Illinois Administrative Code › Title 83 - PUBLIC UTILITIES › Part 455 - RENEWABLE PORTFOLIO STANDARD AND CLEAN COAL STANDARD FOR ALTERNATIVE RETAIL ELECTRIC SUPPLIERS AND UTILITIES OPERATING OUTSIDE THEIR SERVICE AREAS › Subpart B - RENEWABLE PORTFOLIO STANDARD REQUIREMENTS › Section 455.110 - Obligation to Procure Renewable Energy Resources

Current through Register Vol. 48, No. 28, July 12, 2024
a) Each RES shall procure cost-effective renewable
				energy resources in accordance with the requirements of Section 16-115D of the
				Act.
b) For an RES, the obligation to
				procure renewable energy resources is expressed in units of electricity
				(megawatt-hours) and is measured as a percentage of the actual amount of metered
				electricity supplied to the RES' Illinois retail customers during each compliance
				year, pursuant to contracts executed or extended after March 15, 2009 (see
				220
				ILCS 5/16-115D(a)(2), (a)(6), and
				(g)).
c) For compliance years ending on
				or before May 31, 2017, the minimum quantity of renewable energy resources to be
				procured for each compliance year shall be calculated based on the annual
				percentages set forth in Section 1-75(c)(1) of the IPA Act (see
				220
				ILCS 5/16-115D(a)(3) ). For compliance
				years ending on or before May 31, 2017, renewable energy resources also includes
				energy and its associated renewable energy credit or renewable energy credits from
				other alternative sources of environmentally preferable energy. For the compliance
				year ending on May 31, 2018, the minimum quantity of renewable energy resources to
				be procured shall be equal to 13% of the uncovered amount of energy supplied during
				the compliance year. For the compliance year ending on May 31, 2019, the minimum
				quantity of renewable energy resources to be procured shall be equal to
				14.5 % of the uncovered
				amount of energy supplied during the compliance year. For compliance years ending on
				or after May 31, 2020, RES do not have an obligation pursuant to Section 16-115D of
				the Act to procure renewable energy resources. For an ARES that meets the
				requirements of Section 1-75(c)(1)(H) of the IPA Act, the ARES obligation to
				purchase renewable energy resources shall be reduced in accordance with Section
				455.160.
d) For compliance years ending
				on or before May 31, 2017, at least 60% and at least 6% of the RES obligation to
				procure renewable energy resources shall come from wind and solar photovoltaic
				generation, respectively. For compliance years ending on or before May 31, 2017,
				renewable energy resources also includes energy and its associated renewable energy
				credit or renewable energy credits from other alternative sources of environmentally
				preferable energy. For compliance years ending on May 31, 2018 and May 31, 2019, at
				least 32% of the RES obligation to procure renewable energy resources shall come
				from wind or photovoltaic generation.
e)
				For compliance years ending on or before May 31, 2017, at least 50% of the
				obligation to procure renewable energy resources must be satisfied by making
				alternative compliance payments, and the balance of the obligation to procure
				renewable energy resources may be satisfied by generating electricity using
				renewable energy resources, purchasing electricity generated using renewable energy
				resources, purchasing renewable energy credits from renewable energy resources, or
				making alternative compliance payments (see Section 16-115D(b)(1) and (3) of the
				Act). For compliance years ending on or before May 31, 2017, renewable energy
				resources also includes energy and its associated renewable energy credit or
				renewable energy credits from other alternative sources of environmentally
				preferable energy. For compliance years ending on May 31, 2018 and May 31, 2019, the
				obligation to procure renewable energy resources may be satisfied by generating
				electricity using renewable energy resources, purchasing electricity generated using
				renewable energy resources, purchasing renewable energy credits from renewable
				energy resources, making alternative compliance payments, or a combination thereof
				(see Section 16-115D(b)(2) and (3) of the Act).
f) Alternative compliance payment rate. The
				"maximum alternative compliance payment rate" for each compliance year shall be
				equal to the maximum allowable annual estimated average net increase due to the
				costs of the utility's purchase of renewable energy resources included in the
				amounts paid by eligible retail customers in connection with electric service, as
				described in Section 1-75(c)(2) of the IPA Act for the compliance period, as
				established in the approved procurement plan. The "actual alternative compliance
				payment rate" will be equal to the lower of the maximum alternative compliance
				payment rate or the total amount of dollars the utility actually spent on renewable
				energy resources for the compliance period divided by the forecasted load of retail
				customers for which the utility is procuring renewable energy resources in a given
				compliance year, at the customers' meters, as previously established in the
				Commission-approved procurement plan for that compliance year. (See Section
				16-115D(d)(1) of the Act.)
g) To the
				extent to which a RES seeks to meet its obligation to procure renewable energy
				resources by generating electricity using renewable energy resources, purchasing
				electricity generated using renewable energy resources, or purchasing renewable
				energy credits, those resources or the resources generating the renewable energy
				credits must be located within Illinois, Wisconsin, Indiana, Iowa, Kentucky,
				Michigan or Missouri, or within portions of the PJM and MISO footprint in the United
				States (see
				220
				ILCS 5/16-115D(a)(4) ). Renewable energy
				credits used toward compliance for a compliance year must be generated during that
				compliance year or during the two previous compliance years. (See
				220
				ILCS 5/16-115D(c)(1).) Under no
				circumstances shall renewable energy credits from other alternative sources of
				environmentally preferable energy be used toward compliance for a compliance year
				ending after May 31, 2017.
h) For a
				compliance year, an RES' obligation to procure renewable energy resources by
				generating electricity using renewable energy resources, purchasing electricity
				generated using renewable energy resources, or purchasing renewable energy credits
				from renewable energy resources is determined according to the following formula:
RRu = [Applicable
				  Supplyu -
				  (Paymentu/ACPRateu)] x
				  Requirement
where:
RRu is the RES' obligation to procure
				  renewable energy resources by generating electricity using renewable energy
				  resources, purchasing electricity generated using renewable energy resources, or
				  purchasing renewable energy credits from renewable energy resources (in
				  megawatt-hours) in utility service area u;
Applicable Supplyu is, for compliance years
				  ending on or before May 31, 2017, the amount of metered electricity supplied to the
				  RES' Illinois retail customers in utility service area u during the compliance year
				  (in megawatt-hours) and is, for compliance years ending on May 31, 2018 and May 31,
				  2019, the uncovered amount of energy supplied to the RES' Illinois retail customers
				  in utility service area u during the compliance year (in megawatt-hours).
Paymentu is the amount of the alternative
				  compliance payment (in $) made by the RES in utility service area u, including, for
				  compliance years ending on or before May 31, 2017, mandatory ACP payments made in
				  compliance with subsection (e);
ACPRateu is the actual alternative
				  compliance payment rate (in $/MWh) in utility service area u;
Requirement is the annual renewable requirement percentages
				  specified or referenced in subsection (c) (expressed in decimal
				  form).
i) Alternative compliance
				payments may be used to reduce the wind and/or photovoltaic requirements identified
				in subsection (d).