[DRAFT SUPPLEMENTAL PHOTOVOLTAIC PROCUREMENT PLAN] · provisions including net metering,...

DraftPlanFiledforPublicComment September29ICCApproval October

2015SupplementalPhotovoltaic

Anthony Star Director

[DRAFTSUPPLEMENTALPHOTOVOLTAICPROCUREMENTPLAN]

PreparedinaccordancewithSection1‐56(i)oftheIllinoisPowerAgencyAct

DraftPlanforPublicComments September29,2014 October28,2014


IllinoisPowerAgency

DraftSupplementalPhotovoltaicProcurementPlanPreparedinaccordancewith

Section1‐56(i)oftheIllinoisPowerAgencyAct


TableofContents1 ExecutiveSummary.............................................................................................................................................................................1 2 LegislativeandRegulatoryOverview..........................................................................................................................................3 2.1 RenewableEnergyResourcesFund....................................................................................................................................3 2.1.1 ConstraintsonSpendingtheRERF............................................................................................................................3

2.2 Section1‐56(i)oftheIPAAct.................................................................................................................................................4 2.2.1 Timeline,Feedback,ContractDevelopment,andProcurementEvents....................................................5 2.2.2 ProductstobeProcured.................................................................................................................................................6 2.2.3 ProcurementProcess.......................................................................................................................................................8 2.2.4 GoverningStandard..........................................................................................................................................................9

2.3 OtherProvisions..........................................................................................................................................................................9 2.3.1 NetMetering........................................................................................................................................................................9 2.3.2 Interconnection................................................................................................................................................................10 2.3.3 InstallerCertification.....................................................................................................................................................10 2.3.4 Grants,Incentives,andTaxCredits.........................................................................................................................10

3 ProductstobeProcured..................................................................................................................................................................12 3.1 ResourceSelection....................................................................................................................................................................12 3.2 Interactionwith2015ProcurementPlan.......................................................................................................................14 3.3 ConvertingSystemkWSizeintoRECs.............................................................................................................................15

4 ProcurementProvisions..................................................................................................................................................................16 4.1 KeyContractTerms..................................................................................................................................................................16 4.2 QualificationofSystemstoDeliverRECs........................................................................................................................16 4.2.1 Systemsunder25kW....................................................................................................................................................17 4.2.2 Systems25kWandover..............................................................................................................................................17

4.3 CreditRequirements................................................................................................................................................................18 4.4 UseofQualifiedPersonsforInstallation.........................................................................................................................19 4.5 TrackingandTransferofRECs............................................................................................................................................19 4.6 Aggregators..................................................................................................................................................................................19 4.6.1 DefinitionofAggregator...............................................................................................................................................20

5 ProcurementProcess........................................................................................................................................................................21 5.1 ProcurementTimelineandScale........................................................................................................................................21 5.2 ProcurementProcess...............................................................................................................................................................21 5.2.1 Solicitation,pre‐qualification,andregistrationofbidders...........................................................................22 5.2.2 Standardcontractformsandcredittermsandinstruments........................................................................22 5.2.3 Requestsforproposals;competitiveprocurementprocess.........................................................................22 5.2.4 Benchmarks........................................................................................................................................................................23 5.2.5 APlanForImplementingContingenciesInTheEventOfSupplierDefault,CommissionRejectionOfResults,OrAnyOtherCause....................................................................................................................................................23 5.2.6 ProcurementApproval..................................................................................................................................................23 5.2.7 PublishedInformationonWinningBids...............................................................................................................24

6 Appendices............................................................................................................................................................................................25 6.1 SummaryofPublicMeetingsandCommentsontheDraftPlan...........................................................................25 6.1.1 SupplementalPhotovoltaicProcurementPlanPublicWorkshop,August7,2014............................25 6.1.2 DistributedGenerationWorkshop,June12,2014............................................................................................26 6.1.3 WorkshopParticipants..................................................................................................................................................27 6.1.4 SummaryofCommentsReceivedontheDraftSupplementalPhotovoltaicProcurementPlan..28

6.2 ComparisontoSRECProcurementsinSelectedOtherStates...............................................................................29 6.3 RequiredStateDocuments....................................................................................................................................................31


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1 ExecutiveSummary

OnJune28,2014,IllinoisGovernorPatQuinnsignedintolawIllinoisHouseBill2427.ThebillbecameintolawasPublicAct98‐0672andcreated,creatingnewSection1‐56(i)oftheIllinoisPowerAgencyAct.(“IPAAct”). Section 1‐56(i) calls on the Illinois Power Agency (“IPA”) to “develop a one‐time supplementalprocurementplanlimitedtotheprocurementofrenewableenergycredits,ifavailable,fromneworexistingphotovoltaics, including, but not limited to, distributed photovoltaic generation” through “using up to$30,000,000”fromtheRenewableEnergyResourcesFund.

As required by Section 1‐56(i), the IPA held a publicworkshop on August 7, 2014 and now releases thisposted itsdraftsupplementalphotovoltaic(“PV”)procurementplan forcommentsonSeptember29,2014.CommentsonthisitsdraftplanareduewerereceivedonOctober14andbeforeOctober14,20141andtheIPAwill file itshas now filed this revised supplemental PV procurement plan with the Illinois CommerceCommission(“ICC”or“Commission”)onOctober28,2014.TheCommissionwillhave90daystoreviewandapprovethesupplementalPVprocurementplan.

Chapter 2 provides a legislative and regulatory overviewof Section 1‐56 of the Illinois PowerAgencyAct(“IPAAct”)andtheuseof theRenewableEnergyResourcesFund,asynopsisofnewSection1‐56(i)whichdirectstheAgencytodevelopthissupplementalPVprocurementplan,andadiscussionofrelatedregulatoryprovisions includingnetmetering, interconnection, installer certification,andother financial incentives forsolarinstallations.

Chapters3and4provideadescriptionoftheproductstheIPAproposestoprocureandkeyprovisions.Theseinclude:

Procurement is for Renewable Energy Credits (“RECs”) from new photovoltaic systems withcontractsoffiveyearsinlength.

Systemswillhave12monthstostartoperation. Twocategoriesofprocurement,systemsunder25kW25kWand25kW25kWto2MW.

o Under25kW25kWsystemscanincludeidentifiedsystemsorbidsfor“speculative”systems.o Over25kW25kWsystemsmustbespecificallyidentifiedpriortobid.

Minimumbidsizeis500RECs(approximately205kWsystems,250sixteen5kWsystems,etc.)) Credit requirements include a refundable deposit per REC of $2516/REC ($125100/kW) for

“speculative” systems and $108/REC ($50/kW) for identified systems. Half of the deposit will berequiredonorbeforethebiddate,withtheremainingbalanceduefromwinningbidderswithin14daysoftheannouncementoftheprocurementresults.

RECsmustbetrackedanddeliveredusingeithertheGATSorM‐RETStrackingsystems. An aggregator is a third‐party (i.e., non‐system owner) that (i) owns or plans to acquire either

unconditioned title to or rights to legally transfer renewable energy credits from distributedrenewableenergydevicesthroughcontractswithsystemowners,and(ii)iswillingtocontractwithIPAandacceptsstandardIllinoistermsaswellasproceduresforcontractadministration.

Chapter5describestheprocurementprocess.Keypointsinclude:

Threeprocurementevents:o June 2015 ($5million budget; 5,000RECmaximumbid size for bids in the under 25 kW

category, and 500kW500 kW maximum system size for the 25 kW and above 25kWcategory).

1CommentsshouldbeaddressedtoMarioBohorquezatMario.bohorquez@illinois.gov.Commentsmustbe“specific,supportedbydataorotherdetailedanalyses,and,ifobjectingtoalloraportionofthesupplementalprocurementplan,accompaniedbyspecificalternativewordingorproposals.”AllcommentsreceivedwillbepostedtotheIPA’swebsitewww.illinois.gov/IPAandtheIllinoisCommerceCommission’swebsiteatwww.icc.illinois.gov.


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o November 2015 ($10million budget; nomaximum bid size for bids in the under 25 kWcategory,and2MW2MWmaximumsystemsizeforthe25kWandabove25kWcategory).

o March2016($15millionbudget;nomaximumbidsizeforbidsintheunder25kWcategory,and2MW2MWmaximumsystemsizeforthe25kWandabove25kWcategory).

o Early2017(ContingencyEvent;balanceofavailablefunds,possiblelimitationoncategoriesofsystemsthatmayparticipate).

Standard contracts and a sealed, pay‐as‐bid Request for Proposals process will be used for eachprocurementevent.

Allbidsmustbebelowconfidentialbenchmarks,andbidswillbeevaluatedinamannerthatstrivestoachievethegoalofhavinghalftheRECsprocuredcomefromsystemsunder25kW25kWinsize.

The IPAbelieves that theprioritiesoutlined in this supplementalPVprocurementplanmeet thegoalsenvisionedbytheGeneralAssemblywhenitenactedPublicAct98‐0672.ByfocusingonnewDGprojects,this supplemental PVprocurementwillmaximize the economicdevelopment opportunities for Illinoisandcontributetoreducedcostsforcompliancewiththestate’srenewableenergyportfoliostandardovertime throughthedevelopmentofnewrenewableenergysystems,whileat thesametimealsoensuringthattherearenotsignificantbarrierstoparticipationbyinterestedhouseholdsandbusinesses.

Byholdingasetofprocurementeventsoveraperiodoftime,theplanallowsforthemarkettoexpandinameasuredmanner, avoiding some ofhelping avoid the boom/bust cycle that has been seen in otherstates’PVprocurements.Inthesamemanner,theIPAisprovidingamodelthatwillallowacombinationoftypesofresourcesinvariousstagesofprojectdevelopmenttoparticipate.Itwillalsoallowthemarketto help develop the model of aggregator for Illinois. These measures will help reduce barriers toparticipation.

ThephotovoltaicmarketinIllinoisisadevelopingmarket.Thisplancannotaddressalltheneedsofthemarket,orovercomeallof thebarriers.What thisplandoesdo isset intomotionaseriesofevents inwhichthe$30millionfromtheRenewableEnergyResourcesFundisfullyusedtopurchasephotovoltaicRECs,andthatwillprovideatemplateandlearningopportunityfortheongoingdevelopmentoffuturelonger‐termplanstosupportthedevelopmentofsolarresourcesinIllinois.


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2 LegislativeandRegulatoryOverview

The IPA’s supplemental PV procurement plan calls for the Agency to spend up to $30 million from theRenewableEnergyResourcesFundontheprocurementofrenewableenergycreditsfromsolarphotovoltaics.BelowisanoverviewoftheRenewableEnergyResourcesFund,newSection1‐56(i)oftheIPAAct,andotherlegislativeandregulatoryprovisionsgoverningtheAgency’sproposedsupplementalPVprocurement.

2.1 RenewableEnergyResourcesFund

Section 1‐56 of the Illinois Power Agency Act creates the Renewable Energy Resources Fund (“RERF”), aspecial fund in the IllinoisStateTreasuryadministeredby the IllinoisPowerAgency toprocurerenewableenergyresources.2

The RERF is funded through payments made by Alternative Retail Electric Suppliers (“ARES”) to satisfystatutory renewable energy resource procurement obligations manifest underin Section 16‐115D of thePublicUtilitiesAct.3 TheRERFdoesnot consistofpaymentsmadeby customers taking supply fromtheirelectric utility. Instead, to support renewable energy resource procurement, those customers are billed asurcharge for renewable energy procurement. Monies collected pursuant to that surcharge comprise therenewableresourcesbudget–separateanddistinctfromtheRERF–forthatutilitytomeettheutility’sstaterenewableenergyportfoliostandardobligations.4Alternatively,forcustomerstakingsupplyfromanARES,theARESisresponsibleformakinganalternativecompliancepaymentfornolessthan50%ofitscomplianceobligation,5 with its payment rate determined by results from the procurement of renewable energyresources using the renewable resources budget.6 These alternative compliance payments (“ACPs”) aregenerallymade in conjunctionwith anARES’s self‐procurement of the remainder of its renewable energyresourceobligationtomeetcompliancewithstate’srenewableenergyportfoliostandard.7

ThebalanceoftheRERFisafunctionofACPsmadebyalternativesuppliersintothefundandwithdrawalsmade by the IPA in connection with the procurement of renewable energy resources. As more utilitycustomershavemigrated to alternative suppliers, primarily throughmunicipal aggregation, the balanceofthe utilities’ renewable resources budgets has dwindled significantly while the balance of the RERF hasgrown considerably. Due to constraints on spending the RERF, some of which are outlined below, theprocurementofrenewableenergyresourcesusingtheRERFhasnotkeptpacewiththerapidescalationofpaymentsmadeintothefund,resultinginatotalbalanceof$128,358,022.71inthefundasofSeptember29,2014.8587,887.83.

2.1.1 ConstraintsonSpendingtheRERF

The procurement of renewable energy resources using theRERF is subject to a set of unique constraints.First,unlikewiththeutilityrenewableresourcesbudgets,theRERFmayonlybeusedtoprocurerenewableenergycredits. Whiletheterm“renewableenergyresources”isdefinedintheIllinoisPowerAgencyActasRECsorbothRECsrenewableenergyandassociatedrenewableenergyRECs,9 thePublicUtilitiesActmakes

220ILCS3855/1‐56(a).3220ILCS5/16‐115D(d)(4).420ILCS3855/1‐75(dc).TheAgency’sproposalsforprocuringrenewableenergyresourcesusingtherenewableresourcesbudget,aswellasaproposalforprocuringrenewableenergyresourcesusingACPfundscollectedfromhourlyservicecustomers(alsoseparateanddistinctfromtheRERF),areaddressedintheIPA2015ProcurementPlanfiledwiththeIllinoisCommerceCommissiononSeptember29,2014.ApprovalofthisPlaniscurrentlybeinglitigatedbeforetheCommissioninDocketNo.14‐0588.5220ILCS5/16‐115D(b).6220ILCS5/16‐115D(d)(1).7Inpastyears,thevastmajorityofAREShavechosentopaynomorethantheminimumpercentage(50%)inalternativecompliancepayments,relyingonself‐procurementfortheremainder.8CollectedbytheICCasofSeptember29,2014.TheIPAexpectsanadditional$205,854.83tobereceivedfromARESwhohavenotpaidtheirrequiredACPsinatimelymanner.920ILCS3855/1‐10.


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clear that “alternativecompliancepayments . . . shallbedeposited in the IllinoisPowerAgencyRenewableEnergyResourcesFundandusedtoprocurerenewableenergycredits.”10

Second, Section 1‐56(c) of the IPA Act calls on the IPA to use the RERF to “procure renewable energyresourcesat leastonceeachyear inconjunctionwithaprocurementevent forelectricutilitiesrequired tocomply with Section 1‐75 of the Act.”11 Given the IPA’s strategy of advance purchases to hedge loadrequirements and the unexpectedly high levels of migration to alternative retail electric suppliers,correspondingenergyprocurementeventsforelectricutilitieshadnotoccurredsince2012.12 ThishaslefttheAgencywithoutaprocurementevent“inconjunctionwith”whichitcouldprocureRECsusingtheRERF.

Third,Section1‐56(d)oftheIPAActrequiresthat“thepricepaidtoprocurerenewableenergycredits”usingthe RERF “shall not exceed the winning bid prices paid for like resources procured for electric utilitiesrequiredtocomplywithSection1‐75ofthisAct.”13Thelackofaconjoiningprocurementeventhasalsoleftthe Agency without a statutorily envisioned price ceiling for “like resources,” further constrainingprocurementusingtheRERF.

Fourth,theIPAActclearlyarticulatesapreferenceforlonger‐termcontractsusingtheRERF,presumablytoprovideastablestreamofrevenuenecessarytoincentthedevelopmentofnewresources.Section1‐56(c)oftheIPAActcallsfortheAgencyto,“wheneverpossible,enterintolong‐termcontractsonanannualbasisforaportionoftheincrementalrequirementforthegivenprocurementyear.”14Similarly,Section1‐56(b)oftheActrequiresthatanycontracts forresources fromdistributedgeneration(“DG”)mustrunaminimumof5years.15Butduetounsettledanddynamicloadmigrationbetweenutilityandalternativesupplierservice,theAgencymustapproachlong‐termcontractingwithprudenceandcare,astheRERF’sfuturebalanceissubjecttothewhimsoffuturecustomerswitching.16

Fifth,Section1‐56(b)oftheIPAActcontainsdelineatedtargetsfortheprocurementofRECsfromspecifiedtypesofgeneration:atleast75%ofRECsprocuredmustcomefromwindgeneration;atleast6%fromsolarphotovoltaics; and at least 1% from DG.17 As a result, even assuming other statutory constraints wereaddressedand theAgency felt confident in itsprojected futurebudget, it isunclearwhether the IPAcouldsimplyconducta“solarprocurement”eventatscaleinisolation.

TheAgencylooksforwardtoworkingwiththeIllinoisGeneralAssemblytoaddresstheseconstraintsthroughasolutionthatallowsformorestreamlinedaccesstoRERFfunds.18

2.2 Section1‐56(i)oftheIPAAct

OnJune28,2014, IllinoisGovernorPatQuinnsignedinto lawIllinoisHouseBill2427. Thebill,whichhadpassedtheSenate56‐0andpassed97‐10‐1intheHouse,becamePublicAct98‐0672andcreatednewSection1‐56(i)oftheIllinoisPowerAgencyAct.Section1‐56(i)callsontheIllinoisPowerAgencyto“developaone‐time supplemental procurementplan limited to theprocurementof renewable energy credits, if available,

10220ILCS5/16‐115D(d)(4).1120ILCS3855/1‐56(c).12Afternothavingprocuredenergyin2013,theAgencydidconductenergyprocurementsinApril2014andSeptember2014.1320ILCS3855/1‐56(d).1420ILCS3855/1‐56(c).1520ILCS3855/1‐56(b).16Forfurtherdiscussionofthechallengesassociatedwithenteringintolong‐termcontractsusingfundingstreamssubjecttoloadmigrationchanges,seefilingsmadeindocketsapprovingtheIPA’s2013and2014annualprocurementplans(DocketNos.12‐0544and13‐0546).1720ILCS3855/1‐56(b).18Oneareathathasnotproducedconstraintisa“sweep”oftheRERF—i.e.,thepermanentdiversionofRERFfundstosatisfyotherstatepurposes.Section1‐56(h)oftheIPAActexplicitlyprovidesthattheRERF“shallnotbesubjecttosweeps,administrativecharges,orchargebacks”resultingin“thetransferofanyfundsfromthisFund“or“havinganysuchfundsutilizedforanypurposeotherthantheexpresspurposessetforthinthisSection.”TheRERFwassubjecttoborrowingandrepaymentofaportionofitsfundbalancein2010‐2011,however.


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from new or existing photovoltaics, including, but not limited to, distributed photovoltaic generation”throughby“usingupto$30,000,000”fromtheRERF.

Mindfuloftheconstraintsoutlinedabove,thelawspecificallystatesthatthesupplementalPVprocurement“shallnotbesubject tothe limitationsofsubsections(c)and(d)ofthissection”19andthat“nothing inthissubsection (i) requires procurement of wind generation through the supplemental procurement.”20Additionally,while theRERF is administeredby the IPAandnot subject to IllinoisCommerceCommissionjurisdiction,21 Section 1‐56(i) calls for the IPA’s supplemental PV procurement plan to be reviewed andapprovedbytheICCandfortheAgency’srenewableenergyresourceprocurementresultstobeapprovedbytheCommissionaswell.22

Key requirements of new Section 1‐56(i) governing the IPA’s planned supplemental PV procurement areoutlinedbelow.

2.2.1 Timeline,Feedback,ContractDevelopment,andProcurementEvents

Section1‐56(i) creates a simple, straightforward timeline for thedevelopment, filing, and approval of thissupplementalPVprocurementplan.TheIllinoisPowerAgencyistaskedwithdevelopingitsPlan“within90days of the effective date” of Public Act 98‐0672.23 As the effective date of the Act is June 30, 2014, theAgency’sdraftsupplementalPVprocurementplaniswasrequiredtobedevelopedandpostedforcommentandreviewbySeptember29,2014.

Indeveloping itsplan, theAgencywas required to “holdat leastoneworkshopopen to thepublic”and to“consider any comments made by stakeholders or the public.”24 The Agency held its workshop on thedevelopment of this plan on August 7, 2014, from 10:00 a.m. to 3:00 p.m. A list of organizationalparticipantsparticipating entities and a summary of comments made at the workshop are contained inAppendix6.1.Inpreparingthisplan,theAgencyhasalsoendeavoredtootherwiseaccountforcommentsbystakeholderandthepublic,andappreciatestheinputreceived.

Afterthisthedraftplanhasbeenwasposted,”allforcommentonSeptember29,2014,interestedpartiesshallhavehad 14 days following the date of posting “to provide comment to the Agency on the supplementalprocurementplan.”25AsOctober13,2014iswasastateholiday,commentsonthisthedraftPlanareweredueto the CommissionAgency on Tuesday October 14, 2014. All Section 1‐56(i) directs that all commentsshouldweretobe“specific,supportedbydataorotherdetailedanalyses,and,ifobjectingtoalloraportionofthesupplementalprocurementplan,accompaniedbyspecificalternativewordingorproposals,”andall.”26TheAgencyreceivedninesetsofcommentswillbe,27andthesecommentswerepostedtoandareavailableon the IllinoisPowerAgency’swebsite.28 Asummaryof thosecomments is included inAppendix6.1.4andCommission’swebsites.29.

Within 14 days after the receipt of comments, (October 28, 2014), the Agency iswas required to file itsrevised plan with the Illinois Commerce Commission for approval. This leaves October 28, 2014 as theAgency’sfilingdeadline.Partiesseekingtointerveneandprovidecommentintheapprovalproceedingmust

1920ILCS3855/1‐56(i)(8).2020ILCS3855/1‐56(i)(1).21See20 ICLS3855/1‐56(b);DocketNo.12‐0544,FinalOrderdatedDecember19,2012at113(“[I]t is clear theCommissionhasnoauthorityoverdisbursementsfromtheRERFcollectedonbehalfofAREScustomers.”).22Seegenerally20ILCS3855/1‐56(i).2320ILCS3855/1‐56(i)(1).24Id.25Id.26Id.27PartiesofferingcommentsbytheOctober14,2014deadlineincludeComEd,ElevateEnergy,ELPC/CityofChicago,ExelonGeneration,ICCStaff,IllinoisSolarEnergyAssociation,SierraClub,SRECTrade,andWanxiangNewEnergy.28http://www.illinois.gov/ipa/Pages/DraftSupplementalProcurementPlanComments2015.aspx29Id.


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abidebytheIllinoisCommerceCommission’sRulesofPractice,whichmaybefoundinTitle83,Part200ofthe Illinois Administrative Code. Should a party seek to intervene in the Commission’s supplemental PVprocurement plan consideration and approval process, “any person objecting to the supplementalprocurementplan shall file anobjectionwith theCommission”within5days after thePlan is filed.30 ThisprocessmirrorsBecause5businessdaysafterOctober28,2014fallsonastateholiday(November4,2014–ElectionDay), theAgency’sannualenergyprocurementplan litigation,31and theAgencynotes thatpartiesseeking to intervene in thismatter are required to file “an objection” with the Commission regardless ofwhether they have identifieddeadline for filing objections to the content of the plan. in this proceeding isNovember5,2014.ThedeadlinesforotherfilingswillbedeterminedbytheCommission’sadministrativelawjudgeinthedaysafterinitiationoftheproceeding.

Within90daysafterthePlanisfiled,theIllinoisCommerceCommission“shallenteritsorderconfirmingormodifyingthesupplementalprocurementplan.”32AssumingtheIPAfilesitsPlanonOctober28th,thiswouldleaveThisleavestheIllinoisCommerceCommissionwithaJanuary26,2015deadlinefortheissuanceofitsOrder.33

AfterSometime after the ICC has entered its Order approving (or approving with modification) thesupplemental PV procurement plan, the IPA’s procurement administrator will begin the process ofdevelopingstandardcontractformsforRECsuppliercontracts.34 Thisprocessoccurs“inconsultationwiththe Agency, the Commission, and other interested parties and subject to Commission oversight.”35 Thesecontracts must “meet generally accepted industry practices” and “include any applicable State of IllinoistermsandconditionsthatarerequiredforcontractsenteredintobyanagencyoftheStateofIllinois.”36 ApreliminarysetofapplicablestatetermsandconditionsisincludedinAppendix6.3.Draftcontractformswillbe made available for comment, with disputed terms and conditions brought to the Commission forresolution.37

Section1‐56(i)doesnotaddressthetimelinegoverninganyprocurementevent(s),nordoesitrequirethatallresourcesprocuredpursuanttothePlanbeprocuredinasingleprocurementevent.38TheAgencydiscussesits proposed timeline for procurement, as well as its proposed staging of procurement events and thedevelopmentofacontingencyprocurementevent,inSection5.2.5.

2.2.2 ProductstobeProcured

Section 1‐56(i) requires the procurement of “renewable energy credits, if available, from new or existingphotovoltaics,including,butnotlimitedto,distributedgeneration.”TheActdoesnotdefinetheterms“new”and“existing,”leavingtheAgencytocreateaworkabledefinition.TheAgencyunderstandstheAct’s“neworexisting”languagetoallowfortheprocurementofRECsfromexclusivelynewresources,exclusivelyexistingresources,oranybalancebetweenthetwocategoriesat theAgency’sdiscretion. Furtherdiscussionofthe

3020ILCS3855/1‐56(i)(2).20ILCS3855/1‐56(i)(2).ThisprocessmirrorstheAgency’sannualenergyprocurementplanlitigation;forfurtherreference,seefilingsmadeinDocketNo.14‐0588usingtheIllinoisCommerceCommission’se‐Docketwebportal.31Forexamplesofhowaparty’s“objection”ispostured,seegenerallyDocketNo.13‐0546,DocketNo.12‐0544,andotherdocketsapprovingtheICC’sannualprocurementplan.3220ILCS3855/1‐56(i)(2).33ThelastscheduledmeetingoftheIllinoisCommerceCommissionpriortothisdeadlineisaJanuary21,2015RegularOpenMeetinginChicago.3420ILCS3855/1‐56(i)(4)(D).35Id.36Id.37Section1‐56(i)(4)(D)providesthat“iftheprocurementadministratorcannotreachagreementwiththepartiesastothecontracttermsandconditions,theprocurementadministratormustnotifytheCommissionofanydisputedtermsandtheCommissionshallresolvethedispute.”(emphasisadded)Aspartiestocontractswillnotbeestablisheduntilafterprocurementevents(whichnecessarilytakeplacesubsequenttothedevelopmentofcontractterms),theAgencyunderstandsthe“parties”inthiscontexttorefertotheAgency,ICCStaff,andtheProcurementMonitor.ThisreadingisconsistentwiththeresolutionofdisputesforcontracttermsanddisputesinotherIPAprocurementprocesses.38Indeed,subsectionsofthelawreferencetheplural“procurementevents.”See,e.g.,1‐56(i)(4)(B)(iii).


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Agency’sapplicationof this language indeveloping itsPlan, includinghow ithas chosen todefinea “new”system,canbefoundinSection3.1.

TheprocurementofRECsfrom“new”systemscarriesauniquerequirement–theprocurementofRECsfroma“new”photovoltaicdevicemustbefromadeviceinstalledbya“qualifiedperson.”AsdetailedinSection1‐56(i)(1), a “qualified person” must meet specified training requirements and must perform the “majoractivitiesandactions”involvedintheinstallation.39

The Agency is tasked with establishing “contractually enforceable mechanisms” to ensure that RECspurchased from“new”systemsare fromonly systems installedbya “qualifiedperson.”40 While theactualdevelopment of contracts will occur after approval of this Plan, the Agency’s proposed “contractuallyenforceablemechanisms”canbefoundinSection4.4.

TheAgencyunderstandstherequirementthatitprocureRECsfromphotovoltaics“including,butnotlimitedto,distributedgeneration”asastatutorymandatethat,atleastaminimum,someamountofRECsfromDGbeincludedinthisprocurement.Agenerationsourceisconsidereda“distributedrenewableenergygenerationdevice”undertheIPAActifitis:

Poweredbywind,solarthermalenergy,photovoltaiccellsandpanels,biodiesel,cropsanduntreatedandunadulteratedorganicwastebiomass,treewaste,andhydropowerthatdoesnotinvolvenewconstructionorsignificantexpansionofhydropowerdams;

Interconnectedatthedistributionsystemlevelofeitheranelectricutility,alternativeretailelectricsupplier,municipalutility,oraruralelectriccooperative;41

Locatedonthecustomersideofthecustomer’selectricmeterandisprimarilyusedtooffsetthatcustomer’selectricityload;andis

Limitedinnameplatecapacitytonomorethan2,000kW.42

Thelawfurtherprovidesthat“[t]otheextentavailable,”halfoftherenewableenergycreditsprocuredfromdistributed renewable energy generation “shall come from devices of less than 25 kW in nameplatecapacity.”43TheAgencynotesthatunliketheresource‐specificcarve‐outsapplicabletotheRERFandfoundin thestate’srenewableportfoliostandard,44 thisrequirementcreatesa targetof50%andnotaminimumrequiredpercentage.45Additionally,theownerofaparticipatingDGsystem“shallhavetheabilitytomeasurethe output of his or her distributed renewable energy generation device.”46 The Agency understands thisrequirementtocallforautility‐gradeelectricmeteronanyDGsystemfromwhichRECsareprocured.

Contracts for RECs from DG resources must be at least 5 years in length.47 To minimize administrativeburdens, the law allows the Agency to “solicit the use of third parties to aggregate distributed renewableenergy.”48 Theseaggregatorsact as counterpartieswith theAgency ina contract for thedeliveryofRECs,while maintaining contracts with system owners granting them transferrable rights to RECs. FurtherdiscussionoftheroleofaggregatorscanbefoundinSection4.6.

39See20ILCS3855/1‐56(i)(1)forfurtherdetailon“activitiesandactions.”40Id.41Tracingthesedefinitionsinthelawbacktotheirstatutorysourcesrevealsthateachmustbe“inthestate,”meaningthatonlydistributedgenerationresourcesfromwithinIllinoisareeligible.4220ILCS3855/1‐10.4320ILCS3855/1‐56(i)(1).44See20ILCS38551‐56(b)(“OftherenewableenergyresourcesprocuredpursuanttothisSectionatleastthefollowingspecifiedpercentagesshallcomefrom...”)(emphasisadded);20ILCS38551‐75(c)(1)(samelanguage).4520ILCS3855/1‐56(i)(1)(“[T]otheextentavailable,50%oftherenewableenergycreditsprocuredfromdistributedrenewableenergygenerationshallcomefrom...”).4620ILCS3855/1‐56(i)(1).47Id.48Id.


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2.2.3 ProcurementProcess

As referenced above, the IPA may retain a procurement administrator to conduct its supplemental PVprocurement. The Agency has chosen to retain NERA Economic Consulting, the IPA’s procurementadministratorforprocurementeventsconductedpursuanttoitsannualprocurementsprocurementplans,fortheSolarsolarREC(“SREC”)procurementsconductedunderitssupplementalPVprocurementplan.

The Agency’s procurement administrator is required to “disseminate information to potential bidders topromoteaprocurementevent,notifypotentialbiddersthattheprocurementadministratormayenterintoapost‐bidpricenegotiationwithbiddersthatmeettheapplicablebenchmarks,providesupplyrequirements,and otherwise explain the competitive procurement process,” including publication of the procurementevent.49Theprocurementadministrator shall also “designand issue requests forproposals” inaccordancewith the approved supplemental PV procurement plan.50 The Agency’s expected timeline for biddernotificationofaprocurementeventisdiscussedfurtherinSection5.1.

Section1‐56(i)requirestheprocurementitselftobeconductedusing“sealed,bindingcommitmentbiddingwith pay‐as‐bid settlement, and provision for selection of bids on the basis of price.”51 This requirementrestricts the Agency’s ability to develop a fixed‐price standard offer, a feature that some workshopcommenters believedbelieve would carry value to promote participation from small systems. Given thecorrespondingrequirementthattheIPAprocurehalf50%ofitsDGRECsfromsystemsbelow25kWinsize,theIPAbelievesthatthisrequirementandtherequirementforthe“selectionofbidsonthebasisofprice”canbeproperlybalancedbyprocuringonthebasisofpricewithineachindividualmarketsegment(sub‐25kW25kW,and25kW25kWto2MW),)—i.e.,selectingthenextmostcompetitivebidwithinamarketsegmentwhenthat segment represents below half of the expected DG RECs to be delivered (to the extent such a bid isavailable).)aspartofasingleprocurement.ThismeansthataRECsfromsub‐25kW25kWsystemfeaturingahigherbidpricecanbeselectedaheadofanabove‐25kWRECsfroma25kWto2MWsystemwithfeaturingalowerbidprice,butonlyifthatselectionisnecessarytoreachthetarget50%ofDGRECsfromsub‐25kW25kWsystems.BiddersmaynotdesignatedifferentRECpricesfortheRECsgeneratedfromasingledistributedgeneration system, and in order to meet the budget, the marginal bidder in the evaluation of bids couldreceiveacontractforonlyaportionofRECsfromasinglesystemandwillhavetheoptionofwhetherornottoacceptthataward.AsimilarmethodhasbeenusedbytheIPAanditsprocurementadministratortoselectwind resources to satisfy the 75% target in past renewable energy resources procurement events underSection1‐75oftheIPAAct.

All winning bidsmust also be below “benchmarks” developed “for each product procured.”52 As the IPAunderstands the sub‐25 kWmarket to be a distinct “product” for purposes of this procurement, separatebenchmarksdistinctbenchmarkpriceswillbedevelopedforsystemsbelow25kWinsizeandfrom25kWto2MWinsize.

Within2daysafteraprocurementeventfeaturing“sealed,bindingcommitmentbidding”withwinningbidsselected “on the basis of price,” reports on the procurement event are submitted by the procurementadministrator and theCommission’sprocurementmonitor to theCommission for review.53 These reportscontain bidding results and a recommendation for the rejection or acceptance of bids.54 The Commissionissues adecisiononwhether to acceptor reject theprocurement resultswithin2daysafter receiving thereports.55

4920ILCS3855/1‐56(i)(4).5020ILCS3855/1‐56(i)(4)(E).51Id.5220ILCS3855/1‐56(i)(4)(F);1‐56(i)(5).5320ILCS3855/1‐56(i)(5).54Id.55Id.


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Within3daysaftertheCommission’sdecision,“theAgencyshallenterintobindingcontractualarrangementswiththewinningsuppliersusingthestandardformcontracts.”56 Totheextentnotaddressedelsewhereinthisplan,thepaymentanddeliveryschedulesunderthosecontractswillbecontemplatedinthelitigationofthisplananddevelopedduringthecontractformdevelopmentprocessaftertheplan’sapproval.

2.2.4 GoverningStandard

In developing its plan, Section 1‐56(i) requires the Agency to develop a plan that “shall ensure adequate,reliable, affordable, efficient, and environmentally sustainable renewable energy resources (includingcredits)atthelowesttotalcostovertime,takingintoaccountanybenefitsofpricestability.”57 TheAgencydoesnot,however,understandthelowest“cost”tonecessarilymeanstructuringthechoiceofproductssoastodrive the lowestpossibleRECprice.TheAgencybelieves that a contract for thepurchaseof renewableenergy credits to assist in developing new generation carries more significant value than a contract topurchasetherenewableenergycreditsoffasystemalreadybuiltandfinanced.

Further,thedevelopmentofnewsystemsmaycontributesignificantlytoensuringthe“lowesttotalcostovertime”bydevelopinggeneratingresourceswhoseoutputmayassistwithfutureyears’RPScompliance.Thisisparticularly true given that the renewable portfolio standard targets of Section 1‐75(c)(1) of the IPA Actescalateannuallyuntil2025,andthatbothSections1‐56and1‐75oftheIPAActarticulateapreferenceforresourcesfromfacilitieslocatedinIllinoisand/oradjoiningstates.

TheAgencyhasdevelopeditsplaninformedbythisapproach,andnotesthatunderSection1‐56(i)(3),thissameasimilarlegalstandardgovernstheCommission’sreviewandapprovalofitsplan.58

2.3 OtherProvisions

Inadditiontothe lawsandregulationsgoverningtheIPA’ssupplementalPVprocurement,additional laws,regulations,andprogramsintersectingwiththesupplementalPVprocurementprocessareoutlinedbelow.

2.3.1 NetMetering

Assetforthabove,theIPAisauthorizedtousetheRERFforthepurchaseofrenewableenergycredits,59andnotforthepurchaseofenergy.Inadditiontoon‐siteuse,onewayinwhichownersofphotovoltaicsystemsqualifyingasDGmayreceivevalueforenergygeneratedisthroughnetmetering.

Under Illinois law, “net metering” refers to “the measurement, during the billing period applicable to aneligible customer, of the net amount of electricity supplied by an electricity provider to the customer'spremisesorprovidedtotheelectricityproviderbythecustomer.”60Throughnetmetering,customersreceivecreditforelectricitygeneratedusingaphotovoltaicsystembutnotusedbythecustomer.Ifthephotovoltaicsystem produces more energy than the customer uses, net metering allows the customer to deliver thatenergy to the electric grid to financially offset the customer’s net consumption at other times (when thecustomerusesmorethanthephotovoltaicsystemproduces).

Netmeteringprogramsareprovidedbythesystemowner’selectricityprovider,whichmaybethecustomer’selectricutilityoralternativeretailelectricsupplier.61 Systemsupto2MWinsizemayparticipate in theirelectricity provider’s net metering program, although the level of value received varies based on thecustomer’srateclassification(a functionof thecustomer’sstatus–residential,commercial,etc.–andpeak

5620ILCS3855/1‐56(i)(6).5720ILCS3855/1‐56(i)(1).5820ILCS3855/1‐56(i)(3).59TheAgencymayalsorecoverprocurement‐relatedadministrativeexpensesusingtheRERF.See20ILCS3855/1‐56(i)(9);83Ill.Admin.Code1200.220(e).60220ILCS5/16‐107.5(b).6183Ill.Admin.Code465.5.


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loadsize).62Forcustomersinrateclassesthathavenotyetbeendeemedcompetitive(primarilyresidentialandsmallcommercialcustomers), thesecustomersmayreceivenetmeteringcreditcalculatedat theretailelectricrate. Becauseitalsorecoversthecostsofthetransmissionanddistributionsystems,theretailrateexceedsthecommodityvalueoftheelectricityproduced,providingmorevaluebacktoasystemownerforenergyproduction.

While system owners may see value in participating in net metering, a distributed photovoltaic systemowner’sparticipation inanetmeteringprogramisnotrequiredforthatsystem’sparticipation intheIPA’ssupplementalPVprocurementprocess.

2.3.2 Interconnection

Section1‐56(i)oftheIPAActissilentonthetopicofinterconnection.However,asdiscussedinSection2.2.2,distributedphotovoltaicsystemsmustbebehindthemeterofaregulatedutility,municipalutility,orruralelectriccooperative locatedwithinIllinois.DGsystemsinterconnectingwitharegulatedutilitymustfollowtheinterconnectionrequirementsoutlinedinTitle83,Parts466and467oftheIllinoisAdministrativeCode,63whichinpartrequiresDGsystemownerstosubmitaninterconnectionrequestwiththeelectricdistributioncompanywithwhichthesystemintendstointerconnect.64

For systemsgovernedbyParts466and467, all systemowners shoulduse interconnection request formsapprovedbytheCommissionandareresponsibleforallapplicablefeestotheapplicableelectricdistributioncompany.Forsystemsinterconnectingwithamunicipalutilityorruralelectriccooperative,systemownersshouldfollowthatentity’sspecificinterconnectionrequirementsandprocess.

2.3.3 InstallerCertification

Asdescribedabove, theAgency’sa statutory requirementof theAgency’s supplementalPVprocurement isthat any “new” photovoltaic system fromwhich the IPA procures RECs must be installed by a “qualifiedperson.” Thecriteriaforqualificationasa“qualifiedperson”aresetforthindetailinSection1‐56(i)oftheIPAAct.

TheIPAwishestopointoutthatthe“qualifiedperson”criteriaoutlinedinSection1‐56(i)isdistinctfrom,andarguably stronger than, the DG installer certification rules found in Title 83, Part 468 of the IllinoisAdministrativeCode(whichalsocontaina“qualifiedperson”definition).65ByoperatinginIllinois,installersof distributedphotovoltaic systemsparticipating in this procurement are still subject to theCommission’scertificationrequirementsasmanifestinTitle83,Part468oftheAdministrativeCodeandSection16‐128AofthePublicUtilitiesAct.

AlistofcertifiedDGinstallerscanbefoundontheIllinoisCommerceCommission’swebsiteatthefollowinglink:http://www.icc.illinois.gov/utility/Certified.aspx?type=24.

2.3.4 Grants,Incentives,andTaxCredits

Systemsthatparticipate—orhaveparticipated—ingrant,incentive,rebate,ortaxcreditprogramsmaystillqualifyforparticipationintheAgency’ssupplementalPVprocurementsolongasthatparticipationdoesnotincludethesaleorassignmentofRECs.Infact,theAgencyencouragesparticipationinalternativeprograms.Grant, incentive, rebate, or tax credit programs help lower the installed capital costs of a DG system, andthereby potentially lower the price that system owners or aggregators will bid into the supplemental PV

62Id.63Part466appliestoDGsystemswithanameplatecapacity“equaltoorlessthan10MVA,”whilePart467appliestofacilitieswithanameplatecapacity“greaterthan10MVA(largedistributedgenerationfacility).”Most(ifnotall)systemspotentiallyparticipatinginthisprocurementandsubjecttotheICC’sinterconnectionrulesfallunderPart466.64NotethatproposedamendmentstotheserulesarecurrentlythesubjecttoanopenproceedingbeforetheIllinoisCommerceCommission.SeegenerallyDocketNo.14‐0135.6583Ill.Admin.Code468.20.


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procurement.ThisisconsistentwiththeSection1‐56(i)goalofprocuringthelowesttotalcostresourcesovertime.

Forexample,theFederalSolarInvestmentTaxCredit(“ITC”)currentlyprovidesa30percenttaxcredit forsolarsystemsonresidentialandcommercialproperties.Thistaxcreditisscheduledtodecreaseto10percentin 2017. Since the tax credit that an owner of distributed solar generation would receive is not for theprocurement of RECs, owners that take advantage of the ITC remain eligible for the SupplementalProcurement.66

The Illinois Department of Commerce and Economic Opportunity (“DCEO”) offers two programs whichprovideadditionalincentivesfordistributedsolarsystems.DCEO’sSolarandWindEnergyRebateProgramencouragesutilizationofsmaller‐scaledistributedsolarandwindenergysystemsinIllinoisthroughprojectrebates.Forphotovoltaicsystems,therebatesarecappedasfollows:

Residentialapplications:$1.50/wattor25%ofprojectcosts. Commercialapplications:$1.25/wattor25%ofprojectcosts. Not‐for‐profitsandpublicapplications:$2.50/wattor40%ofprojectcosts.

Themaximumprojectrebateis$10,000forhomeowners,$20,000forcommercialinstallations,and$30,000forpublicsectorandnon‐profitentities.ThisprogramfeaturesanearlyOctoberapplicationdeadline.67

Tosupportthedevelopmentandimplementationoflarger‐scaledistributedsolarthermal,solarphotovoltaic,and wind energy systems in Illinois, DCEO also administers a Large Distributed Solar and Wind GrantProgram.Forphotovoltaicsystems,rebatesarecappedasfollows:

Forcommercialapplications:$1.25/wattor25%ofprojectcosts. Fornot‐for‐profitsandpublicsectorapplications:$2.50/wattor40%ofprojectcosts.

Themaximumgrantawardis$250,000,andtheIllinoisEnergyOfficehasallocatedabudgetofapproximately$2,500,000tothisprogram.ThisprogramfeaturesacompetitivesolicitationprocesswithapplicationsduetoDCEObymid‐October.68

ForbothDCEOprograms,participation is limitedto“customersofanelectricorgasutilitythat imposetheRenewableEnergyResourcesandCoalTechnologyDevelopmentAssistanceCharge.”69 Asneitherprograminvolvesthesale,transfer,orassignmentofthephotovoltaicsystem’srenewableenergycredits,participationineitherprogramiscompatiblewithparticipationintheIPA’ssupplementalPVprocurement.

66MoreinformationontheSolarInvestmentTaxCreditcanbefoundat:http://www.seia.org/policy/finance‐tax/solar‐investment‐tax‐credit67MoreinformationontheDCEOSolarandWindEnergyRebateProgramcanbefoundat:http://www.illinois.gov/dceo/whyillinois/KeyIndustries/Energy/Pages/01‐RERP.aspx.68MoreinformationontheDCEOLargeDistributedSolarandWindGrantProgramcanbefoundat:http://www.illinois.gov/dceo/whyillinois/KeyIndustries/Energy/Pages/01aCommunitySolar.aspx.69Afulllistofutilitiesimposingthischargecanbefoundintherebateprogramapplicationat:http://www.illinois.gov/dceo/whyillinois/KeyIndustries/Energy/Documents/FY15%20RERP%20Rebate%20Guidelines‐FINAL.doc.


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3 ProductstobeProcured

3.1 ResourceSelection

Section1‐56(i)oftheIllinoisPowerAgencyActprovides,inpart,asfollows:

(1)Within 90 days after the effective date of this amendatory Act of the 98th General Assembly, theAgencyshalldevelopaone‐timesupplementalprocurementplanlimitedtotheprocurementofrenewableenergycredits, ifavailable, fromneworexistingphotovoltaics, including,butnot limitedto,distributedphotovoltaicgeneration.

Bythis language,theGeneralAssemblyleavestwokeydecisionstotheAgencyindevelopingitsplan: first,determining the balance of resources between new and existing photovoltaic resources; and second,determining the appropriate balance of solarRECs procured betweenDG and utility‐scale generation (i.e.,photovoltaicsystemson theothersideof—i.e.,not “behind”—aregulatedutility,municipalutility,or ruralelectriccooperativemeter).

After reviewingreview and analysis of the optionsrelative value of all available to itoptions, the IPA hasdetermined that the supplemental PV procurementwill be for RECs from “new”DG photovoltaic systems,withthegoalthat“totheextentavailable”halfofDGRECsprocuredcomefromsystemsunder25kW.TheAgencybelievesthatbyfocusingonthedevelopmentof“new”photovoltaicsystems,itisbestpositionedtomeet the statutory goal of producing the “lowest total cost over time” andmaximize the value of pooledalternative compliance payments in the RERF.70 As discussed in Section 2.2.2, distributed photovoltaicsystemsmustbebehindthemeterofaregulatedutility,municipalutility,orruralelectriccooperativelocatedwithinIllinois.

Based upon input from stakeholders, the IPA believes that the funding available for this supplemental PVprocurement($30million)isinsufficienttocreatemeaningfulincentthedevelopmentofnewutilityscalePVsystems,andisthusbestusedtoincentthedevelopmentofnewPVDGsystems.Additionally,astheAgencyisnotentering intobundledREC/energycontractsorpowerpurchaseagreements through thisprocurement(andisstatutorilyprohibitedfrompurchasinganythingotherthanRECsusingtheRERF),REC‐onlycontractsbythemselvesmayprovideaninsufficientincentiveforthedevelopmentofnewutility‐scalegeneration.DGsystems,alternatively,mayreceivesufficientvalueforenergythroughbothon‐siteusageandnetmetering–which, coupled with REC contracts and other incentives (tax credits, grants/rebates, etc.), may drive thedevelopmentofnewsystemsandmaximizetheimpactofandvaluecreatedthroughfundscontributedtotheRERF.TheAgencynotesthat,duetothedefinitionofDGintheIPAAct,thesesystemswillbelocatedwithinIllinoisandthereforeprovidethemaximumeconomicdevelopmentvaluefortheState.

ForpurposesofthissupplementalPVprocurement,thesizeofasystemwillbedefinedasthenameplateDCratingofthephotovoltaicsystemonakWbasis.SystemsmustbeUnderwritersLaboratories(UL) listedorIntertek (ETL) listed. They must also include a utility‐grade meter for the tracking the output from thesystem.SystemsmustregisterwitheitherPJMEISGATSorM‐RETSfortheissuanceofRECs.

ThesupplementalPVprocurementwillconsistofthreeprocurementeventswithafourthcontingencyeventavailableifneeded.71ForthefirstprocurementeventpurposeofthissupplementalPVplan,asystemwillbeconsidered“new” if ithasbeenenergizedonoraftertheapprovaldateatwhichbidsaredue inof the first

70TheAgencynotesthat“existing”utilityscaleandDGphotovoltaicsystemsmayparticipateinitsproposedSRECprocurementusingrenewableresourcesbudgetfunds,and“existing”DGphotovoltaicsystemsmayparticipateinitsproposedDGprocurementusinghourlycustomerACPfunds.Bothproposals,includingtheprojectedbudgetforeachproposal,maybefoundintheIPA’s2015ProcurementPlanfiledwiththeIllinoisCommerceCommissiononSeptember29,2014.currentlybeinglitigatedinDocketNo.14‐0588.ThisisdiscussedfurtherinSection3.2below.71SeeSection5.1formoreinformationonthetimeline.


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procurementevent.72Forsubsequentevents,asystemwillbeconsidered“new”ifitwasenergizedonorafterthebiddateof theprecedingprocurementeventplan.Only “new” systemswillbeeligible toparticipate inprocurement events of this supplemental PV procurement, and all must comply with the installationprovisionsregardingtheuseof“qualifiedpersons”asdescribedbelowinSection4.4.73

Asdescribed inChapter5below, inevaluatingbids inprocurementevents, theprocurementadministratorwill apply a standard capacity factor to determine the number of RECs corresponding to a given systemsize. TheAs described further in Section 2.2.3, the bid evaluation will be conducted with the goal ofensuring that, to theextentavailable,at leasthalf theRECsprocuredare fromsystemsofunder25kW.Inaddition, inthefirstprocurementeventToincreasebreadthofparticipation,themaximumsizeofasystemqualified to supply RECs will be 500 kW. For the for the first procurement event. For subsequentprocurementevents,systemsmaybeupto2MW2MWinsize.

Fearing that intermediately‐sized systemsmay not be competitive with systems up to 2 MW in size in acompetitivelybidprocess,somecommenterssuggestedaneedtoaccommodateintermediately‐sizedsystemsthroughtheintroductionofaseparateprocurementsub‐category.74WhiletheIPAunderstandstheremaybedifferenteconomicconsiderations for intermediatesizedDGsystems than for largesystems, the IPA isnotconvincedatthistimethataseparateprocurementsub‐categoryisneeded.Additionally,theplainlanguageofSection1‐56(i)(1)supports—ifnotmandates—theprocurementofpotentiallymoreexpensiveRECsfromsub‐25kWsystemsthroughanexpressprocurementtargetforsystemsbelow25kWinsize.Noothersize‐based delineation ismade in the law. While the IPA does not believe it is precluded from introducing aseparately‐sized sub‐category, it is not directed to do so and does not believe a sufficiently compellingjustificationforpreferringRECsfrommid‐sizedsystemshasbeenoffered.75

WhiletheactualevaluationofbidswilluseonlytwocategoriesofDGsystems(aboveandbelow25KW,and25kW to2MW), the IPA recognizesdoes recognize that the25kW to2MWclassmaynotbe completelyhomogeneous. TheIPAwill trackthenumberofprojects invariouscategories(0‐25kW,25‐100kW,100‐500kW,500‐2,000kW)andreportthesepubliclytotheextentpossible.TheIPAwillusethisinformationinthedesignofitscontingencyprocurementeventandindesigningfutureprocurementeventsforDG.,whichmayincludeprocurementfromoneoftheseadditionalsubcategories.

The IPA believes that the priorities outlined in this supplemental PV procurement plan meet the goalsenvisionedbytheGeneralAssemblywhenitenactedPublicAct98‐0672,whichcreatedthenewSection1‐56(i)oftheIPAAct.AsshowninAppendix6.2,itisalsoconsistentwithmanyoftheprovisionsinotherstatesthatprocurephotovoltaicDGresources.ByfocusingonnewDGprojects,thissupplementalPVprocurementwillmaximizetheeconomicdevelopmentopportunitiesforIllinoiswhileatthesametimeensuringthatthereareopportunitiesforparticipationbyinterestedhouseholdsandbusinesses.

Byholdingasetofprocurementeventsoveraperiodoftime,theplanallowsforthemarkettoexpandinamoremeasuredmanner,avoidingsomeelementsofthe“boom/bustcycle”thathasbeenseeninotherstates’PVprocurements.Inthesamemanner,theIPAisprovidingamodelthatwillallowacombinationoftypesofresourcesinvariousstagesofprojectdevelopmenttoparticipate.

72AsdescribedinSection3.2,theIPAisalsoproposingaprocurementofDGRECsforComEdandAmerenthatdoesnotincludeadistinctionfor“new”systemsandwillthusallowforsystemsthatwillcommenceoperationbeforethedateofthefirstprocurementtohaveanopportunitytosellRECs.ShouldtheCommissionnotapprovetheDGprocurementforComEdandAmerentheIPArecommendsthedefinitionofnewtobeadjustedtothedateoftheapprovalofthissupplementalPVplan.73Asdescribedfurtherbelow,existingsystemsmayparticipateintheSRECanddistributedgenerationprocurementsproposedintheAgency’s2015annualProcurementPlan74Incommentsfiledonthedraftplan,ISEArecommendsa25kWto399kWprocurementsub‐category,ELPCrecommendsa25kWto200kWsub‐category,andtheSierraClubrecommendsa25kWto500kWsub‐category.75Additionally,itisunclearfromcommentshowamid‐sizedprocurementcategorywouldbeaccommodatedbytheIPA’scompetitivebidprocurementprocess.Conceptually,possiblemodelsincludeseparatebudgetsbysizecategory,separateRECprocurementtargetsbysizecategory,orsystemsizeappliedasapreferenceinsomeotherway.Nospecificapproachwasofferedbyanypartyincomments.


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Through the workshop process and in taking public comments, the Agency has received feedback that itshouldproceedmindfulof theneed toensurebroadparticipationandavoid inequities. This feedbackhasmanifested itself in a variety of proposals. from commenters. Among them include the following: specificcarve‐outs for models like community solar, which allow for broader ownership participation in solarsystems; geographic balancing of participating system locations; ensuring that some participating systemsare located in traditionally‐underserved low income areas (and, conversely, thatparticipating systems arenotexclusivelyfocusedinhighincomeareas);andtheneedforaprocurementmodelfocusedonsupportingIllinoisbusinessesandpanelmanufacturingratherthanlarge,out‐of‐state,“scaled”solarcompanies.

The IPA sympathizeswith the interest ofmanynon‐homeowners in supporting photovoltaic developmentthrough community solar development or other means, as well as in specific incentives for placing solargenerationonaffordablehousing.TheseconcernswereraisedincommentsontheSeptember29,2014draftSupplementalProcurementPlan,althoughnospecificalternativewordingorproposalsweresuggested.ThisSupplementalProcurementPlanisaimedatincentivizingtheinvestmentin,developmentof,andprovisionofsitesfor,distributedphotovoltaicgeneration.TheIPAbelievesthatcommunitysolarandotherprojecttypesare accommodated through theAgency’s competitiveprocurementprocess, but doesnot believe adequatejustificationhasbeenprovidedforspecialtreatmentthroughacarve‐out,set‐aside,orothermeans.

TheAgencyproceedswiththisprocurementsensitivetotheseconcernsconcernsontheneedtoensurebroadparticipationandavoidinequities.However,thephotovoltaicmarketinIllinoisisstillanascent,developingmarket.Thisplancannotaddressalltheneedsofthemarket,orovercomeallofthebarriers.Whatthisplancan—anddoes—do is set intomotiona seriesof events inwhich$30million from theRenewableEnergyResourcesFundisusedtothefullextentpossibletopurchasephotovoltaicRECs,throughameasured,open,and competitive process. Through this process, the Agency hopes to provide a template and learningopportunity for the ongoing development of future longer‐term plans to support sound, equitabledevelopmentofsolarresourcesinIllinois.

3.2 Interactionwith2015ProcurementPlan

ConcurrentwiththedevelopmentofthissupplementalPVprocurementplan,theIPAhasalsodevelopedits2015 Annual Procurement Plan for ComEd and Ameren Illinois. In that Plan, the IPA has proposed aSeptember 2015 DG procurement to assist ComEd and Ameren Illinois in meeting their currently unmetrequirementsundertheRenewablePortfolioStandardusingalternativecompliancepaymentscollectedfromthe utilities’ hourly service customers.76 Additionally, the Agency has proposed a one‐year SRECprocurementusingfundsaccumulatedintherenewableresourcebudget.77

The IPA believes that procurement of RECs from existing systems is better accomplished through thoseprocurement processes than through this supplemental PV procurement plan. The ability of existingresourcestoimmediatelydeliverRECstotheutilitieswithmoreimmediacy(andthusmoreexpedientlymeetstatutorycompliancetargets)makesexistingresourcesbettersuitedforthoseprocurements. Additionally,fortheIPA’sproposedDGprocurement,existingresourcesmaybemoreeasilyorganizedintoprocurementblocks sufficient to meet theSection 1‐75(c)’s statutory 1 MW aggregation block.78 The current pool ofexistingDGresourcesinIllinoisisnotlargeandtheIPAbelievesthatthetargetsfortheutilityprocurementsshouldbesufficienttoallowforparticipationformost,ifnotall,resourcesthatchosetoparticipate(subjectof course to their submitting bids at or below the procurement benchmark). The IPA’s proposed DGprocurementfortheutilitieswillrequiresystemstobeidentifiedpriortobiddingandtocommencedeliveryofRECsduringbythe2015‐startofthe2016‐2017deliveryyear.

76ThisproposalcanbefoundinSection8.3.1oftheIllinoisPowerAgency’s2015ProcurementPlan,filedwiththeIllinoisCommerceCommissiononSeptember29,2014.andcurrentlybeinglitigatedinDocketNo.14‐0588.Notably,thatprocurementisforRECsfromDGsystemsgenerally,andnotspecificallysolarphotovoltaics.77ThisproposalcanbefoundinSection8.1oftheIllinoisPowerAgency’s2015ProcurementPlan,filedwiththeIllinoisCommerceCommissiononSeptember29,2014.andcurrentlybeinglitigatedinDocketNo.14‐0588.7820ILCS3855/1‐75(c).Nocorrespondingsizerequirementforaggregatorsexistsunder20ILCS3855/1‐56(i).


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AsystemthatispartofasuccessfulbidinaprocurementeventheldpursuanttothisplanmaynotalsobepartofabidfortheutilityDGprocurement(andviceversa).Asystemthatthatispartofanunsuccessfulbidmaybidintheotherprocurementprocess.

3.3 ConvertingSystemkWSizeintoRECs

ThissupplementalPVprocurementplanisforthepurchaseofRECsfromphotovoltaicDGsystems.ContractswillbebaseduponthedeliveryofcertainquantitiesofRECsovera fiveyearperiodatapriceperRECsetthrough competitive sealed bids selected by price and an effort to balance system size. RECs that arepurchasedshallbecreatedinaccordancewiththeoperatingrulesorproceduresofeitherGATSorM‐RETs.AstheIPAActspecificallydiscussescategorizingsystemsthatprovideRECsbysystemsize,theIPAproposesthatastandardcapacityfactorbeusedforcalculatingthenumberofRECsthatwouldbeproducedoverthelife of the contract. Average capacity factors for photovoltaic DG systemsBased on feedback received inIllinoisarebetweenapproximately10.5%and14.5%.Thecommentson itsdraftsupplementalPVplan, theAgencyproposesastandardcapacityfactorof11.416%.

14.38%79forconvertingthedirectcurrentnameplatecapacityofaPVsystemintothenumberofRECsthatthesystemisexpectedtoproduce.Astandardcapacityfactorallowsforeaseofbidevaluationandreducestheadministrativeburdenonbiddersbylimitingtheparameterstheymustprovideforbidevaluation.Theselection of a standard capacity factor at or close to the lower end of the average range increases thelikelihoodthatthesystemsreceivinganawardwillbeabletoproducethenumberofRECsexpectedunderthe contract, and hence increases the likelihood that the $30,000,000 allocated for the supplemental PVprocurementplanwillbefullyspent.

The way inmanner by which the standard capacity factor is used to convert the nameplate capacity of asystem into theRECsbid into theprocurementevent canbe illustratedas follows. A10kW10kWsystemwouldbedeemedtoproduceabout10between12and13RECsperyear,or5063RECsduringthecontractterm(0.010MWx11.41614.38%x8760hoursx5years=about5063RECs).Thebidderofthat10kW10kWsystemwouldoffer5063RECsandwouldprovideabidprice in$/RECthatappliestoallof these63RECs.This way ofsystem for denominating bids is common in DG programs and should be familiar to industryparticipants.

As further described below, bids utilizing systems over 25 kW to 2MW in sizemust identify the specificsystemsaspartofthebid.Forsystemsbelow25kW,bidsmayincludespecificsystemsorblocksofRECsthatwill subsequently be converted into commitments for specific systems. This methodology will allow theprocurementadministratortoevaluateandbenchmarkbidsbaseduponapriceperREC.

Theentirefive‐yearRECoutputofasystemusingthestandardcapacityfactorabovemustbeincludedinabid.TheIPAwillnotacceptbidsforonlyaportionofthecapacityofalargersystem.Underthetermsofthecontract,titletoallRECsfromthesystemwillbetransferredtotheIPAuntilthesystembudgetisexhaustedoruntilthefiveyearshaveexpired,whichevercomesfirst.AsdescribedfurtherinSection4.1,theremaybean option for the purchase of additional RECs at the original bid price if funds are available. The entirecapacityofthesystemwillbeconsideredwhendeterminingtheeligibilityofasystemtoparticipateinagivenprocurementeventortoqualifyfortheunder25kWcategory.

79ThiscapacityfactorwasrecommendedbyISEAincommentsonthedraftplanandissupportedbytheiranalysisusingtheindustrystandardPVWattscalculatorthataveragedtypicalsystemoutputsatvariouslocationsinIllinois.


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4 ProcurementProvisions

4.1 KeyContractTerms

Contracts entered into fromwinning and approvedbidswill provide forpayment forRECs for a five yearperiodstartingatthetimeofthesystemenergizationdate(definedasthefirstmeterreadregisteredintheapplicable trackingsystem). RECsmustbedeliveredviaeithertheGATS80orM‐RETstrackingsystemandmustbetransferredtotheIPA’saccountpriortoinvoicing.TheIPAwillonlyretireRECsoncepaymenthasbeenmade. If foranyreasonthe IPA isunable topayforRECsdeliveredto it, the IPAwill return thethoseRECs to the seller. Invoiceswill be acceptedonaquarterlybasis and the IPAwill pay forRECsonlyupondeliveryandinvoice; itscontractswillnotfeaturepaymentspriortoRECdelivery(suchaspre‐paymentattheexecutionofacontractorwhenasystembecomesenergized).

ContractswillbeforuptotheamountofRECsbidawarded.TheIPA,atitsowndiscretionandbasedupontheavailabilityoffunds,willoffertopurchaseadditionalRECsfromsystemsthatdeliveralloftheircontractedRECspriortotheendofthefiveyearperiod.AnysuchofferwillbeatthesameRECpriceastheoriginalbidand,willhavetobeexecutedpriortotheenddateoftheoriginalcontract,andwillnotincludeanextensionoftimeforRECdeliveries.ShouldasystemdeliverfewerthanthecontractedquantityofRECsduringthefiveyear contractperiod, the IPAwill beundernoobligation to extend the contractpast the five year term inordertoallowforthelatedeliveryofremainingRECs.

FollowingtheprovisionsofSection1‐56(i)(4)(D),furtherdetailsregardingthecontractswillbedevelopedbytheprocurementadministratorinconsultationwiththeAgency,theCommission,andotherinterestedpartiesandsubjecttoCommissionoversight,afterthesupplementalPVprocurementplanisapprovedbytheICC.SeeSection5.2.2formoredetailsonthisprocess.

Contracts will also include a set of terms, conditions and certifications required by the State of Illinois.Appendix6.3 containsa sampleof theseprovisions,whichmaybe subject tomodificationbefore contractexecutionbasedonanychangesinstatelaw.

4.2 QualificationofSystemstoDeliverRECs

TheIPAwillcreatetwocategoriesofsystemseligibletoparticipateinprocurementevents.Thefirstcategoryis for systems under 25 kW, the second for systems between 25 kW and 2 MW. Different qualificationprocesseswillbeusedduetothemarketdifferences forthe twocategories. The IPAunderstandsthattheproject/customeracquisitionanddevelopmentprocessforsmallersystems,mostnotablyattheresidentialscale,isfundamentallydifferentfromtheprocessforlargersystems.Inordertoallowsufficientparticipationby developers of smaller systems (e.g., in the sub‐25 kW category), the IPA will accommodate bids thatinclude a forecast of REC volume to be provided by systems not yet developed at sites or hosts not yetidentified. This is described below as “speculative bidding,” or “speculative RECs”..” Information on thespecificinstallationswillnotberequiredatthetimeofbidding,thusallowingthespeculativebiddertimetoconvert thewinning bid quantities into concrete systems. However, a winning bidderwill be required toprovideconcreteinformationonactualsystemswithin6monthsoftheprocurementevent.Failuretodosowillresultintheforfeitureofthevolumeassociatedwithanyunidentifiedsystems,theassociateddepositwillbelost,andthebudgetedpaymentsforRECswillbesetasideforasubsequentprocurement.

Foroffersoflargersystems(over25kWandabove),theIPAdoesnotbelievesuchflexibilityisrequiredforthedevelopmentofphotovoltaicsystemssuitabletoparticipateintheproposedprocurementevents.Thus,forlargersystems,speculativebiddingwillnotbeallowed.

80GATSisthetrackingsystemadministeredbyPJM‐EIS,asubsidiaryofPJMInterconnection.


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4.2.1 Systemsunder25kW

AbiddermaybidtoprovideRECsfromsystemsunder25kWatauniformpriceperREC.BidsmayincludeRECsfromidentifiednewsystems,“speculative”bidsforaquantityofRECs,oracombinationofthetwo.Theminimumbidsizeshallbe500RECs(whichroughlyapproximatestotheRECoutputoftwentysixteen5kWsystems). In order tomaximize participation, the first procurement eventwill feature a bid limit of 5,000RECsperbidderofsystemsunder25kW.

Withinsixmonthsaftertheprocurementevent,awinningbiddermustprovideevidencetotheIPAthatallsystems associatedwith the awarded bid have been identified (including site, host, and customer, whereapplicable),andareontracktobegingenerationofRECsasofthedatestatedonthecontract.Evidencemayinclude, but is not limited to, letters of intent, signed contracts, installation certification, site data andinformation, system ownership information, local permit, interconnection application, and net meteringapplications. 81A biddermay request an extension of up to threemonths for demonstrated project delaysoutsidetheirreasonableprojectdevelopmentcontrol(i.e.,aneventofforcemajeure);thatextensionwillbegrantedonlyattheAgency’sdiscretion.

Fromthepointwherespecificsystemsareidentified,awinningbidderwillhave12monthstodemonstratetotheIPAthatthesystemhasbeencompletedandenergizedandregisteredinanapplicabletrackingsystemtodeliverRECsto the IPA.Again,abiddermayrequestasixmonthextensionupondemonstrationofprojectdelaysthatdonototherwisejeopardizethesuccessfulcompletionoftheproject;anysuchextensionwillbegrantedonlyattheAgency’sdiscretion.

ThemethodologytoestimateRECspersystemisdescribedinSection3.3.AsthewinningbidderprovidestheIPAwithdocumentationof specific systemsunder development, the IPAwill track the projectedRECs foreachwinningbidder.

Should a bidder fail to provide evidence of system development for speculative bids within the specifiedtimeframe,thebidder’sproratedshareofthecontractwiththeAgencyshallbeconsideredcancelledvoided(inotherwords, thecontractualRECvolumewillbe reduced to theRECvolumeassociatedwith identifiedsystems),thedepositassociatedwithunidentifiedRECsforfeited,andthebudgetedpaymentsforthoseRECswillberestoredforasubsequentprocurement.AhigherdepositwillberequiredforspeculativeRECsandthedeposit will be reduced (with the amount of the reduction reimbursed) once the bidder has identifiedsystemsforspeculativeRECs.ThedepositamountsarestatedinSection4.3.

4.2.2 Systems25kWandover

Forbidsinthe25kWandovercategory,abiddermustidentifythespecificsystem(s)thatwillprovidetheRECsprior tobidding.Evidence regarding the systemsmay include, but isnot limited to, lettersof intent,signed contracts, interconnection or net metering applications, and local permits, and similar officialdocumentation..82Theminimumbidsizeshallbe500RECs(whichroughlyapproximatestotheRECoutputoftwo5040kWsystems).Awinningbidderforlargersystems(orforconcretenon‐speculativesub‐25kW25kWsystems)willhave12monthsfromthebiddatetodemonstratetotheIPAthatthesystemsbidhavebeencompleted,energized,andregistered inanapplicable tracking system todeliverRECs to the IPA.Abiddermayrequesta6monthextensionupondemonstrationofprojectdelaysthatdonototherwisejeopardizethesuccessfulcompletionoftheproject;thatextensionwillbegrantedonlyattheAgency’sdiscretion.Requestswill be determined by the IPA on a case by case basis, but will be limited to circumstances outside thebidder’scontrol. Suchcircumstancesmayincludedelaysinapprovalofinterconnectionrequests,issuingofpermits,andothereventsdrivenbydelaysinthird‐partyprocesses.Shouldasystemnotbecompletedinthe

81ThespecificlistofacceptabledocumentswillbepartofthemodelcontractandwillbedevelopedaspartofthestandardcontractdevelopmentprocessoutlinedinSection5.2.2.Participationofinterestedparties,experienceddevelopers,andtradeassociationsinthatprocessisencouragedassuchindividualsandorganizationswillbeabletoprovidecriticalfeedbackontheappropriatemilestones.82Seeabovere:thedevelopmentoftheacceptabledocumentslist.


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requiredtimeframe,thebidder’sproratedshareofthebidder’scontractwiththeAgencyshallbeconsideredcancelledvoided,theassociateddepositwillbelost,andthebudgetedpaymentsforRECswillbesetasideforasubsequentprocurement.

Should a system that is included in a winning bid not be developed, the winning biddermay request tosubstitutethesystemwithoneormoresystemssolongasthetotalsizeisofsimilarnameplatecapacity.Thesubstituted system(s)mustmeet all the same requirements (e.g., use of “qualifiedperson” for installation,qualifying as a “new” system, same development deadlines, not used to support prior awards) as theoriginallyproposedsystem.TheRECs tobedeliveredby thesubstitutesystemwillbecalculatedusing thestandardcapacityfactorandthenameplatecapacityofthesubstitutesystem.Asubstitutesystemwillnotbeeligible to provide more RECs than the originally proposed system. Approval of such requests is at thediscretionoftheIPA.

4.3 CreditRequirements

Thecreditrequirementforparticipatinginthisprocurementistoprovidearefundabledepositfeaturingthefollowingcharacteristics:

Form: the refundable deposit may be a cash deposit or an irrevocable standby letter of credit(“LetterofCredit”)deliveredaspartofthebidregistrationprocess.The

Amount: the amount of the refundable deposit will be $25is $16/REC for speculative RECs and$108/RECforRECsassociatedwithidentifiedsystems.Baseduponthestandardcapacityfactor,thisequates to $125approximately $100/kW for unidentifiedspeculative systems and $50/kW foridentifiedsystems.

Delivery: for both speculative and non‐speculative RECs, the delivery schedule of the refundabledepositrequireshalfoftherefundabledepositamountassociatedwiththebiddueaspartofthebid,andthebalanceoftherefundabledepositamountduewithin14daysafterbidacceptance(withanyremaining portion not required for delivery from unsuccessful bids). Deposits due after bidacceptancemaybeincashorintheformofaneworaproperlyamendedLetterofCredit.

Unsuccessfulbidderswhoprovideacashdepositwillhavetheirdepositsrefunded.Forabidderwhoonlyissuccessfulforaportionoftheirbid,therefundwillbeprorated.TheIPAwillendeavortoprocessrefundsinatimely manner, but notes that payment of the refunds are processed through the Illinois Office of theComptrollerandthustheIPAcannotguaranteetheexactrefunddisbursementschedule.

Forwinningbids,thedepositforthedepositsassociatedwithRECsfromeachwinningsystemsystemswillbereturnedaspartofthefirstpaymentforRECs.Anysystemthatisnotsuccessfullydevelopedwill forfeit itsdepositforthoseRECs,(forbothcashdepositsandLetterofCredit),aswillanysystemthatdoesnotachievethe required project development milestones. For speculative bids, upon demonstration of an identifiedproject, thebiddepositwillbereduced from$2516/RECto$108/REC,withthedecreaseddepositamountreturnedtothebidderforcashdeposits.Ifabidderhassuccessfullyconvertedsystemstoenergizedprojectsandhasabalanceof fewerthan30RECsremainingnotassociatedwith identifiedprojects, thebiddermayrequest a refundof theany remainingdeposit for.Otherwise, thebidderwill forfeit any remainingdepositthatisnotassociatedwithenergizedprojectslessthantheamountassociatedwith30RECbalanceRECs.

The counterparty under the contract will either be the owner of the system or an intermediary that willcontractwiththeownerofthesystem.Ineithercase,thepartynamedduringtheprocurementprocesswillbe theparty that signs thea contract. Thewith the IPA. Rightsunder the contractmaybe transferredorassignedwithconsentfromtheIPA.Suchconsentwillbeautomaticiftheownershipofthesystemchanges,iftheassignment is toanaffiliateofthecounterparty,or is for financingpurposes. Thecounterpartywillberequiredtoeffectsuchassignmentortransferintheeventofbankruptcyordissolution.


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4.4 UseofQualifiedPersonsforInstallation

ToprovideRECs for thisprocurement, all newdevice installationsmustmeet theprovisionsof Section1‐56(i)(1)regardingtheuseof“qualifiedpersons”forthesysteminstallation. Theterm“qualifiedperson”isdefinedwithin the lawandconnectsbacktothe levelandnatureof the installer’s trainingandexperience.Similarly,“install”isdefinedinthelawas“themajoractivitiesandactionsrequired”fordelineatedelementsofthephotovoltaicdeviceinstallation.

As part of its supplemental PV procurement plan, the law calls for the IPA to “establish contractuallyenforceablemechanismsforensuringthatthe installationofnewphotovoltaics isperformedbyaqualifiedperson.”Tocomplywiththislanguage,theIPAproposesthefollowing:

Duringthepre‐qualificationstageofthebiddingprocess,allbidderswillhavetocertifythattheyunderstandandwillcomplywiththeseprovisions.TheAgencywillprovidestandardcertificationformsforbiddersforconsenttocompliance.Afterabidiswon,thatbidderwillberequiredtocertifythataqualifiedpersonwasusedforthesysteminstallationbynolaterthantheinitialRECdeliverydate.

ShouldtheIPAlearnthatasystemwasnotinstalledbya“qualifiedperson,”orshouldawinningbidderbefound tonotbe in compliancewithnecessarydisclosures and certifications, the IPAwill have the right tocancel contractsvoid the contract and ceasepayments forRECs generatedby the system. Additionally, allcontracts executedwithwinning bidderswill include a provision that allows the IPA to ask for proof andinspectbooks,andrecords,etc.toconfirmtheuseof“qualifiedpersons..”

4.5 TrackingandTransferofRECs

All systemswill be required tohave autility‐grademeter aspart of their installationandallRECswill betracked and transferred using either GATS or M‐RETS. Each system must be tracked through a singlemeteringpoint.Thebidderwillberesponsibleforanyfeesrelatedtoregistrationwiththetrackingsystem.TheIPAwillpayfortheretirementofRECsandthebidderwillnotberesponsibleforthosecosts.

The IPA is currentlyworkingwithPJMEISandM‐RETs to clarifyand simplify the registrationprocess forIllinois‐eligibleDGsystems.GuidelinesonhowtoregisterDGsystemswillbepublishedbytheIPApriortothefirstprocurementevent.

4.6 Aggregators

Section1‐56(i)(1)discussestheuseofaggregatorsasfollows:

In order to minimize the administrative burden on contracting entities, the Agency shall solicit the use of third parties to aggregate distributed renewable energy. These third parties shall enter into and administer contracts with individual distributed renewable energy generation device owners.

TheAgencyunderstandsthislanguagetomeanthefollowing:

Bidders need not be system owners. Instead, this language allows for “aggregators” to serve as anintermediarybetweenanindividualDGdeviceownerandtheIPA,participatingasabidderintheIPA’sprocurementandservingasacounterpartytoaRECcontractwiththeIPA.

AstheAgency“shallsolicittheuseof”aggregators,theAgencyhassomestatutoryobligationnotmerelytopermitthirdpartyparticipation,buttoactivelysolicitit.ActiveoutreachtofindidentifyandgenerateinterestfrompotentialbiddershasregularlybeenastandardpartofIPAprocurementeventsconductedpursuanttotheIPA’sstandardannualprocurementenergyplans,andtheAgency.TheIPAbelievesthatactivesolicitationby theAgencymaybeaccomplishedbycontinuing thosepractices,asnothing in thestatuteprovidesthatadistinctformormannerofsolicitationmustapply.


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Whileadministrativeburdensnecessitate solicitingbidsator abovea thresholdbidsize (theAgency’sproposed minimum procurement bid size of 500 RECs), system owners may otherwise participatedirectly in the IPA’s procurement process. TheAgency believes that forcing the use of intermediariesontowillingsystemownerswithsufficientlysizedbidswouldbeunnecessarilycumbersome,andwouldonlyextendfromareadingofthelawwhichexacerbatesexacerbatetheveryadministrativeburdensthissectionthattheuseof“aggregators”seekstominimize.

Nothinginthestatutorylanguageprohibitsanentityfromservingbothasasystemownerandathird‐partyaggregator.SolongasthebidderhasorwilldevelopvalidtitletoRECsfortransfertotheIPA(i.e.,“contractswith individualdistributiongenerationdeviceowners”),abiddermaybeasystemowner,athirdparty,orboth. AnaggregatormayalsobeathirdpartybiddingtheRECstreamfromasingleDGsystem.

The law creates no restriction onwhich entitiesmay participate as an aggregator. The law does notrequire that aggregators be system installers or third parties providing financing or providing otherservices toDGdeviceowners. Nordoes the law limitaggregationto for‐profit companies,nonnot‐for‐profits,governmententities,orprivatecitizens.However, the lawdoesrequire that,ascounterparties,aggregatorsmustmeetcreditrequirementsdevelopedbytheAgency. Additionally,asthelawrequiresaggregators to “enter into and administer contracts with individual distributed generation deviceowners,”compliancewiththisprovisionnecessitatesevidencethatanaggregatordoeshavecontractualrightstoRECsbeingtransferred.WhiletheAgencybelievesthatitcancreateadditionalrequirementsforaggregators, the speculation provisions of this supplemental PV procurement plan also apply toaggregatorswhosubmitbidsbasedonunidentifiedsystems.

4.6.1 DefinitionofAggregator

Basedonthe foregoing, the IPAproposes todefineanAggregatorasa third‐party(i.e.,non‐systemowner)that(i)ownsorplanstoacquireeitherunconditionedtitletoorrightstolegallytransferrenewableenergycreditsfromdistributedrenewableenergydevicesthroughcontractswithmultiplesystemowners,and(ii)iswilling to contract with IPA and accepts standard Illinois terms as well as procedures for contractadministration.83 The IPA is not proposing the use of a single Aggregator for this procurement; rather itproposes that an aggregator who pre‐qualifiesmeets this definition will be required to register andregisterspre‐qualifywiththeIPAanditsprocurementadministratorwillinordertobeeligibletoparticipatein the procurement events. The IPA expects thatmultiple entitieswill be successful participants in theseprocurement events and awarded contracts to deliver RECs (subject to terms and conditions discussedfurtherbelow).Theprocurementadministratorwillmaintainawebsitewhere,amongotherthings,alistofpre‐qualified aggregatorswill be available to interested parties (i.e., homeownerswhowish to use a pre‐qualifiedaggregator).However,theIPAdoesnotandwillnotendorseanyspecificaggregator.

Aggregatorsmustpre‐qualifywiththeIPAbymeetingseveralprovisions.Ataminimum, inadditiontotherequirementsstatedabove,anaggregatormustdemonstratetotheIPAthattheaggregatoris:

RegisteredtodobusinessintheStateofIllinois; Abletoensuremeterdataiscollectedfromaggregatedsystems;and IsorwillberegisteredwithGATSand/orM‐RETsuponcontractaward.

83Underthisdefinition,systemownersmayalsoparticipatedirectlyintheprocurementasbidders,solongastheirbidsmeetallrequiredqualifications(bidsize,depositrequirements,etc.)asnotedabove.


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5 ProcurementProcess

5.1 ProcurementTimelineandScale

The IPA proposes to hold three procurement events as part of this plan, with a fourth contingencyprocurementevent.Thebudget foreacheventwill increasesoas to trackanticipatedgrowingdemandbydeveloperstosupplyRECsintotheprocurementsandtoaccommodatemarketgrowthwithoutbottleneckingtheavailabilityofRECcontracts.

Theapproximatetimelineandbudgetwillbe:

1. June 2015 ($5 million; 5,000 REC maximum bid size for bids in the under 25 kW category, and500kW500kWmaximumsystemsizeforthe25kWandabove25kWcategory).

2. November2015($10million;nomaximumbidsizeforbidsintheunder25kWcategory,and2MW2MWmaximumsystemsizeforthe25kWandabove25kWcategory).

3. March2016($15million;nomaximumbidsizeforbidsintheunder25kWcategory,and2MW2MWmaximumsystemsizeforthe25kWandabove25kWcategory).

4. Early 2017 (Contingency Event; balance of available funds, possible limitation on categories ofsystemsthatmayparticipate).

Thedates above are subject to changependingdevelopmentof required contractdocuments,which couldimpact thedateof the firstprocurementeventand the timebetweeneachsubsequentprocurementevent.Procurement dates will be finalized by the Agency in consultation with the procurement administrator,Commission Staff, and the procurement monitor, and will be publicly announced at least eight weeks inadvanceofthebeginningoftheprocurementevent.

Asdiscussed inSection4.2,winningbidderswillhavetoprovidedemonstratedmustdemonstrateprogresstowardsprojectdevelopmentorwillforfeitdepositsandthecontractualrightstosellRECstotheIPA.

To increase the number of systems installed as a consequence of the Agency’s first (and lowest‐budget)procurement,andinanattempttomaximizecompliancewiththestatutorygoalforhalfofRECsprocuredtocome from below 25 kW in size, themaximum size of systems bidwill be 500 kW for the Agency’s firstprocurementevent.Inaddition,forthefirstprocurementeventintheunder25kWsizecategory,nobiddershallbeawardedacontractformore5,000RECs.

TheA determination of whether to hold the contingency procurement event will be made by the IPA inconsultation with ICC Staff, the procurement administrator, and the procurement monitor. If consensuscannotbereached,theIPAmaypetitiontheICCCommissionforadeterminationregardingwhethertoholdthecontingencyprocurementevent.Intheeventthatthereisacontingencyprocurementevent,theIPA,andtheprocurementadministratorwillreviewtheresultsofthepriorprocurementstodetermineifthereshouldbeanarrowingofsizecategoriesfromwhichsystemsaretobeprocured.Shouldsufficientfundsbeavailable,new utility scale systemsmay also be considered. Criteria to be consideredmay include (butmay not belimited to) the administrative cost of the procurement, the expected REC price, and the likelihood of aparticularsegmenttoresultinsuccessfulcompletedprojects.

5.2 ProcurementProcess

AsallowedforpermittedunderSection1‐56(i)(4)(A)oftheIPAAct,theIPAwilluseitscurrentprocurementadministrator forSection1‐75procurements (i.e.g., for.,Ameren IllinoisandComEdenergyandrenewableresourcesprocurements),NERAEconomicConsulting, fortheprocurementeventsunderthissupplementalPVprocurementplan.TheprocesswillbemonitoredbytheICC’sdesignatedprocurementmonitor.

TheInadditiontotheexplanationbelow,theprocessfortheprocurementeventsisfurtheroutlinedinSection1‐56(i)(4)(C)‐(G).)oftheIPAAct.


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5.2.1 Solicitation,pre‐qualification,andregistrationofbidders

The procurement administrator will develop the process for the solicitation, pre‐qualification, andregistrationofbidders.84Thepre‐qualificationandregistrationprocess isexpectedtobeperformedonline.Thepre‐qualificationprocesswillensurethatbidderswithidentifiedsystemsprovidedocumentationonthesystems and are able to contractwith the IPA. The registration processwill include the tendering of thedeposits. Details of the pre‐qualification and registration process will be developed by the procurementadministrator,inconsultationwiththeIPA,theICCStaff,andtheprocurementmonitor.

5.2.2 Standardcontractformsandcredittermsandinstruments

Allbidderswillberequiredtoagreetosignstandardcontractformsandcreditsupportinstrumentsupontheawardingofsuccessfulbids.85TheseincludetermsrequiredbytheStateofIllinoisasdescribedinAppendix6.3aswellasstandardcontractformsdevelopedbytheprocurementadministratorandmayincludecreditsupport instruments.Allbidderselecting toprovideaLetterofCredit in lieuof a cashdepositmustuseastandardLetterofCredit.Thestandardcontractforms,LetterofCredit,andothercreditsupportinstrumentswill be developed upon Commission approval of this supplemental PV procurement plan in linewith theprocessoutlinedinSection1‐56(i)(4)(D)whichprovidesthat“iftheprocurementadministratorcannotreachagreementwith theparties as to the contract termsandconditions, theprocurementadministratormustnotify the Commission of any disputed terms and the Commission shall resolve the dispute” (emphasisadded).86

Aspartiestocontractswillnotbeestablisheduntilafterthedevelopmentofcontracttermsandconditionsand subsequent procurement events, the Agency understands the “parties” in this context to refer to theAgency,ICCStaff,andtheprocurementmonitor.ThisreadingisconsistentwiththeresolutionofdisputesforcontracttermsanddisputesinotherIPAprocurementprocesses.TheIPAandtheprocurementadministratorwillholdatleastonepublicmeetingontheproposedcontractformsandwillprovideforanopportunityforstakeholderstoprovidetworoundsofwrittencommentsondraftcontractforms.WrittencommentswillbepostedtotheprocurementwebsiteandtheIPAmayholdpublicmeetingstoexplainhowithasrespondedtosuchcomments.

5.2.3 Requestsforproposals;competitiveprocurementprocess

Foreachprocurementeventcycle,theprocurementadministratorwillannouncethedatewhenbidsaretobereceived(closingdate)andholdawebinarandbiddertrainingeventspriortothatdate.Theclosingdatewillbeannouncedatleasteightweekspriortothestartoftheprocurementeventcycle(whichistypicallyseveralweekslong).Nolaterthanthebiddate,bidderswillprovideviaasecurewebsiteasealed,binding,bidduringapre‐specifiedbiddingwindow.Foranexampleofasimilarbiddingprocess,pleaseseethewebsiteusedfortheenergyprocurementsconductedbytheIPAanditsprocurementadministrator,www.ipa‐energyrfp.com.

Proper bids received by the closing date and time of the procurement event will be evaluated by theprocurement administrator. as follows: First, for a bid to be considered, it must be at or below theappropriatebenchmark(seeSection5.2.4below).Second,bidsarerankedinorderofpriceperRECuntilallbidshavebeenrankedoruntilthebudgetisexhausted.Ifthatstependedbecausethebudgetwasexhausted,inathirdstep,thelowestpricedsub‐25kW25kWsystemsthathavenotyetbeenrankedreplacethehighestpriced over‐25kW25 kW systems as needed to reach the objective of having 50% of the RECs for theprocurementeventfromsystemssub‐25kW25kWsystems(orviceversa,shouldtheimbalanceworkintheoppositedirection).ThisevaluationidentifiesthewinningbidsforreviewbytheCommission.

84See20ICLS3855/1‐56(i)(4)(C).85See20ILCS3855/1‐56(i)(4)(D).86Id.


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5.2.4 Benchmarks

Foreachprocurementevent, theprocurementadministratorwilldevelopaconfidentialsetofbenchmarks.ConsistentwithSection1‐56(i)(4)(F),benchmarkswillbedevelopedinconsultationwiththeAgency,theICCStaff,andtheprocurementmonitor.87DevelopedbenchmarkswillnotrequireCommissionpre‐approval.Asprovided for in Section 1‐56(i)(4)(E), no bid that exceeds the benchmark price shall be accepted by theAgency.88 The developed benchmark price is confidential and unavailable to bidders at the time bids aresubmittedoranytimethereafter.Toprovidesomelimitedguidancetopotentialbidders,theAgencyindicatesthatfactorsthatmaybeconsideredinclude,butarenotlimitedto,thefollowing:observedmarketpricesforsimilar products adjusted for expected local costs to develop and operate systems, available incentives,marketreturnsoncapital,andtermofcontract(5years).

5.2.5 A Plan For Implementing Contingencies In The Event Of Supplier Default, CommissionRejectionOfResults,OrAnyOtherCause

AsdescribedelsewhereinthisPlan,theIPAproposesseveralmechanismsforcontingencies.

First,winningbidderswillneedtoshowprogresstowardsprojectdevelopmentasdescribedinSection4.2.FailuretodosowillresultinlossoftheforfeitingofcontractualabilityprorateddepositandrighttodelivertheassociatedRECstotheIPAfromanyprojectthatdoesnotshowsuchprogress,andthecontractvalueofthoseRECswillbeaddedtotheavailablefundingforsubsequentprocurementevents.orforthepurchaseofadditionalRECsfromsystemsalreadyundercontract.

Second,shouldabidderdefaultafterRECdeliverystarts,thebiddermay,withtheIPA’sconsent,assignthecontract(s) to another individual or entitywho shall assume the obligations and liabilities of the originalbidder. That individual or entity will be required to accept all the terms and conditions of the originalcontract and, make all the required certifications, and post appropriate credit assurances. Section 4.3providesadditionalassignmentprovisions.

Third, the IPA is proposing a fourth, final procurement event (contingency procurement) should there befundsavailableafter the thirdprocurementeventdueto factors including,butnot limited to,participationlevels,Commissionrejectionofpreviousresults,andfailureofbidderstosuccessfullycompletesystems.Forthefourthprocurementevent,theAgencymayproposealternativestandards,suchasproductcategoriestiedto more specific segments and perhapspossibly also procurement of RECs produced by new utility scalesystems,asdescribedinSection5.1.Alternatively,theAgencymayputunusedfundstowardsthepurchaseofadditionalRECs fromsystemsalreadyundercontract fromthepriorprocurementeventsheldpursuant tothisPlan.

5.2.6 ProcurementApproval

As described in Section 1‐56(i)(5), the procurement administrator and procurementmonitorwill provideaseparate confidential reportreports to the ICCCommissionwithin twobusinessdaysof eachprocurementeventand.89TheCommissionwillvoteonwhethertoapprovetheprocurementmonitorwillalsosubmitaconfidentialreport.90TheICCwillvoteontheresultswithintwodaysofreceivingthosereports.91

Winningbidderswill receiveapreliminarynotification that theirbidhasbeen recommended forapprovalwithinonebusinessdayofaftertheprocurementevent.TheformalFormalnotificationwillbegivenmadeand

8720ILCS3855/1‐56(i)(4)(F).88See20ILCS3855/1‐56(i)(4)(E).8920ILCS3855/1‐56(i)(5).9020ILCS3855/1‐56(i)(5).91Id.


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contractpackagesforexecutionwillbetransmittedtowinningbiddersupontheICCCommissionapprovalofthe results along with contract packages for execution.. Bidders will have three days to enter intothoseexecutecontractsandpostappropriatecreditsupport.92Post‐bidnegotiationsarenotallowed.

5.2.7 PublishedInformationonWinningBids

As provided for in Section 1‐56(i)(7), the IPA will publish the names of successful bidders after eachprocurementevent,andwillalsopublishtheweightedaveragewinningbidpriceforeachproductsegment(sub‐25kWand25to2000kW).93Totheextentpossible,theIPAwillalsopublishtheaveragesizeofsystemsused to support thewinningbids ineachcategory.Whilebidswillbekeptconfidential, the IPAnotes thatcontractsentered intoby the IPAaremaybesubject to theFreedomof InformationAct.Consistentwith1‐56(i)(7), the Commission, procurement monitor, procurement administrator, Agency, and all participantsshallmaintaintheconfidentialityofallothersupplierandbiddinginformation.94

9220ILCS3855/1‐56(i)(6).9320ILCS3855/1‐56(i)(7).9420ILCS3855/1‐56(i)(7).Id.


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6 Appendices

6.1 SummaryofPublicMeetingsandCommentsontheDraftPlan

6.1.1 SupplementalPhotovoltaicProcurementPlanPublicWorkshop,August7,2014

OnAugust7,2014, theAgencyheldaworkshopasrequiredbySection1‐56(i)(1)of the IPAAct togatherpublicfeedbackonthissupplementalPVprocurementplan.Themeetingwasattendedbyapproximately65individuals representing a wide variety of organizations., businesses, and government agencies. A list ofparticipatingorganizationsentitiesisprovidedbelow.

Theworkshopconsistedofthreepresentationsfollowedbypubliccomment.ThefirstpresentationwasgivenbyAgencyIPADirectorAnthonyStar,whoreviewedtheprovisionsofnewSection1‐56(i)oftheIPAActandprovidedinitialviewoftheAgency.ThesecondpresentationwasconductedbyNERA,theIPA’sprocurementadministrator, and summarized the solar photovoltaic procurement strategies of other states. The thirdpresentation was conducted by GSM, the workshop’s facilitator. GSM summarized public comments onquestionspostedbytheAgencyfollowingtheJune12IPAworkshoponDGthatwasheldinsupportoftheAgency’sannualprocurementplan.

Commentsandquestionsfromstakeholderscoveredarangeoftopics.Belowisasynthesisoftheshareholderquestionsandconcerns:

Procurementconcerns:

Qualification:E.g.Whatqualificationsdobiddersneed? Aggregation:E.g.Shouldtherebeminimumqualificationsorcertificationtobeanaggregator?How

shouldself‐aggregationbeaddressed?Should therebeminimumbidsizes foraggregators?Shouldtherebedifferentclassificationsofaggregatorssuchasmegaandsmaller?

Products:E.g.Shouldtherebeadistinctionbetweenresidentialandcommercial,orbysystemsize? Evaluation:E.g.Canyouevaluatenewandexistingfacilitiesthesameway?Shouldtherebeasingle

ormultipleprocurement(s)?Doestimingofwhentheprocurement(s)areheldmatter? Eligibility: E.g. How will the Agency help municipalities bid in? Should residential customers be

forcedtouseanaggregator? Overlap:E.g.Howdoesthisprocurementinterfacewithotherincentiveandrebateprograms? Payment:E.g.Shouldpaymentsbeupfrontwithaclaw‐backorpaymentasdelivered?

Policyimpactconcerns:

Boomandbustcycles:E.g.HowtoguardagainsthighRECpricesorusinguptheallocatedbudgettooquickly?

Social equity: E.g. Should there be special treatment for disadvantaged groups? How to ensureequitable participation across all Illinois residents? Should there be considerations for minorityownedbusinesses?

Jobs development: E.g. Should job creation in Illinois be a goal? Should there be a geographiccomponenttotheprocurement?

Photovoltaicsystemconcerns:

Newversusexisting:E.g. should theprocurementonlybe fornewgenerationorshouldexistingbeincluded?Shouldagraceperiodbegiventosystemscurrentlyunderdevelopment?

Locationofsystems:E.g.canasystemoutsideofIllinoisparticipate?IsthislimitedtosolarprojectsjustwithinComEd/Amerenterritories?


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Size of system: E.g. How tomeasure, for example, if it is less than 25kW25 kW? Does nameplatecapacitydisadvantagemulti‐familyfacilities?

Typesofproducts:E.g.ShouldutilityscalesolarbeincludedorjustDG?

Contractconcerns:

Length of contract: E.g. Is the minimum five year contract terms designated in the legislationappropriate?

Budgeting:E.g.Howtomakesurethatpaymentsarenotexceeded? Creditanddeposits:E.g.Whatshouldbethecreditrequirementsforabidder?

6.1.2 DistributedGenerationWorkshop,June12,2014

InadditiontothepublicworkshopforthissupplementalPVprocurementplanonAugust7,2014,theAgencyalso considered comments on DG procurement from a public workshop on June 12, 2014 and associatedwrittencomments(receivedbyJuly21,2014)relatedtotheAgency’s2015ProcurementPlan.WhiletheJune12,2014publicworkshoptookplacebeforetheGovernorsignedHB2427intolaw,thecommentsfromtheworkshoparerelevantinunderstandingstakeholderinputondistributedsolargenerationprocurement.

TheJune12,2014workshop’sagendaaddressedthreeitems:

Reviewofthe2012workshopand2013IPAProcurementPlanDGrecommendations. DiscussrecentDGdevelopmentsinotherstatesapplicabletoIllinois. OverviewanddiscussionofDGprovisionsofHB2427.

Following the June12thWorkshop, theAgencysoughtstakeholder feedbackonsixteenquestions.Eighteendifferentstakeholdergroupsrespondedinthroughfifteendifferentsetsofwrittencomments,allofwhichareavailableontheAgency’swebsite.95Belowisalistofthequestions:

1. Shouldprocurementsbeheldformorethanonesizecategory?Shouldotherattributesbeconsideredindeterminingcategories?

2. HowshouldIPAdefinedistributedgenerationsystems?Whereissizeofsystemdefined,i.e.,atmeter,inverter,etc.?

3. If IPA holds separate procurements for new and existing systems, how should those terms bedefined?IfRECSfromnewsystemsarevaluedhigherthanthosefromexistingsystems,whatcouldpreventtherefrombeingashorttermimpactonprojectdevelopment?

4. HowlongandwhatflexibilityshouldtheIPAallowfornewsystemstocommenceoperationaftertheprocurementevent?

5. WhataretheadvantagesanddisadvantagesofRECcontractsof5yeartermsandthoseofalongerduration?Bespecificbymarketsegment/size,newvsexisting.

6. What are the trade‐offs between contract terms for new systems that pay for RECS as they aredeliveredvstermsthatwouldallowforsomeupfrontpaymentuponsystemgoingcommercial,butwithcommensurateenhancedcreditrequirementsandclawbackprovisions?

7. WhatelementsmaybenecessarytoincludeinclawbackprovisionstoensurethatAgency,ratepayer,andstakeholderinterestsareproperlyprotected?

8. Whataretheperceivedrisksthatdevelopers,propertyowners, lendinginstitutions,utilities,utilityratepayers,andotherstakeholdersmaybeexposedtoasaconsequenceoftheIPAenteringintoRECprocurementcontractswithtermsofmorethan5years?

9. What credit requirementsmay be appropriate for aggregators and other counterparties (i.e., self‐aggregating system owners)? Should these requirements vary based on REC portfolio size andsystemsize?Ifso,how?

95Writtenresponsestothequestionscanbefoundhere:http://www2.illinois.gov/ipa/Pages/Plans_Under_Development.aspx


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10. Are there timing considerations other than those related to DCEO rebates, state and federal taxincentivesthattheIPAshouldconsider?

11. If aggregators are allowed to bid speculatively what would be a reasonable length of time foraggregators to be given to provide evidence of viable projects and what provisions should beconsideredtoreallocatequantitiesofRECstootheraggregatorsifanaggregatorisnotabletoverifyprogressonprojectdevelopment?

12. Whatadditionalprovisions,ifany,shouldbeincludedtoallowentitiestobetheirownaggregator?13. GiventheframeworkoftheIllinoisRPSandprovisionsofthenewSection1‐56(i),whatmodelsthat

theIPAshouldbeawareoftoavoid,andwhy?14. ShouldtheIPAconsidertrackingRECsusingsystemsotherthanPJM‐GATSandM‐RETs?15. AretherepoliciesandproceduresfortrackingDGRECs(e.g.,systemcertification)thatneedupdating

undercurrentM‐RETsandPJM‐GATSframeworks?16. Are there additional entities that should be engaged in this stakeholder process other than those

engagedintheJune12thworkshop?

6.1.3 WorkshopParticipants

Thefollowingorganizationsparticipatedinoneorbothworkshops:

Organization June12 August7MC2EnergyServices XMetropolitanMayorsCaucus XMicrogridsolar X XMidAmerican XMRCandAssociates XNERA X XNewGenerationPower XNewGridEnergySolutions XNexteraEnergy XNRGEnergy XPAConsulting X XPJM XSkyviewVentures XSocialService XSoCoreEnergy X XSolarCity X XSRECTrade XStraightUpSolar X XSunEdison XSunReySolarEnergy XSunrun XTheAccelerateGroup X XTheLawOfficesofPaulG.Neilan X XTippingPointRenewableEnergy XUrbanGreenTechnologies XVGIEnergy XWanXiangNewEnergy XWestMonroePartners XWindontheWires XWindSolarUSA XZieglerSecurities X

Organization June12 August7AccionaEnergy XAffordableCommunityEnergy XAmerenIllinois X XIllinoisAttorneyGeneral XBarnes&Thornburg X XBoostYourECO XCityofChicago XComEd X XCommunityGreenEnergy XConstellation/Exelon XCS2RenewableEnergy XCUB X XDCEO X XDeltaInstitute X XEcoSolar XEDF XElevateEnergy X XELPC X XGeronimoEnergy XGettUsEnergy XGiordano&Associates X XHelpanswers.org XIberdrolaRenewables XILSierraClub X XIllinoisCommerceCommission X XIllinoisSolarEnergyAssociation X XIMA XIntegrysEnergyServices XIPA X XJuhlEnergy XKenjivaEnergySys X XLIUNA X


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6.1.4 SummaryofCommentsReceivedontheDraftSupplementalPhotovoltaicProcurementPlan

Allowforprepayment[SierraClub] Allowparticipationbyexistingsystemsandbyutilityscalesystems[ComEd,ExelonGeneration] AutomaticpurchaseofadditionalRECs[WanxiangNewEnergy] Changedefinitionof“new”toanearlierdate[ELPC,ISEA,SierraClub,andSRECTrade] ClarifyACversusDCratingofsystems[ICCStaff] Clarifybenchmarks[ELPC] Clarifydefinitionofaggregators[SierraClub,SRECTrade] Clarifyrequiredbidderinformation/documentation[ELPC,ISEA] Createstandardoffer/singleaggregatorforbelow25kWsystems[ELPC,ISEA] Encouragecommunitysolar,PVforaffordablehousingandprioritizationforsocialbenefits[Elevate

Energy] Increasecapacityfactor[ELPC,ISEA] Longercontractterms[WanxiangNewEnergy] Lowerdepositrequirements[ELPC,ISEA,SierraClub] Lowerminimumbidsize[SierraClub] Subcategoriesforthe25kWto2MWcategory[ELPC,ISEA,SierraClub]


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6.2 ComparisontoSRECProcurementsinSelectedOtherStates

Parameters Illinois NewJersey96 Connecticut97 Delaware98

SizeSegments <25kW25kW >25kW25kW‐

2,000kW000kW

<50kW50kW 50‐

2,000kW000kW

<100kW 100‐250kWkW 100‐250kW 250‐

1,000kW000kW

<30kW 30‐200kWkW 30‐200kW 200‐2,000kW000

kW

Definitionofnewresources

Forfirstprocurement:ifenergizedEnergizedonorafterthedateofapprovalofthefirstprocurementeventForsubsequentevents:ifenergizedonorafterthedateoftheprecedingprocurementeventSupplementalPVProcurementPlan

Notyetinterconnected

BuiltonorafterJuly1,2011

Determinedineachsolicitation.Mostrecently(in2014procurement):interconnectedonorafterApril12,2013

CreditRequirements(toberefundedoncesystemisoperational)

Speculativebids:$125100perkWIdentifiedprojects:$50perkW

$75perkW

Small:5%ofcontractvalueMed:10%ofcontractvalueLarge:20%ofcontractvalue

$100perkW

Maximumpurchasequantitydetermination

11.41614.38%capacityfactorappliedtonameplatecapacity(DCrating)foreachcontractyear

15.41%capacityfactorappliedtonameplatecapacity(DCrating)foreachcontractyear

16.88%(forPV)factorappliedtonameplatecapacity(ACrating)and5percentadderforeachcontractyear

110%ofestimatedannualSRECproductionlevelsforeachyear.EstimationbasedonPVWATTSwith0.5%annualdegradationfactorforsubsequentyears.

ContractDuration 5years 10years 15years 20years

Buyerhasoption,butnotobligation,tobuysurplusRECs

Yes Yes YesYesforprojectsunder200kW200kW

Meteringrequirements

Revenuegrademeterrequired




Frequencyofprocurements

1per6months 3peryearfor3years 1peryearfor6years1peryear(approvedonanannualbasis)

TimetoenergizefromProcurementEvent

1year

<50kW50kW:6months50‐2000kW2000kW:1year

1year 1year

96BasedontheSRECBasedFinancingProgramofJCP&L,ACEandRECO.Forthispurpose,informationforthelandfill/brownfieldsegmentundertheprogramisnotincluded.97BasedonConnecticutLight&PowerandUnitedIlluminatingCompanyZRECLongTermContractsProgram.98BasedontheDelawareSRECPilotProcurementProgram.


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6.3 RequiredStateDocuments

Thefollowingdocumentsareprovidedinaseparatefileavailableathttp://www2.illinois.gov/ipa/Pages/Plans_Under_Development.aspx:

AttachmentD:StandardTermsandConditions AttachmentG:StandardCertifications AttachmentH:FinancialDisclosureandConflictsofInterest AttachmentI:DisclosureofBusinesswithIran AttachmentJ:TaxpayerIdentificationNumber

ThesedocumentsarerequiredbytheStateofIllinoistobeincludedwithanycontractfiledwiththeOfficeoftheComptroller.TheIPAwillonlybeabletopayforRECsfromcontractssuccessfullyfiledbytheIPAwiththeComptroller.

Thesedocumentsare includedtoprovide informationtopotentialbiddersandotherstakeholdersonwhatwillberequiredfromwinningbidders,andmaybeupdatedbetweenthetimeofthereleaseofthisplanandtheprocurementevents(suchastoreflectanychangesinIllinoislaworadministrativecodesrules).Astheseprovisionsarerequiredbystatelaw,theyarenon‐negotiable.

Inadditiontothesedocuments,standardcontractdocumentsandformsspecifictothedeliveryofRECswillbedevelopedbytheprocurementadministratoraspartoftheprocessdescribedinSection5.2.2.

[DRAFT SUPPLEMENTAL PHOTOVOLTAIC PROCUREMENT PLAN] · provisions including net metering,...

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