Full Text of SB0090 94th General Assembly
SB0090ham002 94TH GENERAL ASSEMBLY
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Rep. Kurt M. Granberg
Filed: 5/30/2005
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09400SB0090ham002 |
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LRB094 07173 MKM 47429 a |
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| AMENDMENT TO SENATE BILL 90
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| AMENDMENT NO. ______. Amend Senate Bill 90, AS AMENDED, by | 3 |
| replacing everything after the enacting clause with the | 4 |
| following:
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| "Section 5. The Public Utilities Act is amended by changing | 6 |
| Section 9-220 as follows:
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| (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220)
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| Sec. 9-220. Rate changes based on changes in fuel costs.
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| (a) Notwithstanding the provisions of Section 9-201, the
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| Commission may authorize the increase or decrease of rates and | 11 |
| charges
based upon changes in the cost of fuel used in the | 12 |
| generation or production
of electric power, changes in the cost | 13 |
| of purchased power, or changes in
the cost of purchased gas | 14 |
| through the application of fuel adjustment
clauses or purchased | 15 |
| gas adjustment clauses. The Commission may also
authorize the | 16 |
| increase or decrease of rates and charges based upon | 17 |
| expenditures
or revenues resulting from the purchase or sale of | 18 |
| emission allowances created
under the federal Clean Air Act | 19 |
| Amendments of 1990,
through such fuel adjustment clauses, as a | 20 |
| cost of fuel. For the purposes of
this paragraph, cost of fuel | 21 |
| used in the generation or production of electric
power shall | 22 |
| include the amount of any fees paid by the utility for the
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| implementation and operation of a process for the | 24 |
| desulfurization of the
flue gas when burning high sulfur coal |
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| at any location within the State of
Illinois irrespective of | 2 |
| the attainment status designation of such
location; but shall | 3 |
| not include transportation costs
of coal
(i) except to the | 4 |
| extent that for contracts entered into on
and after the | 5 |
| effective date of this amendatory Act of 1997,
the cost of the | 6 |
| coal, including transportation costs,
constitutes the lowest | 7 |
| cost for adequate and reliable fuel
supply reasonably available | 8 |
| to the public utility in
comparison to the cost, including | 9 |
| transportation costs, of
other adequate and reliable sources of | 10 |
| fuel supply reasonably
available to the public utility, or (ii)
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| except as otherwise provided in the next 3 sentences of this | 12 |
| paragraph.
Such costs of fuel
shall, when requested by a | 13 |
| utility or at the conclusion of the utility's
next general | 14 |
| electric rate proceeding, whichever shall first occur, include
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| transportation costs of coal purchased under existing coal | 16 |
| purchase
contracts. For purposes of this paragraph "existing | 17 |
| coal purchase
contracts" means contracts for the purchase of | 18 |
| coal in effect on the
effective date of this amendatory Act of | 19 |
| 1991, as such contracts may
thereafter be amended, but only to | 20 |
| the extent that any such amendment does
not increase the | 21 |
| aggregate quantity of coal to be purchased under such
contract.
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| Nothing herein shall authorize an electric utility
to recover | 23 |
| through its fuel adjustment clause any amounts of
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| transportation costs of coal that were included in the revenue
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| requirement used to set base rates in its most recent general
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| rate proceeding.
Cost shall be based upon uniformly applied | 27 |
| accounting
principles. Annually, the Commission shall initiate | 28 |
| public hearings to
determine whether the clauses reflect actual | 29 |
| costs of fuel, gas, power, or
coal transportation purchased to | 30 |
| determine whether such purchases were
prudent, and to reconcile | 31 |
| any amounts collected with the actual costs of
fuel, power, | 32 |
| gas, or coal transportation prudently purchased. In each such
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| proceeding, the burden of proof shall be upon the utility to | 34 |
| establish the
prudence of its cost of fuel, power, gas, or coal
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| transportation purchases
and costs.
The Commission shall
issue | 2 |
| its final order in each such annual proceeding for an
electric | 3 |
| utility by December 31 of the year immediately
following the | 4 |
| year to which the proceeding pertains, provided,
that the | 5 |
| Commission shall issue its final order with respect
to such | 6 |
| annual proceeding for the years 1996 and earlier by December | 7 |
| 31, 1998.
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| (b) A public utility providing electric service, other than | 9 |
| a public utility
described in subsections (e) or (f) of this | 10 |
| Section, may at
any time during the mandatory transition period | 11 |
| file with the
Commission proposed tariff sheets that eliminate | 12 |
| the public
utility's fuel adjustment clause and adjust the | 13 |
| public
utility's base rate tariffs by the amount necessary for | 14 |
| the
base fuel component of the base rates to recover the public
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| utility's average fuel and power supply costs per kilowatt-hour | 16 |
| for the 2
most recent years for which the Commission
has issued | 17 |
| final orders in annual proceedings pursuant to
subsection (a), | 18 |
| where the average fuel and power supply costs
per kilowatt-hour | 19 |
| shall be calculated as the sum of the public
utility's prudent | 20 |
| and allowable fuel and power supply costs as
found by the | 21 |
| Commission in the 2 proceedings divided by the
public utility's | 22 |
| actual jurisdictional kilowatt-hour sales for
those 2 years. | 23 |
| Notwithstanding any contrary or inconsistent
provisions in | 24 |
| Section 9-201 of this Act, in subsection (a) of
this Section or | 25 |
| in any rules or regulations promulgated by the
Commission | 26 |
| pursuant to subsection (g) of this Section, the
Commission | 27 |
| shall review and shall by order approve, or approve
as | 28 |
| modified, the proposed tariff sheets within 60 days after
the | 29 |
| date of the public utility's filing. The Commission may
modify | 30 |
| the public utility's proposed tariff sheets only to the
extent | 31 |
| the Commission finds necessary to achieve conformance
to the | 32 |
| requirements of this subsection (b). During the 5
years | 33 |
| following the date of the Commission's order, but in any
event | 34 |
| no earlier than January 1, 2007, a public utility whose
fuel |
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LRB094 07173 MKM 47429 a |
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| adjustment clause has been eliminated pursuant to this
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| subsection shall not file proposed tariff sheets seeking, or
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| otherwise petition the Commission for, reinstatement of a fuel
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| adjustment clause.
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| (c) Notwithstanding any contrary or inconsistent
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| provisions in Section 9-201 of this Act, in subsection (a) of
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| this Section or in any rules or regulations promulgated by the
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| Commission pursuant to subsection (g) of this Section, a
public | 9 |
| utility providing electric service, other than a public utility
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| described
in subsection (e) or (f) of this Section, may at any | 11 |
| time
during the mandatory transition period file with the
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| Commission proposed tariff sheets that establish the rate per
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| kilowatt-hour to be applied pursuant to the public utility's
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| fuel adjustment clause at the average value for such rate
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| during the preceding 24 months, provided that such average
rate | 16 |
| results in a credit to customers' bills, without making
any | 17 |
| revisions to the public utility's base rate tariffs. The
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| proposed tariff sheets shall establish the fuel adjustment
rate | 19 |
| for a specific time period of at least 3 years but not
more | 20 |
| than 5 years, provided that the terms and conditions for
any | 21 |
| reinstatement earlier than 5 years shall be set forth in
the | 22 |
| proposed tariff sheets and subject to modification or
approval | 23 |
| by the Commission. The Commission shall review and
shall by | 24 |
| order approve the proposed tariff sheets if it finds
that the | 25 |
| requirements of this subsection are met. The
Commission shall | 26 |
| not conduct the annual hearings specified in the
last 3 | 27 |
| sentences of subsection (a) of this Section for the
utility for | 28 |
| the period that the factor established pursuant to
this | 29 |
| subsection is in effect.
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| (d) A public utility providing electric service, or a | 31 |
| public utility
providing gas service
may file with the | 32 |
| Commission proposed tariff sheets that
eliminate the public | 33 |
| utility's fuel or purchased gas
adjustment clause and adjust | 34 |
| the public utility's base rate
tariffs to provide for recovery |
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| of power supply costs or gas
supply costs that would have been | 2 |
| recovered through such
clause; provided, that the provisions of | 3 |
| this subsection (d) shall not be
available to a public utility | 4 |
| described in subsections (e) or (f) of this
Section to | 5 |
| eliminate its fuel adjustment clause. Notwithstanding any | 6 |
| contrary
or inconsistent
provisions in Section 9-201 of this | 7 |
| Act, in subsection (a) of
this Section, or in any rules or | 8 |
| regulations promulgated by
the Commission pursuant to | 9 |
| subsection (g) of this Section, the
Commission shall review and | 10 |
| shall by order approve, or approve
as modified in the | 11 |
| Commission's order, the proposed tariff
sheets within 240 days | 12 |
| after the date of the public utility's
filing. The Commission's | 13 |
| order shall approve rates and
charges that the Commission, | 14 |
| based on information in the
public utility's filing or on the | 15 |
| record if a hearing is held
by the Commission, finds will | 16 |
| recover the reasonable, prudent
and necessary jurisdictional | 17 |
| power supply costs or gas supply
costs incurred or to be | 18 |
| incurred by the public utility during
a 12 month period found | 19 |
| by the Commission to be appropriate
for these purposes, | 20 |
| provided, that such period shall be either
(i) a 12 month | 21 |
| historical period occurring during the 15
months ending on the | 22 |
| date of the public utility's filing, or
(ii) a 12 month future | 23 |
| period ending no later than 15 months
following the date of the | 24 |
| public utility's filing. The public
utility shall include with | 25 |
| its tariff filing information
showing both (1) its actual | 26 |
| jurisdictional power supply costs
or gas supply costs for a 12 | 27 |
| month historical period
conforming to (i) above and (2) its | 28 |
| projected jurisdictional
power supply costs or gas supply costs | 29 |
| for a future 12 month
period conforming to (ii) above. If the | 30 |
| Commission's order
requires modifications in the tariff sheets | 31 |
| filed by the
public utility, the public utility shall have 7 | 32 |
| days following
the date of the order to notify the Commission | 33 |
| whether the
public utility will implement the modified tariffs | 34 |
| or elect to
continue its fuel or purchased gas adjustment |
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| clause in force
as though no order had been entered. The | 2 |
| Commission's order
shall provide for any reconciliation of | 3 |
| power supply costs or
gas supply costs, as the case may be, and | 4 |
| associated revenues
through the date that the public utility's | 5 |
| fuel or purchased
gas adjustment clause is eliminated. During | 6 |
| the 5 years
following the date of the Commission's order, a | 7 |
| public utility
whose fuel or purchased gas adjustment clause | 8 |
| has been
eliminated pursuant to this subsection shall not file | 9 |
| proposed
tariff sheets seeking, or otherwise petition the | 10 |
| Commission
for, reinstatement or adoption of a fuel or | 11 |
| purchased gas
adjustment clause. Nothing in this subsection (d) | 12 |
| shall be
construed as limiting the Commission's authority to | 13 |
| eliminate
a public utility's fuel adjustment clause or | 14 |
| purchased gas
adjustment clause in accordance with any other | 15 |
| applicable
provisions of this Act.
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| (e) Notwithstanding any contrary or inconsistent | 17 |
| provisions in
Section 9-201 of this Act, in subsection (a) of | 18 |
| this Section, or in
any rules promulgated by the Commission | 19 |
| pursuant
to subsection (g) of this Section, a public utility | 20 |
| providing
electric service to more than 1,000,000 customers in | 21 |
| this State may, within the
first 6 months after the
effective | 22 |
| date of this amendatory Act of 1997, file with the
Commission | 23 |
| proposed tariff sheets that eliminate, effective
January 1, | 24 |
| 1997, the public utility's fuel adjustment clause
without | 25 |
| adjusting its base rates, and such tariff sheets shall be
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| effective upon filing. To the extent the application of the | 27 |
| fuel
adjustment clause had resulted in net charges to customers | 28 |
| after
January 1, 1997, the utility shall also file a tariff | 29 |
| sheet that
provides for a refund stated on a per kilowatt-hour | 30 |
| basis of such
charges over a period not to exceed 6 months; | 31 |
| provided
however, that such refund shall not include the | 32 |
| proportional
amounts of taxes paid under the Use Tax Act, | 33 |
| Service Use Tax Act,
Service Occupation Tax Act, and Retailers' | 34 |
| Occupation Tax Act on
fuel used in generation. The Commission |
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| shall issue an order
within 45 days after the date of the | 2 |
| public utility's filing
approving or approving as modified such | 3 |
| tariff sheet. If the fuel
adjustment clause is eliminated | 4 |
| pursuant to this subsection, the
Commission shall not conduct | 5 |
| the annual hearings specified in the
last 3 sentences of | 6 |
| subsection (a) of this Section for the
utility for any period | 7 |
| after December 31, 1996 and prior to any
reinstatement of such | 8 |
| clause. A public utility whose fuel
adjustment clause has been | 9 |
| eliminated pursuant to this subsection
shall not file a | 10 |
| proposed tariff sheet seeking, or otherwise
petition the | 11 |
| Commission for, reinstatement of the fuel adjustment
clause | 12 |
| prior to January 1, 2007.
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| (f) Notwithstanding any contrary or inconsistent | 14 |
| provisions in Section
9-201 of this Act, in subsection (a) of | 15 |
| this Section, or in any rules or
regulations promulgated by the | 16 |
| Commission pursuant to subsection (g) of this
Section, a public | 17 |
| utility providing electric service to more than 500,000
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| customers but fewer than 1,000,000 customers in this State may, | 19 |
| within the
first
6 months after the effective date of this | 20 |
| amendatory Act of 1997, file with the
Commission proposed | 21 |
| tariff sheets that eliminate, effective January 1, 1997,
the | 22 |
| public utility's fuel adjustment clause and adjust its base | 23 |
| rates by the
amount necessary for the base fuel component of | 24 |
| the base rates to recover
91% of the public utility's average | 25 |
| fuel and power supply costs for the 2 most
recent years for | 26 |
| which the Commission, as of January 1, 1997, has issued final
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| orders in annual proceedings pursuant to subsection (a), where | 28 |
| the average fuel
and power supply costs per kilowatt-hour shall | 29 |
| be calculated as the sum of the
public utility's prudent and | 30 |
| allowable fuel and power supply costs as found by
the | 31 |
| Commission in the 2 proceedings divided by the public utility's | 32 |
| actual
jurisdictional kilowatt-hour sales for those 2 years, | 33 |
| provided, that such
tariff sheets shall be effective upon | 34 |
| filing. To the extent the application of
the fuel adjustment |
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| clause had resulted in net charges to customers after
January | 2 |
| 1, 1997, the utility shall also file a tariff sheet that | 3 |
| provides for a
refund stated on a per kilowatt-hour basis of | 4 |
| such charges over a period not to
exceed 6 months. Provided | 5 |
| however, that such refund shall not include the
proportional | 6 |
| amounts of taxes paid under the Use Tax Act, Service Use Tax | 7 |
| Act,
Service Occupation Tax Act, and Retailers' Occupation Tax | 8 |
| Act on fuel used in
generation. The Commission shall issue an | 9 |
| order within 45 days after the date
of the public utility's | 10 |
| filing approving or approving as modified such tariff
sheet. If | 11 |
| the fuel adjustment clause is eliminated pursuant to this
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| subsection, the Commission shall not conduct the annual | 13 |
| hearings specified in
the last 3 sentences of subsection (a) of | 14 |
| this Section for the utility for any
period after December 31, | 15 |
| 1996 and prior to any reinstatement of such clause.
A public | 16 |
| utility whose fuel adjustment clause has been eliminated | 17 |
| pursuant to
this subsection shall not file a proposed tariff | 18 |
| sheet seeking, or otherwise
petition the Commission for, | 19 |
| reinstatement of the fuel adjustment clause prior
to January 1, | 20 |
| 2007.
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| (g) The Commission shall have authority to promulgate rules | 22 |
| and
regulations to
carry out the provisions of this Section.
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| (h) Any gas utility may enter into a 20-year supply | 24 |
| contract with any company for synthetic natural gas produced | 25 |
| from coal through the gasification process if the company has | 26 |
| commenced construction of a coal gasification facility by July | 27 |
| 1, 2008. The cost for the synthetic natural gas is reasonable | 28 |
| and prudent and recoverable through the purchased gas | 29 |
| adjustment clause for years one through 10 of the contract if: | 30 |
| (i) the only coal used in the gasification process has high | 31 |
| volatile bituminous rank and greater than 1.7 pounds of sulfur | 32 |
| per million Btu content; (ii) at the time the contract term | 33 |
| commences, the price per million Btu does not exceed $5 in 2004 | 34 |
| dollars, adjusted annually based on the change in the Annual |
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| Consumer Price Index for All Urban Consumers for the Midwest | 2 |
| Region as published in April by the United States Department of | 3 |
| Labor, Bureau of Labor Statistics (or a suitable Consumer Price | 4 |
| Index calculation if this Consumer Price Index is not | 5 |
| available) for the previous calendar year; provided that the | 6 |
| price per million Btu shall not exceed $5.50 at any time during | 7 |
| the contract; (iii) the utility's aggregate long-term supply | 8 |
| contracts for the purchase of synthetic natural gas produced | 9 |
| from coal through the gasification process does not exceed 25% | 10 |
| of the annual system supply requirements of the utility at the | 11 |
| time the contract is entered into; and (iv) the contract is | 12 |
| entered into within one year after the effective date of this | 13 |
| amendatory Act of the 94th General Assembly and terminates 20 | 14 |
| years after the commencement of the production of synthetic | 15 |
| natural gas. The contract shall provide that if, at any time | 16 |
| during years 11 through 20 of the contract, the Commission | 17 |
| determines that the cost for the synthetic natural gas under | 18 |
| the contract is not reasonable and prudent, then the company | 19 |
| shall reimburse the utility for the difference between the cost | 20 |
| deemed reasonable and prudent by the Commission and the cost | 21 |
| imposed under the contract. | 22 |
| (i) If a gas utility or an affiliate of a gas utility has | 23 |
| an ownership interest in any entity that produces or sells | 24 |
| synthetic natural gas, Article VII of this Act shall apply.
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| (Source: P.A. 92-537, eff. 6-6-02.)
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| Section 99. Effective date. This Act takes effect upon | 27 |
| becoming law.".
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