Full Text of HB0690 97th General Assembly
HB0690ham001 97TH GENERAL ASSEMBLY | Rep. Kevin A. McCarthy Filed: 10/25/2011
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| 1 | | AMENDMENT TO HOUSE BILL 690
| 2 | | AMENDMENT NO. ______. Amend House Bill 690 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Findings. The General Assembly finds that: | 5 | | (1) subsection (b-10) of Section 16-108.5 of this | 6 | | amendatory Act of the 97th General Assembly provides
| 7 | | substantial customer assistance programs for low-income | 8 | | customers, senior citizens, active
members of the armed | 9 | | services and reserved forces, and disabled veterans; | 10 | | (2) subsection (b) of Section 16-108.5 of this | 11 | | amendatory Act of the 97th General Assembly provides for
| 12 | | infrastructure improvements designed to reduce outages due | 13 | | to storms; | 14 | | (3) subsections (f) and (f-5) of Section 16-108.5 of | 15 | | this amendatory Act of the 97th General Assembly require | 16 | | improvement in a variety of performance metrics and impose | 17 | | penalties on the electric utilities for
failure to achieve |
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| 1 | | the statutorily set goals;
| 2 | | (4) Black & Veatch, a global engineering, consulting | 3 | | and construction company, performed an independent | 4 | | evaluation of Commonwealth Edison Company's Advanced | 5 | | Metering Infrastructure ("AMI") pilot program and | 6 | | concluded that the cost savings and benefits to ComEd | 7 | | customers of full AMI deployment are nearly 3 times greater | 8 | | than the cost to deploy AMI, and further that AMI | 9 | | deployment is estimated to result in a net savings to ComEd
| 10 | | customers of $2.8 billion over 20 years; and
| 11 | | (5) this amendatory Act of the 97th General Assembly | 12 | | confers substantial benefits upon the State's electric
| 13 | | utility customers. | 14 | | Section 5. If and only if Senate Bill 1652 of the 97th | 15 | | General Assembly becomes law, then the Public Utilities Act is | 16 | | amended by changing Section 16-107.5, 16-108.5, 16-108.6, | 17 | | 16-108.7, and 16-128 as follows: | 18 | | (220 ILCS 5/16-107.5)
| 19 | | Sec. 16-107.5. Net electricity metering. | 20 | | (a) The Legislature finds and declares that a program to | 21 | | provide net electricity
metering, as defined in this Section,
| 22 | | for eligible customers can encourage private investment in | 23 | | renewable energy
resources, stimulate
economic growth, enhance | 24 | | the continued diversification of Illinois' energy
resource |
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| 1 | | mix, and protect
the Illinois environment.
| 2 | | (b) As used in this Section, (i) "eligible customer" means | 3 | | a retail
customer that owns or operates a
solar, wind, or other | 4 | | eligible renewable electrical generating facility with a rated | 5 | | capacity of not more than
2,000 kilowatts that is
located on | 6 | | the customer's premises and is intended primarily to offset the | 7 | | customer's
own electrical requirements; (ii) "electricity | 8 | | provider" means an electric utility or alternative retail | 9 | | electric supplier; (iii) "eligible renewable electrical | 10 | | generating facility" means a generator powered by solar | 11 | | electric energy, wind, dedicated crops grown for electricity | 12 | | generation, agricultural residues, untreated and unadulterated | 13 | | wood waste, landscape trimmings, livestock manure, anaerobic | 14 | | digestion of livestock or food processing waste, fuel cells or | 15 | | microturbines powered by renewable fuels, or hydroelectric | 16 | | energy; and (iv) "net electricity metering" (or "net metering") | 17 | | means the
measurement, during the
billing period applicable to | 18 | | an eligible customer, of the net amount of
electricity supplied | 19 | | by an
electricity provider to the customer's premises or | 20 | | provided to the electricity provider by the customer.
| 21 | | (c) A net metering facility shall be equipped with metering | 22 | | equipment that can measure the flow of electricity in both | 23 | | directions at the same rate. | 24 | | (1) For eligible customers whose electric service has | 25 | | not been declared competitive pursuant to Section 16-113 of | 26 | | this Act and whose electric delivery service is provided |
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| 1 | | and measured on a kilowatt-hour basis and electric supply | 2 | | service is not provided based on hourly pricing, this shall | 3 | | typically be accomplished through use of a single, | 4 | | bi-directional meter. If the eligible customer's existing | 5 | | electric revenue meter does not meet this requirement, the | 6 | | electricity provider shall arrange for the local electric | 7 | | utility or a meter service provider to install and maintain | 8 | | a new revenue meter at the electricity provider's expense. | 9 | | (2) For eligible customers whose electric service has | 10 | | not been declared competitive pursuant to Section 16-113 of | 11 | | this Act and whose electric delivery service is provided | 12 | | and measured on a kilowatt demand basis and electric supply | 13 | | service is not provided based on hourly pricing, this shall | 14 | | typically be accomplished through use of a dual channel | 15 | | meter capable of measuring the flow of electricity both | 16 | | into and out of the customer's facility at the same rate | 17 | | and ratio. If such customer's existing electric revenue | 18 | | meter does not meet this requirement, then the electricity | 19 | | provider shall arrange for the local electric utility or a | 20 | | meter service provider to install and maintain a new | 21 | | revenue meter at the electricity provider's expense. | 22 | | (3) For all other eligible customers, the electricity | 23 | | provider may arrange for the local electric utility or a | 24 | | meter service provider to install and maintain metering | 25 | | equipment capable of measuring the flow of electricity both | 26 | | into and out of the customer's facility at the same rate |
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| 1 | | and ratio, typically through the use of a dual channel | 2 | | meter. If the eligible customer's existing electric | 3 | | revenue meter does not meet this requirement, then the | 4 | | costs of installing such equipment shall be paid for by the | 5 | | customer.
| 6 | | (d) An electricity provider shall
measure and charge or | 7 | | credit for the net
electricity supplied to eligible customers | 8 | | or provided by eligible customers whose electric service has | 9 | | not been declared competitive pursuant to Section 16-113 of the | 10 | | Act and whose electric delivery service is provided and | 11 | | measured on a kilowatt-hour basis and electric supply service | 12 | | is not provided based on hourly pricing in
the following | 13 | | manner:
| 14 | | (1) If the amount of electricity used by the customer | 15 | | during the billing
period exceeds the
amount of electricity | 16 | | produced by the customer, the electricity provider shall | 17 | | charge the customer for the net electricity supplied to and | 18 | | used
by the customer as provided in subsection (e-5) of | 19 | | this Section.
| 20 | | (2) If the amount of electricity produced by a customer | 21 | | during the billing period exceeds the amount of electricity | 22 | | used by the customer during that billing period, the | 23 | | electricity provider supplying that customer shall apply a | 24 | | 1:1 kilowatt-hour credit to a subsequent bill for service | 25 | | to the customer for the net electricity supplied to the | 26 | | electricity provider. The electricity provider shall |
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| 1 | | continue to carry over any excess kilowatt-hour credits | 2 | | earned and apply those credits to subsequent billing | 3 | | periods to offset any customer-generator consumption in | 4 | | those billing periods until all credits are used or until | 5 | | the end of the annualized period.
| 6 | | (3) At the end of the year or annualized over the | 7 | | period that service is supplied by means of net metering, | 8 | | or in the event that the retail customer terminates service | 9 | | with the electricity provider prior to the end of the year | 10 | | or the annualized period, any remaining credits in the | 11 | | customer's account shall expire.
| 12 | | (d-5) An electricity provider shall measure and charge or | 13 | | credit for the net electricity
supplied to eligible customers | 14 | | or provided by eligible customers whose electric service has | 15 | | not
been declared competitive pursuant to Section 16-113 of | 16 | | this Act and whose electric delivery
service is provided and | 17 | | measured on a kilowatt-hour basis and electric supply service | 18 | | is provided
based on hourly pricing in the following manner: | 19 | | (1) If the amount of electricity used by the customer | 20 | | during any hourly period exceeds the amount of electricity | 21 | | produced by the customer, the electricity provider shall | 22 | | charge the customer for the net electricity supplied to and | 23 | | used by the customer according to the terms of the contract | 24 | | or tariff to which the same customer would be assigned to | 25 | | or be eligible for if the customer was not a net metering | 26 | | customer. |
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| 1 | | (2) If the amount of electricity produced by a customer | 2 | | during any hourly period exceeds the amount of electricity | 3 | | used by the customer during that hourly period, the energy | 4 | | provider shall apply a credit for the net kilowatt-hours | 5 | | produced in such period. The credit shall consist of an | 6 | | energy credit and a delivery service credit. The energy
| 7 | | credit shall be valued at the same price per kilowatt-hour | 8 | | as the electric service provider
would charge for | 9 | | kilowatt-hour energy sales during that same hourly period. | 10 | | The delivery credit shall be equal to the net | 11 | | kilowatt-hours produced in such hourly period times a | 12 | | credit that reflects all kilowatt-hour based charges in the | 13 | | customer's electric service rate, excluding energy | 14 | | charges. | 15 | | (e) An electricity provider shall measure and charge or | 16 | | credit for the net electricity supplied to eligible customers | 17 | | whose electric service has not been declared competitive | 18 | | pursuant to Section 16-113 of this Act and whose electric | 19 | | delivery service is provided and measured on a kilowatt demand | 20 | | basis and electric supply service is not provided based on | 21 | | hourly pricing in the following manner: | 22 | | (1) If the amount of electricity used by the customer | 23 | | during the billing period exceeds the amount of electricity | 24 | | produced by the customer, then the electricity provider | 25 | | shall charge the customer for the net electricity supplied | 26 | | to and used by the customer as provided in subsection (e-5) |
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| 1 | | of this Section, provided that the electricity provider | 2 | | shall assess and the customer remains responsible for all | 3 | | taxes, fees, and utility delivery charges that would | 4 | | otherwise be applicable to the gross amount of | 5 | | kilowatt-hours supplied to the eligible customer by the | 6 | | electricity provider. | 7 | | (2) If the amount of electricity produced by a customer | 8 | | during the billing period exceeds the amount of electricity | 9 | | used by the customer during that billing period, then the | 10 | | electricity provider supplying that customer shall apply a | 11 | | 1:1 kilowatt-hour credit that reflects the kilowatt-hour | 12 | | based charges in the customer's electric service rate to a | 13 | | subsequent bill for service to the customer for the net | 14 | | electricity supplied to the electricity provider. The | 15 | | electricity provider shall continue to carry over any | 16 | | excess kilowatt-hour credits earned and apply those | 17 | | credits to subsequent billing periods to offset any | 18 | | customer-generator consumption in those billing periods | 19 | | until all credits are used or until the end of the | 20 | | annualized period. | 21 | | (3) At the end of the year or annualized over the | 22 | | period that service is supplied by means of net metering, | 23 | | or in the event that the retail customer terminates service | 24 | | with the electricity provider prior to the end of the year | 25 | | or the annualized period, any remaining credits in the | 26 | | customer's account shall expire. |
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| 1 | | (e-5) An electricity provider shall provide electric | 2 | | service to eligible customers whose electric service has not | 3 | | been declared competitive pursuant to Section 16-113 of this | 4 | | Act and whose electric supply service is not provided based on | 5 | | hourly pricing who utilize net metering at non-discriminatory | 6 | | rates that are identical, with respect to rate structure, | 7 | | retail rate components, and any monthly charges, to the rates | 8 | | that the customer would be charged if not a net metering | 9 | | customer. An electricity provider shall not charge net metering | 10 | | customers any fee or charge or require additional equipment, | 11 | | insurance, or any other requirements not specifically | 12 | | authorized by interconnection standards authorized by the | 13 | | Commission, unless the fee, charge, or other requirement would | 14 | | apply to other similarly situated customers who are not net | 15 | | metering customers. The customer will remain responsible for | 16 | | all taxes, fees, and utility delivery charges that would | 17 | | otherwise be applicable to the net amount of electricity used | 18 | | by the customer. Subsections (c) through (e) of this Section | 19 | | shall not be construed to prevent an arms-length agreement | 20 | | between an electricity provider and an eligible customer that | 21 | | sets forth different prices, terms, and conditions for the | 22 | | provision of net metering service, including, but not limited | 23 | | to, the provision of the appropriate metering equipment for | 24 | | non-residential customers.
| 25 | | (f) Notwithstanding the requirements of subsections (c) | 26 | | through (e-5) of this Section, an electricity provider must |
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| 1 | | require dual-channel metering for customers operating eligible | 2 | | renewable electrical generating facilities with a nameplate | 3 | | rating up to 2,000 kilowatts and to whom the provisions of | 4 | | neither subsection (d) , (d-5), nor (e) of this Section apply. | 5 | | In such cases, electricity charges and credits shall be | 6 | | determined as follows:
| 7 | | (1) The electricity provider shall assess and the | 8 | | customer remains responsible for all taxes, fees, and | 9 | | utility delivery charges that would otherwise be | 10 | | applicable to the gross amount of kilowatt-hours supplied | 11 | | to the eligible customer by the electricity provider. | 12 | | (2) Each month that service is supplied by means of | 13 | | dual-channel metering, the electricity provider shall | 14 | | compensate the eligible customer for any excess | 15 | | kilowatt-hour credits at the electricity provider's | 16 | | avoided cost of electricity supply over the monthly period | 17 | | or as otherwise specified by the terms of a power-purchase | 18 | | agreement negotiated between the customer and electricity | 19 | | provider. | 20 | | (3) For all eligible net metering customers taking | 21 | | service from an electricity provider under contracts or | 22 | | tariffs employing time of use rates, any monthly | 23 | | consumption of electricity shall be calculated according | 24 | | to the terms of the contract or tariff to which the same | 25 | | customer would be assigned to or be eligible for if the | 26 | | customer was not a net metering customer. When those same |
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| 1 | | customer-generators are net generators during any discrete | 2 | | time of use period, the net kilowatt-hours produced shall | 3 | | be valued at the same price per kilowatt-hour as the | 4 | | electric service provider would charge for retail | 5 | | kilowatt-hour sales during that same time of use period.
| 6 | | (g) For purposes of federal and State laws providing | 7 | | renewable energy credits or greenhouse gas credits, the | 8 | | eligible customer shall be treated as owning and having title | 9 | | to the renewable energy attributes, renewable energy credits, | 10 | | and greenhouse gas emission credits related to any electricity | 11 | | produced by the qualified generating unit. The electricity | 12 | | provider may not condition participation in a net metering | 13 | | program on the signing over of a customer's renewable energy | 14 | | credits; provided, however, this subsection (g) shall not be | 15 | | construed to prevent an arms-length agreement between an | 16 | | electricity provider and an eligible customer that sets forth | 17 | | the ownership or title of the credits.
| 18 | | (h) Within 120 days after the effective date of this
| 19 | | amendatory Act of the 95th General Assembly, the Commission | 20 | | shall establish standards for net metering and, if the | 21 | | Commission has not already acted on its own initiative, | 22 | | standards for the interconnection of eligible renewable | 23 | | generating equipment to the utility system. The | 24 | | interconnection standards shall address any procedural | 25 | | barriers, delays, and administrative costs associated with the | 26 | | interconnection of customer-generation while ensuring the |
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| 1 | | safety and reliability of the units and the electric utility | 2 | | system. The Commission shall consider the Institute of | 3 | | Electrical and Electronics Engineers (IEEE) Standard 1547 and | 4 | | the issues of (i) reasonable and fair fees and costs, (ii) | 5 | | clear timelines for major milestones in the interconnection | 6 | | process, (iii) nondiscriminatory terms of agreement, and (iv) | 7 | | any best practices for interconnection of distributed | 8 | | generation.
| 9 | | (i) All electricity providers shall begin to offer net | 10 | | metering
no later than April 1,
2008.
| 11 | | (j) An electricity provider shall provide net metering to | 12 | | eligible
customers until the load of its net metering customers | 13 | | equals 5% of
the total peak demand supplied by
that electricity | 14 | | provider during the
previous year. Electricity providers are | 15 | | authorized to offer net metering beyond
the 5% level if they so | 16 | | choose.
| 17 | | (k) Each electricity provider shall maintain records and | 18 | | report annually to the Commission the total number of net | 19 | | metering customers served by the provider, as well as the type, | 20 | | capacity, and energy sources of the generating systems used by | 21 | | the net metering customers. Nothing in this Section shall limit | 22 | | the ability of an electricity provider to request the redaction | 23 | | of information deemed by the Commission to be confidential | 24 | | business information. Each electricity provider shall notify | 25 | | the Commission when the total generating capacity of its net | 26 | | metering customers is equal to or in excess of the 5% cap |
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| 1 | | specified in subsection (j) of this Section. | 2 | | (l) Notwithstanding the definition of "eligible customer" | 3 | | in item (i) of subsection (b) of this Section, each electricity | 4 | | provider shall consider whether to allow meter aggregation for | 5 | | the purposes of net metering on:
| 6 | | (1) properties owned or leased by multiple customers | 7 | | that contribute to the operation of an eligible renewable | 8 | | electrical generating facility, such as a community-owned | 9 | | wind project, a community-owned biomass project, a | 10 | | community-owned solar project, or a community methane | 11 | | digester processing livestock waste from multiple sources; | 12 | | and
| 13 | | (2) individual units, apartments, or properties owned | 14 | | or leased by multiple customers and collectively served by | 15 | | a common eligible renewable electrical generating | 16 | | facility, such as an apartment building served by | 17 | | photovoltaic panels on the roof.
| 18 | | For the purposes of this subsection (l), "meter | 19 | | aggregation" means the combination of reading and billing on a | 20 | | pro rata basis for the types of eligible customers described in | 21 | | this Section.
| 22 | | (m) Nothing in this Section shall affect the right of an | 23 | | electricity provider to continue to provide, or the right of a | 24 | | retail customer to continue to receive service pursuant to a | 25 | | contract for electric service between the electricity provider | 26 | | and the retail customer in accordance with the prices, terms, |
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| 1 | | and conditions provided for in that contract. Either the | 2 | | electricity provider or the customer may require compliance | 3 | | with the prices, terms, and conditions of the contract.
| 4 | | (Source: P.A. 95-420, eff. 8-24-07; 09700SB1652enr.)
| 5 | | (220 ILCS 5/16-108.5) | 6 | | Sec. 16-108.5. Infrastructure investment and | 7 | | modernization; regulatory reform. | 8 | | (a) (Blank). The General Assembly recognizes that for well | 9 | | over a century Illinois residents and businesses have been | 10 | | well-served by and have benefitted from a comprehensive | 11 | | electric utility system. The General Assembly finds that | 12 | | electric utilities are now entering a new construction cycle | 13 | | that is needed to refurbish, rebuild, modernize, and expand | 14 | | systems to continue to provide safe, reliable, and affordable | 15 | | service to the State's current and future utility customers in | 16 | | this newly digitized age. In particular, the General Assembly | 17 | | finds that it is the policy of this State that significant | 18 | | investments must be made in the State's electric grid over the | 19 | | next decade to modernize and upgrade transmission and | 20 | | distribution facilities in the State. These investments will | 21 | | ensure that the State's electric utility infrastructure will | 22 | | promote future economic development in the State and that the | 23 | | State's electric utilities will be able to continue to provide | 24 | | quality electric service to their customers, including | 25 | | innovative technological offerings that will enhance customer |
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| 1 | | experience and choice such as smart meters that are dependent | 2 | | on a modernized or Smart Grid. These investments, including | 3 | | programs to reinforce the safety and security of high voltage | 4 | | transmission lines, will also ensure that the State's electric | 5 | | utility infrastructure continues to be safe and reliable. The | 6 | | introduction of performance metrics will further ensure that | 7 | | reliability and other indicators are not just maintained but | 8 | | improved over the next decade. | 9 | | The General Assembly further recognizes that, in addition | 10 | | to attracting capital and businesses to the State, these | 11 | | investments will create training opportunities for the | 12 | | citizens of this State, all of which will create new employment | 13 | | opportunities for Illinoisans at a time when they are most | 14 | | needed, especially for minority-owned and female-owned | 15 | | business enterprises. The General Assembly further finds that | 16 | | regulatory reform measures that increase predictability, | 17 | | stability, and transparency in the ratemaking process are | 18 | | needed to promote prudent, long-term infrastructure investment | 19 | | and to mutually benefit the State's electric utilities and | 20 | | their customers, regulators, and investors. | 21 | | (b) For purposes of this Section, "participating utility" | 22 | | means an electric utility or a combination utility serving more | 23 | | than 1,000,000 customers in Illinois that voluntarily elects | 24 | | and commits to undertake (i) the infrastructure investment | 25 | | program consisting of the commitments and obligations | 26 | | described in this subsection (b) and (ii) the customer |
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| 1 | | assistance program consisting of the commitments and | 2 | | obligations described in subsection (b-10) of this Section , | 3 | | notwithstanding any other provisions of this Act and without | 4 | | obtaining any approvals from the Commission or any other agency | 5 | | other than as set forth in this Section, regardless of whether | 6 | | any such approval would otherwise be required. "Combination | 7 | | utility" means a utility that, as of January 1, 2011, provided | 8 | | electric service to at least one million retail customers in | 9 | | Illinois and gas service to at least 500,000 retail customers | 10 | | in Illinois. A participating utility shall recover the | 11 | | expenditures made under the infrastructure investment program | 12 | | through the ratemaking process, including, but not limited to, | 13 | | the performance-based formula rate and process set forth in | 14 | | this Section. | 15 | | During the infrastructure investment program's peak | 16 | | program year, a participating utility other than a combination | 17 | | utility shall create 2,000 full-time equivalent jobs in | 18 | | Illinois, and a participating utility that is a combination | 19 | | utility shall create 450 full-time equivalent jobs in Illinois | 20 | | related to the provision of electric service . These jobs shall | 21 | | include , including direct jobs, contractor positions, and | 22 | | induced jobs , but shall not include any portion of a job | 23 | | commitment, not specifically contingent on an amendatory Act of | 24 | | the 97th General Assembly becoming law, between a participating | 25 | | utility and a labor union that existed on the effective date of | 26 | | this amendatory Act of the 97th General Assembly and that has |
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| 1 | | not yet been fulfilled. A portion of the full-time equivalent | 2 | | jobs created by each participating utility shall include | 3 | | incremental personnel hired subsequent to the effective date of | 4 | | this amendatory Act of the 97th General Assembly . For purposes | 5 | | of this Section, "peak program year" means the consecutive | 6 | | 12-month period with the highest number of full-time equivalent | 7 | | jobs that occurs between the beginning of investment year 2 and | 8 | | the end of investment year 4. | 9 | | A participating utility shall meet one of the following | 10 | | commitments, as applicable: | 11 | | (1) Beginning no later than 180 days after a | 12 | | participating utility other than a combination utility | 13 | | files a performance-based formula rate tariff pursuant to | 14 | | subsection (c) of this Section, or, beginning no later than | 15 | | January 1, 2012 if such utility files such | 16 | | performance-based formula rate tariff within 14 days of the | 17 | | effective date of this amendatory Act of the 97th General | 18 | | Assembly, the participating utility shall, except as | 19 | | provided in subsection (b-5): | 20 | | (A) over a 5-year period, invest an estimated | 21 | | $1,300,000,000 $1,100,000,000 in electric system | 22 | | upgrades, modernization projects, and training | 23 | | facilities, including, but not limited to: | 24 | | (i) distribution infrastructure improvements | 25 | | totaling an estimated $1,000,000,000, including | 26 | | underground residential distribution cable |
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| 1 | | injection and replacement and mainline cable | 2 | | system refurbishment and replacement projects; | 3 | | (ii) training facility construction or upgrade | 4 | | projects totaling an estimated $10,000,000, | 5 | | provided that, at a minimum, one such facility | 6 | | shall be located in a municipality having a | 7 | | population of more than 2 million residents and one | 8 | | such facility shall be located in a municipality | 9 | | having a population of more than 150,000 residents | 10 | | but fewer than 170,000 residents; any such new | 11 | | facility located in a municipality having a | 12 | | population of more than 2 million residents must be | 13 | | designed for the purpose of obtaining, and the | 14 | | owner of the facility shall apply for, | 15 | | certification under the United States Green | 16 | | Building Council's Leadership in Energy Efficiency | 17 | | Design Green Building Rating System; and | 18 | | (iii) wood pole inspection, treatment, and | 19 | | replacement programs; and | 20 | | (iv) an estimated $200,000,000 for reducing | 21 | | the susceptibility of certain circuits to | 22 | | storm-related damage, including, but not limited | 23 | | to, high winds, thunderstorms, and ice storms; | 24 | | improvements may include, but are not limited to, | 25 | | overhead to underground conversion and other | 26 | | engineered outcomes for circuits; the |
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| 1 | | participating utility shall prioritize the | 2 | | selection of circuits based on each circuit's | 3 | | historical susceptibility to storm-related damage | 4 | | and the ability to provide the greatest customer | 5 | | benefit upon completion of the improvements; to be | 6 | | eligible for improvement, the participating | 7 | | utility's ability to maintain proper tree | 8 | | clearances surrounding the overhead circuit must | 9 | | not have
been impeded by third parties; and | 10 | | (B) over a 10-year period, invest an estimated | 11 | | $1,300,000,000 $1,500,000,000 to upgrade and modernize | 12 | | its transmission and distribution infrastructure and | 13 | | in Smart Grid electric system upgrades, including, but | 14 | | not limited to: | 15 | | (i) additional smart meters; | 16 | | (ii) distribution automation; | 17 | | (iii) associated cyber secure data | 18 | | communication network; and | 19 | | (iv) substation micro-processor relay | 20 | | upgrades. | 21 | | (2) Beginning no later than 180 days after a | 22 | | participating utility that is a combination utility files a | 23 | | performance-based formula rate tariff pursuant to | 24 | | subsection (c) of this Section, or, beginning no later than | 25 | | January 1, 2012 if such utility files such | 26 | | performance-based formula rate tariff within 14 days of the |
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| 1 | | effective date of this amendatory Act of the 97th General | 2 | | Assembly, the participating utility shall, except as | 3 | | provided in subsection (b-5): | 4 | | (A) over a 10-year period, invest an estimated | 5 | | $265,000,000 in electric system upgrades, | 6 | | modernization projects, and training facilities, | 7 | | including, but not limited to: | 8 | | (i) distribution infrastructure improvements | 9 | | totaling an estimated $245,000,000, which may | 10 | | include bulk supply substations, transformers, | 11 | | reconductoring, and rebuilding overhead | 12 | | distribution and sub-transmission lines, | 13 | | underground residential distribution cable | 14 | | injection and replacement and mainline cable | 15 | | system refurbishment and replacement projects; | 16 | | (ii) training facility construction or upgrade | 17 | | projects totaling an estimated $1,000,000; any | 18 | | such new facility must be designed for the purpose | 19 | | of obtaining, and the owner of the facility shall | 20 | | apply for, certification under the United States | 21 | | Green Building Council's Leadership in Energy | 22 | | Efficiency Design Green Building Rating System; | 23 | | and | 24 | | (iii) wood pole inspection, treatment, and | 25 | | replacement programs; and | 26 | | (B) over a 10-year period, invest an estimated |
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| 1 | | $360,000,000 to upgrade and modernize its transmission | 2 | | and distribution infrastructure and in Smart Grid | 3 | | electric system upgrades, including, but not limited | 4 | | to: | 5 | | (i) additional smart meters; | 6 | | (ii) distribution automation; | 7 | | (iii) associated cyber secure data | 8 | | communication network; and | 9 | | (iv) substation micro-processor relay | 10 | | upgrades. | 11 | | For purposes of this Section, "Smart Grid electric system | 12 | | upgrades" shall have the meaning set forth in subsection (a) of | 13 | | Section 16-108.6 of this Act. | 14 | | The investments in the infrastructure investment program | 15 | | described in this subsection (b) shall be incremental to the | 16 | | participating utility's annual capital investment program, as | 17 | | defined by, for purposes of this subsection (b), the | 18 | | participating utility's average capital spend for calendar | 19 | | years 2008, 2009, and 2010 as reported in the applicable | 20 | | Federal Energy Regulatory Commission (FERC) Form 1; provided | 21 | | that where one or more utilities have merged, the average | 22 | | capital spend shall be determined using the aggregate of the | 23 | | merged utilities' capital spend reported in FERC Form 1 for the | 24 | | years 2008, 2009, and 2010. A participating utility may add | 25 | | reasonable construction ramp-up and ramp-down time to the | 26 | | investment periods specified in this subsection (b). For each |
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| 1 | | such investment period, the ramp-up and ramp-down time shall | 2 | | not exceed a total of 6 months. | 3 | | Within 60 days after filing a tariff under subsection (c) | 4 | | of this Section, a participating utility shall submit to the | 5 | | Commission its plan, including scope, schedule, and staffing, | 6 | | for satisfying its infrastructure investment program | 7 | | commitments pursuant to this subsection (b). The submitted plan | 8 | | shall include a schedule and staffing plan for the next | 9 | | calendar year. The plan shall also include a plan for the | 10 | | creation, operation, and administration of a Smart Grid test | 11 | | bed as described in subsection (c) of Section 16-108.8. The | 12 | | plan need not allocate the work equally over the respective | 13 | | periods, but should allocate material increments throughout | 14 | | such periods commensurate with the work to be undertaken. No | 15 | | later than April 1 of each subsequent year, the utility shall | 16 | | submit to the Commission a report that includes any updates to | 17 | | the plan, a schedule for the next calendar year, the | 18 | | expenditures made for the prior calendar year and cumulatively, | 19 | | and the number of full-time equivalent jobs created for the | 20 | | prior calendar year and cumulatively. If the utility is | 21 | | materially deficient in satisfying a schedule or staffing plan, | 22 | | then the report must also include a corrective action plan to | 23 | | address the deficiency. The fact that the plan, implementation | 24 | | of the plan, or a schedule changes shall not imply the | 25 | | imprudence or unreasonableness of the infrastructure | 26 | | investment program, plan, or schedule. Further, no later than |
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| 1 | | 45 days following the last day of the first, second, and third | 2 | | quarters of each year of the plan, a participating utility | 3 | | shall submit to the Commission a verified quarterly report for | 4 | | the prior quarter that includes (i) the total number of | 5 | | full-time equivalent jobs created during the prior quarter, | 6 | | (ii) the total number of employees as of the last day of the | 7 | | prior quarter, (iii) the total number of full-time equivalent | 8 | | hours in each job classification or job title, (iv) the total | 9 | | number of incremental employees and contractors in support of | 10 | | the investments undertaken pursuant to this subsection (b) for | 11 | | the prior quarter, and (v) any other information that the | 12 | | Commission may require by rule. | 13 | | With respect to the participating utility's peak job | 14 | | commitment, if, after considering the utility's corrective | 15 | | action plan and compliance thereunder, the Commission enters an | 16 | | order finding, after notice and hearing, that a participating | 17 | | utility did not satisfy its peak job commitment described in | 18 | | this subsection (b) for reasons that are reasonably within its | 19 | | control, then the Commission shall also determine, after | 20 | | consideration of the evidence, including, but not limited to, | 21 | | evidence submitted by the Department of Commerce and Economic | 22 | | Opportunity and the utility, the deficiency in the number of | 23 | | full-time equivalent jobs during the peak program year due to | 24 | | such failure. The Commission shall notify the Department of any | 25 | | proceeding that is initiated pursuant to this paragraph. For | 26 | | each full-time equivalent job deficiency during the peak |
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| 1 | | program year that the Commission finds as set forth in this | 2 | | paragraph, the participating utility shall, within 30 days | 3 | | after the entry of the Commission's order, pay $6,000 $3,000 to | 4 | | a fund for training grants administered under Section 605-800 | 5 | | of The Department of Commerce and Economic Opportunity Law, | 6 | | which shall not be a recoverable expense. | 7 | | With respect to the participating utility's investment | 8 | | amount commitments, if, after considering the utility's | 9 | | corrective action plan and compliance thereunder, the | 10 | | Commission enters an order finding, after notice and hearing, | 11 | | that a participating utility is not satisfying its investment | 12 | | amount commitments described in this subsection (b), then the | 13 | | utility shall no longer be eligible to annually update the | 14 | | performance-based formula rate tariff pursuant to subsection | 15 | | (d) of this Section. In such event, the then current rates | 16 | | shall remain in effect until such time as new rates are set | 17 | | pursuant to Article IX of this Act, subject to retroactive | 18 | | adjustment, with interest, to reconcile rates charged with | 19 | | actual costs. | 20 | | If the Commission finds that a participating utility is no | 21 | | longer eligible to update the performance-based formula rate | 22 | | tariff pursuant to subsection (d) of this Section, or the | 23 | | performance-based formula rate is otherwise terminated, then | 24 | | the participating utility's voluntary commitments and | 25 | | obligations under this subsection (b) shall immediately | 26 | | terminate, except for the utility's obligation to pay an amount |
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| 1 | | already owed to the fund for training grants pursuant to a | 2 | | Commission order. | 3 | | In meeting the obligations of this subsection (b), to the | 4 | | extent feasible and consistent with State and federal law, the | 5 | | investments under the infrastructure investment program should | 6 | | provide employment opportunities for all segments of the | 7 | | population and workforce, including minority-owned and | 8 | | female-owned business enterprises, and shall not, consistent | 9 | | with State and federal law, discriminate based on race or | 10 | | socioeconomic status. | 11 | | (b-5) Nothing in this Section shall prohibit the Commission | 12 | | from investigating the prudence and reasonableness of the | 13 | | expenditures made under the infrastructure investment program | 14 | | during the annual review required by subsection (d) of this | 15 | | Section and shall, as part of such investigation, determine | 16 | | whether the utility's actual costs under the program are | 17 | | prudent and reasonable. The fact that a participating utility | 18 | | invests more than the minimum amounts specified in subsection | 19 | | (b) of this Section or its plan shall not imply imprudence or | 20 | | unreasonableness. | 21 | | If the participating utility finds that it is implementing | 22 | | its plan for satisfying the infrastructure investment program | 23 | | commitments described in subsection (b) of this Section at a | 24 | | cost below the estimated amounts specified in subsection (b) of | 25 | | this Section, then the utility may file a petition with the | 26 | | Commission requesting that it be permitted to satisfy its |
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| 1 | | commitments by spending less than the estimated amounts | 2 | | specified in subsection (b) of this Section. The Commission | 3 | | shall, after notice and hearing, enter its order approving, or | 4 | | approving as modified, or denying each such petition within 150 | 5 | | days after the filing of the petition. | 6 | | In no event, absent General Assembly approval, shall the | 7 | | capital investment costs incurred by a participating utility | 8 | | other than a combination utility in satisfying its | 9 | | infrastructure investment program commitments described in | 10 | | subsection (b) of this Section exceed $3,000,000,000 or, for a | 11 | | participating utility that is a combination utility, | 12 | | $720,000,000. If the participating utility's updated cost | 13 | | estimates for satisfying its infrastructure investment program | 14 | | commitments described in subsection (b) of this Section exceed | 15 | | the limitation imposed by this subsection (b-5), then it shall | 16 | | submit a report to the Commission that identifies the increased | 17 | | costs and explains the reason or reasons for the increased | 18 | | costs no later than the year in which the utility estimates it | 19 | | will exceed the limitation. The Commission shall review the | 20 | | report and shall, within 90 days after the participating | 21 | | utility files the report, report to the General Assembly its | 22 | | findings regarding the participating utility's report. If the | 23 | | General Assembly does not amend the limitation imposed by this | 24 | | subsection (b-5), then the utility may modify its plan so as | 25 | | not to exceed the limitation imposed by this subsection (b-5) | 26 | | and may propose corresponding changes to the metrics |
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| 1 | | established pursuant to subparagraphs (5) through (8) of | 2 | | subsection (f) of this Section, and the Commission may modify | 3 | | the metrics and incremental savings goals established pursuant | 4 | | to subsection (f) of this Section accordingly. | 5 | | (b-10) All participating utilities shall make | 6 | | contributions for an energy low-income and support program in | 7 | | accordance with this subsection. Beginning no later than 180 | 8 | | days after a participating utility files a performance-based | 9 | | formula rate tariff pursuant to subsection (c) of this Section, | 10 | | or beginning no later than January 1, 2012 if such utility | 11 | | files such performance-based formula rate tariff within 14 days | 12 | | of the effective date of this amendatory Act of the 97th | 13 | | General Assembly, and without obtaining any approvals from the | 14 | | Commission or any other agency other than as set forth in this | 15 | | Section, regardless of whether any such approval would | 16 | | otherwise be required, a participating utility other than a | 17 | | combination utility shall pay $10,000,000 per year for 5 years | 18 | | and a participating utility that is a combination utility shall | 19 | | pay $1,000,000 per year for 10 years to the energy low-income | 20 | | and support program, which is intended to fund customer | 21 | | assistance programs with the primary purpose being avoidance of
| 22 | | imminent disconnection. Such programs may include: | 23 | | (1) a residential hardship program that may partner | 24 | | with community-based
organizations, including senior | 25 | | citizen organizations, and provides grants to low-income | 26 | | residential customers, including low-income senior |
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| 1 | | citizens, who demonstrate a hardship; | 2 | | (2) a program that provides grants and other bill | 3 | | payment concessions to disabled veterans who demonstrate a | 4 | | hardship and members of the armed services or reserve | 5 | | forces of the United States or members of the Illinois | 6 | | National Guard who are on active duty pursuant to an | 7 | | executive order of the President of the United States, an | 8 | | act of the Congress of the United States, or an order of | 9 | | the Governor and who demonstrate a
hardship; | 10 | | (3) a budget assistance program that provides tools and | 11 | | education to low-income senior citizens to assist them with | 12 | | obtaining information regarding energy usage and
effective | 13 | | means of managing energy costs; | 14 | | (4) a non-residential special hardship program that | 15 | | provides grants to non-residential customers such as small | 16 | | businesses and non-profit organizations that demonstrate a | 17 | | hardship, including those providing services to senior | 18 | | citizen and low-income customers; and | 19 | | (5) a performance-based assistance program that | 20 | | provides grants to encourage residential customers to make | 21 | | on-time payments by matching a portion of the customer's | 22 | | payments or providing credits towards arrearages. | 23 | | The payments made by a participating utility pursuant to | 24 | | this subsection (b-10) shall not be a recoverable expense. A | 25 | | participating utility may elect to fund either new or existing | 26 | | customer assistance programs, including, but not limited to, |
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| 1 | | those that are administered by the utility. | 2 | | Programs that use funds that are provided by a | 3 | | participating utility to reduce utility bills may be | 4 | | implemented through tariffs that are filed with and reviewed by | 5 | | the Commission. If a utility elects to file tariffs with the | 6 | | Commission to implement all or a portion of the programs, those | 7 | | tariffs shall, regardless of the date actually filed, be deemed | 8 | | accepted and approved, and shall become effective on the | 9 | | effective date of this amendatory Act of the 97th General | 10 | | Assembly. The participating utilities whose customers benefit | 11 | | from the funds that are disbursed as contemplated in this | 12 | | Section shall file annual reports documenting the disbursement | 13 | | of those funds with the Commission. The Commission has the | 14 | | authority to audit disbursement of the funds to ensure they | 15 | | were disbursed consistently with this Section. | 16 | | If the Commission finds that a participating utility is no | 17 | | longer eligible to update the performance-based formula rate | 18 | | tariff pursuant to subsection (d) of this Section, or the | 19 | | performance-based formula rate is otherwise terminated, then | 20 | | the participating utility's voluntary commitments and | 21 | | obligations under this subsection (b-10) shall immediately | 22 | | terminate. | 23 | | (c) A participating utility may elect to recover its | 24 | | delivery services costs through a performance-based formula | 25 | | rate approved by the Commission, which shall specify the cost | 26 | | components that form the basis of the rate charged to customers |
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| 1 | | with sufficient specificity to operate in a standardized manner | 2 | | and be updated annually with transparent information that | 3 | | reflects the utility's actual costs to be recovered during the | 4 | | applicable rate year, which is the period beginning with the | 5 | | first billing day of January and extending through the last | 6 | | billing day of the following December. In the event the utility | 7 | | recovers a portion of its costs through automatic adjustment | 8 | | clause tariffs on the effective date of this amendatory Act of | 9 | | the 97th General Assembly, the utility may elect to continue to | 10 | | recover these costs through such tariffs, but then these costs | 11 | | shall not be recovered through the performance-based formula | 12 | | rate. In the event the participating utility, prior to the | 13 | | effective date of this amendatory Act of the 97th General | 14 | | Assembly, filed electric delivery services tariffs with the | 15 | | Commission pursuant to Section 9-201 of this Act that are | 16 | | related to the recovery of its electric delivery services costs | 17 | | that are still pending on the effective date of this amendatory | 18 | | Act of the 97th General Assembly, the participating utility | 19 | | shall, at the time it files its performance-based formula rate | 20 | | tariff with the Commission, also file a notice of withdrawal | 21 | | with the Commission to withdraw the electric delivery services | 22 | | tariffs previously filed pursuant to Section 9-201 of this Act. | 23 | | Upon receipt of such notice, the Commission shall dismiss with | 24 | | prejudice any docket that had been initiated to investigate the | 25 | | electric delivery services tariffs filed pursuant to Section | 26 | | 9-201 of this Act, and such tariffs and the record related |
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| 1 | | thereto shall not be the subject of any further hearing, | 2 | | investigation, or proceeding of any kind related to rates for | 3 | | electric delivery services. | 4 | | The performance-based formula rate shall be implemented | 5 | | through a tariff filed with the Commission consistent with the | 6 | | provisions of this subsection (c) that shall be applicable to | 7 | | all delivery services customers. The Commission shall initiate | 8 | | and conduct an investigation of the tariff in a manner | 9 | | consistent with the provisions of this subsection (c) and the | 10 | | provisions of Article IX of this Act to the extent they do not | 11 | | conflict with this subsection (c). Except in the case where the | 12 | | Commission finds, after notice and hearing, that a | 13 | | participating utility is not satisfying its investment amount | 14 | | commitments under subsection (b) of this Section, the | 15 | | performance-based formula rate shall remain in effect at the | 16 | | discretion of the utility. The performance-based formula rate | 17 | | approved by the Commission shall do the following: | 18 | | (1) Provide for the recovery of the utility's actual | 19 | | costs of delivery services that are prudently incurred and | 20 | | reasonable in amount consistent with Commission practice | 21 | | and law. The sole fact that a cost differs from that | 22 | | incurred in a prior calendar year or that an investment is | 23 | | different from that made in a prior calendar year shall not | 24 | | imply the imprudence or unreasonableness of that cost or | 25 | | investment. | 26 | | (2) Reflect the utility's actual capital structure for |
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| 1 | | the applicable calendar year, excluding goodwill, subject | 2 | | to a determination of prudence and reasonableness | 3 | | consistent with Commission practice and law. | 4 | | (3) Include a cost of equity, which shall be calculated | 5 | | as the sum of the following: | 6 | | (A) the average for the applicable calendar year of | 7 | | the monthly average yields of 30-year U.S. Treasury | 8 | | bonds published by the Board of Governors of the | 9 | | Federal Reserve System in its weekly H.15 Statistical | 10 | | Release or successor publication; and | 11 | | (B) 580 600 basis points. | 12 | | At such time as the Board of Governors of the Federal | 13 | | Reserve System ceases to include the monthly average yields | 14 | | of 30-year U.S. Treasury bonds in its weekly H.15 | 15 | | Statistical Release or successor publication, the monthly | 16 | | average yields of the U.S. Treasury bonds then having the | 17 | | longest duration published by the Board of Governors in its | 18 | | weekly H.15 Statistical Release or successor publication | 19 | | shall instead be used for purposes of this paragraph (3). | 20 | | (4) Permit and set forth protocols, subject to a | 21 | | determination of prudence and reasonableness consistent | 22 | | with Commission practice and law, for the following: | 23 | | (A) recovery of incentive compensation expense | 24 | | that is based on the achievement of operational | 25 | | metrics, including metrics related to budget controls, | 26 | | outage duration and frequency, safety, customer |
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| 1 | | service, efficiency and productivity, and | 2 | | environmental compliance. Incentive compensation | 3 | | expense that is based on net income or an affiliate's | 4 | | earnings per share shall not be recoverable under the | 5 | | performance-based formula rate; | 6 | | (B) recovery of pension and other post-employment | 7 | | benefits expense, provided that such costs are | 8 | | supported by an actuarial study; | 9 | | (C) recovery of severance costs, provided that if | 10 | | the amount is over $3,700,000 for a participating | 11 | | utility that is a combination utility or $10,000,000 | 12 | | for a participating utility that serves more than 3 | 13 | | million retail customers, then the full amount shall be | 14 | | amortized consistent with subparagraph (F) of this | 15 | | paragraph (4); | 16 | | (D) investment return on pension assets net of | 17 | | deferred tax benefits equal to the utility's long-term | 18 | | debt cost of capital as of the end of the applicable | 19 | | calendar year; | 20 | | (E) recovery of the expenses related to the | 21 | | Commission proceeding under this subsection (c) to | 22 | | approve this performance-based formula rate and | 23 | | initial rates or to subsequent proceedings related to | 24 | | the formula, provided that the recovery shall be | 25 | | amortized over a 3-year period; recovery of expenses | 26 | | related to the annual Commission proceedings under |
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| 1 | | subsection (d) of this Section to review the inputs to | 2 | | the performance-based formula rate shall be expensed | 3 | | and recovered through the performance-based formula | 4 | | rate; | 5 | | (F) amortization over a 5-year period of the full | 6 | | amount of each charge or credit that exceeds $3,700,000 | 7 | | for a participating utility that is a combination | 8 | | utility or $10,000,000 for a participating utility | 9 | | that serves more than 3 million retail customers in the | 10 | | applicable calendar year and that relates to a | 11 | | workforce reduction program's severance costs, changes | 12 | | in accounting rules, changes in law, compliance with | 13 | | any Commission-initiated audit, or a single storm or | 14 | | other similar expense, provided that any unamortized | 15 | | balance shall be reflected in rate base. For purposes | 16 | | of this subparagraph (F), changes in law includes any | 17 | | enactment, repeal, or amendment in a law, ordinance, | 18 | | rule, regulation, interpretation, permit, license, | 19 | | consent, or order, including those relating to taxes, | 20 | | accounting, or to environmental matters, or in the | 21 | | interpretation or application thereof by any | 22 | | governmental authority occurring after the effective | 23 | | date of this amendatory Act of the 97th General | 24 | | Assembly; | 25 | | (G) recovery of existing regulatory assets over | 26 | | the periods previously authorized by the Commission; |
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| 1 | | (H) historical weather normalized billing | 2 | | determinants; and | 3 | | (I) allocation methods for common costs. | 4 | | (5) Provide that if the participating utility's earned | 5 | | rate of return on common equity related to the provision of | 6 | | delivery services for the prior rate year (calculated using | 7 | | costs and capital structure approved by the Commission as | 8 | | provided in subparagraph (2) of this subsection (c), | 9 | | consistent with this Section, in accordance with | 10 | | Commission rules and orders, including, but not limited to, | 11 | | adjustments for goodwill, and after any Commission-ordered | 12 | | disallowances and taxes) is more than 50 basis points | 13 | | higher than the rate of return on common equity calculated | 14 | | pursuant to paragraph (3) of this subsection (c) (after | 15 | | adjusting for any penalties to the rate of return on common | 16 | | equity applied pursuant to the performance metrics | 17 | | provision of subsection (f) of this Section), then the | 18 | | participating utility shall apply a credit through the | 19 | | performance-based formula rate that reflects an amount | 20 | | equal to the value of that portion of the earned rate of | 21 | | return on common equity that is more than 50 basis points | 22 | | higher than the rate of return on common equity calculated | 23 | | pursuant to paragraph (3) of this subsection (c) (after | 24 | | adjusting for any penalties to the rate of return on common | 25 | | equity applied pursuant to the performance metrics | 26 | | provision of subsection (f) of this Section) for the prior |
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| 1 | | rate year, adjusted for taxes. If the participating | 2 | | utility's earned rate of return on common equity related to | 3 | | the provision of delivery services for the prior rate year | 4 | | (calculated using costs and capital structure approved by | 5 | | the Commission as provided in subparagraph (2) of this | 6 | | subsection (c), consistent with this Section, in | 7 | | accordance with Commission rules and orders, including, | 8 | | but not limited to, adjustments for goodwill, and after any | 9 | | Commission-ordered disallowances and taxes) is more than | 10 | | 50 basis points less than the return on common equity | 11 | | calculated pursuant to paragraph (3) of this subsection (c) | 12 | | (after adjusting for any penalties to the rate of return on | 13 | | common equity applied pursuant to the performance metrics | 14 | | provision of subsection (f) of this Section), then the | 15 | | participating utility shall apply a charge through the | 16 | | performance-based formula rate that reflects an amount | 17 | | equal to the value of that portion of the earned rate of | 18 | | return on common equity that is more than 50 basis points | 19 | | less than the rate of return on common equity calculated | 20 | | pursuant to paragraph (3) of this subsection (c) (after | 21 | | adjusting for any penalties to the rate of return on common | 22 | | equity applied pursuant to the performance metrics | 23 | | provision of subsection (f) of this Section) for the prior | 24 | | rate year, adjusted for taxes. | 25 | | (6) Provide for an annual reconciliation, with | 26 | | interest as described in subsection (d) of this Section, of |
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| 1 | | the revenue requirement reflected in rates for each | 2 | | calendar year, beginning with the calendar year in which | 3 | | the utility files its performance-based formula rate | 4 | | tariff pursuant to subsection (c) of this Section, with | 5 | | what the revenue requirement would have been had the actual | 6 | | cost information for the applicable calendar year been | 7 | | available at the filing date. | 8 | | The utility shall file, together with its tariff, final | 9 | | data based on its most recently filed FERC Form 1, plus | 10 | | projected plant additions and correspondingly updated | 11 | | depreciation reserve and expense for the calendar year in which | 12 | | the tariff and data are filed, that shall populate the | 13 | | performance-based formula rate and set the initial delivery | 14 | | services rates under the formula. For purposes of this Section, | 15 | | "FERC Form 1" means the Annual Report of Major Electric | 16 | | Utilities, Licensees and Others that electric utilities are | 17 | | required to file with the Federal Energy Regulatory Commission | 18 | | under the Federal Power Act, Sections 3, 4(a), 304 and 209, | 19 | | modified as necessary to be consistent with 83 Ill. Admin. Code | 20 | | Part 415 as of May 1, 2011. Nothing in this Section is intended | 21 | | to allow costs that are not otherwise recoverable to be | 22 | | recoverable by virtue of inclusion in FERC Form 1. | 23 | | After the utility files its proposed performance-based | 24 | | formula rate structure and protocols and initial rates, the | 25 | | Commission shall initiate a docket to review the filing. The | 26 | | Commission shall enter an order approving, or approving as |
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| 1 | | modified, the performance-based formula rate, including the | 2 | | initial rates, as just and reasonable within 270 days after the | 3 | | date on which the tariff was filed, or, if the tariff is filed | 4 | | within 14 days after the effective date of this amendatory Act | 5 | | of the 97th General Assembly, then by May 31, 2012. Such review | 6 | | shall be based on the same evidentiary standards, including, | 7 | | but not limited to, those concerning the prudence and | 8 | | reasonableness of the costs incurred by the utility, the | 9 | | Commission applies in a hearing to review a filing for a | 10 | | general increase in rates under Article IX of this Act. The | 11 | | initial rates shall take effect within 30 days after the | 12 | | Commission's order approving the performance-based formula | 13 | | rate tariff. | 14 | | Until such time as the Commission approves a different rate | 15 | | design and cost allocation pursuant to subsection (e) of this | 16 | | Section, rate design and cost allocation across customer | 17 | | classes shall be consistent with the Commission's most recent | 18 | | order regarding the participating utility's request for a | 19 | | general increase in its delivery services rates. | 20 | | Subsequent changes to the performance-based formula rate | 21 | | structure or protocols shall be made as set forth in Section | 22 | | 9-201 of this Act, but nothing in this subsection (c) is | 23 | | intended to limit the Commission's authority under Article IX | 24 | | and other provisions of this Act to initiate an investigation | 25 | | of a participating utility's performance-based formula rate | 26 | | tariff, provided that any such changes shall be consistent with |
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| 1 | | paragraphs (1) through (6) of this subsection (c). Any change | 2 | | ordered by the Commission shall be made at the same time new | 3 | | rates take effect following the Commission's next order | 4 | | pursuant to subsection (d) of this Section, provided that the | 5 | | new rates take effect no less than 30 days after the date on | 6 | | which the Commission issues an order adopting the change. | 7 | | A participating utility that files a tariff pursuant to | 8 | | this subsection (c) must submit a one-time $200,000 filing fee | 9 | | at the time the Chief Clerk of the Commission accepts the | 10 | | filing, which shall be a recoverable expense. | 11 | | In the event the performance-based formula rate is | 12 | | terminated, the then current rates shall remain in effect until | 13 | | such time as new rates are set pursuant to Article IX of this | 14 | | Act, subject to retroactive rate adjustment, with interest, to | 15 | | reconcile rates charged with actual costs. At such time that | 16 | | the performance-based formula rate is terminated, the | 17 | | participating utility's voluntary commitments and obligations | 18 | | under subsection (b) of this Section shall immediately | 19 | | terminate, except for the utility's obligation to pay an amount | 20 | | already owed to the fund for training grants pursuant to a | 21 | | Commission order issued under subsection (b) of this Section. | 22 | | (d) Subsequent to the Commission's issuance of an order | 23 | | approving the utility's performance-based formula rate | 24 | | structure and protocols, and initial rates under subsection (c) | 25 | | of this Section, the utility shall file, on or before May 1 of | 26 | | each year, with the Chief Clerk of the Commission its updated |
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| 1 | | cost inputs to the performance-based formula rate for the | 2 | | applicable rate year and the corresponding new charges. Each | 3 | | such filing shall conform to the following requirements and | 4 | | include the following information: | 5 | | (1) The inputs to the performance-based formula rate | 6 | | for the applicable rate year shall be based on final | 7 | | historical data reflected in the utility's most recently | 8 | | filed annual FERC Form 1 plus projected plant additions and | 9 | | correspondingly updated depreciation reserve and expense | 10 | | for the calendar year in which the inputs are filed. The | 11 | | filing shall also include a reconciliation of the revenue | 12 | | requirement that was in effect for the prior rate year (as | 13 | | set by the cost inputs for the prior rate year) with the | 14 | | actual revenue requirement for the prior rate year (as | 15 | | reflected in the applicable FERC Form 1 that reports the | 16 | | actual costs for the prior rate year). Any over-collection | 17 | | or under-collection indicated by such reconciliation shall | 18 | | be reflected as a credit against, or recovered as an | 19 | | additional charge to, respectively, with interest, the | 20 | | charges for the applicable rate year. Provided, however, | 21 | | that the first such reconciliation shall be for the | 22 | | calendar year in which the utility files its | 23 | | performance-based formula rate tariff pursuant to | 24 | | subsection (c) of this Section and shall reconcile (i) the | 25 | | revenue requirement or requirements established by the | 26 | | rate order or orders in effect from time to time during |
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| 1 | | such calendar year (weighted, as applicable) with (ii) the | 2 | | revenue requirement for that calendar year calculated | 3 | | pursuant to the performance-based formula rate using (A) | 4 | | actual costs for that year as reflected in the applicable | 5 | | FERC Form 1, and (B) for the first such reconciliation | 6 | | only, the cost of equity , which shall be calculated as the | 7 | | sum of 590 basis points plus the average for the applicable | 8 | | calendar year of the monthly average yields of 30-year U.S. | 9 | | Treasury bonds published by the Board of Governors of the | 10 | | Federal Reserve System in its weekly H.15 Statistical | 11 | | Release or successor publication approved by the | 12 | | Commission in such order or orders in effect during that | 13 | | year (weighted, as applicable) . The first such | 14 | | reconciliation is not intended to provide for the recovery | 15 | | of costs previously excluded from rates based on a prior | 16 | | Commission order finding of imprudence or | 17 | | unreasonableness. Each reconciliation shall be certified | 18 | | by the participating utility in the same manner that FERC | 19 | | Form 1 is certified. The filing shall also include the | 20 | | charge or credit, if any, resulting from the calculation | 21 | | required by paragraph (6) of subsection (c) of this | 22 | | Section. | 23 | | Notwithstanding anything that may be to the contrary, | 24 | | the intent of the reconciliation is to ultimately reconcile | 25 | | the revenue requirement reflected in rates for each | 26 | | calendar year, beginning with the calendar year in which |
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| 1 | | the utility files its performance-based formula rate | 2 | | tariff pursuant to subsection (c) of this Section, with | 3 | | what the revenue requirement would have been had the actual | 4 | | cost information for the applicable calendar year been | 5 | | available at the filing date. | 6 | | (2) The new charges shall take effect beginning on the | 7 | | first billing day of the following January billing period | 8 | | and remain in effect through the last billing day of the | 9 | | next December billing period regardless of whether the | 10 | | Commission enters upon a hearing pursuant to this | 11 | | subsection (d). | 12 | | (3) The filing shall include relevant and necessary | 13 | | data and documentation for the applicable rate year that is | 14 | | consistent with the Commission's rules applicable to a | 15 | | filing for a general increase in rates or any rules adopted | 16 | | by the Commission to implement this Section. Normalization | 17 | | adjustments shall not be required. Notwithstanding any | 18 | | other provision of this Section or Act or any rule or other | 19 | | requirement adopted by the Commission, a participating | 20 | | utility that is a combination utility with more than one | 21 | | rate zone shall not be required to file a separate set of | 22 | | such data and documentation for each rate zone and may | 23 | | combine such data and documentation into a single set of | 24 | | schedules. | 25 | | Within 45 days after the utility files its annual update of | 26 | | cost inputs to the performance-based formula rate, the |
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| 1 | | Commission shall have the authority, either upon complaint or | 2 | | its own initiative, but with reasonable notice, to enter upon a | 3 | | hearing concerning the prudence and reasonableness of the costs | 4 | | incurred by the utility to be recovered during the applicable | 5 | | rate year that are reflected in the inputs to the | 6 | | performance-based formula rate derived from the utility's FERC | 7 | | Form 1. During the course of the hearing, each objection shall | 8 | | be stated with particularity and evidence provided in support | 9 | | thereof, after which the utility shall have the opportunity to | 10 | | rebut the evidence. Discovery shall be allowed consistent with | 11 | | the Commission's Rules of Practice, which Rules shall be | 12 | | enforced by the Commission or the assigned hearing examiner. | 13 | | The Commission shall apply the same evidentiary standards, | 14 | | including, but not limited to, those concerning the prudence | 15 | | and reasonableness of the costs incurred by the utility, in the | 16 | | hearing as it would apply in a hearing to review a filing for a | 17 | | general increase in rates under Article IX of this Act. The | 18 | | Commission shall not, however, have the authority in a | 19 | | proceeding under this subsection (d) to consider or order any | 20 | | changes to the structure or protocols of the performance-based | 21 | | formula rate approved pursuant to subsection (c) of this | 22 | | Section. In a proceeding under this subsection (d), the | 23 | | Commission shall enter its order no later than the earlier of | 24 | | 240 days after the utility's filing of its annual update of | 25 | | cost inputs to the performance-based formula rate or December | 26 | | 31. The Commission's determinations of the prudence and |
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| 1 | | reasonableness of the costs incurred for the applicable | 2 | | calendar year shall be final upon entry of the Commission's | 3 | | order and shall not be subject to reopening, reexamination, or | 4 | | collateral attack in any other Commission proceeding, case, | 5 | | docket, order, rule or regulation, provided, however, that | 6 | | nothing in this subsection (d) shall prohibit a party from | 7 | | petitioning the Commission to rehear or appeal to the courts | 8 | | the order pursuant to the provisions of this Act. | 9 | | In the event the Commission does not, either upon complaint | 10 | | or its own initiative, enter upon a hearing within 45 days | 11 | | after the utility files the annual update of cost inputs to its | 12 | | performance-based formula rate, then the costs incurred for the | 13 | | applicable calendar year shall be deemed prudent and | 14 | | reasonable, and the filed charges shall not be subject to | 15 | | reopening, reexamination, or collateral attack in any other | 16 | | proceeding, case, docket, order, rule, or regulation. | 17 | | A participating utility's first filing of the updated cost | 18 | | inputs, and any Commission investigation of such inputs | 19 | | pursuant to this subsection (d) shall proceed notwithstanding | 20 | | the fact that the Commission's investigation under subsection | 21 | | (c) of this Section is still pending and notwithstanding any | 22 | | other law, order, rule, or Commission practice to the contrary. | 23 | | (e) Nothing in subsections (c) or (d) of this Section shall | 24 | | prohibit the Commission from investigating, or a participating | 25 | | utility from filing, revenue-neutral tariff changes related to | 26 | | rate design of a performance-based formula rate that has been |
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| 1 | | placed into effect for the utility. Following approval of a | 2 | | participating utility's performance-based formula rate tariff | 3 | | pursuant to subsection (c) of this Section, the utility shall | 4 | | make a filing with the Commission within one year after the | 5 | | effective date of the performance-based formula rate tariff | 6 | | that proposes changes to the tariff to incorporate the findings | 7 | | of any final rate design orders of the Commission applicable to | 8 | | the participating utility and entered subsequent to the | 9 | | Commission's approval of the tariff. The Commission shall, | 10 | | after notice and hearing, enter its order approving, or | 11 | | approving with modification, the proposed changes to the | 12 | | performance-based formula rate tariff within 240 days after the | 13 | | utility's filing. Following such approval, the utility shall | 14 | | make a filing with the Commission during each subsequent 3-year | 15 | | period that either proposes revenue-neutral tariff changes or | 16 | | re-files the existing tariffs without change, which shall | 17 | | present the Commission with an opportunity to suspend the | 18 | | tariffs and consider revenue-neutral tariff changes related to | 19 | | rate design. | 20 | | (f) Within 30 days after the filing of a tariff pursuant to | 21 | | subsection (c) of this Section, each participating utility | 22 | | shall develop and file with the Commission multi-year metrics | 23 | | designed to achieve, ratably (i.e., in equal segments) over a | 24 | | 10-year period, improvement over baseline performance values | 25 | | as follows: | 26 | | (1) Twenty percent improvement in the System Average |
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| 1 | | Interruption Frequency Index, using a baseline of the | 2 | | average of the data from 2001 through 2010. | 3 | | (2) Fifteen percent improvement in the system Customer | 4 | | Average Interruption Duration Index, using a baseline of | 5 | | the average of the data from 2001 through 2010. | 6 | | (3) For a participating utility other than a | 7 | | combination utility, 20% improvement in the System Average | 8 | | Interruption Frequency Index for its Southern Region, | 9 | | using a baseline of the average of the data from 2001 | 10 | | through 2010. For purposes of this paragraph (3) paragraph | 11 | | (C) , Southern Region shall have the meaning set forth in | 12 | | the participating utility's most recent report filed | 13 | | pursuant to Section 16-125 of this Act. | 14 | | (3.5) For a participating utility other than a | 15 | | combination utility, 20% improvement in the System Average | 16 | | Interruption Frequency Index for its Northeastern Region, | 17 | | using a baseline of the average of the data from 2001 | 18 | | through 2010. For purposes of this paragraph (3.5), | 19 | | Northeastern Region shall have the meaning set forth in the | 20 | | participating utility's most recent report filed pursuant | 21 | | to Section 16-125 of this Act. | 22 | | (4) Seventy-five percent improvement in the total | 23 | | number of customers who exceed the service reliability | 24 | | targets as set forth in subparagraphs (A) through (C) of | 25 | | paragraph (4) of subsection (b) of 83 Ill. Admin. Code Part | 26 | | 411.140 as of May 1, 2011, using 2010 as the baseline year. |
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| 1 | | (5) Reduction in issuance of estimated electric bills: | 2 | | 90% improvement for a participating utility other than a | 3 | | combination utility, and 56% improvement for a | 4 | | participating utility that is a combination utility, using | 5 | | a baseline of the average number of estimated bills for the | 6 | | years 2008 through 2010. | 7 | | (6) Consumption on inactive meters: 90% improvement | 8 | | for a participating utility other than a combination | 9 | | utility, and 56% improvement for a participating utility | 10 | | that is a combination utility, using a baseline of the | 11 | | average unbilled kilowatthours for the years 2009 and 2010. | 12 | | (7) Unaccounted for energy: 50% improvement for a | 13 | | participating utility other than a combination utility | 14 | | using a baseline of the non-technical line loss unaccounted | 15 | | for energy kilowatthours for the year 2009. | 16 | | (8) Uncollectible expense: reduce uncollectible | 17 | | expense by at least $30,000,000 for a participating utility | 18 | | other than a combination utility and by at least $3,500,000 | 19 | | for a participating utility that is a combination utility, | 20 | | using a baseline of the average uncollectible expense for | 21 | | the years 2008 through 2010. | 22 | | (9) Opportunities for minority-owned and female-owned | 23 | | business enterprises: design a performance metric | 24 | | regarding the creation of opportunities for minority-owned | 25 | | and female-owned business enterprises consistent with | 26 | | State and federal law using a base performance value of the |
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| 1 | | percentage of the participating utility's capital | 2 | | expenditures that were paid to minority-owned and | 3 | | female-owned business enterprises in 2010. | 4 | | The definitions set forth in 83 Ill. Admin. Code Part | 5 | | 411.20 as of May 1, 2011 shall be used for purposes of | 6 | | calculating performance under paragraphs (1) through (3.5) (3) | 7 | | of this subsection (f), provided, however, that the | 8 | | participating utility may exclude up to 9 extreme weather event | 9 | | days from such calculation for each year , and provided further | 10 | | that the
participating utility shall exclude 9 extreme weather | 11 | | event days when calculating each year of the baseline period to | 12 | | the extent that there are 9 such days in a given year of the | 13 | | baseline period . For purposes of this Section, an extreme | 14 | | weather event day is a 24-hour calendar day (beginning at 12:00 | 15 | | a.m. and ending at 11:59 p.m.) during which any weather event | 16 | | (e.g., storm, tornado) caused interruptions for 10,000 or more | 17 | | of the participating utility's customers for 3 hours or more. | 18 | | If there are more than 9 extreme weather event days in a year, | 19 | | then the utility may choose no more than 9 extreme weather | 20 | | event days to exclude, provided that the same extreme weather | 21 | | event days are excluded from each of the calculations performed | 22 | | under paragraphs (1) through (3.5) (3) of this subsection (f). | 23 | | The metrics shall include incremental performance goals | 24 | | for each year of the 10-year period, which shall be designed to | 25 | | demonstrate that the utility is on track to achieve the | 26 | | performance goal in each category at the end of the 10-year |
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| 1 | | period. The utility shall elect when the 10-year period shall | 2 | | commence for the metrics set forth in subparagraphs (1) through | 3 | | (4) and (9) of this subsection (f) , provided that it begins no | 4 | | later than 14 months following the date on which the utility | 5 | | begins investing pursuant to subsection (b) of this Section , | 6 | | and when the 10-year period shall commence for the metrics set | 7 | | forth in subparagraphs (5) through (8) of this subsection (f), | 8 | | provided that it begins no later than 14 months following the | 9 | | date on which the Commission enters its order approving the | 10 | | utility's Advanced Metering Infrastructure Deployment Plan | 11 | | pursuant to subsection (c) of Section 16-108.6 of this Act . | 12 | | The metrics and performance goals set forth in | 13 | | subparagraphs (5) through (8) of this subsection (f) are based | 14 | | on the assumptions that the participating utility may fully | 15 | | implement the technology described in subsection (b) of this | 16 | | Section, including utilizing the full functionality of such | 17 | | technology and that there is no requirement for personal | 18 | | on-site notification. If the utility is unable to meet the | 19 | | metrics and performance goals set forth in subparagraphs (5) | 20 | | through (8) of this subsection (f) for such reasons, and the | 21 | | Commission so finds after notice and hearing, then the utility | 22 | | shall be excused from compliance, but only to the limited | 23 | | extent achievement of the affected metrics and performance | 24 | | goals was hindered by the less than full implementation. | 25 | | (f-5) The financial penalties applicable to the metrics | 26 | | described in subparagraphs (1) through (8) of subsection (f) of |
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| 1 | | this Section, as applicable, shall be applied through an | 2 | | adjustment to the participating utility's return on equity of | 3 | | no more than a total of 30 basis points in each of the first 3 | 4 | | years, of no more than a total of 34 basis points
in each of the | 5 | | 3 years thereafter, and of no more than a total of 38 basis | 6 | | points in each
of the 4 years thereafter, as follows: | 7 | | (1) With respect to each of the incremental annual | 8 | | performance goals established pursuant to paragraph (1) of | 9 | | subsection (f) of this Section, | 10 | | (A) for each year that a participating utility | 11 | | other than a combination utility does not achieve the | 12 | | annual goal, the participating utility's return on | 13 | | equity shall be reduced as
follows: during years 1 | 14 | | through 3, by 5 basis points ; during years 4 through 6, | 15 | | by 6 basis points; and during years 7 through 10, by 7 | 16 | | basis points; for such unachieved goal for the | 17 | | following 12-month period, and | 18 | | (B) for each year that a participating utility that | 19 | | is a combination utility does not achieve the annual | 20 | | goal, the participating utility's return on equity | 21 | | shall be reduced as follows: during years 1 through 3, | 22 | | by 10 basis points ; during years 4 through 6, by 12
| 23 | | basis points; and during years 7 through 10, by 14 | 24 | | basis points for each such unachieved goal for the | 25 | | following 12-month period . | 26 | | (2) With respect to each of the incremental annual |
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| 1 | | performance goals established pursuant to paragraph | 2 | | subparagraphs (2) , (3), and (4) of subsection (f) of this | 3 | | Section, as applicable, for each year that the | 4 | | participating utility does not achieve each such goal, the | 5 | | participating utility's return on equity shall be reduced | 6 | | as follows: during years 1 through 3, by 5 basis points ; | 7 | | during years 4
through 6, by 6 basis points; and during | 8 | | years 7 through 10, by 7 basis points for each such | 9 | | unachieved goal for the following 12-month period . | 10 | | (3) With respect to each of the incremental annual | 11 | | performance goals established
pursuant to paragraphs (3) | 12 | | and (3.5) of subsection (f) of this Section, for each year | 13 | | that a participating utility other than a combination | 14 | | utility does not achieve both such
goals, the participating | 15 | | utility's return on equity shall be reduced as follows: | 16 | | during years 1 through 3, by 5 basis points; during years 4 | 17 | | through 6, by 6 basis points; and during years 7 through | 18 | | 10, by 7 basis points. | 19 | | (4) With respect to each of the incremental annual | 20 | | performance goals established
pursuant to paragraph (4) of | 21 | | subsection (f) of this Section, for each year that the | 22 | | participating utility does not achieve each such goal, the | 23 | | participating utility's return
on equity shall be reduced | 24 | | as follows: during years 1 through 3, by 5 basis points;
| 25 | | during years 4 through 6, by 6 basis points; and during | 26 | | years 7 through 10, by 7 basis points. |
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| 1 | | (5) With respect to each of the incremental annual | 2 | | performance goals established pursuant to subparagraph (5) | 3 | | of subsection (f) of this Section, for each year that the | 4 | | participating utility does not achieve at least 95% of each | 5 | | such goal, the participating utility's return on equity | 6 | | shall be reduced by 5 basis points for each such unachieved | 7 | | goal for the following 12-month period . | 8 | | (6) (3) With respect to each of the incremental annual | 9 | | performance goals established pursuant to paragraphs (6), | 10 | | (7), and (8) of subsection (f) of this Section, as | 11 | | applicable, which together measure non-operational | 12 | | customer savings and benefits
relating to the | 13 | | implementation of the Advanced Metering Infrastructure | 14 | | Deployment
Plan, as defined in Section 16-108.6 of this | 15 | | Act, the performance under each such goal shall be | 16 | | calculated in terms of the percentage of the goal achieved. | 17 | | The percentage of goal achieved for each of the goals shall | 18 | | be aggregated, and an average percentage value calculated, | 19 | | for each year of the 10-year period. If the utility does | 20 | | not achieve an average percentage value in a given year of | 21 | | at least 95%, the participating utility's return on equity | 22 | | shall be reduced by 5 basis points for the following | 23 | | 12-month period . | 24 | | The financial penalties shall be applied as described in | 25 | | this subsection (f-5) for the 12-month period in which the | 26 | | deficiency occurred through a separate tariff mechanism, which |
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| 1 | | shall be filed by the utility together with its metrics. In the | 2 | | event the formula rate tariff established pursuant to | 3 | | subsection (c) of this Section terminates, the utility's | 4 | | obligations under subsection (f) of this Section and this | 5 | | subsection (f-5) shall also terminate, provided, however, that | 6 | | the tariff mechanism established pursuant to subsection (f) of | 7 | | this Section and this subsection (f-5) shall remain in effect | 8 | | until any penalties due and owing at the time of such | 9 | | termination are applied. | 10 | | The Commission shall, after notice and hearing, enter an | 11 | | order within 120 days after the metrics are filed approving, or | 12 | | approving with modification, a participating utility's tariff | 13 | | or mechanism to satisfy the metrics set forth in subsection (f) | 14 | | of this Section. On June 1 of each subsequent year, each | 15 | | participating utility shall file a report with the Commission | 16 | | that includes, among other things, a description of how the | 17 | | participating utility performed under each metric and an | 18 | | identification of any extraordinary events that adversely | 19 | | impacted the utility's performance. Whenever a participating | 20 | | utility does not satisfy the metrics required pursuant to | 21 | | subsection (f) of this Section, the Commission shall, after | 22 | | notice and hearing, enter an order approving financial | 23 | | penalties in accordance with this subsection (f-5). The | 24 | | Commission-approved financial penalties shall be applied | 25 | | beginning with the next rate year. Nothing in this Section | 26 | | shall authorize the Commission to reduce or otherwise obviate |
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| 1 | | the imposition of financial penalties for failing to achieve | 2 | | one or more of the metrics established pursuant to subparagraph | 3 | | (1) through (4) of subsection (f) of this Section. | 4 | | (g) On or before July 31, 2014, each participating utility | 5 | | shall file a report with the Commission that sets forth the | 6 | | average annual increase in the average amount paid per | 7 | | kilowatthour for residential eligible retail customers, | 8 | | exclusive of the effects of energy efficiency programs, | 9 | | comparing the 12-month period ending May 31, 2012; the 12-month | 10 | | period ending May 31, 2013; and the 12-month period ending May | 11 | | 31, 2014. For a participating utility that is a combination | 12 | | utility with more than one rate zone, the weighted average | 13 | | aggregate increase shall be provided. The report shall be filed | 14 | | together with a statement from an independent auditor attesting | 15 | | to the accuracy of the report. The cost of the independent | 16 | | auditor shall be borne by the participating utility and shall | 17 | | not be a recoverable expense. | 18 | | In the event that the average annual increase exceeds 2.5% | 19 | | as calculated pursuant to this subsection (g), then Sections | 20 | | 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other | 21 | | than this subsection, shall be inoperative as they relate to | 22 | | the utility and its service area as of the date of the report | 23 | | due to be submitted pursuant to this subsection and the utility | 24 | | shall no longer be eligible to annually update the | 25 | | performance-based formula rate tariff pursuant to subsection | 26 | | (d) of this Section. In such event, the then current rates |
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| 1 | | shall remain in effect until such time as new rates are set | 2 | | pursuant to Article IX of this Act, subject to retroactive | 3 | | adjustment, with interest, to reconcile rates charged with | 4 | | actual costs, and the participating utility's voluntary | 5 | | commitments and obligations under subsection (b) of this | 6 | | Section shall immediately terminate, except for the utility's | 7 | | obligation to pay an amount already owed to the fund for | 8 | | training grants pursuant to a Commission order issued under | 9 | | subsection (b) of this Section. | 10 | | In the event that the average annual increase is 2.5% or | 11 | | less as calculated pursuant to this subsection (g), then the | 12 | | performance-based formula rate shall remain in effect as set | 13 | | forth in this Section. | 14 | | For purposes of this Section, the amount per kilowatthour | 15 | | means the total amount paid for electric service expressed on a | 16 | | per kilowatthour basis, and the total amount paid for electric | 17 | | service includes without limitation amounts paid for supply, | 18 | | transmission, distribution, surcharges, and add-on taxes | 19 | | exclusive of any increases in taxes or new taxes imposed after | 20 | | the effective date of this amendatory Act of the 97th General | 21 | | Assembly. For purposes of this Section, "eligible retail | 22 | | customers" shall have the meaning set forth in Section 16-111.5 | 23 | | of this Act. | 24 | | The fact that this Section becomes inoperative as set forth | 25 | | in this subsection shall not be construed to mean that the | 26 | | Commission may reexamine or otherwise reopen prudence or |
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| 1 | | reasonableness determinations already made. | 2 | | (h) Sections 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of | 3 | | this Act, other than this subsection, are inoperative after | 4 | | December 31, 2017 for every participating utility, after which | 5 | | time a participating utility shall no longer be eligible to | 6 | | annually update the performance-based formula rate tariff | 7 | | pursuant to subsection (d) of this Section. At such time, the | 8 | | then current rates shall remain in effect until such time as | 9 | | new rates are set pursuant to Article IX of this Act, subject | 10 | | to retroactive adjustment, with interest, to reconcile rates | 11 | | charged with actual costs. | 12 | | By December 31, 2017, the Commission shall prepare and file | 13 | | with the General Assembly a report on the infrastructure | 14 | | program and the performance-based formula rate. The report | 15 | | shall include the change in the average amount per kilowatthour | 16 | | paid by residential customers between June 1, 2011 and May 31, | 17 | | 2017. If the change in the total average rate paid exceeds 2.5% | 18 | | compounded annually, the Commission shall include in the report | 19 | | an analysis that shows the portion of the change due to the | 20 | | delivery services component and the portion of the change due | 21 | | to the supply component of the rate. The report shall include | 22 | | separate sections for each participating utility. | 23 | | In the event Sections 16-108.5, 16-108.6, 16-108.7, and | 24 | | 16-108.8 of this Act do not become inoperative after December | 25 | | 31, 2017, then these Sections are inoperative after December | 26 | | 31, 2022 for every participating utility, after which time a |
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| 1 | | participating utility shall no longer be eligible to annually | 2 | | update the performance-based formula rate tariff pursuant to | 3 | | subsection (d) of this Section. At such time, the then current | 4 | | rates shall remain in effect until such time as new rates are | 5 | | set pursuant to Article IX of this Act, subject to retroactive | 6 | | adjustment, with interest, to reconcile rates charged with | 7 | | actual costs. | 8 | | The fact that this Section becomes inoperative as set forth | 9 | | in this subsection shall not be construed to mean that the | 10 | | Commission may reexamine or otherwise reopen prudence or | 11 | | reasonableness determinations already made. | 12 | | (i) While a participating utility may use, develop, and | 13 | | maintain broadband systems and the delivery of broadband | 14 | | services, voice-over-internet-protocol services, | 15 | | telecommunications services, and cable and video programming | 16 | | services for use in providing delivery services and Smart Grid | 17 | | functionality or application to its retail customers, | 18 | | including, but not limited to, the installation, | 19 | | implementation and maintenance of Smart Grid electric system | 20 | | upgrades as defined in Section 16-108.6 of this Act, a | 21 | | participating utility is prohibited from offering to its retail | 22 | | customers broadband services or the delivery of broadband | 23 | | services, voice-over-internet-protocol services, | 24 | | telecommunications services, or cable or video programming | 25 | | services, unless they are part of a service directly related to | 26 | | delivery services or Smart Grid functionality or applications |
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| 1 | | as defined in Section 16-108.6 of this Act, and from recovering | 2 | | the costs of such offerings from retail customers. | 3 | | (j) Nothing in this Section is intended to legislatively | 4 | | overturn the opinion issued in Commonwealth Edison Co. v. Ill. | 5 | | Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137, | 6 | | 1-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App. | 7 | | Ct. 2d Dist. Sept. 30, 2010). This amendatory Act of the 97th | 8 | | General Assembly shall not be construed as creating a contract | 9 | | between the General Assembly and the participating utility, and | 10 | | shall not establish a property right in the participating | 11 | | utility.
| 12 | | (Source: 09700SB1652enr.)
| 13 | | (220 ILCS 5/16-108.6) | 14 | | Sec. 16-108.6. Provisions relating to Smart Grid Advanced | 15 | | Metering Infrastructure Deployment Plan. | 16 | | (a) For purposes of this Section and Sections 16-108.7 and | 17 | | 16-108.8 of this Act: | 18 | | "Advanced Metering Infrastructure" or "AMI" means the | 19 | | communications hardware and software and associated system | 20 | | software that enables Smart Grid functions by creating a | 21 | | network between advanced meters and utility business systems | 22 | | and allowing collection and distribution of information to | 23 | | customers and other parties in addition to providing | 24 | | information to the utility itself. | 25 | | "Cost-beneficial" means a determination that the benefits |
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| 1 | | of a participating utility's Smart Grid AMI Deployment Plan | 2 | | exceed the costs of the Smart Grid AMI Deployment Plan as | 3 | | initially filed with the Commission or as subsequently modified | 4 | | by the Commission. This standard is met if the present value of | 5 | | the total benefits of the Smart Grid AMI Deployment Plan | 6 | | exceeds the present value of the total costs of the Smart Grid | 7 | | AMI Deployment Plan. The total cost shall include all utility | 8 | | costs reasonably associated with the Smart Grid AMI Deployment | 9 | | Plan. The total benefits shall include the sum of avoided | 10 | | electricity costs, including avoided utility operational | 11 | | costs, avoided consumer power, capacity, and energy costs, and | 12 | | avoided societal costs associated with the production and | 13 | | consumption of electricity, as well as other societal benefits, | 14 | | including the greater integration of renewable and distributed | 15 | | power resources, reductions in the emissions of harmful | 16 | | pollutants and associated avoided health-related costs, other | 17 | | benefits associated with energy efficiency measures, | 18 | | demand-response activities, and the enabling of greater | 19 | | penetration of alternative fuel vehicles. | 20 | | "Participating utility" has the meaning set forth in | 21 | | Section 16-108.5 of this Act. | 22 | | "Smart Grid" means investments and policies that together | 23 | | promote one or more of the following goals: | 24 | | (1) Increased use of digital information and controls | 25 | | technology to improve reliability, security, and | 26 | | efficiency of the electric grid. |
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| 1 | | (2) Dynamic optimization of grid operations and | 2 | | resources, with full cyber security. | 3 | | (3) Deployment and integration of distributed | 4 | | resources and generation, including renewable resources. | 5 | | (4) Development and incorporation of demand-response, | 6 | | demand-side resources, and energy efficiency resources. | 7 | | (5) Deployment of "smart" technologies (real-time, | 8 | | automated, interactive technologies that optimize the | 9 | | physical operation of appliances and consumer devices) for | 10 | | metering, communications concerning grid operations and | 11 | | status, and distribution automation. | 12 | | (6) Integration of "smart" appliances and consumer | 13 | | devices. | 14 | | (7) Deployment and integration of advanced electricity | 15 | | storage and peak-shaving technologies, including plug-in | 16 | | electric and hybrid electric vehicles, thermal-storage air | 17 | | conditioning and renewable energy generation. | 18 | | (8) Provision to consumers of timely information and | 19 | | control options. | 20 | | (9) Development of open access standards for | 21 | | communication and interoperability of appliances and | 22 | | equipment connected to the electric grid, including the | 23 | | infrastructure serving the grid. | 24 | | (10) Identification and lowering of unreasonable or | 25 | | unnecessary barriers to adoption of Smart Grid | 26 | | technologies, practices, services, and business models |
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| 1 | | that support energy efficiency, demand-response, and | 2 | | distributed generation. | 3 | | "Smart Grid Advisory Council" means the group of | 4 | | stakeholders formed pursuant to subsection (b) of this Section | 5 | | for the purposes of advising and working with participating | 6 | | utilities on the development and implementation of a Smart Grid | 7 | | Advanced Metering Infrastructure Deployment Plan. | 8 | | "Smart Grid electric system upgrades" means any of the | 9 | | following: | 10 | | (1) metering devices, sensors, control devices, and | 11 | | other devices integrated with and attached to an electric | 12 | | utility system that are capable of engaging in Smart Grid | 13 | | functions; | 14 | | (2) other monitoring and communications devices that | 15 | | enable Smart Grid functions, including, but not limited to, | 16 | | distribution automation; | 17 | | (3) software that enables devices or computers to | 18 | | engage in Smart Grid functions; | 19 | | (4) associated cyber secure data communication | 20 | | network, including enhancements to cyber-security | 21 | | technologies and measures; | 22 | | (5) substation micro-processor relay upgrades; | 23 | | (6) devices that allow electric or hybrid-electric | 24 | | vehicles to engage in Smart Grid functions; or | 25 | | (7) devices that enable individual consumers to | 26 | | incorporate distributed and micro-generation. |
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| 1 | | "Smart Grid electric system upgrades" does not include | 2 | | expenditures for: (1) electricity generation, transmission, or | 3 | | distribution infrastructure or equipment that does not | 4 | | directly relate to or support installing, implementing or | 5 | | enabling Smart Grid functions; (2) physical interconnection of | 6 | | generators or other devices to the grid except those that are | 7 | | directly related to enabling Smart Grid functions; or (3) | 8 | | ongoing or routine operation, billing, customer relations, | 9 | | security, and maintenance. | 10 | | "Smart Grid functions" means: | 11 | | (1) the ability to develop, store, send, and receive | 12 | | digital information concerning or enabling grid | 13 | | operations, electricity use, costs, prices, time of use, | 14 | | nature of use, storage, or other information relevant to | 15 | | device, grid, or utility operations, to or from or by means | 16 | | of the electric utility system through one or a combination | 17 | | of devices and technologies; | 18 | | (2) the ability to develop, store, send, and receive | 19 | | digital information concerning electricity use, costs, | 20 | | prices, time of use, nature of use, storage, or other | 21 | | information relevant to device, grid, or utility | 22 | | operations to or from a computer or other control device; | 23 | | (3) the ability to measure or monitor electricity use | 24 | | as a function of time of day, power quality characteristics | 25 | | such as voltage level, current, cycles per second, or | 26 | | source or type of generation and to store, synthesize, or |
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| 1 | | report that information by digital means; | 2 | | (4) the ability to sense and localize disruptions or | 3 | | changes in power flows on the grid and communicate such | 4 | | information instantaneously and automatically for purposes | 5 | | of enabling automatic protective responses to sustain | 6 | | reliability and security of grid operations; | 7 | | (5) the ability to detect, prevent, communicate with | 8 | | regard to, respond to, or recover from system security | 9 | | threats, including cyber-security threats and terrorism, | 10 | | using digital information, media, and devices; | 11 | | (6) the ability of any device or machine to respond to | 12 | | signals, measurements, or communications automatically or | 13 | | in a manner programmed by its owner or operator without | 14 | | independent human intervention; | 15 | | (7) the ability to use digital information to operate | 16 | | functionalities on the electric utility grid that were | 17 | | previously electro-mechanical or manual; | 18 | | (8) the ability to use digital controls to manage and | 19 | | modify electricity demand, enable congestion management, | 20 | | assist in voltage control, provide operating reserves, and | 21 | | provide frequency regulation; or | 22 | | (9) the ability to integrate electric plug-in | 23 | | vehicles, distributed generation, and storage in a safe and | 24 | | cost-effective manner on the electric grid. | 25 | | (b) Within 30 days after the effective date of this | 26 | | amendatory Act of the 97th General Assembly, the Smart Grid |
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| 1 | | Advisory Council shall be established, which shall consist of 9 | 2 | | 7 total voting members with each member possessing either | 3 | | technical, business or consumer expertise in Smart Grid issues , | 4 | | 5 of whom shall be appointed by and each having been the single | 5 | | appointment of one of the following: the Governor, one of whom | 6 | | shall be appointed by the Speaker of the House, one of whom | 7 | | shall be appointed by the Minority Leader of the House, one of | 8 | | whom shall be appointed by the President of the Senate, and one | 9 | | of whom shall be appointed by the Minority Leader of the | 10 | | Senate . Of the Governor's 5 appointments: (i) at least one must | 11 | | represent a non-profit membership organization whose mission | 12 | | is to cultivate innovation and technology-based economic | 13 | | development in Illinois by fostering public-private | 14 | | partnerships to develop and execute research and development | 15 | | projects, advocating for funding for research and development | 16 | | initiatives, and collaborating with public and private | 17 | | partners to attract and retain research and development | 18 | | resources and talent in Illinois; (ii) at least one must | 19 | | represent a non-profit public body corporate and politic | 20 | | created by law that has a duty to represent and protect | 21 | | residential utility consumers in Illinois; (iii) at least one | 22 | | must represent a membership organization that represents the | 23 | | interests of individuals and companies that own, operate, | 24 | | manage, and service commercial buildings in a municipality with | 25 | | a population of 1,000,000 or more inhabitants; (iv) at least | 26 | | one must represent an alternative retail electric supplier that |
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| 1 | | has obtained a certificate of service authority pursuant to | 2 | | Section 16-115 of this Act
and that is not an affiliate of a | 3 | | participating utility prior to one year after the effective | 4 | | date of this amendatory Act of the 97th General Assembly , the | 5 | | Illinois Science and Technology Coalition, and the Citizens | 6 | | Utility Board . | 7 | | The Governor shall designate one of the members of the | 8 | | Council to serve as chairman, and that person shall serve as | 9 | | the chairman at the pleasure of the Governor. The members shall | 10 | | not be compensated for serving on the Smart Grid Advisory | 11 | | Council. The Smart Grid Advisory Council shall have the | 12 | | following duties: | 13 | | (1) Serve as an advisor to participating utilities | 14 | | subject to this Section and in the manner described in this | 15 | | Section, and the recommendations provided by the Council, | 16 | | although non-binding, shall be considered by the | 17 | | utilities. | 18 | | (2) Serve as trustees of the trust or foundation | 19 | | established pursuant to Section 16-108.7 of this Act with | 20 | | the duties enumerated thereunder. | 21 | | (c) After consultation with the Smart Grid Advisory | 22 | | Council, each participating utility shall file a Smart Grid | 23 | | Advanced Metering Infrastructure Deployment Plan ("AMI Plan") | 24 | | with the Commission within 180 days after the effective date of | 25 | | this amendatory Act of the 97th General Assembly or by November | 26 | | 1, 2011, whichever is later, or in the case of a combination |
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| 1 | | utility as defined in Section 16-108.5, by April 1, 2012, | 2 | | provided that a participating utility shall not file its plan | 3 | | until the evaluation report on the Pilot Program described in | 4 | | this subsection (c) is issued. The AMI Plan shall provide for | 5 | | investment over a 10-year period that is sufficient to | 6 | | implement the AMI Plan across its entire service territory in a | 7 | | manner that is consistent with subsection (b) of Section | 8 | | 16-108.5 of this Act. The AMI Plan shall contain: | 9 | | (1) the participating utility's Smart Grid AMI vision | 10 | | statement that is consistent with the goal of developing a | 11 | | cost-beneficial Smart Grid; | 12 | | (2) a statement of Smart Grid AMI strategy that | 13 | | includes a description of how the utility evaluates and | 14 | | prioritizes technology choices to create customer value, | 15 | | including a plan to enhance and enable customers' ability | 16 | | to take advantage of Smart Grid functions beginning at the | 17 | | time an account has billed successfully on the AMI network; | 18 | | (3) a deployment schedule and plan that includes | 19 | | deployment of AMI to all customers for a participating | 20 | | utility other than a combination utility, and to 62% of all | 21 | | customers for a participating utility that is a combination | 22 | | utility; | 23 | | (4) annual milestones and metrics for the purposes of | 24 | | measuring the success of the AMI Plan in enabling Smart | 25 | | Grid functions; and enhancing consumer benefits from Smart | 26 | | Grid AMI; and |
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| 1 | | (5) a plan for the consumer education to be implemented | 2 | | by the participating utility. | 3 | | The AMI Plan shall be fully consistent with the standards | 4 | | of the National Institute of Standard and Technology (NIST) for | 5 | | Smart Grid interoperability that are in effect at the time the | 6 | | participating utility files its AMI Plan, shall include open | 7 | | standards and internet protocol to the maximum extent possible | 8 | | consistent with cyber security, and shall maximize, to the | 9 | | extent possible, a flexible smart meter platform that can | 10 | | accept remote device upgrades and contain sufficient internal | 11 | | memory capacity for additional storage capabilities, functions | 12 | | and services without the need for physical access to the meter. | 13 | | The AMI Plan shall secure the privacy of personal | 14 | | information and establish the right of consumers to consent to | 15 | | the disclosure of personal energy information to third parties | 16 | | through electronic, web-based, and other means in accordance | 17 | | with State and federal law and regulations regarding consumer | 18 | | privacy and protection of consumer data. | 19 | | After notice and hearing, the Commission shall, within 60 | 20 | | days of the filing of an AMI Plan, issue its order approving, | 21 | | or approving with modification, the AMI Plan if the Commission | 22 | | finds that the AMI Plan contains the information required in | 23 | | paragraphs (1) through (5) of this subsection (c) and further | 24 | | finds that the implementation of the AMI Plan will be | 25 | | cost-beneficial consistent with the principles established | 26 | | through the Illinois Smart Grid Collaborative, giving weight to |
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| 1 | | the results of any Commission-approved pilot designed to | 2 | | examine the benefits and costs of AMI deployment. A | 3 | | participating utility's decision to invest pursuant to an AMI | 4 | | Plan approved by the Commission shall not be subject to | 5 | | prudence reviews in subsequent Commission proceedings. Nothing | 6 | | in this subsection (c) is intended to limit the Commission's | 7 | | ability to review the reasonableness of the costs incurred | 8 | | under the AMI Plan. A participating utility shall be allowed to | 9 | | recover the reasonable costs it incurs in implementing a | 10 | | Commission-approved AMI Plan, including the costs of retired | 11 | | meters, and may recover such costs through its tariffs, | 12 | | including the performance-based formula rate tariff approved | 13 | | pursuant to subsection (c) of Section 16-108.5 of this Act. | 14 | | (d) The AMI Plan shall secure the privacy of the customer's | 15 | | personal information. "Personal information" for this purpose | 16 | | consists of the customer's name, address, telephone number, and | 17 | | other personally identifying information, as well as | 18 | | information about the customer's electric usage. Electric | 19 | | utilities, their contractors or agents, and any third party who | 20 | | comes into possession of such personal information by virtue of | 21 | | working on Smart Grid technology shall not disclose such | 22 | | personal information to be used in mailing lists or to be used | 23 | | for other commercial purposes not reasonably related to the | 24 | | conduct of the utility's business. Electric utilities shall | 25 | | comply with the consumer privacy requirements of the Personal | 26 | | Information Protection Act. In the event a participating |
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| 1 | | utility receives revenues from the sale of information obtained | 2 | | through Smart Grid technology that is not personal information, | 3 | | the participating utility shall use such revenues to offset the | 4 | | revenue requirement. | 5 | | (e) On April 1 of each year beginning in 2013 and after | 6 | | consultation with the Smart Grid Advisory Council, each | 7 | | participating utility shall submit a report regarding the | 8 | | progress it has made toward completing implementation of its | 9 | | AMI Plan. This report shall: | 10 | | (1) describe the AMI investments made during the prior | 11 | | 12 months and the AMI investments planned to be made in the | 12 | | following 12 months; | 13 | | (2) provide sufficient detail to determine the | 14 | | utility's progress in meeting the metrics and milestones | 15 | | identified by the utility in its AMI Plan; and | 16 | | (3) identify any updates to the AMI Plan. | 17 | | Within 21 days after the utility files its annual report, | 18 | | the Commission shall have authority, either upon complaint or | 19 | | its own initiative, but with reasonable notice, to enter upon | 20 | | an investigation regarding the utility's progress in | 21 | | implementing the AMI Plan as described in paragraph (1) of this | 22 | | subsection (e). If the Commission finds, after notice and | 23 | | hearing, that the participating utility's progress in | 24 | | implementing the AMI Plan is materially deficient for the given | 25 | | plan year, then the Commission shall issue an order requiring | 26 | | the participating utility to devise a corrective action plan, |
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| 1 | | subject to Commission approval and oversight, to bring | 2 | | implementation back on schedule consistent with the AMI Plan. | 3 | | The Commission's order must be entered within 90 days after the | 4 | | utility files its annual report. If the Commission does not | 5 | | initiate an investigation within 21 days after the utility | 6 | | files its annual report, then the filing shall be deemed | 7 | | accepted by the Commission. The utility shall not be required | 8 | | to suspend implementation of its AMI Plan during any Commission | 9 | | investigation. | 10 | | The participating utility's annual report regarding AMI | 11 | | Plan year 10 shall contain a statement verifying that the | 12 | | implementation of its AMI Plan is complete, provided, however, | 13 | | that if the utility is subject to a corrective action plan that | 14 | | extends the implementation period beyond 10 years, the utility | 15 | | shall include the verification statement in its final annual | 16 | | report. Following the date of a Commission order approving the | 17 | | final annual report or the date on which the final report is | 18 | | deemed accepted by the Commission, the utility's annual | 19 | | reporting obligations under this subsection (d) shall | 20 | | terminate, provided, however, that the utility shall have a | 21 | | continuing obligation to provide information, upon request, to | 22 | | the Commission and Smart Grid Advisory Council regarding the | 23 | | AMI Plan. | 24 | | (f) Each participating utility shall pay a pro rata share, | 25 | | based on number of customers, of $5,000,000 per year to the | 26 | | trust or foundation established pursuant to Section 16-108.7 of |
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| 1 | | this Act for each plan year of the AMI Plan, which shall be | 2 | | used for purposes of providing customer education regarding | 3 | | smart meters and related consumer-facing technologies and | 4 | | services and 70% of which shall be a recoverable expense; | 5 | | provided that other reasonable amounts expended by the utility | 6 | | for such consumer education shall not be subject to the 70% | 7 | | limitation of this subsection. | 8 | | (g) Within 60 days after the Commission approves a | 9 | | participating utility's AMI Plan pursuant to subsection (c) of | 10 | | this Section, the participating utility, after consultation | 11 | | with the Smart Grid Advisory Council, shall file a proposed | 12 | | tariff with the Commission that offers an opt-in market-based | 13 | | peak time rebate program to all residential retail customers | 14 | | with smart meters that is designed to provide, in a | 15 | | competitively neutral manner, rebates to those residential | 16 | | retail customers that curtail their use of electricity during | 17 | | specific periods that are identified as peak usage periods. The | 18 | | total amount of rebates shall be the amount of compensation the | 19 | | utility obtains through markets or programs at the applicable | 20 | | regional transmission organization. The utility shall make all | 21 | | reasonable attempts to secure funding for the peak time rebate | 22 | | program through markets or programs at the applicable regional | 23 | | transmission organization. The rules and procedures for | 24 | | consumers to opt-in to the peak time rebate program shall | 25 | | include electronic sign-up, be designed to maximize | 26 | | participation, and be included on the utility's website. The |
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| 1 | | Commission shall monitor the performance of programs | 2 | | established pursuant to this subsection (g) and shall order the | 3 | | termination or modification of a program if it determines that | 4 | | the program is not, after a reasonable period of time for | 5 | | development of at least 4 years, resulting in net benefits to | 6 | | the residential customers of the participating utility. | 7 | | (h) If Section 16-108.5 of this Act becomes inoperative | 8 | | with respect to one or more participating utilities as set | 9 | | forth in subsection (g) or (h) of that Section, then Sections | 10 | | 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act shall | 11 | | become inoperative as to each affected utility and its service | 12 | | area on the same date as Section 16-108.5 becomes inoperative.
| 13 | | (Source: 09700SB1652enr.)
| 14 | | (220 ILCS 5/16-108.7) | 15 | | Sec. 16-108.7. Illinois Science and Energy Innovation | 16 | | Trust. | 17 | | (a) Within 90 days of the effective date of this amendatory | 18 | | Act of the 97th General Assembly, the members of the Smart Grid | 19 | | Advisory Council established pursuant to Section 16-108.6 of | 20 | | this Act, or a majority of the members thereof, shall cause to | 21 | | be established an Illinois science and energy innovation trust | 22 | | or foundation for the purposes of providing financial and | 23 | | technical support and assistance to entities, public or | 24 | | private, within the State of Illinois including, but not | 25 | | limited to, units of State and local government, educational |
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| 1 | | and research institutions, corporations, and charitable, | 2 | | educational, environmental and community organizations, for | 3 | | programs and projects that support, encourage or utilize | 4 | | innovative technologies or other methods of modernizing the | 5 | | State's electric grid that will benefit the public by promoting | 6 | | economic development in Illinois. Such activities shall be | 7 | | supported through grants, loans, contracts, or other programs | 8 | | designed to assist and further benefit technological advances | 9 | | in the area of electric grid modernization and operation. The | 10 | | trust or foundation shall also be eligible for receipt of other | 11 | | energy and environmental grant opportunities, from public or | 12 | | private sources. The trust or foundation shall not be a | 13 | | governmental entity. | 14 | | (b) Funds received by the trust or foundation pursuant to | 15 | | subsection (f) of Section 16-108.6 of this Act shall be used | 16 | | solely for the purpose of providing consumer education | 17 | | regarding smart meters and related consumer-facing | 18 | | technologies and services and the peak time rebate program | 19 | | described in subsection (g) of Section 16-108.6 of this Act. | 20 | | Thirty percent of such funds received from each participating | 21 | | utility shall be used by the trust or foundation for purposes | 22 | | of providing such education to each participating utility's | 23 | | low-income retail customers, including low-income senior | 24 | | citizens. | 25 | | The trust or foundation shall use all funds received | 26 | | pursuant to subsection (f) of Section 16-108.6 of this Act in a |
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| 1 | | manner that reflects the unique needs and characteristics of | 2 | | each participating utility's service territory and in | 3 | | proportion to each participating utility's payment. | 4 | | (c) Such trust or foundation shall be governed by a | 5 | | declaration of trust or articles of incorporation and bylaws | 6 | | which shall, at a minimum, provide the following: | 7 | | (1) There shall initially be 9 7 trustees of the trust | 8 | | or foundation, which shall consist of the members of the | 9 | | Smart Grid Advisory Council established pursuant to | 10 | | Section 16-108.6 of this Act. Subsequently, the | 11 | | participating utilities shall appoint one trustee and the | 12 | | Clean Energy Trust shall appoint one non-voting trustee who | 13 | | shall provide expertise regarding early stage investment | 14 | | in Smart Grid projects. | 15 | | (2) All trustees shall be entitled to reimbursement for | 16 | | reasonable expenses incurred on behalf of the trust in the | 17 | | performance of their duties as trustees. All such | 18 | | reimbursements shall be paid out of the trust. | 19 | | (3) Trustees shall be appointed within 60 days after | 20 | | the creation of the trust or foundation and shall serve for | 21 | | a term of 5 years commencing upon the date of their | 22 | | respective appointments, until their respective successors | 23 | | are appointed and qualified. | 24 | | (4) A vacancy in the office of trustee shall be filled | 25 | | by the person holding the office responsible for appointing | 26 | | the trustee whose death or resignation creates the vacancy, |
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| 1 | | and a trustee appointed to fill a vacancy shall serve the | 2 | | remainder of the term of the trustee whose resignation or | 3 | | death created the vacancy. | 4 | | (5) The trust or foundation shall have an indefinite | 5 | | term and shall terminate at such time as no trust assets | 6 | | remain. | 7 | | (6) The allocation and disbursement of funds for the | 8 | | various purposes for which the trust or foundation is | 9 | | established shall be determined by the trustees in | 10 | | accordance with the declaration of trust or the articles of | 11 | | incorporation and bylaws. | 12 | | (7) The trust or foundation shall be authorized to | 13 | | employ an executive director and other employees, or | 14 | | contract management of the trust or foundation in its | 15 | | entirety to an outside organization found suitable by the | 16 | | trustees, to enter into leases, contracts and other | 17 | | obligations on behalf of the trust or foundation, and to | 18 | | incur expenses that the trustees deem necessary or | 19 | | appropriate for the fulfillment of the purposes for which | 20 | | the trust or foundation is established, provided, however, | 21 | | that salaries and administrative expenses incurred on | 22 | | behalf of the trust or foundation shall not exceed 3% of | 23 | | the trust's principal value, or $750,000, whichever is | 24 | | greater, in any given year. The trustees shall not be | 25 | | compensated by the trust or foundation. | 26 | | (8) The trustees may create and appoint advisory boards |
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| 1 | | or committees to assist them with the administration of the | 2 | | trust or foundation, and to advise and make recommendations | 3 | | to them regarding the contribution and disbursement of the | 4 | | trust or foundation funds. | 5 | | (9) All funds dispersed by the trust or foundation for | 6 | | programs and projects to meet the objectives of the trust | 7 | | or foundation as enumerated in this Section shall be | 8 | | subject to a peer-review process as determined by the | 9 | | trustees. This process shall be designed to determine, in | 10 | | an objective and unbiased manner, those programs and | 11 | | projects that best fit the objectives of the trust or | 12 | | foundation. In each fiscal year the trustees shall | 13 | | determine, based solely on the information provided | 14 | | through the peer-review process, a budget for programs and | 15 | | projects for that fiscal year. | 16 | | (10) The trustees shall administer a Smart Grid | 17 | | education fund from which it shall make grants to qualified | 18 | | not-for-profit organizations for the purpose of educating | 19 | | customers with regard to smart meters and related | 20 | | consumer-facing technologies and services. In making such | 21 | | grants the trust or foundation shall strongly encourage | 22 | | grantees to coordinate to the extent practicable and | 23 | | consider recommendations from the participating utilities | 24 | | regarding the development and implementation of customer | 25 | | education plans. | 26 | | (11) One of the objectives of the trust or foundation |
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| 1 | | is to remain self-funding. In order to meet this objective, | 2 | | the trustees may sign agreements with those entities | 3 | | receiving funding that provide for license fees, | 4 | | royalties, or other payments to the trust or foundation | 5 | | from such entities that receive support for their product | 6 | | development from the trust or foundation. Such payments, | 7 | | however, shall be contingent on the commercialization of | 8 | | such products, services, or technologies enabled by the | 9 | | funding provided by the trust or foundation. | 10 | | (d) The trustees shall notify each participating utility as | 11 | | defined in Section 16-108.5 of this Act of the formation of the | 12 | | trust or foundation. Within 90 days after receipt of the | 13 | | notification, each participating utility that is not a | 14 | | combination utility as defined in Section 16-108.5 of this Act | 15 | | shall contribute $15,000,000 to the trust or foundation, and | 16 | | each participating utility that is a combination utility, as | 17 | | defined in Section 16-108.5 of this Act, shall contribute | 18 | | $7,500,000 to the trust or foundation established pursuant to | 19 | | this Section. Such contributions shall not be a recoverable | 20 | | expense. | 21 | | (e) If Section 16-108.5 of this Act becomes inoperative | 22 | | with respect to one or more participating utilities as set | 23 | | forth in subsection (g) or (h) of that Section, then Sections | 24 | | 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act shall | 25 | | become inoperative as to each affected utility and its service | 26 | | area on the same date as Section 16-108.5 becomes inoperative.
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| 1 | | (Source: 09700SB1652enr.)
| 2 | | (220 ILCS 5/16-128)
| 3 | | Sec. 16-128. Provisions related to utility employees
| 4 | | during the mandatory transition period . | 5 | | (a) The General Assembly finds:
| 6 | | (1) The reliability and safety of the electric system | 7 | | has depended and depends on a
workforce of skilled and | 8 | | dedicated employees, equipped with technical training
and | 9 | | experience.
| 10 | | (2) The integrity and reliability of the system also | 11 | | requires the
industry's commitment to invest in regular | 12 | | inspection and maintenance, to
assure that it can withstand | 13 | | the demands of heavy service requirements and
emergency | 14 | | situations.
| 15 | | (3) It is in the State's interest to protect the | 16 | | interests of utility
employees who have and continue to | 17 | | dedicate themselves to assuring reliable service to the
| 18 | | citizens of this State, and who might otherwise be | 19 | | economically displaced in a
restructured industry.
| 20 | | The General Assembly further finds that it is
necessary to | 21 | | assure that employees of electric utilities and employees of | 22 | | contractors or subcontractors performing work on behalf of an | 23 | | electric utility operating in the
deregulated industry have the | 24 | | requisite skills, knowledge, training, experience, and
| 25 | | competence to provide reliable and safe electrical service |
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| 1 | | under this Act
.
| 2 | | The General Assembly also finds that it is necessary to | 3 | | assure that employees of alternative retail electric suppliers | 4 | | and employees of contractors or subcontractors performing work | 5 | | on behalf of an alternative retail electric supplier operating | 6 | | in the deregulated industry have the requisite skills, | 7 | | knowledge, training, experience, and competence to provide | 8 | | reliable and safe electrical service under this Act. | 9 | | To ensure that these findings and prerequisites for | 10 | | reliable and safe electrical service continue to prevail, each | 11 | | alternative retail electric supplier, electric utility, and | 12 | | contractors and subcontractors performing work on behalf of an | 13 | | electric utility or alternative retail electric supplier must | 14 | | demonstrate the competence of their respective employees to | 15 | | work on the distribution system. | 16 | | The knowledge, skill, training, experience, and competence | 17 | | levels to be
demonstrated shall be consistent with those | 18 | | required
of or by the electric utilities in this State as of | 19 | | January 1, 2007, with respect to
their employees and employees | 20 | | of contractors or subcontractors performing work on their | 21 | | behalf. Nothing in this Section shall prohibit an electric | 22 | | utility from establishing knowledge, skill, training, | 23 | | experience, and competence levels greater than those required | 24 | | as of January 1, 2007.
| 25 | | An adequate demonstration of requisite knowledge, skill, | 26 | | training, experience, and
competence shall include, at a |
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| 1 | | minimum, completion or current participation and ultimate | 2 | | completion by the
employee of an accredited or otherwise | 3 | | recognized
apprenticeship program for the particular craft, | 4 | | trade or
skill, or specified and several years of employment | 5 | | performing a particular work function that is utilized by an | 6 | | electric utility.
| 7 | | Notwithstanding any law, tariff, Commission rule, order, | 8 | | or decision to the contrary, the Commission shall have an | 9 | | affirmative statutory obligation to ensure that an electric | 10 | | utility is employing employees, contractors, and | 11 | | subcontractors with employees who meet the requirements of | 12 | | subsection (a) of this Section when installing, constructing, | 13 | | operating, and maintaining generation, transmission, or | 14 | | distribution facilities and equipment within this State | 15 | | pursuant to any provision in this Act or any Commission order, | 16 | | rule, or decision. | 17 | | For purposes of this Section, "distribution facilities and | 18 | | equipment" means any and all of the facilities and equipment, | 19 | | including, but not limited to, substations, distribution | 20 | | feeder circuits, switches, meters, protective equipment, | 21 | | primary circuits, distribution transformers, line extensions | 22 | | and service extensions both above or below ground, conduit, | 23 | | risers, elbows, transformer pads, junction boxes, manholes, | 24 | | pedestals, conductors, and all associated fittings that | 25 | | connect the transmission or distribution system to either the | 26 | | weatherhead on the retail customer's building or other |
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| 1 | | structure for above ground service or to the terminals on the | 2 | | meter base of the retail customer's building or other structure | 3 | | for below ground service. | 4 | | To implement this requirement for alternative retail | 5 | | electric suppliers, the Commission, in
determining that an | 6 | | applicant meets the standards for
certification as an | 7 | | alternative retail electric supplier,
shall require the | 8 | | applicant to demonstrate (i) that the
applicant is licensed to | 9 | | do business, and bonded, in the State
of Illinois; and (ii) | 10 | | that the employees of the applicant that
will be installing, | 11 | | operating, and maintaining generation,
transmission, or | 12 | | distribution facilities within this State, or
any entity with | 13 | | which the applicant has contracted to perform
those functions | 14 | | within this State, have the requisite knowledge, skills, | 15 | | training, experience, and
competence to perform those | 16 | | functions in a safe and
responsible manner in order to provide | 17 | | safe and reliable
service, in accordance with the criteria | 18 | | stated above.
| 19 | | (b) The General Assembly finds, based on experience in
| 20 | | other industries that have undergone similar transitions, that
| 21 | | the introduction of competition into the State's electric
| 22 | | utility industry may result in workforce reductions by
electric | 23 | | utilities which may adversely affect persons who have
been | 24 | | employed by this State's electric utilities in functions
| 25 | | important to the public convenience and welfare. The General
| 26 | | Assembly further finds that the impacts on employees and their
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| 1 | | communities of any necessary reductions in the utility
| 2 | | workforce directly caused by this restructuring of the
electric | 3 | | industry shall be mitigated to the extent
practicable through | 4 | | such means as offers of voluntary
severance, retraining, early | 5 | | retirement, outplacement and
related benefits. Therefore, | 6 | | before any such reduction in the
workforce during the | 7 | | transition period, an electric utility
shall present to its | 8 | | employees or their representatives a
workforce reduction plan | 9 | | outlining the means by which the
electric utility intends to | 10 | | mitigate the impact of such
workforce reduction on its | 11 | | employees.
| 12 | | (c) In the event of a sale, purchase, or any other transfer
| 13 | | of ownership during the mandatory transition period of one or
| 14 | | more Illinois divisions or business units, and/or generating
| 15 | | stations or generating units, of an electric utility, the
| 16 | | electric utility's contract and/or agreements with the
| 17 | | acquiring entity or persons shall require that the entity or
| 18 | | persons hire a sufficient number of non-supervisory employees
| 19 | | to operate and maintain the station, division or unit by
| 20 | | initially making offers of employment to the non-supervisory
| 21 | | workforce of the electric utility's division, business unit,
| 22 | | generating station and/or generating unit at no less than the
| 23 | | wage rates, and substantially equivalent fringe benefits and
| 24 | | terms and conditions of employment that are in effect at the
| 25 | | time of transfer of ownership of said division, business unit,
| 26 | | generating station, and/or generating units; and said wage
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| 1 | | rates and substantially equivalent fringe benefits and terms
| 2 | | and conditions of employment shall continue for at least 30
| 3 | | months from the time of said transfer of ownership unless the
| 4 | | parties mutually agree to different terms and conditions of
| 5 | | employment within that 30-month period. The utility shall
offer | 6 | | a transition plan to those employees who are not offered
jobs | 7 | | by the acquiring entity because that entity has a need
for | 8 | | fewer workers. If there is litigation concerning the
sale, or | 9 | | other transfer of ownership of the electric utility's
| 10 | | divisions, business units, generating station, or
generating | 11 | | units, the 30-month period will begin on the date
the acquiring | 12 | | entity or persons take control or management
of the divisions, | 13 | | business units, generating station or
generating units of the | 14 | | electric utility.
| 15 | | (d) If a utility transfers ownership during the mandatory
| 16 | | transition period of one or more Illinois divisions, business
| 17 | | units, generating stations or generating units of an
electric | 18 | | utility to a majority-owned subsidiary, that
subsidiary shall | 19 | | continue to employ the utility's employees
who were employed by | 20 | | the utility at such division, business
unit or generating | 21 | | station at the time of the transfer under
the same terms and | 22 | | conditions of employment as those employees
enjoyed at the time | 23 | | of the transfer. If ownership of the
subsidiary is subsequently | 24 | | sold or transferred to a third
party during the transition | 25 | | period, the transition provisions
outlined in subsection (c) | 26 | | shall apply.
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| 1 | | (e) The plant transfer provisions set forth above shall not
| 2 | | apply to any generating station which was the subject of a
| 3 | | sales agreement entered into before January 1, 1997.
| 4 | | (Source: P.A. 90-561, eff. 12-16-97; 09700SB1652enr.)
| 5 | | Section 99. Effective date. This Act takes effect upon | 6 | | becoming law.".
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