on or
before July 1, 2022 to be effective, after review and approval
or modification by the Commission, beginning January 1, 2023.
On or before December 1, 2022, the Commission shall review the
electric utility's proposed tariff, including by conducting a
docketed proceeding if deemed necessary by the Commission, and
shall approve the proposed tariff or direct the electric
utility to make modifications the Commission finds necessary
for the tariff to conform to the requirements of subsection
(c-5) of Section 1-75 of the Illinois Power Agency Act and this
subsection (i-5). The electric utility's tariff shall provide
for imposition of the Coal to Solar and Energy Storage
Initiative Charge on a per-kilowatthour basis to all
kilowatthours delivered by the electric utility to its
delivery services customers. The tariff shall provide for the
calculation of the Coal to Solar and Energy Storage Initiative
Charge to be in effect for the year beginning January 1, 2023
and each year beginning January 1 thereafter, sufficient to
collect the electric utility's estimated payment obligations

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for the delivery year beginning the following June 1 under
contracts for purchase of renewable energy credits entered
into pursuant to subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act and the obligations of the
Department of Commerce and Economic Opportunity, or any
successor department or agency, which for purposes of this
subsection (i-5) shall be referred to as the Department, to
make grant payments during such delivery year from the Coal to
Solar and Energy Storage Initiative Fund pursuant to grant
contracts entered into pursuant to subsection (c-5) of Section
1-75 of the Illinois Power Agency Act, and using the electric
utility's kilowatthour deliveries to its delivery services
customers during the delivery year ended May 31 of the
preceding calendar year. On or before November 1 of each year
beginning November 1, 2022, the Department shall notify the
electric utilities of the amount of the Department's estimated
obligations for grant payments during the delivery year
beginning the following June 1 pursuant to grant contracts
entered into pursuant to subsection (c-5) of Section 1-75 of
the Illinois Power Agency Act; and each electric utility shall
incorporate in the calculation of its Coal to Solar and Energy
Storage Initiative Charge the fractional portion of the
Department's estimated obligations equal to the electric
utility's kilowatthour deliveries to its delivery services
customers in the delivery year ended the preceding May 31
divided by the aggregate deliveries of both electric utilities

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to delivery services customers in such delivery year. The
electric utility shall remit on a monthly basis to the State
Treasurer, for deposit in the Coal to Solar and Energy Storage
Initiative Fund provided for in subsection (c-5) of Section
1-75 of the Illinois Power Agency Act, the electric utility's
collections of the Coal to Solar and Energy Storage Initiative
Charge estimated to be needed by the Department for grant
payments pursuant to grant contracts entered into pursuant to
subsection (c-5) of Section 1-75 of the Illinois Power Agency
Act. The initial charge under the electric utility's tariff
shall be effective for kilowatthours delivered beginning
January 1, 2023, and thereafter shall be revised to be
effective January 1, 2024 and each January 1 thereafter, based
on the payment obligations for the delivery year beginning the
following June 1. The tariff shall provide for the electric
utility to make an annual filing with the Commission on or
before November 15 of each year, beginning in 2023, setting
forth the Coal to Solar and Energy Storage Initiative Charge
to be in effect for the year beginning the following January 1.
The electric utility's tariff shall also provide that the
electric utility shall make a filing with the Commission on or
before August 1 of each year beginning in 2024 setting forth a
reconciliation, for the delivery year ended the preceding May
31, of the electric utility's collections of the Coal to Solar
and Energy Storage Initiative Charge against actual payments
for renewable energy credits pursuant to contracts entered

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into, and the actual grant payments by the Department pursuant
to grant contracts entered into, pursuant to subsection (c-5)
of Section 1-75 of the Illinois Power Agency Act. The tariff
shall provide that any excess or shortfall of collections to
payments shall be deducted from or added to, on a
per-kilowatthour basis, the Coal to Solar and Energy Storage
Initiative Charge, over the 6-month period beginning October 1
of that calendar year.
(j) If a retail customer that obtains electric power and
energy from cogeneration or self-generation facilities
installed for its own use on or before January 1, 1997,
subsequently takes service from an alternative retail electric
supplier or an electric utility other than the electric
utility in whose service area the customer is located for any
portion of the customer's electric power and energy
requirements formerly obtained from those facilities
(including that amount purchased from the utility in lieu of
such generation and not as standby power purchases, under a
cogeneration displacement tariff in effect as of the effective
date of this amendatory Act of 1997), the transition charges
otherwise applicable pursuant to subsections (f), (g), or (h)
of this Section shall not be applicable in any year to that
portion of the customer's electric power and energy
requirements formerly obtained from those facilities,
provided, that for purposes of this subsection (j), such
portion shall not exceed the average number of kilowatt-hours

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per year obtained from the cogeneration or self-generation
facilities during the 3 years prior to the date on which the
customer became eligible for delivery services, except as
provided in subsection (f) of Section 16-110.
(k) The electric utility shall be entitled to recover
through tariffed charges all of the costs associated with the
purchase of zero emission credits from zero emission
facilities to meet the requirements of subsection (d-5) of
Section 1-75 of the Illinois Power Agency Act and all of the
costs associated with the purchase of carbon mitigation
credits from carbon-free energy resources to meet the
requirements of subsection (d-10) of Section 1-75 of the
Illinois Power Agency Act. Such costs shall include the costs
of procuring the zero emission credits and carbon mitigation
credits from carbon-free energy resources, as well as the
reasonable costs that the utility incurs as part of the
procurement processes and to implement and comply with plans
and processes approved by the Commission under subsections
(d-5) and (d-10). The costs shall be allocated across all
retail customers through a single, uniform cents per
kilowatt-hour charge applicable to all retail customers, which
shall appear as a separate line item on each customer's bill.
Beginning June 1, 2024, the electric utility shall be entitled
to recover through tariffed charges all of the costs
associated with the purchase of energy storage credits to meet
the energy storage standards of Section 1-93 of the Illinois

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Power Agency Act under procurement plans as approved in
accordance with that Section and Section 16-111.5 of this Act.
Such costs shall include the costs of procuring the energy
storage credits and the reasonable costs that the utility
incurs as part of the procurement processes and implementing
and complying with plans and processes approved by the
Commission under such Sections. The costs associated with the
purchase of energy storage credits shall be allocated across
all retail customers in proportion to the amount of energy
storage credits the electric utility procures for such
customers through a single, uniform cents per kilowatthour
charge applicable to such retail customers, which shall appear
as a separate line item on each customer's bill. Beginning
June 1, 2017, the electric utility shall be entitled to
recover through tariffed charges all of the costs associated
with the purchase of renewable energy resources to meet the
renewable energy resource standards of subsection (c) of
Section 1-75 of the Illinois Power Agency Act, under
procurement plans as approved in accordance with that Section
and Section 16-111.5 of this Act. Such costs shall include the
costs of procuring the renewable energy resources, as well as
the reasonable costs that the utility incurs as part of the
procurement processes and to implement and comply with plans
and processes approved by the Commission under such Sections.
The costs associated with the purchase of renewable energy
resources shall be allocated across all retail customers in

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proportion to the amount of renewable energy resources the
utility procures for such customers through a single, uniform
cents per kilowatt-hour charge applicable to such retail
customers, which shall appear as a separate line item on each
such customer's bill. The credits, costs, and penalties
associated with the self-direct renewable portfolio standard
compliance program described in subparagraph (R) of paragraph
(1) of subsection (c) of Section 1-75 of the Illinois Power
Agency Act shall be allocated to approved eligible self-direct
customers by the utility in a cents per kilowatt-hour credit,
cost, or penalty, which shall appear as a separate line item on
each such customer's bill.
Notwithstanding whether the Commission has approved the
initial long-term renewable resources procurement plan as of
June 1, 2017, an electric utility shall place new tariffed
charges into effect beginning with the June 2017 monthly
billing period, to the extent practicable, to begin recovering
the costs of procuring renewable energy resources, as those
charges are calculated under the limitations described in
subparagraph (E) of paragraph (1) of subsection (c) of Section
1-75 of the Illinois Power Agency Act. Notwithstanding the
date on which the utility places such new tariffed charges
into effect, the utility shall be permitted to collect the
charges under such tariff as if the tariff had been in effect
beginning with the first day of the June 2017 monthly billing
period. For the delivery years commencing June 1, 2017, June

SB3636 - 57 - LRB103 39306 CES 69460 b
1, 2018, June 1, 2019, and each delivery year thereafter, the
electric utility shall deposit into a separate interest
bearing account of a financial institution the monies
collected under the tariffed charges. Money collected from
customers for the procurement of renewable energy resources in
a given delivery year may be spent by the utility for the
procurement of renewable resources over any of the following 5
delivery years, after which unspent money shall be credited
back to retail customers. The electric utility shall spend all
money collected in earlier delivery years that has not yet
been returned to customers, first, before spending money
collected in later delivery years. Any interest earned shall
be credited back to retail customers under the reconciliation
proceeding provided for in this subsection (k), provided that
the electric utility shall first be reimbursed from the
interest for the administrative costs that it incurs to
administer and manage the account. Any taxes due on the funds
in the account, or interest earned on it, will be paid from the
account or, if insufficient monies are available in the
account, from the monies collected under the tariffed charges
to recover the costs of procuring renewable energy resources.
Monies deposited in the account shall be subject to the
review, reconciliation, and true-up process described in this
subsection (k) that is applicable to the funds collected and
costs incurred for the procurement of renewable energy
resources.

SB3636 - 58 - LRB103 39306 CES 69460 b
The electric utility shall be entitled to recover all of
the costs identified in this subsection (k) through automatic
adjustment clause tariffs applicable to all of the utility's
retail customers that allow the electric utility to adjust its
tariffed charges consistent with this subsection (k). The
determination as to whether any excess funds were collected
during a given delivery year for the purchase of renewable
energy resources, and the crediting of any excess funds back
to retail customers, shall not be made until after the close of
the delivery year, which will ensure that the maximum amount
of funds is available to implement the approved long-term
renewable resources procurement plan during a given delivery
year. The amount of excess funds eligible to be credited back
to retail customers shall be reduced by an amount equal to the
payment obligations required by any contracts entered into by
an electric utility under contracts described in subsection
(b) of Section 1-56 and subsection (c) of Section 1-75 of the
Illinois Power Agency Act, even if such payments have not yet
been made and regardless of the delivery year in which those
payment obligations were incurred. Notwithstanding anything to
the contrary, including in tariffs authorized by this
subsection (k) in effect before the effective date of this
amendatory Act of the 102nd General Assembly, all unspent
funds as of May 31, 2021, excluding any funds credited to
customers during any utility billing cycle that commences
prior to the effective date of this amendatory Act of the 102nd

SB3636 - 59 - LRB103 39306 CES 69460 b
General Assembly, shall remain in the utility account and
shall on a first in, first out basis be used toward utility
payment obligations under contracts described in subsection
(b) of Section 1-56 and subsection (c) of Section 1-75 of the
Illinois Power Agency Act. The electric utility's collections
under such automatic adjustment clause tariffs to recover the
costs of renewable energy resources, zero emission credits
from zero emission facilities, and carbon mitigation credits
from carbon-free energy resources shall be subject to separate
annual review, reconciliation, and true-up against actual
costs by the Commission under a procedure that shall be
specified in the electric utility's automatic adjustment
clause tariffs and that shall be approved by the Commission in
connection with its approval of such tariffs. The procedure
shall provide that any difference between the electric
utility's collections for zero emission credits and carbon
mitigation credits under the automatic adjustment charges for
an annual period and the electric utility's actual costs of
zero emission credits from zero emission facilities and carbon
mitigation credits from carbon-free energy resources for that
same annual period shall be refunded to or collected from, as
applicable, the electric utility's retail customers in
subsequent periods.
Nothing in this subsection (k) is intended to affect,
limit, or change the right of the electric utility to recover
the costs associated with the procurement of renewable energy

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resources for periods commencing before, on, or after June 1,
2017, as otherwise provided in the Illinois Power Agency Act.
The funding available under this subsection (k), if any,
for the programs described under subsection (b) of Section
1-56 of the Illinois Power Agency Act shall not reduce the
amount of funding for the programs described in subparagraph
(O) of paragraph (1) of subsection (c) of Section 1-75 of the
Illinois Power Agency Act. If funding is available under this
subsection (k) for programs described under subsection (b) of
Section 1-56 of the Illinois Power Agency Act, then the
long-term renewable resources plan shall provide for the
Agency to procure contracts in an amount that does not exceed
the funding, and the contracts approved by the Commission
shall be executed by the applicable utility or utilities.
(l) A utility that has terminated any contract executed
under subsection (d-5) or (d-10) of Section 1-75 of the
Illinois Power Agency Act shall be entitled to recover any
remaining balance associated with the purchase of zero
emission credits prior to such termination, and such utility
shall also apply a credit to its retail customer bills in the
event of any over-collection.
(m)(1) An electric utility that recovers its costs of
procuring zero emission credits from zero emission facilities
through a cents-per-kilowatthour charge under subsection (k)
of this Section shall be subject to the requirements of this
subsection (m). Notwithstanding anything to the contrary, such

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electric utility shall, beginning on April 30, 2018, and each
April 30 thereafter until April 30, 2026, calculate whether
any reduction must be applied to such cents-per-kilowatthour
charge that is paid by retail customers of the electric
utility that have opted out of subsections (a) through (j) of
Section 8-103B of this Act under subsection (l) of Section
8-103B. Such charge shall be reduced for such customers for
the next delivery year commencing on June 1 based on the amount
necessary, if any, to limit the annual estimated average net
increase for the prior calendar year due to the future energy
investment costs to no more than 1.3% of 5.98 cents per
kilowatt-hour, which is the average amount paid per
kilowatthour for electric service during the year ending
December 31, 2015 by Illinois industrial retail customers, as
reported to the Edison Electric Institute.
The calculations required by this subsection (m) shall be
made only once for each year, and no subsequent rate impact
determinations shall be made.
(2) For purposes of this Section, "future energy
investment costs" shall be calculated by subtracting the
cents-per-kilowatthour charge identified in subparagraph (A)
of this paragraph (2) from the sum of the
cents-per-kilowatthour charges identified in subparagraph (B)
of this paragraph (2):
(A) The cents-per-kilowatthour charge identified in
the electric utility's tariff placed into effect under

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Section 8-103 of the Public Utilities Act that, on
December 1, 2016, was applicable to those retail customers
that have opted out of subsections (a) through (j) of
Section 8-103B of this Act under subsection (l) of Section
8-103B.
(B) The sum of the following cents-per-kilowatthour
charges applicable to those retail customers that have
opted out of subsections (a) through (j) of Section 8-103B
of this Act under subsection (l) of Section 8-103B,
provided that if one or more of the following charges has
been in effect and applied to such customers for more than
one calendar year, then each charge shall be equal to the
average of the charges applied over a period that
commences with the calendar year ending December 31, 2017
and ends with the most recently completed calendar year
prior to the calculation required by this subsection (m):
(i) the cents-per-kilowatthour charge to recover
the costs incurred by the utility under subsection
(d-5) of Section 1-75 of the Illinois Power Agency
Act, adjusted for any reductions required under this
subsection (m); and
(ii) the cents-per-kilowatthour charge to recover
the costs incurred by the utility under Section
16-107.6 of the Public Utilities Act.
If no charge was applied for a given calendar year
under item (i) or (ii) of this subparagraph (B), then the

SB3636 - 63 - LRB103 39306 CES 69460 b
value of the charge for that year shall be zero.
(3) If a reduction is required by the calculation
performed under this subsection (m), then the amount of the
reduction shall be multiplied by the number of years reflected
in the averages calculated under subparagraph (B) of paragraph
(2) of this subsection (m). Such reduction shall be applied to
the cents-per-kilowatthour charge that is applicable to those
retail customers that have opted out of subsections (a)
through (j) of Section 8-103B of this Act under subsection (l)
of Section 8-103B beginning with the next delivery year
commencing after the date of the calculation required by this
subsection (m).
(4) The electric utility shall file a notice with the
Commission on May 1 of 2018 and each May 1 thereafter until May
1, 2026 containing the reduction, if any, which must be
applied for the delivery year which begins in the year of the
filing. The notice shall contain the calculations made
pursuant to this Section. By October 1 of each year beginning
in 2018, each electric utility shall notify the Commission if
it appears, based on an estimate of the calculation required
in this subsection (m), that a reduction will be required in
the next year.
(Source: P.A. 102-662, eff. 9-15-21.)
(220 ILCS 5/16-111.5)
Sec. 16-111.5. Provisions relating to procurement.

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(a) An electric utility that on December 31, 2005 served
at least 100,000 customers in Illinois shall procure power and
energy for its eligible retail customers in accordance with
the applicable provisions set forth in Section 1-75 of the
Illinois Power Agency Act and this Section. Beginning with the
delivery year commencing on June 1, 2024, an electric utility
serving over 100,000 customers shall also procure energy
storage credits in accordance with the applicable provisions
of Section 1-75 of the Illinois Power Agency Act and this
Section. Beginning with the delivery year commencing on June
1, 2017, such electric utility shall also procure zero
emission credits from zero emission facilities in accordance
with the applicable provisions set forth in Section 1-75 of
the Illinois Power Agency Act, and, for years beginning on or
after June 1, 2017, the utility shall procure renewable energy
resources in accordance with the applicable provisions set
forth in Section 1-75 of the Illinois Power Agency Act and this
Section. Beginning with the delivery year commencing on June
1, 2022, an electric utility serving over 3,000,000 customers
shall also procure carbon mitigation credits from carbon-free
energy resources in accordance with the applicable provisions
set forth in Section 1-75 of the Illinois Power Agency Act and
this Section. A small multi-jurisdictional electric utility
that on December 31, 2005 served less than 100,000 customers
in Illinois may elect to procure power and energy for all or a
portion of its eligible Illinois retail customers in

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accordance with the applicable provisions set forth in this
Section and Section 1-75 of the Illinois Power Agency Act.
This Section shall not apply to a small multi-jurisdictional
utility until such time as a small multi-jurisdictional
utility requests the Illinois Power Agency to prepare a
procurement plan for its eligible retail customers. "Eligible
retail customers" for the purposes of this Section means those
retail customers that purchase power and energy from the
electric utility under fixed-price bundled service tariffs,
other than those retail customers whose service is declared or
deemed competitive under Section 16-113 and those other
customer groups specified in this Section, including
self-generating customers, customers electing hourly pricing,
or those customers who are otherwise ineligible for
fixed-price bundled tariff service. For those customers that
are excluded from the procurement plan's electric supply
service requirements, and the utility shall procure any supply
requirements, including capacity, ancillary services, and
hourly priced energy, in the applicable markets as needed to
serve those customers, provided that the utility may include
in its procurement plan load requirements for the load that is
associated with those retail customers whose service has been
declared or deemed competitive pursuant to Section 16-113 of
this Act to the extent that those customers are purchasing
power and energy during one of the transition periods
identified in subsection (b) of Section 16-113 of this Act.

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(b) A procurement plan shall be prepared for each electric
utility consistent with the applicable requirements of the
Illinois Power Agency Act and this Section. For purposes of
this Section, Illinois electric utilities that are affiliated
by virtue of a common parent company are considered to be a
single electric utility. Small multi-jurisdictional utilities
may request a procurement plan for a portion of or all of its
Illinois load. Each procurement plan shall analyze the
projected balance of supply and demand for those retail
customers to be included in the plan's electric supply service
requirements over a 5-year period, with the first planning
year beginning on June 1 of the year following the year in
which the plan is filed. The plan shall specifically identify
the wholesale products to be procured following plan approval,
and shall follow all the requirements set forth in the Public
Utilities Act and all applicable State and federal laws,
statutes, rules, or regulations, as well as Commission orders.
Nothing in this Section precludes consideration of contracts
longer than 5 years and related forecast data. Unless
specified otherwise in this Section, in the procurement plan
or in the implementing tariff, any procurement occurring in
accordance with this plan shall be competitively bid through a
request for proposals process. Approval and implementation of
the procurement plan shall be subject to review and approval
by the Commission according to the provisions set forth in
this Section. A procurement plan shall include each of the

SB3636 - 67 - LRB103 39306 CES 69460 b
following components:
(1) Hourly load analysis. This analysis shall include:
(i) multi-year historical analysis of hourly
loads;
(ii) switching trends and competitive retail
market analysis;
(iii) known or projected changes to future loads;
and
(iv) growth forecasts by customer class.
(2) Analysis of the impact of any demand side and
renewable energy initiatives. This analysis shall include:
(i) the impact of demand response programs and
energy efficiency programs, both current and
projected; for small multi-jurisdictional utilities,
the impact of demand response and energy efficiency
programs approved pursuant to Section 8-408 of this
Act, both current and projected; and
(ii) supply side needs that are projected to be
offset by purchases of renewable energy resources, if
any.
(3) A plan for meeting the expected load requirements
that will not be met through preexisting contracts. This
plan shall include:
(i) definitions of the different Illinois retail
customer classes for which supply is being purchased;
(ii) the proposed mix of demand-response products

SB3636 - 68 - LRB103 39306 CES 69460 b
for which contracts will be executed during the next
year. For small multi-jurisdictional electric
utilities that on December 31, 2005 served fewer than
100,000 customers in Illinois, these shall be defined
as demand-response products offered in an energy
efficiency plan approved pursuant to Section 8-408 of
this Act. The cost-effective demand-response measures
shall be procured whenever the cost is lower than
procuring comparable capacity products, provided that
such products shall:
(A) be procured by a demand-response provider
from those retail customers included in the plan's
electric supply service requirements;
(B) at least satisfy the demand-response
requirements of the regional transmission
organization market in which the utility's service
territory is located, including, but not limited
to, any applicable capacity or dispatch
requirements;
(C) provide for customers' participation in
the stream of benefits produced by the
demand-response products;
(D) provide for reimbursement by the
demand-response provider of the utility for any
costs incurred as a result of the failure of the
supplier of such products to perform its

SB3636 - 69 - LRB103 39306 CES 69460 b
obligations thereunder; and
(E) meet the same credit requirements as apply
to suppliers of capacity, in the applicable
regional transmission organization market;
(iii) monthly forecasted system supply
requirements, including expected minimum, maximum, and
average values for the planning period;
(iv) the proposed mix and selection of standard
wholesale products for which contracts will be
executed during the next year, separately or in
combination, to meet that portion of its load
requirements not met through pre-existing contracts,
including but not limited to monthly 5 x 16 peak period
block energy, monthly off-peak wrap energy, monthly 7
x 24 energy, annual 5 x 16 energy, other standardized
energy or capacity products designed to provide
eligible retail customer benefits from commercially
deployed advanced technologies including but not
limited to high voltage direct current converter
stations, as such term is defined in Section 1-10 of
the Illinois Power Agency Act, whether or not such
product is currently available in wholesale markets,
annual off-peak wrap energy, annual 7 x 24 energy,
monthly capacity, annual capacity, peak load capacity
obligations, capacity purchase plan, and ancillary
services;

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(v) proposed term structures for each wholesale
product type included in the proposed procurement plan
portfolio of products; and
(vi) an assessment of the price risk, load
uncertainty, and other factors that are associated
with the proposed procurement plan; this assessment,
to the extent possible, shall include an analysis of
the following factors: contract terms, time frames for
securing products or services, fuel costs, weather
patterns, transmission costs, market conditions, and
the governmental regulatory environment; the proposed
procurement plan shall also identify alternatives for
those portfolio measures that are identified as having
significant price risk and mitigation in the form of
additional retail customer and ratepayer price,
reliability, and environmental benefits from
standardized energy products delivered from
commercially deployed advanced technologies,
including, but not limited to, high voltage direct
current converter stations, as such term is defined in
Section 1-10 of the Illinois Power Agency Act, whether
or not such product is currently available in
wholesale markets.
(4) Proposed procedures for balancing loads. The
procurement plan shall include, for load requirements
included in the procurement plan, the process for (i)

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hourly balancing of supply and demand and (ii) the
criteria for portfolio re-balancing in the event of
significant shifts in load.
(5) Long-Term Renewable Resources Procurement Plan.
The Agency shall prepare a long-term renewable resources
procurement plan for the procurement of renewable energy
credits under Sections 1-56 and 1-75 of the Illinois Power
Agency Act for delivery beginning in the 2017 delivery
year.
(i) The initial long-term renewable resources
procurement plan and all subsequent revisions shall be
subject to review and approval by the Commission. For
the purposes of this Section, "delivery year" has the
same meaning as in Section 1-10 of the Illinois Power
Agency Act. For purposes of this Section, "Agency"
shall mean the Illinois Power Agency.
(ii) The long-term renewable resources planning
process shall be conducted as follows:
(A) Electric utilities shall provide a range
of load forecasts to the Illinois Power Agency
within 45 days of the Agency's request for
forecasts, which request shall specify the length
and conditions for the forecasts including, but
not limited to, the quantity of distributed
generation expected to be interconnected for each
year.

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(B) The Agency shall publish for comment the
initial long-term renewable resources procurement
plan no later than 120 days after the effective
date of this amendatory Act of the 99th General
Assembly and shall review, and may revise, the
plan at least every 2 years thereafter. To the
extent practicable, the Agency shall review and
propose any revisions to the long-term renewable
energy resources procurement plan in conjunction
with the Agency's other planning and approval
processes conducted under this Section. The
initial long-term renewable resources procurement
plan shall:
(aa) Identify the procurement programs and
competitive procurement events consistent with
the applicable requirements of the Illinois
Power Agency Act and shall be designed to
achieve the goals set forth in subsection (c)
of Section 1-75 of that Act.
(bb) Include a schedule for procurements
for renewable energy credits from
utility-scale wind projects, utility-scale
solar projects, and brownfield site
photovoltaic projects consistent with
subparagraph (G) of paragraph (1) of
subsection (c) of Section 1-75 of the Illinois

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Power Agency Act.
(cc) Identify the process whereby the
Agency will submit to the Commission for
review and approval the proposed contracts to
implement the programs required by such plan.
Copies of the initial long-term renewable
resources procurement plan and all subsequent
revisions shall be posted and made publicly
available on the Agency's and Commission's
websites, and copies shall also be provided to
each affected electric utility. An affected
utility and other interested parties shall have 45
days following the date of posting to provide
comment to the Agency on the initial long-term
renewable resources procurement plan and all
subsequent revisions. All comments submitted to
the Agency shall be specific, supported by data or
other detailed analyses, and, if objecting to all
or a portion of the procurement plan, accompanied
by specific alternative wording or proposals. All
comments shall be posted on the Agency's and
Commission's websites. During this 45-day comment
period, the Agency shall hold at least one public
hearing within each utility's service area that is
subject to the requirements of this paragraph (5)
for the purpose of receiving public comment.

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Within 21 days following the end of the 45-day
review period, the Agency may revise the long-term
renewable resources procurement plan based on the
comments received and shall file the plan with the
Commission for review and approval.
(C) Within 14 days after the filing of the
initial long-term renewable resources procurement
plan or any subsequent revisions, any person
objecting to the plan may file an objection with
the Commission. Within 21 days after the filing of
the plan, the Commission shall determine whether a
hearing is necessary. The Commission shall enter
its order confirming or modifying the initial
long-term renewable resources procurement plan or
any subsequent revisions within 120 days after the
filing of the plan by the Illinois Power Agency.
(D) The Commission shall approve the initial
long-term renewable resources procurement plan and
any subsequent revisions, including expressly the
forecast used in the plan and taking into account
that funding will be limited to the amount of
revenues actually collected by the utilities, if
the Commission determines that the plan will
reasonably and prudently accomplish the
requirements of Section 1-56 and subsection (c) of
Section 1-75 of the Illinois Power Agency Act. The

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Commission shall also approve the process for the
submission, review, and approval of the proposed
contracts to procure renewable energy credits or
implement the programs authorized by the
Commission pursuant to a long-term renewable
resources procurement plan approved under this
Section.
In approving any long-term renewable resources
procurement plan after the effective date of this
amendatory Act of the 102nd General Assembly, the
Commission shall approve or modify the Agency's
proposal for minimum equity standards pursuant to
subsection (c-10) of Section 1-75 of the Illinois
Power Agency Act. The Commission shall consider
any analysis performed by the Agency in developing
its proposal, including past performance,
availability of equity eligible contractors, and
availability of equity eligible persons at the
time the long-term renewable resources procurement
plan is approved.
(iii) The Agency or third parties contracted by
the Agency shall implement all programs authorized by
the Commission in an approved long-term renewable
resources procurement plan without further review and
approval by the Commission. Third parties shall not
begin implementing any programs or receive any payment

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under this Section until the Commission has approved
the contract or contracts under the process authorized
by the Commission in item (D) of subparagraph (ii) of
paragraph (5) of this subsection (b) and the third
party and the Agency or utility, as applicable, have
executed the contract. For those renewable energy
credits subject to procurement through a competitive
bid process under the plan or under the initial
forward procurements for wind and solar resources
described in subparagraph (G) of paragraph (1) of
subsection (c) of Section 1-75 of the Illinois Power
Agency Act, the Agency shall follow the procurement
process specified in the provisions relating to
electricity procurement in subsections (e) through (i)
of this Section.
(iv) An electric utility shall recover its costs
associated with the procurement of renewable energy
credits under this Section and pursuant to subsection
(c-5) of Section 1-75 of the Illinois Power Agency Act
through an automatic adjustment clause tariff under
subsection (k) or a tariff pursuant to subsection
(i-5), as applicable, of Section 16-108 of this Act. A
utility shall not be required to advance any payment
or pay any amounts under this Section that exceed the
actual amount of revenues collected by the utility
under paragraph (6) of subsection (c) of Section 1-75

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of the Illinois Power Agency Act, subsection (c-5) of
Section 1-75 of the Illinois Power Agency Act, and
subsection (k) or subsection (i-5), as applicable, of
Section 16-108 of this Act, and contracts executed
under this Section shall expressly incorporate this
limitation.
(v) For the public interest, safety, and welfare,
the Agency and the Commission may adopt rules to carry
out the provisions of this Section on an emergency
basis immediately following the effective date of this
amendatory Act of the 99th General Assembly.
(vi) On or before July 1 of each year, the
Commission shall hold an informal hearing for the
purpose of receiving comments on the prior year's
procurement process and any recommendations for
change.
(6) Long-Term Energy Storage Resources Procurement
Plan. The Agency shall prepare an energy storage resources
procurement plan for the procurement of energy storage
credits in compliance with this Section and Section 1-93
of the Illinois Power Agency Act.
(i) The initial energy storage resources
procurement plan and all subsequent revisions shall be
subject to review and approval by the Commission. For
purposes of this Section, "delivery year" has the same
meaning as in Section 1-10 of the Illinois Power

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Agency Act. For purposes of this Section, "Agency"
shall mean the Illinois Power Agency.
(ii) The energy storage resources planning process
shall be conducted as follows:
(A) the Agency shall publish for comment the
initial energy storage resources procurement plan
no later than 120 days after the effective date of
this amendatory Act of the 103rd General Assembly
and shall review, and may revise, the plan at
least every 2 years thereafter. To the extent
practicable, the Agency shall review and propose
any revisions to the energy storage resources
procurement plan in conjunction with the Agency's
other planning and approval processes conducted
under this Section. The initial energy storage
resources procurement plan shall:
(aa) include a schedule for procurements
for energy storage credits from qualified
energy storage systems consistent with Section
1-93 of the Illinois Power Agency Act; and
(bb) identify the process whereby the
Agency will submit to the Commission for
review and approval the proposed contracts to
implement the programs required by such plan.
Copies of the initial energy storage resources
procurement plan and all subsequent revisions

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shall be posted and made publicly available on
the Agency's and Commission's websites, and
copies shall also be provided to each affected
electric utility. An affected utility and
other interested parties shall have 45 days
following the date of posting to provide
comment to the Agency on the initial energy
storage resources procurement plan and all
subsequent revisions. All comments shall be
posed on the Agency's and Commission's
websites; and
(B) the Commission shall approve the initial
energy storage resources procurement plan and any
subsequent revisions if the Commission determines
that the plan will reasonably and prudently
accomplish the requirements of Section 1-93 of the
Illinois Power Agency Act. The Commission shall
also approve the process for the submission,
review, and approval of the proposed contracts to
procure energy storage credits or implement the
programs authorized by the Commission pursuant to
a long-term energy storage resources procurement
plan approved under this Section.
In approving any long-term energy storage
procurement plan after the effective date of this
amendatory Act of the 103rd General Assembly, the

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Commission shall approve or modify the Agency's
proposal for minimum equity standards pursuant to
subsection (c-10) of Section 1-75 of the Illinois
Power Agency Act. The Commission shall consider
any analysis performed by the Agency in developing
its proposal, including past performance,
availability of equity eligible contractors, and
availability of equity eligible persons at the
time the long-term renewable resources procurement
plan is approved.
(iii) The Agency or third parties contracted by
the Agency shall implement all programs authorized by
the Commission in an approved long-term energy storage
procurement plan without further review and approval
by the Commission. Third parties shall not begin
implementing any programs or receive any payment under
this Section until the Commission has approved the
long-term storage contract.
(iv) An electric utility shall recover its costs
associated with the procurement of energy storage
credits under this Section and pursuant to Section
1-93 of the Illinois Power Agency Act through an
automatic adjustment clause tariff under subsection
(k) or a tariff pursuant to subsection (i-5), as
applicable, of Section 16-108.
(b-5) An electric utility that as of January 1, 2019

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served more than 300,000 retail customers in this State shall
purchase renewable energy credits from new renewable energy
facilities constructed at or adjacent to the sites of
coal-fueled electric generating facilities in this State in
accordance with subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act. Except as expressly provided in
this Section, the plans and procedures for such procurements
shall not be included in the procurement plans provided for in
this Section, but rather shall be conducted and implemented
solely in accordance with subsection (c-5) of Section 1-75 of
the Illinois Power Agency Act.
(c) The provisions of this subsection (c) shall not apply
to procurements conducted pursuant to subsection (c-5) of
Section 1-75 of the Illinois Power Agency Act. However, the
Agency may retain a procurement administrator to assist the
Agency in planning and carrying out the procurement events and
implementing the other requirements specified in such
subsection (c-5) of Section 1-75 of the Illinois Power Agency
Act, with the costs incurred by the Agency for the procurement
administrator to be recovered through fees charged to
applicants for selection to sell and deliver renewable energy
credits to electric utilities pursuant to subsection (c-5) of
Section 1-75 of the Illinois Power Agency Act. The procurement
process set forth in Section 1-75 of the Illinois Power Agency
Act and subsection (e) of this Section shall be administered
by a procurement administrator and monitored by a procurement

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monitor.
(1) The procurement administrator shall:
(i) design the final procurement process in
accordance with Section 1-75 of the Illinois Power
Agency Act and subsection (e) of this Section
following Commission approval of the procurement plan;
(ii) develop benchmarks in accordance with
subsection (e)(3) to be used to evaluate bids; these
benchmarks shall be submitted to the Commission for
review and approval on a confidential basis prior to
the procurement event;
(iii) serve as the interface between the electric
utility and suppliers;
(iv) manage the bidder pre-qualification and
registration process;
(v) obtain the electric utilities' agreement to
the final form of all supply contracts and credit
collateral agreements;
(vi) administer the request for proposals process;
(vii) have the discretion to negotiate to
determine whether bidders are willing to lower the
price of bids that meet the benchmarks approved by the
Commission; any post-bid negotiations with bidders
shall be limited to price only and shall be completed
within 24 hours after opening the sealed bids and
shall be conducted in a fair and unbiased manner; in

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conducting the negotiations, there shall be no
disclosure of any information derived from proposals
submitted by competing bidders; if information is
disclosed to any bidder, it shall be provided to all
competing bidders;
(viii) maintain confidentiality of supplier and
bidding information in a manner consistent with all
applicable laws, rules, regulations, and tariffs;
(ix) submit a confidential report to the
Commission recommending acceptance or rejection of
bids;
(x) notify the utility of contract counterparties
and contract specifics; and
(xi) administer related contingency procurement
events.
(2) The procurement monitor, who shall be retained by
the Commission, shall:
(i) monitor interactions among the procurement
administrator, suppliers, and utility;
(ii) monitor and report to the Commission on the
progress of the procurement process;
(iii) provide an independent confidential report
to the Commission regarding the results of the
procurement event;
(iv) assess compliance with the procurement plans
approved by the Commission for each utility that on

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December 31, 2005 provided electric service to at
least 100,000 customers in Illinois and for each small
multi-jurisdictional utility that on December 31, 2005
served less than 100,000 customers in Illinois;
(v) preserve the confidentiality of supplier and
bidding information in a manner consistent with all
applicable laws, rules, regulations, and tariffs;
(vi) provide expert advice to the Commission and
consult with the procurement administrator regarding
issues related to procurement process design, rules,
protocols, and policy-related matters; and
(vii) consult with the procurement administrator
regarding the development and use of benchmark
criteria, standard form contracts, credit policies,
and bid documents.
(d) Except as provided in subsection (j), the planning
process shall be conducted as follows:
(1) Beginning in 2008, each Illinois utility procuring
power pursuant to this Section shall annually provide a
range of load forecasts to the Illinois Power Agency by
July 15 of each year, or such other date as may be required
by the Commission or Agency. The load forecasts shall
cover the 5-year procurement planning period for the next
procurement plan and shall include hourly data
representing a high-load, low-load, and expected-load
scenario for the load of those retail customers included

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in the plan's electric supply service requirements. The
utility shall provide supporting data and assumptions for
each of the scenarios.
(2) Beginning in 2008, the Illinois Power Agency shall
prepare a procurement plan by August 15th of each year, or
such other date as may be required by the Commission. The
procurement plan shall identify the portfolio of
demand-response and power and energy products to be
procured. Cost-effective demand-response measures shall be
procured as set forth in item (iii) of subsection (b) of
this Section. Copies of the procurement plan shall be
posted and made publicly available on the Agency's and
Commission's websites, and copies shall also be provided
to each affected electric utility. An affected utility
shall have 30 days following the date of posting to
provide comment to the Agency on the procurement plan.
Other interested entities also may comment on the
procurement plan. All comments submitted to the Agency
shall be specific, supported by data or other detailed
analyses, and, if objecting to all or a portion of the
procurement plan, accompanied by specific alternative
wording or proposals. All comments shall be posted on the
Agency's and Commission's websites. During this 30-day
comment period, the Agency shall hold at least one public
hearing within each utility's service area for the purpose
of receiving public comment on the procurement plan.

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Within 14 days following the end of the 30-day review
period, the Agency shall revise the procurement plan as
necessary based on the comments received and file the
procurement plan with the Commission and post the
procurement plan on the websites.
(3) Within 5 days after the filing of the procurement
plan, any person objecting to the procurement plan shall
file an objection with the Commission. Within 10 days
after the filing, the Commission shall determine whether a
hearing is necessary. The Commission shall enter its order
confirming or modifying the procurement plan within 90
days after the filing of the procurement plan by the
Illinois Power Agency.
(4) The Commission shall approve the procurement plan,
including expressly the forecast used in the procurement
plan, if the Commission determines that it will ensure
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability.
(4.5) The Commission shall review the Agency's
recommendations for the selection of applicants to enter
into long-term contracts for the sale and delivery of
renewable energy credits from new renewable energy
facilities to be constructed at or adjacent to the sites
of coal-fueled electric generating facilities in this

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State in accordance with the provisions of subsection
(c-5) of Section 1-75 of the Illinois Power Agency Act,
and shall approve the Agency's recommendations if the
Commission determines that the applicants recommended by
the Agency for selection, the proposed new renewable
energy facilities to be constructed, the amounts of
renewable energy credits to be delivered pursuant to the
contracts, and the other terms of the contracts, are
consistent with the requirements of subsection (c-5) of
Section 1-75 of the Illinois Power Agency Act.
(e) The procurement process shall include each of the
following components:
(1) Solicitation, pre-qualification, and registration
of bidders. The procurement administrator shall
disseminate information to potential bidders to promote a
procurement event, notify potential bidders that the
procurement administrator may enter into a post-bid price
negotiation with bidders that meet the applicable
benchmarks, provide supply requirements, and otherwise
explain the competitive procurement process. In addition
to such other publication as the procurement administrator
determines is appropriate, this information shall be
posted on the Illinois Power Agency's and the Commission's
websites. The procurement administrator shall also
administer the prequalification process, including
evaluation of credit worthiness, compliance with

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procurement rules, and agreement to the standard form
contract developed pursuant to paragraph (2) of this
subsection (e). The procurement administrator shall then
identify and register bidders to participate in the
procurement event.
(2) Standard contract forms and credit terms and
instruments. The procurement administrator, in
consultation with the utilities, the Commission, and other
interested parties and subject to Commission oversight,
shall develop and provide standard contract forms for the
supplier contracts that meet generally accepted industry
practices. Standard credit terms and instruments that meet
generally accepted industry practices shall be similarly
developed. The procurement administrator shall make
available to the Commission all written comments it
receives on the contract forms, credit terms, or
instruments. If the procurement administrator cannot reach
agreement with the applicable electric utility as to the
contract terms and conditions, the procurement
administrator must notify the Commission of any disputed
terms and the Commission shall resolve the dispute. The
terms of the contracts shall not be subject to negotiation
by winning bidders, and the bidders must agree to the
terms of the contract in advance so that winning bids are
selected solely on the basis of price.
(3) Establishment of a market-based price benchmark.

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As part of the development of the procurement process, the
procurement administrator, in consultation with the
Commission staff, Agency staff, and the procurement
monitor, shall establish benchmarks for evaluating the
final prices in the contracts for each of the products
that will be procured through the procurement process. The
benchmarks shall be based on price data for similar
products for the same delivery period and same delivery
hub, or other delivery hubs after adjusting for that
difference. The price benchmarks may also be adjusted to
take into account differences between the information
reflected in the underlying data sources and the specific
products and procurement process being used to procure
power for the Illinois utilities. The benchmarks shall be
confidential but shall be provided to, and will be subject
to Commission review and approval, prior to a procurement
event.
(4) Request for proposals competitive procurement
process. The procurement administrator shall design and
issue a request for proposals to supply electricity in
accordance with each utility's procurement plan, as
approved by the Commission. The request for proposals
shall set forth a procedure for sealed, binding commitment
bidding with pay-as-bid settlement, and provision for
selection of bids on the basis of price.
(5) A plan for implementing contingencies in the event

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of supplier default or failure of the procurement process
to fully meet the expected load requirement due to
insufficient supplier participation, Commission rejection
of results, or any other cause.
(i) Event of supplier default: In the event of
supplier default, the utility shall review the
contract of the defaulting supplier to determine if
the amount of supply is 200 megawatts or greater, and
if there are more than 60 days remaining of the
contract term. If both of these conditions are met,
and the default results in termination of the
contract, the utility shall immediately notify the
Illinois Power Agency that a request for proposals
must be issued to procure replacement power, and the
procurement administrator shall run an additional
procurement event. If the contracted supply of the
defaulting supplier is less than 200 megawatts or
there are less than 60 days remaining of the contract
term, the utility shall procure power and energy from
the applicable regional transmission organization
market, including ancillary services, capacity, and
day-ahead or real time energy, or both, for the
duration of the contract term to replace the
contracted supply; provided, however, that if a needed
product is not available through the regional
transmission organization market it shall be purchased

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from the wholesale market.
(ii) Failure of the procurement process to fully
meet the expected load requirement: If the procurement
process fails to fully meet the expected load
requirement due to insufficient supplier participation
or due to a Commission rejection of the procurement
results, the procurement administrator, the
procurement monitor, and the Commission staff shall
meet within 10 days to analyze potential causes of low
supplier interest or causes for the Commission
decision. If changes are identified that would likely
result in increased supplier participation, or that
would address concerns causing the Commission to
reject the results of the prior procurement event, the
procurement administrator may implement those changes
and rerun the request for proposals process according
to a schedule determined by those parties and
consistent with Section 1-75 of the Illinois Power
Agency Act and this subsection. In any event, a new
request for proposals process shall be implemented by
the procurement administrator within 90 days after the
determination that the procurement process has failed
to fully meet the expected load requirement.
(iii) In all cases where there is insufficient
supply provided under contracts awarded through the
procurement process to fully meet the electric

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utility's load requirement, the utility shall meet the
load requirement by procuring power and energy from
the applicable regional transmission organization
market, including ancillary services, capacity, and
day-ahead or real time energy, or both; provided,
however, that if a needed product is not available
through the regional transmission organization market
it shall be purchased from the wholesale market.
(6) The procurement processes described in this
subsection and in subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act are exempt from the requirements
of the Illinois Procurement Code, pursuant to Section
20-10 of that Code.
(f) Within 2 business days after opening the sealed bids,
the procurement administrator shall submit a confidential
report to the Commission. The report shall contain the results
of the bidding for each of the products along with the
procurement administrator's recommendation for the acceptance
and rejection of bids based on the price benchmark criteria
and other factors observed in the process. The procurement
monitor also shall submit a confidential report to the
Commission within 2 business days after opening the sealed
bids. The report shall contain the procurement monitor's
assessment of bidder behavior in the process as well as an
assessment of the procurement administrator's compliance with
the procurement process and rules. The Commission shall review

SB3636 - 93 - LRB103 39306 CES 69460 b
the confidential reports submitted by the procurement
administrator and procurement monitor, and shall accept or
reject the recommendations of the procurement administrator
within 2 business days after receipt of the reports.
(g) Within 3 business days after the Commission decision
approving the results of a procurement event, the utility
shall enter into binding contractual arrangements with the
winning suppliers using the standard form contracts; except
that the utility shall not be required either directly or
indirectly to execute the contracts if a tariff that is
consistent with subsection (l) of this Section has not been
approved and placed into effect for that utility.
(h) For the procurement of standard wholesale products,
the names of the successful bidders and the load weighted
average of the winning bid prices for each contract type and
for each contract term shall be made available to the public at
the time of Commission approval of a procurement event. For
procurements conducted to meet the requirements of subsection
(b) of Section 1-56 or subsection (c) of Section 1-75 of the
Illinois Power Agency Act governed by the provisions of this
Section, the address and nameplate capacity of the new
renewable energy generating facility proposed by a winning
bidder shall also be made available to the public at the time
of Commission approval of a procurement event, along with the
business address and contact information for any winning
bidder. An estimate or approximation of the nameplate capacity

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of the new renewable energy generating facility may be
disclosed if necessary to protect the confidentiality of
individual bid prices.
The Commission, the procurement monitor, the procurement
administrator, the Illinois Power Agency, and all participants
in the procurement process shall maintain the confidentiality
of all other supplier and bidding information in a manner
consistent with all applicable laws, rules, regulations, and
tariffs. Confidential information, including the confidential
reports submitted by the procurement administrator and
procurement monitor pursuant to subsection (f) of this
Section, shall not be made publicly available and shall not be
discoverable by any party in any proceeding, absent a
compelling demonstration of need, nor shall those reports be
admissible in any proceeding other than one for law
enforcement purposes.
(i) Within 2 business days after a Commission decision
approving the results of a procurement event or such other
date as may be required by the Commission from time to time,
the utility shall file for informational purposes with the
Commission its actual or estimated retail supply charges, as
applicable, by customer supply group reflecting the costs
associated with the procurement and computed in accordance
with the tariffs filed pursuant to subsection (l) of this
Section and approved by the Commission.
(j) Within 60 days following August 28, 2007 (the

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effective date of Public Act 95-481), each electric utility
that on December 31, 2005 provided electric service to at
least 100,000 customers in Illinois shall prepare and file
with the Commission an initial procurement plan, which shall
conform in all material respects to the requirements of the
procurement plan set forth in subsection (b); provided,
however, that the Illinois Power Agency Act shall not apply to
the initial procurement plan prepared pursuant to this
subsection. The initial procurement plan shall identify the
portfolio of power and energy products to be procured and
delivered for the period June 2008 through May 2009, and shall
identify the proposed procurement administrator, who shall
have the same experience and expertise as is required of a
procurement administrator hired pursuant to Section 1-75 of
the Illinois Power Agency Act. Copies of the procurement plan
shall be posted and made publicly available on the
Commission's website. The initial procurement plan may include
contracts for renewable resources that extend beyond May 2009.
(i) Within 14 days following filing of the initial
procurement plan, any person may file a detailed objection
with the Commission contesting the procurement plan
submitted by the electric utility. All objections to the
electric utility's plan shall be specific, supported by
data or other detailed analyses. The electric utility may
file a response to any objections to its procurement plan
within 7 days after the date objections are due to be

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filed. Within 7 days after the date the utility's response
is due, the Commission shall determine whether a hearing
is necessary. If it determines that a hearing is
necessary, it shall require the hearing to be completed
and issue an order on the procurement plan within 60 days
after the filing of the procurement plan by the electric
utility.
(ii) The order shall approve or modify the procurement
plan, approve an independent procurement administrator,
and approve or modify the electric utility's tariffs that
are proposed with the initial procurement plan. The
Commission shall approve the procurement plan if the
Commission determines that it will ensure adequate,
reliable, affordable, efficient, and environmentally
sustainable electric service at the lowest total cost over
time, taking into account any benefits of price stability.
(k) (Blank).
(k-5) (Blank).
(l) An electric utility shall recover its costs incurred
under this Section and subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act, including, but not limited to, the
costs of procuring power and energy demand-response resources
under this Section and its costs for purchasing renewable
energy credits pursuant to subsection (c-5) of Section 1-75 of
the Illinois Power Agency Act. The utility shall file with the
initial procurement plan its proposed tariffs through which

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its costs of procuring power that are incurred pursuant to a
Commission-approved procurement plan and those other costs
identified in this subsection (l), will be recovered. The
tariffs shall include a formula rate or charge designed to
pass through both the costs incurred by the utility in
procuring a supply of electric power and energy for the
applicable customer classes with no mark-up or return on the
price paid by the utility for that supply, plus any just and
reasonable costs that the utility incurs in arranging and
providing for the supply of electric power and energy. The
formula rate or charge shall also contain provisions that
ensure that its application does not result in over or under
recovery due to changes in customer usage and demand patterns,
and that provide for the correction, on at least an annual
basis, of any accounting errors that may occur. A utility
shall recover through the tariff all reasonable costs incurred
to implement or comply with any procurement plan that is
developed and put into effect pursuant to Section 1-75 of the
Illinois Power Agency Act and this Section, and for the
procurement of renewable energy credits pursuant to subsection
(c-5) of Section 1-75 of the Illinois Power Agency Act,
including any fees assessed by the Illinois Power Agency,
costs associated with load balancing, and contingency plan
costs. The electric utility shall also recover its full costs
of procuring electric supply for which it contracted before
the effective date of this Section in conjunction with the

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provision of full requirements service under fixed-price
bundled service tariffs subsequent to December 31, 2006. All
such costs shall be deemed to have been prudently incurred.
The pass-through tariffs that are filed and approved pursuant
to this Section shall not be subject to review under, or in any
way limited by, Section 16-111(i) of this Act. All of the costs
incurred by the electric utility associated with the purchase
of zero emission credits in accordance with subsection (d-5)
of Section 1-75 of the Illinois Power Agency Act, all costs
incurred by the electric utility associated with the purchase
of carbon mitigation credits in accordance with subsection
(d-10) of Section 1-75 of the Illinois Power Agency Act, and,
beginning June 1, 2017, all of the costs incurred by the
electric utility associated with the purchase of renewable
energy resources in accordance with Sections 1-56 and 1-75 of
the Illinois Power Agency Act, and all of the costs incurred by
the electric utility in purchasing renewable energy credits in
accordance with subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act, and all costs incurred by the
electric utility in purchasing energy storage credits in
accordance with Section 1-93 of the Illinois Power Agency Act
shall be recovered through the electric utility's tariffed
charges applicable to all of its retail customers, as
specified in subsection (k) or subsection (i-5), as
applicable, of Section 16-108 of this Act, and shall not be
recovered through the electric utility's tariffed charges for

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electric power and energy supply to its eligible retail
customers.
(m) The Commission has the authority to adopt rules to
carry out the provisions of this Section. For the public
interest, safety, and welfare, the Commission also has
authority to adopt rules to carry out the provisions of this
Section on an emergency basis immediately following August 28,
2007 (the effective date of Public Act 95-481).
(n) Notwithstanding any other provision of this Act, any
affiliated electric utilities that submit a single procurement
plan covering their combined needs may procure for those
combined needs in conjunction with that plan, and may enter
jointly into power supply contracts, purchases, and other
procurement arrangements, and allocate capacity and energy and
cost responsibility therefor among themselves in proportion to
their requirements.
(o) On or before June 1 of each year, the Commission shall
hold an informal hearing for the purpose of receiving comments
on the prior year's procurement process and any
recommendations for change.
(p) An electric utility subject to this Section may
propose to invest, lease, own, or operate an electric
generation facility as part of its procurement plan, provided
the utility demonstrates that such facility is the least-cost
option to provide electric service to those retail customers
included in the plan's electric supply service requirements.

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If the facility is shown to be the least-cost option and is
included in a procurement plan prepared in accordance with
Section 1-75 of the Illinois Power Agency Act and this
Section, then the electric utility shall make a filing
pursuant to Section 8-406 of this Act, and may request of the
Commission any statutory relief required thereunder. If the
Commission grants all of the necessary approvals for the
proposed facility, such supply shall thereafter be considered
as a pre-existing contract under subsection (b) of this
Section. The Commission shall in any order approving a
proposal under this subsection specify how the utility will
recover the prudently incurred costs of investing in, leasing,
owning, or operating such generation facility through just and
reasonable rates charged to those retail customers included in
the plan's electric supply service requirements. Cost recovery
for facilities included in the utility's procurement plan
pursuant to this subsection shall not be subject to review
under or in any way limited by the provisions of Section
16-111(i) of this Act. Nothing in this Section is intended to
prohibit a utility from filing for a fuel adjustment clause as
is otherwise permitted under Section 9-220 of this Act.
(q) If the Illinois Power Agency filed with the
Commission, under Section 16-111.5 of this Act, its proposed
procurement plan for the period commencing June 1, 2017, and
the Commission has not yet entered its final order approving
the plan on or before the effective date of this amendatory Act

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of the 99th General Assembly, then the Illinois Power Agency
shall file a notice of withdrawal with the Commission, after
the effective date of this amendatory Act of the 99th General
Assembly, to withdraw the proposed procurement of renewable
energy resources to be approved under the plan, other than the
procurement of renewable energy credits from distributed
renewable energy generation devices using funds previously
collected from electric utilities' retail customers that take
service pursuant to electric utilities' hourly pricing tariff
or tariffs and, for an electric utility that serves less than
100,000 retail customers in the State, other than the
procurement of renewable energy credits from distributed
renewable energy generation devices. Upon receipt of the
notice, the Commission shall enter an order that approves the
withdrawal of the proposed procurement of renewable energy
resources from the plan. The initially proposed procurement of
renewable energy resources shall not be approved or be the
subject of any further hearing, investigation, proceeding, or
order of any kind.
This amendatory Act of the 99th General Assembly preempts
and supersedes any order entered by the Commission that
approved the Illinois Power Agency's procurement plan for the
period commencing June 1, 2017, to the extent it is
inconsistent with the provisions of this amendatory Act of the
99th General Assembly. To the extent any previously entered
order approved the procurement of renewable energy resources,

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the portion of that order approving the procurement shall be
void, other than the procurement of renewable energy credits
from distributed renewable energy generation devices using
funds previously collected from electric utilities' retail
customers that take service under electric utilities' hourly
pricing tariff or tariffs and, for an electric utility that
serves less than 100,000 retail customers in the State, other
than the procurement of renewable energy credits for
distributed renewable energy generation devices.
(Source: P.A. 102-662, eff. 9-15-21.)