Illinois Commission Launches Investigation into Value of Distributed Generation

The Illinois Commerce Commission on April 21 opened a proceeding to establish a method for calculating the rebate values for distributed generation within Ameren Illinois Company’ service territory. The Future Energy Jobs Act, which took effect in 2017, directed the commission to start such a process when the total generating capacity of net metering customers reaches three percent of the utility’s total peak demand. Ameren reported that it has reached the threshold and its net metering customers are expected to exceed five percent by the end of this year.

Under the 2017 law, the commission must determine a compensation mechanism that takes into account the geographic, time-based, and performance-based benefits of customer-sited renewable energy resources. The commission conducted a series of workshops in 2018, paving the way for the initial discussion on determining the value of distributed generation to the grid.

The Future Energy Jobs Bill expanded renewable energy and energy efficiency programs and created a zero-emission standard to support in-state nuclear power. The law modernized the state’s renewable portfolio standard by ensuring long-term, reliable funding sources for the purchase of renewable resources. While overall RPS annual percentage goals remain the same, the law shifted the focus from compliance through the procurement of “renewable energy resources” to compliance through the purchase and retirement of “renewable energy credits” or RECs.

The law introduced community renewable generation that allows residential and business customers who cannot host solar panels onsite to subscribe to a shared project within their electric utility service territory. For new photovoltaic distributed generation systems and community renewable generation projects, the law established an Adjustable Block Program that features administratively determined prices for RECs, a change from the prior competitive procurement model, thereby facilitating an ongoing program rather than discrete procurement events. The Illinois Solar for All Program creates opportunities for low‐income customers and communities to participate in renewable energy programs.

Ameren Illinois is a subsidiary of Ameren Corporation.