Changes Coming to the IPA
Public Act 99-0906 (the "Future Energy Jobs Act") took effect on June 1, 2017. This legislation made the following changes to the duties of the Illinois Power Agency.
Renewable Portfolio Standard (revised Sections 1-56(b) and 1-75(c) of the Illinois Power Agency Act) The Illinois Renewable Portfolio Standard has been revamped to include new plans, procurements, and programs administered by the Illinois Power Agency.
The Agency's Long-Term Renewable Resources Procurement Plan was approved by the Illinois Commerce Commission on April 3, 2018. It describes the implementation of the Adjustable Block Program (for photovoltaic distributed generation and community solar), the Illinois Solar for All Program (for low-income photovoltaic distributed generation and community solar), and competitive procurements (for Renewable Energy Credits from new wind, photovoltaic, and brownfield photovoltaic projects). Pursuant to the Illinois Commerce Commission's Order approving the Plan, the Agency will not be holding the proposed Spot Procurements for Renewable Energy Credits.
The Adjustable Block Program and the Illinois Solar for All Program are still under development and are not yet open for project applications. In the coming months, the Agency will post updates on next steps when they become available.
Renewable Resources page has more information on the Renewable Portfolio Standard and the Long-term Renewable Resources Procurement Plan.
In addition to the activities conducted by the Illinois Power Agency, there have been revisions to net metering, there will be a rebate offered by the utilities for smart inverters for non-residential distributed generation and community solar projects, and there are new RPS compliance obligations for Alternative Retail Electric Suppliers. See the
Renewable Resources page for more information.
Zero Emission Credits (new Section 1-75(d-5) of the Illinois Power Agency Act) The Agency developed and implemented a plan to procure ten-year contracts for Zero Emission Credits in an estimated quantity equal to 16% of the energy delivered by utilities in 2014. Selection of the winning supplier(s) for these credits was based upon "public interest criteria" as described in the Agency's Zero Emission Standard Procurement Plan. The price paid for the credits will be based on the "Social Cost of Carbon" as adjusted as described in the law.
The Plan and procurement results are available here.
The IPA was established in 2007 by Public Act 95-0481. Its goals and objectives are to accomplish each of the following:
- Develop electricity procurement plans to ensure adequate, reliable, affordable, efficient, and environmentally sustainable electric service at the lowest total cost over time, taking into account any benefits of price stability, for residential and small commercial customers of Ameren, ComEd, and MidAmerican. The procurement plan is updated on an annual basis.
- Conduct competitive procurement processes to procure the supply resources identified in the procurement plan.
- Develop and implement a Zero Emission Standard Procurement Plan.
- Develop a Long-Term Renewable Resources Procurement Plan and implement the programs and procurements contained in the Plan, including the Adjustable Block Program and the Illinois Solar for All Program.
- Develop electric generation and co generation facilities that use indigenous coal or renewable resources, or both, financed with bonds issued by the Illinois Finance Authority.
- Supply electricity from any Agency facilities at cost to one or more of the following: municipal electric systems, governmental aggregators, or rural electric cooperatives in Illinois.
The Illinois Power Agency is an independent agency subject to the oversight of the Executive Ethics Commission. As such, the IPA must:
- Ensure that the process of power procurement is conducted in an ethical and transparent fashion, immune from improper influence.
- Operate in a structurally insulated, independent and transparent fashion so that nothing impedes its mission to secure power at the best prices the market will bear, provided that it meets all applicable legal requirements.
The IPA welcomes your questions and hopes you will take advantage of the information offered on our web site. Please be aware that state ethics rules may require that some communications be reported to the Procurement Policy Board. This link:
Ethics Reporting Associated with Communications with the IPA provides more information.