Full Text of HB0607 94th General Assembly
HB0607eng 94TH GENERAL ASSEMBLY
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Public Utilities Act is amended by changing | 5 |
| Sections 16-102, 16-111, and 16-113 as follows:
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| (220 ILCS 5/16-102)
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| Sec. 16-102. Definitions. For the purposes of this
Article | 8 |
| the following terms shall be defined as set forth in
this | 9 |
| Section.
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| "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,
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| trustees, or receivers appointed by any court whatsoever, that
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| offers electric power or energy for sale, lease or in exchange
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| for other value received to one or more retail customers, or
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| that engages in the delivery or furnishing of electric power
or | 18 |
| energy to such retail customers, and shall include, without
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| limitation, resellers, aggregators and power marketers, but
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| shall not include (i) electric utilities (or any agent of the
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| electric utility to the extent the electric utility provides
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| tariffed services to retail customers through that agent),
(ii) | 23 |
| any electric cooperative or municipal system as defined
in | 24 |
| Section 17-100 to the extent that the electric cooperative
or | 25 |
| municipal system is serving retail customers within any
area in | 26 |
| which it is or would be entitled to provide service
under the | 27 |
| law in effect immediately prior to the effective
date of this | 28 |
| amendatory Act of 1997, (iii) a public utility
that is owned | 29 |
| and operated by any public institution of higher
education of | 30 |
| this State, or a public utility that is owned by
such public | 31 |
| institution of higher education and operated by
any of its | 32 |
| lessees or operating agents, within any area in
which it is or |
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| would be entitled to provide service under the
law in effect | 2 |
| immediately prior to the effective date of this
amendatory Act | 3 |
| of 1997, (iv) a retail customer to the extent
that customer | 4 |
| obtains its electric power and energy from that customer's
own | 5 |
| cogeneration or self-generation facilities, (v) an
entity that | 6 |
| owns, operates, sells, or arranges for the installation of
a | 7 |
| customer's own cogeneration or self-generation facilities, but | 8 |
| only to
the extent the entity is engaged in
owning,
selling or | 9 |
| arranging for the installation of such facility,
or operating | 10 |
| the facility
on behalf of such customer, provided however that | 11 |
| any such
third party owner or operator of a facility built | 12 |
| after
January 1, 1999, complies with the labor provisions of | 13 |
| Section 16-128(a) as
though
such third party were an | 14 |
| alternative retail
electric supplier,
or (vi) an industrial or
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| manufacturing customer that owns
its own
distribution | 16 |
| facilities, to the extent that the customer provides service | 17 |
| from
that distribution system to a third-party contractor | 18 |
| located on the customer's
premises that is integrally and | 19 |
| predominantly engaged in the customer's
industrial or
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| manufacturing process; provided, that if the industrial or | 21 |
| manufacturing
customer has elected delivery services, the | 22 |
| customer shall pay transition
charges applicable to the | 23 |
| electric power and energy consumed by the third-party
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| contractor unless such charges are otherwise paid by the third | 25 |
| party
contractor, which shall be calculated based on the usage | 26 |
| of, and the base rates
or the contract rates applicable to, the | 27 |
| third-party contractor in accordance
with Section 16-102.
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| "Base rates" means the rates for those tariffed services | 29 |
| that the electric
utility is required to offer pursuant to | 30 |
| subsection (a) of Section 16-103 and
that were identified in a | 31 |
| rate order for collection of the electric
utility's base rate | 32 |
| revenue requirement, excluding (i) separate automatic
rate | 33 |
| adjustment riders then in effect, (ii) special or negotiated | 34 |
| contract
rates, (iii) delivery services tariffs filed pursuant | 35 |
| to Section 16-108, (iv)
real-time pricing, or (v) tariffs that | 36 |
| were in effect prior to October 1, 1996
and that based charges |
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| for services on an index or average of other utilities'
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| charges, but including (vi) any subsequent redesign of such | 3 |
| rates for
tariffed
services that is authorized by the | 4 |
| Commission after notice and hearing.
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| "Competitive service" includes (i) any service that
has | 6 |
| been declared to be competitive pursuant to Section
16-113 of | 7 |
| this Act, (ii) contract service, and (iii) services,
other than | 8 |
| tariffed services, that are related to, but not
necessary for, | 9 |
| the provision of electric power and energy or delivery | 10 |
| services.
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| "Contract service" means (1) services, including the
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| provision of electric power and energy or other services, that
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| are provided by mutual agreement between an electric utility
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| and a retail customer that is located in the electric
utility's | 15 |
| service area, provided that, delivery services shall
not be a | 16 |
| contract service until such services are declared
competitive | 17 |
| pursuant to Section 16-113; and also means (2) the
provision of | 18 |
| electric power and energy by an electric utility
to retail | 19 |
| customers outside the electric utility's service
area pursuant | 20 |
| to Section 16-116. Provided, however, contract
service does not | 21 |
| include electric utility services provided
pursuant to (i) | 22 |
| contracts that retail customers are required
to execute as a | 23 |
| condition of receiving tariffed services, or
(ii) special or | 24 |
| negotiated rate contracts for electric utility
services that | 25 |
| were entered into between an electric utility
and a retail | 26 |
| customer prior to the effective date of this
amendatory Act of | 27 |
| 1997 and filed with the Commission.
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| "Delivery services" means those services provided by the
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| electric utility that are necessary in order for the
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| transmission and distribution systems to function so that
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| retail customers located in the electric utility's service
area | 32 |
| can receive electric power and energy from suppliers
other than | 33 |
| the electric utility, and shall include, without
limitation, | 34 |
| standard metering and billing services.
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| "Electric utility" means a public utility, as defined in
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| Section 3-105 of this Act, that has a franchise, license,
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| permit or right to furnish or sell electricity to retail
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| customers within a service area.
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| "Mandatory transition period" means the period from the
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| effective date of this amendatory Act of 1997 through the date | 5 |
| on which the Commission has approved declarations of | 6 |
| competitive service, pursuant to Section 16-113, for all | 7 |
| classes of service offered in the service areas of all electric | 8 |
| utilities that, on December 31, 2005, served at least 100,000 | 9 |
| customers
January
1, 2007 .
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| "Municipal system" shall have the meaning set forth in
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| Section 17-100.
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| "Real-time pricing" means tariffed retail charges for | 13 |
| delivered electric
power and energy that vary
hour-to-hour and | 14 |
| are determined from wholesale market prices using a methodology | 15 |
| approved by the Illinois Commerce Commission.
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| "Retail customer" means a single entity using electric
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| power or energy at a single premises and that (A) either (i)
is | 18 |
| receiving or is eligible to receive tariffed services from
an | 19 |
| electric utility, or (ii) that is served by a municipal system | 20 |
| or electric
cooperative within any area in which the
municipal | 21 |
| system or electric cooperative is or would be
entitled to | 22 |
| provide service under the law in effect
immediately prior to | 23 |
| the effective date of this amendatory Act
of 1997, or (B) an | 24 |
| entity which on the effective date of this
Act was receiving | 25 |
| electric service from a public utility and
(i) was engaged in | 26 |
| the practice of resale and redistribution
of such electricity | 27 |
| within a building prior to January 2,
1957, or (ii) was | 28 |
| providing lighting services to tenants in a
multi-occupancy | 29 |
| building, but only to the extent such resale,
redistribution or | 30 |
| lighting service is authorized by the
electric utility's | 31 |
| tariffs that were on file with the
Commission on the effective | 32 |
| date of this Act.
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| "Service area" means (i) the geographic area within which
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| an electric utility was lawfully entitled to provide electric
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| power and energy to retail customers as of the effective date
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| of this amendatory Act of 1997, and includes (ii) the location
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| of any retail customer to which the electric utility was
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| lawfully providing electric utility services on such effective
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| date.
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| "Small commercial retail customer" means those
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| nonresidential retail customers of an electric utility
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| consuming 15,000 kilowatt-hours or less of electricity
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| annually in its service area.
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| "Tariffed service" means services provided to retail
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| customers by an electric utility as defined by its rates on
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| file with the Commission pursuant to the provisions of Article
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| IX of this Act, but shall not include competitive services.
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| "Transition charge" means a charge expressed in cents
per | 13 |
| kilowatt-hour that is calculated for a customer or class
of | 14 |
| customers as follows for each year in which an electric
utility | 15 |
| is entitled to recover transition charges as provided
in | 16 |
| Section 16-108:
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| (1) the amount of revenue that an electric utility
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| would receive from the retail customer or customers if it
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| were serving such customers' electric power and energy
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| requirements as a tariffed service based on (A) all of
the | 21 |
| customers' actual usage during the 3 years
ending 90 days | 22 |
| prior to the date on which such customers
were first | 23 |
| eligible for delivery services pursuant to
Section 16-104, | 24 |
| and (B) on (i) the base rates in effect
on October 1, 1996 | 25 |
| (adjusted for the reductions required
by subsection (b) of | 26 |
| Section 16-111, for any reduction resulting from a rate
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| decrease under Section 16-101(b), for any restatement of | 28 |
| base rates made in
conjunction with an elimination
of the | 29 |
| fuel adjustment clause pursuant to subsection (b), (d), or | 30 |
| (f) of
Section
9-220
and for any removal of decommissioning | 31 |
| costs from base
rates pursuant to Section 16-114)
and any | 32 |
| separate automatic rate adjustment riders (other
than a | 33 |
| decommissioning rate as defined in Section 16-114)
under | 34 |
| which the customers were receiving or, had they
been | 35 |
| customers, would have received electric power and
energy | 36 |
| from the electric utility during the year
immediately |
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| preceding the date on which such customers
were first | 2 |
| eligible for delivery service pursuant to
Section 16-104, | 3 |
| or (ii) to the extent applicable, any
contract rates, | 4 |
| including contracts or rates for consolidated or
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| aggregated billing, under which such customers were
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| receiving electric power and energy from the electric
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| utility during such year;
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| (2) less the amount of revenue, other than revenue
from | 9 |
| transition charges and decommissioning rates, that the | 10 |
| electric utility
would
receive from such retail customers | 11 |
| for delivery services
provided by the electric utility, | 12 |
| assuming such customers
were taking delivery services for | 13 |
| all of their usage,
based on the delivery services tariffs | 14 |
| in effect during
the year for which the transition charge | 15 |
| is being
calculated and on the usage identified in | 16 |
| paragraph (1);
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| (3) less the market value for the electric power
and | 18 |
| energy that the electric utility would have used to
supply | 19 |
| all of such customers' electric power and energy
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| requirements, as a tariffed service, based on the usage
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| identified in paragraph (1), with such market value
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| determined in accordance with Section 16-112 of this Act;
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| (4) less the following amount which represents the
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| amount to be attributed to new revenue sources and cost
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| reductions by the electric utility through the end of the
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| period for which transition costs are recovered pursuant
to | 27 |
| Section 16-108, referred to in this Article XVI as a | 28 |
| "mitigation factor":
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| (A) for nonresidential retail customers, an amount | 30 |
| equal to the greater
of (i) 0.5 cents per kilowatt-hour | 31 |
| during the period October 1, 1999
through December 31, | 32 |
| 2004, 0.6 cents per kilowatt-hour in calendar year | 33 |
| 2005,
and 0.9 cents per kilowatt-hour in calendar year | 34 |
| 2006, multiplied in
each year by the usage identified | 35 |
| in paragraph (1), or (ii) an amount equal to
the | 36 |
| following percentages of the amount produced by |
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| applying the applicable
base rates (adjusted as | 2 |
| described in subparagraph (1)(B)) or contract rate to
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| the usage identified in paragraph (1): 8% for the | 4 |
| period October 1, 1999
through December 31, 2002, 10% | 5 |
| in calendar years 2003 and 2004, 11% in calendar
year | 6 |
| 2005 and 12% in calendar year 2006;
and
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| (B) for residential retail customers, an amount
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| equal to the following percentages of the amount | 9 |
| produced by applying the
base rates in effect on | 10 |
| October 1, 1996 (adjusted as
described in subparagraph | 11 |
| (1)(B)) to the usage
identified in paragraph (1): (i) | 12 |
| 6% from May 1, 2002 through December 31,
2002, (ii) 7% | 13 |
| in calendar years 2003 and 2004, (iii) 8% in calendar | 14 |
| year
2005, and (iv) 10% in calendar year 2006;
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| (5) divided by the usage of such customers
identified | 16 |
| in paragraph (1),
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| provided that the transition charge shall never be less than
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| zero.
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| "Unbundled service" means a component or constituent part
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| of a tariffed service which the electric utility subsequently
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| offers separately to its customers.
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| (Source: P.A. 94-977, eff. 6-30-06.)
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| (220 ILCS 5/16-111)
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| Sec. 16-111. Rates and restructuring transactions during
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| mandatory transition period.
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| (a) During the mandatory transition period,
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| notwithstanding any provision of Article IX of this Act, and
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| except as provided in subsections (b), (d), (e), and (f)
of | 29 |
| this Section, the Commission shall not , prior to 2010, (i) | 30 |
| initiate,
authorize or order any change by way of increase | 31 |
| (other than in connection with
a request for rate increase | 32 |
| which was filed after September 1, 1997 but prior
to October | 33 |
| 15, 1997, by an electric utility serving less than 12,500 | 34 |
| customers
in this State) or (ii) , (ii)
initiate or, unless | 35 |
| requested by the electric utility,
authorize or order any |
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| change by way of decrease,
restructuring or unbundling (except | 2 |
| as provided in Section 16-109A), in the
rates of any electric
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| utility that were in effect on October 1, 1996, or (iii) in any | 4 |
| order approving
any application for a merger pursuant to | 5 |
| Section 7-204 that was pending as of
May 16, 1997, impose any | 6 |
| condition requiring any filing for an increase,
decrease, or | 7 |
| change in, or other review of, an electric utility's rates or
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| enforce any such condition of any such order;
provided,
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| however, that this subsection shall not prohibit the
Commission | 10 |
| from:
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| (1) (blank);
approving the application of an electric | 12 |
| utility
to implement an alternative to rate of return | 13 |
| regulation
or a regulatory mechanism that rewards or | 14 |
| penalizes the
electric utility through adjustment of rates | 15 |
| based on
utility performance, pursuant to Section 9-244;
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| (2) authorizing an electric utility to eliminate its
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| fuel adjustment clause and adjust its base rate tariffs
in | 18 |
| accordance with subsection (b), (d), or (f) of Section
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| 9-220 of this Act, to fix its fuel adjustment factor in
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| accordance with subsection (c) of Section 9-220 of this
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| Act, or to eliminate its fuel adjustment clause in | 22 |
| accordance with subsection
(e) of Section 9-220 of this | 23 |
| Act;
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| (3) ordering into effect tariffs for delivery
services | 25 |
| and transition charges in accordance with
Sections 16-104 | 26 |
| and 16-108, for real-time pricing in
accordance with | 27 |
| Section 16-107, or the options required
by Section 16-110 | 28 |
| and subsection (n) of 16-112,
allowing a billing experiment | 29 |
| in accordance with
Section 16-106, or modifying delivery | 30 |
| services tariffs in accordance with
Section 16-109; or
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| (4) ordering or allowing into effect any tariff to
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| recover charges pursuant to Sections 9-201.5, 9-220.1,
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| 9-221, 9-222 (except as provided in Section 9-222.1), | 34 |
| 16-108, and 16-114 of
this
Act, Section 5-5 of the | 35 |
| Electricity Infrastructure Maintenance Fee Law, Section
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| 6-5 of the Renewable Energy, Energy Efficiency, and Coal |
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| Resources Development
Law of 1997, and Section 13 of the | 2 |
| Energy Assistance Act.
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| After December 31, 2004, the provisions of this subsection | 4 |
| (a) shall not
apply to an electric utility whose average | 5 |
| residential retail rate was less
than or equal to 90% of the | 6 |
| average residential retail rate for the "Midwest
Utilities", as | 7 |
| that term is defined in subsection (b) of this Section, based | 8 |
| on
data reported on Form 1 to the Federal Energy Regulatory | 9 |
| Commission for
calendar year 1995, and which served between | 10 |
| 150,000 and 250,000 retail
customers in this State on January | 11 |
| 1, 1995
unless the electric utility or its holding company has | 12 |
| been acquired by or
merged with an affiliate of another | 13 |
| electric utility subsequent to January 1,
2002. This exemption | 14 |
| shall be limited to
this subsection (a) and shall not extend to | 15 |
| any other provisions of this Act.
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| (a-5) During the remainder of the mandatory transition | 17 |
| period, if any, the Commission may modify rates in accordance | 18 |
| with Article IX of this Act.
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| (b) Notwithstanding the provisions of subsection (a), each | 20 |
| Illinois electric
utility serving more than 12,500 customers in | 21 |
| Illinois shall file tariffs (i)
reducing, effective August 1, | 22 |
| 1998, each component of its base rates to
residential retail
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| customers by 15% from the base rates in effect immediately | 24 |
| prior to January 1,
1998 and (ii) if the public utility | 25 |
| provides electric service to (A) more
than
500,000
customers | 26 |
| but less than 1,000,000 customers in this State on January 1,
| 27 |
| 1999,
reducing, effective May 1, 2002, each component of its
| 28 |
| base rates to residential retail customers by an additional 5% | 29 |
| from the base
rates in effect immediately prior to January 1, | 30 |
| 1998, or (B) at least
1,000,000 customers in this State on | 31 |
| January 1, 1999,
reducing, effective October 1, 2001, each | 32 |
| component of its
base rates to residential retail customers by | 33 |
| an additional
5% from the base rates in effect immediately | 34 |
| prior to
January 1, 1998.
Provided, however, that (A) if an | 35 |
| electric utility's average residential
retail
rate is less than | 36 |
| or equal to the average residential retail
rate for a group
of |
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| Midwest Utilities (consisting of all investor-owned electric | 2 |
| utilities with
annual system peaks in excess of 1000 megawatts | 3 |
| in the States of Illinois,
Indiana, Iowa, Kentucky, Michigan, | 4 |
| Missouri, Ohio, and Wisconsin), based on
data
reported on Form | 5 |
| 1 to the Federal Energy Regulatory Commission for calendar
year | 6 |
| 1995,
then it shall only be required to file tariffs (i) | 7 |
| reducing, effective August
1, 1998, each component of its base | 8 |
| rates to residential
retail customers by
5% from the base rates | 9 |
| in effect immediately prior to January 1, 1998, (ii)
reducing, | 10 |
| effective October 1, 2000, each component of its base
rates to | 11 |
| residential retail customers by the lesser of 5% of the base | 12 |
| rates in
effect immediately prior to January 1, 1998 or the
| 13 |
| percentage by which the electric utility's average residential | 14 |
| retail rate
exceeds the average residential retail rate of the | 15 |
| Midwest Utilities,
based on data
reported on Form 1 to the | 16 |
| Federal Energy Regulatory Commission for calendar
year 1999, | 17 |
| and (iii) reducing, effective October 1, 2002, each component | 18 |
| of its
base rates to
residential retail customers by an
| 19 |
| additional amount equal to the lesser of 5% of the base rates | 20 |
| in effect
immediately prior to January 1, 1998 or the | 21 |
| percentage by which
the electric utility's average residential | 22 |
| retail rate exceeds the average
residential retail rate of the | 23 |
| Midwest Utilities,
based on data reported on Form
1 to the | 24 |
| Federal Energy Regulatory Commission for calendar year 2001; | 25 |
| and (B)
if the average residential retail rate of an electric | 26 |
| utility serving between
150,000
and 250,000 retail customers in | 27 |
| this State on January 1, 1995 is less than or
equal to 90% of
| 28 |
| the average residential retail rate for the Midwest Utilities, | 29 |
| based on data
reported
on Form 1 to the Federal Energy | 30 |
| Regulatory Commission for calendar year 1995,
then it shall | 31 |
| only be required to file tariffs (i) reducing, effective August
| 32 |
| 1,
1998, each component of its base rates to residential retail | 33 |
| customers by 2%
from the base rates in effect immediately prior | 34 |
| to January 1, 1998; (ii)
reducing, effective October 1, 2000, | 35 |
| each component of its base rates to
residential retail | 36 |
| customers by 2% from the base rate in effect immediately
prior |
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| to January 1, 1998; and (iii) reducing, effective October 1, | 2 |
| 2002, each
component of its base rates to residential retail | 3 |
| customers by 1% from the base
rates in effect immediately prior | 4 |
| to January 1, 1998.
Provided,
further, that any electric | 5 |
| utility for which a decrease in base rates has been
or is | 6 |
| placed into effect between October 1, 1996 and the dates | 7 |
| specified in the
preceding sentences of this subsection, other | 8 |
| than pursuant to the requirements
of this subsection,
shall be | 9 |
| entitled to reduce the amount of any reduction or reductions in | 10 |
| its
base rates required by this subsection by the amount of | 11 |
| such other decrease.
The tariffs required under this
subsection | 12 |
| shall be filed 45 days in advance of
the effective date.
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| Notwithstanding anything to the contrary in Section 9-220 of | 14 |
| this Act, no
restatement of base rates in conjunction with the | 15 |
| elimination of a fuel
adjustment clause under that Section | 16 |
| shall result in a lesser decrease in base
rates than customers | 17 |
| would otherwise receive under this subsection had the
electric | 18 |
| utility's fuel adjustment clause not been eliminated.
| 19 |
| (c) Any utility reducing its base rates by 15% on August 1, | 20 |
| 1998 pursuant
to
subsection
(b)
shall include the following | 21 |
| statement on its bills for residential customers
from August 1 | 22 |
| through December 31, 1998: "Effective August 1, 1998, your | 23 |
| rates
have been
reduced by 15% by the Electric Service
Customer | 24 |
| Choice and Rate Relief Law of 1997 passed by the Illinois | 25 |
| General
Assembly.". Any utility reducing its base rates by 5% | 26 |
| on August 1, 1998,
pursuant to subsection (b) shall include the | 27 |
| following statement on its bills
for residential customers from | 28 |
| August 1 through December 31, 1998: "Effective
August 1,
1998, | 29 |
| your rates have been reduced by 5% by the Electric Service | 30 |
| Customer
Choice and Rate Relief Law of 1997 passed by the | 31 |
| Illinois General Assembly.".
| 32 |
| Any utility reducing its base rates by 2% on August 1, 1998 | 33 |
| pursuant to
subsection (b) shall include the following | 34 |
| statement on its bills for
residential customers from August 1 | 35 |
| through December 31, 1998: "Effective
August 1, 1998, your | 36 |
| rates have been reduced by 2% by the Electric Service
Customer |
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| Choice and Rate Relief Law of 1997 passed by the Illinois | 2 |
| General
Assembly.".
| 3 |
| (d) During the mandatory transition period, but not before | 4 |
| January 1, 2000,
and notwithstanding
the provisions of | 5 |
| subsection (a), an electric
utility may request an increase in | 6 |
| its base rates if the
electric utility demonstrates that the | 7 |
| 2-year average of its
earned rate of return on common equity, | 8 |
| calculated as its net
income applicable to common stock divided | 9 |
| by the average of
its beginning and ending balances of common | 10 |
| equity using data
reported in the electric utility's Form 1 | 11 |
| report to the
Federal Energy Regulatory Commission but adjusted | 12 |
| to remove
the effects of accelerated depreciation or | 13 |
| amortization or
other transition or mitigation measures | 14 |
| implemented by the
electric utility pursuant to subsection (g) | 15 |
| of this Section
and the effect of any refund paid pursuant to | 16 |
| subsection (e)
of this Section, is
below the 2-year average for | 17 |
| the same 2 years of the monthly average yields of
30-year
U.S. | 18 |
| Treasury bonds published by the Board of Governors of the
| 19 |
| Federal Reserve System in its weekly H.15 Statistical Release | 20 |
| or
successor publication.
The Commission shall review the | 21 |
| electric utility's request, and may review the
justness and | 22 |
| reasonableness of all rates for tariffed services, in
| 23 |
| accordance with the provisions of Article IX of this Act, | 24 |
| provided that the
Commission shall consider any special or | 25 |
| negotiated adjustments to the
revenue requirement agreed to | 26 |
| between the electric utility and the other
parties to the | 27 |
| proceeding. In setting rates under this Section, the Commission
| 28 |
| shall exclude the costs and revenues that are associated with | 29 |
| competitive
services and any billing or pricing experiments | 30 |
| conducted under Section 16-106.
| 31 |
| (e) For the purposes of this subsection (e) all | 32 |
| calculations and
comparisons shall be performed for the | 33 |
| Illinois operations
of
multijurisdictional utilities. During | 34 |
| the mandatory transition period,
notwithstanding the | 35 |
| provisions
of subsection (a), if the 2-year
average of an | 36 |
| electric utility's earned rate of return on
common equity, |
|
|
|
HB0607 Engrossed |
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LRB094 06764 MKM 36866 b |
|
| 1 |
| calculated as its net income applicable to
common stock divided | 2 |
| by the average of its beginning and
ending balances of common | 3 |
| equity using data reported in
the electric utility's Form 1 | 4 |
| report to the Federal
Energy Regulatory Commission but adjusted | 5 |
| to remove the
effect of any refund paid under this subsection | 6 |
| (e),
and further adjusted to include the annual amortization of | 7 |
| any difference
between the consideration received by an | 8 |
| affiliated interest of the electric
utility in the sale of an | 9 |
| asset which had been sold or transferred by the
electric | 10 |
| utility to the affiliated interest subsequent to the effective | 11 |
| date of
this
amendatory Act of 1997 and the consideration for | 12 |
| which such asset had been sold
or transferred to the affiliated | 13 |
| interest, with such difference to be amortized
ratably from the | 14 |
| date of the sale by the affiliated interest to December 31,
| 15 |
| 2006,
exceeds the 2-year average of the Index for the same 2
| 16 |
| years by 1.5 or more percentage points, the electric
utility | 17 |
| shall make refunds to customers beginning the
first billing day | 18 |
| of April in the following year in the
manner described in | 19 |
| paragraph (3) of this subsection.
For purposes of this | 20 |
| subsection (e),
the "Index" shall be the sum of (A) the average | 21 |
| for
the 12 months ended September 30
of the monthly average | 22 |
| yields of 30-year U.S. Treasury
bonds published by the Board of | 23 |
| Governors of the Federal
Reserve System in its weekly H.15 | 24 |
| Statistical Release or
successor publication for each year 1998 | 25 |
| through 2006, and (B) (i)
4.00
percentage points for
each of | 26 |
| the 12-month periods ending September 30, 1998 through
| 27 |
| September 30, 1999 or
8.00 percentage points if the electric | 28 |
| utility's average
residential retail rate is less than or equal | 29 |
| to 90% of the average residential
retail rate
for the "Midwest | 30 |
| Utilities", as that term is defined in subsection (b) of this
| 31 |
| Section, based on data reported on Form 1 to the Federal Energy | 32 |
| Regulatory
Commission for calendar year 1995, and the electric | 33 |
| utility served between
150,000 and 250,000 retail customers on | 34 |
| January 1, 1995,
(ii) 7.00
percentage points for each of the | 35 |
| 12-month periods ending September 30, 2000
through September | 36 |
| 30, 2006 if the electric utility was providing
service to
at |
|
|
|
HB0607 Engrossed |
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LRB094 06764 MKM 36866 b |
|
| 1 |
| least 1,000,000 customers in this State on January 1, 1999,
or | 2 |
| 9.00 percentage points if the
electric
utility's
average | 3 |
| residential retail rate is less than or equal to 90% of the | 4 |
| average
residential retail rate for the "Midwest Utilities", as | 5 |
| that term is defined in
subsection (b) of this Section, based | 6 |
| on data reported on Form 1 to the Federal
Energy Regulatory | 7 |
| Commission for calendar year 1995 and the electric utility
| 8 |
| served between 150,000 and 250,000 retail customers in this | 9 |
| State on January
1, 1995, (iii) 11.00 percentage points for | 10 |
| each of the
12-month periods ending
September 30, 2000 through | 11 |
| September 30, 2006, but only if the
electric
utility's average | 12 |
| residential retail rate is less than or equal to 90% of the
| 13 |
| average residential retail rate for the "Midwest Utilities", as | 14 |
| that term is
defined in subsection (b) of this Section, based | 15 |
| on data reported on Form 1 to
the Federal Energy Regulatory | 16 |
| Commission for calendar year 1995, the electric
utility served | 17 |
| between 150,000 and 250,000 retail customers in this State on
| 18 |
| January 1, 1995, and the electric utility offers delivery | 19 |
| services on or before
June 1, 2000 to retail customers whose | 20 |
| annual electric energy use comprises 33%
of the kilowatt hour | 21 |
| sales to that group of retail
customers that are classified | 22 |
| under Division D, Groups 20 through 39 of the
Standard | 23 |
| Industrial Classifications set forth in the Standard | 24 |
| Industrial
Classification Manual published by the United | 25 |
| States Office of Management and
Budget, excluding the kilowatt | 26 |
| hour sales to those customers that are eligible
for delivery | 27 |
| services pursuant to Section 16-104(a)(1)(i), and offers | 28 |
| delivery
services to its remaining retail customers classified | 29 |
| under Division D, Groups
20 through 39 on or before October 1, | 30 |
| 2000, and, provided further, that the
electric
utility commits | 31 |
| not to petition pursuant to Section 16-108(f) for entry of an
| 32 |
| order by the Commission authorizing the electric utility to | 33 |
| implement
transition charges for an additional period after | 34 |
| December 31, 2006, or (iv)
5.00 percentage points for each of | 35 |
| the 12-month periods
ending September 30, 2000 through | 36 |
| September 30, 2006 for all other
electric
utilities or 7.00 |
|
|
|
HB0607 Engrossed |
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LRB094 06764 MKM 36866 b |
|
| 1 |
| percentage points for such utilities for
each of the 12-month | 2 |
| periods ending September 30, 2000 through September 30,
2006 | 3 |
| for any such utility that commits not to petition pursuant to
| 4 |
| Section
16-108(f) for entry of an order by the Commission | 5 |
| authorizing the electric
utility to implement transition | 6 |
| charges for an additional period after December
31, 2006 or | 7 |
| 11.00 percentage points for each of the
12-month periods ending | 8 |
| September 30, 2005 and September 30, 2006 for each
electric | 9 |
| utility providing service to fewer than 6,500, or between | 10 |
| 75,000 and
150,000, electric
retail customers in this State
on | 11 |
| January 1, 1995 if such utility commits not to petition | 12 |
| pursuant to Section
16-108(f) for entry of an order by the | 13 |
| Commission authorizing the electric
utility to implement | 14 |
| transition charges for an additional period after December
31, | 15 |
| 2006.
| 16 |
| (1) For purposes of this subsection (e), "excess
| 17 |
| earnings" means the difference between (A) the 2-year
| 18 |
| average of the electric utility's earned rate of return
on | 19 |
| common equity, less (B) the 2-year average of the sum
of | 20 |
| (i) the Index applicable to each of the 2 years and
(ii) | 21 |
| 1.5 percentage points; provided, that "excess
earnings" | 22 |
| shall never be less than zero.
| 23 |
| (2) On or before March 31 of each year 2000 through | 24 |
| 2007 each
electric
utility shall
file a report with the | 25 |
| Commission showing its earned rate
of return on common | 26 |
| equity, calculated in accordance with
this subsection, for | 27 |
| the preceding calendar year and the
average for the | 28 |
| preceding 2 calendar years.
| 29 |
| (3) If an electric utility has excess earnings,
| 30 |
| determined in accordance with paragraphs (1) and (2) of
| 31 |
| this subsection, the refunds which the electric utility
| 32 |
| shall pay to its customers beginning the first billing
day | 33 |
| of April in the following year shall be calculated
and | 34 |
| applied as follows:
| 35 |
| (i) The electric utility's excess earnings
shall | 36 |
| be multiplied by the average of the beginning
and |
|
|
|
HB0607 Engrossed |
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LRB094 06764 MKM 36866 b |
|
| 1 |
| ending balances of the electric utility's common
| 2 |
| equity for the 2-year period in which excess
earnings | 3 |
| occurred.
| 4 |
| (ii) The result of the calculation in (i) shall
be | 5 |
| multiplied by 0.50 and then divided by a number
equal | 6 |
| to 1 minus the electric utility's composite
federal and | 7 |
| State income tax rate.
| 8 |
| (iii) The result of the calculation in (ii)
shall | 9 |
| be divided by the sum of the electric
utility's | 10 |
| projected total kilowatt-hour sales to
retail | 11 |
| customers plus projected kilowatt-hours to be
| 12 |
| delivered to delivery services customers over a one
| 13 |
| year period beginning with the first billing date in
| 14 |
| April in the succeeding year to determine a cents
per | 15 |
| kilowatt-hour refund factor.
| 16 |
| (iv) The cents per kilowatt-hour refund factor
| 17 |
| calculated in (iii) shall be credited to the
electric | 18 |
| utility's customers by applying the factor
on the | 19 |
| customer's monthly bills to each kilowatt-hour sold or | 20 |
| delivered until
the total amount
calculated in (ii) has | 21 |
| been paid to customers.
| 22 |
| (f) During the mandatory transition period, an electric
| 23 |
| utility may file revised tariffs reducing the price of any
| 24 |
| tariffed service offered by the electric utility for all
| 25 |
| customers taking that tariffed service, which shall be
| 26 |
| effective 7 days after filing.
| 27 |
| (g) During the mandatory transition period, an electric
| 28 |
| utility may, without obtaining any approval of the Commission | 29 |
| other than that
provided for in this subsection and
| 30 |
| notwithstanding any other provision of this Act or any rule or
| 31 |
| regulation of the Commission that would require such approval:
| 32 |
| (1) implement a reorganization, other than a merger of | 33 |
| 2 or
more public utilities as defined in Section 3-105 or | 34 |
| their
holding companies;
| 35 |
| (2) retire generating plants from service;
| 36 |
| (3) sell, assign, lease or otherwise transfer assets to |
|
|
|
HB0607 Engrossed |
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LRB094 06764 MKM 36866 b |
|
| 1 |
| an
affiliated or unaffiliated entity and as part of such
| 2 |
| transaction enter into service agreements, power purchase
| 3 |
| agreements, or other agreements with the transferee; | 4 |
| provided,
however, that the prices, terms and conditions of | 5 |
| any power
purchase agreement must be approved or allowed | 6 |
| into effect by
the Federal Energy Regulatory Commission; or
| 7 |
| (4) use any
accelerated cost recovery method including | 8 |
| accelerated depreciation,
accelerated amortization or | 9 |
| other capital recovery
methods, or record reductions to the | 10 |
| original cost of its
assets.
| 11 |
| In order to implement a reorganization, retire
generating | 12 |
| plants from service, or sell, assign, lease or
otherwise | 13 |
| transfer assets pursuant to this Section, the
electric utility | 14 |
| shall comply with subsections (c) and (d) of Section
16-128, if | 15 |
| applicable, and subsection (k) of this Section, if applicable,
| 16 |
| and provide the Commission with at
least 30 days notice of the | 17 |
| proposed reorganization or
transaction, which notice shall | 18 |
| include the following
information:
| 19 |
| (i) a complete statement of the entries that the
| 20 |
| electric utility will make on its books and records of
| 21 |
| account to implement the proposed reorganization or
| 22 |
| transaction together with a certification from an
| 23 |
| independent certified public accountant that such | 24 |
| entries
are in accord with generally accepted | 25 |
| accounting
principles and, if the Commission has | 26 |
| previously approved
guidelines for cost allocations | 27 |
| between the utility and
its affiliates, a | 28 |
| certification from the chief accounting
officer of the | 29 |
| utility that such entries are in accord
with those cost | 30 |
| allocation guidelines;
| 31 |
| (ii) a description of how the electric utility will
| 32 |
| use proceeds of any sale, assignment, lease or transfer
| 33 |
| to retire debt or otherwise reduce or recover the costs
| 34 |
| of services provided by such electric utility;
| 35 |
| (iii) a list of all federal approvals or approvals
| 36 |
| required from departments and agencies of this State,
|
|
|
|
HB0607 Engrossed |
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LRB094 06764 MKM 36866 b |
|
| 1 |
| other than the Commission, that the electric utility | 2 |
| has
or will obtain before implementing the | 3 |
| reorganization or
transaction;
| 4 |
| (iv) an irrevocable commitment by the electric
| 5 |
| utility that it will not, as a result of the | 6 |
| transaction,
impose any stranded cost charges that it | 7 |
| might otherwise
be allowed to charge retail customers | 8 |
| under federal law
or increase the transition charges | 9 |
| that it is otherwise
entitled to collect under this | 10 |
| Article XVI; and
| 11 |
| (v) if the electric utility proposes to sell,
| 12 |
| assign, lease or otherwise transfer a generating plant
| 13 |
| that brings the amount of net dependable generating
| 14 |
| capacity transferred pursuant to this subsection to an
| 15 |
| amount equal to or greater than 15% of the electric
| 16 |
| utility's net dependable capacity as of the effective
| 17 |
| date of this amendatory Act of 1997, and enters into a
| 18 |
| power purchase agreement with the entity to which such
| 19 |
| generating plant is sold, assigned, leased, or | 20 |
| otherwise
transferred, the electric utility also | 21 |
| agrees, if its
fuel adjustment clause has not already | 22 |
| been eliminated,
to eliminate its fuel adjustment | 23 |
| clause in accordance
with subsection (b) of Section | 24 |
| 9-220 for a period of time
equal to the length of any | 25 |
| such power purchase agreement
or successor agreement, | 26 |
| or until January 1, 2005,
whichever is longer; if the | 27 |
| capacity of the generating
plant so transferred and | 28 |
| related power purchase agreement
does not result in the | 29 |
| elimination of the fuel adjustment
clause under this | 30 |
| subsection, and the fuel adjustment clause has not | 31 |
| already
been eliminated, the electric utility shall
| 32 |
| agree that the costs associated with the transferred
| 33 |
| plant that are included in the calculation of the rate
| 34 |
| per kilowatt-hour to be applied pursuant to the | 35 |
| electric
utility's fuel adjustment clause during such | 36 |
| period shall
not exceed the per kilowatt-hour cost |
|
|
|
HB0607 Engrossed |
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LRB094 06764 MKM 36866 b |
|
| 1 |
| associated with
such generating plant included in the | 2 |
| electric utility's
fuel adjustment clause during the | 3 |
| full calendar year
preceding the transfer, with such | 4 |
| limit to be adjusted
each year thereafter by the Gross | 5 |
| Domestic Product
Implicit Price Deflator.
| 6 |
| (vi) In addition, if the electric utility proposes | 7 |
| to sell, assign, or
lease, (A) either (1) an amount of | 8 |
| generating plant that brings the amount of
net | 9 |
| dependable generating capacity transferred pursuant to | 10 |
| this subsection to
an amount equal to or greater than | 11 |
| 15% of its net dependable capacity on the
effective | 12 |
| date of this amendatory Act of 1997, or (2) one or more | 13 |
| generating
plants with a total net dependable capacity | 14 |
| of 1100 megawatts, or (B)
transmission and | 15 |
| distribution facilities that either (1) bring the | 16 |
| amount of
transmission and distribution facilities | 17 |
| transferred pursuant to this
subsection to an amount | 18 |
| equal to or greater than 15% of the electric utility's
| 19 |
| total depreciated original cost investment in such | 20 |
| facilities, or (2) represent
an investment of | 21 |
| $25,000,000 in terms of total depreciated original | 22 |
| cost, the
electric utility shall provide, in
addition | 23 |
| to the information listed in subparagraphs
(i) through | 24 |
| (v), the following information: (A) a description of | 25 |
| how the
electric utility will meet its service | 26 |
| obligations under this Act in a safe and
reliable | 27 |
| manner and (B) the electric utility's projected earned | 28 |
| rate of
return on common equity, calculated in | 29 |
| accordance with subsection (d) of this
Section, for | 30 |
| each year from the date of the notice through December | 31 |
| 31,
2006
both with and without the proposed | 32 |
| transaction. If
the Commission has not issued an order | 33 |
| initiating a hearing on the proposed
transaction | 34 |
| within 30 days after the date the electric utility's | 35 |
| notice is
filed, the transaction shall be deemed | 36 |
| approved. The Commission may, after
notice and |
|
|
|
HB0607 Engrossed |
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LRB094 06764 MKM 36866 b |
|
| 1 |
| hearing,
prohibit the proposed transaction if it makes | 2 |
| either or both of the following
findings: (1) that the | 3 |
| proposed transaction will render the electric utility
| 4 |
| unable to provide its tariffed services in a safe and | 5 |
| reliable manner, or (2)
that there is a strong | 6 |
| likelihood that consummation of the proposed | 7 |
| transaction
will result in the electric utility being | 8 |
| entitled to request an increase in
its base rates | 9 |
| during the mandatory transition period pursuant to | 10 |
| subsection
(d) of this Section. Any hearing initiated | 11 |
| by the Commission into the proposed
transaction shall | 12 |
| be completed, and the Commission's final order | 13 |
| approving or
prohibiting the proposed transaction | 14 |
| shall be entered, within 90 days after the
date the | 15 |
| electric utility's notice was filed.
Provided, | 16 |
| however, that a sale, assignment, or lease of | 17 |
| transmission facilities
to an independent system | 18 |
| operator that meets the requirements of Section 16-126
| 19 |
| shall not be subject to Commission approval under this | 20 |
| Section.
| 21 |
| In any proceeding conducted by the Commission | 22 |
| pursuant to this
subparagraph
(vi), intervention shall | 23 |
| be limited to parties with a direct interest in the
| 24 |
| transaction which is the subject of the hearing and any | 25 |
| statutory consumer
protection agency as defined in | 26 |
| subsection (d) of Section 9-102.1.
Notwithstanding the | 27 |
| provisions of Section 10-113 of this Act, any | 28 |
| application
seeking rehearing of an order issued under | 29 |
| this subparagraph (vi), whether
filed by the electric | 30 |
| utility or by an intervening party, shall be filed | 31 |
| within
10 days after service of the order.
| 32 |
| The Commission shall not in any subsequent proceeding or
| 33 |
| otherwise, review such a reorganization or other transaction
| 34 |
| authorized by this Section, but shall retain the authority to | 35 |
| allocate costs as
stated in Section 16-111(i). An entity to | 36 |
| which an electric
utility sells, assigns, leases or transfers |
|
|
|
HB0607 Engrossed |
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LRB094 06764 MKM 36866 b |
|
| 1 |
| assets pursuant to
this subsection (g) shall not, as a result | 2 |
| of the transactions
specified in this subsection (g), be deemed | 3 |
| a public utility
as defined in Section 3-105. Nothing in this | 4 |
| subsection (g)
shall change any requirement under the | 5 |
| jurisdiction of the
Illinois Department of Nuclear Safety | 6 |
| including, but not
limited to, the payment of fees. Nothing in | 7 |
| this subsection
(g) shall exempt a utility from obtaining a | 8 |
| certificate
pursuant to Section 8-406 of this Act for the | 9 |
| construction of
a new electric generating facility. Nothing in | 10 |
| this
subsection (g) is intended to exempt the transactions | 11 |
| hereunder from the
operation of the federal or State antitrust
| 12 |
| laws. Nothing in this subsection (g) shall require an electric
| 13 |
| utility to use the procedures specified in this subsection for
| 14 |
| any of the transactions specified herein. Any other procedure
| 15 |
| available under this Act may, at the electric utility's
| 16 |
| election, be used for any such transaction.
| 17 |
| (h) During the mandatory transition period, the
Commission | 18 |
| shall not establish or use any rates of
depreciation, which for | 19 |
| purposes of this subsection shall
include amortization, for any | 20 |
| electric utility other than
those established pursuant to | 21 |
| subsection (c) of Section 5-104
of this Act or utilized | 22 |
| pursuant to subsection (g) of this
Section. Provided, however, | 23 |
| that in any proceeding to review an electric
utility's rates | 24 |
| for tariffed services pursuant to Section 9-201, 9-202, 9-250
| 25 |
| or
16-111(d) of this Act, the Commission may establish new | 26 |
| rates
of depreciation for the electric utility in the same | 27 |
| manner provided in
subsection (d) of Section 5-104 of this Act.
| 28 |
| An electric utility implementing an accelerated cost
recovery | 29 |
| method including accelerated depreciation,
accelerated | 30 |
| amortization or other capital recovery methods, or
recording | 31 |
| reductions to the original cost of its assets,
pursuant to | 32 |
| subsection (g) of this Section, shall file a
statement with the | 33 |
| Commission describing the accelerated cost
recovery method to | 34 |
| be implemented or the reduction in the
original cost of its | 35 |
| assets to be recorded. Upon the filing
of such statement, the | 36 |
| accelerated cost recovery method or the
reduction in the |
|
|
|
HB0607 Engrossed |
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LRB094 06764 MKM 36866 b |
|
| 1 |
| original cost of assets shall be deemed to be
approved by the | 2 |
| Commission as though an order had been entered
by the | 3 |
| Commission.
| 4 |
| (i) Subsequent to the mandatory transition period, the
| 5 |
| Commission, in any proceeding to establish rates and charges
| 6 |
| for tariffed services offered by an electric utility, shall
| 7 |
| consider only (1) the then current or projected revenues,
| 8 |
| costs, investments and cost of capital directly or
indirectly | 9 |
| associated with the provision of such tariffed
services; (2) | 10 |
| collection of transition charges in accordance
with Sections | 11 |
| 16-102 and 16-108 of this Act; (3) recovery of
any employee | 12 |
| transition costs as described in Section 16-128
which the | 13 |
| electric utility is continuing to incur, including
recovery of | 14 |
| any unamortized portion of such costs previously
incurred or | 15 |
| committed, with such costs to be equitably
allocated among | 16 |
| bundled services, delivery services, and
contracts with | 17 |
| alternative retail electric suppliers; and (4)
recovery of the | 18 |
| costs associated with the electric utility's
compliance with | 19 |
| decommissioning funding requirements; and
shall not consider | 20 |
| any other revenues, costs, investments
or cost of capital of | 21 |
| either the electric utility or of any
affiliate of the electric | 22 |
| utility that are not associated with the provision of
tariffed | 23 |
| services. In setting rates for tariffed services, the | 24 |
| Commission
shall equitably allocate joint and common costs and | 25 |
| investments between the
electric utility's competitive and | 26 |
| tariffed services. In determining the
justness and
| 27 |
| reasonableness of the electric power and energy component of
an | 28 |
| electric utility's rates for tariffed services subsequent
to | 29 |
| the mandatory transition period and prior to the time that
the | 30 |
| provision of such electric power and energy is declared
| 31 |
| competitive, the Commission shall consider the extent to which
| 32 |
| the electric utility's tariffed rates for such component for
| 33 |
| each customer class exceed the market value determined
pursuant | 34 |
| to Section 16-112, and, if the electric power and
energy | 35 |
| component of such tariffed rate exceeds the market
value by | 36 |
| more than 10% for any customer class, may
establish such |
|
|
|
HB0607 Engrossed |
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LRB094 06764 MKM 36866 b |
|
| 1 |
| electric power and energy component at a rate
equal to the | 2 |
| market value plus 10%.
In any such case, the Commission may | 3 |
| also elect to extend the provisions of
Section 16-111(e) for | 4 |
| any period in which the electric utility is collecting
| 5 |
| transition charges, using information applicable to such | 6 |
| period.
| 7 |
| (j) During the mandatory transition period, an electric
| 8 |
| utility may elect to transfer to a non-operating income
account | 9 |
| under the Commission's Uniform System of Accounts
either or | 10 |
| both of (i) an amount of unamortized investment tax
credit that | 11 |
| is in addition to the ratable amount which is
credited to the | 12 |
| electric utility's operating income account
for the year in | 13 |
| accordance with Section 46(f)(2) of the
federal Internal | 14 |
| Revenue Code of 1986, as in effect prior to P.L. 101-508, or
| 15 |
| (ii) "excess tax reserves",
as that term is defined in Section | 16 |
| 203(e)(2)(A) of the federal
Tax Reform Act of 1986, provided | 17 |
| that (A) the amount
transferred may not exceed the amount of | 18 |
| the electric
utility's assets that were created pursuant to | 19 |
| Statement of
Financial Accounting Standards No. 71 which the | 20 |
| electric
utility has written off during the mandatory | 21 |
| transition
period, and (B) the transfer shall not be effective | 22 |
| until
approved by the Internal Revenue Service. An electric | 23 |
| utility
electing to make such a transfer shall file a statement | 24 |
| with
the Commission stating the amount and timing of the | 25 |
| transfer
for which it intends to request approval of the | 26 |
| Internal
Revenue Service, along with a copy of its proposed | 27 |
| request to
the Internal Revenue Service for a ruling. The | 28 |
| Commission
shall issue an order within 14 days after the | 29 |
| electric
utility's filing approving, subject to receipt of | 30 |
| approval
from the Internal Revenue Service, the proposed | 31 |
| transfer.
| 32 |
| (k) If an electric utility is selling or transferring
to a | 33 |
| single buyer 5 or more generating plants located in this State | 34 |
| with a
total net dependable capacity of 5000 megawatts or more
| 35 |
| pursuant to subsection (g) of this Section and has obtained
a | 36 |
| sale price or consideration that exceeds 200% of
the book value |
|
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| of such plants, the electric utility must
provide to the | 2 |
| Governor, the President of the Illinois
Senate, the Minority | 3 |
| Leader of the Illinois Senate, the
Speaker of the Illinois | 4 |
| House of Representatives, and the
Minority Leader of the | 5 |
| Illinois House of Representatives no
later than 15 days after | 6 |
| filing its notice under subsection
(g) of this Section or 5 | 7 |
| days after the date on which this
subsection (k) becomes law, | 8 |
| whichever is later, a written
commitment in which such electric | 9 |
| utility agrees to expend
$2 billion outside the corporate | 10 |
| limits of any municipality
with 1,000,000 or more inhabitants | 11 |
| within such electric
utility's service area, over a 6-year | 12 |
| period beginning
with the calendar year in which the notice is | 13 |
| filed, on
projects, programs, and improvements within its | 14 |
| service area
relating to transmission and distribution | 15 |
| including, without
limitation, infrastructure expansion, | 16 |
| repair and
replacement, capital investments, operations and
| 17 |
| maintenance, and vegetation management.
| 18 |
| (Source: P.A. 91-50, eff. 6-30-99; 92-537, eff. 6-6-02; 92-690, | 19 |
| eff. 7-18-02;
revised 9-10-02.)
| 20 |
| (220 ILCS 5/16-113)
| 21 |
| Sec. 16-113. Declaration of service as a competitive
| 22 |
| service.
| 23 |
| (a) An electric utility may, by petition, request the | 24 |
| Commission to declare
a
tariffed service provided by the | 25 |
| electric
utility to be a competitive service. The electric | 26 |
| utility
shall give notice of its petition to the public in the | 27 |
| same
manner that public notice is provided for proposed general
| 28 |
| increases in rates for tariffed services, in accordance with
| 29 |
| rules and regulations prescribed by the Commission. The
| 30 |
| Commission shall hold a hearing and
on the petition if a | 31 |
| hearing
is deemed necessary by the Commission. The Commission
| 32 |
| shall
declare the class of tariffed service to be a competitive | 33 |
| service for some
identifiable customer segment or group of | 34 |
| customers, or some
clearly defined geographical area within the | 35 |
| electric
utility's service area, only after the electric |
|
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| utility demonstrates that at least 33% of the customers in the | 2 |
| electric utility's service area that are eligible to take the | 3 |
| class of tariffed service instead take service from alternative | 4 |
| retail electric suppliers, as defined in Section 16-102, and | 5 |
| that at least 3 alternative retail electric suppliers provide | 6 |
| service that is comparable to the class of tariffed service to | 7 |
| those customers in the utility's service area that do not take | 8 |
| service from the electric utility;
if the service or a | 9 |
| reasonably
equivalent substitute service is reasonably | 10 |
| available to the
customer segment or group or in the defined | 11 |
| geographical area
at a comparable price from one or more | 12 |
| providers other than
the electric utility or an affiliate of | 13 |
| the electric utility,
and the electric utility has lost or | 14 |
| there is a reasonable
likelihood that the electric utility will | 15 |
| lose business for
the service to the other provider or | 16 |
| providers; provided, that
the Commission may not declare the | 17 |
| provision of electric power
and energy to be competitive | 18 |
| pursuant to this subsection with
respect to (i) any retail | 19 |
| customer or group of retail customers that is not
eligible | 20 |
| pursuant to Section 16-104 to take delivery services
provided | 21 |
| by the electric utility and (ii) any residential and
small | 22 |
| commercial retail customers prior to the last date on which | 23 |
| such
customers are required to pay transition charges.
In | 24 |
| determining whether to grant or deny a petition to declare
the | 25 |
| provision of electric power and energy competitive, the
| 26 |
| Commission shall consider, in applying the above criteria,
| 27 |
| whether there is adequate transmission capacity into the
| 28 |
| service area of the petitioning electric utility to make
| 29 |
| electric power and energy reasonably available to the customer
| 30 |
| segment or group or in the defined geographical area from one
| 31 |
| or more providers other than the electric utility or an
| 32 |
| affiliate of the electric utility, in accordance with this
| 33 |
| subsection. The Commission shall make its determination and
| 34 |
| issue its final order declaring or refusing to declare the
| 35 |
| service to be a competitive service within 180
120 days | 36 |
| following
the date that the petition is filed , or otherwise the |
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| petition
shall be deemed to be granted; provided, that if the | 2 |
| petition
is deemed to be granted by operation of law, the | 3 |
| Commission
shall not thereby be precluded from finding and | 4 |
| ordering, in a
subsequent proceeding initiated by the | 5 |
| Commission, and after
notice and hearing, that the service is | 6 |
| not competitive based
on the criteria set forth in this | 7 |
| subsection .
| 8 |
| (b) Any customer except a customer identified in
subsection | 9 |
| (c) of Section 16-103 who is taking a tariffed
service that is | 10 |
| declared to be a competitive service pursuant
to subsection (a) | 11 |
| of this Section shall be entitled to
continue to take the | 12 |
| service from the electric utility on a
tariffed basis for a | 13 |
| period of 3 years following the date
that the service is | 14 |
| declared competitive, or such other period
as is stated in the | 15 |
| electric utility's tariff pursuant to
Section 16-110. This | 16 |
| subsection shall not require the
electric utility to offer or | 17 |
| provide on a tariffed basis any
service to any customer (except | 18 |
| those customers identified in
subsection (c) of Section 16-103) | 19 |
| that was not taking such
service on a tariffed basis on the | 20 |
| date the service was
declared to be competitive.
| 21 |
| (c) If the Commission denies a petition to declare a
| 22 |
| service to be a competitive service, or determines in a
| 23 |
| separate proceeding that a service is not competitive based on
| 24 |
| the criteria set forth in subsection (a), the electric utility
| 25 |
| may file a new petition no earlier than 6 months following the
| 26 |
| date of the Commission's order, requesting, on the basis of
| 27 |
| additional or different facts and circumstances, that the
| 28 |
| service be declared to be a competitive service.
| 29 |
| (d) The Commission shall not deny a petition to declare
a | 30 |
| service to be a competitive service, and shall not find that
a | 31 |
| service is not a competitive service, on the grounds that it
| 32 |
| has previously denied the petition of another electric utility
| 33 |
| to declare the same or a similar service to be a competitive
| 34 |
| service or has previously determined that the same or a
similar | 35 |
| service provided by another electric utility is not a
| 36 |
| competitive service.
|
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| (e) An electric utility may declare a service, other
than | 2 |
| delivery services or the provision of electric power or
energy, | 3 |
| to be competitive by filing with the Commission at
least 14 | 4 |
| days prior to the date on which the service is to
become | 5 |
| competitive a notice describing the service that is
being | 6 |
| declared competitive and the date on which it will
become | 7 |
| competitive; provided, that any customer who is taking
a | 8 |
| tariffed service that is declared to be a competitive
service | 9 |
| pursuant to this subsection (e) shall be entitled to
continue | 10 |
| to take the service from the electric utility on a
tariffed | 11 |
| basis until the electric utility files, and the
Commission | 12 |
| grants, a petition to declare the service
competitive in | 13 |
| accordance with subsection (a) of this Section.
The Commission | 14 |
| shall be authorized to find and order, after
notice and hearing | 15 |
| in a subsequent proceeding initiated by the
Commission, that | 16 |
| any service declared to be competitive
pursuant to this | 17 |
| subsection (e) is not competitive in
accordance with the | 18 |
| criteria set forth in subsection (a) of
this Section.
| 19 |
| (Source: P.A. 90-561, eff. 12-16-97.)
| 20 |
| Section 99. Effective date. This Act takes effect upon | 21 |
| becoming law.
|
|