093_HB2200sam003
LRB093 07959 AMC 19820 a
1 AMENDMENT TO HOUSE BILL 2200
2 AMENDMENT NO. . Amend House Bill 2200, AS AMENDED,
3 by replacing everything after the enacting clause with the
4 following:
5 "Section 5. The Public Utilities Act is amended by
6 changing Section 7-204 and adding Section 16-103.5 as
7 follows:
8 (220 ILCS 5/7-204) (from Ch. 111 2/3, par. 7-204)
9 Sec. 7-204. Reorganization defined; Commission approval
10 therefore.
11 (a) For purposes of this Section, "reorganization" means
12 any transaction which, regardless of the means by which it is
13 accomplished, results in a change in the ownership of a
14 majority of the voting capital stock of an Illinois public
15 utility; or the ownership or control of any entity which owns
16 or controls a majority of the voting capital stock of a
17 public utility; or by which 2 public utilities merge, or by
18 which a public utility acquires substantially all of the
19 assets of another public utility; or the transactions
20 described in subsection (g); provided, however, that
21 "reorganization" as used in this Section shall not include a
22 mortgage or pledge transaction entered into to secure a bona
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1 fide borrowing by the party granting the mortgage or making
2 the pledge.
3 In addition to the foregoing, "reorganization" shall
4 include for purposes of this Section any transaction which,
5 regardless of the means by which it is accomplished, will
6 have the effect of terminating the affiliated interest status
7 of any entity as defined in paragraphs (a), (b), (c) or (d)
8 of subsection (2) of Section 7-101 of this Act where such
9 entity had transactions with the public utility, in the 12
10 calendar months immediately preceding the date of termination
11 of such affiliated interest status subject to subsection (3)
12 of Section 7-101 of this Act with a value greater than 15% of
13 the public utility's revenues for that same 12-month period.
14 If the proposed transaction would have the effect of
15 terminating the affiliated interest status of more than one
16 Illinois public utility, the utility with the greatest
17 revenues for the 12-month period shall be used to determine
18 whether such proposed transaction is a reorganization for the
19 purposes of this Section. The Commission shall have
20 jurisdiction over any reorganization as defined herein.
21 (b) No reorganization shall take place without prior
22 Commission approval. The Commission shall not approve any
23 proposed reorganization if the Commission finds, after notice
24 and hearing, that the reorganization will adversely affect
25 the utility's ability to perform its duties under this Act.
26 In reviewing any proposed reorganization, the Commission must
27 find that:
28 (1) the proposed reorganization will not diminish
29 the utility's ability to provide adequate, reliable,
30 efficient, safe and least-cost public utility service;
31 (2) the proposed reorganization will not result in
32 the unjustified subsidization of non-utility activities
33 by the utility or its customers;
34 (3) costs and facilities are fairly and reasonably
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1 allocated between utility and non-utility activities in
2 such a manner that the Commission may identify those
3 costs and facilities which are properly included by the
4 utility for ratemaking purposes;
5 (4) the proposed reorganization will not
6 significantly impair the utility's ability to raise
7 necessary capital on reasonable terms or to maintain a
8 reasonable capital structure;
9 (5) the utility will remain subject to all
10 applicable laws, regulations, rules, decisions and
11 policies governing the regulation of Illinois public
12 utilities;
13 (6) the proposed reorganization is not likely to
14 have a significant adverse effect on competition in those
15 markets over which the Commission has jurisdiction;
16 (7) the proposed reorganization is not likely to
17 result in any adverse rate impacts on retail customers.
18 (c) The Commission shall not approve a reorganization
19 without ruling on: (i) the allocation of any savings
20 resulting from the proposed reorganization; and (ii) whether
21 the companies should be allowed to recover any costs incurred
22 in accomplishing the proposed reorganization and, if so, the
23 amount of costs eligible for recovery and how the costs will
24 be allocated.
25 (d) The Commission shall issue its Order approving or
26 denying the proposed reorganization within 11 months after
27 the application is filed. The Commission may extend the
28 deadline for a period equivalent to the length of any delay
29 which the Commission finds to have been caused by the
30 Applicant's failure to provide data or information requested
31 by the Commission or that the Commission ordered the
32 Applicant to provide to the parties. The Commission may also
33 extend the deadline by an additional period not to exceed 3
34 months to consider amendments to the Applicant's filing, or
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1 to consider reasonably unforeseeable changes in circumstances
2 subsequent to the Applicant's initial filing.
3 (e) Subsections (c) and (d) and subparagraphs (6) and
4 (7) of subsection (b) of this Section shall apply only to
5 merger applications submitted to the Commission subsequent to
6 April 23, 1997. No other Commission approvals shall be
7 required for mergers that are subject to this Section.
8 (f) In approving any proposed reorganization pursuant to
9 this Section the Commission may impose such terms, conditions
10 or requirements as, in its judgment, are necessary to protect
11 the interests of the public utility and its customers.
12 (g) The Commission shall, within 9 months after an
13 application is filed, issue its Order approving or denying
14 any proposed reorganization involving the acquisition by a
15 public utility or its affiliate of all of the common stock or
16 substantially all of the operating assets, whether by merger,
17 creation and acquisition of a limited liability or other
18 company, or otherwise, of another public utility that has
19 secured debt that is, or was, within the year prior to the
20 filing of the application, rated below investment grade by at
21 least 3 nationally recognized rating agencies.
22 (Source: P.A. 90-561, eff. 12-16-97.)
23 (220 ILCS 5/16-103.5 new)
24 Sec. 16-103.5. Renewable energy resources standard.
25 (a) In furtherance of subsection (f) of Section 5 of the
26 Illinois Resource Development and Energy Security Act, which
27 provides that "renewable forms of energy should be promoted
28 as an important element of the energy and environmental
29 policies of the State and it is a goal of the State that at
30 least 5% of the State's energy production and use be derived
31 from renewable forms of energy by 2010 and at least 15% from
32 renewable forms of energy by 2020", a renewable energy
33 resources standard is hereby established in Illinois.
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1 (b) This Section applies to electric utilities and
2 alternative retail electric suppliers.
3 (c) "Renewable energy resources" has the meaning given
4 that term in subsection (f) of Section 6-3 of the Renewable
5 Energy, Energy Efficiency, and Coal Resources Development Law
6 of 1997.
7 (d) During 2004, an electric utility or alternative
8 retail electric supplier shall take all appropriate actions
9 to meet the standards set forth in this Section and shall
10 submit a report to the Commission by December 31, 2004
11 describing that year's actions in detail.
12 (e) Each electric utility or alternative retail electric
13 supplier shall in the years specified supply electricity to
14 Illinois customers generated by renewable energy resources in
15 at least the following minimum percentages of the total
16 electricity supplied by that electric utility or alternative
17 retail electric supplier to customers in Illinois:
18 (1) 2005, 2%;
19 (2) 2007, 3%;
20 (3) 2009, 4%;
21 (4) 2010, 5%;
22 (5) 2012, 7%;
23 (6) 2014, 9%;
24 (7) 2016, 11%;
25 (8) 2018, 13%;
26 (9) 2020 and each year thereafter, 15%.
27 (f) An electric utility or alternative retail electric
28 supplier shall meet the standards in subsection (e) by any
29 combination of:
30 (1) generating electricity in Illinois with
31 renewable energy resources and then supplying that
32 electricity to its Illinois customers; or
33 (2) purchasing electricity generated in Illinois
34 with renewable energy resources and then supplying that
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1 electricity to its Illinois customers.
2 (g) Any electric utility or alternative retail electric
3 supplier may choose to arrange with another electric utility
4 or alternative retail electric supplier to supply its
5 Illinois customers with electricity generated in Illinois
6 with renewable energy resources.
7 (h)(1) By April 1 of each year beginning in 2006, an
8 electric utility or alternative retail electric supplier
9 subject to this Section shall submit a report to the
10 Commission that documents compliance with the provisions of
11 this Section for the preceding year.
12 (2) The report shall include, but need not be limited
13 to, the following information:
14 (A) the total megawatt hours of electricity sold to
15 customers in Illinois;
16 (B) the total megawatt hours of electricity
17 generated in Illinois with each kind of renewable energy
18 resource that is sold to customers in Illinois;
19 (C) the total megawatt hours of electricity
20 acquired from other electric utilities or alternative
21 retail electric suppliers that is generated in Illinois
22 with renewable energy resources; and
23 (D) any other information necessary to demonstrate
24 compliance with this Section.
25 (3) The Commission shall establish additional reporting
26 requirements to ensure implementation of this Section.
27 (4) The Commission shall promptly post every report
28 submitted under this subsection on the Commission's Internet
29 site.
30 (5) The Commission may audit the accuracy of all
31 information submitted under this subsection, and may request
32 and obtain from each electric utility or alternative retail
33 electric supplier any other information necessary to monitor
34 compliance with and enforcement of this Section.
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1 (i) An electric utility or alternative retail electric
2 supplier shall be assessed a penalty of not less than $50 for
3 each megawatt hour of electricity that the electric utility
4 or alternative retail electric supplier does not supply as
5 required under subsection (e).
6 (j) Costs associated with the procurement of renewable
7 energy resources pursuant to this Section shall be fully
8 recoverable from retail customers to the extent allowed by
9 law and shall not be subject to any limitations stated in
10 subsection (i) of Section 16-111 of this Act relating to the
11 recovery of the power and energy cost component in tariffed
12 rates. Costs associated with contracts that were prudent
13 when entered into pursuant to this Section shall not
14 subsequently be denied recovery due to changes in State or
15 federal law.
16 (k) The Commission shall establish penalties for other
17 violations of this Section.".