Full Text of SB1884 97th General Assembly
SB1884sam001 97TH GENERAL ASSEMBLY | Sen. David Koehler Filed: 3/4/2011
| | 09700SB1884sam001 | | LRB097 10170 ASK 51941 a |
|
| 1 | | AMENDMENT TO SENATE BILL 1884
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1884 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Public Utilities Act is amended by changing | 5 | | Section 8-103 as follows:
| 6 | | (220 ILCS 5/8-103)
| 7 | | Sec. 8-103. Energy efficiency and demand-response | 8 | | measures. | 9 | | (a) It is the policy of the State that electric utilities | 10 | | are required to use cost-effective energy efficiency and | 11 | | demand-response measures to reduce delivery load. Requiring | 12 | | investment in cost-effective energy efficiency and | 13 | | demand-response measures will reduce direct and indirect costs | 14 | | to consumers by decreasing environmental impacts and by | 15 | | avoiding or delaying the need for new generation, transmission, | 16 | | and distribution infrastructure. It serves the public interest |
| | | 09700SB1884sam001 | - 2 - | LRB097 10170 ASK 51941 a |
|
| 1 | | to allow electric utilities to recover costs for reasonably and | 2 | | prudently incurred expenses for energy efficiency and | 3 | | demand-response measures. As used in this Section, | 4 | | "cost-effective" means that the measures satisfy the total | 5 | | resource cost test. The low-income measures described in | 6 | | subsection (f)(4) of this Section shall not be required to meet | 7 | | the total resource cost test. For purposes of this Section, the | 8 | | terms "energy-efficiency", "demand-response", "electric | 9 | | utility", and "total resource cost test" shall have the | 10 | | meanings set forth in the Illinois Power Agency Act. For | 11 | | purposes of this Section, the amount per kilowatthour means the | 12 | | total amount paid for electric service expressed on a per | 13 | | kilowatthour basis. For purposes of this Section, the total | 14 | | amount paid for electric service includes without limitation | 15 | | estimated amounts paid for supply, transmission, distribution, | 16 | | surcharges, and add-on-taxes. | 17 | | (b) Electric utilities shall implement cost-effective | 18 | | energy efficiency measures to meet the following incremental | 19 | | annual energy savings goals: | 20 | | (1) 0.2% of energy delivered in the year commencing | 21 | | June 1, 2008; | 22 | | (2) 0.4% of energy delivered in the year commencing | 23 | | June 1, 2009; | 24 | | (3) 0.6% of energy delivered in the year commencing | 25 | | June 1, 2010; | 26 | | (4) 0.8% of energy delivered in the year commencing |
| | | 09700SB1884sam001 | - 3 - | LRB097 10170 ASK 51941 a |
|
| 1 | | June 1, 2011; | 2 | | (5) The higher of 1% of energy delivered in the year | 3 | | commencing June 1, 2012, or the amount necessary to produce | 4 | | net lifetime customer savings equal to the cost of any | 5 | | incremental capital investments made during the calendar | 6 | | year 2011 1% of energy delivered in the year commencing | 7 | | June 1, 2012 ; | 8 | | (6) The higher of 1.4% of energy delivered in the year | 9 | | commencing June 1, 2013, or the amount necessary to produce | 10 | | net lifetime customer savings equal to the cost of any | 11 | | incremental capital investments made during calendar year | 12 | | 2012 1.4% of energy delivered in the year commencing June | 13 | | 1, 2013 ; | 14 | | (7) The higher of 1.8% of energy delivered in the year | 15 | | commencing June 1, 2014, or the amount necessary to produce | 16 | | net lifetime customer savings equal to the cost of any | 17 | | incremental capital investment made during calendar year | 18 | | 2013 1.8% of energy delivered in the year commencing June | 19 | | 1, 2014 ; and | 20 | | (8) In each year hereafter, the higher of 2% of energy | 21 | | delivered in the year commencing June 1, 2015, or the | 22 | | amount necessary to produce net lifetime customer savings | 23 | | equal to the cost of any incremental capital investment | 24 | | made during the preceding calendar year 2% of energy | 25 | | delivered in the year commencing June 1, 2015 and each year | 26 | | thereafter . |
| | | 09700SB1884sam001 | - 4 - | LRB097 10170 ASK 51941 a |
|
| 1 | | For purposes of this subsection (b), "incremental capital | 2 | | investments" means those investments that exceed the utility's | 3 | | capital spend in calendar years 2008, 2009, and 2010 as | 4 | | reported in the applicable Federal Energy Regulatory | 5 | | Commission Form 2, or if the FERC Form 2 was not filed, in the | 6 | | applicable Form 21 ILCC. | 7 | | (c) Electric utilities shall implement cost-effective | 8 | | demand-response measures to reduce peak demand by 0.1% over the | 9 | | prior year for eligible retail customers, as defined in Section | 10 | | 16-111.5 of this Act, and for customers that elect hourly | 11 | | service from the utility pursuant to Section 16-107 of this | 12 | | Act, provided those customers have not been declared | 13 | | competitive. This requirement commences June 1, 2008 and | 14 | | continues for 10 years. | 15 | | (d) Notwithstanding the requirements of subsections (b) | 16 | | and (c) of this Section, an electric utility shall reduce the | 17 | | amount of energy efficiency and demand-response measures | 18 | | implemented in any single year by an amount necessary to limit | 19 | | the estimated average increase in the amounts paid by retail | 20 | | customers in connection with electric service due to the cost | 21 | | of those measures to: | 22 | | (1) in 2008, no more than 0.5% of the amount paid per | 23 | | kilowatthour by those customers during the year ending May | 24 | | 31, 2007; | 25 | | (2) in 2009, the greater of an additional 0.5% of the | 26 | | amount paid per kilowatthour by those customers during the |
| | | 09700SB1884sam001 | - 5 - | LRB097 10170 ASK 51941 a |
|
| 1 | | year ending May 31, 2008 or 1% of the amount paid per | 2 | | kilowatthour by those customers during the year ending May | 3 | | 31, 2007; | 4 | | (3) in 2010, the greater of an additional 0.5% of the | 5 | | amount paid per kilowatthour by those customers during the | 6 | | year ending May 31, 2009 or 1.5% of the amount paid per | 7 | | kilowatthour by those customers during the year ending May | 8 | | 31, 2007; | 9 | | (4) in 2011, the greater of an additional 0.5% of the | 10 | | amount paid per kilowatthour by those customers during the | 11 | | year ending May 31, 2010 or 2% of the amount paid per | 12 | | kilowatthour by those customers during the year ending May | 13 | | 31, 2007; and
| 14 | | (5) thereafter, the amount of energy efficiency and | 15 | | demand-response measures implemented for any single year | 16 | | shall be reduced by an amount necessary to limit the | 17 | | estimated average net increase due to the cost of these | 18 | | measures included in the amounts paid by eligible retail | 19 | | customers in connection with electric service to no more | 20 | | than the greater of 2.015% of the amount paid per | 21 | | kilowatthour by those customers during the year ending May | 22 | | 31, 2007 or the incremental amount per kilowatthour paid | 23 | | for these measures in 2011 , unless the Commission concludes | 24 | | during a plan filing proceeding under subsection (f) of | 25 | | this Section that the limitation would result in the | 26 | | utility foregoing cost-effective opportunities for savings |
| | | 09700SB1884sam001 | - 6 - | LRB097 10170 ASK 51941 a |
|
| 1 | | that would otherwise create net aggregate bill reductions | 2 | | for its customers .
| 3 | | No later than June 30, 2011, the Commission shall review | 4 | | the limitation on the amount of energy efficiency and | 5 | | demand-response measures implemented pursuant to this Section | 6 | | and report to the General Assembly its findings as to whether | 7 | | that limitation unduly constrains the procurement of energy | 8 | | efficiency and demand-response measures. | 9 | | (e) Electric utilities shall be responsible for overseeing | 10 | | the design, development, and filing of energy efficiency and | 11 | | demand-response plans with the Commission. Electric utilities | 12 | | shall implement 100% of the demand-response measures in the | 13 | | plans. Electric utilities shall implement 75% of the energy | 14 | | efficiency measures approved by the Commission, and may, as | 15 | | part of that implementation, outsource various aspects of | 16 | | program development and implementation. The remaining 25% of | 17 | | those energy efficiency measures approved by the Commission | 18 | | shall be implemented by the Department of Commerce and Economic | 19 | | Opportunity, and must be designed in conjunction with the | 20 | | utility and the filing process. The Department may outsource | 21 | | development and implementation of energy efficiency measures. | 22 | | A minimum of 10% of the entire portfolio of cost-effective | 23 | | energy efficiency measures shall be procured from units of | 24 | | local government, municipal corporations, school districts, | 25 | | and community college districts. The Department shall | 26 | | coordinate the implementation of these measures. |
| | | 09700SB1884sam001 | - 7 - | LRB097 10170 ASK 51941 a |
|
| 1 | | The apportionment of the dollars to cover the costs to | 2 | | implement the Department's share of the portfolio of energy | 3 | | efficiency measures shall be made to the Department once the | 4 | | Department has executed grants or contracts for energy | 5 | | efficiency measures and provided supporting documentation for | 6 | | those grants and the contracts to the utility. | 7 | | The details of the measures implemented by the Department | 8 | | shall be submitted by the Department to the Commission in | 9 | | connection with the utility's filing regarding the energy | 10 | | efficiency and demand-response measures that the utility | 11 | | implements. | 12 | | A utility providing approved energy efficiency and | 13 | | demand-response measures in the State shall be permitted to | 14 | | recover costs of those measures through an automatic adjustment | 15 | | clause tariff filed with and approved by the Commission. The | 16 | | tariff shall be established outside the context of a general | 17 | | rate case. Each year the Commission shall initiate a review to | 18 | | reconcile any amounts collected with the actual costs and to | 19 | | determine the required adjustment to the annual tariff factor | 20 | | to match annual expenditures. | 21 | | Each utility shall include, in its recovery of costs, the | 22 | | costs estimated for both the utility's and the Department's | 23 | | implementation of energy efficiency and demand-response | 24 | | measures. Costs collected by the utility for measures | 25 | | implemented by the Department shall be submitted to the | 26 | | Department pursuant to Section 605-323 of the Civil |
| | | 09700SB1884sam001 | - 8 - | LRB097 10170 ASK 51941 a |
|
| 1 | | Administrative Code of Illinois and shall be used by the | 2 | | Department solely for the purpose of implementing these | 3 | | measures. A utility shall not be required to advance any moneys | 4 | | to the Department but only to forward such funds as it has | 5 | | collected. The Department shall report to the Commission on an | 6 | | annual basis regarding the costs actually incurred by the | 7 | | Department in the implementation of the measures. Any changes | 8 | | to the costs of energy efficiency measures as a result of plan | 9 | | modifications shall be appropriately reflected in amounts | 10 | | recovered by the utility and turned over to the Department. | 11 | | The portfolio of measures, administered by both the | 12 | | utilities and the Department, shall, in combination, be | 13 | | designed to achieve the annual savings targets described in | 14 | | subsections (b) and (c) of this Section, as modified by | 15 | | subsection (d) of this Section. | 16 | | The utility and the Department shall agree upon a | 17 | | reasonable portfolio of measures and determine the measurable | 18 | | corresponding percentage of the savings goals associated with | 19 | | measures implemented by the utility or Department. | 20 | | No utility shall be assessed a penalty under subsection (f) | 21 | | of this Section for failure to make a timely filing if that | 22 | | failure is the result of a lack of agreement with the | 23 | | Department with respect to the allocation of responsibilities | 24 | | or related costs or target assignments. In that case, the | 25 | | Department and the utility shall file their respective plans | 26 | | with the Commission and the Commission shall determine an |
| | | 09700SB1884sam001 | - 9 - | LRB097 10170 ASK 51941 a |
|
| 1 | | appropriate division of measures and programs that meets the | 2 | | requirements of this Section. | 3 | | If the Department is unable to meet incremental annual | 4 | | performance goals for the portion of the portfolio implemented | 5 | | by the Department, then the utility and the Department shall | 6 | | jointly submit a modified filing to the Commission explaining | 7 | | the performance shortfall and recommending an appropriate | 8 | | course going forward, including any program modifications that | 9 | | may be appropriate in light of the evaluations conducted under | 10 | | item (7) of subsection (f) of this Section. In this case, the | 11 | | utility obligation to collect the Department's costs and turn | 12 | | over those funds to the Department under this subsection (e) | 13 | | shall continue only if the Commission approves the | 14 | | modifications to the plan proposed by the Department. | 15 | | (f) No later than November 15, 2007, each electric utility | 16 | | shall file an energy efficiency and demand-response plan with | 17 | | the Commission to meet the energy efficiency and | 18 | | demand-response standards for 2008 through 2010. Every 3 years | 19 | | thereafter, each electric utility shall file, no later than | 20 | | October 1, an energy efficiency and demand-response plan with | 21 | | the Commission. If a utility does not file such a plan by | 22 | | October 1 of an applicable year, it shall face a penalty of | 23 | | $100,000 per day until the plan is filed. Each utility's plan | 24 | | shall set forth the utility's proposals to meet the utility's | 25 | | portion of the energy efficiency standards identified in | 26 | | subsection (b) and the demand-response standards identified in |
| | | 09700SB1884sam001 | - 10 - | LRB097 10170 ASK 51941 a |
|
| 1 | | subsection (c) of this Section as modified by subsections (d) | 2 | | and (e), taking into account the unique circumstances of the | 3 | | utility's service territory. The Commission shall seek public | 4 | | comment on the utility's plan and shall issue an order | 5 | | approving or disapproving each plan within 3 months after its | 6 | | submission. If the Commission disapproves a plan, the | 7 | | Commission shall, within 30 days, describe in detail the | 8 | | reasons for the disapproval and describe a path by which the | 9 | | utility may file a revised draft of the plan to address the | 10 | | Commission's concerns satisfactorily. If the utility does not | 11 | | refile with the Commission within 60 days, the utility shall be | 12 | | subject to penalties at a rate of $100,000 per day until the | 13 | | plan is filed. This process shall continue, and penalties shall | 14 | | accrue, until the utility has successfully filed a portfolio of | 15 | | energy efficiency and demand-response measures. Penalties | 16 | | shall be deposited into the Energy Efficiency Trust Fund. In | 17 | | submitting proposed energy efficiency and demand-response | 18 | | plans and funding levels to meet the savings goals adopted by | 19 | | this Act the utility shall: | 20 | | (1) Demonstrate that its proposed energy efficiency | 21 | | and demand-response measures will achieve the requirements | 22 | | that are identified in subsections (b) and (c) of this | 23 | | Section, as modified by subsections (d) and (e). | 24 | | (2) Present specific proposals to implement new | 25 | | building and appliance standards that have been placed into | 26 | | effect. |
| | | 09700SB1884sam001 | - 11 - | LRB097 10170 ASK 51941 a |
|
| 1 | | (3) Present estimates of the total amount paid for | 2 | | electric service expressed on a per kilowatthour basis | 3 | | associated with the proposed portfolio of measures | 4 | | designed to meet the requirements that are identified in | 5 | | subsections (b) and (c) of this Section, as modified by | 6 | | subsections (d) and (e). | 7 | | (4) Coordinate with the Department to present a | 8 | | portfolio of energy efficiency measures proportionate to | 9 | | the share of total annual utility revenues in Illinois from | 10 | | households at or below 150% of the poverty level. The | 11 | | energy efficiency programs shall be targeted to households | 12 | | with incomes at or below 80% of area median income. | 13 | | (5) Demonstrate that its overall portfolio of energy | 14 | | efficiency and demand-response measures, not including | 15 | | programs covered by item (4) of this subsection (f), are | 16 | | cost-effective using the total resource cost test and | 17 | | represent a diverse cross-section of opportunities for | 18 | | customers of all rate classes to participate in the | 19 | | programs. | 20 | | (6) Include a proposed cost-recovery tariff mechanism | 21 | | to fund the proposed energy efficiency and demand-response | 22 | | measures and to ensure the recovery of the prudently and | 23 | | reasonably incurred costs of Commission-approved programs. | 24 | | (7) Provide for an annual independent evaluation of the | 25 | | performance of the cost-effectiveness of the utility's | 26 | | portfolio of measures and the Department's portfolio of |
| | | 09700SB1884sam001 | - 12 - | LRB097 10170 ASK 51941 a |
|
| 1 | | measures, as well as a full review of the 3-year results of | 2 | | the broader net program impacts and, to the extent | 3 | | practical, for adjustment of the measures on a | 4 | | going-forward basis as a result of the evaluations. The | 5 | | resources dedicated to evaluation shall not exceed 3% of | 6 | | portfolio resources in any given year. | 7 | | (g) No more than 3% of energy efficiency and | 8 | | demand-response program revenue may be allocated for | 9 | | demonstration of breakthrough equipment and devices. | 10 | | (h) This Section does not apply to an electric utility that | 11 | | on December 31, 2005 provided electric service to fewer than | 12 | | 100,000 customers in Illinois. | 13 | | (i) If, after 2 years, an electric utility fails to meet | 14 | | the efficiency standard specified in subsection (b) of this | 15 | | Section, as modified by subsections (d) and (e), it shall make | 16 | | a contribution to the Low-Income Home Energy Assistance | 17 | | Program. The combined total liability for failure to meet the | 18 | | goal shall be $1,000,000, which shall be assessed as follows: a | 19 | | large electric utility shall pay $665,000, and a medium | 20 | | electric utility shall pay $335,000. If, after 3 years, an | 21 | | electric utility fails to meet the efficiency standard | 22 | | specified in subsection (b) of this Section, as modified by | 23 | | subsections (d) and (e), it shall make a contribution to the | 24 | | Low-Income Home Energy Assistance Program. The combined total | 25 | | liability for failure to meet the goal shall be $1,000,000, | 26 | | which shall be assessed as follows: a large electric utility |
| | | 09700SB1884sam001 | - 13 - | LRB097 10170 ASK 51941 a |
|
| 1 | | shall pay $665,000, and a medium electric utility shall pay | 2 | | $335,000. In addition, the responsibility for implementing the | 3 | | energy efficiency measures of the utility making the payment | 4 | | shall be transferred to the Illinois Power Agency if, after 3 | 5 | | years, or in any subsequent 3-year period, the utility fails to | 6 | | meet the efficiency standard specified in subsection (b) of | 7 | | this Section, as modified by subsections (d) and (e). The | 8 | | Agency shall implement a competitive procurement program to | 9 | | procure resources necessary to meet the standards specified in | 10 | | this Section as modified by subsections (d) and (e), with costs | 11 | | for those resources to be recovered in the same manner as | 12 | | products purchased through the procurement plan as provided in | 13 | | Section 16-111.5. The Director shall implement this | 14 | | requirement in connection with the procurement plan as provided | 15 | | in Section 16-111.5. | 16 | | For purposes of this Section, (i) a "large electric | 17 | | utility" is an electric utility that, on December 31, 2005, | 18 | | served more than 2,000,000 electric customers in Illinois; (ii) | 19 | | a "medium electric utility" is an electric utility that, on | 20 | | December 31, 2005, served 2,000,000 or fewer but more than | 21 | | 100,000 electric customers in Illinois; and (iii) Illinois | 22 | | electric utilities that are affiliated by virtue of a common | 23 | | parent company are considered a single electric utility. | 24 | | (j) If, after 3 years, or any subsequent 3-year period, the | 25 | | Department fails to implement the Department's share of energy | 26 | | efficiency measures required by the standards in subsection |
| | | 09700SB1884sam001 | - 14 - | LRB097 10170 ASK 51941 a |
|
| 1 | | (b), then the Illinois Power Agency may assume responsibility | 2 | | for and control of the Department's share of the required | 3 | | energy efficiency measures. The Agency shall implement a | 4 | | competitive procurement program to procure resources necessary | 5 | | to meet the standards specified in this Section, with the costs | 6 | | of these resources to be recovered in the same manner as | 7 | | provided for the Department in this Section.
| 8 | | (k) No electric utility shall be deemed to have failed to | 9 | | meet the energy efficiency standards to the extent any such | 10 | | failure is due to a failure of the Department or the Agency.
| 11 | | (Source: P.A. 95-481, eff. 8-28-07; 95-876, eff. 8-21-08; | 12 | | 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; 96-1000, eff. | 13 | | 7-2-10.)
| 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.".
|
|