Illinois Adopts Default Service Procurement Plan

The Illinois Commerce Commission this morning approved an Illinois Power Agency procurement plan for default service customers.

A written was not available as of press time.

Based on the discussion at the ICC's bench session, the final order retains a proposed order's finding that short-term REC purchases should be used for RPS compliance, and that long-contracts REC contracts should not be used at this time.

See 12/14 for discussion of proposed order

Additionally, based on the discussion, the final order does not include procurement of any distributed solar resources through a carve-out, but does order workshops on such potential procurements.

ICC Chairman Doug Scott said that he was sympathetic to the need to use long-term renewable contracts to support development of renewable projects, but said that current market conditions (particularly the low REC prices) do not support long-term contracts at this time. Scott noted, however, that annual REC purchases will not support renewable development, and said that greater certainty in renewable procurement will be needed.

Commissioner Sherman Elliott said that long-term contracts were not appropriate given the customer migration to competitive supply occurring in Illinois, particularly as municipal aggregations will soon see large swaths of customers leave default service.