§455.140. Procedures for Section 16-115D(h) Determination Based on the Operation of Combined Heat and Power Systems

a)         An ARES certified only to serve facilities owned by itself or its affiliate, and/or facilities electrically integrated with the electrical system of facilities owned by itself or its affiliate, and/or facilities adjacent to a site on which a combined heat and power system is located may seek a determination that it is exempt from application of Section 16-115D and Section 16-115(d) of the Act pursuant to Section 16-115D(h) of the Act.  An ARES whose certificate is not so limited and grants it authority to serve retail customers generally is not eligible for the exemption pursuant to Section 16-115D(h) of the Act.  An ARES claiming that Section 16-115D and Section 16-115(d) of the Act do not apply to it pursuant to Section 16-115D(h) of the Act must first request a determination that it is exempt under Section 16-115D(h) of the Act either in its original application for certification as an ARES or subsequently in a separate petition to the Commission filed pursuant to the Commission's Rules of Practice (83 Ill. Adm. Code 200) ("Section 16-115D(h) Request") and receive an order from the Commission granting its request for this determination. If the Commission enters an order granting a Section 16-115D(h) Request, the ARES shall start or continue to file annual reports under this Part and must certify and demonstrate in each annual report that the conditions giving rise to the exemption from application of the provisions of Section 16-115D and Section 16-115(d) of the Act relating to procurement of renewable energy resources continue to apply or exist in each compliance year.

 

b)         To obtain a determination that the provisions of Section 16-115D and Section 16-115(d) of the Act relating to procurement of renewable energy resources do not apply to it pursuant to Section 16-115D(h) of the Act, an ARES shall demonstrate, at a minimum, the following:

 

1)         that it operates a combined heat and power system in Illinois or that it has a corporate affiliate that operates a combined heat and power system in this State;

 

2)         that this combined heat and power system supplies electricity primarily to or for the benefit of:

 

A)        facilities owned by the ARES, its subsidiary, or other corporate affiliate;

 

B)        facilities electrically integrated with the electrical system of facilities owned by the ARES, its subsidiary, or other corporate affiliate; or

 

C)        facilities that are adjacent to the site on which the combined heat and power system is located; and

 

3)         that it is certified, or requesting certification, only to serve facilities owned by itself or its affiliate, and/or facilities adjacent to a site or which a combined heat and power system is located.

 

c)         For purposes of this Part, a combined heat and power system means a cogeneration facility, as defined in 18 CFR 292.202, that meets the criteria for qualifying cogeneration facilities specified in 18 CFR 292.205. These incorporations of federal standards are as of June 1, 2010. No later amendment or edition is included.

 

d)         A Section 16-115D(h) Request shall include, at a minimum, the following:

 

1)         A description of the combined heat and power system or systems in Illinois relied upon pursuant to Section 16-115D(h) for the exemption from application of the provisions of Section 16-115D and Section 16-115(d) of the Act.

 

2)         For each system identified in subsection (d)(1), documentation of compliance with the information collection requirements established by the Federal Energy Regulatory Commission (FERC) in FERC Form No. 556, or any successor information collection requirements established by FERC, to obtain and maintain status as a qualifying facility.  (See 18 CFR 131.80 as of June 1, 2010. No later amendment or edition is included.) This documentation shall include a copy of all applications for self-certification, self-recertification, certification, and recertification, and their associated FERC docket numbers. In the alternative, a petitioner may provide this documentation with the testimony submitted with its petition, but shall indicate in the petition that the documentation is attached to its testimony.  In the further alternative, if designation of the subject combined heat and power system as a qualifying facility has not been sought from the FERC, petitioner may present information and documentation demonstrating that the system meets the criteria for a qualifying facility specified in 18 CFR 292.205 in its testimony. (See 18 CFR 292.205 as of June 1, 2010. No amendment or later addition is included.)

 

3)         For each combined heat and power system identified in subsection (d)(1), a proposed method to demonstrate that, for the initial and each subsequent compliance period, the petitioner or its corporate affiliate operated the system and that the system supplied electricity primarily to or for the benefit of:

 

A)        facilities owned by the petitioner, its subsidiary, or other corporate affiliate;

 

B)        facilities electrically integrated with the electrical system of facilities owned by the petitioner, its subsidiary, or other corporate affiliate; or

 

C)        facilities that are adjacent to the site on which the combined heat and power system is located.

 

e)         Direct testimony shall be filed at the time the petition is filed. At a minimum, this testimony shall demonstrate that, for the initial compliance period over which the exemption is sought, using, to the extent practicable, the methods provided in subsection (d)(3), the petitioner or its corporate affiliate operated (or will operate) the system and that the system supplied (or will supply) electricity primarily to or for the benefit of:

 

1)         facilities owned by the petitioner, its subsidiary, or other corporate affiliate;

 

2)         facilities electrically integrated with the electrical system of facilities owned by the petitioner, its subsidiary, or other corporate affiliate; or

 

3)         facilities that are adjacent to the site on which the combined heat and power system is located.

 

f)         The Commission shall specify the method or methods it adopted for making the demonstrations described in subsection (d)(3), and annual reports shall utilize the same method or methods to make these demonstrations for future compliance periods.

 

g)         For any subsequent compliance period, the ARES or shall include within the annual report required by Section 455.120 information and documentation sufficient to make the demonstrations described in subsection (d)(3) using the methods adopted by the Commission pursuant to subsection (f) for the combined heat and power systems found by the Commission to meet the criteria listed in Section 16-115D(h) of the Act for the initial compliance period.

 

h)         In the case of any Section 16-115D(h) Request submitted by separate petition filed on or before June 15, 2010, the Commission shall enter an order granting or denying the request no more than 60 days after the petition is filed.  If the Commission enters an order granting a Section 16-115D(h) Request, the provisions of Section 16-115D and Section 16-115(d) of the Act relating to procurement of renewable energy resources shall not apply to the ARES pursuant to Section 16-115D(h) of the Act.

 

i)          Unless otherwise ordered by the Commission, the order granting or denying any petition filed under this Section 455.140 shall be entered within 90 days after the petition is filed.