Section 465.5  Definitions

 

Terms defined in Section 16-102 of the Public Utilities Act (Act) [220 ILCS 5/16-102] shall have the same meaning for purposes of this Part as they have under Section 16-102 of the Act, unless further defined in this Part.

 

"Alternative retail electric supplier" or "ARES" has the meaning set forth in Section 16-102 of the Act.

 

"Annual period" means the period of 12 consecutive monthly billing periods ending on the last day of either the net metering customer's April monthly billing period or its October monthly billing period, whichever was selected by the customer in connection with its application for net metering.

 

"Arm's-length agreement" means an agreement negotiated by unrelated parties, each acting in his or her own self-interest.  "Arm's-length agreement" shall not include any standardized agreement offered to consumers of goods or services that does not afford the consumer a realistic opportunity to bargain and is offered under such conditions that the consumer cannot obtain the desired product or service except by acquiescence in the standardized agreement.

 

"Avoided costs" means the incremental costs to the electricity provider of electric energy or capacity or both, which, but for the purchase from an eligible customer, the electricity provider would generate itself or purchase from another source.

 

"Electric utility" means a public utility, as defined in Section 3-105 [220 ILCS 5/3-105] of the Act, that has a franchise, license, permit or right to furnish or sell electricity or light, except when used solely for communications purposes, to retail customers within a service area, as both of these terms are defined in Section 16-102 of the Act.

 

"Electricity provider" means an electric utility or an alternative retail electric supplier.

 

"Electricity supplier" means:

 

the alternative retail electric supplier that is providing electric supply services; or

 

the electric utility that is providing electric supply services, either within or outside its service area.

 

"Eligible customer" or "customer" means a retail customer that owns or operates a solar, wind, or other eligible renewable electrical generating facility with a rated capacity of not more than 2,000 kilowatts (kW) that is located on the customer's premises and is intended primarily to offset the customer's own electrical requirements.

 

"Eligible renewable electrical generating facility" means a generator or generators with a total rated capacity of not more than 2,000 kW powered by solar electric energy, wind, dedicated crops grown for electricity generation, agricultural residues, untreated wood waste and unadulterated wood waste, landscape trimmings, livestock manure, anaerobic digestion of livestock waste or anaerobic digestion of food processing waste, fuel cells powered by renewable fuels or microturbines powered by renewable fuels, or hydroelectric energy.

 

"Net electricity metering" or "Net metering" means measurement during the billing period applicable to an eligible customer of the net amount of electricity supplied by an electricity provider to the customer's premises or provided to the electricity provider by the customer.

 

"Net purchaser of electricity" means that the total amount of generation produced by the customer is less than the customer's total usage during an applicable billing period.

 

"Net seller of electricity" means that the total amount of generation produced by the customer is greater than the customer's total usage during an applicable billing period.

 

"Non-competitive customer" means an eligible customer whose class of electric service had not been declared competitive pursuant to Section 16-113 of the Act prior to July 1, 2011, including:

 

all residential retail customers;

 

all non-residential retail customers with peak demands of less than 100 kW if located in the service territory of an electric utility serving at least 3,000,000 retail customers; and

 

all non-residential retail customers with peak demands of less than 150 kW if located in the service territory of an electric utility serving at least 1,000,000 retail customers.

 

"Time of use rate" means any contract or tariff under which the kilowatt-hour (kWh) price for electric power and energy supply is not uniform over all of the hours in a billing period.

 

"Type (d) Customer" means an eligible, non-competitive customer whose electric delivery service is provided and measured on a kWh basis and whose electric supply service is not based on hourly pricing.

 

"Type (d-5) Customer" means an eligible, non-competitive customer whose electric delivery service is provided and measured on a kWh basis and whose electric supply service is based on hourly pricing.

 

"Type (e) Customer" means an eligible, non-competitive customer whose electric delivery service is provided and measured on a kW demand basis and whose electric supply service is not based on hourly pricing.

 

"Type (f) Customer" means an eligible customer who is not a Type (d) Customer, Type (d-5) Customer or Type (e) Customer.

 

(Source:  Amended at 40 Ill. Reg. 7578, effective May 6, 2016)

 

Section 465.10  Application of Part 465

 

This Part shall apply to all Illinois electric utilities and ARES in accordance with Section 16-107.5 of the Act.

 

(Source:  Amended at 40 Ill. Reg. 7578, effective May 6, 2016)

 

Section 465.20  Purpose of this Part

 

The purpose of this Part is to establish standards for net metering in accordance with the requirements of Section 16-107.5 of the Act.  Nothing in this Part is intended to conflict with or supersede 83 Ill. Adm. Code 452.

 

Section 465.30  Tariffs

 

Each electric utility subject to Section 16-107.5 of the Act shall file a tariff with the Illinois Commerce Commission (Commission) in compliance with Section 16-107.5 of the Act and this Part.

 

Section 465.35  Net Metering Application and Enrollment Procedures

 

a)         Each electricity supplier shall establish an application form and publish on its website procedures to enable eligible customers to participate in the net metering program offered by the electricity supplier.  Each electricity supplier shall designate a point of contact and provide contact information on its website. The point of contact shall be able to direct questions concerning net metering request submissions and the net metering process to knowledgeable individuals within the company.

 

b)         An electricity provider may establish an enrollment cap of 5% of the peak demand supplied by the electricity provider in the previous calendar year in accordance with Section 16-107.5(j) of the Act. Nothing in this Part alters the authority of electricity providers to offer net metering beyond the limitations in Section 16-107.5(j) of the Act, if they so choose.

 

c)         Net metering enrollment priority shall be established on a first-come, first-served basis, according to an electricity supplier's date stamp or similar electronic method for indicating receipt of a completed net metering application.

 

d)         Each completed application for net metering services shall be in writing or be submitted via an electronic application process established by the electricity supplier and shall include:

 

1)         The customer's name, contact information and corresponding service location where the proposed net metering generation facility or facilities are located;

 

2)         The name plate capacity rating of the proposed net metering generation facility or facilities; and

 

3)         Sufficient information to permit the electricity supplier to determine whether any facility on the application qualifies as an eligible renewable electrical generating facility.

 

e)         Electricity suppliers shall provide net metering applicants with a single mailing address to which a completed physical application must be sent. In addition, or as an alternative, electricity suppliers may establish an electronic net metering application process.  Electricity suppliers shall date stamp, either physically or by electronic means, each completed application upon receipt and determine whether the application meets the requirements of subsection (d).  Electricity suppliers shall, within 10 business days after receipt of a qualified application or completion of an open enrollment period, notify an applicant whether it is authorized to participate in the electricity supplier's net metering program. An electricity supplier shall state, in writing, its reasons for denying a prospective net metering customer's application.  An electricity supplier shall not deny a prospective net metering customer's application in a manner that violates this Part, 83 Ill. Adm. Code 466 or Section 16-107.5 of the Act.

 

f)         If an electricity supplier denies an application due to the cap authorized by subsection (b), the electricity supplier shall offer the applicant the opportunity to be placed on a waiting list. If space becomes available under the cap, due to either attrition among enrolled customers or an increase in the electricity supplier's peak demand, wait-listed customers shall be processed before new applications.

 

g)         Any authorization to net meter shall remain effective for as long as the customer remains eligible for net metering and continues taking electric supply service from the electricity supplier, subject to the limitations in subsections (g)(1) and (g)(2).

 

1)         A customer authorized to net meter under subsection (e) shall submit an executed application for interconnection, pursuant to 83 Ill. Adm. Code 466, to the customer's electric utility within 30 business days after the date of the notification from the electricity supplier pursuant to subsection (e). An electricity supplier may cancel the authorization if the customer has not submitted an executed application by the date specified in subsection (g)(2)(A).

 

2)         The following provisions apply to any electricity supplier that establishes enrollment limits, as authorized by subsection (b):

 

A)        The electricity supplier shall cancel a customer's authorization to net meter if the customer has not executed and returned to the customer's electric utility an interconnection agreement with the electric utility pursuant to 83 Ill. Adm. Code 466 and provided the executed interconnection agreement to its electricity supplier within 12 months after receiving the interconnection agreement from the electric utility.

 

B)        The electricity supplier must automatically extend the authorization to net meter by an additional six months for an eligible customer that has met the requirements of subsection (g)(2)(A), but whose eligible renewable electrical generating facility has not commenced operation and passed any applicable witness test.

 

C)        A customer seeking to extend the authorization to net meter for an additional six months pursuant to subsection (g)(2)(B) must pay a deposit of $25 for each kW of the nameplate rating of the customer's eligible renewable electrical generating facility, which shall be refunded only if the facility commences operation and passes any applicable witness test. A customer may only receive a single six-month extension.

 

D)        Customers who have previously applied to net meter must reapply if:

 

i)          the customer has had its authorization to net meter canceled for failure to execute and return the interconnection agreement as required by subsection (g)(2)(A); or

 

ii)         the customer has exhausted its allotted time to commence operation and pass any applicable witness test pursuant to subsections (g)(2)(B) and (g)(2)(C).

 

E)        If a customer must reapply pursuant to subsection (g)(2)(D), all other customers awaiting authorization to net meter at that time shall be deemed to have applied before the reapplying customer for purposes of the enrollment priority established by subsection (c). Additionally, the project for which a customer must reapply shall be removed from the calculation of the 5% of peak demand supplied by the electricity supplier enrollment cap.

 

h)         With respect to any customer that has been authorized for net metering offered by an ARES, the ARES must notify the electric utility in writing or via an electronic method approved by the utility of the customer's status as a net metering customer within 15 days after the customer's authorization.

 

i)          With respect to any customer that has had its authorization for net metering canceled by an ARES, the ARES must notify the electric utility in writing or via an electronic method approved by the utility of the customer's status as a canceled net metering customer within 15 days after the cancellation.

 

j)          With respect to any non-competitive customer authorized for net metering offered by an electricity supplier that is switching to another electricity supplier, the electric utility must notify the customer's new electricity supplier via an electronic method approved by the utility of the customer's status as a net metering customer.

 

k)         With respect to any customer that has been authorized for net metering that is switching from one electricity supplier to another, the customer's new electricity supplier shall inform the customer within 15 calendar days after the date the electric utility provides the notice to the new electricity supplier pursuant to subsection (j), of any steps that are necessary to apply for net metering with the new supplier.

 

(Source:  Amended at 40 Ill. Reg. 7578, effective May 6, 2016)

 

Section 465.40  Reporting Requirements

 

The annual report required by Section 16-107.5(k) of the Act shall be filed electronically with the Chief Clerk of the Illinois Commerce Commission, in a manner that meets all filing requirements of the Commission's electronic filing system, by April 1 of each year.  The report shall include all information required under Section 16-107.5(k) of the Act, including, but not limited to:  the total number of net metering customers served by the electricity provider; the type, capacity and energy sources of the generating systems used by the electricity provider's net metering customers; whether the total generating capacity of the electricity provider's net metering customers equals or exceeds the 5% cap; and whether the electricity provider intends to limit the total generating capacity of its net metering customers to 5%. The Commission will maintain the reports required by this Section on the Commission's website.

 

(Source:  Amended at 40 Ill. Reg. 7578, effective May 6, 2016)

 

Section 465.50  Electricity Provider Billing for Eligible Customers

 

a)         Billing for Type (d) Customers

 

1)         The electricity supplier shall determine whether each customer is a net purchaser of electricity or a net seller of electricity during the billing period.



2)         If a customer is a net purchaser of electricity during the billing period, the electricity supplier shall assess charges on the net amount purchased at the tariffed or contract rate, as appropriate, under which the customer is taking service from the electricity supplier.  When the electricity provider is an ARES, the electric utility shall assess charges for delivery and other provided services at the tariffed rate under which the customer is taking electric service from the electric utility. Notwithstanding these requirements, the tariffed or contract rates for both electric supply and delivery services shall be non-discriminatory rates that are identical, with respect to rate structure, retail rate components, and any monthly charges, with the rates that the customer would be charged if not a net metering customer, unless an electricity supplier and the customer have entered into an arm's-length agreement setting forth different prices, terms and conditions for the provision of net metering service.

 

3)         If a customer is a net seller of electricity during the billing period, the customer shall receive a 1:1 kWh credit from the electricity supplier that is equal to the net kWh supplied by the customer during the billing period.  When the electricity supplier is an ARES, the electric utility shall issue to the customer a 1:1 kWh credit for delivery service that is equal to the net kWh delivered to the electric utility's system by the customer during the billing period.

 

4)         Any credits received by the customer shall be carried over to subsequent billing periods. Unused credits shall expire either at the end of the annual period or, in the event the customer terminates service from the electricity supplier, at the time the customer terminates service from the electricity supplier.

 

5)         Customers remain responsible for all taxes, fees and utility delivery charges that would otherwise be applicable to the net amount of electricity used by the customer.

 

b)         Billing for Type (d-5) Customers

 

1)         The electricity supplier shall determine whether each customer is a net purchaser of electricity or a net seller of electricity during each hour for which the tariffed or contract rate, as appropriate, is applicable. 

 

2)         For the  hours in which the customer is a net purchaser of electricity, the electricity supplier shall charge the customer for the net electricity supplied to and used by the customer according to the terms of the contract or tariff to which the same customer would be assigned or be eligible if the customer were not a net metering customer.

 

3)         For the hours in which the customer is a net seller of electricity, the customer shall receive a credit that consists of an energy credit and a delivery credit. The energy credit for an hour shall be determined by multiplying the net electricity supplied during that hour by the same price per kWh as the electricity provider would charge for kWh energy sales during that same time period.  The delivery credit shall be determined by multiplying the net electricity supplied during that hour by a credit that reflects all kWh-based electricity charges applicable to the customer electric service rate, excluding energy charges, for that hour. When eligible customers receive service under an electric utility's bundled service rates, the monetary credit shall be equal to the applicable kWh-based bundled service charges, multiplied by the net electricity supplied over the billing period. The electricity supplier shall provide the energy credit and, if the electricity supplier is also the electric utility, it shall also provide the delivery credit. If the electricity provider is an ARES, the electric utility shall provide credit for delivery services.

 

4)         Customers remain responsible for all taxes, fees and utility delivery charges that would otherwise be applicable to the net amount of electricity supplied to the eligible customer by the electricity provider.

 

c)         Billing for Type (e) Customers

 

1)         The electricity supplier shall determine whether each customer is a net purchaser of electricity or a net seller of electricity during the billing period.

 

2)         If a customer is a net purchaser of electricity during the billing period, the electricity supplier shall assess charges on the net amount purchased at the tariffed or contract rate, as appropriate, under which the customer is taking service from the electricity supplier.  When the electricity provider is an ARES, the electric utility shall assess charges for delivery and other provided services at the tariffed rate under which the customer is taking electric service from the electric utility. Notwithstanding these requirements, the tariffed or contract rates for both electric supply and delivery services shall be non-discriminatory rates that are identical, with respect to rate structure, retail rate components, and any monthly charges, with the rates that the customer would be charged if not a net metering customer, unless an electricity supplier and the customer have entered into an arm's-length agreement setting forth different prices, terms and conditions for the provision of net metering service.

 

3)         If a customer is a net seller of electricity during the billing period, the customer shall receive a 1:1 kWh credit that reflects the kWh-based charges in the customer's electric service rate from the electricity supplier that is equal to the net kWh supplied by the customer during the billing period.   When the electricity provider is an ARES, the electric utility shall issue to the customer a 1:1 kWh credit that reflects the kWh-based charges, if any, for delivery service that is equal to the net kWh delivered to the electric utility's system by the customer during the billing period.

 

4)         Any credits received by the customer shall be carried over to subsequent billing periods. Unused credits shall expire either at the end of the annual period or, if the customer terminates service from the electricity supplier, at the time of the termination.

 

5)         Customers remain responsible for all taxes, fees and utility delivery charges that would otherwise be applicable to the net amount of electricity used by the customer.

 

d)         Billing for Type (f) Customers

 

1)         The electricity supplier shall determine whether the customer is a net purchaser of electricity or a net seller of electricity during each hour. For each hour, the electricity supplier shall multiply the applicable rate by the amount purchased or sold by the customer to determine each hour's charge or credit. These amounts shall be summed to determine the net energy charge or credit for each billing period.

 

2)         If the customer is a net purchaser of electricity during the billing period, the electricity supplier shall apply the applicable tariffed or contract rate, as applicable, to the net amount purchased. If the customer is a net seller of electricity, the electricity supplier shall compensate the customer for any excess kWh credits at the electricity provider's avoided cost of electricity supply over the monthly period or as otherwise specified by the terms of a power-purchase agreement negotiated between the customer and electricity supplier.  For purposes of calculating the customer's electricity bill, any resulting credits may be used to offset other charges assessed by the electricity supplier.

 

3)         The electricity supplier shall not establish any unreasonable differences among localities in net metering customers' prices, terms, conditions, services, products or facilities.

 

4)         For the purpose of calculating the customer's bill, any compensation to the customer may be used to offset other charges assessed by the electricity supplier.

 

5)         Customers remain responsible for all taxes, fees and utility delivery charges that would otherwise be applicable to the gross amount of electricity supplied to the eligible customer by the electricity supplier.

 

(Source:  Amended at 40 Ill. Reg. 7578, effective May 6, 2016)

 

Section 465.55  Interval Meter Data

 

When the customer's electricity provider is an ARES, the electric utility shall provide interval meter data to that ARES when the information is necessary for the ARES' billing purposes.

 

(Source:  Added at 40 Ill. Reg. 7578, effective May 6, 2016)

 

Section 465.60  Complaint Procedures

 

Complaints alleging violations of this Part shall be filed pursuant to 83 Ill. Adm. Code 200.

 

Section 465.70  Penalty Provisions

 

a)         Upon complaint or on the Commission's own motion, the Commission may conduct an investigation of an electricity provider's actions under any Section of this Part.  The Commission may, after notice and hearing:

 

1)         order an electricity provider to cease and desist or correct any violation of, or nonconformance with, any provision of this Part;

 

2)         require an electricity provider to make due reparations or refunds as permitted by statute;

 

3)         impose financial penalties for violations of, or non-conformance with, the provisions of this Part as permitted under the Act;

 

4)         take other remedial and preventive action as provided for under the Act.

 

b)         These remedies shall be cumulative and may be imposed in addition to other remedies that the Commission may have the authority to impose.

 

(Source:  Amended at 40 Ill. Reg. 7578, effective May 6, 2016)

 

Section 465.80  Miscellaneous Provisions

 

a)         In accordance with Section 16-107.5(g) of the Act, nothing in this Part is intended to prevent an arms-length agreement between an electricity provider and an eligible customer that sets forth the ownership or title of renewable energy credits.

 

b)         In accordance with Section 16-107.5(m) of the Act, nothing in this Part is intended to affect any retail contract between an ARES and an eligible customer existing prior to May 6, 2016.

 

(Source:  Amended at 40 Ill. Reg. 7578, effective May 6, 2016)

 

Section 465.90  Meter Aggregation

 

a)         Electricity providers shall separately consider each application for meter aggregation for the purposes of net metering and shall determine whether to allow meter aggregation for purposes of net metering on the basis of the facts and circumstances presented in each application.

 

b)         Whenever an electricity provider determines that it will not allow meter aggregation for the purposes of net metering, the electricity provider  shall provide, within 30 days after receiving an application for net metering, an explanation of its determination, based on the facts and circumstances presented in the application, in a written document simultaneously filed with the Chief Clerk of the Commission and provided to the applicant.

 

(Source:  Added at 40 Ill. Reg. 7578, effective May 6, 2016)