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.)
| ||||||
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 |
| |||||||
| |||||||
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.
|
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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: |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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
|
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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) |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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. |
| |||||||
| |||||||
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) |
| |||||||
| |||||||
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), |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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. |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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. |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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. |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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; |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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. |
| |||||||
| |||||||
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. |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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; |
| |||||||
| |||||||
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; |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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. |
| |||||||
| |||||||
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, |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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.
| ||||||
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 |
| |||||||
| |||||||
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, |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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. |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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. |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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. |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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. |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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, |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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, |
| |||||||
| |||||||
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; |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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
|
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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.".
|