New Consumer Protection Initiatives Coming Soon!

The Illinois Power Agency (IPA) is committed to consumer protection and works diligently to ensure positive experiences for Illinois residents and businesses seeking to go solar. As part of that commitment, the IPA is in the process of launching three new initiatives to better protect customers against bad actors in the solar industry. These initiatives were originally proposed in the 2024 Long-Term Renewable Resources Procurement Plan, which was approved by the Illinois Commerce Commission (ICC) on February 20:

Development of an escrow process to be used when a participating solar company exhibits a pattern of not passing through promised incentive payments to customers.

Institution of a solar restitution program to compensate qualifying customers financially harmed by a solar contractor participating in the IPA’s solar programs.

Implementation of an increased financial incentive (in the form of a higher REC price) for Approved Vendors who take on projects for customers who have been “stranded” by their original Approved Vendor going out of business or otherwise becoming unavailable (the stranded customer REC adder initiative).

To learn more, visit the Consumer Protection Initiatives page on the Illinois Shines website.

IPA Plans Workshops to Explore Potential Process for Post-Award Contract Changes

Recent volatile market conditions have led to some utility-scale renewable projects, which were previously selected in the IPA’s Indexed REC procurements, to experience significant increases in development and construction costs between the time that the Indexed REC contract was awarded and when the project commences construction. Allowing post-award changes to contracts could help address the problem of unexpected project cost increases; however, post-award negotiation presents a fundamental shift away from the competitive procurement processes historically utilized by the IPA.

The IPA's 2024 Long-Term Renewable Resources Procurement Plan thus outlined a workshop process for exploring the feasibility of post-award contract term changes.

On June 7, the IPA released a Request for Stakeholder Feedback proposing workshop topics for stakeholders to discuss, including process, scope, and timeline questions. The Request also outlined other states’ approaches to handling similar challenges. To date, the IPA has engaged with officials from New York, Massachusetts, New Jersey, and Connecticut to discuss post-award contract change processes, and the IPA is also leveraging members from the Clean Energy States Alliance to aid in understanding how other states have addressed these issues.

If warranted, the workshops may conclude with a post-award negotiation process included in compliance filing filed with the ICC in February 2025. For more information, please visit the Downstream Negotiation for Indexed REC Contracts webpage on the IPA website.

Illinois Power Agency to Host Educational Webinar Series for Legislators and Staff

This summer, the IPA is launching a new educational webinar series entitled “IPA Summer School: Lunch & Learn for Legislators and Staff.” This series is designed to introduce legislators, government leaders, and staff to the IPA, its solar incentive programs, and the IPA’s progress toward achieving clean energy and equity goals.

Running from July through September, this four-part introductory webinar series will feature the following sessions:

Session 1: "Understanding the IPA's Solar Incentive Programs" on Thursday, July 18, from 12:15-1pm

Session 2: "Understanding how Consumer Protections for the IPA's Solar Incentive Programs Work" on Thursday, August 15, from 12:15-1pm

Session 3: "Advancing IPA's Equity Initiatives in the Clean Energy Transition" on Thursday, September 5, from 12:15-1pm

Session 4: "IPA's Clean Energy Dashboard & Progress Toward State Clean Energy Goals" on Thursday, September 19, from 12:15-1pm

Registration is required to attend these sessions. To attend, please register in advance on the IPA website. Sessions will be recorded for future viewing by registrants.

The first session, "Understanding the IPA’s Solar Incentive Programs," will take place on July 18 and cover the IPA’s solar incentive programs and how constituents can participate in these programs. Attendees will walk away with a working understanding of the Illinois Shines and Illinois Solar for All Programs, including the incentive structure and best practices for going solar. Attendees will also receive program materials to share with their constituents.

For questions or additional information, please email IPA Legislative Affairs Manager, Whitney Richardson, at Whitney.Richardson@illinois.gov.

IPA Requests Stakeholder Feedback on Capacity Hedging for Ameren Illinois Eligible Retail Customers

On June 10, the IPA issued a Request for Stakeholder Feedback for optimizing the IPA’s approach to hedging capacity for eligible retail customers of Ameren Illinois. Eligible Retail Customers are residential and small commercial customers of Illinois electric utilities who have not switched to an alternative supplier or to real-time pricing. They represent roughly 20 to 25% of the electricity market in the State.

The IPA hedges capacity for Ameren Illinois to provide a financial hedge against the recent price volatility in the Midcontinent Independent System Operator (MISO) region, as evidenced by price spikes seen over the last two years. Given the ongoing evolution of the MISO capacity market design, the market continuing to adapt to a seasonal rather than a single annual product, changing approaches to accrediting capacity resources, and tightening reserve margins in MISO, the IPA believes that the 2025 Electricity Procurement Plan should include a review and analysis of the IPA’s traditional approach to hedging capacity for Ameren Illinois eligible retail customers. This Request for Feedback allows stakeholders to provide robust comments and proposals to help inform the development of the capacity hedging strategies contained in the 2025 Plan.

Comments on the Request for Stakeholder Feedback are due on Monday, July 8, 2024, and should be sent to IPA.ContactUs@illinois.gov.

DID YOU KNOW?

On June 28, the IPA hosted an educational webinar titled Tax Incentives for Solar Energy: The 101 on the Inflation Reduction Act.

The webinar discussed Inflation Reduction Act (IRA) tax credits as they relate to solar projects for both for-profit and non-profit solar owners. Additionally, the webinar looked at demystifying the solar tax credit transferability process and shared insights on guidance on the IRA domestic content adder, among other items.

The webinar featured a presentation from Jeremy Kalin, Impact Counsel Attorney at Avisen Legal.

The recording and presentation slides from this webinar will be published on the IPA Events page.

In The Community

IPA Staff Attends Clean Energy States Alliance Members Meeting in Rosemont

Across June 3-4, the IPA co-hosted the annual Clean Energy States Alliance (CESA) 2024 Members Meeting in Rosemont, IL. Thirteen IPA staff members attended the two-day sessions. IPA Director and former CESA Board Vice President Brian Granahan delivered the meeting’s welcome remarks, underscoring the importance of sharing knowledge across states and outlining the value of platforms like CESA in helping state officials learn best practices from their nationwide peers.

The CESA Annual Meeting provides an opportunity for CESA members (mostly state agencies, including the IPA) to collaborate on multi-state efforts, learn from each other about emerging clean energy challenges, and learn best practices from other policy experts across the country.

This year’s event featured two distinct tracks of sessions—one pertaining to energy equity, and another on energy storage—and provided members a terrific learning opportunity on best practices and lessons learned. This year’s meeting included a trip to see the rooftop solar system at the Shedd Aquarium, and to learn the challenges the Shedd has faced with battery storage and frequency regulation.

For more information, please visit the CESA website.

EXTERNAL EVENTS / OUTREACH

Illinois Shines Consumer Protection Working Group, June 7
Illinois Shines x BIG ‘Chicago Grey to Green’ Event, June 7
ILSFA x Citizens Utility Board (CUB) Utility Bill Clinic, June 14
ILSFA x CUB Solar Energy in Peoria County Presentation, June 18
ILSFA: Solar You Can Trust! Presentation in Peoria, June 25

IPA Staff Spotlight

On June 17, Daniel Williams and Rand Perry joined the IPA as Fellows in the Planning and Procurement Bureau. Daniel and Rand will conduct research to support IPA clean energy initiatives and work alongside the IPA staff to produce energy white papers, presentations, reports, and stakeholder correspondences.

As recent graduates from the Harris School of Public Policy at the University of Chicago, the Agency is confident that Daniel and Rand will support the IPA in providing a clean, reliable, cost-effective, and equitable future for residents and businesses across Illinois.

The IPA Fellowship Program is a one-year paid opportunity that provides fellows with an unparallel opportunity to contribute their skills and talents to the clean energy sector. To learn more, visit the Fellowship Program page on the IPA website.