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90_HB0286
SEE INDEX
Amends the Public Utilities Act. Provides that beginning
January 1, 1998, a consumer may purchase electricity from any
electric power supplier. Provides that the production of
electricity is not considered to be a business of a public
utility. Allows a host utility to impose a lost margin
charge to alleviate critical financial distress. Provides
that the host utility has an ongoing duty to provide bundled
service to residential and small commercial customers and
that the rates for those customers shall be capped until
January 1, 2003. Provides that the Commission shall consider
the establishment of a universal service fund to ensure that
low-income customers have access to affordable energy.
Requires the Commission to report its findings and
recommendations to the General Assembly by January 1, 1999.
Creates the Electric Revenue Use Tax Act. Imposes a tax on
the privilege of using electricity. The tax is to be the
lower of .32 cents per kilowatt hour or 5% of the purchase
price. Provides for administration by the Department of
Revenue. Amends the Illinois Municipal Code to authorize
municipalities to impose a tax upon the privilege of using
electricity at a rate not to exceed 5% of the purchase price.
Effective January 1, 1998 except that certain provisions take
effect upon becoming law.
LRB9001635JSgcA
LRB9001635JSgcA
1 AN ACT concerning the production of electricity.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Electric Revenue Use Tax Act.
6 Section 5. Definitions. In this Act:
7 "Department" means the Department of Revenue.
8 "Director" means the Director of Revenue.
9 "Electric power" means electric power and energy.
10 "Electric service" means the production, transmission, or
11 delivery of electric power, and any unbundled electric
12 service or ancillary service; provided, however, that a
13 service regulated by the Federal Energy Regulatory Commission
14 shall not be deemed an electric service within the meaning of
15 this Act.
16 "KWH" means a kilowatt hour of electric energy.
17 "Maintaining a place of business in this State", or any
18 like term, means having or maintaining within this State,
19 directly or by a subsidiary, an office, distribution house,
20 sales house, warehouse or other place of business, or any
21 agent or other representative operating within this State
22 under the authority of any person or that person's subsidiary
23 engaged in the business of distributing, supplying,
24 furnishing, or selling electric power or electric services to
25 persons within this State, irrespective of whether the place
26 of business or agent or other representative is located here
27 permanently or temporarily, or whether the person or the
28 person's subsidiary engaged in the business of distributing,
29 supplying, furnishing, or selling electric power or electric
30 services is licensed to do business in this State.
31 "Person" means any natural individual, firm, trust,
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1 estate, partnership, association, joint stock company, joint
2 adventure, corporation, or a receiver, trustee, guardian, or
3 other representative appointed by order of any court, or any
4 city, town, county, or other political subdivision of this
5 State.
6 "Purchase price" means the consideration paid for
7 electric power distributed, supplied, furnished, or sold for
8 use or consumption and not for resale, and for all electric
9 services rendered in connection therewith, and includes cash,
10 services, and property of every kind and nature, and shall be
11 determined without any deduction on account of the cost of
12 service, product, or commodity supplied, the cost of
13 materials used, labor or service costs, or any other expense
14 whatsoever. However, "purchase price" does not include any of
15 the following:
16 (1) Any minimum or other charge for electric
17 services where the purchaser has taken no KWH of electric
18 energy.
19 (2) Any charge for a dishonored check.
20 (3) Any finance or credit charge, penalty or charge
21 for delayed payment, or discount for prompt payment.
22 (4) Any charge for reconnection of service or for
23 replacement or relocation of facilities.
24 (5) Any advance or contribution in aid of
25 construction.
26 (6) Any charge for repair, inspection, or servicing
27 of equipment located on customer premises.
28 (7) Any charge for the leasing or rental of
29 equipment, the leasing or rental of which is not
30 necessary to distributing, furnishing, supplying,
31 selling, or transporting electric power.
32 (8) Any sale to a purchaser if the person engaged
33 in the business of distributing, supplying, furnishing,
34 or selling electric power or electric services is
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1 prohibited by federal or State constitution, treaty,
2 convention, statute, or court decision from recovering
3 the related tax liability from the purchaser.
4 (9) Any charges added to purchasers' bills pursuant
5 to the provisions of Section 9-221 or Section 9-222 of
6 the Public Utilities Act or any charges added to
7 purchasers' bills by persons engaged in the business of
8 distributing, supplying, furnishing, or selling electric
9 power or electric services who are not subject to rate
10 regulation by the Illinois Commerce Commission for the
11 purpose of recovering any of the tax liabilities or other
12 amounts specified in those provisions of the Public
13 Utilities Act.
14 (10) Charges that are added to purchasers' bills on
15 account of the duty of the person engaged in the business
16 of distributing, supplying, furnishing, or selling
17 electric power or electric services to collect, from the
18 purchaser, the tax imposed by this Act.
19 (11) Consideration paid by business enterprises
20 certified under Section 9-222.1 of the Public Utilities
21 Act to the extent of the exemption and during the period
22 of time specified by the Department of Commerce and
23 Community Affairs.
24 In case credit is extended, the amount thereof shall be
25 included only as and when payments are received.
26 "Purchaser" means any person who acquires the ownership
27 of electric power or electric services for use or
28 consumption, and not for resale, for a valuable
29 consideration.
30 "Use" means the exercise by any person of any right or
31 power over electric power or electric services, except that
32 it does not include the sale of electric power or electric
33 services in the regular course of business.
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1 Section 10. Imposition of tax. A tax is imposed upon
2 the privilege of using in this State electric power or
3 electric services purchased from any person, other than
4 municipal corporations owning and operating a local
5 transportation system for public service in this State,
6 engaged in the business of distributing, supplying,
7 furnishing, or selling electric power or electric services at
8 the rate of .32 cents per KWH distributed or 5% of the
9 purchase price for the billing period, whichever is the lower
10 rate; provided, however, that no such tax is imposed upon any
11 transaction that is subject to the tax imposed by the Public
12 Utilities Revenue Act upon KWH or gross receipts for the same
13 transaction.
14 Section 15. Collection of electric revenue use tax. A
15 person maintaining a place of business in this State who is
16 engaged in the business of distributing, supplying,
17 furnishing, or selling electric power or electric services to
18 persons for use or consumption, and not for resale, shall
19 collect, from the purchaser, the tax that is imposed by this
20 Act. The tax imposed by this Act shall, when collected, be
21 stated as a distinct and separate item apart from the selling
22 price of electric power or electric services.
23 Section 20. Incorporation of applicable Sections of
24 Use Tax Act. The Department shall have full power to
25 administer and enforce this Act; to collect all taxes,
26 penalties, and interest due hereunder; to dispose of taxes,
27 penalties, and interest so collected in the manner
28 hereinafter provided, and to determine all rights to credit
29 memoranda or refunds arising on account of the erroneous
30 payment of tax, penalty, or interest hereunder. In the
31 administration of, and compliance with, this Section, the
32 Department and persons who are subject to this Section shall
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1 have the same rights, remedies, privileges, immunities,
2 powers, and duties, and be subject to the same conditions,
3 restrictions, limitations, penalties, and definitions of
4 terms, and employ the same modes of procedure, as are
5 prescribed in Sections 2, 4, 5, 6, 7, 9 (except provisions
6 relating to transaction returns and except that the due date
7 for returns shall be the 15th day of each month for the
8 preceding calendar month), 10, 11, 12, 12a, 13, 14, 15, 18,
9 19, 20, 21, and 22 of the Use Tax Act and are not
10 inconsistent with this Section, as fully as if those
11 provisions were set forth herein.
12 Section 25. Tax collected as debt owed to State.
13 The tax herein required to be collected by any person engaged
14 in the business of distributing, supplying, furnishing, or
15 selling electric power or electric services under this Act,
16 and any such tax collected by that person, shall constitute a
17 debt owed by that person to this State.
18 Section 30. Return and payment of tax by person
19 engaged in the business of distributing, supplying,
20 furnishing, or selling electric services. A person engaged
21 in the business of distributing, supplying, furnishing, or
22 selling electric power or electric services who is required
23 or authorized to collect the tax imposed by this Act shall
24 make a return to the Department on or before the 15th day of
25 each month for the preceding calendar month stating all of
26 the following:
27 (1) His or her name.
28 (2) The address of his or her principal place of
29 business and the address of the principal place of business
30 (if that is a different address) from which he or she engages
31 in the business of distributing, supplying, furnishing, or
32 selling electric power or electric services in this State.
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1 (3) The total number of KWH for which payment was
2 received by him or her from purchasers during the preceding
3 calendar month and upon the basis of which the tax is
4 imposed.
5 (4) Gross receipts, as defined in the Public
6 Utilities Revenue Act, which were received by him or her from
7 purchasers during the preceding calendar month from such
8 business, including budget plan amounts applied during such
9 month in payment of charges includible in gross receipts, and
10 upon the basis of which the tax is imposed.
11 (5) Amount of tax (computed upon Items 3 and 4).
12 (6) Such other reasonable information as the
13 Department may require.
14 In making a return, the person engaged in the
15 business of distributing, supplying, furnishing, or selling
16 electric power or electric services may use any reasonable
17 method to derive reportable "KWH" and "gross receipts" from
18 his or her billing and payment records. The provisions of
19 Section 9 of the Use Tax Act, as incorporated by Section 20
20 of this Act, shall otherwise govern the filing of returns and
21 payment of taxes under this Act by persons engaged in the
22 business of distributing, supplying, furnishing, or selling
23 electric power or electric services.
24 Section 35. Direct return and payment by purchaser. The
25 tax imposed by this Act that is not collected under Sections
26 15 and 30 of this Act by a person engaged in the business of
27 distributing, supplying, furnishing, or selling electric
28 power or electric services shall be paid to the Department
29 directly by the purchaser who is subject to the tax imposed
30 by this Act. The purchaser shall, on or before the 15th day
31 of each month, make a return to the Department for the
32 preceding calendar month, stating the following:
33 (1) His or her name and principal address.
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1 (2) The total number of KWH used by him or her
2 during the preceding calendar month and upon the basis of
3 which the tax is imposed.
4 (3) The purchase price of electric power or
5 electric service used by him or her during the preceding
6 calendar month and upon the basis of which the tax is
7 imposed.
8 (4) Amount of tax (computed upon Items 3 and 4).
9 (5) Such other reasonable information as the
10 Department may require.
11 In making a return, the purchaser may use any reasonable
12 method to derive reportable "KWH" and "purchase price" from
13 his or her billing and payment record.
14 The purchaser making the return provided for in this
15 Section shall, at the time of making the return, pay to the
16 Department the amount of tax imposed by this Act. All moneys
17 received by the Department under this Act shall be paid into
18 the General Revenue Fund in the State Treasury.
19 The provisions of Sections 9 and 10 of the Use Tax Act,
20 as incorporated by Section 20 of this Act, shall otherwise
21 govern the filing of returns and payment of tax under this
22 Act by purchasers.
23 Section 91. The Illinois Municipal Code is amended by
24 changing Section 8-11-2 as follows:
25 (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
26 Sec. 8-11-2. The corporate authorities of any
27 municipality may tax any or all of the following occupations
28 or privileges:
29 1. Persons engaged in the business of transmitting
30 messages by means of electricity or radio magnetic waves,
31 or fiber optics, at a rate not to exceed 5% of the gross
32 receipts from that business originating within the
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1 corporate limits of the municipality.
2 2. Persons engaged in the business of distributing,
3 supplying, furnishing, or selling gas for use or
4 consumption within the corporate limits of a municipality
5 of 500,000 or fewer population, and not for resale, at a
6 rate not to exceed 5% of the gross receipts therefrom.
7 2a. Persons engaged in the business of
8 distributing, supplying, furnishing, or selling gas for
9 use or consumption within the corporate limits of a
10 municipality of over 500,000 population, and not for
11 resale, at a rate not to exceed 8% of the gross receipts
12 therefrom. If imposed, this tax shall be paid in monthly
13 payments.
14 3. Persons engaged in the business of distributing,
15 supplying, furnishing, or selling electricity for use or
16 consumption within the corporate limits of the
17 municipality, and not for resale, at a rate not to exceed
18 5% of the gross receipts therefrom.
19 4. Persons engaged in the business of distributing,
20 supplying, furnishing, or selling water for use or
21 consumption within the corporate limits of the
22 municipality, and not for resale, at a rate not to exceed
23 5% of the gross receipts therefrom.
24 5. The privilege of using within the corporate
25 limits of the municipality electric power or electric
26 services purchased from any person engaged in the
27 business of distributing, supplying, furnishing, or
28 selling electricity at a rate not to exceed 5% of the
29 purchase price of the electricity.
30 None of the taxes authorized by this Section may be
31 imposed with respect to any transaction in interstate
32 commerce or otherwise to the extent to which the business may
33 not, under the constitution and statutes of the United
34 States, be made the subject of taxation by this State or any
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1 political sub-division thereof; nor shall any persons engaged
2 in the business of distributing, supplying, furnishing, or
3 selling gas, water, or electricity, or engaged in the
4 business of transmitting messages be subject to taxation
5 under the provisions of this Section for those transactions
6 that are or may become subject to taxation under the
7 provisions of the "Municipal Retailers' Occupation Tax Act"
8 authorized by Section 8-11-1; nor shall any tax authorized by
9 this Section be imposed upon any person engaged in a business
10 unless the tax is imposed in like manner and at the same rate
11 upon all persons engaged in businesses of the same class in
12 the municipality, whether privately or municipally owned or
13 operated.
14 Any of the taxes enumerated in this Section may be in
15 addition to the payment of money, or value of products or
16 services furnished to the municipality by the taxpayer as
17 compensation for the use of its streets, alleys, or other
18 public places, or installation and maintenance therein,
19 thereon or thereunder of poles, wires, pipes or other
20 equipment used in the operation of the taxpayer's business.
21 (a) If the corporate authorities of any home rule
22 municipality have adopted an ordinance that imposed a tax on
23 public utility customers, between July 1, 1971, and October
24 1, 1981, on the good faith belief that they were exercising
25 authority pursuant to Section 6 of Article VII of the 1970
26 Illinois Constitution, that action of the corporate
27 authorities shall be declared legal and valid,
28 notwithstanding a later decision of a judicial tribunal
29 declaring the ordinance invalid. No municipality shall be
30 required to rebate, refund, or issue credits for any taxes
31 described in this paragraph, and those taxes shall be deemed
32 to have been levied and collected in accordance with the
33 Constitution and laws of this State.
34 (b) In any case in which (i) prior to October 19, 1979,
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1 the corporate authorities of any municipality have adopted an
2 ordinance imposing a tax authorized by this Section (or by
3 the predecessor provision of the "Revised Cities and Villages
4 Act") and have explicitly or in practice interpreted gross
5 receipts to include either charges added to customers' bills
6 pursuant to the provision of paragraph (a) of Section 36 of
7 the Public Utilities Act or charges added to customers' bills
8 by taxpayers who are not subject to rate regulation by the
9 Illinois Commerce Commission for the purpose of recovering
10 any of the tax liabilities or other amounts specified in such
11 paragraph (a) of Section 36 of that Act, and (ii) on or after
12 October 19, 1979, a judicial tribunal has construed gross
13 receipts to exclude all or part of those charges, then
14 neither those municipality nor any taxpayer who paid the tax
15 shall be required to rebate, refund, or issue credits for any
16 tax imposed or charge collected from customers pursuant to
17 the municipality's interpretation prior to October 19, 1979.
18 This paragraph reflects a legislative finding that it would
19 be contrary to the public interest to require a municipality
20 or its taxpayers to refund taxes or charges attributable to
21 the municipality's more inclusive interpretation of gross
22 receipts prior to October 19, 1979, and is not intended to
23 prescribe or limit judicial construction of this Section. The
24 legislative finding set forth in this subsection does not
25 apply to taxes imposed after the effective date of this
26 amendatory Act of 1995.
27 (c) (Blank).
28 (d) For the purpose of the taxes enumerated in this
29 Section:
30 "Gross receipts" means the consideration received for the
31 transmission of messages, the consideration received for
32 distributing, supplying, furnishing or selling gas for use or
33 consumption and not for resale, and the consideration
34 received for distributing, supplying, furnishing or selling
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1 electricity for use or consumption and not for resale, and
2 the consideration received for distributing, supplying,
3 furnishing or selling water for use or consumption and not
4 for resale, and for all services rendered in connection
5 therewith valued in money, whether received in money or
6 otherwise, including cash, credit, services and property of
7 every kind and material and for all services rendered
8 therewith, and shall be determined without any deduction on
9 account of the cost of transmitting such messages, without
10 any deduction on account of the cost of the service, product
11 or commodity supplied, the cost of materials used, labor or
12 service cost, or any other expenses whatsoever. "Gross
13 receipts" shall not include that portion of the consideration
14 received for distributing, supplying, furnishing, or selling
15 gas, electricity, or water to, or for the transmission of
16 messages for, business enterprises described in paragraph (e)
17 of this Section to the extent and during the period in which
18 the exemption authorized by paragraph (e) is in effect or for
19 school districts or units of local government described in
20 paragraph (f) during the period in which the exemption
21 authorized in paragraph (f) is in effect.
22 For utility bills issued on or after May 1, 1996, but
23 before May 1, 1997, and for receipts from those utility
24 bills, "gross receipts" does not include one-third of (i)
25 amounts added to customers' bills under Section 9-222 of the
26 Public Utilities Act, or (ii) amounts added to customers'
27 bills by taxpayers who are not subject to rate regulation by
28 the Illinois Commerce Commission for the purpose of
29 recovering any of the tax liabilities described in Section
30 9-222 of the Public Utilities Act. For utility bills issued
31 on or after May 1, 1997, but before May 1, 1998, and for
32 receipts from those utility bills, "gross receipts" does not
33 include two-thirds of (i) amounts added to customers' bills
34 under Section 9-222 of the Public Utilities Act, or (ii)
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1 amount added to customers' bills by taxpayers who are not
2 subject to rate regulation by the Illinois Commerce
3 Commission for the purpose of recovering any of the tax
4 liabilities described in Section 9-222 of the Public
5 Utilities Act. For utility bills issued on or after May 1,
6 1998, and for receipts from those utility bills, "gross
7 receipts" does not include (i) amounts added to customers'
8 bills under Section 9-222 of the Public Utilities Act, or
9 (ii) amounts added to customers' bills by taxpayers who are
10 not subject to rate regulation by the Illinois Commerce
11 Commission for the purpose of recovering any of the tax
12 liabilities described in Section 9-222 of the Public
13 Utilities Act.
14 For purposes of this Section "gross receipts" shall not
15 include (i) amounts added to customers' bills under Section
16 9-221 of the Public Utilities Act, or (ii) charges added to
17 customers' bills to recover the surcharge imposed under the
18 Emergency Telephone System Act. This paragraph is not
19 intended to nor does it make any change in the meaning of
20 "gross receipts" for the purposes of this Section, but is
21 intended to remove possible ambiguities, thereby confirming
22 the existing meaning of "gross receipts" prior to the
23 effective date of this amendatory Act of 1995.
24 The words "transmitting messages", in addition to the
25 usual and popular meaning of person to person communication,
26 shall include the furnishing, for a consideration, of
27 services or facilities (whether owned or leased), or both, to
28 persons in connection with the transmission of messages where
29 those persons do not, in turn, receive any consideration in
30 connection therewith, but shall not include such furnishing
31 of services or facilities to persons for the transmission of
32 messages to the extent that any such services or facilities
33 for the transmission of messages are furnished for a
34 consideration, by those persons to other persons, for the
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1 transmission of messages.
2 "Person" as used in this Section means any natural
3 individual, firm, trust, estate, partnership, association,
4 joint stock company, joint adventure, corporation, municipal
5 corporation or political subdivision of this State, or a
6 receiver, trustee, guardian or other representative appointed
7 by order of any court.
8 "Public utility" shall have the meaning ascribed to it in
9 Section 3-105 of the Public Utilities Act and shall include
10 telecommunications carriers as defined in Section 13-202 of
11 that Act.
12 In the case of persons engaged in the business of
13 transmitting messages through the use of mobile equipment,
14 such as cellular phones and paging systems, the gross
15 receipts from the business shall be deemed to originate
16 within the corporate limits of a municipality only if the
17 address to which the bills for the service are sent is within
18 those corporate limits. If, however, that address is not
19 located within a municipality that imposes a tax under this
20 Section, then (i) if the party responsible for the bill is
21 not an individual, the gross receipts from the business shall
22 be deemed to originate within the corporate limits of the
23 municipality where that party's principal place of business
24 in Illinois is located, and (ii) if the party responsible for
25 the bill is an individual, the gross receipts from the
26 business shall be deemed to originate within the corporate
27 limits of the municipality where that party's principal
28 residence in Illinois is located.
29 (e) Any municipality that imposes taxes upon public
30 utilities pursuant to this Section whose territory includes
31 any part of an enterprise zone or federally designated
32 Foreign Trade Zone or Sub-Zone may, by a majority vote of its
33 corporate authorities, exempt from those taxes for a period
34 not exceeding 20 years any specified percentage of gross
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1 receipts of public utilities received from business
2 enterprises that:
3 (1) either (i) make investments that cause the
4 creation of a minimum of 200 full-time equivalent jobs in
5 Illinois or (ii) make investments that cause the
6 retention of a minimum of 1,000 full-time jobs in
7 Illinois; and
8 (2) are either (i) located in an Enterprise Zone
9 established pursuant to the Illinois Enterprise Zone Act
10 or (ii) Department of Commerce and Community Affairs
11 designated High Impact Businesses located in a federally
12 designated Foreign Trade Zone or Sub-Zone; and
13 (3) are certified by the Department of Commerce and
14 Community Affairs as complying with the requirements
15 specified in clauses (1) and (2) of this paragraph (e).
16 Upon adoption of the ordinance authorizing the exemption,
17 the municipal clerk shall transmit a copy of that ordinance
18 to the Department of Commerce and Community Affairs. The
19 Department of Commerce and Community Affairs shall determine
20 whether the business enterprises located in the municipality
21 meet the criteria prescribed in this paragraph. If the
22 Department of Commerce and Community Affairs determines that
23 the business enterprises meet the criteria, it shall grant
24 certification. The Department of Commerce and Community
25 Affairs shall act upon certification requests within 30 days
26 after receipt of the ordinance.
27 Upon certification of the business enterprise by the
28 Department of Commerce and Community Affairs, the Department
29 of Commerce and Community Affairs shall notify the Department
30 of Revenue of the certification. The Department of Revenue
31 shall notify the public utilities of the exemption status of
32 the gross receipts received from the certified business
33 enterprises. Such exemption status shall be effective within
34 3 months after certification.
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1 (f) A municipality that imposes taxes upon public
2 utilities under this Section and whose territory includes
3 part of another unit of local government or a school district
4 may by ordinance exempt the other unit of local government or
5 school district from those taxes.
6 (g) The amendment of this Section by Public Act 84-127
7 shall take precedence over any other amendment of this
8 Section by any other amendatory Act passed by the 84th
9 General Assembly before the effective date of Public Act
10 84-127.
11 (h) In any case in which, before July 1, 1992, a person
12 engaged in the business of transmitting messages through the
13 use of mobile equipment, such as cellular phones and paging
14 systems, has determined the municipality within which the
15 gross receipts from the business originated by reference to
16 the location of its transmitting or switching equipment, then
17 (i) neither the municipality to which tax was paid on that
18 basis nor the taxpayer that paid tax on that basis shall be
19 required to rebate, refund, or issue credits for any such tax
20 or charge collected from customers to reimburse the taxpayer
21 for the tax and (ii) no municipality to which tax would have
22 been paid with respect to those gross receipts if the
23 provisions of this amendatory Act of 1991 had been in effect
24 before July 1, 1992, shall have any claim against the
25 taxpayer for any amount of the tax.
26 (Source: P.A. 88-132; 89-325, eff. 1-1-96.)
27 Section 95. The Public Utilities Act is amended by
28 changing Sections 3-105, 4-305, 7-108, 8-403.1, 8-404, 8-406,
29 9-212, 9-213, 9-214, and 9-220 and adding Article XVI as
30 follows:
31 (220 ILCS 5/3-105) (from Ch. 111 2/3, par. 3-105)
32 Sec. 3-105. "Public utility" means and includes, except
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1 where otherwise expressly provided in this Section, every
2 corporation, company, limited liability company, association,
3 joint stock company or association, firm, partnership or
4 individual, their lessees, trustees, or receivers appointed
5 by any court whatsoever that owns, controls, operates or
6 manages, within this State, directly or indirectly, for
7 public use, any plant, equipment or property used or to be
8 used for or in connection with, or owns or controls any
9 franchise, license, permit or right to engage in:
10 a. the production, storage, transmission, sale,
11 delivery or furnishing of heat, cold, power (other than,
12 electricity), water, or light, except when used solely
13 for communications purposes, or the transmission,
14 delivery, or furnishing of electricity;
15 b. the disposal of sewerage; or
16 c. the conveyance of oil or gas by pipe line.
17 "Public utility" does not include, however:
18 1. public utilities that are owned and operated by
19 any political subdivision, public institution of higher
20 education or municipal corporation of this State, or
21 public utilities that are owned by such political
22 subdivision, public institution of higher education, or
23 municipal corporation and operated by any of its lessees
24 or operating agents;
25 2. water companies which are purely mutual
26 concerns, having no rates or charges for services, but
27 paying the operating expenses by assessment upon the
28 members of such a company and no other person;
29 3. electric cooperatives as defined in Section
30 3-119;
31 4. residential natural gas cooperatives that are
32 not-for-profit corporations established for the purpose
33 of administering and operating, on a cooperative basis,
34 the furnishing of natural gas to residences for the
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1 benefit of their members who are residential consumers of
2 natural gas. For entities qualifying as residential
3 natural gas cooperatives and recognized by the Illinois
4 Commerce Commission as such, the State shall guarantee
5 legally binding contracts entered into by residential
6 natural gas cooperatives for the express purpose of
7 acquiring natural gas supplies for their members. The
8 Illinois Commerce Commission shall establish rules and
9 regulations providing for such guarantees. The total
10 liability of the State in providing all such guarantees
11 shall not at any time exceed $1,000,000, nor shall the
12 State provide such a guarantee to a residential natural
13 gas cooperative for more than 3 consecutive years;
14 5. sewage disposal companies which provide sewage
15 disposal services on a mutual basis without establishing
16 rates or charges for services, but paying the operating
17 expenses by assessment upon the members of the company
18 and no others;
19 6. (Blank);
20 7. cogeneration facilities, small power production
21 facilities, and other qualifying facilities, as defined
22 in the Public Utility Regulatory Policies Act and
23 regulations promulgated thereunder, except to the extent
24 State regulatory jurisdiction and action is required or
25 authorized by federal law, regulations, regulatory
26 decisions or the decisions of federal or state courts of
27 competent jurisdiction; and
28 8. the ownership or operation of a facility that
29 sells compressed natural gas at retail to the public for
30 use only as a motor vehicle fuel and the selling of
31 compressed natural gas at retail to the public for use
32 only as a motor vehicle fuel; and.
33 9. the generation or production of electricity.
34 For the purpose of the least-cost planning obligations of
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1 Section 8-401 and for all of Section 8-402, the Illinois
2 Commerce Commission may, for good cause shown in individual
3 cases, exclude from the meaning of "public utility" the
4 electric operations of any public utility, as otherwise
5 defined in this Act, which serves less than 20,000 electric
6 customers within the State of Illinois, or the gas operations
7 of any public utility, as otherwise defined in this Act,
8 which serves less than 20,000 gas customers within the State
9 of Illinois.
10 (Source: P.A. 88-480; 89-42, eff. 1-1-96.)
11 (220 ILCS 5/4-305) (from Ch. 111 2/3, par. 4-305)
12 Sec. 4-305. Emission allowances. Beginning with the
13 first quarter of 1993, the Commission shall collect from each
14 owner of public utility and each affiliated interest of a
15 public utility owning an electric generating station
16 information relating to the acquisition or sale of emission
17 allowances as defined in Title IV of the federal Clean Air
18 Act Amendments of 1990 (P.L. 101-549), as amended. The
19 information collected shall include the number of emission
20 allowances allocated to each generating station utility, by
21 statute or otherwise, and the number of emission allowances
22 acquired or sold by each generating station utility. The
23 Commission shall establish quarterly requirements for
24 reporting the information specified under this Section.
25 Beginning with the annual report due January 31, 1994, the
26 Commission shall include the information collected under this
27 Section in the annual report required under this Act.
28 (Source: P.A. 87-1133; 88-226.)
29 (220 ILCS 5/7-108)
30 Sec. 7-108. (a) Where a producer of electricity an
31 affiliate of an electric public utility has offered an
32 unregulated sale of electricity, and the distribution of that
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1 electricity such affiliate would use a portion of a the
2 utility's distribution or transmission facilities to
3 distribute or transmit the electricity that is to be so sold,
4 the utility shall make such portion of its facilities
5 available to any other person or entity that offers to make
6 such sale, at the same price and under the same terms and
7 conditions. as the utility makes such portion of its
8 facilities available to its affiliate. Nothing contained in
9 this Section 7-108(a) shall be construed as requiring or
10 authorizing the Commission to require an electric public
11 utility to make any portion of its facilities available to
12 its affiliate.
13 (b) Where an affiliate of a gas public utility has
14 offered an unregulated sale of gas, and such affiliate would
15 use a portion of the utility's distribution or transmission
16 facilities to distribute or transmit the gas that is to be so
17 sold, the utility shall make such portion of its facilities
18 available to any other person or entity that offers to make
19 such sale, at the same price and under the same terms and
20 conditions as the utility makes such portion of its
21 facilities available to its affiliate. Nothing contained in
22 this Section 7-108(b) shall be construed as requiring or
23 authorizing the Commission to require a gas public utility to
24 make any portion of its facilities available to its
25 affiliate.
26 (c) As used in this Section 7-108:
27 (1) The term "affiliate" shall mean (i) every
28 corporation and person owning or holding, directly or
29 indirectly, 10% or more of the voting capital stock of a
30 public utility; (ii) every corporation and person in any
31 chain of successive ownership of 10% or more of the
32 voting capital stock of such public utility; (iii) every
33 corporation, 10% or more of whose voting capital stock is
34 owned by any person or corporation owning 10% or more of
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1 the voting capital stock of such public utility, or by
2 any person or corporation in any such chain of successive
3 ownership of 10% or more of the voting capital stock of
4 such public utility; (iv) every entity, 10% or more of
5 whose voting securities is owned, directly or indirectly,
6 by such public utility or by an entity described in
7 clauses (i), (ii), or (iii) of this paragraph; and (v)
8 every entity in which such public utility or an entity
9 described in clauses (i), (ii), (iii), or (iv) of this
10 paragraph owns, controls, or holds, directly or
11 indirectly, a financial interest entitling it or a
12 contract right potentially entitling it to 10% or more of
13 revenues or profits and losses of any such entity.
14 (2) the term "voting security" shall mean a "voting
15 security" as defined in the Public Utility Holding
16 Company Act of 1935, as amended, and shall also mean any
17 security giving the owner or holder thereof the privilege
18 to convert such security in whole or in part into a
19 voting security, or any security directly or indirectly
20 secured in whole or in part by the pledge of a voting
21 security.
22 (3) the term "security" shall mean a "security" as
23 defined in the Public Utility Holding Company Act of
24 1935, as amended.
25 (4) the term "unregulated sale" shall mean a sale
26 of electricity or gas to an end-user for use in
27 facilities in this State, the price of which sale is not
28 regulated by the Commission.
29 (Source: P.A. 88-83.)
30 (220 ILCS 5/8-403.1) (from Ch. 111 2/3, par. 8-403.1)
31 Sec. 8-403.1. (a) It is hereby declared to be the policy
32 of this State to encourage the development of alternate
33 energy production facilities in order to conserve our energy
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1 resources and to provide for their most efficient use.
2 (b) For the purpose of this Section and Section 9-215.1,
3 "qualified solid waste energy facility" means a facility
4 determined by the Illinois Commerce Commission to qualify as
5 such under the Local Solid Waste Disposal Act, to use methane
6 gas generated from landfills as its primary fuel, and to
7 possess characteristics that would enable it to qualify as a
8 cogeneration or small power production facility under federal
9 law.
10 (c) In furtherance of the policy declared in this
11 Section, the Illinois Commerce Commission shall require
12 electric utilities to enter into long-term contracts to
13 purchase electricity from qualified solid waste energy
14 facilities located in the electric utility's service area,
15 for a period beginning on the date that the facility begins
16 generating electricity and having a duration of not less than
17 10 years in the case of facilities fueled by
18 landfill-generated methane, or 20 years in the case of
19 facilities fueled by methane generated from a landfill owned
20 by a forest preserve district. The purchase rate contained
21 in such contracts shall be equal to the average amount per
22 kilowatt-hour paid from time to time by the unit or units of
23 local government in which the electricity generating
24 facilities are located, excluding amounts paid for street
25 lighting and pumping service.
26 (d) Whenever a public utility is required to purchase
27 electricity pursuant to subsection (c) above, it shall be
28 entitled to credits in respect of its obligations to pay
29 taxes under The Public Utilities Revenue Act equal to the
30 amounts, if any, by which payments for such electricity
31 exceed (i) the then current rate at which the utility must
32 purchase the output of qualified facilities pursuant to the
33 federal Public Utility Regulatory Policies Act of 1978, less
34 (ii) any costs, expenses, losses, damages or other amounts
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1 incurred by the utility, or for which it becomes liable,
2 arising out of its failure to obtain such electricity from
3 such other sources. The amount of any such credit shall, in
4 the first instance, be determined by the utility, which shall
5 make a monthly report of such credits to the Illinois
6 Commerce Commission and, on its monthly tax return, to the
7 Illinois Department of Revenue. Under no circumstances shall
8 a utility be required to purchase electricity from a
9 qualified solid waste energy facility at the rate prescribed
10 in subsection (c) of this Section if such purchase would
11 result in estimated tax credits that exceed, on a monthly
12 basis, the utility's estimated obligation to pay taxes under
13 the Public Utilities Revenue Act. The owner or operator shall
14 negotiate facility operating conditions with the purchasing
15 utility in accordance with that utility's posted standard
16 terms and conditions for small power producers. If the
17 Department of Revenue disputes the amount of any such credit,
18 such dispute shall be decided by the Illinois Commerce
19 Commission. Whenever a qualified solid waste energy facility
20 has paid or otherwise satisfied in full the capital costs or
21 indebtedness incurred in developing and implementing the
22 qualified facility, the qualified facility shall reimburse
23 the Public Utilities Fund in the State treasury for the
24 actual reduction in payments to that Fund caused by this
25 subsection (d) in a manner to be determined by the Illinois
26 Commerce Commission and based on the manner in which revenues
27 for that Fund were reduced.
28 (e) The Illinois Commerce Commission shall not require
29 an electric utility to purchase electricity from any
30 qualified solid waste energy facility which is owned or
31 operated by an entity that is primarily engaged in the
32 business of producing or selling electricity, gas, or useful
33 thermal energy from a source other than one or more qualified
34 solid waste energy facilities.
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1 (f) This Section does not require an electric utility to
2 construct additional facilities unless those facilities are
3 paid for by the owner or operator of the affected qualified
4 solid waste energy facility.
5 (g) The Illinois Commerce Commission shall require that:
6 (1) electric utilities use the electricity purchased from a
7 qualified solid waste energy facility to displace electricity
8 generated from nuclear power or coal mined and purchased
9 outside the boundaries of the State of Illinois before
10 displacing electricity generated from coal mined and
11 purchased within the State of Illinois, to the extent
12 possible, and (2) electric utilities report annually to the
13 Commission on the extent of such displacements.
14 (h) Nothing in this Section is intended to cause an
15 electric utility that is required to purchase power hereunder
16 to incur any economic loss as a result of its purchase. All
17 amounts paid for power which a utility is required to
18 purchase pursuant to subparagraph (c) shall be deemed to be
19 costs prudently incurred for purposes of computing charges
20 under rates authorized by Section 9-220 of this Act. Tax
21 credits provided for herein shall be reflected in charges
22 made pursuant to rates so authorized to the extent such
23 credits are based upon a cost which is also reflected in such
24 charges.
25 (Source: P.A. 89-448, eff. 3-14-96.)
26 (220 ILCS 5/8-404) (from Ch. 111 2/3, par. 8-404)
27 Sec. 8-404. Irrespective of any energy plan submitted or
28 adopted pursuant to the provisions of Section 8-402, The
29 Commission is also authorized to require any public utility
30 to implement energy conservation, demand control, or
31 alternative supply programs, including, but not limited to,
32 programs promoting energy efficient light bulbs and motors,
33 whenever the Commission determines after hearing, that such
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1 programs are likely to be cost-effective. The Commission is
2 also herein authorized to require the implementation of such
3 programs on an experimental basis for the purpose of
4 determining their cost-effectiveness.
5 (Source: P.A. 87-812.)
6 (220 ILCS 5/8-406) (from Ch. 111 2/3, par. 8-406)
7 Sec. 8-406. (a) No public utility not owning any city or
8 village franchise nor engaged in performing any public
9 service or in furnishing any product or commodity within this
10 State as of July 1, 1921 and not possessing a certificate of
11 public convenience and necessity from the Illinois Commerce
12 Commission, the State Public Utilities Commission or the
13 Public Utilities Commission, at the time this amendatory Act
14 of 1985 goes into effect, shall transact any business in this
15 State until it shall have obtained a certificate from the
16 Commission that public convenience and necessity require the
17 transaction of such business.
18 (b) No public utility shall begin the construction of
19 any new plant, equipment, property or facility which is not
20 in substitution of any existing plant, equipment, property or
21 facility or any extension or alteration thereof or in
22 addition thereto, and which in the case of gas and electric
23 utilities may affect the energy plan of the utility unless
24 and until it shall have obtained from the Commission a
25 certificate that public convenience and necessity require
26 such construction. Whenever after a hearing the Commission
27 determines that any new construction or the transaction of
28 any business by a public utility will promote the public
29 convenience and is necessary thereto, it shall have the power
30 to issue certificates of public convenience and necessity.
31 The Commission shall determine that proposed construction
32 will promote the public convenience and necessity only if the
33 utility demonstrates: (1) that the proposed construction is
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1 necessary to provide adequate, reliable and efficient service
2 to its customers and is the least-cost means of satisfying
3 the service needs of its customers; (2) with respect to gas
4 and electric utilities, that the proposed construction is
5 consistent with the most recent energy plan adopted by the
6 Commission for the utility and the State, as updated; (3)
7 that the utility is capable of efficiently managing and
8 supervising the construction process and has taken sufficient
9 action to ensure adequate and efficient construction and
10 supervision thereof; and (4) that the utility is capable of
11 financing the proposed construction without significant
12 adverse financial consequences for the utility or its
13 customers. If the Commission finds that the public
14 convenience and necessity requires a new electric generating
15 facility to be added by the utility, the Commission shall
16 evaluate the proposed construction in comparison with the
17 merits of a facility designed to use Illinois coal in an
18 environmentally acceptable way, and shall consider the
19 economic impact on employment directly or indirectly related
20 to the production of coal in Illinois over the entire period
21 of time affected by the proposed construction or its
22 alternatives.
23 (c) After the effective date of this amendatory Act of
24 1987, no construction shall commence on any new nuclear power
25 plant to be located within this State, and no certificate of
26 public convenience and necessity or other authorization shall
27 be issued therefor by the Commission, until the Director of
28 the Illinois Environmental Protection Agency finds that the
29 United States Government, through its authorized agency, has
30 identified and approved a demonstrable technology or means
31 for the disposal of high level nuclear waste, or until such
32 construction has been specifically approved by a statute
33 enacted by the General Assembly.
34 As used in this Section, "high level nuclear waste" means
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1 those aqueous wastes resulting from the operation of the
2 first cycle of the solvent extraction system or equivalent
3 and the concentrated wastes of the subsequent extraction
4 cycles or equivalent in a facility for reprocessing
5 irradiated reactor fuel and shall include spent fuel
6 assemblies prior to fuel reprocessing.
7 (d) In making its determination, the Commission shall
8 attach primary weight to the cost or cost savings to the
9 customers of the utility. The Commission may consider any or
10 all factors which will or may affect such cost or cost
11 savings.
12 (e) The Commission may issue a temporary certificate
13 which shall remain in force not to exceed one year in cases
14 of emergency, to assure maintenance of adequate service or to
15 serve particular customers, without notice or hearing,
16 pending the determination of an application for a
17 certificate, and may by regulation exempt from the
18 requirements of this Section temporary acts or operations for
19 which the issuance of a certificate will not be required in
20 the public interest.
21 A public utility shall not be required to obtain but may
22 apply for and obtain a certificate of public convenience and
23 necessity pursuant to this Section with respect to any matter
24 as to which it has received the authorization or order of the
25 Commission under the Electric Supplier Act, and any such
26 authorization or order granted a public utility by the
27 Commission under that Act shall as between public utilities
28 be deemed to be, and shall have except as provided in that
29 Act the same force and effect as, a certificate of public
30 convenience and necessity issued pursuant to this Section.
31 No electric cooperative shall be made or shall become a
32 party to or shall be entitled to be heard or to otherwise
33 appear or participate in any proceeding initiated under this
34 Section for authorization of power plant construction and as
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1 to matters as to which a remedy is available under The
2 Electric Supplier Act.
3 (f) Such certificates may be altered or modified by the
4 Commission, upon its own motion or upon application by the
5 person or corporation affected. Unless exercised within a
6 period of 2 years from the grant thereof authority conferred
7 by a certificate of convenience and necessity issued by the
8 Commission shall be null and void.
9 No certificate of public convenience and necessity shall
10 be construed as granting a monopoly or an exclusive
11 privilege, immunity or franchise.
12 (Source: P.A. 85-377.)
13 (220 ILCS 5/9-212) (from Ch. 111 2/3, par. 9-212)
14 Sec. 9-212. No new electric utility generating plant or
15 gas production facility, or significant addition to existing
16 facilities or plant, shall be included in a utility's rate
17 base unless and until the utility proves, and the Commission
18 determines, that such plant or facility is both prudent and
19 used and useful in providing utility service to the utility's
20 customers. For purposes of this Section, prudency shall mean
21 that at the time of certification, initiation of construction
22 and each subsequent evaluation of any construction project
23 until the time of completion, based on the evidence
24 introduced in any hearings and all information which was
25 known or should have been known at the time, and relevant
26 planning and certification criteria, it was prudent and
27 reasonable to conclude that the generating or production
28 facility would be used and useful in providing service to
29 customers at the time of completion. If the Commission has
30 issued a certificate of public convenience and necessity for
31 the completed facility and, to the extent that the Commission
32 approves continued construction upon reevaluation subsequent
33 to certification, such actions shall constitute prima facie
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1 evidence of the prudency of construction. If the Commission
2 determines as a result of reevaluation during construction
3 that the facility should not be completed, such determination
4 shall constitute prima facie evidence that subsequent
5 construction expenditures were imprudent.
6 A generation or production facility is used and useful
7 only if, and only to the extent that, it is necessary to meet
8 customer demand or economically beneficial in meeting such
9 demand. No generation or production facility shall be found
10 used and useful until and unless it is capable of generation
11 or production at significant operating levels on a consistent
12 and sustainable basis. Any pollution control devices for the
13 control of sulfur dioxide emissions installed or used in
14 accordance with, and up to the cost specified in, an order or
15 supplemental order of the Commission entered pursuant to
16 subsection (e) of Section 8-402.1 shall be deemed prudent and
17 shall, upon being placed into operation on a consistent,
18 sustainable basis by the public utility, be deemed used and
19 useful.
20 (Source: P.A. 87-173.)
21 (220 ILCS 5/9-213) (from Ch. 111 2/3, par. 9-213)
22 Sec. 9-213. The cost of new electric utility generating
23 plants and significant additions to electric utility
24 generating plants shall not be included in the rate base of
25 any utility. unless such cost is reasonable. Prior to
26 including the cost of plants or additions to utility plants
27 in the rate base, the Commission shall conduct an audit of
28 such costs in order to ascertain whether the cost associated
29 with the new generating plant or the addition to electric
30 utility generating plant is reasonable. However, the
31 Commission may, for good cause shown in individual cases,
32 waive the auditing requirement for any generating facility
33 which meets all of the following requirements:
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1 (1) the facility is wholly owned and operated by a
2 public utility, as otherwise defined in this Act, which
3 serves less than 20,000 electric customers within the
4 State of Illinois, and
5 (2) the facility is designed to generate less than
6 50 megawatts of electricity, and
7 (3) the facility is located outside of the State of
8 Illinois.
9 If the Commission is unable to conduct such an audit, the
10 Commission shall arrange for it to be conducted by persons
11 independent of the utility and selected by the Commission.
12 The cost of such an independent audit shall be borne
13 initially by the utility, but shall be recovered as an
14 expense through normal ratemaking procedures. Any such
15 audits shall be conducted in accordance with generally
16 accepted auditing standards and shall include but not be
17 limited to costs associated with materials, labor, equipment,
18 professional services and other direct and indirect costs.
19 "Significant additions to the electric utility generating
20 plant", as used in this Section, shall not include a public
21 utility's investment in pollution control devices for the
22 control of sulfur dioxide emissions. Nothing in this Section
23 is intended to affect the provisions of Section 9-214 of this
24 Act.
25 "Reasonable", as used in this Section, means that a
26 utility's decisions, construction, and supervision of
27 construction, underlying the costs of new electric utility
28 generating plants and significant additions to electric
29 utility generating plants resulted in efficient, economical
30 and timely construction. In determining the reasonableness
31 of plant costs, the Commission shall consider the knowledge
32 and circumstances prevailing at the time of each relevant
33 utility decision or action.
34 Nothing in this Section shall prevent or limit the
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1 Commission from either entering into and conducting joint
2 audits concerning such electric generating plants with the
3 regulatory authority of another state, or from relying on
4 audits conducted by the regulatory authority of another state
5 in lieu of an audit as required by this Section.
6 (Source: P.A. 87-435.)
7 (220 ILCS 5/9-214) (from Ch. 111 2/3, par. 9-214)
8 Sec. 9-214. (a) As used in this Section:
9 (1) "CWIP" means those assets which are recorded as
10 construction work in progress on a public utility's books
11 of accounts maintained in accordance with the applicable
12 regulations and orders of the Commission.
13 (2) "Rate base" means the original cost value of
14 the property on which a return is allowed.
15 (3) "CWIP ratio" means the fraction, expressed as a
16 percentage, calculated by dividing the amount of CWIP
17 included in a public utility's rate base by the utility's
18 rate base.
19 (4) "Existing CWIP" means the amount of CWIP
20 included in the rate base on December 1, 1983.
21 (b) In any determination under Section 9-201, 9-202 or
22 9-250 of this Act in a proceeding begun on or after December
23 1, 1983:
24 (1) For any public utility with a CWIP ratio on
25 December 1, 1983, which is less than 15%, the Commission
26 shall not include in the rate base for such public
27 utility an amount for CWIP to exceed 80% of existing CWIP
28 for the period from December 1, 1983 through December 31,
29 1984, and 60% of existing CWIP for the period from
30 January 1, 1985 through December 31, 1985 and 40% of
31 existing CWIP for the period from January 1, 1986 through
32 December 31, 1986, and 20% of existing CWIP for the
33 period from January 1, 1987 through December 31, 1987.
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1 (2) For any public utility with a CWIP ratio on
2 December 1, 1983 which is greater than or equal to 15%,
3 the Commission shall not include in the rate base for
4 such public utility an amount for CWIP in excess of the
5 amount of CWIP included in the rate base on December 1,
6 1983, plus 50% of the allowed construction expenses
7 incurred by the public utility from the date of the most
8 recent rate determination by the Commission prior to
9 December 1, 1983.
10 (c) The limitations set forth in paragraph (b) of this
11 Section shall not be interpreted as an expansion of the
12 Commission's authority to include CWIP in the rate base, but
13 rather solely as a limitation thereon.
14 (d) The Commission shall not include an amount for CWIP
15 in the rate base for any public utility for the period after
16 December 31, 1988.
17 (e) Notwithstanding the provisions of paragraphs (b) and
18 (d) of this Section the Commission may include in the rate
19 base of a public utility an amount for CWIP for a public
20 utility's investment which is scheduled to be placed in
21 service within 12 months of the date of the rate
22 determination. For the purposes of this paragraph nuclear
23 generating facilities shall be considered to be in service
24 upon the commencement of electric generation.
25 (f) Notwithstanding the provisions of paragraph (b) and
26 (d), the Commission may include in the rate base of a public
27 utility an amount of CWIP for a public utility's investment
28 in pollution control devices for the control of sulfur
29 dioxide emissions and the purification of water and sewage.;
30 provided, however, that upon application by a public utility
31 which is constructing one or more pollution control devices
32 for the control of sulfur dioxide emissions as part of a
33 Clean Air Act compliance plan approved by the Commission
34 pursuant to subsection (e) of Section 8-402.1, the Commission
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1 shall include in such public utility's rate base an amount of
2 CWIP equal to its investment in such pollution control device
3 or devices, but not to exceed the estimated cost of such
4 facilities specified in the Commission's order or
5 supplemental order pursuant to subsection (e) of Section
6 8-402.1. For purposes of this subsection (f), the public
7 utility's investment shall not include the amount of any
8 state, federal or other grants provided to the public utility
9 to fund the design, acquisition, construction, installation
10 and testing of pollution control devices for the control of
11 sulfur dioxide emissions.
12 (g) Except for those amounts of CWIP described in
13 paragraph paragraphs (e) and (f) of this Section, the
14 Commission shall consider, in any rate filing subsequent to
15 the coming on line of any new utility plant where CWIP funds
16 have been allowed in rate base, a rate moderation plan
17 directed towards allowing an appropriate return to ratepayers
18 for previous amounts attributable to CWIP funds.
19 The Commission shall conduct an investigation and study
20 of the costs and benefits to ratepayers of the inclusion of
21 construction work in progress in rate base. Such study shall
22 include a full opportunity for participation by the public
23 through notice and hearings. If the Commission determines
24 that in certain circumstances the inclusion of CWIP in rate
25 base would be demonstrably beneficial to ratepayers, the
26 Commission shall report its findings with recommendations to
27 the General Assembly by December 31, 1988.
28 (Source: P.A. 87-173.)
29 (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220)
30 Sec. 9-220. Notwithstanding the provisions of Section
31 9-201, the Commission may authorize the increase or decrease
32 of rates and charges based upon changes in the cost of fuel
33 used in the generation or production of electric power,
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1 changes in the cost of purchased power, or changes in the
2 cost of purchased gas through the application of fuel
3 adjustment clauses or purchased gas adjustment clauses. The
4 Commission may also authorize the increase or decrease of
5 rates and charges based upon expenditures or revenues
6 resulting from the purchase or sale of emission allowances
7 created under the Clean Air Act Amendments of 1990, as
8 defined in Section 8-402.1, through such fuel adjustment
9 clauses, as a cost of fuel. For the purposes of this
10 paragraph, cost of fuel used in the generation or production
11 of electric power shall include the amount of any fees paid
12 by the utility for the implementation and operation of a
13 process for the desulfurization of the flue gas when burning
14 high sulfur coal at any location within the State of Illinois
15 irrespective of the attainment status designation of such
16 location, except for any fees or costs related to a service
17 contract which is part of a utility's Clean Air Act
18 compliance plan approved pursuant to Section 8-402.1, to the
19 extent that recovery of comparable costs would not be
20 permitted under this Section if incurred directly by a
21 utility owning and operating such a facility; but shall not
22 include transportation costs of coal except as otherwise
23 provided in this paragraph. Such costs of fuel shall, when
24 requested by a utility or at the conclusion of the utility's
25 next general electric rate proceeding, whichever shall first
26 occur, include transportation costs of coal purchased under
27 existing coal purchase contracts. For purposes of this
28 paragraph "existing coal purchase contracts" means contracts
29 for the purchase of coal in effect on the effective date of
30 this amendatory Act of 1991, as such contracts may thereafter
31 be amended, but only to the extent that any such amendment
32 does not increase the aggregate quantity of coal to be
33 purchased under such contract. Cost shall be based upon
34 uniformly applied accounting principles. Annually, the
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1 Commission shall initiate public hearings to determine
2 whether the clauses reflect actual costs of fuel, gas, power,
3 or coal transportation purchased to determine whether such
4 purchases were prudent, and to reconcile any amounts
5 collected with the actual costs of fuel, power, gas, or coal
6 transportation prudently purchased. In each such proceeding,
7 the burden of proof shall be upon the utility to establish
8 the prudency of its cost of fuel, power, gas, or coal
9 transportation purchases and costs.
10 The Commission shall have authority to promulgate rules
11 and regulations to carry out the provisions of this
12 paragraph.
13 (Source: P.A. 87-173; 88-488.)
14 (220 ILCS 5/Art. XVI heading new)
15 ARTICLE XVI. CONSUMER FREEDOM TO CHOOSE ELECTRICITY LAW
16 (220 ILCS 5/16-100 new)
17 Sec. 16-100. Short title. This Article may be cited as
18 the Consumer Freedom to Choose Electricity Law.
19 (220 ILCS 5/16-105 new)
20 Sec. 16-105. Definitions.
21 "Host utility" means a utility that has an approved
22 service area.
23 "Customer related services" includes one or more of the
24 following services:
25 (1) provision of a meter;
26 (2) meter maintenance and testing;
27 (3) meter reading;
28 (4) billing and collection.
29 "Service area" has the meaning given that term in the
30 Electric Supplier Act.
31 "Small commercial consumer" means a nonresidential
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1 consumer that uses less than or is projected to use less than
2 15,000 kilowatt-hours of energy in a calendar year.
3 (220 ILCS 5/16-110 new)
4 Sec. 16-110. Choice of electric power and customer
5 related services suppliers. Beginning January 1, 1998, a
6 consumer of electric power and customer related services may
7 obtain electric power and customer related services from any
8 supplier or suppliers it chooses. Host utilities shall
9 permit energy suppliers to aggregate consumer loads subject
10 only to standard system operating policies.
11 (220 ILCS 5/16-115 new)
12 Sec. 16-115. Duties of customer related service
13 providers. A person providing customer related services
14 shall comply with the provisions of Sections 8-301, 8-302,
15 8-303, and 8-304 of this Act and any applicable regulations
16 adopted by the Commission.
17 (220 ILCS 5/16-120 new)
18 Sec. 16-120. Unbundled tariff filing.
19 (a) No later than October 1, 1997, a host utility must
20 file with the Commission an unbundled transmission (firm
21 only), distribution (firm only), and customer service tariff
22 based on an embedded cost of service methodology or must
23 adopt the proxy rates for those services that are established
24 in subsection (b).
25 (b) For residential and small commercial consumers, a
26 proxy rate of 0.30 cents per kilowatt hour for firm
27 transmission service, or 1.64 cents per kilowatt hour for
28 firm primary distribution service (between 1 kv and 30 kv),
29 or 2.30 cents per kilowatt hour for firm secondary
30 distribution service (service voltage less than 1 kv) shall
31 be charged by all host utilities for all energy delivered to
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1 the consumer by the host utility from an alternate supplier
2 beginning January 1, 1998 and continuing until such time as
3 the host utility obtains Commission approval of a different
4 rate for the service.
5 For other consumers that are too large to be considered
6 as a residential or small commercial consumer, one of the
7 following 3 charges shall be applicable: (1) a proxy rate of
8 $1.40 per kilowatt month for receiving firm transmission
9 service (service voltage greater than 30 kv), (2) a proxy
10 rate of $4.75 per kilowatt month for receiving firm primary
11 distribution service (service voltage between 1 kv and 30
12 kv), or (3) a proxy rate of $6.60 per kilowatt month for
13 receiving firm secondary distribution service (service
14 voltage less than 1 kv) shall be charged by all host
15 utilities beginning January 1, 1998 and continuing until such
16 time as the host utility obtains Commission approval of a
17 different rate for the service.
18 The host utility shall provide, to the extent not
19 otherwise provided, regulation and frequency response
20 service, operating reserve-spinning reserve service,
21 operating reserve-supplemental reserve service, reactive
22 supply and voltage control from generation sources service,
23 real power loss service, and any other ancillary services, at
24 the rates approved by the Federal Energy Regulatory
25 Commission.
26 A customer or facilities charge as authorized in a tariff
27 approved by the Commission or as agreed upon in
28 customer-specific contracts shall also be charged by all host
29 utilities beginning January 1, 1998 and continuing until such
30 time as the host utility obtains Commission approval of a
31 different rate for this service.
32 (220 ILCS 5/16-125 new)
33 Sec. 16-125. Duty to provide bundled service.
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1 (a) A host utility has an ongoing duty to provide
2 bundled service at a tariff rate to all residential and small
3 commercial consumers within its service area. A residential
4 or small commercial consumer may elect to continue to receive
5 bundled service, including the supply of electricity, from
6 the host utility or may elect to switch back to the host
7 utility. The host utility may impose an administrative fee
8 each time a residential or small commercial consumer switches
9 back to the host utility for the supply of electricity.
10 (b) Except as provided in subsection (a) of this Section
11 and subsection (b) of Section 16-130, a host utility's duty
12 to provide electric supply to a consumer ends if the consumer
13 chooses an alternative electric power supplier.
14 (220 ILCS 5/16-130 new)
15 Sec. 16-130. Rates.
16 (a) In addition to the requirements of Article IX, a
17 host utility's rates and charges are subject to the
18 provisions of this Section.
19 (b) The electric base rates of a host utility, including
20 the normalized fuel adjustment clause portion, are capped
21 until January 1, 2003 at the rates in effect for the host
22 utility on January 1, 1997, subject to possible reductions in
23 accordance with subsection (c), with respect to those
24 consumers who decline to switch from the host utility to an
25 alternative electric supplier. In addition, and as authorized
26 in subsection (a) of Section 16-125, residential and small
27 commercial consumers that return to their host utility for
28 bundled service, including electric supply, at any time prior
29 to January 1, 2003 shall do so at the host utility's capped
30 rates.
31 (c) On each February 1 through 2000, the Midwest
32 regional average of all contiguous states, excluding
33 Illinois, shall be calculated by the Commission. Any host
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1 utility whose bundled tariff price for any customer class
2 exceeds the Commissions's calculated Midwest regional average
3 for that customer class shall decrease its bundled tariff
4 rates on March 1, 1998 and on March 1, 1999 by an amount that
5 is equal to 1/3 of the amount by which the Midwest regional
6 average is exceeded. On March 1, 2000, any host utility whose
7 bundled tariff price for any customer class exceeds the
8 Commission's calculated Midwest regional average for that
9 customer class shall decrease its bundled tariff rates for
10 that customer class to the level of the Commission's
11 calculated Midwest regional average.
12 (d) Subject to the rate cap and until January 1, 2003, a
13 host utility may impose upon and collect from all consumers
14 of that utility a lost margin charge in an amount approved by
15 the Commission to ensure the financial viability of the
16 utility until the utility has a reasonable opportunity to
17 take advantage of new business opportunities. Upon petition
18 by a host utility, the Commission shall hold hearings to
19 consider whether and in what amount a host utility may impose
20 a lost margin charge. If the host utility demonstrates a
21 critical and essential need to alleviate financial distress,
22 the Commission may order that a nonbypassable lost margin
23 charge be imposed on all consumers receiving services from
24 that utility. The amount of the lost margin charge shall be
25 based on the degree of financial distress, mitigation
26 efforts, potential power market concerns, length of the
27 recovery period, and other criteria the Commission deems
28 relevant. Each year, the Commission shall review and, if
29 appropriate, adjust any lost margin charge approved to ensure
30 the continuing reasonableness of the lost margin charge.
31 The Commission and all parties to the lost margin charge
32 proceeding may review copies of any confidential contracts
33 between a utility seeking a lost margin charge and its
34 customers.
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1 (220 ILCS 5/16-135 new)
2 Sec. 16-135. Universal service fund. The Commission
3 shall initiate a proceeding to consider the establishment of
4 a universal service fund to ensure that low-income consumers
5 have access to affordable energy. On or before January 1,
6 1999, the Commission shall release its findings and make
7 appropriate recommendations to the General Assembly, which
8 shall include the implementation of a nonbypassable charge to
9 be imposed on all customers of electric suppliers, as that
10 term is defined in the Electric Suppliers Act, in Illinois.
11 Appropriate programs shall include, but are not limited to,
12 programs for low-income customers, energy-efficiency
13 programs, support for research and development, and
14 investments in commercialization strategies for new and
15 beneficial technologies.
16 (220 ILCS 5/16-140 new)
17 Sec. 16-140. Supplier registration. All suppliers of
18 electric power and customer related services shall register
19 with the Commission. Registration shall include information
20 about the supplier's technical ability to obtain and deliver
21 electricity and provide customer related services, shall
22 document the supplier's financial capability to provide the
23 proposed services, and shall include the name, address, and
24 phone number of the supplier and a description of the form of
25 ownership of the supplier.
26 (220 ILCS 5/16-145 new)
27 Sec. 16-145. Reliability and safety. The Commission
28 shall promulgate rules that ensure that reliable and safe
29 electric service, with minimum residential consumer service
30 safeguards, is maintained or improved. All host utilities
31 and suppliers of electric power and customer related services
32 shall have in place sufficient measures to preserve the
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1 integrity, safety, reliability, and quality of electric
2 service in the State. Market entrants shall have appropriate
3 provisions for capacity reserves, spinning reserves, and
4 other ancillary services, while maintaining the integrity of
5 the bulk transmission network.
6 (220 ILCS 5/8-402 rep.)
7 (220 ILCS 5/8-402.1 rep.)
8 (220 ILCS 5/8-407 rep.)
9 (220 ILCS 5/9-215 rep.)
10 (220 ILCS 5/9-215.1 rep.)
11 (220 ILCS 5/9-217 rep.)
12 Section 97. The Public Utilities Act is amended by
13 repealing Sections 8-402, 8-402.1, 8-407, 9-215, 9-215.1, and
14 9-217.
15 Section 99. Effective date. This Section and the
16 provisions of Sec. 16-100, Sec. 16-105, and Sec. 16-120 of
17 the Public Utilities Act take effect upon becoming law; the
18 remaining provisions of this Act take effect January 1, 1998.
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1 INDEX
2 Statutes amended in order of appearance
3 65 ILCS 5/8-11-2 from Ch. 24, par. 8-11-2
4 220 ILCS 5/3-105 from Ch. 111 2/3, par. 3-105
5 220 ILCS 5/4-305 from Ch. 111 2/3, par. 4-305
6 220 ILCS 5/7-108
7 220 ILCS 5/8-403.1 from Ch. 111 2/3, par. 8-403.1
8 220 ILCS 5/8-404 from Ch. 111 2/3, par. 8-404
9 220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406
10 220 ILCS 5/9-212 from Ch. 111 2/3, par. 9-212
11 220 ILCS 5/9-213 from Ch. 111 2/3, par. 9-213
12 220 ILCS 5/9-214 from Ch. 111 2/3, par. 9-214
13 220 ILCS 5/9-220 from Ch. 111 2/3, par. 9-220
14 220 ILCS 5/Art. XVI heading new
15 220 ILCS 5/16-100 new
16 220 ILCS 5/16-105 new
17 220 ILCS 5/16-110 new
18 220 ILCS 5/16-115 new
19 220 ILCS 5/16-120 new
20 220 ILCS 5/16-125 new
21 220 ILCS 5/16-130 new
22 220 ILCS 5/16-135 new
23 220 ILCS 5/16-140 new
24 220 ILCS 5/16-145 new
25 220 ILCS 5/8-402 rep.
26 220 ILCS 5/8-402.1 rep.
27 220 ILCS 5/8-407 rep.
28 220 ILCS 5/9-215 rep.
29 220 ILCS 5/9-215.1 rep.
30 220 ILCS 5/9-217 rep.