SB1585sam004 99TH GENERAL ASSEMBLY

Sen. Donne E. Trotter

Filed: 5/27/2016

09900SB1585sam004 LRB099 09533 EGJ 49002 a

AMENDMENT TO SENATE BILL 1585

AMENDMENT NO. ______. Amend Senate Bill 1585, AS AMENDED, with reference to page and line numbers of Senate Amendment No. 3 as follows:

on page 16, line 1, by replacing "3,000,000" with "500,000"; and

on page 16, line 8, after "State", by inserting "and for an electric utility that services 3,000,000 or less but more than 500,000 customers in the State"; and

on page 19, line 21, by replacing "3,000,000" with "500,000"; and

on page 20, line 18, after "State", by inserting "and for an electric utility that serves 3,000,000 or less but more than 500,000 customers in the State"; and

on page 91, immediately below line 4, by inserting the following:

"(G) Notwithstanding any other provision of law to the contrary, a utility shall not be required to execute any contract pursuant to this subsection (d-5) unless at least one zero emission resource that is designated to receive compensation for zero emission credits is interconnected directly to the transmission system within the electrical balancing authority or zone established by the applicable regional transmission organization of the purchasing utility at the time of execution. All contracts executed pursuant to this subsection (d-5) shall explicitly permit termination in the event that any utility subject to this Section that is required to purchase zero emission credits no longer has any zero emission resources generating electricity within the electrical energy balancing authority or zone ascribed to the utility by a regional transmission organization. Termination of all contracts pursuant to subparagraph (F) of this subsection (d-5) and this subparagraph (G) shall become effective upon 90 days following notice of termination."; and

on page 91, line 5, by replacing "(G)" with "(H)"; and

on page 94, line 25, after "9-105,", by inserting "9-106,"; and

on page 96, line 5, by replacing "3,000,000" with "500,000"; and

on page 96, line 8, after "State", by inserting "and to electric utilities serving 3,000,000 or less but more than 500,000 retail customers in the State"; and

on page 108, line 16, by replacing "expenses" with "expenditures"; and

on page 109, line 8, after "State", by inserting "and to electric utilities serving 3,000,000 or less but more than 500,000 retail customers in the State"; and

on page 109, line 10, after "Section", by inserting "serving more than 3,000,000 retail customers in the State"; and

on page 111, line 17, after "utilities", by inserting "subject to this Section serving more than 3,000,000 retail customers in the State"; and

on page 112, immediately below line 24, by inserting the following:

"(b-6) (1) For purposes of this Section, electric utilities subject to this Section serving 3,000,000 or less but more than 500,000 retail customers in the State shall be deemed to have achieved a cumulative persisting annual savings of 6.6%, or 2,435,400 MWhs for the year ending December 31, 2017, which is based on the deemed average weather normalized sales of electric power and energy during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs. The 36,900,000 MWhs of deemed electric power and energy sales shall also serve as the baseline value for calculating the cumulative persisting annual savings in paragraph (2) of this subsection. After 2017, the deemed value of cumulative persisting annual savings shall be reduced each year, as follows, and the applicable value shall be applied to and count toward the utility's achievement of the cumulative persisting annual savings goals set forth in paragraph (2) of this subsection:

(A) 5.8%, or 2,140,200 MWhs, deemed cumulative persisting annual savings for the year ending December 31, 2018;

(B) 5.2%, or 1,918,800 MWhs, deemed cumulative persisting annual savings for the year ending December 31, 2019;

(C) 4.5%, or 1,660,500 MWhs, deemed cumulative persisting annual savings for the year ending December 31, 2020;

(D) 4.0% or 1,476,000 MWhs, deemed cumulative persisting annual savings for the year ending December 31, 2021;

(E) 3.5%, or 1,291,500 MWhs, deemed cumulative persisting annual savings for the year ending December 31, 2022;

(F) 3.1%, or 1,143,900 MWhs, deemed cumulative persisting annual savings for the year ending December 31, 2023;

(G) 2.8%, or 1,033,200 MWhs, deemed cumulative persisting annual savings for the year ending December 31, 2024;

(H) 2.5%, or 922,500 MWhs, deemed cumulative persisting annual savings for the year ending December 31, 2025;

(I) 2.3%, or 848,700 MWhs, deemed cumulative persisting annual savings for the year ending December 31, 2026;

(J) 2.1%, or 774,900 MWhs, deemed cumulative persisting annual savings for the year ending December 31, 2027;

(K) 1.8%, or 664,200 MWhs, deemed cumulative persisting annual savings for the year ending December 31, 2028;

(L) 1.7%, or 627,300 MWhs, deemed cumulative persisting annual savings for the year ending December 31, 2029; and

(M) 1.5%, or 553,500 MWhs, deemed cumulative persisting annual savings for the year ending December 31, 2030.

For purposes of this Section, "cumulative persisting annual savings" is the total electric energy savings in a given year from measures installed in that year or in previous years that are still operational and providing savings in that year because the measures have not yet reached the end of their useful lives.

(2) Beginning in 2018, electric utilities subject to this Section serving 3,000,000 or less but more than 500,000 retail customers in the State shall achieve the following cumulative persisting annual savings goals, as modified by subsection (b-10) and subsection (f) of this Section and as compared to the deemed baseline of 36,900,000 MWhs of electric power and energy sales set forth in paragraph (1) of this subsection (b-6), through the implementation of cost-effective energy efficiency measures during the applicable year and in prior years by the utility and, if applicable, the Department of Commerce and Economic Opportunity:

(A) 7.275% cumulative persisting annual savings for the year ending December 31, 2018;

(B) 7.95% cumulative persisting annual savings for the year ending December 31, 2019;

(C) 8.625% cumulative persisting annual savings for the year ending December 31, 2020;

(D) 9.3% cumulative persisting annual savings for the year ending December 31, 2021;

(E) 9.975% cumulative persisting annual savings for the year ending December 31, 2022;

(F) 10.65% cumulative persisting annual savings for the year ending December 31, 2023;

(G) 11.325% cumulative persisting annual savings for the year ending December 31, 2024;

(H) 12% cumulative persisting annual savings for the year ending December 31, 2025;

(I) 12.6% cumulative persisting annual savings for the year ending December 31, 2026;

(J) 13.2% cumulative persisting annual savings for the year ending December 31, 2027;

(K) 13.8% cumulative persisting annual savings for the year ending December 31, 2028;

(L) 14.4% cumulative persisting annual savings for the year ending December 31, 2029; and

(M) 15% cumulative persisting annual savings for the year ending December 31, 2030."; and

on page 112, by replacing lines 25 and 26 with the following:

"(b-10) Each electric utility subject to this Section that serves more than 3,000,000 retail customers in the State and each electric utility subject to this Section that serves 3,000,000 or less but more than 500,000 retail customers in the State shall include"; and

on page 113, by replacing lines 9 through 13 with the following:

"provisions of Article IX or Section 16-108.5 of this Act.

Within 270 days of the effective date of this amendatory Act of the 99th General Assembly, an electric utility that serves 3,000,000 retail customers or less but more than 500,000 retail customers in the State shall file a plan with the Commission that identifies the cost-effective voltage optimization investment the electric utility plans to spend through December 31, 2024. The Commission, after hearing, shall approve or approve with modification the plan within 120 days of the filing of the plan and, in the Final Order approving or approving with modification the plan, the Commission shall adjust the applicable persistent cumulative savings goals set forth in paragraph (2) of subsection (b-6) to reflect any amount of cost-effective energy savings approved by the Commission that is greater than or less than the following cumulative persistent savings values attributable to voltage optimization for the applicable year:

(1) 0.0% of persistent savings in 2018;

(2) 0.17% of persistent savings in 2019;

(3) 0.17% of persistent savings in 2020;

(4) 0.33% of persistent savings in 2021;

(5) 0.5% of persistent savings in 2022;

(6) 0.67% of persistent savings in 2023;

(7) 0.83% of persistent savings in 2024; and

(8) 1.0% of persistent savings in 2025.

For purposes of this Section, the measure life of voltage optimization measures shall be 15 years. The measure life period is independent of the depreciation rate of the voltage optimization assets deployed."; and

on page 113, line 21, by replacing "(b)" with "(b-5) or (b-6)"; and

on page 113, line 26, after the period, by inserting "An electric utility subject to this Section that serves 3,000,000 retail customers or less but more than 500,000 retail customers in this State and that is affiliated with a gas utility subject to Section 8-104 of this Act may count the kWh equivalent of all natural gas savings in excess of the gas utility's Commission-approved natural gas savings goals, provided, however, that the maximum amount of the kWh equivalent counted towards the annual savings goals calculated pursuant to subsection (b-6) shall be 30%."; and

on page 114, line 2, after "(b-10)", by inserting "and an electric utility that is affiliated with a gas utility for purposes of paragraph (6) of subsection (f) of Section 8-104 of this Act may recover the costs of offering any dual fuel energy efficiency measures pursuant to this Section."; and

on page 114, line 5, after "8-104", by inserting "or not offered with an affiliated gas utility for purposes of paragraph (6) of subsection (f) of Section 8-104 of this Act pursuant to an integrated plan approved under this Section and Section 8-104 of this Act"; and

on page 114, by replacing line 15 with "implementation. For electric utilities that serve more than 3,000,000 retail customers a minimum of 10%, and for electric utilities that serve 3,000,000 or less but more than 500,000 retail customers a minimum of 7%, of the entire portfolio funding level"; and

on page 115, line 1, after "year", by inserting "for electric utilities that serve more than 3,000,000 retail customers and $16,700,000 per year for electric utilities that serve 3,000,000 or less but more than 500,000 retail customers"; and

on page 115, line 4, after "for", by inserting "electric utilities that serve more than 3,000,000 retail customers, and 9,766,081 kilowatt-hours per year for electric utilities that serve 3,000,000 or less but more than 500,000 retail customers for"; and

on page 116, line 16, by replacing "A" with "Notwithstanding any other provision of law to the contrary, a"; and

on page 116, line 18, after "recover", by inserting "all reasonable and prudently incurred"; and

on page 127, line 8, by replacing "expenses" with "expenditures"; and

on page 127, line 8, after "Section", by inserting ", including, but not limited to, any expenditures incurred above the funding level set by subsection (f) of this Section for a calendar year,"; and

on page 127, line 9, by replacing "expenses" with "expenditures"; and

on page 128, line 6, by replacing "subsection (b)" with "subsections (b) and (b-6)"; and

on page 129, line 11, after "Section", by inserting "or in subparagraphs (A) through (D) of paragraph (2) of subsection (b-6) of this Section"; and

on page 129, line 19, after "Section", by inserting "or in subparagraphs (E) through (H) of paragraph (2) of subsection (b-6) of this Section"; and

on page 130, line 1, after "Section", by inserting "or in subparagraphs (I) through (M) of paragraph (2) of subsection (b-6) of this Section"; and

on page 130, immediately below line 8, by inserting the following:

"Notwithstanding the cumulative persisting annual savings goals specified in paragraph (2) of subsection (b-6), as modified by subsection (b-10) and subsection (f) of this Section, for an electric utility that serves 3,000,000 retail customers or less but more than 500,000 retail customers, the plan filed pursuant to this subsection (f) shall limit funding in each year of the plan such that the revenue requirement associated with the energy efficiency recovery mechanism set forth in subsection (d) does not exceed 15% of the electric utility's delivery services revenue requirement, including any reconciliation balance associated with the delivery services requirement, in effect on January 1 of the year of the filing of the plan with the Commission.

For purposes of this subsection (f), the revenue requirement associated with the energy efficiency recovery mechanism shall be the energy efficiency revenue requirement approved by the Commission pursuant to paragraph (3) of subsection (d) of this Section, including any over-collection or under-collection indicated by a reconciliation of a prior year and any interest applied as a result of such over-collection or under-collection."; and

on page 131, immediately below line 5, by inserting the following:

"For an electric utility that serves 3,000,000 or less but more than 500,000 retail customers, the Commission approved plan shall include funding levels that are consistent with the 15% of the delivery services revenue requirement limitation set forth in this subsection (f)."; and

on page 135, line 1, by replacing "subsection (b) of" with "subsection (b) or (b-6) of this Section, as modified by the Commission pursuant to"; and

on page 135, line 13, by replacing "subsection (b) of" with "subsection (b) or (b-6) of this Section, as modified by the Commission pursuant to"; and

on page 136, immediately below line 3, by inserting the following:

"Notwithstanding subparagraph (A) and (B) of paragraph (2) of this subsection (g), an electric utility that serves 3,000,000 retail customers or less but more than 500,000 retail customers in the State that does not meet the cumulative persisting annual savings goal set forth in paragraph (2) of subsection (b-6) for a calendar year, but whose revenue requirement associated with the energy efficiency recovery mechanism in effect during the calendar year is in excess of 14.5% of the delivery services revenue requirement, including any reconciliation balance associated with the delivery services requirement, in effect on January 1 of the year of the filing of the plan with the Commission shall be deemed compliant with this Section and have an adjustment equal to zero made to its return on equity component of the utility's weighted average cost of capital calculated pursuant to subsection (d) for that calendar year."; and

on page 136, line 10, after "(b-5)", by inserting "or (b-6)"; and

on page 139, line 12, by replacing "expenses" with "expenditures"; and

on page 166, by replacing lines 12 through 22 with the following:

"(220 ILCS 5/9-106 new)

Sec. 9-106. Revenue regulation. Beginning on January 1, 2018, an electric utility that has a performance-based formula rate in effect pursuant to Section 16-108.5 of this Act shall be permitted to revise the formula rate and schedules to reduce the 50 basis point values to zero that would otherwise apply under paragraph (5) of subsection (c) of Section 16-108.5 of this Act. If the utility no longer has a performance-based formula rate in effect pursuant to Section 16-108.5 of this Act, then the utility shall be permitted to implement the revenue balancing adjustment tariff described in Section 9-107 of this Act. Notwithstanding any provision of this Act to the contrary, to the extent the utility has not elected or is not yet eligible to recover its cost of providing delivery services pursuant to subsection (b) of Section 9-105, the limit on the amount of the delivery services revenue requirement that may be recovered from such customers through the customer charge defined in paragraph (1) of subsection (c) of Section 9-105 shall apply beginning January 1, 2018, concurrent with the effective date of the revisions to the formula rate and schedules to reduce the 50 basis point values to zero that would have otherwise applied under paragraph (5) of subsection (c) of Section 16-108.5 of this Act permitted by this Section."; and

on page 167, by replacing lines 14 and 15 with the following:

"(b) An electric utility that is authorized under Section 9-106 of this Act to implement"; and

on page 207, by replacing lines 14 through 16, with the following:

"(i) Within 30 days of Commission approval, or approval on rehearing, whichever is later, of a tariff filed pursuant to subsection (b) of this Section, each electric utility with net metering customers on the effective date of this amendatory Act of the 99th General Assembly"; and

on page 220, immediately below line 1, by inserting the following:

"(l) A utility that has terminated any contract providing for the purchase of zero emissions credits pursuant to subsection (d-5) of Section 1-75 of the Illinois Power Agency Act shall be entitled to recover any remaining balance associated with the purchase of credits prior to termination and shall also be obligated to refund or credit to customers any pending over-recoveries as applicable.".