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91st General Assembly
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[ Introduced ][ Engrossed ][ Senate Amendment 001 ]
[ Senate Amendment 002 ]

91_SB1653ham001

 










                                           LRB9113005JSdvam03

 1                    AMENDMENT TO SENATE BILL 1653

 2        AMENDMENT NO.     .  Amend Senate Bill 1653 by  replacing
 3    the title with the following:
 4        "AN  ACT  to  amend  the Public Utilities Act by changing
 5    Sections  16-102,  16-116,  16-124,  and  16-128  and  adding
 6    Sections 16-115C, 16-115D, and 16-115E."; and

 7    by replacing everything after the enacting  clause  with  the
 8    following:

 9        "Section  5.  The  Public  Utilities  Act  is  amended by
10    changing Sections 16-102,  16-116,  16-124,  and  16-128  and
11    adding Sections 16-115C, 16-115D, and 16-115E as follows:

12        (220 ILCS 5/16-102)
13        Sec.  16-102.  Definitions.   For  the  purposes  of this
14    Article the following terms shall be defined as set forth  in
15    this Section.
16        "Alternative   retail   electric  supplier"  means  every
17    person,  cooperative,  corporation,  municipal   corporation,
18    company,  association,  joint  stock  company or association,
19    firm,  partnership,  individual,  or  other   entity,   their
20    lessees,  trustees,  or  receivers  appointed  by  any  court
21    whatsoever,  that  offers  electric power or energy for sale,
 
                            -2-            LRB9113005JSdvam03
 1    lease or in exchange for other value received to one or  more
 2    retail   customers,  or  that  engages  in  the  delivery  or
 3    furnishing  of  electric  power  or  energy  to  such  retail
 4    customers, and shall include, without limitation,  resellers,
 5    aggregators  and  power  marketers, but shall not include (i)
 6    electric utilities (or any agent of the electric  utility  to
 7    the extent the electric utility provides tariffed services to
 8    retail  customers  through  that  agent),  (ii)  any electric
 9    cooperative or municipal system as defined in Section  17-100
10    to  the  extent  that  the  electric cooperative or municipal
11    system is serving retail customers within any area  in  which
12    it  is  or would be entitled to provide service under the law
13    in effect immediately prior to the  effective  date  of  this
14    amendatory  Act of 1997, (iii) a public utility that is owned
15    and operated by any public institution of higher education of
16    this State, or a public utility that is owned by such  public
17    institution  of  higher  education and operated by any of its
18    lessees or operating agents, within any area in which  it  is
19    or  would  be  entitled  to  provide service under the law in
20    effect immediately  prior  to  the  effective  date  of  this
21    amendatory  Act of 1997, (iv) a retail customer to the extent
22    that customer obtains its electric power and energy from that
23    customer's own cogeneration  or  self-generation  facilities,
24    (v) an entity that owns, operates, sells, or arranges for the
25    installation    of   a   customer's   own   cogeneration   or
26    self-generation facilities, but only to the extent the entity
27    is  engaged  in  owning,  selling  or   arranging   for   the
28    installation  of such facility,  or operating the facility on
29    behalf of such customer, provided however that any such third
30    party owner or operator of a facility built after January  1,
31    1999, complies with the labor provisions of Section 16-128(a)
32    as  though  such  third  party  were  an  alternative  retail
33    electric  supplier,  or  (vi)  an industrial or manufacturing
34    customer that owns its own distribution  facilities,  to  the
 
                            -3-            LRB9113005JSdvam03
 1    extent   that   the   customer  provides  service  from  that
 2    distribution system to a third-party  contractor  located  on
 3    the  customer's premises that is integrally and predominantly
 4    engaged  in  the  customer's  industrial   or   manufacturing
 5    process;  provided,  that  if the industrial or manufacturing
 6    customer has elected delivery services,  the  customer  shall
 7    pay  transition  charges applicable to the electric power and
 8    energy consumed by the  third-party  contractor  unless  such
 9    charges  are  otherwise  paid  by the third party contractor,
10    which shall be calculated based on the usage of, and the base
11    rates or the contract rates applicable  to,  the  third-party
12    contractor in accordance with Section 16-102.
13        "Base  rates" means the rates for those tariffed services
14    that the electric utility is required to  offer  pursuant  to
15    subsection  (a) of Section 16-103 and that were identified in
16    a rate order for collection of the  electric  utility's  base
17    rate  revenue  requirement,  excluding (i) separate automatic
18    rate adjustment  riders  then  in  effect,  (ii)  special  or
19    negotiated  contract  rates,  (iii) delivery services tariffs
20    filed pursuant to Section 16-108, (iv) real-time pricing,  or
21    (v)  tariffs that were in effect prior to October 1, 1996 and
22    that based charges for services on an  index  or  average  of
23    other  utilities'  charges, but including (vi) any subsequent
24    redesign  of  such  rates  for  tariffed  services  that   is
25    authorized by the Commission after notice and hearing.
26        "Competitive  service"  includes (i) any service that has
27    been declared to be competitive pursuant to Section 16-113 of
28    this Act, (ii) contract service, and  (iii)  services,  other
29    than   tariffed  services,  that  are  related  to,  but  not
30    necessary for, the provision of electric power and energy  or
31    delivery services.
32        "Contract  service"  means  (1)  services,  including the
33    provision of electric power and  energy  or  other  services,
34    that  are  provided  by  mutual agreement between an electric
 
                            -4-            LRB9113005JSdvam03
 1    utility and a retail customer that is located in the electric
 2    utility's service  area,  provided  that,  delivery  services
 3    shall  not  be  a  contract  service  until such services are
 4    declared competitive pursuant to  Section  16-113;  and  also
 5    means  (2) the provision of electric power and energy and the
 6    provision of the services set  forth  in  the  definition  of
 7    "provider  of unbundled delivery services" in this Section by
 8    an electric utility to retail customers outside the  electric
 9    utility's service area pursuant to Section 16-116.  Provided,
10    however,  contract  service does not include electric utility
11    services provided  pursuant  to  (i)  contracts  that  retail
12    customers are required to execute as a condition of receiving
13    tariffed   services,  or  (ii)  special  or  negotiated  rate
14    contracts for electric utility  services  that  were  entered
15    into  between an electric utility and a retail customer prior
16    to the effective date of this  amendatory  Act  of  1997  and
17    filed with the Commission.
18        "Delivery  services" means those services provided by the
19    electric  utility  that  are  necessary  in  order  for   the
20    transmission  and  distribution  systems  to function so that
21    retail customers located in the  electric  utility's  service
22    area  can  receive  electric  power and energy from suppliers
23    other than the electric utility, and shall  include,  without
24    limitation, standard metering and billing services.
25        "Electric  utility" means a public utility, as defined in
26    Section 3-105 of this Act, that  has  a  franchise,  license,
27    permit  or  right  to  furnish  or sell electricity to retail
28    customers within a service area.
29        "Mandatory transition period" means the period  from  the
30    effective date of this amendatory Act of 1997 through January
31    1, 2005.
32        "Provider  of  unbundled  delivery  services" means every
33    person,  cooperative,  corporation,  municipal   corporation,
34    company,  association,  joint  stock  company or association,
 
                            -5-            LRB9113005JSdvam03
 1    firm,  partnership,  individual,  or  other   entity,   their
 2    lessees,  trustees,  or  receivers  appointed  by  any  court
 3    whatsoever, that offers to a retail customer for sale, lease,
 4    or  other value received any metering service other than that
 5    excluded by clause  (iv)  of  this  definition  or  unbundled
 6    delivery   services   (other  than  those  delivery  services
 7    regulated by the Federal Energy Regulatory  Commission)  that
 8    is  specified  in  a  Commission  order requiring an electric
 9    utility to  unbundle  its  delivery  services  under  Section
10    16-108  or  16-109,  but  the  term  "provider  of  unbundled
11    delivery  services" shall not include (i) an electric utility
12    (or any agent of the  electric  utility  to  the  extent  the
13    electric   utility   provides  tariffed  services  to  retail
14    customers through that agent) within  the  utility's  service
15    area,  (ii)  any  electric cooperative or municipal system as
16    defined in Section 17-100 to the  extent  that  the  electric
17    cooperative  or  municipal system is serving retail customers
18    within any area in which  it  is  or  would  be  entitled  to
19    provide  service under the law in effect immediately prior to
20    December 16, 1997, (iii) a public utility that is  owned  and
21    operated  by  any  public  institution of higher education of
22    this State, or a public utility that is owned by such  public
23    institution  of  higher  education and operated by any of its
24    lessees or operating agents, within any area in which  it  is
25    or  would  be  entitled  to  provide service under the law in
26    effect immediately prior to December  16,  1997,  or  (iv)  a
27    provider  of  meter  services  that  installs,  provides,  or
28    maintains  equipment  on  the  premises  of a retail customer
29    under circumstances in which no entity other than the  retail
30    customer   relies   on   the   accuracy,  safety,  or  proper
31    installation and maintenance of the equipment.
32        "Municipal system" shall have the meaning  set  forth  in
33    Section 17-100.
34        "Real-time  pricing" means charges for delivered electric
 
                            -6-            LRB9113005JSdvam03
 1    power and energy that  vary  on  an  hour-to-hour  basis  for
 2    nonresidential  retail  customers and that vary on a periodic
 3    basis during the day for residential retail customers.
 4        "Retail customer" means a single  entity  using  electric
 5    power  or energy at a single premises and that (A) either (i)
 6    is receiving or is eligible to receive tariffed services from
 7    an electric utility,  or (ii) that is served by  a  municipal
 8    system  or  electric cooperative within any area in which the
 9    municipal system or  electric  cooperative  is  or  would  be
10    entitled   to   provide  service  under  the  law  in  effect
11    immediately prior to the effective date  of  this  amendatory
12    Act  of 1997, or (B) an entity which on the effective date of
13    this Act was receiving electric service from a public utility
14    and  (i)  was  engaged  in  the   practice  of   resale   and
15    redistribution of such electricity within a building prior to
16    January  2,  1957, or (ii) was providing lighting services to
17    tenants in a multi-occupancy building, but only to the extent
18    such resale, redistribution or lighting service is authorized
19    by the electric utility's tariffs that were on file with  the
20    Commission on the effective date of this Act.
21        "Service area" means (i) the geographic area within which
22    an electric utility was lawfully entitled to provide electric
23    power and energy to retail customers as of the effective date
24    of  this  amendatory  Act  of  1997,  and  includes  (ii) the
25    location of any retail customer to which the electric utility
26    was lawfully providing  electric  utility  services  on  such
27    effective date.
28        "Small    commercial   retail   customer"   means   those
29    nonresidential  retail  customers  of  an  electric   utility
30    consuming   15,000  kilowatt-hours  or  less  of  electricity
31    annually in its service area.
32        "Tariffed service"  means  services  provided  to  retail
33    customers  by  an electric utility as defined by its rates on
34    file with  the  Commission  pursuant  to  the  provisions  of
 
                            -7-            LRB9113005JSdvam03
 1    Article  IX  of  this  Act, but shall not include competitive
 2    services.
 3        "Transition charge" means a charge expressed in cents per
 4    kilowatt-hour that is calculated for a customer or  class  of
 5    customers  as  follows  for  each  year  in which an electric
 6    utility is entitled to recover transition charges as provided
 7    in Section 16-108:
 8             (1)  the amount of revenue that an electric  utility
 9        would receive from the retail customer or customers if it
10        were  serving  such  customers' electric power and energy
11        requirements as a tariffed service based on  (A)  all  of
12        the  customers' actual usage during the 3 years ending 90
13        days prior to the date on which such customers were first
14        eligible  for  delivery  services  pursuant  to   Section
15        16-104,  and  (B)  on  (i)  the  base  rates in effect on
16        October 1, 1996 (adjusted for the reductions required  by
17        subsection  (b)  of  Section  16-111,  for  any reduction
18        resulting from a rate decrease under  Section  16-101(b),
19        for  any  restatement  of  base rates made in conjunction
20        with  an  elimination  of  the  fuel  adjustment   clause
21        pursuant  to subsection (b), (d), or (f) of Section 9-220
22        and for any removal of decommissioning  costs  from  base
23        rates  pursuant  to  Section  16-114)  and  any  separate
24        automatic   rate   adjustment   riders   (other   than  a
25        decommissioning rate as defined in Section 16-114)  under
26        which  the  customers  were  receiving  or, had they been
27        customers, would have received electric power and  energy
28        from  the  electric  utility  during the year immediately
29        preceding the date on which  such  customers  were  first
30        eligible for delivery service pursuant to Section 16-104,
31        or  (ii)  to  the  extent applicable, any contract rates,
32        including  contracts  or  rates   for   consolidated   or
33        aggregated  billing,  under  which  such  customers  were
34        receiving  electric  power  and  energy from the electric
 
                            -8-            LRB9113005JSdvam03
 1        utility during such year;
 2             (2)  less the amount of revenue, other than  revenue
 3        from  transition  charges and decommissioning rates, that
 4        the electric  utility  would  receive  from  such  retail
 5        customers  for delivery services provided by the electric
 6        utility, assuming such  customers  were  taking  delivery
 7        services  for  all  of their usage, based on the delivery
 8        services tariffs in effect during the year for which  the
 9        transition  charge  is  being calculated and on the usage
10        identified in paragraph (1);
11             (3)  less the market value for  the  electric  power
12        and  energy  that the electric utility would have used to
13        supply all of such customers' electric power  and  energy
14        requirements,  as  a tariffed service, based on the usage
15        identified in  paragraph  (1),  with  such  market  value
16        determined in accordance with Section 16-112 of this Act;
17             (4)  less  the following amount which represents the
18        amount to be attributed to new revenue sources  and  cost
19        reductions by the electric utility through the end of the
20        period  for which transition costs are recovered pursuant
21        to Section 16-108, referred to in this Article XVI  as  a
22        "mitigation factor":
23                  (A)  for  nonresidential  retail  customers, an
24             amount equal to the greater of  (i)  0.5  cents  per
25             kilowatt-hour  during  the  period  October  1, 1999
26             through   December   31,   2004,   0.6   cents   per
27             kilowatt-hour in calendar year 2005, and  0.9  cents
28             per  kilowatt-hour in calendar year 2006, multiplied
29             in each year by the usage  identified  in  paragraph
30             (1),  or  (ii)  an  amount  equal  to  the following
31             percentages of the amount produced by  applying  the
32             applicable  base  rates  (adjusted  as  described in
33             subparagraph (1)(B)) or contract rate to  the  usage
34             identified  in  paragraph  (1):  8%  for  the period
 
                            -9-            LRB9113005JSdvam03
 1             October 1, 1999 through December 31,  2002,  10%  in
 2             calendar  years  2003 and 2004, 11% in calendar year
 3             2005 and 12% in calendar year 2006; and
 4                  (B)  for  residential  retail   customers,   an
 5             amount  equal  to  the  following percentages of the
 6             amount produced by applying the base rates in effect
 7             on  October  1,  1996  (adjusted  as  described   in
 8             subparagraph  (1)(B))  to  the  usage  identified in
 9             paragraph (1): (i)  6%  from  May  1,  2002  through
10             December  31,  2002,  (ii) 7% in calendar years 2003
11             and 2004, (iii) 8% in calendar year 2005,  and  (iv)
12             10% in calendar year 2006;
13             (5)  divided   by   the   usage  of  such  customers
14        identified in paragraph (1),
15    provided that the transition charge shall never be less  than
16    zero.
17        "Unbundled service" means a component or constituent part
18    of a tariffed service which the electric utility subsequently
19    offers separately to its customers.
20    (Source: P.A. 90-561, eff. 12-16-97; 91-50, eff. 6-30-99.)

21        (220 ILCS 5/16-115C new)
22        Sec. 16-115C.  Obligations and certification of providers
23    of unbundled delivery services.
24        (a)  Any  provider  of  unbundled  delivery services must
25    obtain a certificate of service authority from the Commission
26    in accordance with this Section before providing the services
27    identified  in  the  definition  of  "provider  of  unbundled
28    delivery services" in Section 16-102.
29        (b)  A provider of unbundled delivery services seeking  a
30    certificate   of   service  authority  shall  file  with  the
31    Commission  a  verified  application  containing  information
32    showing that the applicant meets  the  requirements  of  this
33    Section.   The  provider of unbundled delivery services shall
 
                            -10-           LRB9113005JSdvam03
 1    publish notice of  its  application  in  the  official  State
 2    newspaper  within  10  days following the date of its filing.
 3    No later than 45 days after the application is properly filed
 4    with the  Commission,  and  such  notice  is  published,  the
 5    Commission  shall  issue  its  order  granting or denying the
 6    application.
 7        (c)  The Commission shall grant  the  application  for  a
 8    certificate of service authority if it makes the findings set
 9    forth  in  this  subsection based on the verified application
10    and such other information as the applicant may submit:
11             (1)  that   the   applicant   possesses   sufficient
12        technical,  financial,  and  managerial   resources   and
13        abilities  to  provide  the  service for which it seeks a
14        certificate of service  authority.   In  determining  the
15        level  of  technical, financial, and managerial resources
16        and abilities which the applicant must  demonstrate,  the
17        Commission  shall consider the characteristics, including
18        the size and financial sophistication, of  the  customers
19        that the applicant seeks to serve;
20             (2)  that   the   applicant  will  comply  with  all
21        applicable federal, State, regional, and industry  rules,
22        policies,   practices,   and   procedures  for  the  use,
23        operation, and maintenance of the safety, integrity,  and
24        reliability  of  the  inter-connected  electric  delivery
25        system;
26             (3)  that the applicant will only provide service to
27        retail  customers  in  an electric utility's service area
28        that are taking delivery services under this Act;
29             (4)  that  the  applicant  will  comply  with   such
30        informational,    testing,    accuracy,   and   reporting
31        requirements as the Commission may by rule establish;
32             (5)  that  the  applicant  will  comply   with   the
33        provisions of Section 16-128 of this Act; and
34             (6)  that  the  applicant will comply with all other
 
                            -11-           LRB9113005JSdvam03
 1        applicable laws and rules.
 2        (d)  The  Commission  shall   have   the   authority   to
 3    promulgate rules to carry out the provisions of this Section.

 4        (220 ILCS 5/16-115D new)
 5        Sec.  16-115D.  Obligations  of  providers  of  unbundled
 6    delivery services.
 7        (a)  A provider of unbundled delivery services shall:
 8             (1)  comply  with the requirements imposed on public
 9        utilities by Sections 8-201 through 8-207, 8-301,  8-302,
10        8-303, 8-305, 8-505, and 8-507 of this Act, to the extent
11        that  these  Sections  have  application  to the services
12        being offered  by  the  provider  of  unbundled  delivery
13        services; and
14             (2)  continue  to  comply  with the requirements for
15        certification  stated  in  subsection  (c)   of   Section
16        16-115C.
17        (b)  A  provider  of  unbundled  delivery  services shall
18    obtain verifiable authorization from a customer, in a form or
19    manner approved by the Commission in the manner  provided  by
20    Section  2EE  of  the  Consumer  Fraud and Deceptive Business
21    Practices Act, before the customer is switched  from  another
22    provider.

23        (220 ILCS 5/16-115E new)
24        Sec.  16-115E.  Commission oversight of services provided
25    by providers of unbundled delivery services.
26        (a)  The Commission shall have jurisdiction in accordance
27    with the provisions of Article X of this Act to entertain and
28    dispose of any complaint against any  provider  of  unbundled
29    delivery services alleging (i) that the provider of unbundled
30    delivery  services  has violated or is in nonconformance with
31    any applicable provisions of Section 16-115C through  Section
32    16- 115D; (ii) that a provider of unbundled delivery services
 
                            -12-           LRB9113005JSdvam03
 1    serving  retail customers having maximum demands of less than
 2    one megawatt has failed to provide service in accordance with
 3    the terms of its contract or contracts with such customer  or
 4    customers;  (iii)  that  the  provider  of unbundled delivery
 5    services has violated  or  is  in  non-conformance  with  the
 6    delivery  services  tariff  of,  or  any  of  its  agreements
 7    relating  to  delivery  services  with, the electric utility,
 8    municipal system, or electric cooperative providing  delivery
 9    services;  or  (iv)  that  the provider of unbundled delivery
10    services  has  violated  or  failed  to   comply   with   the
11    requirements  of  Sections 8-201 through 8-207, 8-301, 8-302,
12    8-303, 8-305, 8-505, or 8-507 of this Act as made  applicable
13    to providers of unbundled delivery services.
14        (b)  The  Commission  shall  have authority, after notice
15    and hearing held on complaint  or  on  the  Commission's  own
16    motion:
17             (1)  to  order  a  provider  of  unbundled  delivery
18        services  to  cease and desist, or correct, any violation
19        of or non-conformance  with  the  provisions  of  Section
20        16-115C or Section 16-115D;
21             (2)  to impose financial penalties for violations of
22        or   non-conformances  with  the  provisions  of  Section
23        16-115C or Section 16-115D, not to exceed (i) $10,000 per
24        occurrence or (ii) $30,000 per day for  those  violations
25        or  non-conformances  which continue after the Commission
26        issues a cease-and-desist order; and
27             (3)  to  alter,  modify,  revoke,  or  suspend   the
28        certificate   of  service  authority  of  a  provider  of
29        unbundled delivery services for substantial  or  repeated
30        violations  of or non-conformances with the provisions of
31        Section 16-115C or Section 16-115D.

32        (220 ILCS 5/16-116)
33        Sec. 16-116. Commission oversight of  electric  utilities
 
                            -13-           LRB9113005JSdvam03
 1    serving  retail  customers  outside  their  service  areas or
 2    providing competitive, non-tariffed services.
 3        (a)  An electric utility that has a tariff  on  file  for
 4    delivery  services  may,  without  regard  to  any  otherwise
 5    applicable tariffs on file, provide electric power and energy
 6    or  services  as  described in the definition of "provider of
 7    unbundled delivery services" in Section 16-102 to one or more
 8    retail customers located outside its service area,  but  only
 9    to  the  extent  (i) such retail customer (A) is eligible for
10    delivery services under any delivery  services  tariff  filed
11    with  the Commission by the electric utility in whose service
12    area the retail  customer  is  located  and  (B)  has  either
13    elected  to  take  such  delivery  services  or  has  paid or
14    contracted to pay the charges specified  in  Sections  16-108
15    and  16-114,  or  (ii) if such retail customer is served by a
16    municipal system or electric  cooperative,  the  customer  is
17    eligible for delivery services under the terms and conditions
18    for  such  service  established  by  the  municipal system or
19    electric cooperative serving that customer.
20        (b)  An  electric  utility  may  offer  any   competitive
21    service  to any customer or group of customers without filing
22    contracts  with  or  seeking  approval  of  the   Commission,
23    notwithstanding  any  rule  or  regulation that would require
24    such approval.  The Commission shall not increase or decrease
25    the prices, and may  not  alter  or  add  to  the  terms  and
26    conditions for the utility's competitive services, from those
27    agreed  to  by  the  electric  utility  and  the  customer or
28    customers.  Non-tariffed, competitive services shall  not  be
29    subject  to the provisions of the Electric Supplier Act or to
30    Articles V, VII, VIII or IX of the Act, except to the  extent
31    that  any  provisions of such Articles are made applicable to
32    alternative retail electric suppliers  pursuant  to  Sections
33    16-115 and 16-115A, but shall be subject to the provisions of
34    subsections  (b)  through (g) of Section 16-115A, and Section
 
                            -14-           LRB9113005JSdvam03
 1    16-115B to the same extent such provisions are applicable  to
 2    the   services   provided   by  alternative  retail  electric
 3    suppliers. Non-tariffed, competitive services related to  the
 4    provision  of  meter services and unbundled delivery services
 5    shall not be  subject  to  the  provisions  of  the  Electric
 6    Supplier  Act or to Articles V, VII, VIII, or IX of this Act,
 7    except to the extent that any provisions of such Articles are
 8    made applicable to providers of unbundled  delivery  services
 9    pursuant  to  Sections  16-115C  and  16-115D,  but  shall be
10    subject to the provisions  of  Section  16-115D  and  Section
11    16-115E.
12    (Source: P.A. 90-561, eff. 12-16-97.)

13        (220 ILCS 5/16-124)
14        Sec.   16-124.   Metering   for   residential  and  small
15    commercial retail customers. An electric  utility  shall  not
16    require  a residential or small commercial retail customer to
17    take  additional  metering  or  metering  capability   as   a
18    condition  of  taking delivery services unless the Commission
19    finds, after notice and hearing, that additional metering  or
20    metering   capability   is   required   to  meet  reliability
21    requirements.  Alternative retail electric suppliers  serving
22    such  customers  may  provide  such  additional  metering  or
23    metering  capability  at  their  own  expense  or  for  value
24    received  if  the  alternative  retail  electric supplier has
25    obtained a certificate of  service  authority  under  Section
26    16-115C,   or  take  such  additional  metering  or  metering
27    capability as a tariffed service from the  utility  in  whose
28    service  area  such  customers  take  service  as  a tariffed
29    service, or take such additional metering service or metering
30    capability from an electric utility other than the utility in
31    whose service area such customers take  service,  or  from  a
32    provider  of  unbundled  delivery  services.  Any  additional
33    metering requirements shall be imposed in a nondiscriminatory
 
                            -15-           LRB9113005JSdvam03
 1    manner.   Nothing  in  this  subsection shall be construed to
 2    prevent the normal maintenance,  replacement  or  upgrade  of
 3    meters as required to comply with Commission rules.
 4    (Source: P.A. 90-561, eff. 12-16-97.)

 5        (220 ILCS 5/16-128)
 6        Sec.  16-128.  Provisions  related  to  utility employees
 7    during the mandatory transition period.
 8        (a)  The General Assembly finds:
 9             (1)  The reliability  and  safety  of  the  electric
10        system  has  depended  on  a  workforce  of  skilled  and
11        dedicated employees, equipped with technical training and
12        experience.
13             (2)  The integrity and reliability of the system has
14        also  depended  on the industry's commitment to invest in
15        regular inspection and maintenance, to assure that it can
16        withstand the demands of heavy service  requirements  and
17        emergency situations.
18             (3)  It  is  in  the State's interest to protect the
19        interests  of  utility  employees  who   have   dedicated
20        themselves  to  assuring reliable service to the citizens
21        of this State, and who might  otherwise  be  economically
22        displaced in a restructured industry.
23        The  General  Assembly further finds that it is necessary
24    to  assure  that  employees  operating  in  the   deregulated
25    industry have the requisite skills, knowledge, and competence
26    to provide reliable and safe electrical service and therefore
27    that  alternative retail electric suppliers shall be required
28    to demonstrate the competence of their employees to  work  in
29    the industry.
30        The   knowledge,  skill,  and  competence  levels  to  be
31    demonstrated  shall  be  consistent  with   those   generally
32    required  of  or by the electric utilities in this State with
33    respect to their employees.
 
                            -16-           LRB9113005JSdvam03
 1        Adequate demonstration of requisite knowledge, skill  and
 2    competence  shall  include  such factors as completion by the
 3    employee   of   an   accredited   or   otherwise   recognized
 4    apprenticeship program for the  particular  craft,  trade  or
 5    skill,  or  specified  years  of  employment with an electric
 6    utility performing a particular work function.
 7        To  implement  this  requirement,  the   Commission,   in
 8    determining   that  an  applicant  meets  the  standards  for
 9    certification as an alternative retail electric  supplier  or
10    provider  of  unbundled  delivery services, shall require the
11    applicant to demonstrate (i) that the applicant  is  licensed
12    to  do  business,  and  bonded, in the State of Illinois; and
13    (ii) that  the  employees  of  the  applicant  that  will  be
14    installing,    operating,    and    maintaining   generation,
15    transmission, or distribution, or metering facilities  within
16    this  State,  or  any  entity  with  which  the applicant has
17    contracted to perform those functions within this State, have
18    the requisite knowledge, skills, and  competence  to  perform
19    those  functions in a safe and responsible manner in order to
20    provide safe and reliable service,  in  accordance  with  the
21    criteria stated above.
22        (b)  The  General  Assembly finds, based on experience in
23    other industries that  have  undergone  similar  transitions,
24    that   the  introduction  of  competition  into  the  State's
25    electric utility industry may result in workforce  reductions
26    by  electric utilities which may adversely affect persons who
27    have been employed by  this  State's  electric  utilities  in
28    functions  important  to  the public convenience and welfare.
29    The General  Assembly  further  finds  that  the  impacts  on
30    employees  and  their communities of any necessary reductions
31    in  the   utility   workforce   directly   caused   by   this
32    restructuring  of the electric industry shall be mitigated to
33    the extent  practicable  through  such  means  as  offers  of
34    voluntary    severance,    retraining,    early   retirement,
 
                            -17-           LRB9113005JSdvam03
 1    outplacement and related benefits. Therefore, before any such
 2    reduction in the workforce during the transition  period,  an
 3    electric  utility  shall  present  to  its employees or their
 4    representatives a  workforce  reduction  plan  outlining  the
 5    means  by  which the electric utility intends to mitigate the
 6    impact of such workforce reduction on its employees.
 7        (c)  In the event of  a  sale,  purchase,  or  any  other
 8    transfer  of ownership during the mandatory transition period
 9    of one or more Illinois divisions or business  units,  and/or
10    generating  stations  or  generating  units,  of  an electric
11    utility, the electric utility's  contract  and/or  agreements
12    with  the  acquiring entity or persons shall require that the
13    entity or persons hire a sufficient number of non-supervisory
14    employees to operate and maintain the  station,  division  or
15    unit   by  initially  making  offers  of  employment  to  the
16    non-supervisory workforce of the electric utility's division,
17    business unit, generating station and/or generating  unit  at
18    no  less  than  the  wage rates, and substantially equivalent
19    fringe benefits and terms and conditions of  employment  that
20    are  in  effect  at the time of transfer of ownership of said
21    division,   business   unit,   generating   station,   and/or
22    generating units;  and  said  wage  rates  and  substantially
23    equivalent  fringe  benefits  and  terms  and  conditions  of
24    employment  shall  continue  for  at least 30 months from the
25    time  of  said  transfer  of  ownership  unless  the  parties
26    mutually  agree  to  different  terms   and   conditions   of
27    employment  within  that  30-month period.  The utility shall
28    offer a transition  plan  to  those  employees  who  are  not
29    offered  jobs by the acquiring entity because that entity has
30    a need for fewer workers.  If there is litigation  concerning
31    the  sale,  or  other  transfer  of ownership of the electric
32    utility's divisions, business units, generating  station,  or
33    generating  units, the 30-month period will begin on the date
34    the acquiring entity or persons take control or management of
 
                            -18-           LRB9113005JSdvam03
 1    the  divisions,  business  units,   generating   station   or
 2    generating units of the electric utility.
 3        (d)  If   a   utility   transfers  ownership  during  the
 4    mandatory  transition  period  of  one   or   more   Illinois
 5    divisions,  business units, generating stations or generating
 6    units of an electric utility to a majority-owned  subsidiary,
 7    that  subsidiary  shall  continue  to  employ  the  utility's
 8    employees  who were employed by the utility at such division,
 9    business unit or  generating  station  at  the  time  of  the
10    transfer under the same terms and conditions of employment as
11    those  employees  enjoyed  at  the  time of the transfer.  If
12    ownership  of  the  subsidiary  is   subsequently   sold   or
13    transferred  to  a  third party during the transition period,
14    the transition provisions outlined in  subsection  (c)  shall
15    apply.
16        (e)  The  plant transfer provisions set forth above shall
17    not apply to any generating station which was the subject  of
18    a sales agreement entered into before January 1, 1997.
19    (Source: P.A. 90-561, eff. 12-16-97.)

20        Section  99.  Effective date.  This Act takes effect upon
21    becoming law.".

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