Illinois Legislation Backstopping RPS Payments

In February, 2025, Illinois adopted HB 587, which realigns responsibilities for paying energy suppliers under contract through the state’s renewable portfolio standard. The law was adopted in anticipation of potential shortfalls in the funds raised by the state’s renewable energy surcharge as power prices continue to climb. To ensure that the state would be able to pay the balances owed to renewable energy projects, the legislation authorizes utilities to spend any unspent funds associated with zero energy credits, and then, if necessary, collect any additional shortfall from electric utility customers via a separate charge. It is a useful model for states considering how to respond to volatility in energy prices that might otherwise jeopardize renewable portfolio standard goals.