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SB2660 Engrossed |
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LRB096 17322 MJR 32673 b |
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| AN ACT concerning utilities.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Public Utilities Act is amended by changing |
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| Section 9-220 as follows: |
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| (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220) |
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| Sec. 9-220. Rate changes based on changes in fuel costs. |
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| (a) Notwithstanding the provisions of Section 9-201, the
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| Commission may authorize the increase or decrease of rates and |
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| charges
based upon changes in the cost of fuel used in the |
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| generation or production
of electric power, changes in the cost |
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| of purchased power, or changes in
the cost of purchased gas |
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| through the application of fuel adjustment
clauses or purchased |
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| gas adjustment clauses. The Commission may also
authorize the |
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| increase or decrease of rates and charges based upon |
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| expenditures
or revenues resulting from the purchase or sale of |
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| emission allowances created
under the federal Clean Air Act |
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| Amendments of 1990,
through such fuel adjustment clauses, as a |
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| cost of fuel. For the purposes of
this paragraph, cost of fuel |
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| used in the generation or production of electric
power shall |
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| include the amount of any fees paid by the utility for the
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| implementation and operation of a process for the |
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| desulfurization of the
flue gas when burning high sulfur coal |
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LRB096 17322 MJR 32673 b |
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| at any location within the State of
Illinois irrespective of |
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| the attainment status designation of such
location; but shall |
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| not include transportation costs
of coal
(i) except to the |
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| extent that for contracts entered into on
and after the |
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| effective date of this amendatory Act of 1997,
the cost of the |
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| coal, including transportation costs,
constitutes the lowest |
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| cost for adequate and reliable fuel
supply reasonably available |
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| to the public utility in
comparison to the cost, including |
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| transportation costs, of
other adequate and reliable sources of |
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| fuel supply reasonably
available to the public utility, or (ii)
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| except as otherwise provided in the next 3 sentences of this |
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| paragraph.
Such costs of fuel
shall, when requested by a |
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| utility or at the conclusion of the utility's
next general |
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| electric rate proceeding, whichever shall first occur, include
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| transportation costs of coal purchased under existing coal |
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| purchase
contracts. For purposes of this paragraph "existing |
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| coal purchase
contracts" means contracts for the purchase of |
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| coal in effect on the
effective date of this amendatory Act of |
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| 1991, as such contracts may
thereafter be amended, but only to |
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| the extent that any such amendment does
not increase the |
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| aggregate quantity of coal to be purchased under such
contract.
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| Nothing herein shall authorize an electric utility
to recover |
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| through its fuel adjustment clause any amounts of
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| transportation costs of coal that were included in the revenue
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| requirement used to set base rates in its most recent general
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| rate proceeding.
Cost shall be based upon uniformly applied |
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LRB096 17322 MJR 32673 b |
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| accounting
principles. Annually, the Commission shall initiate |
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| public hearings to
determine whether the clauses reflect actual |
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| costs of fuel, gas, power, or
coal transportation purchased to |
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| determine whether such purchases were
prudent, and to reconcile |
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| any amounts collected with the actual costs of
fuel, power, |
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| gas, or coal transportation prudently purchased. In each such
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| proceeding, the burden of proof shall be upon the utility to |
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| establish the
prudence of its cost of fuel, power, gas, or coal
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| transportation purchases
and costs.
The Commission shall
issue |
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| its final order in each such annual proceeding for an
electric |
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| utility by December 31 of the year immediately
following the |
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| year to which the proceeding pertains, provided,
that the |
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| Commission shall issue its final order with respect
to such |
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| annual proceeding for the years 1996 and earlier by December |
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| 31, 1998. |
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| (b) A public utility providing electric service, other than |
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| a public utility
described in subsections (e) or (f) of this |
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| Section, may at
any time during the mandatory transition period |
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| file with the
Commission proposed tariff sheets that eliminate |
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| the public
utility's fuel adjustment clause and adjust the |
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| public
utility's base rate tariffs by the amount necessary for |
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| the
base fuel component of the base rates to recover the public
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| utility's average fuel and power supply costs per kilowatt-hour |
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| for the 2
most recent years for which the Commission
has issued |
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| final orders in annual proceedings pursuant to
subsection (a), |
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| where the average fuel and power supply costs
per kilowatt-hour |
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LRB096 17322 MJR 32673 b |
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| shall be calculated as the sum of the public
utility's prudent |
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| and allowable fuel and power supply costs as
found by the |
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| Commission in the 2 proceedings divided by the
public utility's |
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| actual jurisdictional kilowatt-hour sales for
those 2 years. |
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| Notwithstanding any contrary or inconsistent
provisions in |
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| Section 9-201 of this Act, in subsection (a) of
this Section or |
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| in any rules or regulations promulgated by the
Commission |
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| pursuant to subsection (g) of this Section, the
Commission |
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| shall review and shall by order approve, or approve
as |
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| modified, the proposed tariff sheets within 60 days after
the |
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| date of the public utility's filing. The Commission may
modify |
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| the public utility's proposed tariff sheets only to the
extent |
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| the Commission finds necessary to achieve conformance
to the |
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| requirements of this subsection (b). During the 5
years |
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| following the date of the Commission's order, but in any
event |
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| no earlier than January 1, 2007, a public utility whose
fuel |
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| adjustment clause has been eliminated pursuant to this
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| subsection shall not file proposed tariff sheets seeking, or
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| otherwise petition the Commission for, reinstatement of a fuel
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| adjustment clause. |
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| (c) Notwithstanding any contrary or inconsistent
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| provisions in Section 9-201 of this Act, in subsection (a) of
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| this Section or in any rules or regulations promulgated by the
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| Commission pursuant to subsection (g) of this Section, a
public |
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| utility providing electric service, other than a public utility
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| described
in subsection (e) or (f) of this Section, may at any |
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LRB096 17322 MJR 32673 b |
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| time
during the mandatory transition period file with the
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| Commission proposed tariff sheets that establish the rate per
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| kilowatt-hour to be applied pursuant to the public utility's
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| fuel adjustment clause at the average value for such rate
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| during the preceding 24 months, provided that such average
rate |
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| results in a credit to customers' bills, without making
any |
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| revisions to the public utility's base rate tariffs. The
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| proposed tariff sheets shall establish the fuel adjustment
rate |
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| for a specific time period of at least 3 years but not
more |
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| than 5 years, provided that the terms and conditions for
any |
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| reinstatement earlier than 5 years shall be set forth in
the |
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| proposed tariff sheets and subject to modification or
approval |
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| by the Commission. The Commission shall review and
shall by |
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| order approve the proposed tariff sheets if it finds
that the |
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| requirements of this subsection are met. The
Commission shall |
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| not conduct the annual hearings specified in the
last 3 |
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| sentences of subsection (a) of this Section for the
utility for |
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| the period that the factor established pursuant to
this |
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| subsection is in effect. |
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| (d) A public utility providing electric service, or a |
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| public utility
providing gas service
may file with the |
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| Commission proposed tariff sheets that
eliminate the public |
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| utility's fuel or purchased gas
adjustment clause and adjust |
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| the public utility's base rate
tariffs to provide for recovery |
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| of power supply costs or gas
supply costs that would have been |
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| recovered through such
clause; provided, that the provisions of |
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LRB096 17322 MJR 32673 b |
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| this subsection (d) shall not be
available to a public utility |
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| described in subsections (e) or (f) of this
Section to |
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| eliminate its fuel adjustment clause. Notwithstanding any |
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| contrary
or inconsistent
provisions in Section 9-201 of this |
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| Act, in subsection (a) of
this Section, or in any rules or |
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| regulations promulgated by
the Commission pursuant to |
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| subsection (g) of this Section, the
Commission shall review and |
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| shall by order approve, or approve
as modified in the |
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| Commission's order, the proposed tariff
sheets within 240 days |
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| after the date of the public utility's
filing. The Commission's |
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| order shall approve rates and
charges that the Commission, |
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| based on information in the
public utility's filing or on the |
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| record if a hearing is held
by the Commission, finds will |
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| recover the reasonable, prudent
and necessary jurisdictional |
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| power supply costs or gas supply
costs incurred or to be |
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| incurred by the public utility during
a 12 month period found |
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| by the Commission to be appropriate
for these purposes, |
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| provided, that such period shall be either
(i) a 12 month |
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| historical period occurring during the 15
months ending on the |
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| date of the public utility's filing, or
(ii) a 12 month future |
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| period ending no later than 15 months
following the date of the |
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| public utility's filing. The public
utility shall include with |
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| its tariff filing information
showing both (1) its actual |
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| jurisdictional power supply costs
or gas supply costs for a 12 |
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| month historical period
conforming to (i) above and (2) its |
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| projected jurisdictional
power supply costs or gas supply costs |
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LRB096 17322 MJR 32673 b |
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| for a future 12 month
period conforming to (ii) above. If the |
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| Commission's order
requires modifications in the tariff sheets |
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| filed by the
public utility, the public utility shall have 7 |
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| days following
the date of the order to notify the Commission |
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| whether the
public utility will implement the modified tariffs |
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| or elect to
continue its fuel or purchased gas adjustment |
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| clause in force
as though no order had been entered. The |
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| Commission's order
shall provide for any reconciliation of |
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| power supply costs or
gas supply costs, as the case may be, and |
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| associated revenues
through the date that the public utility's |
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| fuel or purchased
gas adjustment clause is eliminated. During |
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| the 5 years
following the date of the Commission's order, a |
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| public utility
whose fuel or purchased gas adjustment clause |
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| has been
eliminated pursuant to this subsection shall not file |
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| proposed
tariff sheets seeking, or otherwise petition the |
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| Commission
for, reinstatement or adoption of a fuel or |
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| purchased gas
adjustment clause. Nothing in this subsection (d) |
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| shall be
construed as limiting the Commission's authority to |
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| eliminate
a public utility's fuel adjustment clause or |
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| purchased gas
adjustment clause in accordance with any other |
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| applicable
provisions of this Act. |
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| (e) Notwithstanding any contrary or inconsistent |
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| provisions in
Section 9-201 of this Act, in subsection (a) of |
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| this Section, or in
any rules promulgated by the Commission |
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| pursuant
to subsection (g) of this Section, a public utility |
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| providing
electric service to more than 1,000,000 customers in |
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LRB096 17322 MJR 32673 b |
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| this State may, within the
first 6 months after the
effective |
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| date of this amendatory Act of 1997, file with the
Commission |
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| proposed tariff sheets that eliminate, effective
January 1, |
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| 1997, the public utility's fuel adjustment clause
without |
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| adjusting its base rates, and such tariff sheets shall be
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| effective upon filing. To the extent the application of the |
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| fuel
adjustment clause had resulted in net charges to customers |
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| after
January 1, 1997, the utility shall also file a tariff |
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| sheet that
provides for a refund stated on a per kilowatt-hour |
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| basis of such
charges over a period not to exceed 6 months; |
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| provided
however, that such refund shall not include the |
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| proportional
amounts of taxes paid under the Use Tax Act, |
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| Service Use Tax Act,
Service Occupation Tax Act, and Retailers' |
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| Occupation Tax Act on
fuel used in generation. The Commission |
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| shall issue an order
within 45 days after the date of the |
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| public utility's filing
approving or approving as modified such |
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| tariff sheet. If the fuel
adjustment clause is eliminated |
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| pursuant to this subsection, the
Commission shall not conduct |
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| the annual hearings specified in the
last 3 sentences of |
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| subsection (a) of this Section for the
utility for any period |
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| after December 31, 1996 and prior to any
reinstatement of such |
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| clause. A public utility whose fuel
adjustment clause has been |
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| eliminated pursuant to this subsection
shall not file a |
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| proposed tariff sheet seeking, or otherwise
petition the |
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| Commission for, reinstatement of the fuel adjustment
clause |
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| prior to January 1, 2007. |
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LRB096 17322 MJR 32673 b |
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| (f) Notwithstanding any contrary or inconsistent |
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| provisions in Section
9-201 of this Act, in subsection (a) of |
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| this Section, or in any rules or
regulations promulgated by the |
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| Commission pursuant to subsection (g) of this
Section, a public |
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| utility providing electric service to more than 500,000
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| customers but fewer than 1,000,000 customers in this State may, |
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| within the
first
6 months after the effective date of this |
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| amendatory Act of 1997, file with the
Commission proposed |
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| tariff sheets that eliminate, effective January 1, 1997,
the |
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| public utility's fuel adjustment clause and adjust its base |
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| rates by the
amount necessary for the base fuel component of |
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| the base rates to recover
91% of the public utility's average |
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| fuel and power supply costs for the 2 most
recent years for |
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| which the Commission, as of January 1, 1997, has issued final
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| orders in annual proceedings pursuant to subsection (a), where |
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| the average fuel
and power supply costs per kilowatt-hour shall |
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| be calculated as the sum of the
public utility's prudent and |
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| allowable fuel and power supply costs as found by
the |
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| Commission in the 2 proceedings divided by the public utility's |
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| actual
jurisdictional kilowatt-hour sales for those 2 years, |
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| provided, that such
tariff sheets shall be effective upon |
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| filing. To the extent the application of
the fuel adjustment |
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| clause had resulted in net charges to customers after
January |
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| 1, 1997, the utility shall also file a tariff sheet that |
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| provides for a
refund stated on a per kilowatt-hour basis of |
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| such charges over a period not to
exceed 6 months. Provided |
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LRB096 17322 MJR 32673 b |
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| however, that such refund shall not include the
proportional |
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| amounts of taxes paid under the Use Tax Act, Service Use Tax |
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| Act,
Service Occupation Tax Act, and Retailers' Occupation Tax |
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| Act on fuel used in
generation. The Commission shall issue an |
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| order within 45 days after the date
of the public utility's |
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| filing approving or approving as modified such tariff
sheet. If |
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| the fuel adjustment clause is eliminated pursuant to this
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| subsection, the Commission shall not conduct the annual |
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| hearings specified in
the last 3 sentences of subsection (a) of |
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| this Section for the utility for any
period after December 31, |
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| 1996 and prior to any reinstatement of such clause.
A public |
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| utility whose fuel adjustment clause has been eliminated |
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| pursuant to
this subsection shall not file a proposed tariff |
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| sheet seeking, or otherwise
petition the Commission for, |
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| reinstatement of the fuel adjustment clause prior
to January 1, |
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| 2007. |
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| (g) The Commission shall have authority to promulgate rules |
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| and
regulations to
carry out the provisions of this Section. |
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| (h) Any Illinois gas utility may enter into a contract for |
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| up to 10 20 years of supply with any company for the purchase |
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| of substitute natural gas (SNG) produced from coal through the |
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| gasification process if the company has commenced construction |
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| of a coal gasification facility by July 1, 2012 in Jefferson |
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| County and commencement of construction shall mean that |
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| material physical site work has occurred, such as site clearing |
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| and excavation, water runoff prevention, water retention |
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LRB096 17322 MJR 32673 b |
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| reservoir preparation, or foundation development 2010 . The |
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| contract shall contain the following provisions cost for the |
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| SNG is reasonable and prudent and recoverable through the |
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| purchased gas adjustment clause for years one through 10 of the |
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| contract if : (i) the only coal to be used in the gasification |
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| process has high volatile bituminous rank and greater than 1.7 |
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| pounds of sulfur per million Btu content; (ii) at the time the |
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| contract term commences, the price per million Btu may does not |
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| exceed $7.95 in 2008 dollars, adjusted annually based on the |
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| change in the Annual Consumer Price Index for All Urban |
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| Consumers for the Midwest Region as published in April by the |
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| United States Department of Labor, Bureau of Labor Statistics |
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| (or a suitable Consumer Price Index calculation if this |
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| Consumer Price Index is not available) for the previous |
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| calendar year; provided that the price per million Btu shall |
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| not exceed $9.95 at any time during the contract; (iii) the |
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| utility's aggregate long-term supply contracts for the |
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| purchase of SNG does not exceed 25% of the annual system supply |
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| requirements of the utility as of 2008 at the time the contract |
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| is entered into and the quantity of SNG supplied to a utility |
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| may not exceed 16 million MMBtus; and (iv) contract costs |
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| pursuant to subsection (h-10) of this Section shall not include |
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| any lobbying expenses, charitable contributions, advertising, |
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| organizational memberships, or marketing expenses by any one |
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| producer may not exceed 20 billion cubic feet per year ; and |
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| (iv) the contract is entered into within 120 days after the |
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| effective date of this amendatory Act of the 95th General |
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| Assembly and terminates no more than 20 years after the |
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| commencement of the commercial production of SNG at the |
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| facility. Contracts greater than 10 years shall provide that |
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| if, at any time during supply years 11 through 20 of the |
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| contract, the Commission determines that the cost for the |
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| synthetic natural gas purchased under the contract during |
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| supply years 11 through 20 is not reasonable and prudent, then |
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| the company shall reimburse the utility for the difference |
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| between the cost deemed reasonable and prudent by the |
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| Commission and the cost imposed under the contract . |
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| (h-5) The Attorney General, on behalf of the people of the |
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| State of Illinois, may specifically enforce the requirements of |
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| this subsection (h-5). All such contracts, regardless of |
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| duration, shall require the owner of any facility supplying SNG |
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| under the contract to provide documentation to the Commission |
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| each year, starting in the facility's first year of commercial |
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| operation, accurately reporting the quantity of carbon dioxide |
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| emissions from the facility that have been captured and |
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| sequestered and reporting any quantities of carbon dioxide |
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| released from the site or sites at which carbon dioxide |
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| emissions were sequestered in prior years, based on continuous |
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| monitoring of those sites. If, in any year, the owner of the |
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| facility fails to demonstrate that the SNG facility captured |
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| and sequestered at least 90% of the total carbon dioxide |
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| emissions that the facility would otherwise emit or that |
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| sequestration of emissions from prior years has failed, |
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| resulting in the release of carbon dioxide into the atmosphere, |
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| then the owner of the facility must offset excess emissions. |
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| Any such carbon dioxide offsets must be permanent, additional, |
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| verifiable, real, located within the State of Illinois, and |
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| legally and practicably enforceable ; provided that the owner of |
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| the facility shall not be obligated to acquire carbon dioxide |
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| emission offsets to the extent that the cost of acquiring . The |
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| costs of such offsets would shall not exceed $40 million in any |
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| given year. No costs of any purchases of carbon offsets may be |
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| recovered from a utility or its customers. All carbon offsets |
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| purchased for this purpose must be permanently retired. In |
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| addition, carbon dioxide emission credits equivalent to 50% of |
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| the amount of credits associated with the required |
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| sequestration of carbon dioxide from the facility must be |
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| permanently retired. Compliance with the sequestration |
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| requirements and the offset purchase requirements specified in |
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| this subsection (h-5) (h) shall be assessed annually by an |
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| independent expert retained by the owner of the SNG facility, |
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| with the advance written approval of the Attorney General. A An |
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| SNG facility operating pursuant to this subsection (h-5) (h) |
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| shall not forfeit its designation as a clean coal SNG facility |
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| if the facility fails to fully comply with the applicable |
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| carbon sequestration requirements in any given year, provided |
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| the requisite offsets are purchased. However, the Attorney |
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| General, on behalf of the People of the State of Illinois, may |
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SB2660 Engrossed |
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LRB096 17322 MJR 32673 b |
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| specifically enforce the facility's sequestration |
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| requirements. |
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| (h-10) All contract costs for SNG incurred by any utility |
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| are reasonable and prudent and recoverable through the |
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| purchased gas adjustment clause and are not subject to review |
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| or disallowance by the Commission. Contract costs are any costs |
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| incurred by the utility under the terms of any contract that |
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| incorporates the terms stated in subsection (h) of this Section |
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| as confirmed in writing by the Illinois Power Agency as set |
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| forth in subsection (h-20) of this Section, which confirmation |
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| shall be deemed conclusive, or as a consequence of or condition |
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| to its performance under the contract, including without |
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| limitation, (i) amounts paid under the SNG contract; (ii) costs |
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| incurred in its performance of any obligation, its resolution |
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| of any claim or dispute, or its waiver, amendment, or |
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| modification of any provision of such contract; and (iii) costs |
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| of transportation, storage, and gas supply back-up services |
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| purchased by a utility to receive, transport, and deliver SNG |
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| pursuant to this subsection (h-10). Any contract, the terms of |
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| which have been confirmed in writing by the Illinois Power |
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| Agency as set forth in subsection (h-20) of this Section and |
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| the performance of the parties under such contract cannot be |
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| grounds for challenging prudence or cost recovery by the |
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| utility through the purchased gas adjustment clause, and in |
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| such cases, the Commission is directed not to consider, and has |
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| no authority to consider, any attempted challenges. |
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SB2660 Engrossed |
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LRB096 17322 MJR 32673 b |
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| Transportation and storage services purchased from |
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| interstate pipelines will be provided under federally approved |
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| tariffs. Any storage and gas supply back-up services not |
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| purchased under federally approved tariffs shall be purchased |
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| under arms-length transactions and shall in no instance be |
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| purchased from an affiliate of the Illinois utility making said |
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| purchase. |
8 |
| The contracts entered into by Illinois gas utilities shall |
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| provide that the utility retains the right to terminate the |
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| contract without further obligation or liability to any party |
11 |
| if the contract has been impaired as a result of any |
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| legislative, administrative, judicial, or other governmental |
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| action that is taken that eliminates all or part of the |
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| prudence protection of this subsection (h-10) or denies the |
15 |
| recoverability of all or part of the contract costs through the |
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| purchased gas adjustment clause. Should any utility exercise |
17 |
| its right under this subsection (h-10) to terminate the |
18 |
| contract, all contract costs incurred prior to termination are |
19 |
| and will be deemed reasonable, prudent, and recoverable as and |
20 |
| when incurred and not subject to review or disallowance by the |
21 |
| Commission. Any act of or by the State of Illinois, the |
22 |
| Illinois Finance Authority, or any agency or agents thereof |
23 |
| that gives rise to the right of a utility to terminate a |
24 |
| contract pursuant to this subsection (h-10) constitutes an |
25 |
| impermissible impairment in violation of subsection (h-25) of |
26 |
| this Section. |
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| (h-15) With respect to each contract entered into by the |
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| company with an Illinois utility in accordance with the terms |
3 |
| stated in subsection (h) of this Section, within 60 days |
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| following the completion of purchases of SNG, the Illinois |
5 |
| Power Agency shall conduct an analysis to determine (i) the |
6 |
| average contract SNG cost, which shall be calculated as the |
7 |
| total amount paid to a company for SNG over the contract term, |
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| plus the cost to the utility of required transportation, |
9 |
| storage, and gas supply back-up service costs for such SNG, |
10 |
| divided by the total number of MMBtus of SNG actually purchased |
11 |
| under the utility contract; (ii) the average natural gas |
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| purchase cost, which shall be calculated as the total annual |
13 |
| supply costs paid for natural gas (excluding SNG) purchased by |
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| such utility over the contract term, plus the cost of all |
15 |
| transportation, storage, and gas supply back-up service costs |
16 |
| for such natural gas (excluding such costs for SNG), divided by |
17 |
| the total number of MMBtus of natural gas (excluding SNG) |
18 |
| actually purchased by the utility during the contract term; |
19 |
| (iii) the cost differential, which shall be the difference |
20 |
| between the average contract SNG cost and the average natural |
21 |
| gas purchase cost; and (iv) the revenue share target, which |
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| shall be the cost differential multiplied by the total amount |
23 |
| of SNG purchased under such utility contract. If the average |
24 |
| contract SNG cost is equal to or less than the average natural |
25 |
| gas purchase cost, then the company shall have no further |
26 |
| obligation to the utility. If the average contract SNG cost for |
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| such SNG contract is greater than the average natural gas |
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| purchase cost for such utility, then the company shall market |
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| the daily production of SNG and distribute on a monthly basis |
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| 5% of amounts collected with respect to such future sales to |
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| the utilities in proportion to each utility's SNG purchases |
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| from the company during the term of the SNG contract to be used |
7 |
| to reduce the utility's natural gas costs through the purchased |
8 |
| gas adjustment clause; such payments to the utility shall |
9 |
| continue until such time as the sum of such payments equals the |
10 |
| revenue share target of that utility. The company or utilities |
11 |
| shall have no obligation to repay the revenue share target |
12 |
| except as provided for in this subsection (h-15). |
13 |
| (h-20) The General Assembly authorizes the Illinois |
14 |
| Finance Authority to issue bonds to the maximum extent |
15 |
| permitted to finance coal gasification facilities described in |
16 |
| this Section, which constitute both "industrial projects" |
17 |
| under Article 801 of the Illinois Finance Authority Act and |
18 |
| "clean coal and energy projects" under Sections 825-65 through |
19 |
| 825-75 of the Illinois Finance Authority Act. The General |
20 |
| Assembly further authorizes the Illinois Power Agency to become |
21 |
| party to agreements and take such actions as necessary to |
22 |
| enable the Illinois Power Agency or its designate to (i) review |
23 |
| and confirm in writing that the terms stated in subsection (h) |
24 |
| of this Section are incorporated in the SNG contract, and (ii) |
25 |
| conduct an analysis pursuant to subsection (h-15) of this |
26 |
| Section. Administrative costs incurred by the Illinois Finance |
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| Authority and Illinois Power Agency in performance of this |
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| subsection (h-20) shall be subject to reimbursement by the |
3 |
| company on terms as the Illinois Finance Authority, the |
4 |
| Illinois Power Agency, and the company may agree. The utility |
5 |
| and its customers shall have no obligation to reimburse the |
6 |
| company, the Illinois Finance Authority, or the Illinois Power |
7 |
| Agency for any such costs. |
8 |
| (h-25) The State of Illinois, including, but not limited |
9 |
| to, the Commission and the Illinois Finance Authority pledges, |
10 |
| covenants, and agrees with the company, Illinois utilities |
11 |
| entering into SNG contracts under or in accordance with this |
12 |
| Section, the Illinois Finance Authority, as well as the holders |
13 |
| of the bonds and notes issued by the Illinois Finance Authority |
14 |
| pursuant to Sections 801-40 and 825-65 through 825-75 of the |
15 |
| Illinois Finance Authority Act, which bonds or notes are |
16 |
| expected to be paid in whole or in part from revenues derived |
17 |
| from any contract entered into pursuant to or in accordance |
18 |
| with this Section, that, notwithstanding any change in law |
19 |
| subsequent to the making of such contract in accordance with |
20 |
| this Section, until all of such bonds and notes have been paid |
21 |
| in full, the State will not take or permit any action to be |
22 |
| taken that would (i) impair any contract entered into pursuant |
23 |
| to this Section causing financial harm to the company, Illinois |
24 |
| utilities entering into SNG contracts under or in accordance |
25 |
| with this Section, the Illinois Finance Authority, or the |
26 |
| holders of the bonds and notes issued by the Illinois Finance |
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| Authority pursuant to Sections 801-40 and 825-65 through 825-75 |
2 |
| of the Illinois Finance Authority Act, which bonds or notes are |
3 |
| expected to be paid in whole or in part from revenues derived |
4 |
| from any contract entered into pursuant to or in accordance |
5 |
| with this Section, including, without limitation, any action of |
6 |
| or by the State of Illinois, the Illinois Finance Authority, or |
7 |
| any agency or agents thereof which gives rise to the right of a |
8 |
| utility to terminate a contract as provided under subsection |
9 |
| (h-10) of this Section, (ii) limit, alter, or impair the |
10 |
| ability of the Illinois Finance Authority, the company, or any |
11 |
| Illinois utility to satisfy its contractual obligations, or in |
12 |
| the case of any utility, to continue purchasing SNG, pursuant |
13 |
| to or in accordance with this Section, or (iii) issue an order |
14 |
| requiring or authorizing the discontinuation of the merchant |
15 |
| function in a manner that limits, reduces, or impairs the value |
16 |
| of any contract hereunder over its full term. The Illinois |
17 |
| Finance Authority is authorized to include these pledges, |
18 |
| covenants, and agreements of the State of Illinois in any |
19 |
| contract with the holders of bonds or notes, which bonds or |
20 |
| notes are expected to be paid in whole or in part from revenues |
21 |
| derived from any contract entered into pursuant to or in |
22 |
| accordance with this Section, the company, and Illinois gas |
23 |
| utilities. |
24 |
| (h-30) The company, Illinois utilities entering into SNG |
25 |
| contracts under or in accordance with this Section, as well as |
26 |
| the holders of the bonds and notes issued by the Illinois |
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| Finance Authority pursuant to Sections 801-40 and 825-65 |
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| through 825-75 of the Illinois Finance Authority Act, which |
3 |
| bonds or notes are expected to be paid in whole or in part from |
4 |
| revenues derived from any contract entered into pursuant to or |
5 |
| in accordance with this Section, may bring suits at law or |
6 |
| proceedings in equity to compel the performance and observance |
7 |
| by any person or by the State of Illinois, or the Illinois |
8 |
| Finance Authority or any of their respective agents, officers, |
9 |
| or employees of any contract, covenant, or pledge made in this |
10 |
| Section or entered into pursuant to or in accordance with this |
11 |
| Section and to compel such person or the State of Illinois or |
12 |
| the Illinois Finance Authority and any of their respective |
13 |
| agents, officers, or employees to perform any duties required |
14 |
| to be performed pursuant to any such contract, covenant, or |
15 |
| pledge, and to enjoin such person or the State of Illinois or |
16 |
| the Illinois Finance Authority and any of their respective |
17 |
| agents, officers, or employees from taking any action in |
18 |
| conflict with any such contract, covenant, or pledge. |
19 |
| (i) If a gas utility or an affiliate of a gas utility has |
20 |
| an ownership interest in any entity that produces or sells |
21 |
| synthetic natural gas, Article VII of this Act shall apply.
|
22 |
| (Source: P.A. 94-63, eff. 6-21-05; 95-1027, eff. 6-1-09 .)
|
23 |
| Section 99. Effective date. This Act takes effect upon |
24 |
| becoming law. |