Full Text of SB2695 95th General Assembly
SB2695sam001 95TH GENERAL ASSEMBLY
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Sen. Don Harmon
Filed: 4/11/2008
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| AMENDMENT TO SENATE BILL 2695
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| AMENDMENT NO. ______. Amend Senate Bill 2695 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Department of Commerce and Economic | 5 |
| Opportunity Law of the
Civil Administrative Code of Illinois is | 6 |
| amended by adding Section 605-975 as follows: | 7 |
| (20 ILCS 605/605-975 new) | 8 |
| Sec. 605-975. On-bill financing of energy efficiency, | 9 |
| renewable energy, and demand response resources. | 10 |
| (a) The Illinois General Assembly finds that Illinois homes | 11 |
| and businesses have the potential to save 25% or more of energy | 12 |
| now used through conservation and by implementation of | 13 |
| cost-effective energy efficiency, renewable energy, and demand | 14 |
| response measures. However, persistent barriers in the markets | 15 |
| for these measures, including lack of information and lack of | 16 |
| capital, prevent many Illinois consumers and businesses from |
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| making economical investments in them. It is the purpose of | 2 |
| this Section to help overcome those barriers, to assist energy | 3 |
| consumers in Illinois to make the most efficient use of energy | 4 |
| resources, and to maximize the amount of value that is | 5 |
| extracted from electricity and gas delivered by utilities in | 6 |
| the State, by the creation of energy efficiency, renewable | 7 |
| energy, and demand response resources on-bill financing | 8 |
| programs. Programs created pursuant to this Section will allow | 9 |
| utility customers to obtain energy efficiency products and | 10 |
| services and renewable energy and demand response resources | 11 |
| with no required initial payment, and to pay the cost of those | 12 |
| products and services and resources over time on a utility | 13 |
| bill. | 14 |
| (b) For purposes of this Section: | 15 |
| "Capital provider" means an entity that provides funds to | 16 |
| pay the initial costs of the energy efficiency measures and | 17 |
| demand response resources installed through the on-bill | 18 |
| financing program created pursuant to this Section. | 19 |
| "Certification agent" means an entity designated by the | 20 |
| Department to implement a system of energy efficiency and | 21 |
| demand response on-bill financing programs. | 22 |
| "Certified contractor" means a person authorized by a | 23 |
| certification agent to identify or develop, market, and install | 24 |
| energy efficiency measures and renewable energy and demand | 25 |
| response resources in programs established under this Section. | 26 |
| "Cost-effective measures" means those energy efficiency |
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| products and services, and those renewable energy and demand | 2 |
| response resources, identified by the certification agent to | 3 |
| have estimated electricity or gas savings, which are determined | 4 |
| by rates in effect at the time of purchase, that are sufficient | 5 |
| to cover the costs of implementing the measures, including | 6 |
| financing charges and program fees, through payments of no more | 7 |
| than three-quarters of the estimated savings and over a period | 8 |
| no greater than three-quarters of the estimated useful life of | 9 |
| the measure. Payment for a measure made by a customer at the | 10 |
| time of installation may be deducted from the cost of the | 11 |
| measure in determining whether the measure is cost-effective. | 12 |
| "Demand response resources" means tools and devices, | 13 |
| including recording-demand meters, that allow a customer to | 14 |
| better control energy use in response to price changes. | 15 |
| "Department" means the Department of Commerce and Economic | 16 |
| Opportunity. | 17 |
| "Energy efficiency" means the reduction in energy usage by | 18 |
| installation of energy-saving devices, materials, appliances | 19 |
| or processes, while maintaining comparable light, power, heat, | 20 |
| and cooling previously enjoyed. | 21 |
| "Energy efficiency, renewable energy, and demand response | 22 |
| on-bill financing system" means a market-based system through | 23 |
| which electric and gas utility customers may purchase | 24 |
| cost-effective energy efficiency measures and demand response | 25 |
| resources with no required upfront payment, and pay the cost of | 26 |
| the energy efficiency measures and demand response resources |
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| over time on their electric or gas bill after independent | 2 |
| certification that the measures and resources are appropriate | 3 |
| and that estimated savings will exceed payments. The system | 4 |
| assigns the obligation of repayment for permanent measures that | 5 |
| continue to provide benefits of energy savings, and for | 6 |
| resources, to the meter location | 7 |
| "Energy efficiency, renewable energy, and demand response | 8 |
| tariff" means a tariff developed under this Section that | 9 |
| defines the requirements for and operational arrangements | 10 |
| between and among purchasers of energy efficiency products and | 11 |
| services and renewable energy and demand response resources, | 12 |
| sellers and installers of the products and services and | 13 |
| resources, capital providers who provide financing for the | 14 |
| initial costs of these products and services and resources, | 15 |
| including vendors who finance the sale and installation of | 16 |
| their products, services, and resources, public utilities, and | 17 |
| certification agents. | 18 |
| "Permanent measures" means energy efficiency, renewable | 19 |
| energy and demand response measures that, as determined by the | 20 |
| certification agent, are likely to remain in the premises where | 21 |
| installed. | 22 |
| (c) Not later than January 2, 2009, the Department, in | 23 |
| cooperation with the Illinois Commerce Commission, shall | 24 |
| establish one or more pilot programs through which certain | 25 |
| customers of a public utility may be eligible to have | 26 |
| cost-effective energy efficiency, renewable energy, or demand |
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| response measures that may be installed at the customer's | 2 |
| location by a certified contractor. Those customers shall not | 3 |
| be required to make any up-front payment for the installation, | 4 |
| and may pay the cost of the energy efficiency, renewable | 5 |
| energy, or demand response measures over time on a utility | 6 |
| bill. | 7 |
| No later than January 2, 2012, the Department shall make an | 8 |
| energy efficiency, renewable energy, and demand response | 9 |
| on-bill financing system available to all public utility | 10 |
| customers in the State. The Department shall monitor and | 11 |
| evaluate the effects of the energy efficiency, renewable | 12 |
| energy, and demand response measures installed pursuant to the | 13 |
| programs established under this Section, and shall issue a | 14 |
| report to the Governor and General Assembly on its findings | 15 |
| every 2 years beginning in January 2011. This report shall | 16 |
| describe, at a minimum, the nature of the measures installed, | 17 |
| estimated energy and costs savings from the measures, the | 18 |
| effects of reduced energy use on utility costs, and the effects | 19 |
| of reduced energy use on the environment. | 20 |
| (d) Within 30 days after the effective date of this | 21 |
| amendatory Act of the 95th General Assembly, the Department | 22 |
| shall convene and provide staff support to an ad hoc task force | 23 |
| comprised of the Illinois Commerce Commission, governments | 24 |
| from municipalities with more than 1,000,000 residents, | 25 |
| governments from municipalities with less than 1,000,000 | 26 |
| residents, representatives of consumer, utility, energy |
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| efficiency, renewable energy, and demand response resource | 2 |
| vendors, financial institutions, and other relevant interests, | 3 |
| which shall advise the Department on the design of an energy | 4 |
| efficiency, renewable energy, and demand response on-bill | 5 |
| financing system including, but not limited to, the following | 6 |
| considerations: | 7 |
| (1) criteria for selection of certification agents to | 8 |
| be appointed by the Department; | 9 |
| (2) guidelines for financing of measures and resources | 10 |
| installed under an energy efficiency, renewable energy, | 11 |
| and demand response resources tariff; | 12 |
| (3) criteria and standards for qualified | 13 |
| cost-effective energy efficiency, renewable energy and | 14 |
| demand response resources; | 15 |
| (4) qualifications of vendors that will market and | 16 |
| install efficiency products and services and renewable | 17 |
| energy and demand response resources; | 18 |
| (5) rules for recovering costs for cost-effective | 19 |
| energy efficiency measures, renewable energy, and demand | 20 |
| response resources when the property where the measures or | 21 |
| resources have been implemented transfers ownership; | 22 |
| (6) terms for the establishment of energy efficiency, | 23 |
| renewable energy, and demand response resources tariffs in | 24 |
| markets throughout the State; | 25 |
| (7) sample contracts and agreements necessary to | 26 |
| implement energy efficiency, renewable energy, and demand |
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| response resources tariffs throughout the State; | 2 |
| (8) a recommended budget and funding sources to cover | 3 |
| the costs to establish and operate an energy efficiency, | 4 |
| renewable energy, and demand response resources on-bill | 5 |
| financing system throughout the State; and | 6 |
| (9) cost estimates and plans to modify utility billing | 7 |
| systems to include billing and collection capabilities for | 8 |
| measures and resources installed under an energy | 9 |
| efficiency, renewable energy, and demand response tariff. | 10 |
| (e) The Department shall designate, and subject to | 11 |
| appropriations for this purpose shall contract with, | 12 |
| certification agents to implement energy efficiency, renewable | 13 |
| energy, and demand response on-bill financing systems. A | 14 |
| certification agent designated by the Department under this | 15 |
| Section: | 16 |
| (1) may be for a specified geographic areas of the | 17 |
| State, or for specific classes of customers, or both; | 18 |
| (2) shall be qualified by relevant experience and | 19 |
| expertise; and | 20 |
| (3) shall have general responsibility for the | 21 |
| implementation and operation of an energy efficiency, | 22 |
| renewable energy, and demand response resources on-bill | 23 |
| financing system, including such duties as the Department | 24 |
| assigns it through contract. | 25 |
| Section 10. The Public Utilities Act is amended by adding |
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| Sections 4-204.5 and 8-104 as follows: | 2 |
| (220 ILCS 5/4-204.5 new) | 3 |
| Sec. 4-204.5. Energy efficiency, renewable energy, and | 4 |
| demand response on-bill financing programs. | 5 |
| (a) The Commission shall, not later than November 1, 2008, | 6 |
| issue an order or orders that: (i) will allow certain customers | 7 |
| of a public utility in Illinois to purchase cost-effective | 8 |
| energy efficiency measures, renewable energy, and demand | 9 |
| response resources under an energy efficiency and demand | 10 |
| response resources tariff as part of a pilot program | 11 |
| established under Section 605-975 of the Department of Commerce | 12 |
| and Economic Opportunity Law of the Civil Administrative Code | 13 |
| of Illinois; and (ii) require each public utility to file and | 14 |
| maintain an energy efficiency, renewable energy, and demand | 15 |
| response tariff or tariffs in accordance with this Section no | 16 |
| later than January 2, 2010. | 17 |
| (b) Each public utility shall file and maintain an energy | 18 |
| efficiency, renewable energy, and demand response tariff or | 19 |
| tariffs in accordance with this Section and any applicable | 20 |
| order of the Commission to allow any of its customers to pay | 21 |
| over time on the utility bill for cost-effective energy | 22 |
| efficiency measures, renewable energy, demand response | 23 |
| resources as provided in Section 605-975 of the Department of | 24 |
| Commerce and Economic Opportunity Law of the Civil | 25 |
| Administrative Code of Illinois. An electric utility may |
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| include gas saving measures under its energy efficiency, | 2 |
| renewable energy, and demand response resources tariff, and a | 3 |
| gas distribution utility may include electricity saving | 4 |
| measures under its energy efficiency, renewable energy, and | 5 |
| demand response resources tariff. Disconnection for | 6 |
| non-payment and treatment of bad debt under such a tariff will | 7 |
| be subject to the same rules and regulations as other tariffs | 8 |
| offered by the utility. To reduce bad debt, the Commission may | 9 |
| direct public utilities to extend the payment term as necessary | 10 |
| to recover any missed payments or costs needed to repair | 11 |
| measures providing the payment term never exceeds the useful | 12 |
| life of the measure. | 13 |
| (c) A public utility shall be entitled to recover | 14 |
| reasonable costs incurred in complying with this Section and | 15 |
| Section 605-975 of the Department of Commerce and Economic | 16 |
| Opportunity Law of the Civil Administrative Code of Illinois. | 17 |
| (220 ILCS 5/8-104 new)
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| Sec. 8-104. Natural gas energy efficiency programs. | 19 |
| (a) It is the policy of the State that natural gas | 20 |
| utilities are required to use cost-effective energy efficiency | 21 |
| to reduce direct and indirect costs to consumers. It serves the | 22 |
| public interest to allow gas utilities to recover costs for | 23 |
| reasonably and prudently incurred expenses for energy | 24 |
| efficiency. | 25 |
| (b) For purposes of this Section, "cost-effective" means |
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| that the measures satisfy the total resource cost test as | 2 |
| defined in this Section, and "energy efficiency" means measures | 3 |
| that reduce the amount of gas required to achieve a given end | 4 |
| use. | 5 |
| For purposes of this Section only, "total resource cost | 6 |
| test" means a standard that is met if, for an investment in | 7 |
| energy efficiency, the benefit-cost ratio is greater than one. | 8 |
| The benefit-cost ratio is the ratio of the net present value of | 9 |
| the total benefits of the program to the net present value of | 10 |
| the total costs as calculated over the lifetime of the | 11 |
| measures. The total resource cost test compares the sum of | 12 |
| avoided natural gas utility costs, representing the benefits | 13 |
| that accrue to the system and the participant in the delivery | 14 |
| of those efficiency programs, to the sum of all incremental | 15 |
| costs of end-use measures that are implemented due to the | 16 |
| program (including both utility and participant | 17 |
| contributions), plus costs to administer, deliver, and | 18 |
| evaluate each demand-side program, to quantify the net savings | 19 |
| obtained by substituting the demand-side program for supply | 20 |
| resources. In calculating avoided costs of power and energy | 21 |
| that the gas utility would otherwise have had to acquire, | 22 |
| reasonable estimates shall include financial costs likely to be | 23 |
| imposed by future regulations and legislation on emissions of | 24 |
| greenhouse gases. Provisions include an oversight and | 25 |
| evaluation process that shall periodically monitor and develop | 26 |
| data on the cost-effectiveness and actual productivity of |
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| demand-side efficiency and conservation programs. The | 2 |
| low-income measures described in item (4) of subsection (f) of | 3 |
| this Section shall not be required to meet the total resource | 4 |
| cost test. | 5 |
| (c) Natural gas utilities shall implement cost-effective | 6 |
| energy efficiency measures to meet the following incremental | 7 |
| annual energy savings goals, based upon the amount of gas | 8 |
| delivered in the immediately preceding calendar year: | 9 |
| (1) 0.2% of the total annual Mcf (1,000 cubic feet of | 10 |
| gas) delivered in 2009; | 11 |
| (2) 0.4% of the total annual Mcf delivered in 2010; | 12 |
| (3) 0.6% of the total annual Mcf delivered in 2011; | 13 |
| (4) 0.8% of the total annual Mcf delivered in 2012; | 14 |
| (5) 1% of the total annual Mcf delivered in 2013; | 15 |
| (6) 1.4% of the total annual Mcf delivered in 2014; | 16 |
| (7) 1.8% of the total annual Mcf delivered in 2015; and | 17 |
| (8) 2% of the total annual Mcf delivered in 2016; and | 18 |
| each year thereafter. | 19 |
| (d) Notwithstanding the requirements of subsection (c) of | 20 |
| this Section, a natural gas utility may reduce the amount of | 21 |
| energy efficiency resources it procures to meet energy savings | 22 |
| goals in any single year by an amount necessary to limit the | 23 |
| estimated average increase due to the cost of these resources | 24 |
| included in the amounts paid by retail customers in connection | 25 |
| with gas service to no more than 0.5% of the amount estimated | 26 |
| to have been paid by such customers during the preceding |
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| calendar year procurement, with such limit increasing by 0.5% | 2 |
| in each of the years 2010 through 2012, for a maximum cap on | 3 |
| the allowed estimated average increase due to the cost of these | 4 |
| resources of 2%. Three years after the date the Commission | 5 |
| approves the initial energy efficiency plan filings, the | 6 |
| Commission shall review the rate limitation and report to the | 7 |
| General Assembly its findings as to whether the rate cap unduly | 8 |
| constrains the procurement of energy efficiency resources that | 9 |
| would be cost-effective. | 10 |
| (e) Natural gas public utilities shall be responsible for | 11 |
| overseeing the design, development, and filing of their | 12 |
| efficiency plans with the Commission. Those public utilities | 13 |
| shall implement 75% of the energy efficiency programs approved | 14 |
| by the Commission and may, as part of that implementation, | 15 |
| outsource various aspects of program development and | 16 |
| implementation. The remaining 25% of those energy efficiency | 17 |
| measures approved by the Commission shall be implemented by the | 18 |
| Department of Commerce and Economic Opportunity, and must be | 19 |
| designed in conjunction with the utility and the filing | 20 |
| process. The Department may outsource development and | 21 |
| implementation of energy efficiency measures. A minimum of 10% | 22 |
| of the entire portfolio of cost-effective energy efficiency | 23 |
| measures shall be procured from units of local government, | 24 |
| municipal corporations, school districts, and community | 25 |
| college districts. The Department shall coordinate the | 26 |
| implementation of these measures.
The apportionment of the |
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| dollars to cover the costs to implement the Department's share | 2 |
| of the portfolio of energy efficiency measures shall be made to | 3 |
| the Department once the Department has executed grants or | 4 |
| contracts for energy efficiency measures and provided | 5 |
| supporting documentation for those grants and the contracts to | 6 |
| the utility.
The details of the measures implemented by the | 7 |
| Department shall be submitted by the Department to the | 8 |
| Commission in connection with the utility's filing regarding | 9 |
| the energy efficiency measures that the utility implements.
A | 10 |
| gas utility providing approved energy efficiency measures in | 11 |
| the State shall be permitted to recover costs of those measures | 12 |
| through an automatic adjustment clause tariff filed with and | 13 |
| approved by the Commission. The tariff shall be established | 14 |
| outside the context of a general rate case. Each year the | 15 |
| Commission shall initiate a review to reconcile any amounts | 16 |
| collected with the actual costs and to determine the required | 17 |
| adjustment to the annual tariff factor to match annual | 18 |
| expenditures. | 19 |
| Each utility shall include in its recovery of costs the | 20 |
| costs estimated for both the utility's and the Department's | 21 |
| implementation of energy efficiency measures. Costs collected | 22 |
| by the utility for measures implemented by the Department shall | 23 |
| be submitted to the Department pursuant to Section 605-323 of | 24 |
| the Civil Administrative Code of Illinois and shall be used by | 25 |
| the Department solely for the purpose of implementing these | 26 |
| measures. A utility shall not be required to advance any moneys |
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| to the Department, but only to forward such funds it has | 2 |
| collected. The Department shall report to the Commission on an | 3 |
| annual basis regarding the costs actually incurred by the | 4 |
| Department in the implementation of the measures. Any changes | 5 |
| to the costs of energy efficiency measures as a result of plan | 6 |
| modifications shall be appropriately reflected in amounts | 7 |
| recovered by the utility and turned over to the Department.
The | 8 |
| portfolio of measures administered by both the utilities and | 9 |
| the Department shall, in combination, be designed to achieve | 10 |
| the annual savings targets described in subsection (c) of this | 11 |
| Section, as modified by subsection (d) of this Section. | 12 |
| The utility and the Department shall agree upon a | 13 |
| reasonable portfolio of measures and determine the measurable | 14 |
| corresponding percentage of the savings goals associated with | 15 |
| measures implemented by the utility or Department. | 16 |
| No utility shall be assessed a penalty under subsection (f) | 17 |
| of this Section for failure to make a timely filing if that | 18 |
| failure is the result of a lack of agreement with the | 19 |
| Department with respect to the allocation of responsibilities | 20 |
| or related costs or target assignments. In that case, the | 21 |
| Department and the utility shall file their respective plans | 22 |
| with the Commission and the Commission shall determine an | 23 |
| appropriate division of measures and programs that meets the | 24 |
| requirements of this Section. | 25 |
| If the Department is unable to meet incremental annual | 26 |
| performance goals for the portion of the portfolio implemented |
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| by the Department, then the utility and the Department shall | 2 |
| jointly submit a modified filing to the Commission explaining | 3 |
| the performance shortfall and recommending an appropriate | 4 |
| course going forward, including any program modifications that | 5 |
| may be appropriate in light of the evaluations conducted under | 6 |
| item (7) of subsection (f) of this Section. In this case, the | 7 |
| utility obligation to collect the Department's costs and turn | 8 |
| over those funds to the Department under this subsection (e) | 9 |
| shall continue only if the Commission approves the | 10 |
| modifications to the plan proposed by the Department. | 11 |
| (f) No later than November 15, 2008, each gas utility shall | 12 |
| file an energy efficiency and demand-response plan with the | 13 |
| Commission to meet the energy efficiency and demand-response | 14 |
| standards for 2008 through 2010. Every 3 years thereafter, each | 15 |
| utility shall file an energy efficiency plan with the | 16 |
| Commission. If a utility does not file a plan, it shall face a | 17 |
| penalty of $100,000 per day until the plan is filed. Each | 18 |
| utility's plan shall set forth the utility's proposals to meet | 19 |
| the utility's portion of the energy efficiency standards | 20 |
| identified in subsection (c) of this Section, as modified by | 21 |
| subsection (d) of this Section, taking into account the unique | 22 |
| circumstances of the utility's service territory. The | 23 |
| Commission shall seek public comment on the utility's plan and | 24 |
| shall issue an order approving or disapproving each plan within | 25 |
| 3 months after its submission. If the Commission disapproves a | 26 |
| plan, the Commission shall, within 30 days, describe in detail |
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| the reasons for the disapproval and describe a path by which | 2 |
| the utility may file a revised draft of the plan to address the | 3 |
| Commission's concerns satisfactorily. If the utility does not | 4 |
| refile with the Commission within 60 days after the | 5 |
| disapproval, the utility shall be subject to penalties at a | 6 |
| rate of $100,000 per day until the plan is filed. This process | 7 |
| shall continue, and penalties shall accrue, until the utility | 8 |
| has successfully filed a portfolio of energy efficiency | 9 |
| measures. Penalties shall be deposited into the Energy | 10 |
| Efficiency Trust Fund. In submitting proposed energy | 11 |
| efficiency plans and funding levels to meet the savings goals | 12 |
| adopted by this Act the utility shall: | 13 |
| (1) Demonstrate that its proposed energy efficiency | 14 |
| and demand-response measures will achieve the requirements | 15 |
| that are identified in subsection (c) of this Section, as | 16 |
| modified by subsection (d) of this Section. | 17 |
| (2) Present specific proposals to implement new | 18 |
| building and appliance standards that have been placed into | 19 |
| effect. | 20 |
| (3) Present estimates of the total amount paid for gas | 21 |
| service expressed on a per kilowatthour basis associated | 22 |
| with the proposed portfolio of measures designed to meet | 23 |
| the requirements that are identified in subsection (c) of | 24 |
| this Section, as modified by subsection (d) of this | 25 |
| Section. | 26 |
| (4) Coordinate with the Department and the Department |
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| of Healthcare and Family Services to present a portfolio of | 2 |
| energy efficiency measures targeted to households at or | 3 |
| below 150% of the poverty level at a level proportionate to | 4 |
| those households' share of total annual utility revenues in | 5 |
| Illinois. | 6 |
| (5) Demonstrate that its overall portfolio of energy | 7 |
| efficiency and demand-response measures, not including | 8 |
| programs covered by item (4) of this subsection (f), are | 9 |
| cost-effective using the total resource cost test and | 10 |
| represent a diverse cross-section of opportunities for | 11 |
| customers of all rate classes to participate in the | 12 |
| programs. | 13 |
| (6) Include a proposed cost-recovery tariff mechanism | 14 |
| to fund the proposed energy efficiency and demand-response | 15 |
| measures and to ensure the recovery of the prudently and | 16 |
| reasonably incurred costs of Commission-approved programs. | 17 |
| (7) Provide for an annual independent evaluation of the | 18 |
| performance of the cost-effectiveness of the utility's | 19 |
| portfolio of measures and the Department's portfolio of | 20 |
| measures, as well as a full review of the 3-year results of | 21 |
| the broader net program impacts and, to the extent | 22 |
| practical, for adjustment of the measures on a | 23 |
| going-forward basis as a result of the evaluations. The | 24 |
| resources dedicated to evaluation shall not exceed 3% of | 25 |
| portfolio resources in any given year. | 26 |
| (g) No more than 3% of energy efficiency and |
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| demand-response program revenue may be allocated for | 2 |
| demonstration of breakthrough equipment and devices. | 3 |
| (h) This Section does not apply to a gas utility that on | 4 |
| December 31, 2006 provided gas service to fewer than 100,000 | 5 |
| customers in Illinois. | 6 |
| (i) A utility company that implements energy efficiency | 7 |
| programs, and that has a conservation stabilization adjustment | 8 |
| rider approved by the Commission, shall be entitled to recover | 9 |
| lost revenues that derive from customer implementation of | 10 |
| energy efficiency measures. The utility shall submit an annual | 11 |
| report to the Commission to reconcile its actual lost revenues | 12 |
| with customer adoption of energy efficiency measures. The | 13 |
| report shall include whatever information the Commission may | 14 |
| require. | 15 |
| For purposes of this subsection (i), "conservation | 16 |
| stabilization adjustment" means a utility tariff mechanism | 17 |
| intended to recover the annual lost utility revenue from | 18 |
| successful customer participation in energy efficiency | 19 |
| programs. Annual lost revenue shall be calculated by | 20 |
| multiplying (1) the volumetric delivery charges established in | 21 |
| the utility's last rate case by applicable rate classification | 22 |
| by (2) the deemed volumetric energy reductions for each energy | 23 |
| efficiency measure enumerated in the utility's energy | 24 |
| efficiency plan and successfully implemented by customers of | 25 |
| the utility. The Commission may approve a similar, reasonable | 26 |
| method for determining lost utility revenues that derive from |
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LRB095 05628 MJR 48686 a |
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| programs implemented under this Section. | 2 |
| (j) If a gas utility fails to meet the efficiency standard | 3 |
| specified in subsection (c) of this Section, as modified by | 4 |
| subsection (d) of this Section, 2 years after the specified | 5 |
| year and each year thereafter, it shall make a contribution to | 6 |
| the Low-Income Home Energy Assistance Program. The combined | 7 |
| total liability for failure to meet the goal shall be | 8 |
| $1,000,000, which shall be assessed as follows: a large gas | 9 |
| utility shall pay $665,000 and a medium gas utility shall pay | 10 |
| $335,000. | 11 |
| For purposes of this subsection (j), (1) a "large gas | 12 |
| utility" is a gas utility that, on December 31, 2006, served | 13 |
| more than 2,000,000 gas customers in Illinois; (2) a "medium | 14 |
| gas utility" is a gas utility that, on December 31, 2005, | 15 |
| served 2,000,000 or fewer but more than 100,000 gas customers | 16 |
| in Illinois; and (3) Illinois gas utilities that are affiliated | 17 |
| by virtue of a common parent company are considered a single | 18 |
| gas utility. | 19 |
| (k) No utility shall be deemed to have failed to meet the | 20 |
| energy efficiency standards to the extent any failure is due to | 21 |
| a failure of the Department.
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| Section 99. Effective date. This Act takes effect upon | 23 |
| becoming law.".
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