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90_HB0362enr
220 ILCS 5/4-201 from Ch. 111 2/3, par. 4-201
Amends the Public Utilities Act. Adds a caption to a
Section concerning the enforcement of laws affecting public
utilities.
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1 AN ACT in relation to the competitive provision of
2 utility services, amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 ARTICLE I
6 Section 5. The Public Utilities Act is amended by adding
7 Articles XVI, XVII, and XVIII as follows:
8 (220 ILCS 5/Art. XVI heading new)
9 ARTICLE XVI. ELECTRIC SERVICE CUSTOMER CHOICE AND RATE
10 RELIEF LAW OF 1997
11 (220 ILCS 5/16-101 new)
12 Sec. 16-101. Short title and applicability.
13 (a) This Article may be cited as the Electric Service
14 Customer Choice and Rate Relief Law of 1997 and shall apply
15 to electric utilities and alternative retail electric
16 suppliers as defined in this Article. Except to the extent
17 modified or supplemented by the provisions of this Article,
18 or where the context clearly renders such provisions
19 inapplicable, the other Articles of the Public Utilities Act
20 pertaining to public utilities, public utility rates and
21 services and the regulation thereof, are fully and equally
22 applicable to the tariffed services electric utilities
23 provide.
24 (b) The provisions of subsections (a) through (h) of
25 Section 16-111 of this Act shall not be applicable to any
26 electric utility which elects to file biennial rate
27 proceedings before the Commission in the years 1998, 2000 and
28 2002. An electric utility electing this option shall do so
29 by filing a notice of such election with the Commission
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1 within 60 days after the effective date of this amendatory
2 Act of 1997, or its right to make such election shall be
3 irrevocably waived. An electric utility electing the option
4 specified in this paragraph shall file its rate proceeding
5 with the Commission no later than August 1 of the years 1998,
6 2000, and 2002. The electric utility's filing shall comply
7 with all requirements of 83 Illinois Administrative Code
8 Parts 255 and 285 as though the electric utility were filing
9 for an increase in its rates, without regard to whether such
10 filing would produce an increase, a decrease or no change in
11 the electric utility's rates and the Commission shall review
12 the electric utility's filing and shall issue its order in
13 accordance with the provisions of Section 9-201 of this Act.
14 (220 ILCS 5/16-101A new)
15 Sec. 16-101A. Legislative findings.
16 (a) The citizens and businesses of the State of Illinois
17 have been well-served by a comprehensive electrical utility
18 system which has provided safe, reliable, and affordable
19 service. The electrical utility system in the State of
20 Illinois has historically been subject to State and federal
21 regulation, aimed at assuring the citizens and businesses of
22 the State of safe, reliable, and affordable service, while at
23 the same time assuring the utility system of a return on its
24 investment.
25 (b) Competitive forces are affecting the market for
26 electricity as a result of recent federal regulatory and
27 statutory changes and the activities of other states.
28 Competition in the electric services market may create
29 opportunities for new products and services for customers and
30 lower costs for users of electricity. Long-standing
31 regulatory relationships need to be altered to accommodate
32 the competition that could fundamentally alter the structure
33 of the electric services market.
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1 (c) With the advent of increasing competition in this
2 industry, the State has a continued interest in assuring that
3 the safety, reliability, and affordability of electrical
4 power is not sacrificed to competitive pressures, and to that
5 end, intends to implement safeguards to assure that the
6 industry continues to operate the electrical system in a
7 manner that will serve the public's interest. Under the
8 existing regulatory framework, the industry has been
9 encouraged to undertake certain investments in its physical
10 plant and personnel to enhance its efficient operation, the
11 cost of which it has been permitted to pass on to consumers.
12 The State has an interest in providing the existing utilities
13 a reasonable opportunity to obtain a return on certain
14 investments on which they depended in undertaking those
15 commitments in the first instance while, at the same time,
16 not permitting new entrants into the industry to take
17 unreasonable advantage of the investments made by the
18 formerly regulated industry.
19 (d) A competitive wholesale and retail market must
20 benefit all Illinois citizens. The Illinois Commerce
21 Commission should act to promote the development of an
22 effectively competitive electricity market that operates
23 efficiently and is equitable to all consumers. Consumer
24 protections must be in place to ensure that all customers
25 continue to receive safe, reliable, affordable, and
26 environmentally safe electric service.
27 (e) All consumers must benefit in an equitable and
28 timely fashion from the lower costs for electricity that
29 result from retail and wholesale competition and receive
30 sufficient information to make informed choices among
31 suppliers and services. The use of renewable resources and
32 energy efficiency resources should be encouraged in
33 competitive markets.
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1 (220 ILCS 5/16-102 new)
2 Sec. 16-102. Definitions. For the purposes of this
3 Article the following terms shall be defined as set forth in
4 this Section.
5 "Alternative retail electric supplier" means every
6 person, cooperative, corporation, municipal corporation,
7 company, association, joint stock company or association,
8 firm, partnership, individual, or other entity, their
9 lessees, trustees, or receivers appointed by any court
10 whatsoever, that offers electric power or energy for sale,
11 lease or in exchange for other value received to one or more
12 retail customers, or that engages in the delivery or
13 furnishing of electric power or energy to such retail
14 customers, and shall include, without limitation, resellers,
15 aggregators and power marketers, but shall not include (i)
16 electric utilities (or any agent of the electric utility to
17 the extent the electric utility provides tariffed services to
18 retail customers through that agent), (ii) any electric
19 cooperative or municipal system as defined in Section 17-100
20 to the extent that the electric cooperative or municipal
21 system is serving retail customers within any area in which
22 it is or would be entitled to provide service under the law
23 in effect immediately prior to the effective date of this
24 amendatory Act of 1997, (iii) a public utility that is owned
25 and operated by any public institution of higher education of
26 this State, or a public utility that is owned by such public
27 institution of higher education and operated by any of its
28 lessees or operating agents, within any area in which it is
29 or would be entitled to provide service under the law in
30 effect immediately prior to the effective date of this
31 amendatory Act of 1997, (iv) any retail customer to the
32 extent that customer obtains its electric power and energy
33 from its own cogeneration or self-generation facilities, (v)
34 any entity that sells or arranges for the installation of
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1 cogeneration or self-generation facilities to be owned by a
2 retail customer described in subparagraph (iv), but only to
3 the extent the entity is engaged in selling or arranging for
4 such installation, or (vi) an industrial or manufacturing
5 customer that owns its own distribution facilities, to the
6 extent that the customer provides service from that
7 distribution system to a third-party contractor located on
8 the customer's premises that is integrally and predominantly
9 engaged in the customer's industrial or manufacturing
10 process; provided, that if the industrial or manufacturing
11 customer has elected delivery services, the customer shall
12 pay transition charges applicable to the electric power and
13 energy consumed by the third-party contractor unless such
14 charges are otherwise paid by the third party contractor,
15 which shall be calculated based on the usage of, and the base
16 rates or the contract rates applicable to, the third-party
17 contractor in accordance with Section 16-102.
18 "Base rates" means the rates for those tariffed services
19 that the electric utility is required to offer pursuant to
20 subsection (a) of Section 16-103 and that were identified in
21 a rate order for collection of the electric utility's base
22 rate revenue requirement, excluding (i) separate automatic
23 rate adjustment riders then in effect, (ii) special or
24 negotiated contract rates, (iii) delivery services tariffs
25 filed pursuant to Section 16-108, (iv) real-time pricing, or
26 (v) tariffs that were in effect prior to October 1, 1996 and
27 that based charges for services on an index or average of
28 other utilities' charges, but including (vi) any subsequent
29 redesign of such rates for tariffed services that is
30 authorized by the Commission after notice and hearing.
31 "Competitive service" includes (i) any service that has
32 been declared to be competitive pursuant to Section 16-113 of
33 this Act, (ii) contract service, and (iii) services, other
34 than tariffed services, that are related to, but not
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1 necessary for, the provision of electric power and energy or
2 delivery services.
3 "Contract service" means (1) services, including the
4 provision of electric power and energy or other services,
5 that are provided by mutual agreement between an electric
6 utility and a retail customer that is located in the electric
7 utility's service area, provided that, delivery services
8 shall not be a contract service until such services are
9 declared competitive pursuant to Section 16-113; and also
10 means (2) the provision of electric power and energy by an
11 electric utility to retail customers outside the electric
12 utility's service area pursuant to Section 16-116. Provided,
13 however, contract service does not include electric utility
14 services provided pursuant to (i) contracts that retail
15 customers are required to execute as a condition of receiving
16 tariffed services, or (ii) special or negotiated rate
17 contracts for electric utility services that were entered
18 into between an electric utility and a retail customer prior
19 to the effective date of this amendatory Act of 1997 and
20 filed with the Commission.
21 "Delivery services" means those services provided by the
22 electric utility that are necessary in order for the
23 transmission and distribution systems to function so that
24 retail customers located in the electric utility's service
25 area can receive electric power and energy from suppliers
26 other than the electric utility, and shall include, without
27 limitation, standard metering and billing services.
28 "Electric utility" means a public utility, as defined in
29 Section 3-105 of this Act, that has a franchise, license,
30 permit or right to furnish or sell electricity to retail
31 customers within a service area.
32 "Mandatory transition period" means the period from the
33 effective date of this amendatory Act of 1997 through January
34 1, 2005.
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1 "Municipal system" shall have the meaning set forth in
2 Section 17-100.
3 "Real-time pricing" means charges for delivered electric
4 power and energy that vary on an hour-to-hour basis for
5 nonresidential retail customers and that vary on a periodic
6 basis during the day for residential retail customers.
7 "Retail customer" means a single entity using electric
8 power or energy at a single premises and that (A) either (i)
9 is receiving or is eligible to receive tariffed services from
10 an electric utility, or (ii) that is served by a municipal
11 system or electric cooperative within any area in which the
12 municipal system or electric cooperative is or would be
13 entitled to provide service under the law in effect
14 immediately prior to the effective date of this amendatory
15 Act of 1997, or (B) an entity which on the effective date of
16 this Act was receiving electric service from a public utility
17 and (i) was engaged in the practice of resale and
18 redistribution of such electricity within a building prior to
19 January 2, 1957, or (ii) was providing lighting services to
20 tenants in a multi-occupancy building, but only to the extent
21 such resale, redistribution or lighting service is authorized
22 by the electric utility's tariffs that were on file with the
23 Commission on the effective date of this Act.
24 "Service area" means (i) the geographic area within which
25 an electric utility was lawfully entitled to provide electric
26 power and energy to retail customers as of the effective date
27 of this amendatory Act of 1997, and includes (ii) the
28 location of any retail customer to which the electric utility
29 was lawfully providing electric utility services on such
30 effective date.
31 "Small commercial retail customer" means those
32 nonresidential retail customers of an electric utility
33 consuming 15,000 kilowatt-hours or less of electricity
34 annually in its service area.
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1 "Tariffed service" means services provided to retail
2 customers by an electric utility as defined by its rates on
3 file with the Commission pursuant to the provisions of
4 Article IX of this Act, but shall not include competitive
5 services.
6 "Transition charge" means a charge expressed in cents per
7 kilowatt-hour that is calculated for a customer or class of
8 customers as follows for each year in which an electric
9 utility is entitled to recover transition charges as provided
10 in Section 16-108:
11 (1) the amount of revenue that an electric utility
12 would receive from the retail customer or customers if it
13 were serving such customers' electric power and energy
14 requirements as a tariffed service based on (A) all of
15 the customers' actual usage during the 3 years ending 90
16 days prior to the date on which such customers were first
17 eligible for delivery services pursuant to Section
18 16-104, and (B) on (i) the base rates in effect on
19 October 1, 1996 (adjusted for the reductions required by
20 subsection (b) of Section 16-111, for any reduction
21 resulting from a rate decrease under Section 16-101(b),
22 for any restatement of base rates made in conjunction
23 with an elimination of the fuel adjustment clause
24 pursuant to subsection (b), (d), or (f) of Section 9-220
25 and for any removal of decommissioning costs from base
26 rates pursuant to Section 16-114) and any separate
27 automatic rate adjustment riders (other than a
28 decommissioning rate as defined in Section 16-114) under
29 which the customers were receiving or, had they been
30 customers, would have received electric power and energy
31 from the electric utility during the year immediately
32 preceding the date on which such customers were first
33 eligible for delivery service pursuant to Section 16-104,
34 or (ii) to the extent applicable, any contract rates,
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1 including contracts or rates for consolidated or
2 aggregated billing, under which such customers were
3 receiving electric power and energy from the electric
4 utility during such year;
5 (2) less the amount of revenue, other than revenue
6 from transition charges and decommissioning rates, that
7 the electric utility would receive from such retail
8 customers for delivery services provided by the electric
9 utility, assuming such customers were taking delivery
10 services for all of their usage, based on the delivery
11 services tariffs in effect during the year for which the
12 transition charge is being calculated and on the usage
13 identified in paragraph (1);
14 (3) less the market value for the electric power
15 and energy that the electric utility would have used to
16 supply all of such customers' electric power and energy
17 requirements, as a tariffed service, based on the usage
18 identified in paragraph (1), with such market value
19 determined in accordance with Section 16-112 of this Act;
20 (4) less the following amount which represents the
21 amount to be attributed to new revenue sources and cost
22 reductions by the electric utility through the end of the
23 period for which transition costs are recovered pursuant
24 to Section 16-108, referred to in this Article XVI as a
25 "mitigation factor":
26 (A) for nonresidential retail customers, an
27 amount equal to the greater of (i) 0.5 cents per
28 kilowatt-hour during the period October 1, 1999
29 through December 31, 2004, 0.6 cents per
30 kilowatt-hour in calendar year 2005, and 0.9 cents
31 per kilowatt-hour in calendar year 2006, multiplied
32 in each year by the usage identified in paragraph
33 (1), or (ii) an amount equal to the following
34 percentages of the amount produced by applying the
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1 applicable base rates (adjusted as described in
2 subparagraph (1)(B)) or contract rate to the usage
3 identified in paragraph (1): 8% for the period
4 October 1, 1999 through December 31, 2002, 10% in
5 calendar years 2003 and 2004, 11% in calendar year
6 2005 and 12% in calendar year 2006; and
7 (B) for residential retail customers, an
8 amount equal to the following percentages of the
9 amount produced by applying the base rates in effect
10 on October 1, 1996 (adjusted as described in
11 subparagraph (1)(B)) to the usage identified in
12 paragraph (1): (i) 6% from May 1, 2002 through
13 December 31, 2002, (ii) 7% in calendar years 2003
14 and 2004, (iii) 8% in calendar year 2005, and (iv)
15 10% in calendar year 2006;
16 (5) divided by the usage of such customers
17 identified in paragraph (1),
18 provided that the transition charge shall never be less than
19 zero.
20 "Unbundled service" means a component or constituent part
21 of a tariffed service which the electric utility subsequently
22 offers separately to its customers.
23 (220 ILCS 5/16-103 new)
24 Sec. 16-103. Service obligations of electric utilities.
25 (a) An electric utility shall continue offering to
26 retail customers each tariffed service that it offered as a
27 distinct and identifiable service on the effective date of
28 this amendatory Act of 1997 until the service is (i)
29 declared competitive pursuant to Section 16-113, or (ii)
30 abandoned pursuant to Section 8-508. Nothing in this
31 subsection shall be construed as limiting an electric
32 utility's right to propose, or the Commission's power to
33 approve, allow or order modifications in the rates, terms and
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1 conditions for such services pursuant to Article IX or
2 Section 16-111 of this Act.
3 (b) An electric utility shall also offer, as tariffed
4 services, delivery services in accordance with this Article,
5 the power purchase options described in Section 16-110 and
6 real-time pricing as provided in Section 16-107.
7 (c) Notwithstanding any other provision of this Article,
8 each electric utility shall continue offering to all
9 residential customers and to all small commercial retail
10 customers in its service area, as a tariffed service, bundled
11 electric power and energy delivered to the customer's
12 premises consistent with the bundled utility service provided
13 by the electric utility on the effective date of this
14 amendatory Act of 1997. Upon declaration of the provision of
15 electric power and energy as competitive, the electric
16 utility shall continue to offer to such customers, as a
17 tariffed service, bundled service options at rates which
18 reflect recovery of all cost components for providing the
19 service. For those components of the service which have been
20 declared competitive, cost shall be the market based prices.
21 Market based prices as referred to herein shall mean, for
22 electric power and energy, either (i) those prices for
23 electric power and energy determined as provided in Section
24 16-112, or (ii) the electric utility's cost of obtaining the
25 electric power and energy at wholesale through a competitive
26 bidding or other arms-length acquisition process.
27 (d) Any residential or small commercial retail customer
28 which elects delivery services is entitled to return to the
29 electric utility's bundled utility tariffed service offering
30 provided in accordance with subsection (c) of this Section
31 upon payment of a reasonable administrative fee which shall
32 be set forth in the tariff, provided, however, that the
33 electric utility shall be entitled to impose the condition
34 that such customer may not elect delivery services for up to
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1 24 months thereafter.
2 (e) The Commission shall not require an electric utility
3 to offer any tariffed service other than the services
4 required by this Section, and shall not require an electric
5 utility to offer any competitive service.
6 (220 ILCS 5/16-104 new)
7 Sec. 16-104. Delivery services transition plan. An
8 electric utility shall provide delivery services to retail
9 customers in accordance with the provisions of this Section.
10 (a) Each electric utility shall offer delivery services
11 to retail customers located in its service area in accordance
12 with the following provisions:
13 (1) On or before October 1, 1999, the electric
14 utility shall offer delivery services (i) to any
15 non-residential retail customer whose average monthly
16 maximum electrical demand on the electric utility's
17 system during the 6 months with the customer's highest
18 monthly maximum demands in the 12 months ending June 30,
19 1999 equals or exceeds 4 megawatts; (ii) to any
20 non-governmental, non-residential, commercial retail
21 customers under common ownership doing business at 10 or
22 more separate locations within the electric utility's
23 service area, if the aggregate coincident average monthly
24 maximum electrical demand of all such locations during
25 the 6 months with the customer's highest monthly maximum
26 electrical demands during the 12 months ending June 30,
27 1999 equals or exceeds 9.5 megawatts, provided, however,
28 that an electric utility's obligation to offer delivery
29 services under this clause (ii) shall not exceed 3.5% of
30 the maximum electric demand on the electric utility's
31 system in the 12 months ending June 30, 1999; and (iii)
32 to non-residential retail customers whose annual electric
33 energy use comprises 33% of the kilowatt-hour sales,
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1 excluding the kilowatt-hour sales to customers described
2 in clauses (i) and (ii), to each non-residential retail
3 customer class of the electric utility.
4 (2) On or before October 1, 2000, the electric
5 utility shall offer delivery services to the eligible
6 governmental customers described in subsections (a) and
7 (b) of Section 16-125A if the aggregate coincident
8 average monthly maximum electrical demand of such
9 customers during the 6 months with the customers' highest
10 monthly maximum electrical demands during the 12 months
11 ending June 30, 2000 equals or exceeds 9.5 megawatts.
12 (3) On or before December 31, 2000, the electric
13 utility shall offer delivery services to all remaining
14 nonresidential retail customers in its service area.
15 (4) On or before May 1, 2002, the electric utility
16 shall offer delivery services to all residential retail
17 customers in its service area.
18 The loads and kilowatt-hour sales used for purposes of
19 this subsection shall be those for the 12 months ending June
20 30, 1999 for nonresidential retail customers. The electric
21 utility shall identify those customers to be offered delivery
22 service pursuant to clause (1)(iii) pursuant to a lottery or
23 other random nondiscriminatory selection process set forth in
24 the electric utility's delivery services implementation plan
25 pursuant to Section 16-105. Provided, that non-residential
26 retail customers under common ownership at separate locations
27 within the electric utility's service area may elect, prior
28 to the date the electric utility conducts the lottery or
29 other random selection process for purposes of clause
30 (1)(iii), to designate themselves as a common ownership
31 group, to be excluded from such lottery and to instead
32 participate in a separate lottery for such common ownership
33 group pursuant to which delivery services will be offered to
34 non-residential retail customers comprising 33% of the total
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1 kilowatt-hour sales to the common ownership group on or
2 before October 1, 1999. For purposes of this subsection (a),
3 an electric utility may define "common ownership" to exclude
4 sites which are not part of the same business, provided, that
5 auxiliary establishments as defined in the Standard
6 Industrial Classification Manual published by the United
7 States Office of Management and Budget shall not be excluded.
8 (b) The electric utility shall allow the aggregation of
9 loads that are eligible for delivery services so long as such
10 aggregation meets the criteria for delivery of electric power
11 and energy applicable to the electric utility established by
12 the regional reliability council to which the electric
13 utility belongs, by an independent system operating
14 organization to which the electric utility belongs, or by
15 another organization responsible for overseeing the integrity
16 and reliability of the transmission system, as such criteria
17 are in effect from time to time. The Commission may adopt
18 rules and regulations governing the criteria for aggregation
19 of the loads utilizing delivery services, but its failure to
20 do so shall not preclude any eligible customer from electing
21 delivery services. The electric utility shall allow such
22 aggregation for any voluntary grouping of customers,
23 including without limitation those having a common agent with
24 contractual authority to purchase electric power and energy
25 and delivery services on behalf of all customers in the
26 grouping.
27 (c) An electric utility shall allow a retail customer
28 that generates power for its own use to include the
29 electrical demand obtained from the customer's cogeneration
30 or self-generation facilities that is coincident with the
31 retail customer's maximum monthly electrical demand on the
32 electric utility's system in any determination of the
33 customer's maximum monthly electrical demand for purposes of
34 determining when such retail customer shall be offered
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1 delivery services pursuant to clause (i) of subparagraph (1)
2 of subsection (a) of this Section.
3 (d) The Commission shall establish charges, terms and
4 conditions for delivery services in accordance with Section
5 16-108.
6 (e) Subject to the terms and conditions which the
7 electric utility is entitled to impose in accordance with
8 Section 16-108, a retail customer that is eligible to elect
9 delivery services pursuant to subsection (a) may place all or
10 a portion of its electric power and energy requirements on
11 delivery services.
12 (f) An electric utility may require a retail customer
13 who elects to (i) use an alternative retail electric supplier
14 or another electric utility for some but not all of its
15 electric power or energy requirements, and (ii) use the
16 electric utility for any portion of its remaining electric
17 power and energy requirements, to place the portion of the
18 customer's electric power or energy requirement that is to be
19 served by the electric utility on a tariff containing charges
20 that are set to recover the lowest reasonably available cost
21 to the electric utility of acquiring electric power and
22 energy on the wholesale electric market to serve such
23 remaining portion of the customer's electric power and energy
24 requirement, reasonable compensation for arranging for and
25 providing such electric power or energy, and the electric
26 utility's other costs of providing service to such remaining
27 electric power and energy requirement.
28 (220 ILCS 5/16-105 new)
29 Sec. 16-105. Delivery services implementation plan. To
30 ensure the safe and orderly implementation of delivery
31 services, each electric utility shall submit to the
32 Commission no later than March 1, 1999, a delivery services
33 implementation plan for non-residential customers and no
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1 later than August 1, 2001, a delivery services implementation
2 plan for residential customers. The delivery services
3 implementation plan shall detail the process and procedures
4 by which each electric utility will offer delivery services
5 to each customer class and shall be designed to insure an
6 orderly transition and the maintenance of reliable service.
7 The Commission shall enter an order approving, or approving
8 as modified, the delivery services implementation plan of
9 each electric utility no later than 60 days prior to the date
10 on which the electric utility must commence offering such
11 services.
12 (220 ILCS 5/16-106 new)
13 Sec. 16-106. Billing experiments. During the mandatory
14 transition period, an electric utility may at its discretion
15 conduct one or more experiments for the provision or billing
16 of services on a consolidated or aggregated basis, for the
17 provision of real-time pricing, or other billing or pricing
18 experiments, and may include experimental programs offered to
19 groups of retail customers possessing common attributes as
20 defined by the electric utility, such as the members of an
21 organization that was established to serve a well-defined
22 industry group, companies having multiple sites, or closely
23 located or affiliated buildings, provided that such groups
24 exist for a purpose other than obtaining energy services and
25 have been in existence for at least 10 years. The offering
26 of such a program by an electric utility to retail customers
27 participating in the program, and the participation by those
28 customers in the program, shall not create any right in any
29 other retail customer or group of customers to participate in
30 the same or a similar program. The Commission shall allow
31 such experiments to go into effect upon the filing by the
32 electric utility of a statement describing the program.
33 Nothing contained in this Section shall be deemed to prohibit
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1 the electric utility from offering, or the Commission from
2 approving, experimental rates, tariffs and services in
3 addition to those allowed under this Section. The Commission
4 shall review and report annually the progress, participation
5 and effects of such experiments to the General Assembly.
6 Based upon its review, recommendations for modification of
7 such experiments may be made by the Commission to the
8 Illinois General Assembly.
9 (220 ILCS 5/16-107 new)
10 Sec. 16-107. Real-time pricing.
11 (a) Each electric utility shall file, on or before May
12 1, 1998, a tariff or tariffs which allow nonresidential
13 retail customers in the electric utility's service area to
14 elect real-time pricing beginning October 1, 1998.
15 (b) Each electric utility shall file, on or before May
16 1, 2000, a tariff or tariffs which allow residential retail
17 customers in the electric utility's service area to elect
18 real-time pricing beginning October 1, 2000.
19 (c) The electric utility's tariff or tariffs filed
20 pursuant to this Section shall be subject to Article IX.
21 (220 ILCS 5/16-108 new)
22 Sec. 16-108. Recovery of costs associated with the
23 provision of delivery services.
24 (a) An electric utility shall file a delivery services
25 tariff with the Commission at least 210 days prior to the
26 date that it is required to begin offering such services
27 pursuant to this Act. An electric utility shall provide the
28 components of delivery services that are subject to the
29 jurisdiction of the Federal Energy Regulatory Commission at
30 the same prices, terms and conditions set forth in its
31 applicable tariff as approved or allowed into effect by that
32 Commission. The Commission shall otherwise have the authority
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1 pursuant to Article IX to review, approve, and modify the
2 prices, terms and conditions of those components of delivery
3 services not subject to the jurisdiction of the Federal
4 Energy Regulatory Commission, including the authority to
5 determine the extent to which such delivery services should
6 be offered on an unbundled basis. In making any such
7 determination the Commission shall consider, at a minimum,
8 the effect of additional unbundling on (i) the objective of
9 just and reasonable rates, (ii) electric utility employees,
10 and (iii) the development of competitive markets for electric
11 energy services in Illinois.
12 (b) The Commission shall enter an order approving, or
13 approving as modified, the delivery services tariff no later
14 than 30 days prior to the date on which the electric utility
15 must commence offering such services. The Commission may
16 subsequently modify such tariff pursuant to this Act.
17 (c) The electric utility's tariffs shall define the
18 classes of its customers for purposes of delivery services
19 charges. Delivery services shall be priced and made
20 available to all retail customers electing delivery services
21 in each such class on a nondiscriminatory basis regardless of
22 whether the retail customer chooses the electric utility, an
23 affiliate of the electric utility, or another entity as its
24 supplier of electric power and energy. Charges for delivery
25 services shall be cost based, and shall allow the electric
26 utility to recover the costs of providing delivery services
27 through its charges to its delivery service customers that
28 use the facilities and services associated with such costs.
29 Such costs shall include the costs of owning, operating and
30 maintaining transmission and distribution facilities. The
31 Commission shall also be authorized to consider whether, and
32 if so to what extent, the following costs are appropriately
33 included in the electric utility's delivery services rates:
34 (i) the costs of that portion of generation facilities used
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1 for the production and absorption of reactive power in order
2 that retail customers located in the electric utility's
3 service area can receive electric power and energy from
4 suppliers other than the electric utility, and (ii) the costs
5 associated with the use and redispatch of generation
6 facilities to mitigate constraints on the transmission or
7 distribution system in order that retail customers located in
8 the electric utility's service area can receive electric
9 power and energy from suppliers other than the electric
10 utility. Nothing in this subsection shall be construed as
11 directing the Commission to allocate any of the costs
12 described in (i) or (ii) that are found to be appropriately
13 included in the electric utility's delivery services rates to
14 any particular customer group or geographic area in setting
15 delivery services rates.
16 (d) The Commission shall establish charges, terms and
17 conditions for delivery services that are just and reasonable
18 and shall take into account customer impacts when
19 establishing such charges. In establishing charges, terms and
20 conditions for delivery services, the Commission shall take
21 into account voltage level differences. A retail customer
22 shall have the option to request to purchase electric service
23 at any delivery service voltage reasonably and technically
24 feasible from the electric facilities serving that customer's
25 premises provided that there are no significant adverse
26 impacts upon system reliability or system efficiency. A
27 retail customer shall also have the option to request to
28 purchase electric service at any point of delivery that is
29 reasonably and technically feasible provided that there are
30 no significant adverse impacts on system reliability or
31 efficiency. Such requests shall not be unreasonably denied.
32 (e) Electric utilities shall recover the costs of
33 installing, operating or maintaining facilities for the
34 particular benefit of one or more delivery services
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1 customers, including without limitation any costs incurred in
2 complying with a customer's request to be served at a
3 different voltage level, directly from the retail customer or
4 customers for whose benefit the costs were incurred, to the
5 extent such costs are not recovered through the charges
6 referred to in subsections (c) and (d) of this Section.
7 (f) An electric utility shall be entitled but not
8 required to implement transition charges in conjunction with
9 the offering of delivery services pursuant to Section 16-104.
10 If an electric utility implements transition charges, it
11 shall implement such charges for all delivery services
12 customers and for all customers described in subsection (h).
13 Such charges shall be calculated as provided in Section
14 16-102, and shall be collected on each kilowatt-hour
15 delivered under a delivery services tariff to a retail
16 customer from the date the customer first takes delivery
17 services until December 31, 2006 except as provided in
18 subsection (h) of this Section. Provided, however, that an
19 electric utility shall be entitled to petition for entry of
20 an order by the Commission authorizing the electric utility
21 to implement transition charges for an additional period
22 ending no later than December 31, 2008. The electric utility
23 shall file its petition with supporting evidence no earlier
24 than 16 months, and no later than 12 months, prior to
25 December 31, 2006. The Commission shall hold a hearing on
26 the electric utility's petition and shall enter its order no
27 later than 8 months after the petition is filed. The
28 Commission shall determine whether and to what extent the
29 electric utility shall be authorized to implement transition
30 charges for an additional period. The Commission may
31 authorize the electric utility to implement transition
32 charges for some or all of the additional period, and shall
33 determine the mitigation factors to be used in implementing
34 such transition charges; provided, that the Commission shall
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1 not authorize mitigation factors less than 110% of those in
2 effect during the 12 months ended December 31, 2006. In
3 making its determination, the Commission shall consider the
4 following factors: the necessity to implement transition
5 charges for an additional period in order to maintain the
6 financial integrity of the electric utility; the prudence of
7 the electric utility's actions in reducing its costs since
8 the effective date of this amendatory Act of 1997; the
9 ability of the electric utility to provide safe, adequate and
10 reliable service to retail customers in its service area; and
11 the impact on competition of allowing the electric utility to
12 implement transition charges for the additional period.
13 (g) The electric utility shall file tariffs that
14 establish the transition charges to be paid by each class of
15 customers to the electric utility in conjunction with the
16 provision of delivery services. The electric utility's
17 tariffs shall define the classes of its customers for
18 purposes of calculating transition charges. The electric
19 utility's tariffs shall provide for the calculation of
20 transition charges on a customer-specific basis for any
21 retail customer whose average monthly maximum electrical
22 demand on the electric utility's system during the 6 months
23 with the customer's highest monthly maximum electrical
24 demands equals or exceeds 3.0 megawatts for electric
25 utilities having more than 1,000,000 customers, and for other
26 electric utilities for any customer that has an average
27 monthly maximum electrical demand on the electric utility's
28 system of one megawatt or more, and (A) for which there
29 exists data on the customer's usage during the 3 years
30 preceding the date that the customer became eligible to take
31 delivery services, or (B) for which there does not exist data
32 on the customer's usage during the 3 years preceding the date
33 that the customer became eligible to take delivery services,
34 if in the electric utility's reasonable judgment there exists
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1 comparable usage information or a sufficient basis to develop
2 such information, and further provided that the electric
3 utility can require customers for which an individual
4 calculation is made to sign contracts that set forth the
5 transition charges to be paid by the customer to the electric
6 utility pursuant to the tariff.
7 (h) An electric utility shall also be entitled to file
8 tariffs that allow it to collect transition charges from
9 retail customers in the electric utility's service area that
10 do not take delivery services but that take electric power or
11 energy from an alternative retail electric supplier or from
12 an electric utility other than the electric utility in whose
13 service area the customer is located. Such charges shall be
14 calculated, in accordance with the definition of transition
15 charges in Section 16-102, for the period of time that the
16 customer would be obligated to pay transition charges if it
17 were taking delivery services, except that no deduction for
18 delivery services revenues shall be made in such calculation,
19 and usage data from the customer's class shall be used where
20 historical usage data is not available for the individual
21 customer. The customer shall be obligated to pay such
22 charges on a lump sum basis on or before the date on which
23 the customer commences to take service from the alternative
24 retail electric supplier or other electric utility, provided,
25 that the electric utility in whose service area the customer
26 is located shall offer the customer the option of signing a
27 contract pursuant to which the customer pays such charges
28 ratably over the period in which the charges would otherwise
29 have applied.
30 (i) An electric utility shall be entitled to add to the
31 bills of delivery services customers charges pursuant to
32 Sections 9-221, 9-222 (except as provided in Section
33 9-222.1), and Section 16-114 of this Act, Section 5-5 of the
34 Electricity Infrastructure Maintenance Fee Law, Section 6-5
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1 of the Renewable Energy, Energy Efficiency, and Coal
2 Resources Development Law of 1997, and Section 13 of the
3 Energy Assistance Act of 1989.
4 (j) If a retail customer that obtains electric power and
5 energy from cogeneration or self-generation facilities
6 installed for its own use on or before January 1, 1997,
7 subsequently takes service from an alternative retail
8 electric supplier or an electric utility other than the
9 electric utility in whose service area the customer is
10 located for any portion of the customer's electric power and
11 energy requirements formerly obtained from those facilities
12 (including that amount purchased from the utility in lieu of
13 such generation and not as standby power purchases, under a
14 cogeneration displacement tariff in effect as of the
15 effective date of this amendatory Act of 1997), the
16 transition charges otherwise applicable pursuant to
17 subsections (f), (g), or (h) of this Section shall not be
18 applicable in any year to that portion of the customer's
19 electric power and energy requirements formerly obtained from
20 those facilities, provided, that for purposes of this
21 subsection (j), such portion shall not exceed the average
22 number of kilowatt-hours per year obtained from the
23 cogeneration or self-generation facilities during the 3 years
24 prior to the date on which the customer became eligible for
25 delivery services, except as provided in subsection (f) of
26 Section 16-110.
27 (220 ILCS 5/16-109 new)
28 Sec. 16-109. Unbundling of delivery services; Commission
29 review. The General Assembly finds that the offering of
30 delivery services will, and is intended to, facilitate the
31 development of competition for generation services, and that
32 competition may develop for other services currently offered
33 on a tariffed basis by the electric utility. The Commission
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1 shall open a proceeding to investigate the need for and
2 desirability of different or additional unbundling of
3 delivery services for some or all electric utilities 3 years
4 from the date that a tariff for delivery services is first
5 approved or allowed into effect pursuant to this Section.
6 The Commission shall open an additional proceeding to again
7 investigate the need for and desirability of different or
8 additional unbundling of delivery services for some or all
9 electric utilities, 3 years after the entry of its final
10 order in the first investigation proceeding. The Commission
11 shall issue its final order in each investigation proceeding
12 no later than 6 months after the proceeding is initiated. In
13 each such proceeding the Commission shall consider, at a
14 minimum, the effect of additional unbundling on (i) the
15 objective of just and reasonable rates, (ii) electric utility
16 employees, and (iii) the development of competitive markets
17 for electric energy services in Illinois. Specific changes
18 to the delivery services tariffs of individual electric
19 utilities to implement findings and directives stated in an
20 order in an investigation proceeding initiated under this
21 Section shall be addressed through individual electric
22 utility tariff filings. The Commission may also, in
23 accordance with Section 16-108, upon complaint or upon its
24 own initiative without complaint, upon reasonable notice,
25 enter upon a hearing concerning the need and desirability of
26 requiring additional or other unbundling of delivery services
27 offered by electric utilities.
28 (220 ILCS 5/16-109A new)
29 Sec. 16-109A. Unbundling of prices for tariffed
30 services; Commission investigation. In addition to the
31 unbundling authorized under Sections 16-108 and 16-109, the
32 Commission shall have the authority to investigate the need
33 for, and to require, the restructuring or unbundling of
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1 prices for tariffed services, other than delivery services,
2 offered by an electric utility; provided, however, that the
3 Commission shall not enter an order requiring the
4 restructuring or unbundling of prices for any such tariffed
5 services for a customer class of an electric utility prior to
6 the date that the class first becomes eligible for delivery
7 services pursuant to Section 16-104.
8 (220 ILCS 5/16-110 new)
9 Sec. 16-110. Delivery services customer power purchase
10 options.
11 (a) Each electric utility shall offer a tariffed service
12 or services in accordance with the terms and conditions set
13 forth in this Section pursuant to which its non-residential
14 delivery services customers may purchase from the electric
15 utility an amount of electric power and energy that is equal
16 to or less than the amounts that are delivered by such
17 electric utility.
18 (b) Except as provided in subsection (o) of Section
19 16-112, a non-residential delivery services customer that is
20 paying transition charges to the electric utility shall be
21 permitted to purchase electric power and energy from the
22 electric utility at a price or prices equal to the sum of (i)
23 the market values that are determined for the electric
24 utility in accordance with Section 16-112 and used by the
25 electric utility to calculate the customer's transition
26 charges and (ii) a fee that compensates the electric utility
27 for any administrative costs it incurs in arranging to supply
28 such electric power and energy. The electric utility may
29 require that the customer purchase such electric power and
30 energy for periods of not less than one year and may also
31 require that the customer give up to 30 days notice for a
32 purchase of one year's duration, and 90 days notice for a
33 purchase of more than one year's duration. A non-residential
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1 delivery service customer exercising the option described in
2 this subsection may sell or assign its interests in the
3 electric power or energy that the customer has purchased. At
4 least twice per year, each electric utility shall notify its
5 small commercial retail customers, through bill inserts and
6 other similar means, of their option to obtain electric power
7 and energy through purchases at market value pursuant to this
8 subsection.
9 (c) After the transition charge period applicable to a
10 non-residential delivery services customer, and until the
11 provision of electric power and energy is declared
12 competitive for the customer group to which the customer
13 belongs, a non-residential delivery services customer that
14 paid any transition charges it was legally obligated to pay
15 to an electric utility shall be permitted to purchase
16 electric power and energy from the electric utility for
17 contract periods of one year at a price or prices equal to
18 the sum of (i) the market value determined for that
19 customer's class pursuant to Section 16-112 and (ii) to the
20 extent it is not included in such market value, a fee to
21 compensate the electric utility for the service of arranging
22 the supply or purchase of such electric power and energy.
23 The electric utility may require that a delivery services
24 customer give the following notice for such a purchase: (i)
25 for a small commercial retail customer, not more than 30
26 days; (ii) for a nonresidential customer which is not a small
27 commercial retail customer but which has maximum electrical
28 demand of less than 500 kilowatts, not more than 6 months;
29 (iii) for a nonresidential customer with maximum electrical
30 demand of 500 kilowatts or more but less than one megawatt,
31 not more than 9 months; and (iv) for a nonresidential
32 customer with maximum electrical demand of one megawatt or
33 more, not more than one year. At least twice per year, each
34 electric utility shall notify its small commercial retail
HB0362 Enrolled -27- LRB9002496JScc
1 customers, through bill inserts or other similar means, of
2 their option to obtain electric power and energy through
3 purchases at market value pursuant to this subsection.
4 (d) After the transition charge period applicable to a
5 non-residential delivery services customer, and until the
6 provision of electric power and energy is declared
7 competitive for the customer group to which the customer
8 belongs, a non-residential delivery services customer, other
9 than a small commercial retail customer, that paid any
10 transition charges it was legally obligated to pay to an
11 electric utility shall be permitted to purchase electric
12 power and energy from the electric utility for contract
13 periods of one year at a price or prices equal to (A) the sum
14 of (i) the electric utility's actual cost of procuring such
15 electric power and energy and (ii) a broker's fee to
16 compensate the electric utility for arranging the supply, or,
17 if the utility so elects, (B) the market value of electric
18 power or energy provided by the electric utility determined
19 as set forth in the electric utility's tariff for that
20 customer's class. The electric utility may require that the
21 delivery services customer give up to 30 days notice for such
22 a purchase.
23 (e) Each delivery services customer purchasing electric
24 power and energy from the electric utility pursuant to a
25 tariff filed in accordance with this Section shall also pay
26 all of the applicable charges set forth in the electric
27 utility's delivery services tariffs and any other tariffs
28 applicable to the services provided to that customer by the
29 electric utility.
30 (f) An electric utility can require a retail customer
31 taking delivery services that formerly generated electric
32 power and energy for its own use and that would not otherwise
33 pay transition charges on a portion of its electric power and
34 energy requirements served on delivery services to pay
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1 transition charges on that portion of the customer's electric
2 power and energy requirements as a condition of exercising
3 the delivery services customer power purchase options set
4 forth in this Section.
5 (220 ILCS 5/16-111 new)
6 Sec. 16-111. Rates and restructuring transactions during
7 mandatory transition period.
8 (a) During the mandatory transition period,
9 notwithstanding any provision of Article IX of this Act, and
10 except as provided in subsections (b), (d), (e), and (f) of
11 this Section, the Commission shall not (i) initiate,
12 authorize or order any change by way of increase (other than
13 in connection with a request for rate increase which was
14 filed after September 1, 1997 but prior to October 15, 1997,
15 by an electric utility serving less than 12,500 customers in
16 this state), (ii) initiate or, unless requested by the
17 electric utility, authorize or order any change by way of
18 decrease, restructuring or unbundling (except as provided in
19 Section 16-109A), in the rates of any electric utility that
20 were in effect on October 1, 1996, or (iii) in any order
21 approving any application for a merger pursuant to Section
22 7-204 that was pending as of May 16, 1997, impose any
23 condition requiring any filing for an increase, decrease, or
24 change in, or other review of, an electric utility's rates or
25 enforce any such condition of any such order; provided,
26 however, that this subsection shall not prohibit the
27 Commission from:
28 (1) approving the application of an electric
29 utility to implement an alternative to rate of return
30 regulation or a regulatory mechanism that rewards or
31 penalizes the electric utility through adjustment of
32 rates based on utility performance, pursuant to Section
33 9-244;
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1 (2) authorizing an electric utility to eliminate
2 its fuel adjustment clause and adjust its base rate
3 tariffs in accordance with subsection (b), (d), or (f) of
4 Section 9-220 of this Act, to fix its fuel adjustment
5 factor in accordance with subsection (c) of Section 9-220
6 of this Act, or to eliminate its fuel adjustment clause
7 in accordance with subsection (e) of Section 9-220 of
8 this Act;
9 (3) ordering into effect tariffs for delivery
10 services and transition charges in accordance with
11 Sections 16-104 and 16-108, for real-time pricing in
12 accordance with Section 16-107, or the options required
13 by Section 16-110 and subsection (n) of 16-112, allowing
14 a billing experiment in accordance with Section 16-106,
15 or modifying delivery services tariffs in accordance with
16 Section 16-109; or
17 (4) ordering or allowing into effect any tariff to
18 recover charges pursuant to Sections 9-201.5, 9-220.1,
19 9-221, 9-222 (except as provided in Section 9-222.1),
20 16-108, and 16-114 of this Act, Section 5-5 of the
21 Electricity Infrastructure Maintenance Fee Law, Section
22 6-5 of the Renewable Energy, Energy Efficiency, and Coal
23 Resources Development Law of 1997, and Section 13 of the
24 Energy Assistance Act of 1989.
25 (b) Notwithstanding the provisions of subsection (a),
26 each Illinois electric utility serving more than 12,500
27 customers in Illinois shall file tariffs (i) reducing,
28 effective August 1, 1998, each component of its base rates to
29 residential retail customers by 15% from the base rates in
30 effect immediately prior to January 1, 1998 and (ii) if the
31 public utility provides electric service to more than 500,000
32 customers in this State on the effective date of this
33 amendatory Act of 1997, reducing, effective May 1, 2002, each
34 component of its base rates to residential retail customers
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1 by an additional 5% from the base rates in effect immediately
2 prior to January 1, 1998. Provided, however, that if an
3 electric utility's average residential retail rate is less
4 than or equal to the average residential retail rate for a
5 group of Midwest Utilities (consisting of all investor-owned
6 electric utilities with annual system peaks in excess of 1000
7 megawatts in the States of Illinois, Indiana, Iowa, Kentucky,
8 Michigan, Missouri, Ohio, and Wisconsin), based on data
9 reported on Form 1 to the Federal Energy Regulatory
10 Commission for calendar year 1995, then it shall only be
11 required to file tariffs (i) reducing, effective August 1,
12 1998, each component of its base rates to residential retail
13 customers by 5% from the base rates in effect immediately
14 prior to January 1, 1998, (ii) reducing, effective October 1,
15 2000, its base rates to residential retail customers by the
16 lesser of 5% of the base rates in effect immediately prior to
17 January 1, 1998 or the percentage by which the electric
18 utility's average residential retail rate exceeds the average
19 residential retail rate of the Midwest Utilities, based on
20 data reported on Form 1 to the Federal Energy Regulatory
21 Commission for calendar year 1999, and (iii) reducing,
22 effective October 1, 2002, each component of its base rates
23 to residential retail customers by an additional amount equal
24 to the lesser of 5% of the base rates in effect immediately
25 prior to January 1, 1998 or the percentage by which the
26 electric utility's average residential retail rate exceeds
27 the average residential retail rate of the Midwest Utilities,
28 based on data reported on Form 1 to the Federal Energy
29 Regulatory Commission for calendar year 2001. Provided,
30 further, that any electric utility for which a decrease in
31 base rates has been or is placed into effect between October
32 1, 1996 and the dates specified in the preceding sentences of
33 this subsection, other than pursuant to the requirements of
34 this subsection, shall be entitled to reduce the amount of
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1 any reduction or reductions in its base rates required by
2 this subsection by the amount of such other decrease. The
3 tariffs required under this subsection shall be filed 45 days
4 in advance of the effective date. Notwithstanding anything to
5 the contrary in Section 9-220 of this Act, no restatement of
6 base rates in conjunction with the elimination of a fuel
7 adjustment clause under that Section shall result in a lesser
8 decrease in base rates than customers would otherwise receive
9 under this subsection had the electric utility's fuel
10 adjustment clause not been eliminated.
11 (c) Any utility reducing its base rates by 15% on August
12 1, 1998 pursuant to subsection (b) shall include the
13 following statement on its bills for residential customers
14 from August 1 through December 31, 1998: "Effective August 1,
15 1998, your rates have been reduced by 15% by the Electric
16 Service Customer Choice and Rate Relief Law of 1997 passed by
17 the Illinois General Assembly.". Any utility reducing its
18 base rates by 5% on August 1, 1998, pursuant to subsection
19 (b) shall include the following statement on its bills for
20 residential customers from August 1 through December 31,
21 1998: "Effective August 1, 1998, your rates have been
22 reduced by 5% by the Electric Service Customer Choice and
23 Rate Relief Law of 1997 passed by the Illinois General
24 Assembly.".
25 (d) During the mandatory transition period, but not
26 before January 1, 2000, and notwithstanding the provisions
27 of subsection (a), an electric utility may request an
28 increase in its base rates if the electric utility
29 demonstrates that the 2-year average of its earned rate of
30 return on common equity, calculated as its net income
31 applicable to common stock divided by the average of its
32 beginning and ending balances of common equity using data
33 reported in the electric utility's Form 1 report to the
34 Federal Energy Regulatory Commission but adjusted to remove
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1 the effects of accelerated depreciation or amortization or
2 other transition or mitigation measures implemented by the
3 electric utility pursuant to subsection (g) of this Section
4 and the effect of any refund paid pursuant to subsection (e)
5 of this Section, is below the 2-year average for the same 2
6 years of the monthly average yields of 30-year U.S. Treasury
7 bonds published by the Board of Governors of the Federal
8 Reserve System in its weekly H.15 Statistical Release or
9 successor publication. The Commission shall review the
10 electric utility's request, and may review the justness and
11 reasonableness of all rates for tariffed services, in
12 accordance with the provisions of Article IX of this Act,
13 provided that the Commission shall consider any special or
14 negotiated adjustments to the revenue requirement agreed to
15 between the electric utility and the other parties to the
16 proceeding. In setting rates under this Section, the
17 Commission shall exclude the costs and revenues that are
18 associated with competitive services and any billing or
19 pricing experiments conducted under Section 16-106.
20 (e) For the purposes of this subsection (e) all
21 calculations and comparisons shall be performed for the
22 Illinois operations of multijurisdictional utilities. During
23 the mandatory transition period, notwithstanding the
24 provisions of subsection (a), if the 2-year average of an
25 electric utility's earned rate of return on common equity,
26 calculated as its net income applicable to common stock
27 divided by the average of its beginning and ending balances
28 of common equity using data reported in the electric
29 utility's Form 1 report to the Federal Energy Regulatory
30 Commission but adjusted to remove the effect of any refund
31 paid under this subsection (e), and further adjusted to
32 include the annual amortization of any difference between the
33 consideration received by an affiliated interest of the
34 electric utility in the sale of an asset which had been sold
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1 or transferred by the electric utility to the affiliated
2 interest subsequent to the effective date of this amendatory
3 Act of 1997 and the consideration for which such asset had
4 been sold or transferred to the affiliated interest, with
5 such difference to be amortized ratably from the date of the
6 sale by the affiliated interest to December 31, 2006, exceeds
7 the 2-year average of the Index for the same 2 years by 1.5
8 or more percentage points, the electric utility shall make
9 refunds to customers beginning the first billing day of April
10 in the following year in the manner described in paragraph
11 (3) of this subsection. For purposes of this subsection (e),
12 the "Index" shall be the sum of (A) the average for the 12
13 months ended September 30 of the monthly average yields of
14 30-year U.S. Treasury bonds published by the Board of
15 Governors of the Federal Reserve System in its weekly H.15
16 Statistical Release or successor publication for each year
17 1998 through 2004, and (B) (i) 4.00 percentage points for
18 each of the 12-month periods ending September 30, 1998
19 through September 30, 1999 or (ii) 5.00 percentage points for
20 each of the 12-month periods ending September 30, 2000
21 through September 30, 2004.
22 (1) For purposes of this subsection (e), "excess
23 earnings" means the difference between (A) the 2-year
24 average of the electric utility's earned rate of return
25 on common equity, less (B) the 2-year average of the sum
26 of (i) the Index applicable to each of the 2 years and
27 (ii) 1.5 percentage points; provided, that "excess
28 earnings" shall never be less than zero.
29 (2) On or before March 31 of each year 2000 through
30 2005 each electric utility shall file a report with the
31 Commission showing its earned rate of return on common
32 equity, calculated in accordance with this subsection,
33 for the preceding calendar year and the average for the
34 preceding 2 calendar years.
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1 (3) If an electric utility has excess earnings,
2 determined in accordance with paragraphs (1) and (2) of
3 this subsection, the refunds which the electric utility
4 shall pay to its customers beginning the first billing
5 day of April in the following year shall be calculated
6 and applied as follows:
7 (i) The electric utility's excess earnings
8 shall be multiplied by the average of the beginning
9 and ending balances of the electric utility's common
10 equity for the 2-year period in which excess
11 earnings occurred.
12 (ii) The result of the calculation in (i)
13 shall be multiplied by 0.50 and then divided by a
14 number equal to 1 minus the electric utility's
15 composite federal and State income tax rate.
16 (iii) The result of the calculation in (ii)
17 shall be divided by the sum of the electric
18 utility's projected total kilowatt-hour sales to
19 retail customers plus projected kilowatt-hours to be
20 delivered to delivery services customers over a one
21 year period beginning with the first billing date in
22 April in the succeeding year to determine a cents
23 per kilowatt-hour refund factor.
24 (iv) The cents per kilowatt-hour refund factor
25 calculated in (iii) shall be credited to the
26 electric utility's customers by applying the factor
27 on the customer's monthly bills to each
28 kilowatt-hour sold or delivered until the total
29 amount calculated in (ii) has been paid to
30 customers.
31 (f) During the mandatory transition period, an electric
32 utility may file revised tariffs reducing the price of any
33 tariffed service offered by the electric utility for all
34 customers taking that tariffed service, which shall be
HB0362 Enrolled -35- LRB9002496JScc
1 effective 7 days after filing.
2 (g) During the mandatory transition period, an electric
3 utility may, without obtaining any approval of the Commission
4 other than that provided for in this subsection and
5 notwithstanding any other provision of this Act or any rule
6 or regulation of the Commission that would require such
7 approval:
8 (1) implement a reorganization, other than a merger
9 of 2 or more public utilities as defined in Section 3-105
10 or their holding companies;
11 (2) retire generating plants from service;
12 (3) sell, assign, lease or otherwise transfer
13 assets to an affiliated or unaffiliated entity and as
14 part of such transaction enter into service agreements,
15 power purchase agreements, or other agreements with the
16 transferee; provided, however, that the prices, terms and
17 conditions of any power purchase agreement must be
18 approved or allowed into effect by the Federal Energy
19 Regulatory Commission; or
20 (4) use any accelerated cost recovery method
21 including accelerated depreciation, accelerated
22 amortization or other capital recovery methods, or record
23 reductions to the original cost of its assets.
24 In order to implement a reorganization, retire generating
25 plants from service, or sell, assign, lease or otherwise
26 transfer assets pursuant to this Section, the electric
27 utility shall comply with subsections (c) and (d) of Section
28 16-128, if applicable, and provide the Commission with at
29 least 30 days notice of the proposed reorganization or
30 transaction, which notice shall include the following
31 information:
32 (i) a complete statement of the entries that
33 the electric utility will make on its books and
34 records of account to implement the proposed
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1 reorganization or transaction together with a
2 certification from an independent certified public
3 accountant that such entries are in accord with
4 generally accepted accounting principles and, if the
5 Commission has previously approved guidelines for
6 cost allocations between the utility and its
7 affiliates, a certification from the chief
8 accounting officer of the utility that such entries
9 are in accord with those cost allocation guidelines;
10 (ii) a description of how the electric utility
11 will use proceeds of any sale, assignment, lease or
12 transfer to retire debt or otherwise reduce or
13 recover the costs of services provided by such
14 electric utility;
15 (iii) a list of all federal approvals or
16 approvals required from departments and agencies of
17 this State, other than the Commission, that the
18 electric utility has or will obtain before
19 implementing the reorganization or transaction;
20 (iv) an irrevocable commitment by the electric
21 utility that it will not, as a result of the
22 transaction, impose any stranded cost charges that
23 it might otherwise be allowed to charge retail
24 customers under federal law or increase the
25 transition charges that it is otherwise entitled to
26 collect under this Article XVI; and
27 (v) if the electric utility proposes to sell,
28 assign, lease or otherwise transfer a generating
29 plant that brings the amount of net dependable
30 generating capacity transferred pursuant to this
31 subsection to an amount equal to or greater than 15%
32 of the electric utility's net dependable capacity as
33 of the effective date of this amendatory Act of
34 1997, and enters into a power purchase agreement
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1 with the entity to which such generating plant is
2 sold, assigned, leased, or otherwise transferred,
3 the electric utility also agrees, if its fuel
4 adjustment clause has not already been eliminated,
5 to eliminate its fuel adjustment clause in
6 accordance with subsection (b) of Section 9-220 for
7 a period of time equal to the length of any such
8 power purchase agreement or successor agreement, or
9 until January 1, 2005, whichever is longer; if the
10 capacity of the generating plant so transferred and
11 related power purchase agreement does not result in
12 the elimination of the fuel adjustment clause under
13 this subsection, and the fuel adjustment clause has
14 not already been eliminated, the electric utility
15 shall agree that the costs associated with the
16 transferred plant that are included in the
17 calculation of the rate per kilowatt-hour to be
18 applied pursuant to the electric utility's fuel
19 adjustment clause during such period shall not
20 exceed the per kilowatt-hour cost associated with
21 such generating plant included in the electric
22 utility's fuel adjustment clause during the full
23 calendar year preceding the transfer, with such
24 limit to be adjusted each year thereafter by the
25 Gross Domestic Product Implicit Price Deflator.
26 (vi) In addition, if the electric utility
27 proposes to sell, assign, or lease, (A) either (1)
28 an amount of generating plant that brings the amount
29 of net dependable generating capacity transferred
30 pursuant to this subsection to an amount equal to or
31 greater than 15% of its net dependable capacity on
32 the effective date of this amendatory Act of 1997,
33 or (2) one or more generating plants with a total
34 net dependable capacity of 1100 megawatts, or (B)
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1 transmission and distribution facilities that either
2 (1) bring the amount of transmission and
3 distribution facilities transferred pursuant to this
4 subsection to an amount equal to or greater than 15%
5 of the electric utility's total depreciated original
6 cost investment in such facilities, or (2) represent
7 an investment of $25,000,000 in terms of total
8 depreciated original cost, the electric utility
9 shall provide, in addition to the information listed
10 in subparagraphs (i) through (v), the following
11 information: a description of how the electric
12 utility will meet its service obligations under this
13 Act in a safe and reliable manner. If the Commission
14 has not issued an order initiating a hearing on the
15 proposed transaction within 30 days after the date
16 the electric utility's notice is filed, the
17 transaction shall be deemed approved. The
18 Commission may, after notice and hearing, prohibit
19 the proposed transaction if it makes either or both
20 of the following findings: (1) that the proposed
21 transaction will render the electric utility unable
22 to provide its tariffed services in a safe and
23 reliable manner, or (2) that there is a strong
24 likelihood that consummation of the proposed
25 transaction will result in the electric utility
26 being entitled to request an increase in its base
27 rates during the mandatory transition period
28 pursuant to subsection (d) of this Section. Any
29 hearing initiated by the Commission into the
30 proposed transaction shall be completed, and the
31 Commission's final order approving or prohibiting
32 the proposed transaction shall be entered, within 90
33 days after the date the electric utility's notice
34 was filed. Provided, however, that a sale,
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1 assignment, or lease of transmission facilities to
2 an independent system operator that meets the
3 requirements of Section 16-126 shall not be subject
4 to Commission approval under this Section.
5 In any proceeding conducted by the Commission
6 pursuant to this subparagraph (vi), intervention
7 shall be limited to parties with a direct interest
8 in the transaction which is the subject of the
9 hearing and any statutory consumer protection agency
10 as defined in subsection (d) of Section 9-102.1.
11 Notwithstanding the provisions of Section 10-113 of
12 this Act, any application seeking rehearing of an
13 order issued under this subparagraph (vi), whether
14 filed by the electric utility or by an intervening
15 party, shall be filed within 10 days after service
16 of the order.
17 The Commission shall not in any subsequent proceeding or
18 otherwise, review such a reorganization or other transaction
19 authorized by this Section, but shall retain the authority to
20 allocate costs as stated in Section 16-111(i). An entity to
21 which an electric utility sells, assigns, leases or transfers
22 assets pursuant to this subsection (g) shall not, as a result
23 of the transactions specified in this subsection (g), be
24 deemed a public utility as defined in Section 3-105. Nothing
25 in this subsection (g) shall change any requirement under the
26 jurisdiction of the Illinois Department of Nuclear Safety
27 including, but not limited to, the payment of fees. Nothing
28 in this subsection (g) shall exempt a utility from obtaining
29 a certificate pursuant to Section 8-406 of this Act for the
30 construction of a new electric generating facility. Nothing
31 in this subsection (g) is intended to exempt the transactions
32 hereunder from the operation of the federal or State
33 antitrust laws. Nothing in this subsection (g) shall require
34 an electric utility to use the procedures specified in this
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1 subsection for any of the transactions specified herein. Any
2 other procedure available under this Act may, at the electric
3 utility's election, be used for any such transaction.
4 (h) During the mandatory transition period, the
5 Commission shall not establish or use any rates of
6 depreciation, which for purposes of this subsection shall
7 include amortization, for any electric utility other than
8 those established pursuant to subsection (c) of Section 5-104
9 of this Act or utilized pursuant to subsection (g) of this
10 Section. Provided, however, that in any proceeding to review
11 an electric utility's rates for tariffed services pursuant to
12 Section 9-201, 9-202, 9-250 or 16-111(d) of this Act, the
13 Commission may establish new rates of depreciation for the
14 electric utility in the same manner provided in subsection
15 (d) of Section 5-104 of this Act. An electric utility
16 implementing an accelerated cost recovery method including
17 accelerated depreciation, accelerated amortization or other
18 capital recovery methods, or recording reductions to the
19 original cost of its assets, pursuant to subsection (g) of
20 this Section, shall file a statement with the Commission
21 describing the accelerated cost recovery method to be
22 implemented or the reduction in the original cost of its
23 assets to be recorded. Upon the filing of such statement,
24 the accelerated cost recovery method or the reduction in the
25 original cost of assets shall be deemed to be approved by the
26 Commission as though an order had been entered by the
27 Commission.
28 (i) Subsequent to the mandatory transition period, the
29 Commission, in any proceeding to establish rates and charges
30 for tariffed services offered by an electric utility, shall
31 consider only (1) the then current or projected revenues,
32 costs, investments and cost of capital directly or indirectly
33 associated with the provision of such tariffed services; (2)
34 collection of transition charges in accordance with Sections
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1 16-102 and 16-108 of this Act; (3) recovery of any employee
2 transition costs as described in Section 16-128 which the
3 electric utility is continuing to incur, including recovery
4 of any unamortized portion of such costs previously incurred
5 or committed, with such costs to be equitably allocated among
6 bundled services, delivery services, and contracts with
7 alternative retail electric suppliers; and (4) recovery of
8 the costs associated with the electric utility's compliance
9 with decommissioning funding requirements; and shall not
10 consider any other revenues, costs, investments or cost of
11 capital of either the electric utility or of any affiliate of
12 the electric utility that are not associated with the
13 provision of tariffed services. In setting rates for
14 tariffed services, the Commission shall equitably allocate
15 joint and common costs and investments between the electric
16 utility's competitive and tariffed services. In determining
17 the justness and reasonableness of the electric power and
18 energy component of an electric utility's rates for tariffed
19 services subsequent to the mandatory transition period and
20 prior to the time that the provision of such electric power
21 and energy is declared competitive, the Commission shall
22 consider the extent to which the electric utility's tariffed
23 rates for such component for each customer class exceed the
24 market value determined pursuant to Section 16-112, and, if
25 the electric power and energy component of such tariffed rate
26 exceeds the market value by more than 10% for any customer
27 class, may establish such electric power and energy component
28 at a rate equal to the market value plus 10%. In any such
29 case, the Commission may also elect to extend the provisions
30 of Section 16-111(e) for any period in which the electric
31 utility is collecting transition charges, using information
32 applicable to such period.
33 (j) During the mandatory transition period, an electric
34 utility may elect to transfer to a non-operating income
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1 account under the Commission's Uniform System of Accounts
2 either or both of (i) an amount of unamortized investment tax
3 credit that is in addition to the ratable amount which is
4 credited to the electric utility's operating income account
5 for the year in accordance with Section 46(f)(2) of the
6 federal Internal Revenue Code of 1986, as in effect prior to
7 P.L. 101-508, or (ii) "excess tax reserves", as that term is
8 defined in Section 203(e)(2)(A) of the federal Tax Reform Act
9 of 1986, provided that (A) the amount transferred may not
10 exceed the amount of the electric utility's assets that were
11 created pursuant to Statement of Financial Accounting
12 Standards No. 71 which the electric utility has written off
13 during the mandatory transition period, and (B) the transfer
14 shall not be effective until approved by the Internal Revenue
15 Service. An electric utility electing to make such a
16 transfer shall file a statement with the Commission stating
17 the amount and timing of the transfer for which it intends to
18 request approval of the Internal Revenue Service, along with
19 a copy of its proposed request to the Internal Revenue
20 Service for a ruling. The Commission shall issue an order
21 within 14 days after the electric utility's filing approving,
22 subject to receipt of approval from the Internal Revenue
23 Service, the proposed transfer.
24 (220 ILCS 5/16-112 new)
25 Sec. 16-112. Determination of market value.
26 (a) The market value to be used in the calculation of
27 transition charges as defined in Section 16-102 shall be
28 determined in accordance with either (i) a tariff that has
29 been filed by the electric utility with the Commission
30 pursuant to Article IX of this Act and that provides for a
31 determination of the market value for electric power and
32 energy as a function of an exchange traded or other market
33 traded index, options or futures contract or contracts
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1 applicable to the market in which the utility sells, and the
2 customers in its service area buy, electric power and energy,
3 or (ii) in the event no such tariff has been placed into
4 effect for the electric utility, or in the event such tariff
5 does not establish market values for each of the years
6 specified in the neutral fact-finder process described in
7 subsections (b) through (h) of this Section, a tariff
8 incorporating the market values resulting from the neutral
9 fact-finder process set forth in subsections (b) through (h)
10 of this Section.
11 (b) Except as provided in subsection (m) of this
12 Section, on or before April 30, 1998, on or before February
13 28, 1999, and on or before each April 30 from 2000 until
14 2007, the Commission shall appoint a neutral fact-finder to
15 make the calculations described in subsection (c) of this
16 Section. The neutral fact-finder shall be a member of a
17 national public accounting firm, shall not have served as the
18 neutral fact-finder in the previous year, and shall be
19 selected from a list of candidates provided by a nationally
20 recognized provider of neutral fact-finders that has
21 established rules for maintaining confidentiality. An amount
22 sufficient to pay the fees of the neutral fact-finder shall
23 be appropriated annually from the Public Utility Fund in the
24 State treasury.
25 (c) On or before June 1, 1998, on or before April 1,
26 1999, and on or before each June 1 from 2000 until 2007, or
27 until discontinued in accordance with subsection (m) of this
28 Section, each electric utility and each alternative retail
29 electric supplier shall submit to the neutral fact-finder a
30 summary of (A) all contracts entered into after June 1, 1997
31 that are for the sale of electric power and energy from a
32 generating facility or facilities located in this State or
33 located in a contiguous State and owned by an electric
34 utility as part of its interconnected operating system and
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1 delivery during one or more of the 5 years succeeding the
2 date of submission, and (B) all contracts entered into after
3 June 1, 1997 for purchase and delivery of electric power and
4 energy in or into this State during one or more of the 5
5 years succeeding the date of submission; provided, however,
6 that such contracts shall not include (i) contracts between
7 the electric utility and an affiliate; (ii) sales, purchases,
8 or deliveries made under rates and tariffs filed with the
9 Commission, except for tariffs filed pursuant to subsection
10 (d) of Section 16-110 and except for special or negotiated
11 rate contracts between an electric utility and a retail
12 customer to the extent that such contracts are for the
13 provision of electric power and energy after the date that
14 the customer becomes eligible for delivery services; and
15 (iii) extensions or amendments to full requirements wholesale
16 contracts existing as of the effective date of this
17 amendatory Act of 1997, provided that such contracts,
18 extensions, or amendments are cost of service regulated by
19 the Federal Energy Regulatory Commission. The summaries
20 shall, at a minimum, identify the date of the contract; the
21 year in which the electric power or energy is to be sold or
22 delivered; the point of delivery; defining characteristics
23 such as the nature of the power transaction (for example,
24 reserve responsibility (firm, non-firm)), length of contract
25 and temporal differences (for example, season, on-peak or
26 off-peak); and the applicable prices stated at the point at
27 which the electric power and energy leaves the electric
28 utility's or alternative retail electric supplier's
29 transmission system, as the case may be, in the case of
30 contracts described in item (A) and at the point at which the
31 electric power and energy enters the electric utility's
32 transmission system in the case of contracts in item (B),
33 provided, that the applicable price shall be stated at the
34 point at which the electric power and energy enters the
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1 electric utility's transmission system in the case of
2 electric power and energy generated for delivery within the
3 electric utility's service area. In reporting to the neutral
4 fact-finder the price of power and energy sold under bundled
5 service contracts, electric utilities and alternative retail
6 electric suppliers shall deduct from the contract price the
7 charges for delivery services, including transition charges,
8 applicable to delivery services customers in a utility's
9 service area, and charges for services, if any, other than
10 the provision of power and energy or delivery services. The
11 Commission may adopt orders setting forth requirements
12 governing the form and content of such summaries.
13 (d) The neutral fact-finder shall calculate market
14 values for electric power and energy for each electric
15 utility, taking into account the defining characteristics set
16 forth in subsection (c) of this Section; provided, however,
17 that the neutral fact-finder may determine that a particular
18 value is appropriate for more than one electric utility, or
19 for all electric utilities in this State. The neutral
20 fact-finder shall calculate the market values for the next
21 year and, to the extent the summaries include a sufficient
22 number of actual contracts to represent a viable market for
23 the sale and delivery of electric power and energy in
24 subsequent years, for each of the 4 succeeding years.
25 (e) In calculating market values for electric power, the
26 neutral fact-finder shall weight contract prices (including
27 any contract price indices) by both the amount of capacity
28 covered by the contract and the number of hours in which
29 capacity is to be provided under the contract in each period
30 of the year, shall take into account all of the defining
31 characteristics set forth in subsection (c) of this Section
32 and shall develop such values as required to represent the
33 different types of market values of electric power.
34 (f) The neutral fact-finder shall base calculations of
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1 the market values for electric energy on the energy prices
2 stated in the contracts, and where no explicit energy prices
3 or index price basis are stated, on the actual energy costs
4 of the supplier in the corresponding period of the preceding
5 year that would have been applicable to the electric energy
6 provided under the contract. The neutral fact-finder shall
7 develop market values for electric energy and shall take into
8 account the defining characteristics set forth in subsection
9 (c) of this Section, as required to represent the market
10 values of such electric energy.
11 (g) If the contracts used by the neutral fact-finder
12 base prices for future years on one or more indices, the
13 neutral fact-finder shall identify such indices in his or her
14 final report, develop a weighting for each index, and
15 calculate a weighted average index. The market values shall
16 be calculated using the weighted average index when the
17 actual values of the component indices are known.
18 (h) The neutral fact-finder shall publish a final report
19 on or before July 30 of each year, except that in 1999 the
20 neutral fact finder shall publish the report on or before May
21 30, setting forth the calculated market values and stating
22 the basis for such calculations. The final report shall not,
23 however, disclose any proprietary or confidential data.
24 (i) The market values calculated by the neutral
25 fact-finder shall not be admissible in any proceeding for any
26 purpose other than the calculation of transition charges or
27 calculation of the price for the power purchase options
28 provided pursuant to subsection (b) and (c) of Section
29 16-110.
30 (j) The Commission shall have access to all contracts
31 described in subsection (c) of this Section and shall perform
32 such audits as it and the neutral fact-finder deem necessary
33 to insure the accuracy of the summaries submitted to the
34 neutral fact-finder. The summaries described in subsection
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1 (c) of this Section and each contract shall be accorded
2 confidential and proprietary treatment and their review shall
3 be subject to the provisions of Sections 4-404 and 5-108 of
4 this Act, and the contract between the Commission and the
5 neutral fact-finder shall contain provisions obligating the
6 neutral fact-finder to comply with such Sections. The
7 summaries shall not be discoverable by any party in any
8 proceeding absent a compelling demonstration of need.
9 (k) In determining the market values to be used for the
10 various customer classes in calculating transition charges as
11 defined in Section 16-102 or for the power purchase options
12 set forth in Section 16-110, an electric utility shall apply
13 the market values that are determined as set forth in
14 subsection (a) to the electric power and energy that would
15 have been used to serve the delivery services customers'
16 electric power and energy requirements, based on the usage
17 specified in Section 16-102 and taking into account the
18 daily, monthly, annual and other relevant characteristics of
19 the customers' demands on the electric utility's system.
20 (l) In calculating a lump sum transition charge payment
21 for the purposes of subsection (h) of Section 16-108, the
22 electric utility shall use the market values that were
23 determined as provided in its tariff, or if such market
24 values have not been determined for the full period of time
25 covered by such lump sum calculation, such other basis as is
26 stated in the electric utility's tariff filed pursuant to
27 Section 16-108.
28 (m) The Commission may approve or reject, or propose
29 modifications to, any tariff providing for the determination
30 of market value that has been proposed by an electric utility
31 pursuant to subsection (a) of this Section, but shall not
32 have the power to otherwise order the electric utility to
33 implement a modified tariff or to place into effect any
34 tariff for the determination of market value other than one
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1 incorporating the neutral fact-finder procedure set forth in
2 this Section. Provided, however, that if each electric
3 utility serving at least 300,000 customers has placed into
4 effect a tariff that provides for a determination of market
5 value as a function of an exchange traded or other market
6 traded index, options or futures contract or contracts, then
7 the Commission can require any other electric utilities to
8 file such a tariff, and can terminate the neutral fact-finder
9 procedure for the periods covered by such tariffs.
10 (n) To the extent that the summaries list a sufficient
11 number of actual contracts to represent a viable market and
12 market values can be determined for more than one year, the
13 electric utility shall offer customers that are obligated to
14 pay transition charges contracts that establish for one or
15 more years, up to a maximum of the lesser of 5 years or the
16 remaining number of years until December 31, 2008, the market
17 value or values to be used in calculating the customer's
18 transition charges in such years and for which market value
19 determinations have been made. The electric utility may
20 require any customer to give up to one year notice prior to
21 entering into a one or 2 year contract pursuant to this
22 subsection, up to 2 years notice for a 3 year contract, and
23 up to 3 years notice for a 4 or 5 year contract. Contracts
24 of one or 2 years duration shall incorporate the market
25 values that were determined as provided in this Section in
26 the year in which the notice is required to be given.
27 Contracts of more than 2 years duration shall incorporate the
28 market values that are determined in the year prior to the
29 first year in which the electric utility will collect
30 transition charges from the customer under the contract. The
31 electric utility shall also allow customers to select, at the
32 time that a customer gives its notice, an option to revoke
33 the notice within 30 days following the determination of the
34 market values that will apply under the contract requested by
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1 the customer, and may charge customers a fee for such option
2 that is set forth in a tariff filed pursuant to Article IX
3 and that is adequate to allow the electric utility to recover
4 its transactional costs and compensate it based on the cost
5 that would be incurred to purchase an option to cover the
6 risk associated with the customer's option to revoke. The
7 electric utility shall not be required to offer customers a
8 contract under this paragraph for any year for which no
9 determination of market value has been made either by the
10 neutral fact-finder or pursuant to a tariff filed by the
11 electric utility.
12 (o) An electric utility shall have no obligation to
13 provide electric power or energy as a tariffed service for
14 the electric power and energy requirements placed on delivery
15 service by any customer that has entered into a contract
16 pursuant to subsection (n) of this Section and has not
17 purchased and exercised an option to revoke, during the term
18 of the contract. A customer that has purchased and exercised
19 an option to revoke under this subsection shall remain
20 eligible to receive any tariffed service for which it would
21 otherwise be eligible.
22 (220 ILCS 5/16-113 new)
23 Sec. 16-113. Declaration of service as a competitive
24 service.
25 (a) An electric utility may, by petition, request the
26 Commission to declare a tariffed service provided by the
27 electric utility to be a competitive service. The electric
28 utility shall give notice of its petition to the public in
29 the same manner that public notice is provided for proposed
30 general increases in rates for tariffed services, in
31 accordance with rules and regulations prescribed by the
32 Commission. The Commission shall hold a hearing on the
33 petition if a hearing is deemed necessary by the Commission.
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1 The Commission shall declare the service to be a competitive
2 service for some identifiable customer segment or group of
3 customers, or some clearly defined geographical area within
4 the electric utility's service area, if the service or a
5 reasonably equivalent substitute service is reasonably
6 available to the customer segment or group or in the defined
7 geographical area at a comparable price from one or more
8 providers other than the electric utility or an affiliate of
9 the electric utility, and the electric utility has lost or
10 there is a reasonable likelihood that the electric utility
11 will lose business for the service to the other provider or
12 providers; provided, that the Commission may not declare the
13 provision of electric power and energy to be competitive
14 pursuant to this subsection with respect to (i) any retail
15 customer or group of retail customers that is not eligible
16 pursuant to Section 16-104 to take delivery services provided
17 by the electric utility and (ii) any residential and small
18 commercial retail customers prior to the last date on which
19 such customers are required to pay transition charges. In
20 determining whether to grant or deny a petition to declare
21 the provision of electric power and energy competitive, the
22 Commission shall consider, in applying the above criteria,
23 whether there is adequate transmission capacity into the
24 service area of the petitioning electric utility to make
25 electric power and energy reasonably available to the
26 customer segment or group or in the defined geographical area
27 from one or more providers other than the electric utility or
28 an affiliate of the electric utility, in accordance with this
29 subsection. The Commission shall make its determination and
30 issue its final order declaring or refusing to declare the
31 service to be a competitive service within 120 days following
32 the date that the petition is filed, or otherwise the
33 petition shall be deemed to be granted; provided, that if the
34 petition is deemed to be granted by operation of law, the
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1 Commission shall not thereby be precluded from finding and
2 ordering, in a subsequent proceeding initiated by the
3 Commission, and after notice and hearing, that the service is
4 not competitive based on the criteria set forth in this
5 subsection.
6 (b) Any customer except a customer identified in
7 subsection (c) of Section 16-103 who is taking a tariffed
8 service that is declared to be a competitive service pursuant
9 to subsection (a) of this Section shall be entitled to
10 continue to take the service from the electric utility on a
11 tariffed basis for a period of 3 years following the date
12 that the service is declared competitive, or such other
13 period as is stated in the electric utility's tariff pursuant
14 to Section 16-110. This subsection shall not require the
15 electric utility to offer or provide on a tariffed basis any
16 service to any customer (except those customers identified in
17 subsection (c) of Section 16-103) that was not taking such
18 service on a tariffed basis on the date the service was
19 declared to be competitive.
20 (c) If the Commission denies a petition to declare a
21 service to be a competitive service, or determines in a
22 separate proceeding that a service is not competitive based
23 on the criteria set forth in subsection (a), the electric
24 utility may file a new petition no earlier than 6 months
25 following the date of the Commission's order, requesting, on
26 the basis of additional or different facts and circumstances,
27 that the service be declared to be a competitive service.
28 (d) The Commission shall not deny a petition to declare
29 a service to be a competitive service, and shall not find
30 that a service is not a competitive service, on the grounds
31 that it has previously denied the petition of another
32 electric utility to declare the same or a similar service to
33 be a competitive service or has previously determined that
34 the same or a similar service provided by another electric
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1 utility is not a competitive service.
2 (e) An electric utility may declare a service, other
3 than delivery services or the provision of electric power or
4 energy, to be competitive by filing with the Commission at
5 least 14 days prior to the date on which the service is to
6 become competitive a notice describing the service that is
7 being declared competitive and the date on which it will
8 become competitive; provided, that any customer who is taking
9 a tariffed service that is declared to be a competitive
10 service pursuant to this subsection (e) shall be entitled to
11 continue to take the service from the electric utility on a
12 tariffed basis until the electric utility files, and the
13 Commission grants, a petition to declare the service
14 competitive in accordance with subsection (a) of this
15 Section. The Commission shall be authorized to find and
16 order, after notice and hearing in a subsequent proceeding
17 initiated by the Commission, that any service declared to be
18 competitive pursuant to this subsection (e) is not
19 competitive in accordance with the criteria set forth in
20 subsection (a) of this Section.
21 (220 ILCS 5/16-114 new)
22 Sec. 16-114. Recovery of decommissioning charges. On or
23 before April 1, 1999, each electric utility owning an
24 interest in, or having responsibility as a matter of contract
25 or statute for decommissioning costs as defined in Section
26 8-508.1 of, one or more nuclear power plants shall file with
27 the Commission a tariff or tariffs conforming to the
28 provisions of Section 9-201.5 of this Act, to be applicable
29 to each and every kilowatt-hour of electricity delivered or
30 sold at retail in the electric utility's service area,
31 including, but not limited to, sales by the electric utility
32 to tariffed services retail customers, sales by the electric
33 utility to retail customers pursuant to special contracts or
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1 other negotiated arrangements, sales by alternative retail
2 electric suppliers, and sales by an electric utility other
3 than the electric utility in whose service area the retail
4 customer is located; provided, however, that for a user that
5 obtained electric power and energy from its own cogeneration
6 or self-generation facilities on or before January 1, 1997,
7 and subsequently takes services from an alternative retail
8 electric supplier or an electric utility other than the
9 electric utility in whose service area the user is located
10 for any portion of its electric power and energy requirements
11 formerly obtained from those facilities, the tariff required
12 by this Section shall not be applicable in any year to that
13 portion of the user's electric power and energy requirements
14 formerly obtained from those facilities, provided that for
15 the purposes of this Section, such portion shall not exceed
16 the average number of kilowatt-hours per year obtained from
17 the cogeneration or self-generation facilities during the 3
18 years prior to the date on which the user became eligible for
19 delivery services.
20 The Commission shall determine whether the tariff meets
21 the requirements of Sections 9-201 and 9-201.5 and of this
22 Section, and shall permit the electric utility's tariff
23 together with any modifications made after hearing to become
24 effective no later than October 1, 1999. In making its
25 determination, the Commission shall retain the authority it
26 possessed prior to the effective date of this amendatory Act
27 of 1997 to make jurisdictional allocations of decommissioning
28 expense recovery. The tariff filed pursuant to this Section
29 shall be applicable to any user taking some or all of its
30 electric power and energy requirements from an alternative
31 retail electric supplier or from an electric utility other
32 than the electric utility in whose service area the user is
33 located on and after the date that the user becomes eligible
34 for delivery services in accordance with Section 16-104. If
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1 the electric utility has in effect as of the effective date
2 of this amendatory Act of 1997 a decommissioning rate as
3 defined in Section 9-201.5 conforming to the requirements of
4 that Section, the tariff or tariffs required by this Section
5 shall if the electric utility requests be consistent with its
6 decommissioning rate that is already in effect; provided,
7 that the tariff or tariffs filed pursuant to this Section
8 shall provide for the removal from base rates of any
9 decommissioning costs that are included in the electric
10 utility's base rates and their inclusion in the tariff or
11 tariffs required by this Section. The tariff required by this
12 Section shall be included by the Commission in the reviews
13 required by subsection (d) of Section 9-201.5.
14 (220 ILCS 5/16-115 new)
15 Sec. 16-115. Certification of alternative retail electric
16 suppliers.
17 (a) Any alternative retail electric supplier must obtain
18 a certificate of service authority from the Commission in
19 accordance with this Section before serving any retail
20 customer or other user located in this State. An alternative
21 retail electric supplier may request, and the Commission may
22 grant, a certificate of service authority for the entire
23 State or for a specified geographic area of the State.
24 (b) An alternative retail electric supplier seeking a
25 certificate of service authority shall file with the
26 Commission a verified application containing information
27 showing that the applicant meets the requirements of this
28 Section. The alternative retail electric supplier shall
29 publish notice of its application in the official State
30 newspaper within 10 days following the date of its filing.
31 No later than 45 days after the application is properly filed
32 with the Commission, and such notice is published, the
33 Commission shall issue its order granting or denying the
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1 application.
2 (c) An application for a certificate of service
3 authority shall identify the area or areas in which the
4 applicant intends to offer service and the types of services
5 it intends to offer. Applicants that seek to serve
6 residential or small commercial retail customers within a
7 geographic area that is smaller than an electric utility's
8 service area shall submit evidence demonstrating that the
9 designation of this smaller area does not violate Section
10 16-115A. An applicant that seeks to serve residential or
11 small commercial retail customers may state in its
12 application for certification any limitations that will be
13 imposed on the number of customers or maximum load to be
14 served.
15 (d) The Commission shall grant the application for a
16 certificate of service authority if it makes the findings set
17 forth in this subsection based on the verified application
18 and such other information as the applicant may submit:
19 (1) That the applicant possesses sufficient
20 technical, financial and managerial resources and
21 abilities to provide the service for which it seeks a
22 certificate of service authority. In determining the
23 level of technical, financial and managerial resources
24 and abilities which the applicant must demonstrate, the
25 Commission shall consider (i) the characteristics,
26 including the size and financial sophistication, of the
27 customers that the applicant seeks to serve, and (ii)
28 whether the applicant seeks to provide electric power and
29 energy using property, plant and equipment which it owns,
30 controls or operates;
31 (2) That the applicant will comply with all
32 applicable federal, State, regional and industry rules,
33 policies, practices and procedures for the use,
34 operation, and maintenance of the safety, integrity and
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1 reliability, of the interconnected electric transmission
2 system;
3 (3) That the applicant will only provide service to
4 retail customers in an electric utility's service area
5 that are eligible to take delivery services under this
6 Act;
7 (4) That the applicant will comply with such
8 informational or reporting requirements as the Commission
9 may by rule establish and provide the information
10 required by Section 16-112. Any data related to
11 contracts for the purchase and sale of electric power and
12 energy shall be made available for review by the Staff of
13 the Commission on a confidential and proprietary basis
14 and only to the extent and for the purposes which the
15 Commission determines are reasonably necessary in order
16 to carry out the purposes of this Act;
17 (5) That if the applicant, its corporate affiliates
18 or the applicant's principal source of electricity (to
19 the extent such source is known at the time of the
20 application) owns or controls facilities, for public use,
21 for the transmission or distribution of electricity to
22 end-users within a defined geographic area to which
23 electric power and energy can be physically and
24 economically delivered by the electric utility or
25 utilities in whose service area or areas the proposed
26 service will be offered, the applicant, its corporate
27 affiliates or principal source of electricity, as the
28 case may be, provides delivery services to the electric
29 utility or utilities in whose service area or areas the
30 proposed service will be offered that are reasonably
31 comparable to those offered by the electric utility, and
32 provided further, that the applicant agrees to certify
33 annually to the Commission that it is continuing to
34 provide such delivery services and that it has not
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1 knowingly assisted any person or entity to avoid the
2 requirements of this Section. For purposes of this
3 subparagraph, "principal source of electricity" shall
4 mean a single source that supplies at least 65% of the
5 applicant's electric power and energy, and the purchase
6 of transmission and distribution services pursuant to a
7 filed tariff under the jurisdiction of the Federal Energy
8 Regulatory Commission or a state public utility
9 commission shall not constitute control of access to the
10 provider's transmission and distribution facilities;
11 (6) With respect to an applicant that seeks to
12 serve residential or small commercial retail customers,
13 that the area to be served by the applicant and any
14 limitations it proposes on the number of customers or
15 maximum amount of load to be served meet the provisions
16 of Section 16-115A, provided, that the Commission can
17 extend the time for considering such a certificate
18 request by up to 90 days, and can schedule hearings on
19 such a request;
20 (7) That the applicant meets the requirements of
21 subsection (a) of Section 16-128; and
22 (8) That the applicant will comply with all other
23 applicable laws and regulations.
24 (e) A retail customer that owns a cogeneration or
25 self-generation facility and that seeks certification only to
26 provide electric power and energy from such facility to
27 retail customers at separate locations which customers are
28 both (i) owned by, or a subsidiary or other corporate
29 affiliate of, such applicant and (ii) eligible for delivery
30 services, shall be granted a certificate of service authority
31 upon filing an application and notifying the Commission that
32 it has entered into an agreement with the relevant electric
33 utilities pursuant to Section 16-118.
34 (f) The Commission shall have the authority to
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1 promulgate rules and regulations to carry out the provisions
2 of this Section. On or before May 1, 1999, the Commission
3 shall adopt a rule or rules applicable to the certification
4 of those alternative retail electric suppliers that seek to
5 serve only nonresidential retail customers with maximum
6 electrical demands of one megawatt or more which shall
7 provide for (i) expedited and streamlined procedures for
8 certification of such alternative retail electric suppliers
9 and (ii) specific criteria which, if met by any such
10 alternative retail electric supplier, shall constitute the
11 demonstration of technical, financial and managerial
12 resources and abilities to provide service required by
13 subsection (d) (1) of this Section, such as a requirement to
14 post a bond or letter of credit, from a responsible surety or
15 financial institution, of sufficient size for the nature and
16 scope of the services to be provided; demonstration of
17 adequate insurance for the scope and nature of the services
18 to be provided; and experience in providing similar services
19 in other jurisdictions.
20 (220 ILCS 5/16-115A new)
21 Sec. 16-115A. Obligations of alternative retail electric
22 suppliers.
23 (a) An alternative retail electric supplier shall:
24 (i) comply with the requirements imposed on public
25 utilities by Sections 8-201 through 8-207, 8-301, 8-505
26 and 8-507 of this Act, to the extent that these Sections
27 have application to the services being offered by the
28 alternative retail electric supplier; and
29 (ii) continue to comply with the requirements for
30 certification stated in subsection (d) of Section 16-115.
31 (b) An alternative retail electric supplier shall obtain
32 verifiable authorization from a customer, in a form or manner
33 approved by the Commission consistent with Section 2EE of the
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1 Consumer Fraud and Deceptive Business Practices Act, before
2 the customer is switched from another supplier.
3 (c) No alternative retail electric supplier, or electric
4 utility other than the electric utility in whose service area
5 a customer is located, shall (i) enter into or employ any
6 arrangements which have the effect of preventing a retail
7 customer with a maximum electrical demand of less than one
8 megawatt from having access to the services of the electric
9 utility in whose service area the customer is located or (ii)
10 charge retail customers for such access. This subsection
11 shall not be construed to prevent an arms-length agreement
12 between a supplier and a retail customer that sets a term of
13 service, notice period for terminating service and provisions
14 governing early termination through a tariff or contract as
15 allowed by Section 16-119.
16 (d) An alternative retail electric supplier that is
17 certified to serve residential or small commercial retail
18 customers shall not:
19 (1) deny service to a customer or group of
20 customers nor establish any differences as to
21 prices, terms, conditions, services, products,
22 facilities, or in any other respect, whereby such
23 denial or differences are based upon race, gender or
24 income.
25 (2) deny service to a customer or group of
26 customers based on locality nor establish any
27 unreasonable difference as to prices, terms,
28 conditions, services, products, or facilities as
29 between localities.
30 (e) An alternative retail electric supplier shall comply
31 with the following requirements with respect to the
32 marketing, offering and provision of products or services to
33 residential and small commercial retail customers:
34 (i) Any marketing materials which make statements
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1 concerning prices, terms and conditions of service shall
2 contain information that adequately discloses the prices,
3 terms and conditions of the products or services that the
4 alternative retail electric supplier is offering or
5 selling to the customer.
6 (ii) Before any customer is switched from another
7 supplier, the alternative retail electric supplier shall
8 give the customer written information that adequately
9 discloses, in plain language, the prices, terms and
10 conditions of the products and services being offered and
11 sold to the customer.
12 (iii) An alternative retail electric supplier shall
13 provide documentation to the Commission and to customers
14 that substantiates any claims made by the alternative
15 retail electric supplier regarding the technologies and
16 fuel types used to generate the electricity offered or
17 sold to customers.
18 (iv) The alternative retail electric supplier shall
19 provide to the customer (1) itemized billing statements
20 that describe the products and services provided to the
21 customer and their prices, and (2) an additional
22 statement, at least annually, that adequately discloses
23 the average monthly prices, and the terms and conditions,
24 of the products and services sold to the customer.
25 (f) An alternative retail electric supplier may limit
26 the overall size or availability of a service offering by
27 specifying one or more of the following: a maximum number of
28 customers, maximum amount of electric load to be served, time
29 period during which the offering will be available, or other
30 comparable limitation, but not including the geographic
31 locations of customers within the area which the alternative
32 retail electric supplier is certificated to serve. The
33 alternative retail electric supplier shall file the terms and
34 conditions of such service offering including the applicable
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1 limitations with the Commission prior to making the service
2 offering available to customers.
3 (g) Nothing in this Section shall be construed as
4 preventing an alternative retail electric supplier, which is
5 an affiliate of, or which contracts with, (i) an industry or
6 trade organization or association, (ii) a membership
7 organization or association that exists for a purpose other
8 than the purchase of electricity, or (iii) another
9 organization that meets criteria established in a rule
10 adopted by the Commission, from offering through the
11 organization or association services at prices, terms and
12 conditions that are available solely to the members of the
13 organization or association.
14 (220 ILCS 5/16-115B new)
15 Sec. 16-115B. Commission oversight of services provided
16 by alternative retail electric suppliers.
17 (a) The Commission shall have jurisdiction in accordance
18 with the provisions of Article X of this Act to entertain and
19 dispose of any complaint against any alternative retail
20 electric supplier alleging (i) that the alternative retail
21 electric supplier has violated or is in nonconformance with
22 any applicable provisions of Section 16-115 through Section
23 16-115A; (ii) that an alternative retail electric supplier
24 serving retail customers having maximum demands of less than
25 one megawatt has failed to provide service in accordance with
26 the terms of its contract or contracts with such customer or
27 customers; (iii) that the alternative retail electric
28 supplier has violated or is in non-conformance with the
29 delivery services tariff of, or any of its agreements
30 relating to delivery services with, the electric utility,
31 municipal system, or electric cooperative providing delivery
32 services; or (iv) that the alternative retail electric
33 supplier has violated or failed to comply with the
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1 requirements of Sections 8-201 through 8-207, 8-301, 8-505,
2 or 8-507 of this Act as made applicable to alternative retail
3 electric suppliers.
4 (b) The Commission shall have authority, after notice
5 and hearing held on complaint or on the Commission's own
6 motion:
7 (1) To order an alternative retail electric
8 supplier to cease and desist, or correct, any violation
9 of or non-conformance with the provisions of Section
10 16-115 or 16-115A;
11 (2) To impose financial penalties for violations of
12 or non-conformances with the provisions of Section 16-115
13 or 16-115A, not to exceed (i) $10,000 per occurrence or
14 (ii) $30,000 per day for those violations or
15 non-conformances which continue after the Commission
16 issues a cease and desist order; and
17 (3) To alter, modify, revoke or suspend the
18 certificate of service authority of an alternative retail
19 electric supplier for substantial or repeated violations
20 of or non-conformances with the provisions of Section
21 16-115 or 16-115A.
22 (220 ILCS 5/16-116 new)
23 Sec. 16-116. Commission oversight of electric utilities
24 serving retail customers outside their service areas or
25 providing competitive, non-tariffed services.
26 (a) An electric utility that has a tariff on file for
27 delivery services may, without regard to any otherwise
28 applicable tariffs on file, provide electric power and energy
29 to one or more retail customers located outside its service
30 area, but only to the extent (i) such retail customer (A) is
31 eligible for delivery services under any delivery services
32 tariff filed with the Commission by the electric utility in
33 whose service area the retail customer is located and (B) has
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1 either elected to take such delivery services or has paid or
2 contracted to pay the charges specified in Sections 16-108
3 and 16-114, or (ii) if such retail customer is served by a
4 municipal system or electric cooperative, the customer is
5 eligible for delivery services under the terms and conditions
6 for such service established by the municipal system or
7 electric cooperative serving that customer.
8 (b) An electric utility may offer any competitive
9 service to any customer or group of customers without filing
10 contracts with or seeking approval of the Commission,
11 notwithstanding any rule or regulation that would require
12 such approval. The Commission shall not increase or decrease
13 the prices, and may not alter or add to the terms and
14 conditions for the utility's competitive services, from those
15 agreed to by the electric utility and the customer or
16 customers. Non-tariffed, competitive services shall not be
17 subject to the provisions of the Electric Supplier Act or to
18 Articles V, VII, VIII or IX of the Act, except to the extent
19 that any provisions of such Articles are made applicable to
20 alternative retail electric suppliers pursuant to Sections
21 16-115 and 16-115A, but shall be subject to the provisions of
22 subsections (b) through (g) of Section 16-115A, and Section
23 16-115B to the same extent such provisions are applicable to
24 the services provided by alternative retail electric
25 suppliers.
26 (220 ILCS 5/16-117 new)
27 Sec. 16-117. Commission consumer education program.
28 (a) The restructuring of the electricity industry will
29 create a new electricity market with new marketers and
30 sellers offering new goods and services, many of which the
31 average consumer will not be able to readily evaluate. It is
32 the intent of the General Assembly that (i) electricity
33 consumers be provided with sufficient and reliable
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1 information so that they are able to compare and make
2 informed selections of products and services provided in the
3 electricity market; and (ii) mechanisms be provided to enable
4 consumers to protect themselves from marketing practices that
5 are unfair or abusive.
6 (b) The Commission shall implement and maintain a
7 consumer education program to provide residential and small
8 commercial retail customers with information to help them
9 understand their service options in a competitive electric
10 services market, and their rights and responsibilities.
11 (c) The Commission shall form a working group following
12 the enactment of this amendatory Act of 1997. This group
13 shall consist of 5 representatives of the investor-owned
14 electric utilities in this State, 2 of which shall be
15 appointed by electric utilities serving over 1,000,000 retail
16 customers in this State; 2 representatives of alternative
17 retail electric suppliers; 3 representatives of organizations
18 representing the interests of residential and small
19 commercial retail customers; and the Commission.
20 (d) By March 1, 1999, with respect to educational
21 materials for small commercial customers and by November 1,
22 2001 with respect to educational materials for residential
23 customers, the working group appointed pursuant to this
24 Section shall develop a package of printed educational
25 materials which meet the requirements of subsection (e) and
26 shall submit such package to the Commission for approval,
27 along with recommendations for implementing this consumer
28 education program. Such materials shall consider the needs of
29 different types of consumers in this State, such as elderly,
30 low-income, multilingual, minority, rural and disabled
31 customers. The working group shall issue recommendations to
32 the Commission on how such education program can be
33 implemented through a variety of communication methods,
34 including specifically mass media, distribution of printed
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1 material, public service announcements, and posting on the
2 Internet.
3 (e) At a minimum, the materials constituting the
4 consumer education program submitted to the Commission by the
5 working group shall include concise explanations or
6 descriptions of the following:
7 (1) the structure of the electric utility industry
8 following this amendatory Act of 1997 and a glossary of
9 basic terms;
10 (2) the choices available to consumers to take
11 electric service from an alternative retail electric
12 supplier or remain as a retail customer of an electric
13 utility;
14 (3) a customer's rights, risks and responsibilities
15 in receiving service from an alternative retail electric
16 supplier or remaining as a retail customer of an electric
17 utility;
18 (4) the legal obligations of alternative retail
19 electric suppliers;
20 (5) those services that may be offered on a
21 competitive basis in a deregulated electric services
22 market, including services that could be packaged with
23 the delivery of electric power and energy;
24 (6) services that an electric utility is required
25 to provide pursuant to tariffed rates;
26 (7) the components of a bill that could be received
27 by a customer taking delivery services;
28 (8) the complaint procedures set forth in Section
29 10-108 of this Act by which consumers may seek a redress
30 of grievances against an electric utility or an
31 alternative retail electric supplier and a list of phone
32 numbers of the Commission, the Attorney General or other
33 entities that can provide information and assistance to
34 customers; and
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1 (9) additional information available from the
2 Commission upon request.
3 (f) Within 45 days following the submission required of
4 the working group by subsection (d) of this Section, the
5 Commission shall approve or disapprove the educational
6 materials and recommendations for program implementation.
7 The Commission shall be deemed to have approved the
8 educational program materials and recommendations unless the
9 Commission disapproves of any such material or recommendation
10 within 45 days following the date of receipt.
11 (g) Once approved by the Commission, materials
12 comprising the consumer education program contemplated by
13 this Section shall be distributed as follows:
14 (1) Electric utilities shall mail printed
15 educational materials specified by the working group and
16 approved by the Commission (a) to all residential and
17 small commercial retail customers within a reasonable
18 period prior to the date that such customers become
19 eligible to purchase power from alternative retail
20 electric suppliers, such "reasonable period" to be
21 determined by the Commission; and (b) once the applicable
22 customer class becomes eligible to receive delivery
23 services, to all new residential and small commercial
24 retail customers at the time that such customers begin
25 taking services from the electric utility.
26 (2) Alternative retail electric suppliers shall
27 include such materials with all initial mailings to
28 potential residential and small commercial retail
29 customers but in all circumstances prior to the time by
30 which an alternative retail electric supplier executes
31 any agreements or contracts with such customers for the
32 supply of electric services.
33 (3) Both electric utilities and alternative retail
34 electric suppliers shall provide such materials at no
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1 charge to residential and small commercial retail
2 customers upon request.
3 (4) The Commission shall make available upon
4 request and at no charge, and shall make available to the
5 public on the Internet through the State of Illinois
6 World Wide Web Site:
7 (A) all printed educational materials
8 developed by the working group and approved by the
9 Commission;
10 (B) a list of all certified alternative retail
11 electric suppliers serving residential and small
12 commercial retail customers within the service
13 territory of each electric utility;
14 (C) a list of alternative retail electric
15 suppliers serving residential or small commercial
16 retail customers which have been found in the last 3
17 years by the Commission pursuant to Section 10-108
18 to have failed to provide service in accordance with
19 the terms of their contracts with such retail
20 customers; and
21 (D) guidelines to assist customers in
22 determining which energy supplier is most
23 appropriate for each customer.
24 (h) The Commission may also adopt a uniform disclosure
25 form which alternative retail electric suppliers would be
26 required to complete enabling consumers to compare prices,
27 terms and conditions offered by such suppliers.
28 (i) The Commission shall make available to the public
29 staff with the ability and knowledge to respond to consumer
30 inquiries.
31 (j) The costs of printing educational materials approved
32 by the Commission pursuant to this Section shall be payable
33 solely from funding as provided in this subsection.
34 Each year the General Assembly shall appropriate money to
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1 the Commission from the General Revenue Fund for the expenses
2 of the Commission associated with this Section. The cost of
3 the consumer education program contemplated by this Section
4 shall not exceed the amount of such appropriation. In no
5 event shall any electric utility, alternative retail electric
6 supplier or customer be liable for the costs of printing
7 consumer education program material in accordance with this
8 Section. The obligations associated with this consumer
9 education program shall not exceed the amounts appropriated
10 for this program pursuant to this Section.
11 (k) The Commission shall study the effectiveness of the
12 consumer education program. Such study shall include a
13 notice and an opportunity for participation and comment by
14 all interested and potentially affected parties. Such study
15 shall be completed by January 31st of each year during the
16 mandatory transition period and a summary thereof, together
17 with any legislative recommendations, shall be included in
18 the Commission's Annual Report due in accordance with Section
19 4-304 of this Act.
20 (220 ILCS 5/16-118 new)
21 Sec. 16-118. Services provided by electric utilities to
22 alternative retail electric suppliers.
23 (a) It is in the best interest of Illinois energy
24 consumers to promote fair and open competition in the
25 provision of electric power and energy and to prevent
26 anticompetitive practices in the provision of electric power
27 and energy. Therefore, to the extent an electric utility
28 provides electric power and energy or delivery services to
29 alternative retail electric suppliers and such services are
30 not subject to the jurisdiction of the Federal Energy
31 Regulatory Commission, and are not competitive services, they
32 shall be provided through tariffs that are filed with the
33 Commission, pursuant to Article IX of this Act. Each electric
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1 utility shall permit alternative retail electric suppliers to
2 interconnect facilities to those owned by the utility
3 provided they meet established standards for such
4 interconnection, and may provide standby or other services to
5 alternative retail electric suppliers. The alternative retail
6 electric supplier shall sign a contract setting forth the
7 prices, terms and conditions for interconnection with the
8 electric utility and the prices, terms and conditions for
9 services provided by the electric utility to the alternative
10 retail electric supplier in connection with the delivery by
11 the electric utility of electric power and energy supplied by
12 the alternative retail electric supplier.
13 (b) An electric utility shall file a tariff pursuant to
14 Article IX of the Act that would allow alternative retail
15 electric suppliers or electric utilities other than the
16 electric utility in whose service area retail customers are
17 located to issue single bills to the retail customers for
18 both the services provided by such alternative retail
19 electric supplier or other electric utility and the delivery
20 services provided by the electric utility to such customers.
21 The tariff filed pursuant to this subsection shall (i)
22 require partial payments made by retail customers to be
23 credited first to the electric utility's tariffed services,
24 (ii) impose commercially reasonable terms with respect to
25 credit and collection, including requests for deposits, (iii)
26 retain the electric utility's right to disconnect the retail
27 customers, if it does not receive payment for its tariffed
28 services, in the same manner that it would be permitted to if
29 it had billed for the services itself, and (iv) require the
30 alternative retail electric supplier or other electric
31 utility that elects the billing option provided by this
32 tariff to include on each bill to retail customers an
33 identification of the electric utility providing the delivery
34 services and a listing of the charges applicable to such
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1 services. The tariff filed pursuant to this subsection may
2 also include other just and reasonable terms and conditions.
3 In addition, an electric utility, an alternative retail
4 electric supplier or electric utility other than the electric
5 utility in whose service area the customer is located, and a
6 customer served by such alternative retail electric supplier
7 or other electric utility, may enter into an agreement
8 pursuant to which the alternative retail electric supplier
9 or other electric utility pays the charges specified in
10 Section 16-108, or other customer-related charges, including
11 taxes and fees, in lieu of such charges being recovered by
12 the electric utility directly from the customer.
13 (220 ILCS 5/16-119 new)
14 Sec. 16-119. Switching suppliers. An electric utility or
15 an alternative retail electric supplier may establish a term
16 of service, notice period for terminating service and
17 provisions governing early termination through a tariff or
18 contract. A customer may change its supplier subject to
19 tariff or contract terms and conditions. Any notice
20 provisions; or provision for a fee, charge or penalty with
21 early termination of a contract; shall be conspicuously
22 disclosed in any tariff or contract. A customer shall remain
23 responsible for any unpaid charges owed to an electric
24 utility or alternative retail electric supplier at the time
25 it switches to another provider.
26 (220 ILCS 5/16-119A new)
27 Sec. 16-119A. Functional separation.
28 (a) Within 90 days after the effective date of this
29 amendatory Act of 1997, the Commission shall open a
30 rulemaking proceeding to establish standards of conduct for
31 every electric utility described in subsection (b). To
32 create efficient competition between suppliers of generating
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1 services and sellers of such services at retail and
2 wholesale, the rules shall allow all customers of a public
3 utility that distributes electric power and energy to
4 purchase electric power and energy from the supplier of their
5 choice in accordance with the provisions of Section 16-104.
6 In addition, the rules shall address relations between
7 providers of any 2 services described in subsection (b) to
8 prevent undue discrimination and promote efficient
9 competition. Provided, however, that a proposed rule shall
10 not be published prior to May 15, 1999.
11 (b) The Commission shall also have the authority to
12 investigate the need for, and adopt rules requiring,
13 functional separation between the generation services and the
14 delivery services of those electric utilities whose principal
15 service area is in Illinois as necessary to meet the
16 objective of creating efficient competition between suppliers
17 of generating services and sellers of such services at retail
18 and wholesale. After January 1, 2003, the Commission shall
19 also have the authority to investigate the need for, and
20 adopt rules requiring, functional separation between an
21 electric utility's competitive and non-competitive services.
22 (c) In establishing or considering the need for rules
23 under subsections (a) and (b), the Commission shall take into
24 account the effects on the cost and reliability of service
25 and the obligation of the utility to provide bundled service
26 under this Act. The Commission shall adopt rules that are a
27 cost effective means to ensure compliance with this Section.
28 (d) Nothing in this Section shall be construed as
29 imposing any requirements or obligations that are in conflict
30 with federal law.
31 (220 ILCS 5/16-120 new)
32 Sec. 16-120. Development of competitive market;
33 Commission study and reports; investigation.
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1 (a) On or before December 31, 1999 and once every 3 years
2 thereafter, the Commission shall monitor and analyze patterns
3 of entry and exit, applications for entry and exit, and any
4 barriers to entry or participation that may exist, for
5 services provided under this Article; shall analyze any
6 impediments to the establishment of a fully competitive
7 energy and power market in Illinois; and shall include its
8 findings together with appropriate recommendations for
9 legislative action in a report to the General Assembly.
10 (b) Beginning in 2001, and ending in 2006, the
11 Commission shall prepare an annual report regarding the
12 development of electricity markets in Illinois which shall be
13 filed by April 1 of each year with the Joint Committee on
14 Legislative Support Services of the General Assembly and the
15 Governor and which shall be publicly available. Such report
16 shall include, at a minimum, the following information:
17 (1) the aggregate annual peak demand of retail
18 customers in the State of Illinois in the preceding calendar
19 year;
20 (2) the total annual kilowatt-hours delivered and
21 sold to retail customers in the State of Illinois by each
22 electric utility within its own service territory, each
23 electric utility outside its service territory, and
24 alternative retail electric suppliers in the preceding
25 calendar year;
26 (3) the percentage of the total kilowatt-hours
27 delivered and sold to retail customers in the State of
28 Illinois in the preceding calendar year by each electric
29 utility within its service territory, each electric utility
30 outside its service territory, and each alternative retail
31 electric supplier; and
32 (4) any other information the Commission considers
33 significant in assessing the development of Illinois
34 electricity markets, which may include, to the extent
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1 available, information similar to that described in items 1,
2 2 and 3 with respect to cogeneration, self-generation and
3 other sources of electric power and energy provided to
4 customers that do not take delivery services or bundled
5 electric utility services.
6 The Commission may also include such other information as
7 it deems to be necessary or beneficial in describing or
8 explaining the results of its Report. The Report required by
9 this Section shall be adopted by a vote of the full
10 Commission prior to filing. Proprietary or confidential
11 information shall not be disclosed publicly. Nothing
12 contained in this Section shall prohibit the Commission from
13 taking actions that would otherwise be allowed under this
14 Act.
15 (220 ILCS 5/16-121 new)
16 Sec. 16-121. Non-discrimination; adoption of rules and
17 regulations. The Commission shall adopt rules and regulations
18 no later than 180 days after the effective date of this
19 amendatory Act of 1997 governing the relationship between the
20 electric utility and its affiliates, and ensuring
21 nondiscrimination in services provided to the utility's
22 affiliate and any alternative retail electric supplier,
23 including without limitation, cost allocation,
24 cross-subsidization and information sharing.
25 (220 ILCS 5/16-122 new)
26 Sec. 16-122. Customer information.
27 (a) Upon the request of a retail customer, or a person
28 who presents verifiable authorization and is acting as the
29 customer's agent, and payment of a reasonable fee, electric
30 utilities shall provide to the customer or its authorized
31 agent the customer's billing and usage data.
32 (b) Upon request from any alternative retail electric
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1 supplier and payment of a reasonable fee, an electric utility
2 serving retail customers in its service area shall make
3 available generic information concerning the usage, load
4 shape curve or other general characteristics of customers by
5 rate classification. Provided however, no customer specific
6 billing, usage or load shape data shall be provided under
7 this subsection unless authorization to provide such
8 information is provided by the customer pursuant to
9 subsection (a) of this Section.
10 (c) All such customer information shall be made
11 available in a timely fashion in an electronic format, if
12 available.
13 (220 ILCS 5/16-123 new)
14 Sec. 16-123. Establishment of customer information
15 centers for electric utilities and alternative retail
16 electric suppliers. All electric utilities and alternative
17 retail electric suppliers shall be required to maintain a
18 customer call center where customers can reach a
19 representative and receive current information. Customers
20 shall periodically be notified on how to reach the call
21 center. The Commission shall have the authority to establish
22 reporting requirements for such centers.
23 (220 ILCS 5/16-124 new)
24 Sec. 16-124. Metering for residential and small
25 commercial retail customers. An electric utility shall not
26 require a residential or small commercial retail customer to
27 take additional metering or metering capability as a
28 condition of taking delivery services unless the Commission
29 finds, after notice and hearing, that additional metering or
30 metering capability is required to meet reliability
31 requirements. Alternative retail electric suppliers serving
32 such customers may provide such additional metering or
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1 metering capability at their own expense or take such
2 additional metering or metering capability from the utility
3 as a tariffed service. Any additional metering requirements
4 shall be imposed in a nondiscriminatory manner. Nothing in
5 this subsection shall be construed to prevent the normal
6 maintenance, replacement or upgrade of meters as required to
7 comply with Commission rules.
8 (220 ILCS 5/16-125 new)
9 Sec. 16-125. Transmission and distribution reliability
10 requirements.
11 (a) To assure the reliable delivery of electricity to
12 all customers in this State and the effective implementation
13 of the provisions of this Article, the Commission shall,
14 within 180 days of the effective date of this Article, adopt
15 rules and regulations for assessing and assuring the
16 reliability of the transmission and distribution systems and
17 facilities that are under the Commission's jurisdiction.
18 (b) These rules and regulations shall require each
19 electric utility or alternative retail electric supplier
20 owning, controlling, or operating transmission and
21 distribution facilities and equipment subject to the
22 Commission's jurisdiction, referred to in this Section as
23 "jurisdictional entities", to adopt and implement procedures
24 for restoring transmission and distribution services to
25 customers after transmission or distribution outages on a
26 nondiscriminatory basis without regard to whether a customer
27 has chosen the electric utility, an affiliate of the electric
28 utility, or another entity as its provider of electric power
29 and energy. These rules and regulations shall also, at a
30 minimum, specifically require each jurisdictional entity to
31 submit annually to the Commission.
32 (1) the number and duration of planned and
33 unplanned outages during the prior year and their impacts
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1 on customers;
2 (2) outages that were controllable and outages that
3 were exacerbated in scope or duration by the condition of
4 facilities, equipment or premises or by the actions or
5 inactions of operating personnel or agents;
6 (3) customer service interruptions that were due
7 solely to the actions or inactions of an alternative
8 retail electric supplier or a public utility in supplying
9 power or energy;
10 (4) a detailed report of the age, current
11 condition, reliability and performance of the
12 jurisdictional entity's existing transmission and
13 distribution facilities, which shall include, without
14 limitation, the following data:
15 (i) a summary of the jurisdictional entity's
16 outages and voltage variances reportable under the
17 Commission's rules;
18 (ii) the jurisdictional entity's expenditures
19 for transmission construction and maintenance, the
20 ratio of those expenditures to the jurisdictional
21 entity's transmission investment, and the average
22 remaining depreciation lives of the entity's
23 transmission facilities, expressed as a percentage
24 of total depreciation lives;
25 (iii) the jurisdictional entity's expenditures
26 for distribution construction and maintenance, the
27 ratio of those expenditures to the jurisdictional
28 entity's distribution investment, and the average
29 remaining depreciation lives of the entity's
30 distribution facilities, expressed as a percentage
31 of total depreciation lives;
32 (iv) a customer satisfaction survey covering,
33 among other areas identified in Commission rules,
34 reliability, customer service, and understandability
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1 of the jurisdictional entity's services and prices;
2 and
3 (v) the corresponding information, in the same
4 format, for the previous 3 years, if available;
5 (5) a plan for future investment and reliability
6 improvements for the jurisdictional entity's transmission
7 and distribution facilities that will ensure continued
8 reliable delivery of energy to customers and provide the
9 delivery reliability needed for fair and open
10 competition; and
11 (6) a report of the jurisdictional entity's
12 implementation of its plan filed pursuant to subparagraph
13 (5) for the previous reporting period.
14 (c) The Commission rules shall set forth the criteria
15 that will be used to assess each jurisdictional entity's
16 annual report and evaluate its reliability performance. Such
17 criteria must take into account, at a minimum: the items
18 required to be reported in subsection (b); the relevant
19 characteristics of the area served; the age and condition of
20 the system's equipment and facilities; good engineering
21 practices; the costs of potential actions; and the benefits
22 of avoiding the risks of service disruption.
23 (d) At least every 3 years, beginning in the year the
24 Commission issues the rules required by subsection (a) or the
25 following year if the rules are issued after June 1, the
26 Commission shall assess the annual report of each
27 jurisdictional entity and evaluate its reliability
28 performance. The Commission's evaluation shall include
29 specific identification of, and recommendations concerning,
30 any potential reliability problems that it has identified as
31 a result of its evaluation.
32 (e) In the event that more than 30,000 customers of an
33 electric utility are subjected to a continuous power
34 interruption of 4 hours or more that results in the
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1 transmission of power at less than 50% of the standard
2 voltage, or that results in the total loss of power
3 transmission, the utility shall be responsible for
4 compensating customers affected by that interruption for 4
5 hours or more for all actual damages, which shall not
6 include consequential damages, suffered as a result of the
7 power interruption. The utility shall also reimburse the
8 affected municipality, county, or other unit of local
9 government in which the power interruption has taken place
10 for all emergency and contingency expenses incurred by the
11 unit of local government as a result of the interruption. A
12 waiver of the requirements of this subsection may be granted
13 by the Commission in instances in which the utility can show
14 that the power interruption was a result of any one or more
15 of the following causes:
16 (1) Unpreventable damage due to weather events or
17 conditions.
18 (2) Customer tampering.
19 (3) Unpreventable damage due to civil or
20 international unrest or animals.
21 (4) Damage to utility equipment or other actions by
22 a party other than the utility, its employees, agents,
23 or contractors.
24 Loss of revenue and expenses incurred in complying with this
25 subsection may not be recovered from ratepayers.
26 (f) In the event of a power surge or other fluctuation
27 that causes damage and affects more than 30,000 customers,
28 the electric utility shall pay to affected customers the
29 replacement value of all goods damaged as a result of the
30 power surge or other fluctuation unless the utility can show
31 that the power surge or other fluctuation was due to one or
32 more of the following causes:
33 (1) Unpreventable damage due to weather events or
34 conditions.
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1 (2) Customer tampering.
2 (3) Unpreventable damage due to civil or
3 international unrest or animals.
4 (4) Damage to utility equipment or other actions by
5 a party other than the utility, its employees, agents,
6 or contractors.
7 Loss of revenue and expenses incurred in complying with this
8 subsection may not be recovered from ratepayers. Customers
9 with respect to whom a waiver has been granted by the
10 Commission pursuant to subparagraphs (1)-(4) of subsections
11 (e) and (f) shall not count toward the 30,000 customers
12 required therein.
13 (g) Whenever an electric utility must perform planned
14 or routine maintenance or repairs on its equipment that will
15 result in transmission of power at less than 50% of the
16 standard voltage, loss of power, or power fluctuation (as
17 defined in subsection (f)), the utility shall make
18 reasonable efforts to notify potentially affected customers
19 no less than 24 hours in advance of performance of the
20 repairs or maintenance.
21 (h) Remedies provided for under this Section may be
22 sought exclusively through the Illinois Commerce Commission
23 as provided under Section 10-109 of this Act. Damages
24 awarded under this Section for a power interruption shall be
25 limited to actual damages, which shall not include
26 consequential damages, and litigation costs. Damage awards
27 may not be paid out of utility rate funds.
28 (i) The provisions of this Section shall not in any way
29 diminish or replace other civil or administrative remedies
30 available to a customer or a class of customers.
31 (j) The Commission shall by rule require an electric
32 utility to maintain service records detailing information on
33 each instance of transmission of power at less than 50% of
34 the standard voltage, loss of power, or power fluctuation
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1 (as defined in subsection (f)), that affects 10 or more
2 customers. Occurrences that are momentary shall not be
3 required to be recorded or reported. The service record
4 shall include, for each occurrence, the following
5 information:
6 (1) The date.
7 (2) The time of occurrence.
8 (3) The duration of the incident.
9 (4) The number of customers affected.
10 (5) A description of the cause.
11 (6) The geographic area affected.
12 (7) The specific equipment involved in the
13 fluctuation or interruption.
14 (8) A description of measures taken to restore
15 service.
16 (9) A description of measures taken to remedy the
17 cause of the power interruption or fluctuation.
18 (10) A description of measures taken to prevent
19 future occurrence.
20 (11) The amount of remuneration, if any, paid to
21 affected customers.
22 (12) A statement of whether the fixed charge was
23 waived for affected customers.
24 Copies of the records containing this information shall
25 be available for public inspection at the utility's offices,
26 and copies thereof may be obtained upon payment of a fee not
27 exceeding the reasonable cost of reproduction. A copy of
28 each record shall be filed with the Commission and shall be
29 available for public inspection. Copies of the records may
30 be obtained upon payment of a fee not exceeding the
31 reasonable cost of reproduction.
32 (k) The requirements of subsections (e) through (j) of
33 this Section shall apply only to an electric public utility
34 having 1,000,000 or more customers.
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1 (220 ILCS 5/16-125A new)
2 Sec. 16-125A. Consolidated billing provision for
3 established intergovernmental agreement participants.
4 (a) The tariffs of each electric utility serving at
5 least 1,000,000 customers shall permit governmental
6 customers acting through an intergovernmental agreement that
7 was in effect 30 days prior to the date specified in
8 subsection (b) and which provides for these governmental
9 customers to work cooperatively in the purchase of electric
10 energy to aggregate their monthly kilowatt-hour energy usage
11 and monthly kilowatt billing demand.
12 (b) In implementing the provisions of this Section, the
13 rates and charges applicable under the combined billing
14 tariff of the serving utility in effect on May 1, 1997 shall
15 apply to all load of eligible government customers selected
16 by the governmental customers including, but not limited to,
17 load served under contract.
18 (c) For purposes of this Section, "governmental
19 customers" shall mean any customer that is a municipality,
20 municipal corporation, unit of local government, park
21 district, school district, community college district,
22 forest preserve district, special district, public
23 corporation, body politic and corporate, sanitary or water
24 reclamation district, or other local government agencies,
25 including any entity created by intergovernmental agreement
26 among any of the foregoing entities to implement the
27 arrangements permitted by subsections (a) and (b) of this
28 Section.
29 (d) Electric utilities shall file tariffs that comply
30 with the requirements of this Section within 60 days after
31 the effective date of this amendatory Act of 1997.
32 (220 ILCS 5/16-126 new)
33 Sec. 16-126. Membership in an independent system
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1 operator.
2 (a) The General Assembly finds that the establishment of
3 one or more independent system operators or their functional
4 equivalents is required to facilitate the development of an
5 open and efficient marketplace for electric power and energy
6 to the benefit of Illinois consumers. Therefore, each
7 Illinois electric utility owning or controlling transmission
8 facilities or providing transmission services in Illinois and
9 that is a member of the Mid-American Interconnected Network
10 as of the effective date of this amendatory Act of 1997 shall
11 submit for approval to the Federal Energy Regulatory
12 Commission an application for establishing or joining an
13 independent system operator that shall:
14 (1) independently manage and control transmission
15 facilities of any electric utility;
16 (2) provide for nondiscriminatory access to and use
17 of the transmission system for buyers and sellers of
18 electricity;
19 (3) direct the transmission activities of the
20 control area operators;
21 (4) coordinate, plan, and order the installation of
22 new transmission facilities;
23 (5) adopt inspection, maintenance, repair, and
24 replacement standards for the transmission facilities
25 under its control and direct maintenance, repair, and
26 replacement of all facilities under its control; and
27 (6) implement procedures and act to assure the
28 provision of adequate and reliable service.
29 These standards shall be consistent with reliability
30 criteria no less stringent than those established by the
31 Mid-American Interconnected Network and the North American
32 Electric Reliability Council or their successors.
33 (b) The requirements of this Section may be met by
34 joining or establishing a regional independent system
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1 operator that meets the criteria enumerated in subsections
2 (a), (c), and (d) of this Section, as determined by the
3 Commission. To achieve the objectives set forth in subsection
4 (a), the State of Illinois, through the appropriate officers,
5 departments, and agencies, shall work cooperatively with the
6 appropriate officials and agencies of those States contiguous
7 to this State and the Federal Energy Regulatory Commission
8 towards the formation of one or more regional independent
9 system operators.
10 (c) The independent system operator's governance
11 structure must be fair and nondiscriminatory, and the
12 independent system operator must be independent of any one
13 market participant or class of participants. The independent
14 system operator's rules of governance must prevent control,
15 or the appearance of control, of decision-making by any class
16 of participants.
17 (d) Participants in the independent system operator
18 shall make available to the independent system operator all
19 information required by the independent system operator in
20 performance of its functions described herein. The
21 independent system operator and the electric utilities
22 participating in the independent system operator shall make
23 all filings required by the Federal Energy Regulatory
24 Commission. The independent system operator shall ensure that
25 additional filings at the Federal Energy Regulatory
26 Commission request confirmation of the relevant provisions of
27 this amendatory Act of 1997.
28 (e) If a spot market, exchange market, or other
29 market-based mechanism providing transparent real-time market
30 prices for electric power has not been developed, the
31 independent system operator or a closely cooperating agent of
32 the independent system operator may provide an efficient
33 competitive power exchange auction for electric power and
34 energy, open on a nondiscriminatory basis to all suppliers,
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1 which meets the loads of all auction customers at efficient
2 prices.
3 (f) For those electric utilities referred to in
4 subsection (a) which have not filed with the Federal Energy
5 Regulatory Commission by June 30, 1998 an application for
6 establishment or participation in an independent system
7 operator or if such application has not been approved by the
8 Federal Energy Regulatory Commission by March 31, 1999, a 5
9 member Oversight Board shall be formed. The Oversight Board
10 shall (1) oversee the creation of an Illinois independent
11 system operator and (2) determine the composition and initial
12 terms of service of, and appoint the initial members of, the
13 Illinois independent system operator board of directors. The
14 Oversight Board shall consist of the following: (1) 3 persons
15 appointed by the Governor; (2) one person appointed by the
16 Speaker of the House of Representatives; and (3) one person
17 appointed by the President of the Senate. The Oversight Board
18 shall take the steps that are necessary to ensure the
19 earliest possible incorporation of an Illinois independent
20 system operator under the Business Corporation Act of 1983,
21 and shall serve until the Illinois independent system
22 operator is incorporated.
23 (g) After notice and hearing, the Commission shall
24 require each electric utility referred to in subsection (a),
25 that is not participating in an independent system operator
26 meeting the requirements of subsections (a) and (c), to seek
27 authority from the Federal Energy Regulatory Commission to
28 transfer functional control of transmission facilities to the
29 Illinois independent system operator for control by the
30 Illinois independent system operator consistent with the
31 requirements of subsection (a). Upon approval by the Federal
32 Energy Regulatory Commission, electric utilities may also
33 elect to transfer ownership of transmission facilities to the
34 Illinois independent system operator. Nothing in this Act
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1 shall be deemed to preclude the Illinois independent system
2 operator from (1) seeking authority, as necessary, to merge
3 with or otherwise combine its operations with those of one or
4 more other entities authorized to provide transmission
5 services, (2) purchasing or leasing transmission assets from
6 transmission-owning entities not required by this Section to
7 lease transmission facilities to the Illinois independent
8 system operator, or (3) operating as a transmission public
9 utility under the Federal Power Act.
10 (h) Any other owner of transmission facilities in
11 Illinois not required by this Section to participate in an
12 independent system operator shall be permitted, but not
13 required, to become a member of the Illinois independent
14 system operator.
15 (i) The Illinois independent system operator created
16 under this Section, and any other independent system operator
17 authorized by the Federal Energy Regulatory Commission to
18 provide transmission services as a public utility under the
19 Federal Power Act within the State of Illinois, shall be
20 deemed to be a public utility for purposes of Section 8-503
21 and 8-509 of this Act.
22 (j) Electric utilities referred to in subsection (a) may
23 withdraw from the Illinois independent system operator upon
24 becoming a member of an independent system operator or
25 operators conforming with the criteria in subsections (a) and
26 (c) and whose formation and operation has been approved by
27 the Federal Energy Regulatory Commission. This subsection
28 does not relieve any electric utility of any obligations
29 under Federal law.
30 (k) Nothing in this Section shall be construed as
31 imposing any requirements or obligations that are in conflict
32 with federal law.
33 (220 ILCS 5/16-127 new)
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1 Sec. 16-127. Environmental disclosure.
2 (a) Effective January 1, 1999, every electric utility
3 and alternative retail electric supplier shall provide the
4 following information, to the maximum extent practicable,
5 with its bills to its customers on a quarterly basis:
6 (i) the known sources of electricity supplied,
7 broken-out by percentages, of biomass power, coal-fired
8 power, hydro power, natural gas-fired power, nuclear
9 power, oil-fired power, solar power, wind power and other
10 resources, respectively; and
11 (ii) a pie-chart which graphically depicts the
12 percentages of the sources of the electricity supplied as
13 set forth in subparagraph (i) of this subsection.
14 (b) In addition, every electric utility and alternative
15 retail electric supplier shall provide, to the maximum extent
16 practicable, with its bills to its customers on a quarterly
17 basis, a standardized chart in a format to be determined by
18 the Commission in a rule following notice and hearings which
19 provides the amounts of carbon dioxide, nitrous oxides and
20 sulfur dioxide emissions and nuclear waste attributable to
21 the known sources of electricity supplied as set forth in
22 subparagraph (i) of subsection (a) of this Section.
23 (c) The electric utilities and alternative retail
24 electric suppliers may provide their customers with such
25 other information as they believe relevant to the information
26 required in subsections (a) and (b) of this Section.
27 (d) For the purposes of subsection (a) of this Section,
28 "biomass" means dedicated crops grown for energy production
29 and organic wastes.
30 (e) All of the information provided in subsections (a)
31 and (b) of this Section shall be presented to the Commission
32 for inclusion in its World Wide Web Site.
33 (220 ILCS 5/16-128 new)
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1 Sec. 16-128. Provisions related to utility employees
2 during the mandatory transition period.
3 (a) The General Assembly finds:
4 (1) The reliability and safety of the electric
5 system has depended on a workforce of skilled and
6 dedicated employees, equipped with technical training and
7 experience.
8 (2) The integrity and reliability of the system has
9 also depended on the industry's commitment to invest in
10 regular inspection and maintenance, to assure that it can
11 withstand the demands of heavy service requirements and
12 emergency situations.
13 (3) It is in the State's interest to protect the
14 interests of utility employees who have dedicated
15 themselves to assuring reliable service to the citizens
16 of this State, and who might otherwise be economically
17 displaced in a restructured industry.
18 The General Assembly further finds that it is necessary
19 to assure that employees operating in the deregulated
20 industry have the requisite skills, knowledge, and competence
21 to provide reliable and safe electrical service and therefore
22 that alternative retail electric suppliers shall be required
23 to demonstrate the competence of their employees to work in
24 the industry.
25 The knowledge, skill, and competence levels to be
26 demonstrated shall be consistent with those generally
27 required of or by the electric utilities in this State with
28 respect to their employees.
29 Adequate demonstration of requisite knowledge, skill and
30 competence shall include such factors as completion by the
31 employee of an accredited or otherwise recognized
32 apprenticeship program for the particular craft, trade or
33 skill, or specified years of employment with an electric
34 utility performing a particular work function.
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1 To implement this requirement, the Commission, in
2 determining that an applicant meets the standards for
3 certification as an alternative retail electric supplier,
4 shall require the applicant to demonstrate (i) that the
5 applicant is licensed to do business, and bonded, in the
6 State of Illinois; and (ii) that the employees of the
7 applicant that will be installing, operating, and maintaining
8 generation, transmission, or distribution facilities within
9 this State, or any entity with which the applicant has
10 contracted to perform those functions within this State, have
11 the requisite knowledge, skills, and competence to perform
12 those functions in a safe and responsible manner in order to
13 provide safe and reliable service, in accordance with the
14 criteria stated above.
15 (b) The General Assembly finds, based on experience in
16 other industries that have undergone similar transitions,
17 that the introduction of competition into the State's
18 electric utility industry may result in workforce reductions
19 by electric utilities which may adversely affect persons who
20 have been employed by this State's electric utilities in
21 functions important to the public convenience and welfare.
22 The General Assembly further finds that the impacts on
23 employees and their communities of any necessary reductions
24 in the utility workforce directly caused by this
25 restructuring of the electric industry shall be mitigated to
26 the extent practicable through such means as offers of
27 voluntary severance, retraining, early retirement,
28 outplacement and related benefits. Therefore, before any such
29 reduction in the workforce during the transition period, an
30 electric utility shall present to its employees or their
31 representatives a workforce reduction plan outlining the
32 means by which the electric utility intends to mitigate the
33 impact of such workforce reduction on its employees.
34 (c) In the event of a sale, purchase, or any other
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1 transfer of ownership during the mandatory transition period
2 of one or more Illinois divisions or business units, and/or
3 generating stations or generating units, of an electric
4 utility, the electric utility's contract and/or agreements
5 with the acquiring entity or persons shall require that the
6 entity or persons hire a sufficient number of non-supervisory
7 employees to operate and maintain the station, division or
8 unit by initially making offers of employment to the
9 non-supervisory workforce of the electric utility's division,
10 business unit, generating station and/or generating unit at
11 no less than the wage rates, and substantially equivalent
12 fringe benefits and terms and conditions of employment that
13 are in effect at the time of transfer of ownership of said
14 division, business unit, generating station, and/or
15 generating units; and said wage rates and substantially
16 equivalent fringe benefits and terms and conditions of
17 employment shall continue for at least 30 months from the
18 time of said transfer of ownership unless the parties
19 mutually agree to different terms and conditions of
20 employment within that 30-month period. The utility shall
21 offer a transition plan to those employees who are not
22 offered jobs by the acquiring entity because that entity has
23 a need for fewer workers. If there is litigation concerning
24 the sale, or other transfer of ownership of the electric
25 utility's divisions, business units, generating station, or
26 generating units, the 30-month period will begin on the date
27 the acquiring entity or persons take control or management of
28 the divisions, business units, generating station or
29 generating units of the electric utility.
30 (d) If a utility transfers ownership during the
31 mandatory transition period of one or more Illinois
32 divisions, business units, generating stations or generating
33 units of an electric utility to a majority-owned subsidiary,
34 that subsidiary shall continue to employ the utility's
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1 employees who were employed by the utility at such division,
2 business unit or generating station at the time of the
3 transfer under the same terms and conditions of employment as
4 those employees enjoyed at the time of the transfer. If
5 ownership of the subsidiary is subsequently sold or
6 transferred to a third party during the transition period,
7 the transition provisions outlined in subsection (c) shall
8 apply.
9 (e) The plant transfer provisions set forth above shall
10 not apply to any generating station which was the subject of
11 a sales agreement entered into before January 1, 1997.
12 (220 ILCS 5/16-129 new)
13 Sec. 16-129. Existing contracts not affected. Nothing
14 in this Article XVI shall affect the right of an electric
15 utility to continue to provide, or the right of the customer
16 to continue to receive, service pursuant to a contract for
17 electric service between the electric utility and the
18 customer, in accordance with the prices, terms and
19 conditions provided for in that contract. Either the
20 electric utility or the customer may require compliance with
21 the prices, terms and conditions of such contract.
22 (220 ILCS 5/16-130 new)
23 Sec. 16-130. Annual Reports. The General Assembly finds
24 that it is necessary to have reliable and accurate
25 information regarding the transition to a competitive
26 electric industry. In addition to the annual report
27 requirements pursuant to Section 5-109 of this Act, each
28 electric utility shall file with the Commission a report on
29 the following topics in accordance with the schedule set
30 forth in subsection (b) of this Section:
31 (1) Data on each customer class of the electric
32 utility in which delivery services have been elected
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1 including:
2 (A) number of retail customers in each class
3 that have elected delivery service;
4 (B) kilowatt hours consumed by the customers
5 described in subparagraph (A);
6 (C) revenue loss experienced by the utility as
7 a result of customers electing delivery services or
8 market-based prices as compared to continued service
9 under otherwise applicable tariffed rates;
10 (D) total amount of funds collected from each
11 customer class pursuant to the transition charges
12 authorized in Section 16-108;
13 (E) Such other information as the Commission
14 may by rule require.
15 (2) A description of any steps taken by the
16 electric utility to mitigate and reduce its costs,
17 including both a detailed description of steps taken
18 during the preceding calendar year and a summary of steps
19 taken since the effective date of this amendatory Act of
20 1997, and including, to the extent practicable,
21 quantification of the costs mitigated or reduced by
22 specific actions taken by the electric utility.
23 (3) A description of actions taken under Sections
24 5-104, 7-204, 9-220, and 16-111 of this Act. This
25 information shall include but not be limited to:
26 (A) a description of the actions taken;
27 (B) the effective date of the action;
28 (C) the annual savings or additional charges
29 realized by customers from actions taken, by
30 customer class and total for each year;
31 (D) the accumulated impact on customers by
32 customer class and total; and
33 (E) a summary of the method used to quantify
34 the impact on customers.
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1 (4) A summary of the electric utility's use of
2 transitional funding instruments, including a description
3 of the electric utility's use of the proceeds of any
4 transitional funding instruments it has issued in
5 accordance with Article XVIII of this Act.
6 (5) Kilowatt-hours consumed in the twelve months
7 ending December 31, 1996 (which kilowatt-hours are hereby
8 referred to as "base year sales") by customer class
9 multiplied by the revenue per kilowatt hour, adjusted to
10 remove charges added to customers' bills pursuant to
11 Sections 9-221 and 9-222 of this Act, during the twelve
12 months ending December 31, 1996, adjusted for the
13 reductions required by subsection (b) of Section 16-111
14 and the mitigation factors contained in Section 16-102.
15 This amount shall be stated for: (i) each calendar year
16 preceding the year in which a report is required to be
17 submitted pursuant to subsection (b); and (ii) as a
18 cumulative total of all calendar years beginning with
19 1998 and ending with the calendar year preceding the year
20 in which a report is required to be submitted pursuant to
21 subsection (b).
22 (6) Calculations identical to those required by
23 subparagraph (5) except that base year sales shall be
24 adjusted for growth in the electric utility's service
25 territory, in addition to the other adjustments specified
26 by the first sentence of subparagraph (5).
27 (7) The electric utility's total revenue and net
28 income for each calendar year beginning with 1997 through
29 the calendar year preceding the year in which a report is
30 required to be submitted pursuant to subsection (b) as
31 reported in the electric utility's Form 1 report to the
32 Federal Energy Regulatory Commission.
33 (8) Any consideration in excess of the net book
34 cost as of the effective date of this amendatory Act of
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1 1997 received by the electric utility during the year
2 from a sale made subsequent to the effective date of this
3 amendatory Act of 1997 to a non-affiliated third party of
4 any generating plant that was owned by the electric
5 utility on the effective date of this amendatory Act of
6 1997.
7 (9) Any consideration received by the electric
8 utility from sales or transfers during the year to an
9 affiliated interest of generating plant, or other plant
10 that represents an investment of $25,000,000 or more in
11 terms of total depreciated original cost, which
12 generating or other plant were owned by the electric
13 utility prior to the effective date of this amendatory
14 Act of 1997.
15 (10) Any consideration received by an affiliated
16 interest of an electric utility from sales or transfers
17 during the year to a non-affiliated third party of
18 generating plant, but only if: (i) the electric utility
19 had previously sold or transferred such plant to the
20 affiliated interest subsequent to the effective date of
21 this amendatory Act of 1997; (ii) the affiliated interest
22 sells or transfers such plant to a non-affiliated third
23 party prior to December 31, 2006; and (iii) the
24 affiliated interest receives consideration for the sale
25 or transfer of such plant to the non-affiliated third
26 party in an amount greater than the cost or price at
27 which such plant was sold or transferred to the
28 affiliated interest by the electric utility.
29 (b) The information required by subsection (a) shall
30 be filed by each electric utility on or before March 1 of
31 each year 1999 through 2007 or through such additional years
32 as the electric utility is collecting transition charges
33 pursuant to subsection (f) of Section 16-108, for the
34 previous calendar year. The information required by
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1 subparagraph (6) of subsection (a) for calendar year 1997
2 shall be submitted by the electric utility on or before March
3 1, 1999.
4 (c) On or before May 15 of each year 1999 through
5 2006 or through such additional years as the electric utility
6 is collecting transition charges pursuant to subsection (f)
7 of Section 16-108, the Commission shall submit a report to
8 the General Assembly which summarizes the information
9 provided by each electric utility under this Section;
10 provided, however, that proprietary or confidential
11 information shall not be publicly disclosed.
12 (220 ILCS 5/Art. XVII heading new)
13 ARTICLE XVII. ELECTRIC COOPERATIVES AND MUNICIPAL
14 SYSTEMS
15 (220 ILCS 5/17-100 new)
16 Sec. 17-100. Exemption from provisions of this
17 amendatory Act of 1997. Electric cooperatives, as defined in
18 Section 3.4 of the Electric Supplier Act, and public
19 utilities that are owned and operated by any political
20 subdivision, or municipal corporation of this State, or owned
21 by such an entity and operated by any lessee or any operating
22 agent thereof, hereinafter referred to as municipal systems,
23 shall not be subject to the provisions of this amendatory Act
24 of 1997, except as hereinafter provided in this Article XVII.
25 (220 ILCS 5/17-200 new)
26 Sec. 17-200. Election to provide existing or future
27 customers access to alternative retail electric suppliers.
28 (a) An electric cooperative or municipal system each
29 may, by appropriate action and at the sole discretion of the
30 governing body of each, from time to time make one or more
31 elections to cause one or more of the existing or future
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1 customers of each respective system to be eligible to take
2 service from an alternative retail electric supplier for a
3 specified period of time. Provided that, and subject to
4 their authority to serve customers pursuant to the Electric
5 Supplier Act with respect to electric cooperatives and
6 pursuant to the Illinois Municipal Code with respect to
7 municipal systems, each shall continue to provide exclusive
8 distribution facilities for any existing and future customers
9 that the electric cooperative or municipal system are now or
10 in the future otherwise entitled to serve and which customers
11 are now or in the future receiving service provided by an
12 alternative retail electric supplier.
13 (b) Notification of election to provide existing or
14 future customers access to alternative retail electric
15 suppliers. The election by an electric cooperative or
16 municipal system authorizing access to alternative retail
17 electric suppliers for existing or future customers shall be
18 made by filing notice thereof with the Commission and shall
19 be made effective only by such filing.
20 (220 ILCS 5/17-300 new)
21 Sec. 17-300. Election to be an alternative retail
22 electric supplier.
23 (a) An electric cooperative or municipal system may, by
24 appropriate action, and at the sole discretion of the
25 governing body of each, make an election to become an
26 alternative retail electric supplier.
27 (b) Commission authority over an electric cooperative or
28 municipal system electing to be an alternative retail
29 electric supplier. An electric cooperative or municipal
30 system electing to be an alternative retail electric supplier
31 shall provide those services in accordance with Sections
32 16-115A and 16-115B of this Act, to the extent that these
33 Sections have application to the services being offered by
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1 the electric cooperative or municipal system as an
2 alternative retail electric supplier. In no case shall these
3 provisions apply to the existing or future customers taking
4 delivery services from an electric cooperative or municipal
5 system pursuant to their respective authority under the
6 Electric Supplier Act or the Illinois Municipal Code.
7 (c) Notification of election to be an alternative retail
8 electric supplier. Upon filing notice of intent by an
9 electric cooperative or a municipal system to become an
10 alternative retail electric supplier, the Commission shall
11 issue within 45 days a certificate of service authority for
12 the entire State or for a specified geographic area of the
13 State, as specified in the notice. Issuance of a certificate
14 of service authority shall constitute compliance with Section
15 16-115 of this Act.
16 (d) Delivery services provided by electric cooperatives
17 or municipal systems. Municipal systems or electric
18 cooperatives making an election under this Section shall be
19 required to provide delivery services on their respective
20 systems to the electric utility or utilities in whose service
21 area or areas the proposed service will be offered. Such
22 required delivery services to be provided by the electric
23 cooperatives and municipal systems shall be reasonably
24 comparable to the delivery services provided to the electric
25 cooperative's and municipal system's own customers.
26 (e) Exclusive authority over distribution facilities.
27 Provided that, and subject to their authority to serve
28 customers pursuant to the Electric Supplier Act with respect
29 to electric cooperatives and pursuant to the Illinois
30 Municipal Code with respect to municipal systems, each shall
31 continue to provide the exclusive distribution facilities for
32 any existing and future customers that the electric
33 cooperative or municipal system is now or in the future
34 otherwise entitled to serve, and which customers are now or
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1 in the future receiving service provided by an alternative
2 retail electric supplier.
3 (220 ILCS 5/17-400 new)
4 Sec. 17-400. Conditions prohibiting municipal system
5 participation. At no time shall a municipal system make an
6 election under Sections 17-200 or 17-300 of this Article if
7 such election places at risk:
8 (1) Any status held by the municipal system or municipal
9 corporation or political subdivision which provides exemption
10 from State or federal tax statutes; or
11 (2) Any debt, credit instrument or other contractual
12 financial obligation held by, or on behalf of the municipal
13 system which was entered into under an exemption from State
14 or federal tax statutes.
15 (220 ILCS 5/17-500 new)
16 Sec. 17-500. Jurisdiction. Except as provided in the
17 Electric Supplier Act, the Illinois Municipal Code, and this
18 Article XVII, the Commission, or any other agency or
19 subdivision thereof of the State of Illinois or any private
20 entity shall have no jurisdiction over any electric
21 cooperative or municipal system regardless of whether any
22 election or elections as provided for herein have been made,
23 and all control regarding an electric cooperative or
24 municipal system shall be vested in the electric
25 cooperative's board of directors or trustees or the
26 applicable governing body of the municipal system.
27 (220 ILCS 5/17-600 new)
28 Sec. 17-600. Rights of electric cooperatives and
29 municipal systems in conflict herewith. Except as expressly
30 provided for herein, this Article XVII shall not be construed
31 to conflict with the rights of an electric cooperative or a
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1 municipal system as declared in the Electric Supplier Act or
2 as set forth in the Illinois Municipal Code or the public
3 policy against duplication of facilities as set forth
4 therein.
5 (220 ILCS 5/17-700 new)
6 Sec. 17-700. Right to create municipal utility
7 unaffected. Nothing in this amendatory Act of 1997 shall
8 limit the right of a municipality to form a municipal utility
9 in accordance with Article 11, Division 117 of the Illinois
10 Municipal Code and the provisions of this Article XVII shall
11 apply to any municipal utility formed after the effective
12 date of this amendatory Act of 1997.
13 (220 ILCS 5/Art. XVIII heading new)
14 ARTICLE XVIII. ELECTRIC UTILITY TRANSITIONAL FUNDING LAW
15 (220 ILCS 5/18-101 new)
16 Sec. 18-101. Short title and applicability. This Article
17 may be cited as the Electric Utility Transitional Funding Law
18 of 1997 and shall apply to electric utilities as defined in
19 this Article.
20 (220 ILCS 5/18-102 new)
21 Sec. 18-102. Definitions. For the purposes of this
22 Article the following terms shall be defined as set forth in
23 this Section. Terms defined in Article XVI shall have the
24 same meanings in this Article.
25 "Assignee" means any party, other than an electric
26 utility or grantee, to which an interest in intangible
27 transition property shall have been assigned, sold or
28 transferred. The term "assignee" includes any corporation,
29 public authority, trust, financing vehicle, partnership,
30 limited liability company or other entity.
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1 "Grantee" means any party, other than an electric utility
2 or an assignee which acquires its interest from an electric
3 utility, to whom or for whose benefit the Commission shall
4 create, establish and grant rights in, to and under
5 intangible transition property. The term "grantee" includes
6 any corporation, public authority, trust, financing vehicle,
7 partnership, limited liability company or other entity.
8 "Grantee instruments" means (a) any instruments,
9 documents, notes, debentures, bonds or other evidences of
10 indebtedness evidencing any contractual right to receive the
11 payment of money from a grantee or (b) any certificates of
12 participation, certificates of beneficial interest or other
13 instruments evidencing a beneficial or ownership interest in
14 a grantee or in intangible transition property of such
15 grantee which are (i) issued (A) by or on behalf of a grantee
16 pursuant to a transitional funding order and (B) pursuant to
17 an executed indenture, pooling agreement, security agreement
18 or other similar agreement of such grantee creating a
19 security interest, ownership interest or other beneficial
20 interest in intangible transition property and (ii) payable
21 solely from proceeds of intangible transition property,
22 including amounts received with respect to the related
23 instrument funding charges.
24 "Holder" means any holder of transitional funding
25 instruments, including a trustee, collateral agent, nominee
26 or other such party acting for the benefit of such a holder.
27 "Instrument funding charge" means a non-bypassable charge
28 expressed in cents per kilowatt-hour authorized in a
29 transitional funding order to be applied and invoiced to each
30 retail customer, class of retail customers of an electric
31 utility or other person or group of persons obligated to pay
32 any base rates, transition charges or other rates for
33 tariffed services from which such instrument funding charge
34 has been deducted and stated separately pursuant to
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1 subsection (j) of Section 18-104.
2 "Intangible transition property" means the right, title,
3 and interest of an electric utility or grantee or assignee
4 arising pursuant to a transitional funding order to impose
5 and receive instrument funding charges, and all related
6 revenues, collections, claims, payments, money, or proceeds
7 thereof, including all right, title, and interest of an
8 electric utility, grantee or assignee in, to, under and
9 pursuant to such transitional funding order, whether or not
10 such intangible transition property described above is
11 characterized on the books of the electric utility as a
12 regulatory asset or as a cost incurred by the electric
13 utility or otherwise. Intangible transition property shall
14 arise and exist only when, as, and to the extent that
15 instrument funding charges are authorized in a transitional
16 funding order that has become effective in accordance with
17 this Article and shall thereafter continuously exist to the
18 extent provided in the order.
19 "Issuer" means any party, other than an electric utility,
20 which has issued transitional funding instruments. The term
21 "issuer" includes any corporation, public authority, trust,
22 financing vehicle, partnership, limited liability company or
23 other entity.
24 "Transitional funding instruments" means any instruments,
25 pass-through certificates, notes, debentures, certificates of
26 participation, bonds, certificates of beneficial interest or
27 other evidences of indebtedness or instruments evidencing a
28 beneficial interest (i) which are issued by or on behalf of
29 an electric utility or issuer pursuant to a transitional
30 funding order, (ii) which are issued pursuant to an executed
31 indenture, pooling agreement, security agreement or other
32 similar agreement of an electric utility or issuer creating a
33 security interest, ownership interest or other beneficial
34 interest in intangible transition property or grantee
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1 instruments, if any, and (iii) the proceeds of which are to
2 be used for the purposes set forth in subparagraph (1) of
3 subsection (d) of Section 18-103 of this Article.
4 "Transitional funding order" means an order of the
5 Commission issued in accordance with the provisions of this
6 Article creating and establishing intangible transition
7 property and the rights of any party therein and approving
8 the sale, pledge, assignment or other transfer of intangible
9 transition property and grantee instruments, if any, the
10 issuance of transitional funding instruments and grantee
11 instruments, if any, and the imposition and collection of
12 instrument funding charges.
13 (220 ILCS 5/18-103 new)
14 Sec. 18-103. Transitional funding orders.
15 (a) Notwithstanding any other provision of this Act or
16 other law, the Commission is hereby authorized to issue
17 transitional funding orders in accordance with the
18 provisions of this Section, in order to facilitate (i) the
19 issuance of transitional funding instruments by or on behalf
20 of electric utilities or issuers and (ii) the issuance of
21 grantee instruments by or on behalf of grantees.
22 (b) A transitional funding order may be issued by the
23 Commission only upon the application of an electric utility
24 and shall become effective in accordance with its terms only
25 after such electric utility files with the Commission its
26 written consent to all terms and conditions of such order.
27 After the issuance of a transitional funding order, the
28 electric utility or grantee shall retain sole discretion
29 regarding whether to assign, sell, pledge or otherwise
30 transfer intangible transition property and grantee
31 instruments, if any, or to cause transitional funding
32 instruments and grantee instruments, if any, to be issued,
33 including the right to defer or postpone such assignment,
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1 sale, transfer, pledge or issuance or to change the terms
2 thereof as allowed by such order.
3 (c) After the effective date of this amendatory Act of
4 1997, an electric utility may file any number of applications
5 for transitional funding orders. Each application for a
6 transitional funding order shall contain detailed information
7 regarding the electric utility's proposal for (i) the
8 assignment, sale, pledge or other transfer of, or the
9 establishment, creation and granting of rights in and to,
10 intangible transition property and grantee instruments, if
11 any, (ii) the issuance of transitional funding instruments
12 and grantee instruments, if any, (iii) the total dollar
13 amount of intangible transition property to be created and
14 the amount to be sold, pledged, assigned or otherwise
15 transferred or granted hereunder (which amount may be in
16 excess of the principal and interest payable on the
17 transitional funding instruments and grantee instruments, if
18 any, in order to provide for servicing costs and the funding
19 or maintenance of debt service and other reserves, costs and
20 fees as security to the holders of the transitional funding
21 instruments and grantee instruments, if any), (iv) the amount
22 of transitional funding instruments and grantee instruments,
23 if any, to be issued, (v) the amount, expressed in cents per
24 kilowatt-hour, of instrument funding charges to be collected
25 from retail customers or other persons, (vi) the time to
26 maturity for the transitional funding instruments and grantee
27 instruments, if any, and (vii) the electric utility's planned
28 use of the proceeds from the issuance of transitional funding
29 instruments including the amounts allocated for the
30 respective uses specified in subparagraph (1) of subsection
31 (d) of Section 18-103 of this Article.
32 (d) The Commission shall, after proper notice, hold a
33 hearing for the sole purpose of determining whether the
34 application and requested transitional funding order are in
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1 compliance with this Article and shall complete its review of
2 the application and issue its final transitional funding
3 order by no later than 90 days after the filing of such
4 application by the electric utility; provided, that, in
5 contested cases where the public interest is in issue
6 pursuant to subparagraph (1)(B) of this subsection (d) or
7 pursuant to subsection (m) of Section 18-104, the Commission
8 may complete its review and issue its final transitional
9 funding order by no later than 120 days after the filing of
10 such application. The order shall create and establish the
11 proposed intangible transition property in the amount
12 requested by the applicant and approve the proposed sale,
13 pledge, assignment or other transfer of, or the
14 establishment, creation and granting of rights in and to,
15 intangible transition property and grantee instruments, if
16 any, the proposed issuance of transitional funding
17 instruments and grantee instruments, if any, and the proposed
18 imposition and collection of the corresponding instrument
19 funding charges, if the Commission finds that each of the
20 following conditions are met:
21 (1) the electric utility will use the proceeds of
22 the sale and issuance of the transitional funding
23 instruments for one or more of the following purposes:
24 (A) to refinance debt or equity, or both, in a
25 manner which the electric utility reasonably
26 demonstrates will result in an overall reduction in
27 its cost of capital, taking into account the costs
28 of financing; provided, however, that any proceeds
29 transferred to a parent company through a common
30 stock repurchase transaction shall be used to retire
31 publicly traded common stock of the parent company
32 or to pay commercially reasonable transaction costs
33 associated with such retirement;
34 (B) if the Commission finds that the sale or
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1 issuance of transitional funding instruments for the
2 following purposes is in the public interest, then
3 the following uses of proceeds: (i) to repay or
4 retire fuel contracts or obligations related to
5 nuclear spent fuel previously incurred by the
6 electric utility in providing electric power or
7 energy services prior to the effective date of this
8 amendatory Act of 1997 or (ii) to pay any
9 expenditures required to be undertaken by such
10 electric utility by the provisions of Section 16-128
11 of this Act including labor severance costs and
12 employee retraining costs;
13 (C) to fund debt service and other reserves,
14 commercially reasonable costs and fees necessary or
15 desirable in connection with the marketing of the
16 transitional funding instruments and grantee
17 instruments, if any;
18 (D) to pay for commercially reasonable costs
19 associated with the issuance and collateralization
20 of transitional funding instruments and grantee
21 instruments, if any; and
22 (E) to pay for the commercially reasonable
23 costs associated with the issuance of such
24 transitional funding instruments, including the
25 costs incurred since the effective date of this
26 amendatory Act of 1997, or to be incurred, in
27 connection with transactions to recapitalize,
28 refinance or retire stock and/or debt, any
29 associated taxes, and the costs incurred or to be
30 incurred to obtain, collateralize, issue, service
31 and administer transitional funding instruments and
32 grantee instruments, including interest and other
33 related fees, costs and charges;
34 provided, (i) that the transitional funding order shall
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1 require the electric utility to use (1) at least 80% of
2 such proceeds for the purposes specified in subparagraphs
3 (A) and (B) above and (2) no more than 20% of the maximum
4 amount of such proceeds permitted under subparagraph
5 (6)(B) of this subsection for purposes other than those
6 specified in subparagraph (A) above; (ii) that the
7 electric utility's use of such proceeds for the purposes
8 specified in subparagraph (A) above shall not, as of the
9 date of application of such proceeds, result in the
10 common equity component of its capital structure,
11 exclusive of the portion of its capital structure that
12 consists of obligations representing transitional funding
13 instruments or grantee instruments, being reduced below
14 the lesser of (1) 40% and (2) the common equity
15 percentage as of December 31, 1996 adjusted to reflect
16 any write-off of assets or common equity implemented or
17 required to be implemented as a result of this amendatory
18 Act of 1997; and (iii) in no event shall the electric
19 utility use the proceeds of the sale of grantee
20 instruments or transitional funding instruments to repay
21 or retire obligations incurred by any affiliate of the
22 electric utility (other than in connection with any
23 refinancing of grantee instruments or transitional
24 funding instruments issued by such affiliate), without
25 the consent of the Commission;
26 (2) the expected maturity date for the grantee
27 instruments or the transitional funding instruments, and
28 the final date on which the electric utility, grantee or
29 assignee shall be entitled to charge and collect
30 instrument funding charges, shall each be set to occur no
31 later than December 31, 2008, subject to the provisions
32 of subsections (l) and (m) of Section 18-104;
33 (3) the instrument funding charges authorized in
34 such order will be deducted and stated separately from
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1 base rates and transition charges, and, where applicable,
2 other rates for tariffed services, all as provided in
3 subsection (j) of Section 18-104 and in a manner
4 conforming to the allocation of the instrument funding
5 charges implemented pursuant to subparagraph (4) of this
6 subsection;
7 (4) the instrument funding charges authorized in
8 such order shall have been allocated among classes of
9 retail customers in accordance with percentage ratios
10 determined by dividing the base rate revenue from each
11 class by the electric utility's total base rate revenue
12 for the 1996 calendar year;
13 (5) the issuance of the transitional funding
14 instruments will not cause the rates for tariffed
15 services to increase over the rates then in existence as
16 adjusted for the rate decreases provided in subsection
17 (b) of Section 16-111; and
18 (6) the aggregate principal amount of grantee
19 instruments or, if such transitional funding order does
20 not provide for the issuance of grantee instruments,
21 transitional funding instruments, to be issued pursuant
22 to such order, together with the aggregate amount of such
23 instruments issued under any prior orders requested by
24 such electric utility, shall not exceed:
25 (A) during the twelve-month period commencing
26 August 1, 1998, an amount equal to 25% of
27 the applicable electric utility's total
28 capitalization, including both debt and
29 equity, as of December 31, 1996, multiplied
30 by the ratio of the electric utility's
31 revenues from Illinois electric utility
32 retail customers in the 1996 calendar year
33 to its total electric retail revenues for
34 such 1996 year; and
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1 (B) thereafter, an amount equal to 50% of the
2 applicable electric utility's total
3 capitalization, including both debt and
4 equity, as of December 31, 1996 multiplied
5 by the ratio of the electric utility's
6 revenues from Illinois electric utility
7 retail customers in the 1996 calendar year
8 to its total electric retail revenues for
9 such 1996 year.
10 (220 ILCS 5/18-104 new)
11 Sec. 18-104. Terms and provisions of transitional funding
12 orders.
13 (a) Each transitional funding order shall create and
14 establish intangible transition property in an amount not to
15 exceed the sum of (i) the rate base established by the
16 Commission in the electric utility's last rate case prior to
17 the effective date of this amendatory Act of 1997, plus (ii)
18 any expenditures required to be undertaken by such electric
19 utility by the provisions of Section 16-128 of this Act,
20 including labor severance costs and employee retraining
21 costs, plus (iii) amounts necessary to fund debt service and
22 other reserves, commercially reasonable costs and fees
23 necessary in connection with the marketing of the
24 transitional funding instruments and grantee instruments, if
25 any, plus (iv) commercially reasonable costs incurred from
26 and after the effective date of this amendatory Act of 1997
27 or to be incurred which are associated with the issuance and
28 collateralization of transitional funding instruments and
29 grantee instruments, if any, plus (v) commercially reasonable
30 costs incurred from and after the effective date of this
31 amendatory Act of 1997 or to be incurred which are associated
32 with issuance of such transitional funding instruments,
33 including the costs incurred from and after the effective
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1 date of this amendatory Act of 1997, or to be incurred, in
2 connection with transactions to recapitalize, refinance or
3 retire stock and/or debt, any associated taxes and the costs
4 incurred to obtain, collateralize, issue, service and/or
5 administer transitional funding instruments and grantee
6 instruments, if any, including interest and other related
7 fees, costs and charges (all of the foregoing costs described
8 in clauses (i) through (v) above to include any taxes, where
9 applicable, to the extent the costs thereof would otherwise
10 have been recoverable by an electric utility through rates
11 for tariffed services under the Public Utilities Act as in
12 effect prior to this amendatory Act of 1997), minus (vi) the
13 amount of any intangible transition property previously
14 created and established at the request of and for the benefit
15 of such electric utility in a prior transitional funding
16 order. The transitional funding order shall authorize (A)
17 the sale, pledge, assignment or other transfer of, or the
18 establishment, creation and granting of an electric
19 utility's, assignee's or grantee's rights in and to, a
20 specific dollar amount of intangible transition property
21 (which amount may be in excess of the principal and interest
22 payable on the transitional funding instruments and grantee
23 instruments, if any, in order to provide for servicing costs
24 and the funding or maintenance of debt service and other
25 reserves as security to the holders of the transitional
26 funding instruments), (B) the issuance of a specific dollar
27 amount of grantee instruments or, if the transitional funding
28 order does not provide for the issuance of grantee
29 instruments, a specific dollar amount of transitional funding
30 instruments, by or on behalf of an electric utility,
31 assignee, issuer or grantee, as the case may be, and (C) the
32 imposition and collection of a specific amount of instrument
33 funding charges projected to be sufficient to pay when due
34 the principal of and interest on the corresponding grantee
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1 instruments or, if the transitional funding order does not
2 provide for the issuance of grantee instruments, the
3 corresponding transitional funding instruments, in each case,
4 together with premium, servicing fees and other fees, costs
5 and charges related thereto, and to maintain any required
6 reserves. Except as otherwise specifically set forth in the
7 transitional funding order, the transitional funding
8 instruments issued pursuant to such order shall be
9 non-recourse to the credit or to any assets of the electric
10 utility other than any assets comprising intangible
11 transition property or grantee instruments, as applicable.
12 The obligation of retail customers and other persons to pay
13 instrument funding charges shall be contingent upon the
14 receipt by such retail customers and other persons of
15 electric power and energy, the kilowatt hours of which are
16 included in the calculation of the dollar amount of such
17 instrument funding charges, but the transitional funding
18 order shall specifically provide that such instrument funding
19 charges will not be subject to any defense, counterclaim or
20 right of set off arising as a result of failure by the
21 pertinent electric utility, upon whose application the
22 intangible transition property was created, to perform or
23 provide past, present or future services. For purposes of
24 the foregoing sentence, an electric utility or alternative
25 retail electric supplier obligated to pay transition charges
26 under subsection (b) of Section 16-118 on behalf of certain
27 retail customers shall be deemed to have received the
28 electric power and energy provided to such retail customers.
29 The transitional funding order shall also set forth the time
30 to maturity for the grantee instruments or, if the
31 transitional funding order does not provide for the issuance
32 of grantee instruments, the time to maturity for the
33 transitional funding instruments issued thereunder.
34 Concurrently with the sale, pledge, assignment or other
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1 transfer of, or the establishment, creation and granting of
2 an electric utility's, assignee's or grantee's rights in and
3 to, intangible transition property and grantee instruments,
4 if any, and the issuance of transitional funding instruments,
5 an electric utility, grantee, issuer or an assignee shall
6 begin to impose and collect the specified instrument funding
7 charges from retail customers, classes of retail customers,
8 and any other persons or groups of persons as set forth in
9 the pertinent transitional funding order and shall file
10 tariffs in accordance with subsection (j) of Section 18-104
11 of this Article.
12 (b) The transitional funding order shall require that
13 the proceeds from the issuance of transitional funding
14 instruments shall be used for the purposes set forth in
15 subparagraph (1) of subsection (d) of Section 18-103 of this
16 Article.
17 (c) Notwithstanding any other provision of law, neither
18 the transitional funding order nor the intangible transition
19 property created and established thereby nor the instrument
20 funding charges authorized to be imposed and collected
21 thereunder shall be subject to reduction, postponement,
22 impairment or termination by any subsequent action of the
23 Commission; provided, however, that nothing in this paragraph
24 is intended to supersede any right of any party to the
25 Commission's proceeding relating to the transitional funding
26 order to seek judicial review of such transitional funding
27 order.
28 (d) The Commission shall provide in any transitional
29 funding order for a procedure for periodic adjustments to the
30 instrument funding charges set forth therein in order to
31 ensure the repayment in accordance with the projections set
32 forth in the transitional funding order of all grantee
33 instruments or, if such transitional funding order does not
34 provide for the issuance of grantee instruments, the
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1 corresponding transitional funding instruments authorized
2 therein and to reconcile the revenues received from
3 instrument funding charges during the applicable adjustment
4 period with the revenues projected to be received from such
5 charges as set forth in the relevant transitional funding
6 order. Unless the transitional funding order otherwise
7 provides, such adjustments shall be required whenever the
8 instrument funding charges actually collected during the
9 applicable adjustment period by the appropriate party or
10 parties were greater or less than the instrument funding
11 charges projected in the relevant transitional funding order
12 to be collected in such adjustment period; provided that, if
13 so requested by an electric utility in any application for a
14 transitional funding order, the transitional funding order
15 may (i) specify a dollar or percentage amount of variation
16 from the projected revenues within which no such adjustments
17 will be required and/or (ii) set forth a maximum adjustment
18 amount for the instrument funding charges. The electric
19 utility (or such other party as may be specified in the
20 pertinent transitional funding order) shall determine, within
21 90 days of the end of each adjustment period (or such shorter
22 period as may be provided in the documents relating to the
23 pertinent transitional funding instruments or grantee
24 instruments, as applicable), whether any adjustments
25 described above in this subsection (d) of Section 18-104 are
26 required. If any such adjustments are so required, such
27 adjustments shall be implemented by the electric utility,
28 grantee, issuer or assignee, as applicable, with written
29 notice to the Commission, within such 90-day period (or such
30 shorter period as may be provided for in the documents
31 relating to the pertinent transitional funding instruments or
32 grantee instruments, as applicable). Any such adjustment
33 shall be calculated to include amounts necessary for recovery
34 of any additional costs incurred by the grantee, electric
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1 utility, assignee or issuer as a result of the relevant delay
2 in collections of instrument funding charges. If, as a
3 result of any adjustment, the amount of any instrument
4 funding charge, as so adjusted, will exceed an amount per
5 kilowatt-hour greater than the amount per kilowatt-hour of
6 the instrument funding charge initially authorized by the
7 Commission in its transitional funding order, then the
8 relevant electric utility shall be obligated to file
9 amendatory tariffs in compliance with subsection (k) of
10 Section 18-104.
11 (e) Except where this Article specifically requires
12 otherwise, the collection of instrument funding charges and
13 the allocation of any such collections as among holders,
14 assignees, issuers, grantees and any other parties entitled
15 to receive portions thereof, may be accomplished according to
16 the provisions set forth in the applicable transitional
17 funding order, or, if the order is silent on any such
18 matters, according to the provisions set forth in the
19 documents relating to the pertinent transitional funding
20 instruments or grantee instruments, as applicable.
21 Notwithstanding the foregoing, the electric utility, grantee,
22 issuer or assignee, as applicable, shall determine no later
23 than 90 days after the stated maturity date of each series of
24 grantee instruments or, if the related transitional funding
25 order does not provide for the issuance of grantee
26 instruments, the stated maturity date of transitional funding
27 instruments, whether the aggregate amount of instrument
28 funding charges collected prior to such stated maturity date
29 exceeds the amount required to provide for the payment of all
30 principal, interest, premium and servicing and other fees,
31 costs and charges owing under such grantee instruments or
32 transitional funding instruments, as the case may be. If it
33 is determined that the aggregate amount of instrument funding
34 charges collected exceeds the amount required to provide for
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1 the payment of all principal, interest, premium and servicing
2 and other fees, costs and charges related to such grantee
3 instruments or transitional funding instruments, as the case
4 may be, such excess, together with any investment earnings
5 thereon, shall be paid to the owner of the pertinent
6 intangible transition property.
7 (f) Notwithstanding any other provision of law, on such
8 conditions as the Commission may approve in the pertinent
9 transitional funding order, the interest of an electric
10 utility, assignee, issuer or grantee in intangible transition
11 property or grantee instruments, as applicable, may be
12 assigned, sold or otherwise transferred, in whole or in part,
13 and may, in whole or in part, be pledged or assigned as
14 security to or for the benefit of a holder or holders. To
15 the extent that any such interest or portion thereof is
16 assigned, sold or otherwise transferred or is established,
17 created and granted to a grantee or is pledged or assigned as
18 security, the Commission, in the pertinent transitional
19 funding order, shall authorize the electric utility or any
20 affiliate thereof to contract with the grantee, issuer,
21 assignee or holders to collect the applicable instrument
22 funding charges for the benefit and account of the grantee,
23 issuer, assignee or holder, and such electric utility or
24 affiliate will, except as otherwise specified in the
25 transitional funding order, account for and remit the
26 applicable instrument funding charge, without the obligation
27 to remit any investment earnings thereon, to or for the
28 account of the grantee, issuer, assignee or holder. The
29 obligation of such electric utility or affiliate to collect
30 and remit the applicable instrument funding charges hereunder
31 shall continue irrespective of whether such electric utility
32 is providing electric power and/or other services to the
33 retail customers and other persons obligated to pay such
34 instrument funding charges. If the documents creating the
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1 transitional funding instruments or grantee instruments, if
2 any, so provide, such obligations shall, in the event of a
3 default by such electric utility or affiliate in performing
4 such obligations, be undertaken and performed by any other
5 entity selected by the assignee or any holder, group of
6 holders or trustee or agent on behalf of such holder or
7 holders, as the case may be, (i) which provides electric
8 power or services to a person that was a retail customer of
9 such electric utility and (ii) from whom such electric
10 utility is entitled to recover transition charges under
11 Section 16-108; provided, however, that any failure by the
12 designated party to perform such obligations shall not affect
13 the existence of the intangible transition property or the
14 instrument funding charges or the validity or enforceability
15 of the instrument funding charges in accordance with their
16 terms.
17 (g) In its transitional funding order, the Commission
18 shall afford flexibility in establishing the terms and
19 conditions of the transitional funding instruments and the
20 grantee instruments, if any, including repayment schedules,
21 collateral, required debt service and other reserves,
22 interest rates and other financing costs and the ability of
23 the electric utility, at its option, to effect a series of
24 issuances of transitional funding instruments and grantee
25 instruments and correlated assignments, sales, pledges or
26 other transfers of intangible transition property and grantee
27 instruments, if any, not to exceed the aggregate dollar
28 amounts approved in the transitional funding order.
29 (h) The electric utility shall file a statement of the
30 final terms of the issuance of any series of transitional
31 funding instruments or grantee instruments, if any, with the
32 Commission within 90 days of the receipt of proceeds from
33 such issuance. In addition, the Commission may require the
34 electric utility to file periodic reports on its use of the
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1 proceeds at intervals of not less than one year.
2 (i) Any adjustment to instrument funding charges that is
3 necessary due to subsequent refinancing of transitional
4 funding instruments or grantee instruments, if any, shall be
5 authorized by the Commission in a supplemental order.
6 (j) In connection with the issuance of a transitional
7 funding order and as a precondition to the imposition of any
8 instrument funding charges authorized thereby, the relevant
9 electric utility shall file tariffs directing that the amount
10 of such instrument funding charges be deducted, stated, and
11 collected separately from the amounts otherwise billed by
12 such electric utility for base rates and transition charges
13 and, where applicable, other rates for tariffed services as
14 set forth in the transitional funding order. Upon the
15 effectiveness of such tariff, the amounts of instrument
16 funding charges thereby deducted and to be deducted shall
17 have become intangible transition property as specified in
18 the transitional funding order. The Commission shall have no
19 authority to review such tariffs except to confirm that the
20 instrument funding charges authorized in the transitional
21 funding order have been deducted, stated, and collected
22 separately from base rates and transition charges and, where
23 applicable, other rates for tariffed services otherwise in
24 effect at such time, and the filing of any such tariff may
25 not be suspended for any other reason. No such deductions
26 referred to in this subsection shall be construed as a change
27 in or otherwise require a recalculation of the authorized
28 amounts of such base rates, transition charges, and other
29 rates for tariffed services under Section 16-102, 16-107,
30 16-108, or 16-110, as applicable. Instrument funding charges
31 shall be recoverable with respect to electric power and
32 energy or other services for which the deductions provided in
33 this subsection have become effective and no such deduction
34 shall be effective with respect to any services or power in
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1 respect of which instrument funding charges have not been so
2 authorized and imposed.
3 (k) If any adjustment under subsection (d) of Section
4 18-104 results in the amount of any instrument funding charge
5 as so adjusted exceeding an amount per kilowatt-hour greater
6 than the amount per kilowatt-hour of the instrument funding
7 charge initially authorized by the Commission in its
8 transitional funding order, the relevant electric utility
9 shall file amendatory tariffs reducing the amounts otherwise
10 billed by such electric utility for base rates and transition
11 charges or, where applicable, other rates for tariffed
12 services, by the amount of such excess. Such amendatory
13 tariff shall be subject to the provisions of subsection (j)
14 of Section 18-104, except that (i) the failure of such
15 amendatory tariff to become effective for any reason shall
16 not delay or impair the effectiveness of the adjustments
17 required under subsection (d) of Section 18-104 and (ii) the
18 obligation of retail customers and other persons or groups of
19 persons to pay instrument funding charges as so adjusted
20 shall not be subject to any defense, counterclaim or right of
21 set off arising as a result of failure by the pertinent
22 electric utility to comply with this subsection (k) of
23 Section 18-104. Nothing in this subsection (k) of Section
24 18-104 shall restrict any retail customer or other person
25 from bringing any suit in any court or from exercising any
26 other legal or equitable remedy against an electric utility
27 for any failure by such electric utility to comply with this
28 subsection (k) of Section 18-104.
29 (l) The intangible transition property created under a
30 transitional funding order and the authority of the grantee,
31 assignee, issuer, electric utility or other person authorized
32 thereunder to impose and collect instrument funding charges
33 shall continue beyond the final date set forth in the
34 applicable transitional funding order until such time as all
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1 grantee instruments authorized in such order or, if the
2 applicable transitional funding order does not provide for
3 grantee instruments, the related transitional funding
4 instruments authorized in such order, have been paid in full.
5 Upon the later of the final date set forth in the
6 applicable transitional funding order for the imposition and
7 collection of instrument funding charges or the repayment in
8 full of any grantee instruments or transitional funding
9 instruments, as applicable, authorized in such order, the
10 authority to impose and collect the related instrument
11 funding charges shall cease and the relevant electric utility
12 shall be entitled to file tariffs revoking any deductions
13 from base rates, transition charges or other rates for
14 tariffed services which were granted in connection with such
15 instrument funding charges pursuant to subsection (j) of
16 Section 18-104 or subsection (k) of Section 18-104. The
17 Commission shall have no authority to review such tariffs
18 except to determine that the rates and charges resulting from
19 such revocation do not exceed the applicable base rates,
20 transition charges, or other rates for tariffed services
21 which would otherwise have been in effect at the time of such
22 revocation had no instrument funding charges ever been
23 deducted therefrom.
24 (m) If so requested by an electric utility in its
25 application for a transitional funding order, the Commission,
26 in the relevant transitional funding order, may authorize (i)
27 the issuance of grantee instruments and/or transitional
28 funding instruments with expected maturity dates later than
29 December 31, 2008 but not later than December 31, 2010 and
30 (ii) the imposition and collection of instrument funding
31 charges by electric utilities, grantees, or assignees later
32 than December 31, 2008 but not later than December 31, 2010
33 if the electric utility includes in its application a pro
34 forma calculation of the impact of the issuance of the
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1 transitional funding instruments or grantee instruments and
2 the associated use of proceeds on the revenue requirement
3 established by the Commission in the electric utility's last
4 rate case, with such calculation to be presented for
5 illustrative purposes only, and the Commission, in its review
6 of the relevant application for the transitional funding
7 order, finds that such action is in the public interest and
8 that the instrument funding charges to be applied toward
9 payment of transitional funding instruments after December
10 31, 2008 will be deducted, stated, and collected separately
11 from base rates and, where applicable, other rates for
12 tariffed services otherwise in effect at such time and as
13 scheduled to be in effect through such expected maturity
14 date.
15 (220 ILCS 5/18-105 new)
16 Sec. 18-105. Intangible transition property.
17 (a) Notwithstanding any other provision of this Act or
18 other law, the Commission is hereby authorized, in accordance
19 with the application for a transitional funding order, to
20 create, establish and grant rights in, to and under
21 intangible transition property in and to any grantee,
22 electric utility, issuer or assignee, and such party shall be
23 granted the power to levy general tariffs on retail customers
24 of an electric utility or any other person required to pay an
25 instrument funding charge in order to collect the instrument
26 funding charges related to the intangible transition property
27 in which such party has been granted rights and in order to
28 facilitate the issuance of transitional funding instruments
29 and grantee instruments, if any, to, by or on behalf of
30 electric utilities, grantees, issuers or assignees. The
31 Commission shall be authorized to create, establish and grant
32 such rights hereunder in and to such party with or without
33 receiving consideration from such party.
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1 (b) The State pledges to and agrees with the holders of
2 any transitional funding instruments who may enter into
3 contracts with an electric utility, grantee, assignee or
4 issuer pursuant to this Article XVIII that the State will not
5 in any way limit, alter, impair or reduce the value of
6 intangible transition property created by, or instrument
7 funding charges approved by, a transitional funding order so
8 as to impair the terms of any contract made by such electric
9 utility, grantee, assignee or issuer with such holders or in
10 any way impair the rights and remedies of such holders until
11 the pertinent grantee instruments or, if the related
12 transitional funding order does not provide for the issuance
13 of grantee instruments, the pertinent transitional funding
14 instruments and interest, premium and other fees, costs and
15 charges related thereto, as the case may be, are fully paid
16 and discharged. Electric utilities, grantees and issuers are
17 authorized to include these pledges and agreements of the
18 State in any contract with the holders of transitional
19 funding instruments or with any assignees pursuant to this
20 Article XVIII and any assignees are similarly authorized to
21 include these pledges and agreements of the State in any
22 contract with any issuer, holder or any other assignee.
23 Nothing in this Article XVIII shall preclude the State of
24 Illinois from requiring adjustments as may otherwise be
25 allowed by law to the electric utility's base rates,
26 transition charges, delivery services charges, or other
27 charges for tariffed services, so long as any such adjustment
28 does not directly affect or impair any instrument funding
29 charges previously authorized by a transitional funding order
30 issued by the Commission.
31 (c) Transitional funding instruments and grantee
32 instruments, if any, issued under this Article do not
33 constitute debt or liability of the State or of any political
34 subdivision thereof, and transitional funding orders
HB0362 Enrolled -120- LRB9002496JScc
1 authorizing such issuance do not constitute a pledge of the
2 full faith and credit of the State or of any of its political
3 subdivisions. The issuance of transitional funding
4 instruments and grantee instruments, if any, under this
5 Article shall not directly, indirectly or contingently
6 obligate the State or any political subdivision thereof to
7 levy or to pledge any form of taxation therefor or to make
8 any appropriation for their payment, and any such
9 transitional funding instruments and grantee instruments, if
10 any, shall be payable solely from the intangible transition
11 property or grantee instruments, as the case may be, or from
12 such other proceeds or property as may be pledged therefor.
13 Nothing in this Section shall be construed to prevent the
14 State or any political subdivision thereof from owning any
15 interest in a grantee, assignee or issuer or to prevent any
16 electric utility, issuer, grantee or assignee from selling,
17 pledging or assigning intangible transition property or
18 grantee instruments, as the case may be, or from providing
19 recourse or guarantees or any other third-party credit
20 enhancement in connection with such sale, pledge or
21 assignment.
22 (220 ILCS 5/18-106 new)
23 Sec. 18-106. Grantee instruments.
24 (a) If an electric utility to which grantee instruments
25 have been issued discontinues providing electric power and
26 energy services prior to the maturity date of such grantee
27 instruments, such electric utility shall not be entitled to
28 receive any payment on such grantee instruments on and after
29 the date of such discontinuance.
30 (b) Notwithstanding the provisions of subsection (a) of
31 this Section, any assignee holding such grantee instruments
32 or any holder of transitional funding instruments which are
33 secured by such grantee instruments shall nevertheless be
HB0362 Enrolled -121- LRB9002496JScc
1 entitled to recover amounts payable by such grantee under
2 such grantee instruments in accordance with their terms as if
3 such electric utility had not discontinued the provision of
4 electric power and energy.
5 (c) Notwithstanding any other provision of law, the
6 issuance of any grantee instruments in accordance with the
7 terms and provisions of a transitional funding order shall
8 for all purposes be exempt from the application of Article 39
9 of the Criminal Code of 1961 and the Interest Act.
10 (220 ILCS 5/18-107 new)
11 Sec. 18-107. Security interests in intangible transition
12 property and grantee instruments.
13 (a) Notwithstanding any other provision of law, neither
14 intangible transition property, grantee instruments nor any
15 right, title or interest therein, shall constitute property
16 in which a security interest may be created under the Uniform
17 Commercial Code nor shall any such rights be deemed proceeds
18 of any property which is not intangible transition property
19 or grantee instruments, as the case may be. For purposes of
20 the foregoing, the terms "account" and "general intangible"
21 (as defined under Section 9-106 of the Uniform Commercial
22 Code) and the term "instrument" (as defined under Section
23 9-105 of the Uniform Commercial Code) shall, as used in the
24 Uniform Commercial Code, be deemed to exclude any such
25 intangible transition property, grantee instruments or any
26 right, title, or interest therein.
27 (b) The granting, perfection and enforcement of security
28 interests in intangible transition property or grantee
29 instruments are governed by this Section rather than by
30 Article 9 of the Uniform Commercial Code.
31 (c) A valid and enforceable security interest in
32 intangible transition property and in grantee instruments
33 shall attach and be perfected only by the means set forth
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1 below in this subsection (c) of Section 18-107:
2 (1) To the extent transitional funding instruments
3 or grantee instruments are purported to be secured by
4 intangible transition property or to the extent
5 transitional funding instruments are purported to be
6 secured by grantee instruments, as the case may be, as
7 specified in the applicable transitional funding order,
8 the lien of the transitional funding instruments and
9 grantee instruments, if any, shall attach automatically
10 to such intangible transition property and grantee
11 instruments, if any, from the time of issuance of the
12 transitional funding instruments and grantee instruments,
13 if any. Such lien shall be a valid and enforceable
14 security interest in the intangible transition property
15 or the grantee instruments, as the case may be, securing
16 the transitional funding instruments and grantee
17 instruments, if any, and shall be continuously perfected
18 if, before the date of issuance of the applicable
19 transitional funding instruments or grantee instruments,
20 if any, or within no more than 10 days thereafter, a
21 filing has been made by or on behalf of the holder with
22 the Chief Clerk of the Commission stating that such
23 transitional funding instruments or grantee instruments,
24 if any, have been issued. Any such filing made with the
25 Commission in respect to such transitional funding
26 instruments or grantee instruments shall take precedence
27 over any subsequent filing except as may otherwise be
28 provided in the applicable transitional funding order.
29 (2) The liens under subparagraph (1) are
30 enforceable against the electric utility, any assignee,
31 grantee or issuer, and all third parties, including
32 judicial lien creditors, subject only to the rights of
33 any third parties holding security interests in the
34 intangible transition property or grantee instruments
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1 previously perfected in the manner described in this
2 subsection if value has been given by the purchasers of
3 transitional funding instruments or grantee instruments.
4 A perfected lien in intangible transition property and
5 grantee instruments, if any, is a continuously perfected
6 security interest in all then existing or thereafter
7 arising revenues and proceeds arising with respect to the
8 associated intangible transition property or grantee
9 instruments, as the case may be, whether or not the
10 electric power and energy included in the calculation of
11 such revenues and proceeds have been provided. The lien
12 created under this subsection is perfected and ranks
13 prior to any other lien, including any judicial lien,
14 which subsequently attaches to the intangible transition
15 property or grantee instruments, as the case may be, and
16 to any other rights created by the transitional funding
17 order or any revenues or proceeds of the foregoing. The
18 relative priority of a lien created under this subsection
19 is not defeated or adversely affected by changes to the
20 transitional funding order or to the instrument funding
21 charges payable by any retail customer, class of retail
22 customers or other person or group of persons obligated
23 to pay such charges.
24 (3) The relative priority of a lien created under
25 this subsection is not defeated or adversely affected by
26 the commingling of revenues arising with respect to
27 intangible transition property or grantee instruments
28 with funds of the electric utility or other funds of the
29 assignee, issuer or grantee.
30 (4) If an event of default occurs under
31 transitional funding instruments or grantee instruments,
32 the holders thereof or their authorized representatives,
33 as secured parties, may foreclose or otherwise enforce
34 the lien in the grantee instruments or in the intangible
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1 transition property securing the transitional funding
2 instruments or grantee instruments, as applicable,
3 subject to the rights of any third parties holding prior
4 security interests in the intangible transition property
5 or grantee instruments previously perfected in the manner
6 provided in this subsection. Upon application by the
7 holders or their authorized representatives, without
8 limiting their other remedies, the Commission shall order
9 the sequestration and payment to the holders or their
10 authorized representatives of revenues arising with
11 respect to the intangible transition property or grantee
12 instruments pledged to the holders. An order under this
13 subsection shall remain in full force and effect
14 notwithstanding any bankruptcy, reorganization, or other
15 insolvency proceedings with respect to the electric
16 utility, grantee, assignee or issuer.
17 (5) The Commission shall maintain segregated
18 records which reflect the date and time of receipt of all
19 filings made under this subsection. The Commission may
20 provide that transfers of intangible transition property
21 or of grantee instruments be filed in accordance with the
22 same system.
23 (220 ILCS 5/18-108 new)
24 Sec. 18-108. Characterization of transfer. A sale,
25 assignment or other transfer of intangible transition
26 property or grantee instruments which is expressly stated in
27 the documents governing such transaction to be a sale or
28 other absolute transfer, in a transaction approved in a
29 transitional funding order, shall be treated as an absolute
30 transfer of all of the transferor's right, title and interest
31 in, to and under such intangible transition property or
32 grantee instruments which places such transferred property
33 beyond the reach of the transferor or its creditors, as in a
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1 true sale, and not as a pledge or other financing, of such
2 intangible transition property or grantee instruments, as the
3 case may be; provided, however, that whether or not such
4 transfer is deemed to be a sale for federal tax purposes
5 shall be governed by applicable law without regard to this
6 Section 18-108. The characterization of any such transfer as
7 an absolute transfer and the corresponding characterization
8 of the transferee's property interest shall not be defeated
9 or adversely affected by, among other things: (i) the
10 commingling of revenues arising with respect to intangible
11 transition property or grantee instruments, as the case may
12 be, with funds of the electric utility or other funds of the
13 assignee, issuer or grantee; (ii) granting to holders of
14 transitional funding instruments a preferred right to the
15 intangible transition property, whether direct or indirect;
16 (iii) the provision by the electric utility, grantee,
17 assignee, or issuer of any recourse, collateral or credit
18 enhancement with respect to transitional funding instruments
19 or grantee instruments, as the case may be; (iv) the
20 retention by the assigning party of a partial interest in any
21 intangible transition property, whether direct or indirect,
22 or whether subordinate or otherwise; or (v) the electric
23 utility's responsibilities for collecting instrument funding
24 charges and any retention of bare legal title for the purpose
25 of such collection activities; provided, however, that
26 nothing in this Section 18-108 is intended to preclude
27 consideration of such provisions in determining whether or
28 not such transfer is deemed to be a sale for federal tax
29 purposes under other applicable law. A sale, assignment, or
30 other transfer of intangible transition property or grantee
31 instruments, as the case may be, shall be deemed perfected as
32 against third persons, including any judicial lien creditors,
33 when all of the following have taken place:
34 (1) The Commission has issued the transitional
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1 funding order creating the intangible transition
2 property; and
3 (2) A sale, assignment or transfer of the
4 intangible transition property or grantee instruments, as
5 the case may be, has been executed and delivered in
6 writing by the electric utility.
7 (220 ILCS 5/18-109 new)
8 Sec. 18-109. Actions with respect to intangible
9 transition property and related instrument funding charges.
10 (a) Notwithstanding any other provision of this Act or
11 other law, any electric utility, issuer, assignee, grantee or
12 holder shall be expressly permitted hereby to bring action
13 against a retail customer or other person for nonpayment of
14 any instrument funding charges constituting a part of the
15 intangible transition property then held by such electric
16 utility, issuer, assignee, grantee or holder. Notwithstanding
17 any other provision of this Act, any such action shall be
18 subject to any and all applicable consumer credit protection
19 laws and other laws relating to origination, collection and
20 reporting of consumer credit obligations.
21 (b) Notwithstanding any other provision of this Act or
22 other law, the Commission shall have exclusive jurisdiction
23 over any dispute arising out of the obligations to impose and
24 collect instrument funding charges of an electric utility,
25 its successor or any other entity which provides electric
26 power or energy or delivery services to a person from whom
27 the electric utility is authorized to recover transition
28 charges under Section 16-108. Nothing in this Section shall
29 prevent holders from bringing any suit in any court or from
30 exercising any other legal or equitable remedy against an
31 electric utility for failure to distribute collections of
32 instrument funding charges from retail customers, classes of
33 retail customers or other persons or from bringing suit
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1 against an electric utility for damages arising from any
2 failure by such electric utility to perform the contractual
3 obligations agreed to by it under any documents pertaining to
4 or executed in connection with the transitional funding
5 instruments issued by or on behalf of such electric utility.
6 (220 ILCS 5/18-110 new)
7 Sec. 18-110. Taxation of transfers of intangible
8 transition property and grantee instruments.
9 (a) Any sale, pledge, assignment or other transfer of
10 intangible transition property and grantee instruments, if
11 any, shall be exempt from any State or local sales, income,
12 transfers, gains, receipts or similar taxes.
13 (b) Any transfer of intangible transition property and
14 grantee instruments, if any, shall be treated as a pledge or
15 other financing for State tax purposes, including State and
16 local income and franchise taxes, unless the documents
17 governing such transfer specifically state that the transfer
18 is intended to be treated otherwise.
19 (225 ILCS 5/18-111 new)
20 Sec. 18-111. Limitations on issuance of transitional
21 funding orders, collection of instrument funding charges, and
22 use of proceeds from issuance of transitional funding
23 instruments and grantee instruments.
24 Notwithstanding any other provisions of this Article
25 XVIII:
26 (1) The Commission shall be prohibited from issuing any
27 transitional funding order prior to January 1, 1998, and no
28 electric utility shall issue any transitional funding
29 instrument or grantee instrument, prior to August 1, 1998, or
30 after December 31, 2004.
31 (2) The Commission shall be authorized to include in any
32 transitional funding order an expiration date after which
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1 date the electric utility shall no longer be authorized to
2 issue transitional funding instruments or grantee instruments
3 pursuant to such order, provided, that any such expiration
4 date specified in a transitional funding order shall be no
5 earlier than 24 months following the date of issuance of the
6 relevant transitional funding order.
7 (3) No electric utility shall be allowed to increase its
8 rates for tariffed services, including delivery charges, or
9 its transition charges, above the level or levels which would
10 have been allowed in accordance with this Act if the electric
11 utility were not authorized to impose and collect instrument
12 funding charges.
13 (4) Any transitional funding order issued by the
14 Commission shall set forth, based on the information set
15 forth in the electric utility's application, the procedures
16 to be followed by the electric utility for assuring that
17 proceeds from the issuance of the transitional funding
18 instruments or grantee instruments authorized by such order
19 are applied in accordance with the terms of the order. Any
20 use by an electric utility of the proceeds from issuance of
21 transitional funding instruments or grantee instruments other
22 than in accordance with the purposes specified in the
23 relevant transitional funding order of the Commission,
24 pursuant to subsection (d) of Section 18-103, shall be void.
25 Section 10. The Public Utilities Act is amended by
26 changing Sections 3-105, 5-104, 6-102, 7-101, 7-102, 7-204,
27 7-206, 8-406, 8-503, 8-510, 9-201.5, 9-220, 9-244, and 10-113
28 and adding Section 4-404 as follows:
29 (220 ILCS 5/3-105) (from Ch. 111 2/3, par. 3-105)
30 Sec. 3-105. Public utility. "Public utility" means and
31 includes, except where otherwise expressly provided in this
32 Section, every corporation, company, limited liability
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1 company, association, joint stock company or association,
2 firm, partnership or individual, their lessees, trustees, or
3 receivers appointed by any court whatsoever that owns,
4 controls, operates or manages, within this State, directly or
5 indirectly, for public use, any plant, equipment or property
6 used or to be used for or in connection with, or owns or
7 controls any franchise, license, permit or right to engage
8 in:
9 a. the production, storage, transmission, sale,
10 delivery or furnishing of heat, cold, power, electricity,
11 water, or light, except when used solely for
12 communications purposes;
13 b. the disposal of sewerage; or
14 c. the conveyance of oil or gas by pipe line.
15 "Public utility" does not include, however:
16 1. public utilities that are owned and operated by
17 any political subdivision, public institution of higher
18 education or municipal corporation of this State, or
19 public utilities that are owned by such political
20 subdivision, public institution of higher education, or
21 municipal corporation and operated by any of its lessees
22 or operating agents;
23 2. water companies which are purely mutual
24 concerns, having no rates or charges for services, but
25 paying the operating expenses by assessment upon the
26 members of such a company and no other person;
27 3. electric cooperatives as defined in Section
28 3-119;
29 4. residential natural gas cooperatives that are
30 not-for-profit corporations established for the purpose
31 of administering and operating, on a cooperative basis,
32 the furnishing of natural gas to residences for the
33 benefit of their members who are residential consumers of
34 natural gas. For entities qualifying as residential
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1 natural gas cooperatives and recognized by the Illinois
2 Commerce Commission as such, the State shall guarantee
3 legally binding contracts entered into by residential
4 natural gas cooperatives for the express purpose of
5 acquiring natural gas supplies for their members. The
6 Illinois Commerce Commission shall establish rules and
7 regulations providing for such guarantees. The total
8 liability of the State in providing all such guarantees
9 shall not at any time exceed $1,000,000, nor shall the
10 State provide such a guarantee to a residential natural
11 gas cooperative for more than 3 consecutive years;
12 5. sewage disposal companies which provide sewage
13 disposal services on a mutual basis without establishing
14 rates or charges for services, but paying the operating
15 expenses by assessment upon the members of the company
16 and no others;
17 6. (Blank);
18 7. cogeneration facilities, small power production
19 facilities, and other qualifying facilities, as defined
20 in the Public Utility Regulatory Policies Act and
21 regulations promulgated thereunder, except to the extent
22 State regulatory jurisdiction and action is required or
23 authorized by federal law, regulations, regulatory
24 decisions or the decisions of federal or State courts of
25 competent jurisdiction; and
26 8. the ownership or operation of a facility that
27 sells compressed natural gas at retail to the public for
28 use only as a motor vehicle fuel and the selling of
29 compressed natural gas at retail to the public for use
30 only as a motor vehicle fuel; and.
31 9. alternative retail electric suppliers as defined
32 in Article XVI.
33 For the purpose of the least-cost planning obligations of
34 Section 8-401 and for all of Section 8-402, the Illinois
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1 Commerce Commission may, for good cause shown in individual
2 cases, exclude from the meaning of "public utility" the
3 electric operations of any public utility, as otherwise
4 defined in this Act, which serves less than 20,000 electric
5 customers within the State of Illinois, or the gas operations
6 of any public utility, as otherwise defined in this Act,
7 which serves less than 20,000 gas customers within the State
8 of Illinois.
9 (Source: P.A. 88-480; 89-42, eff. 1-1-96.)
10 (220 ILCS 5/4-404 new)
11 Sec. 4-404. Protection of confidential and proprietary
12 information. The Commission shall provide adequate
13 protection for confidential and proprietary information
14 furnished, delivered or filed by any person, corporation or
15 other entity.
16 (220 ILCS 5/5-104) (from Ch. 111 2/3, par. 5-104)
17 Sec. 5-104. Depreciation accounts.
18 (a) The Commission shall have power, after hearing, to
19 require any or all public utilities, except electric public
20 utilities, to keep such accounts as will adequately reflect
21 depreciation, obsolescence and the progress of the arts. The
22 Commission may, from time to time, ascertain and determine
23 and by order fix the proper and adequate rate of depreciation
24 of the several classes of property for each public utility;
25 and each public utility shall conform its depreciation
26 accounts to the rates so ascertained, determined and fixed.
27 (b) The Commission shall have the power, after hearing,
28 to require any or all electric public utilities to keep such
29 accounts as will adequately reflect depreciation,
30 obsolescence, and the progress of the arts. The Commission
31 may, from time to time, ascertain and determine and by order
32 fix the proper and adequate rate of depreciation of the
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1 several classes of property for each electric public utility;
2 and each electric public utility shall thereafter, absent
3 further order of the Commission, conform its depreciation
4 accounts to the rates so ascertained, determined and fixed
5 until at least the end of the first full calendar year
6 following the date of such determination.
7 (c) An electric public utility may from time to time
8 alter the annual rates of depreciation, which for purposes of
9 this subsection (c) and subsection (d) shall include
10 amortization, that it applies to its several classes of
11 assets so long as the rates are consistent with generally
12 accepted accounting principles. The electric public utility
13 shall file a statement with the Commission which shall set
14 forth the new rates of depreciation and which shall contain a
15 certification by an independent certified public accountant
16 that the new rates of depreciation are consistent with
17 generally accepted accounting principles. Upon the filing of
18 such statement, the new rates of depreciation shall be deemed
19 to be approved by the Commission as the rates of depreciation
20 to be applied thereafter by the public utility as though an
21 order had been entered pursuant to subsection (b).
22 (d) In any proceeding conducted pursuant to Section
23 9-201 or 9-202 to set an electric public utility's rates for
24 service, the Commission may determine not to use, in
25 determining the depreciation expense component of the public
26 utility's rates for service, the rates of depreciation
27 established pursuant to subsection (c), if the Commission in
28 that proceeding finds based on the record that different
29 rates of depreciation are required to adequately reflect
30 depreciation, obsolescence and the progress of the arts, and
31 fixes by order and uses for purposes of that proceeding new
32 rates of depreciation to be thereafter employed by the
33 electric public utility until the end of the first full
34 calendar year following the date of the determination and
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1 thereafter until altered in accordance with subsection (b) or
2 (c) of this Section.
3 (Source: P.A. 84-617.)
4 (220 ILCS 5/6-102) (from Ch. 111 2/3, par. 6-102)
5 Sec. 6-102. Authorization of issues of stock.
6 (a) Subject to the provisions of this Act and of the
7 order of the Commission issued as provided in this Act, a
8 public utility may issue stocks and stock certificates, and
9 bonds, notes and other evidences of indebtedness payable at
10 periods of more than 12 months after the date thereof for any
11 lawful purpose. However, such public utility shall first have
12 secured from the Commission an order authorizing such issue
13 and stating the amount thereof and the purpose or purposes to
14 which the issue or the proceeds thereof are to be applied,
15 and that in the opinion of the Commission, the money,
16 property or labor to be procured or paid for by such issue is
17 reasonably required for the purpose or purposes specified in
18 the order.
19 (b) The provisions of this subsection (b) shall apply
20 only to (1) any issuances of stock in a cumulative amount,
21 exclusive of any issuances referred to in item (3), that are
22 10% or more in a calendar year or 20% or more in a 24-month
23 period of the total common stockholders' equity or of the
24 total amount of preferred stock outstanding, as the case may
25 be, of the public utility, and (2) to any issuances of bonds,
26 notes or other evidences of indebtedness in a cumulative
27 principal amount, exclusive of any issuances referred to in
28 item (3), that are 10% or more in a calendar year or 20% or
29 more in a 24-month period of the aggregate principal amount
30 of bonds, notes and other evidences of indebtedness of the
31 public utility outstanding, all as of the date of the
32 issuance, but shall not apply to (3) any issuances of stock
33 or of bonds, notes or other evidences of indebtedness 90% or
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1 more of the proceeds of which are to be used by the public
2 utility for purposes of refunding, redeeming or refinancing
3 outstanding issues of stock, bonds, notes or other evidences
4 of indebtedness. To enable it to determine whether it will
5 issue the such order required by subsection (a) of this
6 Section, the Commission may shall hold a hearing and may make
7 such additional inquiry or investigation, and examine such
8 witnesses, books, papers, accounts, documents and contracts
9 and require the filing of such data as it may deem of
10 assistance. The public utility may be required by the
11 Commission to disclose every interest of the directors of
12 such public utility in any transaction under investigation.
13 The Commission shall have power to investigate all such
14 transactions and to inquire into the good faith thereof, to
15 examine books, papers, accounts, documents and contracts of
16 public utilities, construction or other companies or of firms
17 or individuals with whom the public utility shall have had
18 financial transactions, for the purpose of enabling it to
19 verify any statements furnished, and to examine into the
20 actual value of property acquired by or services rendered to
21 such public utility. Before issuing its order, the
22 Commission, when it is deemed necessary by the Commission,
23 shall make an adequate physical valuation of all property of
24 the public utility, but a valuation already made under proper
25 public supervision may be adopted, either in whole or in
26 part, at the discretion of the Commission; and shall also
27 examine all previously authorized or outstanding securities
28 of the public utility, and fixed charges attached thereto. A
29 statement of the results of such physical valuation, and a
30 statement of the character of all outstanding securities,
31 together with the conditions under which they are held, shall
32 be included in the order. The Commission may require that
33 such information or such part thereof as it thinks proper,
34 shall appear upon the stock, stock certificate, bond, note or
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1 other evidence of indebtedness authorized by its order. The
2 Commission may by its order grant permission for the issue of
3 such stock certificates, or bonds, notes or other evidences
4 of indebtedness in the amount applied for, or in a lesser
5 amount, or not at all, and may attach to the exercise of its
6 permission such condition or conditions as it may deem
7 reasonable and necessary. Nothing in this Section shall
8 prevent a public utility from seeking, nor the Commission
9 from approving, a shelf registration plan for issuing
10 securities over a reasonable period in accordance with
11 regulations established by the United States Securities and
12 Exchange Commission. Any securities issued pursuant to an
13 approved shelf registration plan need not be further approved
14 by the Commission so long as they are in compliance with the
15 approved shelf registration plan. The Commission shall have
16 the power to refuse its approval of applications to issue
17 securities, in whole or in part, upon a finding that the
18 issue of such securities would be contrary to public
19 interest. The Commission may also require the public utility
20 to compile for the information of its shareholders such facts
21 in regard to its financial transactions, in such form as the
22 Commission may direct.
23 No public utility shall, without the consent of the
24 Commission, apply the issue of any stock or stock
25 certificates, or bond, note or other evidence of
26 indebtedness, which was issued pursuant to an order of the
27 Commission entered pursuant to this subsection (b), or any
28 part thereof, or any proceeds thereof, to any purpose not
29 specified in the Commission's order or to any purpose
30 specified in the Commission's order in excess of the amount
31 authorized for such purpose; or issue or dispose of the same
32 on any terms less favorable than those specified in such
33 order, or a modification thereof. The Commission shall have
34 the power to require public utilities to account for the
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1 disposition of the proceeds of all sales of stocks and stock
2 certificates, and bonds, notes and other evidences of
3 indebtedness, which were issued pursuant to an order of the
4 Commission entered pursuant to this subsection (b), in such
5 form and detail as it may deem advisable, and to establish
6 such rules and regulations as it may deem reasonable and
7 necessary to insure the disposition of such proceeds for the
8 purpose or purposes specified in its order.
9 (c) A public utility may issue notes, for proper
10 purposes, and not in violation of any provision of this Act
11 or any other Act, payable at periods of not more than 12
12 months after the date of issuance of the same, without the
13 consent of the Commission; but no such note shall, in whole
14 or in part, be renewed or be refunded from the proceeds of
15 any other such note or evidence of indebtedness from time to
16 time without the consent of the Commission for an aggregate
17 period of longer than 2 two years.
18 (d) Any issuance of stock or of bonds, notes or other
19 evidences of indebtedness, other than issuances of notes
20 pursuant to subsection (c) of this Section, which is not
21 subject to subsection (b) of this Section, shall be regulated
22 by the Commission as follows: the public utility shall file
23 with the Commission, at least 15 days before the date of the
24 issuance, an informational statement setting forth the type
25 and amount of the issue and the purpose or purposes to which
26 the issue or the proceeds thereof are to be applied. Prior
27 to the date of the issuance specified in the public utility's
28 filing, the Commission, if it finds that the issuance is not
29 subject to subsection (b) of this Section, shall issue a
30 written order in conformance with subsection (a) of this
31 Section authorizing the issuance. Notwithstanding any other
32 provisions of this Act, the Commission may delegate its
33 authority to enter the order required by this subsection (d)
34 to a hearing examiner.
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1 (e) The Commission shall have no power to authorize the
2 capitalization of the right to be a corporation, or to
3 authorize the capitalization of any franchise, license, or
4 permit whatsoever or the right to own, operate or enjoy any
5 such franchise, license, or permit, in excess of the amount
6 (exclusive of any tax or annual charge) actually paid to the
7 State or to a political subdivision thereof as the
8 consideration for the grant of such franchise, license,
9 permit or right; nor shall any contract for consolidation or
10 lease be capitalized, nor shall any public utility hereafter
11 issue any bonds, notes or other evidences of indebtedness
12 against or as a lien, upon any contract for consolidation or
13 merger.
14 (f) The provisions of this Section shall not apply to
15 public utilities which are not corporations duly incorporated
16 under the laws of this State to the extent that any such
17 public utility may issue stock, bonds, notes or other
18 evidences of indebtedness not directly or indirectly
19 constituting or creating a lien or charge on, or right to
20 profits from, any property used or useful in rendering
21 service within this State. Nothing in this Section or in
22 Section 6-104 of this Act shall be construed to require a
23 common carrier by railroad subject to Part I of the
24 Interstate Commerce Act, being part of an Act of the 49th
25 Congress of the United States entitled "An Act to Regulate
26 Commerce", as amended, to secure from the Commission
27 authority to issue or execute or deliver any conditional
28 sales contract or similar contract or instrument reserving or
29 retaining title in the seller for all or part of the purchase
30 price of equipment or property used or to be used for or in
31 connection with the transportation of persons or property.
32 (Source: P.A. 84-617.)
33 (220 ILCS 5/7-101) (from Ch. 111 2/3, par. 7-101)
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1 Sec. 7-101. Transactions with affiliated interests.
2 (1) The Commission shall have jurisdiction over holders
3 of the voting capital stock of all public utilities under the
4 jurisdiction of the Commission to such extent as may be
5 necessary to enable the Commission to require the disclosure
6 of the identity in respective interests of every owner of any
7 substantial interest in such voting capital stocks. One per
8 centum or more is a substantial interest, within the meaning
9 of this subdivision.
10 (2) (i) Except as provided in subparagraph (ii) of this
11 subsection (2), tThe Commission shall have jurisdiction over
12 affiliated interests having transactions, other than
13 ownership of stock and receipt of dividends thereon, with
14 public utilities under the jurisdiction of the Commission, to
15 the extent of access to all accounts and records of such
16 affiliated interests relating to such transactions, including
17 access to accounts and records of joint or general expenses,
18 any portion of which may be applicable to such transactions;
19 and to the extent of authority to require such reports with
20 respect to such transactions to be submitted by such
21 affiliated interests, as the Commission may prescribe.
22 (ii) The Commission shall have jurisdiction over
23 affiliated interests having transactions, other than
24 ownership of stock and receipt of dividends thereon, with
25 electric and gas public utilities under the jurisdiction of
26 the Commission, to the extent of access to all accounts and
27 records of such affiliated interests relating to such
28 transactions, including access to accounts and records of
29 joint and general expenses with the electric or gas public
30 utility any portion of which is related to such transactions;
31 and to the extent of authority to require such reports with
32 respect to such transactions to be submitted by such
33 affiliated interests, as the Commission may prescribe;
34 provided, however, that prior to requesting such access or
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1 reports from the affiliated interest, the Commission shall
2 first seek to obtain the information that would be included
3 in such accounts, records or reports from the public utility.
4 The Commission shall not have access to any accounts and
5 records of, or require any reports from, an affiliated
6 interest that are not related to a transaction, including
7 without limitation a transfer or exchange of tangible or
8 intangible assets, with the electric or gas public utility.
9 Nothing in this paragraph shall limit the authority of the
10 Commission otherwise provided under this Act to have access
11 to accounts and records of, or to require reports from, the
12 electric or gas public utility or to prescribe guidelines
13 which the electric or gas public utility must follow in
14 allocating costs to transactions with affiliated interests.
15 For the purpose of this Section, the phrase "affiliated
16 interests" means:
17 (a) Every corporation and person owning or holding,
18 directly or indirectly, 10% or more of the voting capital
19 stock of such public utility;
20 (b) Every corporation and person in any chain of
21 successive ownership of 10% or more of voting capital stock;
22 (c) Every corporation, 10% or more of whose voting
23 capital stock is owned by any person or corporation owning
24 10% or more of the voting capital stock of such public
25 utility, or by any person or corporation in any such chain of
26 successive ownership of 10% or more of voting capital stock;
27 (d) Every corporation, 10% or more of whose voting
28 securities is owned, directly or indirectly by such public
29 utility;
30 (e) Every person who is an elective officer or director
31 of such public utility or of any corporation in any chain of
32 successive ownership of 10% or more of voting capital stock;
33 (f) Every corporation which has one or more elective
34 officers or one or more directors in common with such public
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1 utility;
2 (g) Every corporation or person which the Commission may
3 determine as a matter of fact after investigation and hearing
4 is actually exercising any substantial influence over the
5 policies and actions of such public utility even though such
6 influence is not based upon stock holding, stockholders,
7 directors or officers to the extent specified in this
8 Section;
9 (h) Every person or corporation who or which the
10 Commission may determine as a matter of fact after
11 investigation and hearing is actually exercising such
12 substantial influence over the policies and actions of such
13 public utility in conjunction with one or more other
14 corporations or persons with which or whom they are related
15 by ownership or blood relationship or by action in concert
16 that together they are affiliated with such public utility
17 within the meaning of this Section even though no one of them
18 alone is so affiliated.
19 No such person or corporation is affiliated within the
20 meaning of this Section however, if such person or
21 corporation is otherwise subject to the jurisdiction of the
22 Commission or such person or corporation has not had
23 transactions or dealings other than the holding of stock and
24 the receipt of dividends thereon with such public utility
25 during the 2 year period next preceding.
26 (3) No management, construction, engineering, supply,
27 financial or similar contract and no contract or arrangement
28 for the purchase, sale, lease or exchange of any property or
29 for the furnishing of any service, property or thing,
30 hereafter made with any affiliated interest, as hereinbefore
31 defined, shall be effective unless it has first been filed
32 with and consented to by the Commission or is exempted in
33 accordance with the provisions of this Section or of Section
34 16-111 of this Act. The Commission may condition such
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1 approval in such manner as it may deem necessary to safeguard
2 the public interest. If it be found by the Commission, after
3 investigation and a hearing, that any such contract or
4 arrangement is not in the public interest, the Commission may
5 disapprove such contract or arrangement. Every contract or
6 arrangement not consented to or excepted by the Commission as
7 provided for in this Section is void.
8 The consent to, or exemption or waiver of consent to, any
9 contract or arrangement under this Section or Section 16-111
10 as required above, does not constitute approval of payments
11 thereunder for the purpose of computing expense of operation
12 in any rate proceeding. However, the Commission shall not
13 require a public utility to make purchases at prices
14 exceeding the prices offered by an affiliated interest, and
15 the Commission shall not be required to disapprove or
16 disallow, solely on the ground that such payments yield the
17 affiliated interest a return or rate of return in excess of
18 that allowed the public utility, any portion of payments for
19 purchases from an affiliated interest.
20 (4) The Commission may by general rules applicable alike
21 to all public utilities affected thereby waive the filing and
22 necessity for approval of contracts and arrangements
23 described in subparagraph (3) of this Section in cases of (a)
24 contracts or arrangements made in the ordinary course of
25 business for the employment of officers or employees; (b)
26 contracts or arrangements made in the ordinary course of
27 business for the purchase of services, supplies, or other
28 personal property at prices not exceeding the standard or
29 prevailing market prices, or at prices or rates fixed
30 pursuant to law; (c) contracts or arrangements where the
31 total obligation to be incurred under such contract or
32 arrangement thereunder does not exceed the lesser of (i)
33 $5,000,000 or (ii) 2% of the public utility's receipts from
34 all tariffed services (as defined in Article XVI) in the
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1 preceding calendar year $500; (d) the temporary leasing,
2 lending or interchanging of equipment in the ordinary course
3 of business or in case of an emergency; and (e) contracts
4 made by a public utility with a person or corporation whose
5 bid is the most favorable to the public utility, as
6 ascertained by competitive bidding under such rules as may be
7 prescribed by the Commission. If the Commission, after a
8 hearing, finds that any public utility is abusing or has
9 abused such general rule and thereby is evading compliance
10 with the standard established herein, the Commission may
11 require such public utility to thereafter file and receive
12 the Commission's approval upon all such transactions, but
13 that general rule shall remain in full force and effect as to
14 all other public utilities.
15 (Source: P.A. 84-617.)
16 (220 ILCS 5/7-102) (from Ch. 111 2/3, par. 7-102)
17 Sec. 7-102. Transactions requiring Commission approval.
18 Unless the consent and approval of the Commission is first
19 obtained or unless such approval is waived by the Commission
20 or is exempted in accordance with the provisions of this
21 Section or of any other Section of this Act:
22 (a) No 2 or more public utilities may enter into
23 contracts with each other that will enable such public
24 utilities to operate their lines or plants in connection with
25 each other;
26 (b) No public utility may purchase, lease, or in any
27 other manner acquire control, direct or indirect, over the
28 franchises, licenses, permits, plants, equipment, business or
29 other property of any other public utility;
30 (c) No public utility may assign, transfer, lease,
31 mortgage, sell (by option or otherwise), or otherwise dispose
32 of or encumber the whole or any part of its franchises,
33 licenses, permits, plant, equipment, business, or other
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1 property, but the consent and approval of the Commission
2 shall not be required for the sale, lease, assignment or
3 transfer (1) by any public utility of any tangible personal
4 property which is not necessary or useful in the performance
5 of its duties to the public, or (2) by any railroad of any
6 real or tangible personal property;
7 (d) No public utility may by any means, direct or
8 indirect, merge or consolidate its franchises, licenses,
9 permits, plants, equipment, business or other property with
10 that of any other public utility;
11 (e) No public utility may purchase, acquire, take or
12 receive any stock, stock certificates, bonds, notes or other
13 evidences of indebtedness of any other public utility;
14 (f) No public utility may in any manner, directly or
15 indirectly, guarantee the performance of any contract or
16 other obligation of any other person, firm or corporation
17 whatsoever;
18 (g) No public utility may use, appropriate, or divert
19 any of its moneys, property or other resources in or to any
20 business or enterprise which is not, prior to such use,
21 appropriation or diversion essentially and directly connected
22 with or a proper and necessary department or division of the
23 business of such public utility; provided that this
24 subsection shall not be construed as modifying subsections
25 (a) through (e) of this Section;
26 (h) No public utility may, directly or indirectly,
27 invest, loan or advance, or permit to be invested, loaned or
28 advanced any of its moneys, property or other resources in,
29 for, in behalf of or to any other person, firm, trust, group,
30 association, company or corporation whatsoever, except that
31 no consent or approval by the Commission is necessary for the
32 purchase of stock in development credit corporations
33 organized under the Illinois Development Credit Corporation
34 Act, providing that no such purchase may be made hereunder
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1 if, as a result of such purchase, the cumulative purchase
2 price of all such shares owned by the utility would exceed
3 one-fiftieth of one per cent of the utility's gross operating
4 revenue for the preceding calendar year.
5 (i) Any public utility may present to the Commission for
6 approval options or contracts to sell or lease real property,
7 notwithstanding that the value of the property under option
8 may have changed between the date of the option and the
9 subsequent date of sale or lease. If the options or contracts
10 are approved by the Commission, subsequent sales or leases in
11 conformance with those options or contracts may be made by
12 the public utility without any further action by the
13 Commission. If approval of the options or contracts is denied
14 by the Commission, the options or contracts are void and any
15 consideration theretofore paid to the public utility must be
16 refunded within 30 days following disapproval of the
17 application.
18 The proceedings for obtaining the approval of the
19 Commission provided for it in this Section shall be as
20 follows: There shall be filed with the Commission a petition,
21 joint or otherwise, as the case may be, signed and verified
22 by the president, any vice president, secretary, treasurer,
23 comptroller, general manager, or chief engineer of the
24 respective companies, or by the person or company, as the
25 case may be, clearly setting forth the object and purposes
26 desired, and setting forth the full and complete terms of the
27 proposed assignment, transfer, lease, mortgage, purchase,
28 sale, merger, consolidation, contract or other transaction,
29 as the case may be. Upon the filing of such petition, the
30 Commission shall, if it deems necessary, fix a time and place
31 for the hearing thereon. After such hearing, or in case no
32 hearing is required, if the Commission is satisfied that such
33 petition should reasonably be granted, and that the public
34 will be convenienced thereby, the Commission shall make such
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1 order in the premises as it may deem proper and as the
2 circumstances may require, attaching such conditions as it
3 may deem proper, and thereupon it shall be lawful to do the
4 things provided for in such order. The Commission shall
5 impose such conditions as will protect the interest of
6 minority and preferred stockholders.
7 The Commission shall have power by general rules
8 applicable alike to all public utilities, other than electric
9 and gas public utilities, affected thereby to waive the
10 filing and necessity for approval of the following: (a) sales
11 of property involving a consideration of not more than
12 $300,000 for utilities with gross revenues in excess of
13 $50,000,000 annually and a consideration of not more than
14 $100,000 for all other utilities; (b) leases, easements and
15 licenses involving a consideration or rental of not more than
16 $30,000 per year for utilities with gross revenues in excess
17 of $50,000,000 annually and a consideration or rental of not
18 more than $10,000 per year for all other utilities; (c)
19 leases of office building space not required by the public
20 utility in rendering service to the public; (d) the temporary
21 leasing, lending or interchanging of equipment in the
22 ordinary course of business or in case of an emergency; and
23 (e) purchase-money mortgages given by a public utility in
24 connection with the purchase of tangible personal property
25 where the total obligation to be secured shall be payable
26 within a period not exceeding one year. However, if the
27 Commission, after a hearing, finds that any public utility to
28 which such rule is applicable is abusing or has abused such
29 general rule and thereby is evading compliance with the
30 standard established herein, the Commission shall have power
31 to require such public utility to thereafter file and receive
32 the Commission's approval upon all such transactions as
33 described in this Section, but such general rule shall remain
34 in full force and effect as to all other public utilities to
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1 which such rule is applicable.
2 The filing of, and the consent and approval of the
3 Commission for, any assignment, transfer, lease, mortgage,
4 purchase, sale, merger, consolidation, contract or other
5 transaction by an electric or gas public utility with gross
6 revenues in all jurisdictions of $250,000,000 or more
7 annually involving a sale price or annual consideration in an
8 amount of $5,000,000 or less shall not be required. The
9 Commission shall also have the authority, on petition by an
10 electric or gas public utility with gross revenues in all
11 jurisdictions of $250,000,000 or more annually, to establish
12 by order higher thresholds than the foregoing for the
13 requirement of approval of transactions by the Commission
14 pursuant to this Section for the electric or gas public
15 utility, but no greater than 1% of the electric or gas public
16 utility's average total gross utility plant in service in the
17 case of sale, assignment or acquisition of property, or 2.5%
18 of the electric or gas public utility's total revenue in the
19 case of other sales price or annual consideration, in each
20 case based on the preceding calendar year, and subject to the
21 power of the Commission, after notice and hearing, to further
22 revise those thresholds at a later date. In addition to the
23 foregoing, the Commission shall have power by general rules
24 applicable alike to all electric and gas public utilities
25 affected thereby to waive the filing and necessity for
26 approval of the following: (a) sales of property involving a
27 consideration of $100,000 or less for electric and gas
28 utilities with gross revenues in all jurisdictions of less
29 than $250,000,000 annually; (b) leases, easements and
30 licenses involving a consideration or rental of not more than
31 $10,000 per year for electric and gas utilities with gross
32 revenues in all jurisdictions of less than $250,000,000
33 annually; (c) leases of office building space not required by
34 the electric or gas public utility in rendering service to
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1 the public; (d) the temporary leasing, lending or
2 interchanging of equipment in the ordinary course of business
3 or in the case of an emergency; and (e) purchase-money
4 mortgages given by an electric or gas public utility in
5 connection with the purchase of tangible personal property
6 where the total obligation to be secured shall be payable
7 within a period of one year or less. However, if the
8 Commission, after a hearing, finds that any electric or gas
9 public utility is abusing or has abused such general rule and
10 thereby is evading compliance with the standard established
11 herein, the Commission shall have power to require such
12 electric or gas public utility to thereafter file and receive
13 the Commission's approval upon all such transactions as
14 described in this Section and not exempted pursuant to the
15 first sentence of this paragraph or to subsection (g) of
16 Section 16-111 of this Act, but such general rule shall
17 remain in full force and effect as to all other electric and
18 gas public utilities.
19 Every assignment, transfer, lease, mortgage, sale or
20 other disposition or encumbrance of the whole or any part of
21 the franchises, licenses, permits, plant, equipment, business
22 or other property of any public utility, or any merger or
23 consolidation thereof, and every contract, purchase of stock,
24 or other transaction referred to in this Section and not
25 exempted in accordance with the provisions of the immediately
26 preceding paragraph of this Section, made otherwise than in
27 accordance with an order of the Commission authorizing the
28 same, except as provided in this Section, shall be void. The
29 provisions of this Section shall not apply to any
30 transactions by or with a political subdivision or municipal
31 corporation of this State.
32 The provisions of this Section do not apply to the
33 purchase or sale of emission allowances created under and
34 defined in Title IV of the federal Clean Air Act Amendments
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1 of 1990 (P.L. 101-549), as amended.
2 (Source: P.A. 88-604, eff. 9-1-94; 89-99, eff. 7-7-95.)
3 (220 ILCS 5/7-204) (from Ch. 111 2/3, par. 7-204)
4 Sec. 7-204. Reorganization defined; Commission approval
5 therefore.
6 (a) For purposes of this Section, "reorganization" means
7 any transaction which, regardless of the means by which it is
8 accomplished, results in a change in the ownership of a
9 majority of the voting capital stock of an Illinois public
10 utility; or the ownership or control of any entity which owns
11 or controls a majority of the voting capital stock of a
12 public utility; or by which 2 public utilities merge, or by
13 which a public utility acquires substantially all of the
14 assets of another public utility; provided, however, that
15 "reorganization" as used in this Section shall not include a
16 mortgage or pledge transaction entered into to secure a bona
17 fide borrowing by the party granting the mortgage or making
18 the pledge.
19 In addition to the foregoing, "reorganization" shall
20 include for purposes of this Section any transaction which,
21 regardless of the means by which it its is accomplished, will
22 have the effect of terminating the affiliated interest status
23 of any entity as defined in paragraphs (a), (b), (c) or (d)
24 of subsection (2) of Section 7-101 of this Act where such
25 entity had transactions with the public utility, in the 12
26 twelve calendar months immediately preceding the date of
27 termination of such affiliated interest status subject to
28 subsection (3) of Section 7-101 of this Act with a value
29 greater than 15% of the public utility's revenues for that
30 same 12-month twelve-month period. If the proposed
31 transaction would have the effect of terminating the
32 affiliated interest status of more than one Illinois public
33 utility, the utility with the greatest revenues for the
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1 12-month twelve-month period shall be used to determine
2 whether such proposed transaction is a reorganization for the
3 purposes of this Section. The Commission shall have
4 jurisdiction over any reorganization as defined herein.
5 (b) No reorganization shall take place without prior
6 Commission approval. The Commission shall not approve any
7 proposed reorganization if the Commission finds, after notice
8 and hearing, that the reorganization will adversely affect
9 the utility's ability to perform its duties under this Act.
10 In reviewing any proposed reorganization, the Commission must
11 find that:
12 (1) (a) the proposed reorganization will not
13 diminish the utility's ability to provide adequate,
14 reliable, efficient, safe and least-cost public utility
15 service;
16 (2) (b) the proposed reorganization will not result
17 in the unjustified subsidization of non-utility
18 activities by the utility or its customers;
19 (3) (c) costs and facilities are fairly and
20 reasonably allocated between utility and non-utility
21 activities in such a manner that the Commission may
22 identify those costs and facilities which are properly
23 included by the utility for ratemaking purposes;
24 (4) (d) the proposed reorganization will not
25 significantly impair the utility's ability to raise
26 necessary capital on reasonable terms or to maintain a
27 reasonable capital structure;
28 (5) (e) the utility will remain subject to all
29 applicable laws, regulations, rules, decisions and
30 policies governing the regulation of Illinois public
31 utilities;.
32 (6) the proposed reorganization is not likely to
33 have a significant adverse effect on competition in those
34 markets over which the Commission has jurisdiction;
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1 (7) the proposed reorganization is not likely to
2 result in any adverse rate impacts on retail customers.
3 (c) The Commission shall not approve a reorganization
4 without ruling on: (i) the allocation of any savings
5 resulting from the proposed reorganization; and (ii) whether
6 the companies should be allowed to recover any costs incurred
7 in accomplishing the proposed reorganization and, if so, the
8 amount of costs eligible for recovery and how the costs will
9 be allocated.
10 (d) The Commission shall issue its Order approving or
11 denying the proposed reorganization within 11 months after
12 the application is filed. The Commission may extend the
13 deadline for a period equivalent to the length of any delay
14 which the Commission finds to have been caused by the
15 Applicant's failure to provide data or information requested
16 by the Commission or that the Commission ordered the
17 Applicant to provide to the parties. The Commission may also
18 extend the deadline by an additional period not to exceed 3
19 months to consider amendments to the Applicant's filing, or
20 to consider reasonably unforeseeable changes in circumstances
21 subsequent to the Applicant's initial filing.
22 (e) Subsections (c) and (d) and subparagraphs (6) and
23 (7) of subsection (b) of this Section shall apply only to
24 merger applications submitted to the Commission subsequent to
25 April 23, 1997. No other Commission approvals shall be
26 required for mergers that are subject to this Section.
27 (f) In approving any proposed reorganization pursuant to
28 this Section the Commission may impose such terms, conditions
29 or requirements as, in its judgment, are necessary to protect
30 the interests of the public utility and its customers.
31 (Source: P.A. 84-617; 84-1025.)
32 (220 ILCS 5/7-206) (from Ch. 111 2/3, par. 7-206)
33 Sec. 7-206. Separate accounts for nonpublic business of
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1 public utility. The Commission may require every public
2 utility engaged directly or indirectly in any other than a
3 public utility business, as defined by law, to keep
4 separately in like manner and form the accounts of all such
5 other business, and the Commission may provide for the
6 examination and inspection of the books, accounts, papers and
7 records of such other business, in so far as may be necessary
8 to enforce any provisions of this Act. The Commission shall
9 have the power to inquire as to and prescribe the
10 apportionment of capitalization, earnings, debts and expenses
11 fairly and justly to be awarded to or borne by the ownership,
12 operation, management or control of such public utility as
13 distinguished from such other business. Provided, however,
14 that an electric or gas public utility shall not be required
15 to maintain the accounts of any non-public utility business
16 in the same manner and form as the electric or gas public
17 utility is required to keep the accounts of its public
18 utility business unless expressly ordered by the Commission.
19 (Source: P.A. 84-617.)
20 (220 ILCS 5/8-406) (from Ch. 111 2/3, par. 8-406)
21 Sec. 8-406. Certificate of public convenience and
22 necessity.
23 (a) No public utility not owning any city or village
24 franchise nor engaged in performing any public service or in
25 furnishing any product or commodity within this State as of
26 July 1, 1921 and not possessing a certificate of public
27 convenience and necessity from the Illinois Commerce
28 Commission, the State Public Utilities Commission or the
29 Public Utilities Commission, at the time this amendatory Act
30 of 1985 goes into effect, shall transact any business in this
31 State until it shall have obtained a certificate from the
32 Commission that public convenience and necessity require the
33 transaction of such business.
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1 (b) No public utility shall begin the construction of
2 any new plant, equipment, property or facility which is not
3 in substitution of any existing plant, equipment, property or
4 facility or any extension or alteration thereof or in
5 addition thereto, and which in the case of gas and electric
6 utilities may affect the energy plan of the utility unless
7 and until it shall have obtained from the Commission a
8 certificate that public convenience and necessity require
9 such construction. Whenever after a hearing the Commission
10 determines that any new construction or the transaction of
11 any business by a public utility will promote the public
12 convenience and is necessary thereto, it shall have the power
13 to issue certificates of public convenience and necessity.
14 The Commission shall determine that proposed construction
15 will promote the public convenience and necessity only if the
16 utility demonstrates: (1) that the proposed construction is
17 necessary to provide adequate, reliable, and efficient
18 service to its customers and is the least-cost means of
19 satisfying the service needs of its customers; (2) with
20 respect to gas and electric utilities, that the proposed
21 construction is consistent with the most recent energy plan
22 adopted by the Commission for the utility and the State, as
23 updated; (2) (3) that the utility is capable of efficiently
24 managing and supervising the construction process and has
25 taken sufficient action to ensure adequate and efficient
26 construction and supervision thereof; and (3) (4) that the
27 utility is capable of financing the proposed construction
28 without significant adverse financial consequences for the
29 utility or its customers. If the Commission finds that the
30 public convenience and necessity requires a new electric
31 generating facility to be added by the utility, the
32 Commission shall evaluate the proposed construction in
33 comparison with the merits of a facility designed to use
34 Illinois coal in an environmentally acceptable way, and shall
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1 consider the economic impact on employment directly or
2 indirectly related to the production of coal in Illinois over
3 the entire period of time affected by the proposed
4 construction or its alternatives.
5 (c) After the effective date of this amendatory Act of
6 1987, no construction shall commence on any new nuclear power
7 plant to be located within this State, and no certificate of
8 public convenience and necessity or other authorization shall
9 be issued therefor by the Commission, until the Director of
10 the Illinois Environmental Protection Agency finds that the
11 United States Government, through its authorized agency, has
12 identified and approved a demonstrable technology or means
13 for the disposal of high level nuclear waste, or until such
14 construction has been specifically approved by a statute
15 enacted by the General Assembly.
16 As used in this Section, "high level nuclear waste" means
17 those aqueous wastes resulting from the operation of the
18 first cycle of the solvent extraction system or equivalent
19 and the concentrated wastes of the subsequent extraction
20 cycles or equivalent in a facility for reprocessing
21 irradiated reactor fuel and shall include spent fuel
22 assemblies prior to fuel reprocessing.
23 (d) In making its determination, the Commission shall
24 attach primary weight to the cost or cost savings to the
25 customers of the utility. The Commission may consider any or
26 all factors which will or may affect such cost or cost
27 savings.
28 (e) The Commission may issue a temporary certificate
29 which shall remain in force not to exceed one year in cases
30 of emergency, to assure maintenance of adequate service or to
31 serve particular customers, without notice or hearing,
32 pending the determination of an application for a
33 certificate, and may by regulation exempt from the
34 requirements of this Section temporary acts or operations for
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1 which the issuance of a certificate will not be required in
2 the public interest.
3 A public utility shall not be required to obtain but may
4 apply for and obtain a certificate of public convenience and
5 necessity pursuant to this Section with respect to any matter
6 as to which it has received the authorization or order of the
7 Commission under the Electric Supplier Act, and any such
8 authorization or order granted a public utility by the
9 Commission under that Act shall as between public utilities
10 be deemed to be, and shall have except as provided in that
11 Act the same force and effect as, a certificate of public
12 convenience and necessity issued pursuant to this Section.
13 No electric cooperative shall be made or shall become a
14 party to or shall be entitled to be heard or to otherwise
15 appear or participate in any proceeding initiated under this
16 Section for authorization of power plant construction and as
17 to matters as to which a remedy is available under The
18 Electric Supplier Act.
19 (f) Such certificates may be altered or modified by the
20 Commission, upon its own motion or upon application by the
21 person or corporation affected. Unless exercised within a
22 period of 2 years from the grant thereof authority conferred
23 by a certificate of convenience and necessity issued by the
24 Commission shall be null and void.
25 No certificate of public convenience and necessity shall
26 be construed as granting a monopoly or an exclusive
27 privilege, immunity or franchise.
28 (Source: P.A. 85-377.)
29 (220 ILCS 5/8-503) (from Ch. 111 2/3, par. 8-503)
30 Sec. 8-503. Whenever the Commission, after a hearing,
31 shall find that additions, extensions, repairs or
32 improvements to, or changes in, the existing plant,
33 equipment, apparatus, facilities or other physical property
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1 of any public utility or of any 2 two or more public
2 utilities are necessary and ought reasonably to be made or
3 that a new structure or structures is or are necessary and
4 should be erected, to promote the security or convenience of
5 its employees or the public, or in any other way to secure
6 adequate service or facilities, the Commission shall make and
7 serve an order authorizing or directing that such additions,
8 extensions, repairs, improvements or changes be made, or such
9 structure or structures be erected at the location, in the
10 manner and within the time specified in said order; provided,
11 however, that the Commission shall have no authority to order
12 the construction, addition or extension of any electric
13 generating plant unless the public utility requests a
14 certificate for the construction of the plant pursuant to
15 Section 8-406 and in conjunction with such request also
16 requests the entry of an order under this Section. If any
17 additions, extensions, repairs, improvements or changes, or
18 any new structure or structures, which the Commission has
19 authorized or ordered to be erected, require joint action by
20 2 two or more public utilities, the Commission shall notify
21 the said public utilities that such additions, extensions,
22 repairs, improvements or changes or new structure or
23 structures have been authorized or ordered and that the same
24 shall be made at the joint cost whereupon the said public
25 utilities shall have such reasonable time as the Commission
26 may grant within which to agree upon the apportionment or
27 division of cost of such additions, extensions, repairs,
28 improvements or changes or new structure or structures, which
29 each shall bear. If at the expiration of such time such
30 public utilities shall fail to file with the Commission a
31 statement that an agreement has been made for a division or
32 apportionment of the cost or expense of such additions,
33 extensions, repairs, improvements or changes, or new
34 structure or structures, the Commission shall have authority,
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1 after further hearing, to make an order fixing the proportion
2 of such cost or expense to be borne by each public utility
3 and the manner in which the same shall be paid or secured.
4 Nothing in this Act shall prevent the Commission, upon
5 its own motion or upon petition, from ordering, after a
6 hearing, the extension, construction, connection or
7 interconnection of plant, equipment, pipe, line, facilities
8 or other physical property of a public utility in whatever
9 configuration the Commission finds necessary to ensure that
10 natural gas is made available to consumers at no increased
11 cost to the customers of the utility supplying the gas.
12 Whenever the Commission finds, after a hearing, that the
13 public convenience or necessity requires it, the Commission
14 may order public utilities subject to its jurisdiction to
15 work jointly (1) for the purpose of purchasing and
16 distributing natural gas or gas substitutes, provided it
17 shall not increase the cost of gas to the customers of the
18 participating utilities, or (2) for any other reasonable
19 purpose.
20 (Source: P.A. 84-617.)
21 (220 ILCS 5/8-510) (from Ch. 111 2/3, par. 8-510)
22 Sec. 8-510. Land surveys. For the purpose of making land
23 surveys, any public utility that has been granted a
24 certificate of public convenience and necessity by, or
25 received an order under Section 8-503 of this Act from, the
26 Commission may, 30 days after providing written notice to the
27 owner thereof by registered mail, enter upon the property of
28 any owner who has refused permission for entrance upon that
29 property, but subject to responsibility for all damages which
30 may be inflicted thereby.
31 (Source: P.A. 84-617.)
32 (220 ILCS 5/9-201.5)
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1 Sec. 9-201.5. Decommissioning nuclear power plants;
2 rates.
3 (a) The Commission may after hearing, in a rate case or
4 otherwise, authorize the institution of rate provisions or
5 tariffs that increase or decrease charges to customers to
6 reflect changes in, or additional or reduced costs of,
7 decommissioning nuclear power plants, including accruals for
8 estimates of those costs, irrespective of any changes in
9 other costs or revenues; provided the revenues collected
10 under such rates or tariffs are used to recover costs
11 associated with contributions to appropriate decommissioning
12 trust funds or to reduce the amounts to be charged under such
13 rates or tariffs in the future. These provisions or tariffs
14 shall hereinafter be referred to as "decommissioning rates".
15 (b) A public utility that does not have a
16 decommissioning rate in effect on the effective date of this
17 amendatory Act of 1994 may not place a decommissioning rate
18 in effect before January 1, 1995. Changes in charges under a
19 decommissioning rate shall not be subject to the notice and
20 filing requirements of subsection (a) of Section 9-201 of
21 this Act, but a decommissioning rate of a utility that does
22 not have such a rate in effect before the effective date of
23 this amendatory Act of 1994 shall provide that no increase in
24 charges under that rate may take effect until 60 days after
25 the utility provides the proposed increased charge to the
26 Commission for review. The Commission may require that a
27 decommissioning rate contain provisions for reconciling
28 amounts collected under the rate with both reasonably
29 projected costs and actual costs prudently incurred. As used
30 in this Section, "decommissioning costs" and "decommissioning
31 trust fund" have the same meaning as in Section 8-508.1 of
32 this Act.
33 (c) Nothing contained in this amendatory Act of 1994
34 shall affect any determination of the authority of the
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1 Commission before the effective date of this amendatory Act
2 of 1994. Nothing contained in this amendatory Act of 1994
3 shall be used in any determination of the authority of the
4 Commission after the effective date of this amendatory Act of
5 1994, except with respect to decommissioning rates.
6 (d) A decommissioning rate authorized by the Commission
7 under this Section and the decommissioning cost studies
8 underlying the rate shall be subject to hearing and review,
9 in a rate case or otherwise, not less than once every 6
10 years, and the decommissioning rate shall be discontinued by
11 the Commission unless specifically approved for continuation
12 by the Commission after the hearing.
13 (Source: P.A. 88-653, eff. 1-1-95.)
14 (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220)
15 Sec. 9-220. Rate changes based on changes in fuel costs.
16 (a) Notwithstanding the provisions of Section 9-201, the
17 Commission may authorize the increase or decrease of rates
18 and charges based upon changes in the cost of fuel used in
19 the generation or production of electric power, changes in
20 the cost of purchased power, or changes in the cost of
21 purchased gas through the application of fuel adjustment
22 clauses or purchased gas adjustment clauses. The Commission
23 may also authorize the increase or decrease of rates and
24 charges based upon expenditures or revenues resulting from
25 the purchase or sale of emission allowances created under the
26 federal Clean Air Act Amendments of 1990, as defined in
27 Section 8-402.1, through such fuel adjustment clauses, as a
28 cost of fuel. For the purposes of this paragraph, cost of
29 fuel used in the generation or production of electric power
30 shall include the amount of any fees paid by the utility for
31 the implementation and operation of a process for the
32 desulfurization of the flue gas when burning high sulfur coal
33 at any location within the State of Illinois irrespective of
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1 the attainment status designation of such location, except
2 for any fees or costs related to a service contract which is
3 part of a utility's Clean Air Act compliance plan approved
4 pursuant to Section 8-402.1, to the extent that recovery of
5 comparable costs would not be permitted under this Section if
6 incurred directly by a utility owning and operating such a
7 facility; but shall not include transportation costs of coal
8 (i) except to the extent that for contracts entered into on
9 and after the effective date of this amendatory Act of 1997,
10 the cost of the coal, including transportation costs,
11 constitutes the lowest cost for adequate and reliable fuel
12 supply reasonably available to the public utility in
13 comparison to the cost, including transportation costs, of
14 other adequate and reliable sources of fuel supply reasonably
15 available to the public utility, or (ii) except as otherwise
16 provided in the next 3 sentences of this paragraph. Such
17 costs of fuel shall, when requested by a utility or at the
18 conclusion of the utility's next general electric rate
19 proceeding, whichever shall first occur, include
20 transportation costs of coal purchased under existing coal
21 purchase contracts. For purposes of this paragraph "existing
22 coal purchase contracts" means contracts for the purchase of
23 coal in effect on the effective date of this amendatory Act
24 of 1991, as such contracts may thereafter be amended, but
25 only to the extent that any such amendment does not increase
26 the aggregate quantity of coal to be purchased under such
27 contract. Nothing herein shall authorize an electric utility
28 to recover through its fuel adjustment clause any amounts of
29 transportation costs of coal that were included in the
30 revenue requirement used to set base rates in its most recent
31 general rate proceeding. Cost shall be based upon uniformly
32 applied accounting principles. Annually, the Commission shall
33 initiate public hearings to determine whether the clauses
34 reflect actual costs of fuel, gas, power, or coal
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1 transportation purchased to determine whether such purchases
2 were prudent, and to reconcile any amounts collected with the
3 actual costs of fuel, power, gas, or coal transportation
4 prudently purchased. In each such proceeding, the burden of
5 proof shall be upon the utility to establish the prudence
6 prudency of its cost of fuel, power, gas, or coal
7 transportation purchases and costs. The Commission shall
8 issue its final order in each such annual proceeding for an
9 electric utility by December 31 of the year immediately
10 following the year to which the proceeding pertains,
11 provided, that the Commission shall issue its final order
12 with respect to such annual proceeding for the years 1996 and
13 earlier by December 31, 1998.
14 (b) A public utility providing electric service, other
15 than a public utility described in subsections (e) or (f) of
16 this Section, may at any time during the mandatory transition
17 period file with the Commission proposed tariff sheets that
18 eliminate the public utility's fuel adjustment clause and
19 adjust the public utility's base rate tariffs by the amount
20 necessary for the base fuel component of the base rates to
21 recover the public utility's average fuel and power supply
22 costs per kilowatt-hour for the 2 most recent years for which
23 the Commission has issued final orders in annual proceedings
24 pursuant to subsection (a), where the average fuel and power
25 supply costs per kilowatt-hour shall be calculated as the sum
26 of the public utility's prudent and allowable fuel and power
27 supply costs as found by the Commission in the 2 proceedings
28 divided by the public utility's actual jurisdictional
29 kilowatt-hour sales for those 2 years. Notwithstanding any
30 contrary or inconsistent provisions in Section 9-201 of this
31 Act, in subsection (a) of this Section or in any rules or
32 regulations promulgated by the Commission pursuant to
33 subsection (g) of this Section, the Commission shall review
34 and shall by order approve, or approve as modified, the
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1 proposed tariff sheets within 60 days after the date of the
2 public utility's filing. The Commission may modify the
3 public utility's proposed tariff sheets only to the extent
4 the Commission finds necessary to achieve conformance to the
5 requirements of this subsection (b). During the 5 years
6 following the date of the Commission's order, but in any
7 event no earlier than January 1, 2005, a public utility whose
8 fuel adjustment clause has been eliminated pursuant to this
9 subsection shall not file proposed tariff sheets seeking, or
10 otherwise petition the Commission for, reinstatement of a
11 fuel adjustment clause.
12 (c) Notwithstanding any contrary or inconsistent
13 provisions in Section 9-201 of this Act, in subsection (a) of
14 this Section or in any rules or regulations promulgated by
15 the Commission pursuant to subsection (g) of this Section, a
16 public utility providing electric service, other than a
17 public utility described in subsection (e) or (f) of this
18 Section, may at any time during the mandatory transition
19 period file with the Commission proposed tariff sheets that
20 establish the rate per kilowatt-hour to be applied pursuant
21 to the public utility's fuel adjustment clause at the average
22 value for such rate during the preceding 24 months, provided
23 that such average rate results in a credit to customers'
24 bills, without making any revisions to the public utility's
25 base rate tariffs. The proposed tariff sheets shall
26 establish the fuel adjustment rate for a specific time period
27 of at least 3 years but not more than 5 years, provided that
28 the terms and conditions for any reinstatement earlier than 5
29 years shall be set forth in the proposed tariff sheets and
30 subject to modification or approval by the Commission. The
31 Commission shall review and shall by order approve the
32 proposed tariff sheets if it finds that the requirements of
33 this subsection are met. The Commission shall not conduct
34 the annual hearings specified in the last 3 sentences of
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1 subsection (a) of this Section for the utility for the period
2 that the factor established pursuant to this subsection is in
3 effect.
4 (d) A public utility providing electric service, or a
5 public utility providing gas service may file with the
6 Commission proposed tariff sheets that eliminate the public
7 utility's fuel or purchased gas adjustment clause and adjust
8 the public utility's base rate tariffs to provide for
9 recovery of power supply costs or gas supply costs that would
10 have been recovered through such clause; provided, that the
11 provisions of this subsection (d) shall not be available to a
12 public utility described in subsections (e) or (f) of this
13 Section to eliminate its fuel adjustment clause.
14 Notwithstanding any contrary or inconsistent provisions in
15 Section 9-201 of this Act, in subsection (a) of this Section,
16 or in any rules or regulations promulgated by the Commission
17 pursuant to subsection (g) of this Section, the Commission
18 shall review and shall by order approve, or approve as
19 modified in the Commission's order, the proposed tariff
20 sheets within 240 days after the date of the public utility's
21 filing. The Commission's order shall approve rates and
22 charges that the Commission, based on information in the
23 public utility's filing or on the record if a hearing is held
24 by the Commission, finds will recover the reasonable, prudent
25 and necessary jurisdictional power supply costs or gas supply
26 costs incurred or to be incurred by the public utility during
27 a 12 month period found by the Commission to be appropriate
28 for these purposes, provided, that such period shall be
29 either (i) a 12 month historical period occurring during the
30 15 months ending on the date of the public utility's filing,
31 or (ii) a 12 month future period ending no later than 15
32 months following the date of the public utility's filing.
33 The public utility shall include with its tariff filing
34 information showing both (1) its actual jurisdictional power
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1 supply costs or gas supply costs for a 12 month historical
2 period conforming to (i) above and (2) its projected
3 jurisdictional power supply costs or gas supply costs for a
4 future 12 month period conforming to (ii) above. If the
5 Commission's order requires modifications in the tariff
6 sheets filed by the public utility, the public utility shall
7 have 7 days following the date of the order to notify the
8 Commission whether the public utility will implement the
9 modified tariffs or elect to continue its fuel or purchased
10 gas adjustment clause in force as though no order had been
11 entered. The Commission's order shall provide for any
12 reconciliation of power supply costs or gas supply costs, as
13 the case may be, and associated revenues through the date
14 that the public utility's fuel or purchased gas adjustment
15 clause is eliminated. During the 5 years following the date
16 of the Commission's order, a public utility whose fuel or
17 purchased gas adjustment clause has been eliminated pursuant
18 to this subsection shall not file proposed tariff sheets
19 seeking, or otherwise petition the Commission for,
20 reinstatement or adoption of a fuel or purchased gas
21 adjustment clause. Nothing in this subsection (d) shall be
22 construed as limiting the Commission's authority to eliminate
23 a public utility's fuel adjustment clause or purchased gas
24 adjustment clause in accordance with any other applicable
25 provisions of this Act.
26 (e) Notwithstanding any contrary or inconsistent
27 provisions in Section 9-201 of this Act, in subsection (a)
28 of this Section, or in any rules promulgated by the
29 Commission pursuant to subsection (g) of this Section, a
30 public utility providing electric service to more than
31 1,000,000 customers in this State may, within the first 6
32 months after the effective date of this amendatory Act of
33 1997, file with the Commission proposed tariff sheets that
34 eliminate, effective January 1, 1997, the public utility's
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1 fuel adjustment clause without adjusting its base rates, and
2 such tariff sheets shall be effective upon filing. To the
3 extent the application of the fuel adjustment clause had
4 resulted in net charges to customers after January 1, 1997,
5 the utility shall also file a tariff sheet that provides for
6 a refund stated on a per kilowatt-hour basis of such charges
7 over a period not to exceed 6 months; provided however, that
8 such refund shall not include the proportional amounts of
9 taxes paid under the Use Tax Act, Service Use Tax Act,
10 Service Occupation Tax Act, and Retailers' Occupation Tax Act
11 on fuel used in generation. The Commission shall issue an
12 order within 45 days after the date of the public utility's
13 filing approving or approving as modified such tariff sheet.
14 If the fuel adjustment clause is eliminated pursuant to this
15 subsection, the Commission shall not conduct the annual
16 hearings specified in the last 3 sentences of subsection (a)
17 of this Section for the utility for any period after
18 December 31, 1996 and prior to any reinstatement of such
19 clause. A public utility whose fuel adjustment clause has
20 been eliminated pursuant to this subsection shall not file a
21 proposed tariff sheet seeking, or otherwise petition the
22 Commission for, reinstatement of the fuel adjustment clause
23 prior to January 1, 2005.
24 (f) Notwithstanding any contrary or inconsistent
25 provisions in Section 9-201 of this Act, in subsection (a) of
26 this Section, or in any rules or regulations promulgated by
27 the Commission pursuant to subsection (g) of this Section, a
28 public utility providing electric service to more than
29 500,000 customers but fewer than 1,000,000 customers in this
30 State may, within the first 6 months after the effective date
31 of this amendatory Act of 1997, file with the Commission
32 proposed tariff sheets that eliminate, effective January 1,
33 1997, the public utility's fuel adjustment clause and adjust
34 its base rates by the amount necessary for the base fuel
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1 component of the base rates to recover 91% of the public
2 utility's average fuel and power supply costs for the 2 most
3 recent years for which the Commission, as of January 1, 1997,
4 has issued final orders in annual proceedings pursuant to
5 subsection (a), where the average fuel and power supply costs
6 per kilowatt-hour shall be calculated as the sum of the
7 public utility's prudent and allowable fuel and power supply
8 costs as found by the Commission in the 2 proceedings divided
9 by the public utility's actual jurisdictional kilowatt-hour
10 sales for those 2 years, provided, that such tariff sheets
11 shall be effective upon filing. To the extent the
12 application of the fuel adjustment clause had resulted in net
13 charges to customers after January 1, 1997, the utility shall
14 also file a tariff sheet that provides for a refund stated on
15 a per kilowatt-hour basis of such charges over a period not
16 to exceed 6 months. Provided however, that such refund shall
17 not include the proportional amounts of taxes paid under the
18 Use Tax Act, Service Use Tax Act, Service Occupation Tax Act,
19 and Retailers' Occupation Tax Act on fuel used in generation.
20 The Commission shall issue an order within 45 days after the
21 date of the public utility's filing approving or approving as
22 modified such tariff sheet. If the fuel adjustment clause is
23 eliminated pursuant to this subsection, the Commission shall
24 not conduct the annual hearings specified in the last 3
25 sentences of subsection (a) of this Section for the utility
26 for any period after December 31, 1996 and prior to any
27 reinstatement of such clause. A public utility whose fuel
28 adjustment clause has been eliminated pursuant to this
29 subsection shall not file a proposed tariff sheet seeking, or
30 otherwise petition the Commission for, reinstatement of the
31 fuel adjustment clause prior to January 1, 2005.
32 (g) The Commission shall have authority to promulgate
33 rules and regulations to carry out the provisions of this
34 Section paragraph.
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1 (Source: P.A. 87-173; 88-488.)
2 (220 ILCS 5/9-244) (from Ch. 111 2/3, par. 9-244)
3 Sec. 9-244. Alternative rate regulation.
4 (a) Notwithstanding any of the ratemaking provisions of
5 this Article IX or other Sections of this Act, or the
6 Commission's rules that are deemed to require rate of return
7 regulation, and except as provided in Article XVI, the
8 Commission, upon petition by an electric or gas public
9 utility, and after notice and hearing, may authorize for some
10 or all of the regulated services of that utility, the
11 implementation of one or more programs consisting of (i)
12 alternatives to rate of return regulation, including but not
13 limited to earnings sharing, rate moratoria, price caps or
14 flexible rate options, or (ii) other regulatory mechanisms
15 that reward or penalize the utility through the adjustment of
16 rates based on utility performance. In the case of other
17 regulatory mechanisms that reward or penalize utilities
18 through the adjustment of rates based on utility performance,
19 the utility's performance shall be compared to standards
20 established in the Commission order authorizing the
21 implementation of other regulatory mechanisms. The
22 Commission is specifically authorized to approve in response
23 to such petitions different forms of alternatives to rate of
24 return regulation or other regulatory mechanisms to fit the
25 particular characteristics and requirements of different
26 utilities and their service territories.
27 (b) The Commission shall approve the program if it
28 finds, based on the record, that:
29 (1) the program is likely to result in rates lower
30 than otherwise would have been in effect under
31 traditional rate of return regulation for the services
32 covered by the program and that are consistent with the
33 provisions of Section 9-241 of the Act; and
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1 (2) the program is likely to result in other
2 substantial and identifiable benefits that would be
3 realized by customers served under the program and that
4 would not be realized in the absence of the program; and
5 (3) the utility is in compliance with applicable
6 Commission standards for reliability and implementation
7 of the program is not likely to adversely affect service
8 reliability; and
9 (4) implementation of the program is not likely to
10 result in deterioration of the utility's financial
11 condition; and
12 (5) implementation of the program is not likely to
13 adversely affect the development of competitive markets;
14 and
15 (6) the electric utility is in compliance with its
16 obligation to offer delivery services pursuant to Article
17 XVI; and
18 (7) the program includes annual reporting
19 requirements and other provisions that will enable the
20 Commission to adequately monitor its implementation of
21 the program; and
22 (8) the program includes provisions for an
23 equitable sharing of any net economic benefits between
24 the utility and its customers to the extent the program
25 is likely to result in such benefits.
26 The Commission shall issue its order approving or denying
27 the program no later than 270 days from the date of filing of
28 the petition. Any program approved under this Section shall
29 continue in effect until revised, modified or terminated by
30 order of the Commission as provided in this Section. If the
31 Commission cannot make the above findings, it shall
32 specifically identify in its order the reason or reasons why
33 the proposed program does not meet the above criteria, and
34 shall identify any modifications supported in the record, if
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1 any, that would cause the program to satisfy the above
2 criteria. In the event the order identifies any such
3 modifications it shall not become a final order subject to
4 petitions for rehearing until 15 days after service of same
5 by the Commission. The utility shall have 14 days following
6 the date of service of the order to notify the Commission in
7 writing whether it will accept any modifications so
8 identified in the order or whether it has elected not to
9 proceed with the program. If the utility notifies the
10 Commission that it will accept such modifications, the
11 Commission shall issue an amended order, without further
12 hearing, within 14 days following such notification,
13 approving the program as modified and such order shall be
14 considered to be a final order of the Commission subject to
15 petitions for rehearing and appellate procedures.
16 (c) The Commission shall open a proceeding to review any
17 program approved under subsection (b) 2 years after the
18 program is first implemented to determine whether the program
19 is meeting its objectives, and may make such revisions, no
20 later than 270 days after the proceeding is opened, as are
21 necessary to result in the program meeting its objectives. A
22 utility may elect to discontinue any program so revised. The
23 Commission shall not otherwise direct a utility to revise,
24 modify or cancel a program during its term of operation,
25 except as found necessary, after notice and hearing, to
26 ensure system reliability.
27 (d) Upon its own motion or complaint, the Commission may
28 investigate whether the utility is implementing an approved
29 program in accordance with the Commission order approving the
30 program. If the Commission finds after notice and hearing,
31 that the utility is not implementing the program in
32 accordance with such order, the Commission shall order the
33 utility to comply with the terms of the order. Complaints
34 relating to the program filed under Section 9-250 of this
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1 Act, alleging that the program does not comply with that
2 Section or the requirements of subsection (b) shall not be
3 filed sooner than one year after the review provided for in
4 subsection (c). The complainant shall bear the burden of
5 proving the allegations in the complaint.
6 (e) The Commission shall not be authorized to allow or
7 order an electric utility to place a program into effect,
8 pursuant to this Section, applicable to delivery services
9 provided by a utility, unless the utility already has in
10 effect a delivery services tariff conforming to the
11 requirements of Section 16-108 of this Act.
12 (f) The Commission may, upon subsequent petition by the
13 utility, after notice and hearing, authorize the extension of
14 a program that was previously approved pursuant to this
15 Section or approve revisions or modifications of such a
16 program to be effective, after the initially approved program
17 has been in effect. Any such petition seeking an extension,
18 revision, or modification of such a program must be
19 accompanied by an evaluation of the program addressing the
20 criteria set forth in subsection (b) hereof. The utility's
21 petition may, but is not required to, specify a termination
22 date for the extended, revised or modified program. The
23 Commission may require a review of the extended, revised, or
24 modified program at such intervals as may be ordered by the
25 Commission, for the purpose of determining whether the
26 program should be revised, modified, or terminated.
27 Performance based rates. Notwithstanding any other Sections
28 of this Act or the Commission's rules, the Commission, upon
29 petition by a public utility and after hearing, may authorize
30 for that utility on an experimental basis, the implementation
31 of one or more programs consisting of (a) alternatives to
32 rate of return regulation or (b) other regulatory mechanisms
33 that reward or penalize utilities through the adjustment of
34 rates based on utility performance. In the case of other
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1 regulatory mechanisms that reward or penalize utilities
2 through the adjustment of rates based on utility performance,
3 the utility's performance shall be compared to standards
4 established in the Commission order authorizing the
5 implementation of the other regulatory mechanisms. Before
6 authorizing the implementation of programs that are either
7 alternatives to rate of return regulation or other regulatory
8 mechanisms that reward or penalize utilities through the
9 adjustment of rates based on utility performance, the
10 Commission shall:
11 (1) make a finding that the implementation of such
12 programs is in the public interest;
13 (2) make a finding that the implementation of such
14 programs will produce fair, just, and reasonable rates,
15 consistent with the provisions of Section 9-241 of this
16 Act;
17 (3) where appropriate, make a finding that the
18 programs respond to changes in the utility's industry
19 that are in fact occurring;
20 (4) specifically identify how the programs'
21 departure from traditional rate of return rate making
22 principles will benefit ratepayers through the
23 realization of one or more of the following: efficiency
24 gains; cost savings; or improvements in productivity.
25 The Commission shall issue its order no later than 11
26 months from the date of the filing of the petition. Any such
27 programs shall not extend beyond the public utility's service
28 territory and shall not extend beyond June 30, 2000. No later
29 than December 31, 2000, the Commission shall report to the
30 General Assembly, with appropriate legislative
31 recommendations.
32 (Source: P.A. 89-194, eff. 1-1-96.)
33 (220 ILCS 5/10-113) (from Ch. 111 2/3, par. 10-113)
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1 Sec. 10-113. Rescission or hearing of order.
2 (a) Anything in this Act to the contrary
3 notwithstanding, the Commission may at any time, upon notice
4 to the public utility affected, and after opportunity to be
5 heard as provided in the case of complaints, rescind, alter
6 or amend any rule, regulation, order or decision made by it.
7 Any order rescinding, altering or amending a prior rule,
8 regulation, order or decision shall, when served upon the
9 public utility affected, have the same effect as is herein
10 provided for original rules, regulations, orders or
11 decisions. Within 30 days after the service of any rule or
12 regulation, order or decision of the Commission any party to
13 the action or proceeding may apply for a rehearing in respect
14 to any matter determined in said action or proceeding and
15 specified in the application for rehearing. The Commission
16 shall receive and consider such application and shall grant
17 or deny such application in whole or in part within 20 days
18 from the date of the receipt thereof by the Commission. In
19 case the application for rehearing is granted in whole or in
20 part the Commission shall proceed as promptly as possible to
21 consider such rehearing as allowed. No appeal shall be
22 allowed from any rule, regulation, order or decision of the
23 Commission unless and until an application for a rehearing
24 thereof shall first have been filed with and finally disposed
25 of by the Commission: provided, however, that in case the
26 Commission shall fail to grant or deny an application for a
27 rehearing in whole or in part within 20 days from the date of
28 the receipt thereof, or shall fail to enter a final order
29 upon rehearing within 150 days after such rehearing is
30 granted, the application for rehearing shall be deemed to
31 have been denied and finally disposed of, and an order to
32 that effect shall be deemed to have been served, for the
33 purpose of an appeal from the rule, regulation, order or
34 decision covered by such application. No person or
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1 corporation in any appeal shall urge or rely upon any grounds
2 not set forth in such application for a rehearing before the
3 Commission. An application for rehearing shall not excuse any
4 corporation or person from complying with and obeying any
5 rule, regulation, order or decision or any requirement of any
6 rule, regulation, order or decision of the Commission
7 theretofore made, or operate in any manner to stay or
8 postpone the enforcement thereof, except in such cases and
9 upon such terms as the Commission may by order direct. If,
10 after such rehearing and consideration of all the facts,
11 including those arising since the making of the rule,
12 regulation, order or decision, the Commission shall be of the
13 opinion that the original rule, regulation, order or decision
14 or any part thereof is in any respect unjust or unwarranted,
15 or should be changed, the Commission may rescind, alter or
16 amend the same. A rule, regulation, order or decision made
17 after such rehearing, rescinding, altering or amending the
18 original rule, regulation, order or decision shall have the
19 same force and effect as an original rule, regulation, order
20 or decision, but shall not affect any right or the
21 enforcement of any right arising from or by virtue of the
22 original rule, regulation, order or decision unless so
23 ordered by the Commission. Only one rehearing shall be
24 granted by the Commission; but this shall not be construed to
25 prevent any party from filing a petition setting up a new and
26 different state of facts after 2 years, and invoking the
27 action of the Commission thereon.
28 (b) Notwithstanding any contrary or inconsistent
29 provision in the Illinois Administrative Procedure Act, the
30 Commission may, in accordance with this Section, make a
31 change in a rule or regulation adopted or modified pursuant
32 to Section 5-40 of the Illinois Administrative Procedure Act,
33 upon consideration of an application for rehearing of the
34 Commission's order directing that the rule or regulation be
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1 filed with the Secretary of State and published in the
2 Illinois Register pursuant to subsection (d) of Section 5-40.
3 The Commission shall provide the parties to the original
4 hearing in which the rule was adopted or modified no less
5 than 7 days notice to provide responses to the change the
6 Commission proposes to make. Any such change shall be based
7 upon evidence submitted in the record in the original hearing
8 or in the rehearing. If the Commission makes such a
9 substantive change in the rule or regulation pursuant to this
10 subsection, it shall provide notice of the amendment to the
11 rule or regulation to the Joint Committee on Administrative
12 Rules in accordance with subsection (c) of Section 5-40, and
13 shall thereafter comply with the requirements of subsection
14 (d) of Section 5-40 with respect to the rule or regulation as
15 amended. The running of the time period specified in
16 subsection (e) of Section 5-40 of the Illinois Administrative
17 Procedure Act for completing a rulemaking proceeding shall be
18 tolled for the period of time necessary for the Commission to
19 receive and consider an application for rehearing and to
20 conduct any proceedings on rehearing, provided, that such
21 tolling shall not serve to extend any of the time periods
22 provided for in subsection (a) of this Section.
23 (Source: P.A. 84-617.)
24 Section 15. Except as otherwise provided in Section 60
25 of this amendatory Act of 1997, iIf any provision added by
26 this amendatory Act of 1997 is held invalid, this entire
27 amendatory Act of 1997 shall be deemed invalid, and the
28 provisions of Section 1.31, "Severability", of the Statute on
29 Statutes are hereby expressly declared not applicable to this
30 amendatory Act of 1997; provided, however (i) that any
31 contracts entered into and performed, transactions completed,
32 orders issued, services provided, billings rendered, or
33 payments made in accordance with the provisions of this
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1 amendatory Act of 1997, other than as provided in clause (ii)
2 below, prior to the date of the determination of such
3 invalidity, shall not thereby be rendered invalid; (ii) that
4 no presumption as to the validity or invalidity of any
5 contracts, transactions, orders, billings, or payments
6 pursuant to Article XVIII of the Public Utilities Act shall
7 result from a determination of invalidity of this amendatory
8 Act of 1997; and (iii) that the provisions of proviso (i)
9 shall not be deemed to preserve the validity of any executory
10 contracts or transactions, of any actions to be taken
11 pursuant to orders issued, or of any services to be
12 performed, billings to be rendered, or payments to be made,
13 pursuant to provisions of this amendatory Act of 1997
14 subsequent to the date of determination of such invalidity.
15 (220 ILCS 5/8-402 rep.)
16 (220 ILCS 5/8-402.1 rep.)
17 (220 ILCS 5/8-404 rep.)
18 Section 18. Sections 8-402, 8-402.1, and 8-404 of the
19 Public Utilities Act are hereby repealed.
20 ARTICLE 2
21 Section 2-1. Short title. This Article may be cited as
22 the Electricity Excise Tax Law.
23 Section 2-2. Findings and intent. The General Assembly
24 finds that the deregulation and restructuring of the electric
25 utility industry in this State mandated and implemented by
26 this amendatory Act of 1997, including the unbundling of
27 services and the authorization of competition in the
28 provision of those services such that consumers may in the
29 future transact with multiple providers to obtain the
30 services that were formerly provided by a single franchised
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1 monopoly supplier of electricity, renders the system of
2 taxation embodied in the Public Utilities Revenue Act
3 impracticable and infeasible. The General Assembly further
4 finds that the deregulation and restructuring of the electric
5 utility industry necessitate changes to the existing system
6 of taxation in order to preserve revenue neutrality in tax
7 collections for the State of Illinois, to avoid placing any
8 supplier engaged in the business of distributing, supplying,
9 furnishing, selling, transmitting or delivering electricity
10 at a competitive disadvantage, to minimize additional
11 administrative costs and burdens of collection, and to avoid
12 the imposition of increased tax burdens on individual
13 consumers of electricity, particularly residential electric
14 users virtually all of whom, pursuant to Section 2 of the
15 Public Utilities Revenue Act, presently bear the economic
16 burden of the tax imposed thereunder at the rate of .32 cents
17 per kilowatt-hour distributed, supplied, furnished, sold,
18 transmitted or delivered to them. The General Assembly
19 further finds that to change the current rates at which
20 non-residential users bear the economic burden of the Public
21 Utilities Revenue Tax, thereby resulting in increases in the
22 amount of tax for which non-residential users bear the
23 economic burden, could impose additional cost burdens on
24 businesses in this State and adversely affect economic
25 development and business retention in Illinois unless such
26 users are provided options for paying an excise tax on the
27 basis of purchase price. The General Assembly therefore
28 finds that there is a compelling public need to modify the
29 system of taxation embodied in the Public Utilities Revenue
30 Act by repealing the tax imposed by Section 2 of that Act and
31 imposing this electricity excise tax so as to:
32 (1) Impose the electricity excise tax on the
33 privilege of electric use measured by the kilowatt-hours
34 delivered to the purchaser;
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1 (2) As part of this amendatory Act of 1997, repeal
2 the tax imposed by Section 2-202 of the Public Utilities
3 Act as applicable to electric utilities and establish the
4 rates of tax imposed under the electricity excise tax in
5 order to collect substantially the same amount of revenue
6 as was collected under Section 2-202 of that Act; and
7 (3) Allow non-residential consumers of electricity
8 to elect to register with the Department of Revenue as
9 self-assessing purchasers and to pay the electricity
10 excise tax directly to the Department at a rate which is
11 established as a percentage of such consumer's purchase
12 price for electricity distributed, supplied, furnished,
13 sold, transmitted or delivered to the purchaser.
14 Section 2-3. Definitions. As used in this Law, unless
15 the context clearly requires otherwise:
16 (a) "Department" means the Department of Revenue of the
17 State of Illinois.
18 (b) "Director" means the Director of the Department of
19 Revenue of the State of Illinois.
20 (c) "Person" means any natural individual, firm, trust,
21 estate, partnership, association, joint stock company, joint
22 venture, corporation, limited liability company, or a
23 receiver, trustee, guardian, or other representative
24 appointed by order of any court, or any city, town, village,
25 county, or other political subdivision of this State.
26 (d) "Purchase price" means the consideration paid for
27 the distribution, supply, furnishing, sale, transmission or
28 delivery of electricity to a person for non-residential use
29 or consumption (and for both residential and non-residential
30 use or consumption in the case of electricity purchased from
31 a municipal system or electric cooperative described in
32 subsection (b) of Section 2-4) and not for resale, and for
33 all services directly related to the production, transmission
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1 or distribution of electricity distributed, supplied,
2 furnished, sold, transmitted or delivered for non-residential
3 use or consumption, and includes transition charges imposed
4 in accordance with Article XVI of the Public Utilities Act
5 and instrument funding charges imposed in accordance with
6 Article XVIII of the Public Utilities Act, as well as cash,
7 services and property of every kind or nature, and shall be
8 determined without any deduction on account of the cost of
9 the service, product or commodity supplied, the cost of
10 materials used, labor or service costs, or any other expense
11 whatsoever. However, "purchase price" shall not include
12 consideration paid for:
13 (i) any charge for a dishonored check;
14 (ii) any finance or credit charge, penalty or
15 charge for delayed payment, or discount for prompt
16 payment;
17 (iii) any charge for reconnection of service or for
18 replacement or relocation of facilities;
19 (iv) any advance or contribution in aid of
20 construction;
21 (v) repair, inspection or servicing of equipment
22 located on customer premises;
23 (vi) leasing or rental of equipment, the leasing or
24 rental of which is not necessary to furnishing, supplying
25 or selling electricity;
26 (vii) any purchase by a purchaser if the supplier
27 is prohibited by federal or State constitution, treaty,
28 convention, statute or court decision from recovering the
29 related tax liability from such purchaser; and
30 (viii) any amounts added to purchasers' bills
31 because of charges made pursuant to the tax imposed by
32 this Law.
33 In case credit is extended, the amount thereof shall be
34 included only as and when payments are made.
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1 "Purchase price" shall not include consideration received
2 from business enterprises certified under Section 9-222.1 of
3 the Public Utilities Act, as amended, to the extent of such
4 exemption and during the period of time specified by the
5 Department of Commerce and Community Affairs.
6 (e) "Purchaser" means any person who acquires
7 electricity for use or consumption and not for resale, for a
8 valuable consideration.
9 (f) "Non-residential electric use" means any use or
10 consumption of electricity which is not residential electric
11 use.
12 (g) "Residential electric use" means electricity used or
13 consumed at a dwelling of 2 or fewer units, or electricity
14 for household purposes used or consumed at a building with
15 multiple dwelling units where the electricity is registered
16 by a separate meter for each dwelling unit.
17 (h) "Self-assessing purchaser" means a purchaser for
18 non-residential electric use who elects to register with and
19 to pay tax directly to the Department in accordance with
20 Sections 2-10 and 2-11 of this Law.
21 (i) "Delivering supplier" means any person engaged in
22 the business of delivering electricity to persons for use or
23 consumption and not for resale and who, in any case where
24 more than one person participates in the delivery of
25 electricity to a specific purchaser, is the last of the
26 suppliers engaged in delivering the electricity prior to its
27 receipt by the purchaser.
28 (j) "Delivering supplier maintaining a place of business
29 in this State", or any like term, means any delivering
30 supplier having or maintaining within this State, directly or
31 by a subsidiary, an office, generation facility, transmission
32 facility, distribution facility, sales office or other place
33 of business, or any employee, agent or other representative
34 operating within this State under the authority of such
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1 delivering supplier or such delivering supplier's subsidiary,
2 irrespective of whether such place of business or agent or
3 other representative is located in this State permanently or
4 temporarily, or whether such delivering supplier or such
5 delivering supplier's subsidiary is licensed to do business
6 in this State.
7 (k) "Use" means the exercise by any person of any right
8 or power over electricity incident to the ownership of that
9 electricity, except that it does not include the generation,
10 production, transmission, distribution, delivery or sale of
11 electricity in the regular course of business or the use of
12 electricity for such purposes.
13 Section 2-4. Tax imposed.
14 (a) Except as provided in subsection (b), a tax is
15 imposed on the privilege of using in this State electricity
16 purchased for use or consumption and not for resale, other
17 than by municipal corporations owning and operating a local
18 transportation system for public service, at the following
19 rates per kilowatt-hour delivered to the purchaser:
20 (i) For the first 2000 kilowatt-hours used or consumed
21 in a month: 0.330 cents per kilowatt-hour;
22 (ii) For the next 48,000 kilowatt-hours used or consumed
23 in a month: 0.319 cents per kilowatt-hour;
24 (iii) For the next 50,000 kilowatt-hours used or
25 consumed in a month: 0.303 cents per kilowatt-hour;
26 (iv) For the next 400,000 kilowatt-hours used or
27 consumed in a month: 0.297 cents per kilowatt-hour;
28 (v) For the next 500,000 kilowatt-hours used or consumed
29 in a month: 0.286 cents per kilowatt-hour;
30 (vi) For the next 2,000,000 kilowatt-hours used or
31 consumed in a month: 0.270 cents per kilowatt-hour;
32 (vii) For the next 2,000,000 kilowatt-hours used or
33 consumed in a month: 0.254 cents per kilowatt-hour;
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1 (viii) For the next 5,000,000 kilowatt-hours used or
2 consumed in a month: 0.233 cents per kilowatt-hour;
3 (ix) For the next 10,000,000 kilowatt-hours used or
4 consumed in a month: 0.207 cents per kilowatt-hour;
5 (x) For all electricity in excess of 20,000,000
6 kilowatt-hours used or consumed in a month: 0.202 cents per
7 kilowatt-hour.
8 Provided, that in lieu of the foregoing rates, the tax is
9 imposed on a self-assessing purchaser at the rate of 5.1% of
10 the self-assessing purchaser's purchase price for all
11 electricity distributed, supplied, furnished, sold,
12 transmitted and delivered to the self-assessing purchaser in
13 a month.
14 (b) A tax is imposed on the privilege of using in this
15 State electricity purchased from a municipal system or
16 electric cooperative, as defined in Article XVII of the
17 Public Utilities Act, which has not made an election as
18 permitted by either Section 17-200 or Section 17-300 of such
19 Act, at the lesser of 0.32 cents per kilowatt hour of all
20 electricity distributed, supplied, furnished, sold,
21 transmitted, and delivered by such municipal system or
22 electric cooperative to the purchaser or 5% of each such
23 purchaser's purchase price for all electricity distributed,
24 supplied, furnished, sold, transmitted, and delivered by such
25 municipal system or electric cooperative to the purchaser,
26 whichever is the lower rate as applied to each purchaser in
27 each billing period.
28 (c) The tax imposed by this Section 2-4 is not imposed
29 with respect to any use of electricity by business
30 enterprises certified under Section 9-222.1 of the Public
31 Utilities Act, as amended, to the extent of such exemption
32 and during the time specified by the Department of Commerce
33 and Community Affairs; or with respect to any transaction in
34 interstate commerce, or otherwise, to the extent to which
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1 such transaction may not, under the Constitution and statutes
2 of the United States, be made the subject of taxation by this
3 State.
4 Section 2-5. Multistate exemption. To prevent actual
5 multi-state taxation of the privilege that is subject to
6 taxation under this Law, any purchaser, upon proof that
7 purchaser has paid a tax in another state on such event,
8 shall be allowed a credit against the tax imposed by this
9 Law, to the extent of the amount of the tax properly due and
10 paid in the other state.
11 Section 2-6. Sunset of exemptions, credits and
12 deductions. The application of every exemption, credit and
13 deduction against tax imposed by this Law, shall be limited
14 by a reasonable and appropriate sunset date. A purchaser
15 subject to the tax imposed by this Law is not entitled to
16 take the exemption, credit, or deduction beginning on the
17 sunset date and thereafter. If a reasonable and appropriate
18 sunset date is not specified in the Public Act that creates
19 the exemption, credit, or deduction, a purchaser shall not be
20 entitled to take the exemption, credit, or deduction
21 beginning 5 years after the effective date of the Public Act
22 creating the exemption, credit, or deduction and thereafter.
23 The provisions of this Section shall not apply to the
24 exemption provided by Section 2-5 of this Law.
25 Section 2-7. Collection of electricity excise tax. The
26 tax imposed by this Law shall be collected from the
27 purchaser, other than a self-assessing purchaser who provides
28 a copy of an active certification described in Sections 2-10
29 and 2-10.5 of this Law, by any delivering supplier
30 maintaining a place of business in this State at the rates
31 stated in Section 2-4 with respect to the electricity
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1 delivered by such delivering supplier to or for the
2 purchaser, and shall be remitted to the Department as
3 provided in Section 2-9 of this Law. All sales to a purchaser
4 are presumed subject to tax collection unless the purchaser
5 provides the delivering supplier with a copy of an active
6 certification described in Sections 2-10 and 2-10.5 of this
7 Law. Upon receipt of an active certification from a
8 purchaser, the delivering supplier is relieved of all
9 liability for the collection and remittance of tax from the
10 self-assessing purchaser who has provided the certification.
11 The delivering supplier is relieved of the liability for the
12 collection of the tax from a self-assessing purchaser until
13 such time as the delivering supplier is notified in writing
14 by the purchaser that the purchaser's certification as a
15 self-assessing purchaser is no longer in effect. Delivering
16 suppliers shall collect the tax from purchasers by adding the
17 tax to the amount of the purchase price received from the
18 purchaser for delivering electricity for or to the purchaser.
19 Where a delivering supplier does not collect the tax from a
20 purchaser, other than a self-assessing purchaser, as provided
21 herein, such purchaser shall pay the tax directly to the
22 Department.
23 Section 2-7.5. Registration of delivering suppliers. A
24 person who engages in business as a delivering supplier of
25 electricity in this State shall register with the Department.
26 Application for a certificate of registration shall be made
27 to the Department upon forms furnished by the Department and
28 shall contain any reasonable information the Department may
29 require. Upon receipt of the application for a certificate
30 of registration in proper form, the Department shall issue
31 to the applicant a certificate of registration.
32 The Department may deny a certificate of registration to
33 any applicant if such applicant is in default for moneys
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1 due under this Law.
2 Any person aggrieved by any decision of the Department
3 under this Section may, within 20 days after notice of such
4 decision, protest and request a hearing, whereupon the
5 Department shall give notice to such person of the time and
6 place fixed for such hearing and shall hold a hearing in
7 conformity with the provisions of this Law and then issue
8 its final administrative decision in the matter to such
9 person. In the absence of such a protest within 20 days, the
10 Department's decision shall become final without any further
11 determination being made or notice given.
12 Section 2-7.6. Revocation of certificate of registration.
13 The Department may, after notice and a hearing as provided
14 herein, revoke the certificate of registration of any person
15 who violates any of the provisions of this Law. Before
16 revocation of a certificate of registration, the Department
17 shall, within 90 days after non-compliance and at least 7
18 days prior to the date of the hearing, give the person so
19 accused notice in writing of the charge against him or her,
20 and on the date designated shall conduct a hearing upon this
21 matter. The lapse of such 90 day period shall not preclude
22 the Department from conducting revocation proceedings at a
23 later date if necessary. Any hearing held under this
24 Section shall be conducted by the Director or by any officer
25 or employee of the Department designated in writing by the
26 Director.
27 Upon the hearing of any such proceeding, the Director or
28 any officer or employee of the Department designated in
29 writing by the Director may administer oaths, and the
30 Department may procure by its subpoena the attendance of
31 witnesses and, by its subpoena duces tecum, the production
32 of relevant books and papers. Any circuit court, upon
33 application either of the accused or of the Department, may,
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1 by order duly entered, require the attendance of witnesses
2 and the production of relevant books and papers before the
3 Department in any hearing relating to the revocation of
4 certificates of registration. Upon refusal or neglect to
5 obey the order of the court, the court may compel obedience
6 thereof by proceedings for contempt.
7 The Department may, by application to any circuit court,
8 obtain an injunction requiring any person who engages in
9 business as a delivering supplier of electricity to obtain a
10 certificate of registration. Upon refusal or neglect to obey
11 the order of the court, the court may compel obedience by
12 proceedings for contempt.
13 Section 2-8. Tax collected as debt owed to State. The
14 tax herein required to be collected by any delivering
15 supplier maintaining a place of business in this State, and
16 any such tax collected by that person, shall constitute a
17 debt owed by that person to this State, provided, that the
18 delivering supplier shall be allowed credit for such tax
19 related to deliveries of electricity the charges for which
20 are written off as uncollectible, and provided further, that
21 if such charges are thereafter collected, the delivering
22 supplier shall be obligated to remit such tax. For purposes
23 of this Section, any partial payment not specifically
24 identified by the purchaser shall be deemed to be for the
25 delivery of electricity.
26 Section 2-9. Return and payment of tax by delivering
27 supplier. Each delivering supplier who is required or
28 authorized to collect the tax imposed by this Law shall make
29 a return to the Department on or before the 15th day of each
30 month for the preceding calendar month stating the following:
31 (1) The delivering supplier's name.
32 (2) The address of the delivering supplier's principal
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1 place of business and the address of the principal place of
2 business (if that is a different address) from which the
3 delivering supplier engaged in the business of delivering
4 electricity in this State.
5 (3) The total number of kilowatt-hours which the
6 supplier delivered to or for purchasers during the preceding
7 calendar month and upon the basis of which the tax is
8 imposed.
9 (4) Amount of tax, computed upon Item (3) at the rates
10 stated in Section 2-4.
11 (5) An adjustment for uncollectible amounts of tax in
12 respect of prior period kilowatt-hour deliveries, determined
13 in accordance with rules and regulations promulgated by the
14 Department.
15 (6) Such other information as the Department reasonably
16 may require.
17 In making such return the delivering supplier may use any
18 reasonable method to derive reportable "kilowatt-hours" from
19 the delivering supplier's records.
20 If the average monthly tax liability to the Department of
21 the delivering supplier does not exceed $2,500, the
22 Department may authorize the delivering supplier's returns to
23 be filed on a quarter-annual basis, with the return for
24 January, February and March of a given year being due by
25 April 30 of such year; with the return for April, May and
26 June of a given year being due by July 31 of such year; with
27 the return for July, August and September of a given year
28 being due by October 31 of such year; and with the return for
29 October, November and December of a given year being due by
30 January 31 of the following year.
31 If the average monthly tax liability to the Department of
32 the delivering supplier does not exceed $1,000, the
33 Department may authorize the delivering supplier's returns to
34 be filed on an annual basis, with the return for a given year
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1 being due by January 31 of the following year.
2 Such quarter-annual and annual returns, as to form and
3 substance, shall be subject to the same requirements as
4 monthly returns.
5 Notwithstanding any other provision in this Law
6 concerning the time within which a delivering supplier may
7 file a return, any such delivering supplier who ceases to
8 engage in a kind of business which makes the person
9 responsible for filing returns under this Law shall file a
10 final return under this Law with the Department not more than
11 one month after discontinuing such business.
12 Each delivering supplier whose average monthly liability
13 to the Department under this Law was $10,000 or more during
14 the preceding calendar year, excluding the month of highest
15 liability and the month of lowest liability in such calendar
16 year, and who is not operated by a unit of local government,
17 shall make estimated payments to the Department on or before
18 the 7th, 15th, 22nd and last day of the month during which
19 tax liability to the Department is incurred in an amount not
20 less than the lower of either 22.5% of such delivering
21 supplier's actual tax liability for the month or 25% of such
22 delivering supplier's actual tax liability for the same
23 calendar month of the preceding year. The amount of such
24 quarter-monthly payments shall be credited against the final
25 tax liability of such delivering supplier's return for that
26 month. An outstanding credit approved by the Department or a
27 credit memorandum issued by the Department arising from such
28 delivering supplier's overpayment of his or her final tax
29 liability for any month may be applied to reduce the amount
30 of any subsequent quarter-monthly payment or credited against
31 the final tax liability of such delivering supplier's return
32 for any subsequent month. If any quarter-monthly payment is
33 not paid at the time or in the amount required by this
34 Section, such delivering supplier shall be liable for penalty
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1 and interest on the difference between the minimum amount due
2 as a payment and the amount of such payment actually and
3 timely paid, except insofar as such delivering supplier has
4 previously made payments for that month to the Department in
5 excess of the minimum payments previously due.
6 If the Director finds that the information required for
7 the making of an accurate return cannot reasonably be
8 compiled by such delivering supplier within 15 days after the
9 close of the calendar month for which a return is to be made,
10 the Director may grant an extension of time for the filing of
11 such return for a period not to exceed 31 calendar days. The
12 granting of such an extension may be conditioned upon the
13 deposit by such delivering supplier with the Department of an
14 amount of money not exceeding the amount estimated by the
15 Director to be due with the return so extended. All such
16 deposits shall be credited against such delivering supplier's
17 liabilities under this Law. If the deposit exceeds such
18 delivering supplier's present and probable future liabilities
19 under this Law, the Department shall issue to such delivering
20 supplier a credit memorandum, which may be assigned by such
21 delivering supplier to a similar person under this Law, in
22 accordance with reasonable rules and regulations to be
23 prescribed by the Department.
24 The delivering supplier making the return provided for in
25 this Section shall, at the time of making such return, pay to
26 the Department the amount of tax imposed by this Law.
27 A delivering supplier who has an average monthly tax
28 liability of $10,000 or more shall make all payments
29 required by rules of the Department by electronic funds
30 transfer. The term "average monthly tax liability" shall be
31 the sum of the delivering supplier's liabilities under this
32 Law for the immediately preceding calendar year divided by
33 12. Any delivering supplier not required to make payments
34 by electronic funds transfer may make payments by electronic
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1 funds transfer with the permission of the Department. All
2 delivering suppliers required to make payments by electronic
3 funds transfer and any delivering suppliers authorized to
4 voluntarily make payments by electronic funds transfer shall
5 make those payments in the manner authorized by the
6 Department.
7 Each month the Department shall pay into the Public
8 Utility Fund in the State treasury an amount determined by
9 the Director to be equal to 3.0% of the funds received by the
10 Department pursuant to this Section. The remainder of all
11 moneys received by the Department under this Section shall be
12 paid into the General Revenue Fund in the State treasury.
13 Section 2-10. Election to be self-assessing purchaser.
14 Any purchaser for non-residential electric use may elect to
15 register with the Department as a self-assessing purchaser
16 and to pay the tax imposed by Section 2-4 directly to the
17 Department, at the rate stated in that Section for
18 self-assessing purchasers, rather than paying the tax to such
19 purchaser's delivering supplier. The election by a purchaser
20 to register as a self-assessing purchaser may not be revoked
21 by the purchaser for at least 12 months thereafter. A
22 purchaser who revokes his or her registration as a
23 self-assessing purchaser shall not thereafter be permitted to
24 register as a self-assessing purchaser within the succeeding
25 12 months. A self-assessing purchaser shall renew his or her
26 registration every 12 months, or the registration shall be
27 deemed to be revoked.
28 Section 2-10.5. Registration of self-assessing
29 purchaser. Application for a certificate of registration as
30 a self-assessing purchaser shall be made to the Department
31 upon forms furnished by the Department and shall contain any
32 reasonable information the Department may require. Upon
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1 receipt of the application for a certificate of registration
2 in proper form and payment of a bi-annual renewal fee not to
3 exceed $200, the Department shall issue to the applicant a
4 certificate of registration that permits the person to whom
5 it was issued to pay the tax incurred under this Law
6 directly to the Department for a period of 2 years. A
7 certificate of registration under this Section shall
8 automatically be renewed, subject to revocation as provided
9 by this Law, for additional 2-year periods from the date of
10 its expiration unless otherwise notified by the Department.
11 Upon the expiration or revocation of a certificate of
12 registration as a self-assessing purchaser, the person to
13 whom such certificate had been issued shall provide written
14 notice of the expiration or revocation of the certificate to
15 that person's delivering supplier or suppliers.
16 The Department may deny a certificate of registration to
17 any applicant if the owner, any partner, any manager or
18 member of a limited liability company, or a corporate
19 officer of the applicant, is or has been the owner, a
20 partner, a manager or member of a limited liability company,
21 or a corporate officer, of another self-assessing purchaser
22 that is in default for moneys due under this Law.
23 Any person aggrieved by any decision of the Department
24 under this Section may, within 20 days after notice of such
25 decision, protest and request a hearing, whereupon the
26 Department shall give notice to such person of the time and
27 place fixed for such hearing and shall hold a hearing in
28 conformity with the provisions of this Law and then issue
29 its final administrative decision in the matter to such
30 person. In the absence of such a protest within 20 days, the
31 Department's decision shall become final without any further
32 determination being made or notice given.
33 Section 2-10.6. Revocation of certificate of
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1 registration. The Department may, after notice and a
2 hearing as provided herein, revoke the certificate of
3 registration of any person who violates any of the
4 provisions of this Law. Before revocation of a certificate
5 of registration the Department shall, within 90 days after
6 non-compliance and at least 7 days prior to the date of the
7 hearing, give the person so accused notice in writing of the
8 charge against him or her, and on the date designated shall
9 conduct a hearing upon this matter. The lapse of such 90
10 day period shall not preclude the Department from conducting
11 revocation proceedings at a later date if necessary. Any
12 hearing held under this Section shall be conducted by the
13 Director of Revenue or by any officer or employee of the
14 Department designated, in writing, by the Director of
15 Revenue.
16 Upon the hearing of any such proceeding, the Director of
17 Revenue, or any officer or employee of the Department
18 designated, in writing, by the Director of Revenue, may
19 administer oaths, and the Department may procure by its
20 subpoena the attendance of witnesses and, by its subpoena
21 duces tecum, the production of relevant books and papers.
22 Any circuit court, upon application either of the accused or
23 of the Department, may, by order duly entered, require the
24 attendance of witnesses and the production of relevant books
25 and papers, before the Department in any hearing relating to
26 the revocation of certificates of registration. Upon refusal
27 or neglect to obey the order of the court, the court may
28 compel obedience thereof by proceedings for contempt.
29 Section 2-11. Direct return and payment by
30 self-assessing purchaser. When electricity is used or
31 consumed by a self-assessing purchaser subject to the tax
32 imposed by this Law who did not pay the tax to a delivering
33 supplier maintaining a place of business within this State
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1 and required or authorized to collect the tax, that
2 self-assessing purchaser shall, on or before the 15th day of
3 each month, make a return to the Department for the preceding
4 calendar month, stating all of the following:
5 (1) The self-assessing purchaser's name and
6 principal address.
7 (2) The aggregate purchase price paid by the
8 self-assessing purchaser for the distribution, supply,
9 furnishing, sale, transmission and delivery of such
10 electricity to or for the purchaser during the preceding
11 calendar month, including budget plan and other
12 purchaser-owned amounts applied during such month in
13 payment of charges includible in the purchase price, and
14 upon the basis of which the tax is imposed.
15 (3) Amount of tax, computed upon Item 2 at the rate
16 stated in Section 2-4.
17 (4) Such other information as the Department
18 reasonably may require.
19 In making such return the self-assessing purchaser may
20 use any reasonable method to derive reportable "purchase
21 price" from the self-assessing purchaser's records.
22 If the average monthly tax liability of the
23 self-assessing purchaser to the Department does not exceed
24 $2,500, the Department may authorize the self-assessing
25 purchaser's returns to be filed on a quarter-annual basis,
26 with the return for January, February and March of a given
27 year being due by April 30 of such year; with the return for
28 April, May and June of a given year being due by July 31 of
29 such year; with the return for July, August, and September of
30 a given year being due by October 31 of such year; and with
31 the return for October, November and December of a given year
32 being due by January 31 of the following year.
33 If the average monthly tax liability of the
34 self-assessing purchaser to the Department does not exceed
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1 $1,000, the Department may authorize the self-assessing
2 purchaser's returns to be filed on an annual basis, with the
3 return for a given year being due by January 31 of the
4 following year.
5 Such quarter-annual and annual returns, as to form and
6 substance, shall be subject to the same requirements as
7 monthly returns.
8 Notwithstanding any other provision in this Law
9 concerning the time within which a self-assessing purchaser
10 may file a return, any such self-assessing purchaser who
11 ceases to be responsible for filing returns under this Law
12 shall file a final return under this Law with the Department
13 not more than one month thereafter.
14 Each self-assessing purchaser whose average monthly
15 liability to the Department pursuant to this Section was
16 $10,000 or more during the preceding calendar year, excluding
17 the month of highest liability and the month of lowest
18 liability during such calendar year, and which is not
19 operated by a unit of local government, shall make estimated
20 payments to the Department on or before the 7th, 15th, 22nd
21 and last day of the month during which tax liability to the
22 Department is incurred in an amount not less than the lower
23 of either 22.5% of such self-assessing purchaser's actual tax
24 liability for the month or 25% of such self-assessing
25 purchaser's actual tax liability for the same calendar month
26 of the preceding year. The amount of such quarter-monthly
27 payments shall be credited against the final tax liability of
28 the self-assessing purchaser's return for that month. An
29 outstanding credit approved by the Department or a credit
30 memorandum issued by the Department arising from the
31 self-assessing purchaser's overpayment of the self-assessing
32 purchaser's final tax liability for any month may be applied
33 to reduce the amount of any subsequent quarter-monthly
34 payment or credited against the final tax liability of such
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1 self-assessing purchaser's return for any subsequent month.
2 If any quarter-monthly payment is not paid at the time or in
3 the amount required by this Section, such person shall be
4 liable for penalty and interest on the difference between the
5 minimum amount due as a payment and the amount of such
6 payment actually and timely paid, except insofar as such
7 person has previously made payments for that month to the
8 Department in excess of the minimum payments previously due.
9 If the Director finds that the information required for
10 the making of an accurate return cannot reasonably be
11 compiled by a self-assessing purchaser within 15 days after
12 the close of the calendar month for which a return is to be
13 made, the Director may grant an extension of time for the
14 filing of such return for a period of not to exceed 31
15 calendar days. The granting of such an extension may be
16 conditioned upon the deposit by such self-assessing purchaser
17 with the Department of an amount of money not exceeding the
18 amount estimated by the Director to be due with the return so
19 extended. All such deposits shall be credited against such
20 self-assessing purchaser's liabilities under this Law. If
21 the deposit exceeds such self-assessing purchaser's present
22 and probable future liabilities under this Law, the
23 Department shall issue to such self-assessing purchaser a
24 credit memorandum, which may be assigned by such
25 self-assessing purchaser to a similar person under this Law,
26 in accordance with reasonable rules and regulations to be
27 prescribed by the Department.
28 The self-assessing purchaser making the return provided
29 for in this Section shall, at the time of making such return,
30 pay to the Department the amount of tax imposed by this Law.
31 A self-assessing purchaser who has an average monthly tax
32 liability of $10,000 or more shall make all payments
33 required by rules of the Department by electronic funds
34 transfer. The term "average monthly tax liability" shall be
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1 the sum of the self-assessing purchaser's liabilities under
2 this Law for the immediately preceding calendar year divided
3 by 12. Any self-assessing purchaser not required to make
4 payments by electronic funds transfer may make payments by
5 electronic funds transfer with the permission of the
6 Department. All self-assessing purchasers required to make
7 payments by electronic funds transfer and any self-assessing
8 purchasers authorized to voluntarily make payments by
9 electronic funds transfer shall make those payments in the
10 manner authorized by the Department.
11 Each month the Department shall pay into the Public
12 Utility Fund in the State treasury an amount determined by
13 the Director to be equal to 3.0% of the funds received by the
14 Department pursuant to this Section. The remainder of all
15 moneys received by the Department under this Section shall be
16 paid into the General Revenue Fund in the State treasury.
17 Section 2-12. Applicability of Retailers' Occupation Tax
18 Act, Public Utilities Revenue Act and Uniform Penalty and
19 Interest Act. The Department shall have full power to
20 administer and enforce this Law; to collect all taxes,
21 penalties and interest due hereunder; to dispose of taxes,
22 penalties and interest so collected in the manner herein
23 provided; and to determine all rights to credit memoranda or
24 refunds arising on account of the erroneous payment of tax,
25 penalty or interest hereunder.
26 All of the provisions of Sections 4 (except that the time
27 limitation provisions shall run from the date when the tax is
28 due rather than from the date when gross receipts are
29 received), 5 (except that the time limitation provisions on
30 the issuances of notices of tax liability shall run from the
31 date when the tax is due rather than from the date when gross
32 receipts are received and except that in the case of a
33 failure to file a return required by this Law, no notice of
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1 tax liability shall be issued on and after each July 1 and
2 January 1 covering tax due with that return during any month
3 or period more than 6 years before that July 1 or January 1,
4 respectively, and except that the 30% penalty provided for in
5 Section 5 shall not apply), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i
6 and 5j of the Retailers' Occupation Tax Act, and Sections 6,
7 8, 9, 10 and 11 of the Public Utilities Revenue Act, which
8 are not inconsistent with this Law, and the Uniform Penalty
9 and Interest Act shall apply, as far as practicable, to the
10 subject matter of this Law to the same extent as if such
11 provisions were included herein. References in such
12 incorporated Sections of the Retailers' Occupation Tax Act
13 and Public Utilities Revenue Act and to taxpayers and to
14 persons engaged in the business of selling tangible personal
15 property at retail means both purchasers and delivering
16 suppliers maintaining a place of business in this State, as
17 required by the particular context, when used in this Law.
18 References in such incorporated Sections of the Retailers'
19 Occupation Tax Act and Public Utilities Revenue Act to gross
20 receipts and to gross receipts received means purchase price
21 or kilowatt-hours used or consumed by the purchaser, as
22 required by the particular context.
23 Section 2-13. Inspection of books and records. Every
24 delivering supplier maintaining a place of business in this
25 State who is obligated to collect and remit the tax imposed
26 on a purchaser by this Law, and every self-assessing
27 purchaser who is obligated to pay the tax imposed by this Law
28 directly to the Department, shall keep books, records,
29 papers and other documents which are adequate to reflect the
30 information which such supplier or such self-assessing
31 purchaser, as the case may be, is required by Section 2-9 or
32 Section 2-11 of this Law to report to the Department by
33 filing returns with the Department. All books and records
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1 and other papers and documents required by this Law to be
2 kept shall be kept in the English language and shall, at all
3 times during business hours of the day, be subject to
4 inspection by the Department or its duly authorized agents
5 and employees. Books and records reflecting purchase price
6 paid and kilowatt-hours delivered, used or consumed during
7 any period with respect to which the Department is authorized
8 to establish liability as provided in Section 2-12 of this
9 Law shall be preserved until the expiration of such period
10 unless the Department, in writing, authorizes their
11 destruction or disposal at an earlier date.
12 The Department may, upon written authorization of the
13 Director, destroy any returns or any records, papers or
14 memoranda pertaining to such returns upon the expiration of
15 any period covered by such returns with respect to which the
16 Department is authorized to establish liability.
17 Section 2-14. Rules and regulations; hearing; review
18 under Administrative Review Law; death or incompetency of
19 party. The Department may make, promulgate and enforce such
20 reasonable rules and regulations relating to the
21 administration and enforcement of this Law as may be deemed
22 expedient.
23 Whenever notice to a purchaser or to a delivering
24 supplier is required by this Law, such notice may be
25 personally served or given by United States certified or
26 registered mail, addressed to the purchaser or delivering
27 supplier concerned at his or her last known address, and
28 proof of such mailing shall be sufficient for the purposes of
29 this Law. In the case of a notice of hearing, the notice
30 shall be mailed not less than 21 days prior to the date fixed
31 for the hearing.
32 All hearings provided for in this Law with respect to a
33 purchaser or to a delivering supplier having its principal
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1 address or principal place of business in any of the several
2 counties of this State shall be held in the county wherein
3 the purchaser or delivering supplier has its principal
4 address or principal place of business. If the purchaser or
5 delivering supplier does not have its principal address or
6 principal place of business in this State, such hearings
7 shall be held in Sangamon County. The Circuit Court of any
8 county wherein a hearing is held shall have power to review
9 all final administrative decisions of the Department in
10 administering the provisions of this Law. If, however, the
11 administrative proceeding which is to be reviewed judicially
12 is a claim for refund proceeding commenced in accordance with
13 this Law and Section 2a of the State Officers and Employees
14 Money Disposition Act, the Circuit Court having jurisdiction
15 of the action for judicial review under this Section and
16 under the Administrative Review Law shall be the same court
17 that entered the temporary restraining order or preliminary
18 injunction which is provided for in Section 2a of the State
19 Officers and Employees Money Disposition Act and which
20 enables such claim proceeding to be processed and disposed of
21 as a claim for refund proceeding rather than as a claim for
22 credit proceeding.
23 The provisions of the Administrative Review Law, and the
24 rules adopted pursuant thereto, shall apply to and govern all
25 proceedings for the judicial review of final administrative
26 decisions of the Department hereunder. The term
27 "administrative decision" is defined as in Section 3-101 of
28 the Code of Civil Procedure.
29 Service upon the Director or Assistant Director of the
30 Department of Revenue of summons issued in any action to
31 review a final administrative decision is service upon the
32 Department. The Department shall certify the record of its
33 proceedings if the person commencing such action shall pay to
34 it the sum of 75 cents per page of testimony taken before the
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1 Department and 25 cents per page of all other matters
2 contained in such record, except that these charges may be
3 waived where the Department is satisfied that the aggrieved
4 party is a poor person who cannot afford to pay such charges.
5 Whenever any proceeding provided by this Law has been
6 begun by the Department or by a person subject thereto and
7 such person thereafter dies or becomes a person under legal
8 disability before the proceeding has been concluded, the
9 legal representative of the deceased person or a person under
10 legal disability shall notify the Department of such death or
11 legal disability. The legal representative, as such, shall
12 then be substituted by the Department in place of and for the
13 person.
14 Within 20 days after notice to the legal representative
15 of the time fixed for that purpose, the proceeding may
16 proceed in all respects and with like effect as though the
17 person had not died or become a person under legal
18 disability.
19 Section 2-15. Illinois Administrative Procedure Act;
20 application. The Illinois Administrative Procedure Act is
21 hereby expressly adopted and shall apply to all
22 administrative rules and procedures of the Department under
23 this Law, except that: (1) paragraph (b) of Section 5-10 of
24 the Illinois Administrative Procedure Act does not apply to
25 final orders, decisions and opinions of the Department, (2)
26 subparagraph (a)(ii) of Section 5-10 of the Illinois
27 Administrative Procedure Act does not apply to forms
28 established by the Department for use under this Law, and (3)
29 the provisions of Section 10-45 of the Illinois
30 Administrative Procedure Act regarding proposals for decision
31 are excluded and not applicable to the Department under this
32 Law.
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1 Section 2-16. Violations. Any purchaser or delivering
2 supplier who is required to but fails to make a return, or
3 who makes a fraudulent return, or who wilfully violates any
4 other provision of this Law or any rule or regulation of the
5 Department for the administration and enforcement of this
6 Law, is guilty of a business offense and, upon conviction
7 thereof, shall be fined not less than $750 nor more than
8 $7,500.
9 Section 2-17. Office of Attorney General; Consumer
10 Utilities Unit. From the moneys collected under this Law,
11 the General Assembly shall appropriate sufficient moneys to
12 the Office of the Attorney General to pay the expenses of the
13 Consumer Utilities Unit incurred in the performance of its
14 duties under Section 6.5 of the Attorney General Act.
15 ARTICLE 3
16 Section 25. The Public Utilities Revenue Act is amended
17 by changing Sections 1, 2a.1, 2a.2, 5, and 7 and adding
18 Section 1a as follows:
19 (35 ILCS 620/1) (from Ch. 120, par. 468)
20 Sec. 1. For the purposes of this Law:
21 "Consumer Price Index" means the Consumer Price Index For
22 All Urban Consumers for all items published by the United
23 States Department of Labor; provided that if this index no
24 longer exists, the Department of Revenue shall prescribe the
25 use of a comparable, substitute index.
26 "Gross receipts" means the consideration received for
27 electricity distributed, supplied, furnished or sold to
28 persons for use or consumption and not for resale, and for
29 all services (including the transmission of electricity for
30 an end-user) rendered in connection therewith, and includes
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1 cash, services and property of every kind or nature, and
2 shall be determined without any deduction on account of the
3 cost of the service, product or commodity supplied, the cost
4 of materials used, labor or service costs, or any other
5 expense whatsoever. However, "gross receipts" shall not
6 include receipts from:
7 (i) any minimum or other charge for electricity or
8 electric service where the customer has taken no
9 kilowatt-hours of electricity;
10 (ii) any charge for a dishonored check;
11 (iii) any finance or credit charge, penalty or
12 charge for delayed payment, or discount for prompt
13 payment;
14 (iv) any charge for reconnection of service or for
15 replacement or relocation of facilities;
16 (v) any advance or contribution in aid of
17 construction;
18 (vi) repair, inspection or servicing of equipment
19 located on customer premises;
20 (vii) leasing or rental of equipment, the leasing
21 or rental of which is not necessary to distributing,
22 furnishing, supplying, selling or transporting
23 electricity;
24 (viii) any sale to a customer if the taxpayer is
25 prohibited by federal or State constitution, treaty,
26 convention, statute or court decision from recovering the
27 related tax liability from such customer; and
28 (ix) any charges added to customers' bills pursuant
29 to the provisions of Section 9-221 or Section 9-222 of
30 the Public Utilities Act, as amended, or any charges
31 added to customers' bills by taxpayers who are not
32 subject to rate regulation by the Illinois Commerce
33 Commission for the purpose of recovering any of the tax
34 liabilities or other amount specified in such provisions
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1 of such Act. In case credit is extended, the amount
2 thereof shall be included only as and when payments are
3 received.
4 "Gross receipts" shall not include consideration received
5 from business enterprises certified under Section 9-222.1 of
6 the Public Utilities Act, as amended, to the extent of such
7 exemption and during the period of time specified by the
8 Department of Commerce and Community Affairs.
9 "Department" means the Department of Revenue of the State
10 of Illinois.
11 "Director" means the Director of Revenue for the
12 Department of Revenue of the State of Illinois.
13 "Distributing electricity" means delivering electric
14 energy to an end user over facilities owned, leased, or
15 controlled by the taxpayer.
16 "Taxpayer" for purposes of the tax on the distribution of
17 electricity imposed by this Act means an electric
18 cooperative, an electric utility, or an alternative retail
19 electric supplier (other than a person that is an alternative
20 retail electric supplier solely pursuant to subsection (e) of
21 Section 16-115 of the Public Utilities Act), as those terms
22 are defined in the Public Utilities Act, a person engaged in
23 the business of distributing, supplying, furnishing or
24 selling electricity in this State for use or consumption and
25 not for resale.
26 "Taxpayer" for purposes of the Public Utilities Revenue
27 Tax means a person engaged in the business of distributing,
28 supplying, furnishing or selling electricity for use or
29 consumption and not for resale.
30 "Person" means any natural individual, firm, trust,
31 estate, partnership, association, joint stock company, joint
32 adventure, corporation, limited liability company, or a
33 receiver, trustee, guardian or other representative appointed
34 by order of any court, or any city, town, county or other
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1 political subdivision of this State.
2 "Invested capital" means that amount equal to (i) the
3 average of the balances at the beginning and end of each
4 taxable period of the taxpayer's total stockholder's equity
5 and total long-term debt, less investments in and advances to
6 all corporations, as set forth on the balance sheets included
7 in the taxpayer's annual report to the Illinois Commerce
8 Commission for the taxable period; (ii) multiplied by a
9 fraction determined under Sections 301 and 304(a) of the
10 "Illinois Income Tax Act" and reported on the Illinois income
11 tax return for the taxable period ending in or with the
12 taxable period in question. However, notwithstanding the
13 income tax return reporting requirement stated above,
14 beginning July 1, 1979, no taxpayer's denominators used to
15 compute the sales, property or payroll factors under
16 subsection (a) of Section 304 of the Illinois Income Tax Act
17 shall include payroll, property or sales of any corporate
18 entity other than the taxpayer for the purposes of
19 determining an allocation for the invested capital tax. This
20 amendatory Act of 1982, Public Act 82-1024, is not intended
21 to and does not make any change in the meaning of any
22 provision of this Act, it having been the intent of the
23 General Assembly in initially enacting the definition of
24 "invested capital" to provide for apportionment of the
25 invested capital of each company, based solely upon the
26 sales, property and payroll of that company. in the case of
27 an electric cooperative subject to the tax imposed by Section
28 2a.1, "invested capital" means an amount equal to the product
29 determined by multiplying, (i) the average of the balances at
30 the beginning and end of the taxable period of the taxpayer's
31 total equity (including memberships, patronage capital,
32 operating margins, non-operating margins, other margins and
33 other equities), as set forth on the balance sheets included
34 in the taxpayer's annual report to the United States
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1 Department of Agriculture Rural Utilities Services
2 Electrification Administration (established pursuant to the
3 federal Rural Electrification Act of 1936, as amended), by
4 (ii) the fraction determined under Sections 301 and 304(a) of
5 the Illinois Income Tax Act, as amended, for the taxable
6 period.
7 "Taxable period" means each calendar year period which
8 ends after the effective date of this Act and which is
9 covered by an annual report filed by the taxpayer with the
10 Illinois Commerce Commission. In the case of an electric
11 cooperative subject to the tax imposed by Section 2a.1,
12 "taxable period" means each calendar year ending after the
13 effective date of this Act and covered by an annual report
14 filed by the taxpayer with the United States Department of
15 Agriculture Rural Utilities Services Electrification
16 Administration.
17 (Source: P.A. 88-480.)
18 (35 ILCS 620/1a new)
19 Sec. 1a. Legislative Intent. The General Assembly
20 previously imposed a tax on the invested capital of electric
21 utilities to replace in part the personal property tax that
22 was abolished by the Illinois Constitution of 1970.
23 Subsequent to the enactment and imposition of the invested
24 capital tax on electric utilities, State and federal laws
25 regulating the provision of electricity have been enacted
26 which provide for the restructuring of the electric power
27 industry into a competitive industry. In response to this
28 restructuring, this amendatory Act of 1997 is intended to
29 provide for a replacement for the invested capital tax on
30 electric utilities, other than electric cooperatives, and
31 replace it with a new tax based on the quantity of
32 electricity that is delivered in this State. The General
33 Assembly finds and declares that this new tax is a fairer and
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1 more equitable means to replace that portion of the personal
2 property tax that was abolished by the Illinois Constitution
3 of 1970 and previously replaced by the invested capital tax
4 on electric utilities, while maintaining a comparable
5 allocation among electric utilities in this State for payment
6 of taxes imposed to replace the personal property tax.
7 (35 ILCS 620/2a.1) (from Ch. 120, par. 469a.1)
8 Sec. 2a.1. Imposition of tax on invested capital and
9 on distribution of electricity.
10 (a) In addition to the tax taxes imposed by the Illinois
11 Income Tax Act and Section 2 of this Act, there is hereby
12 imposed upon every taxpayer persons engaged in the business
13 of distributing, supplying, furnishing or selling electricity
14 and subject to the tax imposed by this Act (other than an
15 electric cooperative, a school district or unit of local
16 government as defined in Section 1 of Article VII of the
17 Illinois Constitution of 1970 and other than persons subject
18 to the tax imposed by Section 2a.1 of the "Gas Revenue Tax
19 Act), an additional tax as follows: in an amount equal to .8%
20 of such persons' invested capital for the taxable period.
21 (i) For the first 500,000,000 kilowatt-hours
22 distributed by the taxpayer in this State during the
23 taxable period, 0.031 cents per kilowatt-hour;
24 (ii) For the next 1,000,000,000 kilowatt-hours
25 distributed by the taxpayer in this State during the
26 taxable period, 0.050 cents per kilowatt-hour;
27 (iii) For the next 2,500,000,000 kilowatt-hours
28 distributed by the taxpayer in this State during the
29 taxable period, 0.070 cents per kilowatt-hour;
30 (iv) For the next 4,000,000,000 killowatt-hours
31 distributed by the taxpayer in this State during the
32 taxable period, 0.140 cents per kilowatt-hour;
33 (v) For the next 7,000,000,000 kilowatt-hours
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1 distributed by the taxpayer in this State during the
2 taxable period, 0.180 cents per kilowatt-hour;
3 (vi) For the next 3,000,000,000 killowatt-hours
4 distributed by the taxpayer in this State during the
5 taxable period, 0.142 cents per kilowatt-hour; and
6 (vii) For all kilowatt-hours distributed by the
7 taxpayer in this State during the taxable period in
8 excess of 18,000,000,000 kilowatt-hours, 0.131 cents per
9 killowatt-hour.
10 (b) There is imposed on electric cooperatives that are
11 required to file reports with the Rural Utilities Service a
12 tax equal to 0.8% of such cooperative's invested capital for
13 the taxable period. The invested capital tax imposed by this
14 subsection shall not be imposed on electric cooperatives not
15 required to file reports with the Rural Utilities Service.
16 (c) If, for any taxable period, the total amount
17 received by the Department from the tax imposed by subsection
18 (a) exceeds $145,279,553 plus, for taxable periods subsequent
19 to 1998, an amount equal to the lesser of (i) 5% or (ii) the
20 percentage increase in the Consumer Price Index during the
21 immediately preceding taxable period, of the total amount
22 received by the Department from the tax imposed by subsection
23 (a) for the immediately preceding taxable period, determined
24 after allowance of the credit provided for in this
25 subsection, the Department shall issue credit memoranda in
26 the aggregate amount of the excess to each of the taxpayers
27 who paid any amount of tax under subsection (a) for that
28 taxable period in the proportion which the amount paid by the
29 taxpayer bears to the total amount paid by all such
30 taxpayers. Any credit memorandum issued to a taxpayer under
31 this subsection may be used as a credit by the taxpayer
32 against its liability in future taxable periods for tax under
33 subsection (a). Any amount credited to a taxpayer shall not
34 be refunded to the taxpayer unless the taxpayer demonstrates
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1 to the reasonable satisfaction of the Department that it will
2 not incur future liability for tax under subsection (a). The
3 Department shall adopt reasonable regulations for the
4 implementation of the provisions of this subsection.
5 If such persons are not liable for such additional tax
6 for the entire taxable period, such additional tax shall be
7 computed on the portion of the taxable period during which
8 such persons were liable for such additional tax. The
9 invested capital tax imposed by this Section shall not be
10 imposed upon persons who are not regulated by the Illinois
11 Commerce Commission or who are not required, in the case of
12 electric cooperatives, to file reports with the Rural
13 Electrification Administration.
14 (Source: P.A. 87-205; 87-313.)
15 (35 ILCS 620/2a.2) (from Ch. 120, par. 469a.2)
16 Sec. 2a.2. Annual return, collection and payment. A
17 return with respect to the tax imposed by Section 2a.1 shall
18 be made by every person for any taxable period for which such
19 person is liable for such tax. Such return shall be made on
20 such forms as the Department shall prescribe and shall
21 contain the following information:
22 1. Taxpayer's name;
23 2. Address of taxpayer's principal place of
24 business, and address of the principal place of business
25 (if that is a different address) from which the taxpayer
26 engages in the business of distributing, supplying,
27 furnishing or selling electricity in this State;
28 3. The total proprietary capital and total
29 long-term debt as of the beginning and end of the taxable
30 period as set forth on the balance sheets included in the
31 taxpayer's annual report to the Illinois Commerce
32 Commission (or, total equity, in the case of electric
33 cooperatives, in the annual reports filed with the Rural
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1 Utilities Service Electrification Administration) for the
2 taxable period;
3 3a. The total kilowatt-hours of electricity
4 distributed by a taxpayer, other than an electric
5 cooperative, in this State for the taxable period covered
6 by the return;
7 4. The taxpayer's base income allocable to Illinois
8 under Sections 301 and 304(a) of the "Illinois Income Tax
9 Act", for the period covered by the return;
10 4. 5. The amount of tax due for the taxable period
11 (computed on the basis of the amounts set forth in Items
12 3 and 3a 4); and
13 5. 6. Such other reasonable information as may be
14 required by forms or regulations prescribed by the
15 Department.
16 The returns prescribed by this Section shall be due and
17 shall be filed with the Department not later than the 15th
18 day of the third month following the close of the taxable
19 period. The taxpayer making the return herein provided for
20 shall, at the time of making such return, pay to the
21 Department the remaining amount of tax herein imposed and due
22 for the taxable period. Each taxpayer shall make estimated
23 quarterly payments on the 15th day of the third, sixth, ninth
24 and twelfth months of each taxable period. Such estimated
25 payments shall be 25% of the tax liability for the
26 immediately preceding taxable period or the tax liability
27 that would have been imposed in the immediately preceding
28 taxable period if this amendatory Act of 1979 had been in
29 effect. All moneys received by the Department under Sections
30 2a.1 and 2a.2 shall be paid into the Personal Property Tax
31 Replacement Fund in the State Treasury.
32 (Source: P.A. 87-205.)
33 (35 ILCS 620/5) (from Ch. 120, par. 472)
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1 Sec. 5. All of the provisions of Sections 4, (except that
2 the time limitation provisions shall run from the date when
3 the tax is due rather than from the date when gross receipts
4 are received), 5 (except that the time limitation provisions
5 on the issuance of notices of tax liability shall run from
6 the date when the tax is due rather than from the date when
7 gross receipts are received and except that, in the case of a
8 failure to file a return required by this Act, no notice of
9 tax liability shall be issued covering tax due with that
10 return more than 6 years after the original due date of that
11 return, and except that the 30% penalty provided for in
12 Section 5 shall not apply), 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i
13 and 5j of the Retailers' Occupation Tax Act, which are not
14 inconsistent with this Act, and Section 3-7 of the Uniform
15 Penalty and Interest Act shall apply, as far as practicable,
16 to the subject matter of this Act to the same extent as if
17 such provisions were included herein. References in such
18 incorporated Sections of the Retailers' Occupation Tax Act to
19 retailers, to sellers or to persons engaged in the business
20 of selling tangible personal property mean persons engaged in
21 the business of distributing, supplying, furnishing or
22 selling electricity when used in this Act. References in such
23 incorporated Sections of the Retailers' Occupation Tax Act to
24 purchasers of tangible personal property mean purchasers of
25 electricity when used in this Act. References in such
26 incorporated Sections of the Retailers' Occupation Tax Act to
27 sales of tangible personal property mean the distributing,
28 supplying, furnishing or selling of electricity when used in
29 this Act.
30 (Source: P.A. 87-205.)
31 (35 ILCS 620/7) (from Ch. 120, par. 474)
32 Sec. 7. Every taxpayer under this Act shall keep books,
33 records, papers and other documents which are adequate to
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1 reflect the information which such taxpayers are required by
2 Section 2a.2 3 of this Act to report to the Department by
3 filing annual monthly returns with the Department. The
4 Department may adopt rules that establish requirements,
5 including record forms and formats, for records required to
6 be kept and maintained by taxpayers. For purposes of this
7 Section, "records" means all data maintained by the taxpayer,
8 including data on paper, microfilm, microfiche or any type of
9 machine-sensible data compilation. All books and records and
10 other papers and documents required by this Act to be kept
11 shall be kept in the English language and shall, at all times
12 during business hours of the day, be subject to inspection by
13 the Department or its duly authorized agents and employees.
14 Books and records reflecting kilowatt-hours of electricity
15 distributed gross receipts received during any period with
16 respect to which the Department is authorized to establish
17 liability as provided in Section Sections 4 and 5 of this Act
18 shall be preserved until the expiration of such period unless
19 the Department, in writing, authorizes their destruction or
20 disposal at an earlier date.
21 The Department may, upon written authorization of the
22 Director, destroy any returns or any records, papers or
23 memoranda pertaining to such returns upon the expiration of
24 any period covered by such returns with respect to which the
25 Department is authorized to establish liability.
26 (Source: P.A. 88-480.)
27 (35 ILCS 620/2 rep.)
28 (35 ILCS 620/2a.3 rep.)
29 (35 ILCS 620/3 rep.)
30 Section 26. The Public Utilities Revenue Act is amended
31 by repealing Sections 2, 2a.3, and 3.
32 Section 30. The Gas Revenue Tax Act is amended by
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1 changing Section 2a.1 as follows:
2 (35 ILCS 615/2a.1) (from Ch. 120, par. 467.17a.1)
3 Sec. 2a.1. Imposition of tax on invested capital. In
4 addition to the taxes imposed by the Illinois Income Tax Act
5 and Section 2 of this Act, there is hereby imposed upon
6 persons engaged in the business of distributing, supplying,
7 furnishing or selling gas and subject to the tax imposed by
8 this Act (other than a school district or unit of local
9 government as defined in Section 1 of Article VII of the
10 Illinois Constitution of 1970), an additional tax in an
11 amount equal to .8% of such persons' invested capital for the
12 taxable period. If such persons are not liable for such
13 additional tax for the entire taxable period, such additional
14 tax shall be computed on the portion of the taxable period
15 during which such persons were liable for such additional
16 tax. The invested capital tax imposed by this Section shall
17 not be imposed upon persons who are not regulated by the
18 Illinois Commerce Commission. Provided, in the case of any
19 person which is subject to the invested capital tax imposed
20 by this Section and which is also subject to the tax on the
21 distribution of electricity imposed by Section 2a.1 of the
22 Public Utilities Revenue Act, the invested capital tax
23 imposed by this Section shall be an amount equal to 0.8% of
24 such person's invested capital for the taxable period
25 multiplied by a fraction the numerator of which is the
26 average of the beginning and ending balances of such person's
27 gross gas utility plant in service and the denominator of
28 which is the average of the beginning and ending balances of
29 such person's gross electric and gas utility plant in
30 service, as set forth in such person's annual report to the
31 Illinois Commerce Commission for the taxable period.
32 (Source: P.A. 87-205; 87-313.)
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1 Section 35. The Public Utilities Act is amended by
2 changing Section 2-202 as follow:
3 (220 ILCS 5/2-202) (from Ch. 111 2/3, par. 2-202)
4 Sec. 2-202. (a) It is declared to be the public policy of
5 this State that in order to maintain and foster the effective
6 regulation of public utilities under this Act in the
7 interests of the People of the State of Illinois and the
8 public utilities as well, the public utilities subject to
9 regulation under this Act and which enjoy the privilege of
10 operating as public utilities in this State, shall bear the
11 expense of administering this Act by means of a tax on such
12 privilege measured by the annual gross revenue of such public
13 utilities in the manner provided in this Section. For
14 purposes of this Section, "expense of administering this Act"
15 includes any costs incident to studies, whether made by the
16 Commission or under contract entered into by the Commission,
17 concerning environmental pollution problems caused or
18 contributed to by public utilities and the means for
19 eliminating or abating those problems. Such proceeds shall be
20 deposited in the Public Utility Fund in the State treasury.
21 (b) All of the ordinary and contingent expenses of the
22 Commission incident to the administration of this Act shall
23 be paid out of the Public Utility Fund except the
24 compensation of the members of the Commission which shall be
25 paid from the General Revenue Fund. Notwithstanding other
26 provisions of this Act to the contrary, the ordinary and
27 contingent expenses of the Commission incident to the
28 administration of the Illinois Commercial Transportation Law
29 may be paid from appropriations from the Public Utility Fund
30 through the end of fiscal year 1986.
31 (c) A tax is imposed upon each public utility subject to
32 the provisions of this Act equal to .08% of its gross revenue
33 for each calendar year commencing with the calendar year
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1 beginning January 1, 1982, except that the Commission may, by
2 rule, establish a different rate no greater than 0.1%. For
3 purposes of this Section, "gross revenue" shall not include
4 revenue from the production, transmission, distribution,
5 sale, delivery, or furnishing of electricity.
6 (d) Annual gross revenue returns shall be filed in
7 accordance with paragraph (1) or (2) of this subsection (d).
8 (1) Except as provided in paragraph (2) of this
9 subsection (d), on or before January 10 of each year each
10 public utility subject to the provisions of this Act
11 shall file with the Commission an estimated annual gross
12 revenue return containing an estimate of the amount of
13 its gross revenue for the calendar year commencing
14 January 1 of said year and a statement of the amount of
15 tax due for said calendar year on the basis of that
16 estimate. Public utilities may also file revised returns
17 containing updated estimates and updated amounts of tax
18 due during the calendar year. These revised returns, if
19 filed, shall form the basis for quarterly payments due
20 during the remainder of the calendar year. In addition,
21 on or before February 15 of each year, each public
22 utility shall file an amended return showing the actual
23 amount of gross revenues shown by the company's books and
24 records as of December 31 of the previous year. Forms and
25 instructions for such estimated, revised, and amended
26 returns shall be devised and supplied by the Commission.
27 (2) Beginning January 1, 1993, the requirements of
28 paragraph (1) of this subsection (d) shall not apply to
29 any public utility in any calendar year for which the
30 total tax the public utility owes under this Section is
31 less than $1,000. For such public utilities with respect
32 to such years, the public utility shall file with the
33 Commission, on or before January 31 of the following
34 year, an annual gross revenue return for the year and a
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1 statement of the amount of tax due for that year on the
2 basis of such a return. Forms and instructions for such
3 returns and corrected returns shall be devised and
4 supplied by the Commission.
5 (e) All returns submitted to the Commission by a public
6 utility as provided in this subsection (e) or subsection (d)
7 of this Section shall contain or be verified by a written
8 declaration by an appropriate officer of the public utility
9 that the return is made under the penalties of perjury. The
10 Commission may audit each such return submitted and may,
11 under the provisions of Section 5-101 of this Act, take such
12 measures as are necessary to ascertain the correctness of the
13 returns submitted. The Commission has the power to direct the
14 filing of a corrected return by any utility which has filed
15 an incorrect return and to direct the filing of a return by
16 any utility which has failed to submit a return. A
17 taxpayer's signing a fraudulent return under this Section is
18 perjury, as defined in Section 32-2 of the Criminal Code of
19 1961.
20 (f) (1) For all public utilities subject to paragraph
21 (1) of subsection (d), at least one quarter of the annual
22 amount of tax due under subsection (c) shall be paid to the
23 Commission on or before the tenth day of January, April,
24 July, and October of the calendar year subject to tax. In
25 the event that an adjustment in the amount of tax due should
26 be necessary as a result of the filing of an amended or
27 corrected return under subsection (d) or subsection (e) of
28 this Section, the amount of any deficiency shall be paid by
29 the public utility together with the amended or corrected
30 return and the amount of any excess shall, after the filing
31 of a claim for credit by the public utility, be returned to
32 the public utility in the form of a credit memorandum in the
33 amount of such excess or be refunded to the public utility in
34 accordance with the provisions of subsection (k) of this
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1 Section. However, if such deficiency or excess is less than
2 $1, then the public utility need not pay the deficiency and
3 may not claim a credit.
4 (2) Any public utility subject to paragraph (2) of
5 subsection (d) shall pay the amount of tax due under
6 subsection (c) on or before January 31 next following the end
7 of the calendar year subject to tax. In the event that an
8 adjustment in the amount of tax due should be necessary as a
9 result of the filing of a corrected return under subsection
10 (e), the amount of any deficiency shall be paid by the public
11 utility at the time the corrected return is filed. Any excess
12 tax payment by the public utility shall be returned to it
13 after the filing of a claim for credit, in the form of a
14 credit memorandum in the amount of the excess. However, if
15 such deficiency or excess is less than $1, the public utility
16 need not pay the deficiency and may not claim a credit.
17 (g) Each installment or required payment of the tax
18 imposed by subsection (c) becomes delinquent at midnight of
19 the date that it is due. Failure to make a payment as
20 required by this Section shall result in the imposition of a
21 late payment penalty, an underestimation penalty, or both, as
22 provided by this subsection. The late payment penalty shall
23 be the greater of:
24 (1) $25 for each month or portion of a month that
25 the installment or required payment is unpaid or
26 (2) an amount equal to the difference between what
27 should have been paid on the due date, based upon the
28 most recently filed estimate, and what was actually paid,
29 times 1% one percent, for each month or portion of a
30 month that the installment or required payment goes
31 unpaid. This penalty may be assessed as soon as the
32 installment or required payment becomes delinquent.
33 The underestimation penalty shall apply to those public
34 utilities subject to paragraph (1) of subsection (d) and
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1 shall be calculated after the filing of the amended return.
2 It shall be imposed if the amount actually paid on any of the
3 dates specified in subsection (f) is not equal to at least
4 one-fourth of the amount actually due for the year, and shall
5 equal the greater of:
6 (1) $25 for each month or portion of a month that
7 the amount due is unpaid or
8 (2) an amount equal to the difference between what
9 should have been paid, based on the amended return, and
10 what was actually paid as of the date specified in
11 subsection (f), times a percentage equal to 1/12 of the
12 sum of 10% and the percentage most recently established
13 by the Commission for interest to be paid on customer
14 deposits under 83 Ill. Adm. Code 280.70(e)(1), for each
15 month or portion of a month that the amount due goes
16 unpaid, except that no underestimation penalty shall be
17 assessed if the amount actually paid on each of the dates
18 specified in subsection (f) was based on an estimate of
19 gross revenues at least equal to the actual gross
20 revenues for the previous year. The Commission may
21 enforce the collection of any delinquent installment or
22 payment, or portion thereof by legal action or in any
23 other manner by which the collection of debts due the
24 State of Illinois may be enforced under the laws of this
25 State. The executive director or his designee may excuse
26 the payment of an assessed penalty if he determines that
27 enforced collection of the penalty would be unjust.
28 (h) All sums collected by the Commission under the
29 provisions of this Section shall be paid promptly after the
30 receipt of the same, accompanied by a detailed statement
31 thereof, into the Public Utility Fund in the State treasury.
32 (i) During the month of October of each odd-numbered
33 year the Commission shall:
34 (1) determine the amount of all moneys deposited in
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1 the Public Utility Fund during the preceding fiscal
2 biennium plus the balance, if any, in that fund at the
3 beginning of that biennium;
4 (2) determine the sum total of the following items:
5 (A) all moneys expended or obligated against
6 appropriations made from the Public Utility Fund during
7 the preceding fiscal biennium, plus (B) the sum of the
8 credit memoranda then outstanding against the Public
9 Utility Fund, if any; and
10 (3) determine the amount, if any, by which the sum
11 determined as provided in item (1) exceeds the amount
12 determined as provided in item (2).
13 If the amount determined as provided in item (3) of this
14 subsection exceeds $2,500,000, the Commission shall then
15 compute the proportionate amount, if any, which (x) the tax
16 paid hereunder by each utility during the preceding biennium,
17 and (y) the amount paid into the Public Utility Fund during
18 the preceding biennium by the Department of Revenue pursuant
19 to Sections 2-9 and 2-11 of the Electricity Excise Tax Law,
20 bears to the difference between the amount determined as
21 provided in item (3) of this subsection (i) and $2,500,000.
22 The Commission shall cause the proportionate amount
23 determined with respect to payments made under the
24 Electricity Excise Tax Law to be transferred into the General
25 Revenue Fund in the State Treasury, and notify each public
26 utility that it may file during the 3 month period after the
27 date of notification a claim for credit for the in such
28 proportionate amount determined with respect to payments made
29 hereunder by the public utility. If the proportionate amount
30 is less than $10, no notification will be sent by the
31 Commission, and no right to a claim exists as to that amount.
32 Upon the filing of a claim for credit within the period
33 provided, the Commission shall issue a credit memorandum in
34 such amount to such public utility. Any claim for credit
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1 filed after the period provided for in this Section is void.
2 (j) Credit memoranda issued pursuant to subsection (f)
3 and credit memoranda issued after notification and filing
4 pursuant to subsection (i) may be applied for the 2 year
5 period from the date of issuance, against the payment of any
6 amount due during that period under the tax imposed by
7 subsection (c), or, subject to reasonable rule of the
8 Commission including requirement of notification, may be
9 assigned to any other public utility subject to regulation
10 under this Act. Any application of credit memoranda after the
11 period provided for in this Section is void.
12 (k) The chairman or executive director may make refund
13 of fees, taxes or other charges whenever he shall determine
14 that the person or public utility will not be liable for
15 payment of such fees, taxes or charges during the next 24
16 months and he determines that the issuance of a credit
17 memorandum would be unjust.
18 (Source: P.A. 86-209; 87-971.)
19 Section 40. The Attorney General Act is amended by
20 adding Section 6.5 as follows:
21 (15 ILCS 205/6.5 new)
22 Sec. 6.5. Consumer Utilities Unit.
23 (a) The General Assembly finds that the health, welfare,
24 and prosperity of all Illinois citizens, and the public's
25 interest in adequate, safe, reliable, cost-effective electric
26 services, requires effective public representation by the
27 Attorney General to protect the rights and interests of the
28 public in the provision of all elements of electric service
29 both during and after the transition to a competitive market,
30 and that to ensure that the benefits of competition in the
31 provision of electric services to all consumers are attained,
32 there shall be created within the Office of the Attorney
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1 General a Consumer Utilities Unit.
2 (b) As used in this Section: "Electric services" means
3 services sold by an electric service provider. "Electric
4 service provider" shall mean anyone who sells, contracts to
5 sell, or markets electric power, generation, distribution,
6 transmission, or services (including metering and billing) in
7 connection therewith. Electric service providers shall
8 include any electric utility and any alternative retail
9 electric supplier as defined in Section 16-102 of the Public
10 Utilities Act.
11 (c) There is created within the Office of the Attorney
12 General a Consumer Utilities Unit, consisting of Assistant
13 Attorneys General appointed by the Attorney General, who,
14 together with such other staff as is deemed necessary by the
15 Attorney General, shall have the power and duty on behalf of
16 the people of the State to intervene in, initiate, enforce,
17 and defend all legal proceedings on matters relating to the
18 provision, marketing, and sale of electric service whenever
19 the Attorney General determines that such action is necessary
20 to promote or protect the rights and interest of all Illinois
21 citizens, classes of customers, and users of electric
22 services.
23 (d) In addition to the investigative and enforcement
24 powers available to the Attorney General, including without
25 limitation those under the Consumer Fraud and Deceptive
26 Business Practices Act and the Illinois Antitrust Act, the
27 Attorney General shall be a party as a matter of right to all
28 proceedings, investigations, and related matters involving
29 the provision of electric services before the Illinois
30 Commerce Commission and shall, upon request, have access to
31 and the use of all files, records, data, and documents in the
32 possession or control of the Commission, which material the
33 Attorney General's office shall maintain as confidential, to
34 be used for law enforcement purposes only, which material may
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1 be shared with other law enforcement officials. Nothing in
2 this Section is intended to take away or limit any of the
3 powers the Attorney General has pursuant to common law or
4 other statutory law.
5 Section 45. The Consumer Fraud and Deceptive Business
6 Practices Act is amended by changing Section 2P and adding
7 Sections 2EE, 2FF, 2GG, and 2HH as follows:
8 (815 ILCS 505/2EE new)
9 Sec. 2EE. Electric service provider selection. An
10 electric service provider shall not submit or execute a
11 change in a subscriber's selection of a provider of electric
12 service except as follows:
13 The new electric service provider has obtained the
14 customer's written authorization in a form that meets the
15 following requirements:
16 (1) An electric service provider shall obtain any
17 necessary written authorization from a subscriber for a
18 change in electric service by using a letter of agency as
19 specified in this Section. Any letter of agency that
20 does not conform with this Section is invalid.
21 (2) The letter of agency shall be a separate
22 document (an easily separable document containing only
23 the authorization language described in subparagraph (5)
24 of this Section) whose sole purpose is to authorize an
25 electric service provider change. The letter of agency
26 must be signed and dated by the subscriber requesting the
27 electric service provider change.
28 (3) The letter of agency shall not be combined with
29 inducements of any kind on the same document.
30 (4) Notwithstanding subparagraphs (1) and (2) of
31 this Section, the letter of agency may be combined with
32 checks that contain only the required letter of agency
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1 language prescribed in paragraph (5) of this Section and
2 the necessary information to make the check a negotiable
3 instrument. The letter of agency check shall not contain
4 any promotional language or material. The letter of
5 agency check shall contain in easily readable, bold-face
6 type on the face of the check, a notice that the consumer
7 is authorizing an electric service provider change by
8 signing the check. The letter of agency language also
9 shall be placed near the signature line on the back of
10 the check.
11 (5) At a minimum, the letter of agency must be
12 printed with a print of sufficient size to be clearly
13 legible, and must contain clear and unambiguous language
14 that confirms:
15 (i) The subscriber's billing name and address;
16 (ii) The decision to change the electric
17 service provider from the current provider to the
18 prospective provider;
19 (iii) The terms, conditions, and nature of the
20 service to be provided to the subscriber must be
21 clearly and conspicuously disclosed, in writing, and
22 an electric service provider must directly establish
23 the rates for the service contracted for by the
24 subscriber; and
25 (iv) That the subscriber understand that any
26 electric service provider selection the subscriber
27 chooses may involve a charge to the subscriber for
28 changing the subscriber's electric service provider.
29 (6) Letters of agency shall not suggest or require
30 that a subscriber take some action in order to retain the
31 subscriber's current electric service provider.
32 (7) If any portion of a letter of agency is
33 translated into another language, then all portions of
34 the letter of agency must be translated into that
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1 language.
2 For purposes of this Section, "electric service provider"
3 shall have the meaning given that phrase in Section 6.5 of
4 the Attorney General Act.
5 (815 ILCS 505/2FF new)
6 Sec. 2FF. Electric service fraud; elderly persons or
7 disabled persons; additional penalties. With respect to the
8 advertising, sale, provider selection, billings, or
9 collections relating to the provision of electric service,
10 where the consumer is an elderly person or disabled person, a
11 civil penalty of $50,000 may be imposed for each violation.
12 For purposes of this Section:
13 (1) "Elderly person" means a person 60 years of age or
14 older.
15 (2) "Disabled person" means a person who suffers from a
16 permanent physical or mental impairment resulting from
17 disease, injury, functional disorder or congenital condition.
18 (3) "Electric service" shall have the meaning given that
19 term in Section 6.5 of the Attorney General Act.
20 (815 ILCS 505/2GG new)
21 Sec. 2GG. Electric service advertising. Any
22 advertisement for electric service that lists rates shall
23 clearly and conspicuously disclose all associated costs for
24 such service including, but not limited to, access fees and
25 service fees.
26 (815 ILCS 505/2HH new)
27 Sec. 2HH. Billing and collection practices of electric
28 service providers. Each person selling generation,
29 transmission, distribution, metering, or billing of electric
30 service shall display the name, the toll-free telephone
31 number of such service provider, and a description of the
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1 services provided on all bills submitted to subscribers of
2 such services. All personal information relating to the
3 subscriber of generation, transmission, distribution,
4 metering, or billing of electric service shall be maintained
5 by the service providers solely for the purpose of generating
6 the bill for such services, and shall not be divulged to any
7 other persons with the exception of credit bureaus,
8 collection agencies, and persons licensed to market electric
9 service in the State of Illinois, without the written consent
10 of the subscriber.
11 (815 ILCS 505/2P) (from Ch. 121 1/2, par. 262P)
12 Sec. 2P. Offers of free prizes, gifts, or gratuities;
13 disclosure of conditions. It is an unlawful practice for any
14 person to promote or advertise any business, product, utility
15 service, including but not limited to, the provision of
16 electric, telecommunication, or gas service, or interest in
17 property, by means of offering free prizes, gifts, or
18 gratuities to any consumer, unless all material terms and
19 conditions relating to the offer are clearly and
20 conspicuously disclosed at the outset of the offer so as to
21 leave no reasonable probability that the offering might be
22 misunderstood.
23 (Source: P.A. 84-1308.)
24 Section 65. The Illinois Municipal Code is amended by
25 changing Section 8-11-2 as follows:
26 (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
27 Sec. 8-11-2. The corporate authorities of any
28 municipality may tax any or all of the following occupations
29 or privileges:
30 1. Persons engaged in the business of transmitting
31 messages by means of electricity or radio magnetic waves,
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1 or fiber optics, at a rate not to exceed 5% of the gross
2 receipts from that business originating within the
3 corporate limits of the municipality.
4 2. Persons engaged in the business of distributing,
5 supplying, furnishing, or selling gas for use or
6 consumption within the corporate limits of a municipality
7 of 500,000 or fewer population, and not for resale, at a
8 rate not to exceed 5% of the gross receipts therefrom.
9 2a. Persons engaged in the business of
10 distributing, supplying, furnishing, or selling gas for
11 use or consumption within the corporate limits of a
12 municipality of over 500,000 population, and not for
13 resale, at a rate not to exceed 8% of the gross receipts
14 therefrom. If imposed, this tax shall be paid in monthly
15 payments.
16 3. The privilege of using or consuming electricity
17 acquired in a purchase at retail and used or consumed
18 within the corporate limits of the municipality at rates
19 not to exceed the following maximum rates, calculated on
20 a monthly basis for each purchaser:
21 (i) For the first 2,000 kilowatt-hours used or
22 consumed in a month; 0.61 cents per kilowatt-hour;
23 (ii) For the next 48,000 kilowatt-hours used or
24 consumed in a month; 0.40 cents per kilowatt-hour;
25 (iii) For the next 50,000 kilowatt-hours used or
26 consumed in a month; 0.36 cents per kilowatt-hour;
27 (iv) For the next 400,000 kilowatt-hours used or
28 consumed in a month; 0.35 cents per kilowatt-hour;
29 (v) For the next 500,000 kilowatt-hours used or
30 consumed in a month; 0.34 cents per kilowatt-hour;
31 (vi) For the next 2,000,000 kilowatt-hours used or
32 consumed in a month; 0.32 cents per kilowatt-hour;
33 (vii) For the next 2,000,000 kilowatt-hours used or
34 consumed in a month; 0.315 cents per kilowatt-hour;
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1 (viii) For the next 5,000,000 kilowatt-hours used
2 or consumed in a month; 0.31 cents per kilowatt-hour;
3 (ix) For the next 10,000,000 kilowatt-hours used or
4 consumed in a month; 0.305 cents per kilowatt-hour; and
5 (x) For all electricity used or consumed in excess
6 of 20,000,000 kilowatt-hours in a month, 0.30 cents per
7 kilowatt-hour.
8 If a municipality imposes a tax at rates lower than
9 either the maximum rates specified in this Section or the
10 alternative maximum rates promulgated by the Illinois
11 Commerce Commission, as provided below, the tax rates
12 shall be imposed upon the kilowatt hour categories set
13 forth above with the same proportional relationship as
14 that which exists among such maximum rates.
15 Notwithstanding the foregoing, until December 31, 2008,
16 no municipality shall establish rates that are in excess
17 of rates reasonably calculated to produce revenues that
18 equal the maximum total revenues such municipality could
19 have received under the tax authorized by this
20 subparagraph in the last full calendar year prior to the
21 effective date of Section 65 of this amendatory Act of
22 1997; provided that this shall not be a limitation on the
23 amount of tax revenues actually collected by such
24 municipality.
25 Upon the request of the corporate authorities of a
26 municipality, the Illinois Commerce Commission shall,
27 within 90 days after receipt of such request, promulgate
28 alternative rates for each of these kilowatt-hour
29 categories that will reflect, as closely as reasonably
30 practical for that municipality, the distribution of the
31 tax among classes of purchasers as if the tax were based
32 on a uniform percentage of the purchase price of
33 electricity. A municipality that has adopted an
34 ordinance imposing a tax pursuant to subparagraph 3 as it
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1 existed prior to the effective date of Section 65 of this
2 amendatory Act of 1997 may, rather than imposing the tax
3 permitted by this amendatory Act of 1997, continue to
4 impose the tax pursuant to that ordinance with respect to
5 gross receipts received from residential customers
6 through July 31, 1999, and with respect to gross receipts
7 from any non-residential customer until the first bill
8 issued to such customer for delivery services in
9 accordance with Section 16-104 of the Public Utilities
10 Act but in no case later than the last bill issued to
11 such customer before December 31, 2000. No ordinance
12 imposing the tax permitted by this amendatory Act of 1997
13 shall be applicable to any non-residential customer until
14 the first bill issued to such customer for delivery
15 services in accordance with Section 16-104 of the Public
16 Utilities Act but in no case later than the last bill
17 issued to such non-residential customer before December
18 31, 2000. Persons engaged in the business of
19 distributing, supplying, furnishing, or selling
20 electricity for use or consumption within the corporate
21 limits of the municipality, and not for resale, at a rate
22 not to exceed 5% of the gross receipts therefrom.
23 4. Persons engaged in the business of distributing,
24 supplying, furnishing, or selling water for use or
25 consumption within the corporate limits of the
26 municipality, and not for resale, at a rate not to exceed
27 5% of the gross receipts therefrom.
28 None of the taxes authorized by this Section may be
29 imposed with respect to any transaction in interstate
30 commerce or otherwise to the extent to which the business or
31 privilege may not, under the constitution and statutes of the
32 United States, be made the subject of taxation by this State
33 or any political sub-division thereof; nor shall any persons
34 engaged in the business of distributing, supplying,
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1 furnishing, or selling or transmitting gas, water, or
2 electricity, or engaged in the business of transmitting
3 messages, or using or consuming electricity acquired in a
4 purchase at retail, be subject to taxation under the
5 provisions of this Section for those transactions that are or
6 may become subject to taxation under the provisions of the
7 "Municipal Retailers' Occupation Tax Act" authorized by
8 Section 8-11-1; nor shall any tax authorized by this Section
9 be imposed upon any person engaged in a business or on any
10 privilege unless the tax is imposed in like manner and at the
11 same rate upon all persons engaged in businesses of the same
12 class in the municipality, whether privately or municipally
13 owned or operated, or exercising the same privilege within
14 the municipality.
15 Any of the taxes enumerated in this Section may be in
16 addition to the payment of money, or value of products or
17 services furnished to the municipality by the taxpayer as
18 compensation for the use of its streets, alleys, or other
19 public places, or installation and maintenance therein,
20 thereon or thereunder of poles, wires, pipes or other
21 equipment used in the operation of the taxpayer's business.
22 (a) If the corporate authorities of any home rule
23 municipality have adopted an ordinance that imposed a tax on
24 public utility customers, between July 1, 1971, and October
25 1, 1981, on the good faith belief that they were exercising
26 authority pursuant to Section 6 of Article VII of the 1970
27 Illinois Constitution, that action of the corporate
28 authorities shall be declared legal and valid,
29 notwithstanding a later decision of a judicial tribunal
30 declaring the ordinance invalid. No municipality shall be
31 required to rebate, refund, or issue credits for any taxes
32 described in this paragraph, and those taxes shall be deemed
33 to have been levied and collected in accordance with the
34 Constitution and laws of this State.
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1 (b) In any case in which (i) prior to October 19, 1979,
2 the corporate authorities of any municipality have adopted an
3 ordinance imposing a tax authorized by this Section (or by
4 the predecessor provision of the "Revised Cities and Villages
5 Act") and have explicitly or in practice interpreted gross
6 receipts to include either charges added to customers' bills
7 pursuant to the provision of paragraph (a) of Section 36 of
8 the Public Utilities Act or charges added to customers' bills
9 by taxpayers who are not subject to rate regulation by the
10 Illinois Commerce Commission for the purpose of recovering
11 any of the tax liabilities or other amounts specified in such
12 paragraph (a) of Section 36 of that Act, and (ii) on or after
13 October 19, 1979, a judicial tribunal has construed gross
14 receipts to exclude all or part of those charges, then
15 neither those municipality nor any taxpayer who paid the tax
16 shall be required to rebate, refund, or issue credits for any
17 tax imposed or charge collected from customers pursuant to
18 the municipality's interpretation prior to October 19, 1979.
19 This paragraph reflects a legislative finding that it would
20 be contrary to the public interest to require a municipality
21 or its taxpayers to refund taxes or charges attributable to
22 the municipality's more inclusive interpretation of gross
23 receipts prior to October 19, 1979, and is not intended to
24 prescribe or limit judicial construction of this Section. The
25 legislative finding set forth in this subsection does not
26 apply to taxes imposed after the effective date of this
27 amendatory Act of 1995.
28 (c) The tax authorized by subparagraph 3 shall be
29 collected from the purchaser by the person maintaining a
30 place of business in this State who delivers the electricity
31 to the purchaser. This tax shall constitute a debt of the
32 purchaser to the person who delivers the electricity to the
33 purchaser and if unpaid, is recoverable in the same manner as
34 the original charge for delivering the electricity. Any tax
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1 required to be collected pursuant to an ordinance authorized
2 by subparagraph 3 and any such tax collected by a person
3 delivering electricity shall constitute a debt owed to the
4 municipality by such person delivering the electricity,
5 provided, that the person delivering electricity shall be
6 allowed credit for such tax related to deliveries of
7 electricity the charges for which are written off as
8 uncollectible, and provided further, that if such charges are
9 thereafter collected, the delivering supplier shall be
10 obligated to remit such tax. For purposes of this subsection
11 (c), any partial payment not specifically identified by the
12 purchaser shall be deemed to be for the delivery of
13 electricity. Persons delivering electricity shall collect the
14 tax from the purchaser by adding such tax to the gross charge
15 for delivering the electricity, in the manner prescribed by
16 the municipality. Persons delivering electricity shall also
17 be authorized to add to such gross charge an amount equal to
18 3% of the tax to reimburse the person delivering electricity
19 for the expenses incurred in keeping records, billing
20 customers, preparing and filing returns, remitting the tax
21 and supplying data to the municipality upon request. If the
22 person delivering electricity fails to collect the tax from
23 the purchaser, then the purchaser shall be required to pay
24 the tax directly to the municipality in the manner prescribed
25 by the municipality. Persons delivering electricity who file
26 returns pursuant to this paragraph (c) shall, at the time of
27 filing such return, pay the municipality the amount of the
28 tax collected pursuant to subparagraph 3. (Blank).
29 (d) For the purpose of the taxes enumerated in this
30 Section:
31 "Gross receipts" means the consideration received for the
32 transmission of messages, the consideration received for
33 distributing, supplying, furnishing or selling gas for use or
34 consumption and not for resale, and the consideration
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1 received for distributing, supplying, furnishing or selling
2 electricity for use or consumption and not for resale, and
3 the consideration received for distributing, supplying,
4 furnishing or selling water for use or consumption and not
5 for resale, and for all services rendered in connection
6 therewith valued in money, whether received in money or
7 otherwise, including cash, credit, services and property of
8 every kind and material and for all services rendered
9 therewith, and shall be determined without any deduction on
10 account of the cost of transmitting such messages, without
11 any deduction on account of the cost of the service, product
12 or commodity supplied, the cost of materials used, labor or
13 service cost, or any other expenses whatsoever. "Gross
14 receipts" shall not include that portion of the consideration
15 received for distributing, supplying, furnishing, or selling
16 gas, electricity, or water to, or for the transmission of
17 messages for, business enterprises described in paragraph (e)
18 of this Section to the extent and during the period in which
19 the exemption authorized by paragraph (e) is in effect or for
20 school districts or units of local government described in
21 paragraph (f) during the period in which the exemption
22 authorized in paragraph (f) is in effect.
23 For utility bills issued on or after May 1, 1996, but
24 before May 1, 1997, and for receipts from those utility
25 bills, "gross receipts" does not include one-third of (i)
26 amounts added to customers' bills under Section 9-222 of the
27 Public Utilities Act, or (ii) amounts added to customers'
28 bills by taxpayers who are not subject to rate regulation by
29 the Illinois Commerce Commission for the purpose of
30 recovering any of the tax liabilities described in Section
31 9-222 of the Public Utilities Act. For utility bills issued
32 on or after May 1, 1997, but before May 1, 1998, and for
33 receipts from those utility bills, "gross receipts" does not
34 include two-thirds of (i) amounts added to customers' bills
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1 under Section 9-222 of the Public Utilities Act, or (ii)
2 amount added to customers' bills by taxpayers who are not
3 subject to rate regulation by the Illinois Commerce
4 Commission for the purpose of recovering any of the tax
5 liabilities described in Section 9-222 of the Public
6 Utilities Act. For utility bills issued on or after May 1,
7 1998, and for receipts from those utility bills, "gross
8 receipts" does not include (i) amounts added to customers'
9 bills under Section 9-222 of the Public Utilities Act, or
10 (ii) amounts added to customers' bills by taxpayers who are
11 not subject to rate regulation by the Illinois Commerce
12 Commission for the purpose of recovering any of the tax
13 liabilities described in Section 9-222 of the Public
14 Utilities Act.
15 For purposes of this Section "gross receipts" shall not
16 include (i) amounts added to customers' bills under Section
17 9-221 of the Public Utilities Act, or (ii) charges added to
18 customers' bills to recover the surcharge imposed under the
19 Emergency Telephone System Act. This paragraph is not
20 intended to nor does it make any change in the meaning of
21 "gross receipts" for the purposes of this Section, but is
22 intended to remove possible ambiguities, thereby confirming
23 the existing meaning of "gross receipts" prior to the
24 effective date of this amendatory Act of 1995.
25 The words "transmitting messages", in addition to the
26 usual and popular meaning of person to person communication,
27 shall include the furnishing, for a consideration, of
28 services or facilities (whether owned or leased), or both, to
29 persons in connection with the transmission of messages where
30 those persons do not, in turn, receive any consideration in
31 connection therewith, but shall not include such furnishing
32 of services or facilities to persons for the transmission of
33 messages to the extent that any such services or facilities
34 for the transmission of messages are furnished for a
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1 consideration, by those persons to other persons, for the
2 transmission of messages.
3 "Person" as used in this Section means any natural
4 individual, firm, trust, estate, partnership, association,
5 joint stock company, joint adventure, corporation, limited
6 liability company, municipal corporation, the State or any of
7 its or political subdivisions subdivision of this State, any
8 State university created by statute, or a receiver, trustee,
9 guardian or other representative appointed by order of any
10 court.
11 "Person maintaining a place of business in this State"
12 shall mean any person having or maintaining within this
13 State, directly or by a subsidiary or other affiliate, an
14 office, generation facility, distribution facility,
15 transmission facility, sales office or other place of
16 business, or any employee, agent, or other representative
17 operating within this State under the authority of the person
18 or its subsidiary or other affiliate, irrespective of whether
19 such place of business or agent or other representative is
20 located in this State permanently or temporarily, or whether
21 such person, subsidiary or other affiliate is licensed or
22 qualified to do business in this State.
23 "Public utility" shall have the meaning ascribed to it in
24 Section 3-105 of the Public Utilities Act and shall include
25 telecommunications carriers as defined in Section 13-202 of
26 that Act and alternative retail electric suppliers as defined
27 in Section 16-102 of that Act.
28 "Purchase at retail" shall mean any acquisition of
29 electricity by a purchaser for purposes of use or
30 consumption, and not for resale, but shall not include the
31 use of electricity by a public utility directly in the
32 generation, production, transmission, delivery or sale of
33 electricity.
34 "Purchaser" shall mean any person who uses or consumes,
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1 within the corporate limits of the municipality, electricity
2 acquired in a purchase at retail.
3 In the case of persons engaged in the business of
4 transmitting messages through the use of mobile equipment,
5 such as cellular phones and paging systems, the gross
6 receipts from the business shall be deemed to originate
7 within the corporate limits of a municipality only if the
8 address to which the bills for the service are sent is within
9 those corporate limits. If, however, that address is not
10 located within a municipality that imposes a tax under this
11 Section, then (i) if the party responsible for the bill is
12 not an individual, the gross receipts from the business shall
13 be deemed to originate within the corporate limits of the
14 municipality where that party's principal place of business
15 in Illinois is located, and (ii) if the party responsible for
16 the bill is an individual, the gross receipts from the
17 business shall be deemed to originate within the corporate
18 limits of the municipality where that party's principal
19 residence in Illinois is located.
20 (e) Any municipality that imposes taxes upon public
21 utilities or upon the privilege of using or consuming
22 electricity pursuant to this Section whose territory includes
23 any part of an enterprise zone or federally designated
24 Foreign Trade Zone or Sub-Zone may, by a majority vote of its
25 corporate authorities, exempt from those taxes for a period
26 not exceeding 20 years any specified percentage of gross
27 receipts of public utilities received from, or electricity
28 used or consumed by, business enterprises that:
29 (1) either (i) make investments that cause the
30 creation of a minimum of 200 full-time equivalent jobs in
31 Illinois, (ii) make investments of at least $175,000,000
32 that cause the creation of a minimum of 150 full-time
33 equivalent jobs in Illinois, or (iii) make investments
34 that cause the retention of a minimum of 1,000 full-time
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1 jobs in Illinois; and
2 (2) are either (i) located in an Enterprise Zone
3 established pursuant to the Illinois Enterprise Zone Act
4 or (ii) Department of Commerce and Community Affairs
5 designated High Impact Businesses located in a federally
6 designated Foreign Trade Zone or Sub-Zone; and
7 (3) are certified by the Department of Commerce and
8 Community Affairs as complying with the requirements
9 specified in clauses (1) and (2) of this paragraph (e).
10 Upon adoption of the ordinance authorizing the exemption,
11 the municipal clerk shall transmit a copy of that ordinance
12 to the Department of Commerce and Community Affairs. The
13 Department of Commerce and Community Affairs shall determine
14 whether the business enterprises located in the municipality
15 meet the criteria prescribed in this paragraph. If the
16 Department of Commerce and Community Affairs determines that
17 the business enterprises meet the criteria, it shall grant
18 certification. The Department of Commerce and Community
19 Affairs shall act upon certification requests within 30 days
20 after receipt of the ordinance.
21 Upon certification of the business enterprise by the
22 Department of Commerce and Community Affairs, the Department
23 of Commerce and Community Affairs shall notify the Department
24 of Revenue of the certification. The Department of Revenue
25 shall notify the public utilities of the exemption status of
26 the gross receipts received from, and the electricity used or
27 consumed by, the certified business enterprises. Such
28 exemption status shall be effective within 3 months after
29 certification.
30 (f) A municipality that imposes taxes upon public
31 utilities or upon the privilege of using or consuming
32 electricity under this Section and whose territory includes
33 part of another unit of local government or a school district
34 may by ordinance exempt the other unit of local government or
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1 school district from those taxes.
2 (g) The amendment of this Section by Public Act 84-127
3 shall take precedence over any other amendment of this
4 Section by any other amendatory Act passed by the 84th
5 General Assembly before the effective date of Public Act
6 84-127.
7 (h) In any case in which, before July 1, 1992, a person
8 engaged in the business of transmitting messages through the
9 use of mobile equipment, such as cellular phones and paging
10 systems, has determined the municipality within which the
11 gross receipts from the business originated by reference to
12 the location of its transmitting or switching equipment, then
13 (i) neither the municipality to which tax was paid on that
14 basis nor the taxpayer that paid tax on that basis shall be
15 required to rebate, refund, or issue credits for any such tax
16 or charge collected from customers to reimburse the taxpayer
17 for the tax and (ii) no municipality to which tax would have
18 been paid with respect to those gross receipts if the
19 provisions of this amendatory Act of 1991 had been in effect
20 before July 1, 1992, shall have any claim against the
21 taxpayer for any amount of the tax.
22 (Source: P.A. 89-325, eff. 1-1-96; 90-16, eff. 6-16-97.)
23 ARTICLE 4
24 Section 75. Effective date of Articles 2 and 5 and
25 Sections 25, 26, 30, 35 and 65. Sections 25 and 30 of this
26 amendatory Act of 1997 take effect January 1, 1998. Articles
27 2 and 5 and Sections 26, 35 and 65 of this amendatory Act of
28 1997 take effect August 1, 1998.
29 ARTICLE 5
30 Section 5-1. Short title. This Article shall be known
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1 and may be cited as the Electricity Infrastructure
2 Maintenance Fee Law.
3 Section 5-2. Legislative intent. This Law is intended
4 to create a uniform system for the imposition and collection
5 of fees associated with the privilege of using the public
6 right of way for the delivery of electricity.
7 Section 5-3. Definitions. For the purposes of this Law:
8 (a) "Electricity deliverer" means any person who uses
9 any portion of any public rights of way of an Illinois
10 municipality for the purpose of distributing, transmitting,
11 or otherwise delivering electricity, regardless of its
12 source, for use or consumption within that municipality, and
13 not for resale. For purposes of this definition, use of the
14 public rights of way shall not include the use of real
15 property pursuant to the terms of an easement, lease, or
16 other similar property interest held over municipally-owned
17 property.
18 (b) "Delivery of electricity" means the distribution,
19 transmission, or other delivery of electricity through the
20 use of the municipality's public rights of way, regardless of
21 the source of the electricity, for use or consumption within
22 that municipality, and not for resale. The term includes the
23 delivery of electricity for use or consumption by the
24 electricity deliverer, except for electricity used or
25 consumed by the electricity deliverer for the production or
26 distribution of electricity.
27 (c) "Person" means any natural individual, firm, trust,
28 estate, partnership, association, joint stock company, joint
29 adventure, corporation, limited liability company, municipal
30 corporation, the State or any of its political subdivisions,
31 any State university created by statute, or a receiver,
32 trustee, guardian, or other representative appointed by order
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1 of any court.
2 (d) "Public rights of way" means streets, alleys, and
3 similar public ways, and all areas over and under such public
4 ways, title to which is owned by the municipality, and which
5 are dedicated exclusively to public use.
6 (e) "Purchaser" means any person who uses or consumes,
7 within the corporate limits of the municipality, electricity
8 acquired in a purchase at retail.
9 (f) "Resale" includes any and all sales of electricity
10 for the purpose of a subsequent sale to another, including
11 the sale of electric energy within the meaning of the Federal
12 Power Act (16 U.S.C. 824), but excluding the distribution of
13 electricity to occupants of a building or buildings, or to a
14 group of customers within the municipality, by a person who
15 owns, controls or manages, or acts as agent for, the
16 building, buildings, or group of customers.
17 Section 5-4. Right to franchise contract. A
18 municipality shall be entitled to require a franchise
19 contract from an electricity deliverer as a condition of
20 allowing the electricity deliverer to use any portion of any
21 public right of way within the municipality for the placement
22 and maintenance of facilities for distributing, transmitting,
23 or delivering electricity. Such franchise contract shall be
24 established by ordinance and shall be valid when accepted in
25 writing by the electricity deliverer.
26 Section 5-5. Municipal electricity infrastructure
27 maintenance fee.
28 (a) Any municipality that on the effective date of this
29 Law had in effect a franchise agreement with an electricity
30 deliverer may impose an infrastructure maintenance fee upon
31 electricity deliverers, as compensation for granting
32 electricity deliverers the privilege of using public rights
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1 of way, in an amount specified in subsection (b) of this
2 Section. If more than one electricity deliverer is
3 responsible for the delivery of the same electricity to the
4 same consumer, the fee related to that electricity shall be
5 imposed upon the electricity deliverer who last physically
6 uses the public way for delivery of that electricity prior to
7 its consumption.
8 (b) (1) In municipalities with a population greater than
9 500,000, the amount of the infrastructure maintenance fee
10 imposed under this Section shall not exceed the following
11 maximum rates for kilowatt-hours delivered within the
12 municipality to each purchaser:
13 (i) For the first 2,000 kilowatt-hours of
14 electricity used or consumed in a month: 0.53 cents per
15 kilowatt-hour;
16 (ii) For the next 48,000 kilowatt-hours of
17 electricity used or consumed in a month: 0.35 cents per
18 kilowatt-hour;
19 (iii) For the next 50,000 kilowatt-hours of
20 electricity used or consumed in a month: 0.31 cents per
21 kilowatt-hour;
22 (iv) For the next 400,000 kilowatt-hours of
23 electricity used or consumed in a month: 0.305 cents per
24 kilowatt-hour;
25 (v) For the next 500,000 kilowatt-hours of
26 electricity used or consumed in a month: 0.30 cents per
27 kilowatt-hour;
28 (vi) For the next 2,000,000 kilowatt-hours of
29 electricity used or consumed in a month: 0.28 cents per
30 kilowatt-hour;
31 (vii) For the next 2,000,000 kilowatt-hours of
32 electricity used or consumed in a month: 0.275 cents per
33 kilowatt-hour;
34 (viii) For the next 5,000,000 kilowatt-hours of
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1 electricity used or consumed in a month: 0.27 cents per
2 kilowatt-hour;
3 (ix) For the next 10,000,000 kilowatt-hours used or
4 consumed in a month: 0.265 cents per kilowatt-hour;
5 (x) For all kilowatt-hours of electricity in excess
6 of 20,000,000 kilowatt-hours used or consumed in a month:
7 0.26 cents per kilowatt-hour.
8 (2) In municipalities with a population of 500,000 or
9 less, the amount of the infrastructure maintenance fee
10 imposed under this Section shall be imposed based on the
11 kilowatt-hour categories set forth above and shall be
12 calculated on a monthly basis for kilowatt-hours of
13 electricity delivered to each purchaser; provided, that if,
14 immediately prior to imposing an infrastructure maintenance
15 fee, such municipality receives franchise fees, permit fees,
16 free electrical service, or other forms of compensation
17 pursuant to an existing franchise agreement, the rates
18 established for these kilowatt-hour categories for such
19 infrastructure maintenance fee during the term of the
20 franchise agreement shall not exceed rates reasonably
21 calculated, at the time such infrastructure maintenance fee
22 is initially imposed, to generate an amount of revenue
23 equivalent to the value of the compensation received or
24 provided under the franchise agreement.
25 (3) Notwithstanding any other provision of this
26 subsection (b), a fee shall not be imposed if and to the
27 extent that imposition or collection of the fee would violate
28 the Constitution or statutes of the United States or the
29 statutes or Constitution of the State of Illinois.
30 (c) Any electricity deliverer may collect the amount of
31 a fee imposed under this Section from the purchaser using or
32 consuming the electricity with respect to which the fee was
33 imposed. The fee may be collected by the electricity
34 deliverer from the purchaser as a separately stated charge on
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1 the purchaser's bills or in any other manner permitted from
2 time to time by law or by the electricity deliverer's
3 tariffs. The electricity deliverer shall be allowed credit
4 for any portion of the fee related to deliveries of
5 electricity the charges for which are written off as
6 uncollectible, provided, that if such charges are thereafter
7 collected, the electricity deliverer shall be obligated to
8 pay such fee. For purposes of this Section, any partial
9 payment not specifically identified by the purchaser shall be
10 deemed to be for the delivery of electricity. No ordinance
11 imposing the fee authorized by this Section with respect to
12 the kilowatt-hours delivered to non-residential customers
13 shall be effective until October 1, 1999. For purposes of
14 this Law, the period of time from the effective date of this
15 Law through and including September 30, 1999 shall be
16 referred to as the "Initial Period."
17 (d) As between the electricity deliverer and the
18 municipality, the fee authorized by this Section shall be
19 collected, enforced, and administered by the municipality
20 imposing the fee. Any municipality adopting an ordinance
21 imposing an infrastructure maintenance fee under this Law
22 shall give written notice to each electricity deliverer
23 subject to the fee not less than 60 days prior to the date
24 the fee is imposed.
25 Section 5-6. Validity of existing franchise fees and
26 agreement; police powers.
27 (a) On and after the effective date of this Law, no
28 electricity deliverer paying an infrastructure maintenance
29 fee imposed under this Law may be denied the right to use,
30 directly or indirectly, public rights of way because of the
31 failure to pay any other fee or charge for the right to use
32 those rights of way except to the extent that the electricity
33 deliverer during the Initial Period fails under any existing
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1 franchise agreement to pay franchise fees which are based on
2 the gross receipts or gross revenues attributable to
3 non-residential customers or to provide free electrical
4 service or other compensation attributable to non-residential
5 customers. A municipality that imposes an infrastructure
6 maintenance fee pursuant to Section 5-5 shall impose no other
7 fees or charges upon electricity deliverers for such use
8 except as provided by subsections (b) or (c) of this Section.
9 (b) Agreements between electricity deliverers and
10 municipalities regarding use of the public way shall remain
11 valid according to and for their stated terms. However, a
12 municipality that, pursuant to a franchise agreement in
13 existence on the effective date of this Law, receives any
14 franchise fees, permit fees, free electrical service or other
15 compensation for use of the public rights of way, may impose
16 an infrastructure maintenance fee pursuant to this Law only
17 if the municipality: (1) waives its right to receive all
18 compensation from the electricity deliverer for use of the
19 public rights of way during the time the infrastructure
20 maintenance fee is imposed, except as provided in subsection
21 (c), and except that during the Initial Period any
22 municipality may continue to receive franchise fees, free
23 electrical service or other compensation from the electricity
24 deliverer which are equal in value to the Initial Period
25 Compensation; and (2) provides written notice of this waiver
26 to the appropriate electricity deliverer at the time that the
27 municipality provides notice of the imposition of the
28 infrastructure maintenance fee under subsection (d) of
29 Section 5-5. For purposes of this Section, "Initial Period
30 Compensation" shall mean the total amount of compensation due
31 under the existing franchise agreement during the Initial
32 Period less the amount of the infrastructure maintenance fee
33 imposed under this Section during the Initial Period.
34 (c) Nothing in this Law prohibits a municipality from
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1 the reasonable exercise of its police powers over the public
2 rights of way. In addition, a municipality may require an
3 electricity deliverer to reimburse any special or
4 extraordinary expenses or costs reasonably incurred by the
5 municipality as a direct result of damages to its property or
6 public rights of way, such as the costs of restoration of
7 streets damaged by a electricity deliverer that does not make
8 timely repair of the damage, or for the loss of revenue due
9 to the inability to use public facilities as a direct result
10 of the actions of the electricity deliverer, such as parking
11 meters that are required to be removed because of work of an
12 electricity deliverer.
13 ARTICLE 6
14 Section 6-1. Short title. This Article may be cited as
15 the Renewable Energy, Energy Efficiency, and Coal Resources
16 Development Law of 1997.
17 Section 6-2. Findings and intent. The General Assembly
18 finds and declares that it is desirable to obtain the
19 environmental quality, public health, and fuel diversity
20 benefits of developing new renewable energy resources and
21 clean coal technologies for use in Illinois and to lower the
22 cost of renewable energy resources and clean coal resources
23 provided to utility consumers. The General Assembly finds and
24 declares that the benefits of electricity from renewable
25 energy resources and clean coal technologies accrue to the
26 public at large, thus consumers and electric utilities and
27 alternative retail electric suppliers share an interest in
28 developing and using a significant level of these
29 environmentally preferable resources in the State's
30 electricity supply portfolio. The General Assembly finds and
31 declares that encouraging energy efficiency will improve the
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1 environmental quality and public health in the State of
2 Illinois.
3 Section 6-3. Renewable energy resources program.
4 (a) The Department of Commerce and Community Affairs, to
5 be called the "Department" hereinafter in this Law, shall
6 administer the Renewable Energy Resources Program to provide
7 grants, loans, and other incentives to foster investment in
8 and the development and use of renewable energy resources.
9 (b) The Department shall establish eligibility criteria
10 for grants, loans, and other incentives to foster investment
11 in and the development and use of renewable energy resources.
12 These criteria shall be reviewed annually and adjusted as
13 necessary. The criteria should promote the goal of fostering
14 investment in and the development and use, in Illinois, of
15 renewable energy resources.
16 (c) The Department shall accept applications for grants,
17 loans, and other incentives to foster investment in and the
18 development and use of renewable energy resources.
19 (d) To the extent that funds are available and
20 appropriated, the Department shall provide grants, loans, and
21 other incentives to applicants that meet the criteria
22 specified by the Department.
23 (e) The Department shall conduct an annual study on the
24 use and availability of renewable energy resources in
25 Illinois. Each year, the Department shall submit a report on
26 the study to the General Assembly. This report shall include
27 suggestions for legislation which will encourage the
28 development and use of renewable energy resources.
29 (f) As used in this Law, "renewable energy resources"
30 includes energy from wind, solar thermal energy, photovoltaic
31 cells and panels, dedicated crops grown for energy production
32 and organic waste biomass, hydropower that does not involve
33 new construction or significant expansion of hydropower dams,
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1 and other such alternative sources of environmentally
2 preferable energy. "Renewable energy resources" does not
3 include, however, energy from the incineration, burning or
4 heating of waste wood, tires, garbage, general household,
5 institutional and commercial waste, industrial lunchroom or
6 office waste, landscape waste, or construction or demolition
7 debris.
8 Section 6-4. Renewable Energy Resources Trust Fund.
9 (a) A fund to be called the Renewable Energy Resources
10 Trust Fund is hereby established in the State Treasury.
11 (b) The Renewable Energy Resources Trust Fund shall be
12 administered by the Department to provide grants, loans, and
13 other incentives to foster investment in and the development
14 and use of renewable energy resources as provided in Section
15 6-3 of this Law.
16 (c) All funds used by the Department for the Renewable
17 Energy Resources Program shall be subject to appropriation by
18 the General Assembly.
19 Section 6-5. Renewable Energy Resources and Coal
20 Technology Development Assistance Charge.
21 (a) Beginning January 1, 1998, the following charges
22 shall be imposed:
23 (1) $0.05 per month on each account for residential
24 electric service as defined in Section 13 of the Energy
25 Assistance Act of 1989;
26 (2) $0.05 per month on each account for residential
27 gas service as defined in Section 13 of the Energy
28 Assistance Act of 1989;
29 (3) $0.50 per month on each account for
30 nonresidential electric service, as defined in Section 13
31 of the Energy Assistance Act of 1989, taking less than 10
32 megawatts of peak demand during the previous calendar
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1 year;
2 (4) $0.50 per month on each account for
3 nonresidential gas service, as defined in Section 13 of
4 the Energy Assistance Act of 1989, taking less than
5 4,000,000 therms of gas during the previous calendar
6 year;
7 (5) $37.50 per month on each account for
8 nonresidential electric service, as defined in Section 13
9 of the Energy Assistance Act of 1989, taking 10 megawatts
10 or greater of peak demand during the previous calendar
11 year; and
12 (6) $37.50 per month on each account for
13 nonresidential gas service, as defined in Section 13 of
14 the Energy Assistance Act of 1989, taking 4,000,000 or
15 more therms of gas during the previous calendar year.
16 (b) Except as provided in subsection (e) of this
17 Section, this charge is to be collected by electric and gas
18 utilities, whether owned by investors, municipalities or
19 cooperatives, and alternative retail electric suppliers on a
20 monthly basis from their respective customers.
21 (c) Fifty percent of the moneys collected pursuant to
22 this Section shall be deposited in the Renewable Energy
23 Resources Trust Fund. The remaining 50 percent of the moneys
24 collected pursuant to this Section shall be deposited in the
25 Coal Technology Development Assistance Fund for use under the
26 Illinois Coal Technology Development Assistance Act.
27 (d) On a monthly basis, each utility and alternative
28 retail electric supplier collecting charges pursuant to this
29 Section shall remit to the Department for deposit in the
30 Renewable Energy Resources Trust Fund all moneys received as
31 payment of the charge provided for in this Section.
32 (e) The charges imposed by this Section shall only apply
33 to customers of municipal electric utilities and electric
34 cooperatives if the municipal electric utility or electric
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1 cooperative makes an affirmative decision to impose the
2 charge. If a municipal electric utility or electric
3 cooperative does not assess this charge, its customers shall
4 not be eligible for the Renewable Energy Resources Program.
5 Section 6-6. Energy efficiency program.
6 (a) For the year beginning January 1, 1998, and
7 thereafter as provided in this Section, each electric utility
8 and each alternative retail electric supplier supplying
9 electric power and energy to retail customers located in the
10 State of Illinois shall contribute annually to the Department
11 a pro rata share of a total amount of $3,000,000 based upon
12 the number of kilowatt-hours sold by each such entity in the
13 12 months preceding the year of contribution. These
14 contributions shall be remitted to the Department on or
15 before June 30 of each year the contribution is due. The
16 funds received by the Department pursuant to this Section
17 shall be subject to the appropriation of funds by the General
18 Assembly. The Department shall place the funds remitted
19 under this Section in a trust fund, that is hereby created in
20 the State Treasury, called the Energy Efficiency Trust Fund.
21 (b) The Department shall disburse the moneys in the
22 Energy Efficiency Trust Fund to residential electric
23 customers to fund projects which the Department has
24 determined will promote energy efficiency in the State of
25 Illinois. The Department shall establish a list of projects
26 eligible for grants from the Energy Efficiency Trust Fund
27 including, but not limited to, supporting energy efficiency
28 efforts for low-income households, replacing energy
29 inefficient windows with more efficient windows, replacing
30 energy inefficient appliances with more efficient appliances,
31 replacing energy inefficient lighting with more efficient
32 lighting, insulating dwellings and buildings, and such other
33 projects which will increase energy efficiency in homes and
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1 rental properties.
2 (c) The Department shall establish criteria and an
3 application process for this grant program.
4 (d) The Department shall conduct a study of other
5 possible energy efficiency improvements and evaluate methods
6 for promoting energy efficiency and conservation, especially
7 for the benefit of low-income customers.
8 (e) The Department shall submit an annual report to the
9 General Assembly evaluating the effectiveness of the projects
10 and programs provided in this Section, and recommending
11 further legislation which will encourage additional
12 development and implementation of energy efficiency projects
13 and programs in Illinois and other actions that help to meet
14 the goals of this Section.
15 Section 6-7. Repeal. The provisions of this Law are
16 repealed 10 years after the effective date of this amendatory
17 Act of 1997 unless renewed by act of the General Assembly.
18 ARTICLE 7
19 Section 80. The Illinois Coal Technology Development
20 Assistance Act is amended by changing Section 3 as follows:
21 (30 ILCS 730/3) (from Ch. 96 1/2, par. 8203)
22 Sec. 3. Transfers to Coal Technology Development
23 Assistance Funds. As soon as may be practicable after the
24 first day of each month, the Department of Revenue shall
25 certify to the Treasurer an amount equal to 1/64 of the
26 revenue realized from the tax imposed by the Electricity
27 Excise Tax Law, Section 2 of the Public Utilities Revenue
28 Act, Section 2 of the Messages Tax Act, and Section 2 of the
29 Gas Revenue Tax Act, during the preceding month. Upon
30 receipt of the certification, the Treasurer shall transfer
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1 the amount shown on such certification from the General
2 Revenue Fund to the Coal Technology Development Assistance
3 Fund, which is hereby created as a special fund in the State
4 treasury, except that no transfer shall be made in any month
5 in which the Fund from moneys received under this Section has
6 reached the following balance:
7 (1) $7,000,000 during fiscal year 1994.
8 (2) $8,500,000 during fiscal year 1995.
9 (3) $10,000,000 during fiscal year 1996 and each
10 year thereafter.
11 (Source: P.A. 88-391.)
12 Section 85. The Energy Assistance Act of 1989 is amended
13 by changing Section 5 and adding Sections 13 and 14 as
14 follows:
15 (305 ILCS 20/5) (from Ch. 111 2/3, par. 1405)
16 (Text of Section before amendment by P.A. 89-507)
17 Sec. 5. Policy Advisory Council.
18 (a) Within the Department of Commerce and Community
19 Affairs is created a Policy Advisory Council to be comprised
20 of:
21 (1) the following ex officio members or their
22 designees: the Director of Commerce and Community
23 Affairs who shall serve as Chair of the Committee, the
24 Director of Natural Resources, the Director of Public
25 Aid, and the Chairman of the Illinois Commerce
26 Commission; and
27 (2) 9 persons who shall be appointed by the
28 Governor to serve 2 year terms and until their successors
29 are appointed and qualified, 3 of whom shall be persons
30 who represent low income households or organizations
31 which represent such households, 3 of whom shall be
32 representatives of public utilities or other entities
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1 which provide winter energy services, and 3 of whom shall
2 be representatives of local agencies engaged by the
3 Department to assist in the administration of this Act.
4 (3) 6 persons who shall be appointed by the
5 Director of the Department of Commerce and Community
6 Affairs to serve 2 two year terms and until their
7 successors are appointed and qualified, who shall be
8 persons meeting such qualifications as may be required by
9 the federal government for the administration of the
10 Weatherization Assistance Program funded by the U.S.
11 Department of Energy and any such related energy
12 assistance programs.
13 (4) Members shall serve without compensation, but
14 may receive reimbursement for actual costs incurred in
15 fulfilling their duties as members of the Council.
16 (b) The Policy Advisory Council shall have the following
17 duties:
18 (1) to monitor the administration of this Act to
19 ensure effective, efficient, and coordinated program
20 development and implementation;
21 (2) to assist the Department in developing and
22 administering rules and regulations required to be
23 promulgated pursuant to this Act in a manner consistent
24 with the purpose and objectives of this Act;
25 (3) to facilitate and coordinate the collection and
26 exchange of all program data and other information needed
27 by the Department and others in fulfilling their duties
28 pursuant to this Act;
29 (4) to advise the Department on the proper level of
30 support required for effective administration of the Act;
31 (5) to provide a written opinion concerning any
32 regulation proposed pursuant to this Act, and to review
33 and comment on any energy assistance or related plan
34 required to be prepared by the Department; and
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1 (6) on or before March 1 of each year beginning in
2 1990, to prepare and submit a report to the Governor and
3 General Assembly which describes the activities of the
4 Department in the development and implementation of
5 energy assistance and related policies and programs,
6 which characterizes progress towards meeting the
7 objectives and requirements of this Act, and which
8 recommends any statutory changes which might be needed to
9 further such progress. The report submitted in 1991
10 shall include an analysis of and recommendations
11 regarding this Act's provisions concerning State payment
12 of pre-program arrearages; and.
13 (7) to advise the Department on the use of funds
14 collected pursuant to Section 13 of this Act, and on any
15 changes to existing low-income energy assistance programs
16 to make effective use of such funds, so long as such uses
17 and changes are consistent with the requirements of
18 subsection (a) of Section 13 of this Act.
19 (Source: P.A. 89-445, eff. 2-7-96.)
20 (Text of Section after amendment by P.A. 89-507)
21 Sec. 5. Policy Advisory Council.
22 (a) Within the Department of Commerce and Community
23 Affairs is created a Policy Advisory Council to be comprised
24 of:
25 (1) the following ex officio members or their
26 designees: the Director of Commerce and Community
27 Affairs who shall serve as Chair of the Committee, the
28 Director of Natural Resources, the Secretary of Human
29 Services, and the Chairman of the Illinois Commerce
30 Commission; and
31 (2) 9 persons who shall be appointed by the
32 Governor to serve 2 year terms and until their successors
33 are appointed and qualified, 3 of whom shall be persons
34 who represent low income households or organizations
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1 which represent such households, 3 of whom shall be
2 representatives of public utilities or other entities
3 which provide winter energy services, and 3 of whom shall
4 be representatives of local agencies engaged by the
5 Department to assist in the administration of this Act.
6 (3) 6 persons who shall be appointed by the
7 Director of the Department of Commerce and Community
8 Affairs to serve 2 two year terms and until their
9 successors are appointed and qualified, who shall be
10 persons meeting such qualifications as may be required by
11 the federal government for the administration of the
12 Weatherization Assistance Program funded by the U.S.
13 Department of Energy and any such related energy
14 assistance programs.
15 (4) Members shall serve without compensation, but
16 may receive reimbursement for actual costs incurred in
17 fulfilling their duties as members of the Council.
18 (b) The Policy Advisory Council shall have the following
19 duties:
20 (1) to monitor the administration of this Act to
21 ensure effective, efficient, and coordinated program
22 development and implementation;
23 (2) to assist the Department in developing and
24 administering rules and regulations required to be
25 promulgated pursuant to this Act in a manner consistent
26 with the purpose and objectives of this Act;
27 (3) to facilitate and coordinate the collection and
28 exchange of all program data and other information needed
29 by the Department and others in fulfilling their duties
30 pursuant to this Act;
31 (4) to advise the Department on the proper level of
32 support required for effective administration of the Act;
33 (5) to provide a written opinion concerning any
34 regulation proposed pursuant to this Act, and to review
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1 and comment on any energy assistance or related plan
2 required to be prepared by the Department; and
3 (6) on or before March 1 of each year beginning in
4 1990, to prepare and submit a report to the Governor and
5 General Assembly which describes the activities of the
6 Department in the development and implementation of
7 energy assistance and related policies and programs,
8 which characterizes progress towards meeting the
9 objectives and requirements of this Act, and which
10 recommends any statutory changes which might be needed to
11 further such progress. The report submitted in 1991
12 shall include an analysis of and recommendations
13 regarding this Act's provisions concerning State payment
14 of pre-program arrearages; and.
15 (7) to advise the Department on the use of funds
16 collected pursuant to Section 13 of this Act, and on any
17 changes to existing low-income energy assistance programs
18 to make effective use of such funds, so long as such uses
19 and changes are consistent with the requirements of
20 subsection (a) of Section 13 of this Act.
21 (Source: P.A. 89-445, eff. 2-7-96; 89-507, eff. 7-1-97.)
22 (305 ILCS 20/13 new)
23 Sec. 13. Supplemental Low-Income Energy Assistance Fund.
24 (a) The Supplemental Low-Income Energy Assistance Fund
25 is hereby created as a special fund in the State Treasury.
26 The Supplemental Low-Income Energy Assistance Fund is
27 authorized to receive, by statutory deposit, the moneys
28 collected pursuant to this Section. Subject to
29 appropriation, the Department shall use moneys from the
30 Supplemental Low-Income Energy Assistance Fund for payments
31 to electric or gas public utilities, municipal electric or
32 gas utilities, and electric cooperatives on behalf of their
33 customers who are participants in the program authorized by
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1 Section 4 of this Act, for the provision of weatherization
2 services and for administration of the Supplemental
3 Low-Income Energy Assistance Fund. The yearly expenditures
4 for weatherization may not exceed 10% of the amount collected
5 during the year pursuant to this Section. In determining
6 which customers will participate in the weatherization
7 component, the Department shall target weatherization for
8 those customers with the greatest energy burden, that is the
9 lowest income and greatest utility bills. The yearly
10 administrative expenses of the Supplemental Low-Income Energy
11 Assistance Fund may not exceed 10% of the amount collected
12 during that year pursuant to this Section.
13 (b) Notwithstanding the provisions of Section 16-111 of
14 the Public Utilities Act, each public utility, electric
15 cooperative, as defined in Section 3.4 of the Electric
16 Supplier Act, and municipal utility, as referenced in Section
17 3-105 of the Public Utilities Act, that is engaged in the
18 delivery of electricity or the distribution of natural gas
19 within the State of Illinois shall, effective January 1,
20 1998, assess each of its customer accounts a monthly Energy
21 Assistance Charge for the Supplemental Low-Income Energy
22 Assistance Fund. The monthly charge shall be as follows:
23 (1) $0.40 per month on each account for residential
24 electric service;
25 (2) $0.40 per month on each account for residential
26 gas service;
27 (3) $4 per month on each account for
28 non-residential electric service which had less than 10
29 megawatts of peak demand during the previous calendar
30 year;
31 (4) $4 per month on each account for
32 non-residential gas service which had distributed to it
33 less than 4,000,000 therms of gas during the previous
34 calendar year;
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1 (5) $300 per month on each account for
2 non-residential electric service which had 10 megawatts
3 or greater of peak demand during the previous calendar
4 year; and
5 (6) $300 per month on each account for
6 non-residential gas service which had 4,000,000 or more
7 therms of gas distributed to it during the previous
8 calendar year.
9 (c) For purposes of this Section:
10 (1) "residential electric service" means electric
11 utility service for household purposes delivered to a
12 dwelling of 2 or fewer units which is billed under a
13 residential rate, or electric utility service for
14 household purposes delivered to a dwelling unit or units
15 which is billed under a residential rate and is
16 registered by a separate meter for each dwelling unit;
17 (2) "residential gas service" means gas utility
18 service for household purposes distributed to a dwelling
19 of 2 or fewer units which is billed under a residential
20 rate, or gas utility service for household purposes
21 distributed to a dwelling unit or units which is billed
22 under a residential rate and is registered by a separate
23 meter for each dwelling unit;
24 (3) "non-residential electric service" means
25 electric utility service which is not residential
26 electric service; and
27 (4) "non-residential gas service" means gas utility
28 service which is not residential gas service.
29 (d) At least 45 days prior to the date on which it must
30 begin assessing Energy Assistance Charges, each public
31 utility engaged in the delivery of electricity or the
32 distribution of natural gas shall file with the Illinois
33 Commerce Commission tariffs incorporating the Energy
34 Assistance Charge in other charges stated in such tariffs.
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1 (e) The Energy Assistance Charge assessed by electric
2 and gas public utilities shall be considered a charge for
3 public utility service.
4 (f) On a monthly basis, each public utility, municipal
5 utility, and electric cooperative shall remit to the
6 Department of Revenue all moneys received as payment of the
7 Energy Assistance Charge. If a customer makes a partial
8 payment, a public utility, municipal utility, or electric
9 cooperative may elect either: (i) to apply such partial
10 payments first to amounts owed to the utility or cooperative
11 for its services and then to payment for the Energy
12 Assistance Charge or (ii) to apply such partial payments on a
13 pro-rata basis between amounts owed to the utility or
14 cooperative for its services and to payment for the Energy
15 Assistance Charge.
16 (g) The Department of Revenue shall deposit into the
17 Supplemental Low-Income Energy Assistance Fund all moneys
18 remitted to it in accordance with subsection (f) of this
19 Section.
20 (h) If as of December 31, 2002 the program authorized by
21 Section 4 of this Act has not been replaced by a new energy
22 assistance program which is in operation, then the General
23 Assembly shall review the program; provided however, that
24 after that date, any public utility, municipal utility, or
25 electric cooperative shall continue to assess an Energy
26 Assistance Charge which was originally assessed on or before
27 December 31, 2002 and which remains unpaid.
28 On or before December 31, 2003, the Department shall
29 prepare a report for the General Assembly on the expenditure
30 of funds appropriated from the Low-Income Energy Assistance
31 Block Grant Fund for the program authorized under Section 4
32 of this Act.
33 (i) The Department of Revenue may establish such rules
34 as it deems necessary to implement this Section.
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1 (j) The Department of Commerce and Community Affairs may
2 establish such rules as it deems necessary to implement this
3 Section.
4 (k) The charges imposed by this Section shall only apply
5 to customers of municipal electric utilities and electric
6 cooperatives if the municipal electric utility or electric
7 cooperative makes an affirmative decision to impose the
8 charge. If a municipal electric utility or electric
9 cooperative does not assess this charge, the Department may
10 not use funds from the Supplemental Low-Income Energy
11 Assistance Fund to provide benefits to its customers under
12 the program authorized by Section 4 of this Act.
13 (305 ILCS 20/14 new)
14 Sec. 14. Energy Assistance Program Design Group.
15 (a) This Section establishes an Energy Assistance
16 Program Design Group to advise the General Assembly with
17 respect to designing a low-income energy assistance program
18 for the period beginning on January 1, 2003.
19 (b) As promptly as practicable following the enactment
20 of this amendatory Act of 1997, the General Assembly, or a
21 Joint Committee thereof, shall establish an Energy Assistance
22 Program Design Group. The Energy Assistance Program Design
23 Group shall be chaired by the Director of the Department of
24 Commerce and Community Affairs and shall include one
25 representative of each of the following: (i) the Illinois
26 Commerce Commission; (ii) the Department of Natural
27 Resources; (iii) electric public utilities; (iv) gas public
28 utilities; (v) combination gas and electric public utilities;
29 (vi) municipal utilities and electric cooperatives; (vii)
30 electricity and natural gas marketers; (viii) low-income
31 energy customers; (ix) local agencies engaged by the
32 Department of Commerce and Community Affairs to assist in the
33 administration of the Energy Assistance Act of 1989; (x)
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1 residential energy customers; (xi) commercial energy
2 customers; and (xii) industrial energy customers.
3 (c) Within 3 months of its establishment, the Energy
4 Assistance Program Design Group shall meet to begin
5 consideration of the design and implementation of an energy
6 assistance program in Illinois for the period beginning on
7 January 1, 2003. Within 12 months of its establishment, the
8 Program Design Group shall hold public hearings to assist its
9 deliberations.
10 (d) The Program Design Group shall provide a report
11 containing its recommendations to the General Assembly on or
12 before January 1, 2002. This report must include the
13 following:
14 (1) recommendations on the definition of an
15 eligible low-income residential customer;
16 (2) recommendations regarding the continuation of
17 the program authorized by Section 4 of this Act and the
18 Supplemental Low-Income Energy Assistance Fund;
19 (3) recommendations on ensuring low-income
20 residential customers have access to essential energy
21 services;
22 (4) recommendations on addressing past due amounts
23 owed to utilities by low-income persons in Illinois;
24 (5) demographic and other information (including
25 household consumption information) necessary to determine
26 the total number of customers eligible for assistance,
27 the total number of customers likely to apply for
28 assistance, and funding estimates for any recommended
29 program;
30 (6) recommendations on appropriate measures to
31 encourage energy conservation, efficiency, and
32 responsibility among low-income residential customers;
33 (7) any recommended changes to existing
34 legislation; and
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1 (8) an estimate of the cost of implementing the
2 Program Design Group's recommendations.
3 (e) The recommendations adopted by the Program Design
4 Group shall be competitively neutral in their impact on
5 providers in the energy market and shall spread program costs
6 across the broadest possible base.
7 (f) The Department of Commerce and Community Affairs
8 shall hold public hearings on the recommendations of the
9 Energy Assistance Program Design Group during calendar year
10 2002.
11 Section 90. The State Finance Act is amended by adding
12 Sections 5.449, 5.450, and 5.451 as follows:
13 (30 ILCS 105/5.449 new)
14 Sec. 5.449. The Renewable Energy Resources Trust Fund.
15 (30 ILCS 105/5.450 new)
16 Sec. 5.450. The Energy Efficiency Trust Fund.
17 (30 ILCS 105/5.451 new)
18 Sec. 5.451. The Supplemental Low-Income Energy Assistance
19 Fund.
20 Section 95. The Illinois Antitrust Act is amended by
21 changing Section 5 as follows:
22 (740 ILCS 10/5) (from Ch. 38, par. 60-5)
23 Sec. 5. No provisions of this Act shall be construed to
24 make illegal:
25 (1) the activities of any labor organization or of
26 individual members thereof which are directed solely to labor
27 objectives which are legitimate under the laws of either the
28 State of Illinois or the United States;
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1 (2) the activities of any agricultural or horticultural
2 cooperative organization, whether incorporated or
3 unincorporated, or of individual members thereof, which are
4 directed solely to objectives of such cooperative
5 organizations which are legitimate under the laws of either
6 the State of Illinois or the United States;
7 (3) the activities of any public utility, as defined in
8 Section 3-105 of the Public Utilities Act to the extent that
9 such activities are subject to a clearly articulated and
10 affirmatively expressed State policy to replace competition
11 with regulation, where the conduct to be exempted is actively
12 supervised by the State itself the jurisdiction of the
13 Illinois Commerce Commission;
14 (4) The activities of a telecommunications carrier, as
15 defined in Section 13-202 of the Public Utilities Act, to the
16 extent those activities relate to the provision of
17 noncompetitive telecommunications services under the Public
18 Utilities Act and are subject to the jurisdiction of the
19 Illinois Commerce Commission or to the activities of
20 telephone mutual concerns referred to in Section 13-202 of
21 the Public Utilities Act to the extent those activities
22 relate to the provision and maintenance of telephone service
23 to owners and customers;
24 (5) the activities (including, but not limited to, the
25 making of or participating in joint underwriting or joint
26 reinsurance arrangement) of any insurer, insurance agent,
27 insurance broker, independent insurance adjuster or rating
28 organization to the extent that such activities are subject
29 to regulation by the Director of Insurance of this State
30 under, or are permitted or are authorized by, the Insurance
31 Code or any other law of this State;
32 (6) the religious and charitable activities of any
33 not-for-profit corporation, trust or organization established
34 exclusively for religious or charitable purposes, or for both
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1 purposes;
2 (7) the activities of any not-for-profit corporation
3 organized to provide telephone service on a mutual or
4 co-operative basis or electrification on a co-operative
5 basis, to the extent such activities relate to the marketing
6 and distribution of telephone or electrical service to owners
7 and customers;
8 (8) the activities engaged in by securities dealers who
9 are (i) licensed by the State of Illinois or (ii) members of
10 the National Association of Securities Dealers or (iii)
11 members of any National Securities Exchange registered with
12 the Securities and Exchange Commission under the Securities
13 Exchange Act of 1934, as amended, in the course of their
14 business of offering, selling, buying and selling, or
15 otherwise trading in or underwriting securities, as agent,
16 broker, or principal, and activities of any National
17 Securities Exchange so registered, including the
18 establishment of commission rates and schedules of charges;
19 (9) the activities of any board of trade designated as a
20 "contract market" by the Secretary of Agriculture of the
21 United States pursuant to Section 5 of the Commodity Exchange
22 Act, as amended;
23 (10) the activities of any motor carrier, rail carrier,
24 or common carrier by pipeline, as defined in the Common
25 Carrier by Pipeline Law of the Public Utilities Act, to the
26 extent that such activities are permitted or authorized by
27 the Act or are subject to regulation by the Illinois Commerce
28 Commission;
29 (11) the activities of any state or national bank to the
30 extent that such activities are regulated or supervised by
31 officers of the state or federal government under the banking
32 laws of this State or the United States;
33 (12) the activities of any state or federal savings and
34 loan association to the extent that such activities are
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1 regulated or supervised by officers of the state or federal
2 government under the savings and loan laws of this State or
3 the United States;
4 (13) the activities of any bona fide not-for-profit
5 association, society or board, of attorneys, practitioners of
6 medicine, architects, engineers, land surveyors or real
7 estate brokers licensed and regulated by an agency of the
8 State of Illinois, in recommending schedules of suggested
9 fees, rates or commissions for use solely as guidelines in
10 determining charges for professional and technical services;
11 (14) Conduct involving trade or commerce (other than
12 import trade or import commerce) with foreign nations unless:
13 (a) such conduct has a direct, substantial, and
14 reasonably foreseeable effect:
15 (i) on trade or commerce which is not trade or
16 commerce with foreign nations, or on import trade or
17 import commerce with foreign nations; or
18 (ii) on export trade or export commerce with
19 foreign nations of a person engaged in such trade or
20 commerce in the United States; and
21 (b) such effect gives rise to a claim under the
22 provisions of this Act, other than this subsection (14).
23 (c) If this Act applies to conduct referred to in
24 this subsection (14) only because of the provisions of
25 paragraph (a)(ii), then this Act shall apply to such
26 conduct only for injury to export business in the United
27 States which affects this State; or
28 (15) the activities of a unit of local government or
29 school district and the activities of the employees, agents
30 and officers of a unit of local government or school
31 district.
32 (Source: P.A. 90-185, eff. 7-23-97.)
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1 Section 97. No acceleration or delay. Where this Act
2 makes changes in a statute that is represented in this Act by
3 text that is not yet or no longer in effect (for example, a
4 Section represented by multiple versions), the use of that
5 text does not accelerate or delay the taking effect of (i)
6 the changes made by this Act or (ii) provisions derived from
7 any other Public Act.
8 ARTICLE 8
9 Section 99. Effective date. Except as provided in
10 Article 4, this Act takes effect on becoming law.