BEC-22: How do the utilities meet their load and capacity requirements?

Each year the IPA submits its Electricity Procurement Plan (“Plan”) to the Illinois Commerce Commission (“ICC”) in compliance with Public Act 95-0481 (the “Act”), which includes the Illinois Power Agency Act (“IPA Act”). On September 25, 2023, the IPA filed its 2024 Electricity Procurement Plan (“2024 Plan”) to the ICC. The ICC issued a Final Order on December 14, 2023 approving the 2024 Plan. The 2024 Plan is posted to the Current Approved Plans page of the IPA’s website:

The 2024 Plan addresses the procurement of electricity for certain customers of Ameren Illinois Company (“AIC”), Commonwealth Edison Company (“ComEd”), and MidAmerican Energy Company (“MEC”) for the five-year period from June 2024 through May 2029. The 2024 Plan also provides for the procurement of capacity for AIC to satisfy a portion of its forecast requirement for the three-year period from June 2024 through May 2027.

The IPA’s 2024 hedging strategy includes procuring on and off-peak blocks of forward energy in a three-year laddered approach for each of AIC, ComEd, and MEC, and procuring a portion of AIC’s forecasted capacity requirements. For AIC, the remaining balance of capacity requirements will be secured by AIC through the MISO Planning Resource Auction (“PRA”). For ComEd, capacity requirements will be secured by ComEd through the PJM Reliability Pricing Model (“RPM”) process. For MEC, the forecasted capacity deficit will be secured by MEC through the annual MISO PRA.

Ancillary services, load balancing services, and transmission services will be purchased by AIC and MEC from the MISO marketplace and by ComEd from the PJM markets.