Full Text of HB2786 103rd General Assembly
HB2786 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB2786 Introduced 2/16/2023, by Rep. Ann M. Williams SYNOPSIS AS INTRODUCED: |
| 220 ILCS 5/1-102 | from Ch. 111 2/3, par. 1-102 | 220 ILCS 5/4-304 | from Ch. 111 2/3, par. 4-304 | 220 ILCS 5/4-605 | | 220 ILCS 5/13-102 | from Ch. 111 2/3, par. 13-102 | 220 ILCS 5/13-103 | from Ch. 111 2/3, par. 13-103 | 220 ILCS 5/13-900 | | 220 ILCS 5/16-101A | | 220 ILCS 5/16-111.2 | | 220 ILCS 5/16-128 | |
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Amends the Public Utilities Act. Changes references from "citizens" to "consumers" throughout the Act.
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| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Public Utilities Act is amended by changing | 5 | | Sections 1-102, 4-304, 4-605, 13-102, 13-103, 13-900, 16-101A, | 6 | | 16-111.2, and 16-128 as follows:
| 7 | | (220 ILCS 5/1-102) (from Ch. 111 2/3, par. 1-102)
| 8 | | Sec. 1-102. Findings and Intent. The General Assembly | 9 | | finds that the
health, welfare and prosperity of all Illinois | 10 | | consumers citizens require the
provision of adequate, | 11 | | efficient, reliable, environmentally safe and
least-cost | 12 | | public utility services at prices which accurately reflect the
| 13 | | long-term cost of such services and which are equitable to all | 14 | | consumers citizens . It
is therefore declared to be the policy | 15 | | of the State that public utilities
shall continue to be | 16 | | regulated effectively and comprehensively. It is further
| 17 | | declared that the goals and objectives of such regulation | 18 | | shall be to ensure
| 19 | | (a) Efficiency: the provision of reliable energy | 20 | | services at the least
possible cost to the consumers | 21 | | citizens of the State; in such manner that:
| 22 | | (i) physical, human and financial resources are | 23 | | allocated efficiently;
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| 1 | | (ii) all supply and demand options are considered | 2 | | and evaluated using
comparable terms and methods in | 3 | | order to determine how utilities shall meet
their | 4 | | customers' demands for public utility services at the | 5 | | least cost;
| 6 | | (iii) utilities are allowed a sufficient return on | 7 | | investment so as to
enable them to attract capital in | 8 | | financial markets at competitive rates;
| 9 | | (iv) tariff rates for the sale of various public | 10 | | utility services are
authorized such that they | 11 | | accurately reflect the cost of delivering those
| 12 | | services and allow utilities to recover the total | 13 | | costs prudently and
reasonably incurred;
| 14 | | (v) variation in costs by customer class and time | 15 | | of use is taken into
consideration in authorizing | 16 | | rates for each class.
| 17 | | (b) Environmental Quality: the protection of the | 18 | | environment from the
adverse external costs of public | 19 | | utility services so that
| 20 | | (i) environmental costs of proposed actions having | 21 | | a significant impact
on the environment and the | 22 | | environmental impact of the alternatives are
| 23 | | identified, documented and considered in the | 24 | | regulatory process;
| 25 | | (ii) the prudently and reasonably incurred costs | 26 | | of environmental
controls are recovered.
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| 1 | | (c) Reliability: the ability of utilities to provide | 2 | | consumers with
public utility services under varying | 3 | | demand conditions in such manner that
suppliers of public | 4 | | utility services are able to provide service at varying
| 5 | | levels of economic reliability giving appropriate | 6 | | consideration to the
costs likely to be incurred as a | 7 | | result of service interruptions, and to
the costs of | 8 | | increasing or maintaining current levels of reliability
| 9 | | consistent with commitments to consumers.
| 10 | | (d) Equity: the fair treatment of consumers and | 11 | | investors in order that
| 12 | | (i) the public health, safety and welfare shall be | 13 | | protected;
| 14 | | (ii) the application of rates is based on public | 15 | | understandability and
acceptance of the reasonableness | 16 | | of the rate structure and level;
| 17 | | (iii) the cost of supplying public utility | 18 | | services is allocated to
those who cause the costs to | 19 | | be incurred;
| 20 | | (iv) if factors other than cost of service are | 21 | | considered in regulatory
decisions, the rationale for | 22 | | these actions is set forth;
| 23 | | (v) regulation allows for orderly transition | 24 | | periods to accommodate
changes in public utility | 25 | | service markets;
| 26 | | (vi) regulation does not result in undue or |
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| 1 | | sustained adverse impact on
utility earnings;
| 2 | | (vii) the impacts of regulatory actions on all | 3 | | sectors of the State are
carefully weighed;
| 4 | | (viii) the rates for utility services are | 5 | | affordable and therefore
preserve the availability of | 6 | | such services to all consumers citizens .
| 7 | | It is further declared to be the policy of the State that | 8 | | this Act shall
not apply in relation to motor carriers and rail | 9 | | carriers as defined in the
Illinois Commercial Transportation | 10 | | Law, or to
the
Commission in the regulation of such carriers.
| 11 | | Nothing in this Act shall be construed to limit, restrict, | 12 | | or mitigate in
any way the power and authority of the State's | 13 | | Attorneys or the Attorney
General under the Consumer Fraud and | 14 | | Deceptive Business Practices Act.
| 15 | | (Source: P.A. 92-22, eff. 6-30-01.)
| 16 | | (220 ILCS 5/4-304) (from Ch. 111 2/3, par. 4-304)
| 17 | | Sec. 4-304.
Beginning in 1986, the Commission shall | 18 | | prepare an
annual report which shall be filed by January 31 of | 19 | | each year with the Joint
Committee on Legislative Support | 20 | | Services of the General Assembly and the Governor and which | 21 | | shall be publicly available. Such
report shall include:
| 22 | | (1) A general review of agency activities and changes, | 23 | | including:
| 24 | | (a) a review of significant decisions and other | 25 | | regulatory actions for
the preceding year, and pending |
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| 1 | | cases, and an analysis of the impact of
such decisions | 2 | | and actions, and potential impact of any significant | 3 | | pending
cases;
| 4 | | (b) for each significant decision, regulatory | 5 | | action and pending
case, a description of the | 6 | | positions advocated by major parties, including
| 7 | | Commission staff, and for each such decision rendered | 8 | | or action taken, the
position adopted by the | 9 | | Commission and reason therefor;
| 10 | | (c) a description of the Commission's budget, | 11 | | caseload, and staff
levels, including specifically:
| 12 | | (i) a breakdown by type of case of the cases | 13 | | resolved and filed during
the year and of pending | 14 | | cases;
| 15 | | (ii) a description of the allocation of the | 16 | | Commission's budget,
identifying amounts budgeted | 17 | | for each significant regulatory function or
| 18 | | activity and for each department, bureau, section, | 19 | | division or office of
the Commission and its | 20 | | employees;
| 21 | | (iii) a description of current employee | 22 | | levels, identifying any change
occurring during | 23 | | the year in the number of employees, personnel | 24 | | policies
and practices or compensation levels; and | 25 | | identifying the number and type
of employees | 26 | | assigned to each Commission regulatory function |
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| 1 | | and to each
department, bureau, section, division | 2 | | or office of the Commission;
| 3 | | (d) a description of any significant changes in | 4 | | Commission policies,
programs or practices with | 5 | | respect to agency organization and
administration, | 6 | | hearings and procedures or substantive regulatory
| 7 | | activity.
| 8 | | (2) A discussion and analysis of the state of each | 9 | | utility industry
regulated by the Commission and | 10 | | significant changes, trends and developments
therein, | 11 | | including the number and types of firms offering each | 12 | | utility
service, existing, new and prospective | 13 | | technologies, variations in the
quality, availability and | 14 | | price for utility services in different
geographic areas | 15 | | of the State, and any other industry factors or
| 16 | | circumstances which may affect the public interest or the | 17 | | regulation of such
industries.
| 18 | | (3) A specific discussion of the energy planning | 19 | | responsibilities and
activities of the Commission and | 20 | | energy utilities, including:
| 21 | | (a) the extent to which conservation, | 22 | | cogeneration, renewable energy
technologies and | 23 | | improvements in energy efficiency are being utilized | 24 | | by energy
consumers, the extent to which additional | 25 | | potential exists for the economical
utilization of | 26 | | such supplies, and a description of existing and |
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| 1 | | proposed
programs and policies designed to promote and | 2 | | encourage such utilization;
| 3 | | (b) a description of each energy plan filed with | 4 | | the Commission pursuant
to the provisions of this Act, | 5 | | and a copy, or detailed summary of the most
recent | 6 | | energy plans adopted by the Commission;
| 7 | | (c) a discussion of the powers by which the | 8 | | Commission is implementing
the planning | 9 | | responsibilities of Article VIII, including a | 10 | | description of
the staff and budget assigned to such | 11 | | function, the procedures by which
Commission staff | 12 | | reviews and analyzes energy plans submitted by the | 13 | | utilities,
the Department of Natural Resources, and | 14 | | any other person or
party; and
| 15 | | (d) a summary of the adoption of solar | 16 | | photovoltaic systems by residential and small business | 17 | | consumers in Illinois and a description of any and all | 18 | | barriers to residential and small business consumers' | 19 | | financing, installation, and valuation of energy | 20 | | produced by solar photovoltaic systems; electric | 21 | | utilities, alternative retail electric suppliers, and | 22 | | installers of distributed generation shall provide all | 23 | | information requested by the Commission or its staff | 24 | | necessary to complete the analysis required by this | 25 | | paragraph (d). | 26 | | (4) A discussion of the extent to which utility |
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| 1 | | services are available
to all Illinois consumers citizens | 2 | | including:
| 3 | | (a) the percentage and number of persons or | 4 | | households requiring each
such service who are not | 5 | | receiving such service, and the reasons therefor,
| 6 | | including specifically the number of such persons or | 7 | | households who are
unable to afford such service;
| 8 | | (b) a critical analysis of existing programs | 9 | | designed to promote and
preserve the availability and | 10 | | affordability of utility services; and
| 11 | | (c) an analysis of the financial impact on | 12 | | utilities and other
ratepayers of the inability of | 13 | | some customers or potential customers to
afford | 14 | | utility service, including the number of service | 15 | | disconnections and
reconnections, and cost thereof and | 16 | | the dollar amount of uncollectible
accounts recovered | 17 | | through rates.
| 18 | | (5) A detailed description of the means by which the | 19 | | Commission is
implementing its new statutory | 20 | | responsibilities under this Act, and the
status of such | 21 | | implementation, including specifically:
| 22 | | (a) Commission reorganization resulting from the | 23 | | addition of an
Executive Director and administrative | 24 | | law judge qualifications and review;
| 25 | | (b) Commission responsibilities for construction | 26 | | and rate supervision,
including construction cost |
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| 1 | | audits, management audits, excess capacity
| 2 | | adjustments, phase-ins of new plant and the means and | 3 | | capability for monitoring
and reevaluating existing or | 4 | | future construction projects;
| 5 | | (c) promulgation and application of rules | 6 | | concerning ex parte
communications, circulation of | 7 | | recommended orders and transcription of closed
| 8 | | meetings.
| 9 | | (6) A description of all appeals taken from Commission | 10 | | orders, findings
or decisions and the status and outcome | 11 | | of such appeals.
| 12 | | (7) A description of the status of all studies and | 13 | | investigations
required by this Act, including those | 14 | | ordered pursuant to Sections 9-244 and 13-301 and all
such | 15 | | subsequently ordered studies or investigations.
| 16 | | (8) A discussion of new or potential developments in | 17 | | federal
legislation, and federal agency and judicial | 18 | | decisions relevant to State
regulation of utility | 19 | | services.
| 20 | | (9) All recommendations for appropriate legislative | 21 | | action by the General
Assembly.
| 22 | | The Commission may include such other information as it | 23 | | deems to be
necessary or beneficial in describing or | 24 | | explaining its activities or
regulatory responsibilities. The | 25 | | report required by this Section shall be
adopted by a vote of | 26 | | the full Commission prior to filing.
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| 1 | | (Source: P.A. 100-840, eff. 8-13-18; 101-81, eff. 7-12-19.)
| 2 | | (220 ILCS 5/4-605) | 3 | | Sec. 4-605. Reliability mitigation plan findings. The | 4 | | General Assembly finds that reducing carbon dioxide and | 5 | | copollutant emissions in a manner that does not threaten | 6 | | electric reliability and resource adequacy is essential to the | 7 | | health and safety of all Illinois consumers citizens . | 8 | | Therefore, the Commission shall review reliability mitigation | 9 | | plans filed pursuant to Section 9.15 of the Environmental | 10 | | Protection Act to ensure adequate, reliable, affordable, | 11 | | efficient, and environmentally sustainable electric service is | 12 | | available to ratepayers by approving reliability mitigation | 13 | | plans that permit the Illinois Pollution Control Board to | 14 | | enforce emission reductions in a manner that preserves | 15 | | reliability and resource adequacy in wholesale and retail | 16 | | electricity markets.
| 17 | | (Source: P.A. 102-662, eff. 9-15-21.)
| 18 | | (220 ILCS 5/13-102) (from Ch. 111 2/3, par. 13-102)
| 19 | | (Section scheduled to be repealed on December 31, 2026)
| 20 | | Sec. 13-102. Findings. With respect to telecommunications | 21 | | services, as
herein defined, the General Assembly finds that:
| 22 | | (a) universally available and widely affordable | 23 | | telecommunications
services are essential to the health, | 24 | | welfare and prosperity of all Illinois
consumers citizens ;
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| 1 | | (b) federal regulatory and judicial rulings in the | 2 | | 1980s caused a
restructuring of the telecommunications | 3 | | industry and opened some
aspects of the industry to | 4 | | competitive entry, thereby necessitating
revision of State | 5 | | telecommunications regulatory policies and practices;
| 6 | | (c) revisions in telecommunications regulatory | 7 | | policies and practices in
Illinois beginning in the | 8 | | mid-1980s brought the benefits of competition to
consumers | 9 | | in many telecommunications markets, but not in local | 10 | | exchange
telecommunications service markets;
| 11 | | (d) the federal Telecommunications Act of 1996 | 12 | | established the goal of
opening all telecommunications | 13 | | service markets to competition and
accords to the states | 14 | | the responsibility to establish and enforce
policies | 15 | | necessary to attain that goal;
| 16 | | (e) it is in the immediate interest of the People of | 17 | | the State of Illinois
for the State to exercise its rights | 18 | | within the new framework of federal
telecommunications | 19 | | policy to ensure that the economic benefits of competition
| 20 | | in all telecommunications service markets are realized as
| 21 | | effectively as possible;
| 22 | | (f) the competitive offering of all telecommunications | 23 | | services
will increase innovation and efficiency in the | 24 | | provision of
telecommunications services and may lead to | 25 | | reduced prices for consumers,
increased investment in | 26 | | communications infrastructure, the creation of new
jobs, |
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| 1 | | and the attraction of new businesses to Illinois;
| 2 | | (g) protection of the public interest requires changes | 3 | | in the regulation of
telecommunications carriers and | 4 | | services to ensure, to the maximum feasible
extent, the | 5 | | reasonable and timely development of effective competition | 6 | | in all
telecommunications service markets;
| 7 | | (h) Illinois residents rely on today's modern wired | 8 | | and wireless Internet Protocol (IP) networks and services | 9 | | to improve their lives by connecting them to school and | 10 | | college degrees, work and job opportunities, family and | 11 | | friends, information, and entertainment, as well as | 12 | | emergency responders and public safety officials; Illinois | 13 | | businesses rely on these modern IP networks and services | 14 | | to compete in a global marketplace by expanding their | 15 | | customer base, managing inventory and operations more | 16 | | efficiently, and offering customers specialized and | 17 | | personalized products and services; without question, | 18 | | Illinois residents and our State's economy rely profoundly | 19 | | on the modern wired and wireless IP networks and services | 20 | | in our State; | 21 | | (i) the transition from 20th century traditional | 22 | | circuit switched and other legacy telephone services to | 23 | | modern 21st century next generation Internet Protocol (IP) | 24 | | services is taking place at an extraordinary pace as | 25 | | Illinois consumers are upgrading to home communications | 26 | | service using IP technology, including high speed |
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| 1 | | Internet, Voice over Internet Protocol, and wireless | 2 | | service; | 3 | | (j) this rapid transition to IP-based communications | 4 | | has dramatically transformed the way people communicate | 5 | | and has provided significant benefits to consumers in the | 6 | | form of innovative functionalities resulting from the | 7 | | seamless convergence of voice, video, and text, benefits | 8 | | realized by the General Assembly when it chose to | 9 | | transition its own telecommunications system to an all IP | 10 | | communications network in 2016; | 11 | | (k) the benefits of the transition to IP-based | 12 | | networks and services were also recognized by the General | 13 | | Assembly in 2015 through the enactment of legislation | 14 | | requiring that every 9-1-1 emergency system in Illinois | 15 | | provide Next Generation 9-1-1 service by July 1, 2020, and | 16 | | requiring that the Next Generation 9-1-1 network must be | 17 | | an IP-based platform; and | 18 | | (l) completing the transition to all IP-based networks | 19 | | and technologies is in the public interest because it will | 20 | | promote continued innovation, consumer benefits, increased | 21 | | efficiencies, and increased investment in IP-based | 22 | | networks and services. | 23 | | (Source: P.A. 100-20, eff. 7-1-17 .)
| 24 | | (220 ILCS 5/13-103) (from Ch. 111 2/3, par. 13-103)
| 25 | | (Section scheduled to be repealed on December 31, 2026)
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| 1 | | Sec. 13-103. Policy. Consistent with its findings, the | 2 | | General Assembly
declares that it is the policy of the State of | 3 | | Illinois that:
| 4 | | (a) telecommunications services should be
available to | 5 | | all Illinois
consumers citizens at just, reasonable, and | 6 | | affordable rates and that such services
should be provided | 7 | | as widely and economically as possible in sufficient
| 8 | | variety, quality, quantity and reliability to satisfy the | 9 | | public interest;
| 10 | | (b) consistent with the protection of consumers of
| 11 | | telecommunications services and the furtherance of other | 12 | | public interest
goals, competition in all | 13 | | telecommunications service markets should be
pursued as a
| 14 | | substitute for regulation in determining the variety, | 15 | | quality and price
of telecommunications services and that | 16 | | the economic burdens of regulation
should be reduced to | 17 | | the extent possible consistent with the furtherance of
| 18 | | market competition and protection of the
public interest;
| 19 | | (c) all necessary and appropriate modifications to | 20 | | State regulation of
telecommunications carriers and | 21 | | services should be implemented without
unnecessary | 22 | | disruption to the telecommunications
infrastructure
system | 23 | | or to consumers of
telecommunications services and that it | 24 | | is necessary and appropriate to
establish rules to | 25 | | encourage and ensure orderly
transitions in the | 26 | | development of markets for all
telecommunications |
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| 1 | | services;
| 2 | | (d) the consumers of telecommunications services and | 3 | | facilities provided
by persons or companies subject to | 4 | | regulation pursuant to this Act and Article
should be | 5 | | required to pay only reasonable and non-discriminatory | 6 | | rates or
charges and that in no case should rates or | 7 | | charges for non-competitive
telecommunications services | 8 | | include any portion of the cost of providing
competitive | 9 | | telecommunications services, as defined in Section 13-209, | 10 | | or
the cost of any nonregulated activities;
| 11 | | (e) the regulatory policies and procedures provided in | 12 | | this Article are
established in recognition of the | 13 | | changing nature of the telecommunications
industry and | 14 | | therefore should be subject to systematic legislative | 15 | | review to
ensure that the public benefits intended to | 16 | | result from such policies and
procedures are fully | 17 | | realized;
| 18 | | (f) development of and prudent investment in advanced
| 19 | | telecommunications services and networks that foster | 20 | | economic development
of the State
should be encouraged | 21 | | through the implementation and enforcement of policies
| 22 | | that promote effective and sustained competition in all
| 23 | | telecommunications service markets; and
| 24 | | (g) completion of the transition to modern IP-based | 25 | | networks should be encouraged through relief from the | 26 | | outdated regulations that require continued investment in |
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| 1 | | legacy circuit switched networks from which Illinois | 2 | | consumers have largely transitioned, while at the same | 3 | | time ensuring that consumers have access to available | 4 | | alternative services that provide quality voice service | 5 | | and access to emergency communications. | 6 | | (Source: P.A. 100-20, eff. 7-1-17 .)
| 7 | | (220 ILCS 5/13-900) | 8 | | (Section scheduled to be repealed on December 31, 2026) | 9 | | Sec. 13-900. Authority to serve as 9-1-1 system provider; | 10 | | rules. | 11 | | (a) The General Assembly finds that it is necessary to | 12 | | require the certification of 9-1-1 system providers to ensure | 13 | | the safety of the lives and property of Illinoisans and | 14 | | Illinois businesses, and to otherwise protect and promote the | 15 | | public safety, health, and welfare of the consumers citizens | 16 | | of this State and their property. | 17 | | (b) For purposes of this Section: | 18 | | "9-1-1 system" has the same meaning as that term is | 19 | | defined in Section 2.19 of the Emergency Telephone System | 20 | | Act. | 21 | | "9-1-1 system provider" means any person, corporation, | 22 | | limited liability company, partnership, sole | 23 | | proprietorship, or entity of any description whatever that | 24 | | acts as a system provider within the meaning of Section | 25 | | 2.18 of the Emergency Telephone System Act. |
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| 1 | | "Emergency Telephone System Board" has the same | 2 | | meaning as that term is defined in Sections 2.11 and 15.4 | 3 | | of the Emergency Telephone System Act. | 4 | | "Public safety agency personnel" means personnel | 5 | | employed by a public safety agency, as that term is | 6 | | defined in Section 2.02 of the Emergency Telephone System | 7 | | Act, whose responsibilities include responding to requests | 8 | | for emergency services. | 9 | | (c) Except as otherwise provided in this Section, | 10 | | beginning July 1, 2010, it is unlawful for any 9-1-1 system | 11 | | provider to offer or provide or seek to offer or provide to any | 12 | | emergency telephone system board or 9-1-1 system, or agent, | 13 | | representative, or designee thereof, any network and database | 14 | | service used or intended to be used by any emergency telephone | 15 | | system board or 9-1-1 system for the purpose of answering, | 16 | | transferring, or relaying requests for emergency services, or | 17 | | dispatching public safety agency personnel in response to | 18 | | requests for emergency services, unless the 9-1-1 system | 19 | | provider has applied for and received a Certificate of 9-1-1 | 20 | | System Provider Authority from the Commission. The Commission | 21 | | shall approve an application for a Certificate of 9-1-1 System | 22 | | Provider Authority upon a showing by the applicant, and a | 23 | | finding by the Commission, after notice and hearing, that the | 24 | | applicant possesses sufficient technical, financial, and | 25 | | managerial resources and abilities to provide network service | 26 | | and database services that it seeks authority to provide in |
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| 1 | | its application for service authority, in a safe, continuous, | 2 | | and uninterrupted manner. | 3 | | (d) No incumbent local exchange carrier that provides, as | 4 | | of the effective date of this amendatory Act of the 96th | 5 | | General Assembly, any 9-1-1 network and 9-1-1 database service | 6 | | used or intended to be used by any Emergency Telephone System | 7 | | Board or 9-1-1 system, shall be required to obtain a | 8 | | Certificate of 9-1-1 System Provider Authority under this | 9 | | Section. No entity that possesses, as of the effective date of | 10 | | this amendatory Act of the 96th General Assembly, a | 11 | | Certificate of Service Authority and provides 9-1-1 network | 12 | | and 9-1-1 database services to any incumbent local exchange | 13 | | carrier as of the effective date of this amendatory Act of the | 14 | | 96th General Assembly shall be required to obtain a | 15 | | Certificate of 9-1-1 System Provider Authority under this | 16 | | Section. | 17 | | (e) Any and all enforcement authority granted to the | 18 | | Commission under this Section shall apply exclusively to 9-1-1 | 19 | | system providers granted a Certificate of Service Authority | 20 | | under this Section and shall not apply to incumbent local | 21 | | exchange carriers that are providing 9-1-1 service as of the | 22 | | effective date of this amendatory Act of the 96th General | 23 | | Assembly.
| 24 | | (Source: P.A. 100-20, eff. 7-1-17 .)
| 25 | | (220 ILCS 5/16-101A)
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| 1 | | Sec. 16-101A. Legislative findings.
| 2 | | (a) The consumers citizens and businesses of the State of | 3 | | Illinois
have been well-served by a comprehensive electrical | 4 | | utility
system which has provided safe, reliable, and | 5 | | affordable
service. The electrical utility system in the State | 6 | | of
Illinois has historically been subject to State and federal
| 7 | | regulation, aimed at assuring the consumers citizens and | 8 | | businesses of
the State of safe, reliable, and affordable | 9 | | service, while at
the same time assuring the utility system of | 10 | | a return on its
investment.
| 11 | | (b) Competitive forces are affecting the market for
| 12 | | electricity as a result of recent federal regulatory and
| 13 | | statutory changes and the activities of other states.
| 14 | | Competition in the electric services market may create
| 15 | | opportunities for new products and services for customers and
| 16 | | lower costs for users of electricity. Long-standing regulatory
| 17 | | relationships need to be altered to accommodate the
| 18 | | competition that could fundamentally alter the structure of
| 19 | | the electric services market.
| 20 | | (c) With the advent of increasing competition in this
| 21 | | industry, the State has a continued interest in assuring that
| 22 | | the safety, reliability, and affordability of electrical power
| 23 | | is not sacrificed to competitive pressures, and to that end,
| 24 | | intends to implement safeguards to assure that the industry
| 25 | | continues to operate the electrical system in a manner that
| 26 | | will serve the public's interest. Under the existing
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| 1 | | regulatory framework, the industry has been encouraged to
| 2 | | undertake certain investments in its physical plant and
| 3 | | personnel to enhance its efficient operation, the cost of
| 4 | | which it has been permitted to pass on to consumers. The
State | 5 | | has an interest in providing the existing utilities a
| 6 | | reasonable opportunity to obtain a return on certain
| 7 | | investments on which they depended in undertaking those
| 8 | | commitments in the first instance while, at the same time, not
| 9 | | permitting new entrants into the industry to take unreasonable
| 10 | | advantage of the investments made by the formerly regulated
| 11 | | industry.
| 12 | | (d) A competitive wholesale and retail market must
benefit | 13 | | all Illinois consumers citizens . The Illinois Commerce
| 14 | | Commission should act to promote the development of an
| 15 | | effectively competitive electricity market that operates
| 16 | | efficiently and is equitable to all consumers. Consumer
| 17 | | protections must be in place to ensure that all customers
| 18 | | continue to receive safe, reliable, affordable, and
| 19 | | environmentally safe electric service.
| 20 | | (e) All consumers must benefit in an equitable and timely
| 21 | | fashion from the lower costs for electricity that result from
| 22 | | retail and wholesale competition and receive sufficient
| 23 | | information to make informed choices among suppliers and
| 24 | | services. The use of renewable resources and energy efficiency
| 25 | | resources should be encouraged in competitive markets.
| 26 | | (f) The efficiency of electric markets depends both upon |
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| 1 | | the competitiveness of supply and upon the | 2 | | price-responsiveness of the demand for service. Therefore, to | 3 | | ensure the lowest total cost of service and to enhance the | 4 | | reliability of service, all classes of the electricity | 5 | | customers of electric utilities should have access to and be | 6 | | able to voluntarily use real-time pricing and other | 7 | | price-response and demand-response mechanisms.
| 8 | | (g) Including cost-effective renewable resources and | 9 | | demand-response resources in a diverse electricity supply | 10 | | portfolio will reduce long-term direct and indirect costs to | 11 | | consumers by decreasing environmental impacts and by avoiding | 12 | | or delaying the need for new generation, transmission, and | 13 | | distribution infrastructure. It serves the public interest to | 14 | | allow electric utilities to recover costs for reasonably and | 15 | | prudently incurred expenses for electricity generated by | 16 | | renewable resources and demand-response resources.
| 17 | | (h) Including electricity generated by clean coal | 18 | | facilities, as defined under Section 1-10 of the Illinois | 19 | | Power Agency Act, in a diverse electricity procurement | 20 | | portfolio will reduce the need to purchase, directly or | 21 | | indirectly, carbon dioxide emission credits and will decrease | 22 | | environmental impacts. It serves the public interest to allow | 23 | | electric utilities to recover costs for reasonably and | 24 | | prudently incurred expenses for sourcing electricity generated | 25 | | by clean coal facilities. | 26 | | (Source: P.A. 94-977, eff. 6-30-06; 95-481, eff. 8-28-07; |
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| 1 | | 95-1027, eff. 6-1-09 .)
| 2 | | (220 ILCS 5/16-111.2)
| 3 | | Sec. 16-111.2.
Provisions related to proposed
utility | 4 | | transactions.
| 5 | | (a) The General Assembly finds:
| 6 | | (1) A transaction as described in paragraph (3) of | 7 | | this subsection (a)
will contribute to
improved | 8 | | reliability of the electric supply system in Illinois | 9 | | which
is one of the key purposes of the Illinois Electric
| 10 | | Service Customer Choice and Rate Relief Law of 1997.
| 11 | | (2) A transaction as described in paragraph (3) of | 12 | | this subsection (a)
is likely to promote additional
| 13 | | investment in the existing generating assets and in
the | 14 | | development of additional generation capacity in Illinois, | 15 | | and
such change in ownership is in the public
interest, | 16 | | consistent with the intent of the Illinois
Electric | 17 | | Service Customer Choice and Rate Relief Law of
1997 and | 18 | | beneficial for the consumers citizens of this State.
| 19 | | (3) As of the date on which this amendatory Act of 1999 | 20 | | becomes
law, an electric utility providing service to more | 21 | | than
1,000,000 customers in this State has proposed to | 22 | | sell
or transfer to a single buyer 5 or more generating
| 23 | | plants with a total net dependable capacity of 5000
| 24 | | megawatts or more pursuant to subsection (g) of Section
| 25 | | 16-111.
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| 1 | | (4) Such electric utility anticipates receiving a
sale | 2 | | price or consideration as a result of such
transaction | 3 | | exceeding 200% of the book value of
these plants.
| 4 | | (5) Such electric utility has presented to the
| 5 | | Governor and the leaders of the General Assembly a
written | 6 | | commitment in which such electric utility
agrees to expend | 7 | | $2,000,000,000 outside the corporate
limits of any | 8 | | municipality with 1,000,000 or more
inhabitants within | 9 | | such electric utility's service
area, over a 6-year period | 10 | | beginning with this
calendar year on projects, programs | 11 | | and improvements
within its service area relating to | 12 | | transmission and
distribution including, without | 13 | | limitation,
infrastructure expansion, repair and | 14 | | replacement,
capital investments, operations and | 15 | | maintenance, and
vegetation management.
| 16 | | (6) Such electric utility has committed that,
if the | 17 | | sale or transfer contemplated by paragraph (3)
of this | 18 | | subsection is consummated on or before December
31, 1999, | 19 | | the electric utility shall make
contributions totaling | 20 | | $250,000,000 to entities within
this State for, among | 21 | | other purposes, environmental and
clean coal initiatives | 22 | | pursuant to Section 16-111.1, which commitment includes
a
| 23 | | contribution of $25,000,000 to the Board of Trustees of | 24 | | Southern Illinois
University for the purpose of funding | 25 | | programs or projects related to clean
coal.
| 26 | | (b) That, in light of the findings in paragraphs (1)
and |
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| 1 | | (2) of subsection (a) and, in this instance, the
circumstances | 2 | | described in paragraphs (3) through (6) of
subsection (a) and | 3 | | otherwise, the General Assembly hereby
finds that allowing the | 4 | | generating facilities being acquired
to be eligible facilities | 5 | | under the provisions of the
National Energy Policy Act of 1992 | 6 | | that apply to exempt
wholesale generators (A) will benefit | 7 | | consumers; (B) is in
the public interest; and (C) does not | 8 | | violate the law of
this State.
| 9 | | (c) Nothing in this Section shall have any effect on the | 10 | | authority of the
Commission under subsection (g) of Section | 11 | | 16-111 of this Act.
| 12 | | (Source: P.A. 91-50, eff. 6-30-99.)
| 13 | | (220 ILCS 5/16-128)
| 14 | | Sec. 16-128. Provisions related to utility employees. | 15 | | (a) The General Assembly finds:
| 16 | | (1) The reliability and safety of the electric system | 17 | | has depended and depends on a
workforce of skilled and | 18 | | dedicated employees, equipped with technical training
and | 19 | | experience.
| 20 | | (2) The integrity and reliability of the system also | 21 | | requires the
industry's commitment to invest in regular | 22 | | inspection and maintenance, to
assure that it can | 23 | | withstand the demands of heavy service requirements and
| 24 | | emergency situations.
| 25 | | (3) It is in the State's interest to protect the |
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| 1 | | interests of utility
employees who have and continue to | 2 | | dedicate themselves to assuring reliable service to the
| 3 | | consumers citizens of this State, and who might otherwise | 4 | | be economically displaced in a
restructured industry.
| 5 | | The General Assembly further finds that it is
necessary to | 6 | | assure that employees of electric utilities and employees of | 7 | | contractors or subcontractors performing work on behalf of an | 8 | | electric utility operating in the
deregulated industry have | 9 | | the requisite skills, knowledge, training, experience, and
| 10 | | competence to provide reliable and safe electrical service | 11 | | under this Act.
| 12 | | The General Assembly also finds that it is necessary to | 13 | | assure that employees of alternative retail electric suppliers | 14 | | and employees of contractors or subcontractors performing work | 15 | | on behalf of an alternative retail electric supplier operating | 16 | | in the deregulated industry have the requisite skills, | 17 | | knowledge, training, experience, and competence to provide | 18 | | reliable and safe electrical service under this Act. | 19 | | To ensure that these findings and prerequisites for | 20 | | reliable and safe electrical service continue to prevail, each | 21 | | alternative retail electric supplier, electric utility, and | 22 | | contractors and subcontractors performing work on behalf of an | 23 | | electric utility or alternative retail electric supplier must | 24 | | demonstrate the competence of their respective employees to | 25 | | work on the distribution system. | 26 | | The knowledge, skill, training, experience, and competence |
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| 1 | | levels to be
demonstrated shall be consistent with those | 2 | | required
of or by the electric utilities in this State as of | 3 | | January 1, 2007, with respect to
their employees and employees | 4 | | of contractors or subcontractors performing work on their | 5 | | behalf. Nothing in this Section shall prohibit an electric | 6 | | utility from establishing knowledge, skill, training, | 7 | | experience, and competence levels greater than those required | 8 | | as of January 1, 2007.
| 9 | | An adequate demonstration of requisite knowledge, skill, | 10 | | training, experience, and
competence shall include, at a | 11 | | minimum, completion or current participation and ultimate | 12 | | completion by the
employee of an accredited or otherwise | 13 | | recognized
apprenticeship program for the particular craft, | 14 | | trade or
skill, or specified and several years of employment | 15 | | performing a particular work function that is utilized by an | 16 | | electric utility.
| 17 | | Notwithstanding any law, tariff, Commission rule, order, | 18 | | or decision to the contrary, the Commission shall have an | 19 | | affirmative statutory obligation to ensure that an electric | 20 | | utility is employing employees, contractors, and | 21 | | subcontractors with employees who meet the requirements of | 22 | | subsection (a) of this Section when installing, constructing, | 23 | | operating, and maintaining generation, transmission, or | 24 | | distribution facilities and equipment within this State | 25 | | pursuant to any provision in this Act or any Commission order, | 26 | | rule, or decision. |
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| 1 | | For purposes of this Section, "distribution facilities and | 2 | | equipment" means any and all of the facilities and equipment, | 3 | | including, but not limited to, substations, distribution | 4 | | feeder circuits, switches, meters, protective equipment, | 5 | | primary circuits, distribution transformers, line extensions | 6 | | and service extensions both above or below ground, conduit, | 7 | | risers, elbows, transformer pads, junction boxes, manholes, | 8 | | pedestals, conductors, and all associated fittings that | 9 | | connect the transmission or distribution system to either the | 10 | | weatherhead on the retail customer's building or other | 11 | | structure for above ground service or to the terminals on the | 12 | | meter base of the retail customer's building or other | 13 | | structure for below ground service. | 14 | | To implement this requirement for alternative retail | 15 | | electric suppliers, the Commission, in
determining that an | 16 | | applicant meets the standards for
certification as an | 17 | | alternative retail electric supplier,
shall require the | 18 | | applicant to demonstrate (i) that the
applicant is licensed to | 19 | | do business, and bonded, in the State
of Illinois; and (ii) | 20 | | that the employees of the applicant that
will be installing, | 21 | | operating, and maintaining generation,
transmission, or | 22 | | distribution facilities within this State, or
any entity with | 23 | | which the applicant has contracted to perform
those functions | 24 | | within this State, have the requisite knowledge, skills, | 25 | | training, experience, and
competence to perform those | 26 | | functions in a safe and
responsible manner in order to provide |
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| 1 | | safe and reliable
service, in accordance with the criteria | 2 | | stated above.
| 3 | | (b) The General Assembly finds, based on experience in
| 4 | | other industries that have undergone similar transitions, that
| 5 | | the introduction of competition into the State's electric
| 6 | | utility industry may result in workforce reductions by
| 7 | | electric utilities which may adversely affect persons who have
| 8 | | been employed by this State's electric utilities in functions
| 9 | | important to the public convenience and welfare. The General
| 10 | | Assembly further finds that the impacts on employees and their
| 11 | | communities of any necessary reductions in the utility
| 12 | | workforce directly caused by this restructuring of the
| 13 | | electric industry shall be mitigated to the extent
practicable | 14 | | through such means as offers of voluntary
severance, | 15 | | retraining, early retirement, outplacement and
related | 16 | | benefits. Therefore, before any such reduction in the
| 17 | | workforce during the transition period, an electric utility
| 18 | | shall present to its employees or their representatives a
| 19 | | workforce reduction plan outlining the means by which the
| 20 | | electric utility intends to mitigate the impact of such
| 21 | | workforce reduction on its employees.
| 22 | | (c) In the event of a sale, purchase, or any other transfer
| 23 | | of ownership during the mandatory transition period of one or
| 24 | | more Illinois divisions or business units, and/or generating
| 25 | | stations or generating units, of an electric utility, the
| 26 | | electric utility's contract and/or agreements with the
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| 1 | | acquiring entity or persons shall require that the entity or
| 2 | | persons hire a sufficient number of non-supervisory employees
| 3 | | to operate and maintain the station, division or unit by
| 4 | | initially making offers of employment to the non-supervisory
| 5 | | workforce of the electric utility's division, business unit,
| 6 | | generating station and/or generating unit at no less than the
| 7 | | wage rates, and substantially equivalent fringe benefits and
| 8 | | terms and conditions of employment that are in effect at the
| 9 | | time of transfer of ownership of said division, business unit,
| 10 | | generating station, and/or generating units; and said wage
| 11 | | rates and substantially equivalent fringe benefits and terms
| 12 | | and conditions of employment shall continue for at least 30
| 13 | | months from the time of said transfer of ownership unless the
| 14 | | parties mutually agree to different terms and conditions of
| 15 | | employment within that 30-month period. The utility shall
| 16 | | offer a transition plan to those employees who are not offered
| 17 | | jobs by the acquiring entity because that entity has a need
for | 18 | | fewer workers. If there is litigation concerning the
sale, or | 19 | | other transfer of ownership of the electric utility's
| 20 | | divisions, business units, generating station, or
generating | 21 | | units, the 30-month period will begin on the date
the | 22 | | acquiring entity or persons take control or management
of the | 23 | | divisions, business units, generating station or
generating | 24 | | units of the electric utility.
| 25 | | (d) If a utility transfers ownership during the mandatory
| 26 | | transition period of one or more Illinois divisions, business
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| 1 | | units, generating stations or generating units of an
electric | 2 | | utility to a majority-owned subsidiary, that
subsidiary shall | 3 | | continue to employ the utility's employees
who were employed | 4 | | by the utility at such division, business
unit or generating | 5 | | station at the time of the transfer under
the same terms and | 6 | | conditions of employment as those employees
enjoyed at the | 7 | | time of the transfer. If ownership of the
subsidiary is | 8 | | subsequently sold or transferred to a third
party during the | 9 | | transition period, the transition provisions
outlined in | 10 | | subsection (c) shall apply.
| 11 | | (e) The plant transfer provisions set forth above shall | 12 | | not
apply to any generating station which was the subject of a
| 13 | | sales agreement entered into before January 1, 1997.
| 14 | | (Source: P.A. 97-616, eff. 10-26-11; 97-646, eff. 12-30-11.)
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