Illinois General Assembly - Full Text of SB3811
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Full Text of SB3811  97th General Assembly

SB3811enr 97TH GENERAL ASSEMBLY

  
  
  

 


 
SB3811 EnrolledLRB097 19963 CEL 65260 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by changing
5Sections 16-107.5 and 16-111.5B as follows:
 
6    (220 ILCS 5/16-107.5)
7    Sec. 16-107.5. Net electricity metering.
8    (a) The Legislature finds and declares that a program to
9provide net electricity metering, as defined in this Section,
10for eligible customers can encourage private investment in
11renewable energy resources, stimulate economic growth, enhance
12the continued diversification of Illinois' energy resource
13mix, and protect the Illinois environment.
14    (b) As used in this Section, (i) "eligible customer" means
15a retail customer that owns or operates a solar, wind, or other
16eligible renewable electrical generating facility with a rated
17capacity of not more than 2,000 kilowatts that is located on
18the customer's premises and is intended primarily to offset the
19customer's own electrical requirements; (ii) "electricity
20provider" means an electric utility or alternative retail
21electric supplier; (iii) "eligible renewable electrical
22generating facility" means a generator powered by solar
23electric energy, wind, dedicated crops grown for electricity

 

 

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1generation, agricultural residues, untreated and unadulterated
2wood waste, landscape trimmings, livestock manure, anaerobic
3digestion of livestock or food processing waste, fuel cells or
4microturbines powered by renewable fuels, or hydroelectric
5energy; and (iv) "net electricity metering" (or "net metering")
6means the measurement, during the billing period applicable to
7an eligible customer, of the net amount of electricity supplied
8by an electricity provider to the customer's premises or
9provided to the electricity provider by the customer.
10    (c) A net metering facility shall be equipped with metering
11equipment that can measure the flow of electricity in both
12directions at the same rate.
13        (1) For eligible customers whose electric service has
14    not been declared competitive pursuant to Section 16-113 of
15    this Act as of July 1, 2011 and whose electric delivery
16    service is provided and measured on a kilowatt-hour basis
17    and electric supply service is not provided based on hourly
18    pricing, this shall typically be accomplished through use
19    of a single, bi-directional meter. If the eligible
20    customer's existing electric revenue meter does not meet
21    this requirement, the electricity provider shall arrange
22    for the local electric utility or a meter service provider
23    to install and maintain a new revenue meter at the
24    electricity provider's expense.
25        (2) For eligible customers whose electric service has
26    not been declared competitive pursuant to Section 16-113 of

 

 

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1    this Act as of July 1, 2011 and whose electric delivery
2    service is provided and measured on a kilowatt demand basis
3    and electric supply service is not provided based on hourly
4    pricing, this shall typically be accomplished through use
5    of a dual channel meter capable of measuring the flow of
6    electricity both into and out of the customer's facility at
7    the same rate and ratio. If such customer's existing
8    electric revenue meter does not meet this requirement, then
9    the electricity provider shall arrange for the local
10    electric utility or a meter service provider to install and
11    maintain a new revenue meter at the electricity provider's
12    expense.
13        (3) For all other eligible customers, the electricity
14    provider may arrange for the local electric utility or a
15    meter service provider to install and maintain metering
16    equipment capable of measuring the flow of electricity both
17    into and out of the customer's facility at the same rate
18    and ratio, typically through the use of a dual channel
19    meter. If the eligible customer's existing electric
20    revenue meter does not meet this requirement, then the
21    costs of installing such equipment shall be paid for by the
22    customer.
23    (d) An electricity provider shall measure and charge or
24credit for the net electricity supplied to eligible customers
25or provided by eligible customers whose electric service has
26not been declared competitive pursuant to Section 16-113 of the

 

 

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1Act as of July 1, 2011 and whose electric delivery service is
2provided and measured on a kilowatt-hour basis and electric
3supply service is not provided based on hourly pricing in the
4following manner:
5        (1) If the amount of electricity used by the customer
6    during the billing period exceeds the amount of electricity
7    produced by the customer, the electricity provider shall
8    charge the customer for the net electricity supplied to and
9    used by the customer as provided in subsection (e-5) of
10    this Section.
11        (2) If the amount of electricity produced by a customer
12    during the billing period exceeds the amount of electricity
13    used by the customer during that billing period, the
14    electricity provider supplying that customer shall apply a
15    1:1 kilowatt-hour credit to a subsequent bill for service
16    to the customer for the net electricity supplied to the
17    electricity provider. The electricity provider shall
18    continue to carry over any excess kilowatt-hour credits
19    earned and apply those credits to subsequent billing
20    periods to offset any customer-generator consumption in
21    those billing periods until all credits are used or until
22    the end of the annualized period.
23        (3) At the end of the year or annualized over the
24    period that service is supplied by means of net metering,
25    or in the event that the retail customer terminates service
26    with the electricity provider prior to the end of the year

 

 

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1    or the annualized period, any remaining credits in the
2    customer's account shall expire.
3    (d-5) An electricity provider shall measure and charge or
4credit for the net electricity supplied to eligible customers
5or provided by eligible customers whose electric service has
6not been declared competitive pursuant to Section 16-113 of
7this Act as of July 1, 2011 and whose electric delivery service
8is provided and measured on a kilowatt-hour basis and electric
9supply service is provided based on hourly pricing in the
10following manner:
11        (1) If the amount of electricity used by the customer
12    during any hourly period exceeds the amount of electricity
13    produced by the customer, the electricity provider shall
14    charge the customer for the net electricity supplied to and
15    used by the customer according to the terms of the contract
16    or tariff to which the same customer would be assigned to
17    or be eligible for if the customer was not a net metering
18    customer.
19        (2) If the amount of electricity produced by a customer
20    during any hourly period exceeds the amount of electricity
21    used by the customer during that hourly period, the energy
22    provider shall apply a credit for the net kilowatt-hours
23    produced in such period. The credit shall consist of an
24    energy credit and a delivery service credit. The energy
25    credit shall be valued at the same price per kilowatt-hour
26    as the electric service provider would charge for

 

 

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1    kilowatt-hour energy sales during that same hourly period.
2    The delivery credit shall be equal to the net
3    kilowatt-hours produced in such hourly period times a
4    credit that reflects all kilowatt-hour based charges in the
5    customer's electric service rate, excluding energy
6    charges.
7    (e) An electricity provider shall measure and charge or
8credit for the net electricity supplied to eligible customers
9whose electric service has not been declared competitive
10pursuant to Section 16-113 of this Act as of July 1, 2011 and
11whose electric delivery service is provided and measured on a
12kilowatt demand basis and electric supply service is not
13provided based on hourly pricing in the following manner:
14        (1) If the amount of electricity used by the customer
15    during the billing period exceeds the amount of electricity
16    produced by the customer, then the electricity provider
17    shall charge the customer for the net electricity supplied
18    to and used by the customer as provided in subsection (e-5)
19    of this Section. The , provided that the electricity
20    provider shall assess and the customer shall remain remains
21    responsible for all taxes, fees, and utility delivery
22    charges that would otherwise be applicable to the net gross
23    amount of electricity used by kilowatt-hours supplied to
24    the eligible customer by the electricity provider.
25        (2) If the amount of electricity produced by a customer
26    during the billing period exceeds the amount of electricity

 

 

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1    used by the customer during that billing period, then the
2    electricity provider supplying that customer shall apply a
3    1:1 kilowatt-hour credit that reflects the kilowatt-hour
4    based charges in the customer's electric service rate to a
5    subsequent bill for service to the customer for the net
6    electricity supplied to the electricity provider. The
7    electricity provider shall continue to carry over any
8    excess kilowatt-hour credits earned and apply those
9    credits to subsequent billing periods to offset any
10    customer-generator consumption in those billing periods
11    until all credits are used or until the end of the
12    annualized period.
13        (3) At the end of the year or annualized over the
14    period that service is supplied by means of net metering,
15    or in the event that the retail customer terminates service
16    with the electricity provider prior to the end of the year
17    or the annualized period, any remaining credits in the
18    customer's account shall expire.
19    (e-5) An electricity provider shall provide electric
20service to eligible customers whose electric service has not
21been declared competitive pursuant to Section 16-113 of this
22Act and whose electric supply service is not provided based on
23hourly pricing who utilize net metering at non-discriminatory
24rates that are identical, with respect to rate structure,
25retail rate components, and any monthly charges, to the rates
26that the customer would be charged if not a net metering

 

 

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1customer. An electricity provider shall not charge net metering
2customers any fee or charge or require additional equipment,
3insurance, or any other requirements not specifically
4authorized by interconnection standards authorized by the
5Commission, unless the fee, charge, or other requirement would
6apply to other similarly situated customers who are not net
7metering customers. The customer will remain responsible for
8all taxes, fees, and utility delivery charges that would
9otherwise be applicable to the net amount of electricity used
10by the customer. Subsections (c) through (e) of this Section
11shall not be construed to prevent an arms-length agreement
12between an electricity provider and an eligible customer that
13sets forth different prices, terms, and conditions for the
14provision of net metering service, including, but not limited
15to, the provision of the appropriate metering equipment for
16non-residential customers.
17    (f) Notwithstanding the requirements of subsections (c)
18through (e-5) of this Section, an electricity provider must
19require dual-channel metering for customers operating eligible
20renewable electrical generating facilities with a nameplate
21rating up to 2,000 kilowatts and to whom the provisions of
22neither subsection (d), (d-5), nor (e) of this Section apply.
23In such cases, electricity charges and credits shall be
24determined as follows:
25        (1) The electricity provider shall assess and the
26    customer remains responsible for all taxes, fees, and

 

 

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1    utility delivery charges that would otherwise be
2    applicable to the gross amount of kilowatt-hours supplied
3    to the eligible customer by the electricity provider.
4        (2) Each month that service is supplied by means of
5    dual-channel metering, the electricity provider shall
6    compensate the eligible customer for any excess
7    kilowatt-hour credits at the electricity provider's
8    avoided cost of electricity supply over the monthly period
9    or as otherwise specified by the terms of a power-purchase
10    agreement negotiated between the customer and electricity
11    provider.
12        (3) For all eligible net metering customers taking
13    service from an electricity provider under contracts or
14    tariffs employing time of use rates, any monthly
15    consumption of electricity shall be calculated according
16    to the terms of the contract or tariff to which the same
17    customer would be assigned to or be eligible for if the
18    customer was not a net metering customer. When those same
19    customer-generators are net generators during any discrete
20    time of use period, the net kilowatt-hours produced shall
21    be valued at the same price per kilowatt-hour as the
22    electric service provider would charge for retail
23    kilowatt-hour sales during that same time of use period.
24    (g) For purposes of federal and State laws providing
25renewable energy credits or greenhouse gas credits, the
26eligible customer shall be treated as owning and having title

 

 

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1to the renewable energy attributes, renewable energy credits,
2and greenhouse gas emission credits related to any electricity
3produced by the qualified generating unit. The electricity
4provider may not condition participation in a net metering
5program on the signing over of a customer's renewable energy
6credits; provided, however, this subsection (g) shall not be
7construed to prevent an arms-length agreement between an
8electricity provider and an eligible customer that sets forth
9the ownership or title of the credits.
10    (h) Within 120 days after the effective date of this
11amendatory Act of the 95th General Assembly, the Commission
12shall establish standards for net metering and, if the
13Commission has not already acted on its own initiative,
14standards for the interconnection of eligible renewable
15generating equipment to the utility system. The
16interconnection standards shall address any procedural
17barriers, delays, and administrative costs associated with the
18interconnection of customer-generation while ensuring the
19safety and reliability of the units and the electric utility
20system. The Commission shall consider the Institute of
21Electrical and Electronics Engineers (IEEE) Standard 1547 and
22the issues of (i) reasonable and fair fees and costs, (ii)
23clear timelines for major milestones in the interconnection
24process, (iii) nondiscriminatory terms of agreement, and (iv)
25any best practices for interconnection of distributed
26generation.

 

 

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1    (i) All electricity providers shall begin to offer net
2metering no later than April 1, 2008.
3    (j) An electricity provider shall provide net metering to
4eligible customers until the load of its net metering customers
5equals 5% of the total peak demand supplied by that electricity
6provider during the previous year. Electricity providers are
7authorized to offer net metering beyond the 5% level if they so
8choose.
9    (k) Each electricity provider shall maintain records and
10report annually to the Commission the total number of net
11metering customers served by the provider, as well as the type,
12capacity, and energy sources of the generating systems used by
13the net metering customers. Nothing in this Section shall limit
14the ability of an electricity provider to request the redaction
15of information deemed by the Commission to be confidential
16business information. Each electricity provider shall notify
17the Commission when the total generating capacity of its net
18metering customers is equal to or in excess of the 5% cap
19specified in subsection (j) of this Section.
20    (l) Notwithstanding the definition of "eligible customer"
21in item (i) of subsection (b) of this Section, each electricity
22provider shall consider whether to allow meter aggregation for
23the purposes of net metering on:
24        (1) properties owned or leased by multiple customers
25    that contribute to the operation of an eligible renewable
26    electrical generating facility, such as a community-owned

 

 

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1    wind project, a community-owned biomass project, a
2    community-owned solar project, or a community methane
3    digester processing livestock waste from multiple sources;
4    and
5        (2) individual units, apartments, or properties owned
6    or leased by multiple customers and collectively served by
7    a common eligible renewable electrical generating
8    facility, such as an apartment building served by
9    photovoltaic panels on the roof.
10    For the purposes of this subsection (l), "meter
11aggregation" means the combination of reading and billing on a
12pro rata basis for the types of eligible customers described in
13this Section.
14    (m) Nothing in this Section shall affect the right of an
15electricity provider to continue to provide, or the right of a
16retail customer to continue to receive service pursuant to a
17contract for electric service between the electricity provider
18and the retail customer in accordance with the prices, terms,
19and conditions provided for in that contract. Either the
20electricity provider or the customer may require compliance
21with the prices, terms, and conditions of the contract.
22(Source: P.A. 97-616, eff. 10-26-11; 97-646, eff. 12-30-11.)
 
23    (220 ILCS 5/16-111.5B)
24    Sec. 16-111.5B. Provisions relating to energy efficiency
25procurement.

 

 

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1    (a) Beginning in 2012, procurement plans prepared pursuant
2to Section 16-111.5 of this Act shall be subject to the
3following additional requirements:
4        (1) The analysis included pursuant to paragraph (2) of
5    subsection (b) of Section 16-111.5 shall also include the
6    impact of energy efficiency building codes or appliance
7    standards, both current and projected.
8        (2) The procurement plan components described in
9    subsection (b) of Section 16-111.5 shall also include an
10    assessment of opportunities to expand the programs
11    promoting energy efficiency measures that have been
12    offered under plans approved pursuant to Section 8-103 of
13    this Act or to implement additional cost-effective energy
14    efficiency programs or measures.
15        (3) In addition to the information provided pursuant to
16    paragraph (1) of subsection (d) of Section 16-111.5 of this
17    Act, each Illinois utility procuring power pursuant to that
18    Section shall annually provide to the Illinois Power Agency
19    by July 15 of each year, or such other date as may be
20    required by the Commission or Agency, an assessment of
21    cost-effective energy efficiency programs or measures that
22    could be included in the procurement plan. The assessment
23    shall include the following:
24            (A) A comprehensive energy efficiency potential
25        study for the utility's service territory that was
26        completed within the past 3 years.

 

 

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1            (B) Beginning in 2014, the most recent analysis
2        submitted pursuant to Section 8-103A of this Act and
3        approved by the Commission under subsection (f) of
4        Section 8-103 of this Act.
5            (C) Identification of new or expanded
6        cost-effective energy efficiency programs or measures
7        that are incremental to those included in energy
8        efficiency and demand-response plans approved by the
9        Commission pursuant to Section 8-103 of this Act and
10        that would be offered to all retail customers whose
11        electric service has not been declared competitive
12        under Section 16-113 of this Act and who are eligible
13        to purchase power and energy from the utility under
14        fixed-price bundled service tariffs, regardless of
15        whether such customers actually do purchase such power
16        and energy from the utility eligible retail customers.
17            (D) Analysis showing that the new or expanded
18        cost-effective energy efficiency programs or measures
19        would lead to a reduction in the overall cost of
20        electric service.
21            (E) Analysis of how the cost of procuring
22        additional cost-effective energy efficiency measures
23        compares over the life of the measures to the
24        prevailing cost of comparable supply.
25            (F) An energy savings goal, expressed in
26        megawatt-hours, for the year in which the measures will

 

 

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1        be implemented.
2            (G) For each expanded or new program, the estimated
3        amount that the program may reduce the agency's need to
4        procure supply.
5        In preparing such assessments, a utility shall conduct
6    an annual solicitation process for purposes of requesting
7    proposals from third-party vendors, the results of which
8    shall be provided to the Agency as part of the assessment,
9    including documentation of all bids received. The utility
10    shall develop requests for proposals consistent with the
11    manner in which it develops requests for proposals under
12    plans approved pursuant to Section 8-103 of this Act, which
13    considers input from the Agency and interested
14    stakeholders.
15        (4) The Illinois Power Agency shall include in the
16    procurement plan prepared pursuant to paragraph (2) of
17    subsection (d) of Section 16-111.5 of this Act energy
18    efficiency programs and measures it determines are
19    cost-effective and the associated annual energy savings
20    goal included in the annual solicitation process and
21    assessment submitted pursuant to paragraph (3) of this
22    subsection (a).
23        (5) Pursuant to paragraph (4) of subsection (d) of
24    Section 16-111.5 of this Act, the Commission shall also
25    approve the energy efficiency programs and measures
26    included in the procurement plan, including the annual

 

 

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1    energy savings goal, if the Commission determines they
2    fully capture the potential for all achievable
3    cost-effective savings, to the extent practicable, and
4    otherwise satisfy the requirements of Section 8-103 of this
5    Act.
6        In the event the Commission approves the procurement of
7    additional energy efficiency, it shall reduce the amount of
8    power to be procured under the procurement plan to reflect
9    the additional energy efficiency and shall direct the
10    utility to undertake the procurement of such energy
11    efficiency, which shall not be subject to the requirements
12    of subsection (e) of Section 16-111.5 of this Act. The
13    utility shall consider input from the Agency and interested
14    stakeholders on the procurement and administration
15    process.
16        (6) An electric utility shall recover its costs
17    incurred under this Section related to the implementation
18    of energy efficiency programs and measures approved by the
19    Commission in its order approving the procurement plan
20    under Section 16-111.5 of this Act, including, but not
21    limited to, all costs associated with complying with this
22    Section and all start-up and administrative costs and the
23    costs for any evaluation, measurement, and verification of
24    the measures, from all retail customers whose electric
25    service has not been declared competitive under Section
26    16-113 of this Act and who are eligible to purchase power

 

 

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1    and energy from the utility under fixed-price bundled
2    service tariffs, regardless of whether such customers
3    actually do purchase such power and energy from the utility
4    eligible retail customers through the automatic adjustment
5    clause tariff established pursuant to Section 8-103 of this
6    Act, provided, however, that the limitations described in
7    subsection (d) of that Section shall not apply to the costs
8    incurred pursuant to this Section or Section 16-111.7 of
9    this Act.
10    (b) For purposes of this Section, the term "energy
11efficiency" shall have the meaning set forth in Section 1-10 of
12the Illinois Power Agency Act, and the term "cost-effective"
13shall have the meaning set forth in subsection (a) of Section
148-103 of this Act. In addition, the estimated costs to acquire
15an additional energy efficiency measure, when divided by the
16number of kilowatt-hours expected to be saved over the life of
17the measure, shall be less than or equal to the electricity
18costs that would be avoided as a result of the energy
19efficiency measure.
20(Source: P.A. 97-616, eff. 10-26-11.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.