IPA Includes MidAmerican Energy in 2016 Procurement Plan

In its 2016 electricity and renewable resource procurement plan – filed with the Illinois Commerce Commission (ICC) on September 28 (Case No. 15-0541) –  the Illinois Power Agency (IPA) identifies the default power suppliers for the state’s eligible retail customers as Ameren Illinois, Commonwealth Edison (ComEd); and, for the first time, MidAmerican Energy.

On April 9, MidAmerican formally notified the IPA of its intent to procure power for a portion of its eligible retail customer load through the agency and its 2016 procurement planning process.

The IPA notes that only a single retail supplier is active in the MidAmerican Energy service territory, with competitive load at 3 percent of total load and only expected to grow marginally. Switched load is expected to grow from 11 megawatts (MW) in 2015 to 14 MW in 2021, MidAmerican Energy informed the IPA.

As defined in the Illinois Public Utilities Act (PUA), “eligible retail customers” for Ameren Illinois and ComEd are residential and small commercial fixed-price customers who have not chosen service from an alternate supplier. For MidAmerican, eligible customers include residential, commercial, industrial, street lighting, and public authority customers that purchase power and energy from MidAmerican under fixed‐ price bundled service tariffs.

The plan covers a five‐year planning horizon that begins with the 2016‐2017 energy delivery year and lasts through the 2020‐2021 delivery year.

For 2016, IPA recommends that the energy and renewable resources requirements for Ameren Illinois, ComEd, and MidAmerican be fulfilled through two block energy procurements (spring and fall), a spring renewables procurement, and an early summer distributed generation procurement. In addition, the plan calls for a capacity procurement for Ameren Illinois, to be held as a Fall 2016 procurement event.

The IPA recommends a minor change to the energy hedging strategy in which the October requirements will be hedged to 75 percent in the spring procurement and to 100 percent in the fall procurement event.

The agency also recommends that the load forecasts prepared by Ameren Illinois, ComEd and MidAmerican, which form the basis for the 2016 plan, be adopted by the commission.

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