Full Text of HB3808 103rd General Assembly
HB3808sam001 103RD GENERAL ASSEMBLY | Sen. Bill Cunningham Filed: 5/18/2023
| | 10300HB3808sam001 | | LRB103 30973 SPS 62190 a |
|
| 1 | | AMENDMENT TO HOUSE BILL 3808
| 2 | | AMENDMENT NO. ______. Amend House Bill 3808 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Public Utilities Act is amended by | 5 | | changing Sections 16-108.5, 21-201, and 21-801 as follows: | 6 | | (220 ILCS 5/16-108.5) | 7 | | Sec. 16-108.5. Infrastructure investment and | 8 | | modernization; regulatory reform. | 9 | | (a) (Blank). | 10 | | (b) For purposes of this Section, "participating utility" | 11 | | means an electric utility or a combination utility serving | 12 | | more than 1,000,000 customers in Illinois that voluntarily | 13 | | elects and commits to undertake (i) the infrastructure | 14 | | investment program consisting of the commitments and | 15 | | obligations described in this subsection (b) and (ii) the | 16 | | customer assistance program consisting of the commitments and |
| | | 10300HB3808sam001 | - 2 - | LRB103 30973 SPS 62190 a |
|
| 1 | | obligations described in subsection (b-10) of this Section, | 2 | | notwithstanding any other provisions of this Act and without | 3 | | obtaining any approvals from the Commission or any other | 4 | | agency other than as set forth in this Section, regardless of | 5 | | whether any such approval would otherwise be required. | 6 | | "Combination utility" means a utility that, as of January 1, | 7 | | 2011, provided electric service to at least one million retail | 8 | | customers in Illinois and gas service to at least 500,000 | 9 | | retail customers in Illinois. A participating utility shall | 10 | | recover the expenditures made under the infrastructure | 11 | | investment program through the ratemaking process, including, | 12 | | but not limited to, the performance-based formula rate and | 13 | | process set forth in this Section. | 14 | | During the infrastructure investment program's peak | 15 | | program year, a participating utility other than a combination | 16 | | utility shall create 2,000 full-time equivalent jobs in | 17 | | Illinois, and a participating utility that is a combination | 18 | | utility shall create 450 full-time equivalent jobs in Illinois | 19 | | related to the provision of electric service. These jobs shall | 20 | | include direct jobs, contractor positions, and induced jobs, | 21 | | but shall not include any portion of a job commitment, not | 22 | | specifically contingent on an amendatory Act of the 97th | 23 | | General Assembly becoming law, between a participating utility | 24 | | and a labor union that existed on December 30, 2011 (the | 25 | | effective date of Public Act 97-646) and that has not yet been | 26 | | fulfilled. A portion of the full-time equivalent jobs created |
| | | 10300HB3808sam001 | - 3 - | LRB103 30973 SPS 62190 a |
|
| 1 | | by each participating utility shall include incremental | 2 | | personnel hired subsequent to December 30, 2011 (the effective | 3 | | date of Public Act 97-646). For purposes of this Section, | 4 | | "peak program year" means the consecutive 12-month period with | 5 | | the highest number of full-time equivalent jobs that occurs | 6 | | between the beginning of investment year 2 and the end of | 7 | | investment year 4. | 8 | | A participating utility shall meet one of the following | 9 | | commitments, as applicable: | 10 | | (1) Beginning no later than 180 days after a | 11 | | participating utility other than a combination utility | 12 | | files a performance-based formula rate tariff pursuant to | 13 | | subsection (c) of this Section, or, beginning no later | 14 | | than January 1, 2012 if such utility files such | 15 | | performance-based formula rate tariff within 14 days of | 16 | | October 26, 2011 (the effective date of Public Act | 17 | | 97-616), the participating utility shall, except as | 18 | | provided in subsection (b-5): | 19 | | (A) over a 5-year period, invest an estimated | 20 | | $1,300,000,000 in electric system upgrades, | 21 | | modernization projects, and training facilities, | 22 | | including, but not limited to: | 23 | | (i) distribution infrastructure improvements | 24 | | totaling an estimated $1,000,000,000, including | 25 | | underground residential distribution cable | 26 | | injection and replacement and mainline cable |
| | | 10300HB3808sam001 | - 4 - | LRB103 30973 SPS 62190 a |
|
| 1 | | system refurbishment and replacement projects; | 2 | | (ii) training facility construction or upgrade | 3 | | projects totaling an estimated $10,000,000, | 4 | | provided that, at a minimum, one such facility | 5 | | shall be located in a municipality having a | 6 | | population of more than 2 million residents and | 7 | | one such facility shall be located in a | 8 | | municipality having a population of more than | 9 | | 150,000 residents but fewer than 170,000 | 10 | | residents; any such new facility located in a | 11 | | municipality having a population of more than 2 | 12 | | million residents must be designed for the purpose | 13 | | of obtaining, and the owner of the facility shall | 14 | | apply for, certification under the United States | 15 | | Green Building Council's Leadership in Energy | 16 | | Efficiency Design Green Building Rating System; | 17 | | (iii) wood pole inspection, treatment, and | 18 | | replacement programs; | 19 | | (iv) an estimated $200,000,000 for reducing | 20 | | the susceptibility of certain circuits to | 21 | | storm-related damage, including, but not limited | 22 | | to, high winds, thunderstorms, and ice storms; | 23 | | improvements may include, but are not limited to, | 24 | | overhead to underground conversion and other | 25 | | engineered outcomes for circuits; the | 26 | | participating utility shall prioritize the |
| | | 10300HB3808sam001 | - 5 - | LRB103 30973 SPS 62190 a |
|
| 1 | | selection of circuits based on each circuit's | 2 | | historical susceptibility to storm-related damage | 3 | | and the ability to provide the greatest customer | 4 | | benefit upon completion of the improvements; to be | 5 | | eligible for improvement, the participating | 6 | | utility's ability to maintain proper tree | 7 | | clearances surrounding the overhead circuit must | 8 | | not have
been impeded by third parties; and | 9 | | (B) over a 10-year period, invest an estimated | 10 | | $1,300,000,000 to upgrade and modernize its | 11 | | transmission and distribution infrastructure and in | 12 | | Smart Grid electric system upgrades, including, but | 13 | | not limited to: | 14 | | (i) additional smart meters; | 15 | | (ii) distribution automation; | 16 | | (iii) associated cyber secure data | 17 | | communication network; and | 18 | | (iv) substation micro-processor relay | 19 | | upgrades. | 20 | | (2) Beginning no later than 180 days after a | 21 | | participating utility that is a combination utility files | 22 | | a performance-based formula rate tariff pursuant to | 23 | | subsection (c) of this Section, or, beginning no later | 24 | | than January 1, 2012 if such utility files such | 25 | | performance-based formula rate tariff within 14 days of | 26 | | October 26, 2011 (the effective date of Public Act |
| | | 10300HB3808sam001 | - 6 - | LRB103 30973 SPS 62190 a |
|
| 1 | | 97-616), the participating utility shall, except as | 2 | | provided in subsection (b-5): | 3 | | (A) over a 10-year period, invest an estimated | 4 | | $265,000,000 in electric system upgrades, | 5 | | modernization projects, and training facilities, | 6 | | including, but not limited to: | 7 | | (i) distribution infrastructure improvements | 8 | | totaling an estimated $245,000,000, which may | 9 | | include bulk supply substations, transformers, | 10 | | reconductoring, and rebuilding overhead | 11 | | distribution and sub-transmission lines, | 12 | | underground residential distribution cable | 13 | | injection and replacement and mainline cable | 14 | | system refurbishment and replacement projects; | 15 | | (ii) training facility construction or upgrade | 16 | | projects totaling an estimated $1,000,000; any | 17 | | such new facility must be designed for the purpose | 18 | | of obtaining, and the owner of the facility shall | 19 | | apply for, certification under the United States | 20 | | Green Building Council's Leadership in Energy | 21 | | Efficiency Design Green Building Rating System; | 22 | | and | 23 | | (iii) wood pole inspection, treatment, and | 24 | | replacement programs; and | 25 | | (B) over a 10-year period, invest an estimated | 26 | | $360,000,000 to upgrade and modernize its transmission |
| | | 10300HB3808sam001 | - 7 - | LRB103 30973 SPS 62190 a |
|
| 1 | | and distribution infrastructure and in Smart Grid | 2 | | electric system upgrades, including, but not limited | 3 | | to: | 4 | | (i) additional smart meters; | 5 | | (ii) distribution automation; | 6 | | (iii) associated cyber secure data | 7 | | communication network; and | 8 | | (iv) substation micro-processor relay | 9 | | upgrades. | 10 | | For purposes of this Section, "Smart Grid electric system | 11 | | upgrades" shall have the meaning set forth in subsection (a) | 12 | | of Section 16-108.6 of this Act. | 13 | | The investments in the infrastructure investment program | 14 | | described in this subsection (b) shall be incremental to the | 15 | | participating utility's annual capital investment program, as | 16 | | defined by, for purposes of this subsection (b), the | 17 | | participating utility's average capital spend for calendar | 18 | | years 2008, 2009, and 2010 as reported in the applicable | 19 | | Federal Energy Regulatory Commission (FERC) Form 1; provided | 20 | | that where one or more utilities have merged, the average | 21 | | capital spend shall be determined using the aggregate of the | 22 | | merged utilities' capital spend reported in FERC Form 1 for | 23 | | the years 2008, 2009, and 2010. A participating utility may | 24 | | add reasonable construction ramp-up and ramp-down time to the | 25 | | investment periods specified in this subsection (b). For each | 26 | | such investment period, the ramp-up and ramp-down time shall |
| | | 10300HB3808sam001 | - 8 - | LRB103 30973 SPS 62190 a |
|
| 1 | | not exceed a total of 6 months. | 2 | | Within 60 days after filing a tariff under subsection (c) | 3 | | of this Section, a participating utility shall submit to the | 4 | | Commission its plan, including scope, schedule, and staffing, | 5 | | for satisfying its infrastructure investment program | 6 | | commitments pursuant to this subsection (b). The submitted | 7 | | plan shall include a schedule and staffing plan for the next | 8 | | calendar year. The plan shall also include a plan for the | 9 | | creation, operation, and administration of a Smart Grid test | 10 | | bed as described in subsection (c) of Section 16-108.8. The | 11 | | plan need not allocate the work equally over the respective | 12 | | periods, but should allocate material increments throughout | 13 | | such periods commensurate with the work to be undertaken. No | 14 | | later than April 1 of each subsequent year, the utility shall | 15 | | submit to the Commission a report that includes any updates to | 16 | | the plan, a schedule for the next calendar year, the | 17 | | expenditures made for the prior calendar year and | 18 | | cumulatively, and the number of full-time equivalent jobs | 19 | | created for the prior calendar year and cumulatively. If the | 20 | | utility is materially deficient in satisfying a schedule or | 21 | | staffing plan, then the report must also include a corrective | 22 | | action plan to address the deficiency. The fact that the plan, | 23 | | implementation of the plan, or a schedule changes shall not | 24 | | imply the imprudence or unreasonableness of the infrastructure | 25 | | investment program, plan, or schedule. Further, no later than | 26 | | 45 days following the last day of the first, second, and third |
| | | 10300HB3808sam001 | - 9 - | LRB103 30973 SPS 62190 a |
|
| 1 | | quarters of each year of the plan, a participating utility | 2 | | shall submit to the Commission a verified quarterly report for | 3 | | the prior quarter that includes (i) the total number of | 4 | | full-time equivalent jobs created during the prior quarter, | 5 | | (ii) the total number of employees as of the last day of the | 6 | | prior quarter, (iii) the total number of full-time equivalent | 7 | | hours in each job classification or job title, (iv) the total | 8 | | number of incremental employees and contractors in support of | 9 | | the investments undertaken pursuant to this subsection (b) for | 10 | | the prior quarter, and (v) any other information that the | 11 | | Commission may require by rule. | 12 | | With respect to the participating utility's peak job | 13 | | commitment, if, after considering the utility's corrective | 14 | | action plan and compliance thereunder, the Commission enters | 15 | | an order finding, after notice and hearing, that a | 16 | | participating utility did not satisfy its peak job commitment | 17 | | described in this subsection (b) for reasons that are | 18 | | reasonably within its control, then the Commission shall also | 19 | | determine, after consideration of the evidence, including, but | 20 | | not limited to, evidence submitted by the Department of | 21 | | Commerce and Economic Opportunity and the utility, the | 22 | | deficiency in the number of full-time equivalent jobs during | 23 | | the peak program year due to such failure. The Commission | 24 | | shall notify the Department of any proceeding that is | 25 | | initiated pursuant to this paragraph. For each full-time | 26 | | equivalent job deficiency during the peak program year that |
| | | 10300HB3808sam001 | - 10 - | LRB103 30973 SPS 62190 a |
|
| 1 | | the Commission finds as set forth in this paragraph, the | 2 | | participating utility shall, within 30 days after the entry of | 3 | | the Commission's order, pay $6,000 to a fund for training | 4 | | grants administered under Section 605-800 of the Department of | 5 | | Commerce and Economic Opportunity Law, which shall not be a | 6 | | 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 |
| | | 10300HB3808sam001 | - 11 - | LRB103 30973 SPS 62190 a |
|
| 1 | | amount already owed to the fund for training grants pursuant | 2 | | to a 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 | 12 | | Commission from investigating the prudence and reasonableness | 13 | | of the expenditures made under the infrastructure investment | 14 | | program during the annual review required by subsection (d) of | 15 | | this Section and shall, as part of such investigation, | 16 | | determine whether the utility's actual costs under the program | 17 | | are prudent and reasonable. The fact that a participating | 18 | | utility invests more than the minimum amounts specified in | 19 | | subsection (b) of this Section or its plan shall not imply | 20 | | imprudence or 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) | 25 | | of this Section, then the utility may file a petition with the | 26 | | Commission requesting that it be permitted to satisfy its |
| | | 10300HB3808sam001 | - 12 - | LRB103 30973 SPS 62190 a |
|
| 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 | 5 | | 150 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 | 17 | | increased costs and explains the reason or reasons for the | 18 | | increased costs no later than the year in which the utility | 19 | | estimates it will exceed the limitation. The Commission shall | 20 | | review the report and shall, within 90 days after the | 21 | | participating utility files the report, report to the General | 22 | | Assembly its findings regarding the participating utility's | 23 | | report. If the General Assembly does not amend the limitation | 24 | | imposed by this subsection (b-5), then the utility may modify | 25 | | its plan so as not to exceed the limitation imposed by this | 26 | | subsection (b-5) and may propose corresponding changes to the |
| | | 10300HB3808sam001 | - 13 - | LRB103 30973 SPS 62190 a |
|
| 1 | | metrics established pursuant to subparagraphs (5) through (8) | 2 | | of subsection (f) of this Section, and the Commission may | 3 | | modify the metrics and incremental savings goals established | 4 | | pursuant 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 | 10 | | Section, or beginning no later than January 1, 2012 if such | 11 | | utility files such performance-based formula rate tariff | 12 | | within 14 days of December 30, 2011 (the effective date of | 13 | | Public Act 97-646), and without obtaining any approvals from | 14 | | the Commission or any other agency other than as set forth in | 15 | | this 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 | 19 | | shall pay $1,000,000 per year for 10 years to the energy | 20 | | low-income and support program, which is intended to fund | 21 | | customer assistance programs with the primary purpose being | 22 | | avoidance of
imminent disconnection. Such programs may | 23 | | include: | 24 | | (1) a residential hardship program that may partner | 25 | | with community-based
organizations, including senior | 26 | | citizen organizations, and provides grants to low-income |
| | | 10300HB3808sam001 | - 14 - | LRB103 30973 SPS 62190 a |
|
| 1 | | residential customers, including low-income senior | 2 | | citizens, who demonstrate a hardship; | 3 | | (2) a program that provides grants and other bill | 4 | | payment concessions to veterans with disabilities who | 5 | | demonstrate a hardship and members of the armed services | 6 | | or reserve forces of the United States or members of the | 7 | | Illinois National Guard who are on active duty pursuant to | 8 | | an executive order of the President of the United States, | 9 | | an act of the Congress of the United States, or an order of | 10 | | the Governor and who demonstrate a
hardship; | 11 | | (3) a budget assistance program that provides tools | 12 | | and education to low-income senior citizens to assist them | 13 | | with obtaining information regarding energy usage and
| 14 | | effective means of managing energy costs; | 15 | | (4) a non-residential special hardship program that | 16 | | provides grants to non-residential customers such as small | 17 | | businesses and non-profit organizations that demonstrate a | 18 | | hardship, including those providing services to senior | 19 | | citizen and low-income customers; and | 20 | | (5) a performance-based assistance program that | 21 | | provides grants to encourage residential customers to make | 22 | | on-time payments by matching a portion of the customer's | 23 | | payments or providing credits towards arrearages. | 24 | | The payments made by a participating utility pursuant to | 25 | | this subsection (b-10) shall not be a recoverable expense. A | 26 | | participating utility may elect to fund either new or existing |
| | | 10300HB3808sam001 | - 15 - | LRB103 30973 SPS 62190 a |
|
| 1 | | customer assistance programs, including, but not limited to, | 2 | | those that are administered by the utility. | 3 | | Programs that use funds that are provided by a | 4 | | participating utility to reduce utility bills may be | 5 | | implemented through tariffs that are filed with and reviewed | 6 | | by the Commission. If a utility elects to file tariffs with the | 7 | | Commission to implement all or a portion of the programs, | 8 | | those tariffs shall, regardless of the date actually filed, be | 9 | | deemed accepted and approved, and shall become effective on | 10 | | December 30, 2011 (the effective date of Public Act 97-646). | 11 | | The participating utilities whose customers benefit from the | 12 | | funds that are disbursed as contemplated in this Section shall | 13 | | file annual reports documenting the disbursement of those | 14 | | funds with the Commission. The Commission has the authority to | 15 | | audit disbursement of the funds to ensure they were disbursed | 16 | | consistently with this Section. | 17 | | If the Commission finds that a participating utility is no | 18 | | longer eligible to update the performance-based formula rate | 19 | | tariff pursuant to subsection (d) of this Section, or the | 20 | | performance-based formula rate is otherwise terminated, then | 21 | | the participating utility's voluntary commitments and | 22 | | obligations under this subsection (b-10) shall immediately | 23 | | terminate. | 24 | | (c) A participating utility may elect to recover its | 25 | | delivery services costs through a performance-based formula | 26 | | rate approved by the Commission, which shall specify the cost |
| | | 10300HB3808sam001 | - 16 - | LRB103 30973 SPS 62190 a |
|
| 1 | | components that form the basis of the rate charged to | 2 | | customers with sufficient specificity to operate in a | 3 | | standardized manner and be updated annually with transparent | 4 | | information that reflects the utility's actual costs to be | 5 | | recovered during the applicable rate year, which is the period | 6 | | beginning with the first billing day of January and extending | 7 | | through the last billing day of the following December. In the | 8 | | event the utility recovers a portion of its costs through | 9 | | automatic adjustment clause tariffs on October 26, 2011 (the | 10 | | effective date of Public Act 97-616), the utility may elect to | 11 | | continue to recover these costs through such tariffs, but then | 12 | | these costs shall not be recovered through the | 13 | | performance-based formula rate. In the event the participating | 14 | | utility, prior to December 30, 2011 (the effective date of | 15 | | Public Act 97-646), filed electric delivery services tariffs | 16 | | with the Commission pursuant to Section 9-201 of this Act that | 17 | | are related to the recovery of its electric delivery services | 18 | | costs that are still pending on December 30, 2011 (the | 19 | | effective date of Public Act 97-646), the participating | 20 | | utility shall, at the time it files its performance-based | 21 | | formula rate tariff with the Commission, also file a notice of | 22 | | withdrawal with the Commission to withdraw the electric | 23 | | delivery services tariffs previously filed pursuant to Section | 24 | | 9-201 of this Act. Upon receipt of such notice, the Commission | 25 | | shall dismiss with prejudice any docket that had been | 26 | | initiated to investigate the electric delivery services |
| | | 10300HB3808sam001 | - 17 - | LRB103 30973 SPS 62190 a |
|
| 1 | | tariffs filed pursuant to Section 9-201 of this Act, and such | 2 | | tariffs and the record related thereto shall not be the | 3 | | subject of any further hearing, investigation, or proceeding | 4 | | of any kind related to rates for electric delivery services. | 5 | | The performance-based formula rate shall be implemented | 6 | | through a tariff filed with the Commission consistent with the | 7 | | provisions of this subsection (c) that shall be applicable to | 8 | | all delivery services customers. The Commission shall initiate | 9 | | and conduct an investigation of the tariff in a manner | 10 | | consistent with the provisions of this subsection (c) and the | 11 | | provisions of Article IX of this Act to the extent they do not | 12 | | conflict with this subsection (c). Except in the case where | 13 | | the Commission finds, after notice and hearing, that a | 14 | | participating utility is not satisfying its investment amount | 15 | | commitments under subsection (b) of this Section, the | 16 | | performance-based formula rate shall remain in effect at the | 17 | | discretion of the utility. The performance-based formula rate | 18 | | approved by the Commission shall do the following: | 19 | | (1) Provide for the recovery of the utility's actual | 20 | | costs of delivery services that are prudently incurred and | 21 | | reasonable in amount consistent with Commission practice | 22 | | and law. The sole fact that a cost differs from that | 23 | | incurred in a prior calendar year or that an investment is | 24 | | different from that made in a prior calendar year shall | 25 | | not imply the imprudence or unreasonableness of that cost | 26 | | or investment. |
| | | 10300HB3808sam001 | - 18 - | LRB103 30973 SPS 62190 a |
|
| 1 | | (2) Reflect the utility's actual year-end capital | 2 | | structure for the applicable calendar year, excluding | 3 | | goodwill, subject to a determination of prudence and | 4 | | reasonableness consistent with Commission practice and | 5 | | law. To enable the financing of the incremental capital | 6 | | expenditures, including regulatory assets, for electric | 7 | | utilities that serve less than 3,000,000 retail customers | 8 | | but more than 500,000 retail customers in the State, a | 9 | | participating electric utility's actual year-end capital | 10 | | structure that includes a common equity ratio, excluding | 11 | | goodwill, of up to and including 50% of the total capital | 12 | | structure shall be deemed reasonable and used to set | 13 | | rates. | 14 | | (3) Include a cost of equity, which shall be | 15 | | calculated as the sum of the following: | 16 | | (A) the average for the applicable calendar year | 17 | | of the monthly average yields of 30-year U.S. Treasury | 18 | | bonds published by the Board of Governors of the | 19 | | Federal Reserve System in its weekly H.15 Statistical | 20 | | Release or successor publication; and | 21 | | (B) 580 basis points. | 22 | | At such time as the Board of Governors of the Federal | 23 | | Reserve System ceases to include the monthly average | 24 | | yields of 30-year U.S. Treasury bonds in its weekly H.15 | 25 | | Statistical Release or successor publication, the monthly | 26 | | average yields of the U.S. Treasury bonds then having the |
| | | 10300HB3808sam001 | - 19 - | LRB103 30973 SPS 62190 a |
|
| 1 | | longest duration published by the Board of Governors in | 2 | | its weekly H.15 Statistical Release or successor | 3 | | publication shall instead be used for purposes of this | 4 | | paragraph (3). | 5 | | (4) Permit and set forth protocols, subject to a | 6 | | determination of prudence and reasonableness consistent | 7 | | with Commission practice and law, for the following: | 8 | | (A) recovery of incentive compensation expense | 9 | | that is based on the achievement of operational | 10 | | metrics, including metrics related to budget controls, | 11 | | outage duration and frequency, safety, customer | 12 | | service, efficiency and productivity, and | 13 | | environmental compliance. Incentive compensation | 14 | | expense that is based on net income or an affiliate's | 15 | | earnings per share shall not be recoverable under the | 16 | | performance-based formula rate; | 17 | | (B) recovery of pension and other post-employment | 18 | | benefits expense, provided that such costs are | 19 | | supported by an actuarial study; | 20 | | (C) recovery of severance costs, provided that if | 21 | | the amount is over $3,700,000 for a participating | 22 | | utility that is a combination utility or $10,000,000 | 23 | | for a participating utility that serves more than 3 | 24 | | million retail customers, then the full amount shall | 25 | | be amortized consistent with subparagraph (F) of this | 26 | | paragraph (4); |
| | | 10300HB3808sam001 | - 20 - | LRB103 30973 SPS 62190 a |
|
| 1 | | (D) investment return at a rate equal to the | 2 | | utility's weighted average cost of long-term debt, on | 3 | | the pension assets as, and in the amount, reported in | 4 | | Account 186 (or in such other Account or Accounts as | 5 | | such asset may subsequently be recorded) of the | 6 | | utility's most recently filed FERC Form 1, net of | 7 | | deferred tax benefits; | 8 | | (E) recovery of the expenses related to the | 9 | | Commission proceeding under this subsection (c) to | 10 | | approve this performance-based formula rate and | 11 | | initial rates or to subsequent proceedings related to | 12 | | the formula, provided that the recovery shall be | 13 | | amortized over a 3-year period; recovery of expenses | 14 | | related to the annual Commission proceedings under | 15 | | subsection (d) of this Section to review the inputs to | 16 | | the performance-based formula rate shall be expensed | 17 | | and recovered through the performance-based formula | 18 | | rate; | 19 | | (F) amortization over a 5-year period of the full | 20 | | amount of each charge or credit that exceeds | 21 | | $3,700,000 for a participating utility that is a | 22 | | combination utility or $10,000,000 for a participating | 23 | | utility that serves more than 3 million retail | 24 | | customers in the applicable calendar year and that | 25 | | relates to a workforce reduction program's severance | 26 | | costs, changes in accounting rules, changes in law, |
| | | 10300HB3808sam001 | - 21 - | LRB103 30973 SPS 62190 a |
|
| 1 | | compliance with any Commission-initiated audit, or a | 2 | | single storm or other similar expense, provided that | 3 | | any unamortized balance shall be reflected in the rate | 4 | | base. For purposes of this subparagraph (F), changes | 5 | | in law includes any enactment, repeal, or amendment in | 6 | | a law, ordinance, rule, regulation, interpretation, | 7 | | permit, license, consent, or order, including those | 8 | | relating to taxes, accounting, or to environmental | 9 | | matters, or in the interpretation or application | 10 | | thereof by any governmental authority occurring after | 11 | | October 26, 2011 (the effective date of Public Act | 12 | | 97-616); | 13 | | (G) recovery of existing regulatory assets over | 14 | | the periods previously authorized by the Commission; | 15 | | (H) historical weather normalized billing | 16 | | determinants; and | 17 | | (I) allocation methods for common costs. | 18 | | (5) Provide that if the participating utility's earned | 19 | | rate of return on common equity related to the provision | 20 | | of delivery services for the prior rate year (calculated | 21 | | using costs and capital structure approved by the | 22 | | Commission as provided in subparagraph (2) of this | 23 | | subsection (c), consistent with this Section, in | 24 | | accordance with Commission rules and orders, including, | 25 | | but not limited to, adjustments for goodwill, and after | 26 | | any Commission-ordered disallowances and taxes) is more |
| | | 10300HB3808sam001 | - 22 - | LRB103 30973 SPS 62190 a |
|
| 1 | | than 50 basis points higher than the rate of return on | 2 | | common equity calculated pursuant to paragraph (3) of this | 3 | | subsection (c) (after adjusting for any penalties to the | 4 | | rate of return on common equity applied pursuant to the | 5 | | performance metrics provision of subsection (f) of this | 6 | | Section), then the participating utility shall apply a | 7 | | credit through the performance-based formula rate that | 8 | | reflects an amount equal to the value of that portion of | 9 | | the earned rate of return on common equity that is more | 10 | | than 50 basis points higher than the rate of return on | 11 | | common equity calculated pursuant to paragraph (3) of this | 12 | | subsection (c) (after adjusting for any penalties to the | 13 | | rate of return on common equity applied pursuant to the | 14 | | performance metrics provision of subsection (f) of this | 15 | | Section) for the prior rate year, adjusted for taxes. If | 16 | | the participating utility's earned rate of return on | 17 | | common equity related to the provision of delivery | 18 | | services for the prior rate year (calculated using costs | 19 | | and capital structure approved by the Commission as | 20 | | provided in subparagraph (2) of this subsection (c), | 21 | | consistent with this Section, in accordance with | 22 | | Commission rules and orders, including, but not limited | 23 | | to, adjustments for goodwill, and after any | 24 | | Commission-ordered disallowances and taxes) is more than | 25 | | 50 basis points less than the return on common equity | 26 | | calculated pursuant to paragraph (3) of this subsection |
| | | 10300HB3808sam001 | - 23 - | LRB103 30973 SPS 62190 a |
|
| 1 | | (c) (after adjusting for any penalties to the rate of | 2 | | return on common equity applied pursuant to the | 3 | | performance metrics provision of subsection (f) of this | 4 | | Section), then the participating utility shall apply a | 5 | | charge through the performance-based formula rate that | 6 | | reflects an amount equal to the value of that portion of | 7 | | the earned rate of return on common equity that is more | 8 | | than 50 basis points less than the rate of return on common | 9 | | equity calculated pursuant to paragraph (3) of this | 10 | | subsection (c) (after adjusting for any penalties to the | 11 | | rate of return on common equity applied pursuant to the | 12 | | performance metrics provision of subsection (f) of this | 13 | | Section) for the prior rate year, adjusted for taxes. | 14 | | (6) Provide for an annual reconciliation, as described | 15 | | in subsection (d) of this Section, with interest, of the | 16 | | revenue requirement reflected in rates for each calendar | 17 | | year, beginning with the calendar year in which the | 18 | | utility files its performance-based formula rate tariff | 19 | | pursuant to subsection (c) of this Section, with what the | 20 | | revenue requirement would have been had the actual cost | 21 | | information for the applicable calendar year been | 22 | | available at the filing date. | 23 | | The utility shall file, together with its tariff, final | 24 | | data based on its most recently filed FERC Form 1, plus | 25 | | projected plant additions and correspondingly updated | 26 | | depreciation reserve and expense for the calendar year in |
| | | 10300HB3808sam001 | - 24 - | LRB103 30973 SPS 62190 a |
|
| 1 | | which the tariff and data are filed, that shall populate the | 2 | | performance-based formula rate and set the initial delivery | 3 | | services rates under the formula. For purposes of this | 4 | | Section, "FERC Form 1" means the Annual Report of Major | 5 | | Electric Utilities, Licensees and Others that electric | 6 | | utilities are required to file with the Federal Energy | 7 | | Regulatory Commission under the Federal Power Act, Sections 3, | 8 | | 4(a), 304 and 209, modified as necessary to be consistent with | 9 | | 83 Ill. Adm. Admin. Code Part 415 as of May 1, 2011. Nothing in | 10 | | this Section is intended to allow costs that are not otherwise | 11 | | recoverable to be recoverable by virtue of inclusion in FERC | 12 | | Form 1. | 13 | | After the utility files its proposed performance-based | 14 | | formula rate structure and protocols and initial rates, the | 15 | | Commission shall initiate a docket to review the filing. The | 16 | | Commission shall enter an order approving, or approving as | 17 | | modified, the performance-based formula rate, including the | 18 | | initial rates, as just and reasonable within 270 days after | 19 | | the date on which the tariff was filed, or, if the tariff is | 20 | | filed within 14 days after October 26, 2011 (the effective | 21 | | date of Public Act 97-616), then by May 31, 2012. Such review | 22 | | shall be based on the same evidentiary standards, including, | 23 | | but not limited to, those concerning the prudence and | 24 | | reasonableness of the costs incurred by the utility, the | 25 | | Commission applies in a hearing to review a filing for a | 26 | | general increase in rates under Article IX of this Act. The |
| | | 10300HB3808sam001 | - 25 - | LRB103 30973 SPS 62190 a |
|
| 1 | | initial rates shall take effect within 30 days after the | 2 | | Commission's order approving the performance-based formula | 3 | | rate tariff. | 4 | | Until such time as the Commission approves a different | 5 | | rate design and cost allocation pursuant to subsection (e) of | 6 | | this Section, rate design and cost allocation across customer | 7 | | classes shall be consistent with the Commission's most recent | 8 | | order regarding the participating utility's request for a | 9 | | general increase in its delivery services rates. | 10 | | Subsequent changes to the performance-based formula rate | 11 | | structure or protocols shall be made as set forth in Section | 12 | | 9-201 of this Act, but nothing in this subsection (c) is | 13 | | intended to limit the Commission's authority under Article IX | 14 | | and other provisions of this Act to initiate an investigation | 15 | | of a participating utility's performance-based formula rate | 16 | | tariff, provided that any such changes shall be consistent | 17 | | with paragraphs (1) through (6) of this subsection (c). Any | 18 | | change ordered by the Commission shall be made at the same time | 19 | | new rates take effect following the Commission's next order | 20 | | pursuant to subsection (d) of this Section, provided that the | 21 | | new rates take effect no less than 30 days after the date on | 22 | | which the Commission issues an order adopting the change. | 23 | | A participating utility that files a tariff pursuant to | 24 | | this subsection (c) must submit a one-time $200,000 filing fee | 25 | | at the time the Chief Clerk of the Commission accepts the | 26 | | filing, which shall be a recoverable expense. |
| | | 10300HB3808sam001 | - 26 - | LRB103 30973 SPS 62190 a |
|
| 1 | | In the event the performance-based formula rate is | 2 | | terminated, the then current rates shall remain in effect | 3 | | until such time as new rates are set pursuant to Article IX of | 4 | | this Act, subject to retroactive rate adjustment, with | 5 | | interest, to reconcile rates charged with actual costs. At | 6 | | such time that the performance-based formula rate is | 7 | | terminated, the participating utility's voluntary commitments | 8 | | and obligations under subsection (b) of this Section shall | 9 | | immediately terminate, except for the utility's obligation to | 10 | | pay an amount already owed to the fund for training grants | 11 | | pursuant to a Commission order issued under subsection (b) of | 12 | | this Section. | 13 | | (d) Subsequent to the Commission's issuance of an order | 14 | | approving the utility's performance-based formula rate | 15 | | structure and protocols, and initial rates under subsection | 16 | | (c) of this Section, the utility shall file, on or before May 1 | 17 | | of each year, with the Chief Clerk of the Commission its | 18 | | updated cost inputs to the performance-based formula rate for | 19 | | the applicable rate year and the corresponding new charges. | 20 | | Each such filing shall conform to the following requirements | 21 | | and include the following information: | 22 | | (1) The inputs to the performance-based formula rate | 23 | | for the applicable rate year shall be based on final | 24 | | historical data reflected in the utility's most recently | 25 | | filed annual FERC Form 1 plus projected plant additions | 26 | | and correspondingly updated depreciation reserve and |
| | | 10300HB3808sam001 | - 27 - | LRB103 30973 SPS 62190 a |
|
| 1 | | expense for the calendar year in which the inputs are | 2 | | filed. The filing shall also include a reconciliation of | 3 | | the revenue requirement that was in effect for the prior | 4 | | rate year (as set by the cost inputs for the prior rate | 5 | | year) with the actual revenue requirement for the prior | 6 | | rate year (determined using a year-end rate base) that | 7 | | uses amounts reflected in the applicable FERC Form 1 that | 8 | | reports the actual costs for the prior rate year. Any | 9 | | over-collection or under-collection indicated by such | 10 | | reconciliation shall be reflected as a credit against, or | 11 | | recovered as an additional charge to, respectively, with | 12 | | interest calculated at a rate equal to the utility's | 13 | | weighted average cost of capital approved by the | 14 | | Commission for the prior rate year, the charges for the | 15 | | applicable rate year. Provided, however, that the first | 16 | | such reconciliation shall be for the calendar year in | 17 | | which the utility files its performance-based formula rate | 18 | | tariff pursuant to subsection (c) of this Section and | 19 | | shall reconcile (i) the revenue requirement or | 20 | | requirements established by the rate order or orders in | 21 | | effect from time to time during such calendar year | 22 | | (weighted, as applicable) with (ii) the revenue | 23 | | requirement determined using a year-end rate base for that | 24 | | calendar year calculated pursuant to the performance-based | 25 | | formula rate using (A) actual costs for that year as | 26 | | reflected in the applicable FERC Form 1, and (B) for the |
| | | 10300HB3808sam001 | - 28 - | LRB103 30973 SPS 62190 a |
|
| 1 | | first such reconciliation only, the cost of equity, which | 2 | | shall be calculated as the sum of 590 basis points plus the | 3 | | average for the applicable calendar year of the monthly | 4 | | average yields of 30-year U.S. Treasury bonds published by | 5 | | the Board of Governors of the Federal Reserve System in | 6 | | its weekly H.15 Statistical Release or successor | 7 | | publication. The first such reconciliation is not intended | 8 | | to provide for the recovery of costs previously excluded | 9 | | from rates based on a prior Commission order finding of | 10 | | imprudence or unreasonableness. Each reconciliation shall | 11 | | be certified by the participating utility in the same | 12 | | manner that FERC Form 1 is certified. The filing shall | 13 | | also include the charge or credit, if any, resulting from | 14 | | the calculation required by paragraph (6) of subsection | 15 | | (c) of this Section. | 16 | | Notwithstanding anything that may be to the contrary, | 17 | | the intent of the reconciliation is to ultimately | 18 | | reconcile the revenue requirement reflected in rates for | 19 | | each calendar year, beginning with the calendar year in | 20 | | which the utility files its performance-based formula rate | 21 | | tariff pursuant to subsection (c) of this Section, with | 22 | | what the revenue requirement determined using a year-end | 23 | | rate base for the applicable calendar year would have been | 24 | | had the actual cost information for the applicable | 25 | | calendar year been available at the filing date. | 26 | | (2) The new charges shall take effect beginning on the |
| | | 10300HB3808sam001 | - 29 - | LRB103 30973 SPS 62190 a |
|
| 1 | | first billing day of the following January billing period | 2 | | and remain in effect through the last billing day of the | 3 | | next December billing period regardless of whether the | 4 | | Commission enters upon a hearing pursuant to this | 5 | | subsection (d). | 6 | | (3) The filing shall include relevant and necessary | 7 | | data and documentation for the applicable rate year that | 8 | | is consistent with the Commission's rules applicable to a | 9 | | filing for a general increase in rates or any rules | 10 | | adopted by the Commission to implement this Section. | 11 | | Normalization adjustments shall not be required. | 12 | | Notwithstanding any other provision of this Section or Act | 13 | | or any rule or other requirement adopted by the | 14 | | Commission, a participating utility that is a combination | 15 | | utility with more than one rate zone shall not be required | 16 | | to file a separate set of such data and documentation for | 17 | | each rate zone and may combine such data and documentation | 18 | | into a single set of schedules. | 19 | | Within 45 days after the utility files its annual update | 20 | | of cost inputs to the performance-based formula rate, the | 21 | | Commission shall have the authority, either upon complaint or | 22 | | its own initiative, but with reasonable notice, to enter upon | 23 | | a hearing concerning the prudence and reasonableness of the | 24 | | costs incurred by the utility to be recovered during the | 25 | | applicable rate year that are reflected in the inputs to the | 26 | | performance-based formula rate derived from the utility's FERC |
| | | 10300HB3808sam001 | - 30 - | LRB103 30973 SPS 62190 a |
|
| 1 | | Form 1. During the course of the hearing, each objection shall | 2 | | be stated with particularity and evidence provided in support | 3 | | thereof, after which the utility shall have the opportunity to | 4 | | rebut the evidence. Discovery shall be allowed consistent with | 5 | | the Commission's Rules of Practice, which Rules shall be | 6 | | enforced by the Commission or the assigned administrative law | 7 | | judge. The Commission shall apply the same evidentiary | 8 | | standards, including, but not limited to, those concerning the | 9 | | prudence and reasonableness of the costs incurred by the | 10 | | utility, in the hearing as it would apply in a hearing to | 11 | | review a filing for a general increase in rates under Article | 12 | | IX of this Act. The Commission shall not, however, have the | 13 | | authority in a proceeding under this subsection (d) to | 14 | | consider or order any changes to the structure or protocols of | 15 | | the performance-based formula rate approved pursuant to | 16 | | subsection (c) of this Section. In a proceeding under this | 17 | | subsection (d), the Commission shall enter its order no later | 18 | | than the earlier of 240 days after the utility's filing of its | 19 | | annual update of cost inputs to the performance-based formula | 20 | | rate or December 31. The Commission's determinations of the | 21 | | prudence and reasonableness of the costs incurred for the | 22 | | applicable calendar year shall be final upon entry of the | 23 | | Commission's order and shall not be subject to reopening, | 24 | | reexamination, or collateral attack in any other Commission | 25 | | proceeding, case, docket, order, rule or regulation, provided, | 26 | | however, that nothing in this subsection (d) shall prohibit a |
| | | 10300HB3808sam001 | - 31 - | LRB103 30973 SPS 62190 a |
|
| 1 | | party from petitioning the Commission to rehear or appeal to | 2 | | the courts the order pursuant to the provisions of this Act. | 3 | | In the event the Commission does not, either upon | 4 | | complaint or its own initiative, enter upon a hearing within | 5 | | 45 days after the utility files the annual update of cost | 6 | | inputs to its performance-based formula rate, then the costs | 7 | | incurred for the applicable calendar year shall be deemed | 8 | | prudent and reasonable, and the filed charges shall not be | 9 | | subject to reopening, reexamination, or collateral attack in | 10 | | any other proceeding, case, docket, order, rule, or | 11 | | regulation. | 12 | | A participating utility's first filing of the updated cost | 13 | | inputs, and any Commission investigation of such inputs | 14 | | pursuant to this subsection (d) shall proceed notwithstanding | 15 | | the fact that the Commission's investigation under subsection | 16 | | (c) of this Section is still pending and notwithstanding any | 17 | | other law, order, rule, or Commission practice to the | 18 | | contrary. | 19 | | (e) Nothing in subsections (c) or (d) of this Section | 20 | | shall prohibit the Commission from investigating, or a | 21 | | participating utility from filing, revenue-neutral tariff | 22 | | changes related to rate design of a performance-based formula | 23 | | rate that has been placed into effect for the utility. | 24 | | Following approval of a participating utility's | 25 | | performance-based formula rate tariff pursuant to subsection | 26 | | (c) of this Section, the utility shall make a filing with the |
| | | 10300HB3808sam001 | - 32 - | LRB103 30973 SPS 62190 a |
|
| 1 | | Commission within one year after the effective date of the | 2 | | performance-based formula rate tariff that proposes changes to | 3 | | the tariff to incorporate the findings of any final rate | 4 | | design orders of the Commission applicable to the | 5 | | participating utility and entered subsequent to the | 6 | | Commission's approval of the tariff. The Commission shall, | 7 | | after notice and hearing, enter its order approving, or | 8 | | approving with modification, the proposed changes to the | 9 | | performance-based formula rate tariff within 240 days after | 10 | | the utility's filing. Following such approval, the utility | 11 | | shall make a filing with the Commission during each subsequent | 12 | | 3-year period that either proposes revenue-neutral tariff | 13 | | changes or re-files the existing tariffs without change, which | 14 | | shall present the Commission with an opportunity to suspend | 15 | | the tariffs and consider revenue-neutral tariff changes | 16 | | related to rate design. | 17 | | (f) Within 30 days after the filing of a tariff pursuant to | 18 | | subsection (c) of this Section, each participating utility | 19 | | shall develop and file with the Commission multi-year metrics | 20 | | designed to achieve, ratably (i.e., in equal segments) over a | 21 | | 10-year period, improvement over baseline performance values | 22 | | as follows: | 23 | | (1) Twenty percent improvement in the System Average | 24 | | Interruption Frequency Index, using a baseline of the | 25 | | average of the data from 2001 through 2010. | 26 | | (2) Fifteen percent improvement in the system Customer |
| | | 10300HB3808sam001 | - 33 - | LRB103 30973 SPS 62190 a |
|
| 1 | | Average Interruption Duration Index, using a baseline of | 2 | | the average of the data from 2001 through 2010. | 3 | | (3) For a participating utility other than a | 4 | | combination utility, 20% improvement in the System Average | 5 | | Interruption Frequency Index for its Southern Region, | 6 | | using a baseline of the average of the data from 2001 | 7 | | through 2010. For purposes of this paragraph (3), Southern | 8 | | Region shall have the meaning set forth in the | 9 | | participating utility's most recent report filed pursuant | 10 | | to Section 16-125 of this Act. | 11 | | (3.5) For a participating utility other than a | 12 | | combination utility, 20% improvement in the System Average | 13 | | Interruption Frequency Index for its Northeastern Region, | 14 | | using a baseline of the average of the data from 2001 | 15 | | through 2010. For purposes of this paragraph (3.5), | 16 | | Northeastern Region shall have the meaning set forth in | 17 | | the participating utility's most recent report filed | 18 | | pursuant to Section 16-125 of this Act. | 19 | | (4) Seventy-five percent improvement in the total | 20 | | number of customers who exceed the service reliability | 21 | | targets as set forth in subparagraphs (A) through (C) of | 22 | | paragraph (4) of subsection (b) of 83 Ill. Adm. Admin. | 23 | | Code Part 411.140 as of May 1, 2011, using 2010 as the | 24 | | baseline year. | 25 | | (5) Reduction in issuance of estimated electric bills: | 26 | | 90% improvement for a participating utility other than a |
| | | 10300HB3808sam001 | - 34 - | LRB103 30973 SPS 62190 a |
|
| 1 | | combination utility, and 56% improvement for a | 2 | | participating utility that is a combination utility, using | 3 | | a baseline of the average number of estimated bills for | 4 | | the years 2008 through 2010. | 5 | | (6) Consumption on inactive meters: 90% improvement | 6 | | for a participating utility other than a combination | 7 | | utility, and 56% improvement for a participating utility | 8 | | that is a combination utility, using a baseline of the | 9 | | average unbilled kilowatthours for the years 2009 and | 10 | | 2010. | 11 | | (7) Unaccounted for energy: 50% improvement for a | 12 | | participating utility other than a combination utility | 13 | | using a baseline of the non-technical line loss | 14 | | unaccounted for energy kilowatthours for the year 2009. | 15 | | (8) Uncollectible expense: reduce uncollectible | 16 | | expense by at least $30,000,000 for a participating | 17 | | utility other than a combination utility and by at least | 18 | | $3,500,000 for a participating utility that is a | 19 | | combination utility, using a baseline of the average | 20 | | uncollectible expense for the years 2008 through 2010. | 21 | | (9) Opportunities for minority-owned and female-owned | 22 | | business enterprises: design a performance metric | 23 | | regarding the creation of opportunities for minority-owned | 24 | | and female-owned business enterprises consistent with | 25 | | State and federal law using a base performance value of | 26 | | the percentage of the participating utility's capital |
| | | 10300HB3808sam001 | - 35 - | LRB103 30973 SPS 62190 a |
|
| 1 | | expenditures that were paid to minority-owned and | 2 | | female-owned business enterprises in 2010. | 3 | | The definitions set forth in 83 Ill. Adm. Admin. Code Part | 4 | | 411.20 as of May 1, 2011 shall be used for purposes of | 5 | | calculating performance under paragraphs (1) through (3.5) of | 6 | | this subsection (f), provided, however, that the participating | 7 | | utility may exclude up to 9 extreme weather event days from | 8 | | such calculation for each year, and provided further that the
| 9 | | participating utility shall exclude 9 extreme weather event | 10 | | days when calculating each year of the baseline period to the | 11 | | extent that there are 9 such days in a given year of the | 12 | | baseline period. For purposes of this Section, an extreme | 13 | | weather event day is a 24-hour calendar day (beginning at | 14 | | 12:00 a.m. and ending at 11:59 p.m.) during which any weather | 15 | | event (e.g., storm, tornado) caused interruptions for 10,000 | 16 | | or more of the participating utility's customers for 3 hours | 17 | | or more. If there are more than 9 extreme weather event days in | 18 | | a year, then the utility may choose no more than 9 extreme | 19 | | weather event days to exclude, provided that the same extreme | 20 | | weather event days are excluded from each of the calculations | 21 | | performed under paragraphs (1) through (3.5) of this | 22 | | 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 |
| | | 10300HB3808sam001 | - 36 - | LRB103 30973 SPS 62190 a |
|
| 1 | | period. The utility shall elect when the 10-year period shall | 2 | | commence for the metrics set forth in subparagraphs (1) | 3 | | through (4) and (9) of this subsection (f), provided that it | 4 | | begins no later than 14 months following the date on which the | 5 | | utility begins investing pursuant to subsection (b) of this | 6 | | Section, and when the 10-year period shall commence for the | 7 | | metrics set forth in subparagraphs (5) through (8) of this | 8 | | subsection (f), provided that it begins no later than 14 | 9 | | months following the date on which the Commission enters its | 10 | | order approving the utility's Advanced Metering Infrastructure | 11 | | Deployment Plan pursuant to subsection (c) of Section 16-108.6 | 12 | | of this Act. | 13 | | The metrics and performance goals set forth in | 14 | | subparagraphs (5) through (8) of this subsection (f) are based | 15 | | on the assumptions that the participating utility may fully | 16 | | implement the technology described in subsection (b) of this | 17 | | Section, including utilizing the full functionality of such | 18 | | technology and that there is no requirement for personal | 19 | | on-site notification. If the utility is unable to meet the | 20 | | metrics and performance goals set forth in subparagraphs (5) | 21 | | through (8) of this subsection (f) for such reasons, and the | 22 | | Commission so finds after notice and hearing, then the utility | 23 | | shall be excused from compliance, but only to the limited | 24 | | extent achievement of the affected metrics and performance | 25 | | goals was hindered by the less than full implementation. | 26 | | (f-5) The financial penalties applicable to the metrics |
| | | 10300HB3808sam001 | - 37 - | LRB103 30973 SPS 62190 a |
|
| 1 | | described in subparagraphs (1) through (8) of subsection (f) | 2 | | of this Section, as applicable, shall be applied through an | 3 | | adjustment to the participating utility's return on equity of | 4 | | no more than a total of 30 basis points in each of the first 3 | 5 | | years, of no more than a total of 34 basis points
in each of | 6 | | the 3 years thereafter, and of no more than a total of 38 basis | 7 | | points in each
of the 4 years thereafter, as follows: | 8 | | (1) With respect to each of the incremental annual | 9 | | performance goals established pursuant to paragraph (1) of | 10 | | subsection (f) of this Section, | 11 | | (A) for each year that a participating utility | 12 | | other than a combination utility does not achieve the | 13 | | annual goal, the participating utility's return on | 14 | | equity shall be reduced as
follows: during years 1 | 15 | | through 3, by 5 basis points; during years 4 through 6, | 16 | | by 6 basis points; and during years 7 through 10, by 7 | 17 | | basis points; and | 18 | | (B) for each year that a participating utility | 19 | | that is a combination utility does not achieve the | 20 | | annual goal, the participating utility's return on | 21 | | equity shall be reduced as follows: during years 1 | 22 | | through 3, by 10 basis points; during years 4 through | 23 | | 6, by 12
basis points; and during years 7 through 10, | 24 | | by 14 basis points. | 25 | | (2) With respect to each of the incremental annual | 26 | | performance goals established pursuant to paragraph (2) of |
| | | 10300HB3808sam001 | - 38 - | LRB103 30973 SPS 62190 a |
|
| 1 | | subsection (f) of this Section, for each year that the | 2 | | participating utility does not achieve each such goal, the | 3 | | participating utility's return on equity shall be reduced | 4 | | as follows: during years 1 through 3, by 5 basis points; | 5 | | during years 4
through 6, by 6 basis points; and during | 6 | | years 7 through 10, by 7 basis points. | 7 | | (3) With respect to each of the incremental annual | 8 | | performance goals established
pursuant to paragraphs (3) | 9 | | and (3.5) of subsection (f) of this Section, for each year | 10 | | that a participating utility other than a combination | 11 | | utility does not achieve both such
goals, the | 12 | | participating utility's return on equity shall be reduced | 13 | | as follows: during years 1 through 3, by 5 basis points; | 14 | | during years 4 through 6, by 6 basis points; and during | 15 | | years 7 through 10, by 7 basis points. | 16 | | (4) With respect to each of the incremental annual | 17 | | performance goals established
pursuant to paragraph (4) of | 18 | | subsection (f) of this Section, for each year that the | 19 | | participating utility does not achieve each such goal, the | 20 | | participating utility's return
on equity shall be reduced | 21 | | as follows: during years 1 through 3, by 5 basis points;
| 22 | | during years 4 through 6, by 6 basis points; and during | 23 | | years 7 through 10, by 7 basis points. | 24 | | (5) With respect to each of the incremental annual | 25 | | performance goals established pursuant to subparagraph (5) | 26 | | of subsection (f) of this Section, for each year that the |
| | | 10300HB3808sam001 | - 39 - | LRB103 30973 SPS 62190 a |
|
| 1 | | participating utility does not achieve at least 95% of | 2 | | each such goal, the participating utility's return on | 3 | | equity shall be reduced by 5 basis points for each such | 4 | | unachieved goal. | 5 | | (6) With respect to each of the incremental annual | 6 | | performance goals established pursuant to paragraphs (6), | 7 | | (7), and (8) of subsection (f) of this Section, as | 8 | | applicable, which together measure non-operational | 9 | | customer savings and benefits
relating to the | 10 | | implementation of the Advanced Metering Infrastructure | 11 | | Deployment
Plan, as defined in Section 16-108.6 of this | 12 | | Act, the performance under each such goal shall be | 13 | | calculated in terms of the percentage of the goal | 14 | | achieved. The percentage of goal achieved for each of the | 15 | | goals shall be aggregated, and an average percentage value | 16 | | calculated, for each year of the 10-year period. If the | 17 | | utility does not achieve an average percentage value in a | 18 | | given year of at least 95%, the participating utility's | 19 | | return on equity shall be reduced by 5 basis points. | 20 | | The financial penalties shall be applied as described in | 21 | | this subsection (f-5) for the 12-month period in which the | 22 | | deficiency occurred through a separate tariff mechanism, which | 23 | | shall be filed by the utility together with its metrics. In the | 24 | | event the formula rate tariff established pursuant to | 25 | | subsection (c) of this Section terminates, the utility's | 26 | | obligations under subsection (f) of this Section and this |
| | | 10300HB3808sam001 | - 40 - | LRB103 30973 SPS 62190 a |
|
| 1 | | subsection (f-5) shall also terminate, provided, however, that | 2 | | the tariff mechanism established pursuant to subsection (f) of | 3 | | this Section and this subsection (f-5) shall remain in effect | 4 | | until any penalties due and owing at the time of such | 5 | | termination are applied. | 6 | | The Commission shall, after notice and hearing, enter an | 7 | | order within 120 days after the metrics are filed approving, | 8 | | or approving with modification, a participating utility's | 9 | | tariff or mechanism to satisfy the metrics set forth in | 10 | | subsection (f) of this Section. On June 1 of each subsequent | 11 | | year, each participating utility shall file a report with the | 12 | | Commission that includes, among other things, a description of | 13 | | how the participating utility performed under each metric and | 14 | | an identification of any extraordinary events that adversely | 15 | | impacted the utility's performance. Whenever a participating | 16 | | utility does not satisfy the metrics required pursuant to | 17 | | subsection (f) of this Section, the Commission shall, after | 18 | | notice and hearing, enter an order approving financial | 19 | | penalties in accordance with this subsection (f-5). The | 20 | | Commission-approved financial penalties shall be applied | 21 | | beginning with the next rate year. Nothing in this Section | 22 | | shall authorize the Commission to reduce or otherwise obviate | 23 | | the imposition of financial penalties for failing to achieve | 24 | | one or more of the metrics established pursuant to | 25 | | subparagraphs subparagraph (1) through (4) of subsection (f) | 26 | | of this Section. |
| | | 10300HB3808sam001 | - 41 - | LRB103 30973 SPS 62190 a |
|
| 1 | | (g) On or before July 31, 2014, each participating utility | 2 | | shall file a report with the Commission that sets forth the | 3 | | average annual increase in the average amount paid per | 4 | | kilowatthour for residential eligible retail customers, | 5 | | exclusive of the effects of energy efficiency programs, | 6 | | comparing the 12-month period ending May 31, 2012; the | 7 | | 12-month period ending May 31, 2013; and the 12-month period | 8 | | ending May 31, 2014. For a participating utility that is a | 9 | | combination utility with more than one rate zone, the weighted | 10 | | average aggregate increase shall be provided. The report shall | 11 | | be filed together with a statement from an independent auditor | 12 | | attesting to the accuracy of the report. The cost of the | 13 | | independent auditor shall be borne by the participating | 14 | | utility and shall not be a recoverable expense. "The average | 15 | | amount paid per kilowatthour" shall be based on the | 16 | | participating utility's tariffed rates actually in effect and | 17 | | shall not be calculated using any hypothetical rate or | 18 | | adjustments to actual charges (other than as specified for | 19 | | energy efficiency) as an input. | 20 | | In the event that the average annual increase exceeds 2.5% | 21 | | as calculated pursuant to this subsection (g), then Sections | 22 | | 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other | 23 | | than this subsection, shall be inoperative as they relate to | 24 | | the utility and its service area as of the date of the report | 25 | | due to be submitted pursuant to this subsection and the | 26 | | utility shall no longer be eligible to annually update the |
| | | 10300HB3808sam001 | - 42 - | LRB103 30973 SPS 62190 a |
|
| 1 | | performance-based formula rate tariff pursuant to subsection | 2 | | (d) of this Section. In such event, the then current rates | 3 | | shall remain in effect until such time as new rates are set | 4 | | pursuant to Article IX of this Act, subject to retroactive | 5 | | adjustment, with interest, to reconcile rates charged with | 6 | | actual costs, and the participating utility's voluntary | 7 | | commitments and obligations under subsection (b) of this | 8 | | Section shall immediately terminate, except for the utility's | 9 | | obligation to pay an amount already owed to the fund for | 10 | | training grants pursuant to a Commission order issued under | 11 | | subsection (b) of this Section. | 12 | | In the event that the average annual increase is 2.5% or | 13 | | less as calculated pursuant to this subsection (g), then the | 14 | | performance-based formula rate shall remain in effect as set | 15 | | forth in this Section. | 16 | | For purposes of this Section, the amount per kilowatthour | 17 | | means the total amount paid for electric service expressed on | 18 | | a per kilowatthour basis, and the total amount paid for | 19 | | electric service includes without limitation amounts paid for | 20 | | supply, transmission, distribution, surcharges, and add-on | 21 | | taxes exclusive of any increases in taxes or new taxes imposed | 22 | | after October 26, 2011 (the effective date of Public Act | 23 | | 97-616). For purposes of this Section, "eligible retail | 24 | | customers" shall have the meaning set forth in Section | 25 | | 16-111.5 of this Act. | 26 | | The fact that this Section becomes inoperative as set |
| | | 10300HB3808sam001 | - 43 - | LRB103 30973 SPS 62190 a |
|
| 1 | | forth in this subsection shall not be construed to mean that | 2 | | the Commission may reexamine or otherwise reopen prudence or | 3 | | reasonableness determinations already made. | 4 | | (h) By December 31, 2017, the Commission shall prepare and | 5 | | file with the General Assembly a report on the infrastructure | 6 | | program and the performance-based formula rate. The report | 7 | | shall include the change in the average amount per | 8 | | kilowatthour paid by residential customers between June 1, | 9 | | 2011 and May 31, 2017. If the change in the total average rate | 10 | | paid exceeds 2.5% compounded annually, the Commission shall | 11 | | include in the report an analysis that shows the portion of the | 12 | | change due to the delivery services component and the portion | 13 | | of the change due to the supply component of the rate. The | 14 | | report shall include separate sections for each participating | 15 | | utility. | 16 | | Sections 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of | 17 | | this Act, other than this subsection (h) and subsection (i) of | 18 | | this Section, are inoperative after December 31, 2022 for | 19 | | every participating utility, after which time a participating | 20 | | utility shall no longer be eligible to annually update the | 21 | | performance-based formula rate tariff pursuant to subsection | 22 | | (d) of this Section. At such time, the then current rates shall | 23 | | remain in effect until such time as new rates are set pursuant | 24 | | to Article IX of this Act, subject to retroactive adjustment, | 25 | | with interest, to reconcile rates charged with actual costs. | 26 | | The fact that this Section becomes inoperative as set |
| | | 10300HB3808sam001 | - 44 - | LRB103 30973 SPS 62190 a |
|
| 1 | | forth in this subsection shall not be construed to mean that | 2 | | the Commission may reexamine or otherwise reopen prudence or | 3 | | reasonableness determinations already made. | 4 | | (i) While a participating utility may use, develop, and | 5 | | maintain broadband systems and the delivery of broadband | 6 | | services, voice-over-internet-protocol services, | 7 | | telecommunications services, and cable and video programming | 8 | | services for use in providing delivery services and Smart Grid | 9 | | functionality or application to its retail customers, | 10 | | including, but not limited to, the installation, | 11 | | implementation and maintenance of Smart Grid electric system | 12 | | upgrades as defined in Section 16-108.6 of this Act, a | 13 | | participating utility is prohibited from providing to its | 14 | | retail customers broadband services, | 15 | | voice-over-internet-protocol services, telecommunications | 16 | | services, or cable or video programming services, unless they | 17 | | are part of a service directly related to delivery services or | 18 | | Smart Grid functionality or applications as defined in Section | 19 | | 16-108.6 of this Act, and from recovering the costs of such | 20 | | offerings from retail customers. Furthermore, a participating | 21 | | utility in a county having a population of 3,000,000 or more is | 22 | | prohibited from making available to its customers 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 | 26 | | to delivery services or Smart Grid functionality or |
| | | 10300HB3808sam001 | - 45 - | LRB103 30973 SPS 62190 a |
|
| 1 | | applications as defined in Section 16-108.6, and from | 2 | | recovering the costs of such offerings from retail customers. | 3 | | The prohibition set forth in this subsection (i) is | 4 | | inoperative after December 31, 2027 for every participating | 5 | | utility. | 6 | | (j) Nothing in this Section is intended to legislatively | 7 | | overturn the opinion issued in Commonwealth Edison Co. v. Ill. | 8 | | Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137, | 9 | | 1-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App. | 10 | | Ct. 2d Dist. Sept. 30, 2010). Public Act 97-616 shall not be | 11 | | construed as creating a contract between the General Assembly | 12 | | and the participating utility, and shall not establish a | 13 | | property right in the participating utility.
| 14 | | (k) The changes made in subsections (c) and (d) of this | 15 | | Section by Public Act 98-15 are intended to be a restatement | 16 | | and clarification of existing law, and intended to give | 17 | | binding effect to the provisions of House Resolution 1157 | 18 | | adopted by the House of Representatives of the 97th General | 19 | | Assembly and Senate Resolution 821 adopted by the Senate of | 20 | | the 97th General Assembly that are reflected in paragraph (3) | 21 | | of this subsection. In addition, Public Act 98-15 preempts and | 22 | | supersedes any final Commission orders entered in Docket Nos. | 23 | | 11-0721, 12-0001, 12-0293, and 12-0321 to the extent | 24 | | inconsistent with the amendatory language added to subsections | 25 | | (c) and (d). | 26 | | (1) No earlier than 5 business days after May 22, 2013 |
| | | 10300HB3808sam001 | - 46 - | LRB103 30973 SPS 62190 a |
|
| 1 | | (the effective date of Public Act 98-15), each | 2 | | participating utility shall file any tariff changes | 3 | | necessary to implement the amendatory language set forth | 4 | | in subsections (c) and (d) of this Section by Public Act | 5 | | 98-15 and a revised revenue requirement under the | 6 | | participating utility's performance-based formula rate. | 7 | | The Commission shall enter a final order approving such | 8 | | tariff changes and revised revenue requirement within 21 | 9 | | days after the participating utility's filing. | 10 | | (2) Notwithstanding anything that may be to the | 11 | | contrary, a participating utility may file a tariff to | 12 | | retroactively recover its previously unrecovered actual | 13 | | costs of delivery service that are no longer subject to | 14 | | recovery through a reconciliation adjustment under | 15 | | subsection (d) of this Section. This retroactive recovery | 16 | | shall include any derivative adjustments resulting from | 17 | | the changes to subsections (c) and (d) of this Section by | 18 | | Public Act 98-15. Such tariff shall allow the utility to | 19 | | assess, on current customer bills over a period of 12 | 20 | | monthly billing periods, a charge or credit related to | 21 | | those unrecovered costs with interest at the utility's | 22 | | weighted average cost of capital during the period in | 23 | | which those costs were unrecovered. A participating | 24 | | utility may file a tariff that implements a retroactive | 25 | | charge or credit as described in this paragraph for | 26 | | amounts not otherwise included in the tariff filing |
| | | 10300HB3808sam001 | - 47 - | LRB103 30973 SPS 62190 a |
|
| 1 | | provided for in paragraph (1) of this subsection (k). The | 2 | | Commission shall enter a final order approving such tariff | 3 | | within 21 days after the participating utility's filing. | 4 | | (3) The tariff changes described in paragraphs (1) and | 5 | | (2) of this subsection (k) shall relate only to, and be | 6 | | consistent with, the following provisions of Public Act | 7 | | 98-15: paragraph (2) of subsection (c) regarding year-end | 8 | | capital structure, subparagraph (D) of paragraph (4) of | 9 | | subsection (c) regarding pension assets, and subsection | 10 | | (d) regarding the reconciliation components related to | 11 | | year-end rate base and interest calculated at a rate equal | 12 | | to the utility's weighted average cost of capital. | 13 | | (4) Nothing in this subsection is intended to effect a | 14 | | dismissal of or otherwise affect an appeal from any final | 15 | | Commission orders entered in Docket Nos. 11-0721, 12-0001, | 16 | | 12-0293, and 12-0321 other than to the extent of the | 17 | | amendatory language contained in subsections (c) and (d) | 18 | | of this Section of Public Act 98-15. | 19 | | (l) Each participating utility shall be deemed to have | 20 | | been in full compliance with all requirements of subsection | 21 | | (b) of this Section, subsection (c) of this Section, Section | 22 | | 16-108.6 of this Act, and all Commission orders entered | 23 | | pursuant to Sections 16-108.5 and 16-108.6 of this Act, up to | 24 | | and including May 22, 2013 (the effective date of Public Act | 25 | | 98-15). The Commission shall not undertake any investigation | 26 | | of such compliance and no penalty shall be assessed or adverse |
| | | 10300HB3808sam001 | - 48 - | LRB103 30973 SPS 62190 a |
|
| 1 | | action taken against a participating utility for noncompliance | 2 | | with Commission orders associated with subsection (b) of this | 3 | | Section, subsection (c) of this Section, and Section 16-108.6 | 4 | | of this Act prior to such date. Each participating utility | 5 | | other than a combination utility shall be permitted, without | 6 | | penalty, a period of 12 months after such effective date to | 7 | | take actions required to ensure its infrastructure investment | 8 | | program is in compliance with subsection (b) of this Section | 9 | | and with Section 16-108.6 of this Act. Provided further, the | 10 | | following subparagraphs shall apply to a participating utility | 11 | | other than a combination utility: | 12 | | (A) if the Commission has initiated a proceeding | 13 | | pursuant to subsection (e) of Section 16-108.6 of this Act | 14 | | that is pending as of May 22, 2013 (the effective date of | 15 | | Public Act 98-15), then the order entered in such | 16 | | proceeding shall, after notice and hearing, accelerate the | 17 | | commencement of the meter deployment schedule approved in | 18 | | the final Commission order on rehearing entered in Docket | 19 | | No. 12-0298; | 20 | | (B) if the Commission has entered an order pursuant to | 21 | | subsection (e) of Section 16-108.6 of this Act prior to | 22 | | May 22, 2013 (the effective date of Public Act 98-15) that | 23 | | does not accelerate the commencement of the meter | 24 | | deployment schedule approved in the final Commission order | 25 | | on rehearing entered in Docket No. 12-0298, then the | 26 | | utility shall file with the Commission, within 45 days |
| | | 10300HB3808sam001 | - 49 - | LRB103 30973 SPS 62190 a |
|
| 1 | | after such effective date, a plan for accelerating the | 2 | | commencement of the utility's meter deployment schedule | 3 | | approved in the final Commission order on rehearing | 4 | | entered in Docket No. 12-0298; the Commission shall reopen | 5 | | the proceeding in which it entered its order pursuant to | 6 | | subsection (e) of Section 16-108.6 of this Act and shall, | 7 | | after notice and hearing, enter an amendatory order that | 8 | | approves or approves as modified such accelerated plan | 9 | | within 90 days after the utility's filing; or | 10 | | (C) if the Commission has not initiated a proceeding | 11 | | pursuant to subsection (e) of Section 16-108.6 of this Act | 12 | | prior to May 22, 2013 (the effective date of Public Act | 13 | | 98-15), then the utility shall file with the Commission, | 14 | | within 45 days after such effective date, a plan for | 15 | | accelerating the commencement of the utility's meter | 16 | | deployment schedule approved in the final Commission order | 17 | | on rehearing entered in Docket No. 12-0298 and the | 18 | | Commission shall, after notice and hearing, approve or | 19 | | approve as modified such plan within 90 days after the | 20 | | utility's filing. | 21 | | Any schedule for meter deployment approved by the | 22 | | Commission pursuant to this subsection (l) shall take into | 23 | | consideration procurement times for meters and other equipment | 24 | | and operational issues. Nothing in Public Act 98-15 shall | 25 | | shorten or extend the end dates for the 5-year or 10-year | 26 | | periods set forth in subsection (b) of this Section or Section |
| | | 10300HB3808sam001 | - 50 - | LRB103 30973 SPS 62190 a |
|
| 1 | | 16-108.6 of this Act. Nothing in this subsection is intended | 2 | | to address whether a participating utility has, or has not, | 3 | | satisfied any or all of the metrics and performance goals | 4 | | established pursuant to subsection (f) of this Section. | 5 | | (m) The provisions of Public Act 98-15 are severable under | 6 | | Section 1.31 of the Statute on Statutes. | 7 | | (Source: P.A. 102-1031, eff. 5-27-22; revised 8-22-22.) | 8 | | (220 ILCS 5/21-201) | 9 | | (Section scheduled to be repealed on December 31, 2026) | 10 | | Sec. 21-201. Definitions. As used in this Article: | 11 | | (a) "Access" means that the cable or video provider is | 12 | | capable of providing cable services or video services at the | 13 | | household address using any technology, other than | 14 | | direct-to-home satellite service, that
provides 2-way
| 15 | | broadband Internet capability and video programming, content, | 16 | | and functionality, regardless of whether any customer has | 17 | | ordered service or whether the owner or landlord or other | 18 | | responsible person has granted access to the household. If | 19 | | more than one technology is used, the technologies shall | 20 | | provide similar 2-way
broadband Internet accessibility and | 21 | | similar video programming. | 22 | | (b) "Basic cable or video service" means any cable or | 23 | | video service offering or tier that
includes the | 24 | | retransmission of local television broadcast signals. | 25 | | (c) "Broadband service" means a high speed service |
| | | 10300HB3808sam001 | - 51 - | LRB103 30973 SPS 62190 a |
|
| 1 | | connection to the public Internet capable of supporting, in at | 2 | | least one direction, a speed in excess of 200 kilobits per | 3 | | second (kbps) to the network demarcation point at the | 4 | | subscriber's premises. | 5 | | (d) "Cable operator" means that term as defined in item | 6 | | (5) of 47 U.S.C. 522. | 7 | | (e) "Cable service" means that term as defined in item (6) | 8 | | of 47 U.S.C. 522. | 9 | | (f) "Cable system" means that term as defined in item (7) | 10 | | of 47 U.S.C. 522. | 11 | | (g) "Commission" means the Illinois Commerce Commission. | 12 | | (h) "Competitive cable service or video service provider" | 13 | | means a person or entity that is providing or seeks to provide | 14 | | cable service or video service in an area where there is at | 15 | | least one incumbent cable operator. | 16 | | (i) "Designated market area" means a designated market | 17 | | area, as determined by Nielsen Media Research and published in | 18 | | the 1999-2000 Nielsen Station Index Directory and Nielsen | 19 | | Station Index United States Television Household Estimates or | 20 | | any successor publication. For any designated market area that | 21 | | crosses State lines, only households in the portion of the | 22 | | designated market area that is located within the holder's | 23 | | telecommunications service area in the State where access to | 24 | | video service will be offered shall be considered. | 25 | | (j) "Footprint" means the geographic area designated by | 26 | | the cable service or video service provider as the geographic |
| | | 10300HB3808sam001 | - 52 - | LRB103 30973 SPS 62190 a |
|
| 1 | | area in which it will offer cable services or video services | 2 | | during the period of its State-issued authorization. Each | 3 | | footprint shall be identified in terms of either (i) | 4 | | exchanges, as that term is defined in Section 13-206 of this | 5 | | Act; (ii) a collection of United States Census Bureau Block | 6 | | numbers (13 digit); (iii) if the area is smaller than the areas | 7 | | identified in either (i) or (ii), by geographic information | 8 | | system digital boundaries meeting or exceeding national map | 9 | | accuracy standards; or (iv) local units of government. | 10 | | (k) "Holder" means a person or entity that has received | 11 | | authorization to offer or provide cable or video service from | 12 | | the Commission pursuant to Section 21-401 of this Article. | 13 | | (l) "Household" means a house, an apartment, a mobile | 14 | | home, a group of rooms, or a single room that is intended for | 15 | | occupancy as separate living quarters. Separate living | 16 | | quarters are those in which the occupants live and eat | 17 | | separately from any other persons in the building and that
| 18 | | have direct access from the outside of the building or through | 19 | | a common hall. This definition is consistent with the United | 20 | | States Census Bureau, as that definition may be amended | 21 | | thereafter. | 22 | | (m) "Incumbent cable operator" means a person or entity | 23 | | that provided cable services or video services in a particular | 24 | | area under a franchise agreement with a local unit of | 25 | | government pursuant to Section 11-42-11 of the Illinois | 26 | | Municipal Code (65 ILCS 5/11-42-11) or Section 5-1095 of the |
| | | 10300HB3808sam001 | - 53 - | LRB103 30973 SPS 62190 a |
|
| 1 | | Counties Code (55 ILCS 5/5-1095) on January 1, 2007. | 2 | | (n) "Local franchising authority" means the local unit of | 3 | | government that has or requires a franchise with a cable | 4 | | operator, a provider of cable services, or a provider of video | 5 | | services to construct or operate a cable or video system or to | 6 | | offer cable services or video services under Section 11-42-11 | 7 | | of the Illinois Municipal Code (65 ILCS 5/11-42-11) or Section | 8 | | 5-1095 of the Counties Code (55 ILCS 5/5-1095). | 9 | | (o) "Local unit of government" means a city, village, | 10 | | incorporated town, or county. | 11 | | (p) "Low-income household" means those residential | 12 | | households located within the holder's existing telephone | 13 | | service area where the average annual household income is less | 14 | | than $35,000, based on the United States Census Bureau | 15 | | estimates adjusted annually to reflect rates of change and | 16 | | distribution. | 17 | | (q) "Public rights-of-way" means the areas on, below, or | 18 | | above a public roadway, highway, street, public sidewalk, | 19 | | alley, waterway, or utility easements dedicated for compatible | 20 | | uses. | 21 | | (r) "Service" means the provision of cable service
or | 22 | | video service
to subscribers and the interaction of | 23 | | subscribers with the person or entity that has received | 24 | | authorization to offer or provide cable or video service from | 25 | | the Commission pursuant to Section 21-401 of this Act. | 26 | | (s) "Service provider fee" means the amount paid under |
| | | 10300HB3808sam001 | - 54 - | LRB103 30973 SPS 62190 a |
|
| 1 | | Section 21-801 of this Act
by the holder to a municipality, or | 2 | | in the case of an unincorporated service area to a county, for | 3 | | service areas within its territorial jurisdiction, but under | 4 | | no circumstances shall the service provider fee be paid to | 5 | | more than one local unit of government for the same portion of | 6 | | the holder's service area. | 7 | | (t) "Telecommunications service area" means the area | 8 | | designated by the Commission as the area in which a | 9 | | telecommunications company was obligated to provide | 10 | | non-competitive local telephone service as of February 8, 1996 | 11 | | as incorporated into Section 13-202.5 of this Act. | 12 | | (u) "Video programming" means that term as defined in item | 13 | | (20) of 47 U.S.C. 522. | 14 | | (v) "Video service" means video programming provided by a | 15 | | video service provider and subscriber interaction, if any, | 16 | | that is required for the selection or use of such video | 17 | | programming services, and that
is provided through wireline | 18 | | facilities located at least in part in the public | 19 | | rights-of-way without regard to delivery technology, including | 20 | | Internet protocol technology. This definition does not include | 21 | | the following: (1) any video programming provided by a | 22 | | commercial mobile service provider defined in subsection (d) | 23 | | of 47 U.S.C. 332 ; (2) direct-to-home satellite services | 24 | | defined in subsection (v) of 47 U.S.C. 303;
or (3) any video | 25 | | programming provided solely as part of, and accessed via a , | 26 | | service that enables users to access content, information, |
| | | 10300HB3808sam001 | - 55 - | LRB103 30973 SPS 62190 a |
|
| 1 | | electronic mail, or other services offered over the public | 2 | | Internet , including Internet streaming content . | 3 | | (Source: P.A. 100-20, eff. 7-1-17 .) | 4 | | (220 ILCS 5/21-801) | 5 | | (Section scheduled to be repealed on December 31, 2026) | 6 | | Sec. 21-801. Applicable fees payable to the local unit of | 7 | | government. | 8 | | (a) Prior to offering cable service or video service in a | 9 | | local unit of government's jurisdiction, a holder shall notify | 10 | | the local unit of government. The notice shall be given to the | 11 | | local unit of government at least 10 days before the holder | 12 | | begins to offer cable service or video service within the | 13 | | boundaries of that local unit of government. | 14 | | (b) In any local unit of government in which a holder | 15 | | offers cable service or video service on a commercial basis, | 16 | | the holder shall be liable for and pay the service provider fee | 17 | | to the local unit of government. The local unit of government | 18 | | shall adopt an ordinance imposing such a fee. The holder's | 19 | | liability for the fee shall commence on the first day of the | 20 | | calendar month that is at least 30 days after the holder | 21 | | receives such ordinance. For any such ordinance adopted on or | 22 | | after the effective date of this amendatory Act of the 99th | 23 | | General Assembly, the holder's liability shall commence on the | 24 | | first day of the calendar month that is at least 30 days after | 25 | | the adoption of such ordinance. The ordinance shall be sent by |
| | | 10300HB3808sam001 | - 56 - | LRB103 30973 SPS 62190 a |
|
| 1 | | mail, postage prepaid, to the address listed on the holder's | 2 | | application provided to the local unit of government pursuant | 3 | | to item (6) of subsection (b) of Section 21-401 of this Act. | 4 | | The fee authorized by this Section shall be 5% of gross | 5 | | revenues or the same as the fee paid to the local unit of | 6 | | government by any incumbent cable operator providing cable | 7 | | service. The payment of the service provider fee shall be due | 8 | | on a quarterly basis, 45 days after the close of the calendar | 9 | | quarter. If mailed, the fee is considered paid on the date it | 10 | | is postmarked. Except as provided in this Article, the local | 11 | | unit of government may not demand any additional fees or | 12 | | charges from the holder and may not demand the use of any other | 13 | | calculation method other than allowed under this Article. | 14 | | (c) For purposes of this Article, "gross revenues" means | 15 | | all consideration of any kind or nature, including, without | 16 | | limitation, cash, credits, property, and in-kind contributions | 17 | | received by the holder for the operation of a cable or video | 18 | | system to provide cable service or video service within the | 19 | | holder's cable service or video service area within the local | 20 | | unit of government's jurisdiction. | 21 | | (1) Gross revenues shall include the following: | 22 | | (i) Recurring charges for cable service or video | 23 | | service. | 24 | | (ii) Event-based charges for cable service or | 25 | | video service, including, but not limited to, | 26 | | pay-per-view and video-on-demand charges. |
| | | 10300HB3808sam001 | - 57 - | LRB103 30973 SPS 62190 a |
|
| 1 | | (iii) Rental of set-top
boxes and other cable | 2 | | service or video service equipment. | 3 | | (iv) Service charges related to the provision of | 4 | | cable service or video service, including, but not | 5 | | limited to, activation, installation, and repair | 6 | | charges. | 7 | | (v) Administrative charges related to the | 8 | | provision of cable service or video service, including | 9 | | but not limited to service order and service | 10 | | termination charges. | 11 | | (vi) Late payment fees or charges, insufficient | 12 | | funds check charges, and other charges assessed to | 13 | | recover the costs of collecting delinquent payments. | 14 | | (vii) A pro rata portion of all revenue derived by | 15 | | the holder or its affiliates pursuant to compensation | 16 | | arrangements for advertising or for promotion or | 17 | | exhibition of any products or services derived from | 18 | | the operation of the holder's network to provide cable | 19 | | service or video service within the local unit of | 20 | | government's jurisdiction. The allocation shall be | 21 | | based on the number of subscribers in the local unit of | 22 | | government divided by the total number of subscribers | 23 | | in relation to the relevant regional or national | 24 | | compensation arrangement. | 25 | | (viii) Compensation received by the holder that is | 26 | | derived from the operation of the holder's network to |
| | | 10300HB3808sam001 | - 58 - | LRB103 30973 SPS 62190 a |
|
| 1 | | provide cable service or video service with respect to | 2 | | commissions that are received by the holder as | 3 | | compensation for promotion or exhibition of any | 4 | | products or services on the holder's network, such as | 5 | | a "home shopping" or similar channel, subject to item | 6 | | (ix) of this paragraph (1). | 7 | | (ix) In the case of a cable service or video | 8 | | service that is bundled or integrated functionally | 9 | | with other services, capabilities, or applications, | 10 | | the portion of the holder's revenue attributable to | 11 | | the other services, capabilities, or applications | 12 | | shall be included in gross revenue unless the holder | 13 | | can reasonably identify the division or exclusion of | 14 | | the revenue from its books and records that are kept in | 15 | | the regular course of business. | 16 | | (x) The service provider fee permitted by | 17 | | subsection (b) of this Section. | 18 | | (2) Gross revenues do not include any of the | 19 | | following: | 20 | | (i) Revenues not actually received, even if | 21 | | billed, such as bad debt, subject to item (vi) of | 22 | | paragraph (1) of this subsection (c). | 23 | | (ii) Refunds, discounts, or other price | 24 | | adjustments that reduce the amount of gross revenues | 25 | | received by the holder of the State-issued | 26 | | authorization to the extent the refund, rebate, |
| | | 10300HB3808sam001 | - 59 - | LRB103 30973 SPS 62190 a |
|
| 1 | | credit, or discount is attributable to cable service | 2 | | or video service. | 3 | | (iii) Regardless of whether the services are | 4 | | bundled, packaged, or functionally integrated with | 5 | | cable service or video service, any revenues received | 6 | | from services not classified as cable service or video | 7 | | service, including, without limitation, revenue | 8 | | received from telecommunications services, information | 9 | | services, or the provision of directory or Internet | 10 | | advertising, including yellow pages, white pages, | 11 | | banner advertisement, and electronic publishing, or | 12 | | any other revenues attributed by the holder to | 13 | | noncable service or nonvideo service in accordance | 14 | | with the holder's books and records and records kept | 15 | | in the regular course of business and any applicable | 16 | | laws, rules, regulations, standards, or orders. | 17 | | (iv) The sale of cable services or video services | 18 | | for resale in which the purchaser is required to | 19 | | collect the service provider fee from the purchaser's | 20 | | subscribers to the extent the purchaser certifies in | 21 | | writing that it will resell the service within the | 22 | | local unit of government's jurisdiction and pay the | 23 | | fee permitted by subsection (b) of this Section
with | 24 | | respect to the service. | 25 | | (v) Any tax or fee of general applicability | 26 | | imposed upon the subscribers or the transaction by a |
| | | 10300HB3808sam001 | - 60 - | LRB103 30973 SPS 62190 a |
|
| 1 | | city, State, federal, or any other governmental entity | 2 | | and collected by the holder of the State-issued | 3 | | authorization and required to be remitted to the | 4 | | taxing entity, including sales and use taxes. | 5 | | (vi) Security deposits collected from subscribers. | 6 | | (vii) Amounts paid by subscribers to "home | 7 | | shopping" or similar vendors for merchandise sold | 8 | | through any home shopping channel offered as part of | 9 | | the cable service or video service. | 10 | | (viii) Any revenues received from video | 11 | | programming accessed via a service that enables users | 12 | | to access content, information, electronic mail, or | 13 | | other services offered over the Internet, including | 14 | | Internet streaming content. | 15 | | (3) Revenue of an affiliate of a holder shall be | 16 | | included in the calculation of gross revenues to the | 17 | | extent the treatment of the revenue as revenue of the | 18 | | affiliate rather than the holder has the effect of evading | 19 | | the payment of the fee permitted by subsection (b) of this | 20 | | Section
which would otherwise be paid by the cable service | 21 | | or video service. | 22 | | (d)(1) Except for a holder providing cable service that is | 23 | | subject to the fee in subsection (i) of this Section, the | 24 | | holder shall pay to the local unit of government or the entity | 25 | | designated by that local unit of government to manage public, | 26 | | education, and government access, upon request as support for |
| | | 10300HB3808sam001 | - 61 - | LRB103 30973 SPS 62190 a |
|
| 1 | | public, education, and government access, a fee equal to no | 2 | | less than (i) 1% of gross revenues or (ii) if greater, the | 3 | | percentage of gross revenues that incumbent cable operators | 4 | | pay to the local unit of government or its designee for public, | 5 | | education, and government access support in the local unit of | 6 | | government's jurisdiction. For purposes of item (ii) of | 7 | | paragraph (1) of this subsection (d), the percentage of gross | 8 | | revenues that all incumbent cable operators pay shall be equal | 9 | | to the annual sum of the payments that incumbent cable | 10 | | operators in the service area are obligated to pay by | 11 | | franchises and agreements or by contracts with the local | 12 | | government designee for public, education and government | 13 | | access in effect on January 1, 2007, including the total of any | 14 | | lump sum payments required to be made over the term of each | 15 | | franchise or agreement divided by the number of years of the | 16 | | applicable term, divided by the annual sum of such incumbent | 17 | | cable operator's or operators'
gross revenues during the | 18 | | immediately prior calendar year. The sum of payments includes | 19 | | any payments that an incumbent cable operator is required to | 20 | | pay pursuant to item (3) of subsection (c) of Section 21-301. | 21 | | (2) A local unit of government may require all holders of a | 22 | | State-issued authorization and all cable operators franchised | 23 | | by that local unit of government on June 30, 2007 (the | 24 | | effective date of this Section)
in the franchise area to | 25 | | provide to the local unit of government, or to the entity | 26 | | designated by that local unit of government to manage public, |
| | | 10300HB3808sam001 | - 62 - | LRB103 30973 SPS 62190 a |
|
| 1 | | education, and government access, information sufficient to | 2 | | calculate the public, education, and government access | 3 | | equivalent fee and any credits under paragraph (1) of this | 4 | | subsection (d). | 5 | | (3) The fee shall be due on a quarterly basis and paid 45 | 6 | | days after the close of the calendar quarter. Each payment | 7 | | shall include a statement explaining the basis for the | 8 | | calculation of the fee. If mailed, the fee is considered paid | 9 | | on the date it is postmarked. The liability of the holder for | 10 | | payment of the fee under this subsection shall commence on the | 11 | | same date as the payment of the service provider fee pursuant | 12 | | to subsection (b) of this Section. | 13 | | (e) The holder may identify and collect the amount of the | 14 | | service provider fee as a separate line item on the regular | 15 | | bill of each subscriber. | 16 | | (f) The holder may identify and collect the amount of the | 17 | | public, education, and government programming support fee as a | 18 | | separate line item on the regular bill of each subscriber. | 19 | | (g) All determinations and computations under this Section | 20 | | shall be made pursuant to the definition of gross revenues set | 21 | | forth in this Section and shall be made pursuant to generally | 22 | | accepted accounting principles. | 23 | | (h) Nothing contained in this Article shall be construed | 24 | | to exempt a holder from any tax that is or may later be imposed | 25 | | by the local unit of government, including any tax that is or | 26 | | may later be required to be paid by or through the holder with |
| | | 10300HB3808sam001 | - 63 - | LRB103 30973 SPS 62190 a |
|
| 1 | | respect to cable service or video service. A State-issued | 2 | | authorization shall not affect any requirement of the holder | 3 | | with respect to payment of the local unit of government's | 4 | | simplified municipal telecommunications tax or any other tax | 5 | | as it applies to any telephone service provided by the holder. | 6 | | A State-issued authorization shall not affect any requirement | 7 | | of the holder with respect to payment of the local unit of | 8 | | government's 911 or E911 fees, taxes, or charges.
| 9 | | (i) Except for a municipality having a population of | 10 | | 2,000,000 or more, the fee imposed under paragraph (1) of | 11 | | subsection (d) by a local unit of government against a holder | 12 | | who is a cable operator shall be as follows: | 13 | | (1) the fee shall be collected and paid only for | 14 | | capital costs that are considered lawful under Subchapter | 15 | | VI of the federal Communications Act of 1934, as amended, | 16 | | and as implemented by the Federal Communications | 17 | | Commission; | 18 | | (2) the local unit of government shall impose any fee | 19 | | by ordinance; and | 20 | | (3) the fee may not exceed 1% of gross revenue; if, | 21 | | however, on the date that an incumbent cable operator | 22 | | files an application under Section 21-401, the incumbent | 23 | | cable operator is operating under a franchise agreement | 24 | | that imposes a fee for support for capital costs for | 25 | | public, education, and government access facilities | 26 | | obligations in excess of 1% of gross revenue, then the |
| | | 10300HB3808sam001 | - 64 - | LRB103 30973 SPS 62190 a |
|
| 1 | | cable operator shall continue to provide support for | 2 | | capital costs for public, education, and government access | 3 | | facilities obligations at the rate stated in such | 4 | | agreement. | 5 | | (Source: P.A. 99-6, eff. 6-29-15; 100-20, eff. 7-1-17 .)".
|
|