Full Text of SB3395 101st General Assembly
SB3395 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB3395 Introduced 2/14/2020, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED: |
| | Amends the Public Utilities Act. Makes a technical change in a Section concerning recovery of costs associated with the
provision of delivery services.
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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 | | Section 16-108 as follows:
| 6 | | (220 ILCS 5/16-108)
| 7 | | Sec. 16-108. Recovery of costs associated with the
| 8 | | provision of delivery and other services. | 9 | | (a) An electric utility shall file a delivery services
| 10 | | tariff with the
the Commission at least 210 days prior to the | 11 | | date
that it is required to begin offering such services | 12 | | pursuant
to this Act. An electric utility shall provide the | 13 | | components
of delivery services that are subject to the | 14 | | jurisdiction of
the Federal Energy Regulatory Commission at the | 15 | | same prices,
terms and conditions set forth in its applicable | 16 | | tariff as
approved or allowed into effect by that Commission. | 17 | | The
Commission shall otherwise have the authority pursuant to | 18 | | Article IX to review,
approve, and modify the prices, terms and | 19 | | conditions of those
components of delivery services not subject | 20 | | to the
jurisdiction of the Federal Energy Regulatory | 21 | | Commission,
including the authority to determine the extent to | 22 | | which such
delivery services should be offered on an unbundled | 23 | | basis. In making any such
determination the Commission shall |
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| 1 | | consider, at a minimum, the effect of
additional unbundling on | 2 | | (i) the objective of just and reasonable rates, (ii)
electric | 3 | | utility employees, and (iii) the development of competitive | 4 | | markets
for electric energy services in Illinois. | 5 | | (b) The Commission shall enter an order approving, or
| 6 | | approving as modified, the delivery services tariff no later
| 7 | | than 30 days prior to the date on which the electric utility
| 8 | | must commence offering such services. The Commission may
| 9 | | subsequently modify such tariff pursuant to this Act.
| 10 | | (c) The electric utility's
tariffs shall define the classes | 11 | | of its customers for purposes
of delivery services charges. | 12 | | Delivery services shall be priced and made
available to all | 13 | | retail customers electing delivery services in each such class
| 14 | | on a nondiscriminatory basis regardless of whether the retail | 15 | | customer chooses
the electric utility, an affiliate of the | 16 | | electric utility, or another entity
as its supplier of electric | 17 | | power and energy. Charges for delivery services
shall be cost | 18 | | based,
and shall allow the electric utility to recover the | 19 | | costs of
providing delivery services through its charges to its
| 20 | | delivery service customers that use the facilities and
services | 21 | | associated with such costs.
Such costs shall include the
costs | 22 | | of owning, operating and maintaining transmission and
| 23 | | distribution facilities. The Commission shall also be
| 24 | | authorized to consider whether, and if so to what extent, the
| 25 | | following costs are appropriately included in the electric
| 26 | | utility's delivery services rates: (i) the costs of that
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| 1 | | portion of generation facilities used for the production and
| 2 | | absorption of reactive power in order that retail customers
| 3 | | located in the electric utility's service area can receive
| 4 | | electric power and energy from suppliers other than the
| 5 | | electric utility, and (ii) the costs associated with the use
| 6 | | and redispatch of generation facilities to mitigate
| 7 | | constraints on the transmission or distribution system in
order | 8 | | that retail customers located in the electric utility's
service | 9 | | area can receive electric power and energy from
suppliers other | 10 | | than the electric utility. Nothing in this
subsection shall be | 11 | | construed as directing the Commission to
allocate any of the | 12 | | costs described in (i) or (ii) that are
found to be | 13 | | appropriately included in the electric utility's
delivery | 14 | | services rates to any particular customer group or
geographic | 15 | | area in setting delivery services rates.
| 16 | | (d) The Commission shall establish charges, terms and
| 17 | | conditions for delivery services that are just and reasonable
| 18 | | and shall take into account customer impacts when establishing
| 19 | | such charges. In establishing charges, terms and conditions
for | 20 | | delivery services, the Commission shall take into account
| 21 | | voltage level differences. A retail customer shall have the
| 22 | | option to request to purchase electric service at any delivery
| 23 | | service voltage reasonably and technically feasible from the
| 24 | | electric facilities serving that customer's premises provided
| 25 | | that there are no significant adverse impacts upon system
| 26 | | reliability or system efficiency. A retail customer shall
also |
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| 1 | | have the option to request to purchase electric service
at any | 2 | | point of delivery that is reasonably and technically
feasible | 3 | | provided that there are no significant adverse
impacts on | 4 | | system reliability or efficiency. Such requests
shall not be | 5 | | unreasonably denied.
| 6 | | (e) Electric utilities shall recover the costs of
| 7 | | installing, operating or maintaining facilities for the
| 8 | | particular benefit of one or more delivery services customers,
| 9 | | including without limitation any costs incurred in complying
| 10 | | with a customer's request to be served at a different voltage
| 11 | | level, directly from the retail customer or customers for
whose | 12 | | benefit the costs were incurred, to the extent such
costs are | 13 | | not recovered through the charges referred to in
subsections | 14 | | (c) and (d) of this Section.
| 15 | | (f) An electric utility shall be entitled but not
required | 16 | | to implement transition charges in conjunction with
the | 17 | | offering of delivery services pursuant to Section 16-104.
If an | 18 | | electric utility implements transition charges, it shall | 19 | | implement such
charges for all delivery services customers and | 20 | | for all customers described in
subsection (h), but shall not | 21 | | implement transition charges for power and
energy that a retail | 22 | | customer takes from cogeneration or self-generation
facilities | 23 | | located on that retail customer's premises, if such facilities | 24 | | meet
the following criteria:
| 25 | | (i) the cogeneration or self-generation facilities | 26 | | serve a single retail
customer and are located on that |
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| 1 | | retail customer's premises (for purposes of
this | 2 | | subparagraph and subparagraph (ii), an industrial or | 3 | | manufacturing retail
customer and a third party contractor | 4 | | that is served by such industrial or
manufacturing customer | 5 | | through such retail customer's own electrical
distribution | 6 | | facilities under the circumstances described in subsection | 7 | | (vi) of
the definition of "alternative retail electric | 8 | | supplier" set forth in Section
16-102, shall be considered | 9 | | a single retail customer);
| 10 | | (ii) the cogeneration or self-generation facilities | 11 | | either (A) are sized
pursuant to generally accepted | 12 | | engineering standards for the retail customer's
electrical | 13 | | load at that premises (taking into account standby or other
| 14 | | reliability considerations related to that retail | 15 | | customer's operations at that
site) or (B) if the facility | 16 | | is a cogeneration facility located on the retail
customer's | 17 | | premises, the retail customer is the thermal host for that | 18 | | facility
and the facility has been designed to meet that | 19 | | retail customer's thermal
energy requirements resulting in | 20 | | electrical output beyond that retail
customer's electrical | 21 | | demand at that premises, comply with the operating and
| 22 | | efficiency standards applicable to "qualifying facilities" | 23 | | specified in title
18 Code of Federal Regulations Section | 24 | | 292.205 as in effect on the effective
date of this | 25 | | amendatory Act of 1999;
| 26 | | (iii) the retail customer on whose premises the |
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| 1 | | facilities are located
either has an exclusive right to | 2 | | receive, and corresponding obligation to pay
for, all of | 3 | | the electrical capacity of the facility, or in the case of | 4 | | a
cogeneration facility that has been designed to meet the | 5 | | retail customer's
thermal energy requirements at that | 6 | | premises, an identified amount of the
electrical capacity | 7 | | of the facility, over a minimum 5-year period; and
| 8 | | (iv) if the cogeneration facility is sized for the
| 9 | | retail customer's thermal load at that premises but exceeds | 10 | | the electrical
load, any sales of excess power or energy | 11 | | are made only at wholesale, are
subject to the jurisdiction | 12 | | of the Federal Energy Regulatory Commission, and
are not | 13 | | for the purpose of circumventing the provisions of this | 14 | | subsection (f).
| 15 | | If a generation facility located at a retail customer's | 16 | | premises does not meet
the above criteria, an electric utility | 17 | | implementing
transition charges shall implement a transition | 18 | | charge until December 31, 2006
for any power and energy taken | 19 | | by such retail customer from such facility as if
such power and | 20 | | energy had been delivered by the electric utility. Provided,
| 21 | | however, that an industrial retail customer that is taking | 22 | | power from a
generation facility that does not meet the above | 23 | | criteria but that is located
on such customer's premises will | 24 | | not be subject to a transition charge for the
power and energy | 25 | | taken by such retail customer from such generation facility if
| 26 | | the facility does not serve any other retail customer and |
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| 1 | | either was installed
on behalf of the customer and for its own | 2 | | use prior to January 1, 1997, or is
both predominantly fueled | 3 | | by byproducts of such customer's manufacturing
process at such | 4 | | premises and sells or offers an average of 300 megawatts or
| 5 | | more of electricity produced from such generation facility into | 6 | | the wholesale
market.
Such charges
shall be calculated as | 7 | | provided in Section
16-102, and shall be collected
on each | 8 | | kilowatt-hour delivered under a
delivery services tariff to a | 9 | | retail customer from the date
the customer first takes delivery | 10 | | services until December 31,
2006 except as provided in | 11 | | subsection (h) of this Section.
Provided, however, that an | 12 | | electric utility, other than an electric utility
providing | 13 | | service to at least 1,000,000 customers in this State on | 14 | | January 1,
1999,
shall be entitled to petition for
entry of an | 15 | | order by the Commission authorizing the electric utility to
| 16 | | implement transition charges for an additional period ending no | 17 | | later than
December 31, 2008. The electric utility shall file | 18 | | its petition with
supporting evidence no earlier than 16 | 19 | | months, and no later than 12 months,
prior to December 31, | 20 | | 2006. The Commission shall hold a hearing on the
electric | 21 | | utility's petition and shall enter its order no later than 8 | 22 | | months
after the petition is filed. The Commission shall | 23 | | determine whether and to
what extent the electric utility shall | 24 | | be authorized to implement transition
charges for an additional | 25 | | period. The Commission may authorize the electric
utility to | 26 | | implement transition charges for some or all of the additional
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| 1 | | period, and shall determine the mitigation factors to be used | 2 | | in implementing
such transition charges; provided, that the | 3 | | Commission shall not authorize
mitigation factors less than | 4 | | 110% of those in effect during the 12 months ended
December 31, | 5 | | 2006. In making its determination, the Commission shall | 6 | | consider
the following factors: the necessity to implement | 7 | | transition charges for an
additional period in order to | 8 | | maintain the financial integrity of the electric
utility; the | 9 | | prudence of the electric utility's actions in reducing its | 10 | | costs
since the effective date of this amendatory Act of 1997; | 11 | | the ability of the
electric utility to provide safe, adequate | 12 | | and reliable service to retail
customers in its service area; | 13 | | and the impact on competition of allowing the
electric utility | 14 | | to implement transition charges for the additional period.
| 15 | | (g) The electric utility shall file tariffs that
establish | 16 | | the transition charges to be paid by each class of
customers to | 17 | | the electric utility in conjunction with the
provision of | 18 | | delivery services. The electric utility's tariffs
shall define | 19 | | the classes of its customers for purposes of
calculating | 20 | | transition charges. The electric utility's tariffs
shall | 21 | | provide for the calculation of transition charges on a
| 22 | | customer-specific basis for any retail customer whose average
| 23 | | monthly maximum electrical demand on the electric utility's
| 24 | | system during the 6 months with the customer's highest monthly
| 25 | | maximum electrical demands equals or exceeds 3.0 megawatts for
| 26 | | electric utilities having more than 1,000,000 customers, and
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| 1 | | for other electric utilities for any customer that has an
| 2 | | average monthly maximum electrical demand on the electric
| 3 | | utility's system of one megawatt or more, and (A) for which
| 4 | | there exists data on the customer's usage during the 3 years
| 5 | | preceding the date that the customer became eligible to take
| 6 | | delivery services, or (B) for which there does not exist data
| 7 | | on the customer's usage during the 3 years preceding the date
| 8 | | that the customer became eligible to take delivery services,
if | 9 | | in the electric utility's reasonable judgment there exists
| 10 | | comparable usage information or a sufficient basis to develop
| 11 | | such information, and further provided that the electric
| 12 | | utility can require customers for which an individual
| 13 | | calculation is made to sign contracts that set forth the
| 14 | | transition charges to be paid by the customer to the electric
| 15 | | utility pursuant to the tariff.
| 16 | | (h) An electric utility shall also be entitled to file
| 17 | | tariffs that allow it to collect transition charges from
retail | 18 | | customers in the electric utility's service area that
do not | 19 | | take delivery services but that take electric power or
energy | 20 | | from an alternative retail electric supplier or from an
| 21 | | electric utility other than the electric utility in whose
| 22 | | service area the customer is located. Such charges shall be
| 23 | | calculated, in accordance with the definition of transition
| 24 | | charges in Section 16-102, for the period of time that the
| 25 | | customer would be obligated to pay transition charges if it
| 26 | | were taking delivery services, except that no deduction for
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| 1 | | delivery services revenues shall be made in such calculation,
| 2 | | and usage data from the customer's class shall be used where
| 3 | | historical usage data is not available for the individual
| 4 | | customer. The customer shall be obligated to pay such charges
| 5 | | on a lump sum basis on or before the date on which the
customer | 6 | | commences to take service from the alternative retail
electric | 7 | | supplier or other electric utility, provided, that
the electric | 8 | | utility in whose service area the customer is
located shall | 9 | | offer the customer the option of signing a
contract pursuant to | 10 | | which the customer pays such charges
ratably over the period in | 11 | | which the charges would otherwise
have applied.
| 12 | | (i) An electric utility shall be entitled to add to the
| 13 | | bills of delivery services customers charges pursuant to
| 14 | | Sections 9-221, 9-222 (except as provided in Section 9-222.1), | 15 | | and Section
16-114 of this Act, Section 5-5 of the Electricity | 16 | | Infrastructure Maintenance
Fee Law, Section 6-5 of the | 17 | | Renewable Energy, Energy Efficiency, and Coal
Resources | 18 | | Development Law of 1997, and Section 13 of the Energy | 19 | | Assistance Act.
| 20 | | (j) If a retail customer that obtains electric power and
| 21 | | energy from cogeneration or self-generation facilities
| 22 | | installed for its own use on or before January 1, 1997,
| 23 | | subsequently takes service from an alternative retail electric
| 24 | | supplier or an electric utility other than the electric
utility | 25 | | in whose service area the customer is located for any
portion | 26 | | of the customer's electric power and energy
requirements |
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| 1 | | formerly obtained from those facilities (including that amount
| 2 | | purchased from the utility in lieu of such generation and not | 3 | | as standby power
purchases, under a cogeneration displacement | 4 | | tariff in effect as of the
effective date of this amendatory | 5 | | Act of 1997), the
transition charges otherwise applicable | 6 | | pursuant to subsections (f), (g), or
(h) of this Section shall | 7 | | not be applicable
in any year to that portion of the customer's | 8 | | electric power
and energy requirements formerly obtained from | 9 | | those
facilities, provided, that for purposes of this | 10 | | subsection
(j), such portion shall not exceed the average | 11 | | number of
kilowatt-hours per year obtained from the | 12 | | cogeneration or
self-generation facilities during the 3 years | 13 | | prior to the
date on which the customer became eligible for | 14 | | delivery
services, except as provided in subsection (f) of | 15 | | Section
16-110.
| 16 | | (k) The electric utility shall be entitled to recover | 17 | | through tariffed charges all of the costs associated with the | 18 | | purchase of zero emission credits from zero emission facilities | 19 | | to meet the requirements of subsection (d-5) of Section 1-75 of | 20 | | the Illinois Power Agency Act. Such costs shall include the | 21 | | costs of procuring the zero emission credits, as well as the | 22 | | reasonable costs that the utility incurs as part of the | 23 | | procurement processes and to implement and comply with plans | 24 | | and processes approved by the Commission under such subsection | 25 | | (d-5). The costs shall be allocated across all retail customers | 26 | | through a single, uniform cents per kilowatt-hour charge |
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| 1 | | applicable to all retail customers, which shall appear as a | 2 | | separate line item on each customer's bill. Beginning June 1, | 3 | | 2017, the electric utility shall be entitled to recover through | 4 | | tariffed charges all of the costs associated with the purchase | 5 | | of renewable energy resources to meet the renewable energy | 6 | | resource standards of subsection (c) of Section 1-75 of the | 7 | | Illinois Power Agency Act, under procurement plans as approved | 8 | | in accordance with that Section and Section 16-111.5 of this | 9 | | Act. Such costs shall include the costs of procuring the | 10 | | renewable energy resources, as well as the reasonable costs | 11 | | that the utility incurs as part of the procurement processes | 12 | | and to implement and comply with plans and processes approved | 13 | | by the Commission under such Sections. The costs associated | 14 | | with the purchase of renewable energy resources shall be | 15 | | allocated across all retail customers in proportion to the | 16 | | amount of renewable energy resources the utility procures for | 17 | | such customers through a single, uniform cents per | 18 | | kilowatt-hour charge applicable to such retail customers, | 19 | | which shall appear as a separate line item on each such | 20 | | customer's bill. | 21 | | Notwithstanding whether the Commission has approved the | 22 | | initial long-term renewable resources procurement plan as of | 23 | | June 1, 2017, an electric utility shall place new tariffed | 24 | | charges into effect beginning with the June 2017 monthly | 25 | | billing period, to the extent practicable, to begin recovering | 26 | | the costs of procuring renewable energy resources, as those |
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| 1 | | charges are calculated under the limitations described in | 2 | | subparagraph (E) of paragraph (1) of subsection (c) of Section | 3 | | 1-75 of the Illinois Power Agency Act. Notwithstanding the date | 4 | | on which the utility places such new tariffed charges into | 5 | | effect, the utility shall be permitted to collect the charges | 6 | | under such tariff as if the tariff had been in effect beginning | 7 | | with the first day of the June 2017 monthly billing period. For | 8 | | the delivery years commencing June 1, 2017, June 1, 2018, and | 9 | | June 1, 2019, the electric utility shall deposit into a | 10 | | separate interest bearing account of a financial institution | 11 | | the monies collected under the tariffed charges. Any interest | 12 | | earned shall be credited back to retail customers under the | 13 | | reconciliation proceeding provided for in this subsection (k), | 14 | | provided that the electric utility shall first be reimbursed | 15 | | from the interest for the administrative costs that it incurs | 16 | | to administer and manage the account. Any taxes due on the | 17 | | funds in the account, or interest earned on it, will be paid | 18 | | from the account or, if insufficient monies are available in | 19 | | the account, from the monies collected under the tariffed | 20 | | charges to recover the costs of procuring renewable energy | 21 | | resources. Monies deposited in the account shall be subject to | 22 | | the review, reconciliation, and true-up process described in | 23 | | this subsection (k) that is applicable to the funds collected | 24 | | and costs incurred for the procurement of renewable energy | 25 | | resources. | 26 | | The electric utility shall be entitled to recover all of |
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| 1 | | the costs identified in this subsection (k) through automatic | 2 | | adjustment clause tariffs applicable to all of the utility's | 3 | | retail customers that allow the electric utility to adjust its | 4 | | tariffed charges consistent with this subsection (k). The | 5 | | determination as to whether any excess funds were collected | 6 | | during a given delivery year for the purchase of renewable | 7 | | energy resources, and the crediting of any excess funds back to | 8 | | retail customers, shall not be made until after the close of | 9 | | the delivery year, which will ensure that the maximum amount of | 10 | | funds is available to implement the approved long-term | 11 | | renewable resources procurement plan during a given delivery | 12 | | year. The electric utility's collections under such automatic | 13 | | adjustment clause tariffs to recover the costs of renewable | 14 | | energy resources and zero emission credits from zero emission | 15 | | facilities shall be subject to separate annual review, | 16 | | reconciliation, and true-up against actual costs by the | 17 | | Commission under a procedure that shall be specified in the | 18 | | electric utility's automatic adjustment clause tariffs and | 19 | | that shall be approved by the Commission in connection with its | 20 | | approval of such tariffs. The procedure shall provide that any | 21 | | difference between the electric utility's collections under | 22 | | the automatic adjustment charges for an annual period and the | 23 | | electric utility's actual costs of renewable energy resources | 24 | | and zero emission credits from zero emission facilities for | 25 | | that same annual period shall be refunded to or collected from, | 26 | | as applicable, the electric utility's retail customers in |
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| 1 | | subsequent periods. | 2 | | Nothing in this subsection (k) is intended to affect, | 3 | | limit, or change the right of the electric utility to recover | 4 | | the costs associated with the procurement of renewable energy | 5 | | resources for periods commencing before, on, or after June 1, | 6 | | 2017, as otherwise provided in the Illinois Power Agency Act. | 7 | | Notwithstanding anything to the contrary, the Commission | 8 | | shall not conduct an annual review, reconciliation, and true-up | 9 | | associated with renewable energy resources' collections and | 10 | | costs for the delivery years commencing June 1, 2017, June 1, | 11 | | 2018, June 1, 2019, and June 1, 2020, and shall instead conduct | 12 | | a single review, reconciliation, and true-up associated with | 13 | | renewable energy resources' collections and costs for the | 14 | | 4-year period beginning June 1, 2017 and ending May 31, 2021, | 15 | | provided that the review, reconciliation, and true-up shall not | 16 | | be initiated until after August 31, 2021. During the 4-year | 17 | | period, the utility shall be permitted to collect and retain | 18 | | funds under this subsection (k) and to purchase renewable | 19 | | energy resources under an approved long-term renewable | 20 | | resources procurement plan using those funds regardless of the | 21 | | delivery year in which the funds were collected during the | 22 | | 4-year period. | 23 | | If the amount of funds collected during the delivery year | 24 | | commencing June 1, 2017, exceeds the costs incurred during that | 25 | | delivery year, then up to half of this excess amount, as | 26 | | calculated on June 1, 2018, may be used to fund the programs |
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| 1 | | under subsection (b) of Section 1-56 of the Illinois Power | 2 | | Agency Act in the same proportion the programs are funded under | 3 | | that subsection (b). However, any amount identified under this | 4 | | subsection (k) to fund programs under subsection (b) of Section | 5 | | 1-56 of the Illinois Power Agency Act shall be reduced if it | 6 | | exceeds the funding shortfall. For purposes of this Section, | 7 | | "funding shortfall" means the difference between $200,000,000 | 8 | | and the amount appropriated by the General Assembly to the | 9 | | Illinois Power Agency Renewable Energy Resources Fund during | 10 | | the period that commences on the effective date of this | 11 | | amendatory act of the 99th General Assembly and ends on August | 12 | | 1, 2018. | 13 | | If the amount of funds collected during the delivery year | 14 | | commencing June 1, 2018, exceeds the costs incurred during that | 15 | | delivery year, then up to half of this excess amount, as | 16 | | calculated on June 1, 2019, may be used to fund the programs | 17 | | under subsection (b) of Section 1-56 of the Illinois Power | 18 | | Agency Act in the same proportion the programs are funded under | 19 | | that subsection (b). However, any amount identified under this | 20 | | subsection (k) to fund programs under subsection (b) of Section | 21 | | 1-56 of the Illinois Power Agency Act shall be reduced if it | 22 | | exceeds the funding shortfall. | 23 | | If the amount of funds collected during the delivery year | 24 | | commencing June 1, 2019, exceeds the costs incurred during that | 25 | | delivery year, then up to half of this excess amount, as | 26 | | calculated on June 1, 2020, may be used to fund the programs |
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| 1 | | under subsection (b) of Section 1-56 of the Illinois Power | 2 | | Agency Act in the same proportion the programs are funded under | 3 | | that subsection (b). However, any amount identified under this | 4 | | subsection (k) to fund programs under subsection (b) of Section | 5 | | 1-56 of the Illinois Power Agency Act shall be reduced if it | 6 | | exceeds the funding shortfall. | 7 | | The funding available under this subsection (k), if any, | 8 | | for the programs described under subsection (b) of Section 1-56 | 9 | | of the Illinois Power Agency Act shall not reduce the amount of | 10 | | funding for the programs described in subparagraph (O) of | 11 | | paragraph (1) of subsection (c) of Section 1-75 of the Illinois | 12 | | Power Agency Act. If funding is available under this subsection | 13 | | (k) for programs described under subsection (b) of Section 1-56 | 14 | | of the Illinois Power Agency Act, then the long-term renewable | 15 | | resources plan shall provide for the Agency to procure | 16 | | contracts in an amount that does not exceed the funding, and | 17 | | the contracts approved by the Commission shall be executed by | 18 | | the applicable utility or utilities. | 19 | | (l) A utility that has terminated any contract executed | 20 | | under subsection (d-5) of Section 1-75 of the Illinois Power | 21 | | Agency Act shall be entitled to recover any remaining balance | 22 | | associated with the purchase of zero emission credits prior to | 23 | | such termination, and such utility shall also apply a credit to | 24 | | its retail customer bills in the event of any over-collection. | 25 | | (m)(1) An electric utility that recovers its costs of | 26 | | procuring zero emission credits from zero emission |
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| 1 | | facilities through a cents-per-kilowatthour charge under | 2 | | to subsection (k) of this Section shall be subject to the | 3 | | requirements of this subsection (m). Notwithstanding | 4 | | anything to the contrary, such electric utility shall, | 5 | | beginning on April 30, 2018, and each April 30 thereafter | 6 | | until April 30, 2026, calculate whether any reduction must | 7 | | be applied to such cents-per-kilowatthour charge that is | 8 | | paid by retail customers of the electric utility that are | 9 | | exempt from subsections (a) through (j) of Section 8-103B | 10 | | of this Act under subsection (l) of Section 8-103B. Such | 11 | | charge shall be reduced for such customers for the next | 12 | | delivery year commencing on June 1 based on the amount | 13 | | necessary, if any, to limit the annual estimated average | 14 | | net increase for the prior calendar year due to the future | 15 | | energy investment costs to no more than 1.3% of 5.98 cents | 16 | | per kilowatt-hour, which is the average amount paid per | 17 | | kilowatthour for electric service during the year ending | 18 | | December 31, 2015 by Illinois industrial retail customers, | 19 | | as reported to the Edison Electric Institute. | 20 | | The calculations required by this subsection (m) shall | 21 | | be made only once for each year, and no subsequent rate | 22 | | impact determinations shall be made. | 23 | | (2) For purposes of this Section, "future energy | 24 | | investment costs" shall be calculated by subtracting the | 25 | | cents-per-kilowatthour charge identified in subparagraph | 26 | | (A) of this paragraph (2) from the sum of the |
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| 1 | | cents-per-kilowatthour charges identified in subparagraph | 2 | | (B) of this paragraph (2): | 3 | | (A) The cents-per-kilowatthour charge identified | 4 | | in the electric utility's tariff placed into effect | 5 | | under Section 8-103 of the Public Utilities Act that, | 6 | | on December 1, 2016, was applicable to those retail | 7 | | customers that are exempt from subsections (a) through | 8 | | (j) of Section 8-103B of this Act under subsection (l) | 9 | | of Section 8-103B. | 10 | | (B) The sum of the following | 11 | | cents-per-kilowatthour charges applicable to those | 12 | | retail customers that are exempt from subsections (a) | 13 | | through (j) of Section 8-103B of this Act under | 14 | | subsection (l) of Section 8-103B, provided that if one | 15 | | or more of the following charges has been in effect and | 16 | | applied to such customers for more than one calendar | 17 | | year, then each charge shall be equal to the average of | 18 | | the charges applied over a period that commences with | 19 | | the calendar year ending December 31, 2017 and ends | 20 | | with the most recently completed calendar year prior to | 21 | | the calculation required by this subsection (m): | 22 | | (i) the cents-per-kilowatthour charge to | 23 | | recover the costs incurred by the utility under | 24 | | subsection (d-5) of Section 1-75 of the Illinois | 25 | | Power Agency Act, adjusted for any reductions | 26 | | required under this subsection (m); and |
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| 1 | | (ii) the cents-per-kilowatthour charge to | 2 | | recover the costs incurred by the utility under | 3 | | Section 16-107.6 of the Public Utilities Act. | 4 | | If no charge was applied for a given calendar year | 5 | | under item (i) or (ii) of this subparagraph (B), then | 6 | | the value of the charge for that year shall be zero. | 7 | | (3) If a reduction is required by the calculation | 8 | | performed under this subsection (m), then the amount of the | 9 | | reduction shall be multiplied by the number of years | 10 | | reflected in the averages calculated under subparagraph | 11 | | (B) of paragraph (2) of this subsection (m). Such reduction | 12 | | shall be applied to the cents-per-kilowatthour charge that | 13 | | is applicable to those retail customers that are exempt | 14 | | from subsections (a) through (j) of Section 8-103B of this | 15 | | Act under subsection (l) of Section 8-103B beginning with | 16 | | the next delivery year commencing after the date of the | 17 | | calculation required by this subsection (m). | 18 | | (4) The electric utility shall file a notice with the | 19 | | Commission on May 1 of 2018 and each May 1 thereafter until | 20 | | May 1, 2026 containing the reduction, if any, which must be | 21 | | applied for the delivery year which begins in the year of | 22 | | the filing. The notice shall contain the calculations made | 23 | | pursuant to this Section. By October 1 of each year | 24 | | beginning in 2018, each electric utility shall notify the | 25 | | Commission if it appears, based on an estimate of the | 26 | | calculation required in this subsection (m), that a |
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| 1 | | reduction will be required in the next year. | 2 | | (Source: P.A. 99-906, eff. 6-1-17 .)
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