In August 2007, Illinois enacted legislation (Public Act 095-0481) that created the Illinois Power Agency (IPA). The agency’s purpose is to develop electricity procurement plans for investor-owned electric utilities (EUs) supplying over 100,000 Illinois customers to ensure “adequate, reliable, affordable, efficient, and environmentally sustainable electric service at the lowest total cost.” The only EUs that meet these criteria and are therefore subject to the IPA procurement process are Commonwealth Edison (ComEd) and the Ameren Corporation companies (AmerenCILCO, AmerenIPL, and AmerenCIPCO).
The IPA plans and administers the competitive procurement processes that result in bilateral agreements between the utilities and wholesale electric suppliers. The procurement plans must include procurement of cost-effective renewable energy resources per the Renewable Portfolio Standard (RPS) requirements, outlined here. The RPS includes a solar requirement to be met with solar renewable energy credits (SRECs) with benchmarks beginning in Energy Year June 2012-May 2013. Each SREC represents the environmental attributes associated with 1 megawatt-hour of energy produced from solar energy. Selected suppliers are required to utilize either the PJM-EIS-GATS, M-RETS, or NARR tracking system.
In October 2011, the legislature passed S.B. 1652, which requires the IPA to conduct a procurement event for the acquisition of renewable energy credits (RECs) for the period of June 1, 2013 to December 31, 2017. This procurement process will take place throughout calendar year 2012. If needed, future procurement processes will be administered through the program administrators.
Ameren
The procurement process for Ameren is administered by Levitan and Associates here. REC bids for 2012 were due in May 2012. Ameren is seeking SRECs per the schedule outlined below.
| Procurement Period | Photovoltaic Target (# of SRECs) |
|---|---|
| June 1, 2013 - May 31, 2014 | 13,612 |
| June 1, 2014 - May 31, 2015 | 27,332 |
| June 1, 2015 - May 31, 2016 | 57,100 |
| June 1, 2016 - May 31, 2017 | 58,326 |
| June 1, 2017 - December 31, 2017 | 34,264 |
SRECs must be generated during the same time period as the procurement. More information, including application materials, is available on the Levitan and Associates web site.
ComEd
For ComEd, the procurement process is administered by NERA Economic Consulting. Applications for the 2012 procurement event were in February, 2012, and bidding took place in May 2012.
| Implementing Sector: | State |
| Category: | Financial Incentive |
| State: | Illinois |
| Incentive Type: | Performance-Based Incentive |
| Web Site: | http://www.icc.illinois.gov/electricity/ElectricityProcurement.aspx |
| Administrator: | NERA Economic Consulting (ComEd); Levitan and Associates (Ameren) |
| Start Date: | |
| Eligible Renewable/Other Technologies: |
|
| Incentive Amount: | Negotiated with procurement administrators |
| Maximum Incentive: | Benchmarks set by procurement administrators |
| Ownership of Renewable Energy Credits: | Awarded to winning bidder |
| Name: | § 220 ILCS 5/16-115D |
| Effective Date: | 06/01/2009 |
| Name: | § 20 ILCS 3855/1-75 |
| Date Enacted: | 08/28/2007 |
| Effective Date: | 08/28/2007 |
| Name: | S.B. 1652 |
| Date Enacted: | 10/26/2011 |
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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