| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
1 | AN ACT concerning regulation.
| ||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||
4 | Section 1. Short title. This Act may be cited as the Public | ||||||||||||||||||||||||
5 | Utilities Intervenor Compensation Act. | ||||||||||||||||||||||||
6 | Section 5. Findings. The General Assembly finds that: | ||||||||||||||||||||||||
7 | (1) public participation is an important consideration | ||||||||||||||||||||||||
8 | in Illinois Commerce Commission proceedings; | ||||||||||||||||||||||||
9 | (2) public stakeholders face financial challenges in | ||||||||||||||||||||||||
10 | participating at Illinois Commerce Commission proceedings, | ||||||||||||||||||||||||
11 | including retaining legal representation and expert | ||||||||||||||||||||||||
12 | witnesses; | ||||||||||||||||||||||||
13 | (3) it is in the public interest to reduce barriers to | ||||||||||||||||||||||||
14 | participation in Illinois Commerce Commission proceedings, | ||||||||||||||||||||||||
15 | particularly for environmental justice and other public | ||||||||||||||||||||||||
16 | interest organizations; | ||||||||||||||||||||||||
17 | (4) provision of compensation for participating | ||||||||||||||||||||||||
18 | organizations will improve Illinois Commerce Commission | ||||||||||||||||||||||||
19 | proceedings and decisions, increase public engagement, and | ||||||||||||||||||||||||
20 | encourage additional transparency. | ||||||||||||||||||||||||
21 | Section 10. Definitions. As used in this Act: | ||||||||||||||||||||||||
22 | "Commission" means the Illinois Commerce Commission. |
| |||||||
| |||||||
1 | "Compensation" means payment for all or part, as | ||||||
2 | determined by the Commission, of reasonable advocate's fees, | ||||||
3 | reasonable expert witness fees, and other reasonable costs of | ||||||
4 | preparation for and participation in a proceeding, and | ||||||
5 | includes the fees and costs of obtaining an award under this | ||||||
6 | Article and of obtaining judicial review, if any. | ||||||
7 | "Contribution" means that the customer's presentation has | ||||||
8 | met the following standard: | ||||||
9 | (1) For any customer, the presentation has assisted | ||||||
10 | the Commission in the making of its order or decision | ||||||
11 | because the order or decision has adopted in whole or in | ||||||
12 | part one or more factual contentions, legal contentions, | ||||||
13 | or specific policy or procedural recommendations presented | ||||||
14 | by the customer. For any customer, where the customer's | ||||||
15 | participation has resulted in a contribution, even if the | ||||||
16 | decision adopts that customer's contention or | ||||||
17 | recommendations only in part, the Commission may award the | ||||||
18 | customer compensation for all reasonable advocate's fees, | ||||||
19 | reasonable expert fees, and other reasonable costs | ||||||
20 | incurred by the customer in preparing or presenting that | ||||||
21 | contention or recommendation. Participation by any | ||||||
22 | customer that materially supplements, complements, or | ||||||
23 | contributes to the presentation of another party, | ||||||
24 | including the Commission staff, that makes a contribution | ||||||
25 | to a Commission order or decision is fully eligible for | ||||||
26 | compensation. |
| |||||||
| |||||||
1 | (2) For customers with fewer than 3 attorneys on | ||||||
2 | staff, the customer introduces a relevant argument or | ||||||
3 | factual evidence into the docket, garners a response from | ||||||
4 | another party to the proceeding, and files briefs. | ||||||
5 | (3) For customers without attorneys on staff, the | ||||||
6 | customer introduces a relevant argument or factual | ||||||
7 | evidence into the docket. | ||||||
8 | "Customer" means any of the following: | ||||||
9 | (1) A participant representing consumers, customers, | ||||||
10 | or subscribers of any electrical, gas, telephone, or water | ||||||
11 | corporation that is subject to the jurisdiction of the | ||||||
12 | Commission. | ||||||
13 | (2) A representative who has been authorized by a | ||||||
14 | customer. | ||||||
15 | (3) A representative of a group or organization | ||||||
16 | authorized pursuant to its articles of incorporation or | ||||||
17 | bylaws to represent the interests of residential | ||||||
18 | customers, or to represent small commercial customers who | ||||||
19 | receive bundled electric service from an electrical | ||||||
20 | corporation. | ||||||
21 | (4) an organization representing environmental justice | ||||||
22 | communities. | ||||||
23 | "Customer" does not include any state, federal, or local | ||||||
24 | governmental agency, or any publicly owned public utility. | ||||||
25 | "Customer" must be a nonprofit organization. | ||||||
26 | "Environmental justice communities" means the definition |
| |||||||
| |||||||
1 | of that term based on existing methodologies and findings, | ||||||
2 | used and as may be updated by the Illinois Power Agency and its | ||||||
3 | program administrator in the Illinois Solar for All Program. | ||||||
4 | "Expert witness fees" means recorded or billed costs | ||||||
5 | incurred by a customer for an expert witness. | ||||||
6 | "Other reasonable costs" means reasonable out-of-pocket | ||||||
7 | expenses directly incurred by a customer that are directly | ||||||
8 | related to the contentions or recommendations made by the | ||||||
9 | customer that resulted in a contribution. | ||||||
10 | "Party" means any interested party, respondent public | ||||||
11 | utility, or Commission staff in a hearing or proceeding. | ||||||
12 | "Public utility" has the meaning ascribed to it in the | ||||||
13 | Public Utilities Act. | ||||||
14 | "Significant financial hardship" means either that the | ||||||
15 | customer cannot afford, without undue hardship, to pay the | ||||||
16 | costs of effective participation, including advocate's fees, | ||||||
17 | expert witness fees, and other reasonable costs of | ||||||
18 | participation, or that, in the case of a group or | ||||||
19 | organization, the economic interest of the individual members | ||||||
20 | of the group or organization is small in comparison to the | ||||||
21 | costs of effective participation in the proceeding. | ||||||
22 | Section 15. Intervenor compensation awards. The Commission | ||||||
23 | shall award reasonable advocate's fees, reasonable expert | ||||||
24 | witness fees, and other reasonable costs of preparation for | ||||||
25 | and participation in a hearing or proceeding to any customer |
| |||||||
| |||||||
1 | that complies with the procedures in Section 20 and satisfies | ||||||
2 | both of the following requirements: | ||||||
3 | (1) The customer's presentation makes a contribution | ||||||
4 | to the adoption, in whole or in part, of the Commission's | ||||||
5 | order or decision, as described in subsection (b) of | ||||||
6 | Section 20; and | ||||||
7 | (2) Participation or intervention without an award of | ||||||
8 | fees or costs imposes a significant financial hardship. | ||||||
9 | Section 20. Intervenor compensation award procedures. | ||||||
10 | (a)(1) A customer that intends to seek an award under this | ||||||
11 | Article shall, within 30 days after the prehearing conference | ||||||
12 | is held, file and serve on all parties to the proceeding a | ||||||
13 | notice of intent to claim compensation. The Commission shall | ||||||
14 | determine the procedure to be used in cases in which: | ||||||
15 | (i) no prehearing conference is scheduled; | ||||||
16 | (ii) the Commission anticipates that the proceeding | ||||||
17 | will take less than 30 days; | ||||||
18 | (iii) the schedule would not reasonably allow parties | ||||||
19 | to identify issues within the time frame set forth in this | ||||||
20 | subsection; or | ||||||
21 | (iv) where new issues emerge after the time set for | ||||||
22 | filing. | ||||||
23 | (2)(i) The notice of intent to claim compensation shall | ||||||
24 | include both of the following: | ||||||
25 | (A) A statement of the nature and extent of the |
| |||||||
| |||||||
1 | customer's planned participation in the proceeding as far | ||||||
2 | as it is possible to set it out when the notice of intent | ||||||
3 | is filed. | ||||||
4 | (B) An itemized estimate of the compensation that the | ||||||
5 | customer expects to request, given the likely duration of | ||||||
6 | the proceeding as it appears at the time. | ||||||
7 | (ii) The notice of intent may also include a showing by the | ||||||
8 | customer that participation in the hearing or proceeding would | ||||||
9 | pose a significant financial hardship. Alternatively, such a | ||||||
10 | showing shall be included in the request submitted pursuant to | ||||||
11 | subsection (c). | ||||||
12 | (3) Within 15 days after service of the notice of intent to | ||||||
13 | claim compensation, the administrative law judge may direct | ||||||
14 | the staff, and may permit any other interested party, to file a | ||||||
15 | statement responding to the notice. | ||||||
16 | (b)(1) If the customer's showing of significant financial | ||||||
17 | hardship was included in the notice filed pursuant to | ||||||
18 | subsection (a), the administrative law judge shall issue | ||||||
19 | within 30 days thereafter a preliminary ruling addressing | ||||||
20 | whether the customer is eligible for an award of compensation. | ||||||
21 | The ruling shall address whether a showing of significant | ||||||
22 | financial hardship has been made. A finding of significant | ||||||
23 | financial hardship shall create a rebuttable presumption of | ||||||
24 | eligibility for compensation in other Commission proceedings | ||||||
25 | commencing within 2 years after the date of that finding. | ||||||
26 | (2) The administrative law judge may, in any event, issue |
| |||||||
| |||||||
1 | a ruling addressing issues raised by the notice of intent to | ||||||
2 | claim compensation. The ruling may point out similar | ||||||
3 | positions, areas of potential duplication in showings, | ||||||
4 | unrealistic expectation for compensation, and any other matter | ||||||
5 | that may affect the customer's ultimate claim for | ||||||
6 | compensation. Failure of the ruling to point out similar | ||||||
7 | positions or potential duplication or any other potential | ||||||
8 | impact on the ultimate claim for compensation shall not imply | ||||||
9 | approval of any claim for compensation. A finding of | ||||||
10 | significant financial hardship in no way ensures compensation. | ||||||
11 | Similarly, the failure of the customer to identify a specific | ||||||
12 | issue in the notice of intent or to precisely estimate | ||||||
13 | potential compensation shall not preclude an award of | ||||||
14 | reasonable compensation if a contribution is made. | ||||||
15 | (c) Following issuance of a final order or decision by the | ||||||
16 | Commission in the hearing or proceeding, a customer that has | ||||||
17 | been found, pursuant to subsection (b), to be eligible for an | ||||||
18 | award of compensation may file within 60 days a request for an | ||||||
19 | award. The request shall include at a minimum a detailed | ||||||
20 | description of services and expenditures and a description of | ||||||
21 | the customer's contribution to the hearing or proceeding. | ||||||
22 | Within 30 days after service of the request, the Commission | ||||||
23 | staff may file, and any other party may file, a response to the | ||||||
24 | request. | ||||||
25 | (d) The Commission may audit the records and books of the | ||||||
26 | customer to the extent necessary to verify the basis for the |
| |||||||
| |||||||
1 | award. The Commission shall preserve the confidentiality of | ||||||
2 | the customer's records in making its audit. Within 20 days | ||||||
3 | after completion of the audit, if any, the Commission shall | ||||||
4 | direct that an audit report shall be prepared and filed. Any | ||||||
5 | other party may file a response to the audit report within 20 | ||||||
6 | days thereafter. | ||||||
7 | (e) Within 75 days after the filing of a request for | ||||||
8 | compensation pursuant to subsection (c), or within 50 days | ||||||
9 | after the filing of an audit report, whichever occurs later, | ||||||
10 | the Commission shall issue a decision that determines whether | ||||||
11 | or not the customer has made a contribution to the final order | ||||||
12 | or decision in the hearing or proceeding. If the Commission | ||||||
13 | finds that the customer requesting compensation has made a | ||||||
14 | contribution, the Commission shall describe this contribution | ||||||
15 | and shall determine the amount of compensation to be paid. | ||||||
16 | Section 25. Calculation of intervenor compensation awards. | ||||||
17 | The computation of compensation awarded shall take into | ||||||
18 | consideration the market rates paid to persons of comparable | ||||||
19 | training and experience who offer similar services. The | ||||||
20 | compensation awarded may not exceed the comparable market rate | ||||||
21 | for services paid by the Commission or the public utility, | ||||||
22 | whichever is greater, to persons of comparable training and | ||||||
23 | experience who are offering similar services. | ||||||
24 | Section 30. Intervenor compensation payments and cost |
| |||||||
| |||||||
1 | recovery. An award made under this Act shall be paid by the | ||||||
2 | public utility that is the subject of the hearing, | ||||||
3 | investigation, or proceeding, as determined by the Commission, | ||||||
4 | within 30 days. Notwithstanding any other law, an award paid | ||||||
5 | by a public utility pursuant to this Act shall be allowed by | ||||||
6 | the Commission as an expense for the purpose of establishing | ||||||
7 | rates of the public utility. | ||||||
8 | Section 35. Denial of intervenor compensation payments. | ||||||
9 | The Commission shall deny any award to any customer that | ||||||
10 | attempts to delay or obstruct the orderly and timely | ||||||
11 | fulfillment of the Commission's responsibilities. | ||||||
12 | Section 40. Illinois Commerce Commission Intervenor | ||||||
13 | Compensation Fund. The Illinois Commerce Commission Intervenor | ||||||
14 | Compensation Fund is hereby created as a special fund in the | ||||||
15 | State treasury. The Commission shall administer the Illinois | ||||||
16 | Commerce Commission Intervenor Compensation Fund for use as | ||||||
17 | described in Section 45. An electric public utility with | ||||||
18 | 3,000,000 or more retail customers shall contribute $450,000 | ||||||
19 | to the Illinois Commerce Commission Intervenor Compensation | ||||||
20 | Fund within 60 days after the effective date of this Act. A | ||||||
21 | combined electric and gas public utility serving fewer than | ||||||
22 | 3,000,000 but more than 500,000 retail customers shall | ||||||
23 | contribute $225,000 to the Illinois Commerce Commission | ||||||
24 | Intervenor Compensation Fund within 60 days after the |
| |||||||
| |||||||
1 | effective date of this Act. A gas public utility with | ||||||
2 | 2,000,000 or more retail customers that is not a combined | ||||||
3 | electric and gas public utility shall contribute $225,000 to | ||||||
4 | the Illinois Commerce Commission Intervenor Compensation Fund | ||||||
5 | within 60 days after the effective date of this Act. A gas | ||||||
6 | public utility with fewer than 2,000,000 retail customers but | ||||||
7 | more than 300,000 retail customers that is not a combined | ||||||
8 | electric and gas public utility shall contribute $80,000 to | ||||||
9 | the Illinois Commerce Commission Intervenor Compensation Fund | ||||||
10 | within 60 days after the effective date of this Act. A gas | ||||||
11 | public utility with fewer than 300,000 retail customers that | ||||||
12 | is not a combined electric and gas public utility shall | ||||||
13 | contribute $20,000 to the Illinois Commerce Commission | ||||||
14 | Intervenor Compensation Fund within 60 days after the | ||||||
15 | effective date of this Act. | ||||||
16 | Section 45. Intervenor compensation pre-proceeding grants. | ||||||
17 | (a) Any customer that applies for intervenor compensation | ||||||
18 | payments under subsection (a) of Section 20 may also, at the | ||||||
19 | same time, apply for a grant from the Illinois Commerce | ||||||
20 | Commission Intervenor Compensation Fund for the costs | ||||||
21 | described in its notice of intent to claim compensation. A | ||||||
22 | final decision regarding the grant shall be made at the time of | ||||||
23 | the preliminary ruling on intervenor compensation eligibility | ||||||
24 | in subsection (b) of Section 20. No pre-proceeding grant shall | ||||||
25 | be given to organizations who are not found to be eligible for |
| |||||||
| |||||||
1 | intervenor compensation. If granted, payments must be made | ||||||
2 | within 30 days to facilitate participation in the proceeding. | ||||||
3 | At the time of the final decision regarding the grant, the | ||||||
4 | Commission shall notify the customer of the requirements to be | ||||||
5 | awarded intervenor compensation and that, if the customer does | ||||||
6 | not prevail in receiving intervenor compensation of at least | ||||||
7 | the amount of the grant, the customer will be expected to | ||||||
8 | reimburse the Illinois Commerce Commission Intervenor | ||||||
9 | Compensation Fund for the remaining grant moneys on a regular | ||||||
10 | schedule within 5 years of the end of the proceeding. After | ||||||
11 | notification, the customer may accept or deny receipt of the | ||||||
12 | grant. | ||||||
13 | (b) To apply for a grant from the Illinois Commerce | ||||||
14 | Commission Intervenor Compensation Fund, the customer must | ||||||
15 | describe why prepayment of intervenor compensation is | ||||||
16 | necessary for it to participate in the proceeding and show | ||||||
17 | financial hardship sufficient that the customer cannot | ||||||
18 | reasonably be expected to participate without receiving a | ||||||
19 | grant. | ||||||
20 | (c) If a customer that receives a grant from the Illinois | ||||||
21 | Commerce Commission Intervenor Compensation Fund subsequently | ||||||
22 | prevails in receiving intervenor compensation, the public | ||||||
23 | utility paying intervenor compensation must reimburse the fund | ||||||
24 | for the amount of the grant. If the intervenor compensation | ||||||
25 | amount is larger than the grant, then the balance shall be paid | ||||||
26 | to the customer. If the amount of intervenor compensation is |
| |||||||
| |||||||
1 | less than the grant, then the customer must reimburse the | ||||||
2 | Illinois Commerce Commission Intervenor Compensation Fund for | ||||||
3 | the difference with payments made on a regular schedule within | ||||||
4 | 5 years after the end of the proceeding. | ||||||
5 | (d) If a customer that receives a grant from the Illinois | ||||||
6 | Commerce Commission Intervenor Compensation Fund does not | ||||||
7 | subsequently prevail in receiving intervenor compensation, | ||||||
8 | then the customer must reimburse the Illinois Commerce | ||||||
9 | Commission Intervenor Compensation Fund for the amount of the | ||||||
10 | grant with payments made on a regular schedule within 5 years | ||||||
11 | of the end of the proceeding. | ||||||
12 | Section 50. Rulemaking. The Commission shall adopt any | ||||||
13 | rules necessary to implement this Act. The Commission has the | ||||||
14 | authority to initiate an emergency rulemaking to adopt rules | ||||||
15 | regarding intervenor compensation if necessary to allow | ||||||
16 | customer participation in dockets implementing new statutes.
| ||||||
17 | Section 80. The Illinois Administrative Procedure Act is | ||||||
18 | amended by adding Section 5-45.8 as follows: | ||||||
19 | (5 ILCS 100/5-45.8 new) | ||||||
20 | Sec. 5-45.8. Emergency rulemaking; Public Utilities | ||||||
21 | Intervenor Compensation Act. To provide for the expeditious | ||||||
22 | and timely implementation of the Public Utilities Intervenor | ||||||
23 | Compensation Act, emergency rules may be adopted in accordance |
| |||||||
| |||||||
1 | with Section 5-45 by the Illinois Commerce Commission to | ||||||
2 | implement the Public Utilities Intervenor Compensation Act. | ||||||
3 | The adoption of emergency rules authorized by Section 5-45 and | ||||||
4 | this Section is deemed to be necessary for the public | ||||||
5 | interest, safety, and welfare. | ||||||
6 | This Section is repealed on January 1, 2027. | ||||||
7 | Section 85. The State Finance Act is amended by adding | ||||||
8 | Section 5.935 as follows: | ||||||
9 | (30 ILCS 105/5.935 new) | ||||||
10 | Sec. 5.935. The Illinois Commerce Commission Intervenor | ||||||
11 | Compensation Fund. | ||||||
12 | Section 90. The Public Utilities Act is amended by | ||||||
13 | changing Sections 2-107, 9-220.3, 9-227, and 10-104 and by | ||||||
14 | adding Sections 4-605, 16-105.17, 16-107.7, and 16-108.18 as | ||||||
15 | follows:
| ||||||
16 | (220 ILCS 5/2-107) (from Ch. 111 2/3, par. 2-107)
| ||||||
17 | Sec. 2-107. The office of the Commission shall be in | ||||||
18 | Springfield, but
the Commission may, with the approval of the | ||||||
19 | Governor, establish and
maintain branch offices at places | ||||||
20 | other than the seat of government.
Such office shall be open | ||||||
21 | for business between the hours of 8:30 a.m.
and 5:00 p.m. | ||||||
22 | throughout the year, and one or more responsible persons
to be |
| |||||||
| |||||||
1 | designated by the executive director shall be on duty
at all | ||||||
2 | times in immediate charge thereof.
| ||||||
3 | The Commission shall hold stated meetings at least once a | ||||||
4 | month and
may hold such special meetings as it may deem | ||||||
5 | necessary at any place
within the State. At each regular and | ||||||
6 | special meeting that is open to the public, members of the | ||||||
7 | public shall be afforded time, subject to reasonable | ||||||
8 | constraints, to make comments to or to ask questions of the | ||||||
9 | Commission. In any contested or rulemaking proceeding, at the | ||||||
10 | request of any party or at least 5 members of the public, the | ||||||
11 | Commission shall hold at least one public hearing, at a time | ||||||
12 | and place accessible and convenient for affected customers to | ||||||
13 | participate, where members of the public are invited to | ||||||
14 | participate and present public comments in accordance with 2 | ||||||
15 | Ill. Adm. Code 1700.10. The hearing must take place at least 30 | ||||||
16 | days prior to the Commission's final order on the case. | ||||||
17 | The Commission shall provide a web site and a toll-free | ||||||
18 | telephone number to accept comments from Illinois residents | ||||||
19 | regarding any matter under the auspices of the Commission or | ||||||
20 | before the Commission. The Commission staff shall report, in a | ||||||
21 | manner established by the Commission that is consistent with | ||||||
22 | the Commission's rules regarding ex parte communications, to | ||||||
23 | the full Commission comments and suggestions received through | ||||||
24 | both venues before all relevant votes of the Commission.
| ||||||
25 | The Commission may, for the authentication of its records, | ||||||
26 | process
and proceedings, adopt, keep and use a common seal, of |
| |||||||
| |||||||
1 | which seal
judicial notice shall be taken in all courts of this | ||||||
2 | State; and any
process, notice, order or other paper which the | ||||||
3 | Commission may be
authorized by law to issue shall be deemed | ||||||
4 | sufficient if signed and
certified by the Chairman of the | ||||||
5 | Commission or his or her designee, either
by hand or by | ||||||
6 | facsimile, and with such
seal attached; and all acts, orders, | ||||||
7 | proceedings, rules, entries,
minutes, schedules and records of | ||||||
8 | the Commission, and all reports and
documents filed with the | ||||||
9 | Commission, may be proved in any court of this
State by a copy | ||||||
10 | thereof, certified to by the Chairman of the
Commission, with | ||||||
11 | the seal of the Commission attached. | ||||||
12 | Notwithstanding any other provision of this Section, the | ||||||
13 | Commission's established procedures for accepting testimony | ||||||
14 | from Illinois residents on matters pending before the | ||||||
15 | Commission shall be consistent with the Commission's rules | ||||||
16 | regarding ex parte communications and due process.
| ||||||
17 | (Source: P.A. 95-127, eff. 8-13-07.)
| ||||||
18 | (220 ILCS 5/4-605 new) | ||||||
19 | Sec. 4-605. Restitution for misconduct. | ||||||
20 | (a) It is the policy of this State that public utility | ||||||
21 | ethical and criminal misconduct shall not be tolerated. The | ||||||
22 | General Assembly finds it necessary to collect restitution, to | ||||||
23 | be distributed as described in subsection (d), from a public | ||||||
24 | utility who has been found guilty of violations of criminal | ||||||
25 | law or who has entered into a Deferred Prosecution Agreement |
| |||||||
| |||||||
1 | that details violations of criminal law. | ||||||
2 | (b) In light of such violations, the Illinois Commerce | ||||||
3 | Commission shall, within 150 days after the effective date of | ||||||
4 | this amendatory Act of the 102nd General Assembly, initiate an | ||||||
5 | investigation into amounts necessary to be refunded to | ||||||
6 | customers to restore funds to the State and to ratepayers that | ||||||
7 | were collected by the electric public utility Commonwealth | ||||||
8 | Edison Company as a result of ethical misconduct. The | ||||||
9 | investigation shall conclude no later than 270 days following | ||||||
10 | initiation, and shall be conducted as a contested proceeding. | ||||||
11 | The investigation shall calculate benefits received by the | ||||||
12 | public utility that were instituted as a result of illegal and | ||||||
13 | unethical conduct, as set forth in the Deferred Prosecution | ||||||
14 | Agreement of July 16, 2020 between the United States Attorney | ||||||
15 | for the Northern District of Illinois and Commonwealth Edison | ||||||
16 | Company, for passage of the Energy Infrastructure | ||||||
17 | Modernization Act of 2011. The amount shall be no less than the | ||||||
18 | total return on equity recovered for investments in | ||||||
19 | infrastructure made pursuant to paragraph (1) of subsection | ||||||
20 | (b) of Section 16-108.5 of this Act. | ||||||
21 | (c) Pursuant to subsection (d), the investigation shall | ||||||
22 | calculate a schedule for remittance to state funds and to | ||||||
23 | ratepayers, over a period of no more than 4 years, to be paid | ||||||
24 | by the public utility from profits, returns, or shareholder | ||||||
25 | dollars. No costs related to the investigation, restitution, | ||||||
26 | or refunds may be recoverable through rates. |
| |||||||
| |||||||
1 | (d) Funds collected pursuant to this Section shall be | ||||||
2 | repaid by the public utility
in the following manner: | ||||||
3 | (1) 25% shall be contributed to expand the Percentage | ||||||
4 | of Income Payment Program; | ||||||
5 | (2) the remaining percentage of funds collected shall | ||||||
6 | be provided as a per-kilowatt-hour credit to the public | ||||||
7 | utility's ratepayers. | ||||||
8 | (220 ILCS 5/9-220.3) | ||||||
9 | (Section scheduled to be repealed on December 31, 2023) | ||||||
10 | Sec. 9-220.3. Natural gas surcharges authorized. | ||||||
11 | (a) Tariff. | ||||||
12 | (1) Pursuant to Section 9-201 of this Act, a natural | ||||||
13 | gas utility serving more than 700,000 customers may file a | ||||||
14 | tariff for a surcharge which adjusts rates and charges to | ||||||
15 | provide for recovery of costs associated with investments | ||||||
16 | in qualifying infrastructure plant, independent of any | ||||||
17 | other matters related to the utility's revenue | ||||||
18 | requirement. | ||||||
19 | (2) Within 30 days after the effective date of this | ||||||
20 | amendatory Act of the 98th General Assembly, the | ||||||
21 | Commission shall adopt emergency rules to implement the | ||||||
22 | provisions of this amendatory Act of the 98th General | ||||||
23 | Assembly. The utility may file with the Commission tariffs | ||||||
24 | implementing the provisions of this amendatory Act of the | ||||||
25 | 98th General Assembly after the effective date of the |
| |||||||
| |||||||
1 | emergency rules authorized by subsection (i). | ||||||
2 | (3) The Commission shall issue an order approving, or | ||||||
3 | approving with modification to ensure compliance with this | ||||||
4 | Section, the tariff no later than 120 days after such | ||||||
5 | filing of the tariffs filed pursuant to this Section. The | ||||||
6 | utility shall have 7 days following the date of service of | ||||||
7 | the order to notify the Commission in writing whether it | ||||||
8 | will accept any modifications so identified in the order | ||||||
9 | or whether it has elected not to proceed with the tariff. | ||||||
10 | If the order includes no modifications or if the utility | ||||||
11 | notifies the Commission that it will accept such | ||||||
12 | modifications, the tariff shall take effect on the first | ||||||
13 | day of the calendar year in which the Commission issues | ||||||
14 | the order, subject to petitions for rehearing and | ||||||
15 | appellate procedures. After the tariff takes effect, the | ||||||
16 | utility may, upon 10 days' notice to the Commission, file | ||||||
17 | to withdraw the tariff at any time, and the Commission | ||||||
18 | shall approve such filing without suspension or hearing, | ||||||
19 | subject to a final reconciliation as provided in | ||||||
20 | subsection (e) of this Section. | ||||||
21 | (4) When a natural gas utility withdraws the surcharge | ||||||
22 | tariff, the utility shall not recover any additional | ||||||
23 | charges through the surcharge approved pursuant to this | ||||||
24 | Section, subject to the resolution of the final | ||||||
25 | reconciliation pursuant to subsection (e) of this Section. | ||||||
26 | The utility's qualifying infrastructure investment net of |
| |||||||
| |||||||
1 | accumulated depreciation may be transferred to the natural | ||||||
2 | gas utility's rate base in the utility's next general rate | ||||||
3 | case. The utility's delivery base rates in effect upon | ||||||
4 | withdrawal of the surcharge tariff shall not be adjusted | ||||||
5 | at the time the surcharge tariff is withdrawn. | ||||||
6 | (5) A natural gas utility that is subject to its | ||||||
7 | delivery base rates being fixed at their current rates | ||||||
8 | pursuant to a Commission order entered in Docket No. | ||||||
9 | 11-0046, notwithstanding the effective date of its tariff | ||||||
10 | authorized pursuant to this Section, shall reflect in a | ||||||
11 | tariff surcharge only those projects placed in service | ||||||
12 | after the fixed rate period of the merger agreement has | ||||||
13 | expired by its terms. | ||||||
14 | (b) For purposes of this Section, "qualifying | ||||||
15 | infrastructure plant" includes only plant additions placed in | ||||||
16 | service not reflected in the rate base used to establish the | ||||||
17 | utility's delivery base rates. "Costs associated with | ||||||
18 | investments in qualifying infrastructure plant" shall include | ||||||
19 | a return on qualifying infrastructure plant and recovery of | ||||||
20 | depreciation and amortization expense on qualifying | ||||||
21 | infrastructure plant, net of the depreciation included in the | ||||||
22 | utility's base rates on any plant retired in conjunction with | ||||||
23 | the installation of the qualifying infrastructure plant. | ||||||
24 | Collectively the "qualifying infrastructure plant" and "costs | ||||||
25 | associated with investments in qualifying infrastructure | ||||||
26 | plant" are referred to as the "qualifying infrastructure |
| |||||||
| |||||||
1 | investment" and that are related to one or more of the | ||||||
2 | following: | ||||||
3 | (1) the installation of facilities to retire and | ||||||
4 | replace underground natural gas facilities, including | ||||||
5 | facilities appurtenant to facilities constructed of those | ||||||
6 | materials such as meters, regulators, and services, and | ||||||
7 | that are constructed of cast iron, wrought iron, ductile | ||||||
8 | iron, unprotected coated steel, unprotected bare steel, | ||||||
9 | mechanically coupled steel, copper, Cellulose Acetate | ||||||
10 | Butyrate (CAB) plastic, pre-1973 DuPont Aldyl "A" | ||||||
11 | polyethylene, PVC, or other types of materials identified | ||||||
12 | by a State or federal governmental agency as being prone | ||||||
13 | to leakage; | ||||||
14 | (2) the relocation of meters from inside customers' | ||||||
15 | facilities to outside; | ||||||
16 | (3) the upgrading of the gas distribution system from | ||||||
17 | a low pressure to a medium pressure system, including | ||||||
18 | installation of high-pressure facilities to support the | ||||||
19 | upgrade; | ||||||
20 | (4) modernization investments by a combination | ||||||
21 | utility, as defined in subsection (b) of Section 16-108.5 | ||||||
22 | of this Act, to install: | ||||||
23 | (A) advanced gas meters in connection with the | ||||||
24 | installation of advanced electric meters pursuant to | ||||||
25 | Sections 16-108.5 and 16-108.6 of this Act; and | ||||||
26 | (B) the communications hardware and software and |
| |||||||
| |||||||
1 | associated system software that creates a network | ||||||
2 | between advanced gas meters and utility business | ||||||
3 | systems and allows the collection and distribution of | ||||||
4 | gas-related information to customers and other parties | ||||||
5 | in addition to providing information to the utility | ||||||
6 | itself; | ||||||
7 | (5) replacing high-pressure transmission pipelines and | ||||||
8 | associated facilities identified as having a higher risk | ||||||
9 | of leakage or failure or installing or replacing | ||||||
10 | high-pressure transmission pipelines and associated | ||||||
11 | facilities to establish records and maximum allowable | ||||||
12 | operating pressures; | ||||||
13 | (6) replacing difficult to locate mains and service | ||||||
14 | pipes and associated facilities; and | ||||||
15 | (7) replacing or installing transmission and | ||||||
16 | distribution regulator stations, regulators, valves, and | ||||||
17 | associated facilities to establish over-pressure | ||||||
18 | protection. | ||||||
19 | With respect to the installation of the facilities | ||||||
20 | identified in paragraph (1) of subsection (b) of this Section, | ||||||
21 | the natural gas utility shall determine priorities for such | ||||||
22 | installation with consideration of projects either: (i) | ||||||
23 | integral to a general government public facilities improvement | ||||||
24 | program or (ii) ranked in the highest risk categories in the | ||||||
25 | utility's most recent Distribution Integrity Management Plan | ||||||
26 | where removal or replacement is the remedial measure. |
| |||||||
| |||||||
1 | (c) Qualifying infrastructure investment, defined in | ||||||
2 | subsection (b) of this Section, recoverable through a tariff | ||||||
3 | authorized by subsection (a) of this Section, shall not | ||||||
4 | include costs or expenses incurred in the ordinary course of | ||||||
5 | business for the ongoing or routine operations of the utility, | ||||||
6 | including, but not limited to: | ||||||
7 | (1) operating and maintenance costs; and | ||||||
8 | (2) costs of facilities that are revenue-producing, | ||||||
9 | which means facilities that are constructed or installed | ||||||
10 | for the purpose of serving new customers. | ||||||
11 | (d) Gas utility commitments. A natural gas utility that | ||||||
12 | has in effect a natural gas surcharge tariff pursuant to this | ||||||
13 | Section shall: | ||||||
14 | (1) recognize that the General Assembly identifies | ||||||
15 | improved public safety and reliability of natural gas | ||||||
16 | facilities as the cornerstone upon which this Section is | ||||||
17 | designed, and qualifying projects should be encouraged, | ||||||
18 | selected, and prioritized based on these factors; and | ||||||
19 | (2) provide information to the Commission as requested | ||||||
20 | to demonstrate that (i) the projects included in the | ||||||
21 | tariff are indeed qualifying projects and (ii) the | ||||||
22 | projects are selected and prioritized taking into account | ||||||
23 | improved public safety and reliability. | ||||||
24 | (3) The amount of qualifying infrastructure investment | ||||||
25 | eligible for recovery under the tariff in the applicable | ||||||
26 | calendar year is limited to the lesser of (i) the actual |
| |||||||
| |||||||
1 | qualifying infrastructure plant placed in service in the | ||||||
2 | applicable calendar year and (ii) the difference by which | ||||||
3 | total plant additions in the applicable calendar year | ||||||
4 | exceed the baseline amount, and subject to the limitation | ||||||
5 | in subsection (g) of this Section. A natural gas utility | ||||||
6 | can recover the costs of qualifying infrastructure | ||||||
7 | investments through an approved surcharge tariff from the | ||||||
8 | beginning of each calendar year subject to the | ||||||
9 | reconciliation initiated under paragraph (2) of subsection | ||||||
10 | (e) of this Section, during which the Commission may make | ||||||
11 | adjustments to ensure that the limits defined in this | ||||||
12 | paragraph are not exceeded. Further, if total plant | ||||||
13 | additions in a calendar year do not exceed the baseline | ||||||
14 | amount in the applicable calendar year, the Commission, | ||||||
15 | during the reconciliation initiated under paragraph (2) of | ||||||
16 | subsection (e) of this Section for the applicable calendar | ||||||
17 | year, shall adjust the amount of qualifying infrastructure | ||||||
18 | investment eligible for recovery under the tariff to zero. | ||||||
19 | (4) For purposes of this Section, "baseline amount" | ||||||
20 | means an amount equal to the utility's average of total | ||||||
21 | depreciation expense, as reported on page 336, column (b) | ||||||
22 | of the utility's ILCC Form 21, for the calendar years 2006 | ||||||
23 | through 2010. | ||||||
24 | (e) Review of investment. | ||||||
25 | (1) The amount of qualifying infrastructure investment | ||||||
26 | shall be shown on an Information Sheet supplemental to the |
| |||||||
| |||||||
1 | surcharge tariff and filed with the Commission monthly or | ||||||
2 | some other time period at the option of the utility. The | ||||||
3 | Information Sheet shall be accompanied by data showing the | ||||||
4 | calculation of the qualifying infrastructure investment | ||||||
5 | adjustment. Unless otherwise ordered by the Commission, | ||||||
6 | each qualifying infrastructure investment adjustment shown | ||||||
7 | on an Information Sheet shall become effective pursuant to | ||||||
8 | the utility's approved tariffs. | ||||||
9 | (2) For each calendar year in which a surcharge tariff | ||||||
10 | is in effect, the natural gas utility shall file a | ||||||
11 | petition with the Commission to initiate hearings to | ||||||
12 | reconcile amounts billed under each surcharge authorized | ||||||
13 | pursuant to this Section with the actual prudently | ||||||
14 | incurred costs recoverable under this tariff in the | ||||||
15 | preceding year. The petition filed by the natural gas | ||||||
16 | utility shall include testimony and schedules that support | ||||||
17 | the accuracy and the prudence of the qualifying | ||||||
18 | infrastructure investment for the calendar year being | ||||||
19 | reconciled. The petition filed shall also include the | ||||||
20 | number of jobs attributable to the natural gas surcharge | ||||||
21 | tariff as required by rule. The review of the utility's | ||||||
22 | investment shall include identification and review of all | ||||||
23 | plant that was ranked within the highest risk categories | ||||||
24 | in that utility's most recent Distribution Integrity | ||||||
25 | Management Plan. | ||||||
26 | (f) The rate of return applied shall be the overall rate of |
| |||||||
| |||||||
1 | return authorized by the Commission in the utility's last gas | ||||||
2 | rate case. | ||||||
3 | (g) The cumulative amount of increases billed under the | ||||||
4 | surcharge, since the utility's most recent delivery service | ||||||
5 | rate order, shall not exceed an annual average 4% of the | ||||||
6 | utility's delivery base rate revenues, but shall not exceed | ||||||
7 | 5.5% in any given year. On the effective date of new delivery | ||||||
8 | base rates, the surcharge shall be reduced to zero with | ||||||
9 | respect to qualifying infrastructure investment that is | ||||||
10 | transferred to the rate base used to establish the utility's | ||||||
11 | delivery base rates, provided that the utility may continue to | ||||||
12 | charge or refund any reconciliation adjustment determined | ||||||
13 | pursuant to subsection (e) of this Section. | ||||||
14 | (h) If a gas utility obtains a surcharge tariff under this | ||||||
15 | Section 9-220.3, then it and its affiliates are excused from | ||||||
16 | the rate case filing requirements contained in Sections | ||||||
17 | 9-220(h) and 9-220(h-1). In the event a natural gas utility, | ||||||
18 | prior to the effective date of this amendatory Act of the 98th | ||||||
19 | General Assembly, made a rate case filing that is still | ||||||
20 | pending on the effective date of this amendatory Act of the | ||||||
21 | 98th General Assembly, the natural gas utility may, at the | ||||||
22 | time it files its surcharge tariff with the Commission, also | ||||||
23 | file a notice with the Commission to withdraw its rate case | ||||||
24 | filing. Any affiliate of such natural gas utility may also | ||||||
25 | file to withdraw its rate case filing. Upon receipt of such | ||||||
26 | notice, the Commission shall dismiss the rate case filing with |
| |||||||
| |||||||
1 | prejudice and such tariffs and the record related thereto | ||||||
2 | shall not be the subject of any further hearing, | ||||||
3 | investigation, or proceeding of any kind related to rates for | ||||||
4 | gas delivery services. Notwithstanding the foregoing, a | ||||||
5 | natural gas utility shall not be permitted to withdraw a rate | ||||||
6 | case filing for which a proposed order recommending a rate | ||||||
7 | reduction is pending. A natural gas utility shall not be | ||||||
8 | permitted to withdraw the gas delivery services tariffs that | ||||||
9 | are the subject of Commission Docket Nos. 12-0511/12-0512 | ||||||
10 | (cons.). None of the costs incurred for the withdrawn rate | ||||||
11 | case are recoverable from ratepayers. | ||||||
12 | (i) The Commission shall promulgate rules and regulations | ||||||
13 | to carry out the provisions of this Section under the | ||||||
14 | emergency rulemaking provisions set forth in Section 5-45 of | ||||||
15 | the Illinois Administrative Procedure Act, and such emergency | ||||||
16 | rules shall be effective no later than 30 days after the | ||||||
17 | effective date of this amendatory Act of the 98th General | ||||||
18 | Assembly. | ||||||
19 | (j) Utilities that have elected to recover qualifying | ||||||
20 | infrastructure investment costs pursuant to this Section shall | ||||||
21 | file annually their Distribution Integrity Management Plan | ||||||
22 | (DIMP) with the Commission no later than June 1 of each year | ||||||
23 | the utility has said tariff in effect. The DIMP shall include | ||||||
24 | the following information: | ||||||
25 | (1) Baseline Distribution System Data: Information | ||||||
26 | such as demand, system pressures and flows, and metering |
| |||||||
| |||||||
1 | infrastructure. | ||||||
2 | (2) Financial Data: historical and projected spending | ||||||
3 | on distribution system infrastructure. | ||||||
4 | (3) Scenario Analysis: Discussion of projected changes | ||||||
5 | in usage over time. | ||||||
6 | (4) Descriptions of all qualifying infrastructure | ||||||
7 | investment proposed for the coming year. | ||||||
8 | (k) Within 45 days after filing, the Commission shall, | ||||||
9 | with reasonable notice, open an investigation to consider | ||||||
10 | whether the Plan meets the objectives set forth in this | ||||||
11 | subsection and contains the information required by subsection | ||||||
12 | (j). The Commission shall issue a final order approving the | ||||||
13 | Plan, with any modifications the Commission deems reasonable | ||||||
14 | and appropriate to achieve the goals of this Section, within | ||||||
15 | 270 days after the Plan filing. The investigation shall assess | ||||||
16 | whether the DIMP: | ||||||
17 | (1) ensures optimized use of utility infrastructure | ||||||
18 | assets and resources to minimize total system costs; | ||||||
19 | (2) enables greater customer engagement, empowerment, | ||||||
20 | and options for services; | ||||||
21 | (3) to the maximum extent possible, achieves and or | ||||||
22 | supports the achievement of greenhouse gas emissions | ||||||
23 | reductions as described by Section 9.10 of the | ||||||
24 | Environmental Protection Act; and | ||||||
25 | (4) supports existing Illinois policy goals promoting | ||||||
26 | energy efficiency. |
| |||||||
| |||||||
1 | The Commission process shall maximize the sharing of | ||||||
2 | information, ensure robust stakeholder participation, and | ||||||
3 | recognize the responsibility of the utility to ultimately | ||||||
4 | manage the grid in a safe, reliable manner. | ||||||
5 | (l) (j) This Section is repealed December 31, 2023.
| ||||||
6 | (Source: P.A. 98-57, eff. 7-5-13.)
| ||||||
7 | (220 ILCS 5/9-227) (from Ch. 111 2/3, par. 9-227)
| ||||||
8 | Sec. 9-227.
It is the policy of this State to encourage | ||||||
9 | electric and natural gas public utilities to promote the | ||||||
10 | welfare of this State and their communities through donations | ||||||
11 | made from the utility's shareholder profits rather than by | ||||||
12 | using ratepayer funds. Such contributions shall not be | ||||||
13 | recoverable through the public utility's rates. It shall be | ||||||
14 | proper for the Commission to consider as an
operating expense, | ||||||
15 | for the purpose of determining whether a rate or other
charge | ||||||
16 | or classification is sufficient, donations made by a public | ||||||
17 | utility
for the public welfare or for charitable scientific, | ||||||
18 | religious or
educational purposes, provided that such | ||||||
19 | donations are reasonable in amount.
In determining the | ||||||
20 | reasonableness of such donations, the Commission may
not | ||||||
21 | establish, by rule, a presumption that any particular portion | ||||||
22 | of an
otherwise reasonable amount may not be considered as an | ||||||
23 | operating expense.
The Commission shall be prohibited from | ||||||
24 | disallowing by rule, as an
operating expense, any portion of a | ||||||
25 | reasonable donation for public welfare
or charitable purposes.
|
| |||||||
| |||||||
1 | (Source: P.A. 85-122.)
| ||||||
2 | (220 ILCS 5/10-104) (from Ch. 111 2/3, par. 10-104)
| ||||||
3 | Sec. 10-104. Public hearings. | ||||||
4 | (a) As used in this Section, "major case" includes: | ||||||
5 | (1) rate cases; | ||||||
6 | (2) rulemakings; | ||||||
7 | (3) other proceedings with a significant effect on | ||||||
8 | rates; | ||||||
9 | (4) large infrastructure projects with significant | ||||||
10 | nonrate impacts on communities near their location; | ||||||
11 | (5) new programs; | ||||||
12 | (6) any planning dockets related to energy efficiency, | ||||||
13 | renewable energy, and interconnection infrastructure; and | ||||||
14 | (7) any other docketed or undocketed proceedings for | ||||||
15 | which the Commission feels that robust public engagement | ||||||
16 | is needed. | ||||||
17 | (b) When the outcome of a major case would have effects | ||||||
18 | statewide, or have any significant effects outside the | ||||||
19 | territory of the utility or utilities involved in the case, | ||||||
20 | the Commission shall hold at least 5 public hearings
for the | ||||||
21 | purpose of receiving public comment on each such major case.
| ||||||
22 | One of these hearings must be in the Chicago metropolitan | ||||||
23 | area. One of these hearings must be in Springfield. The | ||||||
24 | remaining 3 hearings must be outside of the Chicago | ||||||
25 | metropolitan area and Springfield. One of the hearings shall |
| |||||||
| |||||||
1 | be held within the county in which the subject matter of the | ||||||
2 | hearing is situated, if it is situated within one county. When | ||||||
3 | the outcome of a major case would have effects only within the | ||||||
4 | territory of one utility, the Commission shall hold at least 5 | ||||||
5 | public hearings at a variety of geographic locations within | ||||||
6 | the utility's territory. The locations shall be chosen to give | ||||||
7 | a wide variety of stakeholders the best opportunity to | ||||||
8 | participate in the hearings. The Commission may combine public | ||||||
9 | hearings for multiple major cases into one event at a single | ||||||
10 | venue, where practicable and compliant with all other | ||||||
11 | requirements. | ||||||
12 | (c) The public hearings shall be held at times that make | ||||||
13 | them accessible to the public, including to residents who work | ||||||
14 | during the day. The public hearings shall be held at locations | ||||||
15 | easily accessible, whenever possible, by public | ||||||
16 | transportation. The public hearings shall be held at locations | ||||||
17 | with wheelchair access. Upon request, a sign language | ||||||
18 | interpreter or other equivalent assistance for the hearing | ||||||
19 | impaired shall be provided. Upon request, translation services | ||||||
20 | shall be provided. Translation services may include real-time | ||||||
21 | telephone-based or other real-time translation services. All | ||||||
22 | written materials distributed at public hearings by the | ||||||
23 | Commission or utilities must be available at the hearing in | ||||||
24 | Spanish and, upon request and reasonable notice, other | ||||||
25 | languages. Call-in options shall be provided. | ||||||
26 | (d) At least 3 commissioners shall attend each public |
| |||||||
| |||||||
1 | hearing in person. | ||||||
2 | (e) Public hearings under this Section are subject to the | ||||||
3 | Open Meetings Act. | ||||||
4 | (f) The Commission may collect a reasonable fee from the | ||||||
5 | affected utility to offset the cost of public hearings, | ||||||
6 | including the cost of staffing. Within 30 days after the | ||||||
7 | effective date of this amendatory Act of the 102nd General | ||||||
8 | Assembly, the Commission shall set the amount of the fee and | ||||||
9 | shall update the amount of the fee no less often than every 3 | ||||||
10 | years thereafter. All fees charged and collected by the | ||||||
11 | Commission shall be paid promptly after the receipt of the | ||||||
12 | same, accompanied by a detailed statement thereof, into the | ||||||
13 | Public Utility Fund in the State treasury. All hearings before | ||||||
14 | the Commission or any commissioner or administrative law judge
| ||||||
15 | shall be held within the county in which the subject
matter of | ||||||
16 | the hearing is situated, or if the subject matter of the | ||||||
17 | hearing
is situated in more than one county, then at a place or | ||||||
18 | places designated
by the Commission, or agreed upon by the | ||||||
19 | parties in interest, within one or
more such counties, or at | ||||||
20 | the place which in the judgment of the Commission
shall be most | ||||||
21 | convenient to the parties to be heard.
| ||||||
22 | (Source: P.A. 100-840, eff. 8-13-18.)
| ||||||
23 | (220 ILCS 5/16-105.17 new) | ||||||
24 | Sec. 16-105.17. Multi-Year Integrated Grid Plan. | ||||||
25 | (a) Findings and Purpose. The General Assembly finds that |
| |||||||
| |||||||
1 | better aligning regulated utility operations, expenditures and | ||||||
2 | investments with public benefit goals including safety; | ||||||
3 | reliability; efficiency; affordability; equity; emissions | ||||||
4 | reductions; and expansion of clean distributed energy | ||||||
5 | resources, is critical to ensuring that Illinois residents and | ||||||
6 | businesses do not suffer economic and environmental harm from | ||||||
7 | the State's energy systems and to maximize the potential | ||||||
8 | benefits from utility expenditures. To that end, it is the | ||||||
9 | policy of the State of Illinois to promote inclusive, | ||||||
10 | comprehensive, transparent, cost-effective distribution | ||||||
11 | system planning that minimizes long-term costs for Illinois | ||||||
12 | customers and supports the achievement of state renewable | ||||||
13 | energy development and other clean energy, public health, and | ||||||
14 | environmental policy goals. Utility distribution system | ||||||
15 | expenditures, programs, investments and policies must be | ||||||
16 | evaluated in coordination with these goals. In particular, the | ||||||
17 | General Assembly finds that: | ||||||
18 | (1) Illinois' electricity distribution system must | ||||||
19 | cost-effectively integrate renewable energy resources, | ||||||
20 | including utility-scale renewable energy resources, | ||||||
21 | community renewable generation and distributed renewable | ||||||
22 | energy resources, support beneficial electrification | ||||||
23 | including electric vehicle use and adoption, promote | ||||||
24 | opportunities for third-party investment in | ||||||
25 | nontraditional, grid-related technologies and resources | ||||||
26 | such as batteries, solar photovoltaic panels and smart |
| |||||||
| |||||||
1 | thermostats, reduce energy usage generally and especially | ||||||
2 | during times of greatest reliance on fossil fuels, and | ||||||
3 | enhance customer engagement opportunities. | ||||||
4 | (2) Inclusive distribution system planning is an | ||||||
5 | essential tool for the Illinois Commerce Commission, | ||||||
6 | public utilities, and stakeholders to effectively | ||||||
7 | coordinate environmental, consumer, reliability and equity | ||||||
8 | goals at fair and reasonable costs, and for ensuring | ||||||
9 | transparent utility accountability for meeting those | ||||||
10 | goals. | ||||||
11 | (3) Any planning process should advance Illinois | ||||||
12 | energy policy goals while ensuring utility investments are | ||||||
13 | cost-effective. Such a process should maximize the sharing | ||||||
14 | of information, ensure robust stakeholder participation, | ||||||
15 | and recognize the responsibility of the utility to | ||||||
16 | ultimately manage the grid in a safe, reliable manner. | ||||||
17 | (4) Since the passage of the Energy Infrastructure | ||||||
18 | Modernization Act in 2011, Illinois consumers have | ||||||
19 | invested billions of dollars toward electric utility grid | ||||||
20 | modernization. In the absence of a transparent | ||||||
21 | distribution planning process, however, those investments | ||||||
22 | have not served customers' best interests, have failed to | ||||||
23 | promote the expansion of clean distributed energy | ||||||
24 | resources, and have failed to advance equity and | ||||||
25 | environmental justice. | ||||||
26 | (5) The traditional regulatory model rewards utilities |
| |||||||
| |||||||
1 | for increasing capital expenditures by basing allowed | ||||||
2 | revenues on the value of the rate base, resulting in an | ||||||
3 | incentive for ever-increasing capital investments. The | ||||||
4 | General Assembly is concerned that the existing regulatory | ||||||
5 | model does not align the interests of customers, the | ||||||
6 | State, and utilities because it does not encourage | ||||||
7 | utilities to systematically analyze and consider | ||||||
8 | nontraditional solutions to utility, customer and grid | ||||||
9 | needs that may be more efficient and cost effective, and | ||||||
10 | less environmentally harmful than traditional solutions. | ||||||
11 | Nontraditional solutions include distributed energy | ||||||
12 | resources owned or implemented by customers and | ||||||
13 | independent third parties, controllable load, beneficial | ||||||
14 | electrification, or rate design that rewards efficient | ||||||
15 | energy use, for example. | ||||||
16 | (6) The General Assembly also finds that Illinois | ||||||
17 | utilities' current processes for planning their | ||||||
18 | distribution system are not reasonably accessible or | ||||||
19 | transparent to individuals and communities who pay for and | ||||||
20 | are affected by the utilities' distribution system assets, | ||||||
21 | and that more inclusive and accessible distribution system | ||||||
22 | planning processes would be in the interests of all | ||||||
23 | Illinois residents, but especially those residents | ||||||
24 | historically most negatively impacted by unsafe or | ||||||
25 | environmentally harmful energy infrastructure. | ||||||
26 | (7) The General Assembly finds it would be beneficial |
| |||||||
| |||||||
1 | to require utilities to demonstrate how their spending | ||||||
2 | promotes identified state energy goals, such as | ||||||
3 | integrating renewable energy; empowering customers; | ||||||
4 | supporting electric vehicles, beneficial electrification | ||||||
5 | and energy storage; achieving equity goals; and | ||||||
6 | maintaining reliability. | ||||||
7 | The General Assembly therefore directs the utilities to | ||||||
8 | implement distribution system planning in order to accelerate | ||||||
9 | progress on Illinois clean energy and environmental goals and | ||||||
10 | hold electric utilities publicly accountable for their | ||||||
11 | performance. | ||||||
12 | (b) Definitions. As used in this Section: | ||||||
13 | "Commission" means the Illinois Commerce Commission. | ||||||
14 | "Demand response" means measures that decrease peak | ||||||
15 | electricity demand or shift demand from peak to off-peak | ||||||
16 | periods. | ||||||
17 | "Distributed energy resources" or "DER" means a wide range | ||||||
18 | of technologies that are located on the customer side of the | ||||||
19 | customer's electric meter and can provide value to the | ||||||
20 | distribution system, including, but not limited to, | ||||||
21 | distributed generation, energy storage, electric vehicles, and | ||||||
22 | demand response technologies. | ||||||
23 | "Environmental justice communities" means the definition | ||||||
24 | of that term based on existing methodologies and findings, | ||||||
25 | used and as may be updated by the Illinois Power Agency and its | ||||||
26 | Program Administrator in the Illinois Solar for All Program. |
| |||||||
| |||||||
1 | (c) Application. This Section applies to electric | ||||||
2 | utilities serving more than 500,000 retail customers in the | ||||||
3 | State. | ||||||
4 | (d) Objectives. The Multi-Year Integrated Grid Plan ("the | ||||||
5 | Plan") shall be designed to: | ||||||
6 | (1) ensure coordination of the State's renewable | ||||||
7 | energy goals, climate and environmental goals, utility | ||||||
8 | distribution system investments, and programs, policies | ||||||
9 | and investments described in this Section to maximize the | ||||||
10 | benefits of each while ensuring utility expenditures are | ||||||
11 | cost-effective; | ||||||
12 | (2) bring the benefits of grid modernization and clean | ||||||
13 | energy, including, but not limited to, deployment of | ||||||
14 | distributed energy resources, to ratepayers in | ||||||
15 | economically disadvantaged and environmental justice | ||||||
16 | communities throughout Illinois, with at least 40% of | ||||||
17 | these benefits being allocated to these ratepayers; | ||||||
18 | (3) enable greater customer engagement, empowerment, | ||||||
19 | and options for energy services; | ||||||
20 | (4) reduce grid congestion, minimize the time and | ||||||
21 | expense associated with interconnection, and increase the | ||||||
22 | capacity of the distribution grid to host increasing | ||||||
23 | levels of distributed energy resources, to facilitate | ||||||
24 | availability and development of distributed energy | ||||||
25 | resources, particularly in locations that enhance consumer | ||||||
26 | and environmental benefits; |
| |||||||
| |||||||
1 | (5) ensure opportunities for robust public | ||||||
2 | participation through open, transparent planning | ||||||
3 | processes; | ||||||
4 | (6) provide for the analysis of the cost-effectiveness | ||||||
5 | of proposed system investments, which takes into account | ||||||
6 | environmental costs and benefits; | ||||||
7 | (7) to the maximum extent possible, achieve or support | ||||||
8 | the achievement of Illinois environmental goals, including | ||||||
9 | those described in Section 9.10 of the Environmental | ||||||
10 | Protection Act, Section 1-75 of the Illinois Power Agency | ||||||
11 | Act, and emissions reductions required to improve the | ||||||
12 | health, safety and prosperity of all Illinois residents; | ||||||
13 | (8) support existing Illinois policy goals promoting | ||||||
14 | distributed energy resources and investments in renewable | ||||||
15 | energy resources; and | ||||||
16 | (9) provide sufficient public information to the | ||||||
17 | Commission, stakeholders, and market participants in order | ||||||
18 | to enable nonemitting customer-owned or third-party | ||||||
19 | distributed energy resources, acting individually or in | ||||||
20 | aggregate, to seamlessly and easily connect to the grid; | ||||||
21 | provide grid benefits; support grid services; and achieve | ||||||
22 | environmental outcomes, without necessarily requiring | ||||||
23 | utility ownership or unreasonable control over those | ||||||
24 | resources, and enable those resources to act as | ||||||
25 | alternatives to utility capital investments. | ||||||
26 | (e) Plan Development Stakeholder Process. No later than |
| |||||||
| |||||||
1 | February 1, 2022, the Illinois Commerce Commission shall | ||||||
2 | initiate a series of no fewer than 6 workshops which shall | ||||||
3 | inform the filing requirements for, and contents of, the | ||||||
4 | Multi-Year Integrated Grid Plans to be filed by electric | ||||||
5 | utilities subject to this Section. The series of workshops | ||||||
6 | shall be 11 months in length, concluding no later than | ||||||
7 | December 31, 2022. The workshops shall be facilitated by an | ||||||
8 | independent third-party facilitator selected by Staff of the | ||||||
9 | Illinois Commerce Commission and approved by the Executive | ||||||
10 | Director of the Illinois Commerce Commission. | ||||||
11 | (1) The workshops shall be designed to achieve the | ||||||
12 | following objectives: | ||||||
13 | (i) review utilities' past, current and planned | ||||||
14 | capital investments and all supporting data; | ||||||
15 | (ii) review utilities' historic and projected | ||||||
16 | load; | ||||||
17 | (iii) review how utilities plan to invest in their | ||||||
18 | distribution system in order to meet the system's | ||||||
19 | projected needs; | ||||||
20 | (iv) review locational data on reliability, | ||||||
21 | service quality, program participation and investment, | ||||||
22 | provided by the utilities; | ||||||
23 | (v) integrate input from diverse stakeholders, | ||||||
24 | including representatives from environmental justice | ||||||
25 | communities, geographically diverse communities, | ||||||
26 | low-income representatives, consumer representatives, |
| |||||||
| |||||||
1 | environmental representatives, organized labor | ||||||
2 | representatives, third-party technology providers, and | ||||||
3 | utilities; | ||||||
4 | (vi) consider proposals from utilities and | ||||||
5 | stakeholders on programs and policies necessary to | ||||||
6 | achieve the objectives in subsection (d) of this | ||||||
7 | Section; and | ||||||
8 | (vii) develop detailed filing requirements | ||||||
9 | applicable to each component of the utilities' | ||||||
10 | Multi-Year Integrated Grid Plan filings under | ||||||
11 | paragraph (2) of subsection (f) of this Section. | ||||||
12 | (2) To the extent any of the information in | ||||||
13 | subparagraphs (i) through (iv) of paragraph (1) of this | ||||||
14 | subsection is designated as confidential because | ||||||
15 | disclosure of such threatens the security of critical | ||||||
16 | system infrastructure, that information shall be redacted | ||||||
17 | as necessary but made available to parties who agree in | ||||||
18 | writing to abide by confidentiality agreements as approved | ||||||
19 | by the Office of General Counsel of the Illinois Commerce | ||||||
20 | Commission. Information appropriately designated as | ||||||
21 | confidential shall only include that which is critical to | ||||||
22 | system security, and shall not include that information in | ||||||
23 | which the electric utility claims a proprietary business | ||||||
24 | interest. | ||||||
25 | (3) Workshops should be organized and facilitated in a | ||||||
26 | manner that encourages representation from diverse |
| |||||||
| |||||||
1 | stakeholders, ensuring equitable opportunities for | ||||||
2 | participation, without requiring formal intervention or | ||||||
3 | representation by an attorney. Workshops should be held | ||||||
4 | during both day and evening hours, in a variety of | ||||||
5 | locations around the State, and should allow remote | ||||||
6 | participation. | ||||||
7 | (4) Utilities shall provide system data, including | ||||||
8 | data described in subparagraphs (i) through (iv) of | ||||||
9 | paragraph (1) of subsection (e), at a time prior to the | ||||||
10 | start of workshops to allow interested stakeholders to | ||||||
11 | reasonably review data before attending workshops. To | ||||||
12 | facilitate public feedback, the administrator facilitating | ||||||
13 | the workshops shall, throughout the workshop process, | ||||||
14 | develop questions for stakeholder input on topics being | ||||||
15 | considered. This may include, but is not limited to: | ||||||
16 | design of the workshop process, locational data and | ||||||
17 | information provided by utilities, alignment of plans, | ||||||
18 | programs, investments and objectives, and other topics as | ||||||
19 | deemed appropriate by the Commission facilitation staff. | ||||||
20 | Stakeholder feedback shall not be limited to these | ||||||
21 | questions. | ||||||
22 | (5) Workshops shall not be considered settlement | ||||||
23 | negotiations, compromise negotiations, or offers to | ||||||
24 | compromise for the purposes of Illinois Rule of Evidence | ||||||
25 | 408. All materials shared as a part of the workshop | ||||||
26 | process shall be made publicly available on a website made |
| |||||||
| |||||||
1 | available by the Commission. | ||||||
2 | (6) On conclusion of the workshops, the Commission | ||||||
3 | shall open a comment period that allows interested and | ||||||
4 | diverse stakeholders to submit comments and | ||||||
5 | recommendations regarding the utilities' Multi-Year | ||||||
6 | Integrated Grid Plan filings. Based on the workshop | ||||||
7 | process and stakeholder comments and recommendations | ||||||
8 | offered verbally or in writing during the workshops and in | ||||||
9 | writing during the comment period following the workshops, | ||||||
10 | the independent third-party facilitator shall prepare a | ||||||
11 | report, to be submitted to the Commission no later than | ||||||
12 | February 1, 2022, describing the stakeholders, | ||||||
13 | discussions, proposals, and areas of consensus and | ||||||
14 | disagreement from the workshop process, and making | ||||||
15 | recommendations to the Commission regarding the utilities' | ||||||
16 | Multi-Year Integrated Grid Plan filings. Interested | ||||||
17 | stakeholders shall have an opportunity to provide comment | ||||||
18 | on the independent third-party facilitator Report. | ||||||
19 | (7) Based on discussions in the workshops, the Staff | ||||||
20 | Report, and stakeholder comments and recommendations made | ||||||
21 | during and following the workshop process, the Commission | ||||||
22 | shall issue Initiating Orders no later than April 1, 2022, | ||||||
23 | requiring the electric utilities subject to this Section | ||||||
24 | to file the first Multi-Year Integrated Grid Plan no later | ||||||
25 | than June 1, 2022. The Initiating Orders shall specify the | ||||||
26 | requirements applicable to the utilities' Multi-Year |
| |||||||
| |||||||
1 | Integrated Grid Plans, above and beyond any requirements | ||||||
2 | described in paragraph (2) of subsection (f) of this | ||||||
3 | Section, and shall: | ||||||
4 | (i) analyze and identify specific programs, | ||||||
5 | policies, and initiatives, among those that were | ||||||
6 | raised during the workshop process, that the utilities | ||||||
7 | must implement as a part of their Multi-Year | ||||||
8 | Integrated Grid Plans; and | ||||||
9 | (ii) specify types of analyses and calculations | ||||||
10 | the utilities shall perform, as well as scenarios they | ||||||
11 | must analyze and (where applicable) specific | ||||||
12 | assumptions they must use in the development of their | ||||||
13 | Multi-Year Integrated Grid Plans. | ||||||
14 | (f) Multi-Year Integrated Grid Plan. | ||||||
15 | (1) Design Objectives. Pursuant to this subsection (f) | ||||||
16 | of this Section 1and the Initiating Orders of the | ||||||
17 | Commission, to be filed no later than April 1, 2022, and | ||||||
18 | for each subsequent Plan thereafter, each electric utility | ||||||
19 | subject to this Section shall, no later than June 1, 2022, | ||||||
20 | submit its first Multi-Year Integrated Grid Plan. While | ||||||
21 | each Multi-Year Integrated Grid Plan will include a | ||||||
22 | long-term, ten-year planning horizon, the Initial Plan | ||||||
23 | shall be in effect from June 1, 2023 through May 31, 2026. | ||||||
24 | Each Plan shall: | ||||||
25 | (i) incorporate requirements established by the | ||||||
26 | Commission in its Initiating Order; and |
| |||||||
| |||||||
1 | (ii) Propose programs, policies and plans designed | ||||||
2 | to optimize achievement of the objectives set forth in | ||||||
3 | subsection (d) of this Section. | ||||||
4 | To the extent practicable and reasonable, all | ||||||
5 | programs, policies and initiatives proposed by the utility | ||||||
6 | in its plan should be informed by stakeholder input | ||||||
7 | received during the workshop process pursuant to | ||||||
8 | subsection (e) of this Section. Where specific stakeholder | ||||||
9 | input has not been incorporated in proposed programs, | ||||||
10 | policies, and plans, the electric utility shall provide an | ||||||
11 | explanation as to why that input was not incorporated. | ||||||
12 | (2) Plan Components. In order to ensure electric | ||||||
13 | utilities' ability to meet the goals and objectives set | ||||||
14 | forth in this Section, the Multi-Year Integrated Grid | ||||||
15 | Plans must include, at minimum, the following information: | ||||||
16 | (i) Baseline Distribution System Data. A detailed | ||||||
17 | description of the current operating conditions for | ||||||
18 | the distribution system, including a detailed | ||||||
19 | description, with supporting data, of: system | ||||||
20 | conditions, including asset age and useful life, | ||||||
21 | ratings, loadings, and other characteristics, as well | ||||||
22 | as: | ||||||
23 | (A) modeling software currently used and | ||||||
24 | planned software deployments; | ||||||
25 | (B) the distribution system annual loss | ||||||
26 | percentage for the prior year (average of 12 |
| |||||||
| |||||||
1 | monthly loss percentages); | ||||||
2 | (C) the maximum hourly coincident load (kW) | ||||||
3 | for the distribution system as measured at the | ||||||
4 | interface between the transmission and | ||||||
5 | distribution system; | ||||||
6 | (D) total distribution substation capacity in | ||||||
7 | kVa; | ||||||
8 | (E) total distribution transformer capacity in | ||||||
9 | kVa; | ||||||
10 | (F) total miles of overhead distribution wire; | ||||||
11 | (G) total miles of underground distribution | ||||||
12 | wire; | ||||||
13 | (H) current and expected reliability measures; | ||||||
14 | (I) detailed listing of all high-voltage and | ||||||
15 | low-voltage substations and circuits including, at | ||||||
16 | minimum, the following for each substation and | ||||||
17 | circuit: age, remaining useful life, capacity | ||||||
18 | rating, historical peak demand, historical | ||||||
19 | interval data, historic annual peak load growth, | ||||||
20 | forecast future annual peak load growth, | ||||||
21 | historical outages and voltage violations, | ||||||
22 | distribution system reliability events, | ||||||
23 | anticipated or modeled violations, existing and | ||||||
24 | planned visibility and measurement (feeder-level | ||||||
25 | and time) data, monitoring and control | ||||||
26 | capabilities, daytime minimum load, and other |
| |||||||
| |||||||
1 | characteristics as necessary to allow the | ||||||
2 | Commission and stakeholders to analyze system data | ||||||
3 | for the purposes of achieving the goals of this | ||||||
4 | Section; | ||||||
5 | (J) distributed energy resource deployment by | ||||||
6 | type, size, customer class, and geographic | ||||||
7 | dispersion; and | ||||||
8 | (K) total number and nameplate capacity of | ||||||
9 | distributed energy resources that completed | ||||||
10 | interconnection to the system in each of the prior | ||||||
11 | 5 years, including average time to process | ||||||
12 | interconnection applications for each type of | ||||||
13 | resource and interconnection level. | ||||||
14 | (ii) Distribution System Planning Process. A | ||||||
15 | detailed description of the electric utility's | ||||||
16 | distribution system planning process including, but | ||||||
17 | not limited to: any process required by a regional | ||||||
18 | transmission organization; forecasts, inputs and | ||||||
19 | assumptions of future total load and future peak | ||||||
20 | demand; planned infrastructure investments and | ||||||
21 | underlying assumptions regarding the necessity of such | ||||||
22 | investments; and other relevant details for the | ||||||
23 | 10-year planning horizon. | ||||||
24 | (iii) Hosting Capacity and Interconnection | ||||||
25 | Analysis. A hosting capacity analysis which includes a | ||||||
26 | detailed and current analysis of how much capacity is |
| |||||||
| |||||||
1 | available on each substation, circuit and node for | ||||||
2 | integrating renewable and distributed energy resources | ||||||
3 | as allowed by thermal ratings, protection system | ||||||
4 | limits, power quality standards, and safety standards. | ||||||
5 | This section must include: circuit-level maps and | ||||||
6 | downloadable data sets for public use; an assessment | ||||||
7 | of how anticipated investments (for as far into the | ||||||
8 | future as the utility has planned investments) will | ||||||
9 | impact the analysis; and a narrative discussion of how | ||||||
10 | the hosting capacity analysis advances customer-sited | ||||||
11 | distributed energy resources, including in particular | ||||||
12 | electric vehicles, electric storage systems and | ||||||
13 | photovoltaic resources. | ||||||
14 | (iv) Scenario Analysis and Load Forecasting. | ||||||
15 | Detailed load forecasts for the following 10 years at | ||||||
16 | the substation and circuit level, using dynamic load | ||||||
17 | forecasting (forecasting using multiple scenarios and | ||||||
18 | probabilistic planning) and accounting for the impacts | ||||||
19 | of anticipated energy efficiency programs, demand | ||||||
20 | response programs, distributed energy resources, | ||||||
21 | electric vehicle adoption, and other known or | ||||||
22 | anticipated variables. This section shall also include | ||||||
23 | a detailed description of the electric utility's | ||||||
24 | anticipated capacity, thermal, voltage or other grid | ||||||
25 | constraints for the following 3-year period, including | ||||||
26 | modifications or upgrades to the system required to |
| |||||||
| |||||||
1 | accommodate anticipated future load and distributed | ||||||
2 | energy resource adoption. This section shall also | ||||||
3 | include a discussion of the development of base-case, | ||||||
4 | medium and high scenarios of distributed energy | ||||||
5 | resource deployment, reflecting a reasonable mix of | ||||||
6 | individual distributed energy resource adoption and | ||||||
7 | aggregated or bundled distributed energy resource | ||||||
8 | service types, and detailed information on the | ||||||
9 | methodologies used to develop those scenarios. | ||||||
10 | (v) Grid Value Analysis. An evaluation of the | ||||||
11 | short- and long-run benefits and costs of distributed | ||||||
12 | energy resources located on the distribution system, | ||||||
13 | including, but not limited to, the locational, | ||||||
14 | temporal, and performance-based benefits and costs of | ||||||
15 | distributed energy resources. This evaluation shall be | ||||||
16 | based on the reductions or increases in local | ||||||
17 | generation capacity needs, avoided or increased | ||||||
18 | investments in distribution infrastructure, avoided or | ||||||
19 | increased line-losses, voltage support and ancillary | ||||||
20 | services, safety benefits, reliability benefits, | ||||||
21 | resilience benefits, and any other savings, benefits | ||||||
22 | or value the distributed energy resources individually | ||||||
23 | or in aggregate provide to the distribution system or | ||||||
24 | costs to ratepayers of the electric utility. The | ||||||
25 | utility shall use the results of this evaluation to | ||||||
26 | inform its analysis of Solution Sourcing |
| |||||||
| |||||||
1 | Opportunities, including nonwires alternatives, under | ||||||
2 | subparagraph (viii) of this paragraph (2). The | ||||||
3 | Commission may use the data produced through this | ||||||
4 | evaluation to, among other use-cases, establish | ||||||
5 | tariffs and compensation for distributed energy | ||||||
6 | resources interconnecting to the utility's | ||||||
7 | distribution system, including rebates provided by the | ||||||
8 | electric utility pursuant to Section 16-107.6 of this | ||||||
9 | Act. | ||||||
10 | (vi) Utility System Investment Plan. A detailed | ||||||
11 | description of historic distribution system capital | ||||||
12 | investments for the preceding 5 years and planned | ||||||
13 | capital investments for the following 10 years, as | ||||||
14 | well as load forecasts and all other data supporting | ||||||
15 | those investments. This section shall include | ||||||
16 | projected costs, scope of work, prioritization of | ||||||
17 | work, sequencing of investments, and explanations of | ||||||
18 | how planned investments will meet the objectives | ||||||
19 | described in subsection (d). | ||||||
20 | (vii) Utility Operations Plan. A detailed | ||||||
21 | description of historic distribution system operations | ||||||
22 | and maintenance expenditures for the preceding 5 years | ||||||
23 | and of planned operations and maintenance expenditures | ||||||
24 | for the following 10 years, as well as the data, | ||||||
25 | reasoning and explanation supporting planned | ||||||
26 | expenditures. This section shall also include a |
| |||||||
| |||||||
1 | description of total costs spent on distributed energy | ||||||
2 | resource interconnection review and commissioning | ||||||
3 | (including application review, responding to | ||||||
4 | inquiries, metering, testing and other costs), as well | ||||||
5 | as interconnection fees and charges to customers and | ||||||
6 | installers of distributed energy resources, including | ||||||
7 | (application, metering and make-ready fees), broken | ||||||
8 | down by type of generation and category or level of | ||||||
9 | interconnection review, over each of the preceding 5 | ||||||
10 | years. | ||||||
11 | (viii) Solution Sourcing Opportunities. | ||||||
12 | Identification of potential cost-effective solutions | ||||||
13 | from nontraditional and third-party owned investments | ||||||
14 | that could meet anticipated grid needs, including, but | ||||||
15 | not limited to: distributed energy resource | ||||||
16 | procurements, tariffs or contracts, programmatic | ||||||
17 | solutions, rate design options, technologies or | ||||||
18 | programs that facilitate load flexibility, nonwires | ||||||
19 | alternatives, and other solutions that are intended to | ||||||
20 | meet the objectives described at subsection (d). It is | ||||||
21 | the policy of this State that cost-effective | ||||||
22 | third-party or customer-owned distributed energy | ||||||
23 | resources shall be prioritized because those resources | ||||||
24 | create robust competition and customer choice. | ||||||
25 | (ix) Interoperability Plan. A detailed description | ||||||
26 | of the utility's interoperability plan, which must |
| |||||||
| |||||||
1 | describe the manner in which the electric utility's | ||||||
2 | current and planned distribution system investments | ||||||
3 | will work together and exchange information and data, | ||||||
4 | the extent to which the utility is implementing open | ||||||
5 | standards and interfaces with third-party distributed | ||||||
6 | energy resource owners and aggregators, and the | ||||||
7 | utility's plan for interoperability testing and | ||||||
8 | certification. | ||||||
9 | (x) Flexibility Analysis. A detailed analysis of | ||||||
10 | current and projected flexible resources, including | ||||||
11 | resource type, size (in MW and MWh), location and | ||||||
12 | environmental impact, as well as anticipated needs | ||||||
13 | that can be met using flexible resources (including, | ||||||
14 | but not limited to, peak load reduction, managing ramp | ||||||
15 | needs, storing excess generation, and avoiding | ||||||
16 | unnecessary transmission expenditures). | ||||||
17 | (xi) Equity Requirements. A description of, | ||||||
18 | exclusive of low-income rate relief programs and other | ||||||
19 | income-qualified programs, how the utility is ensuring | ||||||
20 | that at least 40% of benefits from programs, policies, | ||||||
21 | and initiatives proposed in their Multi-Year | ||||||
22 | Integrated Grid Plan will be directed to ratepayers in | ||||||
23 | low-income and environmental justice communities. This | ||||||
24 | should include locational reporting, at the | ||||||
25 | census-tract level, on distribution system | ||||||
26 | investments, program participation, and reliability |
| |||||||
| |||||||
1 | and service quality data. | ||||||
2 | (3) To the extent any information in utilities' | ||||||
3 | Multi-Year Integrated Grid Plans is designated as | ||||||
4 | confidential because disclosure of such threatens the | ||||||
5 | security of critical system infrastructure, that | ||||||
6 | information shall be redacted as necessary but made | ||||||
7 | available to parties who agree in writing to abide by | ||||||
8 | confidentiality requirements as approved by the Office of | ||||||
9 | General Counsel of the Illinois Commerce Commission. | ||||||
10 | Information appropriately designated as confidential shall | ||||||
11 | only include that which is critical to system security, | ||||||
12 | and shall not include that information in which the | ||||||
13 | electric utility claims only a proprietary business | ||||||
14 | interest. | ||||||
15 | (4) Comprehensive Consideration of Related Plans, | ||||||
16 | Tariffs, Programs and Policies. It is the policy of this | ||||||
17 | State that holistic consideration of all related | ||||||
18 | investments, planning processes, tariffs, rate design | ||||||
19 | options, programs, and other utility policies and plans | ||||||
20 | shall be required. To that end, the Commission shall | ||||||
21 | consider, comprehensively, the impact of all related | ||||||
22 | plans, tariffs, programs and policies on the Plan and on | ||||||
23 | each other, including: | ||||||
24 | (i) time-of-use pricing program, pursuant to | ||||||
25 | Section 16-107.7 of this Act, hourly pricing program, | ||||||
26 | pursuant to Section 16-107 of this Act, and any other |
| |||||||
| |||||||
1 | time-variant or dynamic pricing program; | ||||||
2 | (ii) distributed generation rebate, pursuant to | ||||||
3 | Section 16-107.6 of this Act; | ||||||
4 | (iii) net electricity metering, pursuant to | ||||||
5 | Section 16-107.5 of this Act; | ||||||
6 | (iv) energy efficiency programs, pursuant to | ||||||
7 | Section 8-103B of this Act; | ||||||
8 | (v) Electric Vehicle Access for All programs, | ||||||
9 | pursuant to Section 30 of the Electric Vehicle Act; | ||||||
10 | (vi) beneficial electrification programs, pursuant | ||||||
11 | to Section 16-107.8 of this Act; | ||||||
12 | (vii) other plans, programs and policies that are | ||||||
13 | relevant to distribution grid investments, costs | ||||||
14 | planning, etc. | ||||||
15 | The Plan shall comprehensively detail the relationship | ||||||
16 | between these plans, tariffs, and programs and the Plan | ||||||
17 | and to the electric utility's achievement of the | ||||||
18 | objectives in subsection (d). The Plan shall be designed | ||||||
19 | to coordinate each of these plans, programs and tariffs | ||||||
20 | with the electric utility's long-term distribution system | ||||||
21 | investment planning in order to maximize the benefits of | ||||||
22 | each. | ||||||
23 | (5) Hearing Procedure. The Initiating Order for the | ||||||
24 | Initial Multi-Year Integrated Grid Plan, as well as each | ||||||
25 | electric utility's subsequent Integrated Grid Plans under | ||||||
26 | subsection (g), shall begin a contested proceeding as |
| |||||||
| |||||||
1 | described in subsection (d) of Section 10-101.1 of this | ||||||
2 | Act. | ||||||
3 | (i) In evaluating a utility's Plan, the Commission | ||||||
4 | shall consider, at minimum, whether the Plan: | ||||||
5 | (A) meets the objectives of this Section; | ||||||
6 | (B) includes the components in paragraph (2) | ||||||
7 | of subsection (f) of this Section; | ||||||
8 | (C) incorporates input from interested | ||||||
9 | stakeholders, including parties and people who | ||||||
10 | offer public comment; | ||||||
11 | (D) considers nontraditional and | ||||||
12 | nonutility-owned investment alternatives that can | ||||||
13 | meet grid needs and provide additional benefits | ||||||
14 | (including consumer, economic and environmental | ||||||
15 | benefits) beyond comparable, traditional | ||||||
16 | utility-planned capital investments; | ||||||
17 | (E) equitably benefits environmental justice | ||||||
18 | communities; and | ||||||
19 | (F) maximizes consumer, environmental, | ||||||
20 | economic and community benefits. | ||||||
21 | (ii) The Commission, after notice and hearing, | ||||||
22 | shall modify each electric utility's Plan as necessary | ||||||
23 | to comply with the objectives of this Section. The | ||||||
24 | Commission may approve, or modify and approve, a Plan | ||||||
25 | only if it finds that the Plan is reasonable, complies | ||||||
26 | with the objectives and requirements of this Section, |
| |||||||
| |||||||
1 | and reasonably incorporates input from parties. The | ||||||
2 | Commission's approval of any Plan does not constitute | ||||||
3 | approval, or any adjudication of the prudence or | ||||||
4 | reasonableness, of any expenditures associated with | ||||||
5 | the Plan. The Commission may reject each electric | ||||||
6 | utility's Plan if it finds that the Plan does not | ||||||
7 | comply with the objectives and requirements of this | ||||||
8 | Section. Where the Commission enters an Order | ||||||
9 | rejecting a Plan, the utility must refile a Plan | ||||||
10 | within 3 months after that Order, and until the | ||||||
11 | Commission approves a Plan, the utility's existing | ||||||
12 | Plan will remain in effect. | ||||||
13 | (iii) For all Integrated Grid Plan filings, the | ||||||
14 | Commission shall enter an order no later than 9 months | ||||||
15 | after the date of filing. | ||||||
16 | (iv) Each electric utility shall file its proposed | ||||||
17 | Initial Multi-Year Integrated Grid Plan no later than | ||||||
18 | June 1, 2022. Prior to that date and following the | ||||||
19 | Initiating Order, the Commission shall initiate a case | ||||||
20 | management conference and shall take any appropriate | ||||||
21 | steps to begin meaningful consideration of issues, | ||||||
22 | including enabling interested parties to begin | ||||||
23 | conducting discovery. | ||||||
24 | (6) Implementation Plans. | ||||||
25 | (i) As part of its order approving a utility's | ||||||
26 | Multi-Year Integrated Grid Plan, including any |
| |||||||
| |||||||
1 | modifications required, the Commission shall create a | ||||||
2 | subsequent implementation plan docket, or multiple | ||||||
3 | implementation plan dockets, if the Commission | ||||||
4 | determines that multiple dockets would be preferable, | ||||||
5 | to consider the utility's detailed plans for: | ||||||
6 | (A) acquiring the level of demand response | ||||||
7 | resources specified in its approved Multi-Year | ||||||
8 | Integrated Grid Plan; | ||||||
9 | (B) acquiring the level of load flexibility or | ||||||
10 | energy storage resources specified in its approved | ||||||
11 | Multi-Year Integrated Grid Plan; | ||||||
12 | (C) achieving the level of transportation, | ||||||
13 | building and industry electrification specified in | ||||||
14 | its approved Multi-Year Integrated Grid Plan, or | ||||||
15 | implementing optimized charging or other | ||||||
16 | beneficial electrification programs; | ||||||
17 | (D) developing any of the plans, tariffs, | ||||||
18 | programs or policies required by paragraph (4) of | ||||||
19 | subsection (e) and additionally required by the | ||||||
20 | Commission in its Order regarding the Multi-Year | ||||||
21 | Integrated Grid Plan; and | ||||||
22 | (E) developing the Hosting Capacity and | ||||||
23 | Interconnection Analysis required by paragraph (2) | ||||||
24 | of subsection (f); | ||||||
25 | (F) developing a process to screen, analyze | ||||||
26 | and procure nonwires alternatives; and |
| |||||||
| |||||||
1 | (G) addressing any other topic or resource | ||||||
2 | area covered by the utility's Multi-Year | ||||||
3 | Integrated Grid Plan for which the Commission | ||||||
4 | considers it important and necessary to receive | ||||||
5 | and approve a greater level of detail regarding | ||||||
6 | the utility's plans. | ||||||
7 | (ii) Each implementation plan shall include a | ||||||
8 | detailed explanation of: | ||||||
9 | (A) the projected costs (investments and | ||||||
10 | expenses) and benefits of each plan or program to | ||||||
11 | be considered in the implementation plan, | ||||||
12 | including related financial incentives, marketing, | ||||||
13 | and administration; | ||||||
14 | (B) categories and sub-categories of resources | ||||||
15 | or services to be acquired to achieve the | ||||||
16 | objectives in the Multi-Year Integrated Grid Plan | ||||||
17 | (for example, the implementation plan for demand | ||||||
18 | response shall identify the different types of | ||||||
19 | demand response resources that will collectively | ||||||
20 | be pursued to achieve the total level of demand | ||||||
21 | response capability approved in the Plan); | ||||||
22 | (C) the marketing, customer recruitment and | ||||||
23 | engagement, financial incentive, procurement | ||||||
24 | approach and other important elements of the plan | ||||||
25 | or program, including efforts to cultivate | ||||||
26 | qualifying customers in low-income and |
| |||||||
| |||||||
1 | environmental justice communities; | ||||||
2 | (D) an explanation of how the proposed plans | ||||||
3 | or programs will be able to achieve the objective | ||||||
4 | in the Multi-Year Integrated Grid Plan; | ||||||
5 | (E) an analysis of how, exclusive of | ||||||
6 | low-income rate relief and other income-qualified | ||||||
7 | programs, the implementation plan will contribute | ||||||
8 | to the Multi-year Integrated Grid Plan's | ||||||
9 | requirement that at least 40% of benefits from | ||||||
10 | programs, policies, and initiatives will be | ||||||
11 | directed to low-income and environmental justice | ||||||
12 | communities; | ||||||
13 | (F) a discussion of any risk in the utility's | ||||||
14 | ability to acquire the planned levels of resource | ||||||
15 | acquisition within the approved budget, as well as | ||||||
16 | contingency plans for addressing such risks; and | ||||||
17 | (G) a plan for periodic (but at least | ||||||
18 | quarterly) engagement with stakeholders on the | ||||||
19 | rollout and implementation of the implementation | ||||||
20 | plans in order to inform them of plans and | ||||||
21 | progress, as well as to solicit input on | ||||||
22 | opportunities for improving plans and | ||||||
23 | implementation or on ways to modify plans as | ||||||
24 | needed. | ||||||
25 | (iii) The implementation plan dockets shall be | ||||||
26 | contested proceedings, with opportunities for |
| |||||||
| |||||||
1 | discovery and filing of testimony by interested | ||||||
2 | stakeholders. Each utility shall file its | ||||||
3 | implementation plans within 90 days after approval, | ||||||
4 | with any modifications, of its Multi-Year Integrated | ||||||
5 | Grid Plan. | ||||||
6 | (g) Subsequent Multi-Year Integrated Grid Plans. No later | ||||||
7 | than June 1, 2025 and every 4 years thereafter, each electric | ||||||
8 | utility subject to this Section shall file a new Multi-Year | ||||||
9 | Integrated Grid Plan for the subsequent 4 delivery years after | ||||||
10 | the completion of the then-effective Plan. Each Plan shall | ||||||
11 | meet the requirements described in subsection (f), and shall | ||||||
12 | be preceded by a workshop process which meets the same | ||||||
13 | requirements described in subsection (e). If appropriate, the | ||||||
14 | Commission may require additional implementation dockets to | ||||||
15 | follow Subsequent Multi-Year Integrated Grid Plan filings. | ||||||
16 | (220 ILCS 5/16-107.7 new) | ||||||
17 | Sec. 16-107.7. Residential time-of-use pricing. | ||||||
18 | (a) The General Assembly finds that time-of-use rates and | ||||||
19 | pricing plans can lower energy costs for consumers and reduce | ||||||
20 | grid costs as well as help Illinois achieve its energy policy | ||||||
21 | goals by improving load shape, encouraging energy | ||||||
22 | conservation, and shifting usage away from periods where | ||||||
23 | fossil fuels are used to meet peak demand. Further, by | ||||||
24 | providing consumers information relating the costs of service | ||||||
25 | to the time of energy usage, time-of-use rates can help |
| |||||||
| |||||||
1 | consumers reduce their energy bills by using electricity when | ||||||
2 | it is less costly. Time-of-use rates can help allocate | ||||||
3 | electricity system costs more accurately and thus equitably to | ||||||
4 | those who cause costs. Such rates can reduce the need for | ||||||
5 | ramping resources and increase the grid's ability to | ||||||
6 | cost-effectively integrate greater quantities of variable | ||||||
7 | renewable energy and distributed energy resources. | ||||||
8 | (b) An electric utility that has a tariff in effect under | ||||||
9 | Section 16-108.5 as of the effective date of this amendatory | ||||||
10 | Act of the 102nd General Assembly shall also offer at least one | ||||||
11 | market-based, time-of-use rate for eligible retail customers | ||||||
12 | that choose to take power and energy supply service from the | ||||||
13 | utility. The utility shall file its time-of-use rate tariff no | ||||||
14 | later than 120 days after the effective date of this | ||||||
15 | amendatory Act of the 102nd General Assembly, and each utility | ||||||
16 | subject to this requirement shall implement the requirements | ||||||
17 | of this paragraph by filing a tariff with the Commission. The | ||||||
18 | tariff or tariffs shall be subject to the following | ||||||
19 | provisions: | ||||||
20 | (1) If more than one tariff is proposed, at least one | ||||||
21 | tariff shall include at least 3 time blocks: a peak time | ||||||
22 | block defined as 2 p.m. to 7 p.m. on nonholiday weekdays or | ||||||
23 | the 5 consecutive hours best reflecting the highest system | ||||||
24 | peak demands, an off-peak time block defined as 10 a.m. to | ||||||
25 | 2 p.m. and 7 p.m. to 10 p.m. on nonholiday weekdays or the | ||||||
26 | 7 total hours, occurring in some combination before and |
| |||||||
| |||||||
1 | after the peak period, which reflect the next highest | ||||||
2 | system peak demands, and a super-off-peak time block | ||||||
3 | defined as all other hours including weekend days. | ||||||
4 | 2) This tariff shall strive to achieve price ratios | ||||||
5 | between the blocks as follows: the super-off-peak time | ||||||
6 | block price shall be no less than zero but no greater than | ||||||
7 | one-half of the price of the off-peak time block price, | ||||||
8 | and the off-peak time block price shall be no greater than | ||||||
9 | one-half of the price of the peak time block price. | ||||||
10 | (3) The time-of-use rate shall include the costs of | ||||||
11 | electric capacity, costs of transmission services, and | ||||||
12 | charges for network integration transmission service, | ||||||
13 | transmission enhancement, and locational reliability, as | ||||||
14 | these terms are defined in the PJM Interconnection LLC | ||||||
15 | Open Access Transmission Tariff and manuals on January 1, | ||||||
16 | 2019, within the prices for each time block and seasonal | ||||||
17 | block in which the associated costs generally are | ||||||
18 | incurred. If the Open Access Transmission Tariff or | ||||||
19 | manuals subsequently renames those terms, the services | ||||||
20 | reflected under those terms shall continue to be included | ||||||
21 | in the time-of-use rate described in this paragraph (2). | ||||||
22 | (4) Adjustments to the charges set by the tariff may | ||||||
23 | be made on a semi-annual basis, as follows: each May and | ||||||
24 | November, the utility shall submit to the Commission, | ||||||
25 | through an informational filing, its updated charges, and | ||||||
26 | such charges shall take effect beginning with the June |
| |||||||
| |||||||
1 | monthly billing period and December monthly billing | ||||||
2 | period, respectively. | ||||||
3 | (5) The tariff shall include a purchased energy | ||||||
4 | adjustment to fully recover the supply costs for the | ||||||
5 | customers taking service under this tariff. | ||||||
6 | "Eligible customers" includes, but is not limited to, | ||||||
7 | customers participating in net electricity metering under the | ||||||
8 | terms of Section 16-107.5. | ||||||
9 | (c) The Commission shall, after notice and hearing, | ||||||
10 | approve the tariff or tariffs with modifications the | ||||||
11 | Commission finds necessary to improve the program design, | ||||||
12 | customer participation in the program, or coordination with | ||||||
13 | existing utility pricing programs, energy efficiency programs, | ||||||
14 | demand response programs, and any other programs supporting | ||||||
15 | Illinois energy policy goals and the integration of | ||||||
16 | distributed energy resources. The Commission shall also | ||||||
17 | consider how the proposed time-of-use rate design reflects the | ||||||
18 | system costs and usage patterns of the utility. A proceeding | ||||||
19 | under this subsection may not exceed 120 days in length. | ||||||
20 | (d) If the Commission issues an order pursuant to this | ||||||
21 | subsection, the affected electric utility shall contract with | ||||||
22 | an entity not affiliated with the electric utility to serve as | ||||||
23 | a program administrator to develop and implement a program to | ||||||
24 | provide consumer outreach, enrollment, and education | ||||||
25 | concerning time-of-use pricing and to establish and administer | ||||||
26 | an information system and technical and other customer |
| |||||||
| |||||||
1 | assistance that is necessary to enable customers to manage | ||||||
2 | electricity use. The program administrator: (i) shall be | ||||||
3 | selected and compensated by the electric utility, subject to | ||||||
4 | Commission approval; (ii) shall have demonstrated technical | ||||||
5 | and managerial competence in the development and | ||||||
6 | administration of demand management programs; and (iii) may | ||||||
7 | develop and implement risk management, energy efficiency, and | ||||||
8 | other services related to energy use management for which the | ||||||
9 | program administrator shall be compensated by participants in | ||||||
10 | the program receiving such services. The electric utility | ||||||
11 | shall provide the program administrator with all information | ||||||
12 | and assistance necessary to perform the program | ||||||
13 | administrator's duties, including, but not limited to, | ||||||
14 | customer, account, and energy use data. The electric utility | ||||||
15 | shall permit the program administrator to include inserts in | ||||||
16 | residential customer bills 2 times per year to assist with | ||||||
17 | customer outreach and enrollment. | ||||||
18 | The program administrator shall submit an annual report to | ||||||
19 | the electric utility no later than April 1 of each year | ||||||
20 | describing the operation and results of the program, including | ||||||
21 | information concerning the number and types of customers using | ||||||
22 | the program, changes in customers' energy use patterns, an | ||||||
23 | assessment of the value of the program to both participants | ||||||
24 | and nonparticipants, and recommendations concerning | ||||||
25 | modification of the program and the tariff or tariffs filed | ||||||
26 | under this Section. This report shall be filed by the electric |
| |||||||
| |||||||
1 | utility with the Commission within 30 days after receipt and | ||||||
2 | shall be available to the public on the Commission's website. | ||||||
3 | (e) Once the tariff or tariffs has been in effect for 24 | ||||||
4 | months, the Commission may, upon complaint, petition, or its | ||||||
5 | own initiative, open a proceeding to investigate whether | ||||||
6 | changes or modifications to the tariff or tariffs, program | ||||||
7 | administration and any other program design element is | ||||||
8 | necessary to achieve the goals described in subsection (a) of | ||||||
9 | this Section. Such a proceeding may not last more than 120 days | ||||||
10 | from the date upon which the investigation is opened by | ||||||
11 | Commission order. | ||||||
12 | (f) An electric utility shall be entitled to recover | ||||||
13 | reasonable costs incurred in complying with this Section, | ||||||
14 | provided that recovery of the costs is fairly apportioned | ||||||
15 | among its residential customers. | ||||||
16 | (g) The electric utility's tariff or tariffs filed | ||||||
17 | pursuant to this Section shall be subject to the provisions of | ||||||
18 | Article IX of this Act insofar as they do not conflict with | ||||||
19 | this Section. | ||||||
20 | (h) This Section does not apply to any electric utility | ||||||
21 | providing service to 100,000 or fewer customers. | ||||||
22 | (220 ILCS 5/16-108.18 new) | ||||||
23 | Sec. 16-108.18. Performance-based ratemaking. | ||||||
24 | (a) Findings and Purpose. The General Assembly finds that | ||||||
25 | improving the alignment of utility customer and company |
| |||||||
| |||||||
1 | interests is critical to ensuring that Illinois residents and | ||||||
2 | businesses have the opportunity to optimize existing utility | ||||||
3 | infrastructure and do not suffer economic and environmental | ||||||
4 | harm from the State's energy systems. This realignment is | ||||||
5 | critical to ensure the ongoing viability of Illinois electric | ||||||
6 | utilities, as they face an increasing need to rapidly adopt | ||||||
7 | business models and strategies that enable new innovations and | ||||||
8 | customer choices. Furthermore, the General Assembly finds that | ||||||
9 | this realignment has entered a period of extraordinary | ||||||
10 | urgency, given the expected rapid growth of distributed energy | ||||||
11 | resources, electric vehicles, and other new technologies that | ||||||
12 | substantially change the makeup of the grid. Moreover, urgency | ||||||
13 | of action to address increasing threats from climate change | ||||||
14 | and to assist communities that have borne a disproportionate | ||||||
15 | impact from air pollution, greenhouse gas emissions, and | ||||||
16 | energy burdens requires immediate and significant change to | ||||||
17 | the business model under which utilities in Illinois have | ||||||
18 | functioned. Providing incentive for necessary changes through | ||||||
19 | a new holistic, performance-based structure for ratemaking | ||||||
20 | will enable alignment of utility, customer, community and | ||||||
21 | environmental goals. In particular, the General Assembly finds | ||||||
22 | that: | ||||||
23 | (1) The traditional regulatory model rewards utilities | ||||||
24 | for increasing capital expenditures by basing allowed | ||||||
25 | revenues on the value of the rate base, irrespective of | ||||||
26 | utility performance. This compact does not align the |
| |||||||
| |||||||
1 | interests of customers and utilities because it may result | ||||||
2 | in a bias toward expending utility capital in ways that | ||||||
3 | may displace more efficient or cost-effective options, | ||||||
4 | such as distributed energy resources owned by customers or | ||||||
5 | projects implemented by independent third parties that can | ||||||
6 | meet grid needs. | ||||||
7 | (2) Traditional regulation also rewards utilities for | ||||||
8 | selling higher volumes of electricity through the | ||||||
9 | throughput incentive. This model unnecessarily increases | ||||||
10 | customer costs and pollution and is therefore in neither | ||||||
11 | ratepayers' nor the State's interest. | ||||||
12 | (3) Though Illinois has taken some measures to move | ||||||
13 | utilities to performance-based ratemaking through the | ||||||
14 | establishment of performance incentives and a | ||||||
15 | performance-based formula rate under the Energy | ||||||
16 | Infrastructure Modernization Act, these measures have not | ||||||
17 | been transformative in urgently moving electric utilities | ||||||
18 | toward the State's ambitious energy policy goals: | ||||||
19 | protecting a healthy environment and climate, improving | ||||||
20 | public health, and creating quality jobs and economic | ||||||
21 | opportunities including wealth building, especially in | ||||||
22 | economically disadvantaged communities and BIPOC | ||||||
23 | communities. Rather, they have resulted in excess utility | ||||||
24 | profits without meaningful improvements in customer | ||||||
25 | experience, rates, or equity. | ||||||
26 | (4) The General Assembly therefore directs the |
| |||||||
| |||||||
1 | Illinois Commerce Commission to complete a transition to a | ||||||
2 | comprehensive performance-based regulation framework for | ||||||
3 | electric utilities with more than 500,000 customers. The | ||||||
4 | breadth of this framework should remake existing utility | ||||||
5 | regulations to position Illinois electric utilities to | ||||||
6 | effectively and efficiently achieve current and | ||||||
7 | anticipated future energy needs of this State. | ||||||
8 | (5) It is the intent of the General Assembly that over | ||||||
9 | time the comprehensive performance-based regulation | ||||||
10 | framework will progressively reduce the direct link | ||||||
11 | between utility revenues and traditional investment levels | ||||||
12 | and increasingly tie revenues to performance. | ||||||
13 | (b) Definitions. | ||||||
14 | As used in this Section: | ||||||
15 | "Commission" means the Illinois Commerce Commission. | ||||||
16 | "Demand response" means measures that decrease peak | ||||||
17 | electricity demand or shift demand from peak to off-peak | ||||||
18 | periods. | ||||||
19 | "Distributed energy resources" or "DER" means a wide range | ||||||
20 | of technologies that are located on the customer side of the | ||||||
21 | customer's electric meter and can provide value to the | ||||||
22 | distribution system, including, but not limited to, | ||||||
23 | distributed generation, energy storage, electric vehicles, and | ||||||
24 | demand response technologies. | ||||||
25 | "Economically disadvantaged communities" means areas of | ||||||
26 | one or more census tracts where average household income does |
| |||||||
| |||||||
1 | not exceed 80% of area median income. | ||||||
2 | "Environmental justice communities" means the definition | ||||||
3 | of that term based on existing methodologies and findings, | ||||||
4 | used and as may be updated by the Illinois Power Agency and its | ||||||
5 | Program Administrator in the Illinois Solar for All Program. | ||||||
6 | "Performance-based regulation or ratemaking" or "PBR" | ||||||
7 | means a regulatory approach that aligns utility interests with | ||||||
8 | customer and societal interests through regulatory mechanisms | ||||||
9 | that motivate utilities to improve operations, increase | ||||||
10 | program effectiveness, better manage business expenses, and | ||||||
11 | align system performance with identified societal or policy | ||||||
12 | goals. | ||||||
13 | (c) Objectives. The comprehensive PBR framework should be | ||||||
14 | designed to accomplish the following objectives: | ||||||
15 | (1) incentivize utilities to pursue cost-effective | ||||||
16 | solutions to meet customer needs; | ||||||
17 | (2) decarbonize utility systems at a pace that meets | ||||||
18 | or exceeds state climate goals; | ||||||
19 | (3) remove utility incentives to grow energy sales, | ||||||
20 | except where sales growth is determined to be aligned with | ||||||
21 | state policy goals; | ||||||
22 | (4) reduce the link between utility expenditures and | ||||||
23 | collected revenue and eliminate embedded utility | ||||||
24 | preferences for one type of expenditure over another for | ||||||
25 | the same service; | ||||||
26 | (5) incentivize utilities to undertake the most |
| |||||||
| |||||||
1 | effective expenditures for assets or services, whether | ||||||
2 | self-supplied by the utility or through third-party | ||||||
3 | contracting, to deliver high-quality service to customers | ||||||
4 | at least cost; | ||||||
5 | (6) maintain the affordability, safety, and | ||||||
6 | reliability of electric power supply; and | ||||||
7 | (7) incentivize utilities to pursue equitable access | ||||||
8 | to high-quality customer service, affordable rates, DER | ||||||
9 | interconnection, and the benefits of grid modernization | ||||||
10 | and clean energy for ratepayers in environmental justice | ||||||
11 | and economically disadvantaged communities. Additionally, | ||||||
12 | motivate utilities to sustain a diverse workforce, | ||||||
13 | supplier procurement base and, for relevant programs, | ||||||
14 | approved vendor pools. | ||||||
15 | (d) The comprehensive PBR framework should comprise a set | ||||||
16 | of PBR mechanisms that collectively accomplish the objectives | ||||||
17 | set forth in subsection (c). Those mechanisms may include, but | ||||||
18 | are not limited to: | ||||||
19 | (1) Multi-Year Rate Plans and associated features, as | ||||||
20 | set forth in subsection (e) of this Section; | ||||||
21 | (2) revenue decoupling, as set forth in paragraph (11) | ||||||
22 | of subsection (e) of this Section; | ||||||
23 | (3) shared savings mechanisms; | ||||||
24 | (4) performance incentive mechanisms, as set forth in | ||||||
25 | subsection (f) of this Section; | ||||||
26 | (5) changes to the accounting treatment of capital and |
| |||||||
| |||||||
1 | operating expenditures; and | ||||||
2 | (6) changes to rate design, as set forth in Section | ||||||
3 | paragraph 10 of subsection (e) of this Section. | ||||||
4 | (e) Multi-Year Rate Plan. | ||||||
5 | (1) If an electric utility has a performance-based | ||||||
6 | formula rate in effect under Section 16-108.5 as of | ||||||
7 | December 31, 2020, then the utility shall file a petition | ||||||
8 | proposing tariffs implementing a 4-year Multi-Year Rate | ||||||
9 | Plan as provided in this Section no later than July 1, 2022 | ||||||
10 | for delivery service rates to be effective from June 1, | ||||||
11 | 2023 through May 31, 2027. The Commission shall issue an | ||||||
12 | order approving, approving as modified, or rejecting the | ||||||
13 | utility's plan no later than June 1, 2023. If the | ||||||
14 | Commission rejects the utility's plan, the deadline to | ||||||
15 | approve the plan or approve it as modified shall be | ||||||
16 | extended to 4 months from the date of the rejection. The | ||||||
17 | term "Multi-Year Rate Plan" refers to a plan establishing | ||||||
18 | the rates the utility may charge for each delivery year of | ||||||
19 | the 4-year period to be covered by the plan. The net | ||||||
20 | revenue requirement reflected in rates in effect on | ||||||
21 | December 31, 2021 for the electric utility shall remain in | ||||||
22 | effect until new rates are approved under the Multi-Year | ||||||
23 | Rate Plan, and no additional annual reconciliation under | ||||||
24 | Section 16-108.5 shall be made. | ||||||
25 | (2) A utility proposing a Multi-Year Rate Plan shall | ||||||
26 | provide a description of the utility's major planned |
| |||||||
| |||||||
1 | investments, which shall include at a minimum all | ||||||
2 | investments of $1,000,000 or greater over the plan period. | ||||||
3 | Planned investments must conform to the goals established | ||||||
4 | in the Multi-Year Integrated Grid Plan described in | ||||||
5 | Section 16-105.17 of this Act. | ||||||
6 | (3) The Multi-Year Rate Plan shall be implemented | ||||||
7 | through a tariff filed with the Commission consistent with | ||||||
8 | the provisions of this paragraph (3) that shall apply to | ||||||
9 | all delivery service customers. The Commission shall | ||||||
10 | initiate and conduct an investigation of the tariff in a | ||||||
11 | manner consistent with the provisions of this paragraph | ||||||
12 | (3) and the provisions of Article IX of this Act to the | ||||||
13 | extent they do not conflict with this paragraph (3). The | ||||||
14 | Multi-Year Rate Plan approved by the Commission shall do | ||||||
15 | the following: | ||||||
16 | (A) Provide for the recovery of the utility's | ||||||
17 | forecasted rate base, based on a budget forecast or a | ||||||
18 | fixed escalation rate, individually or in combination. | ||||||
19 | The forecasted rate base must include the utility's | ||||||
20 | planned capital investments and investment-related | ||||||
21 | costs, including income tax impacts, depreciation, and | ||||||
22 | property taxes prudently incurred and reasonable in | ||||||
23 | amount consistent with Commission practice and law. | ||||||
24 | The budgeting process must be iterative, be rigorous, | ||||||
25 | and lead to forecasts that reasonably represent the | ||||||
26 | utility's investments during the forecasted period. |
| |||||||
| |||||||
1 | (B) For the first Multi-Year Rate Plan, reflect | ||||||
2 | year-end capital structure that includes a common | ||||||
3 | equity ratio, excluding goodwill, of no more than 50% | ||||||
4 | of the total capital structure shall be deemed | ||||||
5 | reasonable and prudent and used to set rates. | ||||||
6 | (C) For the first Multi-Year Rate Plan, include a | ||||||
7 | cost of equity, which shall be calculated as the sum of | ||||||
8 | the following: | ||||||
9 | (i) the average for the applicable calendar | ||||||
10 | year of the monthly average yields of 30-year U.S. | ||||||
11 | Treasury bonds published by the Board of Governors | ||||||
12 | of the Federal Reserve System in its weekly H.15 | ||||||
13 | Statistical Release or successor publication; and | ||||||
14 | (ii) 530 basis points. | ||||||
15 | At such time as the Board of Governors of the | ||||||
16 | Federal Reserve System ceases to include the monthly | ||||||
17 | average yields of 30-year U.S. Treasury bonds in its | ||||||
18 | weekly H.15 Statistical Release or successor | ||||||
19 | publication, the monthly average yields of the U.S. | ||||||
20 | Treasury bonds then having the longest duration | ||||||
21 | published by the Board of Governors in its weekly H.15 | ||||||
22 | Statistical Release or successor publication shall | ||||||
23 | instead be used for purposes of this subparagraph (C). | ||||||
24 | (D) For subsequent Multi-Year Rate Plans, the cost | ||||||
25 | of equity and capital structure shall be established | ||||||
26 | by the Commission and shall be set to reflect a |
| |||||||
| |||||||
1 | risk-adjusted return compared to the prevailing cost | ||||||
2 | of capital and comparable investments in the economy, | ||||||
3 | including U.S. Treasury rates, upon which additional | ||||||
4 | earning opportunities and penalties can be provided to | ||||||
5 | reflect utility performance against identified | ||||||
6 | outcomes. | ||||||
7 | (E) Recovery of operations and maintenance | ||||||
8 | expenses, based on projected costs, an | ||||||
9 | electricity-related price index or other formula. | ||||||
10 | (F) Amortize the amount of unprotected | ||||||
11 | property-related excess accumulated deferred income | ||||||
12 | taxes in rates as of December 31, 2022 over a period of | ||||||
13 | 5 years. | ||||||
14 | (G) Disallow recovery of charitable contributions. | ||||||
15 | (H) Allow recovery of pension and other | ||||||
16 | post-employment benefits expense only if such costs | ||||||
17 | are demonstrated to be funded by ratepayers. | ||||||
18 | (I) Allow recovery of incentive compensation | ||||||
19 | expense that is based on the achievement of | ||||||
20 | operational metrics, including metrics related to | ||||||
21 | budget controls, outage duration and frequency, | ||||||
22 | safety, customer service, efficiency and productivity, | ||||||
23 | environmental compliance and attainment of | ||||||
24 | environmental goals, and other goals and metrics | ||||||
25 | approved by the Commission. Incentive compensation | ||||||
26 | expense that is based on net income or an affiliate's |
| |||||||
| |||||||
1 | earnings per share shall not be recoverable; | ||||||
2 | (4) Rates charged under the Multi-Year Rate Plan must | ||||||
3 | be based only upon the utility's reasonable and prudent | ||||||
4 | costs of service over the term of the plan, as determined | ||||||
5 | by the Commission, provided that the costs are not being | ||||||
6 | recovered elsewhere in rates. Rate adjustments authorized | ||||||
7 | by the Commission may continue outside of a plan | ||||||
8 | authorized under this Section to the extent such costs are | ||||||
9 | not recovered elsewhere in rates. The burden of proof | ||||||
10 | shall be on the electric utility to establish the prudence | ||||||
11 | of investments and expenditures and to establish that such | ||||||
12 | investments are reasonably necessary to meet the | ||||||
13 | requirements of the most recently approved Multi-Year | ||||||
14 | Integrated Grid Plan described in Section 16-105.17 of | ||||||
15 | this Act. The sole fact that a cost differs from that | ||||||
16 | incurred in a prior period or that an investment is | ||||||
17 | different from that described the Multi-year Integrated | ||||||
18 | Grid Plan shall not imply the imprudence or | ||||||
19 | unreasonableness of that cost or investment. The sole fact | ||||||
20 | that an investment is the same or similar to that | ||||||
21 | described in the Multi-Year Integrated Grid Plan shall not | ||||||
22 | imply prudence and reasonableness. | ||||||
23 | (5) To facilitate public transparency, all materials, | ||||||
24 | data, testimony, schedules, etc. shall be provided to the | ||||||
25 | Commission in an editable, machine-readable electronic | ||||||
26 | format including .doc, .docx, .xls, .xlsx, and similar, |
| |||||||
| |||||||
1 | but not including .pdf or .exif. Should utilities | ||||||
2 | designate any materials "confidential," they shall have an | ||||||
3 | affirmative duty to explain why the particular information | ||||||
4 | is marked confidential. In determining prudence and | ||||||
5 | reasonableness of rates, the Commission shall also | ||||||
6 | consider each public comment filed in the docket. | ||||||
7 | (6) The Commission may, by order, establish terms, | ||||||
8 | conditions, and procedures for a Multi-Year Rate Plan | ||||||
9 | necessary to implement this Section and ensure that rates | ||||||
10 | remain just and reasonable during the course of the plan, | ||||||
11 | including terms and procedures for rate adjustment. At any | ||||||
12 | time prior to conclusion of a Multi-Year Rate Plan, the | ||||||
13 | Commission, upon its own motion or upon petition of any | ||||||
14 | party, may initiate a proceeding to examine the | ||||||
15 | reasonableness of the utility's rates under the plan, and | ||||||
16 | adjust rates as necessary. | ||||||
17 | (7) Capital True-up. The utility shall propose an | ||||||
18 | annual capital true-up mechanism that provides a refund to | ||||||
19 | customers if the utility's actual capital-related revenue | ||||||
20 | requirement is less in total in any of the Multi-Year Rate | ||||||
21 | Plan delivery years than the Commission authorizes for | ||||||
22 | that year. Conversely, if the Company's actual | ||||||
23 | capital-related revenue requirement is more in total in | ||||||
24 | the Multi-year Rate Plan delivery year than the Commission | ||||||
25 | authorizes for that year, the Company cannot surcharge | ||||||
26 | customers to collect any under recovery. |
| |||||||
| |||||||
1 | (8) A participating utility that files a tariff | ||||||
2 | pursuant to paragraph (3) of this subsection (e) must | ||||||
3 | submit a one-time $200,000 filing fee at the time the | ||||||
4 | Chief Clerk of the Commission accepts the filing, which | ||||||
5 | shall be a recoverable expense. | ||||||
6 | (9) Subsequent Multi-Year Rate Plans. An electric | ||||||
7 | utility operating under the Multi-Year Rate Plan shall | ||||||
8 | file a new Multi-Year Rate Plan at least 210 days prior to | ||||||
9 | the end of the initial Multi-Year Rate Plan, and every 4 | ||||||
10 | years thereafter, with a rate-effective date of the | ||||||
11 | proposed tariffs such that, after the Commission | ||||||
12 | suspension period, the rates would take effect immediately | ||||||
13 | at the close of the final year of the initial Multi-Year | ||||||
14 | Rate Plan. In subsequent Multi-Year Rate Plans, as in the | ||||||
15 | initial plans, utilities and stakeholders may propose | ||||||
16 | additional metrics that achieve the outcomes described in | ||||||
17 | paragraph (2) of subsection (f) of this Section. | ||||||
18 | (10) Rate Design. The Commission shall approve tariffs | ||||||
19 | as part of each Multi-Year Rate Plan establishing rate | ||||||
20 | design for all delivery service customers. These shall | ||||||
21 | expand the rate options available to customers, including, | ||||||
22 | but not limited to, an affordability rate for low-income | ||||||
23 | residential customers, a time-of-use rate, an electric | ||||||
24 | vehicle rate, and a peak time savings rate. | ||||||
25 | (11) Decoupling. The Commission may, by order, approve | ||||||
26 | a tariff filed by an electric utility that provides for |
| |||||||
| |||||||
1 | decoupling of sales and revenues to mitigate the impact on | ||||||
2 | public utilities of the energy-savings goals and to reduce | ||||||
3 | a utility's disincentive to promote energy efficiency | ||||||
4 | under Section 16-111.5B of this Act without adversely | ||||||
5 | affecting utility ratepayers. In its consideration of a | ||||||
6 | proposed decoupling tariff, the Commission shall consider | ||||||
7 | a mechanism that triggers the periodic adjustment to rates | ||||||
8 | when the changes in revenue would result in a change | ||||||
9 | within a certain percentage, an earnings band to share | ||||||
10 | revenues that exceed the authorized return, or other | ||||||
11 | mechanisms that reduce the size and frequency of rate | ||||||
12 | adjustments. | ||||||
13 | (f) Performance Incentive Mechanisms. | ||||||
14 | (1) The Commission shall establish performance | ||||||
15 | incentive mechanisms in order to better tie utility | ||||||
16 | revenues to performance and customer benefits, accelerate | ||||||
17 | progress on Illinois energy and other goals, and hold | ||||||
18 | utilities publicly accountable. The Commission shall | ||||||
19 | develop metrics, which are observable and measurable | ||||||
20 | indicators of system or utility performance, in order to | ||||||
21 | create performance incentive mechanisms. Specifically, the | ||||||
22 | Commission shall establish: | ||||||
23 | (A) Tracking metrics, which will be used for | ||||||
24 | measuring and reporting utility performance. | ||||||
25 | (B) Performance metrics, which will be used for | ||||||
26 | financially incentivizing improved utility |
| |||||||
| |||||||
1 | performance. | ||||||
2 | (2) Outcomes of Metrics. The Commission shall approve | ||||||
3 | tracking and performance metrics that encourage | ||||||
4 | cost-effective, equitable utility achievement of the | ||||||
5 | following outcomes: | ||||||
6 | (A) Affordability. Achieve affordable customer | ||||||
7 | energy costs and utility bills, with particular | ||||||
8 | emphasis on keeping lower-income households' bills | ||||||
9 | within a manageable portion of their income. | ||||||
10 | (B) Pollution Reduction. Minimize emissions of | ||||||
11 | greenhouse gases and pollutants that harm human | ||||||
12 | health, particularly in environmental justice and | ||||||
13 | economically disadvantaged communities, through both | ||||||
14 | (A) minimizing emissions per kilowatt-hour of | ||||||
15 | electricity consumed; and (B) minimizing total | ||||||
16 | emissions, including by accelerating electrification | ||||||
17 | of transportation, buildings and industries where such | ||||||
18 | electrification results in net reductions, across all | ||||||
19 | fuels and over the life of electrification measures, | ||||||
20 | of greenhouse gases and other pollutants. | ||||||
21 | (C) Flexibility. Enhance the grid's flexibility to | ||||||
22 | adapt to increased deployment of nondispatchable | ||||||
23 | resources; improve the ability and performance of the | ||||||
24 | grid on load balancing; and address uncertainty around | ||||||
25 | future customer needs, future environmental concerns, | ||||||
26 | emerging technology, changes in costs of technology |
| |||||||
| |||||||
1 | and service, and other factors. | ||||||
2 | (D) Reliability. Meet high standards of overall | ||||||
3 | and locational reliability. | ||||||
4 | (E) Customer Experience. Deliver customer service | ||||||
5 | quality, customer engagement, and customer access to | ||||||
6 | utility system information. | ||||||
7 | (F) Equity. Maximize and prioritize the allocation | ||||||
8 | of grid planning benefits to environmental justice and | ||||||
9 | economically disadvantaged customers and communities. | ||||||
10 | Sustain a diverse workforce, supplier procurement base | ||||||
11 | and, for relevant programs, approved vendor pools. | ||||||
12 | (G) Cost-effectiveness. Ensure rates reflect cost | ||||||
13 | savings attributable to grid modernization and | ||||||
14 | integration of distributed energy resources that allow | ||||||
15 | the utility to defer or forgo traditional grid | ||||||
16 | investments that would otherwise be required. | ||||||
17 | It is the intent of the General Assembly that these | ||||||
18 | outcomes shall guide the development of metrics even as | ||||||
19 | the grid, along with its associated technologies and | ||||||
20 | policies, evolves. It is also the intent of the General | ||||||
21 | Assembly that the limitation of total costs to customers | ||||||
22 | and the promotion of ethical and transparent practices by | ||||||
23 | utilities, as well as the role that flexible load and | ||||||
24 | distributed energy resources can play in advancing the | ||||||
25 | outcomes, be considered in the establishment of metrics. | ||||||
26 | (3) Metrics Requirements. |
| |||||||
| |||||||
1 | (A) Tracking Metrics. Tracking metrics shall | ||||||
2 | entail a description of the metric, a calculation | ||||||
3 | method, and a data collection method. The Commission | ||||||
4 | shall approve tracking metrics that measure | ||||||
5 | achievement of at least one of the outcomes set forth | ||||||
6 | in paragraph (2) and are supported by sufficient | ||||||
7 | stakeholder input. Tracking metrics should measure | ||||||
8 | outcomes and actual results and projections where | ||||||
9 | possible. | ||||||
10 | (B) Performance Metrics. Performance metrics shall | ||||||
11 | entail a description of the metric, a calculation | ||||||
12 | method, a data collection method, annual binding | ||||||
13 | performance targets, and monetary incentives (rewards | ||||||
14 | or penalties or both, depending on the metric) for | ||||||
15 | utilities' achievement of or failure to achieve their | ||||||
16 | performance targets. The Commission shall approve | ||||||
17 | performance metrics that (i) measure achievement of | ||||||
18 | the outcomes set forth in paragraph (2); (ii) are | ||||||
19 | supported by sufficient stakeholder input; (iii) have | ||||||
20 | one year of tracking data collected in a consistent | ||||||
21 | manner and verifiable by an independent evaluator in
| ||||||
22 | order to establish a baseline; and (iv) require an | ||||||
23 | incentive (reward or penalty or both) to create
| ||||||
24 | improved utility performance. While a single | ||||||
25 | performance metric may measure achievement of more | ||||||
26 | than one of the outcomes set forth in paragraph (2), |
| |||||||
| |||||||
1 | and such metrics should be valued, the Commission | ||||||
2 | shall not approve multiple performance metrics that | ||||||
3 | measure achievement identical or near-identical | ||||||
4 | results. Performance metrics should measure outcomes | ||||||
5 | and actual, rather than projected, results where | ||||||
6 | possible. | ||||||
7 | (C) Performance targets. For metrics where | ||||||
8 | progressive improvement is desirable, performance | ||||||
9 | targets shall increase annually and shall require | ||||||
10 | utilities to perform beyond "business as usual," as | ||||||
11 | determined by baseline tracking data and | ||||||
12 | high-confidence projections. Increases to a target | ||||||
13 | shall be considered in light of other metrics, | ||||||
14 | cost-effectiveness, and other factors the Commission | ||||||
15 | deems appropriate. | ||||||
16 | (D) Performance incentives. The Commission shall | ||||||
17 | determine whether and to what extent each performance | ||||||
18 | metric shall offer a reward, penalty, or both to a | ||||||
19 | utility. For metrics where a reward is offered, and | ||||||
20 | that reward is a cash payment, the reward shall be | ||||||
21 | calculated as a percentage of net benefits from the | ||||||
22 | outcome, net of costs to customers. The Commission | ||||||
23 | shall develop a methodology to calculate net benefits | ||||||
24 | that includes societal costs and benefits. | ||||||
25 | In determining the appropriate level of a reward | ||||||
26 | or penalty, the Commission shall consider: the extent |
| |||||||
| |||||||
1 | to which the amount is likely to encourage the utility | ||||||
2 | to achieve the performance target in the least cost | ||||||
3 | manner; the value of benefits to customers, the grid, | ||||||
4 | and the environment from achievement of the | ||||||
5 | performance target, including in particular benefits | ||||||
6 | to environmental justice and economically | ||||||
7 | disadvantaged communities; customer bill | ||||||
8 | affordability; the utility's revenue requirement; and | ||||||
9 | other such factors that the Commission deems | ||||||
10 | appropriate. The consideration of these factors shall | ||||||
11 | result in an incentive level that ensures benefits | ||||||
12 | exceed costs for customers. | ||||||
13 | The rewards or penalties shall be calculated based | ||||||
14 | on the electric utility achieving performance targets. | ||||||
15 | In determining the specific rewards or penalties, the | ||||||
16 | Commission shall give proportionate weight to the | ||||||
17 | following set of metrics: affordability, | ||||||
18 | cost-effectiveness, pollution reduction, flexibility, | ||||||
19 | customer experience, reliability, and equity. | ||||||
20 | It is the intent of the General Assembly that over | ||||||
21 | time the utility's cost of equity shall be | ||||||
22 | progressively reduced while the opportunity to grow | ||||||
23 | earnings as a result of achieving performance targets | ||||||
24 | shall be progressively increased as the Commission | ||||||
25 | establishes new performance metrics. | ||||||
26 | (g) Initial Metrics. The Commission shall initiate a |
| |||||||
| |||||||
1 | 4-month workshop process no later than March 1, 2022 for the | ||||||
2 | purpose of informing the enactment of metrics. The workshop | ||||||
3 | shall be facilitated by Staff of the Illinois Commerce | ||||||
4 | Commission, and shall be organized and facilitated in a manner | ||||||
5 | that encourages representation from diverse stakeholders, | ||||||
6 | ensuring equitable opportunities for participation, without | ||||||
7 | requiring formal intervention or representation by an | ||||||
8 | attorney. Following the workshop, the Commission shall | ||||||
9 | establish initial tracking and performance metrics in a | ||||||
10 | docketed proceeding that shall be filed by the electric | ||||||
11 | utility by July 2, 2022. The initial tracking and performance | ||||||
12 | metrics shall be in place for the period of the first | ||||||
13 | Multi-Year Rate Plan. The proceeding shall conclude, and the | ||||||
14 | commission shall issue an order in the matter, no later than | ||||||
15 | April 1, 2023. | ||||||
16 | Unless the tracking metrics in subparagraph (3) of | ||||||
17 | paragraph (A) and performance metrics in subparagraph (3) of | ||||||
18 | paragraph (B) of subsection (f) of this Section are found by | ||||||
19 | the Commission during initial metric-setting proceeding to not | ||||||
20 | meet the requirements set forth in this Section, the | ||||||
21 | Commission shall approve these metrics, and it shall establish | ||||||
22 | calculations and goals for the tracking metrics set forth in | ||||||
23 | subparagraph (3) of paragraph (A) of subsection (f) of this | ||||||
24 | Section and calculations, targets, and incentives for the | ||||||
25 | tracking metrics set forth in subparagraph (3) of paragraph | ||||||
26 | (B) of subsection (f) of this Section. If the Commission finds |
| |||||||
| |||||||
1 | that the metrics set forth in subparagraph (3) of paragraph | ||||||
2 | (A) and subparagraph (3) of paragraph (B) of subsection (f) of | ||||||
3 | this Section do not meet the requirements set forth in this | ||||||
4 | Section, then the Commission shall approve substitute metrics. | ||||||
5 | The Commission may also approve additional tracking and | ||||||
6 | performance metrics as appropriate if they meet the | ||||||
7 | requirements set forth in this Section. | ||||||
8 | Initial Performance Metrics shall include at a minimum, | ||||||
9 | but not limited to, the following: | ||||||
10 | (1) system Average Interruption Frequency Index; | ||||||
11 | (2) customer Average Interruption Duration Index; and | ||||||
12 | (3) peak load reductions enabled by demand response | ||||||
13 | programs. | ||||||
14 | (h) Future Metrics. The Commission shall establish new | ||||||
15 | tracking and performance metrics in future Annual Performance | ||||||
16 | Evaluation proceedings to further measure achievement of the | ||||||
17 | outcomes set forth in paragraph (2) of subsection (f) of this | ||||||
18 | Section and the other goals and requirements of this Section. | ||||||
19 | The Commission shall also evaluate metrics that were | ||||||
20 | established in prior Annual Performance Evaluation proceedings | ||||||
21 | under the procedures set forth in subsection (i) to determine | ||||||
22 | if adjustments are required to improve the likelihood of the | ||||||
23 | outcomes described in paragraph (2) of subsection (f). For | ||||||
24 | metrics that were established in prior Annual Performance | ||||||
25 | Evaluation proceedings and that the Commission elects to | ||||||
26 | continue, the design of these metrics, including the goals of |
| |||||||
| |||||||
1 | tracking metrics and the targets and incentive levels and | ||||||
2 | structures of performance metrics, may be adjusted pursuant to | ||||||
3 | the requirements in this Section. The Commission may also | ||||||
4 | phase out tracking and performance metrics that were | ||||||
5 | established in prior Annual Performance Evaluation proceedings | ||||||
6 | if these metrics no longer meet the requirements of this | ||||||
7 | Section or if they are rendered obsolete by the changing needs | ||||||
8 | and technology of an evolving grid. Additionally, performance | ||||||
9 | metrics that no longer require an incentive to create improved | ||||||
10 | utility performance may become tracking metrics. | ||||||
11 | In service of the outcomes set forth in paragraph (2) of | ||||||
12 | subsection (f), it is the intent of the General Assembly that | ||||||
13 | the Commission in future Annual Performance Evaluation | ||||||
14 | proceedings establish the tracking metrics and performance | ||||||
15 | metrics set forth in subparagraph (A) and subparagraph (B) of | ||||||
16 | paragraph (3) of subsection (f) of this Section when these | ||||||
17 | metrics would be compliant with the requirements set forth in | ||||||
18 | this Section. | ||||||
19 | (i) Annual Performance Evaluation. On June 1 of each year, | ||||||
20 | following the approval of the first Multi-Year Rate Plan and | ||||||
21 | its initial delivery year, the Commission shall open an Annual | ||||||
22 | Performance Evaluation proceeding to evaluate the utilities' | ||||||
23 | performance on their metric targets during the delivery year | ||||||
24 | just completed and accordingly determine rewards or penalties | ||||||
25 | or both to be reflected in rates in the following calendar | ||||||
26 | year. |
| |||||||
| |||||||
1 | (1) Utility Reporting. On April 1 of each year, prior | ||||||
2 | to the Annual Performance Evaluation proceeding, each | ||||||
3 | participating utility shall file a Performance Evaluation | ||||||
4 | Report with the Commission that includes a description of | ||||||
5 | and all data supporting how the participating utility | ||||||
6 | performed under each tracking and performance metric and | ||||||
7 | an identification of any extraordinary events that | ||||||
8 | adversely impacted the utility's performance. The | ||||||
9 | Performance Evaluation Report shall be verified by an | ||||||
10 | independent evaluator as set out in paragraph (3) of this | ||||||
11 | subsection (i) and shall include both a report made to the | ||||||
12 | Commission and a short, public-facing scorecard that makes | ||||||
13 | this information publicly accessible and easily | ||||||
14 | understandable. The Commission shall post each scorecard | ||||||
15 | upon receipt on the Commission's web page in an | ||||||
16 | easily-accessible location. The format of the report and | ||||||
17 | the scorecard shall be consistent across utilities and | ||||||
18 | shall include: | ||||||
19 | (A) a list of metrics to which the utility is | ||||||
20 | subject; | ||||||
21 | (B) the previous delivery year's calculation | ||||||
22 | methods and performance on metrics if applicable; | ||||||
23 | (C) the current delivery year's calculation | ||||||
24 | methods and a detailed description of the effect of | ||||||
25 | any differences; | ||||||
26 | (D) the current-year goals for tracking metrics |
| |||||||
| |||||||
1 | and current-year targets for performance metrics; | ||||||
2 | (E) the current year's performance on metrics | ||||||
3 | targets; | ||||||
4 | (F) a summary of the investments and programs | ||||||
5 | undertaken in order to achieve those metrics targets; | ||||||
6 | and
(G) the annual goals and targets for the remaining | ||||||
7 | years of the current Multi-Year Rate Plan period. | ||||||
8 | Within 30 days after the Commission's Order in the | ||||||
9 | utility's Annual Performance Evaluation and Adjustment | ||||||
10 | filing, the utility shall update the public scorecard with | ||||||
11 | any changes required by the Commission and the revised | ||||||
12 | scorecard shall be posted on the Commission's website. | ||||||
13 | (2) Public Workshops. Preceding each Annual | ||||||
14 | Performance Evaluation, no later than April 1 each year, | ||||||
15 | the Commission shall initiate a two-month workshop | ||||||
16 | process. The workshops shall be facilitated by Staff of | ||||||
17 | the Illinois Commerce Commission, and shall be organized | ||||||
18 | and facilitated in a manner that encourages representation | ||||||
19 | from diverse stakeholders, ensuring equitable | ||||||
20 | opportunities for participation, without requiring formal | ||||||
21 | intervention or representation by an attorney. During | ||||||
22 | these workshops, each electric utility shall publicly | ||||||
23 | present its performance on tracking and performance | ||||||
24 | metrics following the requirements set forth in paragraph | ||||||
25 | (1) of this subsection (i). The electric utility shall | ||||||
26 | also explain how it has holistically considered the plans, |
| |||||||
| |||||||
1 | programs, tariffs and policies and its Multi-Year | ||||||
2 | Integrated Grid Plan in order to achieve its metric | ||||||
3 | targets. Members of the public shall have opportunity for | ||||||
4 | comment and feedback. A summary of that feedback shall be | ||||||
5 | provided in an exhibit submitted by Staff of the Illinois | ||||||
6 | Commerce Commission in the Annual Performance Evaluation. | ||||||
7 | (3) Independent Evaluation. The electric utility shall | ||||||
8 | provide for an annual independent evaluation of its | ||||||
9 | performance on metrics. The independent evaluator shall | ||||||
10 | review the utility's assumptions, baselines, targets, | ||||||
11 | calculation methodologies, and other relevant information, | ||||||
12 | especially ensuring that the utility's data for | ||||||
13 | establishing baselines matches actual performance, and | ||||||
14 | shall provide a Report to the Commission in each Annual | ||||||
15 | Performance Evaluation describing the results. The | ||||||
16 | independent evaluator shall present this Report as | ||||||
17 | evidence as a nonparty participant. The independent | ||||||
18 | evaluator shall be hired through a competitive bidding | ||||||
19 | process. | ||||||
20 | The Commission shall consider the Report of the | ||||||
21 | independent evaluator in determining the utility's | ||||||
22 | achievement of performance targets. Discrepancies between | ||||||
23 | the utility's assumptions, baselines, targets, or | ||||||
24 | calculations and those of the independent evaluator shall | ||||||
25 | be closely scrutinized by the Commission. If the | ||||||
26 | Commission finds that the utility's reported data for any |
| |||||||
| |||||||
1 | metric or metrics significantly deviates from the data | ||||||
2 | reported by the independent evaluator, then the Commission | ||||||
3 | shall order the utility to revise its data collection and | ||||||
4 | calculation process within 60 days, with specifications | ||||||
5 | where appropriate. | ||||||
6 | (4) Performance Adjustment. The Commission shall, | ||||||
7 | after notice and hearing in the Annual Performance | ||||||
8 | Evaluation proceeding, enter an order approving the | ||||||
9 | utility's performance adjustment based on its achievement | ||||||
10 | of or failure to achieve its performance targets no later | ||||||
11 | than December 31 each year. The Commission-approved | ||||||
12 | penalties or rewards shall be applied beginning with the | ||||||
13 | next calendar year. Nothing in this Section shall | ||||||
14 | authorize the Commission to reduce or otherwise obviate | ||||||
15 | the imposition of financial rewards or penalties for | ||||||
16 | achieving or failing to achieve one or more of the | ||||||
17 | utility's performance targets. | ||||||
18 | (5) Revisions to Metrics. While tracking and | ||||||
19 | performance metrics, along with their associated goals, | ||||||
20 | targets, and incentives, shall not be changed outside of | ||||||
21 | the Annual Performance Evaluation, the Commission may open | ||||||
22 | an investigation into the methodology, including | ||||||
23 | assumptions and calculations, used to measure or quantify | ||||||
24 | progress toward goals and targets in the Annual | ||||||
25 | Performance Evaluation at the request of an intervening | ||||||
26 | party. |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | Section 99. Effective date. This Act takes effect upon | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | becoming law.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||