Kink in Illinois law leaves renewable energy funds untouched

TakeAction_enewsA fund created to support renewable energy is projected to exceed $140 million by September—but state officials don’t have the authority to touch the bulk of it.

We are asking Illinoisans to tell legislators to tweak the law so that wind and solar power can become a bigger part of Illinois’ electricity portfolio and help decrease power prices across the state.

The Renewable Portfolio Standard (RPS) law passed in 2007 requires that 25 percent of electricity come from renewable energy by 2025.  Under the law, Alternative Retail Electric Suppliers (ARES)—power suppliers that have entered the state to compete with ComEd and Ameren—are required to feed money into the Renewable Energy Resources Fund (RERF).

With the dramatic increase in ARES customers in Illinois, the fund is expected to balloon this year, which is good. For example, the money could be used by the state to buy solar power from homes and small-businesses. That’s good for the the homes and small-businesses, and it’s good for the whole state because renewable energy can make our portfolio cleaner, cheaper and more reliable. 

One big problem: The Illinois Power Agency (IPA), which manages electricity supply in the state, does not have the statutory authority to effectively spend the fund. So right now, the money is going to waste, when it could be used to reduce energy costs for consumers, create jobs, and help us build a cleaner and more reliable grid.

One of CUB’s top legislative priorities in 2014 will be to free up that money. So, please use CUB’s Action Network to tell your state legislators: Change the law, so Illinois can jump-start solar and wind for the benefit of all Illinoisans!

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About Jim Chilsen

Jim is director of communications for the Citizens Utility Board (CUB)
This entry was posted in Energy and tagged , , , , . Bookmark the permalink.

2 Responses to Kink in Illinois law leaves renewable energy funds untouched

  1. Nat drucker says:

    Why does the IPA not have the statutory authority to spend the money in the Renewable Energy Resources Fund, but it does have the authority to spend other money? If I’m not mistaken, it has the authority to enter into PPAs from the common fund, correct?

  2. Bob Flanary says:

    The Renewable Portfolio Standard (RPS) law passed in 2007 requires that 25 percent of electricity come from CLEAN COAL! Please read the law. Whoever crafted the law made in much more emphatic that 25% come from coal. Which means it is likely that they will find a way to reduce the wind requirements. There have already been bills introduced to do this.

    For example, Democratic State Senator Andy Manar who brought up a bill, SB2392, which tries to redefine coal as a renewable energy source. Bill description:

    Amends the Illinois Power Agency Act and the Public Utilities Act to provide for the procurement of renewable energy resources from a clean coal facility, initial clean coal facility, and clean coal SNG facility, including amending provisions concerning Agency powers, aggregate distributed renewable energy, the renewable portfolio standard, and procurement of energy efficiency products and adding provisions concerning the development of feedstock procurement plans and feedstock procurement processes; makes corresponding changes in various other Acts.

    I am happy to bring these shenanigans to your attention.

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