Illinois General Assembly - Full Text of SB3866
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of SB3866  102nd General Assembly

SB3866enr 102ND GENERAL ASSEMBLY

  
  
  

 


 
SB3866 EnrolledLRB102 24630 AMQ 33868 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
Article 1.

 
5    Section 1-5. The Energy Transition Act is amended by
6changing Section 5-40 as follows:
 
7    (20 ILCS 730/5-40)
8    (Section scheduled to be repealed on September 15, 2045)
9    Sec. 5-40. Illinois Climate Works Preapprenticeship
10Program.
11    (a) Subject to appropriation, the Department shall
12develop, and through Regional Administrators administer, the
13Illinois Climate Works Preapprenticeship Program. The goal of
14the Illinois Climate Works Preapprenticeship Program is to
15create a network of hubs throughout the State that will
16recruit, prescreen, and provide preapprenticeship skills
17training, for which participants may attend free of charge and
18receive a stipend, to create a qualified, diverse pipeline of
19workers who are prepared for careers in the construction and
20building trades and clean energy jobs opportunities therein.
21Upon completion of the Illinois Climate Works
22Preapprenticeship Program, the candidates will be connected to

 

 

SB3866 Enrolled- 2 -LRB102 24630 AMQ 33868 b

1and prepared to successfully complete an apprenticeship
2program.
3    (b) Each Climate Works Hub that receives funding from the
4Energy Transition Assistance Fund shall provide an annual
5report to the Illinois Works Review Panel by April 1 of each
6calendar year. The annual report shall include the following
7information:
8        (1) a description of the Climate Works Hub's
9    recruitment, screening, and training efforts, including a
10    description of training related to construction and
11    building trades opportunities in clean energy jobs;
12        (2) the number of individuals who apply to,
13    participate in, and complete the Climate Works Hub's
14    program, broken down by race, gender, age, and veteran
15    status;
16        (3) the number of the individuals referenced in
17    paragraph (2) of this subsection who are initially
18    accepted and placed into apprenticeship programs in the
19    construction and building trades; and
20        (4) the number of individuals referenced in paragraph
21    (2) of this subsection who remain in apprenticeship
22    programs in the construction and building trades or have
23    become journeymen one calendar year after their placement,
24    as referenced in paragraph (3) of this subsection.
25    (c) Subject to appropriation, the Department shall provide
26funding to 3 Climate Works Hubs throughout the State,

 

 

SB3866 Enrolled- 3 -LRB102 24630 AMQ 33868 b

1including one to the Illinois Department of Transportation
2Region 1, one to the Illinois Department of Transportation
3Regions 2 and 3, and one to the Illinois Department of
4Transportation Regions 4 and 5. Climate Works Hubs shall be
5awarded grants in multi-year increments not to exceed 36
6months. Each grant shall come with a one year initial term,
7with the Department renewing each year for 2 additional years
8unless the grantee either declines to continue or fails to
9meet reasonable performance measures that consider
10apprenticeship programs timeframes. The Department shall
11initially select a community-based provider in each region and
12shall subsequently select a community-based provider in each
13region every 3 years. The Department may take into account
14experience and performance as a previous grantee of the
15Climate Works Hub as part of the selection criteria for
16subsequent years.
17    (d) Each Climate Works Hub that receives funding from the
18Energy Transition Assistance Fund shall: The Climate Works
19Hubs shall recruit, prescreen, and provide preapprenticeship
20training to equity investment eligible persons. This training
21shall include information related to opportunities and
22certifications relevant to clean energy jobs in the
23construction and building trades.
24        (1) recruit, prescreen, and provide preapprenticeship
25    training to equity investment eligible persons;
26        (2) provide training information related to

 

 

SB3866 Enrolled- 4 -LRB102 24630 AMQ 33868 b

1    opportunities and certifications relevant to clean energy
2    jobs in the construction and building trades; and
3        (3) provide preapprentices with stipends they receive
4    that may vary depending on the occupation the individual
5    is training for.
6    (d-5) Priority shall be given to Climate Works Hubs that
7have an agreement with North American Building Trades Unions
8(NABTU) to utilize the Multi-Craft Core Curriculum or
9successor curriculums.
10    (e) Funding for the Program is subject to appropriation
11from the Energy Transition Assistance Fund.
12    (f) The Department shall adopt any rules deemed necessary
13to implement this Section.
14(Source: P.A. 102-662, eff. 9-15-21.)
 
15    Section 1-10. The Public Utilities Act is amended by
16changing Sections 5-117, 8-218, 16-107.6, 16-108.5, and
1716-108.30 and by adding Section 16-111.11 as follows:
 
18    (220 ILCS 5/5-117)
19    Sec. 5-117. Supplier diversity goals.
20    (a) The public policy of this State is to collaboratively
21work with companies that serve Illinois residents to improve
22their supplier diversity in a non-antagonistic manner.
23    (b) The Commission shall require all gas, electric, and
24water utilities companies with at least 100,000 customers

 

 

SB3866 Enrolled- 5 -LRB102 24630 AMQ 33868 b

1under its authority, as well as suppliers of wind energy,
2solar energy, hydroelectricity, nuclear energy, and any other
3supplier of energy within this State, to submit an annual
4report by April 15, 2015 and every April 15 thereafter, in a
5searchable Adobe PDF format, on all procurement goals and
6actual spending for female-owned, minority-owned,
7veteran-owned, and small business enterprises in the previous
8calendar year. These goals shall be expressed as a percentage
9of the total work performed by the entity submitting the
10report, and the actual spending for all female-owned,
11minority-owned, veteran-owned, and small business enterprises
12shall also be expressed as a percentage of the total work
13performed by the entity submitting the report.
14    (c) Each participating company in its annual report shall
15include the following information:
16        (1) an explanation of the plan for the next year to
17    increase participation;
18        (2) an explanation of the plan to increase the goals;
19        (3) the areas of procurement each company shall be
20    actively seeking more participation in the next year;
21        (3.5) a buying plan for the specific goods and
22    services the company intends to buy in the next 6 to 18
23    months, that is either (i) organized by and reported at
24    the level of each applicable North American Industry
25    Classification System code, (ii) provided using a method,
26    system, or description similar to the North American

 

 

SB3866 Enrolled- 6 -LRB102 24630 AMQ 33868 b

1    Industry Classification System, or (iii) provided using
2    the major categories of goods and related services
3    utilized in the company's procurement system, and
4    including any procurement codes used by the company, to
5    assist entrepreneurs and diverse companies to understand
6    upcoming opportunities to work with the company, however,
7    a utility shall not be required to include
8    commercially-sensitive data, nonpublic procurement
9    information, or other information that could compromise a
10    utility's ability to negotiate the most advantageous price
11    or terms;
12        (4) an outline of the plan to alert and encourage
13    potential vendors in that area to seek business from the
14    company;
15        (5) an explanation of the challenges faced in finding
16    quality vendors and offer any suggestions for what the
17    Commission could do to be helpful to identify those
18    vendors;
19        (6) a list of the certifications the company
20    recognizes;
21        (7) the point of contact for any potential vendor who
22    wishes to do business with the company and explain the
23    process for a vendor to enroll with the company as a
24    minority-owned, women-owned, or veteran-owned company; and
25        (8) any particular success stories to encourage other
26    companies to emulate best practices.

 

 

SB3866 Enrolled- 7 -LRB102 24630 AMQ 33868 b

1    (d) Each annual report shall include as much
2State-specific data as possible. If the submitting entity does
3not submit State-specific data, then the company shall include
4any national data it does have and explain why it could not
5submit State-specific data and how it intends to do so in
6future reports, if possible.
7    (e) Each annual report shall include the rules,
8regulations, and definitions used for the procurement goals in
9the company's annual report.
10    (f) The Commission and all participating entities shall
11hold an annual workshop open to the public in 2015 and every
12year thereafter on the state of supplier diversity to
13collaboratively seek solutions to structural impediments to
14achieving stated goals, including testimony from each
15participating entity as well as subject matter experts and
16advocates. The Commission shall publish a database on its
17website of the point of contact for each participating entity
18for supplier diversity, along with a list of certifications
19each company recognizes from the information submitted in each
20annual report. The Commission shall publish each annual report
21on its website and shall maintain each annual report for at
22least 5 years.
23(Source: P.A. 102-558, eff. 8-20-21; 102-662, eff. 9-15-21;
24102-673, eff. 11-30-21.)
 
25    (220 ILCS 5/8-218)

 

 

SB3866 Enrolled- 8 -LRB102 24630 AMQ 33868 b

1    Sec. 8-218. Utility-scale pilot projects.
2    (a) Electric utilities serving greater than 500,000
3customers but less than 3,000,000 customers may propose, plan
4for, construct, install, control, own, manage, or operate up
5to 2 pilot projects consisting of utility-scale photovoltaic
6energy generation facilities. A pilot project may consist of
7photovoltaic energy generation facilities located on one or
8more sites and may be installed or constructed in phases.
9Energy storage facilities that are planned for, constructed,
10installed, controlled, owned, managed, or operated may be
11constructed in connection with the photovoltaic electricity
12generation pilot projects.
13    (b) Pilot projects shall be sited in equity investment
14eligible communities in or near the towns of Peoria and East
15St. Louis and must result in economic benefits for the members
16of the communities in which the project will be located. The
17amount paid per pilot project with or without energy storage
18facilities cannot exceed $20,000,000. The electric utility's
19costs of planning for, constructing, installing, controlling,
20owning, managing, or operating the photovoltaic electricity
21generation facilities and energy storage facilities may be
22recovered, on a kilowatt hour basis, via an automatic
23adjustment clause tariff applicable to all retail customers,
24with the tariff to be approved by the Commission after
25opportunity for review, and with an annual reconciliation
26component; and for purposes of cost recovery, the photovoltaic

 

 

SB3866 Enrolled- 9 -LRB102 24630 AMQ 33868 b

1electricity production facilities may be treated as regulatory
2assets, using the same ratemaking treatment in paragraph (1)
3of subsection (h) of Section 16-107.6 of this Act, provided:
4(1) the Commission shall have the authority to determine the
5reasonableness of the costs of the facilities, and (2) any
6monetary value of power and energy from the facilities shall
7be credited against the delivery services revenue requirement.
8    (c) Any electric utility seeking to propose, plan for,
9construct, install, control, own, manage, or operate a pilot
10project pursuant to this Section must commit to using a
11diverse and equitable workforce and a diverse set of
12contractors, including minority-owned businesses,
13disadvantaged businesses, trade unions, graduates of any
14workforce training programs established by this amendatory Act
15of the 102nd General Assembly, and small businesses. An
16electric utility must comply with the equity commitment
17requirements in subsection (c-10) of Section 1-75 of the
18Illinois Power Agency Act. The electric utility must certify
19that not less than the prevailing wage will be paid to
20employees engaged in construction activities associated with
21the pilot project. The electric utility must file a project
22labor agreement, as defined in the Illinois Power Agency Act,
23with the Commission prior to constructing, installing,
24controlling, or owning a pilot project authorized by this
25Section.
26(Source: P.A. 102-662, eff. 9-15-21.)
 

 

 

SB3866 Enrolled- 10 -LRB102 24630 AMQ 33868 b

1    (220 ILCS 5/16-107.6)
2    Sec. 16-107.6. Distributed generation rebate.
3    (a) In this Section:
4    "Additive services" means the services that distributed
5energy resources provide to the energy system and society that
6are not (1) already included in the base rebates for
7system-wide grid services; or (2) otherwise already
8compensated. Additive services may reflect, but shall not be
9limited to, any geographic, time-based, performance-based, and
10other benefits of distributed energy resources, as well as the
11present and future technological capabilities of distributed
12energy resources and present and future grid needs.
13    "Distributed energy resource" means a wide range of
14technologies that are located on the customer side of the
15customer's electric meter, including, but not limited to,
16distributed generation, energy storage, electric vehicles, and
17demand response technologies.
18    "Energy storage system" means commercially available
19technology that is capable of absorbing energy and storing it
20for a period of time for use at a later time, including, but
21not limited to, electrochemical, thermal, and
22electromechanical technologies, and may be interconnected
23behind the customer's meter or interconnected behind its own
24meter.
25    "Smart inverter" means a device that converts direct

 

 

SB3866 Enrolled- 11 -LRB102 24630 AMQ 33868 b

1current into alternating current and meets the IEEE 1547-2018
2equipment standards. Until devices that meet the IEEE
31547-2018 standard are available, devices that meet the UL
41741 SA standard are acceptable.
5    "Subscriber" has the meaning set forth in Section 1-10 of
6the Illinois Power Agency Act.
7    "Subscription" has the meaning set forth in Section 1-10
8of the Illinois Power Agency Act.
9    "System-wide grid services" means the benefits that a
10distributed energy resource provides to the distribution grid
11for a period of no less than 25 years. System-wide grid
12services do not vary by location, time, or the performance
13characteristics of the distributed energy resource.
14System-wide grid services include, but are not limited to,
15avoided or deferred distribution capacity costs, resilience
16and reliability benefits, avoided or deferred distribution
17operation and maintenance costs, distribution voltage and
18power quality benefits, and line loss reductions.
19    "Threshold date" means December 31, 2024 or the date on
20which the utility's tariff or tariffs setting the new
21compensation values established under subsection (e) take
22effect, whichever is later.
23    (b) An electric utility that serves more than 200,000
24customers in the State shall file a petition with the
25Commission requesting approval of the utility's tariff to
26provide a rebate to the owner or operator of distributed

 

 

SB3866 Enrolled- 12 -LRB102 24630 AMQ 33868 b

1generation, including third-party owned systems, that meets
2the following criteria:
3        (1) has a nameplate generating capacity no greater
4    than 5,000 kilowatts and is primarily used to offset a
5    customer's electricity load;
6        (2) is located on the customer's side of the billing
7    meter and for the customer's own use;
8        (3) is interconnected to electric distribution
9    facilities owned by the electric utility under rules
10    adopted by the Commission by means of the inverter or
11    smart inverter required by this Section, as applicable.
12    For purposes of this Section, "distributed generation"
13shall satisfy the definition of distributed renewable energy
14generation device set forth in Section 1-10 of the Illinois
15Power Agency Act to the extent such definition is consistent
16with the requirements of this Section.
17    In addition, any new photovoltaic distributed generation
18that is installed after June 1, 2017 (the effective date of
19Public Act 99-906) must be installed by a qualified person, as
20defined by subsection (i) of Section 1-56 of the Illinois
21Power Agency Act.
22    The tariff shall include a base rebate that compensates
23distributed generation for the system-wide grid services
24associated with distributed generation and, after the
25proceeding described in subsection (e) of this Section, an
26additional payment or payments for the additive services. The

 

 

SB3866 Enrolled- 13 -LRB102 24630 AMQ 33868 b

1tariff shall provide that the smart inverter associated with
2the distributed generation shall provide autonomous response
3to grid conditions through its default settings as approved by
4the Commission. Default settings may not be changed after the
5execution of the interconnection agreement except by mutual
6agreement between the utility and the owner or operator of the
7distributed generation. Nothing in this Section shall negate
8or supersede Institute of Electrical and Electronics Engineers
9equipment standards or other similar standards or
10requirements. The tariff shall not limit the ability of the
11smart inverter or other distributed energy resource to provide
12wholesale market products such as regulation, demand response,
13or other services, or limit the ability of the owner of the
14smart inverter or the other distributed energy resource to
15receive compensation for providing those wholesale market
16products or services.
17    (b-5) Within 30 days after the effective date of this
18amendatory Act of the 102nd General Assembly, each electric
19public utility with 3,000,000 or more retail customers shall
20file a tariff with the Commission that further compensates any
21retail customer that installs or has installed photovoltaic
22facilities paired with energy storage facilities on or
23adjacent to its premises for the benefits the facilities
24provide to the distribution grid. The tariff shall provide
25that, in addition to the other rebates identified in this
26Section, the electric utility shall rebate to such retail

 

 

SB3866 Enrolled- 14 -LRB102 24630 AMQ 33868 b

1customer (i) the previously incurred and future costs of
2installing interconnection facilities and related
3infrastructure to enable full participation in the PJM
4Interconnection, LLC or its successor organization frequency
5regulation market; and (ii) all wholesale demand charges
6incurred after the effective date of this amendatory Act of
7the 102nd General Assembly. The Commission shall approve, or
8approve with modification, the tariff within 120 days after
9the utility's filing.
10    (c) The proposed tariff authorized by subsection (b) of
11this Section shall include the following participation terms
12for rebates to be applied under this Section for distributed
13generation that satisfies the criteria set forth in subsection
14(b) of this Section:
15        (1) The owner or operator of distributed generation
16    that services customers not eligible for net metering
17    under subsection (d), (d-5), or (e) of Section 16-107.5 of
18    this Act may apply for a rebate as provided for in this
19    Section. Until the threshold date, the value of the rebate
20    shall be $250 per kilowatt of nameplate generating
21    capacity, measured as nominal DC power output, of that
22    customer's distributed generation. To the extent the
23    distributed generation also has an associated energy
24    storage, then the energy storage system shall be
25    separately compensated with a base rebate of $250 per
26    kilowatt-hour of nameplate capacity. Any distributed

 

 

SB3866 Enrolled- 15 -LRB102 24630 AMQ 33868 b

1    generation device that is compensated for storage in this
2    subsection (1) before the threshold date shall participate
3    in one or more programs determined through the Multi-Year
4    Integrated Grid Planning process that are designed to meet
5    peak reduction and flexibility. After the threshold date,
6    the value of the base rebate and additional compensation
7    for any additive services shall be as determined by the
8    Commission in the proceeding described in subsection (e)
9    of this Section, provided that the value of the base
10    rebate for system-wide grid services shall not be lower
11    than $250 per kilowatt of nameplate generating capacity of
12    distributed generation or community renewable generation
13    project.
14        (2) The owner or operator of distributed generation
15    that, before the threshold date, would have been eligible
16    for net metering under subsection (d), (d-5), or (e) of
17    Section 16-107.5 of this Act and that has not previously
18    received a distributed generation rebate, may apply for a
19    rebate as provided for in this Section. Until the
20    threshold date, the value of the base rebate shall be $300
21    per kilowatt of nameplate generating capacity, measured as
22    nominal DC power output, of the distributed generation.
23    The owner or operator of distributed generation that,
24    before the threshold date, is eligible for net metering
25    under subsection (d), (d-5), or (e) of Section 16-107.5 of
26    this Act may apply for a base rebate for an energy storage

 

 

SB3866 Enrolled- 16 -LRB102 24630 AMQ 33868 b

1    device that uses the same smart inverter as the
2    distributed generation, regardless of whether the
3    distributed generation applies for a rebate for the
4    distributed generation device. The energy storage system
5    shall be separately compensated at a base payment of $300
6    per kilowatt-hour of nameplate capacity. Any distributed
7    generation device that is compensated for storage in this
8    subsection (2) before the threshold date shall participate
9    in a peak time rebate program, hourly pricing program, or
10    time-of-use rate program offered by the applicable
11    electric utility. After the threshold date, the value of
12    the base rebate and additional compensation for any
13    additive services shall be as determined by the Commission
14    in the proceeding described in subsection (e) of this
15    Section, provided that, prior to December 31, 2029, the
16    value of the base rebate for system-wide services shall
17    not be lower than $300 per kilowatt of nameplate
18    generating capacity of distributed generation, after which
19    it shall not be lower than $250 per kilowatt of nameplate
20    capacity.
21        (3) Upon approval of a rebate application submitted
22    under this subsection (c), the retail customer shall no
23    longer be entitled to receive any delivery service credits
24    for the excess electricity generated by its facility and
25    shall be subject to the provisions of subsection (n) of
26    Section 16-107.5 of this Act unless the owner or operator

 

 

SB3866 Enrolled- 17 -LRB102 24630 AMQ 33868 b

1    receives a rebate only for an energy storage device and
2    not for the distributed generation device.
3        (4) To be eligible for a rebate described in this
4    subsection (c), the owner or operator of the distributed
5    generation must have a smart inverter installed and in
6    operation on the distributed generation.
7    (d) The Commission shall review the proposed tariff
8authorized by subsection (b) of this Section and may make
9changes to the tariff that are consistent with this Section
10and with the Commission's authority under Article IX of this
11Act, subject to notice and hearing. Following notice and
12hearing, the Commission shall issue an order approving, or
13approving with modification, such tariff no later than 240
14days after the utility files its tariff. Upon the effective
15date of this amendatory Act of the 102nd General Assembly, an
16electric utility shall file a petition with the Commission to
17amend and update any existing tariffs to comply with
18subsections (b) and (c).
19    (e) By no later than June 30, 2023, the Commission shall
20open an independent, statewide investigation into the value
21of, and compensation for, distributed energy resources. The
22Commission shall conduct the investigation, but may arrange
23for experts or consultants independent of the utilities and
24selected by the Commission to assist with the investigation.
25The cost of the investigation shall be shared by the utilities
26filing tariffs under subsection (b) of this Section but may be

 

 

SB3866 Enrolled- 18 -LRB102 24630 AMQ 33868 b

1recovered as an expense through normal ratemaking procedures.
2        (1) The Commission shall ensure that the investigation
3    includes, at minimum, diverse sets of stakeholders; a
4    review of best practices in calculating the value of
5    distributed energy resource benefits; a review of the full
6    value of the distributed energy resources and the manner
7    in which each component of that value is or is not
8    otherwise compensated; and assessments of how the value of
9    distributed energy resources may evolve based on the
10    present and future technological capabilities of
11    distributed energy resources and based on present and
12    future grid needs.
13        (2) The Commission's final order concluding this
14    investigation shall establish an annual process and
15    formula for the compensation of distributed generation and
16    energy storage systems, and an initial set of inputs for
17    that formula. The Commission's final order concluding this
18    investigation shall establish base rebates that compensate
19    distributed generation, community renewable generation
20    projects and energy storage systems for the system-wide
21    grid services that they provide. Those base rebate values
22    shall be consistent across the state, and shall not vary
23    by customer, customer class, customer location, or any
24    other variable. With respect to rebates for distributed
25    generation or community renewable generation projects,
26    that rebate shall not be lower than $250 per kilowatt of

 

 

SB3866 Enrolled- 19 -LRB102 24630 AMQ 33868 b

1    nameplate generating capacity of the distributed
2    generation or community renewable generation project. The
3    Commission's final order concluding this proceeding shall
4    also direct the utilities to update the formula, on an
5    annual basis, with inputs derived from their integrated
6    grid plans developed pursuant to Section 16-105.17. The
7    base rebate shall be updated annually based on the annual
8    updates to the formula inputs, but, with respect to
9    rebates for distributed generation or community renewable
10    generation projects, shall be no lower than $250 per
11    kilowatt of nameplate generating capacity of the
12    distributed generation or community renewable generation
13    project.
14        (3) The Commission shall also determine, as a part of
15    its investigation under this subsection, whether
16    distributed energy resources can provide any additive
17    services. Those additive services may include services
18    that are provided through utility-controlled responses to
19    grid conditions. If the Commission determines that
20    distributed energy resources can provide additive grid
21    services, the Commission shall determine the terms and
22    conditions for the operation and compensation of those
23    services. That compensation shall be above and beyond the
24    base rebate that the distributed energy generation,
25    community renewable generation project and energy storage
26    system receives. Compensation for additive services may

 

 

SB3866 Enrolled- 20 -LRB102 24630 AMQ 33868 b

1    vary by location, time, performance characteristics,
2    technology types, or other variables.
3        (4) The Commission shall ensure that compensation for
4    distributed energy resources, including base rebates and
5    any payments for additive services, shall reflect all
6    reasonably known and measurable values of the distributed
7    generation over its full expected useful life.
8    Compensation for additive services shall reflect, but
9    shall not be limited to, any geographic, time-based,
10    performance-based, and other benefits of distributed
11    generation, as well as the present and future
12    technological capabilities of distributed energy resources
13    and present and future grid needs.
14        (5) The Commission shall consider the electric
15    utility's integrated grid plan developed pursuant to
16    Section 16-105.17 of this Act to help identify the value
17    of distributed energy resources for the purpose of
18    calculating the compensation described in this subsection.
19        (6) The Commission shall determine additional
20    compensation for distributed energy resources that creates
21    savings and value on the distribution system by being
22    co-located or in close proximity to electric vehicle
23    charging infrastructure in use by medium-duty and
24    heavy-duty vehicles, primarily serving environmental
25    justice communities, as outlined in the utility integrated
26    grid planning process under Section 16-105.17 of this Act.

 

 

SB3866 Enrolled- 21 -LRB102 24630 AMQ 33868 b

1    No later than 60 days after the Commission enters its
2final order under this subsection (e), each utility shall file
3its updated tariff or tariffs in compliance with the order,
4including new tariffs for the recovery of costs incurred under
5this subsection (e) that shall provide for volumetric-based
6cost recovery, and the Commission shall approve, or approve
7with modification, the tariff or tariffs within 240 days after
8the utility's filing.
9    (f) Notwithstanding any provision of this Act to the
10contrary, the owner or operator of a community renewable
11generation project as defined in Section 1-10 of the Illinois
12Power Agency Act shall also be eligible to apply for the rebate
13described in this Section. The owner or operator of the
14community renewable generation project may apply for a rebate
15only if the owner or operator, or previous owner or operator,
16of the community renewable generation project has not already
17submitted an application, and, regardless of whether the
18subscriber is a residential or non-residential customer, may
19be allowed the amount identified in paragraph (1) of
20subsection (c) applicable on the date that the application is
21submitted.
22    (g) The owner of the distributed generation or community
23renewable generation project may apply for the rebate or
24rebates approved under this Section at the time of execution
25of an interconnection agreement with the distribution utility
26and shall receive the value available at that time of

 

 

SB3866 Enrolled- 22 -LRB102 24630 AMQ 33868 b

1execution of the interconnection agreement, provided the
2project reaches mechanical completion within 24 months after
3execution of the interconnection agreement. If the project has
4not reached mechanical completion within 24 months after
5execution, the owner may reapply for the rebate or rebates
6approved under this Section available at the time of
7application and shall receive the value available at the time
8of application. The utility shall issue the rebate no later
9than 60 days after the project is energized. In the event the
10application is incomplete or the utility is otherwise unable
11to calculate the payment based on the information provided by
12the owner, the utility shall issue the payment no later than 60
13days after the application is complete or all requested
14information is received.
15    (h) An electric utility shall recover from its retail
16customers all of the costs of the rebates made under a tariff
17or tariffs approved under subsection (d) of this Section,
18including, but not limited to, the value of the rebates and all
19costs incurred by the utility to comply with and implement
20subsections (b) and (c) of this Section, but not including
21costs incurred by the utility to comply with and implement
22subsection (e) of this Section, consistent with the following
23provisions:
24        (1) The utility shall defer the full amount of its
25    costs as a regulatory asset. The total costs deferred as a
26    regulatory asset shall be amortized over a 15-year period.

 

 

SB3866 Enrolled- 23 -LRB102 24630 AMQ 33868 b

1    The unamortized balance shall be recognized as of December
2    31 for a given year. The utility shall also earn a return
3    on the total of the unamortized balance of the regulatory
4    assets, less any deferred taxes related to the unamortized
5    balance, at an annual rate equal to the utility's weighted
6    average cost of capital that includes, based on a year-end
7    capital structure, the utility's actual cost of debt for
8    the applicable calendar year and a cost of equity, which
9    shall be calculated as the sum of (i) the average for the
10    applicable calendar year of the monthly average yields of
11    30-year U.S. Treasury bonds published by the Board of
12    Governors of the Federal Reserve System in its weekly H.15
13    Statistical Release or successor publication; and (ii) 580
14    basis points, including a revenue conversion factor
15    calculated to recover or refund all additional income
16    taxes that may be payable or receivable as a result of that
17    return.
18        When an electric utility creates a regulatory asset
19    under the provisions of this paragraph (1) of subsection
20    (h), the costs are recovered over a period during which
21    customers also receive a benefit, which is in the public
22    interest. Accordingly, it is the intent of the General
23    Assembly that an electric utility that elects to create a
24    regulatory asset under the provisions of this paragraph
25    (1) shall recover all of the associated costs, including,
26    but not limited to, its cost of capital as set forth in

 

 

SB3866 Enrolled- 24 -LRB102 24630 AMQ 33868 b

1    this paragraph (1). After the Commission has approved the
2    prudence and reasonableness of the costs that comprise the
3    regulatory asset, the electric utility shall be permitted
4    to recover all such costs, and the value and
5    recoverability through rates of the associated regulatory
6    asset shall not be limited, altered, impaired, or reduced.
7    To enable the financing of the incremental capital
8    expenditures, including regulatory assets, for electric
9    utilities that serve less than 3,000,000 retail customers
10    but more than 500,000 retail customers in the State, the
11    utility's actual year-end capital structure that includes
12    a common equity ratio, excluding goodwill, of up to and
13    including 50% of the total capital structure shall be
14    deemed reasonable and used to set rates.
15        (2) The utility, at its election, may recover all of
16    the costs as part of a filing for a general increase in
17    rates under Article IX of this Act, as part of an annual
18    filing to update a performance-based formula rate under
19    subsection (d) of Section 16-108.5 of this Act, or through
20    an automatic adjustment clause tariff, provided that
21    nothing in this paragraph (2) permits the double recovery
22    of such costs from customers. If the utility elects to
23    recover the costs it incurs under subsections (b) and (c)
24    through an automatic adjustment clause tariff, the utility
25    may file its proposed tariff together with the tariff it
26    files under subsection (b) of this Section or at a later

 

 

SB3866 Enrolled- 25 -LRB102 24630 AMQ 33868 b

1    time. The proposed tariff shall provide for an annual
2    reconciliation, less any deferred taxes related to the
3    reconciliation, with interest at an annual rate of return
4    equal to the utility's weighted average cost of capital as
5    calculated under paragraph (1) of this subsection (h),
6    including a revenue conversion factor calculated to
7    recover or refund all additional income taxes that may be
8    payable or receivable as a result of that return, of the
9    revenue requirement reflected in rates for each calendar
10    year, beginning with the calendar year in which the
11    utility files its automatic adjustment clause tariff under
12    this subsection (h), with what the revenue requirement
13    would have been had the actual cost information for the
14    applicable calendar year been available at the filing
15    date. The Commission shall review the proposed tariff and
16    may make changes to the tariff that are consistent with
17    this Section and with the Commission's authority under
18    Article IX of this Act, subject to notice and hearing.
19    Following notice and hearing, the Commission shall issue
20    an order approving, or approving with modification, such
21    tariff no later than 240 days after the utility files its
22    tariff.
23    (i) An electric utility shall recover from its retail
24customers, on a volumetric basis, all of the costs of the
25rebates made under a tariff or tariffs placed into effect
26under subsection (e) of this Section, including, but not

 

 

SB3866 Enrolled- 26 -LRB102 24630 AMQ 33868 b

1limited to, the value of the rebates and all costs incurred by
2the utility to comply with and implement subsection (e) of
3this Section, consistent with the following provisions:
4        (1) The utility may defer a portion of its costs as a
5    regulatory asset. The Commission shall determine the
6    portion that may be appropriately deferred as a regulatory
7    asset. Factors that the Commission shall consider in
8    determining the portion of costs that shall be deferred as
9    a regulatory asset include, but are not limited to: (i)
10    whether and the extent to which a cost effectively
11    deferred or avoided other distribution system operating
12    costs or capital expenditures; (ii) the extent to which a
13    cost provides environmental benefits; (iii) the extent to
14    which a cost improves system reliability or resilience;
15    (iv) the electric utility's distribution system plan
16    developed pursuant to Section 16-105.17 of this Act; (v)
17    the extent to which a cost advances equity principles; and
18    (vi) such other factors as the Commission deems
19    appropriate. The remainder of costs shall be deemed an
20    operating expense and shall be recoverable if found
21    prudent and reasonable by the Commission.
22        The total costs deferred as a regulatory asset shall
23    be amortized over a 15-year period. The unamortized
24    balance shall be recognized as of December 31 for a given
25    year. The utility shall also earn a return on the total of
26    the unamortized balance of the regulatory assets, less any

 

 

SB3866 Enrolled- 27 -LRB102 24630 AMQ 33868 b

1    deferred taxes related to the unamortized balance, at an
2    annual rate equal to the utility's weighted average cost
3    of capital that includes, based on a year-end capital
4    structure, the utility's actual cost of debt for the
5    applicable calendar year and a cost of equity, which shall
6    be calculated as the sum of: (I) the average for the
7    applicable calendar year of the monthly average yields of
8    30-year U.S. Treasury bonds published by the Board of
9    Governors of the Federal Reserve System in its weekly H.15
10    Statistical Release or successor publication; and (II) 580
11    basis points, including a revenue conversion factor
12    calculated to recover or refund all additional income
13    taxes that may be payable or receivable as a result of that
14    return.
15        (2) The utility may recover all of the costs through
16    an automatic adjustment clause tariff, on a volumetric
17    basis. The utility may file its proposed cost-recovery
18    tariff together with the tariff it files under subsection
19    (e) of this Section or at a later time. The proposed tariff
20    shall provide for an annual reconciliation, less any
21    deferred taxes related to the reconciliation, with
22    interest at an annual rate of return equal to the
23    utility's weighted average cost of capital as calculated
24    under paragraph (1) of this subsection (i), including a
25    revenue conversion factor calculated to recover or refund
26    all additional income taxes that may be payable or

 

 

SB3866 Enrolled- 28 -LRB102 24630 AMQ 33868 b

1    receivable as a result of that return, of the revenue
2    requirement reflected in rates for each calendar year,
3    beginning with the calendar year in which the utility
4    files its automatic adjustment clause tariff under this
5    subsection (i), with what the revenue requirement would
6    have been had the actual cost information for the
7    applicable calendar year been available at the filing
8    date. The Commission shall review the proposed tariff and
9    may make changes to the tariff that are consistent with
10    this Section and with the Commission's authority under
11    Article IX of this Act, subject to notice and hearing.
12    Following notice and hearing, the Commission shall issue
13    an order approving, or approving with modification, such
14    tariff no later than 240 days after the utility files its
15    tariff.
16    (j) No later than 90 days after the Commission enters an
17order, or order on rehearing, whichever is later, approving an
18electric utility's proposed tariff under this Section, the
19electric utility shall provide notice of the availability of
20rebates under this Section.
21(Source: P.A. 102-662, eff. 9-15-21.)
 
22    (220 ILCS 5/16-108.5)
23    Sec. 16-108.5. Infrastructure investment and
24modernization; regulatory reform.
25    (a) (Blank).

 

 

SB3866 Enrolled- 29 -LRB102 24630 AMQ 33868 b

1    (b) For purposes of this Section, "participating utility"
2means an electric utility or a combination utility serving
3more than 1,000,000 customers in Illinois that voluntarily
4elects and commits to undertake (i) the infrastructure
5investment program consisting of the commitments and
6obligations described in this subsection (b) and (ii) the
7customer assistance program consisting of the commitments and
8obligations described in subsection (b-10) of this Section,
9notwithstanding any other provisions of this Act and without
10obtaining any approvals from the Commission or any other
11agency other than as set forth in this Section, regardless of
12whether any such approval would otherwise be required.
13"Combination utility" means a utility that, as of January 1,
142011, provided electric service to at least one million retail
15customers in Illinois and gas service to at least 500,000
16retail customers in Illinois. A participating utility shall
17recover the expenditures made under the infrastructure
18investment program through the ratemaking process, including,
19but not limited to, the performance-based formula rate and
20process set forth in this Section.
21    During the infrastructure investment program's peak
22program year, a participating utility other than a combination
23utility shall create 2,000 full-time equivalent jobs in
24Illinois, and a participating utility that is a combination
25utility shall create 450 full-time equivalent jobs in Illinois
26related to the provision of electric service. These jobs shall

 

 

SB3866 Enrolled- 30 -LRB102 24630 AMQ 33868 b

1include direct jobs, contractor positions, and induced jobs,
2but shall not include any portion of a job commitment, not
3specifically contingent on an amendatory Act of the 97th
4General Assembly becoming law, between a participating utility
5and a labor union that existed on December 30, 2011 (the
6effective date of Public Act 97-646) and that has not yet been
7fulfilled. A portion of the full-time equivalent jobs created
8by each participating utility shall include incremental
9personnel hired subsequent to December 30, 2011 (the effective
10date of Public Act 97-646). For purposes of this Section,
11"peak program year" means the consecutive 12-month period with
12the highest number of full-time equivalent jobs that occurs
13between the beginning of investment year 2 and the end of
14investment year 4.
15    A participating utility shall meet one of the following
16commitments, as applicable:
17        (1) Beginning no later than 180 days after a
18    participating utility other than a combination utility
19    files a performance-based formula rate tariff pursuant to
20    subsection (c) of this Section, or, beginning no later
21    than January 1, 2012 if such utility files such
22    performance-based formula rate tariff within 14 days of
23    October 26, 2011 (the effective date of Public Act
24    97-616), the participating utility shall, except as
25    provided in subsection (b-5):
26            (A) over a 5-year period, invest an estimated

 

 

SB3866 Enrolled- 31 -LRB102 24630 AMQ 33868 b

1        $1,300,000,000 in electric system upgrades,
2        modernization projects, and training facilities,
3        including, but not limited to:
4                (i) distribution infrastructure improvements
5            totaling an estimated $1,000,000,000, including
6            underground residential distribution cable
7            injection and replacement and mainline cable
8            system refurbishment and replacement projects;
9                (ii) training facility construction or upgrade
10            projects totaling an estimated $10,000,000,
11            provided that, at a minimum, one such facility
12            shall be located in a municipality having a
13            population of more than 2 million residents and
14            one such facility shall be located in a
15            municipality having a population of more than
16            150,000 residents but fewer than 170,000
17            residents; any such new facility located in a
18            municipality having a population of more than 2
19            million residents must be designed for the purpose
20            of obtaining, and the owner of the facility shall
21            apply for, certification under the United States
22            Green Building Council's Leadership in Energy
23            Efficiency Design Green Building Rating System;
24                (iii) wood pole inspection, treatment, and
25            replacement programs;
26                (iv) an estimated $200,000,000 for reducing

 

 

SB3866 Enrolled- 32 -LRB102 24630 AMQ 33868 b

1            the susceptibility of certain circuits to
2            storm-related damage, including, but not limited
3            to, high winds, thunderstorms, and ice storms;
4            improvements may include, but are not limited to,
5            overhead to underground conversion and other
6            engineered outcomes for circuits; the
7            participating utility shall prioritize the
8            selection of circuits based on each circuit's
9            historical susceptibility to storm-related damage
10            and the ability to provide the greatest customer
11            benefit upon completion of the improvements; to be
12            eligible for improvement, the participating
13            utility's ability to maintain proper tree
14            clearances surrounding the overhead circuit must
15            not have been impeded by third parties; and
16            (B) over a 10-year period, invest an estimated
17        $1,300,000,000 to upgrade and modernize its
18        transmission and distribution infrastructure and in
19        Smart Grid electric system upgrades, including, but
20        not limited to:
21                (i) additional smart meters;
22                (ii) distribution automation;
23                (iii) associated cyber secure data
24            communication network; and
25                (iv) substation micro-processor relay
26            upgrades.

 

 

SB3866 Enrolled- 33 -LRB102 24630 AMQ 33868 b

1        (2) Beginning no later than 180 days after a
2    participating utility that is a combination utility files
3    a performance-based formula rate tariff pursuant to
4    subsection (c) of this Section, or, beginning no later
5    than January 1, 2012 if such utility files such
6    performance-based formula rate tariff within 14 days of
7    October 26, 2011 (the effective date of Public Act
8    97-616), the participating utility shall, except as
9    provided in subsection (b-5):
10            (A) over a 10-year period, invest an estimated
11        $265,000,000 in electric system upgrades,
12        modernization projects, and training facilities,
13        including, but not limited to:
14                (i) distribution infrastructure improvements
15            totaling an estimated $245,000,000, which may
16            include bulk supply substations, transformers,
17            reconductoring, and rebuilding overhead
18            distribution and sub-transmission lines,
19            underground residential distribution cable
20            injection and replacement and mainline cable
21            system refurbishment and replacement projects;
22                (ii) training facility construction or upgrade
23            projects totaling an estimated $1,000,000; any
24            such new facility must be designed for the purpose
25            of obtaining, and the owner of the facility shall
26            apply for, certification under the United States

 

 

SB3866 Enrolled- 34 -LRB102 24630 AMQ 33868 b

1            Green Building Council's Leadership in Energy
2            Efficiency Design Green Building Rating System;
3            and
4                (iii) wood pole inspection, treatment, and
5            replacement programs; and
6            (B) over a 10-year period, invest an estimated
7        $360,000,000 to upgrade and modernize its transmission
8        and distribution infrastructure and in Smart Grid
9        electric system upgrades, including, but not limited
10        to:
11                (i) additional smart meters;
12                (ii) distribution automation;
13                (iii) associated cyber secure data
14            communication network; and
15                (iv) substation micro-processor relay
16            upgrades.
17    For purposes of this Section, "Smart Grid electric system
18upgrades" shall have the meaning set forth in subsection (a)
19of Section 16-108.6 of this Act.
20    The investments in the infrastructure investment program
21described in this subsection (b) shall be incremental to the
22participating utility's annual capital investment program, as
23defined by, for purposes of this subsection (b), the
24participating utility's average capital spend for calendar
25years 2008, 2009, and 2010 as reported in the applicable
26Federal Energy Regulatory Commission (FERC) Form 1; provided

 

 

SB3866 Enrolled- 35 -LRB102 24630 AMQ 33868 b

1that where one or more utilities have merged, the average
2capital spend shall be determined using the aggregate of the
3merged utilities' capital spend reported in FERC Form 1 for
4the years 2008, 2009, and 2010. A participating utility may
5add reasonable construction ramp-up and ramp-down time to the
6investment periods specified in this subsection (b). For each
7such investment period, the ramp-up and ramp-down time shall
8not exceed a total of 6 months.
9    Within 60 days after filing a tariff under subsection (c)
10of this Section, a participating utility shall submit to the
11Commission its plan, including scope, schedule, and staffing,
12for satisfying its infrastructure investment program
13commitments pursuant to this subsection (b). The submitted
14plan shall include a schedule and staffing plan for the next
15calendar year. The plan shall also include a plan for the
16creation, operation, and administration of a Smart Grid test
17bed as described in subsection (c) of Section 16-108.8. The
18plan need not allocate the work equally over the respective
19periods, but should allocate material increments throughout
20such periods commensurate with the work to be undertaken. No
21later than April 1 of each subsequent year, the utility shall
22submit to the Commission a report that includes any updates to
23the plan, a schedule for the next calendar year, the
24expenditures made for the prior calendar year and
25cumulatively, and the number of full-time equivalent jobs
26created for the prior calendar year and cumulatively. If the

 

 

SB3866 Enrolled- 36 -LRB102 24630 AMQ 33868 b

1utility is materially deficient in satisfying a schedule or
2staffing plan, then the report must also include a corrective
3action plan to address the deficiency. The fact that the plan,
4implementation of the plan, or a schedule changes shall not
5imply the imprudence or unreasonableness of the infrastructure
6investment program, plan, or schedule. Further, no later than
745 days following the last day of the first, second, and third
8quarters of each year of the plan, a participating utility
9shall submit to the Commission a verified quarterly report for
10the prior quarter that includes (i) the total number of
11full-time equivalent jobs created during the prior quarter,
12(ii) the total number of employees as of the last day of the
13prior quarter, (iii) the total number of full-time equivalent
14hours in each job classification or job title, (iv) the total
15number of incremental employees and contractors in support of
16the investments undertaken pursuant to this subsection (b) for
17the prior quarter, and (v) any other information that the
18Commission may require by rule.
19    With respect to the participating utility's peak job
20commitment, if, after considering the utility's corrective
21action plan and compliance thereunder, the Commission enters
22an order finding, after notice and hearing, that a
23participating utility did not satisfy its peak job commitment
24described in this subsection (b) for reasons that are
25reasonably within its control, then the Commission shall also
26determine, after consideration of the evidence, including, but

 

 

SB3866 Enrolled- 37 -LRB102 24630 AMQ 33868 b

1not limited to, evidence submitted by the Department of
2Commerce and Economic Opportunity and the utility, the
3deficiency in the number of full-time equivalent jobs during
4the peak program year due to such failure. The Commission
5shall notify the Department of any proceeding that is
6initiated pursuant to this paragraph. For each full-time
7equivalent job deficiency during the peak program year that
8the Commission finds as set forth in this paragraph, the
9participating utility shall, within 30 days after the entry of
10the Commission's order, pay $6,000 to a fund for training
11grants administered under Section 605-800 of the Department of
12Commerce and Economic Opportunity Law, which shall not be a
13recoverable expense.
14    With respect to the participating utility's investment
15amount commitments, if, after considering the utility's
16corrective action plan and compliance thereunder, the
17Commission enters an order finding, after notice and hearing,
18that a participating utility is not satisfying its investment
19amount commitments described in this subsection (b), then the
20utility shall 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.

 

 

SB3866 Enrolled- 38 -LRB102 24630 AMQ 33868 b

1    If the Commission finds that a participating utility is no
2longer eligible to update the performance-based formula rate
3tariff pursuant to subsection (d) of this Section, or the
4performance-based formula rate is otherwise terminated, then
5the participating utility's voluntary commitments and
6obligations under this subsection (b) shall immediately
7terminate, except for the utility's obligation to pay an
8amount already owed to the fund for training grants pursuant
9to a Commission order.
10    In meeting the obligations of this subsection (b), to the
11extent feasible and consistent with State and federal law, the
12investments under the infrastructure investment program should
13provide employment opportunities for all segments of the
14population and workforce, including minority-owned and
15female-owned business enterprises, and shall not, consistent
16with State and federal law, discriminate based on race or
17socioeconomic status.
18    (b-5) Nothing in this Section shall prohibit the
19Commission from investigating the prudence and reasonableness
20of the expenditures made under the infrastructure investment
21program during the annual review required by subsection (d) of
22this Section and shall, as part of such investigation,
23determine whether the utility's actual costs under the program
24are prudent and reasonable. The fact that a participating
25utility invests more than the minimum amounts specified in
26subsection (b) of this Section or its plan shall not imply

 

 

SB3866 Enrolled- 39 -LRB102 24630 AMQ 33868 b

1imprudence or unreasonableness.
2    If the participating utility finds that it is implementing
3its plan for satisfying the infrastructure investment program
4commitments described in subsection (b) of this Section at a
5cost below the estimated amounts specified in subsection (b)
6of this Section, then the utility may file a petition with the
7Commission requesting that it be permitted to satisfy its
8commitments by spending less than the estimated amounts
9specified in subsection (b) of this Section. The Commission
10shall, after notice and hearing, enter its order approving, or
11approving as modified, or denying each such petition within
12150 days after the filing of the petition.
13    In no event, absent General Assembly approval, shall the
14capital investment costs incurred by a participating utility
15other than a combination utility in satisfying its
16infrastructure investment program commitments described in
17subsection (b) of this Section exceed $3,000,000,000 or, for a
18participating utility that is a combination utility,
19$720,000,000. If the participating utility's updated cost
20estimates for satisfying its infrastructure investment program
21commitments described in subsection (b) of this Section exceed
22the limitation imposed by this subsection (b-5), then it shall
23submit a report to the Commission that identifies the
24increased costs and explains the reason or reasons for the
25increased costs no later than the year in which the utility
26estimates it will exceed the limitation. The Commission shall

 

 

SB3866 Enrolled- 40 -LRB102 24630 AMQ 33868 b

1review the report and shall, within 90 days after the
2participating utility files the report, report to the General
3Assembly its findings regarding the participating utility's
4report. If the General Assembly does not amend the limitation
5imposed by this subsection (b-5), then the utility may modify
6its plan so as not to exceed the limitation imposed by this
7subsection (b-5) and may propose corresponding changes to the
8metrics established pursuant to subparagraphs (5) through (8)
9of subsection (f) of this Section, and the Commission may
10modify the metrics and incremental savings goals established
11pursuant to subsection (f) of this Section accordingly.
12    (b-10) All participating utilities shall make
13contributions for an energy low-income and support program in
14accordance with this subsection. Beginning no later than 180
15days after a participating utility files a performance-based
16formula rate tariff pursuant to subsection (c) of this
17Section, or beginning no later than January 1, 2012 if such
18utility files such performance-based formula rate tariff
19within 14 days of December 30, 2011 (the effective date of
20Public Act 97-646), and without obtaining any approvals from
21the Commission or any other agency other than as set forth in
22this Section, regardless of whether any such approval would
23otherwise be required, a participating utility other than a
24combination utility shall pay $10,000,000 per year for 5 years
25and a participating utility that is a combination utility
26shall pay $1,000,000 per year for 10 years to the energy

 

 

SB3866 Enrolled- 41 -LRB102 24630 AMQ 33868 b

1low-income and support program, which is intended to fund
2customer assistance programs with the primary purpose being
3avoidance of imminent disconnection. Such programs may
4include:
5        (1) a residential hardship program that may partner
6    with community-based organizations, including senior
7    citizen organizations, and provides grants to low-income
8    residential customers, including low-income senior
9    citizens, who demonstrate a hardship;
10        (2) a program that provides grants and other bill
11    payment concessions to veterans with disabilities who
12    demonstrate a hardship and members of the armed services
13    or reserve forces of the United States or members of the
14    Illinois National Guard who are on active duty pursuant to
15    an executive order of the President of the United States,
16    an act of the Congress of the United States, or an order of
17    the Governor and who demonstrate a hardship;
18        (3) a budget assistance program that provides tools
19    and education to low-income senior citizens to assist them
20    with obtaining information regarding energy usage and
21    effective means of managing energy costs;
22        (4) a non-residential special hardship program that
23    provides grants to non-residential customers such as small
24    businesses and non-profit organizations that demonstrate a
25    hardship, including those providing services to senior
26    citizen and low-income customers; and

 

 

SB3866 Enrolled- 42 -LRB102 24630 AMQ 33868 b

1        (5) a performance-based assistance program that
2    provides grants to encourage residential customers to make
3    on-time payments by matching a portion of the customer's
4    payments or providing credits towards arrearages.
5    The payments made by a participating utility pursuant to
6this subsection (b-10) shall not be a recoverable expense. A
7participating utility may elect to fund either new or existing
8customer assistance programs, including, but not limited to,
9those that are administered by the utility.
10    Programs that use funds that are provided by a
11participating utility to reduce utility bills may be
12implemented through tariffs that are filed with and reviewed
13by the Commission. If a utility elects to file tariffs with the
14Commission to implement all or a portion of the programs,
15those tariffs shall, regardless of the date actually filed, be
16deemed accepted and approved, and shall become effective on
17December 30, 2011 (the effective date of Public Act 97-646).
18The participating utilities whose customers benefit from the
19funds that are disbursed as contemplated in this Section shall
20file annual reports documenting the disbursement of those
21funds with the Commission. The Commission has the authority to
22audit disbursement of the funds to ensure they were disbursed
23consistently with this Section.
24    If the Commission finds that a participating utility is no
25longer eligible to update the performance-based formula rate
26tariff pursuant to subsection (d) of this Section, or the

 

 

SB3866 Enrolled- 43 -LRB102 24630 AMQ 33868 b

1performance-based formula rate is otherwise terminated, then
2the participating utility's voluntary commitments and
3obligations under this subsection (b-10) shall immediately
4terminate.
5    (c) A participating utility may elect to recover its
6delivery services costs through a performance-based formula
7rate approved by the Commission, which shall specify the cost
8components that form the basis of the rate charged to
9customers with sufficient specificity to operate in a
10standardized manner and be updated annually with transparent
11information that reflects the utility's actual costs to be
12recovered during the applicable rate year, which is the period
13beginning with the first billing day of January and extending
14through the last billing day of the following December. In the
15event the utility recovers a portion of its costs through
16automatic adjustment clause tariffs on October 26, 2011 (the
17effective date of Public Act 97-616), the utility may elect to
18continue to recover these costs through such tariffs, but then
19these costs shall not be recovered through the
20performance-based formula rate. In the event the participating
21utility, prior to December 30, 2011 (the effective date of
22Public Act 97-646), filed electric delivery services tariffs
23with the Commission pursuant to Section 9-201 of this Act that
24are related to the recovery of its electric delivery services
25costs that are still pending on December 30, 2011 (the
26effective date of Public Act 97-646), the participating

 

 

SB3866 Enrolled- 44 -LRB102 24630 AMQ 33868 b

1utility shall, at the time it files its performance-based
2formula rate tariff with the Commission, also file a notice of
3withdrawal with the Commission to withdraw the electric
4delivery services tariffs previously filed pursuant to Section
59-201 of this Act. Upon receipt of such notice, the Commission
6shall dismiss with prejudice any docket that had been
7initiated to investigate the electric delivery services
8tariffs filed pursuant to Section 9-201 of this Act, and such
9tariffs and the record related thereto shall not be the
10subject of any further hearing, investigation, or proceeding
11of any kind related to rates for electric delivery services.
12    The performance-based formula rate shall be implemented
13through a tariff filed with the Commission consistent with the
14provisions of this subsection (c) that shall be applicable to
15all delivery services customers. The Commission shall initiate
16and conduct an investigation of the tariff in a manner
17consistent with the provisions of this subsection (c) and the
18provisions of Article IX of this Act to the extent they do not
19conflict with this subsection (c). Except in the case where
20the Commission finds, after notice and hearing, that a
21participating utility is not satisfying its investment amount
22commitments under subsection (b) of this Section, the
23performance-based formula rate shall remain in effect at the
24discretion of the utility. The performance-based formula rate
25approved by the Commission shall do the following:
26        (1) Provide for the recovery of the utility's actual

 

 

SB3866 Enrolled- 45 -LRB102 24630 AMQ 33868 b

1    costs of delivery services that are prudently incurred and
2    reasonable in amount consistent with Commission practice
3    and law. The sole fact that a cost differs from that
4    incurred in a prior calendar year or that an investment is
5    different from that made in a prior calendar year shall
6    not imply the imprudence or unreasonableness of that cost
7    or investment.
8        (2) Reflect the utility's actual year-end capital
9    structure for the applicable calendar year, excluding
10    goodwill, subject to a determination of prudence and
11    reasonableness consistent with Commission practice and
12    law. To enable the financing of the incremental capital
13    expenditures, including regulatory assets, for electric
14    utilities that serve less than 3,000,000 retail customers
15    but more than 500,000 retail customers in the State, a
16    participating electric utility's actual year-end capital
17    structure that includes a common equity ratio, excluding
18    goodwill, of up to and including 50% of the total capital
19    structure shall be deemed reasonable and used to set
20    rates.
21        (3) Include a cost of equity, which shall be
22    calculated as the sum of the following:
23            (A) the average for the applicable calendar year
24        of the monthly average yields of 30-year U.S. Treasury
25        bonds published by the Board of Governors of the
26        Federal Reserve System in its weekly H.15 Statistical

 

 

SB3866 Enrolled- 46 -LRB102 24630 AMQ 33868 b

1        Release or successor publication; and
2            (B) 580 basis points.
3        At such time as the Board of Governors of the Federal
4    Reserve System ceases to include the monthly average
5    yields of 30-year U.S. Treasury bonds in its weekly H.15
6    Statistical Release or successor publication, the monthly
7    average yields of the U.S. Treasury bonds then having the
8    longest duration published by the Board of Governors in
9    its weekly H.15 Statistical Release or successor
10    publication shall instead be used for purposes of this
11    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;

 

 

SB3866 Enrolled- 47 -LRB102 24630 AMQ 33868 b

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
6        be amortized consistent with subparagraph (F) of this
7        paragraph (4);
8            (D) investment return at a rate equal to the
9        utility's weighted average cost of long-term debt, on
10        the pension assets as, and in the amount, reported in
11        Account 186 (or in such other Account or Accounts as
12        such asset may subsequently be recorded) of the
13        utility's most recently filed FERC Form 1, net of
14        deferred tax benefits;
15            (E) recovery of the expenses related to the
16        Commission proceeding under this subsection (c) to
17        approve this performance-based formula rate and
18        initial rates or to subsequent proceedings related to
19        the formula, provided that the recovery shall be
20        amortized over a 3-year period; recovery of expenses
21        related to the annual Commission proceedings under
22        subsection (d) of this Section to review the inputs to
23        the performance-based formula rate shall be expensed
24        and recovered through the performance-based formula
25        rate;
26            (F) amortization over a 5-year period of the full

 

 

SB3866 Enrolled- 48 -LRB102 24630 AMQ 33868 b

1        amount of each charge or credit that exceeds
2        $3,700,000 for a participating utility that is a
3        combination utility or $10,000,000 for a participating
4        utility that serves more than 3 million retail
5        customers in the applicable calendar year and that
6        relates to a workforce reduction program's severance
7        costs, changes in accounting rules, changes in law,
8        compliance with any Commission-initiated audit, or a
9        single storm or other similar expense, provided that
10        any unamortized balance shall be reflected in rate
11        base. For purposes of this subparagraph (F), changes
12        in law includes any enactment, repeal, or amendment in
13        a law, ordinance, rule, regulation, interpretation,
14        permit, license, consent, or order, including those
15        relating to taxes, accounting, or to environmental
16        matters, or in the interpretation or application
17        thereof by any governmental authority occurring after
18        October 26, 2011 (the effective date of Public Act
19        97-616);
20            (G) recovery of existing regulatory assets over
21        the periods previously authorized by the Commission;
22            (H) historical weather normalized billing
23        determinants; and
24            (I) allocation methods for common costs.
25        (5) Provide that if the participating utility's earned
26    rate of return on common equity related to the provision

 

 

SB3866 Enrolled- 49 -LRB102 24630 AMQ 33868 b

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

 

 

SB3866 Enrolled- 50 -LRB102 24630 AMQ 33868 b

1    provided in subparagraph (2) of this subsection (c),
2    consistent with this Section, in accordance with
3    Commission rules and orders, including, but not limited
4    to, adjustments for goodwill, and after any
5    Commission-ordered disallowances and taxes) is more than
6    50 basis points less than the return on common equity
7    calculated pursuant to paragraph (3) of this subsection
8    (c) (after adjusting for any penalties to the rate of
9    return on common equity applied pursuant to the
10    performance metrics provision of subsection (f) of this
11    Section), then the participating utility shall apply a
12    charge through the performance-based formula rate that
13    reflects an amount equal to the value of that portion of
14    the earned rate of return on common equity that is more
15    than 50 basis points less than the rate of return on common
16    equity calculated pursuant to paragraph (3) of this
17    subsection (c) (after adjusting for any penalties to the
18    rate of return on common equity applied pursuant to the
19    performance metrics provision of subsection (f) of this
20    Section) for the prior rate year, adjusted for taxes.
21        (6) Provide for an annual reconciliation, as described
22    in subsection (d) of this Section, with interest, of the
23    revenue requirement reflected in rates for each calendar
24    year, beginning with the calendar year in which the
25    utility files its performance-based formula rate tariff
26    pursuant to subsection (c) of this Section, with what the

 

 

SB3866 Enrolled- 51 -LRB102 24630 AMQ 33868 b

1    revenue requirement would have been had the actual cost
2    information for the applicable calendar year been
3    available at the filing date.
4    The utility shall file, together with its tariff, final
5data based on its most recently filed FERC Form 1, plus
6projected plant additions and correspondingly updated
7depreciation reserve and expense for the calendar year in
8which the tariff and data are filed, that shall populate the
9performance-based formula rate and set the initial delivery
10services rates under the formula. For purposes of this
11Section, "FERC Form 1" means the Annual Report of Major
12Electric Utilities, Licensees and Others that electric
13utilities are required to file with the Federal Energy
14Regulatory Commission under the Federal Power Act, Sections 3,
154(a), 304 and 209, modified as necessary to be consistent with
1683 Ill. Admin. Code Part 415 as of May 1, 2011. Nothing in this
17Section is intended to allow costs that are not otherwise
18recoverable to be recoverable by virtue of inclusion in FERC
19Form 1.
20    After the utility files its proposed performance-based
21formula rate structure and protocols and initial rates, the
22Commission shall initiate a docket to review the filing. The
23Commission shall enter an order approving, or approving as
24modified, the performance-based formula rate, including the
25initial rates, as just and reasonable within 270 days after
26the date on which the tariff was filed, or, if the tariff is

 

 

SB3866 Enrolled- 52 -LRB102 24630 AMQ 33868 b

1filed within 14 days after October 26, 2011 (the effective
2date of Public Act 97-616), then by May 31, 2012. Such review
3shall be based on the same evidentiary standards, including,
4but not limited to, those concerning the prudence and
5reasonableness of the costs incurred by the utility, the
6Commission applies in a hearing to review a filing for a
7general increase in rates under Article IX of this Act. The
8initial rates shall take effect within 30 days after the
9Commission's order approving the performance-based formula
10rate tariff.
11    Until such time as the Commission approves a different
12rate design and cost allocation pursuant to subsection (e) of
13this Section, rate design and cost allocation across customer
14classes shall be consistent with the Commission's most recent
15order regarding the participating utility's request for a
16general increase in its delivery services rates.
17    Subsequent changes to the performance-based formula rate
18structure or protocols shall be made as set forth in Section
199-201 of this Act, but nothing in this subsection (c) is
20intended to limit the Commission's authority under Article IX
21and other provisions of this Act to initiate an investigation
22of a participating utility's performance-based formula rate
23tariff, provided that any such changes shall be consistent
24with paragraphs (1) through (6) of this subsection (c). Any
25change ordered by the Commission shall be made at the same time
26new rates take effect following the Commission's next order

 

 

SB3866 Enrolled- 53 -LRB102 24630 AMQ 33868 b

1pursuant to subsection (d) of this Section, provided that the
2new rates take effect no less than 30 days after the date on
3which the Commission issues an order adopting the change.
4    A participating utility that files a tariff pursuant to
5this subsection (c) must submit a one-time $200,000 filing fee
6at the time the Chief Clerk of the Commission accepts the
7filing, which shall be a recoverable expense.
8    In the event the performance-based formula rate is
9terminated, the then current rates shall remain in effect
10until such time as new rates are set pursuant to Article IX of
11this Act, subject to retroactive rate adjustment, with
12interest, to reconcile rates charged with actual costs. At
13such time that the performance-based formula rate is
14terminated, the participating utility's voluntary commitments
15and obligations under subsection (b) of this Section shall
16immediately terminate, except for the utility's obligation to
17pay an amount already owed to the fund for training grants
18pursuant to a Commission order issued under subsection (b) of
19this Section.
20    (d) Subsequent to the Commission's issuance of an order
21approving the utility's performance-based formula rate
22structure and protocols, and initial rates under subsection
23(c) of this Section, the utility shall file, on or before May 1
24of each year, with the Chief Clerk of the Commission its
25updated cost inputs to the performance-based formula rate for
26the applicable rate year and the corresponding new charges.

 

 

SB3866 Enrolled- 54 -LRB102 24630 AMQ 33868 b

1Each such filing shall conform to the following requirements
2and include the following information:
3        (1) The inputs to the performance-based formula rate
4    for the applicable rate year shall be based on final
5    historical data reflected in the utility's most recently
6    filed annual FERC Form 1 plus projected plant additions
7    and correspondingly updated depreciation reserve and
8    expense for the calendar year in which the inputs are
9    filed. The filing shall also include a reconciliation of
10    the revenue requirement that was in effect for the prior
11    rate year (as set by the cost inputs for the prior rate
12    year) with the actual revenue requirement for the prior
13    rate year (determined using a year-end rate base) that
14    uses amounts reflected in the applicable FERC Form 1 that
15    reports the actual costs for the prior rate year. Any
16    over-collection or under-collection indicated by such
17    reconciliation shall be reflected as a credit against, or
18    recovered as an additional charge to, respectively, with
19    interest calculated at a rate equal to the utility's
20    weighted average cost of capital approved by the
21    Commission for the prior rate year, the charges for the
22    applicable rate year. Provided, however, that the first
23    such reconciliation shall be for the calendar year in
24    which the utility files its performance-based formula rate
25    tariff pursuant to subsection (c) of this Section and
26    shall reconcile (i) the revenue requirement or

 

 

SB3866 Enrolled- 55 -LRB102 24630 AMQ 33868 b

1    requirements established by the rate order or orders in
2    effect from time to time during such calendar year
3    (weighted, as applicable) with (ii) the revenue
4    requirement determined using a year-end rate base for that
5    calendar year calculated pursuant to the performance-based
6    formula rate using (A) actual costs for that year as
7    reflected in the applicable FERC Form 1, and (B) for the
8    first such reconciliation only, the cost of equity, which
9    shall be calculated as the sum of 590 basis points plus the
10    average for the applicable calendar year of the monthly
11    average yields of 30-year U.S. Treasury bonds published by
12    the Board of Governors of the Federal Reserve System in
13    its weekly H.15 Statistical Release or successor
14    publication. The first such reconciliation is not intended
15    to provide for the recovery of costs previously excluded
16    from rates based on a prior Commission order finding of
17    imprudence or unreasonableness. Each reconciliation shall
18    be certified by the participating utility in the same
19    manner that FERC Form 1 is certified. The filing shall
20    also include the charge or credit, if any, resulting from
21    the calculation required by paragraph (6) of subsection
22    (c) of this Section.
23        Notwithstanding anything that may be to the contrary,
24    the intent of the reconciliation is to ultimately
25    reconcile the revenue requirement reflected in rates for
26    each calendar year, beginning with the calendar year in

 

 

SB3866 Enrolled- 56 -LRB102 24630 AMQ 33868 b

1    which the utility files its performance-based formula rate
2    tariff pursuant to subsection (c) of this Section, with
3    what the revenue requirement determined using a year-end
4    rate base for the applicable calendar year would have been
5    had the actual cost information for the applicable
6    calendar year been available at the filing date.
7        (2) The new charges shall take effect beginning on the
8    first billing day of the following January billing period
9    and remain in effect through the last billing day of the
10    next December billing period regardless of whether the
11    Commission enters upon a hearing pursuant to this
12    subsection (d).
13        (3) The filing shall include relevant and necessary
14    data and documentation for the applicable rate year that
15    is consistent with the Commission's rules applicable to a
16    filing for a general increase in rates or any rules
17    adopted by the Commission to implement this Section.
18    Normalization adjustments shall not be required.
19    Notwithstanding any other provision of this Section or Act
20    or any rule or other requirement adopted by the
21    Commission, a participating utility that is a combination
22    utility with more than one rate zone shall not be required
23    to file a separate set of such data and documentation for
24    each rate zone and may combine such data and documentation
25    into a single set of schedules.
26    Within 45 days after the utility files its annual update

 

 

SB3866 Enrolled- 57 -LRB102 24630 AMQ 33868 b

1of cost inputs to the performance-based formula rate, the
2Commission shall have the authority, either upon complaint or
3its own initiative, but with reasonable notice, to enter upon
4a hearing concerning the prudence and reasonableness of the
5costs incurred by the utility to be recovered during the
6applicable rate year that are reflected in the inputs to the
7performance-based formula rate derived from the utility's FERC
8Form 1. During the course of the hearing, each objection shall
9be stated with particularity and evidence provided in support
10thereof, after which the utility shall have the opportunity to
11rebut the evidence. Discovery shall be allowed consistent with
12the Commission's Rules of Practice, which Rules shall be
13enforced by the Commission or the assigned administrative law
14judge. The Commission shall apply the same evidentiary
15standards, including, but not limited to, those concerning the
16prudence and reasonableness of the costs incurred by the
17utility, in the hearing as it would apply in a hearing to
18review a filing for a general increase in rates under Article
19IX of this Act. The Commission shall not, however, have the
20authority in a proceeding under this subsection (d) to
21consider or order any changes to the structure or protocols of
22the performance-based formula rate approved pursuant to
23subsection (c) of this Section. In a proceeding under this
24subsection (d), the Commission shall enter its order no later
25than the earlier of 240 days after the utility's filing of its
26annual update of cost inputs to the performance-based formula

 

 

SB3866 Enrolled- 58 -LRB102 24630 AMQ 33868 b

1rate or December 31. The Commission's determinations of the
2prudence and reasonableness of the costs incurred for the
3applicable calendar year shall be final upon entry of the
4Commission's order and shall not be subject to reopening,
5reexamination, or collateral attack in any other Commission
6proceeding, case, docket, order, rule or regulation, provided,
7however, that nothing in this subsection (d) shall prohibit a
8party from petitioning the Commission to rehear or appeal to
9the courts the order pursuant to the provisions of this Act.
10    In the event the Commission does not, either upon
11complaint or its own initiative, enter upon a hearing within
1245 days after the utility files the annual update of cost
13inputs to its performance-based formula rate, then the costs
14incurred for the applicable calendar year shall be deemed
15prudent and reasonable, and the filed charges shall not be
16subject to reopening, reexamination, or collateral attack in
17any other proceeding, case, docket, order, rule, or
18regulation.
19    A participating utility's first filing of the updated cost
20inputs, and any Commission investigation of such inputs
21pursuant to this subsection (d) shall proceed notwithstanding
22the fact that the Commission's investigation under subsection
23(c) of this Section is still pending and notwithstanding any
24other law, order, rule, or Commission practice to the
25contrary.
26    (e) Nothing in subsections (c) or (d) of this Section

 

 

SB3866 Enrolled- 59 -LRB102 24630 AMQ 33868 b

1shall prohibit the Commission from investigating, or a
2participating utility from filing, revenue-neutral tariff
3changes related to rate design of a performance-based formula
4rate that has been placed into effect for the utility.
5Following approval of a participating utility's
6performance-based formula rate tariff pursuant to subsection
7(c) of this Section, the utility shall make a filing with the
8Commission within one year after the effective date of the
9performance-based formula rate tariff that proposes changes to
10the tariff to incorporate the findings of any final rate
11design orders of the Commission applicable to the
12participating utility and entered subsequent to the
13Commission's approval of the tariff. The Commission shall,
14after notice and hearing, enter its order approving, or
15approving with modification, the proposed changes to the
16performance-based formula rate tariff within 240 days after
17the utility's filing. Following such approval, the utility
18shall make a filing with the Commission during each subsequent
193-year period that either proposes revenue-neutral tariff
20changes or re-files the existing tariffs without change, which
21shall present the Commission with an opportunity to suspend
22the tariffs and consider revenue-neutral tariff changes
23related to rate design.
24    (f) Within 30 days after the filing of a tariff pursuant to
25subsection (c) of this Section, each participating utility
26shall develop and file with the Commission multi-year metrics

 

 

SB3866 Enrolled- 60 -LRB102 24630 AMQ 33868 b

1designed to achieve, ratably (i.e., in equal segments) over a
210-year period, improvement over baseline performance values
3as follows:
4        (1) Twenty percent improvement in the System Average
5    Interruption Frequency Index, using a baseline of the
6    average of the data from 2001 through 2010.
7        (2) Fifteen percent improvement in the system Customer
8    Average Interruption Duration Index, using a baseline of
9    the average of the data from 2001 through 2010.
10        (3) For a participating utility other than a
11    combination utility, 20% improvement in the System Average
12    Interruption Frequency Index for its Southern Region,
13    using a baseline of the average of the data from 2001
14    through 2010. For purposes of this paragraph (3), Southern
15    Region shall have the meaning set forth in the
16    participating utility's most recent report filed pursuant
17    to Section 16-125 of this Act.
18        (3.5) For a participating utility other than a
19    combination utility, 20% improvement in the System Average
20    Interruption Frequency Index for its Northeastern Region,
21    using a baseline of the average of the data from 2001
22    through 2010. For purposes of this paragraph (3.5),
23    Northeastern Region shall have the meaning set forth in
24    the participating utility's most recent report filed
25    pursuant to Section 16-125 of this Act.
26        (4) Seventy-five percent improvement in the total

 

 

SB3866 Enrolled- 61 -LRB102 24630 AMQ 33868 b

1    number of customers who exceed the service reliability
2    targets as set forth in subparagraphs (A) through (C) of
3    paragraph (4) of subsection (b) of 83 Ill. Admin. Code
4    Part 411.140 as of May 1, 2011, using 2010 as the baseline
5    year.
6        (5) Reduction in issuance of estimated electric bills:
7    90% improvement for a participating utility other than a
8    combination utility, and 56% improvement for a
9    participating utility that is a combination utility, using
10    a baseline of the average number of estimated bills for
11    the years 2008 through 2010.
12        (6) Consumption on inactive meters: 90% improvement
13    for a participating utility other than a combination
14    utility, and 56% improvement for a participating utility
15    that is a combination utility, using a baseline of the
16    average unbilled kilowatthours for the years 2009 and
17    2010.
18        (7) Unaccounted for energy: 50% improvement for a
19    participating utility other than a combination utility
20    using a baseline of the non-technical line loss
21    unaccounted for energy kilowatthours for the year 2009.
22        (8) Uncollectible expense: reduce uncollectible
23    expense by at least $30,000,000 for a participating
24    utility other than a combination utility and by at least
25    $3,500,000 for a participating utility that is a
26    combination utility, using a baseline of the average

 

 

SB3866 Enrolled- 62 -LRB102 24630 AMQ 33868 b

1    uncollectible expense for the years 2008 through 2010.
2        (9) Opportunities for minority-owned and female-owned
3    business enterprises: design a performance metric
4    regarding the creation of opportunities for minority-owned
5    and female-owned business enterprises consistent with
6    State and federal law using a base performance value of
7    the percentage of the participating utility's capital
8    expenditures that were paid to minority-owned and
9    female-owned business enterprises in 2010.
10    The definitions set forth in 83 Ill. Admin. Code Part
11411.20 as of May 1, 2011 shall be used for purposes of
12calculating performance under paragraphs (1) through (3.5) of
13this subsection (f), provided, however, that the participating
14utility may exclude up to 9 extreme weather event days from
15such calculation for each year, and provided further that the
16participating utility shall exclude 9 extreme weather event
17days when calculating each year of the baseline period to the
18extent that there are 9 such days in a given year of the
19baseline period. For purposes of this Section, an extreme
20weather event day is a 24-hour calendar day (beginning at
2112:00 a.m. and ending at 11:59 p.m.) during which any weather
22event (e.g., storm, tornado) caused interruptions for 10,000
23or more of the participating utility's customers for 3 hours
24or more. If there are more than 9 extreme weather event days in
25a year, then the utility may choose no more than 9 extreme
26weather event days to exclude, provided that the same extreme

 

 

SB3866 Enrolled- 63 -LRB102 24630 AMQ 33868 b

1weather event days are excluded from each of the calculations
2performed under paragraphs (1) through (3.5) of this
3subsection (f).
4    The metrics shall include incremental performance goals
5for each year of the 10-year period, which shall be designed to
6demonstrate that the utility is on track to achieve the
7performance goal in each category at the end of the 10-year
8period. The utility shall elect when the 10-year period shall
9commence for the metrics set forth in subparagraphs (1)
10through (4) and (9) of this subsection (f), provided that it
11begins no later than 14 months following the date on which the
12utility begins investing pursuant to subsection (b) of this
13Section, and when the 10-year period shall commence for the
14metrics set forth in subparagraphs (5) through (8) of this
15subsection (f), provided that it begins no later than 14
16months following the date on which the Commission enters its
17order approving the utility's Advanced Metering Infrastructure
18Deployment Plan pursuant to subsection (c) of Section 16-108.6
19of this Act.
20    The metrics and performance goals set forth in
21subparagraphs (5) through (8) of this subsection (f) are based
22on the assumptions that the participating utility may fully
23implement the technology described in subsection (b) of this
24Section, including utilizing the full functionality of such
25technology and that there is no requirement for personal
26on-site notification. If the utility is unable to meet the

 

 

SB3866 Enrolled- 64 -LRB102 24630 AMQ 33868 b

1metrics and performance goals set forth in subparagraphs (5)
2through (8) of this subsection (f) for such reasons, and the
3Commission so finds after notice and hearing, then the utility
4shall be excused from compliance, but only to the limited
5extent achievement of the affected metrics and performance
6goals was hindered by the less than full implementation.
7    (f-5) The financial penalties applicable to the metrics
8described in subparagraphs (1) through (8) of subsection (f)
9of this Section, as applicable, shall be applied through an
10adjustment to the participating utility's return on equity of
11no more than a total of 30 basis points in each of the first 3
12years, of no more than a total of 34 basis points in each of
13the 3 years thereafter, and of no more than a total of 38 basis
14points in each of the 4 years thereafter, as follows:
15        (1) With respect to each of the incremental annual
16    performance goals established pursuant to paragraph (1) of
17    subsection (f) of this Section,
18            (A) for each year that a participating utility
19        other than a combination utility does not achieve the
20        annual goal, the participating utility's return on
21        equity shall be reduced as follows: during years 1
22        through 3, by 5 basis points; during years 4 through 6,
23        by 6 basis points; and during years 7 through 10, by 7
24        basis points; and
25            (B) for each year that a participating utility
26        that is a combination utility does not achieve the

 

 

SB3866 Enrolled- 65 -LRB102 24630 AMQ 33868 b

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

 

 

SB3866 Enrolled- 66 -LRB102 24630 AMQ 33868 b

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

 

 

SB3866 Enrolled- 67 -LRB102 24630 AMQ 33868 b

1    The financial penalties shall be applied as described in
2this subsection (f-5) for the 12-month period in which the
3deficiency occurred through a separate tariff mechanism, which
4shall be filed by the utility together with its metrics. In the
5event the formula rate tariff established pursuant to
6subsection (c) of this Section terminates, the utility's
7obligations under subsection (f) of this Section and this
8subsection (f-5) shall also terminate, provided, however, that
9the tariff mechanism established pursuant to subsection (f) of
10this Section and this subsection (f-5) shall remain in effect
11until any penalties due and owing at the time of such
12termination are applied.
13    The Commission shall, after notice and hearing, enter an
14order within 120 days after the metrics are filed approving,
15or approving with modification, a participating utility's
16tariff or mechanism to satisfy the metrics set forth in
17subsection (f) of this Section. On June 1 of each subsequent
18year, each participating utility shall file a report with the
19Commission that includes, among other things, a description of
20how the participating utility performed under each metric and
21an identification of any extraordinary events that adversely
22impacted the utility's performance. Whenever a participating
23utility does not satisfy the metrics required pursuant to
24subsection (f) of this Section, the Commission shall, after
25notice and hearing, enter an order approving financial
26penalties in accordance with this subsection (f-5). The

 

 

SB3866 Enrolled- 68 -LRB102 24630 AMQ 33868 b

1Commission-approved financial penalties shall be applied
2beginning with the next rate year. Nothing in this Section
3shall authorize the Commission to reduce or otherwise obviate
4the imposition of financial penalties for failing to achieve
5one or more of the metrics established pursuant to
6subparagraph (1) through (4) of subsection (f) of this
7Section.
8    (g) On or before July 31, 2014, each participating utility
9shall file a report with the Commission that sets forth the
10average annual increase in the average amount paid per
11kilowatthour for residential eligible retail customers,
12exclusive of the effects of energy efficiency programs,
13comparing the 12-month period ending May 31, 2012; the
1412-month period ending May 31, 2013; and the 12-month period
15ending May 31, 2014. For a participating utility that is a
16combination utility with more than one rate zone, the weighted
17average aggregate increase shall be provided. The report shall
18be filed together with a statement from an independent auditor
19attesting to the accuracy of the report. The cost of the
20independent auditor shall be borne by the participating
21utility and shall not be a recoverable expense. "The average
22amount paid per kilowatthour" shall be based on the
23participating utility's tariffed rates actually in effect and
24shall not be calculated using any hypothetical rate or
25adjustments to actual charges (other than as specified for
26energy efficiency) as an input.

 

 

SB3866 Enrolled- 69 -LRB102 24630 AMQ 33868 b

1    In the event that the average annual increase exceeds 2.5%
2as calculated pursuant to this subsection (g), then Sections
316-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other
4than this subsection, shall be inoperative as they relate to
5the utility and its service area as of the date of the report
6due to be submitted pursuant to this subsection and the
7utility shall no longer be eligible to annually update the
8performance-based formula rate tariff pursuant to subsection
9(d) of this Section. In such event, the then current rates
10shall remain in effect until such time as new rates are set
11pursuant to Article IX of this Act, subject to retroactive
12adjustment, with interest, to reconcile rates charged with
13actual costs, and the participating utility's voluntary
14commitments and obligations under subsection (b) of this
15Section shall immediately terminate, except for the utility's
16obligation to pay an amount already owed to the fund for
17training grants pursuant to a Commission order issued under
18subsection (b) of this Section.
19    In the event that the average annual increase is 2.5% or
20less as calculated pursuant to this subsection (g), then the
21performance-based formula rate shall remain in effect as set
22forth in this Section.
23    For purposes of this Section, the amount per kilowatthour
24means the total amount paid for electric service expressed on
25a per kilowatthour basis, and the total amount paid for
26electric service includes without limitation amounts paid for

 

 

SB3866 Enrolled- 70 -LRB102 24630 AMQ 33868 b

1supply, transmission, distribution, surcharges, and add-on
2taxes exclusive of any increases in taxes or new taxes imposed
3after October 26, 2011 (the effective date of Public Act
497-616). For purposes of this Section, "eligible retail
5customers" shall have the meaning set forth in Section
616-111.5 of this Act.
7    The fact that this Section becomes inoperative as set
8forth in this subsection shall not be construed to mean that
9the Commission may reexamine or otherwise reopen prudence or
10reasonableness determinations already made.
11    (h) By December 31, 2017, the Commission shall prepare and
12file with the General Assembly a report on the infrastructure
13program and the performance-based formula rate. The report
14shall include the change in the average amount per
15kilowatthour paid by residential customers between June 1,
162011 and May 31, 2017. If the change in the total average rate
17paid exceeds 2.5% compounded annually, the Commission shall
18include in the report an analysis that shows the portion of the
19change due to the delivery services component and the portion
20of the change due to the supply component of the rate. The
21report shall include separate sections for each participating
22utility.
23    Sections 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of
24this Act, other than this subsection (h) and subsection (i) of
25this Section, are inoperative after December 31, 2022 for
26every participating utility, after which time a participating

 

 

SB3866 Enrolled- 71 -LRB102 24630 AMQ 33868 b

1utility shall no longer be eligible to annually update the
2performance-based formula rate tariff pursuant to subsection
3(d) of this Section. At such time, the then current rates shall
4remain in effect until such time as new rates are set pursuant
5to Article IX of this Act, subject to retroactive adjustment,
6with interest, to reconcile rates charged with actual costs.
7    The fact that this Section becomes inoperative as set
8forth in this subsection shall not be construed to mean that
9the Commission may reexamine or otherwise reopen prudence or
10reasonableness determinations already made.
11    (i) While a participating utility may use, develop, and
12maintain broadband systems and the delivery of broadband
13services, voice-over-internet-protocol services,
14telecommunications services, and cable and video programming
15services for use in providing delivery services and Smart Grid
16functionality or application to its retail customers,
17including, but not limited to, the installation,
18implementation and maintenance of Smart Grid electric system
19upgrades as defined in Section 16-108.6 of this Act, a
20participating utility is prohibited from providing offering to
21its retail customers broadband services or the delivery of
22broadband services, voice-over-internet-protocol services,
23telecommunications services, or cable or video programming
24services, unless they are part of a service directly related
25to delivery services or Smart Grid functionality or
26applications as defined in Section 16-108.6 of this Act, and

 

 

SB3866 Enrolled- 72 -LRB102 24630 AMQ 33868 b

1from recovering the costs of such offerings from retail
2customers. The prohibition set forth in this subsection (i) is
3inoperative after December 31, 2027 for every participating
4utility.
5    (j) Nothing in this Section is intended to legislatively
6overturn the opinion issued in Commonwealth Edison Co. v. Ill.
7Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137,
81-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App.
9Ct. 2d Dist. Sept. 30, 2010). Public Act 97-616 shall not be
10construed as creating a contract between the General Assembly
11and the participating utility, and shall not establish a
12property right in the participating utility.
13    (k) The changes made in subsections (c) and (d) of this
14Section by Public Act 98-15 are intended to be a restatement
15and clarification of existing law, and intended to give
16binding effect to the provisions of House Resolution 1157
17adopted by the House of Representatives of the 97th General
18Assembly and Senate Resolution 821 adopted by the Senate of
19the 97th General Assembly that are reflected in paragraph (3)
20of this subsection. In addition, Public Act 98-15 preempts and
21supersedes any final Commission orders entered in Docket Nos.
2211-0721, 12-0001, 12-0293, and 12-0321 to the extent
23inconsistent with the amendatory language added to subsections
24(c) and (d).
25        (1) No earlier than 5 business days after May 22, 2013
26    (the effective date of Public Act 98-15), each

 

 

SB3866 Enrolled- 73 -LRB102 24630 AMQ 33868 b

1    participating utility shall file any tariff changes
2    necessary to implement the amendatory language set forth
3    in subsections (c) and (d) of this Section by Public Act
4    98-15 and a revised revenue requirement under the
5    participating utility's performance-based formula rate.
6    The Commission shall enter a final order approving such
7    tariff changes and revised revenue requirement within 21
8    days after the participating utility's filing.
9        (2) Notwithstanding anything that may be to the
10    contrary, a participating utility may file a tariff to
11    retroactively recover its previously unrecovered actual
12    costs of delivery service that are no longer subject to
13    recovery through a reconciliation adjustment under
14    subsection (d) of this Section. This retroactive recovery
15    shall include any derivative adjustments resulting from
16    the changes to subsections (c) and (d) of this Section by
17    Public Act 98-15. Such tariff shall allow the utility to
18    assess, on current customer bills over a period of 12
19    monthly billing periods, a charge or credit related to
20    those unrecovered costs with interest at the utility's
21    weighted average cost of capital during the period in
22    which those costs were unrecovered. A participating
23    utility may file a tariff that implements a retroactive
24    charge or credit as described in this paragraph for
25    amounts not otherwise included in the tariff filing
26    provided for in paragraph (1) of this subsection (k). The

 

 

SB3866 Enrolled- 74 -LRB102 24630 AMQ 33868 b

1    Commission shall enter a final order approving such tariff
2    within 21 days after the participating utility's filing.
3        (3) The tariff changes described in paragraphs (1) and
4    (2) of this subsection (k) shall relate only to, and be
5    consistent with, the following provisions of Public Act
6    98-15: paragraph (2) of subsection (c) regarding year-end
7    capital structure, subparagraph (D) of paragraph (4) of
8    subsection (c) regarding pension assets, and subsection
9    (d) regarding the reconciliation components related to
10    year-end rate base and interest calculated at a rate equal
11    to the utility's weighted average cost of capital.
12        (4) Nothing in this subsection is intended to effect a
13    dismissal of or otherwise affect an appeal from any final
14    Commission orders entered in Docket Nos. 11-0721, 12-0001,
15    12-0293, and 12-0321 other than to the extent of the
16    amendatory language contained in subsections (c) and (d)
17    of this Section of Public Act 98-15.
18    (l) Each participating utility shall be deemed to have
19been in full compliance with all requirements of subsection
20(b) of this Section, subsection (c) of this Section, Section
2116-108.6 of this Act, and all Commission orders entered
22pursuant to Sections 16-108.5 and 16-108.6 of this Act, up to
23and including May 22, 2013 (the effective date of Public Act
2498-15). The Commission shall not undertake any investigation
25of such compliance and no penalty shall be assessed or adverse
26action taken against a participating utility for noncompliance

 

 

SB3866 Enrolled- 75 -LRB102 24630 AMQ 33868 b

1with Commission orders associated with subsection (b) of this
2Section, subsection (c) of this Section, and Section 16-108.6
3of this Act prior to such date. Each participating utility
4other than a combination utility shall be permitted, without
5penalty, a period of 12 months after such effective date to
6take actions required to ensure its infrastructure investment
7program is in compliance with subsection (b) of this Section
8and with Section 16-108.6 of this Act. Provided further, the
9following subparagraphs shall apply to a participating utility
10other than a combination utility:
11        (A) if the Commission has initiated a proceeding
12    pursuant to subsection (e) of Section 16-108.6 of this Act
13    that is pending as of May 22, 2013 (the effective date of
14    Public Act 98-15), then the order entered in such
15    proceeding shall, after notice and hearing, accelerate the
16    commencement of the meter deployment schedule approved in
17    the final Commission order on rehearing entered in Docket
18    No. 12-0298;
19        (B) if the Commission has entered an order pursuant to
20    subsection (e) of Section 16-108.6 of this Act prior to
21    May 22, 2013 (the effective date of Public Act 98-15) that
22    does not accelerate the commencement of the meter
23    deployment schedule approved in the final Commission order
24    on rehearing entered in Docket No. 12-0298, then the
25    utility shall file with the Commission, within 45 days
26    after such effective date, a plan for accelerating the

 

 

SB3866 Enrolled- 76 -LRB102 24630 AMQ 33868 b

1    commencement of the utility's meter deployment schedule
2    approved in the final Commission order on rehearing
3    entered in Docket No. 12-0298; the Commission shall reopen
4    the proceeding in which it entered its order pursuant to
5    subsection (e) of Section 16-108.6 of this Act and shall,
6    after notice and hearing, enter an amendatory order that
7    approves or approves as modified such accelerated plan
8    within 90 days after the utility's filing; or
9        (C) if the Commission has not initiated a proceeding
10    pursuant to subsection (e) of Section 16-108.6 of this Act
11    prior to May 22, 2013 (the effective date of Public Act
12    98-15), then the utility shall file with the Commission,
13    within 45 days after such effective date, a plan for
14    accelerating the commencement of the utility's meter
15    deployment schedule approved in the final Commission order
16    on rehearing entered in Docket No. 12-0298 and the
17    Commission shall, after notice and hearing, approve or
18    approve as modified such plan within 90 days after the
19    utility's filing.
20    Any schedule for meter deployment approved by the
21Commission pursuant to this subsection (l) shall take into
22consideration procurement times for meters and other equipment
23and operational issues. Nothing in Public Act 98-15 shall
24shorten or extend the end dates for the 5-year or 10-year
25periods set forth in subsection (b) of this Section or Section
2616-108.6 of this Act. Nothing in this subsection is intended

 

 

SB3866 Enrolled- 77 -LRB102 24630 AMQ 33868 b

1to address whether a participating utility has, or has not,
2satisfied any or all of the metrics and performance goals
3established pursuant to subsection (f) of this Section.
4    (m) The provisions of Public Act 98-15 are severable under
5Section 1.31 of the Statute on Statutes.
6(Source: P.A. 99-143, eff. 7-27-15; 99-642, eff. 7-28-16;
799-906, eff. 6-1-17; 100-840, eff. 8-13-18.)
 
8    (220 ILCS 5/16-108.30)
9    Sec. 16-108.30. Energy Transition Assistance Fund.
10    (a) The Energy Transition Assistance Fund is hereby
11created as a special fund in the State Treasury. The Energy
12Transition Assistance Fund is authorized to receive moneys
13collected pursuant to this Section. Subject to appropriation,
14the Department of Commerce and Economic Opportunity shall use
15moneys from the Energy Transition Assistance Fund consistent
16with the purposes of this Act.
17    (b) An electric utility serving more than 500,000
18customers in the State shall assess an energy transition
19assistance charge on all its retail customers for the Energy
20Transition Assistance Fund. The utility's total charge shall
21be set based upon the value determined by the Department of
22Commerce and Economic Opportunity pursuant to subsection (d)
23or (e), as applicable, of Section 605-1075 of the Department
24of Commerce and Economic Opportunity Law of the Civil
25Administrative Code of Illinois. For each utility, the charge

 

 

SB3866 Enrolled- 78 -LRB102 24630 AMQ 33868 b

1shall be recovered through a single, uniform cents per
2kilowatt-hour charge applicable to all retail customers. For
3each utility, the charge shall not exceed 1.3% of the amount
4paid per kilowatthour by eligible retail those customers
5during the year ending May 31, 2009.
6    (c) Within 75 days of the effective date of this
7amendatory Act of the 102nd General Assembly, each electric
8utility serving more than 500,000 customers in the State shall
9file with the Illinois Commerce Commission tariffs
10incorporating the energy transition assistance charge in other
11charges stated in such tariffs, which energy transition
12assistance charges shall become effective no later than the
13beginning of the first billing cycle that begins on or after
14January 1, 2022. Each electric utility serving more than
15500,000 customers in the State shall, prior to the beginning
16of each calendar year starting with calendar year 2023, file
17with the Illinois Commerce Commission tariff revisions to
18incorporate annual revisions to the energy transition
19assistance charge as prescribed by the Department of Commerce
20and Economic Opportunity pursuant to Section 605-1075 of the
21Department of Commerce and Economic Opportunity Law of the
22Civil Administrative Code of Illinois so that such revision
23becomes effective no later than the beginning of the first
24billing cycle in each respective year.
25    (d) The energy transition assistance charge shall be
26considered a charge for public utility service.

 

 

SB3866 Enrolled- 79 -LRB102 24630 AMQ 33868 b

1    (e) By the 20th day of the month following the month in
2which the charges imposed by this Section were collected, each
3electric utility serving more than 500,000 customers in the
4State shall remit to Department of Revenue all moneys received
5as payment of the energy transition assistance charge on a
6return prescribed and furnished by the Department of Revenue
7showing such information as the Department of Revenue may
8reasonably require. If a customer makes a partial payment, a
9public utility may apply such partial payments first to
10amounts owed to the utility. No customer may be subjected to
11disconnection of his or her utility service for failure to pay
12the energy transition assistance charge.
13    If any payment provided for in this subsection exceeds the
14electric utility's liabilities under this Act, as shown on an
15original return, the Department may authorize the electric
16utility to credit such excess payment against liability
17subsequently to be remitted to the Department under this Act,
18in accordance with reasonable rules adopted by the Department.
19    All the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e,
205f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13
21of the Retailers' Occupation Tax Act that are not inconsistent
22with this Act apply, as far as practicable, to the charge
23imposed by this Act to the same extent as if those provisions
24were included in this Act. References in the incorporated
25Sections of the Retailers' Occupation Tax Act to retailers, to
26sellers, or to persons engaged in the business of selling

 

 

SB3866 Enrolled- 80 -LRB102 24630 AMQ 33868 b

1tangible personal property mean persons required to remit the
2charge imposed under this Act.
3    (f) The Department of Revenue shall deposit into the
4Energy Transition Assistance Fund all moneys remitted to it in
5accordance with this Section.
6    (g) The Department of Revenue may establish such rules as
7it deems necessary to implement this Section.
8    (h) The Department of Commerce and Economic Opportunity
9may establish such rules as it deems necessary to implement
10this Section.
11(Source: P.A. 102-662, eff. 9-15-21.)
 
12    (220 ILCS 5/16-111.11 new)
13    Sec. 16-111.11. Supplier diversity reporting for
14non-utilities.
15    (a) The following entities shall submit an annual supplier
16diversity report to the Commission for a given year:
17        (1) entities that received a contract to provide more
18    than 10,000 renewable energy credits approved by the
19    Commission in a given year pursuant to subparagraph (iii)
20    of paragraph (5) of subsection (b) of Section 16-111.5;
21        (2) entities that received a contract to provide more
22    than 10,000 renewable energy credits approved by the
23    Commission in a given year pursuant to subsection (e) of
24    Section 16-111.5;
25        (3) alternative retail electric suppliers that have

 

 

SB3866 Enrolled- 81 -LRB102 24630 AMQ 33868 b

1    yearly sales in the State of 1,000,000,000 kilowatt hours
2    or more, and alternative gas suppliers as defined in
3    Section 19-105 that have yearly sales in the State of
4    1,000,000 dekatherms or more;
5        (4) entities constructing or operating an HVDC
6    transmission line as defined in Section 1-10 of the
7    Illinois Power Agency Act or entities constructing or
8    operating transmission facilities under a certificate of
9    public convenience and necessity issued pursuant to
10    subsection (b-5) of Section 8-406;
11        (5) entities installing more than 100 energy
12    efficiency measures with a certificate approved by the
13    Commission pursuant to Section 16-128B; and
14        (6) other suppliers of electricity generated from any
15    resource, including, but not limited to, hydro, nuclear,
16    coal, natural gas, and any other supplier of energy within
17    this State.
18    (b) An annual report filed pursuant to this Section shall
19be filed on an electronic form as designed by the Commission by
20June 1, 2023 and every June 1 thereafter, in a searchable Adobe
21PDF format, on all procurement goals and actual spending for
22women-owned businesses, minority-owned businesses,
23veteran-owned businesses, and small business enterprises in
24the previous calendar year related to the performance of
25obligations in the State of the contracts of licenses listed
26in subsection (a). These goals shall be expressed as a

 

 

SB3866 Enrolled- 82 -LRB102 24630 AMQ 33868 b

1percentage of the total work performed by the entity
2submitting the report. The actual spending for all women-owned
3businesses, minority-owned businesses, veteran-owned
4businesses, and small business enterprises shall also be
5expressed as a percentage of the total work performed by the
6entity submitting the report. Notwithstanding any provision of
7law to the contrary, any entity with obligations related to
8equity eligible actions pursuant to the Illinois Power Agency
9Act may express such goals and spending in those terms.
10    Each participating entity in its annual report shall
11include the following information related to the entity's
12operations in the State related to the certificates or
13activities listed in subsection (a):
14        (1) an explanation of the plan for the next year to
15    increase participation;
16        (2) an explanation of the plan to increase the goals;
17        (3) the areas of procurement each entity shall be
18    actively seeking more participation in the next year;
19        (4) an outline of the plan to alert and encourage
20    potential vendors in that area to seek business from the
21    entity;
22        (5) an explanation of the challenges faced in finding
23    quality vendors and offer any suggestions for what the
24    Commission could do to be helpful to identify those
25    vendors;
26        (6) a list of the certifications the entity

 

 

SB3866 Enrolled- 83 -LRB102 24630 AMQ 33868 b

1    recognizes;
2        (7) the point of contact for any potential vendor who
3    wants to do business with the entity and explain the
4    process for a vendor to enroll with the company as a
5    minority-owned, women-owned, or veteran-owned company; and
6        (8) any particular success stories to encourage other
7    entities to emulate best practices.
8    (c) Each annual report shall include as much
9State-specific data as possible. If the submitting entity does
10not submit State-specific data, then the entity shall include
11any national data it does have and explain why it could not
12submit State-specific data and how it intends to do so in
13future reports.
14    (d) Each annual report shall include the rules,
15regulations, and definitions used for the procurement goals in
16the entity's annual report.
17    (e) Each annual report filed or submitted under this
18Section shall be submitted with the Commission. The Commission
19shall not be required or authorized to compel production of
20any report under this Section. The Commission shall hold an
21annual workshop open to the public in 2024 and every year
22thereafter on the state of supplier diversity to
23collaboratively seek solutions to structural impediments to
24achieving stated goals, including testimony from participating
25entities as well as subject matter experts and advocates in a
26non-antagonistic manner. The Commission shall invite all

 

 

SB3866 Enrolled- 84 -LRB102 24630 AMQ 33868 b

1entities submitting a report pursuant to this Section. The
2Commission shall publish a database on its website of the
3point of contact for each participating entity for supplier
4diversity, along with a list of certifications each company
5recognizes from the information submitted in each annual
6report. The Commission shall publish each annual report on its
7website and shall maintain each annual report for at least 5
8years.
 
9    Section 1-15. The Environmental Protection Act is amended
10by changing Section 9.15 as follows:
 
11    (415 ILCS 5/9.15)
12    Sec. 9.15. Greenhouse gases.
13    (a) An air pollution construction permit shall not be
14required due to emissions of greenhouse gases if the
15equipment, site, or source is not subject to regulation, as
16defined by 40 CFR 52.21, as now or hereafter amended, for
17greenhouse gases or is otherwise not addressed in this Section
18or by the Board in regulations for greenhouse gases. These
19exemptions do not relieve an owner or operator from the
20obligation to comply with other applicable rules or
21regulations.
22    (b) An air pollution operating permit shall not be
23required due to emissions of greenhouse gases if the
24equipment, site, or source is not subject to regulation, as

 

 

SB3866 Enrolled- 85 -LRB102 24630 AMQ 33868 b

1defined by Section 39.5 of this Act, for greenhouse gases or is
2otherwise not addressed in this Section or by the Board in
3regulations for greenhouse gases. These exemptions do not
4relieve an owner or operator from the obligation to comply
5with other applicable rules or regulations.
6    (c) (Blank).
7    (d) (Blank).
8    (e) (Blank).
9    (f) As used in this Section:
10    "Carbon dioxide emission" means the plant annual CO2 total
11output emission as measured by the United States Environmental
12Protection Agency in its Emissions & Generation Resource
13Integrated Database (eGrid), or its successor.
14    "Carbon dioxide equivalent emissions" or "CO2e" means the
15sum total of the mass amount of emissions in tons per year,
16calculated by multiplying the mass amount of each of the 6
17greenhouse gases specified in Section 3.207, in tons per year,
18by its associated global warming potential as set forth in 40
19CFR 98, subpart A, table A-1 or its successor, and then adding
20them all together.
21    "Cogeneration" or "combined heat and power" refers to any
22system that, either simultaneously or sequentially, produces
23electricity and useful thermal energy from a single fuel
24source.
25    "Copollutants" refers to the 6 criteria pollutants that
26have been identified by the United States Environmental

 

 

SB3866 Enrolled- 86 -LRB102 24630 AMQ 33868 b

1Protection Agency pursuant to the Clean Air Act.
2    "Electric generating unit" or "EGU" means a fossil
3fuel-fired stationary boiler, combustion turbine, or combined
4cycle system that serves a generator that has a nameplate
5capacity greater than 25 MWe and produces electricity for
6sale.
7    "Environmental justice community" means the definition of
8that term based on existing methodologies and findings, used
9and as may be updated by the Illinois Power Agency and its
10program administrator in the Illinois Solar for All Program.
11    "Equity investment eligible community" or "eligible
12community" means the geographic areas throughout Illinois that
13would most benefit from equitable investments by the State
14designed to combat discrimination and foster sustainable
15economic growth. Specifically, eligible community means the
16following areas:
17        (1) areas where residents have been historically
18    excluded from economic opportunities, including
19    opportunities in the energy sector, as defined as R3 areas
20    pursuant to Section 10-40 of the Cannabis Regulation and
21    Tax Act; and
22        (2) areas where residents have been historically
23    subject to disproportionate burdens of pollution,
24    including pollution from the energy sector, as established
25    by environmental justice communities as defined by the
26    Illinois Power Agency pursuant to the Illinois Power

 

 

SB3866 Enrolled- 87 -LRB102 24630 AMQ 33868 b

1    Agency Act, excluding any racial or ethnic indicators.
2    "Equity investment eligible person" or "eligible person"
3means the persons who would most benefit from equitable
4investments by the State designed to combat discrimination and
5foster sustainable economic growth. Specifically, eligible
6person means the following people:
7        (1) persons whose primary residence is in an equity
8    investment eligible community;
9        (2) persons whose primary residence is in a
10    municipality, or a county with a population under 100,000,
11    where the closure of an electric generating unit or mine
12    has been publicly announced or the electric generating
13    unit or mine is in the process of closing or closed within
14    the last 5 years;
15        (3) persons who are graduates of or currently enrolled
16    in the foster care system; or
17        (4) persons who were formerly incarcerated.
18    "Existing emissions" means:
19        (1) for CO2e, the total average tons-per-year of CO2e
20    emitted by the EGU or large GHG-emitting unit either in
21    the years 2018 through 2020 or, if the unit was not yet in
22    operation by January 1, 2018, in the first 3 full years of
23    that unit's operation; and
24        (2) for any copollutant, the total average
25    tons-per-year of that copollutant emitted by the EGU or
26    large GHG-emitting unit either in the years 2018 through

 

 

SB3866 Enrolled- 88 -LRB102 24630 AMQ 33868 b

1    2020 or, if the unit was not yet in operation by January 1,
2    2018, in the first 3 full years of that unit's operation.
3    "Green hydrogen" means a power plant technology in which
4an EGU creates electric power exclusively from electrolytic
5hydrogen, in a manner that produces zero carbon and
6copollutant emissions, using hydrogen fuel that is
7electrolyzed using a 100% renewable zero carbon emission
8energy source.
9    "Large greenhouse gas-emitting unit" or "large
10GHG-emitting unit" means a unit that is an electric generating
11unit or other fossil fuel-fired unit that itself has a
12nameplate capacity or serves a generator that has a nameplate
13capacity greater than 25 MWe and that produces electricity,
14including, but not limited to, coal-fired, coal-derived,
15oil-fired, natural gas-fired, and cogeneration units.
16    "NOx emission rate" means the plant annual NOx total output
17emission rate as measured by the United States Environmental
18Protection Agency in its Emissions & Generation Resource
19Integrated Database (eGrid), or its successor, in the most
20recent year for which data is available.
21    "Public greenhouse gas-emitting units" or "public
22GHG-emitting unit" means large greenhouse gas-emitting units,
23including EGUs, that are wholly owned, directly or indirectly,
24by one or more municipalities, municipal corporations, joint
25municipal electric power agencies, electric cooperatives, or
26other governmental or nonprofit entities, whether organized

 

 

SB3866 Enrolled- 89 -LRB102 24630 AMQ 33868 b

1and created under the laws of Illinois or another state.
2    "SO2 emission rate" means the "plant annual SO2 total
3output emission rate" as measured by the United States
4Environmental Protection Agency in its Emissions & Generation
5Resource Integrated Database (eGrid), or its successor, in the
6most recent year for which data is available.
7    (g) All EGUs and large greenhouse gas-emitting units that
8use coal or oil as a fuel and are not public GHG-emitting units
9shall permanently reduce all CO2e and copollutant emissions to
10zero no later than January 1, 2030.
11    (h) All EGUs and large greenhouse gas-emitting units that
12use coal as a fuel and are public GHG-emitting units shall
13permanently reduce CO2e emissions to zero no later than
14December 31, 2045. Any source or plant with such units must
15also reduce their CO2e emissions by 45% from existing
16emissions by no later than January 1, 2035. If the emissions
17reduction requirement is not achieved by December 31, 2035,
18the plant shall retire one or more units or otherwise reduce
19its CO2e emissions by 45% from existing emissions by June 30,
202038.
21    (i) All EGUs and large greenhouse gas-emitting units that
22use gas as a fuel and are not public GHG-emitting units shall
23permanently reduce all CO2e and copollutant emissions to zero,
24including through unit retirement or the use of 100% green
25hydrogen or other similar technology that is commercially
26proven to achieve zero carbon emissions, according to the

 

 

SB3866 Enrolled- 90 -LRB102 24630 AMQ 33868 b

1following:
2        (1) No later than January 1, 2030: all EGUs and large
3    greenhouse gas-emitting units that have a NOx emissions
4    rate of greater than 0.12 lbs/MWh or a SO2 emission rate of
5    greater than 0.006 lb/MWh, and are located in or within 3
6    miles of an environmental justice community designated as
7    of January 1, 2021 or an equity investment eligible
8    community.
9        (2) No later than January 1, 2040: all EGUs and large
10    greenhouse gas-emitting units that have a NOx emission
11    rate of greater than 0.12 lbs/MWh or a SO2 emission rate
12    greater than 0.006 lb/MWh, and are not located in or
13    within 3 miles of an environmental justice community
14    designated as of January 1, 2021 or an equity investment
15    eligible community. After January 1, 2035, each such EGU
16    and large greenhouse gas-emitting unit shall reduce its
17    CO2e emissions by at least 50% from its existing emissions
18    for CO2e, and shall be limited in operation to, on average,
19    6 hours or less per day, measured over a calendar year, and
20    shall not run for more than 24 consecutive hours except in
21    emergency conditions, as designated by a Regional
22    Transmission Organization or Independent System Operator.
23        (3) No later than January 1, 2035: all EGUs and large
24    greenhouse gas-emitting units that began operation prior
25    to the effective date of this amendatory Act of the 102nd
26    General Assembly and have a NOx emission rate of less than

 

 

SB3866 Enrolled- 91 -LRB102 24630 AMQ 33868 b

1    or equal to 0.12 lb/MWh and a SO2 emission rate less than
2    or equal to 0.006 lb/MWh, and are located in or within 3
3    miles of an environmental justice community designated as
4    of January 1, 2021 or an equity investment eligible
5    community. Each such EGU and large greenhouse gas-emitting
6    unit shall reduce its CO2e emissions by at least 50% from
7    its existing emissions for CO2e no later than January 1,
8    2030.
9        (4) No later than January 1, 2040: All remaining EGUs
10    and large greenhouse gas-emitting units that have a heat
11    rate greater than or equal to 7000 BTU/kWh. Each such EGU
12    and Large greenhouse gas-emitting unit shall reduce its
13    CO2e emissions by at least 50% from its existing emissions
14    for CO2e no later than January 1, 2035.
15        (5) No later than January 1, 2045: all remaining EGUs
16    and large greenhouse gas-emitting units.
17    (j) All EGUs and large greenhouse gas-emitting units that
18use gas as a fuel and are public GHG-emitting units shall
19permanently reduce all CO2e and copollutant emissions to zero,
20including through unit retirement or the use of 100% green
21hydrogen or other similar technology that is commercially
22proven to achieve zero carbon emissions by January 1, 2045.
23    (k) All EGUs and large greenhouse gas-emitting units that
24utilize combined heat and power or cogeneration technology
25shall permanently reduce all CO2e and copollutant emissions to
26zero, including through unit retirement or the use of 100%

 

 

SB3866 Enrolled- 92 -LRB102 24630 AMQ 33868 b

1green hydrogen or other similar technology that is
2commercially proven to achieve zero carbon emissions by
3January 1, 2045.
4    (k-5) No EGU or large greenhouse gas-emitting unit that
5uses gas as a fuel and is not a public GHG-emitting unit may
6emit, in any 12-month period, CO2e or copollutants in excess of
7that unit's existing emissions for those pollutants.
8    (l) Notwithstanding subsections (g) through (k-5), large
9GHG-emitting units including EGUs may temporarily continue
10emitting CO2e and copollutants greenhouse gases after any
11applicable deadline specified in any of subsections (g)
12through (k-5) if it has been determined, as described in
13paragraphs (1) and (2) of this subsection, that ongoing
14operation of the EGU is necessary to maintain power grid
15supply and reliability or ongoing operation of large
16GHG-emitting unit that is not an EGU is necessary to serve as
17an emergency backup to operations. Up to and including the
18occurrence of an emission reduction deadline under subsection
19(i), all EGUs and large GHG-emitting units must comply with
20the following terms:
21        (1) if an EGU or large GHG-emitting unit that is a
22    participant in a regional transmission organization
23    intends to retire, it must submit documentation to the
24    appropriate regional transmission organization by the
25    appropriate deadline that meets all applicable regulatory
26    requirements necessary to obtain approval to permanently

 

 

SB3866 Enrolled- 93 -LRB102 24630 AMQ 33868 b

1    cease operating the large GHG-emitting unit;
2        (2) if any EGU or large GHG-emitting unit that is a
3    participant in a regional transmission organization
4    receives notice that the regional transmission
5    organization has determined that continued operation of
6    the unit is required, the unit may continue operating
7    until the issue identified by the regional transmission
8    organization is resolved. The owner or operator of the
9    unit must cooperate with the regional transmission
10    organization in resolving the issue and must reduce its
11    emissions to zero, consistent with the requirements under
12    subsection (g), (h), (i), (j), (k), or (k-5), as
13    applicable, as soon as practicable when the issue
14    identified by the regional transmission organization is
15    resolved; and
16        (3) any large GHG-emitting unit that is not a
17    participant in a regional transmission organization shall
18    be allowed to continue emitting CO2e and copollutants
19    greenhouse gases after the zero-emission date specified in
20    subsection (g), (h), (i), (j), (k), or (k-5), as
21    applicable, in the capacity of an emergency backup unit if
22    approved by the Illinois Commerce Commission.
23    (m) No variance, adjusted standard, or other regulatory
24relief otherwise available in this Act may be granted to the
25emissions reduction and elimination obligations in this
26Section.

 

 

SB3866 Enrolled- 94 -LRB102 24630 AMQ 33868 b

1    (n) By June 30 of each year, beginning in 2025, the Agency
2shall prepare and publish on its website a report setting
3forth the actual greenhouse gas emissions from individual
4units and the aggregate statewide emissions from all units for
5the prior year.
6    (o) Every 5 years beginning in 2025, the Environmental
7Protection Agency, Illinois Power Agency, and Illinois
8Commerce Commission shall jointly prepare, and release
9publicly, a report to the General Assembly that examines the
10State's current progress toward its renewable energy resource
11development goals, the status of CO2e and copollutant
12emissions reductions, the current status and progress toward
13developing and implementing green hydrogen technologies, the
14current and projected status of electric resource adequacy and
15reliability throughout the State for the period beginning 5
16years ahead, and proposed solutions for any findings. The
17Environmental Protection Agency, Illinois Power Agency, and
18Illinois Commerce Commission shall consult PJM
19Interconnection, LLC and Midcontinent Independent System
20Operator, Inc., or their respective successor organizations
21regarding forecasted resource adequacy and reliability needs,
22anticipated new generation interconnection, new transmission
23development or upgrades, and any announced large GHG-emitting
24unit closure dates and include this information in the report.
25The report shall be released publicly by no later than
26December 15 of the year it is prepared. If the Environmental

 

 

SB3866 Enrolled- 95 -LRB102 24630 AMQ 33868 b

1Protection Agency, Illinois Power Agency, and Illinois
2Commerce Commission jointly conclude in the report that the
3data from the regional grid operators, the pace of renewable
4energy development, the pace of development of energy storage
5and demand response utilization, transmission capacity, and
6the CO2e and copollutant emissions reductions required by
7subsection (i) or (k-5) reasonably demonstrate that a resource
8adequacy shortfall will occur, including whether there will be
9sufficient in-state capacity to meet the zonal requirements of
10MISO Zone 4 or the PJM ComEd Zone, per the requirements of the
11regional transmission organizations, or that the regional
12transmission operators determine that a reliability violation
13will occur during the time frame the study is evaluating, then
14the Illinois Power Agency, in conjunction with the
15Environmental Protection Agency shall develop a plan to reduce
16or delay CO2e and copollutant emissions reductions
17requirements only to the extent and for the duration necessary
18to meet the resource adequacy and reliability needs of the
19State, including allowing any plants whose emission reduction
20deadline has been identified in the plan as creating a
21reliability concern to continue operating, including operating
22with reduced emissions or as emergency backup where
23appropriate. The plan shall also consider the use of renewable
24energy, energy storage, demand response, transmission
25development, or other strategies to resolve the identified
26resource adequacy shortfall or reliability violation.

 

 

SB3866 Enrolled- 96 -LRB102 24630 AMQ 33868 b

1        (1) In developing the plan, the Environmental
2    Protection Agency and the Illinois Power Agency shall hold
3    at least one workshop open to, and accessible at a time and
4    place convenient to, the public and shall consider any
5    comments made by stakeholders or the public. Upon
6    development of the plan, copies of the plan shall be
7    posted and made publicly available on the Environmental
8    Protection Agency's, the Illinois Power Agency's, and the
9    Illinois Commerce Commission's websites. All interested
10    parties shall have 60 days following the date of posting
11    to provide comment to the Environmental Protection Agency
12    and the Illinois Power Agency on the plan. All comments
13    submitted to the Environmental Protection Agency and the
14    Illinois Power Agency shall be encouraged to be specific,
15    supported by data or other detailed analyses, and, if
16    objecting to all or a portion of the plan, accompanied by
17    specific alternative wording or proposals. All comments
18    shall be posted on the Environmental Protection Agency's,
19    the Illinois Power Agency's, and the Illinois Commerce
20    Commission's websites. Within 30 days following the end of
21    the 60-day review period, the Environmental Protection
22    Agency and the Illinois Power Agency shall revise the plan
23    as necessary based on the comments received and file its
24    revised plan with the Illinois Commerce Commission for
25    approval.
26        (2) Within 60 days after the filing of the revised

 

 

SB3866 Enrolled- 97 -LRB102 24630 AMQ 33868 b

1    plan at the Illinois Commerce Commission, any person
2    objecting to the plan shall file an objection with the
3    Illinois Commerce Commission. Within 30 days after the
4    expiration of the comment period, the Illinois Commerce
5    Commission shall determine whether an evidentiary hearing
6    is necessary. The Illinois Commerce Commission shall also
7    host 3 public hearings within 90 days after the plan is
8    filed. Following the evidentiary and public hearings, the
9    Illinois Commerce Commission shall enter its order
10    approving or approving with modifications the reliability
11    mitigation plan within 180 days.
12        (3) The Illinois Commerce Commission shall only
13    approve the plan if the Illinois Commerce Commission
14    determines that it will resolve the resource adequacy or
15    reliability deficiency identified in the reliability
16    mitigation plan at the least amount of CO2e and copollutant
17    emissions, taking into consideration the emissions impacts
18    on environmental justice communities, and that it will
19    ensure adequate, reliable, affordable, efficient, and
20    environmentally sustainable electric service at the lowest
21    total cost over time, taking into account the impact of
22    increases in emissions.
23        (4) If the resource adequacy or reliability deficiency
24    identified in the reliability mitigation plan is resolved
25    or reduced, the Environmental Protection Agency and the
26    Illinois Power Agency may file an amended plan adjusting

 

 

SB3866 Enrolled- 98 -LRB102 24630 AMQ 33868 b

1    the reduction or delay in CO2e and copollutant emission
2    reduction requirements identified in the plan.
3(Source: P.A. 102-662, eff. 9-15-21.)
 
4
Article 99.

 
5    Section 99-99. Effective date. This Act takes effect upon
6becoming law.