The Illinois Power Agency Act (“IPA Act”) requires the establishment of a market-based price benchmark. The information available regarding the benchmark development is what is provided in the IPA Act and pasted below for your convenience. As described in the Webcast held on July 27, 2023, the benchmarks are developed using a confidential methodology, in consultation with the Commission staff, Agency staff, and the procurement monitor, and are approved by the Commission.
Section 16-111.5 of the Act states that the procurement process shall include “(3) Establishment of a market-based price benchmark. As part of the development of the procurement process, the procurement administrator, in consultation with the Commission staff, Agency staff, and the procurement monitor, shall establish benchmarks for evaluating the final prices in the contracts for each of the products that will be procured through the procurement process. The benchmarks shall be based on price data for similar products for the same delivery period and same delivery hub, or other delivery hubs after adjusting for that difference. The price benchmarks may also be adjusted to take into account differences between the information reflected in the underlying data sources and the specific products and procurement process being used to procure power for the Illinois utilities. The benchmarks shall be confidential but shall be provided to, and will be subject to Commission review and approval, prior to a procurement event.”