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Rep. Kevin A. McCarthy
Filed: 5/25/2011
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1 | | AMENDMENT TO SENATE BILL 1652
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2 | | AMENDMENT NO. ______. Amend Senate Bill 1652 by replacing |
3 | | everything after the enacting clause with the following:
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4 | | "Section 5. The Illinois Power Agency Act is amended by |
5 | | adding Sections 1-56A and 1-76 as follows: |
6 | | (20 ILCS 3855/1-56A new) |
7 | | Sec. 1-56A. Distributed renewable energy generation |
8 | | devices. |
9 | | (a) Of the renewable energy resources procured pursuant to |
10 | | Section 1-56 of this Act, at least the following percentages |
11 | | shall come from distributed renewable energy generation |
12 | | devices: 0.5% by June 1, 2013, 0.75% by June 1, 2014, and 1% by |
13 | | June 1, 2015 and thereafter. To the extent available, half of |
14 | | the renewable energy resources procured from distributed |
15 | | renewable energy generation shall come from devices of less |
16 | | than 25 kilowatts in nameplate capacity. Renewable energy |
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1 | | resources procured from distributed renewable energy |
2 | | generation devices may also count towards the required |
3 | | percentages for wind and solar photovoltaics. Procurement of |
4 | | renewable energy resources from distributed renewable energy |
5 | | generation devices shall be done on an annual basis through |
6 | | multi-year contracts of no less than 5 years and shall consist |
7 | | solely of renewable energy credits. |
8 | | The Agency shall create credit requirements for suppliers |
9 | | of distributed renewable energy. In order to minimize the |
10 | | administrative burden on contracting entities, the Agency |
11 | | shall solicit the use of third-party organizations to aggregate |
12 | | distributed renewable energy into groups of no less than one |
13 | | megawatt in installed capacity. These third-party |
14 | | organizations shall administer contracts with individual |
15 | | distributed renewable energy generation device owners. An |
16 | | individual distributed renewable energy generation device |
17 | | owner shall have the ability to measure the output of his or |
18 | | her distributed renewable energy generation device. |
19 | | For purposes of this subsection (a), "distributed |
20 | | renewable energy generation device" means a device that is: (1) |
21 | | powered by wind, solar thermal energy, photovoltaic cells and |
22 | | panels, biodiesel, crops and untreated and unadulterated |
23 | | organic waste biomass, tree waste, and hydropower that does not |
24 | | involve new construction or significant expansion of |
25 | | hydropower dams; (2) interconnected at the distribution system |
26 | | level of an electric utility as defined in Section 1-10 of this |
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1 | | Act, an alternative retail electric supplier as defined in |
2 | | Section 16-102 of the Public Utilities Act, a municipal utility |
3 | | as defined in Section 3-105 of the Public Utilities Act, or a |
4 | | rural electric cooperative as defined in Section 3-119 of the |
5 | | Public Utilities Act; (3) located on the customer side of the |
6 | | customer's electric meter and is primarily used to offset that |
7 | | customer's electricity load; and (4) limited in nameplate |
8 | | capacity to no more than 2,000 kilowatts. |
9 | | (b) The Agency's procurement of renewable energy resources |
10 | | pursuant to subsection (c) of Section 1-56 of this Act shall, |
11 | | whenever possible, include entering into long-term contracts |
12 | | on an annual basis for a portion of the incremental requirement |
13 | | for the given procurement year. |
14 | | (c) If Section 16-108.5 of the Public Utilities Act becomes |
15 | | inoperative with respect to one or more participating utilities |
16 | | as set forth in subsection (g) or (h) of that Section, then |
17 | | Sections 1-56A and 1-76 of this Act and Sections 8-103A, |
18 | | 16-108.5, 16-108.6, 16-108.7, 16-108.8, and 16-111.5B of the |
19 | | Public Utilities Act shall become inoperative as to each |
20 | | affected utility and its service area on the same date as |
21 | | Section 16-108.5 becomes inoperative. |
22 | | (20 ILCS 3855/1-76 new) |
23 | | Sec. 1-76. Distributed renewable energy generation |
24 | | devices. |
25 | | (a) Of the renewable energy resources procured pursuant to |
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1 | | Section 1-75 of this Act, at least the following percentages |
2 | | shall come from distributed renewable energy generation |
3 | | devices: 0.5% by June 1, 2013, 0.75% by June 1, 2014, and 1% by |
4 | | June 1, 2015 and thereafter. To the extent available, half of |
5 | | the renewable energy resources procured from distributed |
6 | | renewable energy generation shall come from devices of less |
7 | | than 25 kilowatts in nameplate capacity. Renewable energy |
8 | | resources procured from distributed renewable energy |
9 | | generation devices may also count towards the required |
10 | | percentages for wind and solar photovoltaics. Procurement of |
11 | | renewable energy resources from distributed renewable energy |
12 | | generation devices shall be done on an annual basis through |
13 | | multi-year contracts of no less than 5 years and shall consist |
14 | | solely of renewable energy credits. |
15 | | The Agency shall create credit requirements for suppliers |
16 | | of distributed renewable energy. In order to minimize the |
17 | | administrative burden on contracting entities, the Agency |
18 | | shall solicit the use of third-party organizations to aggregate |
19 | | distributed renewable energy into groups of no less than one |
20 | | megawatt in installed capacity. These third-party |
21 | | organizations shall administer contracts with individual |
22 | | distributed renewable energy generation device owners. An |
23 | | individual distributed renewable energy generation device |
24 | | owner shall have the ability to measure the output of his or |
25 | | her distributed renewable energy generation device. |
26 | | For purposes of this subsection (a), "distributed |
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1 | | renewable energy generation device" has the same meaning as set |
2 | | forth in Section 1-56A of this Act. |
3 | | (b) If Section 16-108.5 of the Public Utilities Act becomes |
4 | | inoperative with respect to one or more participating utilities |
5 | | as set forth in subsection (g) or (h) of that Section, then |
6 | | Sections 1-56A and 1-76 of this Act and Sections 8-103A, |
7 | | 16-108.5, 16-108.6, 16-108.7, 16-108.8, and 16-111.5B of the |
8 | | Public Utilities Act shall become inoperative as to each |
9 | | affected utility and its service area on the same date as |
10 | | Section 16-108.5 becomes inoperative. |
11 | | Section 10. The Public Utilities Act is amended by changing |
12 | | Sections 8-103, 16-107.5, 16-111.5, 16-111.7, and 16-128 and by |
13 | | adding Sections 8-103A, 16-108.5, 16-108.6, 16-108.7, |
14 | | 16-108.8, 16-111.5B, and 16-128A as follows:
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15 | | (220 ILCS 5/8-103)
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16 | | Sec. 8-103. Energy efficiency and demand-response |
17 | | measures. |
18 | | (a) It is the policy of the State that electric utilities |
19 | | are required to use cost-effective energy efficiency and |
20 | | demand-response measures to reduce delivery load. Requiring |
21 | | investment in cost-effective energy efficiency and |
22 | | demand-response measures will reduce direct and indirect costs |
23 | | to consumers by decreasing environmental impacts and by |
24 | | avoiding or delaying the need for new generation, transmission, |
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1 | | and distribution infrastructure. It serves the public interest |
2 | | to allow electric utilities to recover costs for reasonably and |
3 | | prudently incurred expenses for energy efficiency and |
4 | | demand-response measures. As used in this Section, |
5 | | "cost-effective" means that the measures satisfy the total |
6 | | resource cost test. The low-income measures described in |
7 | | subsection (f)(4) of this Section shall not be required to meet |
8 | | the total resource cost test. For purposes of this Section, the |
9 | | terms "energy-efficiency", "demand-response", "electric |
10 | | utility", and "total resource cost test" shall have the |
11 | | meanings set forth in the Illinois Power Agency Act. For |
12 | | purposes of this Section, the amount per kilowatthour means the |
13 | | total amount paid for electric service expressed on a per |
14 | | kilowatthour basis. For purposes of this Section, the total |
15 | | amount paid for electric service includes without limitation |
16 | | estimated amounts paid for supply, transmission, distribution, |
17 | | surcharges, and add-on-taxes. |
18 | | (b) Electric utilities shall implement cost-effective |
19 | | energy efficiency measures to meet the following incremental |
20 | | annual energy savings goals: |
21 | | (1) 0.2% of energy delivered in the year commencing |
22 | | June 1, 2008; |
23 | | (2) 0.4% of energy delivered in the year commencing |
24 | | June 1, 2009; |
25 | | (3) 0.6% of energy delivered in the year commencing |
26 | | June 1, 2010; |
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1 | | (4) 0.8% of energy delivered in the year commencing |
2 | | June 1, 2011; |
3 | | (5) 1% of energy delivered in the year commencing June |
4 | | 1, 2012; |
5 | | (6) 1.4% of energy delivered in the year commencing |
6 | | June 1, 2013; |
7 | | (7) 1.8% of energy delivered in the year commencing |
8 | | June 1, 2014; and |
9 | | (8) 2% of energy delivered in the year commencing June |
10 | | 1, 2015 and each year thereafter. |
11 | | (c) Electric utilities shall implement cost-effective |
12 | | demand-response measures to reduce peak demand by 0.1% over the |
13 | | prior year for eligible retail customers, as defined in Section |
14 | | 16-111.5 of this Act, and for customers that elect hourly |
15 | | service from the utility pursuant to Section 16-107 of this |
16 | | Act, provided those customers have not been declared |
17 | | competitive. This requirement commences June 1, 2008 and |
18 | | continues for 10 years. |
19 | | (d) Notwithstanding the requirements of subsections (b) |
20 | | and (c) of this Section, an electric utility shall reduce the |
21 | | amount of energy efficiency and demand-response measures |
22 | | implemented in any single year by an amount necessary to limit |
23 | | the estimated average increase in the amounts paid by retail |
24 | | customers in connection with electric service due to the cost |
25 | | of those measures to: |
26 | | (1) in 2008, no more than 0.5% of the amount paid per |
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1 | | kilowatthour by those customers during the year ending May |
2 | | 31, 2007; |
3 | | (2) in 2009, the greater of an additional 0.5% of the |
4 | | amount paid per kilowatthour by those customers during the |
5 | | year ending May 31, 2008 or 1% of the amount paid per |
6 | | kilowatthour by those customers during the year ending May |
7 | | 31, 2007; |
8 | | (3) in 2010, the greater of an additional 0.5% of the |
9 | | amount paid per kilowatthour by those customers during the |
10 | | year ending May 31, 2009 or 1.5% of the amount paid per |
11 | | kilowatthour by those customers during the year ending May |
12 | | 31, 2007; |
13 | | (4) in 2011, the greater of an additional 0.5% of the |
14 | | amount paid per kilowatthour by those customers during the |
15 | | year ending May 31, 2010 or 2% of the amount paid per |
16 | | kilowatthour by those customers during the year ending May |
17 | | 31, 2007; and
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18 | | (5) thereafter, the amount of energy efficiency and |
19 | | demand-response measures implemented for any single year |
20 | | shall be reduced by an amount necessary to limit the |
21 | | estimated average net increase due to the cost of these |
22 | | measures included in the amounts paid by eligible retail |
23 | | customers in connection with electric service to no more |
24 | | than the greater of 2.015% of the amount paid per |
25 | | kilowatthour by those customers during the year ending May |
26 | | 31, 2007 or the incremental amount per kilowatthour paid |
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1 | | for these measures in 2011.
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2 | | No later than June 30, 2011, the Commission shall review |
3 | | the limitation on the amount of energy efficiency and |
4 | | demand-response measures implemented pursuant to this Section |
5 | | and report to the General Assembly its findings as to whether |
6 | | that limitation unduly constrains the procurement of energy |
7 | | efficiency and demand-response measures. |
8 | | (e) Electric utilities shall be responsible for overseeing |
9 | | the design, development, and filing of energy efficiency and |
10 | | demand-response plans with the Commission. Electric utilities |
11 | | shall implement 100% of the demand-response measures in the |
12 | | plans. Electric utilities shall implement 75% of the energy |
13 | | efficiency measures approved by the Commission, and may, as |
14 | | part of that implementation, outsource various aspects of |
15 | | program development and implementation. The remaining 25% of |
16 | | those energy efficiency measures approved by the Commission |
17 | | shall be implemented by the Department of Commerce and Economic |
18 | | Opportunity, and must be designed in conjunction with the |
19 | | utility and the filing process. The Department may outsource |
20 | | development and implementation of energy efficiency measures. |
21 | | A minimum of 10% of the entire portfolio of cost-effective |
22 | | energy efficiency measures shall be procured from units of |
23 | | local government, municipal corporations, school districts, |
24 | | and community college districts. The Department shall |
25 | | coordinate the implementation of these measures. |
26 | | The apportionment of the dollars to cover the costs to |
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1 | | implement the Department's share of the portfolio of energy |
2 | | efficiency measures shall be made to the Department once the |
3 | | Department has executed grants or contracts for energy |
4 | | efficiency measures and provided supporting documentation for |
5 | | those grants and the contracts to the utility. |
6 | | The details of the measures implemented by the Department |
7 | | shall be submitted by the Department to the Commission in |
8 | | connection with the utility's filing regarding the energy |
9 | | efficiency and demand-response measures that the utility |
10 | | implements. |
11 | | A utility providing approved energy efficiency and |
12 | | demand-response measures in the State shall be permitted to |
13 | | recover costs of those measures through an automatic adjustment |
14 | | clause tariff filed with and approved by the Commission. The |
15 | | tariff shall be established outside the context of a general |
16 | | rate case. Each year the Commission shall initiate a review to |
17 | | reconcile any amounts collected with the actual costs and to |
18 | | determine the required adjustment to the annual tariff factor |
19 | | to match annual expenditures. |
20 | | Each utility shall include, in its recovery of costs, the |
21 | | costs estimated for both the utility's and the Department's |
22 | | implementation of energy efficiency and demand-response |
23 | | measures. Costs collected by the utility for measures |
24 | | implemented by the Department shall be submitted to the |
25 | | Department pursuant to Section 605-323 of the Civil |
26 | | Administrative Code of Illinois and shall be used by the |
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1 | | Department solely for the purpose of implementing these |
2 | | measures. A utility shall not be required to advance any moneys |
3 | | to the Department but only to forward such funds as it has |
4 | | collected. The Department shall report to the Commission on an |
5 | | annual basis regarding the costs actually incurred by the |
6 | | Department in the implementation of the measures. Any changes |
7 | | to the costs of energy efficiency measures as a result of plan |
8 | | modifications shall be appropriately reflected in amounts |
9 | | recovered by the utility and turned over to the Department. |
10 | | The portfolio of measures, administered by both the |
11 | | utilities and the Department, shall, in combination, be |
12 | | designed to achieve the annual savings targets described in |
13 | | subsections (b) and (c) of this Section, as modified by |
14 | | subsection (d) of this Section. |
15 | | The utility and the Department shall agree upon a |
16 | | reasonable portfolio of measures and determine the measurable |
17 | | corresponding percentage of the savings goals associated with |
18 | | measures implemented by the utility or Department. |
19 | | No utility shall be assessed a penalty under subsection (f) |
20 | | of this Section for failure to make a timely filing if that |
21 | | failure is the result of a lack of agreement with the |
22 | | Department with respect to the allocation of responsibilities |
23 | | or related costs or target assignments. In that case, the |
24 | | Department and the utility shall file their respective plans |
25 | | with the Commission and the Commission shall determine an |
26 | | appropriate division of measures and programs that meets the |
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1 | | requirements of this Section. |
2 | | If the Department is unable to meet incremental annual |
3 | | performance goals for the portion of the portfolio implemented |
4 | | by the Department, then the utility and the Department shall |
5 | | jointly submit a modified filing to the Commission explaining |
6 | | the performance shortfall and recommending an appropriate |
7 | | course going forward, including any program modifications that |
8 | | may be appropriate in light of the evaluations conducted under |
9 | | item (7) of subsection (f) of this Section. In this case, the |
10 | | utility obligation to collect the Department's costs and turn |
11 | | over those funds to the Department under this subsection (e) |
12 | | shall continue only if the Commission approves the |
13 | | modifications to the plan proposed by the Department. |
14 | | (f) No later than November 15, 2007, each electric utility |
15 | | shall file an energy efficiency and demand-response plan with |
16 | | the Commission to meet the energy efficiency and |
17 | | demand-response standards for 2008 through 2010. No later than |
18 | | October 1, 2010, each electric utility shall file an energy |
19 | | efficiency and demand-response plan with the Commission to meet |
20 | | the energy efficiency and demand-response standards for 2011 |
21 | | through 2013. Every 3 years thereafter, each electric utility |
22 | | shall file, no later than September October 1, an energy |
23 | | efficiency and demand-response plan with the Commission. If a |
24 | | utility does not file such a plan by September October 1 of an |
25 | | applicable year, it shall face a penalty of $100,000 per day |
26 | | until the plan is filed. Each utility's plan shall set forth |
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1 | | the utility's proposals to meet the utility's portion of the |
2 | | energy efficiency standards identified in subsection (b) and |
3 | | the demand-response standards identified in subsection (c) of |
4 | | this Section as modified by subsections (d) and (e), taking |
5 | | into account the unique circumstances of the utility's service |
6 | | territory. The Commission shall seek public comment on the |
7 | | utility's plan and shall issue an order approving or |
8 | | disapproving each plan within 5 3 months after its submission. |
9 | | If the Commission disapproves a plan, the Commission shall, |
10 | | within 30 days, describe in detail the reasons for the |
11 | | disapproval and describe a path by which the utility may file a |
12 | | revised draft of the plan to address the Commission's concerns |
13 | | satisfactorily. If the utility does not refile with the |
14 | | Commission within 60 days, the utility shall be subject to |
15 | | penalties at a rate of $100,000 per day until the plan is |
16 | | filed. This process shall continue, and penalties shall accrue, |
17 | | until the utility has successfully filed a portfolio of energy |
18 | | efficiency and demand-response measures. Penalties shall be |
19 | | deposited into the Energy Efficiency Trust Fund. In submitting |
20 | | proposed energy efficiency and demand-response plans and |
21 | | funding levels to meet the savings goals adopted by this Act |
22 | | the utility shall: |
23 | | (1) Demonstrate that its proposed energy efficiency |
24 | | and demand-response measures will achieve the requirements |
25 | | that are identified in subsections (b) and (c) of this |
26 | | Section, as modified by subsections (d) and (e). |
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1 | | (2) Present specific proposals to implement new |
2 | | building and appliance standards that have been placed into |
3 | | effect. |
4 | | (3) Present estimates of the total amount paid for |
5 | | electric service expressed on a per kilowatthour basis |
6 | | associated with the proposed portfolio of measures |
7 | | designed to meet the requirements that are identified in |
8 | | subsections (b) and (c) of this Section, as modified by |
9 | | subsections (d) and (e). |
10 | | (4) Coordinate with the Department to present a |
11 | | portfolio of energy efficiency measures proportionate to |
12 | | the share of total annual utility revenues in Illinois from |
13 | | households at or below 150% of the poverty level. The |
14 | | energy efficiency programs shall be targeted to households |
15 | | with incomes at or below 80% of area median income. |
16 | | (5) Demonstrate that its overall portfolio of energy |
17 | | efficiency and demand-response measures, not including |
18 | | programs covered by item (4) of this subsection (f), are |
19 | | cost-effective using the total resource cost test and |
20 | | represent a diverse cross-section of opportunities for |
21 | | customers of all rate classes to participate in the |
22 | | programs. |
23 | | (6) Include a proposed cost-recovery tariff mechanism |
24 | | to fund the proposed energy efficiency and demand-response |
25 | | measures and to ensure the recovery of the prudently and |
26 | | reasonably incurred costs of Commission-approved programs. |
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1 | | (7) Provide for an annual independent evaluation of the |
2 | | performance of the cost-effectiveness of the utility's |
3 | | portfolio of measures and the Department's portfolio of |
4 | | measures, as well as a full review of the 3-year results of |
5 | | the broader net program impacts and, to the extent |
6 | | practical, for adjustment of the measures on a |
7 | | going-forward basis as a result of the evaluations. The |
8 | | resources dedicated to evaluation shall not exceed 3% of |
9 | | portfolio resources in any given year. |
10 | | (g) No more than 3% of energy efficiency and |
11 | | demand-response program revenue may be allocated for |
12 | | demonstration of breakthrough equipment and devices. |
13 | | (h) This Section does not apply to an electric utility that |
14 | | on December 31, 2005 provided electric service to fewer than |
15 | | 100,000 customers in Illinois. |
16 | | (i) If, after 2 years, an electric utility fails to meet |
17 | | the efficiency standard specified in subsection (b) of this |
18 | | Section, as modified by subsections (d) and (e), it shall make |
19 | | a contribution to the Low-Income Home Energy Assistance |
20 | | Program. The combined total liability for failure to meet the |
21 | | goal shall be $1,000,000, which shall be assessed as follows: a |
22 | | large electric utility shall pay $665,000, and a medium |
23 | | electric utility shall pay $335,000. If, after 3 years, an |
24 | | electric utility fails to meet the efficiency standard |
25 | | specified in subsection (b) of this Section, as modified by |
26 | | subsections (d) and (e), it shall make a contribution to the |
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1 | | Low-Income Home Energy Assistance Program. The combined total |
2 | | liability for failure to meet the goal shall be $1,000,000, |
3 | | which shall be assessed as follows: a large electric utility |
4 | | shall pay $665,000, and a medium electric utility shall pay |
5 | | $335,000. In addition, the responsibility for implementing the |
6 | | energy efficiency measures of the utility making the payment |
7 | | shall be transferred to the Illinois Power Agency if, after 3 |
8 | | years, or in any subsequent 3-year period, the utility fails to |
9 | | meet the efficiency standard specified in subsection (b) of |
10 | | this Section, as modified by subsections (d) and (e). The |
11 | | Agency shall implement a competitive procurement program to |
12 | | procure resources necessary to meet the standards specified in |
13 | | this Section as modified by subsections (d) and (e), with costs |
14 | | for those resources to be recovered in the same manner as |
15 | | products purchased through the procurement plan as provided in |
16 | | Section 16-111.5. The Director shall implement this |
17 | | requirement in connection with the procurement plan as provided |
18 | | in Section 16-111.5. |
19 | | For purposes of this Section, (i) a "large electric |
20 | | utility" is an electric utility that, on December 31, 2005, |
21 | | served more than 2,000,000 electric customers in Illinois; (ii) |
22 | | a "medium electric utility" is an electric utility that, on |
23 | | December 31, 2005, served 2,000,000 or fewer but more than |
24 | | 100,000 electric customers in Illinois; and (iii) Illinois |
25 | | electric utilities that are affiliated by virtue of a common |
26 | | parent company are considered a single electric utility. |
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1 | | (j) If, after 3 years, or any subsequent 3-year period, the |
2 | | Department fails to implement the Department's share of energy |
3 | | efficiency measures required by the standards in subsection |
4 | | (b), then the Illinois Power Agency may assume responsibility |
5 | | for and control of the Department's share of the required |
6 | | energy efficiency measures. The Agency shall implement a |
7 | | competitive procurement program to procure resources necessary |
8 | | to meet the standards specified in this Section, with the costs |
9 | | of these resources to be recovered in the same manner as |
10 | | provided for the Department in this Section.
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11 | | (k) No electric utility shall be deemed to have failed to |
12 | | meet the energy efficiency standards to the extent any such |
13 | | failure is due to a failure of the Department or the Agency.
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14 | | (Source: P.A. 95-481, eff. 8-28-07; 95-876, eff. 8-21-08; |
15 | | 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; 96-1000, eff. |
16 | | 7-2-10.)
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17 | | (220 ILCS 5/8-103A new) |
18 | | Sec. 8-103A. Energy efficiency analysis. |
19 | | (a) Beginning in 2013, an electric utility subject to the |
20 | | requirements of Section 8-103 of this Act shall include in its |
21 | | energy efficiency and demand-response plan submitted pursuant |
22 | | to subsection (f) of Section 8-103 an analysis of additional |
23 | | cost-effective energy efficiency measures that could be |
24 | | implemented, by customer class, absent the limitations set |
25 | | forth in subsection (d) of Section 8-103. In seeking public |
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1 | | comment on the electric utility's plan pursuant to subsection |
2 | | (f) of Section 8-103, the Commission shall include, beginning |
3 | | in 2013, the assessment of additional cost-effective energy |
4 | | efficiency measures submitted pursuant to this Section. For |
5 | | purposes of this Section, the term "energy efficiency" shall |
6 | | have the meaning set forth in Section 1-10 of the Illinois |
7 | | Power Agency Act, and the term "cost-effective" shall have the |
8 | | meaning set forth in subsection (a) of Section 8-103 of this |
9 | | Act. |
10 | | (b) If Section 16-108.5 of this Act becomes inoperative |
11 | | with respect to one or more participating utilities as set |
12 | | forth in subsection (g) or (h) of that Section, then Sections |
13 | | 1-56A and 1-76 of the Illinois Power Agency Act and Sections |
14 | | 8-103A, 16-108.5, 16-108.6, 16-108.7, 16-108.8, and 16-111.5B |
15 | | of this Act shall become inoperative as to each affected |
16 | | utility and its service area on the same date as Section |
17 | | 16-108.5 becomes inoperative. |
18 | | (220 ILCS 5/16-107.5)
|
19 | | Sec. 16-107.5. Net electricity metering. |
20 | | (a) The Legislature finds and declares that a program to |
21 | | provide net electricity
metering, as defined in this Section,
|
22 | | for eligible customers can encourage private investment in |
23 | | renewable energy
resources, stimulate
economic growth, enhance |
24 | | the continued diversification of Illinois' energy
resource |
25 | | mix, and protect
the Illinois environment.
|
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1 | | (b) As used in this Section, (i) "eligible customer" means |
2 | | a retail
customer that owns or operates a
solar, wind, or other |
3 | | eligible renewable electrical generating facility with a rated |
4 | | capacity of not more than
2,000 kilowatts that is
located on |
5 | | the customer's premises and is intended primarily to offset the |
6 | | customer's
own electrical requirements; (ii) "electricity |
7 | | provider" means an electric utility or alternative retail |
8 | | electric supplier; (iii) "eligible renewable electrical |
9 | | generating facility" means a generator powered by solar |
10 | | electric energy, wind, dedicated crops grown for electricity |
11 | | generation, agricultural residues, untreated and unadulterated |
12 | | wood waste, landscape trimmings, livestock manure, anaerobic |
13 | | digestion of livestock or food processing waste, fuel cells or |
14 | | microturbines powered by renewable fuels, or hydroelectric |
15 | | energy; and (iv) "net electricity metering" (or "net metering") |
16 | | means the
measurement, during the
billing period applicable to |
17 | | an eligible customer, of the net amount of
electricity supplied |
18 | | by an
electricity provider to the customer's premises or |
19 | | provided to the electricity provider by the customer.
|
20 | | (c) A net metering facility shall be equipped with metering |
21 | | equipment that can measure the flow of electricity in both |
22 | | directions at the same rate. |
23 | | (1) For eligible residential customers whose electric |
24 | | service has not been declared competitive pursuant to |
25 | | Section 16-113 of this Act and whose electric delivery |
26 | | service is provided and measured on a kilowatt-hour basis |
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1 | | and electric supply service is not provided based on hourly |
2 | | pricing , this shall typically be accomplished through use |
3 | | of a single, bi-directional meter. If the eligible |
4 | | customer's existing electric revenue meter does not meet |
5 | | this requirement, the electricity provider shall arrange |
6 | | for the local electric utility or a meter service provider |
7 | | to install and maintain a new revenue meter at the |
8 | | electricity provider's expense. |
9 | | (2) For eligible customers whose electric service has |
10 | | not been declared competitive pursuant to Section 16-113 of |
11 | | this Act and whose electric delivery service is provided |
12 | | and measured on a kilowatt demand basis and electric supply |
13 | | service is not provided based on hourly pricing, this shall |
14 | | typically be accomplished through use of a dual channel |
15 | | meter capable of measuring the flow of electricity both |
16 | | into and out of the customer's facility at the same rate |
17 | | and ratio. If such customer's existing electric revenue |
18 | | meter does not meet this requirement, then the electricity |
19 | | provider shall arrange for the local electric utility or a |
20 | | meter service provider to install and maintain a new |
21 | | revenue meter at the electricity provider's expense. |
22 | | (3) For all other eligible customers, For |
23 | | non-residential customers, the electricity provider may |
24 | | arrange for the local electric utility or a meter service |
25 | | provider to install and maintain metering equipment |
26 | | capable of measuring the flow of electricity both into and |
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1 | | out of the customer's facility at the same rate and ratio, |
2 | | typically through the use of a dual channel meter. If the |
3 | | eligible customer's existing electric revenue meter does |
4 | | not meet this requirement, then the costs of installing |
5 | | such equipment shall be paid for by the customer. For |
6 | | generators with a nameplate rating of 40 kilowatts and |
7 | | below, the costs of installing such equipment shall be paid |
8 | | for by the electricity provider. For generators with a |
9 | | nameplate rating over 40 kilowatts and up to 2,000 |
10 | | kilowatts capacity, the costs of installing such equipment |
11 | | shall be paid for by the customer. Any subsequent revenue |
12 | | meter change necessitated by any eligible customer shall be |
13 | | paid for by the customer.
|
14 | | (d) An electricity provider shall
measure and charge or |
15 | | credit for the net
electricity supplied to eligible customers |
16 | | or provided by eligible customers whose electric service has |
17 | | not been declared competitive pursuant to Section 16-113 of the |
18 | | Act and whose electric delivery service is provided and |
19 | | measured on a kilowatt-hour basis and electric supply service |
20 | | is not provided based on hourly pricing in
the following |
21 | | manner:
|
22 | | (1) If the amount of electricity used by the customer |
23 | | during the billing
period exceeds the
amount of electricity |
24 | | produced by the customer, the electricity provider shall |
25 | | charge the customer for the net electricity supplied to and |
26 | | used
by the customer as provided in subsection (e-5) (e) of |
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1 | | this Section.
|
2 | | (2) If the amount of electricity produced by a customer |
3 | | during the billing period exceeds the amount of electricity |
4 | | used by the customer during that billing period, the |
5 | | electricity provider supplying that customer shall apply a |
6 | | 1:1 kilowatt-hour credit to a subsequent bill for service |
7 | | to the customer for the net electricity supplied to the |
8 | | electricity provider. The electricity provider shall |
9 | | continue to carry over any excess kilowatt-hour credits |
10 | | earned and apply those credits to subsequent billing |
11 | | periods to offset any customer-generator consumption in |
12 | | those billing periods until all credits are used or until |
13 | | the end of the annualized period.
|
14 | | (3) At the end of the year or annualized over the |
15 | | period that service is supplied by means of net metering, |
16 | | or in the event that the retail customer terminates service |
17 | | with the electricity provider prior to the end of the year |
18 | | or the annualized period, any remaining credits in the |
19 | | customer's account shall expire.
|
20 | | (e) An electricity provider shall measure and charge or |
21 | | credit for the net electricity supplied to eligible customers |
22 | | whose electric service has not been declared competitive |
23 | | pursuant to Section 16-113 of this Act and whose electric |
24 | | delivery service is provided and measured on a kilowatt demand |
25 | | basis and electric supply service is not provided based on |
26 | | hourly pricing in the following manner: |
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1 | | (1) If the amount of electricity used by the customer |
2 | | during the billing period exceeds the amount of electricity |
3 | | produced by the customer, then the electricity provider |
4 | | shall charge the customer for the net electricity supplied |
5 | | to and used by the customer as provided in subsection (e-5) |
6 | | of this Section, provided that the electricity provider |
7 | | shall assess and the customer remains responsible for all |
8 | | taxes, fees, and utility delivery charges that would |
9 | | otherwise be applicable to the gross amount of |
10 | | kilowatt-hours supplied to the eligible customer by the |
11 | | electricity provider. |
12 | | (2) If the amount of electricity produced by a customer |
13 | | during the billing period exceeds the amount of electricity |
14 | | used by the customer during that billing period, then the |
15 | | electricity provider supplying that customer shall apply a |
16 | | 1:1 kilowatt-hour credit that reflects the kilowatt-hour |
17 | | based charges in the customer's electric service rate to a |
18 | | subsequent bill for service to the customer for the net |
19 | | electricity supplied to the electricity provider. The |
20 | | electricity provider shall continue to carry over any |
21 | | excess kilowatt-hour credits earned and apply those |
22 | | credits to subsequent billing periods to offset any |
23 | | customer-generator consumption in those billing periods |
24 | | until all credits are used or until the end of the |
25 | | annualized period. |
26 | | (3) At the end of the year or annualized over the |
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1 | | period that service is supplied by means of net metering, |
2 | | or in the event that the retail customer terminates service |
3 | | with the electricity provider prior to the end of the year |
4 | | or the annualized period, any remaining credits in the |
5 | | customer's account shall expire. |
6 | | (e-5) An electricity provider shall provide electric |
7 | | service to eligible net metering customers whose electric |
8 | | service has not been declared competitive pursuant to Section |
9 | | 16-113 of this Act and whose electric supply service is not |
10 | | provided based on hourly pricing who utilize net metering |
11 | | electric service at non-discriminatory rates that are |
12 | | identical, with respect to rate structure, retail rate |
13 | | components, and any monthly charges, to the rates that the |
14 | | customer would be charged if not a net metering customer. An |
15 | | electricity provider shall not charge net metering customers |
16 | | any fee or charge or require additional equipment, insurance, |
17 | | or any other requirements not specifically authorized by |
18 | | interconnection standards authorized by the Commission, unless |
19 | | the fee, charge, or other requirement would apply to other |
20 | | similarly situated customers who are not net metering |
21 | | customers. The customer will remain responsible for all taxes, |
22 | | fees, and utility delivery charges that would otherwise be |
23 | | applicable to the net amount of electricity used by the |
24 | | customer. Subsections (c) through (e) of this Section shall not |
25 | | be construed to prevent an arms-length agreement between an |
26 | | electricity provider and an eligible customer that sets forth |
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1 | | different prices, terms, and conditions for the provision of |
2 | | net metering service, including, but not limited to, the |
3 | | provision of the appropriate metering equipment for |
4 | | non-residential customers.
|
5 | | (f) Notwithstanding the requirements of subsections (c) |
6 | | through (e-5) (e) of this Section, an electricity provider must |
7 | | require dual-channel metering for customers operating eligible |
8 | | renewable electrical generating facilities with a nameplate |
9 | | rating up to 2,000 kilowatts and to whom the provisions of |
10 | | neither subsection (d) nor (e) of this Section apply |
11 | | non-residential customers operating eligible renewable |
12 | | electrical generating facilities with a nameplate rating over |
13 | | 40 kilowatts and up to 2,000 kilowatts . In such cases, |
14 | | electricity charges and credits shall be determined as follows:
|
15 | | (1) The electricity provider shall assess and the |
16 | | customer remains responsible for all taxes, fees, and |
17 | | utility delivery charges that would otherwise be |
18 | | applicable to the gross amount of kilowatt-hours supplied |
19 | | to the eligible customer by the electricity provider. |
20 | | (2) Each month that service is supplied by means of |
21 | | dual-channel metering, the electricity provider shall |
22 | | compensate the eligible customer for any excess |
23 | | kilowatt-hour credits at the electricity provider's |
24 | | avoided cost of electricity supply over the monthly period |
25 | | or as otherwise specified by the terms of a power-purchase |
26 | | agreement negotiated between the customer and electricity |
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1 | | provider. |
2 | | (3) For all eligible net metering customers taking |
3 | | service from an electricity provider under contracts or |
4 | | tariffs employing time of use rates, any monthly |
5 | | consumption of electricity shall be calculated according |
6 | | to the terms of the contract or tariff to which the same |
7 | | customer would be assigned to or be eligible for if the |
8 | | customer was not a net metering customer. When those same |
9 | | customer-generators are net generators during any discrete |
10 | | time of use period, the net kilowatt-hours produced shall |
11 | | be valued at the same price per kilowatt-hour as the |
12 | | electric service provider would charge for retail |
13 | | kilowatt-hour sales during that same time of use period.
|
14 | | (g) For purposes of federal and State laws providing |
15 | | renewable energy credits or greenhouse gas credits, the |
16 | | eligible customer shall be treated as owning and having title |
17 | | to the renewable energy attributes, renewable energy credits, |
18 | | and greenhouse gas emission credits related to any electricity |
19 | | produced by the qualified generating unit. The electricity |
20 | | provider may not condition participation in a net metering |
21 | | program on the signing over of a customer's renewable energy |
22 | | credits; provided, however, this subsection (g) shall not be |
23 | | construed to prevent an arms-length agreement between an |
24 | | electricity provider and an eligible customer that sets forth |
25 | | the ownership or title of the credits.
|
26 | | (h) Within 120 days after the effective date of this
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1 | | amendatory Act of the 95th General Assembly, the Commission |
2 | | shall establish standards for net metering and, if the |
3 | | Commission has not already acted on its own initiative, |
4 | | standards for the interconnection of eligible renewable |
5 | | generating equipment to the utility system. The |
6 | | interconnection standards shall address any procedural |
7 | | barriers, delays, and administrative costs associated with the |
8 | | interconnection of customer-generation while ensuring the |
9 | | safety and reliability of the units and the electric utility |
10 | | system. The Commission shall consider the Institute of |
11 | | Electrical and Electronics Engineers (IEEE) Standard 1547 and |
12 | | the issues of (i) reasonable and fair fees and costs, (ii) |
13 | | clear timelines for major milestones in the interconnection |
14 | | process, (iii) nondiscriminatory terms of agreement, and (iv) |
15 | | any best practices for interconnection of distributed |
16 | | generation.
|
17 | | (i) All electricity providers shall begin to offer net |
18 | | metering
no later than April 1,
2008.
|
19 | | (j) An electricity provider shall provide net metering to |
20 | | eligible
customers until the load of its net metering customers |
21 | | equals 1% of
the total peak demand supplied by
that electricity |
22 | | provider during the
previous year. Electricity providers are |
23 | | authorized to offer net metering beyond
the 1% level if they so |
24 | | choose. The number of new eligible customers with generators |
25 | | that have a nameplate rating of 40 kilowatts and below will be |
26 | | limited to 200 total new billing accounts for the utilities |
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1 | | (Ameren Companies, ComEd, and MidAmerican) for the period of |
2 | | April 1, 2008 through March 31, 2009.
|
3 | | (k) Each electricity provider shall maintain records and |
4 | | report annually to the Commission the total number of net |
5 | | metering customers served by the provider, as well as the type, |
6 | | capacity, and energy sources of the generating systems used by |
7 | | the net metering customers. Nothing in this Section shall limit |
8 | | the ability of an electricity provider to request the redaction |
9 | | of information deemed by the Commission to be confidential |
10 | | business information. Each electricity provider shall notify |
11 | | the Commission when the total generating capacity of its net |
12 | | metering customers is equal to or in excess of the 1% cap |
13 | | specified in subsection (j) of this Section. |
14 | | (l) Notwithstanding the definition of "eligible customer" |
15 | | in item (i) of subsection (b) of this Section, each electricity |
16 | | provider shall consider whether to allow meter aggregation for |
17 | | the purposes of net metering on:
|
18 | | (1) properties owned or leased by multiple customers |
19 | | that contribute to the operation of an eligible renewable |
20 | | electrical generating facility, such as a community-owned |
21 | | wind project , a community-owned biomass project, a |
22 | | community-owned solar project, or a community methane |
23 | | digester processing livestock waste from multiple sources; |
24 | | and
|
25 | | (2) individual units, apartments, or properties owned |
26 | | or leased by multiple customers and collectively served by |
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1 | | a common eligible renewable electrical generating |
2 | | facility, such as an apartment building served by |
3 | | photovoltaic panels on the roof.
|
4 | | For the purposes of this subsection (l), "meter |
5 | | aggregation" means the combination of reading and billing on a |
6 | | pro rata basis for the types of eligible customers described in |
7 | | this Section.
|
8 | | (m) Nothing in this Section shall affect the right of an |
9 | | electricity provider to continue to provide, or the right of a |
10 | | retail customer to continue to receive service pursuant to a |
11 | | contract for electric service between the electricity provider |
12 | | and the retail customer in accordance with the prices, terms, |
13 | | and conditions provided for in that contract. Either the |
14 | | electricity provider or the customer may require compliance |
15 | | with the prices, terms, and conditions of the contract.
|
16 | | (Source: P.A. 95-420, eff. 8-24-07.) |
17 | | (220 ILCS 5/16-108.5 new) |
18 | | Sec. 16-108.5. Infrastructure investment and |
19 | | modernization; regulatory reform. |
20 | | (a) The General Assembly recognizes that for well over a |
21 | | century Illinois residents and businesses have been |
22 | | well-served by and have benefitted from a comprehensive |
23 | | electric utility system. The General Assembly finds that |
24 | | electric utilities are now entering a new construction cycle |
25 | | that is needed to refurbish, rebuild, modernize, and expand |
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1 | | systems to continue to provide safe, reliable, and affordable |
2 | | service to the State's current and future utility customers in |
3 | | this newly digitized age. In particular, the General Assembly |
4 | | finds that it is the policy of this State that significant |
5 | | investments must be made in the State's electric grid over the |
6 | | next decade to modernize and upgrade transmission and |
7 | | distribution facilities in the State. These investments will |
8 | | ensure that the State's electric utility infrastructure will |
9 | | promote future economic development in the State and that the |
10 | | State's electric utilities will be able to continue to provide |
11 | | quality electric service to their customers, including |
12 | | innovative technological offerings that will enhance customer |
13 | | experience and choice such as smart meters that are dependent |
14 | | on a modernized or Smart Grid. These investments, including |
15 | | programs to reinforce the safety and security of high voltage |
16 | | transmission lines, will also ensure that the State's electric |
17 | | utility infrastructure continues to be safe and reliable. The |
18 | | introduction of performance metrics will further ensure that |
19 | | reliability and other indicators are not just maintained but |
20 | | improved over the next decade. |
21 | | The General Assembly further recognizes that, in addition |
22 | | to attracting capital and businesses to the State, these |
23 | | investments will create training opportunities for the |
24 | | citizens of this State, all of which will create new employment |
25 | | opportunities for Illinoisans at a time when they are most |
26 | | needed, especially for minority-owned and female-owned |
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1 | | business enterprises. The General Assembly further finds that |
2 | | regulatory reform measures that increase predictability, |
3 | | stability, and transparency in the ratemaking process are |
4 | | needed to promote prudent, long-term infrastructure investment |
5 | | and to mutually benefit the State's electric utilities and |
6 | | their customers, regulators, and investors. |
7 | | (b) For purposes of this Section, "participating utility" |
8 | | means an electric utility or a combination utility that |
9 | | voluntarily elects and commits to undertake the infrastructure |
10 | | investment program consisting of the commitments and |
11 | | obligations described in this subsection (b), notwithstanding |
12 | | any other provisions of this Act and without obtaining any |
13 | | approvals from the Commission or any other agency other than as |
14 | | set forth in this Section, regardless of whether any such |
15 | | approval would otherwise be required. "Combination utility" |
16 | | means a utility that, as of January 1, 2011, provided electric |
17 | | service to at least one million retail customers in Illinois |
18 | | and gas service to at least 500,000 retail customers in |
19 | | Illinois. A participating utility shall recover the |
20 | | expenditures made under the infrastructure investment program |
21 | | through the ratemaking process, including, but not limited to, |
22 | | the performance-based formula rate and process set forth in |
23 | | this Section. |
24 | | During the infrastructure investment program's peak |
25 | | program year, a participating utility other than a combination |
26 | | utility shall create 2,000 full-time equivalent jobs, and a |
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1 | | participating utility that is a combination utility shall |
2 | | create 450 full-time equivalent jobs, including direct jobs, |
3 | | contractor positions, and induced jobs. For purposes of this |
4 | | Section, "peak program year" means the consecutive 12-month |
5 | | period with the highest number of full-time equivalent jobs |
6 | | that occurs between the beginning of investment year 2 and the |
7 | | end of investment year 4. |
8 | | A participating utility shall meet one of the following |
9 | | commitments, as applicable: |
10 | | (1) Beginning no later than 180 days after a |
11 | | participating utility other than a combination utility |
12 | | files a performance-based formula rate tariff pursuant to |
13 | | subsection (c) of this Section, or, beginning no later than |
14 | | January 1, 2012 if such utility files such |
15 | | performance-based formula rate tariff within 14 days of the |
16 | | effective date of this amendatory Act of the 97th General |
17 | | Assembly, the participating utility shall, except as |
18 | | provided in subsection (b-5): |
19 | | (A) over a 5-year period, invest at least |
20 | | $1,100,000,000 in electric system upgrades, |
21 | | modernization projects, and training facilities, |
22 | | including, but not limited to: |
23 | | (i) distribution infrastructure improvements |
24 | | totaling at least $1,000,000,000, including |
25 | | underground residential distribution cable |
26 | | injection and replacement and mainline cable |
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1 | | system refurbishment and replacement projects; |
2 | | (ii) training facility construction or upgrade |
3 | | projects totaling at least $10,000,000, provided |
4 | | that, at a minimum, one such facility shall be |
5 | | located in a municipality having a population of |
6 | | more than 2 million residents and one such facility |
7 | | shall be located in a municipality having a |
8 | | population of more than 150,000 residents but |
9 | | fewer than 170,000 residents; any such new |
10 | | facility located in a municipality having a |
11 | | population of more than 2 million residents must be |
12 | | designed for the purpose of obtaining, and the |
13 | | owner of the facility shall apply for, |
14 | | certification under the United States Green |
15 | | Building Council's Leadership in Energy Efficiency |
16 | | Design Green Building Rating System; and |
17 | | (iii) wood pole inspection, treatment, and |
18 | | replacement programs; and |
19 | | (B) over a 10-year period, invest at least |
20 | | $1,500,000,000 to upgrade and modernize its |
21 | | transmission and distribution infrastructure and in |
22 | | Smart Grid electric system upgrades, including, but |
23 | | not limited to: |
24 | | (i) additional smart meters; |
25 | | (ii) distribution automation; |
26 | | (iii) associated cyber secure data |
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1 | | communication network; and |
2 | | (iv) substation micro-processor relay |
3 | | upgrades. |
4 | | (2) Beginning no later than 180 days after a |
5 | | participating utility that is a combination utility files a |
6 | | performance-based formula rate tariff pursuant to |
7 | | subsection (c) of this Section, or, beginning no later than |
8 | | January 1, 2012 if such utility files such |
9 | | performance-based formula rate tariff within 14 days of the |
10 | | effective date of this amendatory Act of the 97th General |
11 | | Assembly, the participating utility shall, except as |
12 | | provided in subsection (b-5): |
13 | | (A) over a 10-year period, invest at least |
14 | | $265,000,000 in electric system upgrades, |
15 | | modernization projects, and training facilities, |
16 | | including, but not limited to: |
17 | | (i) distribution infrastructure improvements |
18 | | totaling at least $245,000,000, which may include |
19 | | bulk supply substations, transformers, |
20 | | reconductoring, and rebuilding overhead |
21 | | distribution and sub-transmission lines, |
22 | | underground residential distribution cable |
23 | | injection and replacement and mainline cable |
24 | | system refurbishment and replacement projects; |
25 | | (ii) training facility construction or upgrade |
26 | | projects totaling at least $1,000,000; any such |
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1 | | new facility must be designed for the purpose of |
2 | | obtaining, and the owner of the facility shall |
3 | | apply for, certification under the United States |
4 | | Green Building Council's Leadership in Energy |
5 | | Efficiency Design Green Building Rating System; |
6 | | and |
7 | | (iii) wood pole inspection, treatment, and |
8 | | replacement programs; and |
9 | | (B) over a 10-year period, invest at least |
10 | | $360,000,000 to upgrade and modernize its transmission |
11 | | and distribution infrastructure and in Smart Grid |
12 | | electric system upgrades, including, but not limited |
13 | | to: |
14 | | (i) additional smart meters; |
15 | | (ii) distribution automation; |
16 | | (iii) associated cyber secure data |
17 | | communication network; and |
18 | | (iv) substation micro-processor relay |
19 | | upgrades. |
20 | | For purposes of this Section, "Smart Grid electric system |
21 | | upgrades" shall have the meaning set forth in subsection (a) of |
22 | | Section 16-108.6 of this Act. |
23 | | If a participating utility other than a combination utility |
24 | | serves less than 3 million electric distribution customers in |
25 | | Illinois, then the infrastructure investment program |
26 | | commitments and obligations described in this subsection (b) |
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1 | | shall be reduced proportionately, based on the number of |
2 | | customers, for the utility. |
3 | | The investments in the infrastructure investment program |
4 | | described in this subsection (b) shall be incremental to the |
5 | | participating utility's annual capital investment program, as |
6 | | defined by, for purposes of this subsection (b), the |
7 | | participating utility's average capital spend for calendar |
8 | | years 2008, 2009, and 2010 as reported in the applicable |
9 | | Federal Energy Regulatory Commission (FERC) Form 1; provided |
10 | | that where one or more utilities have merged, the average |
11 | | capital spend shall be determined using the aggregate of the |
12 | | merged utilities' capital spend reported in FERC Form 1 for the |
13 | | years 2008, 2009, and 2010. |
14 | | Within 60 days after filing a tariff under subsection (c) |
15 | | of this Section, a participating utility shall submit to the |
16 | | Commission its plan, including scope, schedule, and staffing, |
17 | | for satisfying its infrastructure investment program |
18 | | commitments pursuant to this subsection (b). The submitted plan |
19 | | shall include a schedule and staffing plan for the next |
20 | | calendar year. The plan shall also include a plan for the |
21 | | creation, operation, and administration of a Smart Grid test |
22 | | bed as described in subsection (c) of Section 16-108.8. The |
23 | | plan need not allocate the work equally over the respective |
24 | | periods, but should allocate material increments throughout |
25 | | such periods commensurate with the work to be undertaken. No |
26 | | later than April 1 of each subsequent year, the utility shall |
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1 | | submit to the Commission a report that includes any update to |
2 | | the plan, a schedule for the next calendar year, the |
3 | | expenditures made for the prior calendar year and cumulatively, |
4 | | and the number of full-time equivalent jobs created for the |
5 | | prior calendar year and cumulatively. If the utility is |
6 | | materially deficient in satisfying a schedule or staffing plan, |
7 | | then the report must also include a corrective action plan to |
8 | | address the deficiency. The fact that the plan, implementation |
9 | | of the plan, or a schedule changes shall not imply the |
10 | | imprudence or unreasonableness of the infrastructure |
11 | | investment program, plan, or schedule. |
12 | | With respect to the participating utility's peak job |
13 | | commitment, if, after considering the utility's corrective |
14 | | action plan and compliance thereunder, the Commission enters an |
15 | | order finding, after notice and hearing, that a participating |
16 | | utility did not satisfy its peak job commitment described in |
17 | | this subsection (b) for reasons that are reasonably within its |
18 | | control, then the Commission shall also determine, after |
19 | | consideration of the evidence, including, but not limited to, |
20 | | evidence submitted by the Department of Commerce and Economic |
21 | | Opportunity and the utility, the deficiency in the number of |
22 | | full-time equivalent jobs during the peak program year due to |
23 | | such failure. The Commission shall notify the Department of any |
24 | | proceeding that is initiated pursuant to this paragraph. For |
25 | | each full-time equivalent job deficiency during the peak |
26 | | program year that the Commission finds as set forth in this |
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1 | | paragraph, the participating utility shall, within 30 days |
2 | | after the entry of the Commission's order, pay $1,500 to a fund |
3 | | for training grants administered under Section 605-800 of The |
4 | | Department of Commerce and Economic Opportunity Law. |
5 | | With respect to the participating utility's investment |
6 | | amount commitments, if, after considering the utility's |
7 | | corrective action plan and compliance thereunder, the |
8 | | Commission enters an order finding after notice and hearing, |
9 | | that a participating utility is not satisfying its investment |
10 | | amount commitments described in this subsection (b), then the |
11 | | utility shall no longer be eligible to annually update the |
12 | | performance-based formula rate tariff pursuant to subsection |
13 | | (d) of this Section. In such event, the then current rates |
14 | | shall remain in effect until such time as new rates are set |
15 | | pursuant to Article IX of this Act, subject to retroactive |
16 | | adjustment, with interest, to reconcile rates charged with |
17 | | actual costs. |
18 | | If the Commission finds that a participating utility is no |
19 | | longer eligible to update the performance-based formula rate |
20 | | tariff pursuant to subsection (d) of this Section, or the |
21 | | performance-based formula rate is otherwise terminated, then |
22 | | the participating utility's voluntary commitments and |
23 | | obligations under this subsection (b) shall immediately |
24 | | terminate, except for the utility's obligation to pay an amount |
25 | | already owed to the fund for training grants pursuant to a |
26 | | Commission order. |
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1 | | In meeting the obligations of this subsection (b), to the |
2 | | extent feasible and consistent with State and federal law, the |
3 | | investments under the infrastructure investment program should |
4 | | provide employment opportunities for all segments of the |
5 | | population and workforce, including minority-owned and |
6 | | female-owned business enterprises. |
7 | | (b-5) Nothing in subsection (b) of this Section shall |
8 | | prohibit the Commission from investigating the prudence and |
9 | | reasonableness of the expenditures made under the |
10 | | infrastructure investment program. The fact that a |
11 | | participating utility invests more than the minimum amounts |
12 | | specified in subsection (b) of this Section or its plan shall |
13 | | not imply imprudence or unreasonableness. |
14 | | If the participating utility finds that it is implementing |
15 | | its plan for satisfying the infrastructure investment program |
16 | | commitments described in subsection (b) of this Section at a |
17 | | cost below the minimum amounts specified in subsection (b) of |
18 | | this Section, then the utility may file a petition with the |
19 | | Commission requesting that it be permitted to satisfy its |
20 | | commitments by spending less than the minimum amounts specified |
21 | | in subsection (b) of this Section. For the infrastructure |
22 | | investment program commitments described in subparagraph (A) |
23 | | of paragraph (1) of subsection (b) of this Section, the |
24 | | participating utility may file such a petition no earlier than |
25 | | in year 4 of the 5-year period. For the infrastructure |
26 | | investment program commitments described in subparagraph (B) |
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1 | | of paragraph (1) and subparagraphs (A) and (B) of paragraph (2) |
2 | | of subsection (b) of this Section, the participating utility |
3 | | may file such a petition no earlier than in year 8 of the |
4 | | 10-year period. The Commission shall, after notice and hearing, |
5 | | enter its order approving or denying each such petition within |
6 | | 150 days after the filing of the petition. |
7 | | In no event, absent General Assembly approval, shall the |
8 | | capital investment costs incurred by a participating utility |
9 | | other than a combination utility in satisfying its |
10 | | infrastructure investment program commitments described in |
11 | | subsection (b) of this Section exceed $3,000,000,000 or, for a |
12 | | participating utility that is a combination utility, |
13 | | $720,000,000. If the participating utility's updated cost |
14 | | estimates for satisfying its infrastructure investment program |
15 | | commitments described in subsection (b) of this Section exceed |
16 | | the limitation imposed by this subsection (b-5), then it shall |
17 | | submit a report to the Commission that identifies the increased |
18 | | costs and explains the reason or reasons for the increased |
19 | | costs no later than the year in which the utility estimates it |
20 | | will exceed the limitation. The Commission shall review the |
21 | | report and shall, within 90 days after the participating |
22 | | utility files the report, report to the General Assembly its |
23 | | findings regarding the participating utility's report. If the |
24 | | General Assembly does not amend the limitation imposed by this |
25 | | subsection (b-5), then the utility may modify its plan so as |
26 | | not to exceed the limitation imposed by this subsection (b-5), |
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1 | | and the metrics and incremental savings goals established |
2 | | pursuant to subsection (f) of this Section shall be modified |
3 | | accordingly. |
4 | | (c) A participating utility may elect to recover its |
5 | | delivery services costs through a performance-based formula |
6 | | rate approved by the Commission, which shall specify the cost |
7 | | components that form the basis of the rate charged to customers |
8 | | with sufficient specificity to operate in a standardized manner |
9 | | and be updated annually with transparent information that |
10 | | reflects the utility's actual costs to be recovered during the |
11 | | applicable rate year, which is the period beginning with the |
12 | | first billing day of January and extending through the last |
13 | | billing day of the following December. In the event the utility |
14 | | recovers a portion of its costs through automatic adjustment |
15 | | clause tariffs on the effective date of this amendatory Act of |
16 | | the 97th General Assembly, the utility may elect to continue to |
17 | | recover these costs through such tariffs, but then these costs |
18 | | shall not be recovered through the performance-based formula |
19 | | rate. |
20 | | The performance-based formula rate shall be implemented |
21 | | through a tariff filed with the Commission consistent with the |
22 | | provisions of this subsection (c) that shall be applicable to |
23 | | all delivery services customers. The Commission shall initiate |
24 | | and conduct an investigation of the tariff in a manner |
25 | | consistent with the provisions of this subsection (c) and the |
26 | | provisions of Article IX of this Act to the extent they do not |
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1 | | conflict with this subsection (c). Except in the case where the |
2 | | Commission finds, after notice and hearing, that a |
3 | | participating utility is not satisfying its investment amount |
4 | | commitments under subsection (b) of this Section, the |
5 | | performance-based formula rate shall remain in effect at the |
6 | | discretion of the utility. The performance-based formula rate |
7 | | approved by the Commission shall do the following: |
8 | | (1) Provide for the recovery of the utility's actual |
9 | | costs of delivery services that are prudently incurred and |
10 | | reasonable in amount consistent with Commission practice |
11 | | and law. The fact that a cost differs from that incurred in |
12 | | a prior calendar year or that an investment is different |
13 | | from that made in a prior calendar year shall not imply the |
14 | | imprudence or unreasonableness of that cost or investment. |
15 | | (2) Reflect the utility's actual capital structure for |
16 | | the applicable calendar year, excluding goodwill, subject |
17 | | to a determination of prudence and reasonableness |
18 | | consistent with Commission practice and law. |
19 | | (3) Include a cost of equity, which shall be calculated |
20 | | as the sum of the following: |
21 | | (A) the average for the applicable calendar year of |
22 | | the monthly average yields of 30-year U.S. Treasury |
23 | | bonds published by the Board of Governors of the |
24 | | Federal Reserve System in its weekly H.15 Statistical |
25 | | Release or successor publication; and |
26 | | (B) 600 basis points. |
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1 | | At such time as the Board of Governors of the Federal |
2 | | Reserve System ceases to include the monthly average yields |
3 | | of 30-year U.S. Treasury bonds in its weekly H.15 |
4 | | Statistical Release or successor publication, the monthly |
5 | | average yields of the U.S. Treasury bonds then having the |
6 | | longest duration published by the Board of Governors in its |
7 | | weekly H.15 Statistical Release or successor publication |
8 | | shall instead be used for purposes of this paragraph (3). |
9 | | (4) Permit and set forth protocols, subject to a |
10 | | determination of prudence and reasonableness consistent |
11 | | with Commission practice and law, for the following: |
12 | | (A) recovery of incentive compensation expense |
13 | | that is based on the achievement of operational |
14 | | metrics, including metrics related to budget controls, |
15 | | outage duration and frequency, safety, customer |
16 | | service, efficiency and productivity, and |
17 | | environmental compliance. Incentive compensation |
18 | | expense that is based on net income or an affiliate's |
19 | | earnings per share shall not be recoverable under the |
20 | | performance-based formula rate; |
21 | | (B) recovery of pension and other post-employment |
22 | | benefits expense, provided that such costs are |
23 | | supported by an actuarial study; |
24 | | (C) recovery of severance costs, provided that if |
25 | | the amount is over $3,700,000 for a participating |
26 | | utility that is a combination utility or $10,000,000 |
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1 | | for a participating utility that serves more than 3 |
2 | | million retail customers, then the full amount shall be |
3 | | amortized consistent with subparagraph (F) of this |
4 | | paragraph (4); |
5 | | (D) investment return on pension assets net of |
6 | | deferred tax benefits equal to the utility's long-term |
7 | | debt cost of capital as of the end of the applicable |
8 | | calendar year; |
9 | | (E) recovery of the expenses related to the |
10 | | Commission proceeding under this subsection (c) to |
11 | | approve this performance-based formula rate and |
12 | | initial rates or to subsequent proceedings related to |
13 | | the formula, provided that the recovery shall be |
14 | | amortized over a 3-year period; recovery of expenses |
15 | | related to the annual Commission proceedings under |
16 | | subsection (d) of this Section to review the inputs to |
17 | | the performance-based formula rate shall be expensed |
18 | | and recovered through the performance-based formula |
19 | | rate; |
20 | | (F) amortization over a 5-year period of the full |
21 | | amount of each charge or credit that exceeds $3,700,000 |
22 | | for a participating utility that is a combination |
23 | | utility or $10,000,000 for a participating utility |
24 | | that serves more than 3 million retail customers in the |
25 | | applicable calendar year and that relates to a |
26 | | workforce reduction program's severance costs, changes |
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1 | | in accounting rules, changes in law, compliance with |
2 | | any Commission-initiated audit, or a single storm or |
3 | | other similar expense, provided that any unamortized |
4 | | balance shall be reflected in rate base. For purposes |
5 | | of this subparagraph (F), changes in law includes any |
6 | | enactment, repeal, or amendment in a law, ordinance, |
7 | | rule, regulation, interpretation, permit, license, |
8 | | consent, or order, including those relating to taxes, |
9 | | accounting, or to environmental matters, or in the |
10 | | interpretation or application thereof by any |
11 | | governmental authority occurring after the effective |
12 | | date of this amendatory Act of the 97th General |
13 | | Assembly; |
14 | | (G) recovery of existing regulatory assets over |
15 | | the periods previously authorized by the Commission; |
16 | | (H) historical weather normalized billing |
17 | | determinants; and |
18 | | (I) allocation methods for common costs. |
19 | | (5) Provide that if the participating utility's earned |
20 | | return on common equity related to the provision of |
21 | | delivery services for the prior rate year (calculated on a |
22 | | ratemaking basis after adjusting for any disallowances |
23 | | ordered by the Commission and adjusting for taxes) is more |
24 | | than 50 basis points higher than the return on equity |
25 | | calculated pursuant to paragraph (3) of this subsection (c) |
26 | | (after adjusting for any adjustments to the return on |
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1 | | equity applied pursuant to the performance metrics |
2 | | provision of subsection (f) of this Section), then the |
3 | | participating utility shall apply a credit through the |
4 | | performance-based formula rate that reflects an amount |
5 | | equal to the value of that portion of the earned return on |
6 | | equity that is more than 50 basis points higher than the |
7 | | return on equity calculated pursuant to paragraph (3) of |
8 | | this subsection (c) for the prior rate year, adjusted for |
9 | | taxes. If the participating utility's earned return on |
10 | | common equity related to the provision of delivery services |
11 | | for the prior rate year (calculated on a ratemaking basis |
12 | | after adjusting for any disallowances ordered by the |
13 | | Commission and adjusting for taxes) is more than 50 basis |
14 | | points less than the return on equity calculated pursuant |
15 | | to paragraph (3) of this subsection (c) (after adjusting |
16 | | for any adjustments to the return on equity applied |
17 | | pursuant to the performance metrics provision of |
18 | | subsection (f) of this Section), then the participating |
19 | | utility shall apply a charge through the performance-based |
20 | | formula rate that reflects an amount equal to the value of |
21 | | that portion of the earned return on equity that is more |
22 | | than 50 basis points less than the return on equity |
23 | | calculated pursuant to paragraph (3) of this subsection (c) |
24 | | for the prior rate year, adjusted for taxes. |
25 | | (6) Provide for an annual reconciliation, with |
26 | | interest as described in subsection (d) of this Section, of |
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1 | | the revenue requirement reflected in rates for each |
2 | | calendar year, beginning with the calendar year in which |
3 | | the utility files its performance-based formula rate |
4 | | tariff pursuant to subsection (c) of this Section, with |
5 | | what the revenue requirement would have been had the actual |
6 | | cost information for the applicable calendar year been |
7 | | available at the filing date. |
8 | | The utility shall file, together with its tariff, final |
9 | | data based on its most recently filed FERC Form 1, plus |
10 | | projected plant additions and correspondingly updated |
11 | | depreciation reserve and expense for the calendar year in which |
12 | | the tariff and data are filed, that shall populate the |
13 | | performance-based formula rate and set the initial delivery |
14 | | services rates under the formula. |
15 | | After the utility files its proposed performance-based |
16 | | formula rate structure and protocols and initial rates, the |
17 | | Commission shall initiate a docket to review the filing. The |
18 | | Commission shall enter an order approving, or approving as |
19 | | modified, the performance-based formula rate, including the |
20 | | initial rates, as just and reasonable within 270 days after the |
21 | | date on which the tariff was filed, or, if the tariff is filed |
22 | | within 14 days after the effective date of this amendatory Act |
23 | | of the 97th General Assembly, then by March 31, 2012. Such |
24 | | review shall be based on the same evidentiary standards, |
25 | | including, but not limited to, those concerning the prudence |
26 | | and reasonableness of the costs incurred by the utility, the |
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1 | | Commission applies in a hearing to review a filing for a |
2 | | general increase in rates under Article IX of this Act. The |
3 | | initial rates shall take effect within 30 days after the |
4 | | Commission's order approving the performance-based formula |
5 | | rate tariff. |
6 | | Until such time as the Commission approves a different rate |
7 | | design and cost allocation pursuant to subsection (e) of this |
8 | | Section, rate design and cost allocation across customer |
9 | | classes shall be consistent with the Commission's most recent |
10 | | order regarding the participating utility's request for a |
11 | | general increase in its delivery services rates. |
12 | | Subsequent changes to the performance-based formula rate |
13 | | structure or protocols shall be made as set forth in Section |
14 | | 9-201 of this Act, but nothing in this subsection (c) is |
15 | | intended to limit the Commission's authority under Article IX |
16 | | and other provisions of this Act to initiate an investigation |
17 | | of a participating utility's performance-based formula rate |
18 | | tariff, provided that any such changes shall be consistent with |
19 | | paragraphs (1) through (6) of this subsection (c). Any change |
20 | | ordered by the Commission shall be made at the same time new |
21 | | rates take effect following the Commission's next order |
22 | | pursuant to subsection (d) of this Section, provided that the |
23 | | new rates take effect no less than 30 days after the date on |
24 | | which the Commission issues an order adopting the change. |
25 | | Beginning 11 years after the effective date of this |
26 | | amendatory Act of the 97th General Assembly, the Commission may |
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1 | | upon petition or its own initiative, but with reasonable |
2 | | notice, enter upon a hearing concerning proposed changes to the |
3 | | performance-based formula rate, including those protocols |
4 | | established under paragraph (4) of this subsection (c), |
5 | | provided that there shall be a rebuttable presumption that the |
6 | | protocols are just and reasonable. These proposed changes shall |
7 | | be stated with particularity and accompanied by clear and |
8 | | convincing evidence that the changes are just and reasonable. |
9 | | No such change adopted by the Commission shall be applied to |
10 | | the calculation of the utility's rates until the next calendar |
11 | | year, with the rates to become effective on January 1 of the |
12 | | year following that calendar year, provided that the next |
13 | | calendar year begins no less than 90 days after the date on |
14 | | which the Commission issues an order adopting the change. |
15 | | A participating utility that files a tariff pursuant to |
16 | | this subsection (c) must submit a one-time $200,000 filing fee |
17 | | at the time the Chief Clerk of the Commission accepts the |
18 | | filing, which shall be a recoverable expense. |
19 | | In the event the performance-based formula rate is |
20 | | terminated, the then current rates shall remain in effect until |
21 | | such time as new rates are set pursuant to Article IX of this |
22 | | Act, subject to retroactive rate adjustment, with interest, to |
23 | | reconcile rates charged with actual costs. At such time that |
24 | | the performance-based formula rate is terminated, the |
25 | | participating utility's voluntary commitments and obligations |
26 | | under subsection (b) of this Section shall immediately |
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1 | | terminate, except for the utility's obligation to pay an amount |
2 | | already owed to the fund for training grants pursuant to a |
3 | | Commission order issued under subsection (b) of this Section. |
4 | | (d) Subsequent to the Commission's issuance of an order |
5 | | approving the utility's performance-based formula rate |
6 | | structure and protocols, and initial rates under subsection (c) |
7 | | of this Section, the utility shall file, on or before May 1 of |
8 | | each year, with the Chief Clerk of the Commission its updated |
9 | | cost inputs to the performance-based formula rate for the |
10 | | applicable rate year and the corresponding new charges. Each |
11 | | such filing shall conform to the following requirements and |
12 | | include the following information: |
13 | | (1) The inputs to the performance-based formula rate |
14 | | for the applicable rate year shall be based on final |
15 | | historical data reflected in the utility's most recently |
16 | | filed annual FERC Form 1 plus projected plant additions and |
17 | | correspondingly updated depreciation reserve and expense |
18 | | for the calendar year in which the inputs are filed. The |
19 | | filing shall also include a reconciliation of the revenue |
20 | | requirement that was in effect for the prior rate year (as |
21 | | set by the cost inputs for the prior rate year) with the |
22 | | actual revenue requirement for the prior rate year (as |
23 | | reflected in the applicable FERC Form 1 that reports the |
24 | | actual costs for the prior rate year). Any over-collection |
25 | | or under-collection indicated by such reconciliation shall |
26 | | be reflected as a credit against, or recovered as an |
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1 | | additional charge to, respectively, with interest, the |
2 | | charges for the applicable rate year. Provided, however, |
3 | | that the first such reconciliation shall be for the |
4 | | calendar year in which the utility files its |
5 | | performance-based formula rate tariff pursuant to |
6 | | subsection (c) of this Section and shall reconcile (i) the |
7 | | revenue requirement or requirements established by the |
8 | | rate order or orders in effect from time to time during |
9 | | such calendar year (weighted, as applicable) with (ii) the |
10 | | revenue requirement for that calendar year calculated |
11 | | pursuant to the performance-based formula rate using (A) |
12 | | actual costs for that year as reflected in the applicable |
13 | | FERC Form 1, and (B) for the first such reconciliation |
14 | | only, the cost of equity approved by the Commission in such |
15 | | order or orders in effect during that year (weighted, as |
16 | | applicable). The first such reconciliation is not intended |
17 | | to provide for the recovery of costs previously excluded |
18 | | from rates based on a prior Commission order finding of |
19 | | imprudence or unreasonableness. Each reconciliation shall |
20 | | be certified by the participating utility in the same |
21 | | manner that FERC Form 1 is certified. The filing shall also |
22 | | include the charge or credit, if any, resulting from the |
23 | | calculation required by paragraph (6) of subsection (c) of |
24 | | this Section. |
25 | | Notwithstanding anything that may be to the contrary, |
26 | | the intent of the reconciliation is to ultimately reconcile |
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1 | | the revenue requirement reflected in rates for each |
2 | | calendar year, beginning with the calendar year in which |
3 | | the utility files its performance-based formula rate |
4 | | tariff pursuant to subsection (c) of this Section, with |
5 | | what the revenue requirement would have been had the actual |
6 | | cost information for the applicable calendar year been |
7 | | available at the filing date. |
8 | | (2) The new charges shall take effect beginning on the |
9 | | first billing day of the following January billing period |
10 | | and remain in effect through the last billing day of the |
11 | | next December billing period regardless of whether the |
12 | | Commission enters upon a hearing pursuant to this |
13 | | subsection (d). |
14 | | (3) The filing shall include relevant and necessary |
15 | | data and documentation for the applicable rate year that is |
16 | | consistent with the Commission's rules applicable to a |
17 | | filing for a general increase in rates or any rules adopted |
18 | | by the Commission to implement this Section. Normalization |
19 | | adjustments shall not be required. Notwithstanding any |
20 | | other provision of this Section or Act or any rule or other |
21 | | requirement adopted by the Commission, a participating |
22 | | utility that is a combination utility with more than one |
23 | | rate zone shall not be required to file a separate set of |
24 | | such data and documentation for each rate zone and may |
25 | | combine such data and documentation into a single set of |
26 | | schedules. |
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1 | | Within 45 days after the utility files its annual update of |
2 | | cost inputs to the performance-based formula rate, the |
3 | | Commission shall have the authority, either upon complaint or |
4 | | its own initiative, but with reasonable notice, to enter upon a |
5 | | hearing concerning the prudence and reasonableness of the costs |
6 | | incurred by the utility to be recovered during the applicable |
7 | | rate year that are reflected in the inputs to the |
8 | | performance-based formula rate derived from the utility's FERC |
9 | | Form 1. During the course of the hearing, each objection shall |
10 | | be stated with particularity and substantial evidence provided |
11 | | in support thereof, after which the utility shall have the |
12 | | opportunity to rebut the evidence. Discovery shall be allowed |
13 | | consistent with the Commission's Rules of Practice, which Rules |
14 | | shall be enforced by the Commission or the assigned hearing |
15 | | examiner. The Commission shall apply the same evidentiary |
16 | | standards, including, but not limited to, those concerning the |
17 | | prudence and reasonableness of the costs incurred by the |
18 | | utility, in the hearing as it would apply in a hearing to |
19 | | review a filing for a general increase in rates under Article |
20 | | IX of this Act. The Commission shall not, however, have the |
21 | | authority in a proceeding under this subsection (d) to consider |
22 | | or order any changes to the structure or protocols of the |
23 | | performance-based formula rate approved pursuant to subsection |
24 | | (c) of this Section. In a proceeding under this subsection (d), |
25 | | the Commission shall enter its order no later than the earlier |
26 | | of 240 days after the utility's filing of its annual update of |
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1 | | cost inputs to the performance-based formula rate or December |
2 | | 31. The Commission's determinations of the prudence and |
3 | | reasonableness of the costs incurred for the applicable |
4 | | calendar year shall be final upon entry of the Commission's |
5 | | order and shall not be subject to reopening, reexamination, or |
6 | | collateral attack in any other proceeding, case, docket, order, |
7 | | rule or regulation, provided, however, that nothing in this |
8 | | subsection (d) shall prohibit a party from petitioning the |
9 | | Commission to rehear or appeal to the courts the order pursuant |
10 | | to the provisions of this Act. |
11 | | In the event the Commission does not, either upon complaint |
12 | | or its own initiative, enter upon a hearing within 45 days |
13 | | after the utility files the annual update of cost inputs to its |
14 | | performance-based formula rate, then the costs incurred for the |
15 | | applicable calendar year shall be deemed prudent and |
16 | | reasonable, and the filed charges shall not be subject to |
17 | | reopening, reexamination, or collateral attack in any other |
18 | | proceeding, case, docket, order, rule, or regulation. |
19 | | (e) Nothing in subsections (c) or (d) of this Section shall |
20 | | prohibit the Commission from investigating, or a participating |
21 | | utility from filing, revenue-neutral tariff changes related to |
22 | | rate design of a performance-based formula rate that has been |
23 | | placed into effect for the utility. Following approval of a |
24 | | participating utility's performance-based formula rate tariff |
25 | | pursuant to subsection (c) of this Section, the utility shall |
26 | | make a filing with the Commission within one year after the |
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1 | | effective date of the performance-based formula rate tariff |
2 | | that proposes changes to the tariff to incorporate the findings |
3 | | of any final rate design orders of the Commission applicable to |
4 | | the participating utility and entered subsequent to the |
5 | | Commission's approval of the tariff. The Commission shall, |
6 | | after notice and hearing, enter its order approving, or |
7 | | approving with modification, the proposed changes to the |
8 | | performance-based formula rate tariff within 240 days after the |
9 | | utility's filing. Following such approval, the utility shall |
10 | | make a filing with the Commission during each subsequent 3-year |
11 | | period that either proposes revenue-neutral tariff changes or |
12 | | re-files the existing tariffs without change, which shall |
13 | | present the Commission with an opportunity to suspend the |
14 | | tariffs and consider revenue-neutral tariff changes related to |
15 | | rate design. |
16 | | (f) Within 30 days after the filing of a tariff pursuant to |
17 | | subsection (c) of this Section, each participating utility |
18 | | shall develop and file with the Commission multi-year metrics |
19 | | designed to achieve, ratably over a 10-year period, improvement |
20 | | over baseline performance values as follows: |
21 | | (1) Twenty percent improvement in the System Average |
22 | | Interruption Frequency Index, using a baseline of the |
23 | | average of the data from 2001 through 2010. |
24 | | (2) Fifteen percent improvement in the system Customer |
25 | | Average Interruption Duration Index, using 2010 as the |
26 | | baseline year. |
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1 | | (3) For a participating utility other than a |
2 | | combination utility, 20% improvement in the System Average |
3 | | Interruption Frequency Index for its Southern Region, |
4 | | using a baseline of the average of the data from 2001 |
5 | | through 2010. For purposes of this paragraph (C), Southern |
6 | | Region shall have the meaning set forth in the |
7 | | participating utility's most recent report filed pursuant |
8 | | to Section 16-125 of this Act. |
9 | | (4) Seventy-five percent improvement in the total |
10 | | number of customers who exceed the service reliability |
11 | | targets as set forth in subparagraphs (A) through (C) of |
12 | | paragraph (4) of subsection (b) of 83 Ill. Admin. Code Part |
13 | | 411.140 as of May 1, 2011, using 2010 as the baseline year. |
14 | | (5) Reduction in issuance of estimated electric bills: |
15 | | 90% improvement for a participating utility other than a |
16 | | combination utility, and 56% improvement for a |
17 | | participating utility that is a combination utility, using |
18 | | a baseline of the average number of estimated bills for the |
19 | | years 2008 through 2010. |
20 | | (6) Consumption on inactive meters: 90% improvement |
21 | | for a participating utility other than a combination |
22 | | utility, and 56% improvement for a participating utility |
23 | | that is a combination utility, using a baseline of the |
24 | | average unbilled kilowatthours for the years 2009 and 2010. |
25 | | (7) Unaccounted for energy: 50% improvement for a |
26 | | participating utility other than a combination utility |
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1 | | using a baseline of the non-technical line loss unaccounted |
2 | | for energy kilowatthours for the year 2009. |
3 | | (8) Uncollectible expense: reduce uncollectible |
4 | | expense by at least $30,000,000 for a participating utility |
5 | | other than a combination utility and by at least $3,500,000 |
6 | | for a participating utility that is a combination utility, |
7 | | using a baseline of the average uncollectible expense for |
8 | | the years 2008 through 2010. |
9 | | (9) Opportunities for minority-owned and female-owned |
10 | | business enterprises: design a performance metric |
11 | | regarding the creation of opportunities for minority-owned |
12 | | and female-owned business enterprises consistent with |
13 | | State and federal law using a base performance value of the |
14 | | percentage of the participating utility's capital |
15 | | expenditures that were paid to minority-owned and |
16 | | female-owned business enterprises in 2010. |
17 | | The definitions set forth in 83 Ill. Admin. Code Part |
18 | | 411.20 as of May 1, 2011 shall be used for purposes of |
19 | | calculating performance under paragraphs (1) through (3) of |
20 | | this subsection (f), provided, however, that the participating |
21 | | utility may exclude up to 9 extreme weather event days from |
22 | | such calculation for each year. For purposes of this Section, |
23 | | an extreme weather event day is a 24-hour calendar day |
24 | | (beginning at 12:00 am and ending at 11:59 pm) during which any |
25 | | weather event (e.g., storm, tornado) caused interruptions for |
26 | | 10,000 or more of the participating utility's customers for 3 |
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1 | | hours or more. If there are more than 9 extreme weather event |
2 | | days in a year, then the utility may choose no more than 9 |
3 | | extreme weather event days to exclude, provided that the same |
4 | | extreme weather event days are excluded from each of the |
5 | | calculations performed under paragraphs (1) through (3) of this |
6 | | subsection (f). |
7 | | The metrics shall include incremental performance goals |
8 | | for each year of the 10-year period, which shall be designed to |
9 | | demonstrate that the utility is on track to achieve the |
10 | | performance goal in each category at the end of the 10-year |
11 | | period. The utility shall elect when the 10-year period shall |
12 | | commence, provided that it begins no later than 14 months |
13 | | following the date on which the utility begins investing |
14 | | pursuant to subsection (b) of this Section. |
15 | | The metrics and performance goals set forth in this |
16 | | subsection (f) are based on the assumptions that the |
17 | | participating utility may fully implement the technology |
18 | | described in subsection (b) of this Section, including |
19 | | utilizing the full functionality of such technology and that |
20 | | there is no requirement for personal on-site notification. |
21 | | (f-5) The financial penalties applicable to the metrics |
22 | | described in subparagraphs (1) through (8) of subsection (f) of |
23 | | this Section, as applicable, shall be applied through an |
24 | | adjustment to the participating utility's return on equity as |
25 | | follows: |
26 | | (1) With respect to each of the incremental annual |
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1 | | performance goals established pursuant to paragraph (1) of |
2 | | subsection (f) of this Section, for each year that a |
3 | | participating utility other than a combination utility |
4 | | does not achieve at least 95% of the annual goal, the |
5 | | participating utility's return on equity shall be reduced |
6 | | by no more than 5 basis points for such unachieved goal for |
7 | | the following 12-month period, and for each year that a |
8 | | participating utility that is a combination utility does |
9 | | not achieve at least 95% of the annual goal, the |
10 | | participating utility's return on equity shall be reduced |
11 | | by no more than 10 basis points for each such unachieved |
12 | | goal for the following 12-month period. |
13 | | (2) With respect to each of the incremental annual |
14 | | performance goals established pursuant to subparagraphs |
15 | | (2), (3), (4), and (5) of subsection (f) of this Section, |
16 | | as applicable, for each year that the participating utility |
17 | | does not achieve at least 95% of each such goal, the |
18 | | participating utility's return on equity shall be reduced |
19 | | by no more than 5 basis points for each such unachieved |
20 | | goal for the following 12-month period. |
21 | | (3) With respect to each of the incremental annual |
22 | | performance goals established pursuant to paragraphs (6), |
23 | | (7), and (8) of subsection (f) of this Section, as |
24 | | applicable, the performance under each such goal shall be |
25 | | calculated in terms of the percentage of the goal achieved. |
26 | | The percentage of goal achieved for each of the goals shall |
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1 | | be aggregated, and an average percentage value calculated, |
2 | | for each year of the 10-year period. If the utility does |
3 | | not achieve an average percentage value in a given year of |
4 | | at least 95%, the participating utility's return on equity |
5 | | shall be reduced by no more than 5 basis points for the |
6 | | following 12-month period. |
7 | | The financial penalties shall be applied as described in |
8 | | this subsection (f-5) through a separate tariff mechanism, |
9 | | which shall be filed by the utility together with its metrics. |
10 | | In the event the formula rate tariff established pursuant to |
11 | | subsection (c) of this Section terminates, the utility's |
12 | | obligations under subsection (f) of this Section and this |
13 | | subsection (f-5) shall also terminate, provided, however, that |
14 | | the tariff mechanism established pursuant to subsection (f) of |
15 | | this Section and this subsection (f-5) shall remain in effect |
16 | | until any penalties due and owing at the time of such |
17 | | termination are applied. |
18 | | The Commission shall, after notice and hearing, enter an |
19 | | order within 120 days after the metrics are filed approving, or |
20 | | approving with modification, the metrics and tariff mechanism. |
21 | | On June 1 of each subsequent year, each participating utility |
22 | | shall file a report with the Commission that includes |
23 | | performance under each metric, identification of any |
24 | | extraordinary events that adversely impacted the utility's |
25 | | performance, and any proposed financial penalties to be applied |
26 | | through the approved tariff mechanism or any revised future |
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1 | | incremental annual performance goals to address a shortfall. |
2 | | Each such filing shall include documentation and data |
3 | | supporting any proposed financial penalties to be applied, and |
4 | | the Commission shall, after notice and hearing, enter an order |
5 | | approving, or approving with modification, any proposed |
6 | | financial penalties within 180 days after the filing. The |
7 | | Commission-approved financial penalties shall be applied |
8 | | beginning with the next rate year. |
9 | | (g) On or before July 31, 2014, a participating utility |
10 | | shall file a report with the Commission demonstrating whether |
11 | | the average increase in the amounts paid per kilowatthour by |
12 | | residential eligible retail customers, or the weighted average |
13 | | aggregate increase in the amounts paid by all residential |
14 | | eligible retail customers for a participating utility that is a |
15 | | combination utility with more than one rate zone, in connection |
16 | | with electric service was limited to, during the period June 1, |
17 | | 2013 through May 31, 2014, no more than 2.5%, compounded |
18 | | annually, of the amount paid per kilowatthour by those |
19 | | customers during the period June 1, 2010 through May 31, 2011, |
20 | | and exclusive of the effects of energy efficiency programs. The |
21 | | report shall be filed together with a statement from an |
22 | | independent auditor attesting to the accuracy of the report. |
23 | | In the event that the average annual increase exceeds 2.5% |
24 | | as calculated pursuant to this subsection (g), then Sections |
25 | | 1-56A and 1-76 of the Illinois Power Agency Act and Sections |
26 | | 8-103A, 16-108.5, 16-108.6, 16-108.7, 16-108.8, and 16-111.5B |
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1 | | of this Act, other than this subsection, shall be inoperative |
2 | | as they relate to the utility and its service area as of the |
3 | | date of the report due to be submitted pursuant to this |
4 | | subsection and the utility shall no longer be eligible to |
5 | | annually update the performance-based formula rate tariff |
6 | | pursuant to subsection (d) of this Section. In such event, the |
7 | | then current rates shall remain in effect until such time as |
8 | | new rates are set pursuant to Article IX of this Act, subject |
9 | | to retroactive adjustment, with interest, to reconcile rates |
10 | | charged with actual costs, and the participating utility's |
11 | | voluntary commitments and obligations under subsection (b) of |
12 | | this Section shall immediately terminate, except for the |
13 | | utility's obligation to pay an amount already owed to the fund |
14 | | for training grants pursuant to a Commission order issued under |
15 | | subsection (b) of this Section. |
16 | | In the event that the average annual increase is 2.5% or |
17 | | less as calculated pursuant to this subsection (g), then the |
18 | | performance-based formula rate shall remain in effect as set |
19 | | forth in this Section. |
20 | | For purposes of this Section, the amount per kilowatthour |
21 | | means the total amount paid for electric service expressed on a |
22 | | per kilowatthour basis, and the total amount paid for electric |
23 | | service includes without limitation amounts paid for supply, |
24 | | transmission, distribution, surcharges, and add-on-taxes |
25 | | exclusive of any increases in taxes or new taxes imposed after |
26 | | the effective date of this amendatory Act of the 97th General |
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1 | | Assembly. For purposes of this Section, "eligible retail |
2 | | customers" shall have the meaning set forth in Section 16-111.5 |
3 | | of this Act. |
4 | | The fact that this Section becomes inoperative as set forth |
5 | | in this subsection shall not be construed to mean that the |
6 | | Commission may reexamine or otherwise reopen prudence or |
7 | | reasonableness determinations already made. |
8 | | (h) Sections 1-56A and 1-76 of the Illinois Power Agency |
9 | | Act and Sections 8-103A, 16-108.5, 16-108.6, 16-108.7, |
10 | | 16-108.8, and 16-111.5B of this Act, other than this |
11 | | subsection, are inoperative after December 31, 2017 for every |
12 | | participating utility, after which time a participating |
13 | | utility shall no longer be eligible to annually update the |
14 | | performance-based formula rate tariff pursuant to subsection |
15 | | (d) of this Section. At such time, the then current rates shall |
16 | | remain in effect until such time as new rates are set pursuant |
17 | | to Article IX of this Act, subject to retroactive adjustment, |
18 | | with interest, to reconcile rates charged with actual costs. |
19 | | By December 31, 2017, the Commission shall prepare and file |
20 | | with the General Assembly a report on the change in the average |
21 | | amount per kilowatthour paid by residential customers between |
22 | | June 1, 2011 and May 31, 2017. If the change in the total |
23 | | average rate paid exceeds 2.5% compounded annually, the |
24 | | Commission shall include in the report an analysis that shows |
25 | | the portion of the change due to the delivery services |
26 | | component and the portion of the change due to the supply |
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1 | | component of the rate. The report shall include separate |
2 | | sections for each participating utility. |
3 | | The fact that this Section becomes inoperative as set forth |
4 | | in this subsection shall not be construed to mean that the |
5 | | Commission may reexamine or otherwise reopen prudence or |
6 | | reasonableness determinations already made. |
7 | | (i) Notwithstanding anything to the contrary in this |
8 | | Section, an electric utility that serves less than 100,000 |
9 | | retail customers in Illinois may be considered a participating |
10 | | utility if it undertakes the voluntary commitments and |
11 | | obligations described in subsection (b) of this Section, |
12 | | provided, however, that such commitments and obligations, as |
13 | | well as amounts set forth in subsection (c) of this Section, |
14 | | shall be reduced proportionately, based on the number of |
15 | | customers, for the utility. Such participating utility shall be |
16 | | permitted to file a performance-based formula rate tariff that |
17 | | recovers its total actual Illinois jurisdictional costs to |
18 | | provide electric service to its retail customers. |
19 | | (j) While a participating utility may use, develop, and |
20 | | maintain broadband systems and the delivery of broadband |
21 | | services, voice-over-internet-protocol services, |
22 | | telecommunications services, and cable and video programming |
23 | | services in conjunction with providing delivery services to its |
24 | | retail customers, including, but not limited to, the |
25 | | installation, implementation and maintenance of Smart Grid |
26 | | electric system upgrades as defined in Section 16-108.6 of the |
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1 | | Act, a participating utility is not authorized under this |
2 | | Section to separately offer to its retail customers broadband |
3 | | services or the delivery of broadband services, |
4 | | voice-over-internet-protocol services, telecommunications |
5 | | services, or cable or video programming services or to recover |
6 | | the costs of such separate offerings from retail customers. |
7 | | (k) Nothing in this Section is intended to legislatively |
8 | | overturn the opinion issued in Commonwealth Edison Co. v. Ill. |
9 | | Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137, |
10 | | 1-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App. |
11 | | Ct. 2d Dist. Sept. 30, 2010). |
12 | | (220 ILCS 5/16-108.6 new) |
13 | | Sec. 16-108.6. Provisions relating to Smart Grid Advanced |
14 | | Metering Infrastructure Deployment Plan. |
15 | | (a) For purposes of this Section and Sections 16-108.7 and |
16 | | 16-108.8 of this Act: |
17 | | "Advanced Metering Infrastructure" or "AMI" means the |
18 | | communications hardware and software and associated system |
19 | | software that enables Smart Grid functions by creating a |
20 | | network between advanced meters and utility business systems |
21 | | and allowing collection and distribution of information to |
22 | | customers and other parties in addition to providing |
23 | | information to the utility itself. |
24 | | "Cost-beneficial" means a determination that the benefits |
25 | | of a participating utility's Smart Grid AMI Deployment Plan |
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1 | | exceed the costs of the Plan as initially filed with the |
2 | | Commission or as subsequently modified by the Commission. This |
3 | | standard is met if the net present value of the total benefits |
4 | | of the Smart Grid AMI Deployment Plan exceeds the net present |
5 | | value of the total costs of the Smart Grid AMI Deployment Plan. |
6 | | The total cost shall include all utility costs reasonably |
7 | | associated with the Smart Grid AMI Deployment Plan. The total |
8 | | benefits shall include the sum of avoided electricity costs, |
9 | | including avoided utility operational costs, avoided consumer |
10 | | power, capacity, and energy costs, and avoided societal costs |
11 | | associated with the production and consumption of electricity, |
12 | | as well as other societal benefits, including the greater |
13 | | integration of renewable and distributed power resources, |
14 | | reductions in the emissions of harmful pollutants and |
15 | | associated avoided health-related costs, other benefits |
16 | | associated with energy efficiency measures, demand-response |
17 | | activities, and the enabling of greater penetration of |
18 | | alternative fuel vehicles. |
19 | | "Participating utility" has the meaning set forth in |
20 | | Section 16-108.5 of this Act. |
21 | | "Smart Grid" means investments and policies that together |
22 | | promote one or more of the following goals: |
23 | | (1) Increased use of digital information and controls |
24 | | technology to improve reliability, security, and |
25 | | efficiency of the electric grid. |
26 | | (2) Dynamic optimization of grid operations and |
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1 | | resources, with full cyber-security. |
2 | | (3) Deployment and integration of distributed |
3 | | resources and generation, including renewable resources. |
4 | | (4) Development and incorporation of demand-response, |
5 | | demand-side resources, and energy efficiency resources. |
6 | | (5) Deployment of "smart" technologies (real-time, |
7 | | automated, interactive technologies that optimize the |
8 | | physical operation of appliances and consumer devices) for |
9 | | metering, communications concerning grid operations and |
10 | | status, and distribution automation. |
11 | | (6) Integration of "smart" appliances and consumer |
12 | | devices. |
13 | | (7) Deployment and integration of advanced electricity |
14 | | storage and peak-shaving technologies, including plug-in |
15 | | electric and hybrid electric vehicles, thermal-storage air |
16 | | conditioning and renewable energy generation. |
17 | | (8) Provision to consumers of timely information and |
18 | | control options. |
19 | | (9) Development of open access standards for |
20 | | communication and interoperability of appliances and |
21 | | equipment connected to the electric grid, including the |
22 | | infrastructure serving the grid. |
23 | | (10) Identification and lowering of unreasonable or |
24 | | unnecessary barriers to adoption of smart grid |
25 | | technologies, practices, services, and business models |
26 | | that support energy efficiency, demand-response, and |
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1 | | distributed generation. |
2 | | "Smart Grid Advisory Council" means the group of |
3 | | stakeholders formed pursuant to subsection (b) of this Section |
4 | | for the purposes of advising and working with participating |
5 | | utilities on the development and implementation of a Smart Grid |
6 | | Advanced Metering Infrastructure Deployment Plan. |
7 | | "Smart Grid electric system upgrades" means any of the |
8 | | following: |
9 | | (1) metering devices, sensors, control devices, and |
10 | | other devices integrated with and attached to an electric |
11 | | utility system that are capable of engaging in Smart Grid |
12 | | functions; |
13 | | (2) other monitoring and communications devices that |
14 | | enable Smart Grid functions, including, but not limited to, |
15 | | distribution automation; |
16 | | (3) software that enables devices or computers to |
17 | | engage in Smart Grid functions; |
18 | | (4) associated cyber secure data communication |
19 | | network, including enhancements to cyber security |
20 | | technologies and measures; |
21 | | (5) substation micro-processor relay upgrades; |
22 | | (6) devices that allow electric or hybrid-electric |
23 | | vehicles to engage in Smart Grid functions; or |
24 | | (7) devices that enable individual consumers to |
25 | | incorporate distributed and micro-generation. |
26 | | "Smart Grid electric system upgrades" does not include |
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1 | | expenditures for: (1) electricity generation, transmission, or |
2 | | distribution infrastructure or equipment that does not |
3 | | directly relate to or support installing, implementing or |
4 | | enabling Smart Grid functions; (2) physical interconnection of |
5 | | generators or other devices to the grid except those that are |
6 | | directly related to enabling Smart Grid functions; or (3) |
7 | | ongoing or routine operation, billing, customer relations, |
8 | | security, and maintenance. |
9 | | "Smart Grid functions" means: |
10 | | (1) the ability to develop, store, send, and receive |
11 | | digital information concerning or enabling grid |
12 | | operations, electricity use, costs, prices, time of use, |
13 | | nature of use, storage, or other information relevant to |
14 | | device, grid, or utility operations, to or from or by means |
15 | | of the electric utility system through one or a combination |
16 | | of devices and technologies; |
17 | | (2) the ability to develop, store, send, and receive |
18 | | digital information concerning electricity use, costs, |
19 | | prices, time of use, nature of use, storage, or other |
20 | | information relevant to device, grid, or utility |
21 | | operations to or from a computer or other control device; |
22 | | (3) the ability to measure or monitor electricity use |
23 | | as a function of time of day, power quality characteristics |
24 | | such as voltage level, current, cycles per second, or |
25 | | source or type of generation and to store, synthesize, or |
26 | | report that information by digital means; |
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1 | | (4) the ability to sense and localize disruptions or |
2 | | changes in power flows on the grid and communicate such |
3 | | information instantaneously and automatically for purposes |
4 | | of enabling automatic protective responses to sustain |
5 | | reliability and security of grid operations; |
6 | | (5) the ability to detect, prevent, communicate with |
7 | | regard to, respond to, or recover from system security |
8 | | threats, including cyber-security threats and terrorism, |
9 | | using digital information, media, and devices; |
10 | | (6) the ability of any device or machine to respond to |
11 | | signals, measurements, or communications automatically or |
12 | | in a manner programmed by its owner or operator without |
13 | | independent human intervention; |
14 | | (7) the ability to use digital information to operate |
15 | | functionalities on the electric utility grid that were |
16 | | previously electro-mechanical or manual; |
17 | | (8) the ability to use digital controls to manage and |
18 | | modify electricity demand, enable congestion management, |
19 | | assist in voltage control, provide operating reserves, and |
20 | | provide frequency regulation; or |
21 | | (9) the ability to integrate electric plug-in |
22 | | vehicles, distributed generation, and storage in a safe and |
23 | | cost effective manner on the electric grid. |
24 | | (b) Within 30 days after the effective date of this |
25 | | amendatory Act of the 97th General Assembly, the Smart Grid |
26 | | Advisory Council shall be established, which shall consist of 7 |
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1 | | total voting members with each member possessing either |
2 | | technical, business or consumer expertise in Smart Grid issues |
3 | | and each having been the single appointment of one of the |
4 | | following: the Governor, the Speaker of the House, the Minority |
5 | | Leader of the House, the President of the Senate, the Minority |
6 | | Leader of the Senate, the Illinois Science and Technology |
7 | | Coalition, and the Citizens Utility Board. The Governor shall |
8 | | designate one of the members of the Council to serve as |
9 | | chairman, and that person shall serve as the chairman at the |
10 | | pleasure of the Governor. The Smart Grid Advisory Council shall |
11 | | have the following duties: |
12 | | (1) Serve as an advisor to participating utilities |
13 | | subject to this Section and in the manner described in this |
14 | | Section, and the recommendations provided by the Council, |
15 | | although non-binding, shall be considered by the |
16 | | utilities. |
17 | | (2) Serve as trustees of the trust or foundation |
18 | | established pursuant to Section 16-108.7 of this Act with |
19 | | the duties enumerated thereunder. |
20 | | (c) After consultation with the Smart Grid Advisory |
21 | | Council, each participating utility shall file a Smart Grid |
22 | | Advanced Metering Infrastructure Deployment Plan ("AMI Plan") |
23 | | with the Commission within 180 days after the effective date of |
24 | | this amendatory Act of the 97th General Assembly or by November |
25 | | 1, 2011, whichever is later, or in the case of a combination |
26 | | utility as defined in Section 16-108.5, by April 1, 2012. The |
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1 | | AMI Plan shall provide for investment over a 10-year period |
2 | | that is sufficient to implement the AMI Plan across its entire |
3 | | service territory in a manner that is consistent with |
4 | | subsection (b) of Section 16-108.5 of this Act. The AMI Plan |
5 | | shall contain: |
6 | | (1) the participating utility's Smart Grid AMI vision |
7 | | statement that is consistent with the goal of developing a |
8 | | cost-beneficial Smart Grid; |
9 | | (2) a statement of Smart Grid AMI strategy that |
10 | | includes a description of how the utility evaluates and |
11 | | prioritizes technology choices to create customer value, |
12 | | including a plan to enhance and enable customers' ability |
13 | | to take advantage of Smart Grid functions beginning at the |
14 | | time an account has billed successfully on the AMI network; |
15 | | (3) a deployment schedule and plan that includes |
16 | | deployment of AMI to all customers for a participating |
17 | | utility other than a combination utility, and to 62% of all |
18 | | customers for a participating utility that is a combination |
19 | | utility; |
20 | | (4) annual milestones and metrics for the purposes of |
21 | | measuring the success of the AMI Plan in enabling Smart |
22 | | Grid functions; and enhancing consumer benefits from Smart |
23 | | Grid AMI; and |
24 | | (5) a plan for the consumer education to be implemented |
25 | | by the participating utility. |
26 | | The AMI Plan shall be fully consistent with the standards |
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1 | | of the National Institute of Standard and Technology (NIST) for |
2 | | Smart Grid interoperability that are in effect at the time the |
3 | | participating utility files its AMI Plan, shall include open |
4 | | standards and internet protocol to the maximum extent possible |
5 | | consistent with cyber-security, and shall maximize, to the |
6 | | extent possible, a flexible smart meter platform that can |
7 | | accept remote device upgrades and contain sufficient internal |
8 | | memory capacity for additional storage capabilities, functions |
9 | | and services without the need for physical access to the meter. |
10 | | The AMI Plan shall secure the privacy of personal |
11 | | information and establish the right of consumers to consent to |
12 | | the disclosure of personal energy information to third parties |
13 | | through electronic, web-based, and other means in accordance |
14 | | with State and federal law and regulations regarding consumer |
15 | | privacy and protection of consumer data. |
16 | | After notice and hearing, the Commission shall, within 60 |
17 | | days of the filing of an AMI Plan, issue its order approving, |
18 | | or approving with modification, the AMI Plan if the Commission |
19 | | finds that the AMI Plan contains the information required in |
20 | | paragraphs (1) through (5) of this subsection (c) and further |
21 | | finds that the implementation of the AMI Plan is likely to be |
22 | | cost-beneficial, giving weight to the results of any |
23 | | Commission-approved pilot designed to examine the benefits and |
24 | | costs of AMI deployment. A participating utility's decision to |
25 | | invest pursuant to an AMI Plan approved by the Commission shall |
26 | | not be subject to prudence reviews in subsequent Commission |
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1 | | proceedings. Nothing in this subsection (c) is intended to |
2 | | limit the Commission's ability to review the reasonableness of |
3 | | the costs incurred under the AMI Plan. A participating utility |
4 | | shall be allowed to recover the reasonable costs it incurs in |
5 | | implementing a Commission-approved AMI Plan, including the |
6 | | costs of retired meters, and may recover such costs through its |
7 | | tariffs, including the performance-based formula rate tariff |
8 | | approved pursuant to subsection (c) of Section 16-108.5 of this |
9 | | Act. |
10 | | (d) The AMI Plan shall secure the privacy of the customer's |
11 | | personal information. "Personal information" for this purpose |
12 | | consists of the customer's name, address, telephone number, and |
13 | | other personally identifying information, as well as |
14 | | information about the customer's electric usage. Electric |
15 | | utilities, their contractors or agents, and any third party who |
16 | | comes into possession of such personal information by virtue of |
17 | | working on Smart Grid technology shall not disclose such |
18 | | personal information to be used in mailing lists or to be used |
19 | | for other commercial purposes not reasonably related to the |
20 | | conduct of the utility's business. Electric utilities shall |
21 | | comply with the consumer privacy requirements of the Personal |
22 | | Information Protection Act. |
23 | | (e) On April 1 of each year beginning in 2013 and after |
24 | | consultation with the Smart Grid Advisory Council, each |
25 | | participating utility shall submit a report regarding the |
26 | | progress it has made toward completing implementation of its |
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1 | | AMI Plan. This report shall: |
2 | | (1) describe the AMI investments made during the prior |
3 | | 12 months and the AMI investments planned to be made in the |
4 | | following 12 months; |
5 | | (2) provide sufficient detail to determine the |
6 | | utility's progress in meeting the metrics and milestones |
7 | | identified by the utility in its AMI Plan; and |
8 | | (3) identify any updates to the AMI Plan. |
9 | | Within 21 days after the utility files its annual report, |
10 | | the Commission shall have authority, either upon complaint or |
11 | | its own initiative, but with reasonable notice, to enter upon |
12 | | an investigation regarding the utility's progress in |
13 | | implementing the AMI Plan as described in paragraph (1) of this |
14 | | subsection (e). If the Commission finds, after notice and |
15 | | hearing, that the participating utility's progress in |
16 | | implementing the AMI Plan is materially deficient for the given |
17 | | Plan year, then the Commission shall issue an order requiring |
18 | | the participating utility to devise a corrective action plan, |
19 | | subject to Commission approval and oversight, to bring |
20 | | implementation back on schedule consistent with the AMI Plan. |
21 | | The Commission's order must be entered within 90 days after the |
22 | | utility files its annual report. If the Commission does not |
23 | | initiate an investigation within 21 days after the utility |
24 | | files its annual report, then the filing shall be deemed |
25 | | accepted by the Commission. The utility shall not be required |
26 | | to suspend implementation of its AMI Plan during any Commission |
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1 | | investigation. |
2 | | The participating utility's annual report regarding AMI |
3 | | Plan year 10 shall contain a statement verifying that the |
4 | | implementation of its AMI Plan is complete, provided, however, |
5 | | that if the utility is subject to a corrective action plan that |
6 | | extends the implementation period beyond 10 years, the utility |
7 | | shall include the verification statement in its final annual |
8 | | report. Following the date of a Commission order approving the |
9 | | final annual report or the date on which the final report is |
10 | | deemed accepted by the Commission, the utility's annual |
11 | | reporting obligations under this subsection (d) shall |
12 | | terminate, provided, however, that the utility shall have a |
13 | | continuing obligation to provide information, upon request, to |
14 | | the Commission and Smart Grid Advisory Council regarding the |
15 | | AMI Plan. |
16 | | (f) Each participating utility shall pay $2,500,000 per |
17 | | year to the trust or foundation established pursuant to Section |
18 | | 16-108.7 of this Act for each plan year of the AMI Plan, which |
19 | | shall be used for purposes of providing customer education |
20 | | regarding smart meters and related consumer-facing |
21 | | technologies and services and which shall be a recoverable |
22 | | expense. |
23 | | (g) Within 60 days after the Commission approves a |
24 | | participating utility's AMI Plan pursuant to subsection (c) of |
25 | | this Section, the participating utility, after consultation |
26 | | with the Smart Grid Advisory Council, shall file a proposed |
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1 | | tariff with the Commission that offers an opt-in market-based |
2 | | peak time rebate program that is designed to provide rebates to |
3 | | those residential retail customers that curtail their use of |
4 | | electricity during specific periods that are identified as peak |
5 | | usage periods. The total amount of rebates shall be the amount |
6 | | of compensation the utility obtains through markets or programs |
7 | | at the applicable regional transmission organization. The |
8 | | utility shall make all reasonable attempts to secure funding |
9 | | for the peak time rebate program through markets or programs at |
10 | | the applicable regional transmission organization. The rules |
11 | | and procedures for consumers to opt-in to the peak time rebate |
12 | | program shall include electronic sign-up and be designed to |
13 | | maximize participation. The Commission shall monitor the |
14 | | performance of programs established pursuant to this |
15 | | subsection (g) and shall order the termination or modification |
16 | | of a program if it determines that the program is not, after a |
17 | | reasonable period of time for development of at least 4 years, |
18 | | resulting in net benefits to the residential customers of the |
19 | | participating utility. |
20 | | (h) If Section 16-108.5 of this Act becomes inoperative |
21 | | with respect to one or more participating utilities as set |
22 | | forth in subsection (g) or (h) of that Section, then Sections |
23 | | 1-56A and 1-76 of the Illinois Power Agency Act and Sections |
24 | | 8-103A, 16-108.5, 16-108.6, 16-108.7, 16-108.8, and 16-111.5B |
25 | | of this Act shall become inoperative as to each affected |
26 | | utility and its service area on the same date as Section |
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1 | | 16-108.5 becomes inoperative. |
2 | | (220 ILCS 5/16-108.7 new) |
3 | | Sec. 16-108.7. Illinois Science and Energy Innovation |
4 | | Trust. |
5 | | (a) Within 90 days of the effective date of this amendatory |
6 | | Act of the 97th General Assembly, the members of the Smart Grid |
7 | | Advisory Council established pursuant to Section 16-108.6 of |
8 | | this Act, or a majority of the members thereof, shall cause to |
9 | | be established an Illinois science and energy innovation trust |
10 | | or foundation for the purposes of providing financial and |
11 | | technical support and assistance to entities, public or |
12 | | private, within the State of Illinois including, but not |
13 | | limited to, units of State and local government, educational |
14 | | and research institutions, corporations, and charitable, |
15 | | educational, environmental and community organizations, for |
16 | | programs and projects that support, encourage or utilize |
17 | | innovative technologies or other methods of modernizing the |
18 | | State's electric grid that will benefit the public by promoting |
19 | | economic development in Illinois. Such activities shall be |
20 | | supported through grants, loans, contracts, or other programs |
21 | | designed to assist and further benefit technological advances |
22 | | in the area of electric grid modernization and operation. The |
23 | | trust or foundation shall also be eligible for receipt of other |
24 | | energy and environmental grant opportunities, from public or |
25 | | private sources. |
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1 | | (b) Funds received by the trust or foundation pursuant to |
2 | | subsection (f) of Section 16-108.6 of this Act shall be used |
3 | | solely for the purpose of providing consumer education |
4 | | regarding smart meters and related consumer-facing |
5 | | technologies and services. |
6 | | (c) Such trust or foundation shall be governed by a |
7 | | declaration of trust or articles of incorporation and bylaws |
8 | | which shall, at a minimum, provide the following: |
9 | | (1) There shall initially be 7 trustees of the trust or |
10 | | foundation, which shall consist of the members of the Smart |
11 | | Grid Advisory Council established pursuant to Section |
12 | | 16-108.6 of this Act. Subsequently, the participating |
13 | | utilities shall appoint one trustee and the Clean Energy |
14 | | Trust shall appoint one non-voting trustee who shall |
15 | | provide expertise regarding early stage investment in |
16 | | Smart Grid projects. |
17 | | (2) All trustees shall be entitled to reimbursement for |
18 | | reasonable expenses incurred on behalf of the trust in the |
19 | | performance of their duties as trustees. All such |
20 | | compensation and reimbursements shall be paid out of the |
21 | | trust. |
22 | | (3) Trustees shall be appointed within 60 days after |
23 | | the creation of the trust or foundation and shall serve for |
24 | | a term of 5 years commencing upon the date of their |
25 | | respective appointments, until their respective successors |
26 | | are appointed and qualified. |
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1 | | (4) A vacancy in the office of trustee shall be filled |
2 | | by the person holding the office responsible for appointing |
3 | | the trustee whose death or resignation creates the vacancy, |
4 | | and a trustee appointed to fill a vacancy shall serve the |
5 | | remainder of the term of the trustee whose resignation or |
6 | | death created the vacancy. |
7 | | (5) The trust or foundation shall have an indefinite |
8 | | term and shall terminate at such time as no trust assets |
9 | | remain. |
10 | | (6) The allocation and disbursement of funds for the |
11 | | various purposes for which the trust or foundation is |
12 | | established shall be determined by the trustees in |
13 | | accordance with the declaration of trust or the articles of |
14 | | incorporation and bylaws. |
15 | | (7) The trust or foundation shall be authorized to |
16 | | employ an executive director and other employees, or |
17 | | contract management of the trust or foundation in its |
18 | | entirety to an outside organization found suitable by the |
19 | | trustees, to enter into leases, contracts and other |
20 | | obligations on behalf of the trust or foundation, and to |
21 | | incur expenses that the trustees deem necessary or |
22 | | appropriate for the fulfillment of the purposes for which |
23 | | the trust or foundation is established, provided, however, |
24 | | that salaries and administrative expenses incurred on |
25 | | behalf of the trust or foundation shall not exceed 3% of |
26 | | the trust's principal value, or $750,000, whichever is |
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1 | | greater, in any given year. |
2 | | (8) The trustees may create and appoint advisory boards |
3 | | or committees to assist them with the administration of the |
4 | | trust or foundation, and to advise and make recommendations |
5 | | to them regarding the contribution and disbursement of the |
6 | | trust or foundation funds. |
7 | | (9) All funds dispersed by the trust or foundation for |
8 | | programs and projects to meet the objectives of the trust |
9 | | or foundation as enumerated in this Section shall be |
10 | | subject to a peer-review process as determined by the |
11 | | trustees. This process shall be designed to determine, in |
12 | | an objective and unbiased manner, those programs and |
13 | | projects that best fit the objectives of the trust or |
14 | | foundation. In each fiscal year the trustees shall |
15 | | determine, based solely on the information provided |
16 | | through the peer-review process, a budget for programs and |
17 | | projects for that fiscal year. |
18 | | (10) The trustees shall administer a Smart Grid |
19 | | education fund from which it shall make grants to qualified |
20 | | not-for-profit organizations for the purpose of educating |
21 | | customers with regard to smart meters and related |
22 | | consumer-facing technologies and services. In making such |
23 | | grants the trust or foundation shall strongly encourage |
24 | | grantees to coordinate to the extent practicable and |
25 | | consider recommendations from the participating utilities |
26 | | regarding the development and implementation of customer |
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1 | | education plans. |
2 | | (11) One of the objectives of the trust or foundation |
3 | | is to remain self-funding. In order to meet this objective, |
4 | | the trustees may sign agreements with those entities |
5 | | receiving funding that provide for license fees, |
6 | | royalties, or other payments to the trust or foundation |
7 | | from such entities that receive support for their product |
8 | | development from the trust or foundation. Such payments, |
9 | | however, shall be contingent on the commercialization of |
10 | | such products, services, or technologies enabled by the |
11 | | funding provided by the trust or foundation. |
12 | | (d) The trustees shall notify each participating utility as |
13 | | defined in Section 16-108.5 of this Act of the formation of the |
14 | | trust or foundation. Within 90 days after receipt of the |
15 | | notification, each participating utility that is not a |
16 | | combination utility as defined in Section 16-108.5 of this Act |
17 | | shall contribute $15,000,000 to the trust or foundation, and |
18 | | each participating utility that is a combination utility, as |
19 | | defined in Section 16-108.5 of this Act, shall contribute |
20 | | $7,500,000 to the trust or foundation established pursuant to |
21 | | this Section. |
22 | | (e) If Section 16-108.5 of this Act becomes inoperative |
23 | | with respect to one or more participating utilities as set |
24 | | forth in subsection (g) or (h) of that Section, then Sections |
25 | | 1-56A and 1-76 of the Illinois Power Agency Act and Sections |
26 | | 8-103A, 16-108.5, 16-108.6, 16-108.7, 16-108.8, and 16-111.5B |
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1 | | of this Act shall become inoperative as to each affected |
2 | | utility and its service area on the same date as Section |
3 | | 16-108.5 becomes inoperative. |
4 | | (220 ILCS 5/16-108.8 new) |
5 | | Sec. 16-108.8. Illinois Smart Grid test bed. |
6 | | (a) Within 180 days after the effective date of this |
7 | | amendatory Act of the 97th General Assembly, each participating |
8 | | utility, as defined by Section 16-108.5 of this Act, shall |
9 | | create or otherwise designate a Smart Grid test bed, which may |
10 | | be located at one or more places within the utility's system, |
11 | | for the purposes of allowing for the testing of Smart Grid |
12 | | technologies. The objectives of this test bed shall be to: |
13 | | (1) provide an open, unbiased opportunity for testing |
14 | | programs, technologies, business models, and other Smart |
15 | | Grid-related activities; |
16 | | (2) provide on-grid locations for the testing of |
17 | | potentially innovative Smart Grid-related technologies and |
18 | | services, including but not limited to those funded by the |
19 | | trust or foundation established pursuant to Section |
20 | | 16-108.7 of this Act; |
21 | | (3) facilitate testing of business models or services |
22 | | that help integrate Smart Grid-related technologies into |
23 | | the electric grid, especially those business models that |
24 | | may help promote new products and services for retail |
25 | | customers; |
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1 | | (4) offer opportunities to test and showcase Smart Grid |
2 | | technologies and services, especially those likely to |
3 | | support the economic development goals of the State of |
4 | | Illinois. |
5 | | (b) The test bed shall reside in one or more locations on |
6 | | the participating utility's network. Such locations shall be |
7 | | chosen by the utility to maximize the opportunity for real-time |
8 | | and real-world testing of Smart Grid technologies and services |
9 | | taking into account the safety and security of the |
10 | | participating utility's grid and grid operations. |
11 | | (c) The participating utility, with input from the Smart |
12 | | Grid Advisory Council established pursuant to Section 16-108.6 |
13 | | of this Act, shall, as part of its filing under subsection (b) |
14 | | of Section 16-108.5, include a plan for the creation, |
15 | | operation, and administration of the test bed. This plan shall |
16 | | address the following: |
17 | | (1) how the utility proposes to comply with each of the |
18 | | objectives set forth in subsection (a) of this Section; |
19 | | (2) the proposed location or locations of the test bed; |
20 | | (3) the process by which the utility will receive, |
21 | | review, and qualify proposals to use the test bed; |
22 | | (4) the criteria by which the utility proposes to |
23 | | qualify proposals to use the test bed, including, but not |
24 | | limited to safety, reliability, security, customer data |
25 | | security, privacy, and economic development |
26 | | considerations; |
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1 | | (5) the engineering and operations support that the |
2 | | utility will provide to test bed users, including provision |
3 | | of customer data; and |
4 | | (6) the estimated costs to establish, administer and |
5 | | promote the availability of the test bed. |
6 | | (d) The test bed should be open to all qualified entities |
7 | | wishing to test programs, technologies, business models, and |
8 | | other Smart Grid-related activities, provided that the utility |
9 | | retains control of its grid and operations and may reject any |
10 | | programs, technologies, business models, and other Smart |
11 | | Grid-related activities that threaten the reliability, safety, |
12 | | security, or operations of its network, or that would threaten |
13 | | the security of customer-identifiable data in the judgment of |
14 | | the utility. The number of technologies and entities |
15 | | participating in the test bed at any time may be limited by the |
16 | | utility based on its determination of its ability to maintain a |
17 | | secure, safe, and reliable grid. |
18 | | (e) At a minimum, the test bed shall have the ability to |
19 | | receive live signals from PJM Interconnection LLC or other |
20 | | applicable regional transmission organization, the ability to |
21 | | test new applications in a utility scale environment (to |
22 | | include ramp rate regulations for distributed wind and solar |
23 | | resources), critical peak price response, and market based |
24 | | power dispatch. |
25 | | (f) At the end of the fourth year of operation the test bed |
26 | | shall be subject to an independent evaluation to determine if |
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1 | | the test bed is meeting the objectives of this Section or is |
2 | | likely to meet the objectives in the future. The evaluation |
3 | | shall include the performance of the utility as test bed |
4 | | operator. Subject to the findings, the utility and the trust or |
5 | | foundation established pursuant to Section 16-108.7 of this Act |
6 | | may choose to continue operating the test bed. |
7 | | (g) The utility shall be entitled to recover all prudently |
8 | | incurred and reasonable costs associated with evaluation of |
9 | | proposals, engineering, construction, operation, and |
10 | | administration of the test bed through the performance-based |
11 | | formula rate tariff established pursuant to Section 16-108.5 of |
12 | | this Act. |
13 | | (h) The utility is authorized to charge fees to users of |
14 | | the test bed that shall recover the costs associated with the |
15 | | incremental costs to the utility associated with |
16 | | administration of the test bed, provided, however, that any |
17 | | such fees collected by the utility shall be used to offset the |
18 | | costs to be recovered pursuant to subsection (g) of this |
19 | | Section. |
20 | | (i) On a quarterly basis, the utility shall provide the |
21 | | trust or foundation established pursuant to Section 16-108.7 of |
22 | | this Act with a report summarizing test bed activities, |
23 | | customers, discoveries, and other information as shall be |
24 | | mutually deemed relevant. |
25 | | (j) To the extent practicable, the utility and trust or |
26 | | foundation established pursuant to Section 16-108.7 of this Act |
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1 | | shall jointly pursue resources that enhance the capabilities |
2 | | and capacity of the test bed. |
3 | | (k) If Section 16-108.5 of this Act becomes inoperative |
4 | | with respect to one or more participating utilities as set |
5 | | forth in subsection (g) or (h) of that Section, then Sections |
6 | | 1-56A and 1-76 of the Illinois Power Agency Act and Sections |
7 | | 8-103A, 16-108.5, 16-108.6, 16-108.7, 16-108.8, and 16-111.5B |
8 | | of this Act shall become inoperative as to each affected |
9 | | utility and its service area on the same date as Section |
10 | | 16-108.5 become inoperative. |
11 | | (220 ILCS 5/16-111.5) |
12 | | Sec. 16-111.5. Provisions relating to procurement. |
13 | | (a) An electric utility that on December 31, 2005 served at |
14 | | least 100,000 customers in Illinois shall procure power and |
15 | | energy for its eligible retail customers in accordance with the |
16 | | applicable provisions set forth in Section 1-75 of the Illinois |
17 | | Power Agency Act and this Section. "Eligible retail customers" |
18 | | for the purposes of this Section means those retail customers |
19 | | that purchase power and energy from the electric utility under |
20 | | fixed-price bundled service tariffs, other than those retail |
21 | | customers whose service is declared or deemed competitive under |
22 | | Section 16-113 and those other customer groups specified in |
23 | | this Section, including self-generating customers, customers |
24 | | electing hourly pricing, or those customers who are otherwise |
25 | | ineligible for fixed-price bundled tariff service. Those |
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1 | | customers that are excluded from the definition of "eligible |
2 | | retail customers" shall not be included in the procurement plan |
3 | | load requirements, and the utility shall procure any supply |
4 | | requirements, including capacity, ancillary services, and |
5 | | hourly priced energy, in the applicable markets as needed to |
6 | | serve those customers, provided that the utility may include in |
7 | | its procurement plan load requirements for the load that is |
8 | | associated with those retail customers whose service has been |
9 | | declared or deemed competitive pursuant to Section 16-113 of |
10 | | this Act to the extent that those customers are purchasing |
11 | | power and energy during one of the transition periods |
12 | | identified in subsection (b) of Section 16-113 of this Act. |
13 | | (b) A procurement plan shall be prepared for each electric |
14 | | utility consistent with the applicable requirements of the |
15 | | Illinois Power Agency Act and this Section. For purposes of |
16 | | this Section, Illinois electric utilities that are affiliated |
17 | | by virtue of a common parent company are considered to be a |
18 | | single electric utility. Each procurement plan shall analyze |
19 | | the projected balance of supply and demand for eligible retail |
20 | | customers over a 5-year period with the first planning year |
21 | | beginning on June 1 of the year following the year in which the |
22 | | plan is filed. The plan shall specifically identify the |
23 | | wholesale products to be procured following plan approval, and |
24 | | shall follow all the requirements set forth in the Public |
25 | | Utilities Act and all applicable State and federal laws, |
26 | | statutes, rules, or regulations, as well as Commission orders. |
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1 | | Nothing in this Section precludes consideration of contracts |
2 | | longer than 5 years and related forecast data. Unless specified |
3 | | otherwise in this Section, in the procurement plan or in the |
4 | | implementing tariff, any procurement occurring in accordance |
5 | | with this plan shall be competitively bid through a request for |
6 | | proposals process. Approval and implementation of the |
7 | | procurement plan shall be subject to review and approval by the |
8 | | Commission according to the provisions set forth in this |
9 | | Section. A procurement plan shall include each of the following |
10 | | components: |
11 | | (1) Hourly load analysis. This analysis shall include: |
12 | | (i) multi-year historical analysis of hourly |
13 | | loads; |
14 | | (ii) switching trends and competitive retail |
15 | | market analysis; |
16 | | (iii) known or projected changes to future loads; |
17 | | and |
18 | | (iv) growth forecasts by customer class. |
19 | | (2) Analysis of the impact of any demand side and |
20 | | renewable energy initiatives. This analysis shall include: |
21 | | (i) the impact of demand response programs, both |
22 | | current and projected; |
23 | | (ii) supply side needs that are projected to be |
24 | | offset by purchases of renewable energy resources, if |
25 | | any; and |
26 | | (iii) the impact of energy efficiency programs, |
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1 | | both current and projected. |
2 | | (3) A plan for meeting the expected load requirements |
3 | | that will not be met through preexisting contracts. This |
4 | | plan shall include: |
5 | | (i) definitions of the different retail customer |
6 | | classes for which supply is being purchased; |
7 | | (ii) the proposed mix of demand-response products |
8 | | for which contracts will be executed during the next |
9 | | year. The cost-effective demand-response measures |
10 | | shall be procured whenever the cost is lower than |
11 | | procuring comparable capacity products, provided that |
12 | | such products shall: |
13 | | (A) be procured by a demand-response provider |
14 | | from eligible retail customers; |
15 | | (B) at least satisfy the demand-response |
16 | | requirements of the regional transmission |
17 | | organization market in which the utility's service |
18 | | territory is located, including, but not limited |
19 | | to, any applicable capacity or dispatch |
20 | | requirements; |
21 | | (C) provide for customers' participation in |
22 | | the stream of benefits produced by the |
23 | | demand-response products; |
24 | | (D) provide for reimbursement by the |
25 | | demand-response provider of the utility for any |
26 | | costs incurred as a result of the failure of the |
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1 | | supplier of such products to perform its |
2 | | obligations thereunder; and |
3 | | (E) meet the same credit requirements as apply |
4 | | to suppliers of capacity, in the applicable |
5 | | regional transmission organization market; |
6 | | (iii) monthly forecasted system supply |
7 | | requirements, including expected minimum, maximum, and |
8 | | average values for the planning period; |
9 | | (iv) the proposed mix and selection of standard |
10 | | wholesale products for which contracts will be |
11 | | executed during the next year, separately or in |
12 | | combination, to meet that portion of its load |
13 | | requirements not met through pre-existing contracts, |
14 | | including but not limited to monthly 5 x 16 peak period |
15 | | block energy, monthly off-peak wrap energy, monthly 7 x |
16 | | 24 energy, annual 5 x 16 energy, annual off-peak wrap |
17 | | energy, annual 7 x 24 energy, monthly capacity, annual |
18 | | capacity, peak load capacity obligations, capacity |
19 | | purchase plan, and ancillary services; |
20 | | (v) proposed term structures for each wholesale |
21 | | product type included in the proposed procurement plan |
22 | | portfolio of products; and |
23 | | (vi) an assessment of the price risk, load |
24 | | uncertainty, and other factors that are associated |
25 | | with the proposed procurement plan; this assessment, |
26 | | to the extent possible, shall include an analysis of |
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1 | | the following factors: contract terms, time frames for |
2 | | securing products or services, fuel costs, weather |
3 | | patterns, transmission costs, market conditions, and |
4 | | the governmental regulatory environment; the proposed |
5 | | procurement plan shall also identify alternatives for |
6 | | those portfolio measures that are identified as having |
7 | | significant price risk. |
8 | | (4) Proposed procedures for balancing loads. The |
9 | | procurement plan shall include, for load requirements |
10 | | included in the procurement plan, the process for (i) |
11 | | hourly balancing of supply and demand and (ii) the criteria |
12 | | for portfolio re-balancing in the event of significant |
13 | | shifts in load. |
14 | | (c) The procurement process set forth in Section 1-75 of |
15 | | the Illinois Power Agency Act and subsection (e) of this |
16 | | Section shall be administered by a procurement administrator |
17 | | and monitored by a procurement monitor. |
18 | | (1) The procurement administrator shall: |
19 | | (i) design the final procurement process in |
20 | | accordance with Section 1-75 of the Illinois Power |
21 | | Agency Act and subsection (e) of this Section following |
22 | | Commission approval of the procurement plan; |
23 | | (ii) develop benchmarks in accordance with |
24 | | subsection (e)(3) to be used to evaluate bids; these |
25 | | benchmarks shall be submitted to the Commission for |
26 | | review and approval on a confidential basis prior to |
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1 | | the procurement event; |
2 | | (iii) serve as the interface between the electric |
3 | | utility and suppliers; |
4 | | (iv) manage the bidder pre-qualification and |
5 | | registration process; |
6 | | (v) obtain the electric utilities' agreement to |
7 | | the final form of all supply contracts and credit |
8 | | collateral agreements; |
9 | | (vi) administer the request for proposals process; |
10 | | (vii) have the discretion to negotiate to |
11 | | determine whether bidders are willing to lower the |
12 | | price of bids that meet the benchmarks approved by the |
13 | | Commission; any post-bid negotiations with bidders |
14 | | shall be limited to price only and shall be completed |
15 | | within 24 hours after opening the sealed bids and shall |
16 | | be conducted in a fair and unbiased manner; in |
17 | | conducting the negotiations, there shall be no |
18 | | disclosure of any information derived from proposals |
19 | | submitted by competing bidders; if information is |
20 | | disclosed to any bidder, it shall be provided to all |
21 | | competing bidders; |
22 | | (viii) maintain confidentiality of supplier and |
23 | | bidding information in a manner consistent with all |
24 | | applicable laws, rules, regulations, and tariffs; |
25 | | (ix) submit a confidential report to the |
26 | | Commission recommending acceptance or rejection of |
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1 | | bids; |
2 | | (x) notify the utility of contract counterparties |
3 | | and contract specifics; and |
4 | | (xi) administer related contingency procurement |
5 | | events. |
6 | | (2) The procurement monitor, who shall be retained by |
7 | | the Commission, shall: |
8 | | (i) monitor interactions among the procurement |
9 | | administrator, suppliers, and utility; |
10 | | (ii) monitor and report to the Commission on the |
11 | | progress of the procurement process; |
12 | | (iii) provide an independent confidential report |
13 | | to the Commission regarding the results of the |
14 | | procurement event; |
15 | | (iv) assess compliance with the procurement plans |
16 | | approved by the Commission for each utility that on |
17 | | December 31, 2005 provided electric service to a least |
18 | | 100,000 customers in Illinois; |
19 | | (v) preserve the confidentiality of supplier and |
20 | | bidding information in a manner consistent with all |
21 | | applicable laws, rules, regulations, and tariffs; |
22 | | (vi) provide expert advice to the Commission and |
23 | | consult with the procurement administrator regarding |
24 | | issues related to procurement process design, rules, |
25 | | protocols, and policy-related matters; and |
26 | | (vii) consult with the procurement administrator |
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1 | | regarding the development and use of benchmark |
2 | | criteria, standard form contracts, credit policies, |
3 | | and bid documents. |
4 | | (d) Except as provided in subsection (j), the planning |
5 | | process shall be conducted as follows: |
6 | | (1) Beginning in 2008, each Illinois utility procuring |
7 | | power pursuant to this Section shall annually provide a |
8 | | range of load forecasts to the Illinois Power Agency by |
9 | | July 15 of each year, or such other date as may be required |
10 | | by the Commission or Agency. The load forecasts shall cover |
11 | | the 5-year procurement planning period for the next |
12 | | procurement plan and shall include hourly data |
13 | | representing a high-load, low-load and expected-load |
14 | | scenario for the load of the eligible retail customers. The |
15 | | utility shall provide supporting data and assumptions for |
16 | | each of the scenarios.
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17 | | (2) Beginning in 2008, the Illinois Power Agency shall |
18 | | prepare a procurement plan by August 15th of each year, or |
19 | | such other date as may be required by the Commission. The |
20 | | procurement plan shall identify the portfolio of |
21 | | demand-response and power and energy products to be |
22 | | procured. Cost-effective demand-response measures shall be |
23 | | procured as set forth in item (iii) of subsection (b) of |
24 | | this Section. Copies of the procurement plan shall be |
25 | | posted and made publicly available on the Agency's and |
26 | | Commission's websites, and copies shall also be provided to |
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1 | | each affected electric utility. An affected utility shall |
2 | | have 30 days following the date of posting to provide |
3 | | comment to the Agency on the procurement plan. Other |
4 | | interested entities also may comment on the procurement |
5 | | plan. All comments submitted to the Agency shall be |
6 | | specific, supported by data or other detailed analyses, |
7 | | and, if objecting to all or a portion of the procurement |
8 | | plan, accompanied by specific alternative wording or |
9 | | proposals. All comments shall be posted on the Agency's and |
10 | | Commission's websites. During this 30-day comment period, |
11 | | the Agency shall hold at least one public hearing within |
12 | | each utility's service area for the purpose of receiving |
13 | | public comment on the procurement plan. Within 14 days |
14 | | following the end of the 30-day review period, the Agency |
15 | | shall revise the procurement plan as necessary based on the |
16 | | comments received and file the procurement plan with the |
17 | | Commission and post the procurement plan on the websites. |
18 | | (3) Within 5 days after the filing of the procurement |
19 | | plan, any person objecting to the procurement plan shall |
20 | | file an objection with the Commission. Within 10 days after |
21 | | the filing, the Commission shall determine whether a |
22 | | hearing is necessary. The Commission shall enter its order |
23 | | confirming or modifying the procurement plan within 90 days |
24 | | after the filing of the procurement plan by the Illinois |
25 | | Power Agency. |
26 | | (4) The Commission shall approve the procurement plan, |
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1 | | including expressly the forecast used in the procurement |
2 | | plan, if the Commission determines that it will ensure |
3 | | adequate, reliable, affordable, efficient, and |
4 | | environmentally sustainable electric service at the lowest |
5 | | total cost over time, taking into account any benefits of |
6 | | price stability. |
7 | | (e) The procurement process shall include each of the |
8 | | following components: |
9 | | (1) Solicitation, pre-qualification, and registration |
10 | | of bidders. The procurement administrator shall |
11 | | disseminate information to potential bidders to promote a |
12 | | procurement event, notify potential bidders that the |
13 | | procurement administrator may enter into a post-bid price |
14 | | negotiation with bidders that meet the applicable |
15 | | benchmarks, provide supply requirements, and otherwise |
16 | | explain the competitive procurement process. In addition |
17 | | to such other publication as the procurement administrator |
18 | | determines is appropriate, this information shall be |
19 | | posted on the Illinois Power Agency's and the Commission's |
20 | | websites. The procurement administrator shall also |
21 | | administer the prequalification process, including |
22 | | evaluation of credit worthiness, compliance with |
23 | | procurement rules, and agreement to the standard form |
24 | | contract developed pursuant to paragraph (2) of this |
25 | | subsection (e). The procurement administrator shall then |
26 | | identify and register bidders to participate in the |
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1 | | procurement event. |
2 | | (2) Standard contract forms and credit terms and |
3 | | instruments. The procurement administrator, in |
4 | | consultation with the utilities, the Commission, and other |
5 | | interested parties and subject to Commission oversight, |
6 | | shall develop and provide standard contract forms for the |
7 | | supplier contracts that meet generally accepted industry |
8 | | practices. Standard credit terms and instruments that meet |
9 | | generally accepted industry practices shall be similarly |
10 | | developed. The procurement administrator shall make |
11 | | available to the Commission all written comments it |
12 | | receives on the contract forms, credit terms, or |
13 | | instruments. If the procurement administrator cannot reach |
14 | | agreement with the applicable electric utility as to the |
15 | | contract terms and conditions, the procurement |
16 | | administrator must notify the Commission of any disputed |
17 | | terms and the Commission shall resolve the dispute. The |
18 | | terms of the contracts shall not be subject to negotiation |
19 | | by winning bidders, and the bidders must agree to the terms |
20 | | of the contract in advance so that winning bids are |
21 | | selected solely on the basis of price. |
22 | | (3) Establishment of a market-based price benchmark. |
23 | | As part of the development of the procurement process, the |
24 | | procurement administrator, in consultation with the |
25 | | Commission staff, Agency staff, and the procurement |
26 | | monitor, shall establish benchmarks for evaluating the |
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1 | | final prices in the contracts for each of the products that |
2 | | will be procured through the procurement process. The |
3 | | benchmarks shall be based on price data for similar |
4 | | products for the same delivery period and same delivery |
5 | | hub, or other delivery hubs after adjusting for that |
6 | | difference. The price benchmarks may also be adjusted to |
7 | | take into account differences between the information |
8 | | reflected in the underlying data sources and the specific |
9 | | products and procurement process being used to procure |
10 | | power for the Illinois utilities. The benchmarks shall be |
11 | | confidential but shall be provided to, and will be subject |
12 | | to Commission review and approval, prior to a procurement |
13 | | event. |
14 | | (4) Request for proposals competitive procurement |
15 | | process. The procurement administrator shall design and |
16 | | issue a request for proposals to supply electricity in |
17 | | accordance with each utility's procurement plan, as |
18 | | approved by the Commission. The request for proposals shall |
19 | | set forth a procedure for sealed, binding commitment |
20 | | bidding with pay-as-bid settlement, and provision for |
21 | | selection of bids on the basis of price. |
22 | | (5) A plan for implementing contingencies in the event |
23 | | of supplier default or failure of the procurement process |
24 | | to fully meet the expected load requirement due to |
25 | | insufficient supplier participation, Commission rejection |
26 | | of results, or any other cause. |
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1 | | (i) Event of supplier default: In the event of |
2 | | supplier default, the utility shall review the |
3 | | contract of the defaulting supplier to determine if the |
4 | | amount of supply is 200 megawatts or greater, and if |
5 | | there are more than 60 days remaining of the contract |
6 | | term. If both of these conditions are met, and the |
7 | | default results in termination of the contract, the |
8 | | utility shall immediately notify the Illinois Power |
9 | | Agency that a request for proposals must be issued to |
10 | | procure replacement power, and the procurement |
11 | | administrator shall run an additional procurement |
12 | | event. If the contracted supply of the defaulting |
13 | | supplier is less than 200 megawatts or there are less |
14 | | than 60 days remaining of the contract term, the |
15 | | utility shall procure power and energy from the |
16 | | applicable regional transmission organization market, |
17 | | including ancillary services, capacity, and day-ahead |
18 | | or real time energy, or both, for the duration of the |
19 | | contract term to replace the contracted supply; |
20 | | provided, however, that if a needed product is not |
21 | | available through the regional transmission |
22 | | organization market it shall be purchased from the |
23 | | wholesale market. |
24 | | (ii) Failure of the procurement process to fully |
25 | | meet the expected load requirement: If the procurement |
26 | | process fails to fully meet the expected load |
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1 | | requirement due to insufficient supplier participation |
2 | | or due to a Commission rejection of the procurement |
3 | | results, the procurement administrator, the |
4 | | procurement monitor, and the Commission staff shall |
5 | | meet within 10 days to analyze potential causes of low |
6 | | supplier interest or causes for the Commission |
7 | | decision. If changes are identified that would likely |
8 | | result in increased supplier participation, or that |
9 | | would address concerns causing the Commission to |
10 | | reject the results of the prior procurement event, the |
11 | | procurement administrator may implement those changes |
12 | | and rerun the request for proposals process according |
13 | | to a schedule determined by those parties and |
14 | | consistent with Section 1-75 of the Illinois Power |
15 | | Agency Act and this subsection. In any event, a new |
16 | | request for proposals process shall be implemented by |
17 | | the procurement administrator within 90 days after the |
18 | | determination that the procurement process has failed |
19 | | to fully meet the expected load requirement. |
20 | | (iii) In all cases where there is insufficient |
21 | | supply provided under contracts awarded through the |
22 | | procurement process to fully meet the electric |
23 | | utility's load requirement, the utility shall meet the |
24 | | load requirement by procuring power and energy from the |
25 | | applicable regional transmission organization market, |
26 | | including ancillary services, capacity, and day-ahead |
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1 | | or real time energy or both; provided, however, that if |
2 | | a needed product is not available through the regional |
3 | | transmission organization market it shall be purchased |
4 | | from the wholesale market. |
5 | | (6) The procurement process described in this |
6 | | subsection is exempt from the requirements of the Illinois |
7 | | Procurement Code, pursuant to Section 20-10 of that Code. |
8 | | (f) Within 2 business days after opening the sealed bids, |
9 | | the procurement administrator shall submit a confidential |
10 | | report to the Commission. The report shall contain the results |
11 | | of the bidding for each of the products along with the |
12 | | procurement administrator's recommendation for the acceptance |
13 | | and rejection of bids based on the price benchmark criteria and |
14 | | other factors observed in the process. The procurement monitor |
15 | | also shall submit a confidential report to the Commission |
16 | | within 2 business days after opening the sealed bids. The |
17 | | report shall contain the procurement monitor's assessment of |
18 | | bidder behavior in the process as well as an assessment of the |
19 | | procurement administrator's compliance with the procurement |
20 | | process and rules. The Commission shall review the confidential |
21 | | reports submitted by the procurement administrator and |
22 | | procurement monitor, and shall accept or reject the |
23 | | recommendations of the procurement administrator within 2 |
24 | | business days after receipt of the reports. |
25 | | (g) Within 3 business days after the Commission decision |
26 | | approving the results of a procurement event, the utility shall |
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1 | | enter into binding contractual arrangements with the winning |
2 | | suppliers using the standard form contracts; except that the |
3 | | utility shall not be required either directly or indirectly to |
4 | | execute the contracts if a tariff that is consistent with |
5 | | subsection (l) of this Section has not been approved and placed |
6 | | into effect for that utility. |
7 | | (h) The names of the successful bidders and the load |
8 | | weighted average of the winning bid prices for each contract |
9 | | type and for each contract term shall be made available to the |
10 | | public at the time of Commission approval of a procurement |
11 | | event. The Commission, the procurement monitor, the |
12 | | procurement administrator, the Illinois Power Agency, and all |
13 | | participants in the procurement process shall maintain the |
14 | | confidentiality of all other supplier and bidding information |
15 | | in a manner consistent with all applicable laws, rules, |
16 | | regulations, and tariffs. Confidential information, including |
17 | | the confidential reports submitted by the procurement |
18 | | administrator and procurement monitor pursuant to subsection |
19 | | (f) of this Section, shall not be made publicly available and |
20 | | shall not be discoverable by any party in any proceeding, |
21 | | absent a compelling demonstration of need, nor shall those |
22 | | reports be admissible in any proceeding other than one for law |
23 | | enforcement purposes. |
24 | | (i) Within 2 business days after a Commission decision |
25 | | approving the results of a procurement event or such other date |
26 | | as may be required by the Commission from time to time, the |
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1 | | utility shall file for informational purposes with the |
2 | | Commission its actual or estimated retail supply charges, as |
3 | | applicable, by customer supply group reflecting the costs |
4 | | associated with the procurement and computed in accordance with |
5 | | the tariffs filed pursuant to subsection (l) of this Section |
6 | | and approved by the Commission. |
7 | | (j) Within 60 days following the effective date of this |
8 | | amendatory Act, each electric utility that on December 31, 2005 |
9 | | provided electric service to at least 100,000 customers in |
10 | | Illinois shall prepare and file with the Commission an initial |
11 | | procurement plan, which shall conform in all material respects |
12 | | to the requirements of the procurement plan set forth in |
13 | | subsection (b); provided, however, that the Illinois Power |
14 | | Agency Act shall not apply to the initial procurement plan |
15 | | prepared pursuant to this subsection. The initial procurement |
16 | | plan shall identify the portfolio of power and energy products |
17 | | to be procured and delivered for the period June 2008 through |
18 | | May 2009, and shall identify the proposed procurement |
19 | | administrator, who shall have the same experience and expertise |
20 | | as is required of a procurement administrator hired pursuant to |
21 | | Section 1-75 of the Illinois Power Agency Act. Copies of the |
22 | | procurement plan shall be posted and made publicly available on |
23 | | the Commission's website. The initial procurement plan may |
24 | | include contracts for renewable resources that extend beyond |
25 | | May 2009. |
26 | | (i) Within 14 days following filing of the initial |
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1 | | procurement plan, any person may file a detailed objection |
2 | | with the Commission contesting the procurement plan |
3 | | submitted by the electric utility. All objections to the |
4 | | electric utility's plan shall be specific, supported by |
5 | | data or other detailed analyses. The electric utility may |
6 | | file a response to any objections to its procurement plan |
7 | | within 7 days after the date objections are due to be |
8 | | filed. Within 7 days after the date the utility's response |
9 | | is due, the Commission shall determine whether a hearing is |
10 | | necessary. If it determines that a hearing is necessary, it |
11 | | shall require the hearing to be completed and issue an |
12 | | order on the procurement plan within 60 days after the |
13 | | filing of the procurement plan by the electric utility. |
14 | | (ii) The order shall approve or modify the procurement |
15 | | plan, approve an independent procurement administrator, |
16 | | and approve or modify the electric utility's tariffs that |
17 | | are proposed with the initial procurement plan. The |
18 | | Commission shall approve the procurement plan if the |
19 | | Commission determines that it will ensure adequate, |
20 | | reliable, affordable, efficient, and environmentally |
21 | | sustainable electric service at the lowest total cost over |
22 | | time, taking into account any benefits of price stability. |
23 | | (k) In order to promote price stability for residential and |
24 | | small commercial customers during the transition to |
25 | | competition in Illinois, and notwithstanding any other |
26 | | provision of this Act, each electric utility subject to this |
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1 | | Section shall enter into one or more multi-year financial swap |
2 | | contracts that become effective on the effective date of this |
3 | | amendatory Act. These contracts may be executed with generators |
4 | | and power marketers, including affiliated interests of the |
5 | | electric utility. These contracts shall be for a term of no |
6 | | more than 5 years and shall, for each respective utility or for |
7 | | any Illinois electric utilities that are affiliated by virtue |
8 | | of a common parent company and that are thereby considered a |
9 | | single electric utility for purposes of this subsection (k), |
10 | | not exceed in the aggregate 3,000 megawatts for any hour of the |
11 | | year. The contracts shall be financial contracts and not energy |
12 | | sales contracts. The contracts shall be executed as |
13 | | transactions under a negotiated master agreement based on the |
14 | | form of master agreement for financial swap contracts sponsored |
15 | | by the International Swaps and Derivatives Association, Inc. |
16 | | and shall be considered pre-existing contracts in the |
17 | | utilities' procurement plans for residential and small |
18 | | commercial customers. Costs incurred pursuant to a contract |
19 | | authorized by this subsection (k) shall be deemed prudently |
20 | | incurred and reasonable in amount and the electric utility |
21 | | shall be entitled to full cost recovery pursuant to the tariffs |
22 | | filed with the Commission. |
23 | | (k-5) In order to promote price stability for residential |
24 | | and small commercial customers during the infrastructure |
25 | | investment program described in subsection (b) of Section |
26 | | 16-108.5 of this Act, and notwithstanding any other provision |
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1 | | of this Act or the Illinois Power Agency Act, for each electric |
2 | | utility that serves more than one million retail customers in |
3 | | Illinois the Illinois Power Agency shall procure within 120 |
4 | | days after the effective date of this amendatory Act of the |
5 | | 97th General Assembly contracts for energy and renewable energy |
6 | | credits for the period June 1, 2013 through December 31, 2017. |
7 | | These contracts shall be entered into as the result of a |
8 | | competitive procurement event, and, to the extent that any |
9 | | provisions of this Section or the Illinois Power Agency Act do |
10 | | not conflict with this subsection (k-5), such provisions shall |
11 | | apply to the procurement event. The energy contracts shall be |
12 | | for 24 hour by 7 day supply over a term that runs from the first |
13 | | delivery year through December 31, 2017. For a utility that |
14 | | serves over 2 million customers, the energy contracts shall be |
15 | | multi-year with pricing escalating at 2.5% per annum. The |
16 | | energy contracts may be constructed as financial swaps or |
17 | | required physical delivery. |
18 | | Within 30 days of the effective date of this amendatory Act |
19 | | of the 97th General Assembly, each such utility shall submit to |
20 | | the Agency updated load forecasts for the period June 1, 2013 |
21 | | through May 31, 2017. The megawatt volume of the contracts or |
22 | | physical delivery of energy included in the updated load |
23 | | forecasts shall be based on the minimum monthly peak and |
24 | | off-peak average load requirements shown in the forecasts, |
25 | | taking into account any existing energy contracts in effect as |
26 | | well as the expected migration of the utility's customers to |
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1 | | alternative retail electric suppliers. The renewable energy |
2 | | credit volume shall be based on the number of credits that |
3 | | would satisfy the requirements of subsection (c) of Section |
4 | | 1-75 of the Illinois Power Agency Act, subject to the rate |
5 | | impact caps and other provisions of subsection (c) of Section |
6 | | 1-75 of the Illinois Power Agency Act. The evaluation of |
7 | | contract bids in the competitive procurement event shall |
8 | | incorporate price benchmarks set collaboratively by the |
9 | | Agency, the procurement administrator, the staff of the |
10 | | Commission, and the procurement monitor. If the contracts are |
11 | | swap contracts, then they shall be executed as transactions |
12 | | under a negotiated master agreement based on the form of master |
13 | | agreement for financial swap contracts sponsored by the |
14 | | International Swaps and Derivatives Association, Inc. Costs |
15 | | incurred pursuant to a contract authorized by this subsection |
16 | | (k-5) shall be deemed prudently incurred and reasonable in |
17 | | amount and the electric utility shall be entitled to full cost |
18 | | recovery pursuant to the tariffs filed with the Commission |
19 | | (l) An electric utility shall recover its costs incurred |
20 | | under this Section, including, but not limited to, the costs of |
21 | | procuring power and energy demand-response resources under |
22 | | this Section. The utility shall file with the initial |
23 | | procurement plan its proposed tariffs through which its costs |
24 | | of procuring power that are incurred pursuant to a |
25 | | Commission-approved procurement plan and those other costs |
26 | | identified in this subsection (l), will be recovered. The |
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1 | | tariffs shall include a formula rate or charge designed to pass |
2 | | through both the costs incurred by the utility in procuring a |
3 | | supply of electric power and energy for the applicable customer |
4 | | classes with no mark-up or return on the price paid by the |
5 | | utility for that supply, plus any just and reasonable costs |
6 | | that the utility incurs in arranging and providing for the |
7 | | supply of electric power and energy. The formula rate or charge |
8 | | shall also contain provisions that ensure that its application |
9 | | does not result in over or under recovery due to changes in |
10 | | customer usage and demand patterns, and that provide for the |
11 | | correction, on at least an annual basis, of any accounting |
12 | | errors that may occur. A utility shall recover through the |
13 | | tariff all reasonable costs incurred to implement or comply |
14 | | with any procurement plan that is developed and put into effect |
15 | | pursuant to Section 1-75 of the Illinois Power Agency Act and |
16 | | this Section, including any fees assessed by the Illinois Power |
17 | | Agency, costs associated with load balancing, and contingency |
18 | | plan costs. The electric utility shall also recover its full |
19 | | costs of procuring electric supply for which it contracted |
20 | | before the effective date of this Section in conjunction with |
21 | | the provision of full requirements service under fixed-price |
22 | | bundled service tariffs subsequent to December 31, 2006. All |
23 | | such costs shall be deemed to have been prudently incurred. The |
24 | | pass-through tariffs that are filed and approved pursuant to |
25 | | this Section shall not be subject to review under, or in any |
26 | | way limited by, Section 16-111(i) of this Act. |
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1 | | (m) The Commission has the authority to adopt rules to |
2 | | carry out the provisions of this Section. For the public |
3 | | interest, safety, and welfare, the Commission also has |
4 | | authority to adopt rules to carry out the provisions of this |
5 | | Section on an emergency basis immediately following the |
6 | | effective date of this amendatory Act. |
7 | | (n) Notwithstanding any other provision of this Act, any |
8 | | affiliated electric utilities that submit a single procurement |
9 | | plan covering their combined needs may procure for those |
10 | | combined needs in conjunction with that plan, and may enter |
11 | | jointly into power supply contracts, purchases, and other |
12 | | procurement arrangements, and allocate capacity and energy and |
13 | | cost responsibility therefor among themselves in proportion to |
14 | | their requirements. |
15 | | (o) On or before June 1 of each year, the Commission shall |
16 | | hold an informal hearing for the purpose of receiving comments |
17 | | on the prior year's procurement process and any recommendations |
18 | | for change.
|
19 | | (p) An electric utility subject to this Section may propose |
20 | | to invest, lease, own, or operate an electric generation |
21 | | facility as part of its procurement plan, provided the utility |
22 | | demonstrates that such facility is the least-cost option to |
23 | | provide electric service to eligible retail customers. If the |
24 | | facility is shown to be the least-cost option and is included |
25 | | in a procurement plan prepared in accordance with Section 1-75 |
26 | | of the Illinois Power Agency Act and this Section, then the |
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1 | | electric utility shall make a filing pursuant to Section 8-406 |
2 | | of this the Act, and may request of the Commission any |
3 | | statutory relief required thereunder. If the Commission grants |
4 | | all of the necessary approvals for the proposed facility, such |
5 | | supply shall thereafter be considered as a pre-existing |
6 | | contract under subsection (b) of this Section. The Commission |
7 | | shall in any order approving a proposal under this subsection |
8 | | specify how the utility will recover the prudently incurred |
9 | | costs of investing in, leasing, owning, or operating such |
10 | | generation facility through just and reasonable rates charged |
11 | | to eligible retail customers. Cost recovery for facilities |
12 | | included in the utility's procurement plan pursuant to this |
13 | | subsection shall not be subject to review under or in any way |
14 | | limited by the provisions of Section 16-111(i) of this Act. |
15 | | Nothing in this Section is intended to prohibit a utility from |
16 | | filing for a fuel adjustment clause as is otherwise permitted |
17 | | under Section 9-220 of this Act.
|
18 | | (Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09 .) |
19 | | (220 ILCS 5/16-111.5B new) |
20 | | Sec. 16-111.5B. Provisions relating to energy efficiency |
21 | | procurement. |
22 | | (a) Beginning in 2012, procurement plans prepared pursuant |
23 | | to Section 16-111.5 of this Act shall be subject to the |
24 | | following additional requirements: |
25 | | (1) The analysis included pursuant to paragraph (2) of |
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1 | | subsection (b) of Section 16-111.5 shall also include the |
2 | | impact of energy efficiency building codes or appliance |
3 | | standards, both current and projected. |
4 | | (2) The procurement plan components described in |
5 | | subsection (b) of Section 16-111.5 shall also include an |
6 | | assessment of opportunities to expand the programs |
7 | | promoting energy efficiency measures that have been |
8 | | offered under plans approved pursuant to Section 8-103 of |
9 | | this Act or to implement additional cost-effective energy |
10 | | efficiency programs or measures. |
11 | | (3) In addition to the information provided pursuant to |
12 | | paragraph (1) of subsection (d) of Section 16-111.5 of this |
13 | | Act, each Illinois utility procuring power pursuant to that |
14 | | Section shall annually provide to the Illinois Power Agency |
15 | | by July 15 of each year, or such other date as may be |
16 | | required by the Commission or Agency, an assessment of |
17 | | cost-effective energy efficiency programs or measures that |
18 | | could be included in the procurement plan. The assessment |
19 | | shall include the following: |
20 | | (A) A comprehensive energy efficiency potential |
21 | | study for the utility's service territory that was |
22 | | completed within the past 3 years. |
23 | | (B) Beginning in 2014, the most recent analysis |
24 | | submitted pursuant to Section 8-103A of this Act and |
25 | | approved by the Commission under subsection (f) of |
26 | | Section 8-103 of this Act. |
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1 | | (C) Identification of new or expanded |
2 | | cost-effective energy efficiency programs or measures |
3 | | that are incremental to those included in energy |
4 | | efficiency and demand-response plans approved by the |
5 | | Commission pursuant to Section 8-103 of this Act and |
6 | | that would be offered to eligible retail customers. |
7 | | (D) Analysis showing that the new or expanded |
8 | | cost-effective energy efficiency programs or measures |
9 | | would lead to a reduction in the overall cost of |
10 | | electric service. |
11 | | (E) Analysis of how the cost of procuring |
12 | | additional cost-effective energy efficiency measures |
13 | | compares over the life of the measures to the |
14 | | prevailing cost of comparable supply. |
15 | | (F) An energy savings goal, expressed in |
16 | | megawatt-hours, for the year in which the measures will |
17 | | be implemented. |
18 | | In preparing such assessments, a utility shall conduct |
19 | | an annual solicitation process for purposes of requesting |
20 | | proposals from third party vendors, the results of which |
21 | | shall be provided to the Agency as part of the assessment, |
22 | | including documentation of all bids received. The utility |
23 | | shall develop requests for proposals consistent with the |
24 | | manner in which it develops requests for proposals under |
25 | | plans approved pursuant to Section 8-103 of this Act, which |
26 | | considers input from the Agency and interested |
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1 | | stakeholders. |
2 | | (4) The Illinois Power Agency shall include in the |
3 | | procurement plan prepared pursuant to paragraph (2) of |
4 | | subsection (d) of Section 16-111.5 of this Act energy |
5 | | efficiency programs and measures it determines are |
6 | | cost-effective and the associated annual energy savings |
7 | | goal included in the annual solicitation process and |
8 | | assessment submitted pursuant to paragraph (3) of this |
9 | | subsection (a). |
10 | | (5) Pursuant to paragraph (4) of subsection (d) of |
11 | | Section 16-111.5 of this Act, the Commission shall also |
12 | | approve the energy efficiency programs and measures |
13 | | included in the procurement plan, including the annual |
14 | | energy savings goal, if the Commission determines they |
15 | | fully capture the potential for all achievable |
16 | | cost-effective savings, to the extent practicable, and |
17 | | otherwise satisfy the requirements of Section 8-103 of this |
18 | | Act. |
19 | | In the event the Commission approves the procurement of |
20 | | additional energy efficiency, it shall reduce the amount of |
21 | | power to be procured under the procurement plan to reflect |
22 | | the additional energy efficiency and shall direct the |
23 | | utility to undertake the procurement of such energy |
24 | | efficiency, which shall not be subject to the requirements |
25 | | of subsection (e) of Section 16-111.5 of this Act. The |
26 | | utility shall consider input from the Agency and interested |
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1 | | stakeholders on the procurement and administration |
2 | | process. |
3 | | (6) An electric utility shall recover its costs |
4 | | incurred under this Section related to the implementation |
5 | | of energy efficiency programs and measures approved by the |
6 | | Commission in its order approving the procurement plan |
7 | | under Section 16-111.5 of this Act, including, but not |
8 | | limited to, all costs associated with complying with this |
9 | | Section and all start-up and administrative costs and the |
10 | | costs for any evaluation, measurement, and verification of |
11 | | the measures, from eligible retail customers through the |
12 | | automatic adjustment clause tariff established pursuant to |
13 | | Section 8-103 of this Act, provided, however, that the |
14 | | limitations described in subsection (d) of that Section |
15 | | shall not apply to the costs incurred pursuant to this |
16 | | Section or Section 16-111.7 of this Act. |
17 | | (b) For purposes of this Section, the term "energy |
18 | | efficiency" shall have the meaning set forth in Section 1-10 of |
19 | | the Illinois Power Agency Act, and the term "cost-effective" |
20 | | shall have the meaning set forth in subsection (a) of Section |
21 | | 8-103 of this Act. In addition, the estimated costs to acquire |
22 | | an additional energy efficiency measure, when divided by the |
23 | | number of kilowatt-hours expected to be saved over the life of |
24 | | the measure, shall be less than or equal to the electricity |
25 | | costs that would be avoided as a result of the energy |
26 | | efficiency measure. |
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1 | | (c) If Section 16-108.5 of this Act becomes inoperative |
2 | | with respect to one or more participating utilities as set |
3 | | forth in subsection (g) or (h) of that Section, then Sections |
4 | | 1-56A and 1-76 of the Illinois Power Agency Act and Sections |
5 | | 8-103A, 16-108.5, 16-108.6, 16-108.7, 16-108.8, and 16-111.5B |
6 | | of this Act shall become inoperative as to each affected |
7 | | utility and its service area on the same date as Section |
8 | | 16-108.5 becomes inoperative. |
9 | | (220 ILCS 5/16-111.7)
|
10 | | Sec. 16-111.7. On-bill financing program; electric |
11 | | utilities. |
12 | | (a) The Illinois General Assembly finds that Illinois homes |
13 | | and businesses have the potential to save energy through |
14 | | conservation and cost-effective energy efficiency measures. |
15 | | Programs created pursuant to this Section will allow utility |
16 | | customers to purchase cost-effective energy efficiency |
17 | | measures , including measures set forth in a |
18 | | Commission-approved energy efficiency and demand-response plan |
19 | | under Section 8-103 of this Act and that are cost-effective as |
20 | | that term is defined by that Section, with no required initial |
21 | | upfront payment, and to pay the cost of those products and |
22 | | services over time on their utility bill. |
23 | | (b) Notwithstanding any other provision of this Act, an |
24 | | electric utility serving more than 100,000 customers on January |
25 | | 1, 2009 shall offer a Commission-approved on-bill financing |
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1 | | program ("program") that allows its eligible retail customers, |
2 | | as that term is defined in Section 16-111.5 of this Act, who |
3 | | own a residential single family home, duplex, or other |
4 | | residential building with 4 or less units, or condominium at |
5 | | which the electric service is being provided (i) to borrow |
6 | | funds from a third party lender in order to purchase electric |
7 | | energy efficiency measures approved under the program for |
8 | | installation in such home or condominium without any required |
9 | | upfront payment and (ii) to pay back such funds over time |
10 | | through the electric utility's bill. Based upon the process |
11 | | described in subsection (b-5) of this Section, small commercial |
12 | | retail customers, as that term is defined in Section 16-102 of |
13 | | this Act, who own the premises at which electric service is |
14 | | being provided may be included in such program. After receiving |
15 | | a request from an electric utility for approval of a proposed |
16 | | program and tariffs pursuant to this Section, the Commission |
17 | | shall render its decision within 120 days. If no decision is |
18 | | rendered within 120 days, then the request shall be deemed to |
19 | | be approved. |
20 | | (b-5) Within 30 days after the effective date of this |
21 | | amendatory Act of the 96th General Assembly, the Commission |
22 | | shall convene a workshop process during which interested |
23 | | participants may discuss issues related to the program, |
24 | | including program design, eligible electric energy efficiency |
25 | | measures, vendor qualifications, and a methodology for |
26 | | ensuring ongoing compliance with such qualifications, |
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1 | | financing, sample documents such as request for proposals, |
2 | | contracts and agreements, dispute resolution, pre-installment |
3 | | and post-installment verification, and evaluation. The |
4 | | workshop process shall be completed within 150 days after the |
5 | | effective date of this amendatory Act of the 96th General |
6 | | Assembly. |
7 | | (c) Not later than 60 days following completion of the |
8 | | workshop process described in subsection (b-5) of this Section, |
9 | | each electric utility subject to subsection (b) of this Section |
10 | | shall submit a proposed program to the Commission that contains |
11 | | the following components: |
12 | | (1) A list of recommended electric energy efficiency |
13 | | measures that will be eligible for on-bill financing. An |
14 | | eligible electric energy efficiency measure ("measure") |
15 | | shall be defined by the following: |
16 | | (A) the measure would be applied to or replace |
17 | | electric energy-using equipment; and either |
18 | | (B) application of the measure to equipment and |
19 | | systems will have estimated electricity savings |
20 | | (determined by rates in effect at the time of |
21 | | purchase), that are sufficient to cover the costs of |
22 | | implementing the measures, including finance charges |
23 | | and any program fees not recovered pursuant to |
24 | | subsection (f) of this Section ; to . To assist the |
25 | | electric utility in identifying or approving measures, |
26 | | the utility may consult with the Department of Commerce |
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1 | | and Economic Opportunity, as well as with retailers, |
2 | | technicians, and installers of electric energy |
3 | | efficiency measures and energy auditors (collectively |
4 | | "vendors") ; or . |
5 | | (C) the measure is included in a |
6 | | Commission-approved energy efficiency and |
7 | | demand-response plan under Section 8-103 of this Act |
8 | | and is cost-effective as that term is defined by that |
9 | | Section. |
10 | | (2) The electric utility shall issue a request for |
11 | | proposals ("RFP") to lenders for purposes of providing |
12 | | financing to participants to pay for approved measures. The |
13 | | RFP criteria shall include, but not be limited to, the |
14 | | interest rate, origination fees, and credit terms. The |
15 | | utility shall select the winning bidders based on its |
16 | | evaluation of these criteria, with a preference for those |
17 | | bids containing the rates, fees, and terms most favorable |
18 | | to participants; |
19 | | (3) The utility shall work with the lenders selected |
20 | | pursuant to the RFP process, and with vendors, to establish |
21 | | the terms and processes pursuant to which a participant can |
22 | | purchase eligible electric energy efficiency measures |
23 | | using the financing obtained from the lender. The vendor |
24 | | shall explain and offer the approved financing packaging to |
25 | | those customers identified in subsection (b) of this |
26 | | Section and shall assist customers in applying for |
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1 | | financing. As part of the process, vendors shall also |
2 | | provide to participants information about any other |
3 | | incentives that may be available for the measures. |
4 | | (4) The lender shall conduct credit checks or undertake |
5 | | other appropriate measures to limit credit risk, and shall |
6 | | review and approve or deny financing applications |
7 | | submitted by customers identified in subsection (b) of this |
8 | | Section. Following the lender's approval of financing and |
9 | | the participant's purchase of the measure or measures, the |
10 | | lender shall forward payment information to the electric |
11 | | utility, and the utility shall add as a separate line item |
12 | | on the participant's utility bill a charge showing the |
13 | | amount due under the program each month. |
14 | | (5) A loan issued to a participant pursuant to the |
15 | | program shall be the sole responsibility of the |
16 | | participant, and any dispute that may arise concerning the |
17 | | loan's terms, conditions, or charges shall be resolved |
18 | | between the participant and lender. Upon transfer of the |
19 | | property title for the premises at which the participant |
20 | | receives electric service from the utility or the |
21 | | participant's request to terminate service at such |
22 | | premises, the participant shall pay in full its electric |
23 | | utility bill, including all amounts due under the program, |
24 | | provided that this obligation may be modified as provided |
25 | | in subsection (g) of this Section. Amounts due under the |
26 | | program shall be deemed amounts owed for residential and, |
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1 | | as appropriate, small commercial electric service. |
2 | | (6) The electric utility shall remit payment in full to |
3 | | the lender each month on behalf of the participant. In the |
4 | | event a participant defaults on payment of its electric |
5 | | utility bill, the electric utility shall continue to remit |
6 | | all payments due under the program to the lender, and the |
7 | | utility shall be entitled to recover all costs related to a |
8 | | participant's nonpayment through the automatic adjustment |
9 | | clause tariff established pursuant to Section 16-111.8 of |
10 | | this Act. In addition, the electric utility shall retain a |
11 | | security interest in the measure or measures purchased |
12 | | under the program, and the utility retains its right to |
13 | | disconnect a participant that defaults on the payment of |
14 | | its utility bill. |
15 | | (7) The total outstanding amount financed under the |
16 | | program shall not exceed $2.5 million for an electric |
17 | | utility or electric utilities under a single holding |
18 | | company, provided that the electric utility or electric |
19 | | utilities may petition the Commission for an increase in |
20 | | such amount. |
21 | | (d) A program approved by the Commission shall also include |
22 | | the following criteria and guidelines for such program: |
23 | | (1) guidelines for financing of measures installed |
24 | | under a program, including, but not limited to, RFP |
25 | | criteria and limits on both individual loan amounts and the |
26 | | duration of the loans; |
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1 | | (2) criteria and standards for identifying and |
2 | | approving measures; |
3 | | (3) qualifications of vendors that will market or |
4 | | install measures, as well as a methodology for ensuring |
5 | | ongoing compliance with such qualifications; |
6 | | (4) sample contracts and agreements necessary to |
7 | | implement the measures and program; and |
8 | | (5) the types of data and information that utilities |
9 | | and vendors participating in the program shall collect for |
10 | | purposes of preparing the reports required under |
11 | | subsection (g) of this Section. |
12 | | (e) The proposed program submitted by each electric utility |
13 | | shall be consistent with the provisions of this Section that |
14 | | define operational, financial and billing arrangements between |
15 | | and among program participants, vendors, lenders, and the |
16 | | electric utility. |
17 | | (f) An electric utility shall recover all of the prudently |
18 | | incurred costs of offering a program approved by the Commission |
19 | | pursuant to this Section, including, but not limited to, all |
20 | | start-up and administrative costs and the costs for program |
21 | | evaluation. All prudently incurred costs under this Section |
22 | | shall be recovered from the residential and small commercial |
23 | | retail customer classes eligible to participate in the program |
24 | | through the automatic adjustment clause tariff established |
25 | | pursuant to Section 8-103 of this Act. |
26 | | (g) An independent evaluation of a program shall be |
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1 | | conducted after 3 years of the program's operation. The |
2 | | electric utility shall retain an independent evaluator who |
3 | | shall evaluate the effects of the measures installed under the |
4 | | program and the overall operation of the program, including but |
5 | | not limited to customer eligibility criteria and whether the |
6 | | payment obligation for permanent electric energy efficiency |
7 | | measures that will continue to provide benefits of energy |
8 | | savings should attach to the meter location. As part of the |
9 | | evaluation process, the evaluator shall also solicit feedback |
10 | | from participants and interested stakeholders. The evaluator |
11 | | shall issue a report to the Commission on its findings no later |
12 | | than 4 years after the date on which the program commenced, and |
13 | | the Commission shall issue a report to the Governor and General |
14 | | Assembly including a summary of the information described in |
15 | | this Section as well as its recommendations as to whether the |
16 | | program should be discontinued, continued with modification or |
17 | | modifications or continued without modification, provided that |
18 | | any recommended modifications shall only apply prospectively |
19 | | and to measures not yet installed or financed. |
20 | | (h) An electric utility offering a Commission-approved |
21 | | program pursuant to this Section shall not be required to |
22 | | comply with any other statute, order, rule, or regulation of |
23 | | this State that may relate to the offering of such program, |
24 | | provided that nothing in this Section is intended to limit the |
25 | | electric utility's obligation to comply with this Act and the |
26 | | Commission's orders, rules, and regulations, including Part |
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1 | | 280 of Title 83 of the Illinois Administrative Code. |
2 | | (i) The source of a utility customer's electric supply |
3 | | shall not disqualify a customer from participation in the |
4 | | utility's on-bill financing program. Customers of alternative |
5 | | retail electric suppliers may participate in the program under |
6 | | the same terms and conditions applicable to the utility's |
7 | | supply customers.
|
8 | | (Source: P.A. 96-33, eff. 7-10-09.)
|
9 | | (220 ILCS 5/16-128)
|
10 | | Sec. 16-128. Provisions related to utility employees
|
11 | | during the mandatory transition period. |
12 | | (a) The General Assembly finds:
|
13 | | (1) The reliability and safety of the electric system |
14 | | has depended and depends on a
workforce of skilled and |
15 | | dedicated employees, equipped with technical training
and |
16 | | experience.
|
17 | | (2) The integrity and reliability of the system has |
18 | | also requires depended on the
industry's commitment to |
19 | | invest in regular inspection and maintenance, to
assure |
20 | | that it can withstand the demands of heavy service |
21 | | requirements and
emergency situations.
|
22 | | (3) It is in the State's interest to protect the |
23 | | interests of utility
employees who have and continue to |
24 | | dedicate dedicated themselves to assuring reliable service |
25 | | to the
citizens of this State, and who might otherwise be |
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1 | | economically displaced in a
restructured industry.
|
2 | | The General Assembly further finds that it is
necessary to |
3 | | assure that employees of electric utilities and employees of |
4 | | contractors or subcontractors performing work on behalf of an |
5 | | electric utility operating in the
deregulated industry have the |
6 | | requisite skills, knowledge, training, experience, and
|
7 | | competence to provide reliable and safe electrical service |
8 | | under this Act
and therefore that alternative retail electric |
9 | | suppliers shall be required to
demonstrate
the competence of |
10 | | their employees to work in the industry .
|
11 | | The General Assembly also finds that it is necessary to |
12 | | assure that employees of alternative retail electric suppliers |
13 | | and employees of contractors or subcontractors performing work |
14 | | on behalf of an alternative retail electric supplier operating |
15 | | in the deregulated industry have the requisite skills, |
16 | | knowledge, training, experience, and competence to provide |
17 | | reliable and safe electrical service under this Act. |
18 | | To ensure that these findings and prerequisites for |
19 | | reliable and safe electrical service continue to prevail, each |
20 | | alternative retail electric supplier, electric utility, and |
21 | | contractors and subcontractors performing work on behalf of an |
22 | | electric utility or alternative retail electric supplier must |
23 | | demonstrate the competence of their respective employees to |
24 | | work on the distribution system. |
25 | | The knowledge, skill, training, experience, and competence |
26 | | levels to be
demonstrated shall be consistent with those |
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1 | | generally required
of or by the electric utilities in this |
2 | | State as of January 1, 2007, with respect to
their employees |
3 | | and employees of contractors or subcontractors performing work |
4 | | on their behalf. Nothing in this Section shall prohibit an |
5 | | electric utility from establishing knowledge, skill, training, |
6 | | experience, and competence levels greater than those required |
7 | | as of January 1, 2007 .
|
8 | | An adequate Adequate demonstration of requisite knowledge, |
9 | | skill , training, experience, and
competence shall include , at a |
10 | | minimum, such factors as completion or current participation |
11 | | and ultimate completion by the
employee of an accredited or |
12 | | otherwise recognized
apprenticeship program for the particular |
13 | | craft, trade or
skill, or specified and several years of |
14 | | employment with an electric
utility performing a particular |
15 | | work function that is utilized by an electric utility .
|
16 | | Notwithstanding any law, tariff, Commission rule, order, |
17 | | or decision to the contrary, the Commission shall have an |
18 | | affirmative statutory obligation to ensure that an electric |
19 | | utility is employing employees, contractors, and |
20 | | subcontractors with employees who meet the requirements of |
21 | | subsection (a) of this Section when installing, operating, and |
22 | | maintaining generation, transmission, or distribution |
23 | | facilities and equipment within this State pursuant to any |
24 | | provision in this Act or any Commission order, rule, or |
25 | | decision. |
26 | | For purposes of this Section, "distribution facilities and |
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1 | | equipment" means any and all of the facilities and equipment, |
2 | | including, but not limited to, substations, distribution |
3 | | feeder circuits, switches, meters, protective equipment, |
4 | | primary circuits, distribution transformers, line extensions |
5 | | and service extensions both above or below ground, conduit, |
6 | | risers, elbows, transformer pads, junction boxes, manholes, |
7 | | pedestals, conductors, and all associated fittings that |
8 | | connect the transmission- or distribution system to either the |
9 | | weatherhead on the retail customer's building or other |
10 | | structure for above ground service or to the terminals on the |
11 | | meter base of the retail customer's building or other structure |
12 | | for below ground service. |
13 | | To implement this requirement for alternative retail |
14 | | electric suppliers , the Commission, in
determining that an |
15 | | applicant meets the standards for
certification as an |
16 | | alternative retail electric supplier,
shall require the |
17 | | applicant to demonstrate (i) that the
applicant is licensed to |
18 | | do business, and bonded, in the State
of Illinois; and (ii) |
19 | | that the employees of the applicant that
will be installing, |
20 | | operating, and maintaining generation,
transmission, or |
21 | | distribution facilities within this State, or
any entity with |
22 | | which the applicant has contracted to perform
those functions |
23 | | within this State, have the requisite knowledge, skills, |
24 | | training, experience, and
competence to perform those |
25 | | functions in a safe and
responsible manner in order to provide |
26 | | safe and reliable
service, in accordance with the criteria |
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1 | | stated above.
|
2 | | (b) The General Assembly finds, based on experience in
|
3 | | other industries that have undergone similar transitions, that
|
4 | | the introduction of competition into the State's electric
|
5 | | utility industry may result in workforce reductions by
electric |
6 | | utilities which may adversely affect persons who have
been |
7 | | employed by this State's electric utilities in functions
|
8 | | important to the public convenience and welfare. The General
|
9 | | Assembly further finds that the impacts on employees and their
|
10 | | communities of any necessary reductions in the utility
|
11 | | workforce directly caused by this restructuring of the
electric |
12 | | industry shall be mitigated to the extent
practicable through |
13 | | such means as offers of voluntary
severance, retraining, early |
14 | | retirement, outplacement and
related benefits. Therefore, |
15 | | before any such reduction in the
workforce during the |
16 | | transition period, an electric utility
shall present to its |
17 | | employees or their representatives a
workforce reduction plan |
18 | | outlining the means by which the
electric utility intends to |
19 | | mitigate the impact of such
workforce reduction on its |
20 | | employees.
|
21 | | (c) In the event of a sale, purchase, or any other transfer
|
22 | | of ownership during the mandatory transition period of one or
|
23 | | more Illinois divisions or business units, and/or generating
|
24 | | stations or generating units, of an electric utility, the
|
25 | | electric utility's contract and/or agreements with the
|
26 | | acquiring entity or persons shall require that the entity or
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1 | | persons hire a sufficient number of non-supervisory employees
|
2 | | to operate and maintain the station, division or unit by
|
3 | | initially making offers of employment to the non-supervisory
|
4 | | workforce of the electric utility's division, business unit,
|
5 | | generating station and/or generating unit at no less than the
|
6 | | wage rates, and substantially equivalent fringe benefits and
|
7 | | terms and conditions of employment that are in effect at the
|
8 | | time of transfer of ownership of said division, business unit,
|
9 | | generating station, and/or generating units; and said wage
|
10 | | rates and substantially equivalent fringe benefits and terms
|
11 | | and conditions of employment shall continue for at least 30
|
12 | | months from the time of said transfer of ownership unless the
|
13 | | parties mutually agree to different terms and conditions of
|
14 | | employment within that 30-month period. The utility shall
offer |
15 | | a transition plan to those employees who are not offered
jobs |
16 | | by the acquiring entity because that entity has a need
for |
17 | | fewer workers. If there is litigation concerning the
sale, or |
18 | | other transfer of ownership of the electric utility's
|
19 | | divisions, business units, generating station, or
generating |
20 | | units, the 30-month period will begin on the date
the acquiring |
21 | | entity or persons take control or management
of the divisions, |
22 | | business units, generating station or
generating units of the |
23 | | electric utility.
|
24 | | (d) If a utility transfers ownership during the mandatory
|
25 | | transition period of one or more Illinois divisions, business
|
26 | | units, generating stations or generating units of an
electric |
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1 | | utility to a majority-owned subsidiary, that
subsidiary shall |
2 | | continue to employ the utility's employees
who were employed by |
3 | | the utility at such division, business
unit or generating |
4 | | station at the time of the transfer under
the same terms and |
5 | | conditions of employment as those employees
enjoyed at the time |
6 | | of the transfer. If ownership of the
subsidiary is subsequently |
7 | | sold or transferred to a third
party during the transition |
8 | | period, the transition provisions
outlined in subsection (c) |
9 | | shall apply.
|
10 | | (e) The plant transfer provisions set forth above shall not
|
11 | | apply to any generating station which was the subject of a
|
12 | | sales agreement entered into before January 1, 1997.
|
13 | | (Source: P.A. 90-561, eff. 12-16-97.)
|
14 | | (220 ILCS 5/16-128A new) |
15 | | Sec. 16-128A. Certification of Distributed Generation |
16 | | Facility Installers. |
17 | | (a) Within 18 months of the effective date of this |
18 | | amendatory Act of the 97th General Assembly, the Commission |
19 | | shall adopt rules, including emergency rules, establishing |
20 | | certification requirements ensuring that entities installing |
21 | | distributed generation facilities are in compliance with the |
22 | | requirements of subsection (a) of Section 16-128 of this Act. |
23 | | For purposes of this Section, the phrase "entities |
24 | | installing distributed generation facilities" shall include, |
25 | | but not be limited to, all entities that are exempt from the |
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1 | | definition of "alternative retail electric supplier" under |
2 | | item (v) of Section 16-102 of the Act.
For purposes of this |
3 | | Section, the phrase "self-installer" means an individual who |
4 | | (i) leases or purchases a cogeneration facility for his or her |
5 | | own personal use and (ii) installs such cogeneration or |
6 | | self-generation facility on his or her own promises without the |
7 | | assistance of any other person. |
8 | | (b) In addition to any authority granted to the Commission |
9 | | under the Act, the Commission is also authorized to: (1) |
10 | | determine which entities are subject to certification under |
11 | | this Section; (2) impose reasonable certification fees and |
12 | | penalties; (3) adopt disciplinary procedures; (4) investigate |
13 | | any and all activities subject to this Section, including |
14 | | violations thereof; (5) adopt procedures to issue or renew, or |
15 | | to refuse to issue or renew, a certification or to revoke, |
16 | | suspend, place on probation, reprimand, or otherwise |
17 | | discipline a certified entity under this Act or take other |
18 | | enforcement action against an entity subject to this Section; |
19 | | and (6) prescribe forms to be issued for the administration and |
20 | | enforcement of this Section. |
21 | | (c) No electric utility shall provide a retail customer |
22 | | with net metering service related to interconnection of that |
23 | | customer's distributed generation facility unless the customer |
24 | | provides the electric utility with (i) a certification that the |
25 | | customer installing the distributed generation facility was a |
26 | | self-installer or (ii) evidence that the distributed |
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1 | | generation facility was installed by an entity certified under |
2 | | this Section that is also in good standing with the Commission. |
3 | | For purposes of this subsection, a retail customer includes |
4 | | that customer's employees, officers, and agents. An electric |
5 | | utility shall file a tariff or tariffs with the Commission |
6 | | setting forth the documentation that a retail customer must |
7 | | provide to an electric utility. The provisions of this |
8 | | subsection (c) shall apply on or after the effective date of |
9 | | the Commission's rules prescribed pursuant to subsection (a) of |
10 | | this Section.
|
11 | | Section 99. Effective date. This Act takes effect upon |
12 | | becoming law.".
|