Rep. Michael G. Connelly
Filed: 3/16/2010
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1 | AMENDMENT TO HOUSE BILL 5147
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2 | AMENDMENT NO. ______. Amend House Bill 5147, AS AMENDED, by | ||||||
3 | replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Public Utilities Act is amended by changing | ||||||
6 | Section 16-108 as follows:
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7 | (220 ILCS 5/16-108)
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8 | Sec. 16-108. Recovery of costs associated with the
the
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9 | provision of delivery services. | ||||||
10 | (a) An electric utility shall file a delivery services
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11 | tariff with the Commission at least 210 days prior to the date
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12 | that it is required to begin offering such services pursuant
to | ||||||
13 | this Act. An electric utility shall provide the components
of | ||||||
14 | delivery services that are subject to the jurisdiction of
the | ||||||
15 | Federal Energy Regulatory Commission at the same prices,
terms | ||||||
16 | and conditions set forth in its applicable tariff as
approved |
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1 | or allowed into effect by that Commission. The
Commission shall | ||||||
2 | otherwise have the authority pursuant to Article IX to review,
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3 | approve, and modify the prices, terms and conditions of those
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4 | components of delivery services not subject to the
jurisdiction | ||||||
5 | of the Federal Energy Regulatory Commission,
including the | ||||||
6 | authority to determine the extent to which such
delivery | ||||||
7 | services should be offered on an unbundled basis. In making any | ||||||
8 | such
determination the Commission shall consider, at a minimum, | ||||||
9 | the effect of
additional unbundling on (i) the objective of | ||||||
10 | just and reasonable rates, (ii)
electric utility employees, and | ||||||
11 | (iii) the development of competitive markets
for electric | ||||||
12 | energy services in Illinois.
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13 | (b) The Commission shall enter an order approving, or
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14 | approving as modified, the delivery services tariff no later
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15 | than 30 days prior to the date on which the electric utility
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16 | must commence offering such services. The Commission may
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17 | subsequently modify such tariff pursuant to this Act.
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18 | (c) The electric utility's
tariffs shall define the classes | ||||||
19 | of its customers for purposes
of delivery services charges. | ||||||
20 | Delivery services shall be priced and made
available to all | ||||||
21 | retail customers electing delivery services in each such class
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22 | on a nondiscriminatory basis regardless of whether the retail | ||||||
23 | customer chooses
the electric utility, an affiliate of the | ||||||
24 | electric utility, or another entity
as its supplier of electric | ||||||
25 | power and energy. Charges for delivery services
shall be cost | ||||||
26 | based,
and shall allow the electric utility to recover the |
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1 | costs of
providing delivery services through its charges to its
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2 | delivery service customers that use the facilities and
services | ||||||
3 | associated with such costs.
Such costs shall include the
costs | ||||||
4 | of owning, operating and maintaining transmission and
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5 | distribution facilities. The Commission shall also be
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6 | authorized to consider whether, and if so to what extent, the
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7 | following costs are appropriately included in the electric
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8 | utility's delivery services rates: (i) the costs of that
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9 | portion of generation facilities used for the production and
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10 | absorption of reactive power in order that retail customers
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11 | located in the electric utility's service area can receive
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12 | electric power and energy from suppliers other than the
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13 | electric utility, and (ii) the costs associated with the use
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14 | and redispatch of generation facilities to mitigate
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15 | constraints on the transmission or distribution system in
order | ||||||
16 | that retail customers located in the electric utility's
service | ||||||
17 | area can receive electric power and energy from
suppliers other | ||||||
18 | than the electric utility. Nothing in this
subsection shall be | ||||||
19 | construed as directing the Commission to
allocate any of the | ||||||
20 | costs described in (i) or (ii) that are
found to be | ||||||
21 | appropriately included in the electric utility's
delivery | ||||||
22 | services rates to any particular customer group or
geographic | ||||||
23 | area in setting delivery services rates.
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24 | (d) The Commission shall establish charges, terms and
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25 | conditions for delivery services that are just and reasonable
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26 | and shall take into account customer impacts when establishing
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1 | such charges. In establishing charges, terms and conditions
for | ||||||
2 | delivery services, the Commission shall take into account
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3 | voltage level differences. A retail customer shall have the
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4 | option to request to purchase electric service at any delivery
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5 | service voltage reasonably and technically feasible from the
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6 | electric facilities serving that customer's premises provided
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7 | that there are no significant adverse impacts upon system
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8 | reliability or system efficiency. A retail customer shall
also | ||||||
9 | have the option to request to purchase electric service
at any | ||||||
10 | point of delivery that is reasonably and technically
feasible | ||||||
11 | provided that there are no significant adverse
impacts on | ||||||
12 | system reliability or efficiency. Such requests
shall not be | ||||||
13 | unreasonably denied.
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14 | (e) Electric utilities shall recover the costs of
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15 | installing, operating or maintaining facilities for the
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16 | particular benefit of one or more delivery services customers,
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17 | including without limitation any costs incurred in complying
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18 | with a customer's request to be served at a different voltage
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19 | level, directly from the retail customer or customers for
whose | ||||||
20 | benefit the costs were incurred, to the extent such
costs are | ||||||
21 | not recovered through the charges referred to in
subsections | ||||||
22 | (c) and (d) of this Section.
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23 | (f) An electric utility shall be entitled but not
required | ||||||
24 | to implement transition charges in conjunction with
the | ||||||
25 | offering of delivery services pursuant to Section 16-104.
If an | ||||||
26 | electric utility implements transition charges, it shall |
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1 | implement such
charges for all delivery services customers and | ||||||
2 | for all customers described in
subsection (h), but shall not | ||||||
3 | implement transition charges for power and
energy that a retail | ||||||
4 | customer takes from cogeneration or self-generation
facilities | ||||||
5 | located on that retail customer's premises, if such facilities | ||||||
6 | meet
the following criteria:
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7 | (i) the cogeneration or self-generation facilities | ||||||
8 | serve a single retail
customer and are located on that | ||||||
9 | retail customer's premises (for purposes of
this | ||||||
10 | subparagraph and subparagraph (ii), an industrial or | ||||||
11 | manufacturing retail
customer and a third party contractor | ||||||
12 | that is served by such industrial or
manufacturing customer | ||||||
13 | through such retail customer's own electrical
distribution | ||||||
14 | facilities under the circumstances described in subsection | ||||||
15 | (vi) of
the definition of "alternative retail electric | ||||||
16 | supplier" set forth in Section
16-102, shall be considered | ||||||
17 | a single retail customer);
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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
electrical | ||||||
21 | load at that premises (taking into account standby or other
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22 | reliability considerations related to that retail | ||||||
23 | customer's operations at that
site) or (B) if the facility | ||||||
24 | is a cogeneration facility located on the retail
customer's | ||||||
25 | premises, the retail customer is the thermal host for that | ||||||
26 | facility
and the facility has been designed to meet that |
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1 | retail customer's thermal
energy requirements resulting in | ||||||
2 | electrical output beyond that retail
customer's electrical | ||||||
3 | demand at that premises, comply with the operating and
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4 | efficiency standards applicable to "qualifying facilities" | ||||||
5 | specified in title
18 Code of Federal Regulations Section | ||||||
6 | 292.205 as in effect on the effective
date of this | ||||||
7 | amendatory Act of 1999;
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8 | (iii) the retail customer on whose premises the | ||||||
9 | facilities are located
either has an exclusive right to | ||||||
10 | receive, and corresponding obligation to pay
for, all of | ||||||
11 | the electrical capacity of the facility, or in the case of | ||||||
12 | a
cogeneration facility that has been designed to meet the | ||||||
13 | retail customer's
thermal energy requirements at that | ||||||
14 | premises, an identified amount of the
electrical capacity | ||||||
15 | of the facility, over a minimum 5-year period; and
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16 | (iv) if the cogeneration facility is sized for the
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17 | retail customer's thermal load at that premises but exceeds | ||||||
18 | the electrical
load, any sales of excess power or energy | ||||||
19 | are made only at wholesale, are
subject to the jurisdiction | ||||||
20 | of the Federal Energy Regulatory Commission, and
are not | ||||||
21 | for the purpose of circumventing the provisions of this | ||||||
22 | subsection (f).
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23 | If a generation facility located at a retail customer's | ||||||
24 | premises does not meet
the above criteria, an electric utility | ||||||
25 | implementing
transition charges shall implement a transition | ||||||
26 | charge until December 31, 2006
for any power and energy taken |
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1 | by such retail customer from such facility as if
such power and | ||||||
2 | energy had been delivered by the electric utility. Provided,
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3 | however, that an industrial retail customer that is taking | ||||||
4 | power from a
generation facility that does not meet the above | ||||||
5 | criteria but that is located
on such customer's premises will | ||||||
6 | not be subject to a transition charge for the
power and energy | ||||||
7 | taken by such retail customer from such generation facility if
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8 | the facility does not serve any other retail customer and | ||||||
9 | either was installed
on behalf of the customer and for its own | ||||||
10 | use prior to January 1, 1997, or is
both predominantly fueled | ||||||
11 | by byproducts of such customer's manufacturing
process at such | ||||||
12 | premises and sells or offers an average of 300 megawatts or
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13 | more of electricity produced from such generation facility into | ||||||
14 | the wholesale
market.
Such charges
shall be calculated as | ||||||
15 | provided in Section
16-102, and shall be collected
on each | ||||||
16 | kilowatt-hour delivered under a
delivery services tariff to a | ||||||
17 | retail customer from the date
the customer first takes delivery | ||||||
18 | services until December 31,
2006 except as provided in | ||||||
19 | subsection (h) of this Section.
Provided, however, that an | ||||||
20 | electric utility, other than an electric utility
providing | ||||||
21 | service to at least 1,000,000 customers in this State on | ||||||
22 | January 1,
1999,
shall be entitled to petition for
entry of an | ||||||
23 | order by the Commission authorizing the electric utility to
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24 | implement transition charges for an additional period ending no | ||||||
25 | later than
December 31, 2008. The electric utility shall file | ||||||
26 | its petition with
supporting evidence no earlier than 16 |
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1 | months, and no later than 12 months,
prior to December 31, | ||||||
2 | 2006. The Commission shall hold a hearing on the
electric | ||||||
3 | utility's petition and shall enter its order no later than 8 | ||||||
4 | months
after the petition is filed. The Commission shall | ||||||
5 | determine whether and to
what extent the electric utility shall | ||||||
6 | be authorized to implement transition
charges for an additional | ||||||
7 | period. The Commission may authorize the electric
utility to | ||||||
8 | implement transition charges for some or all of the additional
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9 | period, and shall determine the mitigation factors to be used | ||||||
10 | in implementing
such transition charges; provided, that the | ||||||
11 | Commission shall not authorize
mitigation factors less than | ||||||
12 | 110% of those in effect during the 12 months ended
December 31, | ||||||
13 | 2006. In making its determination, the Commission shall | ||||||
14 | consider
the following factors: the necessity to implement | ||||||
15 | transition charges for an
additional period in order to | ||||||
16 | maintain the financial integrity of the electric
utility; the | ||||||
17 | prudence of the electric utility's actions in reducing its | ||||||
18 | costs
since the effective date of this amendatory Act of 1997; | ||||||
19 | the ability of the
electric utility to provide safe, adequate | ||||||
20 | and reliable service to retail
customers in its service area; | ||||||
21 | and the impact on competition of allowing the
electric utility | ||||||
22 | to implement transition charges for the additional period.
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23 | (g) The electric utility shall file tariffs that
establish | ||||||
24 | the transition charges to be paid by each class of
customers to | ||||||
25 | the electric utility in conjunction with the
provision of | ||||||
26 | delivery services. The electric utility's tariffs
shall define |
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1 | the classes of its customers for purposes of
calculating | ||||||
2 | transition charges. The electric utility's tariffs
shall | ||||||
3 | provide for the calculation of transition charges on a
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4 | customer-specific basis for any retail customer whose average
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5 | monthly maximum electrical demand on the electric utility's
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6 | system during the 6 months with the customer's highest monthly
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7 | maximum electrical demands equals or exceeds 3.0 megawatts for
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8 | electric utilities having more than 1,000,000 customers, and
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9 | for other electric utilities for any customer that has an
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10 | average monthly maximum electrical demand on the electric
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11 | utility's system of one megawatt or more, and (A) for which
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12 | there exists data on the customer's usage during the 3 years
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13 | preceding the date that the customer became eligible to take
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14 | delivery services, or (B) for which there does not exist data
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15 | on the customer's usage during the 3 years preceding the date
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16 | that the customer became eligible to take delivery services,
if | ||||||
17 | in the electric utility's reasonable judgment there exists
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18 | comparable usage information or a sufficient basis to develop
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19 | such information, and further provided that the electric
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20 | utility can require customers for which an individual
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21 | calculation is made to sign contracts that set forth the
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22 | transition charges to be paid by the customer to the electric
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23 | utility pursuant to the tariff.
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24 | (h) An electric utility shall also be entitled to file
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25 | tariffs that allow it to collect transition charges from
retail | ||||||
26 | customers in the electric utility's service area that
do not |
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1 | take delivery services but that take electric power or
energy | ||||||
2 | from an alternative retail electric supplier or from an
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3 | electric utility other than the electric utility in whose
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4 | service area the customer is located. Such charges shall be
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5 | calculated, in accordance with the definition of transition
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6 | charges in Section 16-102, for the period of time that the
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7 | customer would be obligated to pay transition charges if it
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8 | were taking delivery services, except that no deduction for
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9 | delivery services revenues shall be made in such calculation,
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10 | and usage data from the customer's class shall be used where
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11 | historical usage data is not available for the individual
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12 | customer. The customer shall be obligated to pay such charges
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13 | on a lump sum basis on or before the date on which the
customer | ||||||
14 | commences to take service from the alternative retail
electric | ||||||
15 | supplier or other electric utility, provided, that
the electric | ||||||
16 | utility in whose service area the customer is
located shall | ||||||
17 | offer the customer the option of signing a
contract pursuant to | ||||||
18 | which the customer pays such charges
ratably over the period in | ||||||
19 | which the charges would otherwise
have applied.
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20 | (i) An electric utility shall be entitled to add to the
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21 | bills of delivery services customers charges pursuant to
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22 | Sections 9-221, 9-222 (except as provided in Section 9-222.1), | ||||||
23 | and Section
16-114 of this Act, Section 5-5 of the Electricity | ||||||
24 | Infrastructure Maintenance
Fee Law, Section 6-5 of the | ||||||
25 | Renewable Energy, Energy Efficiency, and Coal
Resources | ||||||
26 | Development Law of 1997, and Section 13 of the Energy |
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1 | Assistance Act.
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2 | (j) If a retail customer that obtains electric power and
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3 | energy from cogeneration or self-generation facilities
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4 | installed for its own use on or before January 1, 1997,
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5 | subsequently takes service from an alternative retail electric
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6 | supplier or an electric utility other than the electric
utility | ||||||
7 | in whose service area the customer is located for any
portion | ||||||
8 | of the customer's electric power and energy
requirements | ||||||
9 | formerly obtained from those facilities (including that amount
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10 | purchased from the utility in lieu of such generation and not | ||||||
11 | as standby power
purchases, under a cogeneration displacement | ||||||
12 | tariff in effect as of the
effective date of this amendatory | ||||||
13 | Act of 1997), the
transition charges otherwise applicable | ||||||
14 | pursuant to subsections (f), (g), or
(h) of this Section shall | ||||||
15 | not be applicable
in any year to that portion of the customer's | ||||||
16 | electric power
and energy requirements formerly obtained from | ||||||
17 | those
facilities, provided, that for purposes of this | ||||||
18 | subsection
(j), such portion shall not exceed the average | ||||||
19 | number of
kilowatt-hours per year obtained from the | ||||||
20 | cogeneration or
self-generation facilities during the 3 years | ||||||
21 | prior to the
date on which the customer became eligible for | ||||||
22 | delivery
services, except as provided in subsection (f) of | ||||||
23 | Section
16-110.
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24 | (Source: P.A. 91-50, eff. 6-30-99; 92-690, eff. 7-18-02.)".
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