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1     AN ACT concerning utilities.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Public Utilities Act is amended by changing
5 Section 9-220 as follows:
 
6     (220 ILCS 5/9-220)  (from Ch. 111 2/3, par. 9-220)
7     Sec. 9-220. Rate changes based on changes in fuel costs.
8     (a) Notwithstanding the provisions of Section 9-201, the
9 Commission may authorize the increase or decrease of rates and
10 charges based upon changes in the cost of fuel used in the
11 generation or production of electric power, changes in the cost
12 of purchased power, or changes in the cost of purchased gas
13 through the application of fuel adjustment clauses or purchased
14 gas adjustment clauses. The Commission may also authorize the
15 increase or decrease of rates and charges based upon
16 expenditures or revenues resulting from the purchase or sale of
17 emission allowances created under the federal Clean Air Act
18 Amendments of 1990, through such fuel adjustment clauses, as a
19 cost of fuel. For the purposes of this paragraph, cost of fuel
20 used in the generation or production of electric power shall
21 include the amount of any fees paid by the utility for the
22 implementation and operation of a process for the
23 desulfurization of the flue gas when burning high sulfur coal

 

 

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1 at any location within the State of Illinois irrespective of
2 the attainment status designation of such location; but shall
3 not include transportation costs of coal (i) except to the
4 extent that for contracts entered into on and after the
5 effective date of this amendatory Act of 1997, the cost of the
6 coal, including transportation costs, constitutes the lowest
7 cost for adequate and reliable fuel supply reasonably available
8 to the public utility in comparison to the cost, including
9 transportation costs, of other adequate and reliable sources of
10 fuel supply reasonably available to the public utility, or (ii)
11 except as otherwise provided in the next 3 sentences of this
12 paragraph. Such costs of fuel shall, when requested by a
13 utility or at the conclusion of the utility's next general
14 electric rate proceeding, whichever shall first occur, include
15 transportation costs of coal purchased under existing coal
16 purchase contracts. For purposes of this paragraph "existing
17 coal purchase contracts" means contracts for the purchase of
18 coal in effect on the effective date of this amendatory Act of
19 1991, as such contracts may thereafter be amended, but only to
20 the extent that any such amendment does not increase the
21 aggregate quantity of coal to be purchased under such contract.
22 Nothing herein shall authorize an electric utility to recover
23 through its fuel adjustment clause any amounts of
24 transportation costs of coal that were included in the revenue
25 requirement used to set base rates in its most recent general
26 rate proceeding. Cost shall be based upon uniformly applied

 

 

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1 accounting principles. Annually, the Commission shall initiate
2 public hearings to determine whether the clauses reflect actual
3 costs of fuel, gas, power, or coal transportation purchased to
4 determine whether such purchases were prudent, and to reconcile
5 any amounts collected with the actual costs of fuel, power,
6 gas, or coal transportation prudently purchased. In each such
7 proceeding, the burden of proof shall be upon the utility to
8 establish the prudence of its cost of fuel, power, gas, or coal
9 transportation purchases and costs. The Commission shall issue
10 its final order in each such annual proceeding for an electric
11 utility by December 31 of the year immediately following the
12 year to which the proceeding pertains, provided, that the
13 Commission shall issue its final order with respect to such
14 annual proceeding for the years 1996 and earlier by December
15 31, 1998.
16     (b) A public utility providing electric service, other than
17 a public utility described in subsections (e) or (f) of this
18 Section, may at any time during the mandatory transition period
19 file with the Commission proposed tariff sheets that eliminate
20 the public utility's fuel adjustment clause and adjust the
21 public utility's base rate tariffs by the amount necessary for
22 the base fuel component of the base rates to recover the public
23 utility's average fuel and power supply costs per kilowatt-hour
24 for the 2 most recent years for which the Commission has issued
25 final orders in annual proceedings pursuant to subsection (a),
26 where the average fuel and power supply costs per kilowatt-hour

 

 

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1 shall be calculated as the sum of the public utility's prudent
2 and allowable fuel and power supply costs as found by the
3 Commission in the 2 proceedings divided by the public utility's
4 actual jurisdictional kilowatt-hour sales for those 2 years.
5 Notwithstanding any contrary or inconsistent provisions in
6 Section 9-201 of this Act, in subsection (a) of this Section or
7 in any rules or regulations promulgated by the Commission
8 pursuant to subsection (g) of this Section, the Commission
9 shall review and shall by order approve, or approve as
10 modified, the proposed tariff sheets within 60 days after the
11 date of the public utility's filing. The Commission may modify
12 the public utility's proposed tariff sheets only to the extent
13 the Commission finds necessary to achieve conformance to the
14 requirements of this subsection (b). During the 5 years
15 following the date of the Commission's order, but in any event
16 no earlier than January 1, 2007, a public utility whose fuel
17 adjustment clause has been eliminated pursuant to this
18 subsection shall not file proposed tariff sheets seeking, or
19 otherwise petition the Commission for, reinstatement of a fuel
20 adjustment clause.
21     (c) Notwithstanding any contrary or inconsistent
22 provisions in Section 9-201 of this Act, in subsection (a) of
23 this Section or in any rules or regulations promulgated by the
24 Commission pursuant to subsection (g) of this Section, a public
25 utility providing electric service, other than a public utility
26 described in subsection (e) or (f) of this Section, may at any

 

 

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1 time during the mandatory transition period file with the
2 Commission proposed tariff sheets that establish the rate per
3 kilowatt-hour to be applied pursuant to the public utility's
4 fuel adjustment clause at the average value for such rate
5 during the preceding 24 months, provided that such average rate
6 results in a credit to customers' bills, without making any
7 revisions to the public utility's base rate tariffs. The
8 proposed tariff sheets shall establish the fuel adjustment rate
9 for a specific time period of at least 3 years but not more
10 than 5 years, provided that the terms and conditions for any
11 reinstatement earlier than 5 years shall be set forth in the
12 proposed tariff sheets and subject to modification or approval
13 by the Commission. The Commission shall review and shall by
14 order approve the proposed tariff sheets if it finds that the
15 requirements of this subsection are met. The Commission shall
16 not conduct the annual hearings specified in the last 3
17 sentences of subsection (a) of this Section for the utility for
18 the period that the factor established pursuant to this
19 subsection is in effect.
20     (d) A public utility providing electric service, or a
21 public utility providing gas service may file with the
22 Commission proposed tariff sheets that eliminate the public
23 utility's fuel or purchased gas adjustment clause and adjust
24 the public utility's base rate tariffs to provide for recovery
25 of power supply costs or gas supply costs that would have been
26 recovered through such clause; provided, that the provisions of

 

 

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1 this subsection (d) shall not be available to a public utility
2 described in subsections (e) or (f) of this Section to
3 eliminate its fuel adjustment clause. Notwithstanding any
4 contrary or inconsistent provisions in Section 9-201 of this
5 Act, in subsection (a) of this Section, or in any rules or
6 regulations promulgated by the Commission pursuant to
7 subsection (g) of this Section, the Commission shall review and
8 shall by order approve, or approve as modified in the
9 Commission's order, the proposed tariff sheets within 240 days
10 after the date of the public utility's filing. The Commission's
11 order shall approve rates and charges that the Commission,
12 based on information in the public utility's filing or on the
13 record if a hearing is held by the Commission, finds will
14 recover the reasonable, prudent and necessary jurisdictional
15 power supply costs or gas supply costs incurred or to be
16 incurred by the public utility during a 12 month period found
17 by the Commission to be appropriate for these purposes,
18 provided, that such period shall be either (i) a 12 month
19 historical period occurring during the 15 months ending on the
20 date of the public utility's filing, or (ii) a 12 month future
21 period ending no later than 15 months following the date of the
22 public utility's filing. The public utility shall include with
23 its tariff filing information showing both (1) its actual
24 jurisdictional power supply costs or gas supply costs for a 12
25 month historical period conforming to (i) above and (2) its
26 projected jurisdictional power supply costs or gas supply costs

 

 

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1 for a future 12 month period conforming to (ii) above. If the
2 Commission's order requires modifications in the tariff sheets
3 filed by the public utility, the public utility shall have 7
4 days following the date of the order to notify the Commission
5 whether the public utility will implement the modified tariffs
6 or elect to continue its fuel or purchased gas adjustment
7 clause in force as though no order had been entered. The
8 Commission's order shall provide for any reconciliation of
9 power supply costs or gas supply costs, as the case may be, and
10 associated revenues through the date that the public utility's
11 fuel or purchased gas adjustment clause is eliminated. During
12 the 5 years following the date of the Commission's order, a
13 public utility whose fuel or purchased gas adjustment clause
14 has been eliminated pursuant to this subsection shall not file
15 proposed tariff sheets seeking, or otherwise petition the
16 Commission for, reinstatement or adoption of a fuel or
17 purchased gas adjustment clause. Nothing in this subsection (d)
18 shall be construed as limiting the Commission's authority to
19 eliminate a public utility's fuel adjustment clause or
20 purchased gas adjustment clause in accordance with any other
21 applicable provisions of this Act.
22     (e) Notwithstanding any contrary or inconsistent
23 provisions in Section 9-201 of this Act, in subsection (a) of
24 this Section, or in any rules promulgated by the Commission
25 pursuant to subsection (g) of this Section, a public utility
26 providing electric service to more than 1,000,000 customers in

 

 

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1 this State may, within the first 6 months after the effective
2 date of this amendatory Act of 1997, file with the Commission
3 proposed tariff sheets that eliminate, effective January 1,
4 1997, the public utility's fuel adjustment clause without
5 adjusting its base rates, and such tariff sheets shall be
6 effective upon filing. To the extent the application of the
7 fuel adjustment clause had resulted in net charges to customers
8 after January 1, 1997, the utility shall also file a tariff
9 sheet that provides for a refund stated on a per kilowatt-hour
10 basis of such charges over a period not to exceed 6 months;
11 provided however, that such refund shall not include the
12 proportional amounts of taxes paid under the Use Tax Act,
13 Service Use Tax Act, Service Occupation Tax Act, and Retailers'
14 Occupation Tax Act on fuel used in generation. The Commission
15 shall issue an order within 45 days after the date of the
16 public utility's filing approving or approving as modified such
17 tariff sheet. If the fuel adjustment clause is eliminated
18 pursuant to this subsection, the Commission shall not conduct
19 the annual hearings specified in the last 3 sentences of
20 subsection (a) of this Section for the utility for any period
21 after December 31, 1996 and prior to any reinstatement of such
22 clause. A public utility whose fuel adjustment clause has been
23 eliminated pursuant to this subsection shall not file a
24 proposed tariff sheet seeking, or otherwise petition the
25 Commission for, reinstatement of the fuel adjustment clause
26 prior to January 1, 2007.

 

 

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1     (f) Notwithstanding any contrary or inconsistent
2 provisions in Section 9-201 of this Act, in subsection (a) of
3 this Section, or in any rules or regulations promulgated by the
4 Commission pursuant to subsection (g) of this Section, a public
5 utility providing electric service to more than 500,000
6 customers but fewer than 1,000,000 customers in this State may,
7 within the first 6 months after the effective date of this
8 amendatory Act of 1997, file with the Commission proposed
9 tariff sheets that eliminate, effective January 1, 1997, the
10 public utility's fuel adjustment clause and adjust its base
11 rates by the amount necessary for the base fuel component of
12 the base rates to recover 91% of the public utility's average
13 fuel and power supply costs for the 2 most recent years for
14 which the Commission, as of January 1, 1997, has issued final
15 orders in annual proceedings pursuant to subsection (a), where
16 the average fuel and power supply costs per kilowatt-hour shall
17 be calculated as the sum of the public utility's prudent and
18 allowable fuel and power supply costs as found by the
19 Commission in the 2 proceedings divided by the public utility's
20 actual jurisdictional kilowatt-hour sales for those 2 years,
21 provided, that such tariff sheets shall be effective upon
22 filing. To the extent the application of the fuel adjustment
23 clause had resulted in net charges to customers after January
24 1, 1997, the utility shall also file a tariff sheet that
25 provides for a refund stated on a per kilowatt-hour basis of
26 such charges over a period not to exceed 6 months. Provided

 

 

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1 however, that such refund shall not include the proportional
2 amounts of taxes paid under the Use Tax Act, Service Use Tax
3 Act, Service Occupation Tax Act, and Retailers' Occupation Tax
4 Act on fuel used in generation. The Commission shall issue an
5 order within 45 days after the date of the public utility's
6 filing approving or approving as modified such tariff sheet. If
7 the fuel adjustment clause is eliminated pursuant to this
8 subsection, the Commission shall not conduct the annual
9 hearings specified in the last 3 sentences of subsection (a) of
10 this Section for the utility for any period after December 31,
11 1996 and prior to any reinstatement of such clause. A public
12 utility whose fuel adjustment clause has been eliminated
13 pursuant to this subsection shall not file a proposed tariff
14 sheet seeking, or otherwise petition the Commission for,
15 reinstatement of the fuel adjustment clause prior to January 1,
16 2007.
17     (g) The Commission shall have authority to promulgate rules
18 and regulations to carry out the provisions of this Section.
19     (h) Any Illinois gas utility may enter into a contract for
20 up to 10 20 years of supply with any company for the purchase
21 of substitute natural gas (SNG) produced from coal through the
22 gasification process if the company has commenced construction
23 of a coal gasification facility by July 1, 2012 in Jefferson
24 County and commencement of construction shall mean that
25 material physical site work has occurred, such as site clearing
26 and excavation, water runoff prevention, water retention

 

 

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1 reservoir preparation, or foundation development 2010. The
2 contract shall contain the following provisions cost for the
3 SNG is reasonable and prudent and recoverable through the
4 purchased gas adjustment clause for years one through 10 of the
5 contract if: (i) the only coal to be used in the gasification
6 process has high volatile bituminous rank and greater than 1.7
7 pounds of sulfur per million Btu content; (ii) at the time the
8 contract term commences, the price per million Btu may does not
9 exceed $7.95 in 2008 dollars, adjusted annually based on the
10 change in the Annual Consumer Price Index for All Urban
11 Consumers for the Midwest Region as published in April by the
12 United States Department of Labor, Bureau of Labor Statistics
13 (or a suitable Consumer Price Index calculation if this
14 Consumer Price Index is not available) for the previous
15 calendar year; provided that the price per million Btu shall
16 not exceed $9.95 at any time during the contract; (iii) the
17 utility's aggregate long-term supply contracts for the
18 purchase of SNG does not exceed 25% of the annual system supply
19 requirements of the utility as of 2008 at the time the contract
20 is entered into and the quantity of SNG supplied to a utility
21 may not exceed 16 million MMBtus; and (iv) contract costs
22 pursuant to subsection (h-10) of this Section shall not include
23 any lobbying expenses, charitable contributions, advertising,
24 organizational memberships, or marketing expenses by any one
25 producer may not exceed 20 billion cubic feet per year; and
26 (iv) the contract is entered into within 120 days after the

 

 

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1 effective date of this amendatory Act of the 95th General
2 Assembly and terminates no more than 20 years after the
3 commencement of the commercial production of SNG at the
4 facility. Contracts greater than 10 years shall provide that
5 if, at any time during supply years 11 through 20 of the
6 contract, the Commission determines that the cost for the
7 synthetic natural gas purchased under the contract during
8 supply years 11 through 20 is not reasonable and prudent, then
9 the company shall reimburse the utility for the difference
10 between the cost deemed reasonable and prudent by the
11 Commission and the cost imposed under the contract.
12     (h-5) The Attorney General, on behalf of the people of the
13 State of Illinois, may specifically enforce the requirements of
14 this subsection (h-5). All such contracts, regardless of
15 duration, shall require the owner of any facility supplying SNG
16 under the contract to provide documentation to the Commission
17 each year, starting in the facility's first year of commercial
18 operation, accurately reporting the quantity of carbon dioxide
19 emissions from the facility that have been captured and
20 sequestered and reporting any quantities of carbon dioxide
21 released from the site or sites at which carbon dioxide
22 emissions were sequestered in prior years, based on continuous
23 monitoring of those sites. If, in any year, the owner of the
24 facility fails to demonstrate that the SNG facility captured
25 and sequestered at least 90% of the total carbon dioxide
26 emissions that the facility would otherwise emit or that

 

 

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1 sequestration of emissions from prior years has failed,
2 resulting in the release of carbon dioxide into the atmosphere,
3 then the owner of the facility must offset excess emissions.
4 Any such carbon dioxide offsets must be permanent, additional,
5 verifiable, real, located within the State of Illinois, and
6 legally and practicably enforceable; provided that the owner of
7 the facility shall not be obligated to acquire carbon dioxide
8 emission offsets to the extent that the cost of acquiring . The
9 costs of such offsets would shall not exceed $40 million in any
10 given year. No costs of any purchases of carbon offsets may be
11 recovered from a utility or its customers. All carbon offsets
12 purchased for this purpose must be permanently retired. In
13 addition, carbon dioxide emission credits equivalent to 50% of
14 the amount of credits associated with the required
15 sequestration of carbon dioxide from the facility must be
16 permanently retired. Compliance with the sequestration
17 requirements and the offset purchase requirements specified in
18 this subsection (h-5) (h) shall be assessed annually by an
19 independent expert retained by the owner of the SNG facility,
20 with the advance written approval of the Attorney General. A An
21 SNG facility operating pursuant to this subsection (h-5) (h)
22 shall not forfeit its designation as a clean coal SNG facility
23 if the facility fails to fully comply with the applicable
24 carbon sequestration requirements in any given year, provided
25 the requisite offsets are purchased. However, the Attorney
26 General, on behalf of the People of the State of Illinois, may

 

 

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1 specifically enforce the facility's sequestration
2 requirements.
3     (h-10) All contract costs for SNG incurred by any utility
4 are reasonable and prudent and recoverable through the
5 purchased gas adjustment clause and are not subject to review
6 or disallowance by the Commission. Contract costs are any costs
7 incurred by the utility under the terms of any contract that
8 incorporates the terms stated in subsection (h) of this Section
9 as confirmed in writing by the Illinois Power Agency as set
10 forth in subsection (h-20) of this Section, which confirmation
11 shall be deemed conclusive, or as a consequence of or condition
12 to its performance under the contract, including without
13 limitation, (i) amounts paid under the SNG contract; (ii) costs
14 incurred in its performance of any obligation, its resolution
15 of any claim or dispute, or its waiver, amendment, or
16 modification of any provision of such contract; and (iii) costs
17 of transportation, storage, and gas supply back-up services
18 purchased by a utility to receive, transport, and deliver SNG
19 pursuant to this subsection (h-10). Any contract, the terms of
20 which have been confirmed in writing by the Illinois Power
21 Agency as set forth in subsection (h-20) of this Section and
22 the performance of the parties under such contract cannot be
23 grounds for challenging prudence or cost recovery by the
24 utility through the purchased gas adjustment clause, and in
25 such cases, the Commission is directed not to consider, and has
26 no authority to consider, any attempted challenges.

 

 

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1     Transportation and storage services purchased from
2 interstate pipelines will be provided under federally approved
3 tariffs. Any storage and gas supply back-up services not
4 purchased under federally approved tariffs shall be purchased
5 under arms-length transactions and shall in no instance be
6 purchased from an affiliate of the Illinois utility making said
7 purchase.
8     The contracts entered into by Illinois gas utilities shall
9 provide that the utility retains the right to terminate the
10 contract without further obligation or liability to any party
11 if the contract has been impaired as a result of any
12 legislative, administrative, judicial, or other governmental
13 action that is taken that eliminates all or part of the
14 prudence protection of this subsection (h-10) or denies the
15 recoverability of all or part of the contract costs through the
16 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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1     (h-15) With respect to each contract entered into by the
2 company with an Illinois utility in accordance with the terms
3 stated in subsection (h) of this Section, within 60 days
4 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,
8 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
12 purchase cost, which shall be calculated as the total annual
13 supply costs paid for natural gas (excluding SNG) purchased by
14 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
22 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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1 such SNG contract is greater than the average natural gas
2 purchase cost for such utility, then the company shall market
3 the daily production of SNG and distribute on a monthly basis
4 5% of amounts collected with respect to such future sales to
5 the utilities in proportion to each utility's SNG purchases
6 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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1 Authority and Illinois Power Agency in performance of this
2 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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1 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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1 Finance Authority pursuant to Sections 801-40 and 825-65
2 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.