Commonwealth Edison Co. v. Illinois Commerce Commission

2019 IL App (2d) 180504, 128 N.E.3d 1165, 432 Ill. Dec. 1
CourtAppellate Court of Illinois
DecidedMay 2, 2019
Docket2-18-0504
StatusUnpublished
Cited by1 cases

This text of 2019 IL App (2d) 180504 (Commonwealth Edison Co. v. Illinois Commerce Commission) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth Edison Co. v. Illinois Commerce Commission, 2019 IL App (2d) 180504, 128 N.E.3d 1165, 432 Ill. Dec. 1 (Ill. Ct. App. 2019).

Opinion

JUSTICE BURKE delivered the judgment of the court, with opinion.

*2 ¶ 1 Under recently-enacted legislation, the Illinois Power Agency (IPA) developed a long-term renewable resources procurement plan (plan) to promote renewable energy, including the implementation of three programs that provide financial support to small renewable energy generation facilities (generation facilities) that might not be economically viable otherwise. Under the plan, the generation facilities memorialize their energy production through renewable energy credits (credits) that the IPA then procures on behalf of three large electric utilities: petitioner, Commonwealth Edison Company (ComEd), Ameren Illinois Company (Ameren), and MidAmerican Energy Company (MidAmerican) (collectively, Electric Utilities). The generation facilities sell credits to the Electric Utilities, which then pass along certain costs to their customers.

*3 *1167 ¶ 2 Some generation facilities operate in the service areas of (1) electric utilities operated by municipalities, (2) rural electric cooperatives, and (3) the Mount Carmel Public Utility (collectively, Local Utilities), which are not subject to the plan. 1 The plan as approved compels the Electric Utilities to buy credits from generation facilities operating in the service areas of the Local Utilities, but the Local Utilities are statutorily exempt from purchasing credits.

¶ 3 On April 3, 2018, the Illinois Commerce Commission (Commission) approved the plan. The Commission concluded that the generation facilities eligible for the programs are statutorily defined to include those within the service areas of the Local Utilities. On appeal, ComEd argues that the legislature intended to exclude the generation facilities operating in the service areas of the Local Utilities from participating in the programs.

¶ 4 We acknowledge that terms like "electric utility" and "utility" are not deployed with precision, rendering the statutory scheme ambiguous. However, deferring to the Commission's expertise, we agree with the Commission's interpretation in favor of the stated legislative intent of promoting the programs. We affirm.

¶ 5 I. BACKGROUND

¶ 6 A. Large Electric Utilities Versus Small Local Utilities

¶ 7 The Electric Utilities provide electric service to retail customers on their low-voltage local distribution networks within their service territories. ComEd has a service territory in the northern part of the state. Ameren has a service territory in the southern part of the state. MidAmerican has a service territory in and around the Quad Cities. The Local Utilities, meanwhile, have service territories akin to islands within the service territories of the Electric Utilities.

¶ 8 On December 7, 2016, the legislature enacted Public Act 99-906, commonly known as the Illinois Future Energy Jobs Act, with provisions to increase the state's commitment to renewable energy. Pub. Act 99-906, § 5 (eff. June 1, 2017). Public Act 99-906 modernized the Illinois renewable portfolio standard, creating new programs to encourage the deployment of solar photovoltaics and other renewable energy technologies throughout the state.

¶ 9 To achieve the broad new goals of the renewable portfolio standard, the legislation directed the IPA to develop plans subject to review and approval by the Commission. 220 ILCS 5/16-111.5(b) (West 2016). Under the plan at issue, the Electric Utilities must purchase a certain number of credits each year. 20 ILCS 3855/1-75(a), (c) (West 2016). The Local Utilities are not part of the plan and have no obligation to purchase credits, because the Illinois Power Agency Act and the Public Utilities Act regulate only "public utilities" ( 20 ILCS 3855/1-75(c)(1)(N) (West 2016); 220 ILCS 5/1-102 (West 2016) ), which are expressly defined to exclude entities owned or operated by municipalities or rural electric cooperatives. 220 ILCS 5/3-105(b)(1), (3) (West 2016). In contrast, an "electric utility" is a "public utility" that "has a franchise, license, permit or right to furnish or sell electricity to retail customers within a service area." 220 ILCS 5/16-102 (West 2016) ; see 20 ILCS 3855/1-10 (West 2016).

*4 *1168 ComEd, Ameren, and MidAmerican are "electric utilities" under the Illinois Power Agency Act and the Public Utilities Act. A "municipal utility" is defined separately as a "public utility owned and operated by any subdivision or municipal corporation of this State." 20 ILCS 3855/1-10 (West 2016).

¶ 10 B. Renewable Energy Credits

¶ 11 The credits memorialize the production of renewable energy by the generation facilities, and the IPA specifies the quantity of credits that the Electric Utilities must procure each year. Under the IPA's direction, the Electric Utilities enter into contracts with eligible generation facilities to purchase the credits. The Electric Utilities recover certain expenses associated with the credits from their retail customers through a rate charge, subject to a statutory cap. 20 ILCS 3855/1-75(c)(1)(B), (c)(1)(E), (c)(6) (West 2016).

¶ 12 The Illinois Power Agency Act requires that 75% of the credits derive from wind and solar resources. 20 ILCS 3855/1-75(c)(1)(C) (West 2016). Many wind and solar projects are large-scale wind farms or solar arrays that interconnect with the interstate high-voltage transmission system. To be eligible for procurement, these large-scale projects must be located in Illinois or in adjacent states, provided that an adjacent state's facility demonstrates that the operation of the facility will help promote this state's interest in the "health, safety, and welfare of its residents." 20 ILCS 3855/1-75(c)(1)(G)(v), (c)(1)(I) (West 2016).

¶ 13 The parties agree that large-scale generation facilities located in the service territories of the Local Utilities are eligible to sell credits to the Electric Utilities. Accordingly, the plan directs the Electric Utilities to procure credits from those large-scale generation facilities, while the Local Utilities have no obligation to do so.

¶ 14 C. The Programs

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Related

Commonwealth Edison Co. v. Illinois Commerce Commission
2019 IL App (2d) 180504 (Appellate Court of Illinois, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
2019 IL App (2d) 180504, 128 N.E.3d 1165, 432 Ill. Dec. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-edison-co-v-illinois-commerce-commission-illappct-2019.