Illinois General Assembly - Full Text of HB3391
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Full Text of HB3391  95th General Assembly

HB3391 95TH GENERAL ASSEMBLY


 


 
95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB3391

 

Introduced 2/26/2007, by Rep. Harry Osterman

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/16-102

    Amends the Public Utilities Act. Makes a technical change in a Section concerning definitions.


LRB095 08448 MJR 32261 b

 

 

A BILL FOR

 

HB3391 LRB095 08448 MJR 32261 b

1     AN ACT concerning regulation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Public Utilities Act is amended by changing
5 Sections 16-102 and 16-103 as follows:
 
6     (220 ILCS 5/16-102)
7     Sec. 16-102. Definitions. For the the purposes of this
8 Article the following terms shall be defined as set forth in
9 this Section.
10     "Alternative retail electric supplier" means every person,
11 cooperative, corporation, municipal corporation, company,
12 association, joint stock company or association, firm,
13 partnership, individual, or other entity, their lessees,
14 trustees, or receivers appointed by any court whatsoever, that
15 offers electric power or energy for sale, lease or in exchange
16 for other value received to one or more retail customers, or
17 that engages in the delivery or furnishing of electric power or
18 energy to such retail customers, and shall include, without
19 limitation, resellers, aggregators and power marketers, but
20 shall not include (i) electric utilities (or any agent of the
21 electric utility to the extent the electric utility provides
22 tariffed services to retail customers through that agent), (ii)
23 any electric cooperative or municipal system as defined in

 

 

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1 Section 17-100 to the extent that the electric cooperative or
2 municipal system is serving retail customers within any area in
3 which it is or would be entitled to provide service under the
4 law in effect immediately prior to the effective date of this
5 amendatory Act of 1997, (iii) a public utility that is owned
6 and operated by any public institution of higher education of
7 this State, or a public utility that is owned by such public
8 institution of higher education and operated by any of its
9 lessees or operating agents, within any area in which it is or
10 would be entitled to provide service under the law in effect
11 immediately prior to the effective date of this amendatory Act
12 of 1997, (iv) a retail customer to the extent that customer
13 obtains its electric power and energy from that customer's own
14 cogeneration or self-generation facilities, (v) an entity that
15 owns, operates, sells, or arranges for the installation of a
16 customer's own cogeneration or self-generation facilities, but
17 only to the extent the entity is engaged in owning, selling or
18 arranging for the installation of such facility, or operating
19 the facility on behalf of such customer, provided however that
20 any such third party owner or operator of a facility built
21 after January 1, 1999, complies with the labor provisions of
22 Section 16-128(a) as though such third party were an
23 alternative retail electric supplier, or (vi) an industrial or
24 manufacturing customer that owns its own distribution
25 facilities, to the extent that the customer provides service
26 from that distribution system to a third-party contractor

 

 

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1 located on the customer's premises that is integrally and
2 predominantly engaged in the customer's industrial or
3 manufacturing process; provided, that if the industrial or
4 manufacturing customer has elected delivery services, the
5 customer shall pay transition charges applicable to the
6 electric power and energy consumed by the third-party
7 contractor unless such charges are otherwise paid by the third
8 party contractor, which shall be calculated based on the usage
9 of, and the base rates or the contract rates applicable to, the
10 third-party contractor in accordance with Section 16-102.
11     "Base rates" means the rates for those tariffed services
12 that the electric utility is required to offer pursuant to
13 subsection (a) of Section 16-103 and that were identified in a
14 rate order for collection of the electric utility's base rate
15 revenue requirement, excluding (i) separate automatic rate
16 adjustment riders then in effect, (ii) special or negotiated
17 contract rates, (iii) delivery services tariffs filed pursuant
18 to Section 16-108, (iv) real-time pricing, or (v) tariffs that
19 were in effect prior to October 1, 1996 and that based charges
20 for services on an index or average of other utilities'
21 charges, but including (vi) any subsequent redesign of such
22 rates for tariffed services that is authorized by the
23 Commission after notice and hearing.
24     "Competitive service" includes (i) any service that has
25 been declared to be competitive pursuant to Section 16-113 of
26 this Act, (ii) contract service, and (iii) services, other than

 

 

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1 tariffed services, that are related to, but not necessary for,
2 the provision of electric power and energy or delivery
3 services.
4     "Contract service" means (1) services, including the
5 provision of electric power and energy or other services, that
6 are provided by mutual agreement between an electric utility
7 and a retail customer that is located in the electric utility's
8 service area, provided that, delivery services shall not be a
9 contract service until such services are declared competitive
10 pursuant to Section 16-113; and also means (2) the provision of
11 electric power and energy by an electric utility to retail
12 customers outside the electric utility's service area pursuant
13 to Section 16-116. Provided, however, contract service does not
14 include electric utility services provided pursuant to (i)
15 contracts that retail customers are required to execute as a
16 condition of receiving tariffed services, or (ii) special or
17 negotiated rate contracts for electric utility services that
18 were entered into between an electric utility and a retail
19 customer prior to the effective date of this amendatory Act of
20 1997 and filed with the Commission.
21     "Delivery services" means those services provided by the
22 electric utility that are necessary in order for the
23 transmission and distribution systems to function so that
24 retail customers located in the electric utility's service area
25 can receive electric power and energy from suppliers other than
26 the electric utility, and shall include, without limitation,

 

 

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1 standard metering and billing services.
2     "Electric utility" means a public utility, as defined in
3 Section 3-105 of this Act, that has a franchise, license,
4 permit or right to furnish or sell electricity to retail
5 customers within a service area.
6     "Mandatory transition period" means the period from the
7 effective date of this amendatory Act of 1997 through January
8 1, 2007.
9     "Municipal system" shall have the meaning set forth in
10 Section 17-100.
11     "Real-time pricing" means tariffed retail charges for
12 delivered electric power and energy that vary hour-to-hour and
13 are determined from wholesale market prices using a methodology
14 approved by the Illinois Commerce Commission.
15     "Retail customer" means a single entity using electric
16 power or energy at a single premises and that (A) either (i) is
17 receiving or is eligible to receive tariffed services from an
18 electric utility, or (ii) that is served by a municipal system
19 or electric cooperative within any area in which the municipal
20 system or electric cooperative is or would be entitled to
21 provide service under the law in effect immediately prior to
22 the effective date of this amendatory Act of 1997, or (B) an
23 entity which on the effective date of this Act was receiving
24 electric service from a public utility and (i) was engaged in
25 the practice of resale and redistribution of such electricity
26 within a building prior to January 2, 1957, or (ii) was

 

 

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1 providing lighting services to tenants in a multi-occupancy
2 building, but only to the extent such resale, redistribution or
3 lighting service is authorized by the electric utility's
4 tariffs that were on file with the Commission on the effective
5 date of this Act.
6     "Service area" means (i) the geographic area within which
7 an electric utility was lawfully entitled to provide electric
8 power and energy to retail customers as of the effective date
9 of this amendatory Act of 1997, and includes (ii) the location
10 of any retail customer to which the electric utility was
11 lawfully providing electric utility services on such effective
12 date.
13     "Small commercial retail customer" means those
14 nonresidential retail customers of an electric utility
15 consuming 15,000 kilowatt-hours or less of electricity
16 annually in its service area.
17     "Tariffed service" means services provided to retail
18 customers by an electric utility as defined by its rates on
19 file with the Commission pursuant to the provisions of Article
20 IX of this Act, but shall not include competitive services.
21     "Transition charge" means a charge expressed in cents per
22 kilowatt-hour that is calculated for a customer or class of
23 customers as follows for each year in which an electric utility
24 is entitled to recover transition charges as provided in
25 Section 16-108:
26         (1) the amount of revenue that an electric utility

 

 

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1     would receive from the retail customer or customers if it
2     were serving such customers' electric power and energy
3     requirements as a tariffed service based on (A) all of the
4     customers' actual usage during the 3 years ending 90 days
5     prior to the date on which such customers were first
6     eligible for delivery services pursuant to Section 16-104,
7     and (B) on (i) the base rates in effect on October 1, 1996
8     (adjusted for the reductions required by subsection (b) of
9     Section 16-111, for any reduction resulting from a rate
10     decrease under Section 16-101(b), for any restatement of
11     base rates made in conjunction with an elimination of the
12     fuel adjustment clause pursuant to subsection (b), (d), or
13     (f) of Section 9-220 and for any removal of decommissioning
14     costs from base rates pursuant to Section 16-114) and any
15     separate automatic rate adjustment riders (other than a
16     decommissioning rate as defined in Section 16-114) under
17     which the customers were receiving or, had they been
18     customers, would have received electric power and energy
19     from the electric utility during the year immediately
20     preceding the date on which such customers were first
21     eligible for delivery service pursuant to Section 16-104,
22     or (ii) to the extent applicable, any contract rates,
23     including contracts or rates for consolidated or
24     aggregated billing, under which such customers were
25     receiving electric power and energy from the electric
26     utility during such year;

 

 

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1         (2) less the amount of revenue, other than revenue from
2     transition charges and decommissioning rates, that the
3     electric utility would receive from such retail customers
4     for delivery services provided by the electric utility,
5     assuming such customers were taking delivery services for
6     all of their usage, based on the delivery services tariffs
7     in effect during the year for which the transition charge
8     is being calculated and on the usage identified in
9     paragraph (1);
10         (3) less the market value for the electric power and
11     energy that the electric utility would have used to supply
12     all of such customers' electric power and energy
13     requirements, as a tariffed service, based on the usage
14     identified in paragraph (1), with such market value
15     determined in accordance with Section 16-112 of this Act;
16         (4) less the following amount which represents the
17     amount to be attributed to new revenue sources and cost
18     reductions by the electric utility through the end of the
19     period for which transition costs are recovered pursuant to
20     Section 16-108, referred to in this Article XVI as a
21     "mitigation factor":
22             (A) for nonresidential retail customers, an amount
23         equal to the greater of (i) 0.5 cents per kilowatt-hour
24         during the period October 1, 1999 through December 31,
25         2004, 0.6 cents per kilowatt-hour in calendar year
26         2005, and 0.9 cents per kilowatt-hour in calendar year

 

 

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1         2006, multiplied in each year by the usage identified
2         in paragraph (1), or (ii) an amount equal to the
3         following percentages of the amount produced by
4         applying the applicable base rates (adjusted as
5         described in subparagraph (1)(B)) or contract rate to
6         the usage identified in paragraph (1): 8% for the
7         period October 1, 1999 through December 31, 2002, 10%
8         in calendar years 2003 and 2004, 11% in calendar year
9         2005 and 12% in calendar year 2006; and
10             (B) for residential retail customers, an amount
11         equal to the following percentages of the amount
12         produced by applying the base rates in effect on
13         October 1, 1996 (adjusted as described in subparagraph
14         (1)(B)) to the usage identified in paragraph (1): (i)
15         6% from May 1, 2002 through December 31, 2002, (ii) 7%
16         in calendar years 2003 and 2004, (iii) 8% in calendar
17         year 2005, and (iv) 10% in calendar year 2006;
18         (5) divided by the usage of such customers identified
19     in paragraph (1),
20 provided that the transition charge shall never be less than
21 zero.
22     "Unbundled service" means a component or constituent part
23 of a tariffed service which the electric utility subsequently
24 offers separately to its customers.
25 (Source: P.A. 94-977, eff. 6-30-06.)