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SB2497  would implement programs and obligations related to energy storage and demand response. 

The bill would:

• require the IPA to develop a storage procurement plan resulting in utilities contracting for 1,500MW of cumulative energy storage capacity in the initial forward procurement with a biannual increase of 2,000-3,000MW thereafter, up to 15,000MW procured by delivery year 2034-25;
• allow utilities to recover through tariff charges the costs associated with the purchase of energy storage credits;
• authorize the IPA to develop a firm energy resource procurement plan for new resources, including ensuring that deployment or contracting of at least four new long-duration or multi-day energy storage resources of at least 20MW by the end of delivery year 2026;
• require utilities serving more than 300,000 customers to propose a demand response virtual power plants (VPP) program tariff;
• require utilities serving more than 300,000 customers to propose a peak remediation program tariff compensating eligible 100KW-5MW devices for discharging to the grid between 4:00 p.m. and 8:00 p.m., June-September;
• require utilities serving more than 200,000 customers to propose a stand-alone energy storage system (ESS) tariff for individual ESS up to 5MW, with no limitation on total participation;
• require utilities to demonstrate sufficient resources devoted to interconnection; and
• direct ICC to create the Office of Interconnection and Renewable Development to promote and monitor interconnections involving distributed renewable energy resources, energy storage systems, utility-scale wind projects, and utility-scale solar projects.

SB2497 and cross-listed with HB3758 is a wide-ranging bill with a number of provisions that would:

• create the Municipal and Cooperative Electric Utility Planning and Transparency Act requiring triennial integrated resource plans (IRPs) from all electric cooperatives, municipal power agencies (MPAs), and municipalities, with the first due by 11/1/25;
• outlines several requirements for MPAs and includes municipalities and MPAs under the definitions of “electricity provider” and “electricity utility” for the purposes of net metering statutes;
• authorize the IPA to develop capacity procurement plans and conduct competitive capacity procurements to ensure environmentally sustainable long-term resource adequacy across the State at the lowest cost over time;
• require utilities that have a tariff approved within one year offer at least one market-based, retail time-of-use rate;
• requires utilities serving more than 300,000 customers to, within 120 days, propose a standard offer, open access virtual power plant (VPP) program that includes provisions for both direct and aggregated participation;
• directs ICC to develop VPP capacity procurement targets and performance incentives and to update them every five years;
• allow utility cost-recovery through tariff charges for energy storage procurement plan procurements;
• provide that capacity procurement events may include a mix of contracts;
• requires each AES to make payment to an applicable electric utility for capacity, receive transfers of capacity credits, report capacity credits procured on its behalf to the applicable regional transmission organization, and submit the capacity credits to the applicable regional transmission organization under that regional transmission organization’s rules and procedures;
• require that each alternative electric supplier (AES) purchase products that include the same percentage of renewable energy resources as was procured for the utility in whose service area such customers are located for the immediately prior delivery year, with the environmental attributes, eligibility criteria, and REC retirement obligations matching those of the utility under the RPS; and
• replaces the IPA’s current five-year report on the State’s progress toward its renewable energy resource development goals with a Clean Resource Plan with a 10-year horizon and a draft resource plan.

Cross-listed with HB3779. See also HB2902, which includes only the provisions concerning  coops, MPAs , and municipalities.