97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5683

 

Introduced 2/16/2012, by Rep. Brandon W. Phelps

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/16-108.5

    Amends the Public Utilities Act. Provides that if a participating utility that is a combination utility does not achieve one of its annual performance goals, then the utility shall no longer be eligible to annually update the performance-based formula rate tariff. Effective immediately.


LRB097 20550 CEL 66136 b

 

 

A BILL FOR

 

HB5683LRB097 20550 CEL 66136 b

1    AN ACT concerning utilities.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by changing
5Section 16-108.5 as follows:
 
6    (220 ILCS 5/16-108.5)
7    Sec. 16-108.5. Infrastructure investment and
8modernization; regulatory reform.
9    (a) (Blank).
10    (b) For purposes of this Section, "participating utility"
11means an electric utility or a combination utility serving more
12than 1,000,000 customers in Illinois that voluntarily elects
13and commits to undertake (i) the infrastructure investment
14program consisting of the commitments and obligations
15described in this subsection (b) and (ii) the customer
16assistance program consisting of the commitments and
17obligations described in subsection (b-10) of this Section,
18notwithstanding any other provisions of this Act and without
19obtaining any approvals from the Commission or any other agency
20other than as set forth in this Section, regardless of whether
21any such approval would otherwise be required. "Combination
22utility" means a utility that, as of January 1, 2011, provided
23electric service to at least one million retail customers in

 

 

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1Illinois and gas service to at least 500,000 retail customers
2in Illinois. A participating utility shall recover the
3expenditures made under the infrastructure investment program
4through the ratemaking process, including, but not limited to,
5the performance-based formula rate and process set forth in
6this Section.
7    During the infrastructure investment program's peak
8program year, a participating utility other than a combination
9utility shall create 2,000 full-time equivalent jobs in
10Illinois, and a participating utility that is a combination
11utility shall create 450 full-time equivalent jobs in Illinois
12related to the provision of electric service. These jobs shall
13include direct jobs, contractor positions, and induced jobs,
14but shall not include any portion of a job commitment, not
15specifically contingent on an amendatory Act of the 97th
16General Assembly becoming law, between a participating utility
17and a labor union that existed on the effective date of this
18amendatory Act of the 97th General Assembly and that has not
19yet been fulfilled. A portion of the full-time equivalent jobs
20created by each participating utility shall include
21incremental personnel hired subsequent to the effective date of
22this amendatory Act of the 97th General Assembly. For purposes
23of this Section, "peak program year" means the consecutive
2412-month period with the highest number of full-time equivalent
25jobs that occurs between the beginning of investment year 2 and
26the end of investment year 4.

 

 

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1    A participating utility shall meet one of the following
2commitments, as applicable:
3        (1) Beginning no later than 180 days after a
4    participating utility other than a combination utility
5    files a performance-based formula rate tariff pursuant to
6    subsection (c) of this Section, or, beginning no later than
7    January 1, 2012 if such utility files such
8    performance-based formula rate tariff within 14 days of the
9    effective date of this amendatory Act of the 97th General
10    Assembly, the participating utility shall, except as
11    provided in subsection (b-5):
12            (A) over a 5-year period, invest an estimated
13        $1,300,000,000 in electric system upgrades,
14        modernization projects, and training facilities,
15        including, but not limited to:
16                (i) distribution infrastructure improvements
17            totaling an estimated $1,000,000,000, including
18            underground residential distribution cable
19            injection and replacement and mainline cable
20            system refurbishment and replacement projects;
21                (ii) training facility construction or upgrade
22            projects totaling an estimated $10,000,000,
23            provided that, at a minimum, one such facility
24            shall be located in a municipality having a
25            population of more than 2 million residents and one
26            such facility shall be located in a municipality

 

 

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1            having a population of more than 150,000 residents
2            but fewer than 170,000 residents; any such new
3            facility located in a municipality having a
4            population of more than 2 million residents must be
5            designed for the purpose of obtaining, and the
6            owner of the facility shall apply for,
7            certification under the United States Green
8            Building Council's Leadership in Energy Efficiency
9            Design Green Building Rating System;
10                (iii) wood pole inspection, treatment, and
11            replacement programs;
12                (iv) an estimated $200,000,000 for reducing
13            the susceptibility of certain circuits to
14            storm-related damage, including, but not limited
15            to, high winds, thunderstorms, and ice storms;
16            improvements may include, but are not limited to,
17            overhead to underground conversion and other
18            engineered outcomes for circuits; the
19            participating utility shall prioritize the
20            selection of circuits based on each circuit's
21            historical susceptibility to storm-related damage
22            and the ability to provide the greatest customer
23            benefit upon completion of the improvements; to be
24            eligible for improvement, the participating
25            utility's ability to maintain proper tree
26            clearances surrounding the overhead circuit must

 

 

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1            not have been impeded by third parties; and
2            (B) over a 10-year period, invest an estimated
3        $1,300,000,000 to upgrade and modernize its
4        transmission and distribution infrastructure and in
5        Smart Grid electric system upgrades, including, but
6        not limited to:
7                (i) additional smart meters;
8                (ii) distribution automation;
9                (iii) associated cyber secure data
10            communication network; and
11                (iv) substation micro-processor relay
12            upgrades.
13        (2) Beginning no later than 180 days after a
14    participating utility that is a combination utility files a
15    performance-based formula rate tariff pursuant to
16    subsection (c) of this Section, or, beginning no later than
17    January 1, 2012 if such utility files such
18    performance-based formula rate tariff within 14 days of the
19    effective date of this amendatory Act of the 97th General
20    Assembly, the participating utility shall, except as
21    provided in subsection (b-5):
22            (A) over a 10-year period, invest an estimated
23        $265,000,000 in electric system upgrades,
24        modernization projects, and training facilities,
25        including, but not limited to:
26                (i) distribution infrastructure improvements

 

 

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1            totaling an estimated $245,000,000, which may
2            include bulk supply substations, transformers,
3            reconductoring, and rebuilding overhead
4            distribution and sub-transmission lines,
5            underground residential distribution cable
6            injection and replacement and mainline cable
7            system refurbishment and replacement projects;
8                (ii) training facility construction or upgrade
9            projects totaling an estimated $1,000,000; any
10            such new facility must be designed for the purpose
11            of obtaining, and the owner of the facility shall
12            apply for, certification under the United States
13            Green Building Council's Leadership in Energy
14            Efficiency Design Green Building Rating System;
15            and
16                (iii) wood pole inspection, treatment, and
17            replacement programs; and
18            (B) over a 10-year period, invest an estimated
19        $360,000,000 to upgrade and modernize its transmission
20        and distribution infrastructure and in Smart Grid
21        electric system upgrades, including, but not limited
22        to:
23                (i) additional smart meters;
24                (ii) distribution automation;
25                (iii) associated cyber secure data
26            communication network; and

 

 

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1                (iv) substation micro-processor relay
2            upgrades.
3    For purposes of this Section, "Smart Grid electric system
4upgrades" shall have the meaning set forth in subsection (a) of
5Section 16-108.6 of this Act.
6    The investments in the infrastructure investment program
7described in this subsection (b) shall be incremental to the
8participating utility's annual capital investment program, as
9defined by, for purposes of this subsection (b), the
10participating utility's average capital spend for calendar
11years 2008, 2009, and 2010 as reported in the applicable
12Federal Energy Regulatory Commission (FERC) Form 1; provided
13that where one or more utilities have merged, the average
14capital spend shall be determined using the aggregate of the
15merged utilities' capital spend reported in FERC Form 1 for the
16years 2008, 2009, and 2010. A participating utility may add
17reasonable construction ramp-up and ramp-down time to the
18investment periods specified in this subsection (b). For each
19such investment period, the ramp-up and ramp-down time shall
20not exceed a total of 6 months.
21    Within 60 days after filing a tariff under subsection (c)
22of this Section, a participating utility shall submit to the
23Commission its plan, including scope, schedule, and staffing,
24for satisfying its infrastructure investment program
25commitments pursuant to this subsection (b). The submitted plan
26shall include a schedule and staffing plan for the next

 

 

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1calendar year. The plan shall also include a plan for the
2creation, operation, and administration of a Smart Grid test
3bed as described in subsection (c) of Section 16-108.8. The
4plan need not allocate the work equally over the respective
5periods, but should allocate material increments throughout
6such periods commensurate with the work to be undertaken. No
7later than April 1 of each subsequent year, the utility shall
8submit to the Commission a report that includes any updates to
9the plan, a schedule for the next calendar year, the
10expenditures made for the prior calendar year and cumulatively,
11and the number of full-time equivalent jobs created for the
12prior calendar year and cumulatively. If the utility is
13materially deficient in satisfying a schedule or staffing plan,
14then the report must also include a corrective action plan to
15address the deficiency. The fact that the plan, implementation
16of the plan, or a schedule changes shall not imply the
17imprudence or unreasonableness of the infrastructure
18investment program, plan, or schedule. Further, no later than
1945 days following the last day of the first, second, and third
20quarters of each year of the plan, a participating utility
21shall submit to the Commission a verified quarterly report for
22the prior quarter that includes (i) the total number of
23full-time equivalent jobs created during the prior quarter,
24(ii) the total number of employees as of the last day of the
25prior quarter, (iii) the total number of full-time equivalent
26hours in each job classification or job title, (iv) the total

 

 

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1number of incremental employees and contractors in support of
2the investments undertaken pursuant to this subsection (b) for
3the prior quarter, and (v) any other information that the
4Commission may require by rule.
5    With respect to the participating utility's peak job
6commitment, if, after considering the utility's corrective
7action plan and compliance thereunder, the Commission enters an
8order finding, after notice and hearing, that a participating
9utility did not satisfy its peak job commitment described in
10this subsection (b) for reasons that are reasonably within its
11control, then the Commission shall also determine, after
12consideration of the evidence, including, but not limited to,
13evidence submitted by the Department of Commerce and Economic
14Opportunity and the utility, the deficiency in the number of
15full-time equivalent jobs during the peak program year due to
16such failure. The Commission shall notify the Department of any
17proceeding that is initiated pursuant to this paragraph. For
18each full-time equivalent job deficiency during the peak
19program year that the Commission finds as set forth in this
20paragraph, the participating utility shall, within 30 days
21after the entry of the Commission's order, pay $6,000 to a fund
22for training grants administered under Section 605-800 of The
23Department of Commerce and Economic Opportunity Law, which
24shall not be a recoverable expense.
25    With respect to the participating utility's investment
26amount commitments, if, after considering the utility's

 

 

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1corrective action plan and compliance thereunder, the
2Commission enters an order finding, after notice and hearing,
3that a participating utility is not satisfying its investment
4amount commitments described in this subsection (b), then the
5utility shall no longer be eligible to annually update the
6performance-based formula rate tariff pursuant to subsection
7(d) of this Section. In such event, the then current rates
8shall remain in effect until such time as new rates are set
9pursuant to Article IX of this Act, subject to retroactive
10adjustment, with interest, to reconcile rates charged with
11actual costs.
12    If the Commission finds that a participating utility is no
13longer eligible to update the performance-based formula rate
14tariff pursuant to subsection (d) of this Section, or the
15performance-based formula rate is otherwise terminated, then
16the participating utility's voluntary commitments and
17obligations under this subsection (b) shall immediately
18terminate, except for the utility's obligation to pay an amount
19already owed to the fund for training grants pursuant to a
20Commission order.
21    In meeting the obligations of this subsection (b), to the
22extent feasible and consistent with State and federal law, the
23investments under the infrastructure investment program should
24provide employment opportunities for all segments of the
25population and workforce, including minority-owned and
26female-owned business enterprises, and shall not, consistent

 

 

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1with State and federal law, discriminate based on race or
2socioeconomic status.
3    (b-5) Nothing in this Section shall prohibit the Commission
4from investigating the prudence and reasonableness of the
5expenditures made under the infrastructure investment program
6during the annual review required by subsection (d) of this
7Section and shall, as part of such investigation, determine
8whether the utility's actual costs under the program are
9prudent and reasonable. The fact that a participating utility
10invests more than the minimum amounts specified in subsection
11(b) of this Section or its plan shall not imply imprudence or
12unreasonableness.
13    If the participating utility finds that it is implementing
14its plan for satisfying the infrastructure investment program
15commitments described in subsection (b) of this Section at a
16cost below the estimated amounts specified in subsection (b) of
17this Section, then the utility may file a petition with the
18Commission requesting that it be permitted to satisfy its
19commitments by spending less than the estimated amounts
20specified in subsection (b) of this Section. The Commission
21shall, after notice and hearing, enter its order approving, or
22approving as modified, or denying each such petition within 150
23days after the filing of the petition.
24    In no event, absent General Assembly approval, shall the
25capital investment costs incurred by a participating utility
26other than a combination utility in satisfying its

 

 

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1infrastructure investment program commitments described in
2subsection (b) of this Section exceed $3,000,000,000 or, for a
3participating utility that is a combination utility,
4$720,000,000. If the participating utility's updated cost
5estimates for satisfying its infrastructure investment program
6commitments described in subsection (b) of this Section exceed
7the limitation imposed by this subsection (b-5), then it shall
8submit a report to the Commission that identifies the increased
9costs and explains the reason or reasons for the increased
10costs no later than the year in which the utility estimates it
11will exceed the limitation. The Commission shall review the
12report and shall, within 90 days after the participating
13utility files the report, report to the General Assembly its
14findings regarding the participating utility's report. If the
15General Assembly does not amend the limitation imposed by this
16subsection (b-5), then the utility may modify its plan so as
17not to exceed the limitation imposed by this subsection (b-5)
18and may propose corresponding changes to the metrics
19established pursuant to subparagraphs (5) through (8) of
20subsection (f) of this Section, and the Commission may modify
21the metrics and incremental savings goals established pursuant
22to subsection (f) of this Section accordingly.
23    (b-10) All participating utilities shall make
24contributions for an energy low-income and support program in
25accordance with this subsection. Beginning no later than 180
26days after a participating utility files a performance-based

 

 

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1formula rate tariff pursuant to subsection (c) of this Section,
2or beginning no later than January 1, 2012 if such utility
3files such performance-based formula rate tariff within 14 days
4of the effective date of this amendatory Act of the 97th
5General Assembly, and without obtaining any approvals from the
6Commission or any other agency other than as set forth in this
7Section, regardless of whether any such approval would
8otherwise be required, a participating utility other than a
9combination utility shall pay $10,000,000 per year for 5 years
10and a participating utility that is a combination utility shall
11pay $1,000,000 per year for 10 years to the energy low-income
12and support program, which is intended to fund customer
13assistance programs with the primary purpose being avoidance of
14imminent disconnection. Such programs may include:
15        (1) a residential hardship program that may partner
16    with community-based organizations, including senior
17    citizen organizations, and provides grants to low-income
18    residential customers, including low-income senior
19    citizens, who demonstrate a hardship;
20        (2) a program that provides grants and other bill
21    payment concessions to disabled veterans who demonstrate a
22    hardship and members of the armed services or reserve
23    forces of the United States or members of the Illinois
24    National Guard who are on active duty pursuant to an
25    executive order of the President of the United States, an
26    act of the Congress of the United States, or an order of

 

 

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1    the Governor and who demonstrate a hardship;
2        (3) a budget assistance program that provides tools and
3    education to low-income senior citizens to assist them with
4    obtaining information regarding energy usage and effective
5    means of managing energy costs;
6        (4) a non-residential special hardship program that
7    provides grants to non-residential customers such as small
8    businesses and non-profit organizations that demonstrate a
9    hardship, including those providing services to senior
10    citizen and low-income customers; and
11        (5) a performance-based assistance program that
12    provides grants to encourage residential customers to make
13    on-time payments by matching a portion of the customer's
14    payments or providing credits towards arrearages.
15    The payments made by a participating utility pursuant to
16this subsection (b-10) shall not be a recoverable expense. A
17participating utility may elect to fund either new or existing
18customer assistance programs, including, but not limited to,
19those that are administered by the utility.
20    Programs that use funds that are provided by a
21participating utility to reduce utility bills may be
22implemented through tariffs that are filed with and reviewed by
23the Commission. If a utility elects to file tariffs with the
24Commission to implement all or a portion of the programs, those
25tariffs shall, regardless of the date actually filed, be deemed
26accepted and approved, and shall become effective on the

 

 

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1effective date of this amendatory Act of the 97th General
2Assembly. The participating utilities whose customers benefit
3from the funds that are disbursed as contemplated in this
4Section shall file annual reports documenting the disbursement
5of those funds with the Commission. The Commission has the
6authority to audit disbursement of the funds to ensure they
7were disbursed consistently with this Section.
8    If the Commission finds that a participating utility is no
9longer eligible to update the performance-based formula rate
10tariff pursuant to subsection (d) of this Section, or the
11performance-based formula rate is otherwise terminated, then
12the participating utility's voluntary commitments and
13obligations under this subsection (b-10) shall immediately
14terminate.
15    (c) A participating utility may elect to recover its
16delivery services costs through a performance-based formula
17rate approved by the Commission, which shall specify the cost
18components that form the basis of the rate charged to customers
19with sufficient specificity to operate in a standardized manner
20and be updated annually with transparent information that
21reflects the utility's actual costs to be recovered during the
22applicable rate year, which is the period beginning with the
23first billing day of January and extending through the last
24billing day of the following December. In the event the utility
25recovers a portion of its costs through automatic adjustment
26clause tariffs on the effective date of this amendatory Act of

 

 

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1the 97th General Assembly, the utility may elect to continue to
2recover these costs through such tariffs, but then these costs
3shall not be recovered through the performance-based formula
4rate. In the event the participating utility, prior to the
5effective date of this amendatory Act of the 97th General
6Assembly, filed electric delivery services tariffs with the
7Commission pursuant to Section 9-201 of this Act that are
8related to the recovery of its electric delivery services costs
9that are still pending on the effective date of this amendatory
10Act of the 97th General Assembly, the participating utility
11shall, at the time it files its performance-based formula rate
12tariff with the Commission, also file a notice of withdrawal
13with the Commission to withdraw the electric delivery services
14tariffs previously filed pursuant to Section 9-201 of this Act.
15Upon receipt of such notice, the Commission shall dismiss with
16prejudice any docket that had been initiated to investigate the
17electric delivery services tariffs filed pursuant to Section
189-201 of this Act, and such tariffs and the record related
19thereto shall not be the subject of any further hearing,
20investigation, or proceeding of any kind related to rates for
21electric delivery services.
22    The performance-based formula rate shall be implemented
23through a tariff filed with the Commission consistent with the
24provisions of this subsection (c) that shall be applicable to
25all delivery services customers. The Commission shall initiate
26and conduct an investigation of the tariff in a manner

 

 

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1consistent with the provisions of this subsection (c) and the
2provisions of Article IX of this Act to the extent they do not
3conflict with this subsection (c). Except in the case where the
4Commission finds, after notice and hearing, that a
5participating utility is not satisfying its investment amount
6commitments under subsection (b) of this Section, the
7performance-based formula rate shall remain in effect at the
8discretion of the utility. The performance-based formula rate
9approved by the Commission shall do the following:
10        (1) Provide for the recovery of the utility's actual
11    costs of delivery services that are prudently incurred and
12    reasonable in amount consistent with Commission practice
13    and law. The sole fact that a cost differs from that
14    incurred in a prior calendar year or that an investment is
15    different from that made in a prior calendar year shall not
16    imply the imprudence or unreasonableness of that cost or
17    investment.
18        (2) Reflect the utility's actual capital structure for
19    the applicable calendar year, excluding goodwill, subject
20    to a determination of prudence and reasonableness
21    consistent with Commission practice and law.
22        (3) Include a cost of equity, which shall be calculated
23    as the sum of the following:
24            (A) the average for the applicable calendar year of
25        the monthly average yields of 30-year U.S. Treasury
26        bonds published by the Board of Governors of the

 

 

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1        Federal Reserve System in its weekly H.15 Statistical
2        Release or successor publication; and
3            (B) 580 basis points.
4        At such time as the Board of Governors of the Federal
5    Reserve System ceases to include the monthly average yields
6    of 30-year U.S. Treasury bonds in its weekly H.15
7    Statistical Release or successor publication, the monthly
8    average yields of the U.S. Treasury bonds then having the
9    longest duration published by the Board of Governors in its
10    weekly H.15 Statistical Release or successor publication
11    shall instead be used for purposes of this paragraph (3).
12        (4) Permit and set forth protocols, subject to a
13    determination of prudence and reasonableness consistent
14    with Commission practice and law, for the following:
15            (A) recovery of incentive compensation expense
16        that is based on the achievement of operational
17        metrics, including metrics related to budget controls,
18        outage duration and frequency, safety, customer
19        service, efficiency and productivity, and
20        environmental compliance. Incentive compensation
21        expense that is based on net income or an affiliate's
22        earnings per share shall not be recoverable under the
23        performance-based formula rate;
24            (B) recovery of pension and other post-employment
25        benefits expense, provided that such costs are
26        supported by an actuarial study;

 

 

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1            (C) recovery of severance costs, provided that if
2        the amount is over $3,700,000 for a participating
3        utility that is a combination utility or $10,000,000
4        for a participating utility that serves more than 3
5        million retail customers, then the full amount shall be
6        amortized consistent with subparagraph (F) of this
7        paragraph (4);
8            (D) investment return on pension assets net of
9        deferred tax benefits equal to the utility's long-term
10        debt cost of capital as of the end of the applicable
11        calendar year;
12            (E) recovery of the expenses related to the
13        Commission proceeding under this subsection (c) to
14        approve this performance-based formula rate and
15        initial rates or to subsequent proceedings related to
16        the formula, provided that the recovery shall be
17        amortized over a 3-year period; recovery of expenses
18        related to the annual Commission proceedings under
19        subsection (d) of this Section to review the inputs to
20        the performance-based formula rate shall be expensed
21        and recovered through the performance-based formula
22        rate;
23            (F) amortization over a 5-year period of the full
24        amount of each charge or credit that exceeds $3,700,000
25        for a participating utility that is a combination
26        utility or $10,000,000 for a participating utility

 

 

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1        that serves more than 3 million retail customers in the
2        applicable calendar year and that relates to a
3        workforce reduction program's severance costs, changes
4        in accounting rules, changes in law, compliance with
5        any Commission-initiated audit, or a single storm or
6        other similar expense, provided that any unamortized
7        balance shall be reflected in rate base. For purposes
8        of this subparagraph (F), changes in law includes any
9        enactment, repeal, or amendment in a law, ordinance,
10        rule, regulation, interpretation, permit, license,
11        consent, or order, including those relating to taxes,
12        accounting, or to environmental matters, or in the
13        interpretation or application thereof by any
14        governmental authority occurring after the effective
15        date of this amendatory Act of the 97th General
16        Assembly;
17            (G) recovery of existing regulatory assets over
18        the periods previously authorized by the Commission;
19            (H) historical weather normalized billing
20        determinants; and
21            (I) allocation methods for common costs.
22        (5) Provide that if the participating utility's earned
23    rate of return on common equity related to the provision of
24    delivery services for the prior rate year (calculated using
25    costs and capital structure approved by the Commission as
26    provided in subparagraph (2) of this subsection (c),

 

 

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1    consistent with this Section, in accordance with
2    Commission rules and orders, including, but not limited to,
3    adjustments for goodwill, and after any Commission-ordered
4    disallowances and taxes) is more than 50 basis points
5    higher than the rate of return on common equity calculated
6    pursuant to paragraph (3) of this subsection (c) (after
7    adjusting for any penalties to the rate of return on common
8    equity applied pursuant to the performance metrics
9    provision of subsection (f) of this Section), then the
10    participating utility shall apply a credit through the
11    performance-based formula rate that reflects an amount
12    equal to the value of that portion of the earned rate of
13    return on common equity that is more than 50 basis points
14    higher than the rate of return on common equity calculated
15    pursuant to paragraph (3) of this subsection (c) (after
16    adjusting for any penalties to the rate of return on common
17    equity applied pursuant to the performance metrics
18    provision of subsection (f) of this Section) for the prior
19    rate year, adjusted for taxes. If the participating
20    utility's earned rate of return on common equity related to
21    the provision of delivery services for the prior rate year
22    (calculated using costs and capital structure approved by
23    the Commission as provided in subparagraph (2) of this
24    subsection (c), consistent with this Section, in
25    accordance with Commission rules and orders, including,
26    but not limited to, adjustments for goodwill, and after any

 

 

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1    Commission-ordered disallowances and taxes) is more than
2    50 basis points less than the return on common equity
3    calculated pursuant to paragraph (3) of this subsection (c)
4    (after adjusting for any penalties to the rate of return on
5    common equity applied pursuant to the performance metrics
6    provision of subsection (f) of this Section), then the
7    participating utility shall apply a charge through the
8    performance-based formula rate that reflects an amount
9    equal to the value of that portion of the earned rate of
10    return on common equity that is more than 50 basis points
11    less than the rate of return on common equity calculated
12    pursuant to paragraph (3) of this subsection (c) (after
13    adjusting for any penalties to the rate of return on common
14    equity applied pursuant to the performance metrics
15    provision of subsection (f) of this Section) for the prior
16    rate year, adjusted for taxes.
17        (6) Provide for an annual reconciliation, with
18    interest as described in subsection (d) of this Section, of
19    the revenue requirement reflected in rates for each
20    calendar year, beginning with the calendar year in which
21    the utility files its performance-based formula rate
22    tariff pursuant to subsection (c) of this Section, with
23    what the revenue requirement would have been had the actual
24    cost information for the applicable calendar year been
25    available at the filing date.
26    The utility shall file, together with its tariff, final

 

 

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1data based on its most recently filed FERC Form 1, plus
2projected plant additions and correspondingly updated
3depreciation reserve and expense for the calendar year in which
4the tariff and data are filed, that shall populate the
5performance-based formula rate and set the initial delivery
6services rates under the formula. For purposes of this Section,
7"FERC Form 1" means the Annual Report of Major Electric
8Utilities, Licensees and Others that electric utilities are
9required to file with the Federal Energy Regulatory Commission
10under the Federal Power Act, Sections 3, 4(a), 304 and 209,
11modified as necessary to be consistent with 83 Ill. Admin. Code
12Part 415 as of May 1, 2011. Nothing in this Section is intended
13to allow costs that are not otherwise recoverable to be
14recoverable by virtue of inclusion in FERC Form 1.
15    After the utility files its proposed performance-based
16formula rate structure and protocols and initial rates, the
17Commission shall initiate a docket to review the filing. The
18Commission shall enter an order approving, or approving as
19modified, the performance-based formula rate, including the
20initial rates, as just and reasonable within 270 days after the
21date on which the tariff was filed, or, if the tariff is filed
22within 14 days after the effective date of this amendatory Act
23of the 97th General Assembly, then by May 31, 2012. Such review
24shall be based on the same evidentiary standards, including,
25but not limited to, those concerning the prudence and
26reasonableness of the costs incurred by the utility, the

 

 

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1Commission applies in a hearing to review a filing for a
2general increase in rates under Article IX of this Act. The
3initial rates shall take effect within 30 days after the
4Commission's order approving the performance-based formula
5rate tariff.
6    Until such time as the Commission approves a different rate
7design and cost allocation pursuant to subsection (e) of this
8Section, rate design and cost allocation across customer
9classes shall be consistent with the Commission's most recent
10order regarding the participating utility's request for a
11general increase in its delivery services rates.
12    Subsequent changes to the performance-based formula rate
13structure or protocols shall be made as set forth in Section
149-201 of this Act, but nothing in this subsection (c) is
15intended to limit the Commission's authority under Article IX
16and other provisions of this Act to initiate an investigation
17of a participating utility's performance-based formula rate
18tariff, provided that any such changes shall be consistent with
19paragraphs (1) through (6) of this subsection (c). Any change
20ordered by the Commission shall be made at the same time new
21rates take effect following the Commission's next order
22pursuant to subsection (d) of this Section, provided that the
23new rates take effect no less than 30 days after the date on
24which the Commission issues an order adopting the change.
25    A participating utility that files a tariff pursuant to
26this subsection (c) must submit a one-time $200,000 filing fee

 

 

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1at the time the Chief Clerk of the Commission accepts the
2filing, which shall be a recoverable expense.
3    In the event the performance-based formula rate is
4terminated, the then current rates shall remain in effect until
5such time as new rates are set pursuant to Article IX of this
6Act, subject to retroactive rate adjustment, with interest, to
7reconcile rates charged with actual costs. At such time that
8the performance-based formula rate is terminated, the
9participating utility's voluntary commitments and obligations
10under subsection (b) of this Section shall immediately
11terminate, except for the utility's obligation to pay an amount
12already owed to the fund for training grants pursuant to a
13Commission order issued under subsection (b) of this Section.
14    (d) Subsequent to the Commission's issuance of an order
15approving the utility's performance-based formula rate
16structure and protocols, and initial rates under subsection (c)
17of this Section, the utility shall file, on or before May 1 of
18each year, with the Chief Clerk of the Commission its updated
19cost inputs to the performance-based formula rate for the
20applicable rate year and the corresponding new charges. Each
21such filing shall conform to the following requirements and
22include the following information:
23        (1) The inputs to the performance-based formula rate
24    for the applicable rate year shall be based on final
25    historical data reflected in the utility's most recently
26    filed annual FERC Form 1 plus projected plant additions and

 

 

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1    correspondingly updated depreciation reserve and expense
2    for the calendar year in which the inputs are filed. The
3    filing shall also include a reconciliation of the revenue
4    requirement that was in effect for the prior rate year (as
5    set by the cost inputs for the prior rate year) with the
6    actual revenue requirement for the prior rate year (as
7    reflected in the applicable FERC Form 1 that reports the
8    actual costs for the prior rate year). Any over-collection
9    or under-collection indicated by such reconciliation shall
10    be reflected as a credit against, or recovered as an
11    additional charge to, respectively, with interest, the
12    charges for the applicable rate year. Provided, however,
13    that the first such reconciliation shall be for the
14    calendar year in which the utility files its
15    performance-based formula rate tariff pursuant to
16    subsection (c) of this Section and shall reconcile (i) the
17    revenue requirement or requirements established by the
18    rate order or orders in effect from time to time during
19    such calendar year (weighted, as applicable) with (ii) the
20    revenue requirement for that calendar year calculated
21    pursuant to the performance-based formula rate using (A)
22    actual costs for that year as reflected in the applicable
23    FERC Form 1, and (B) for the first such reconciliation
24    only, the cost of equity, which shall be calculated as the
25    sum of 590 basis points plus the average for the applicable
26    calendar year of the monthly average yields of 30-year U.S.

 

 

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1    Treasury bonds published by the Board of Governors of the
2    Federal Reserve System in its weekly H.15 Statistical
3    Release or successor publication. The first such
4    reconciliation is not intended to provide for the recovery
5    of costs previously excluded from rates based on a prior
6    Commission order finding of imprudence or
7    unreasonableness. Each reconciliation shall be certified
8    by the participating utility in the same manner that FERC
9    Form 1 is certified. The filing shall also include the
10    charge or credit, if any, resulting from the calculation
11    required by paragraph (6) of subsection (c) of this
12    Section.
13        Notwithstanding anything that may be to the contrary,
14    the intent of the reconciliation is to ultimately reconcile
15    the revenue requirement reflected in rates for each
16    calendar year, beginning with the calendar year in which
17    the utility files its performance-based formula rate
18    tariff pursuant to subsection (c) of this Section, with
19    what the revenue requirement would have been had the actual
20    cost information for the applicable calendar year been
21    available at the filing date.
22        (2) The new charges shall take effect beginning on the
23    first billing day of the following January billing period
24    and remain in effect through the last billing day of the
25    next December billing period regardless of whether the
26    Commission enters upon a hearing pursuant to this

 

 

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1    subsection (d).
2        (3) The filing shall include relevant and necessary
3    data and documentation for the applicable rate year that is
4    consistent with the Commission's rules applicable to a
5    filing for a general increase in rates or any rules adopted
6    by the Commission to implement this Section. Normalization
7    adjustments shall not be required. Notwithstanding any
8    other provision of this Section or Act or any rule or other
9    requirement adopted by the Commission, a participating
10    utility that is a combination utility with more than one
11    rate zone shall not be required to file a separate set of
12    such data and documentation for each rate zone and may
13    combine such data and documentation into a single set of
14    schedules.
15    Within 45 days after the utility files its annual update of
16cost inputs to the performance-based formula rate, the
17Commission shall have the authority, either upon complaint or
18its own initiative, but with reasonable notice, to enter upon a
19hearing concerning the prudence and reasonableness of the costs
20incurred by the utility to be recovered during the applicable
21rate year that are reflected in the inputs to the
22performance-based formula rate derived from the utility's FERC
23Form 1. During the course of the hearing, each objection shall
24be stated with particularity and evidence provided in support
25thereof, after which the utility shall have the opportunity to
26rebut the evidence. Discovery shall be allowed consistent with

 

 

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1the Commission's Rules of Practice, which Rules shall be
2enforced by the Commission or the assigned hearing examiner.
3The Commission shall apply the same evidentiary standards,
4including, but not limited to, those concerning the prudence
5and reasonableness of the costs incurred by the utility, in the
6hearing as it would apply in a hearing to review a filing for a
7general increase in rates under Article IX of this Act. The
8Commission shall not, however, have the authority in a
9proceeding under this subsection (d) to consider or order any
10changes to the structure or protocols of the performance-based
11formula rate approved pursuant to subsection (c) of this
12Section. In a proceeding under this subsection (d), the
13Commission shall enter its order no later than the earlier of
14240 days after the utility's filing of its annual update of
15cost inputs to the performance-based formula rate or December
1631. The Commission's determinations of the prudence and
17reasonableness of the costs incurred for the applicable
18calendar year shall be final upon entry of the Commission's
19order and shall not be subject to reopening, reexamination, or
20collateral attack in any other Commission proceeding, case,
21docket, order, rule or regulation, provided, however, that
22nothing in this subsection (d) shall prohibit a party from
23petitioning the Commission to rehear or appeal to the courts
24the order pursuant to the provisions of this Act.
25    In the event the Commission does not, either upon complaint
26or its own initiative, enter upon a hearing within 45 days

 

 

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1after the utility files the annual update of cost inputs to its
2performance-based formula rate, then the costs incurred for the
3applicable calendar year shall be deemed prudent and
4reasonable, and the filed charges shall not be subject to
5reopening, reexamination, or collateral attack in any other
6proceeding, case, docket, order, rule, or regulation.
7    A participating utility's first filing of the updated cost
8inputs, and any Commission investigation of such inputs
9pursuant to this subsection (d) shall proceed notwithstanding
10the fact that the Commission's investigation under subsection
11(c) of this Section is still pending and notwithstanding any
12other law, order, rule, or Commission practice to the contrary.
13    (e) Nothing in subsections (c) or (d) of this Section shall
14prohibit the Commission from investigating, or a participating
15utility from filing, revenue-neutral tariff changes related to
16rate design of a performance-based formula rate that has been
17placed into effect for the utility. Following approval of a
18participating utility's performance-based formula rate tariff
19pursuant to subsection (c) of this Section, the utility shall
20make a filing with the Commission within one year after the
21effective date of the performance-based formula rate tariff
22that proposes changes to the tariff to incorporate the findings
23of any final rate design orders of the Commission applicable to
24the participating utility and entered subsequent to the
25Commission's approval of the tariff. The Commission shall,
26after notice and hearing, enter its order approving, or

 

 

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1approving with modification, the proposed changes to the
2performance-based formula rate tariff within 240 days after the
3utility's filing. Following such approval, the utility shall
4make a filing with the Commission during each subsequent 3-year
5period that either proposes revenue-neutral tariff changes or
6re-files the existing tariffs without change, which shall
7present the Commission with an opportunity to suspend the
8tariffs and consider revenue-neutral tariff changes related to
9rate design.
10    (f) Within 30 days after the filing of a tariff pursuant to
11subsection (c) of this Section, each participating utility
12shall develop and file with the Commission multi-year metrics
13designed to achieve, ratably (i.e., in equal segments) over a
1410-year period, improvement over baseline performance values
15as follows:
16        (1) Twenty percent improvement in the System Average
17    Interruption Frequency Index, using a baseline of the
18    average of the data from 2001 through 2010.
19        (2) Fifteen percent improvement in the system Customer
20    Average Interruption Duration Index, using a baseline of
21    the average of the data from 2001 through 2010.
22        (3) For a participating utility other than a
23    combination utility, 20% improvement in the System Average
24    Interruption Frequency Index for its Southern Region,
25    using a baseline of the average of the data from 2001
26    through 2010. For purposes of this paragraph (3), Southern

 

 

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1    Region shall have the meaning set forth in the
2    participating utility's most recent report filed pursuant
3    to Section 16-125 of this Act.
4        (3.5) For a participating utility other than a
5    combination utility, 20% improvement in the System Average
6    Interruption Frequency Index for its Northeastern Region,
7    using a baseline of the average of the data from 2001
8    through 2010. For purposes of this paragraph (3.5),
9    Northeastern Region shall have the meaning set forth in the
10    participating utility's most recent report filed pursuant
11    to Section 16-125 of this Act.
12        (4) Seventy-five percent improvement in the total
13    number of customers who exceed the service reliability
14    targets as set forth in subparagraphs (A) through (C) of
15    paragraph (4) of subsection (b) of 83 Ill. Admin. Code Part
16    411.140 as of May 1, 2011, using 2010 as the baseline year.
17        (5) Reduction in issuance of estimated electric bills:
18    90% improvement for a participating utility other than a
19    combination utility, and 56% improvement for a
20    participating utility that is a combination utility, using
21    a baseline of the average number of estimated bills for the
22    years 2008 through 2010.
23        (6) Consumption on inactive meters: 90% improvement
24    for a participating utility other than a combination
25    utility, and 56% improvement for a participating utility
26    that is a combination utility, using a baseline of the

 

 

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1    average unbilled kilowatthours for the years 2009 and 2010.
2        (7) Unaccounted for energy: 50% improvement for a
3    participating utility other than a combination utility
4    using a baseline of the non-technical line loss unaccounted
5    for energy kilowatthours for the year 2009.
6        (8) Uncollectible expense: reduce uncollectible
7    expense by at least $30,000,000 for a participating utility
8    other than a combination utility and by at least $3,500,000
9    for a participating utility that is a combination utility,
10    using a baseline of the average uncollectible expense for
11    the years 2008 through 2010.
12        (9) Opportunities for minority-owned and female-owned
13    business enterprises: design a performance metric
14    regarding the creation of opportunities for minority-owned
15    and female-owned business enterprises consistent with
16    State and federal law using a base performance value of the
17    percentage of the participating utility's capital
18    expenditures that were paid to minority-owned and
19    female-owned business enterprises in 2010.
20    The definitions set forth in 83 Ill. Admin. Code Part
21411.20 as of May 1, 2011 shall be used for purposes of
22calculating performance under paragraphs (1) through (3.5) of
23this subsection (f), provided, however, that the participating
24utility may exclude up to 9 extreme weather event days from
25such calculation for each year, and provided further that the
26participating utility shall exclude 9 extreme weather event

 

 

HB5683- 34 -LRB097 20550 CEL 66136 b

1days when calculating each year of the baseline period to the
2extent that there are 9 such days in a given year of the
3baseline period. For purposes of this Section, an extreme
4weather event day is a 24-hour calendar day (beginning at 12:00
5a.m. and ending at 11:59 p.m.) during which any weather event
6(e.g., storm, tornado) caused interruptions for 10,000 or more
7of the participating utility's customers for 3 hours or more.
8If there are more than 9 extreme weather event days in a year,
9then the utility may choose no more than 9 extreme weather
10event days to exclude, provided that the same extreme weather
11event days are excluded from each of the calculations performed
12under paragraphs (1) through (3.5) of this subsection (f).
13    The metrics shall include incremental performance goals
14for each year of the 10-year period, which shall be designed to
15demonstrate that the utility is on track to achieve the
16performance goal in each category at the end of the 10-year
17period. The utility shall elect when the 10-year period shall
18commence for the metrics set forth in subparagraphs (1) through
19(4) and (9) of this subsection (f), provided that it begins no
20later than 14 months following the date on which the utility
21begins investing pursuant to subsection (b) of this Section,
22and when the 10-year period shall commence for the metrics set
23forth in subparagraphs (5) through (8) of this subsection (f),
24provided that it begins no later than 14 months following the
25date on which the Commission enters its order approving the
26utility's Advanced Metering Infrastructure Deployment Plan

 

 

HB5683- 35 -LRB097 20550 CEL 66136 b

1pursuant to subsection (c) of Section 16-108.6 of this Act.
2    The metrics and performance goals set forth in
3subparagraphs (5) through (8) of this subsection (f) are based
4on the assumptions that the participating utility may fully
5implement the technology described in subsection (b) of this
6Section, including utilizing the full functionality of such
7technology and that there is no requirement for personal
8on-site notification. If the utility is unable to meet the
9metrics and performance goals set forth in subparagraphs (5)
10through (8) of this subsection (f) for such reasons, and the
11Commission so finds after notice and hearing, then the utility
12shall be excused from compliance, but only to the limited
13extent achievement of the affected metrics and performance
14goals was hindered by the less than full implementation.
15    (f-5) The financial penalties applicable to the metrics
16described in subparagraphs (1) through (8) of subsection (f) of
17this Section, as applicable, shall be applied through an
18adjustment to the participating utility's return on equity of
19no more than a total of 30 basis points in each of the first 3
20years, of no more than a total of 34 basis points in each of the
213 years thereafter, and of no more than a total of 38 basis
22points in each of the 4 years thereafter, as follows:
23        (1) With respect to each of the incremental annual
24    performance goals established pursuant to paragraph (1) of
25    subsection (f) of this Section,
26            (A) for each year that a participating utility

 

 

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1        other than a combination utility does not achieve the
2        annual goal, the participating utility's return on
3        equity shall be reduced as follows: during years 1
4        through 3, by 5 basis points; during years 4 through 6,
5        by 6 basis points; and during years 7 through 10, by 7
6        basis points; and
7            (B) for each year that a participating utility that
8        is a combination utility does not achieve the annual
9        goal, the participating utility's return on equity
10        shall be reduced as follows: during years 1 through 3,
11        by 10 basis points; during years 4 through 6, by 12
12        basis points; and during years 7 through 10, by 14
13        basis points.
14        (2) With respect to each of the incremental annual
15    performance goals established pursuant to paragraph (2) of
16    subsection (f) of this Section, for each year that the
17    participating utility does not achieve each such goal, the
18    participating utility's return on equity shall be reduced
19    as follows: during years 1 through 3, by 5 basis points;
20    during years 4 through 6, by 6 basis points; and during
21    years 7 through 10, by 7 basis points.
22        (3) With respect to each of the incremental annual
23    performance goals established pursuant to paragraphs (3)
24    and (3.5) of subsection (f) of this Section, for each year
25    that a participating utility other than a combination
26    utility does not achieve both such goals, the participating

 

 

HB5683- 37 -LRB097 20550 CEL 66136 b

1    utility's return on equity shall be reduced as follows:
2    during years 1 through 3, by 5 basis points; during years 4
3    through 6, by 6 basis points; and during years 7 through
4    10, by 7 basis points.
5        (4) With respect to each of the incremental annual
6    performance goals established pursuant to paragraph (4) of
7    subsection (f) of this Section, for each year that the
8    participating utility does not achieve each such goal, the
9    participating utility's return on equity shall be reduced
10    as follows: during years 1 through 3, by 5 basis points;
11    during years 4 through 6, by 6 basis points; and during
12    years 7 through 10, by 7 basis points.
13        (5) With respect to each of the incremental annual
14    performance goals established pursuant to subparagraph (5)
15    of subsection (f) of this Section, for each year that the
16    participating utility does not achieve at least 95% of each
17    such goal, the participating utility's return on equity
18    shall be reduced by 5 basis points for each such unachieved
19    goal.
20        (6) With respect to each of the incremental annual
21    performance goals established pursuant to paragraphs (6),
22    (7), and (8) of subsection (f) of this Section, as
23    applicable, which together measure non-operational
24    customer savings and benefits relating to the
25    implementation of the Advanced Metering Infrastructure
26    Deployment Plan, as defined in Section 16-108.6 of this

 

 

HB5683- 38 -LRB097 20550 CEL 66136 b

1    Act, the performance under each such goal shall be
2    calculated in terms of the percentage of the goal achieved.
3    The percentage of goal achieved for each of the goals shall
4    be aggregated, and an average percentage value calculated,
5    for each year of the 10-year period. If the utility does
6    not achieve an average percentage value in a given year of
7    at least 95%, the participating utility's return on equity
8    shall be reduced by 5 basis points.
9    The financial penalties shall be applied as described in
10this subsection (f-5) for the 12-month period in which the
11deficiency occurred through a separate tariff mechanism, which
12shall be filed by the utility together with its metrics. In the
13event the formula rate tariff established pursuant to
14subsection (c) of this Section terminates, the utility's
15obligations under subsection (f) of this Section and this
16subsection (f-5) shall also terminate, provided, however, that
17the tariff mechanism established pursuant to subsection (f) of
18this Section and this subsection (f-5) shall remain in effect
19until any penalties due and owing at the time of such
20termination are applied.
21    The Commission shall, after notice and hearing, enter an
22order within 120 days after the metrics are filed approving, or
23approving with modification, a participating utility's tariff
24or mechanism to satisfy the metrics set forth in subsection (f)
25of this Section. On June 1 of each subsequent year, each
26participating utility shall file a report with the Commission

 

 

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1that includes, among other things, a description of how the
2participating utility performed under each metric and an
3identification of any extraordinary events that adversely
4impacted the utility's performance. Whenever a participating
5utility, other than a combination utility, does not satisfy the
6metrics required pursuant to subsection (f) of this Section,
7the Commission shall, after notice and hearing, enter an order
8approving financial penalties in accordance with this
9subsection (f-5). The Commission-approved financial penalties
10shall be applied beginning with the next rate year. Nothing in
11this Section shall authorize the Commission to reduce or
12otherwise obviate the imposition of financial penalties for
13failing to achieve one or more of the metrics established
14pursuant to subparagraph (1) through (4) of subsection (f) of
15this Section.
16    Whenever a participating utility that is a combination
17utility does not achieve one of its annual performance goals
18established pursuant to subsection (f) of this Section, then
19the utility shall no longer be eligible to annually update the
20performance-based formula rate tariff pursuant to subsection
21(d) of this Section. In such event, the then current rates
22shall remain in effect until such time as new rates are set
23pursuant to Article IX of this Act, subject to retroactive
24adjustment, with interest, to reconcile rates charged with
25actual costs.
26    (g) On or before July 31, 2014, each participating utility

 

 

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1shall file a report with the Commission that sets forth the
2average annual increase in the average amount paid per
3kilowatthour for residential eligible retail customers,
4exclusive of the effects of energy efficiency programs,
5comparing the 12-month period ending May 31, 2012; the 12-month
6period ending May 31, 2013; and the 12-month period ending May
731, 2014. For a participating utility that is a combination
8utility with more than one rate zone, the weighted average
9aggregate increase shall be provided. The report shall be filed
10together with a statement from an independent auditor attesting
11to the accuracy of the report. The cost of the independent
12auditor shall be borne by the participating utility and shall
13not be a recoverable expense.
14    In the event that the average annual increase exceeds 2.5%
15as calculated pursuant to this subsection (g), then Sections
1616-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other
17than this subsection, shall be inoperative as they relate to
18the utility and its service area as of the date of the report
19due to be submitted pursuant to this subsection and the utility
20shall no longer be eligible to annually update the
21performance-based formula rate tariff pursuant to subsection
22(d) of this Section. In such event, the then current rates
23shall remain in effect until such time as new rates are set
24pursuant to Article IX of this Act, subject to retroactive
25adjustment, with interest, to reconcile rates charged with
26actual costs, and the participating utility's voluntary

 

 

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1commitments and obligations under subsection (b) of this
2Section shall immediately terminate, except for the utility's
3obligation to pay an amount already owed to the fund for
4training grants pursuant to a Commission order issued under
5subsection (b) of this Section.
6    In the event that the average annual increase is 2.5% or
7less as calculated pursuant to this subsection (g), then the
8performance-based formula rate shall remain in effect as set
9forth in this Section.
10    For purposes of this Section, the amount per kilowatthour
11means the total amount paid for electric service expressed on a
12per kilowatthour basis, and the total amount paid for electric
13service includes without limitation amounts paid for supply,
14transmission, distribution, surcharges, and add-on taxes
15exclusive of any increases in taxes or new taxes imposed after
16the effective date of this amendatory Act of the 97th General
17Assembly. For purposes of this Section, "eligible retail
18customers" shall have the meaning set forth in Section 16-111.5
19of this Act.
20    The fact that this Section becomes inoperative as set forth
21in this subsection shall not be construed to mean that the
22Commission may reexamine or otherwise reopen prudence or
23reasonableness determinations already made.
24    (h) Sections 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of
25this Act, other than this subsection, are inoperative after
26December 31, 2017 for every participating utility, after which

 

 

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1time a participating utility shall no longer be eligible to
2annually update the performance-based formula rate tariff
3pursuant to subsection (d) of this Section. At such time, the
4then current rates shall remain in effect until such time as
5new rates are set pursuant to Article IX of this Act, subject
6to retroactive adjustment, with interest, to reconcile rates
7charged with actual costs.
8    By December 31, 2017, the Commission shall prepare and file
9with the General Assembly a report on the infrastructure
10program and the performance-based formula rate. The report
11shall include the change in the average amount per kilowatthour
12paid by residential customers between June 1, 2011 and May 31,
132017. If the change in the total average rate paid exceeds 2.5%
14compounded annually, the Commission shall include in the report
15an analysis that shows the portion of the change due to the
16delivery services component and the portion of the change due
17to the supply component of the rate. The report shall include
18separate sections for each participating utility.
19    In the event Sections 16-108.5, 16-108.6, 16-108.7, and
2016-108.8 of this Act do not become inoperative after December
2131, 2017, then these Sections are inoperative after December
2231, 2022 for every participating utility, after which time a
23participating utility shall no longer be eligible to annually
24update the performance-based formula rate tariff pursuant to
25subsection (d) of this Section. At such time, the then current
26rates shall remain in effect until such time as new rates are

 

 

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1set pursuant to Article IX of this Act, subject to retroactive
2adjustment, with interest, to reconcile rates charged with
3actual costs.
4    The fact that this Section becomes inoperative as set forth
5in this subsection shall not be construed to mean that the
6Commission may reexamine or otherwise reopen prudence or
7reasonableness determinations already made.
8    (i) While a participating utility may use, develop, and
9maintain broadband systems and the delivery of broadband
10services, voice-over-internet-protocol services,
11telecommunications services, and cable and video programming
12services for use in providing delivery services and Smart Grid
13functionality or application to its retail customers,
14including, but not limited to, the installation,
15implementation and maintenance of Smart Grid electric system
16upgrades as defined in Section 16-108.6 of this Act, a
17participating utility is prohibited from offering to its retail
18customers broadband services or the delivery of broadband
19services, voice-over-internet-protocol services,
20telecommunications services, or cable or video programming
21services, unless they are part of a service directly related to
22delivery services or Smart Grid functionality or applications
23as defined in Section 16-108.6 of this Act, and from recovering
24the costs of such offerings from retail customers.
25    (j) Nothing in this Section is intended to legislatively
26overturn the opinion issued in Commonwealth Edison Co. v. Ill.

 

 

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1Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137,
21-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App.
3Ct. 2d Dist. Sept. 30, 2010). This amendatory Act of the 97th
4General Assembly shall not be construed as creating a contract
5between the General Assembly and the participating utility, and
6shall not establish a property right in the participating
7utility.
8(Source: P.A. 97-616, eff. 10-26-11; 97-646, eff. 12-30-11.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.