Full Text of HB5766 94th General Assembly
HB5766 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB5766
Introduced 02/24/06, by Rep. Lisa M. Dugan SYNOPSIS AS INTRODUCED: |
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220 ILCS 5/16-102 |
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220 ILCS 5/16-111 |
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220 ILCS 5/16-113 |
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Amends the Electric Service Customer Choice and Rate Relief Law of 1997 in the Public Utilities Act. Provides that the "mandatory transition period" extends through the date on which the Illinois Commerce Commission has approved declarations of competitive service for all classes of service offered in the service areas of all electric utilities that, on December 31, 2005, served at least 100,000 customers (now, the mandatory transition period extends through January 1, 2007). Prohibits the Commission from taking certain actions prior to 2010 (now, the prohibition is during the mandatory transition period) with respect to (i) initiating, authorizing, or ordering any change by way of increase or (ii) in approving an application for a merger, imposing a condition requiring any filing for an increase, decrease, or change in or other review of an electric utility's rates or enforcing such a condition. Deletes a provision prohibiting the Commission from initiating, authorizing, or ordering any change by way of a decrease. Deletes a provision that provides that the Commission is not prohibited from approving the application of an electric utility to implement an alternative to rate of return regulation or a regulatory mechanism that rewards or penalizes the utility through adjustment of rates based on utility performance. Provides that, during the remainder of the mandatory transition period, if any, the Commission may modify rates. Requires the Commission to hold a hearing on any petition by an electric utility requesting the Commission to declare a tariffed service provided by the utility to be a a competitive service (now, the Commission shall hold a hearing if the Commission deems it necessary). Provides that the Commission shall only declare the class of tariffed service to be a competitive service if the electric utility demonstrates that at least 33% of the customers in the electric utility's service area that are eligible to take the class of tariffed service instead take service from alternative retail electric suppliers and that at least 3 alternative retail electric suppliers provide service that is comparable to the class of tariffed service to those customers in the utility's service area that do not take service from the electric utility (now, the Commission is required to declare the service to be a competitive service for an identifiable customer segment or group of customers or a clearly defined geographical area within the electricity's service area if the service or a reasonably equivalent substitute service is reasonably available to the customer segment or group or in the defined geographical area at a reasonable price from one or more other providers other than the electric utility or an affiliate and the utility has lost or is reasonably likely to lose business for the service to the other provider or providers). Requires the Commission to make its determination and issue its final order declaring or refusing to declare the service to be a competitive service within 180 (now, 120) days after the date the petition is filed. Deletes provisions that, if the Commission fails to make the determination within that time results within that time period, the petition is deemed to be granted. Effective immediately.
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A BILL FOR
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HB5766 |
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LRB094 19771 AMC 56478 b |
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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 charges for delivered electric
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| power and energy that vary on an hour-to-hour basis for
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| nonresidential retail customers and that vary on a periodic
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| basis during the day for residential retail customers.
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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. 91-50, eff. 6-30-99; 92-537, eff. 6-6-02.)
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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,
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| 1999,
reducing, effective May 1, 2002, each component of its
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| 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
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| 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.
| 13 |
| 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 |
|
|
|
HB5766 |
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LRB094 19771 AMC 56478 b |
|
| 1 |
| 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, |
|
|
|
HB5766 |
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LRB094 19771 AMC 56478 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 |
|
|
|
HB5766 |
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LRB094 19771 AMC 56478 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 |
|
|
|
HB5766 |
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LRB094 19771 AMC 56478 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 |
|
|
|
HB5766 |
- 16 - |
LRB094 19771 AMC 56478 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 |
|
|
|
HB5766 |
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LRB094 19771 AMC 56478 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,
|
|
|
|
HB5766 |
- 18 - |
LRB094 19771 AMC 56478 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 |
|
|
|
HB5766 |
- 19 - |
LRB094 19771 AMC 56478 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 |
|
|
|
HB5766 |
- 20 - |
LRB094 19771 AMC 56478 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 |
|
|
|
HB5766 |
- 21 - |
LRB094 19771 AMC 56478 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 |
|
|
|
HB5766 |
- 22 - |
LRB094 19771 AMC 56478 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 |
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| 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.
|
|