Please consult Section 4.2 of the IPA’s Long-Term Renewable Resources Plan for an interpretation of this section of the Act and for the manner in which the IPA intends to establish whether a facility’s cost is or is not recovered through rates regulated by a state.

Primarily, the IPA understands that this provision was generally intended to ensure that facilities owned by a vertically integrated utility, for which REC revenues may be incidental to building and financing the facility, would not be eligible. The rate recovery status of a facility in an adjacent state will ordinarily be reviewed by the IPA when the facility applies for eligibility for the utility Renewable Portfolio Standard and the IPA expects to ask for additional documentation at that time. The IPA is not aware of any renewable facilities in Illinois that have their costs recovered through regulated rates.