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91_HB3027eng
HB3027 Engrossed LRB9109967JSpc
1 AN ACT to amend the Public Utilities Act by changing
2 Sections 16-108 and 16-109.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Public Utilities Act is amended by
6 changing Sections 16-108 and 16-109 as follows:
7 (220 ILCS 5/16-108)
8 Sec. 16-108. Recovery of costs associated with the
9 provision of delivery services.
10 (a) An electric utility shall file a delivery services
11 tariff with the Commission at least 210 days prior to the
12 date that it is required to begin offering such services
13 pursuant to this Act. An electric utility shall provide the
14 components of delivery services that are subject to the
15 jurisdiction of the Federal Energy Regulatory Commission at
16 the same prices, terms and conditions set forth in its
17 applicable tariff as approved or allowed into effect by that
18 Commission. The Commission shall otherwise have the authority
19 pursuant to Article IX to review, approve, and modify the
20 prices, terms and conditions of those components of delivery
21 services not subject to the jurisdiction of the Federal
22 Energy Regulatory Commission, including the authority to
23 determine the extent to which such delivery services should
24 be offered on an unbundled basis. In making any such
25 determination the Commission shall consider, at a minimum,
26 the effect of additional unbundling on (i) the objective of
27 just and reasonable rates, (ii) electric utility employees,
28 and (iii) the development of competitive markets for electric
29 energy services in Illinois. The Commission, however, may not
30 issue a final order regarding the offering of delivery
31 services on an unbundled basis before January 1, 2003.
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1 (b) The Commission shall enter an order approving, or
2 approving as modified, the delivery services tariff no later
3 than 30 days prior to the date on which the electric utility
4 must commence offering such services. The Commission may
5 subsequently modify such tariff pursuant to this Act.
6 (c) The electric utility's tariffs shall define the
7 classes of its customers for purposes of delivery services
8 charges. Delivery services shall be priced and made
9 available to all retail customers electing delivery services
10 in each such class on a nondiscriminatory basis regardless of
11 whether the retail customer chooses the electric utility, an
12 affiliate of the electric utility, or another entity as its
13 supplier of electric power and energy. Charges for delivery
14 services shall be cost based, and shall allow the electric
15 utility to recover the costs of providing delivery services
16 through its charges to its delivery service customers that
17 use the facilities and services associated with such costs.
18 Such costs shall include the costs of owning, operating and
19 maintaining transmission and distribution facilities. The
20 Commission shall also be authorized to consider whether, and
21 if so to what extent, the following costs are appropriately
22 included in the electric utility's delivery services rates:
23 (i) the costs of that portion of generation facilities used
24 for the production and absorption of reactive power in order
25 that retail customers located in the electric utility's
26 service area can receive electric power and energy from
27 suppliers other than the electric utility, and (ii) the costs
28 associated with the use and redispatch of generation
29 facilities to mitigate constraints on the transmission or
30 distribution system in order that retail customers located in
31 the electric utility's service area can receive electric
32 power and energy from suppliers other than the electric
33 utility. Nothing in this subsection shall be construed as
34 directing the Commission to allocate any of the costs
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1 described in (i) or (ii) that are found to be appropriately
2 included in the electric utility's delivery services rates to
3 any particular customer group or geographic area in setting
4 delivery services rates.
5 (d) The Commission shall establish charges, terms and
6 conditions for delivery services that are just and reasonable
7 and shall take into account customer impacts when
8 establishing such charges. In establishing charges, terms and
9 conditions for delivery services, the Commission shall take
10 into account voltage level differences. A retail customer
11 shall have the option to request to purchase electric service
12 at any delivery service voltage reasonably and technically
13 feasible from the electric facilities serving that customer's
14 premises provided that there are no significant adverse
15 impacts upon system reliability or system efficiency. A
16 retail customer shall also have the option to request to
17 purchase electric service at any point of delivery that is
18 reasonably and technically feasible provided that there are
19 no significant adverse impacts on system reliability or
20 efficiency. Such requests shall not be unreasonably denied.
21 (e) Electric utilities shall recover the costs of
22 installing, operating or maintaining facilities for the
23 particular benefit of one or more delivery services
24 customers, including without limitation any costs incurred in
25 complying with a customer's request to be served at a
26 different voltage level, directly from the retail customer or
27 customers for whose benefit the costs were incurred, to the
28 extent such costs are not recovered through the charges
29 referred to in subsections (c) and (d) of this Section.
30 (f) An electric utility shall be entitled but not
31 required to implement transition charges in conjunction with
32 the offering of delivery services pursuant to Section 16-104.
33 If an electric utility implements transition charges, it
34 shall implement such charges for all delivery services
HB3027 Engrossed -4- LRB9109967JSpc
1 customers and for all customers described in subsection (h),
2 but shall not implement transition charges for power and
3 energy that a retail customer takes from cogeneration or
4 self-generation facilities located on that retail customer's
5 premises, if such facilities meet the following criteria:
6 (i) the cogeneration or self-generation facilities
7 serve a single retail customer and are located on that
8 retail customer's premises (for purposes of this
9 subparagraph and subparagraph (ii), an industrial or
10 manufacturing retail customer and a third party
11 contractor that is served by such industrial or
12 manufacturing customer through such retail customer's own
13 electrical distribution facilities under the
14 circumstances described in subsection (vi) of the
15 definition of "alternative retail electric supplier" set
16 forth in Section 16-102, shall be considered a single
17 retail customer);
18 (ii) the cogeneration or self-generation facilities
19 either (A) are sized pursuant to generally accepted
20 engineering standards for the retail customer's
21 electrical load at that premises (taking into account
22 standby or other reliability considerations related to
23 that retail customer's operations at that site) or (B) if
24 the facility is a cogeneration facility located on the
25 retail customer's premises, the retail customer is the
26 thermal host for that facility and the facility has been
27 designed to meet that retail customer's thermal energy
28 requirements resulting in electrical output beyond that
29 retail customer's electrical demand at that premises,
30 comply with the operating and efficiency standards
31 applicable to "qualifying facilities" specified in title
32 18 Code of Federal Regulations Section 292.205 as in
33 effect on the effective date of this amendatory Act of
34 1999;
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1 (iii) the retail customer on whose premises the
2 facilities are located either has an exclusive right to
3 receive, and corresponding obligation to pay for, all of
4 the electrical capacity of the facility, or in the case
5 of a cogeneration facility that has been designed to meet
6 the retail customer's thermal energy requirements at that
7 premises, an identified amount of the electrical capacity
8 of the facility, over a minimum 5-year period; and
9 (iv) if the cogeneration facility is sized for the
10 retail customer's thermal load at that premises but
11 exceeds the electrical load, any sales of excess power or
12 energy are made only at wholesale, are subject to the
13 jurisdiction of the Federal Energy Regulatory Commission,
14 and are not for the purpose of circumventing the
15 provisions of this subsection (f).
16 If a generation facility located at a retail customer's
17 premises does not meet the above criteria, an electric
18 utility implementing transition charges shall implement a
19 transition charge until December 31, 2006 for any power and
20 energy taken by such retail customer from such facility as if
21 such power and energy had been delivered by the electric
22 utility. Provided, however, that an industrial retail
23 customer that is taking power from a generation facility that
24 does not meet the above criteria but that is located on such
25 customer's premises will not be subject to a transition
26 charge for the power and energy taken by such retail customer
27 from such generation facility if the facility does not serve
28 any other retail customer and either was installed on behalf
29 of the customer and for its own use prior to January 1, 1997,
30 or is both predominantly fueled by byproducts of such
31 customer's manufacturing process at such premises and sells
32 or offers an average of 300 megawatts or more of electricity
33 produced from such generation facility into the wholesale
34 market. Such charges shall be calculated as provided in
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1 Section 16-102, and shall be collected on each kilowatt-hour
2 delivered under a delivery services tariff to a retail
3 customer from the date the customer first takes delivery
4 services until December 31, 2006 except as provided in
5 subsection (h) of this Section. Provided, however, that an
6 electric utility, other than an electric utility providing
7 service to at least 1,000,000 customers in this State on
8 January 1, 1999, shall be entitled to petition for entry of
9 an order by the Commission authorizing the electric utility
10 to implement transition charges for an additional period
11 ending no later than December 31, 2008. The electric utility
12 shall file its petition with supporting evidence no earlier
13 than 16 months, and no later than 12 months, prior to
14 December 31, 2006. The Commission shall hold a hearing on
15 the electric utility's petition and shall enter its order no
16 later than 8 months after the petition is filed. The
17 Commission shall determine whether and to what extent the
18 electric utility shall be authorized to implement transition
19 charges for an additional period. The Commission may
20 authorize the electric utility to implement transition
21 charges for some or all of the additional period, and shall
22 determine the mitigation factors to be used in implementing
23 such transition charges; provided, that the Commission shall
24 not authorize mitigation factors less than 110% of those in
25 effect during the 12 months ended December 31, 2006. In
26 making its determination, the Commission shall consider the
27 following factors: the necessity to implement transition
28 charges for an additional period in order to maintain the
29 financial integrity of the electric utility; the prudence of
30 the electric utility's actions in reducing its costs since
31 the effective date of this amendatory Act of 1997; the
32 ability of the electric utility to provide safe, adequate and
33 reliable service to retail customers in its service area; and
34 the impact on competition of allowing the electric utility to
HB3027 Engrossed -7- LRB9109967JSpc
1 implement transition charges for the additional period.
2 (g) The electric utility shall file tariffs that
3 establish the transition charges to be paid by each class of
4 customers to the electric utility in conjunction with the
5 provision of delivery services. The electric utility's
6 tariffs shall define the classes of its customers for
7 purposes of calculating transition charges. The electric
8 utility's tariffs shall provide for the calculation of
9 transition charges on a customer-specific basis for any
10 retail customer whose average monthly maximum electrical
11 demand on the electric utility's system during the 6 months
12 with the customer's highest monthly maximum electrical
13 demands equals or exceeds 3.0 megawatts for electric
14 utilities having more than 1,000,000 customers, and for other
15 electric utilities for any customer that has an average
16 monthly maximum electrical demand on the electric utility's
17 system of one megawatt or more, and (A) for which there
18 exists data on the customer's usage during the 3 years
19 preceding the date that the customer became eligible to take
20 delivery services, or (B) for which there does not exist data
21 on the customer's usage during the 3 years preceding the date
22 that the customer became eligible to take delivery services,
23 if in the electric utility's reasonable judgment there exists
24 comparable usage information or a sufficient basis to develop
25 such information, and further provided that the electric
26 utility can require customers for which an individual
27 calculation is made to sign contracts that set forth the
28 transition charges to be paid by the customer to the electric
29 utility pursuant to the tariff.
30 (h) An electric utility shall also be entitled to file
31 tariffs that allow it to collect transition charges from
32 retail customers in the electric utility's service area that
33 do not take delivery services but that take electric power or
34 energy from an alternative retail electric supplier or from
HB3027 Engrossed -8- LRB9109967JSpc
1 an electric utility other than the electric utility in whose
2 service area the customer is located. Such charges shall be
3 calculated, in accordance with the definition of transition
4 charges in Section 16-102, for the period of time that the
5 customer would be obligated to pay transition charges if it
6 were taking delivery services, except that no deduction for
7 delivery services revenues shall be made in such calculation,
8 and usage data from the customer's class shall be used where
9 historical usage data is not available for the individual
10 customer. The customer shall be obligated to pay such
11 charges on a lump sum basis on or before the date on which
12 the customer commences to take service from the alternative
13 retail electric supplier or other electric utility, provided,
14 that the electric utility in whose service area the customer
15 is located shall offer the customer the option of signing a
16 contract pursuant to which the customer pays such charges
17 ratably over the period in which the charges would otherwise
18 have applied.
19 (i) An electric utility shall be entitled to add to the
20 bills of delivery services customers charges pursuant to
21 Sections 9-221, 9-222 (except as provided in Section
22 9-222.1), and Section 16-114 of this Act, Section 5-5 of the
23 Electricity Infrastructure Maintenance Fee Law, Section 6-5
24 of the Renewable Energy, Energy Efficiency, and Coal
25 Resources Development Law of 1997, and Section 13 of the
26 Energy Assistance Act of 1989.
27 (j) If a retail customer that obtains electric power and
28 energy from cogeneration or self-generation facilities
29 installed for its own use on or before January 1, 1997,
30 subsequently takes service from an alternative retail
31 electric supplier or an electric utility other than the
32 electric utility in whose service area the customer is
33 located for any portion of the customer's electric power and
34 energy requirements formerly obtained from those facilities
HB3027 Engrossed -9- LRB9109967JSpc
1 (including that amount purchased from the utility in lieu of
2 such generation and not as standby power purchases, under a
3 cogeneration displacement tariff in effect as of the
4 effective date of this amendatory Act of 1997), the
5 transition charges otherwise applicable pursuant to
6 subsections (f), (g), or (h) of this Section shall not be
7 applicable in any year to that portion of the customer's
8 electric power and energy requirements formerly obtained from
9 those facilities, provided, that for purposes of this
10 subsection (j), such portion shall not exceed the average
11 number of kilowatt-hours per year obtained from the
12 cogeneration or self-generation facilities during the 3 years
13 prior to the date on which the customer became eligible for
14 delivery services, except as provided in subsection (f) of
15 Section 16-110.
16 (Source: P.A. 90-561, eff. 12-16-97; 91-50, eff. 6-30-99.)
17 (220 ILCS 5/16-109)
18 Sec. 16-109. Unbundling of delivery services; Commission
19 review. The General Assembly finds that the offering of
20 delivery services will, and is intended to, facilitate the
21 development of competition for generation services, and that
22 competition may develop for other services currently offered
23 on a tariffed basis by the electric utility. The Commission
24 shall open a proceeding to investigate the need for and
25 desirability of different or additional unbundling of
26 delivery services for some or all electric utilities 3 years
27 from the date that a tariff for delivery services is first
28 approved or allowed into effect pursuant to this Section,
29 however, the Commission may not issue a final order in an
30 investigation proceeding before January 1, 2003. The
31 Commission shall open an additional proceeding to again
32 investigate the need for and desirability of different or
33 additional unbundling of delivery services for some or all
HB3027 Engrossed -10- LRB9109967JSpc
1 electric utilities, 3 years after the entry of its final
2 order in the first investigation proceeding. In any
3 additional investigation proceeding, the Commission shall
4 issue its final order in each investigation proceeding no
5 later than 6 months after the proceeding is initiated. In
6 each such proceeding the Commission shall consider, at a
7 minimum, the effect of additional unbundling on (i) the
8 objective of just and reasonable rates, (ii) electric utility
9 employees, and (iii) the development of competitive markets
10 for electric energy services in Illinois. Specific changes
11 to the delivery services tariffs of individual electric
12 utilities to implement findings and directives stated in an
13 order in an investigation proceeding initiated under this
14 Section shall be addressed through individual electric
15 utility tariff filings. The Commission may also, in
16 accordance with Section 16-108, upon complaint or upon its
17 own initiative without complaint, upon reasonable notice,
18 enter upon a hearing concerning the need and desirability of
19 requiring additional or other unbundling of delivery services
20 offered by electric utilities.
21 (Source: P.A. 90-561, eff. 12-16-97.)
22 Section 99. Effective date. This Act takes effect upon
23 becoming law.
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