Public Act 104-0569
 
SB3273 EnrolledLRB104 18411 AAS 31853 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly:
 
    Section 5. The Public Utilities Act is amended by changing 
Section 16-107.5 and by adding Section 17-1000 as follows:
 
    (220 ILCS 5/16-107.5)
    (Text of Section before amendment by P.A. 104-458)
    Sec. 16-107.5. Net electricity metering.
    (a) The General Assembly finds and declares that a program 
to provide net electricity metering, as defined in this 
Section, for eligible customers can encourage private 
investment in renewable energy resources, stimulate economic 
growth, enhance the continued diversification of Illinois' 
energy resource mix, and protect the Illinois environment. 
Further, to achieve the goals of this Act that robust options 
for customer-site distributed generation continue to thrive in 
Illinois, the General Assembly finds that a predictable 
transition must be ensured for customers between full net 
metering at the retail electricity rate to the distribution 
generation rebate described in Section 16-107.6. 
    (b) As used in this Section, (i) "community renewable 
generation project" shall have the meaning set forth in 
Section 1-10 of the Illinois Power Agency Act; (ii) "eligible 
customer" means a retail customer that owns, hosts, or 
operates, including any third-party owned systems, a solar, 
wind, or other eligible renewable electrical generating 
facility that is located on the customer's premises or 
customer's side of the billing meter and is intended primarily 
to offset the customer's own current or future electrical 
requirements; (iii) "electricity provider" means an electric 
utility or alternative retail electric supplier; (iv) 
"eligible renewable electrical generating facility" means a 
generator, which may include the co-location of an energy 
storage system, that is interconnected under rules adopted by 
the Commission and is powered by solar electric energy, wind, 
dedicated crops grown for electricity generation, agricultural 
residues, untreated and unadulterated wood waste, livestock 
manure, anaerobic digestion of livestock or food processing 
waste, fuel cells or microturbines powered by renewable fuels, 
or hydroelectric energy; (v) "net electricity metering" (or 
"net metering") means the measurement, during the billing 
period applicable to an eligible customer, of the net amount 
of electricity supplied by an electricity provider to the 
customer or provided to the electricity provider by the 
customer or subscriber; (vi) "subscriber" shall have the 
meaning as set forth in Section 1-10 of the Illinois Power 
Agency Act; (vii) "subscription" shall have the meaning set 
forth in Section 1-10 of the Illinois Power Agency Act; (viii) 
"energy storage system" means commercially available 
technology that is capable of absorbing energy and storing it 
for a period of time for use at a later time, including, but 
not limited to, electrochemical, thermal, and 
electromechanical technologies, and may be interconnected 
behind the customer's meter or interconnected behind its own 
meter; and (ix) "future electrical requirements" means modeled 
electrical requirements upon occupation of a new or vacant 
property, and other reasonable expectations of future 
electrical use, as well as, for occupied properties, a 
reasonable approximation of the annual load of 2 electric 
vehicles and, for non-electric heating customers, a reasonable 
approximation of the incremental electric load associated with 
fuel switching. The approximations shall be applied to the 
appropriate net metering tariff and do not need to be unique to 
each individual eligible customer. The utility shall submit 
these approximations to the Commission for review, 
modification, and approval.
    (c) A net metering facility shall be equipped with 
metering equipment that can measure the flow of electricity in 
both directions at the same rate.
        (1) For eligible customers whose electric service has 
    not been declared competitive pursuant to Section 16-113 
    of this Act as of July 1, 2011 and whose electric delivery 
    service is provided and measured on a kilowatt-hour basis 
    and electric supply service is not provided based on 
    hourly pricing, this shall typically be accomplished 
    through use of a single, bi-directional meter. If the 
    eligible customer's existing electric revenue meter does 
    not meet this requirement, the electricity provider shall 
    arrange for the local electric utility or a meter service 
    provider to install and maintain a new revenue meter at 
    the electricity provider's expense, which may be the smart 
    meter described by subsection (b) of Section 16-108.5 of 
    this Act.
        (2) For eligible customers whose electric service has 
    not been declared competitive pursuant to Section 16-113 
    of this Act as of July 1, 2011 and whose electric delivery 
    service is provided and measured on a kilowatt demand 
    basis and electric supply service is not provided based on 
    hourly pricing, this shall typically be accomplished 
    through use of a dual channel meter capable of measuring 
    the flow of electricity both into and out of the 
    customer's facility at the same rate and ratio. If such 
    customer's existing electric revenue meter does not meet 
    this requirement, then the electricity provider shall 
    arrange for the local electric utility or a meter service 
    provider to install and maintain a new revenue meter at 
    the electricity provider's expense, which may be the smart 
    meter described by subsection (b) of Section 16-108.5 of 
    this Act.
        (3) For all other eligible customers, until such time 
    as the local electric utility installs a smart meter, as 
    described by subsection (b) of Section 16-108.5 of this 
    Act, the electricity provider may arrange for the local 
    electric utility or a meter service provider to install 
    and maintain metering equipment capable of measuring the 
    flow of electricity both into and out of the customer's 
    facility at the same rate and ratio, typically through the 
    use of a dual channel meter. If the eligible customer's 
    existing electric revenue meter does not meet this 
    requirement, then the costs of installing such equipment 
    shall be paid for by the customer. 
    (d) An electricity provider shall measure and charge or 
credit for the net electricity supplied to eligible customers 
or provided by eligible customers whose electric service has 
not been declared competitive pursuant to Section 16-113 of 
this Act as of July 1, 2011 and whose electric delivery service 
is provided and measured on a kilowatt-hour basis and electric 
supply service is not provided based on hourly pricing in the 
following manner:
        (1) If the amount of electricity used by the customer 
    during the billing period exceeds the amount of 
    electricity produced by the customer, the electricity 
    provider shall charge the customer for the net electricity 
    supplied to and used by the customer as provided in 
    subsection (e-5) of this Section.
        (2) If the amount of electricity produced by a 
    customer during the billing period exceeds the amount of 
    electricity used by the customer during that billing 
    period, the electricity provider supplying that customer 
    shall apply a 1:1 kilowatt-hour credit to a subsequent 
    bill for service to the customer for the net electricity 
    supplied to the electricity provider. The electricity 
    provider shall continue to carry over any excess 
    kilowatt-hour credits earned and apply those credits to 
    subsequent billing periods to offset any 
    customer-generator consumption in those billing periods 
    until all credits are used or until the end of the 
    annualized period.
        (3) At the end of the year or annualized over the 
    period that service is supplied by means of net metering, 
    or in the event that the retail customer terminates 
    service with the electricity provider prior to the end of 
    the year or the annualized period, any remaining credits 
    in the customer's account shall expire.
    (d-5) An electricity provider shall measure and charge or 
credit for the net electricity supplied to eligible customers 
or provided by eligible customers whose electric service has 
not been declared competitive pursuant to Section 16-113 of 
this Act as of July 1, 2011 and whose electric delivery service 
is provided and measured on a kilowatt-hour basis and electric 
supply service is provided based on hourly pricing or 
time-of-use rates in the following manner:
        (1) If the amount of electricity used by the customer 
    during any hourly period or time-of-use period exceeds the 
    amount of electricity produced by the customer, the 
    electricity provider 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 to or be eligible for if the 
    customer was not a net metering customer.
        (2) If the amount of electricity produced by a 
    customer during any hourly period or time-of-use period 
    exceeds the amount of electricity used by the customer 
    during that hourly period or time-of-use period, the 
    energy provider shall apply a credit for the net 
    kilowatt-hours produced in such period. The credit shall 
    consist of an energy credit and a delivery service credit. 
    The energy credit shall be valued at the same price per 
    kilowatt-hour as the electric service provider would 
    charge for kilowatt-hour energy sales during that same 
    hourly period or time-of-use period. The delivery credit 
    shall be equal to the net kilowatt-hours produced in such 
    hourly period or time-of-use period times a credit that 
    reflects all kilowatt-hour based charges in the customer's 
    electric service rate, excluding energy charges. 
    (e) An electricity provider shall measure and charge or 
credit for the net electricity supplied to eligible customers 
whose electric service has not been declared competitive 
pursuant to Section 16-113 of this Act as of July 1, 2011 and 
whose electric delivery service is provided and measured on a 
kilowatt demand basis and electric supply service is not 
provided based on hourly pricing in the following manner:
        (1) If the amount of electricity used by the customer 
    during the billing period exceeds the amount of 
    electricity produced by the customer, then the electricity 
    provider shall charge the customer for the net electricity 
    supplied to and used by the customer as provided in 
    subsection (e-5) of this Section. The customer shall 
    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.
        (2) If the amount of electricity produced by a 
    customer during the billing period exceeds the amount of 
    electricity used by the customer during that billing 
    period, then the electricity provider supplying that 
    customer shall apply a 1:1 kilowatt-hour credit that 
    reflects the kilowatt-hour based charges in the customer's 
    electric service rate to a subsequent bill for service to 
    the customer for the net electricity supplied to the 
    electricity provider. The electricity provider shall 
    continue to carry over any excess kilowatt-hour credits 
    earned and apply those credits to subsequent billing 
    periods to offset any customer-generator consumption in 
    those billing periods until all credits are used or until 
    the end of the annualized period.
        (3) At the end of the year or annualized over the 
    period that service is supplied by means of net metering, 
    or in the event that the retail customer terminates 
    service with the electricity provider prior to the end of 
    the year or the annualized period, any remaining credits 
    in the customer's account shall expire.
    (e-5) An electricity provider shall provide electric 
service to eligible customers who utilize net metering at 
non-discriminatory rates that are identical, with respect to 
rate structure, retail rate components, and any monthly 
charges, to the rates that the customer would be charged if not 
a net metering customer. An electricity provider shall not 
charge net metering customers any fee or charge or require 
additional equipment, insurance, or any other requirements not 
specifically authorized by interconnection standards 
authorized by the Commission, unless the fee, charge, or other 
requirement would apply to other similarly situated customers 
who are not net metering customers. The customer will 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. Subsections (c) through (e) 
of this Section shall not be construed to prevent an 
arms-length agreement between an electricity provider and an 
eligible customer that sets forth different prices, terms, and 
conditions for the provision of net metering service, 
including, but not limited to, the provision of the 
appropriate metering equipment for non-residential customers.
    (f) Notwithstanding the requirements of subsections (c) 
through (e-5) of this Section, an electricity provider must 
require dual-channel metering for customers operating eligible 
renewable electrical generating facilities to whom the 
provisions of neither subsection (d), (d-5), nor (e) of this 
Section apply. In such cases, electricity charges and credits 
shall be determined as follows: 
        (1) The electricity provider shall assess and the 
    customer remains responsible for all taxes, fees, and 
    utility delivery charges that would otherwise be 
    applicable to the gross amount of kilowatt-hours supplied 
    to the eligible customer by the electricity provider.
        (2) Each month that service is supplied by means of 
    dual-channel metering, the electricity provider shall 
    compensate the eligible customer for any excess 
    kilowatt-hour 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 
    provider.
        (3) For all eligible net metering customers taking 
    service from an electricity provider under contracts or 
    tariffs employing hourly or time-of-use rates, any monthly 
    consumption of electricity shall be calculated according 
    to the terms of the contract or tariff to which the same 
    customer would be assigned to or be eligible for if the 
    customer was not a net metering customer. When those same 
    customer-generators are net generators during any discrete 
    hourly or time-of-use period, the net kilowatt-hours 
    produced shall be valued at the same price per 
    kilowatt-hour as the electric service provider would 
    charge for retail kilowatt-hour sales during that same 
    time-of-use period. 
    (g) For purposes of federal and State laws providing 
renewable energy credits or greenhouse gas credits, the 
eligible customer shall be treated as owning and having title 
to the renewable energy attributes, renewable energy credits, 
and greenhouse gas emission credits related to any electricity 
produced by the qualified generating unit. The electricity 
provider may not condition participation in a net metering 
program on the signing over of a customer's renewable energy 
credits; provided, however, this subsection (g) shall not be 
construed to prevent an arms-length agreement between an 
electricity provider and an eligible customer that sets forth 
the ownership or title of the credits.
    (h) Within 120 days after the effective date of this 
amendatory Act of the 95th General Assembly, the Commission 
shall establish standards for net metering and, if the 
Commission has not already acted on its own initiative, 
standards for the interconnection of eligible renewable 
generating equipment to the utility system. The 
interconnection standards shall address any procedural 
barriers, delays, and administrative costs associated with the 
interconnection of customer-generation while ensuring the 
safety and reliability of the units and the electric utility 
system. The Commission shall consider the Institute of 
Electrical and Electronics Engineers (IEEE) Standard 1547 and 
the issues of (i) reasonable and fair fees and costs, (ii) 
clear timelines for major milestones in the interconnection 
process, (iii) nondiscriminatory terms of agreement, and (iv) 
any best practices for interconnection of distributed 
generation.
    (h-5) Within 90 days after the effective date of this 
amendatory Act of the 102nd General Assembly, the Commission 
shall: 
        (1) establish an Interconnection Working Group. The 
    working group shall include representatives from electric 
    utilities, developers of renewable electric generating 
    facilities, other industries that regularly apply for 
    interconnection with the electric utilities, 
    representatives of distributed generation customers, the 
    Commission Staff, and such other stakeholders with a 
    substantial interest in the topics addressed by the 
    Interconnection Working Group. The Interconnection Working 
    Group shall address at least the following issues:
            (A) cost and best available technology for 
        interconnection and metering, including the 
        standardization and publication of standard costs;
            (B) transparency, accuracy and use of the 
        distribution interconnection queue and hosting 
        capacity maps;
            (C) distribution system upgrade cost avoidance 
        through use of advanced inverter functions;
            (D) predictability of the queue management process 
        and enforcement of timelines;
            (E) benefits and challenges associated with group 
        studies and cost sharing;
            (F) minimum requirements for application to the 
        interconnection process and throughout the 
        interconnection process to avoid queue clogging 
        behavior;
            (G) process and customer service for 
        interconnecting customers adopting distributed energy 
        resources, including energy storage;
            (H) options for metering distributed energy 
        resources, including energy storage;
            (I) interconnection of new technologies, including 
        smart inverters and energy storage;
            (J) collect, share, and examine data on Level 1 
        interconnection costs, including cost and type of 
        upgrades required for interconnection, and use this 
        data to inform the final standardized cost of Level 1 
        interconnection; and
            (K) such other technical, policy, and tariff 
        issues related to and affecting interconnection 
        performance and customer service as determined by the 
        Interconnection Working Group. 
        The Commission may create subcommittees of the 
    Interconnection Working Group to focus on specific issues 
    of importance, as appropriate. The Interconnection Working 
    Group shall report to the Commission on recommended 
    improvements to interconnection rules and tariffs and 
    policies as determined by the Interconnection Working 
    Group at least every 6 months. Such reports shall include 
    consensus recommendations of the Interconnection Working 
    Group and, if applicable, additional recommendations for 
    which consensus was not reached. The Commission shall use 
    the report from the Interconnection Working Group to 
    determine whether processes should be commenced to 
    formally codify or implement the recommendations;
        (2) create or contract for an Ombudsman to resolve 
    interconnection disputes through non-binding arbitration. 
    The Ombudsman may be paid in full or in part through fees 
    levied on the initiators of the dispute; and
        (3) determine a single standardized cost for Level 1 
    interconnections, which shall not exceed $200. 
    (h-7) After an electric distribution company determines 
that an interconnection request from an applicant for a public 
school project has been completed, the electric distribution 
company must immediately begin all evaluations, reviews, and 
screenings of the interconnection request. Projects pending in 
the interconnection queue on the same feeder and substation as 
an interconnection request for a public school project shall 
be paused until the public school project has received a fully 
executed interconnection agreement, regardless of queue 
position assignments under 83 Ill. Adm. Code 466, to ensure 
that available feeder and substation capacity is reserved for 
the public school project. If the electric distribution 
company determines that there is no requirement for the 
construction of facilities by the electric distribution 
company on its own system, the electric distribution company 
shall provide the applicant with an interconnection agreement, 
as provided under 83 Ill. Adm. Code 466. If the electric 
distribution company determines that the public school project 
has a nameplate capacity that is less than 500 kilowatts (kW) 
with no colocated distribution resources and determines that 
no system modifications are required, the electric 
distribution company must complete all required 
interconnection-related evaluations, reviews, and screenings 
within 30 days after making such a determination and issue an 
interconnection agreement as soon as possible after the 
evaluations, reviews, and screenings are completed. If the 
electric distribution company determines that only minor 
system modifications are required, the electric distribution 
company shall provide the applicant with an interconnection 
agreement within 60 days after the applicant elects to 
continue the application and pays any necessary fees or costs 
required under 83 Ill. Adm. Code 466. If the electric 
distribution company determines that more than minor 
modifications are required, the electric distribution company 
shall provide the applicant with an interconnection agreement 
within 90 days after the applicant elects to continue the 
application and pays any necessary fees or costs required 
under 83 Ill. Adm. Code 466.
    For all net metering credits earned on a monthly basis or 
other credits owed to a customer who has elected to install a 
distributed renewable generation project on public school 
land, all credits intended for the benefit of the consumer 
must be credited by the public utility or retail energy 
supplier within 90 days after the public utility or retail 
energy supplier determines that the criteria for the credit 
have been met. 
    As soon as practicable after the effective date of this 
amendatory Act of the 104th General Assembly, the Commission 
shall adopt revisions to its standards for the interconnection 
of eligible renewable generating equipment and net metering 
credit rules to conform with the requirements of this 
amendatory Act of the 104th General Assembly.
    As used in this subsection:
    "Electric distribution company" means any electric utility 
subject to the jurisdiction of the Commission serving more 
than 100,000 customers in this State.
    "Public schools" has the meaning set forth in Section 1-3 
of the School Code and includes public institutions of higher 
education, as defined in the Board of Higher Education Act.
     "Public school project" means a renewable electrical 
generating facility that is located on the premises of a 
public school on the customer's side of the billing meter, is 
intended primarily to offset the customer's current or future 
electrical requirements, and is eligible only for renewable 
energy credits apportioned to distributed renewable generation 
devices installed on public school land under subparagraph 
(iv) of paragraph (K) of subsection (c) of Section 1-75 of the 
Illinois Power Agency Act. 
    (i) All electricity providers shall begin to offer net 
metering no later than April 1, 2008.
    (j) An electricity provider shall provide net metering to 
eligible customers according to subsections (d), (d-5), and 
(e). Eligible renewable electrical generating facilities for 
which eligible customers registered for net metering before 
January 1, 2025 shall continue to receive net metering 
services according to subsections (d), (d-5), and (e) of this 
Section for the lifetime of the system, regardless of whether 
those retail customers change electricity providers or whether 
the retail customer benefiting from the system changes. On and 
after January 1, 2025, any eligible customer that applies for 
net metering and previously would have qualified under 
subsections (d), (d-5), or (e) shall only be eligible for net 
metering as described in subsection (n). 
    (k) Each electricity provider shall maintain records and 
report annually to the Commission the total number of net 
metering customers served by the provider, as well as the 
type, capacity, and energy sources of the generating systems 
used by the net metering customers. Nothing in this Section 
shall limit the ability of an electricity provider to request 
the redaction of information deemed by the Commission to be 
confidential business information.
    (l)(1) Notwithstanding the definition of "eligible 
customer" in item (ii) of subsection (b) of this Section, each 
electricity provider shall allow net metering as set forth in 
this subsection (l) and for the following projects, provided 
that only electric utilities serving more than 200,000 
customers as of January 1, 2021 shall provide net metering for 
projects that are eligible for subparagraph (C) of this 
paragraph (1) and have energized after the effective date of 
this amendatory Act of the 102nd General Assembly: 
        (A) properties owned or leased by multiple customers 
    that contribute to the operation of an eligible renewable 
    electrical generating facility through an ownership or 
    leasehold interest of at least 200 watts in such facility, 
    such as a community-owned wind project, a community-owned 
    biomass project, a community-owned solar project, or a 
    community methane digester processing livestock waste from 
    multiple sources, provided that the facility is also 
    located within the utility's service territory; 
        (B) individual units, apartments, or properties 
    located in a single building that are owned or leased by 
    multiple customers and collectively served by a common 
    eligible renewable electrical generating facility, such as 
    an office or apartment building, a shopping center or 
    strip mall served by photovoltaic panels on the roof; and 
        (C) subscriptions to community renewable generation 
    projects, including community renewable generation 
    projects on the customer's side of the billing meter of a 
    host facility and partially used for the customer's own 
    load.
    In addition, the nameplate capacity of the eligible 
renewable electric generating facility that serves the demand 
of the properties, units, or apartments identified in 
paragraphs (1) and (2) of this subsection (l) shall not exceed 
5,000 kilowatts in nameplate capacity in total. Any eligible 
renewable electrical generating facility or community 
renewable generation project that is powered by photovoltaic 
electric energy and installed after the effective date of this 
amendatory Act of the 99th General Assembly must be installed 
by a qualified person in compliance with the requirements of 
Section 16-128A of the Public Utilities Act and any rules or 
regulations adopted thereunder.
    (2) Notwithstanding anything to the contrary, an 
electricity provider shall provide credits for the electricity 
produced by the projects described in paragraph (1) of this 
subsection (l). The electricity provider shall provide credits 
that include at least energy supply, capacity, transmission, 
and, if applicable, the purchased energy adjustment on the 
subscriber's monthly bill equal to the subscriber's share of 
the production of electricity from the project, as determined 
by paragraph (3) of this subsection (l). For customers with 
transmission or capacity charges not charged on a 
kilowatt-hour basis, the electricity provider shall prepare a 
reasonable approximation of the kilowatt-hour equivalent value 
and provide that value as a monetary credit. The electricity 
provider shall submit these approximation methodologies to the 
Commission for review, modification, and approval. 
Notwithstanding anything to the contrary, customers on payment 
plans or participating in budget billing programs shall have 
credits applied on a monthly basis. 
    (3) Notwithstanding anything to the contrary and 
regardless of whether a subscriber to an eligible community 
renewable generation project receives power and energy service 
from the electric utility or an alternative retail electric 
supplier, for projects eligible under paragraph (C) of 
subparagraph (1) of this subsection (l), electric utilities 
serving more than 200,000 customers as of January 1, 2021 
shall provide the monetary credits to a subscriber's 
subsequent bill for the electricity produced by community 
renewable generation projects. The electric utility shall 
provide monetary credits to a subscriber's subsequent bill at 
the utility's total price to compare equal to the subscriber's 
share of the production of electricity from the project, as 
determined by paragraph (5) of this subsection (l). For the 
purposes of this subsection, "total price to compare" means 
the rate or rates published by the Illinois Commerce 
Commission for energy supply for eligible customers receiving 
supply service from the electric utility, and shall include 
energy, capacity, transmission, and the purchased energy 
adjustment. Notwithstanding anything to the contrary, 
customers on payment plans or participating in budget billing 
programs shall have credits applied on a monthly basis. Any 
applicable credit or reduction in load obligation from the 
production of the community renewable generating projects 
receiving a credit under this subsection shall be credited to 
the electric utility to offset the cost of providing the 
credit. To the extent that the credit or load obligation 
reduction does not completely offset the cost of providing the 
credit to subscribers of community renewable generation 
projects as described in this subsection, the electric utility 
may recover the remaining costs through its Multi-Year Rate 
Plan. All electric utilities serving 200,000 or fewer 
customers as of January 1, 2021 shall only provide the 
monetary credits to a subscriber's subsequent bill for the 
electricity produced by community renewable generation 
projects if the subscriber receives power and energy service 
from the electric utility. Alternative retail electric 
suppliers providing power and energy service to a subscriber 
located within the service territory of an electric utility 
not subject to Sections 16-108.18 and 16-118 shall provide the 
monetary credits to the subscriber's subsequent bill for the 
electricity produced by community renewable generation 
projects.
    (4) If requested by the owner or operator of a community 
renewable generating project, an electric utility serving more 
than 200,000 customers as of January 1, 2021 shall enter into a 
net crediting agreement with the owner or operator to include 
a subscriber's subscription fee on the subscriber's monthly 
electric bill and provide the subscriber with a net credit 
equivalent to the total bill credit value for that generation 
period minus the subscription fee, provided the subscription 
fee is structured as a fixed percentage of bill credit value. 
The net crediting agreement shall set forth payment terms from 
the electric utility to the owner or operator of the community 
renewable generating project, and the electric utility may 
charge a net crediting fee to the owner or operator of a 
community renewable generating project that may not exceed 2% 
of the bill credit value. Notwithstanding anything to the 
contrary, an electric utility serving 200,000 customers or 
fewer as of January 1, 2021 shall not be obligated to enter 
into a net crediting agreement with the owner or operator of a 
community renewable generating project. 
    (5) For the purposes of facilitating net metering, the 
owner or operator of the eligible renewable electrical 
generating facility or community renewable generation project 
shall be responsible for determining the amount of the credit 
that each customer or subscriber participating in a project 
under this subsection (l) is to receive in the following 
manner: 
        (A) The owner or operator shall, on a monthly basis, 
    provide to the electric utility the kilowatthours of 
    generation attributable to each of the utility's retail 
    customers and subscribers participating in projects under 
    this subsection (l) in accordance with the customer's or 
    subscriber's share of the eligible renewable electric 
    generating facility's or community renewable generation 
    project's output of power and energy for such month. The 
    owner or operator shall electronically transmit such 
    calculations and associated documentation to the electric 
    utility, in a format or method set forth in the applicable 
    tariff, on a monthly basis so that the electric utility 
    can reflect the monetary credits on customers' and 
    subscribers' electric utility bills. The electric utility 
    shall be permitted to revise its tariffs to implement the 
    provisions of this amendatory Act of the 102nd General 
    Assembly. The owner or operator shall separately provide 
    the electric utility with the documentation detailing the 
    calculations supporting the credit in the manner set forth 
    in the applicable tariff. 
        (B) For those participating customers and subscribers 
    who receive their energy supply from an alternative retail 
    electric supplier, the electric utility shall remit to the 
    applicable alternative retail electric supplier the 
    information provided under subparagraph (A) of this 
    paragraph (3) for such customers and subscribers in a 
    manner set forth in such alternative retail electric 
    supplier's net metering program, or as otherwise agreed 
    between the utility and the alternative retail electric 
    supplier. The alternative retail electric supplier shall 
    then submit to the utility the amount of the charges for 
    power and energy to be applied to such customers and 
    subscribers, including the amount of the credit associated 
    with net metering. 
        (C) A participating customer or subscriber may provide 
    authorization as required by applicable law that directs 
    the electric utility to submit information to the owner or 
    operator of the eligible renewable electrical generating 
    facility or community renewable generation project to 
    which the customer or subscriber has an ownership or 
    leasehold interest or a subscription. Such information 
    shall be limited to the components of the net metering 
    credit calculated under this subsection (l), including the 
    bill credit rate, total kilowatthours, and total monetary 
    credit value applied to the customer's or subscriber's 
    bill for the monthly billing period. 
    (l-5) Within 90 days after the effective date of this 
amendatory Act of the 102nd General Assembly, each electric 
utility subject to this Section shall file a tariff or tariffs 
to implement the provisions of subsection (l) of this Section, 
which shall, consistent with the provisions of subsection (l), 
describe the terms and conditions under which owners or 
operators of qualifying properties, units, or apartments may 
participate in net metering. The Commission shall approve, or 
approve with modification, the tariff within 120 days after 
the effective date of this amendatory Act of the 102nd General 
Assembly. 
    (m) Nothing in this Section shall affect the right of an 
electricity provider to continue to provide, or the right of a 
retail customer to continue to receive service pursuant to a 
contract for electric service between the electricity provider 
and the retail customer in accordance with the prices, terms, 
and conditions provided for in that contract. Either the 
electricity provider or the customer may require compliance 
with the prices, terms, and conditions of the contract. 
    (n) On and after January 1, 2025, the net metering 
services described in subsections (d), (d-5), and (e) of this 
Section shall no longer be offered, except as to those 
eligible renewable electrical generating facilities for which 
retail customers are receiving net metering service under 
these subsections at the time the net metering services under 
those subsections are no longer offered; those systems shall 
continue to receive net metering services described in 
subsections (d), (d-5), and (e) of this Section for the 
lifetime of the system, regardless of if those retail 
customers change electricity providers or whether the retail 
customer benefiting from the system changes. The electric 
utility serving more than 200,000 customers as of January 1, 
2021 is responsible for ensuring the billing credits continue 
without lapse for the lifetime of systems, as required in 
subsection (o). Those retail customers that begin taking net 
metering service after the date that net metering services are 
no longer offered under such subsections shall be subject to 
the provisions set forth in the following paragraphs (1) 
through (3) of this subsection (n):
        (1) An electricity provider shall charge or credit for 
    the net electricity supplied to eligible customers or 
    provided by eligible customers whose electric supply 
    service is not provided based on hourly pricing in the 
    following manner:
            (A) If the amount of electricity used by the 
        customer during the monthly billing period exceeds the 
        amount of electricity produced by the customer, then 
        the electricity provider shall charge the customer for 
        the net kilowatt-hour based electricity charges 
        reflected in the customer's electric service rate 
        supplied to and used by the customer as provided in 
        paragraph (3) of this subsection (n).
            (B) If the amount of electricity produced by a 
        customer during the monthly billing period exceeds the 
        amount of electricity used by the customer during that 
        billing period, then the electricity provider 
        supplying that customer shall apply a 1:1 
        kilowatt-hour energy or monetary credit kilowatt-hour 
        supply charges to the customer's subsequent bill. The 
        customer shall choose between 1:1 kilowatt-hour or 
        monetary credit at the time of application. For the 
        purposes of this subsection, "kilowatt-hour supply 
        charges" means the kilowatt-hour equivalent values for 
        energy, capacity, transmission, and the purchased 
        energy adjustment, if applicable. Notwithstanding 
        anything to the contrary, customers on payment plans 
        or participating in budget billing programs shall have 
        credits applied on a monthly basis. The electricity 
        provider shall continue to carry over any excess 
        kilowatt-hour or monetary energy credits earned and 
        apply those credits to subsequent billing periods. For 
        customers with transmission or capacity charges not 
        charged on a kilowatt-hour basis, the electricity 
        provider shall prepare a reasonable approximation of 
        the kilowatt-hour equivalent value and provide that 
        value as a monetary credit. The electricity provider 
        shall submit these approximation methodologies to the 
        Commission for review, modification, and approval.
            (C) (Blank).
        (2) An electricity provider shall charge or credit for 
    the net electricity supplied to eligible customers or 
    provided by eligible customers whose electric supply 
    service is provided based on hourly pricing in the 
    following manner:
            (A) If the amount of electricity used by the 
        customer during any hourly period exceeds the amount 
        of electricity produced by the customer, then the 
        electricity provider shall charge the customer for the 
        net electricity supplied to and used by the customer 
        as provided in paragraph (3) of this subsection (n).
            (B) If the amount of electricity produced by a 
        customer during any hourly period exceeds the amount 
        of electricity used by the customer during that hourly 
        period, the energy provider shall calculate an energy 
        credit for the net kilowatt-hours produced in such 
        period, and shall apply that credit as a monetary 
        credit to the customer's subsequent bill. The value of 
        the energy credit shall be calculated using the same 
        price per kilowatt-hour as the electric service 
        provider would charge for kilowatt-hour energy sales 
        during that same hourly period and shall also include 
        values for capacity and transmission. For customers 
        with transmission or capacity charges not charged on a 
        kilowatt-hour basis, the electricity provider shall 
        prepare a reasonable approximation of the 
        kilowatt-hour equivalent value and provide that value 
        as a monetary credit. The electricity provider shall 
        submit these approximation methodologies to the 
        Commission for review, modification, and approval. 
        Notwithstanding anything to the contrary, customers on 
        payment plans or participating in budget billing 
        programs shall have credits applied on a monthly 
        basis. 
        (3) An electricity provider shall provide electric 
    service to eligible customers who utilize net metering at 
    non-discriminatory rates that are identical, with respect 
    to rate structure, retail rate components, and any monthly 
    charges, to the rates that the customer would be charged 
    if not a net metering customer. An electricity provider 
    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 for if the customer was not a net 
    metering customer. An electricity provider shall not 
    charge net metering customers any fee or charge or require 
    additional equipment, insurance, or any other requirements 
    not specifically authorized by interconnection standards 
    authorized by the Commission, unless the fee, charge, or 
    other requirement would apply to other similarly situated 
    customers who are not net metering customers. The customer 
    remains responsible for the gross amount of delivery 
    services charges, supply-related charges that are kilowatt 
    based, and all taxes and fees related to such charges. The 
    customer also remains responsible for all taxes and fees 
    that would otherwise be applicable to the net amount of 
    electricity used by the customer. Paragraphs (1) and (2) 
    of this subsection (n) shall not be construed to prevent 
    an arms-length agreement between an electricity provider 
    and an eligible customer that sets forth different prices, 
    terms, and conditions for the provision of net metering 
    service, including, but not limited to, the provision of 
    the appropriate metering equipment for non-residential 
    customers. Nothing in this paragraph (3) shall be 
    interpreted to mandate that a utility that is only 
    required to provide delivery services to a given customer 
    must also sell electricity to such customer. 
    (o) Within 90 days after the effective date of this 
amendatory Act of the 102nd General Assembly, each electric 
utility subject to this Section shall file a tariff, which 
shall, consistent with the provisions of this Section, propose 
the terms and conditions under which a customer may 
participate in net metering. The tariff for electric utilities 
serving more than 200,000 customers as of January 1, 2021 
shall also provide a streamlined and transparent bill 
crediting system for net metering to be managed by the 
electric utilities. The terms and conditions shall include, 
but are not limited to, that an electric utility shall manage 
and maintain billing of net metering credits and charges 
regardless of if the eligible customer takes net metering 
under an electric utility or alternative retail electric 
supplier. The electric utility serving more than 200,000 
customers as of January 1, 2021 shall process and approve all 
net metering applications, even if an eligible customer is 
served by an alternative retail electric supplier; and the 
utility shall forward application approval to the appropriate 
alternative retail electric supplier. Eligibility for net 
metering shall remain with the owner of the utility billing 
address such that, if an eligible renewable electrical 
generating facility changes ownership, the net metering 
eligibility transfers to the new owner. The electric utility 
serving more than 200,000 customers as of January 1, 2021 
shall manage net metering billing for eligible customers to 
ensure full crediting occurs on electricity bills, including, 
but not limited to, ensuring net metering crediting begins 
upon commercial operation date, net metering billing transfers 
immediately if an eligible customer switches from an electric 
utility to alternative retail electric supplier or vice versa, 
and net metering billing transfers between ownership of a 
valid billing address. All transfers referenced in the 
preceding sentence shall include transfer of all banked 
credits. All electric utilities serving 200,000 or fewer 
customers as of January 1, 2021 shall manage net metering 
billing for eligible customers receiving power and energy 
service from the electric utility to ensure full crediting 
occurs on electricity bills, ensuring net metering crediting 
begins upon commercial operation date, net metering billing 
transfers immediately if an eligible customer switches from an 
electric utility to alternative retail electric supplier or 
vice versa, and net metering billing transfers between 
ownership of a valid billing address. Alternative retail 
electric suppliers providing power and energy service to 
eligible customers located within the service territory of an 
electric utility serving 200,000 or fewer customers as of 
January 1, 2021 shall manage net metering billing for eligible 
customers to ensure full crediting occurs on electricity 
bills, including, but not limited to, ensuring net metering 
crediting begins upon commercial operation date, net metering 
billing transfers immediately if an eligible customer switches 
from an electric utility to alternative retail electric 
supplier or vice versa, and net metering billing transfers 
between ownership of a valid billing address. 
(Source: P.A. 102-662, eff. 9-15-21.)
 
    (Text of Section after amendment by P.A. 104-458)
    Sec. 16-107.5. Net electricity metering.
    (a) The General Assembly finds and declares that a program 
to provide net electricity metering, as defined in this 
Section, for eligible customers can encourage private 
investment in renewable energy resources, stimulate economic 
growth, enhance the continued diversification of Illinois' 
energy resource mix, and protect the Illinois environment. 
Further, to achieve the goals of this Act that robust options 
for customer-site distributed generation and storage continue 
to thrive in Illinois, the General Assembly finds that a 
predictable transition must be ensured for customers between 
full net metering at the retail electricity rate to the 
distribution generation rebate described in Section 16-107.6. 
    (b) As used in this Section: 
        (i) "Community renewable generation project" shall 
    have the meaning set forth in Section 1-10 of the Illinois 
    Power Agency Act. 
        (ii) "Eligible customer" means a retail customer that 
    owns, hosts, or operates, including any third-party owned 
    systems, a solar, wind, or other eligible renewable 
    electrical generating facility or an eligible storage 
    device that is located on the customer's premises or 
    customer's side of the billing meter and is intended 
    primarily to offset the customer's own current or future 
    electrical requirements. 
        (iii) "Electricity provider" means an electric utility 
    or alternative retail electric supplier. 
        (iv) "Eligible renewable electrical generating 
    facility" means a generator, which may include the 
    colocation of an energy storage system, that is 
    interconnected under rules adopted by the Commission and 
    is powered by solar electric energy, wind, dedicated crops 
    grown for electricity generation, agricultural residues, 
    untreated and unadulterated wood waste, livestock manure, 
    anaerobic digestion of livestock or food processing waste, 
    fuel cells or microturbines powered by renewable fuels, or 
    hydroelectric energy. 
        (v) "Net electricity metering" (or "net metering") 
    means the measurement, during the billing period 
    applicable to an eligible customer, of the net amount of 
    electricity supplied by an electricity provider to the 
    customer or provided to the electricity provider by the 
    customer or subscriber. 
        (vi) "Subscriber" shall have the meaning as set forth 
    in Section 1-10 of the Illinois Power Agency Act. 
        (vii) "Subscription" shall have the meaning set forth 
    in Section 1-10 of the Illinois Power Agency Act. 
        (viii) "Energy storage system" means commercially 
    available technology that is capable of absorbing energy 
    and storing it for a period of time for use at a later 
    time, including, but not limited to, electrochemical, 
    thermal, and electromechanical technologies, and may be 
    interconnected behind the customer's meter or 
    interconnected behind its own meter. 
        (ix) "Future electrical requirements" means modeled 
    electrical requirements upon occupation of a new or vacant 
    property, and other reasonable expectations of future 
    electrical use, as well as, for occupied properties, a 
    reasonable approximation of the annual load of 2 electric 
    vehicles and, for non-electric heating customers, a 
    reasonable approximation of the incremental electric load 
    associated with fuel switching. The approximations shall 
    be applied to the appropriate net metering tariff and do 
    not need to be unique to each individual eligible 
    customer. The utility shall submit these approximations to 
    the Commission for review, modification, and approval.
        (x) "Vehicle storage system" means a vehicle that when 
    connected to an electric utility's distribution system is 
    capable of being an energy storage system, as defined in 
    Section 16-107.6. 
    (c) A net metering facility shall be equipped with 
metering equipment that can measure the flow of electricity in 
both directions at the same rate.
        (1) For eligible customers whose electric service has 
    not been declared competitive pursuant to Section 16-113 
    of this Act as of July 1, 2011 and whose electric delivery 
    service is provided and measured on a kilowatt-hour basis 
    and electric supply service is not provided based on 
    hourly pricing, this shall typically be accomplished 
    through use of a single, bi-directional meter. If the 
    eligible customer's existing electric revenue meter does 
    not meet this requirement, the electricity provider shall 
    arrange for the local electric utility or a meter service 
    provider to install and maintain a new revenue meter at 
    the electricity provider's expense, which may be the smart 
    meter described by subsection (b) of Section 16-108.5 of 
    this Act.
        (2) For eligible customers whose electric service has 
    not been declared competitive pursuant to Section 16-113 
    of this Act as of July 1, 2011 and whose electric delivery 
    service is provided and measured on a kilowatt demand 
    basis and electric supply service is not provided based on 
    hourly pricing, this shall typically be accomplished 
    through use of a dual channel meter capable of measuring 
    the flow of electricity both into and out of the 
    customer's facility at the same rate and ratio. If such 
    customer's existing electric revenue meter does not meet 
    this requirement, then the electricity provider shall 
    arrange for the local electric utility or a meter service 
    provider to install and maintain a new revenue meter at 
    the electricity provider's expense, which may be the smart 
    meter described by subsection (b) of Section 16-108.5 of 
    this Act.
        (3) For all other eligible customers, until such time 
    as the local electric utility installs a smart meter, as 
    described by subsection (b) of Section 16-108.5 of this 
    Act, the electricity provider may arrange for the local 
    electric utility or a meter service provider to install 
    and maintain metering equipment capable of measuring the 
    flow of electricity both into and out of the customer's 
    facility at the same rate and ratio, typically through the 
    use of a dual channel meter. If the eligible customer's 
    existing electric revenue meter does not meet this 
    requirement, then the costs of installing such equipment 
    shall be paid for by the customer. 
    (d) An electricity provider shall measure and charge or 
credit for the net electricity supplied to eligible customers 
or provided by eligible customers whose electric service has 
not been declared competitive pursuant to Section 16-113 of 
this Act as of July 1, 2011 and whose electric delivery service 
is provided and measured on a kilowatt-hour basis and electric 
supply service is not provided based on hourly pricing in the 
following manner:
        (1) If the amount of electricity used by the customer 
    during the billing period exceeds the amount of 
    electricity produced by the customer, the electricity 
    provider shall charge the customer for the net electricity 
    supplied to and used by the customer as provided in 
    subsection (e-5) of this Section.
        (2) If the amount of electricity produced by a 
    customer during the billing period exceeds the amount of 
    electricity used by the customer during that billing 
    period, the electricity provider supplying that customer 
    shall apply a 1:1 kilowatt-hour credit to a subsequent 
    bill for service to the customer for the net electricity 
    supplied to the electricity provider. The electricity 
    provider shall continue to carry over any excess 
    kilowatt-hour credits earned and apply those credits to 
    subsequent billing periods to offset any 
    customer-generator consumption in those billing periods 
    until all credits are used or until the end of the 
    annualized period.
        (3) At the end of the year or annualized over the 
    period that service is supplied by means of net metering, 
    or in the event that the retail customer terminates 
    service with the electricity provider prior to the end of 
    the year or the annualized period, any remaining credits 
    in the customer's account shall expire.
    (d-5) An electricity provider shall measure and charge or 
credit for the net electricity supplied to eligible customers 
or provided by eligible customers whose electric service has 
not been declared competitive pursuant to Section 16-113 of 
this Act as of July 1, 2011 and whose electric delivery service 
is provided and measured on a kilowatt-hour basis and electric 
supply service is provided based on hourly pricing or 
time-of-use rates in the following manner:
        (1) If the amount of electricity used by the customer 
    during any hourly period or time-of-use period exceeds the 
    amount of electricity produced by the customer, the 
    electricity provider 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 to or be eligible for if the 
    customer was not a net metering customer.
        (2) If the amount of electricity produced by a 
    customer during any hourly period or time-of-use period 
    exceeds the amount of electricity used by the customer 
    during that hourly period or time-of-use period, the 
    energy provider shall apply a credit for the net 
    kilowatt-hours produced in such period. The credit shall 
    consist of an energy credit and a delivery service credit. 
    The energy credit shall be valued at the same price per 
    kilowatt-hour as the electric service provider would 
    charge for kilowatt-hour energy sales during that same 
    hourly period or time-of-use period. The delivery credit 
    shall be equal to the net kilowatt-hours produced in such 
    hourly period or time-of-use period times a credit that 
    reflects all kilowatt-hour based charges in the customer's 
    electric service rate, excluding energy charges. 
    (e) An electricity provider shall measure and charge or 
credit for the net electricity supplied to eligible customers 
whose electric service has not been declared competitive 
pursuant to Section 16-113 of this Act as of July 1, 2011 and 
whose electric delivery service is provided and measured on a 
kilowatt demand basis and electric supply service is not 
provided based on hourly pricing in the following manner:
        (1) If the amount of electricity used by the customer 
    during the billing period exceeds the amount of 
    electricity produced by the customer, then the electricity 
    provider shall charge the customer for the net electricity 
    supplied to and used by the customer as provided in 
    subsection (e-5) of this Section. The customer shall 
    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.
        (2) If the amount of electricity produced by a 
    customer during the billing period exceeds the amount of 
    electricity used by the customer during that billing 
    period, then the electricity provider supplying that 
    customer shall apply a 1:1 kilowatt-hour credit that 
    reflects the kilowatt-hour based charges in the customer's 
    electric service rate to a subsequent bill for service to 
    the customer for the net electricity supplied to the 
    electricity provider. The electricity provider shall 
    continue to carry over any excess kilowatt-hour credits 
    earned and apply those credits to subsequent billing 
    periods to offset any customer-generator consumption in 
    those billing periods until all credits are used or until 
    the end of the annualized period.
        (3) At the end of the year or annualized over the 
    period that service is supplied by means of net metering, 
    or in the event that the retail customer terminates 
    service with the electricity provider prior to the end of 
    the year or the annualized period, any remaining credits 
    in the customer's account shall expire.
    (e-5) An electricity provider shall provide electric 
service to eligible customers who utilize net metering at 
non-discriminatory rates that are identical, with respect to 
rate structure, retail rate components, and any monthly 
charges, to the rates that the customer would be charged if not 
a net metering customer. An electricity provider shall not 
charge net metering customers any fee or charge or require 
additional equipment, insurance, or any other requirements not 
specifically authorized by interconnection standards 
authorized by the Commission, unless the fee, charge, or other 
requirement would apply to other similarly situated customers 
who are not net metering customers. The customer will 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. Subsections (c) through (e) 
of this Section shall not be construed to prevent an 
arms-length agreement between an electricity provider and an 
eligible customer that sets forth different prices, terms, and 
conditions for the provision of net metering service, 
including, but not limited to, the provision of the 
appropriate metering equipment for non-residential customers.
    (f) Notwithstanding the requirements of subsections (c) 
through (e-5) of this Section, an electricity provider must 
require dual-channel metering for customers operating eligible 
renewable electrical generating facilities to whom the 
provisions of neither subsection (d), (d-5), nor (e) of this 
Section apply. In such cases, electricity charges and credits 
shall be determined as follows: 
        (1) The electricity provider shall assess and the 
    customer remains responsible for all taxes, fees, and 
    utility delivery charges that would otherwise be 
    applicable to the gross amount of kilowatt-hours supplied 
    to the eligible customer by the electricity provider.
        (2) Each month that service is supplied by means of 
    dual-channel metering, the electricity provider shall 
    compensate the eligible customer for any excess 
    kilowatt-hour 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 
    provider.
        (3) For all eligible net metering customers taking 
    service from an electricity provider under contracts or 
    tariffs employing hourly or time-of-use rates, any monthly 
    consumption of electricity shall be calculated according 
    to the terms of the contract or tariff to which the same 
    customer would be assigned to or be eligible for if the 
    customer was not a net metering customer. When those same 
    customer-generators are net generators during any discrete 
    hourly or time-of-use period, the net kilowatt-hours 
    produced shall be valued at the same price per 
    kilowatt-hour as the electric service provider would 
    charge for retail kilowatt-hour sales during that same 
    time-of-use period. 
    (g) For purposes of federal and State laws providing 
renewable energy credits or greenhouse gas credits, the 
eligible customer shall be treated as owning and having title 
to the renewable energy attributes, renewable energy credits, 
and greenhouse gas emission credits related to any electricity 
produced by the qualified generating unit. The electricity 
provider may not condition participation in a net metering 
program on the signing over of a customer's renewable energy 
credits; provided, however, this subsection (g) shall not be 
construed to prevent an arms-length agreement between an 
electricity provider and an eligible customer that sets forth 
the ownership or title of the credits.
    (h) Within 120 days after the effective date of this 
amendatory Act of the 95th General Assembly, the Commission 
shall establish standards for net metering and, if the 
Commission has not already acted on its own initiative, 
standards for the interconnection of eligible renewable 
generating equipment to the utility system. The 
interconnection standards shall address any procedural 
barriers, delays, and administrative costs associated with the 
interconnection of customer-generation while ensuring the 
safety and reliability of the units and the electric utility 
system. The Commission shall consider the Institute of 
Electrical and Electronics Engineers (IEEE) Standard 1547 and 
the issues of (i) reasonable and fair fees and costs, (ii) 
clear timelines for major milestones in the interconnection 
process, (iii) nondiscriminatory terms of agreement, and (iv) 
any best practices for interconnection of distributed 
generation.
    (h-7) After an electric distribution company determines 
that an interconnection request from an applicant for a public 
school project has been completed, the electric distribution 
company must immediately begin all evaluations, reviews, and 
screenings of the interconnection request. Projects pending in 
the interconnection queue on the same feeder and substation as 
an interconnection request for a public school project shall 
be paused until the public school project has received a fully 
executed interconnection agreement, regardless of queue 
position assignments under 83 Ill. Adm. Code 466, to ensure 
that available feeder and substation capacity is reserved for 
the public school project. If the electric distribution 
company determines that there is no requirement for the 
construction of facilities by the electric distribution 
company on its own system, the electric distribution company 
shall provide the applicant with an interconnection agreement, 
as provided under 83 Ill. Adm. Code 466. If the electric 
distribution company determines that the public school project 
has a nameplate capacity that is less than 500 kilowatts (kW) 
with no colocated distribution resources and determines that 
no system modifications are required, the electric 
distribution company must complete all required 
interconnection-related evaluations, reviews, and screenings 
within 30 days after making such a determination and issue an 
interconnection agreement as soon as possible after the 
evaluations, reviews, and screenings are completed. If the 
electric distribution company determines that only minor 
system modifications are required, the electric distribution 
company shall provide the applicant with an interconnection 
agreement within 60 days after the applicant elects to 
continue the application and pays any necessary fees or costs 
required under 83 Ill. Adm. Code 466. If the electric 
distribution company determines that more than minor 
modifications are required, the electric distribution company 
shall provide the applicant with an interconnection agreement 
within 90 days after the applicant elects to continue the 
application and pays any necessary fees or costs required 
under 83 Ill. Adm. Code 466.
    For all net metering credits earned on a monthly basis or 
other credits owed to a customer who has elected to install a 
distributed renewable generation project on public school 
land, all credits intended for the benefit of the consumer 
must be credited by the public utility or retail energy 
supplier within 90 days after the public utility or retail 
energy supplier determines that the criteria for the credit 
have been met. 
    As soon as practicable after the effective date of this 
amendatory Act of the 104th General Assembly, the Commission 
shall adopt revisions to its standards for the interconnection 
of eligible renewable generating equipment and net metering 
credit rules to conform with the requirements of this 
amendatory Act of the 104th General Assembly.
    As used in this subsection:
    "Electric distribution company" means any electric utility 
subject to the jurisdiction of the Commission serving more 
than 100,000 customers in this State.
    "Public schools" has the meaning set forth in Section 1-3 
of the School Code and includes public institutions of higher 
education, as defined in the Board of Higher Education Act.
    "Public school project" means a renewable electrical 
generating facility that is located on the premises of a 
public school on the customer's side of the billing meter, is 
intended primarily to offset the customer's current or future 
electrical requirements, and is eligible only for renewable 
energy credits apportioned to distributed renewable generation 
devices installed on public school land under subparagraph 
(iv) of paragraph (K) of subsection (c) of Section 1-75 of the 
Illinois Power Agency Act. 
    (i) All electricity providers shall begin to offer net 
metering no later than April 1, 2008.
    (j) An electricity provider shall provide net metering to 
eligible customers according to subsections (d), (d-5), and 
(e). Eligible renewable electrical generating facilities for 
which eligible customers registered for net metering before 
January 1, 2025 shall continue to receive net metering 
services according to subsections (d), (d-5), and (e) of this 
Section for the lifetime of the system, regardless of whether 
those retail customers change electricity providers or whether 
the retail customer benefiting from the system changes. On and 
after January 1, 2025, any eligible customer that applies for 
net metering and previously would have qualified under 
subsections (d), (d-5), or (e) shall only be eligible for net 
metering as described in subsection (n). 
    (k) Each electricity provider shall maintain records and 
report annually to the Commission the total number of net 
metering customers served by the provider, as well as the 
type, capacity, and energy sources of the generating systems 
used by the net metering customers. Nothing in this Section 
shall limit the ability of an electricity provider to request 
the redaction of information deemed by the Commission to be 
confidential business information.
    (l)(1) Notwithstanding the definition of "eligible 
customer" in item (ii) of subsection (b) of this Section, each 
electricity provider shall allow net metering as set forth in 
this subsection (l) and for the following projects, provided 
that only electric utilities serving more than 200,000 
customers as of January 1, 2021 shall provide net metering for 
projects that are eligible for subparagraph (C) of this 
paragraph (1) and have energized after the effective date of 
this amendatory Act of the 102nd General Assembly: 
        (A) properties owned or leased by multiple customers 
    that contribute to the operation of an eligible renewable 
    electrical generating facility through an ownership or 
    leasehold interest of at least 200 watts in such facility, 
    such as a community-owned wind project, a community-owned 
    biomass project, a community-owned solar project, or a 
    community methane digester processing livestock waste from 
    multiple sources, provided that the facility is also 
    located within the utility's service territory; 
        (B) individual units, apartments, or properties 
    located in a single building that are owned or leased by 
    multiple customers and collectively served by a common 
    eligible renewable electrical generating facility, such as 
    an office or apartment building, a shopping center or 
    strip mall served by photovoltaic panels on the roof; and 
        (C) subscriptions to community renewable generation 
    projects, including community renewable generation 
    projects on the customer's side of the billing meter of a 
    host facility and partially used for the customer's own 
    load.
    In addition, the nameplate capacity of the eligible 
renewable electric generating facility that serves the demand 
of the properties, units, or apartments identified in 
paragraphs (1) and (2) of this subsection (l) shall not exceed 
5,000 kilowatts in nameplate capacity in total. Any eligible 
renewable electrical generating facility or community 
renewable generation project that is powered by photovoltaic 
electric energy and installed after the effective date of this 
amendatory Act of the 99th General Assembly must be installed 
by a qualified person in compliance with the requirements of 
Section 16-128A of the Public Utilities Act and any rules or 
regulations adopted thereunder.
    (2) Notwithstanding anything to the contrary, an 
electricity provider shall provide credits for the electricity 
produced by the projects described in paragraph (1) of this 
subsection (l). The electricity provider shall provide credits 
that include at least energy supply, capacity, transmission, 
and, if applicable, the purchased energy adjustment on the 
subscriber's monthly bill equal to the subscriber's share of 
the production of electricity from the project, as determined 
by paragraph (3) of this subsection (l). For customers with 
transmission or capacity charges not charged on a 
kilowatt-hour basis, the electricity provider shall prepare a 
reasonable approximation of the kilowatt-hour equivalent value 
and provide that value as a monetary credit. The electricity 
provider shall submit these approximation methodologies to the 
Commission for review, modification, and approval. 
Notwithstanding anything to the contrary, customers on payment 
plans or participating in budget billing programs shall have 
credits applied on a monthly basis. 
    (3) Notwithstanding anything to the contrary and 
regardless of whether a subscriber to an eligible community 
renewable generation project receives power and energy service 
from the electric utility or an alternative retail electric 
supplier, for projects eligible under paragraph (C) of 
subparagraph (1) of this subsection (l), electric utilities 
serving more than 200,000 customers as of January 1, 2021 
shall provide the monetary credits to a subscriber's 
subsequent bill for the electricity produced by community 
renewable generation projects. The electric utility shall 
provide monetary credits to a subscriber's subsequent bill at 
the utility's total price to compare equal to the subscriber's 
share of the production of electricity from the project, as 
determined by paragraph (5) of this subsection (l). For the 
purposes of this subsection, "total price to compare" means 
the rate or rates published by the Illinois Commerce 
Commission for energy supply for eligible customers receiving 
supply service from the electric utility, and shall include 
energy, capacity, transmission, and the purchased energy 
adjustment. Notwithstanding anything to the contrary, 
customers on payment plans or participating in budget billing 
programs shall have credits applied on a monthly basis. Any 
applicable credit or reduction in load obligation from the 
production of the community renewable generating projects 
receiving a credit under this subsection shall be credited to 
the electric utility to offset the cost of providing the 
credit. To the extent that the credit or load obligation 
reduction does not completely offset the cost of providing the 
credit to subscribers of community renewable generation 
projects as described in this subsection, the electric utility 
may recover the remaining costs through its Multi-Year Rate 
Plan. All electric utilities serving 200,000 or fewer 
customers as of January 1, 2021 shall only provide the 
monetary credits to a subscriber's subsequent bill for the 
electricity produced by community renewable generation 
projects if the subscriber receives power and energy service 
from the electric utility. Alternative retail electric 
suppliers providing power and energy service to a subscriber 
located within the service territory of an electric utility 
not subject to Sections 16-108.18 and 16-118 shall provide the 
monetary credits to the subscriber's subsequent bill for the 
electricity produced by community renewable generation 
projects.
    (4) If requested by the owner or operator of a community 
renewable generating project, an electric utility serving more 
than 200,000 customers as of January 1, 2021 shall enter into a 
net crediting agreement with the owner or operator to include 
a subscriber's subscription fee on the subscriber's monthly 
electric bill and provide the subscriber with a net credit 
equivalent to the total bill credit value for that generation 
period minus the subscription fee, provided the subscription 
fee is structured as a fixed percentage of bill credit value. 
The net crediting agreement shall set forth payment terms from 
the electric utility to the owner or operator of the community 
renewable generating project, and the electric utility may 
charge a net crediting fee to the owner or operator of a 
community renewable generating project that may not exceed 1% 
of the subscription fee. Notwithstanding anything to the 
contrary, an electric utility serving 200,000 customers or 
fewer as of January 1, 2021 shall not be obligated to enter 
into a net crediting agreement with the owner or operator of a 
community renewable generating project. An electric utility 
shall use the same net crediting format for subscribers on 
payment plans and subscribers participating in budget billing 
programs. For the purposes of this paragraph (4), "net 
crediting" means a program offered by an electric utility 
under which the electric utility, upon authorization by or on 
behalf of a subscriber, remits the cash value of the 
subscription fee to the owner or operator of the community 
renewable generation facility without regard to whether the 
subscriber has paid the subscriber's monthly electric bill and 
places the cash value of the remaining bill credit on the 
subscriber's bill. 
    (5) For the purposes of facilitating net metering, the 
owner or operator of the eligible renewable electrical 
generating facility or community renewable generation project 
shall be responsible for determining the amount of the credit 
that each customer or subscriber participating in a project 
under this subsection (l) is to receive in the following 
manner: 
        (A) The owner or operator shall, on a monthly basis, 
    provide to the electric utility the kilowatthours of 
    generation attributable to each of the utility's retail 
    customers and subscribers participating in projects under 
    this subsection (l) in accordance with the customer's or 
    subscriber's share of the eligible renewable electric 
    generating facility's or community renewable generation 
    project's output of power and energy for such month. The 
    owner or operator shall electronically transmit such 
    calculations and associated documentation to the electric 
    utility, in a format or method set forth in the applicable 
    tariff, on a monthly basis so that the electric utility 
    can reflect the monetary credits on customers' and 
    subscribers' electric utility bills. The electric utility 
    shall be permitted to revise its tariffs to implement the 
    provisions of this amendatory Act of the 102nd General 
    Assembly. The owner or operator shall separately provide 
    the electric utility with the documentation detailing the 
    calculations supporting the credit in the manner set forth 
    in the applicable tariff. 
        (B) For those participating customers and subscribers 
    who receive their energy supply from an alternative retail 
    electric supplier, the electric utility shall remit to the 
    applicable alternative retail electric supplier the 
    information provided under subparagraph (A) of this 
    paragraph (3) for such customers and subscribers in a 
    manner set forth in such alternative retail electric 
    supplier's net metering program, or as otherwise agreed 
    between the utility and the alternative retail electric 
    supplier. The alternative retail electric supplier shall 
    then submit to the utility the amount of the charges for 
    power and energy to be applied to such customers and 
    subscribers, including the amount of the credit associated 
    with net metering. 
        (C) A participating customer or subscriber may provide 
    authorization as required by applicable law that directs 
    the electric utility to submit information to the owner or 
    operator of the eligible renewable electrical generating 
    facility or community renewable generation project to 
    which the customer or subscriber has an ownership or 
    leasehold interest or a subscription. Such information 
    shall be limited to the components of the net metering 
    credit calculated under this subsection (l), including the 
    bill credit rate, total kilowatthours, and total monetary 
    credit value applied to the customer's or subscriber's 
    bill for the monthly billing period. 
    (l-5) Within 90 days after the effective date of this 
amendatory Act of the 102nd General Assembly, each electric 
utility subject to this Section shall file a tariff or tariffs 
to implement the provisions of subsection (l) of this Section, 
which shall, consistent with the provisions of subsection (l), 
describe the terms and conditions under which owners or 
operators of qualifying properties, units, or apartments may 
participate in net metering. The Commission shall approve, or 
approve with modification, the tariff within 120 days after 
the effective date of this amendatory Act of the 102nd General 
Assembly. 
    (l-10) Within 30 days after the effective date of this 
amendatory Act of the 104th General Assembly, each electricity 
provider shall modify its tariffs to allow net metering as set 
forth in this subsection for an energy storage system or 
vehicle storage system energized after the effective date of 
this amendatory Act of the 104th General Assembly with a 
nameplate capacity of not more than 5,000 kilowatts. If the 
Commission chooses to suspend the modified tariffs, the 
Commission shall issue a final order approving, or approving 
with modification, the modified tariffs no later than 90 days 
after the Commission initiates the docket. 
    An energy storage system or vehicle storage system 
eligible for net metering under this subsection may be 
interconnected behind the meter of a retail customer or at the 
distribution system level of an electric utility as follows:
        (A) if the energy storage system or vehicle storage 
    system is interconnected behind the meter of a retail 
    customer, in order to receive net metering under this 
    subsection, the eligible customer behind whose meter the 
    energy storage system is interconnected must receive 
    service from an electricity provider under an hourly 
    supply tariff, a time-of-use supply tariff, or a 
    time-of-use contract with an alternative retail electric 
    supplier; or
        (B) if the energy storage system or vehicle storage 
    system is interconnected at the distribution system level 
    of an electric utility and not behind the meter of a retail 
    customer, the energy storage system or vehicle storage 
    system must receive service from an electricity provider 
    as a retail customer under an hourly supply tariff 
    authorized by Section 16-107, a supply tariff or contract 
    on substantially similar terms and conditions with an 
    alternative retail electric supplier, a time-of-use supply 
    tariff, or a time-of-use supply contract with an 
    alternative retail electric supplier.
    If the energy storage system or vehicle storage system is 
interconnected behind the meter of an eligible customer, the 
eligible customer shall receive net metering based on hourly 
or time-of-use rates in accordance with the terms of 
subsection (d-5) or (f) or paragraph (2) of subsection (n) of 
this Section, as applicable to the eligible customer. If the 
energy storage system or vehicle storage system is 
interconnected at the distribution system level of an electric 
utility and not behind the meter of a retail customer, then the 
energy storage system or vehicle storage system shall receive 
net metering pursuant to the terms of subsection (f) of this 
Section. 
    (m) Nothing in this Section shall affect the right of an 
electricity provider to continue to provide, or the right of a 
retail customer to continue to receive service pursuant to a 
contract for electric service between the electricity provider 
and the retail customer in accordance with the prices, terms, 
and conditions provided for in that contract. Either the 
electricity provider or the customer may require compliance 
with the prices, terms, and conditions of the contract. 
    (n) On and after January 1, 2025, the net metering 
services described in subsections (d), (d-5), and (e) of this 
Section shall no longer be offered, except as to those 
eligible renewable electrical generating facilities for which 
retail customers are receiving net metering service under 
these subsections at the time the net metering services under 
those subsections are no longer offered; those systems shall 
continue to receive net metering services described in 
subsections (d), (d-5), and (e) of this Section for the 
lifetime of the system, regardless of if those retail 
customers change electricity providers or whether the retail 
customer benefiting from the system changes. The electric 
utility serving more than 200,000 customers as of January 1, 
2021 is responsible for ensuring the billing credits continue 
without lapse for the lifetime of systems, as required in 
subsection (o). Those retail customers that begin taking net 
metering service after the date that net metering services are 
no longer offered under such subsections shall be subject to 
the provisions set forth in the following paragraphs (1) 
through (3) of this subsection (n):
        (1) An electricity provider shall charge or credit for 
    the net electricity supplied to eligible customers or 
    provided by eligible customers whose electric supply 
    service is not provided based on hourly pricing in the 
    following manner:
            (A) If the amount of electricity used by the 
        customer during the monthly billing period exceeds the 
        amount of electricity produced by the customer, then 
        the electricity provider shall charge the customer for 
        the net kilowatt-hour based electricity charges 
        reflected in the customer's electric service rate 
        supplied to and used by the customer as provided in 
        paragraph (3) of this subsection (n).
            (B) If the amount of electricity produced by a 
        customer during the monthly billing period exceeds the 
        amount of electricity used by the customer during that 
        billing period, then the electricity provider 
        supplying that customer shall apply a 1:1 
        kilowatt-hour energy or monetary credit kilowatt-hour 
        supply charges to the customer's subsequent bill. The 
        customer shall choose between 1:1 kilowatt-hour or 
        monetary credit at the time of application. For the 
        purposes of this subsection, "kilowatt-hour supply 
        charges" means the kilowatt-hour equivalent values for 
        energy, capacity, transmission, and the purchased 
        energy adjustment, if applicable. Notwithstanding 
        anything to the contrary, customers on payment plans 
        or participating in budget billing programs shall have 
        credits applied on a monthly basis. The electricity 
        provider shall continue to carry over any excess 
        kilowatt-hour or monetary energy credits earned and 
        apply those credits to subsequent billing periods. For 
        customers with transmission or capacity charges not 
        charged on a kilowatt-hour basis, the electricity 
        provider shall prepare a reasonable approximation of 
        the kilowatt-hour equivalent value and provide that 
        value as a monetary credit. The electricity provider 
        shall submit these approximation methodologies to the 
        Commission for review, modification, and approval.
            (C) (Blank).
        (2) An electricity provider shall charge or credit for 
    the net electricity supplied to eligible customers or 
    provided by eligible customers whose electric supply 
    service is provided based on hourly pricing in the 
    following manner:
            (A) If the amount of electricity used by the 
        customer during any hourly period exceeds the amount 
        of electricity produced by the customer, then the 
        electricity provider shall charge the customer for the 
        net electricity supplied to and used by the customer 
        as provided in paragraph (3) of this subsection (n).
            (B) If the amount of electricity produced by a 
        customer during any hourly period exceeds the amount 
        of electricity used by the customer during that hourly 
        period, the energy provider shall calculate an energy 
        credit for the net kilowatt-hours produced in such 
        period, and shall apply that credit as a monetary 
        credit to the customer's subsequent bill. The value of 
        the energy credit shall be calculated using the same 
        price per kilowatt-hour as the electric service 
        provider would charge for kilowatt-hour energy sales 
        during that same hourly period and shall also include 
        values for capacity and transmission. For customers 
        with transmission or capacity charges not charged on a 
        kilowatt-hour basis, the electricity provider shall 
        prepare a reasonable approximation of the 
        kilowatt-hour equivalent value and provide that value 
        as a monetary credit. The electricity provider shall 
        submit these approximation methodologies to the 
        Commission for review, modification, and approval. 
        Notwithstanding anything to the contrary, customers on 
        payment plans or participating in budget billing 
        programs shall have credits applied on a monthly 
        basis. 
        (3) An electricity provider shall provide electric 
    service to eligible customers who utilize net metering at 
    non-discriminatory rates that are identical, with respect 
    to rate structure, retail rate components, and any monthly 
    charges, to the rates that the customer would be charged 
    if not a net metering customer. An electricity provider 
    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 for if the customer was not a net 
    metering customer. An electricity provider shall not 
    charge net metering customers any fee or charge or require 
    additional equipment, insurance, or any other requirements 
    not specifically authorized by interconnection standards 
    authorized by the Commission, unless the fee, charge, or 
    other requirement would apply to other similarly situated 
    customers who are not net metering customers. The customer 
    remains responsible for the gross amount of delivery 
    services charges, supply-related charges that are kilowatt 
    based, and all taxes and fees related to such charges. The 
    customer also remains responsible for all taxes and fees 
    that would otherwise be applicable to the net amount of 
    electricity used by the customer. Paragraphs (1) and (2) 
    of this subsection (n) shall not be construed to prevent 
    an arms-length agreement between an electricity provider 
    and an eligible customer that sets forth different prices, 
    terms, and conditions for the provision of net metering 
    service, including, but not limited to, the provision of 
    the appropriate metering equipment for non-residential 
    customers. Nothing in this paragraph (3) shall be 
    interpreted to mandate that a utility that is only 
    required to provide delivery services to a given customer 
    must also sell electricity to such customer. 
    (o) Within 90 days after the effective date of this 
amendatory Act of the 102nd General Assembly, each electric 
utility subject to this Section shall file a tariff, which 
shall, consistent with the provisions of this Section, propose 
the terms and conditions under which a customer may 
participate in net metering. The tariff for electric utilities 
serving more than 200,000 customers as of January 1, 2021 
shall also provide a streamlined and transparent bill 
crediting system for net metering to be managed by the 
electric utilities. The terms and conditions shall include, 
but are not limited to, that an electric utility shall manage 
and maintain billing of net metering credits and charges 
regardless of if the eligible customer takes net metering 
under an electric utility or alternative retail electric 
supplier. The electric utility serving more than 200,000 
customers as of January 1, 2021 shall process and approve all 
net metering applications, even if an eligible customer is 
served by an alternative retail electric supplier; and the 
utility shall forward application approval to the appropriate 
alternative retail electric supplier. Eligibility for net 
metering shall remain with the owner of the utility billing 
address such that, if an eligible renewable electrical 
generating facility changes ownership, the net metering 
eligibility transfers to the new owner. The electric utility 
serving more than 200,000 customers as of January 1, 2021 
shall manage net metering billing for eligible customers to 
ensure full crediting occurs on electricity bills, including, 
but not limited to, ensuring net metering crediting begins 
upon commercial operation date, net metering billing transfers 
immediately if an eligible customer switches from an electric 
utility to alternative retail electric supplier or vice versa, 
and net metering billing transfers between ownership of a 
valid billing address. All transfers referenced in the 
preceding sentence shall include transfer of all banked 
credits. All electric utilities serving 200,000 or fewer 
customers as of January 1, 2021 shall manage net metering 
billing for eligible customers receiving power and energy 
service from the electric utility to ensure full crediting 
occurs on electricity bills, ensuring net metering crediting 
begins upon commercial operation date, net metering billing 
transfers immediately if an eligible customer switches from an 
electric utility to alternative retail electric supplier or 
vice versa, and net metering billing transfers between 
ownership of a valid billing address. Alternative retail 
electric suppliers providing power and energy service to 
eligible customers located within the service territory of an 
electric utility serving 200,000 or fewer customers as of 
January 1, 2021 shall manage net metering billing for eligible 
customers to ensure full crediting occurs on electricity 
bills, including, but not limited to, ensuring net metering 
crediting begins upon commercial operation date, net metering 
billing transfers immediately if an eligible customer switches 
from an electric utility to alternative retail electric 
supplier or vice versa, and net metering billing transfers 
between ownership of a valid billing address. 
(Source: P.A. 104-458, eff. 6-1-26.)
 
    (220 ILCS 5/17-1000 new)
    Sec. 17-1000. Interconnection application fees for public 
schools. A municipal system or electric cooperative shall not 
charge an application fee to a public school for the 
interconnection of renewable generating facilities located on 
the public school's land to the local distribution system that 
exceeds more than 150% of the cost authorized by law or by rule 
to be recovered from customers by public utilities for the 
same or similarly sized facilities with the same or similar 
electric configurations to the local distribution system. An 
interconnection application fee shall be in addition to 
inspection fees or costs, municipal building permit fees, and 
other normal fees charged by municipalities for governmental 
considerations related to non-electric utilities. The limit on 
an interconnection application fee under this Section does not 
apply to any required reimbursement by a public school of the 
cost of any reasonably required metering equipment, system 
impact studies, or system upgrades, which shall be limited to 
actual costs reasonably incurred.
 
    Section 95. No acceleration or delay. Where this Act makes 
changes in a statute that is represented in this Act by text 
that is not yet or no longer in effect (for example, a Section 
represented by multiple versions), the use of that text does 
not accelerate or delay the taking effect of (i) the changes 
made by this Act or (ii) provisions derived from any other 
Public Act.
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.