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Dynegy Backs Bill To Require Competitive Retail Suppliers In Downstate Illinois To Execute Standard Contracts To Pay For Capacity Procured By State Agency

October 27, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Dynegy announced support for two Illinois bills (SB2250, HB4141) that would require the Illinois Power Agency to procure capacity needs on behalf of all customers at Ameren Illinois, and require competitive retail electric suppliers to execute contracts with capacity suppliers selected by the IPA for their allocated share of the procured capacity.

SB2250 was co-sponsored by Senate Majority Leader James F. Clayborne, Jr

The bills would establish a modified process for the IPA to procure capacity at Ameren Illinois

SB2250 provides, "each Load Serving Entity serving retail customers of an Applicable Electric Utility in an Applicable Resource Zone, shall enter into contracts for capacity developed by the procurement administrator in accordance with paragraph (9) of this subsection (b-5)."

SB2250 provides, "beginning with the delivery year commencing June 1, 2018, an alternative retail electric supplier shall use only capacity procured and allocated to the alternative retail electric supplier through the processes specified in subsection (b-5) of Section 16-111.5 of this Act [the new IPA capacity procurement] to serve retail customers of an Applicable Electric Utility in an Applicable Local Resource Zone in this State; provided, that an alternative electric retail supplier may procure through other means any capacity needed to serve the load requirements of retail customers of an Applicable Electric Utility in an Applicable Local Resource Zone in excess of the capacity procured and allocated to the alternative retail electric supplier under subsection (b-5) of Section 16-111.5."

SB2250 provides, "An alternative retail electric supplier shall enter into contracts for capacity, in the form adopted by the procurement administrator and conforming to the requirements of subsection (b-5) of Section 16-111.5 of this Act, with capacity suppliers selected in capacity procurement events conducted under subsection (b-5) of Section 16-111.5"

SB2250 provides, "Each contract between a capacity supplier and a Load Serving Entity shall specify that the amount of capacity to be provided by the capacity supplier and purchased by the Load Serving Entity shall be that portion of the total capacity to be supplied by the capacity supplier equal to the load ratio share of the Applicable Electric Utility's retail customers served by the Load Serving Entity as a percentage of the total Planning Reserve Margin Requirement attributable to the load of the Applicable Electric Utility's retail customers in the Applicable Local Resource Zone on March 1 immediately preceding the first delivery year for which the contract is in effect."

SB2250 provides, "Each contract between a capacity supplier and a Load Serving Entity shall specify that beginning on June 1 of the first delivery year for which the contract is in effect, and continuing for the term of the contract, the amount of capacity being provided by the capacity supplier and purchased by the Load Serving Entity shall be deemed adjusted on a daily basis to be equal to that portion of the total capacity to be supplied by the capacity supplier equal to the load ratio share of the Applicable Electric Utility's retail customers in the Applicable Local Resource Zone that are served by the Load Serving Entity to the total Planning Reserve Margin Requirement attributable to the load of the Applicable Electric Utility's retail customers in the Applicable Local Resource Zone on that day."

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