SB0043 95TH GENERAL ASSEMBLY

LRB095 04640 MJR 24698 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0043

Introduced 1/31/2007, by Sen. Bill Brady

SYNOPSIS AS INTRODUCED:

20 ILCS 687/6-5
20 ILCS 687/6-7
220 ILCS 5/16-107.5 new

Amends the Public Utilities Act. Provides that an electric utility must establish a "net metering" pilot program for its retail customers that own and operate a solar or wind electrical generating facility with a capacity of not more than 40 kilowatts located on the customer's premises and intended to offset part of the customer's electrical requirements. Requires separate pilot programs for residential and business customers. Provides that an electric utility that has conducted a net electrical energy metering pilot program for either its residential or business customers, or both, that was initiated before the effective date of this amendatory Act need only file a report of the results of the program with the Illinois Commerce Commission. Provides that the electric utility must report the results of the pilot program to the Illinois Commerce Commission by July 1, 2008. Requires the Commission to provide a summary and an analysis of the reports to the General Assembly by September 1, 2008. Amends the Renewable Energy, Energy Efficiency, and Coal Resources Development Law of 1997. Provides that a utility may deduct an amount from collected receipts for expenses incurred to develop, maintain, and administer its net electricity metering pilot program. Extends the scheduled repeal date for the Renewable Energy, Energy Efficiency, and Coal Resources Development Law of 1997 from December 16, 2007 to December 31, 2008. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public utilities.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Renewable Energy, Energy Efficiency, and Coal Resources Development Law of 1997 is amended by changing Sections 6-5 and 6-7 as follows:

(20 ILCS 687/6-5)

(Section scheduled to be repealed on December 16, 2007)

Sec. 6-5. Renewable Energy Resources and Coal Technology Development Assistance Charge.

(a) Notwithstanding the provisions of Section 16-111 of the Public Utilities Act but subject to subsection (e) of this Section, each public utility, electric cooperative, as defined in Section 3.4 of the Electric Supplier Act, and municipal utility, as referenced in Section 3-105 of the Public Utilities Act, that is engaged in the delivery of electricity or the distribution of natural gas within the State of Illinois shall, effective January 1, 1998, assess each of its customer accounts a monthly Renewable Energy Resources and Coal Technology Development Assistance Charge. The delivering public utility, municipal electric or gas utility, or electric or gas cooperative for a self-assessing purchaser remains subject to the collection of the fee imposed by this Section. The monthly charge shall be as follows:

(1) $0.05 per month on each account for residential electric service as defined in Section 13 of the Energy Assistance Act;

(2) $0.05 per month on each account for residential gas service as defined in Section 13 of the Energy Assistance Act;

(3) $0.50 per month on each account for nonresidential electric service, as defined in Section 13 of the Energy Assistance Act, which had less than 10 megawatts of peak demand during the previous calendar year;

(4) $0.50 per month on each account for nonresidential gas service, as defined in Section 13 of the Energy Assistance Act, which had distributed to it less than 4,000,000 therms of gas during the previous calendar year;

(5) $37.50 per month on each account for nonresidential electric service, as defined in Section 13 of the Energy Assistance Act, which had 10 megawatts or greater of peak demand during the previous calendar year; and

(6) $37.50 per month on each account for nonresidential gas service, as defined in Section 13 of the Energy Assistance Act, which had 4,000,000 or more therms of gas distributed to it during the previous calendar year.

(b) The Renewable Energy Resources and Coal Technology Development Assistance Charge assessed by electric and gas public utilities shall be considered a charge for public utility service.

(c) Fifty percent of the moneys collected pursuant to this Section shall be deposited in the Renewable Energy Resources Trust Fund by the Department of Revenue. The remaining 50 percent of the moneys collected pursuant to this Section shall be deposited in the Coal Technology Development Assistance Fund by the Department of Revenue for use under the Illinois Coal Technology Development Assistance Act.

(d) By the 20th day of the month following the month in which the charges imposed by this Section were collected, each utility and alternative retail electric supplier collecting charges pursuant to this Section shall remit to the Department of Revenue for deposit in the Renewable Energy Resources Trust Fund and the Coal Technology Development Assistance Fund all moneys received, except as provided in this subsection, as payment of the charge provided for in this Section on a return prescribed and furnished by the Department of Revenue showing such information as the Department of Revenue may reasonably require. A utility may deduct an amount from collected receipts, not to exceed the amount designated for the Renewable Energy Resources Trust Fund, for expenses incurred to develop, maintain, and administer its net electricity metering pilot program required by Section 16-107.5 of the Public Utilities Act. Such expenses shall include the following, and are subject to Illinois Commerce Commission approval:

(1) expenses incurred to develop and submit a report of results of the pilot programs to the Illinois Commerce Commission;

(2) expenses incurred to install, maintain, and operate metering required to measure customer usage for the purposes of administering the pilot program;

(3) expenses incurred to perform an interconnection study and execute an interconnection agreement with customers in the pilot program;

(4) incremental expenses incurred to provide customers a bill (costs above those that are normally incurred to provide customers a bill in the absence of the pilot program);

(5) to the extent that any credit for energy generated that is paid to the customer exceeds the energy credit stated in utility's tariff filed in compliance with 83 Ill. Adm. Code 430.60, the utility shall be entitled to a credit on the difference between what is paid to the customer and what would have been paid using the utility tariff described above; and

(6) expenses incurred to develop, file, and gain approval of a net electricity metering pilot program from the Illinois Commerce Commission.

(e) The charges imposed by this Section shall only apply to customers of municipal electric or gas utilities and electric or gas cooperatives if the municipal electric or gas utility or electric or gas cooperative makes an affirmative decision to impose the charge. If a municipal electric or gas utility or an electric or gas cooperative makes an affirmative decision to impose the charge provided by this Section, the municipal electric or gas utility or electric or gas cooperative shall inform the Department of Revenue in writing of such decision when it begins to impose the charge. If a municipal electric or gas utility or electric or gas cooperative does not assess this charge, its customers shall not be eligible for the Renewable Energy Resources Program.

(f) The Department of Revenue may establish such rules as it deems necessary to implement this Section.

(Source: P.A. 92-690, eff. 7-18-02.)

(20 ILCS 687/6-7)

(Section scheduled to be repealed on December 16, 2007)

Sec. 6-7. Repeal. The provisions of this Law are repealed on December 31, 2008. 10 years after the effective date of this amendatory Act of 1997 unless renewed by act of the General Assembly.

(Source: P.A. 90-561, eff. 12-16-97.)

Section 10. The Public Utilities Act is amended by adding Section 16-107.5 as follows:

(220 ILCS 5/16-107.5 new)

Sec. 16-107.5. Net electricity metering pilot program.

(a) The Legislature finds and declares that a pilot program to provide net energy metering, as defined in this Section, for eligible customers can encourage private investment in renewable energy resources, stimulate economic growth, enhance the continued diversification of Illinois' energy resource mix, and protect the Illinois environment.

(b) As used in this Section, (i) "eligible customer" means a retail residential or business customer that owns and operates a solar or wind electrical generating facility with a capacity of not more than 40 kilowatts that is located on the customer's premises and is intended primarily to offset part or all of the customer's own electrical requirements and (ii) "net energy metering" means the measurement, during the billing period applicable to an eligible customer, of the net amount of electricity delivered by an electric utility to the customer's premises or provided to the electric utility by the customer.

(c) An electric utility shall establish a net electrical energy metering pilot program for its eligible customers. An electric utility shall establish separate pilot programs for its residential customers and its business customers. However, if an electric utility has conducted a net electrical energy metering pilot program for either its residential customers or its business customers, or both, and the pilot program was initiated before the effective date of this amendatory Act of the 95th General Assembly, the electric public utility need only file the report required under subsection (d).

(d) An electric utility shall report the results of its pilot programs to the Illinois Commerce Commission by July 1, 2008. The Commission shall provide a summary and an analysis of the reports to the General Assembly no later than September 1, 2008.

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