Full Text of HB3055 97th General Assembly
HB3055 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB3055 Introduced 2/23/2011, by Rep. Elaine Nekritz SYNOPSIS AS INTRODUCED: |
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Amends the Public Utilities Act. Makes certain changes to the incremental annual energy savings goals that electric utilities must meet by implementing cost-effective energy efficiency measures. Provides that the amount of energy efficiency and demand-response measures implemented for any single year shall be reduced by an amount necessary to limit the estimated average net increase due to the cost of these measures included in the amounts paid by eligible retail customers in connection with electric service to no more than the greater of 2.015% of the amount paid per kilowatthour by those customers during the year ending May 31, 2007 or the incremental amount per kilowatthour paid for these measures in 2011, unless the Commission concludes during a plan filing proceeding that the limitation would result in the utility foregoing cost-effective opportunities for savings that would otherwise create net aggregate bill reductions for its customers. Makes other changes. Effective immediately.
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| | A BILL FOR |
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| 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 | | Section 8-103 as follows:
| 6 | | (220 ILCS 5/8-103)
| 7 | | Sec. 8-103. Energy efficiency and demand-response | 8 | | measures. | 9 | | (a) It is the policy of the State that electric utilities | 10 | | are required to use cost-effective energy efficiency and | 11 | | demand-response measures to reduce delivery load. Requiring | 12 | | investment in cost-effective energy efficiency and | 13 | | demand-response measures will reduce direct and indirect costs | 14 | | to consumers by decreasing environmental impacts and by | 15 | | avoiding or delaying the need for new generation, transmission, | 16 | | and distribution infrastructure. It serves the public interest | 17 | | to allow electric utilities to recover costs for reasonably and | 18 | | prudently incurred expenses for energy efficiency and | 19 | | demand-response measures. As used in this Section, | 20 | | "cost-effective" means that the measures satisfy the total | 21 | | resource cost test. The low-income measures described in | 22 | | subsection (f)(4) of this Section shall not be required to meet | 23 | | the total resource cost test. For purposes of this Section, the |
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| 1 | | terms "energy-efficiency", "demand-response", "electric | 2 | | utility", and "total resource cost test" shall have the | 3 | | meanings set forth in the Illinois Power Agency Act. For | 4 | | purposes of this Section, the amount per kilowatthour means the | 5 | | total amount paid for electric service expressed on a per | 6 | | kilowatthour basis. For purposes of this Section, the total | 7 | | amount paid for electric service includes without limitation | 8 | | estimated amounts paid for supply, transmission, distribution, | 9 | | surcharges, and add-on-taxes. | 10 | | (b) Electric utilities shall implement cost-effective | 11 | | energy efficiency measures to meet the following incremental | 12 | | annual energy savings goals: | 13 | | (1) 0.2% of energy delivered in the year commencing | 14 | | June 1, 2008; | 15 | | (2) 0.4% of energy delivered in the year commencing | 16 | | June 1, 2009; | 17 | | (3) 0.6% of energy delivered in the year commencing | 18 | | June 1, 2010; | 19 | | (4) 0.8% of energy delivered in the year commencing | 20 | | June 1, 2011; | 21 | | (5) The higher of 1% of energy delivered in the year | 22 | | commencing June 1, 2012, or the amount necessary to produce | 23 | | net lifetime customer savings equal to the cost of any | 24 | | incremental capital investments made during the calendar | 25 | | year 2011 1% of energy delivered in the year commencing | 26 | | June 1, 2012 ; |
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| 1 | | (6) The higher of 1.4% of energy delivered in the year | 2 | | commencing June 1, 2013, or the amount necessary to produce | 3 | | net lifetime customer savings equal to the cost of any | 4 | | incremental capital investments made during calendar year | 5 | | 2012 1.4% of energy delivered in the year commencing June | 6 | | 1, 2013 ; | 7 | | (7) The higher of 1.8% of energy delivered in the year | 8 | | commencing June 1, 2014, or the amount necessary to produce | 9 | | net lifetime customer savings equal to the cost of any | 10 | | incremental capital investment made during calendar year | 11 | | 2013 1.8% of energy delivered in the year commencing June | 12 | | 1, 2014 ; and | 13 | | (8) In each year hereafter, the higher of 2% of energy | 14 | | delivered in the year commencing June 1, 2015, or the | 15 | | amount necessary to produce net lifetime customer savings | 16 | | equal to the cost of any incremental capital investment | 17 | | made during the preceding calendar year 2% of energy | 18 | | delivered in the year commencing June 1, 2015 and each year | 19 | | thereafter . | 20 | | For purposes of this subsection (b), "incremental capital | 21 | | investments" means those investments that exceed the utility's | 22 | | capital spend in calendar years 2008, 2009, and 2010 as | 23 | | reported in the applicable Federal Energy Regulatory | 24 | | Commission Form 2, or if the FERC Form 2 was not filed, in the | 25 | | applicable Form 21 ILCC. | 26 | | (c) Electric utilities shall implement cost-effective |
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| 1 | | demand-response measures to reduce peak demand by 0.1% over the | 2 | | prior year for eligible retail customers, as defined in Section | 3 | | 16-111.5 of this Act, and for customers that elect hourly | 4 | | service from the utility pursuant to Section 16-107 of this | 5 | | Act, provided those customers have not been declared | 6 | | competitive. This requirement commences June 1, 2008 and | 7 | | continues for 10 years. | 8 | | (d) Notwithstanding the requirements of subsections (b) | 9 | | and (c) of this Section, an electric utility shall reduce the | 10 | | amount of energy efficiency and demand-response measures | 11 | | implemented in any single year by an amount necessary to limit | 12 | | the estimated average increase in the amounts paid by retail | 13 | | customers in connection with electric service due to the cost | 14 | | of those measures to: | 15 | | (1) in 2008, no more than 0.5% of the amount paid per | 16 | | kilowatthour by those customers during the year ending May | 17 | | 31, 2007; | 18 | | (2) in 2009, the greater of an additional 0.5% of the | 19 | | amount paid per kilowatthour by those customers during the | 20 | | year ending May 31, 2008 or 1% of the amount paid per | 21 | | kilowatthour by those customers during the year ending May | 22 | | 31, 2007; | 23 | | (3) in 2010, the greater of an additional 0.5% of the | 24 | | amount paid per kilowatthour by those customers during the | 25 | | year ending May 31, 2009 or 1.5% of the amount paid per | 26 | | kilowatthour by those customers during the year ending May |
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| 1 | | 31, 2007; | 2 | | (4) in 2011, the greater of an additional 0.5% of the | 3 | | amount paid per kilowatthour by those customers during the | 4 | | year ending May 31, 2010 or 2% of the amount paid per | 5 | | kilowatthour by those customers during the year ending May | 6 | | 31, 2007; and
| 7 | | (5) thereafter, the amount of energy efficiency and | 8 | | demand-response measures implemented for any single year | 9 | | shall be reduced by an amount necessary to limit the | 10 | | estimated average net increase due to the cost of these | 11 | | measures included in the amounts paid by eligible retail | 12 | | customers in connection with electric service to no more | 13 | | than the greater of 2.015% of the amount paid per | 14 | | kilowatthour by those customers during the year ending May | 15 | | 31, 2007 or the incremental amount per kilowatthour paid | 16 | | for these measures in 2011 , unless the Commission concludes | 17 | | during a plan filing proceeding under subsection (f) of | 18 | | this Section that the limitation would result in the | 19 | | utility foregoing cost-effective opportunities for savings | 20 | | that would otherwise create net aggregate bill reductions | 21 | | for its customers .
| 22 | | No later than June 30, 2011, the Commission shall review | 23 | | the limitation on the amount of energy efficiency and | 24 | | demand-response measures implemented pursuant to this Section | 25 | | and report to the General Assembly its findings as to whether | 26 | | that limitation unduly constrains the procurement of energy |
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| 1 | | efficiency and demand-response measures. | 2 | | (e) Electric utilities shall be responsible for overseeing | 3 | | the design, development, and filing of energy efficiency and | 4 | | demand-response plans with the Commission. Electric utilities | 5 | | shall implement 100% of the demand-response measures in the | 6 | | plans. Electric utilities shall implement 75% of the energy | 7 | | efficiency measures approved by the Commission, and may, as | 8 | | part of that implementation, outsource various aspects of | 9 | | program development and implementation. The remaining 25% of | 10 | | those energy efficiency measures approved by the Commission | 11 | | shall be implemented by the Department of Commerce and Economic | 12 | | Opportunity, and must be designed in conjunction with the | 13 | | utility and the filing process. The Department may outsource | 14 | | development and implementation of energy efficiency measures. | 15 | | A minimum of 10% of the entire portfolio of cost-effective | 16 | | energy efficiency measures shall be procured from units of | 17 | | local government, municipal corporations, school districts, | 18 | | and community college districts. The Department shall | 19 | | coordinate the implementation of these measures. | 20 | | The apportionment of the dollars to cover the costs to | 21 | | implement the Department's share of the portfolio of energy | 22 | | efficiency measures shall be made to the Department once the | 23 | | Department has executed grants or contracts for energy | 24 | | efficiency measures and provided supporting documentation for | 25 | | those grants and the contracts to the utility. | 26 | | The details of the measures implemented by the Department |
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| 1 | | shall be submitted by the Department to the Commission in | 2 | | connection with the utility's filing regarding the energy | 3 | | efficiency and demand-response measures that the utility | 4 | | implements. | 5 | | A utility providing approved energy efficiency and | 6 | | demand-response measures in the State shall be permitted to | 7 | | recover costs of those measures through an automatic adjustment | 8 | | clause tariff filed with and approved by the Commission. The | 9 | | tariff shall be established outside the context of a general | 10 | | rate case. Each year the Commission shall initiate a review to | 11 | | reconcile any amounts collected with the actual costs and to | 12 | | determine the required adjustment to the annual tariff factor | 13 | | to match annual expenditures. | 14 | | Each utility shall include, in its recovery of costs, the | 15 | | costs estimated for both the utility's and the Department's | 16 | | implementation of energy efficiency and demand-response | 17 | | measures. Costs collected by the utility for measures | 18 | | implemented by the Department shall be submitted to the | 19 | | Department pursuant to Section 605-323 of the Civil | 20 | | Administrative Code of Illinois and shall be used by the | 21 | | Department solely for the purpose of implementing these | 22 | | measures. A utility shall not be required to advance any moneys | 23 | | to the Department but only to forward such funds as it has | 24 | | collected. The Department shall report to the Commission on an | 25 | | annual basis regarding the costs actually incurred by the | 26 | | Department in the implementation of the measures. Any changes |
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| 1 | | to the costs of energy efficiency measures as a result of plan | 2 | | modifications shall be appropriately reflected in amounts | 3 | | recovered by the utility and turned over to the Department. | 4 | | The portfolio of measures, administered by both the | 5 | | utilities and the Department, shall, in combination, be | 6 | | designed to achieve the annual savings targets described in | 7 | | subsections (b) and (c) of this Section, as modified by | 8 | | subsection (d) of this Section. | 9 | | The utility and the Department shall agree upon a | 10 | | reasonable portfolio of measures and determine the measurable | 11 | | corresponding percentage of the savings goals associated with | 12 | | measures implemented by the utility or Department. | 13 | | No utility shall be assessed a penalty under subsection (f) | 14 | | of this Section for failure to make a timely filing if that | 15 | | failure is the result of a lack of agreement with the | 16 | | Department with respect to the allocation of responsibilities | 17 | | or related costs or target assignments. In that case, the | 18 | | Department and the utility shall file their respective plans | 19 | | with the Commission and the Commission shall determine an | 20 | | appropriate division of measures and programs that meets the | 21 | | requirements of this Section. | 22 | | If the Department is unable to meet incremental annual | 23 | | performance goals for the portion of the portfolio implemented | 24 | | by the Department, then the utility and the Department shall | 25 | | jointly submit a modified filing to the Commission explaining | 26 | | the performance shortfall and recommending an appropriate |
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| 1 | | course going forward, including any program modifications that | 2 | | may be appropriate in light of the evaluations conducted under | 3 | | item (7) of subsection (f) of this Section. In this case, the | 4 | | utility obligation to collect the Department's costs and turn | 5 | | over those funds to the Department under this subsection (e) | 6 | | shall continue only if the Commission approves the | 7 | | modifications to the plan proposed by the Department. | 8 | | (f) No later than November 15, 2007, each electric utility | 9 | | shall file an energy efficiency and demand-response plan with | 10 | | the Commission to meet the energy efficiency and | 11 | | demand-response standards for 2008 through 2010. Every 3 years | 12 | | thereafter, each electric utility shall file, no later than | 13 | | October 1, an energy efficiency and demand-response plan with | 14 | | the Commission. If a utility does not file such a plan by | 15 | | October 1 of an applicable year, it shall face a penalty of | 16 | | $100,000 per day until the plan is filed. Each utility's plan | 17 | | shall set forth the utility's proposals to meet the utility's | 18 | | portion of the energy efficiency standards identified in | 19 | | subsection (b) and the demand-response standards identified in | 20 | | subsection (c) of this Section as modified by subsections (d) | 21 | | and (e), taking into account the unique circumstances of the | 22 | | utility's service territory. The Commission shall seek public | 23 | | comment on the utility's plan and shall issue an order | 24 | | approving or disapproving each plan within 3 months after its | 25 | | submission. If the Commission disapproves a plan, the | 26 | | Commission shall, within 30 days, describe in detail the |
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| 1 | | reasons for the disapproval and describe a path by which the | 2 | | utility may file a revised draft of the plan to address the | 3 | | Commission's concerns satisfactorily. If the utility does not | 4 | | refile with the Commission within 60 days, the utility shall be | 5 | | subject to penalties at a rate of $100,000 per day until the | 6 | | plan is filed. This process shall continue, and penalties shall | 7 | | accrue, until the utility has successfully filed a portfolio of | 8 | | energy efficiency and demand-response measures. Penalties | 9 | | shall be deposited into the Energy Efficiency Trust Fund. In | 10 | | submitting proposed energy efficiency and demand-response | 11 | | plans and funding levels to meet the savings goals adopted by | 12 | | this Act the utility shall: | 13 | | (1) Demonstrate that its proposed energy efficiency | 14 | | and demand-response measures will achieve the requirements | 15 | | that are identified in subsections (b) and (c) of this | 16 | | Section, as modified by subsections (d) and (e). | 17 | | (2) Present specific proposals to implement new | 18 | | building and appliance standards that have been placed into | 19 | | effect. | 20 | | (3) Present estimates of the total amount paid for | 21 | | electric service expressed on a per kilowatthour basis | 22 | | associated with the proposed portfolio of measures | 23 | | designed to meet the requirements that are identified in | 24 | | subsections (b) and (c) of this Section, as modified by | 25 | | subsections (d) and (e). | 26 | | (4) Coordinate with the Department to present a |
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| 1 | | portfolio of energy efficiency measures proportionate to | 2 | | the share of total annual utility revenues in Illinois from | 3 | | households at or below 150% of the poverty level. The | 4 | | energy efficiency programs shall be targeted to households | 5 | | with incomes at or below 80% of area median income. | 6 | | (5) Demonstrate that its overall portfolio of energy | 7 | | efficiency and demand-response measures, not including | 8 | | programs covered by item (4) of this subsection (f), are | 9 | | cost-effective using the total resource cost test and | 10 | | represent a diverse cross-section of opportunities for | 11 | | customers of all rate classes to participate in the | 12 | | programs. | 13 | | (6) Include a proposed cost-recovery tariff mechanism | 14 | | to fund the proposed energy efficiency and demand-response | 15 | | measures and to ensure the recovery of the prudently and | 16 | | reasonably incurred costs of Commission-approved programs. | 17 | | (7) Provide for an annual independent evaluation of the | 18 | | performance of the cost-effectiveness of the utility's | 19 | | portfolio of measures and the Department's portfolio of | 20 | | measures, as well as a full review of the 3-year results of | 21 | | the broader net program impacts and, to the extent | 22 | | practical, for adjustment of the measures on a | 23 | | going-forward basis as a result of the evaluations. The | 24 | | resources dedicated to evaluation shall not exceed 3% of | 25 | | portfolio resources in any given year. | 26 | | (g) No more than 3% of energy efficiency and |
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| 1 | | demand-response program revenue may be allocated for | 2 | | demonstration of breakthrough equipment and devices. | 3 | | (h) This Section does not apply to an electric utility that | 4 | | on December 31, 2005 provided electric service to fewer than | 5 | | 100,000 customers in Illinois. | 6 | | (i) If, after 2 years, an electric utility fails to meet | 7 | | the efficiency standard specified in subsection (b) of this | 8 | | Section, as modified by subsections (d) and (e), it shall make | 9 | | a contribution to the Low-Income Home Energy Assistance | 10 | | Program. The combined total liability for failure to meet the | 11 | | goal shall be $1,000,000, which shall be assessed as follows: a | 12 | | large electric utility shall pay $665,000, and a medium | 13 | | electric utility shall pay $335,000. If, after 3 years, an | 14 | | electric utility fails to meet the efficiency standard | 15 | | specified in subsection (b) of this Section, as modified by | 16 | | subsections (d) and (e), it shall make a contribution to the | 17 | | Low-Income Home Energy Assistance Program. The combined total | 18 | | liability for failure to meet the goal shall be $1,000,000, | 19 | | which shall be assessed as follows: a large electric utility | 20 | | shall pay $665,000, and a medium electric utility shall pay | 21 | | $335,000. In addition, the responsibility for implementing the | 22 | | energy efficiency measures of the utility making the payment | 23 | | shall be transferred to the Illinois Power Agency if, after 3 | 24 | | years, or in any subsequent 3-year period, the utility fails to | 25 | | meet the efficiency standard specified in subsection (b) of | 26 | | this Section, as modified by subsections (d) and (e). The |
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| 1 | | Agency shall implement a competitive procurement program to | 2 | | procure resources necessary to meet the standards specified in | 3 | | this Section as modified by subsections (d) and (e), with costs | 4 | | for those resources to be recovered in the same manner as | 5 | | products purchased through the procurement plan as provided in | 6 | | Section 16-111.5. The Director shall implement this | 7 | | requirement in connection with the procurement plan as provided | 8 | | in Section 16-111.5. | 9 | | For purposes of this Section, (i) a "large electric | 10 | | utility" is an electric utility that, on December 31, 2005, | 11 | | served more than 2,000,000 electric customers in Illinois; (ii) | 12 | | a "medium electric utility" is an electric utility that, on | 13 | | December 31, 2005, served 2,000,000 or fewer but more than | 14 | | 100,000 electric customers in Illinois; and (iii) Illinois | 15 | | electric utilities that are affiliated by virtue of a common | 16 | | parent company are considered a single electric utility. | 17 | | (j) If, after 3 years, or any subsequent 3-year period, the | 18 | | Department fails to implement the Department's share of energy | 19 | | efficiency measures required by the standards in subsection | 20 | | (b), then the Illinois Power Agency may assume responsibility | 21 | | for and control of the Department's share of the required | 22 | | energy efficiency measures. The Agency shall implement a | 23 | | competitive procurement program to procure resources necessary | 24 | | to meet the standards specified in this Section, with the costs | 25 | | of these resources to be recovered in the same manner as | 26 | | provided for the Department in this Section.
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| 1 | | (k) No electric utility shall be deemed to have failed to | 2 | | meet the energy efficiency standards to the extent any such | 3 | | failure is due to a failure of the Department or the Agency.
| 4 | | (Source: P.A. 95-481, eff. 8-28-07; 95-876, eff. 8-21-08; | 5 | | 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; 96-1000, eff. | 6 | | 7-2-10.)
| 7 | | Section 99. Effective date. This Act takes effect upon | 8 | | becoming law.
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