Full Text of HB0502 094th General Assembly
HB0502 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB0502
Introduced 1/27/2005, by Rep. Kathleen A. Ryg SYNOPSIS AS INTRODUCED: |
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220 ILCS 5/16-102 |
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220 ILCS 5/Art. XX heading new |
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220 ILCS 5/20-5 new |
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220 ILCS 5/20-10 new |
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220 ILCS 5/20-15 new |
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220 ILCS 5/20-20 new |
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220 ILCS 5/20-25 new |
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Amends the Public Utilities Act. Provides that, for public schools, the "transition charge" is: (i) 0.5 cents per kilowatt-hour during the period October 1, 1999
through December 31, 2004, 1.25 cents per kilowatt-hour in calendar year 2005,
and 1.5 cents per kilowatt-hour in calendar year 2006, multiplied in
each year by the usage identified in paragraph (1); or (ii) an amount equal to
the following percentages of the amount produced by applying the applicable
base rates or contract rate to
the identified usage: 8% for the period October 1, 1999
through December 31, 2002, 10% in calendar years 2003 and 2004, 15% in calendar
year 2005 and 25% in calendar year 2006 (now, the transition charge for public schools is calculated in the same manner as that of all nonresidential retail customers). Requires each Illinois gas corporation to file annually a set of transportation schedules or tariffs applicable to public schools authorizing a public school association to aggregate the purchase of natural gas for its members. Requires the transportation schedules or tariffs to (i) establish certain delivery charges; (ii) authorize a public school association to contract with the gas corporation at monthly market prices for interstate pipeline capacity; (iii) require the gas corporation to provide certain usage projections; and (iv) authorizes the corporation to impose a penalty under limited circumstances. Authorizes the Illinois Commerce Commission to suspend the transportation schedule or tariff for up to 3 months. Requires energy sellers to comply with applicable Commission rules. Provides that any agreement between a public school association and an energy seller is void if the energy seller does not comply with Commission rules. Requires each gas corporation to file an annual statement of its revenues and incremental charges incurred as direct result of the aggregation of natural gas for public schools. Authorizes the Commission to promulgate rules reasonable and necessary to administer the aggregation program. Effective immediately.
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A BILL FOR
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HB0502 |
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Public Utilities Act is amended by changing | 5 |
| Section 16-102 and by adding Article XX as follows:
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| (220 ILCS 5/16-102)
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| Sec. 16-102. Definitions. For the purposes of this
Article | 8 |
| the following terms shall be defined as set forth in
this | 9 |
| Section.
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| "Alternative retail electric supplier" means every
person, | 11 |
| cooperative, corporation, municipal corporation,
company, | 12 |
| association, joint stock company or association,
firm, | 13 |
| partnership, individual, or other entity, their lessees,
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| trustees, or receivers appointed by any court whatsoever, that
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| offers electric power or energy for sale, lease or in exchange
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| for other value received to one or more retail customers, or
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| that engages in the delivery or furnishing of electric power
or | 18 |
| energy to such retail customers, and shall include, without
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| limitation, resellers, aggregators and power marketers, but
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| shall not include (i) electric utilities (or any agent of the
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| electric utility to the extent the electric utility provides
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| tariffed services to retail customers through that agent),
(ii) | 23 |
| any electric cooperative or municipal system as defined
in | 24 |
| Section 17-100 to the extent that the electric cooperative
or | 25 |
| municipal system is serving retail customers within any
area in | 26 |
| which it is or would be entitled to provide service
under the | 27 |
| law in effect immediately prior to the effective
date of this | 28 |
| amendatory Act of 1997, (iii) a public utility
that is owned | 29 |
| and operated by any public institution of higher
education of | 30 |
| this State, or a public utility that is owned by
such public | 31 |
| institution of higher education and operated by
any of its | 32 |
| lessees or operating agents, within any area in
which it is or |
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| would be entitled to provide service under the
law in effect | 2 |
| immediately prior to the effective date of this
amendatory Act | 3 |
| of 1997, (iv) a retail customer to the extent
that customer | 4 |
| obtains its electric power and energy from that customer's
own | 5 |
| cogeneration or self-generation facilities, (v) an
entity that | 6 |
| owns, operates, sells, or arranges for the installation of
a | 7 |
| customer's own cogeneration or self-generation facilities, but | 8 |
| only to
the extent the entity is engaged in
owning,
selling or | 9 |
| arranging for the installation of such facility,
or operating | 10 |
| the facility
on behalf of such customer, provided however that | 11 |
| any such
third party owner or operator of a facility built | 12 |
| after
January 1, 1999, complies with the labor provisions of | 13 |
| Section 16-128(a) as
though
such third party were an | 14 |
| alternative retail
electric supplier,
or (vi) an industrial or
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| manufacturing customer that owns
its own
distribution | 16 |
| facilities, to the extent that the customer provides service | 17 |
| from
that distribution system to a third-party contractor | 18 |
| located on the customer's
premises that is integrally and | 19 |
| predominantly engaged in the customer's
industrial or
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| manufacturing process; provided, that if the industrial or | 21 |
| manufacturing
customer has elected delivery services, the | 22 |
| customer shall pay transition
charges applicable to the | 23 |
| electric power and energy consumed by the third-party
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| contractor unless such charges are otherwise paid by the third | 25 |
| party
contractor, which shall be calculated based on the usage | 26 |
| of, and the base rates
or the contract rates applicable to, the | 27 |
| third-party contractor in accordance
with Section 16-102.
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| "Base rates" means the rates for those tariffed services | 29 |
| that the electric
utility is required to offer pursuant to | 30 |
| subsection (a) of Section 16-103 and
that were identified in a | 31 |
| rate order for collection of the electric
utility's base rate | 32 |
| revenue requirement, excluding (i) separate automatic
rate | 33 |
| adjustment riders then in effect, (ii) special or negotiated | 34 |
| contract
rates, (iii) delivery services tariffs filed pursuant | 35 |
| to Section 16-108, (iv)
real-time pricing, or (v) tariffs that | 36 |
| were in effect prior to October 1, 1996
and that based charges |
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| for services on an index or average of other utilities'
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| charges, but including (vi) any subsequent redesign of such | 3 |
| rates for
tariffed
services that is authorized by the | 4 |
| Commission after notice and hearing.
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| "Competitive service" includes (i) any service that
has | 6 |
| been declared to be competitive pursuant to Section
16-113 of | 7 |
| this Act, (ii) contract service, and (iii) services,
other than | 8 |
| tariffed services, that are related to, but not
necessary for, | 9 |
| the provision of electric power and energy or delivery | 10 |
| services.
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| "Contract service" means (1) services, including the
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| provision of electric power and energy or other services, that
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| are provided by mutual agreement between an electric utility
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| and a retail customer that is located in the electric
utility's | 15 |
| service area, provided that, delivery services shall
not be a | 16 |
| contract service until such services are declared
competitive | 17 |
| pursuant to Section 16-113; and also means (2) the
provision of | 18 |
| electric power and energy by an electric utility
to retail | 19 |
| customers outside the electric utility's service
area pursuant | 20 |
| to Section 16-116. Provided, however, contract
service does not | 21 |
| include electric utility services provided
pursuant to (i) | 22 |
| contracts that retail customers are required
to execute as a | 23 |
| condition of receiving tariffed services, or
(ii) special or | 24 |
| negotiated rate contracts for electric utility
services that | 25 |
| were entered into between an electric utility
and a retail | 26 |
| customer prior to the effective date of this
amendatory Act of | 27 |
| 1997 and filed with the Commission.
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| "Delivery services" means those services provided by the
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| electric utility that are necessary in order for the
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| transmission and distribution systems to function so that
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| retail customers located in the electric utility's service
area | 32 |
| can receive electric power and energy from suppliers
other than | 33 |
| the electric utility, and shall include, without
limitation, | 34 |
| standard metering and billing services.
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| "Electric utility" means a public utility, as defined in
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| Section 3-105 of this Act, that has a franchise, license,
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| permit or right to furnish or sell electricity to retail
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| customers within a service area.
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| "Mandatory transition period" means the period from the
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| effective date of this amendatory Act of 1997 through January
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| 1, 2007.
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| "Municipal system" shall have the meaning set forth in
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| Section 17-100.
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| "Real-time pricing" means charges for delivered electric
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| power and energy that vary on an hour-to-hour basis for
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| nonresidential retail customers and that vary on a periodic
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| basis during the day for residential retail customers.
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| "Retail customer" means a single entity using electric
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| power or energy at a single premises and that (A) either (i)
is | 14 |
| receiving or is eligible to receive tariffed services from
an | 15 |
| electric utility, or (ii) that is served by a municipal system | 16 |
| or electric
cooperative within any area in which the
municipal | 17 |
| system or electric cooperative is or would be
entitled to | 18 |
| provide service under the law in effect
immediately prior to | 19 |
| the effective date of this amendatory Act
of 1997, or (B) an | 20 |
| entity which on the effective date of this
Act was receiving | 21 |
| electric service from a public utility and
(i) was engaged in | 22 |
| the practice of resale and redistribution
of such electricity | 23 |
| within a building prior to January 2,
1957, or (ii) was | 24 |
| providing lighting services to tenants in a
multi-occupancy | 25 |
| building, but only to the extent such resale,
redistribution or | 26 |
| lighting service is authorized by the
electric utility's | 27 |
| tariffs that were on file with the
Commission on the effective | 28 |
| date of this Act.
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| "Service area" means (i) the geographic area within which
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| an electric utility was lawfully entitled to provide electric
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| power and energy to retail customers as of the effective date
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| of this amendatory Act of 1997, and includes (ii) the location
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| of any retail customer to which the electric utility was
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| lawfully providing electric utility services on such effective
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| date.
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| "Small commercial retail customer" means those
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| nonresidential retail customers of an electric utility
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| consuming 15,000 kilowatt-hours or less of electricity
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| annually in its service area.
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| "Tariffed service" means services provided to retail
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| customers by an electric utility as defined by its rates on
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| file with the Commission pursuant to the provisions of Article
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| IX of this Act, but shall not include competitive services.
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| "Transition charge" means a charge expressed in cents
per | 9 |
| kilowatt-hour that is calculated for a customer or class
of | 10 |
| customers as follows for each year in which an electric
utility | 11 |
| is entitled to recover transition charges as provided
in | 12 |
| Section 16-108:
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| (1) the amount of revenue that an electric utility
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| would receive from the retail customer or customers if it
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| were serving such customers' electric power and energy
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| requirements as a tariffed service based on (A) all of
the | 17 |
| customers' actual usage during the 3 years
ending 90 days | 18 |
| prior to the date on which such customers
were first | 19 |
| eligible for delivery services pursuant to
Section 16-104, | 20 |
| and (B) on (i) the base rates in effect
on October 1, 1996 | 21 |
| (adjusted for the reductions required
by subsection (b) of | 22 |
| Section 16-111, for any reduction resulting from a rate
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| decrease under Section 16-101(b), for any restatement of | 24 |
| base rates made in
conjunction with an elimination
of the | 25 |
| fuel adjustment clause pursuant to subsection (b), (d), or | 26 |
| (f) of
Section
9-220
and for any removal of decommissioning | 27 |
| costs from base
rates pursuant to Section 16-114)
and any | 28 |
| separate automatic rate adjustment riders (other
than a | 29 |
| decommissioning rate as defined in Section 16-114)
under | 30 |
| which the customers were receiving or, had they
been | 31 |
| customers, would have received electric power and
energy | 32 |
| from the electric utility during the year
immediately | 33 |
| preceding the date on which such customers
were first | 34 |
| eligible for delivery service pursuant to
Section 16-104, | 35 |
| or (ii) to the extent applicable, any
contract rates, | 36 |
| including contracts or rates for consolidated or
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| aggregated billing, under which such customers were
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| receiving electric power and energy from the electric
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| utility during such year;
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| (2) less the amount of revenue, other than revenue
from | 5 |
| transition charges and decommissioning rates, that the | 6 |
| electric utility
would
receive from such retail customers | 7 |
| for delivery services
provided by the electric utility, | 8 |
| assuming such customers
were taking delivery services for | 9 |
| all of their usage,
based on the delivery services tariffs | 10 |
| in effect during
the year for which the transition charge | 11 |
| is being
calculated and on the usage identified in | 12 |
| paragraph (1);
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| (3) less the market value for the electric power
and | 14 |
| energy that the electric utility would have used to
supply | 15 |
| all of such customers' electric power and energy
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| requirements, as a tariffed service, based on the usage
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| identified in paragraph (1), with such market value
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| determined in accordance with Section 16-112 of this Act;
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| (4) less the following amount which represents the
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| amount to be attributed to new revenue sources and cost
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| reductions by the electric utility through the end of the
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| period for which transition costs are recovered pursuant
to | 23 |
| Section 16-108, referred to in this Article XVI as a | 24 |
| "mitigation factor":
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| (A) for nonresidential retail customers , except | 26 |
| public schools , an amount equal to the greater
of (i) | 27 |
| 0.5 cents per kilowatt-hour during the period October | 28 |
| 1, 1999
through December 31, 2004, 0.6 cents per | 29 |
| kilowatt-hour in calendar year 2005,
and 0.9 cents per | 30 |
| kilowatt-hour in calendar year 2006, multiplied in
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| each year by the usage identified in paragraph (1), or | 32 |
| (ii) an amount equal to
the following percentages of | 33 |
| the amount produced by applying the applicable
base | 34 |
| rates (adjusted as described in subparagraph (1)(B)) | 35 |
| or contract rate to
the usage identified in paragraph | 36 |
| (1): 8% for the period October 1, 1999
through December |
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| 31, 2002, 10% in calendar years 2003 and 2004, 11% in | 2 |
| calendar
year 2005 and 12% in calendar year 2006;
and
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| (B) for residential retail customers, an amount
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| equal to the following percentages of the amount | 5 |
| produced by applying the
base rates in effect on | 6 |
| October 1, 1996 (adjusted as
described in subparagraph | 7 |
| (1)(B)) to the usage
identified in paragraph (1): (i) | 8 |
| 6% from May 1, 2002 through December 31,
2002, (ii) 7% | 9 |
| in calendar years 2003 and 2004, (iii) 8% in calendar | 10 |
| year
2005, and (iv) 10% in calendar year 2006;
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| (C) for public schools, an amount equal to the | 12 |
| greater
of: (i) 0.5 cents per kilowatt-hour during the | 13 |
| period October 1, 1999
through December 31, 2004, 1.25 | 14 |
| cents per kilowatt-hour in calendar year 2005,
and 1.5 | 15 |
| cents per kilowatt-hour in calendar year 2006, | 16 |
| multiplied in
each year by the usage identified in | 17 |
| paragraph (1); or (ii) an amount equal to
the following | 18 |
| percentages of the amount produced by applying the | 19 |
| applicable
base rates (adjusted as described in | 20 |
| subparagraph (1)(B)) or contract rate to
the usage | 21 |
| identified in paragraph (1): 8% for the period October | 22 |
| 1, 1999
through December 31, 2002, 10% in calendar | 23 |
| years 2003 and 2004, 15% in calendar
year 2005 and 25% | 24 |
| in calendar year 2006;
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| (5) divided by the usage of such customers
identified | 26 |
| in paragraph (1),
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| provided that the transition charge shall never be less than
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| zero.
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| "Unbundled service" means a component or constituent part
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| of a tariffed service which the electric utility subsequently
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| offers separately to its customers.
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| (Source: P.A. 91-50, eff. 6-30-99; 92-537, eff. 6-6-02.)
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| (220 ILCS 5/Art. XX heading new) | 34 |
| ARTICLE XX. NATURAL GAS AGGREGATION FOR PUBLIC SCHOOLS |
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| (220 ILCS 5/20-5 new) | 2 |
| Sec. 20-5. Definitions. As used in this Section: | 3 |
| "Aggregate" means to combine the total natural gas | 4 |
| requirements of all public schools that are members of a public | 5 |
| school association for purchase from the delivery systems of | 6 |
| Illinois gas corporations and from interstate pipelines. | 7 |
| "Delivery system" means the natural gas distribution and | 8 |
| transmission lines that are owned and operated by any Illinois | 9 |
| gas corporation and the charges for the use of those lines, as | 10 |
| regulated by the Commission. | 11 |
| "Energy seller" means the entity that uses the delivery | 12 |
| system of a gas corporation for delivery of natural gas supply | 13 |
| from an interstate pipeline to the gas corporation's meter for | 14 |
| use by a public school facility. | 15 |
| "Interstate pipeline" means any natural gas pipeline that | 16 |
| delivers natural gas supply from outside the State of Illinois | 17 |
| to the delivery system of an Illinois gas corporation and that | 18 |
| is price-regulated by the Commission.
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| "Intrastate pipeline" means a natural gas pipeline that | 20 |
| delivers natural gas supply from inside this State to an | 21 |
| Illinois gas corporation's system and is price-regulated by the | 22 |
| Commission. | 23 |
| "Public school" means any elementary or secondary school | 24 |
| operated at public expense. | 25 |
| "Public school association" means a not-for-profit | 26 |
| association of public schools.
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| "Small volume" means natural gas supply requirements of | 28 |
| less than 250,000 therms annually.
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| (220 ILCS 5/20-10 new) | 30 |
| Sec. 20-10. Transportation schedules and tariffs. | 31 |
| (a) By June 1, 2006 and June 1 of each year thereafter, | 32 |
| each Illinois gas corporation shall file with the Commission a | 33 |
| set of transportation schedules or tariffs applicable to public | 34 |
| schools. The transportation schedules or tariffs filed under | 35 |
| this Section shall: |
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| (1) authorize a public school association to aggregate | 2 |
| the purchase of natural gas requirements by public schools; | 3 |
| (2) establish natural gas delivery charges that are | 4 |
| equal to Commission-approved gas corporation charges for | 5 |
| utility natural gas service, less the distributor's cost of | 6 |
| purchased natural gas supply and interstate pipeline | 7 |
| charges, plus aggregation administration and monthly meter | 8 |
| balancing charges for small volume meters, but not to | 9 |
| exceed $5 per meter per month for administration and 0.004 | 10 |
| cents per therm delivered, for balancing monthly | 11 |
| deliveries to actual usage; | 12 |
| (3) offer a public school association the option of | 13 |
| contracting with a gas corporation at monthly market prices | 14 |
| for interstate pipeline capacity currently being used by | 15 |
| the gas corporation to deliver public schools' aggregate | 16 |
| monthly requirements; | 17 |
| (4) require the gas corporation to provide to each | 18 |
| public school association, or its designated agent, at | 19 |
| least 5 business days before the first day of each month, | 20 |
| the following information, based on weather forecasts and | 21 |
| historical monthly usage: (i) daily usage projections for | 22 |
| scheduled deliveries to each public school facility, (ii) | 23 |
| aggregate daily usage projections by delivery point, and | 24 |
| (iii) daily usage projections on a day-ahead basis when | 25 |
| necessary to reflect significant changes in weather | 26 |
| forecasts; | 27 |
| (5) impose a penalty if the projected daily usage of | 28 |
| natural gas, as forecasted by the gas corporation, is not | 29 |
| delivered to the distributor's delivery system provided, | 30 |
| however, that the penalty does not exceed the penalty | 31 |
| approved by the Commission in the gas corporation's large | 32 |
| volume customer transportation tariffs. No other penalties | 33 |
| may be imposed under this Section.
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| No transportation schedule or tariff filed under this | 35 |
| Section shall require telemetry or special metering for small | 36 |
| volume school meters. |
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| (b) The Commission may suspend any transportation schedule | 2 |
| or tariff filed under this Section for up to 3 months in order | 3 |
| to examine the assumptions and estimates used and to review | 4 |
| compliance with the requirements of this Section.
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| (220 ILCS 5/20-15 new) | 6 |
| Sec. 20-15. Energy sellers; compliance with Commission | 7 |
| rules. In order to supply natural gas to public schools under | 8 |
| this Article, an energy seller must comply with all applicable | 9 |
| Commission rules. Any agreements entered into on or after the | 10 |
| effective date of this amendatory Act of the 94th General | 11 |
| Assembly between a public school and an energy seller that is | 12 |
| not in compliance with applicable Commission rules is null and | 13 |
| void. | 14 |
| (220 ILCS 5/20-20 new) | 15 |
| Sec. 20-20. Annual statement. Before June 1, 2007 and | 16 |
| before June 1 of each year thereafter, each gas corporation | 17 |
| shall file with the Commission an annual statement showing: (i) | 18 |
| its revenue attributable to the aggregation administrative | 19 |
| charge; (ii) its revenue attributable to the small volume meter | 20 |
| balancing charge; and (iii) the amount of any incremental costs | 21 |
| it incurred as a direct result of implementing aggregate | 22 |
| transportation for public schools and monthly balancing | 23 |
| service for small volume meters. The Commission shall determine | 24 |
| an appropriate future cost recovery method for any unrecovered | 25 |
| costs of the gas corporation in order to maintain future | 26 |
| earnings neutrality for the gas corporation. | 27 |
| (220 ILCS 5/20-25 new) | 28 |
| Sec. 20-25. Rules. The Commission may promulgate any rules | 29 |
| reasonable or necessary for the administration of this Article.
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| Section 99. Effective date. This Act takes effect upon | 31 |
| becoming law.
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