State of Illinois
90th General Assembly
Legislation

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90_HB0361

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          Amends  the  Public  Utilities   Act.    Authorizes   the
      production  and  sale  electricity  on  a  competitive basis.
      Provides that the Commence Commission may  modify  and  waive
      rules.    Provides  for  the  sale  or  lease  of  generation
      facilities  without  Commission  approval.    Prohibits   the
      Commission  from  ordering  the  construction  of  additional
      generating   capacity.    Phases   in   competitive  services
      beginning on or before January 1, 2000 for  retail  customers
      using   11  or  more  megawatts  of  electricity  per  month.
      Provides for the phase-in of competitive services for smaller
      and residential users by January 1, 2005.  Provides  that  an
      electric  utility  may  recover  transition costs.  Effective
      June 1, 1997.
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                                               LRB9000199JSgc
 1        AN ACT to amend the Public Utilities Act in  relation  to
 2    competitive services.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.   The  Public  Utilities  Act  is  amended  by
 6    changing   Sections 1-102, 5-104, 6-102, 7-101, 7-102, 8-503,
 7    8-510, 9-220,  10-103, and  10-113,  adding  Sections  4-403,
 8    4-404,  7-102.5,  and  10-114,  and  adding  Article  XVI  as
 9    follows:
10        (220 ILCS 5/1-102) (from Ch. 111 2/3, par. 1-102)
11        Sec.  1-102.  Findings  and  Intent. The General Assembly
12    finds that the health, welfare and prosperity of all Illinois
13    citizens  require  the  provision  of  adequate,   efficient,
14    reliable,  environmentally safe and cost-effective least-cost
15    public utility services at prices  which  accurately  reflect
16    the  long-term  cost of such services and which are equitable
17    to all citizens and that competition should be  permitted  to
18    function,  and  be  used,  where  consistent  with the public
19    interest, to determine the price, variety,  and  availability
20    of   utility  services  and  that  the  economic  burdens  of
21    regulation should be reduced to the extent  possible.  It  is
22    therefore  declared to be the policy of the State that public
23    utilities shall continue to be regulated as set forth  herein
24    and  in  Article  XVI  effectively and comprehensively. It is
25    further declared  that  the  goals  and  objectives  of  such
26    regulation shall be to ensure
27             (a)  Efficiency:   the  provision  of  reliable  and
28        cost-effective energy services at the least possible cost
29        to the citizens of the State; in such manner that:
30                  (i)  physical, human  and  financial  resources
31             are allocated efficiently;
                            -2-                LRB9000199JSgc
 1                  (ii)  utilities    are    provided   with   the
 2             flexibility necessary to participate effectively  in
 3             markets  in  which  there is competition; all supply
 4             and demand  options  are  considered  and  evaluated
 5             using  comparable  terms  and  methods  in  order to
 6             determine how utilities shall meet their  customers'
 7             demands  for  public  utility  services at the least
 8             cost;
 9                  (iii)  utilities  are  allowed   a   sufficient
10             return on investment so as to enable them to attract
11             capital  in  financial  markets at competitive rates
12             and  encourage  the    development  of  and  prudent
13             investment in the facilities  necessary  to  provide
14             utility service;
15                  (iv)  regulatory  policies  and  procedures are
16             reviewed on an ongoing basis  to  ensure  that  such
17             policies   and procedures benefit the public and are
18             cost-effective tariff rates for the sale of  various
19             public  utility  services  are  authorized such that
20             they accurately reflect the cost of delivering those
21             services and allow utilities to  recover  the  total
22             costs prudently and reasonably incurred;
23                  (v)  differences  in type variation in costs by
24             customer class and time of use  are  is  taken  into
25             consideration in authorizing rates for each class.
26             (b)  Environmental  Quality:  the  protection of the
27        environment from the adverse  external  costs  of  public
28        utility services so that
29                  (i)  environmental  costs  of  proposed actions
30             having a significant impact on the  environment  and
31             the  environmental  impact  of  the alternatives are
32             identified,  documented  and   considered   in   the
33             regulatory process;
34                  (ii)  the  prudently  and  reasonably  incurred
                            -3-                LRB9000199JSgc
 1             costs of environmental controls are recovered.
 2             (c)  Reliability:   the   ability  of  utilities  to
 3        provide consumers  with  public  utility  services  under
 4        varying  demand  conditions in such manner that suppliers
 5        of public utility services are able to provide service at
 6        varying levels  of  economic  reliability  and  that  the
 7        introduction  of competition  not threaten the utilities'
 8        ability to perform the   functions  that  only  they  can
 9        provide  giving  appropriate  consideration  to the costs
10        likely  to  be  incurred   as   a   result   of   service
11        interruptions,   and   to  the  costs  of  increasing  or
12        maintaining current levels of reliability consistent with
13        commitments to consumers.
14             (d)  Equity: the fair  treatment  of  consumers  and
15        investors in order that
16                  (i)  the  public  health,  safety  and  welfare
17             shall be protected;
18                  (ii)  the  application  of  rates  is  based on
19             public  understandability  and  acceptance  of   the
20             reasonableness of the rate structure and level;
21                  (iii)  (blank);  the  cost  of supplying public
22             utility services is allocated to those who cause the
23             costs to be incurred;
24                  (iv)  if factors other than cost of service are
25             considered in regulatory  decisions,  the  rationale
26             for these actions is set forth;
27                  (v)  regulation  allows  for orderly transition
28             periods to accommodate  changes  in  public  utility
29             service markets;
30                  (vi)  regulation  does  not  result in undue or
31             sustained adverse impact  on  utility  earnings  and
32             utilities  are  allowed   an adequate opportunity to
33             recover the total costs prudently    and  reasonably
34             incurred in providing utility service;
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 1                  (vii)  the impacts of regulatory actions on all
 2             sectors of the State are carefully weighed;
 3                  (viii)  the  rates  for  utility  services  are
 4             affordable  and  therefore preserve the availability
 5             of such services to all citizens.
 6        It is further declared to be the policy of the State that
 7    this Act shall not apply in relation to  motor  carriers  and
 8    rail   carriers   as   defined  in  the  Illinois  Commercial
 9    Transportation Law, or to the Commission in the regulation of
10    such carriers.
11    (Source: P.A. 89-42, eff. 1-1-96.)
12        (220 ILCS 5/4-403 new)
13        Sec. 4-403.  Waivers and modifications of rules.
14        (a)  Upon petition of a public utility, the Commission is
15    authorized to waive or modify the application  of  its  rules
16    and  regulations to the public utility when it finds that the
17    waiver    or modification will reduce the economic burdens of
18    regulation  and that application of the rule or regulation in
19    the  circumstances in which the  waiver  or  modification  is
20    requested  is   not necessary to protect the consumers of the
21    services provided  by that utility.
22        (b)  Upon petition, the Commission shall also grant  such
23    waiver  or  modification  to another public utility providing
24    the  same type of utility  services,  unless  the  Commission
25    finds,  following a hearing, that application of such rule or
26    regulation    in  the  circumstances  in  which the waiver or
27    modification is    requested  is  necessary  to  protect  the
28    consumers   of  the  services    provided  by  that  utility;
29    provided, however, that if no objection    is  filed  by  any
30    party  or  the  staff  of  the  Commission  within  30   days
31    following the date the public utility's notice was  published
32    pursuant  to  subsection  (c) of this Section, the Commission
33    shall  issue an order granting the public utility's petition.
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 1    If a  timely objection is filed, the Commission shall hold  a
 2    hearing   and shall issue its order within 120 days following
 3    the date the  public utility's notice was published  pursuant
 4    to subsection (c)  of this Section.
 5        (c)  A  public  utility  filing  a  petition  pursuant to
 6    subsection (a) or (b) of this Section shall publish notice of
 7    its  petition in the official State newspaper within 10  days
 8    following  the date of the filing.
 9        (220 ILCS 5/4-404 new)
10        Sec.  4-404.   Protection of confidential and proprietary
11    information.    The   Commission   shall   provide   adequate
12    protection  for confidential,  proprietary  and  commercially
13    sensitive    information furnished, delivered or filed by any
14    person,  corporation or other entity.
15        (220 ILCS 5/5-104) (from Ch. 111 2/3, par. 5-104)
16        Sec. 5-104. Depreciation accounts.
17        (a)  The Commission shall have power, after  hearing,  to
18    require  any or all public utilities to keep such accounts as
19    will adequately reflect depreciation,  obsolescence  and  the
20    progress  of the arts. The Commission may, from time to time,
21    ascertain and determine and  by  order  fix  the  proper  and
22    adequate  rate  of  depreciation  of  the  several classes of
23    property for each public utility;  and  each  public  utility
24    shall  thereafter,  absent  further  order of the Commission,
25    conform  its  depreciation   accounts   to   the   rates   so
26    ascertained, determined, and fixed until at least the end  of
27    the  first  full  calendar  year  following  the  date of the
28    determination.
29        (b)  A public utility may from time  to  time  alter  the
30    annual    rates  of  depreciation, which for purposes of this
31    subsection  (b)      and   subsection   (c)   shall   include
                            -6-                LRB9000199JSgc
 1    amortization,  that  it  applies  to   its several classes of
 2    assets so long as the rates are   consistent  with  generally
 3    accepted  accounting  principles.   The  public utility shall
 4    file a statement with the Commission which  shall  set  forth
 5    the  new  rates  of  depreciation  and which shall  contain a
 6    certification by an independent certified public   accountant
 7    that  the  new  rates  of  depreciation  are  consistent with
 8    generally accepted accounting principles.  Upon the filing of
 9    such statement, the new rates of depreciation shall be deemed
10    to    be  approved  by  the  Commission  as  the   rates   of
11    depreciation  to be  applied thereafter by the public utility
12    as though an order had  been entered pursuant  to  subsection
13    (a).
14        (c)  In  any  proceeding  conducted  pursuant  to Section
15    9-201  or  9-202  to  set  the  public  utility's  rates  for
16    service,  the    Commission  may  determine  not  to  use, in
17    determining the  depreciation expense component of the public
18    utility's rates for    service,  the  rates  of  depreciation
19    established pursuant to  subsection (b), if the Commission in
20    that  proceeding  finds  based   on the record that different
21    rates of depreciation are required    to  adequately  reflect
22    depreciation, obsolescence and the progress  of the arts, and
23    fixes  by order and uses for purposes of that  proceeding new
24    rates of depreciation to  be  thereafter  employed  by    the
25    public  utility until the end of the first full calendar year
26    following the date of the determination and thereafter  until
27    altered  in  accordance  with  subsection  (a) or (b) of this
28    Section.
29    (Source: P.A. 84-617.)
30        (220 ILCS 5/6-102) (from Ch. 111 2/3, par. 6-102)
31        Sec. 6-102.  Authorization of issues of stock.
32        (a)  Subject to the provisions of this  Act  and  of  the
33    order  of  the  Commission  issued as provided in this Act, a
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 1    public utility may issue stocks and stock  certificates,  and
 2    bonds,  notes  and other evidences of indebtedness payable at
 3    periods of more than 12 months after the date thereof for any
 4    lawful purpose. However, such public utility shall first have
 5    secured from the Commission an order authorizing  such  issue
 6    and stating the amount thereof and the purpose or purposes to
 7    which  the  issue  or the proceeds thereof are to be applied,
 8    and that  in  the  opinion  of  the  Commission,  the  money,
 9    property or labor to be procured or paid for by such issue is
10    reasonably  required for the purpose or purposes specified in
11    the order.
12        (b)  The provisions of this subsection  (b)  shall  apply
13    only    to (1) any issuances of stock in a cumulative amount,
14    exclusive  of any issuances referred to in item (3), that are
15    10% or more in  a calendar year or 20% or more in a  24-month
16    period  of  the  total  common stockholders' equity or of the
17    total amount of preferred  stock outstanding, as the case may
18    be, of the public utility, and    (2)  to  any  issuances  of
19    bonds,  notes,  or  other  evidences  of    indebtedness in a
20    cumulative principal amount,  exclusive  of  any    issuances
21    referred  to in item (3), that are 10% or more in a  calendar
22    year and 20% or more in a 24-month period of the    aggregate
23    principal  amount  of  bonds,  notes,  and other evidences of
24    indebtedness of the public utility outstanding, all as of the
25    date  of the  issuance,  but  shall  not  apply  to  (3)  any
26    issuances  of stock or of bonds, notes, or other evidences of
27    indebtedness   90% or more of the proceeds of which are to be
28    used by the  public    utility  for  purposes  of  refunding,
29    redeeming,  or  refinancing    outstanding  issues  of stock,
30    bonds, notes, or other evidences of  indebtedness. To  enable
31    it to determine whether it will issue the such order required
32    by  subsection  (a) of this Section, the Commission may shall
33    hold a hearing  and  may  make  such  additional  inquiry  or
34    investigation,  and  examine  such  witnesses, books, papers,
                            -8-                LRB9000199JSgc
 1    accounts, documents and contracts and require the  filing  of
 2    such  data  as  it may deem of assistance. The public utility
 3    may be required by the Commission to disclose every  interest
 4    of  the  directors  of such public utility in any transaction
 5    under investigation.  The  Commission  shall  have  power  to
 6    investigate  all  such  transactions  and to inquire into the
 7    good faith  thereof,  to  examine  books,  papers,  accounts,
 8    documents  and contracts of public utilities, construction or
 9    other companies or of firms  or  individuals  with  whom  the
10    public utility shall have had financial transactions, for the
11    purpose  of  enabling  it to verify any statements furnished,
12    and to examine into the actual value of property acquired  by
13    or  services  rendered to such public utility. Before issuing
14    its order, the Commission, when it is deemed necessary by the
15    Commission, shall make an adequate physical valuation of  all
16    property  of the public utility, but a valuation already made
17    under proper public supervision may  be  adopted,  either  in
18    whole  or  in  part, at the discretion of the Commission; and
19    shall also examine all previously authorized  or  outstanding
20    securities  of the public utility, and fixed charges attached
21    thereto.  A  statement  of  the  results  of  such   physical
22    valuation,   and   a   statement  of  the  character  of  all
23    outstanding securities, together with  the  conditions  under
24    which  they  are  held,  shall  be included in the order. The
25    Commission may require that such  information  or  such  part
26    thereof  as  it  thinks  proper, shall appear upon the stock,
27    stock  certificate,  bond,  note   or   other   evidence   of
28    indebtedness  authorized  by its order. The Commission may by
29    its order grant  permission  for  the  issue  of  such  stock
30    certificates,   or   bonds,   notes  or  other  evidences  of
31    indebtedness in the  amount  applied  for,  or  in  a  lesser
32    amount,  or not at all, and may attach to the exercise of its
33    permission such  condition  or  conditions  as  it  may  deem
34    reasonable  and  necessary.  Nothing  in  this  Section shall
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 1    prevent a public utility from  seeking,  nor  the  Commission
 2    from   approving,  a  shelf  registration  plan  for  issuing
 3    securities  over  a  reasonable  period  in  accordance  with
 4    regulations established by the United States  Securities  and
 5    Exchange  Commission.   Any  securities issued pursuant to an
 6    approved shelf registration plan need not be further approved
 7    by the Commission so long as they are in compliance with  the
 8    approved  shelf  registration plan. The Commission shall have
 9    the power to refuse its approval  of  applications  to  issue
10    securities,  in  whole  or  in  part, upon a finding that the
11    issue  of  such  securities  would  be  contrary  to   public
12    interest.  The Commission may also require the public utility
13    to compile for the information of its shareholders such facts
14    in regard to its financial transactions, in such form as  the
15    Commission may direct.
16        No  public  utility  shall,  without  the  consent of the
17    Commission,  apply  the  issue  of   any   stock   or   stock
18    certificates,   or   bond,   note   or   other   evidence  of
19    indebtedness, which was issued  pursuant to an order  of  the
20    Commission  entered  pursuant to this  subsection (b), or any
21    part thereof, or any proceeds thereof,  to  any  purpose  not
22    specified  in  the  Commission's  order  or  to  any  purpose
23    specified  in  the Commission's order in excess of the amount
24    authorized for such purpose; or issue or dispose of the  same
25    on  any  terms  less  favorable  than those specified in such
26    order, or a modification thereof. The Commission  shall  have
27    the  power  to  require  public  utilities to account for the
28    disposition of the proceeds of all sales of stocks and  stock
29    certificates,   and  bonds,  notes  and  other  evidences  of
30    indebtedness, which were issued pursuant to an order  of  the
31    Commission  entered pursuant to  this subsection (b), in such
32    form and detail as it may deem advisable,  and  to  establish
33    such  rules  and  regulations  as  it may deem reasonable and
34    necessary to insure the disposition of such proceeds for  the
                            -10-               LRB9000199JSgc
 1    purpose or purposes specified in its order.
 2        (c)  A   public  utility  may  issue  notes,  for  proper
 3    purposes, and not in violation of any provision of  this  Act
 4    or  any  other  Act,  payable  at periods of not more than 12
 5    months after the date of issuance of the  same,  without  the
 6    consent  of  the Commission; but no such note shall, in whole
 7    or in part, be renewed or be refunded from  the  proceeds  of
 8    any  other such note or evidence of indebtedness from time to
 9    time without the consent of the Commission for  an  aggregate
10    period of longer than two years.
11        (d)  Any  issuance  of stock or of bonds, notes, or other
12    evidences of indebtedness,  other  than  issuances  of  notes
13    pursuant    to  subsection  (c) of this Section, which is not
14    subject to subsection (b) of this Section, shall be regulated
15    by the Commission  as follows:  the public utility shall file
16    with the Commission,  at least 15 days before the date of the
17    issuance, an  informational statement setting forth the  type
18    and amount of the  issue and the purpose or purposes to which
19    the  issue or the  proceeds thereof are to be applied.  Prior
20    to the  date  of  the    issuance  specified  in  the  public
21    utility's  filing,  the    Commission,  if  it finds that the
22    issuance is not subject to  subsection (b) of  this  Section,
23    shall  issue  a written order in  conformance with subsection
24    (a)   of   this   Section   authorizing   the       issuance.
25    Notwithstanding   any  other  provisions  of  this  Act,  the
26    Commission may delegate its  authority  to  enter  the  order
27    required  by this subsection (d) to a hearing examiner.
28        (e)  The  Commission shall have no power to authorize the
29    capitalization of the  right  to  be  a  corporation,  or  to
30    authorize  the  capitalization  of any franchise, license, or
31    permit whatsoever or the right to own, operate or  enjoy  any
32    such  franchise,  license, or permit, in excess of the amount
33    (exclusive of any tax or annual charge) actually paid to  the
34    State   or   to   a  political  subdivision  thereof  as  the
                            -11-               LRB9000199JSgc
 1    consideration for  the  grant  of  such  franchise,  license,
 2    permit  or right; nor shall any contract for consolidation or
 3    lease be capitalized, nor shall any public utility  hereafter
 4    issue  any  bonds,  notes  or other evidences of indebtedness
 5    against or as a lien, upon any contract for consolidation  or
 6    merger.
 7        (f)  The  provisions  of  this Section shall not apply to
 8    public utilities which are not corporations duly incorporated
 9    under the laws of this State to  the  extent  that  any  such
10    public  utility  may  issue  stock,  bonds,  notes  or  other
11    evidences   of   indebtedness   not  directly  or  indirectly
12    constituting or creating a lien or charge  on,  or  right  to
13    profits  from,  any  property  used  or  useful  in rendering
14    service within this State. Nothing  in  this  Section  or  in
15    Section  6-104  of  this  Act shall be construed to require a
16    common  carrier  by  railroad  subject  to  Part  I  of   the
17    Interstate  Commerce  Act,  being  part of an Act of the 49th
18    Congress of the United States entitled "An  Act  to  Regulate
19    Commerce",   as   amended,  to  secure  from  the  Commission
20    authority to issue or  execute  or  deliver  any  conditional
21    sales contract or similar contract or instrument reserving or
22    retaining title in the seller for all or part of the purchase
23    price  of  equipment or property used or to be used for or in
24    connection with the transportation of persons or property.
25    (Source: P.A. 84-617.)
26        (220 ILCS 5/7-101) (from Ch. 111 2/3, par. 7-101)
27        Sec. 7-101. Transactions with affiliated interests.
28        (1)  The Commission shall have jurisdiction over  holders
29    of the voting capital stock of all public utilities under the
30    jurisdiction  of  the  Commission  to  such  extent as may be
31    necessary to enable the Commission to require the  disclosure
32    of the identity in respective interests of every owner of any
33    substantial  interest in such voting capital stocks.  One per
                            -12-               LRB9000199JSgc
 1    centum or more is a substantial interest, within the  meaning
 2    of this subdivision.
 3        (2)  The   Commission   shall   have   jurisdiction  over
 4    affiliated  interests   having   transactions,   other   than
 5    ownership  of  stock  and  receipt of dividends thereon, with
 6    public utilities under the jurisdiction of the Commission, to
 7    the extent of access to all  accounts  and  records  of  such
 8    affiliated interests relating to such transactions, including
 9    access  to  accounts and records of joint or general expenses
10    with the public utility, any portion of which is related  may
11    be  applicable  to  such  transactions;  and to the extent of
12    authority to  require  such  reports  with  respect  to  such
13    transactions to be submitted by such affiliated interests, as
14    the  Commission  may prescribe; provided, however, that prior
15    to  requesting such access or  reports  from  the  affiliated
16    interest,    the  Commission  shall  first seek to obtain the
17    information that  would be included in such accounts, records
18    or reports from the  public utility.   The  Commission  shall
19    not  have  access to any  accounts and records of, or require
20    any reports from,  an    affiliated  interest  that  are  not
21    related  to  its  transactions  with    the  public  utility.
22    Nothing  in  this paragraph shall limit the  authority of the
23    Commission otherwise provided under this Act to  have  access
24    to  accounts and records of, or to require reports  from, the
25    public utility or to prescribe guidelines that  the    public
26    utility must follow in allocating costs to transactions  with
27    affiliated  interests.  For  the purpose of this Section, the
28    phrase "affiliated interests" means:
29        (a)  Every corporation  and  person  owning  or  holding,
30    directly  or  indirectly,  10%  or more of the voting capital
31    stock of such public utility;
32        (b)  Every  corporation  and  person  in  any  chain   of
33    successive ownership of 10% or more of voting capital stock;
34        (c)  Every  corporation,  10%  or  more  of  whose voting
                            -13-               LRB9000199JSgc
 1    capital stock is owned by any person  or  corporation  owning
 2    10%  or  more  of  the  voting  capital  stock of such public
 3    utility, or by any person or corporation in any such chain of
 4    successive ownership of 10% or more of voting capital stock;
 5        (d)  Every corporation,  10%  or  more  of  whose  voting
 6    securities  is  owned,  directly or indirectly by such public
 7    utility;
 8        (e)  Every person who is an elective officer or  director
 9    of  such public utility or of any corporation in any chain of
10    successive ownership of 10% or more of voting capital stock;
11        (f)  Every corporation which has  one  or  more  elective
12    officers  or one or more directors in common with such public
13    utility;
14        (g)  Every corporation or person which the Commission may
15    determine as a matter of fact after investigation and hearing
16    is actually exercising any  substantial  influence  over  the
17    policies  and actions of such public utility even though such
18    influence is not  based  upon  stock  holding,  stockholders,
19    directors  or  officers  to  the  extent  specified  in  this
20    Section;
21        (h)  Every   person  or  corporation  who  or  which  the
22    Commission  may  determine  as  a  matter   of   fact   after
23    investigation   and   hearing  is  actually  exercising  such
24    substantial influence over the policies and actions  of  such
25    public   utility  in  conjunction  with  one  or  more  other
26    corporations or persons with which or whom they  are  related
27    by  ownership  or  blood relationship or by action in concert
28    that together they are affiliated with  such  public  utility
29    within the meaning of this Section even though no one of them
30    alone is so affiliated.
31        No  such  person  or corporation is affiliated within the
32    meaning  of  this  Section  however,  if   such   person   or
33    corporation  is  otherwise subject to the jurisdiction of the
34    Commission  or  such  person  or  corporation  has  not   had
                            -14-               LRB9000199JSgc
 1    transactions  or dealings other than the holding of stock and
 2    the receipt of dividends thereon  with  such  public  utility
 3    during the 2 year period next preceding.
 4        (3)  No  management,  construction,  engineering, supply,
 5    financial or similar contract and no contract or  arrangement
 6    for the purchase, sale, lease, or exchange of any property or
 7    for  the  furnishing  of  any  service,  property  or  thing,
 8    hereafter  made with any affiliated interest, as hereinbefore
 9    defined, shall be effective unless it has  first  been  filed
10    with  and  consented  to  by the Commission or is exempted in
11    accordance with the provisions  of this Section or of Section
12    7-102.5, 16-111, or 16-117 of this  Act. The  Commission  may
13    condition  such  approval  in  such  manner  as  it  may deem
14    necessary to safeguard the public interest.  If it  be  found
15    by  the  Commission,  after investigation and a hearing, that
16    any such  contract  or  arrangement  is  not  in  the  public
17    interest,  the  Commission  may  disapprove  such contract or
18    arrangement.  Every contract or arrangement not consented  to
19    or excepted by the Commission as provided for in this Section
20    is void.
21        The consent to, or exemption or waiver of consent to, any
22    contract   or  arrangement  under  this  Section  or  Section
23    7-102.5, 16-111,  or  16-117  as  required  above,  does  not
24    constitute approval of payments thereunder for the purpose of
25    computing  expense  of  operation  in  any  rate  proceeding.
26    However, the Commission shall not require a public utility to
27    make  purchases  at prices exceeding the prices offered by an
28    affiliated interest, and the Commission shall not be required
29    to disapprove or disallow, solely on  the  ground  that  such
30    payments  yield  the  affiliated interest a return or rate of
31    return in excess of that  allowed  the  public  utility,  any
32    portion   of   payments  for  purchases  from  an  affiliated
33    interest.
34        (4)  The Commission may by general rules applicable alike
                            -15-               LRB9000199JSgc
 1    to all public utilities affected thereby waive the filing and
 2    necessity  for  approval  of   contracts   and   arrangements
 3    described in subparagraph (3) of this Section in cases of (a)
 4    contracts  or  arrangements  made  in  the ordinary course of
 5    business for the employment of  officers  or  employees;  (b)
 6    contracts  or  arrangements  made  in  the ordinary course of
 7    business for the purchase of  services,  supplies,  or  other
 8    personal  property  at  prices  not exceeding the standard or
 9    prevailing  market  prices,  or  at  prices  or  rates  fixed
10    pursuant to law; (c)  contracts  or  arrangements  where  the
11    total  obligation  to  be  incurred  under  the  contract  or
12    arrangement  thereunder  does  not  exceed  the lesser of (i)
13    $5,000,000 or (ii) 2% of the public  utility's receipts  from
14    all  tariffed  services  (as  defined in  Article XVI) in the
15    preceding calendar year  $500;  (d)  the  temporary  leasing,
16    lending  or interchanging of equipment in the ordinary course
17    of business or in case of an  emergency;  and  (e)  contracts
18    made  by  a public utility with a person or corporation whose
19    bid  is  the  most  favorable  to  the  public  utility,   as
20    ascertained by competitive bidding under such rules as may be
21    prescribed  by  the  Commission.   If the Commission, after a
22    hearing, finds that any public  utility  is  abusing  or  has
23    abused  such  general  rule and thereby is evading compliance
24    with the standard  established  herein,  the  Commission  may
25    require  such  public  utility to thereafter file and receive
26    the Commission's approval upon  all  such  transactions,  but
27    that general rule shall remain in full force and effect as to
28    all other public utilities.
29    (Source: P.A. 84-617.)
30        (220 ILCS 5/7-102) (from Ch. 111 2/3, par. 7-102)
31        Sec.  7-102.  Transactions requiring Commission approval.
32    Unless the consent and approval of the  Commission  is  first
33    obtained  or unless such approval is waived by the Commission
                            -16-               LRB9000199JSgc
 1    or is exempted in accordance  with  the  provisions  of  this
 2    Section or of any other Section of this Act:
 3        (a)  No  2  or  more  public  utilities  may  enter  into
 4    contracts  with  each  other  that  will  enable  such public
 5    utilities to operate their lines or plants in connection with
 6    each other;
 7        (b)  No public utility may purchase,  lease,  or  in  any
 8    other  manner  acquire  control, direct or indirect, over the
 9    franchises, licenses, permits, plants, equipment, business or
10    other property of any other public utility;
11        (c)  No  public  utility  may  assign,  transfer,  lease,
12    mortgage, sell (by option or otherwise), or otherwise dispose
13    of or encumber the whole  or  any  part  of  its  franchises,
14    licenses,  permits,  plant,  equipment,  business,  or  other
15    property,  but  the  consent  and  approval of the Commission
16    shall not be required for  the  sale,  lease,  assignment  or
17    transfer  (1)  by any public utility of any tangible personal
18    property which is not necessary or useful in the  performance
19    of  its  duties  to the public, or (2) by any railroad of any
20    real or tangible personal property;
21        (d)  No public  utility  may  by  any  means,  direct  or
22    indirect,  merge  or  consolidate  its  franchises, licenses,
23    permits, plants, equipment, business or other  property  with
24    that of any other public utility;
25        (e)  No  public  utility  may  purchase, acquire, take or
26    receive any stock, stock certificates, bonds, notes or  other
27    evidences of indebtedness of any other public utility;
28        (f)  No  public  utility  may  in any manner, directly or
29    indirectly, guarantee the  performance  of  any  contract  or
30    other  obligation  of  any  other person, firm or corporation
31    whatsoever;
32        (g)  No public utility may use,  appropriate,  or  divert
33    any  of  its moneys, property or other resources in or to any
34    business or enterprise which  is  not,  prior  to  such  use,
                            -17-               LRB9000199JSgc
 1    appropriation or diversion essentially and directly connected
 2    with  or a proper and necessary department or division of the
 3    business  of  such  public  utility;   provided   that   this
 4    subsection  shall  not  be construed as modifying subsections
 5    (a) through (e) of this Section; and  provided  further  that
 6    the  provision  by  a  public  utility engaged  in furnishing
 7    electric or gas service to the public  of  any    product  or
 8    service  that  is related to the provision of, or  customers'
 9    use of, electric or gas service shall for this  purpose    be
10    deemed  to  be  essentially  and  directly connected with the
11    business of the public utility.
12        (h)  No  public  utility  may,  directly  or  indirectly,
13    invest, loan or advance, or permit to be invested, loaned  or
14    advanced  any  of its moneys, property or other resources in,
15    for, in behalf of or to any other person, firm, trust, group,
16    association, company or corporation whatsoever,  except  that
17    no consent or approval by the Commission is necessary for the
18    purchase   of   stock   in  development  credit  corporations
19    organized under the Illinois Development  Credit  Corporation
20    Act,  providing  that  no such purchase may be made hereunder
21    if, as a result of such  purchase,  the  cumulative  purchase
22    price  of  all  such shares owned by the utility would exceed
23    one-fiftieth of one per cent of the utility's gross operating
24    revenue for the preceding calendar year.
25        (i)  Any public utility may present to the Commission for
26    approval options or contracts to sell or lease real property,
27    notwithstanding that the value of the property  under  option
28    may  have  changed  between  the  date  of the option and the
29    subsequent date of sale or lease. If the options or contracts
30    are approved by the Commission, subsequent sales or leases in
31    conformance with those options or contracts may  be  made  by
32    the   public  utility  without  any  further  action  by  the
33    Commission. If approval of the options or contracts is denied
34    by the Commission, the options or contracts are void and  any
                            -18-               LRB9000199JSgc
 1    consideration  theretofore paid to the public utility must be
 2    refunded  within  30  days  following  disapproval   of   the
 3    application.
 4        The   proceedings  for  obtaining  the  approval  of  the
 5    Commission provided for  it  in  this  Section  shall  be  as
 6    follows: There shall be filed with the Commission a petition,
 7    joint  or  otherwise, as the case may be, signed and verified
 8    by the president, any vice president,  secretary,  treasurer,
 9    comptroller,  general  manager,  or  chief  engineer  of  the
10    respective  companies,  or  by  the person or company, as the
11    case may be, clearly setting forth the  object  and  purposes
12    desired, and setting forth the full and complete terms of the
13    proposed  assignment,  transfer,  lease,  mortgage, purchase,
14    sale, merger, consolidation, contract or  other  transaction,
15    as  the  case  may  be. Upon the filing of such petition, the
16    Commission shall, if it deems necessary, fix a time and place
17    for the hearing thereon. After such hearing, or  in  case  no
18    hearing is required, if the Commission is satisfied that such
19    petition  should  reasonably  be granted, and that the public
20    will be convenienced thereby, the Commission shall make  such
21    order  in  the  premises  as  it  may  deem proper and as the
22    circumstances may require, attaching such  conditions  as  it
23    may  deem  proper, and thereupon it shall be lawful to do the
24    things provided for  in  such  order.  The  Commission  shall
25    impose  such  conditions  as  will  protect  the  interest of
26    minority and preferred stockholders. The filing of,  and  the
27    consent  and approval of the  Commission for, any assignment,
28    transfer,  lease,  mortgage,      purchase,   sale,   merger,
29    consolidation,  contract  or  other   transaction by a public
30    utility  with  gross  revenues  in  all    jurisdictions   of
31    $250,000,000  or  more  annually  involving  a sale  price or
32    annual consideration in  an  amount  of  $5,000,000  or  less
33    shall  not  be  required.  The Commission shall also have the
34    authority,  on  petition  by  a  public  utility  with  gross
                            -19-               LRB9000199JSgc
 1    revenues in    all  jurisdictions  of  $250,000,000  or  more
 2    annually,  to  establish  by order higher thresholds than the
 3    foregoing for the requirement  of approval of transactions by
 4    the Commission pursuant to  this    Section  for  the  public
 5    utility,  but  no  greater  than  1% of the  public utility's
 6    average total gross utility plant in service in  the case  of
 7    sale,  assignment or acquisition of property, or 2.5%  of the
 8    public utility's total revenue in the  case  of  other  sales
 9    price  or  annual  consideration,  in  each case based on the
10    preceding calendar year, and subject  to  the  power  of  the
11    Commission, after notice and hearing, to further revise those
12    thresholds  at  a  later date.  In addition to the foregoing,
13    the Commission shall have power by general  rules  applicable
14    alike  to  all public utilities affected thereby to waive the
15    filing and necessity for approval of the following: (a) sales
16    of property  involving  a  consideration  of  not  more  than
17    $300,000  for  utilities  with  gross  revenues  in excess of
18    $50,000,000 annually and a consideration  of  not  more  than
19    $100,000  or less for all other utilities with gross revenues
20    in all jurisdictions of less than $250,000,000 annually;  (b)
21    leases, easements and licenses involving a  consideration  or
22    rental  of  not more than $30,000 per year for utilities with
23    gross revenues  in  excess  of  $50,000,000  annually  and  a
24    consideration or rental of not more than $10,000 per year for
25    all  other utilities with gross revenues in all jurisdictions
26    of less than $250,000,000  annually;  (c)  leases  of  office
27    building   space  not  required  by  the  public  utility  in
28    rendering service to the public; (d) the  temporary  leasing,
29    lending  or interchanging of equipment in the ordinary course
30    of  business  or  in  case   of   an   emergency;   and   (e)
31    purchase-money   mortgages  given  by  a  public  utility  in
32    connection with the purchase of  tangible  personal  property
33    where  the  total  obligation  to be secured shall be payable
34    within a period of not exceeding one year or  less.  However,
                            -20-               LRB9000199JSgc
 1    if  the  Commission,  after  a hearing, finds that any public
 2    utility is abusing  or  has  abused  such  general  rule  and
 3    thereby  is  evading compliance with the standard established
 4    herein, the Commission  shall  have  power  to  require  such
 5    public   utility   to   thereafter   file   and  receive  the
 6    Commission's approval upon all such transactions as described
 7    in this Section and not  exempted    pursuant  to  the  first
 8    sentence  of this paragraph or to Section 7-102.5, 16-111, or
 9    16-117 of this Act, but such general  rule  shall  remain  in
10    full force and effect as to all other public utilities.
11        Every  assignment,  transfer,  lease,  mortgage,  sale or
12    other disposition or encumbrance of the whole or any part  of
13    the franchises, licenses, permits, plant, equipment, business
14    or  other  property  of  any public utility, or any merger or
15    consolidation thereof, and every contract, purchase of stock,
16    or other transaction referred to  in  this  Section  and  not
17    exempted,  made otherwise than in accordance with an order of
18    the Commission authorizing the same, except  as  provided  in
19    this  Section,  shall be void. The provisions of this Section
20    shall not apply to any transactions by or  with  a  political
21    subdivision or municipal corporation of this State.
22        The  provisions  of  this  Section  do  not  apply to the
23    purchase or sale of emission  allowances  created  under  and
24    defined  in  Title IV of the federal Clean Air Act Amendments
25    of 1990 (P.L. 101-549), as amended.
26    (Source: P.A. 88-604, eff. 9-1-94; 89-99, eff. 7-7-95.)
27        (220 ILCS 5/7-102.5 new)
28        Sec. 7-102.5. Sale or lease of generation facilities.
29        (a)  On or before December 31, 1999, an electric  utility
30    may,  without  obtaining approval of the Commission except as
31    provided  in  this  Section  and  notwithstanding  any  other
32    Section of  this Act  that  would  require  approval  of  the
33    Commission,  sell  or  lease   property, plant, and equipment
                            -21-               LRB9000199JSgc
 1    used in the generation of  electricity to a subsidiary of the
 2    electric utility or to a  subsidiary of the  holding  company
 3    that  owns  the electric utility,  hereinafter referred to as
 4    the "transferee", after giving at    least  14  days  written
 5    notice  of  the  proposed  transaction  to  the   Commission,
 6    provided that the electric utility includes the  following in
 7    its notice:
 8             (1)  proposed  tariff  sheets  that  eliminate   the
 9        electric    utility's  fuel adjustment clause, and adjust
10        the electric  utility's base rates, as defined in Section
11        16-102 of this  Act, in accordance with subsection (b) of
12        this  Section,  and    supporting  workpapers  for   that
13        adjustment;
14             (2)  a  certification  that all regulatory approvals
15        for  the  sale  or  lease  required  under  federal  law,
16        including    approval  of  the  power  purchase agreement
17        referred to in  subsection (c) of this Section, have been
18        obtained or can  reasonably be expected  to  be  obtained
19        following  consummation   of the sale or lease authorized
20        by this Section;
21             (3)  a complete statement of the entries  which  the
22        electric  utility  will  make on its books and records of
23        account to implement  the  sale  or  lease  of  property,
24        plant, and equipment; and
25             (4)  an   irrevocable  commitment  by  the  electric
26        utility    that  it  will  not,  as  a  result   of   the
27        transaction,  impose  any   stranded cost charges that it
28        might otherwise be allowed to   charge  retail  customers
29        under  federal  law  or  increase the  transition charges
30        that it is otherwise entitled to collect   under  Article
31        XVI.
32        (b)  The  Commission  shall  review  and  shall  by order
33    approve,  or approve as modified, the proposed tariff  sheets
34    referred  to  in   item (1) of subsection (a) of this Section
                            -22-               LRB9000199JSgc
 1    within 60 days  following the electric utility's filing.  The
 2    Commission shall  approve the proposed tariff  sheets  if  it
 3    finds  that,  based  on    actual customer usage for the most
 4    recent calendar year preceding  the order date, the  proposed
 5    tariffs  would  have  resulted  in  the   same jurisdictional
 6    revenues to the electric utility as  it    actually  received
 7    during  that  year.   The Commission may by its  order modify
 8    the proposed tariff sheets only to the extent   necessary  to
 9    achieve  the  level  of  jurisdictional revenue  described in
10    this subsection.  The Commission's order shall   provide  for
11    any  reconciliation  of  power  supply  costs and  associated
12    revenues  necessary  through  the  date  that  the   electric
13    utility's fuel adjustment clause is eliminated.  The electric
14    utility  shall  not  file  proposed tariff sheets seeking, or
15    otherwise  petition  the  Commission  for,  reinstatement  or
16    adoption  of a fuel adjustment clause until the expiration of
17    the power  purchase agreement referred to in  subsection  (c)
18    or  any  successor    agreements,  and  in  no event prior to
19    January 1, 2005.
20        (c)  The electric  utility  shall  be  entitled,  without
21    Commission   review   or   approval,  to  purchase  from  the
22    transferee  capacity, power, and electricity of  or  produced
23    by  the  transferred    property,  plant,  and  equipment, or
24    substitute capacity, power, or  electricity, in  the  amounts
25    and  at  the rates, terms and  conditions provided in a power
26    purchase agreement which shall  have been approved or allowed
27    to  become  effective  by  the  Federal    Energy  Regulatory
28    Commission.  The amounts, rates, terms and  conditions in the
29    power  purchase  agreement  shall  not   be   subject      to
30    disallowance   or  modification  by  the  Commission  in  any
31    proceeding to set the electric utility's rates so long as the
32    electric utility does not have a fuel  adjustment  clause  in
33    effect.
34        (d)  Notwithstanding  the  operation of any other Section
                            -23-               LRB9000199JSgc
 1    of  this  amendatory  Act  of  1997,  the     provisions   of
 2    subsections  (a),  (b),  (c),  (d),  (e), and (f) of  Section
 3    16-111 added to this Act  by  this  amendatory  Act  of  1997
 4    shall  be applicable to any electric utility that has sold or
 5    leased property, plant, and equipment used in the  generation
 6    of  electricity pursuant to this Section.
 7        (e)  Other than those approvals expressly provided for in
 8    this  Section,  the electric utility shall not be required to
 9    obtain the approval of  the  Commission  for  the  contracts,
10    agreements and transactions specified in this Section.
11        (f)  The  transferee  shall  not,  as  a  result  of  the
12    contracts,    agreements,  and transactions specified in this
13    Section, be deemed  a "public utility" as defined in  Section
14    3-105 of this Act.
15        (g)  Nothing  in  this  Section shall require an electric
16    utility to use the procedures specified in  this  Section  to
17    sell    or  lease  property,  plant, or equipment used in the
18    generation of  electricity, or  any  portion  thereof,  to  a
19    subsidiary  of  the    electric utility, to a subsidiary of a
20    holding company owning the  electric utility, or to any other
21    entity.  Any other procedure  available under this  Act  may,
22    at  the electric utility's election,  be used for such a sale
23    or lease.
24        (h)  Nothing in this Section shall change any requirement
25    under the jurisdiction of the Illinois Department of  Nuclear
26    Safety including, but not limited to, the payment of fees.
27        (220 ILCS 5/8-503) (from Ch. 111 2/3, par. 8-503)
28        Sec.  8-503.  Whenever  the  Commission, after a hearing,
29    shall   find   that   additions,   extensions,   repairs   or
30    improvements  to,  or  changes  in,   the   existing   plant,
31    equipment,  apparatus,  facilities or other physical property
32    of any public  utility  or  of  any  2  two  or  more  public
33    utilities  are  necessary  and ought reasonably to be made or
                            -24-               LRB9000199JSgc
 1    that a new structure or structures is or  are  necessary  and
 2    should  be erected, to promote the security or convenience of
 3    its employees or the public, or in any other  way  to  secure
 4    adequate service or facilities, the Commission shall make and
 5    serve  an order authorizing or directing that such additions,
 6    extensions, repairs, improvements or changes be made, or such
 7    structure or structures be erected at the  location,  in  the
 8    manner and within the time specified in said order; provided,
 9    however,    that  the  Commission  shall have no authority to
10    order the    construction,  addition,  or  extension  of  any
11    electric generating  plant unless the public utility requests
12    a  certificate for the  construction of the plant pursuant to
13    Section 8-406 and in    conjunction  with  the  request  also
14    requests  the  entry  of an order  under this Section. If any
15    additions, extensions, repairs, improvements or  changes,  or
16    any  new  structure  or  structures, which the Commission has
17    authorized or ordered to be erected, require joint action  by
18    2  two  or more public utilities, the Commission shall notify
19    the said public utilities that  such  additions,  extensions,
20    repairs,   improvements   or  changes  or  new  structure  or
21    structures have been authorized or ordered and that the  same
22    shall  be  made  at  the joint cost whereupon the said public
23    utilities shall have such reasonable time as  the  Commission
24    may  grant  within  which  to agree upon the apportionment or
25    division of cost  of  such  additions,  extensions,  repairs,
26    improvements or changes or new structure or structures, which
27    each  shall  bear.  If  at  the  expiration of such time such
28    public utilities shall fail to file  with  the  Commission  a
29    statement  that  an agreement has been made for a division or
30    apportionment of the  cost  or  expense  of  such  additions,
31    extensions,   repairs,   improvements   or  changes,  or  new
32    structure or structures, the Commission shall have authority,
33    after further hearing, to make an order fixing the proportion
34    of such cost or expense to be borne by  each  public  utility
                            -25-               LRB9000199JSgc
 1    and the manner in which the same shall be paid or secured.
 2        Nothing  in  this  Act shall prevent the Commission, upon
 3    its own motion or  upon  petition,  from  ordering,  after  a
 4    hearing,   the   extension,   construction,   connection   or
 5    interconnection  of  plant, equipment, pipe, line, facilities
 6    or other physical property of a public  utility  in  whatever
 7    configuration  the  Commission finds necessary to ensure that
 8    natural gas is made available to consumers  at  no  increased
 9    cost to the customers of the utility supplying the gas.
10        Whenever  the Commission finds, after a hearing, that the
11    public convenience or necessity requires it,  the  Commission
12    may  order  public  utilities  subject to its jurisdiction to
13    work  jointly  (1)  for  the  purpose   of   purchasing   and
14    distributing  natural  gas  or  gas  substitutes, provided it
15    shall not increase the cost of gas to the  customers  of  the
16    participating  utilities,  or  (2)  for  any other reasonable
17    purpose.
18    (Source: P.A. 84-617.)
19        (220 ILCS 5/8-510) (from Ch. 111 2/3, par. 8-510)
20        Sec. 8-510. Land surveys.  For the purpose of making land
21    surveys,  any  public  utility  that  has  been   granted   a
22    certificate  of  public  convenience  and  necessity  by,  or
23    received  an  order under Section 8-503 of this Act from, the
24    Commission may, 30 days after providing written notice to the
25    owner thereof by registered mail, enter upon the property  of
26    any  owner  who has refused permission for entrance upon that
27    property, but subject to responsibility for all damages which
28    may be inflicted thereby.
29    (Source: P.A. 84-617.)
30        (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220)
31        Sec. 9-220. Rate changes based on in fuel costs.
32    (a)  Notwithstanding the provisions  of  Section  9-201,  the
                            -26-               LRB9000199JSgc
 1    Commission  may  authorize  the increase or decrease of rates
 2    and charges based upon changes in the cost of  fuel  used  in
 3    the  generation  or  production of electric power, changes in
 4    the cost of purchased  power,  or  changes  in  the  cost  of
 5    purchased  gas  through  the  application  of fuel adjustment
 6    clauses or purchased gas adjustment clauses.  The  Commission
 7    may  also  authorize  the  increase  or decrease of rates and
 8    charges based upon expenditures or  revenues  resulting  from
 9    the purchase or sale of emission allowances created under the
10    federal  Clean  Air  Act  Amendments  of  1990, as defined in
11    Section 8-402.1, through such fuel adjustment clauses,  as  a
12    cost  of  fuel.   For the purposes of this paragraph, cost of
13    fuel used in the generation or production of  electric  power
14    shall  include the amount of any fees paid by the utility for
15    the  implementation  and  operation  of  a  process  for  the
16    desulfurization of the flue gas when burning high sulfur coal
17    at any location within the State of Illinois irrespective  of
18    the  attainment  status  designation of such location, except
19    for any fees or costs related to a service contract which  is
20    part  of  a  utility's Clean Air Act compliance plan approved
21    pursuant to Section 8-402.1, to the extent that  recovery  of
22    comparable costs would not be permitted under this Section if
23    incurred  directly  by  a utility owning and operating such a
24    facility; but shall not include transportation costs of  coal
25    (i)  except to the extent  that for contracts entered into on
26    and after the effective date  of this amendatory Act of 1997,
27    the cost  of  the  coal,  including    transportation  costs,
28    constitutes  the  lowest cost for adequate  and reliable fuel
29    supply  reasonably  available  to  the  public    utility  in
30    comparison to the cost, including transportation   costs,  of
31    other   adequate   and   reliable   sources  of  fuel  supply
32    reasonably available to the public utility, or (ii) except as
33    otherwise provided in the next 3 sentences of this paragraph.
34    Such costs of fuel shall, when requested by a utility  or  at
                            -27-               LRB9000199JSgc
 1    the  conclusion  of  the utility's next general electric rate
 2    proceeding,   whichever   shall    first    occur,    include
 3    transportation  costs  of  coal purchased under existing coal
 4    purchase contracts.  For purposes of this paragraph "existing
 5    coal purchase contracts" means contracts for the purchase  of
 6    coal  in  effect on the effective date of this amendatory Act
 7    of 1991, as such contracts may  thereafter  be  amended,  but
 8    only  to the extent that any such amendment does not increase
 9    the aggregate quantity of coal to  be  purchased  under  such
10    contract. Nothing herein shall authorize an  electric utility
11    to recover through its fuel adjustment clause  any amounts of
12    transportation  costs  of  coal  that  were  included in  the
13    revenue requirement used to set base rates in its most recent
14    general rate proceeding. Cost shall be based  upon  uniformly
15    applied accounting principles. Annually, the Commission shall
16    initiate  public  hearings  to  determine whether the clauses
17    reflect  actual  costs  of  fuel,   gas,   power,   or   coal
18    transportation  purchased to determine whether such purchases
19    were prudent, and to reconcile any amounts collected with the
20    actual costs of fuel,  power,  gas,  or  coal  transportation
21    prudently  purchased.  In each such proceeding, the burden of
22    proof shall be upon the utility  to  establish  the  prudence
23    prudency   of   its   cost  of  fuel,  power,  gas,  or  coal
24    transportation purchases and costs.
25        (b)  A public utility providing electric service  may  at
26    any    time  during the mandatory transition period file with
27    the Commission proposed  tariff  sheets  that  eliminate  the
28    public  utility's    fuel  adjustment  clause  and adjust the
29    public utility's base rate  tariffs to provide  for  recovery
30    of  the  power  supply  costs that  would have been recovered
31    under  the  clause.   Notwithstanding     any   contrary   or
32    inconsistent  provisions  in  Section  9-201 of this  Act, in
33    subsection  (a),  of  this  Section,  or  in  any  rules   or
34    regulations   promulgated   by  the  Commission  pursuant  to
                            -28-               LRB9000199JSgc
 1    subsection  (e) of this Section, the Commission shall  review
 2    and  shall  by    order  approve, or approve as modified, the
 3    proposed tariff sheets  on the  basis  and  within  the  time
 4    period  specified  in  subsection   (b) of Section 7-102.5 of
 5    this Act.  During the 5 years   following  the  date  of  the
 6    Commission's order, but in any event no  earlier than January
 7    1,  2005,  a public utility whose fuel  adjustment clause has
 8    been eliminated pursuant to this subsection  shall  not  file
 9    proposed  tariff  sheets  seeking,  or otherwise petition the
10    Commission for, reinstatement of a fuel adjustment  clause.
11        (c)  Notwithstanding   any   contrary   or   inconsistent
12    provisions in Section 9-201 of this Act, in subsection (a) of
13    this Section, or in any rules or regulations  promulgated  by
14    the Commission  pursuant to subsection (e) of this Section, a
15    public  utility    providing electric service may at any time
16    during  the  mandatory    transition  period  file  with  the
17    Commission proposed tariff sheets  that  establish  the  rate
18    per  kilowatt-hour  to  be  applied  pursuant  to the  public
19    utility's fuel adjustment clause at  the  average  value  for
20    such  rate during the preceding 12 months, provided that such
21    average rate results in a credit to customers' bills, without
22    making any  revisions  to  the  public  utility's  base  rate
23    tariffs.     The  proposed  tariff sheets shall establish the
24    fuel adjustment  rate for a specific time period of at  least
25    3  years  but not more  than 5 years, provided that the terms
26    and conditions for any  reinstatement earlier  than  5  years
27    shall be set forth in the  proposed tariff sheets and subject
28    to   modification  or  approval  by    the  Commission.   The
29    Commission shall review and  shall  by  order    approve  the
30    proposed  tariff sheets if it finds that the  requirements of
31    this subsection are met.  The Commission shall   not  conduct
32    the hearings specified in the last 2 sentences of  subsection
33    (a)  of this Section for the utility for the period  that the
34    factor established pursuant to this subsection is in  effect.
                            -29-               LRB9000199JSgc
 1        (d)  A public utility providing electric or  gas  service
 2    may    file  with  the Commission proposed tariff sheets that
 3    eliminate    the  public  utility's  fuel  or  purchased  gas
 4    adjustment clause and  adjust the public utility's base  rate
 5    tariffs to provide for  recovery of power supply costs or gas
 6    supply  costs  that  would   have been recovered through such
 7    clause.   Notwithstanding  any    contrary  or   inconsistent
 8    provisions  in  Section 9-201 of this Act,  in subsection (a)
 9    of this Section, or in any rules or regulations   promulgated
10    by   the  Commission  pursuant  to  subsection  (e)  of  this
11    Section, the Commission  shall  review  and  shall  by  order
12    approve,    or approve as modified in the Commission's order,
13    the proposed  tariff sheets within 180 days after the date of
14    the public  utility's filing.  The Commission's  order  shall
15    approve  rates  and    charges  that the Commission, based on
16    information in the public  utility's filing or on the  record
17    if  a  hearing is held by the  Commission, finds will recover
18    the reasonable and necessary    jurisdictional  power  supply
19    costs  or gas supply costs incurred or  to be incurred by the
20    public utility during  a  12  month  period    found  by  the
21    Commission  to  be appropriate for these purposes,  provided,
22    that such period shall be either (i) a 12 month    historical
23    period  occurring during the 15 months ending on the  date of
24    the public utility's  filing,  or  (ii)  a  12  month  future
25    period  ending  no later than 15 months following the date of
26    the  public utility's  filing.   If  the  Commission's  order
27    requires    modifications  in  the tariff sheets filed by the
28    public utility,    the  public  utility  shall  have  7  days
29    following  the  date  of  the  order to notify the Commission
30    whether the public  utility  will    implement  the  modified
31    tariffs  or  elect  to  continue  its  fuel or purchased  gas
32    adjustment clause in  force  as  though  no  order  had  been
33    entered.   The    Commission's  order  shall  provide for any
34    reconciliation of power  supply costs or gas supply costs, as
                            -30-               LRB9000199JSgc
 1    the case may be, and  associated revenues  through  the  date
 2    that  the  public utility's  fuel or purchased gas adjustment
 3    clause is eliminated.  During  the 5 years following the date
 4    of the Commission's order, a  public utility  whose  fuel  or
 5    purchased gas adjustment clause has  been eliminated pursuant
 6    to  this  subsection  shall  not file  proposed tariff sheets
 7    seeking,  or  otherwise  petition  the      Commission   for,
 8    reinstatement  or  adoption  of  a  fuel  or  purchased   gas
 9    adjustment clause.
10        (e)  The Commission shall have  authority  to  promulgate
11    rules  and  regulations  to  carry out the provisions of this
12    Section paragraph.
13    (Source: P.A. 87-173; 88-488.)
14        (220 ILCS 5/10-103) (from Ch. 111 2/3, par. 10-103)
15        Sec. 10-103. Ex parte communications.
16        (a)  In  all  proceedings,  investigations  or   hearings
17    conducted  by  the  Commission,  except in the disposition of
18    matters which the Commission is authorized  to  entertain  or
19    dispose  of  on  an  ex parte basis, any finding, decision or
20    order made by the Commission shall be  based  exclusively  on
21    the record for decision in the case, which shall include only
22    the  transcript  of  testimony and exhibits together with all
23    papers and requests filed in the  proceeding,  including,  in
24    contested  cases,  the documents and information described in
25    Section 10-35 of the Illinois Administrative Procedure Act.
26        The  provisions  of  Section  10-60   of   the   Illinois
27    Administrative   Procedure   Act   shall  apply  in  full  to
28    Commission  proceedings,  including  ratemaking  cases,   any
29    provision of the Illinois Administrative Procedure Act to the
30    contrary   notwithstanding   except   as   modified   by  the
31    following:.
32             (1)  The  provisions  of  Section  10-60  shall  not
33        apply,  however,  to  communications  between  Commission
                            -31-               LRB9000199JSgc
 1        employees who are engaged in investigatory, prosecutorial
 2        or  advocacy  functions  and   other   parties   to   the
 3        proceeding,  provided  that such Commission employees are
 4        still prohibited from communicating on an ex parte basis,
 5        as designated in Section 10-60, directly  or  indirectly,
 6        with  members  of the Commission, any hearing examiner in
 7        the proceeding, or any Commission employee who is or  may
 8        reasonably  be  expected to be involved in the decisional
 9        process of the proceeding.
10             (2)  In any contested case  before  the  Commission,
11        including  ratemaking cases, after the case is deemed "at
12        issue",   no  (i)  commissioner,  (ii)  hearing  examiner
13        assigned  to  preside    over  the  proceeding,  or (iii)
14        Commission employee assigned to  assist a commissioner or
15        hearing examiner in rendering a proposed  or final  order
16        in   the   proceeding,  shall  communicate,  directly  or
17        indirectly, with any other person concerning any issue of
18        fact or  law in the proceeding, except  upon  notice  and
19        opportunity  for  all   parties to participate; provided,
20        however, that  this  requirement    shall  not  apply  to
21        communications  between  a commissioner and a  Commission
22        employee assigned to assist the commissioner, or  between
23        a hearing examiner and a Commission employee assigned  to
24        assist the examiner.  For purposes of this paragraph (2),
25        a  case    shall  be  deemed "at issue" when a party or a
26        representative of  the Commission  staff  first  files  a
27        pleading  (including  a petition  for leave to intervene)
28        or written evidence asserting a position  on an issue  of
29        fact  or law in opposition to that proposed by the  party
30        or  parties  initiating  the  case  or  to  that  of  the
31        respondent  in a case initiated by the Commission.
32             (3)  The provisions of Section 10-60 of the Illinois
33        Administrative  Procedure  Act   shall   not   apply   to
34        proceedings    before the Commission that are intended to
                            -32-               LRB9000199JSgc
 1        lead to the  establishment of policies, practices, rules,
 2        or programs  applicable to more than one utility  and  to
 3        result  in  the    publication  and  adoption  of  a rule
 4        pursuant to the "rulemaking"  provisions of the  Illinois
 5        Administrative Procedure Act.
 6        (b)  Any  commissioner,  any hearing examiner assigned to
 7    preside over the proceeding, or any other Commission employee
 8    who has been assigned to assist  a  commissioner  or  hearing
 9    examiner in  rendering a proposed or final order in is or may
10    reasonably  be  expected  to  be  involved  in the decisional
11    process of a  proceeding,  who  receives,  or  who  makes  or
12    knowingly  causes  to  be made, a communication prohibited by
13    Section 10-60 of the Illinois Administrative Procedure Act as
14    modified by this Section, shall place on the public record of
15    the proceeding (1) any and all such written communications;
16             (2)  memoranda stating the substance of any and  all
17        such  oral  communications;  and  (3) any and all written
18        responses and memoranda stating the substance of any  and
19        all  oral responses to the materials described in clauses
20        (1) and (2).
21        (c)  The  Commission,  or  any  commissioner  or  hearing
22    examiner presiding over the proceeding, shall in the event of
23    a  violation  of  this  Section,  take  whatever  action   is
24    necessary  to  ensure  that such violation does not prejudice
25    any  party  or  adversely  affect   the   fairness   of   the
26    proceedings.
27    (Source: P.A. 88-45.)
28        (220 ILCS 5/10-113) (from Ch. 111 2/3, par. 10-113)
29        Sec. 10-113. Rescission or hearing of order.
30        (a)  Anything    in    this    Act    to   the   contrary
31    notwithstanding, the Commission may at any time, upon  notice
32    to  the  public utility affected, and after opportunity to be
33    heard as provided in the case of complaints,  rescind,  alter
                            -33-               LRB9000199JSgc
 1    or  amend any rule, regulation, order or decision made by it.
 2    Any order rescinding, altering  or  amending  a  prior  rule,
 3    regulation,  order  or  decision  shall, when served upon the
 4    public utility affected, have the same effect  as  is  herein
 5    provided   for   original   rules,   regulations,  orders  or
 6    decisions. Within 30 days after the service of  any  rule  or
 7    regulation,  order or decision of the Commission any party to
 8    the action or proceeding may apply for a rehearing in respect
 9    to any matter determined in said  action  or  proceeding  and
10    specified  in  the  application for rehearing. The Commission
11    shall receive and consider such application and  shall  grant
12    or  deny  such application in whole or in part within 20 days
13    from the date of the receipt thereof by  the  Commission.  In
14    case  the application for rehearing is granted in whole or in
15    part the Commission shall proceed as promptly as possible  to
16    consider  such  rehearing  as  allowed.  No  appeal  shall be
17    allowed from any rule, regulation, order or decision  of  the
18    Commission  unless  and  until an application for a rehearing
19    thereof shall first have been filed with and finally disposed
20    of by the Commission: provided, however,  that  in  case  the
21    Commission  shall  fail to grant or deny an application for a
22    rehearing in whole or in part within 20 days from the date of
23    the receipt thereof, or shall fail to  enter  a  final  order
24    upon  rehearing  within  150  days  after  such  rehearing is
25    granted, the application for rehearing  shall  be  deemed  to
26    have  been  denied  and  finally disposed of, and an order to
27    that effect shall be deemed to  have  been  served,  for  the
28    purpose  of  an  appeal  from  the rule, regulation, order or
29    decision  covered  by  such   application.   No   person   or
30    corporation in any appeal shall urge or rely upon any grounds
31    not  set forth in such application for a rehearing before the
32    Commission. An application for rehearing shall not excuse any
33    corporation or person from complying  with  and  obeying  any
34    rule, regulation, order or decision or any requirement of any
                            -34-               LRB9000199JSgc
 1    rule,   regulation,  order  or  decision  of  the  Commission
 2    theretofore made,  or  operate  in  any  manner  to  stay  or
 3    postpone  the  enforcement  thereof, except in such cases and
 4    upon such terms as the Commission may by  order  direct.  If,
 5    after  such  rehearing  and  consideration  of all the facts,
 6    including  those  arising  since  the  making  of  the  rule,
 7    regulation, order or decision, the Commission shall be of the
 8    opinion that the original rule, regulation, order or decision
 9    or any part thereof is in any respect unjust or  unwarranted,
10    or  should  be  changed, the Commission may rescind, alter or
11    amend the same. A rule, regulation, order  or  decision  made
12    after  such  rehearing,  rescinding, altering or amending the
13    original rule, regulation, order or decision shall  have  the
14    same  force and effect as an original rule, regulation, order
15    or  decision,  but  shall  not  affect  any  right   or   the
16    enforcement  of  any  right  arising from or by virtue of the
17    original  rule,  regulation,  order  or  decision  unless  so
18    ordered by  the  Commission.  Only  one  rehearing  shall  be
19    granted by the Commission; but this shall not be construed to
20    prevent any party from filing a petition setting up a new and
21    different  state  of  facts  after  2 years, and invoking the
22    action of the Commission thereon.
23        (b)  Notwithstanding   any   contrary   or   inconsistent
24    provision  in the Illinois Administrative Procedure Act,  the
25    Commission  may,  in    accordance  with this Section, make a
26    change in a rule or  regulation adopted or modified  pursuant
27    to  Section  5-40  of  the  Illinois Administrative Procedure
28    Act, upon consideration of an  application for  rehearing  of
29    the   Commission's   order   directing    that  the  rule  or
30    regulation  be  filed  with  the  Secretary  of  State    and
31    published in the Illinois Register pursuant to subsection (d)
32    of Section 5-40.  If the Commission makes such a  substantive
33    change in the rule or regulation pursuant to this subsection,
34    it    shall  provide  notice  of the amendment to the rule or
                            -35-               LRB9000199JSgc
 1    regulation  to the Joint Committee on Administrative Rules in
 2    accordance with  subsection (c) of Section  5-40,  and  shall
 3    thereafter comply with  the requirements of subsection (d) of
 4    Section  5-40  with  respect    to  the rule or regulation as
 5    amended.  The provisions of  subsection (e) of  Section  5-40
 6    of  the  Illinois  Administrative  Procedure    Act shall not
 7    operate to prohibit adoption of any amendment to a   rule  or
 8    regulation  of  the  Commission  upon rehearing in accordance
 9    with this subsection.
10    (Source: P.A. 84-617.)
11        (220 ILCS 5/10-114 new)
12        Sec. 10-114. Settlement of proceedings.   The  Commission
13    is    authorized  to  adopt,  by  order,  both  contested and
14    uncontested  settlements of matters at issue  in  proceedings
15    before it so long  as the following requirements are met: (i)
16    the  parties  to  the  settlement agreement shall include (A)
17    each public utility, and  each non-utility electric  supplier
18    as  defined  in  Section  16-102    of this Act, that will be
19    required by the Commission's order in  the proceeding to take
20    or refrain from taking any action, and (B)    in  a  case  in
21    which  there  are  5  or  more  active  parties,  at  least 3
22    parties, that have, or represent  persons  or    corporations
23    that  have,  substantial  but  differing  interests  in   the
24    outcome of the proceeding; (ii) if the  settlement  agreement
25    is   not  signed  by  all  parties  to  the  proceeding,  the
26    Commission  shall hold a hearing, prior to issuing  an  order
27    authorized  by    this Section, at which any parties opposing
28    the settlement  agreement shall have  an  opportunity  to  be
29    heard;  and  (iii)  the  resulting finding, rule, regulation,
30    order or  decision  shall    address  a  subject  within  the
31    Commission's   statutory   jurisdiction,    but  may  involve
32    requirements applicable to a public utility or    non-utility
33    electric supplier that the Commission would not,  absent such
                            -36-               LRB9000199JSgc
 1    party's  agreement  to the proposed settlement,  otherwise be
 2    empowered to impose.
 3        (220 ILCS 5/Art. XVI heading new)
 4            ARTICLE XVI.  ELECTRIC SERVICE TRANSITION AND
 5                         CUSTOMER CHOICE LAW
 6        (220 ILCS 5/16-101 new)
 7        Sec. 16-101.  Title and applicability.  This Article  may
 8    be    cited  as  the Electric Service Transition and Customer
 9    Choice Law  of 1997 and shall apply to electric utilities and
10    non-utility  electric suppliers as defined in  this  Article.
11    Except  to  the    extent  modified  or  supplemented  by the
12    provisions of this  Article, the other Articles of  this  Act
13    pertaining  to  public    utilities, public utility rates and
14    services, and the regulation  thereof, are fully and  equally
15    applicable  to  the  tariffed    services  electric utilities
16    provide, except where  the  context    clearly  renders  such
17    provisions inapplicable.
18        (220 ILCS 5/16-102 new)
19        Sec.  16-102.   Definitions.   For  the  purposes of this
20    Article  the following terms shall be defined as set forth in
21    this  Section.
22        "Base rates" means the rates for those tariffed  services
23    that  the  electric  utility is required to offer pursuant to
24    subsection (a) of Section 16-103 and that were, or would have
25    been used had they  been  offered,  to  collect  an  electric
26    utility's    base  rate  revenue  requirement  prior  to  the
27    effective  date  of  this   amendatory Act of 1997, excluding
28    separate automatic rate  adjustment riders, special  contract
29    rates,  delivery  services  tariffs filed pursuant to Section
30    16-103, real time pricing, or  tariffs that  were  in  effect
31    prior  to October 1, 1996 and that  based charges for service
                            -37-               LRB9000199JSgc
 1    on an index or average of other  utilities' charges.
 2        "Competitive service" includes (i) any service  that  the
 3    Commission has declared to be competitive pursuant to Section
 4    16-113    of  this  Act,  (ii)  contract  service,  and (iii)
 5    services, other  than tariffed services, that are related to,
 6    but not necessary  for the provision of tariffed services.
 7        "Contract service"  means  (1)  services,  including  the
 8    provision  of  electric  power  and energy or other services,
 9    that  are provided by mutual agreement  between  an  electric
10    utility  and    a  retail  customer  that  is  located in the
11    electric utility's   service  area  provided,  that  delivery
12    services shall not be a  contract service until such services
13    are  declared  competitive    pursuant to Section 16-103; and
14    also means (2) the provision of  electric power and energy by
15    an electric utility to retail  customers outside the electric
16    utility's service area pursuant to  subsection (c) of Section
17    16-103.   Provided,  however,  contract    service  does  not
18    include electric utility services provided  pursuant  to  (i)
19    contracts that retail customers are required to  execute as a
20    condition  of  receiving  tariffed  services,  or (ii)  other
21    contracts for electric utility services entered into  between
22    an electric utility  and  a  retail  customer  prior  to  the
23    effective date of this amendatory Act of 1997.
24        "Delivery  services" means those services provided by the
25    electric  utility  that  are  necessary  in  order  for   the
26    transmission    and  distribution systems to function so that
27    retail customers  located in the electric  utility's  service
28    area  can  receive   electric power and energy from suppliers
29    other than the electric  utility.
30        Electric utility" means a public utility, as  defined  in
31    Section  3-105  of  this  Act, that has a franchise, license,
32    permit  or right to furnish or  sell  electricity  to  retail
33    customers.
34        "Mandatory  transition  period" means the period from the
                            -38-               LRB9000199JSgc
 1    effective date of this amendatory Act of 1997 through January
 2    1,  2005.
 3        "Non-utility  electric  supplier"  means  every   person,
 4    cooperative,  corporation,  municipal  corporation,  company,
 5    association,    joint  stock  company  or  association, firm,
 6    partnership,  individual, or  other  entity,  their  lessees,
 7    trustees,  or    receivers appointed by any court whatsoever,
 8    that offers electric  power or energy for sale, lease, or  in
 9    exchange  for  other  value    received to one or more retail
10    customers, or that engages in the  delivery or furnishing  of
11    electric power or energy to such retail  customers, and shall
12    include  resellers,  aggregators  and  power   marketers, but
13    shall not include (i) electric utilities (or any    agent  of
14    the  electric  utility  to  the  extent  the electric utility
15    provides tariffed services to retail customers  through  that
16    agent),   or  (ii)  any  electric  cooperative  or  municipal
17    corporation    to  the  extent  that  it  is  serving  retail
18    customers within any area    in  which  it  is  or  would  be
19    entitled  to  provide  service  under  the    law  in  effect
20    immediately  prior  to the effective date of this  amendatory
21    Act of 1997, (iii) any retail customer to the  extent    that
22    customer  obtains  its electric power and energy from its own
23    cogeneration or self-generation facilities or (iv) any entity
24    that sells or arranges for the installation  of  cogeneration
25    or    self-generation  facilities  to  be  owned  by a retail
26    customer  described in subparagraph (iii), but  only  to  the
27    extent  the    entity  is engaged in selling or arranging for
28    such installation.
29        "Real-time pricing" means charges for delivered  electric
30    power  and  energy  that  vary  on  an hour-to-hour basis for
31    nonresidential retail customers and that vary on  a  periodic
32    basis  during the day for residential retail customers.
33        "Retail  customer"  means  a single entity using electric
34    power  or energy at a single premises and that either (i)  is
                            -39-               LRB9000199JSgc
 1    receiving    or is eligible to receive tariffed services from
 2    an electric  utility,  or (ii) that is served by a  municipal
 3    corporation or  electric cooperative within any area in which
 4    it  is or would be  entitled to provide service under the law
 5    in effect immediately  prior to the effective  date  of  this
 6    amendatory Act of 1997.
 7        "Service area" means (i) the geographic area within which
 8    an    electric  utility  was  lawfully  entitled  to  provide
 9    electric  power    and  energy  to retail customers as of the
10    effective date of this  amendatory Act of 1997, and  includes
11    (ii)  the  location  of  any    retail  customer to which the
12    electric utility was lawfully    providing  electric  utility
13    services on such effective date.
14        "Tariffed  service"  means  services  provided  to retail
15    customers by an electric utility as defined by its  rates  on
16    file    with  the  Commission  pursuant  to the provisions of
17    Article IX of  this Act, but shall  not  include  competitive
18    services.
19        "Transition  charges"  means  a charge expressed in cents
20    per  kilowatt-hour that is calculated for a customer or class
21    of  customers as follows for each year in which  an  electric
22    utility    is  entitled  to  recover  transition  charges  as
23    provided in Section  16-108:
24             (1)  the  amount of revenue that an electric utility
25        would receive from the retail customer or customers if it
26        were serving such customers' electric  power  and  energy
27        requirements  as  a  tariffed service based on (A) all of
28        the    customers'  actual  usage  during  the   3   years
29        immediately    preceding the date on which such customers
30        were first  eligible for delivery  services  pursuant  to
31        Section  16-104,  and (B) on (i) the base rates in effect
32        on October 1, 1996  (adjusted for the reductions required
33        by subsection (b) of  Section 16-111 and any  elimination
34        of  the  fuel  adjustment  clause    pursuant to Sections
                            -40-               LRB9000199JSgc
 1        7-102.5 or  9-220)  and  any  separate    automatic  rate
 2        adjustment   riders  under  which  the  customers    were
 3        receiving or  would  have  received  electric  power  and
 4        energy   from   the  electric  utility  during  the  year
 5        immediately  preceding the date on which  such  customers
 6        were  first    eligible  for delivery service pursuant to
 7        Section 16-104, or  (ii) to the  extent  applicable,  any
 8        contract  rates, including  contracts for consolidated or
 9        aggregated billing, under  which customers were receiving
10        or would have received  electric power  and  energy  from
11        the electric utility during  such year;
12             (2)  less  the amount of revenue, other than revenue
13        from transition charges, that the electric  utility would
14        receive from such retail customers for  delivery services
15        provided by the electric  utility  and    decommissioning
16        charges  paid  by  such  customers  pursuant  to  Section
17        16-114, assuming  such  customers  were  taking  delivery
18        services  for  all  of their usage, based on the delivery
19        services and decommissioning charges  tariffs  in  effect
20        during  the year for which the transition charge is being
21        calculated and on the usage identified in paragraph (1);
22             (3)  less the market value for  the  electric  power
23        and   energy that the electric utility would have used to
24        supply  all of such customers' electric power and  energy
25        requirements,  as  a tariffed service, based on the usage
26        identified in  paragraph  (1),  with  such  market  value
27        determined in accordance with Section 16-112 of this Act;
28             (4)  less  the following amount which represents the
29        amount to be attributed to new revenue sources  and  cost
30        reductions by the electric utility through the end of the
31        period  for which transition costs are recovered pursuant
32        to  Section 16-109:
33                  (A)  for non-residential retail customers,  0.5
34             cents per kilowatt-hour  in  each  of  the  first  4
                            -41-               LRB9000199JSgc
 1             years   the   customer   is  eligible  for  delivery
 2             services,  and 0.6 cents per  kilowatt-hour  in  the
 3             fifth  year  that    the  customer  is  eligible for
 4             delivery services,  multiplied in each year  by  the
 5             usage identified in  paragraph (1); and
 6                  (B)  for   residential   retail  customers,  an
 7             amount  equal to 10% of the calculation provided for
 8             in  paragraphs (1) through (3);
 9             (5)  divided  by  the  usage   of   such   customers
10        identified      in   paragraph  (1),  provided  that  the
11        transition charge shall never be less than  zero.
12        "Unbundled service" means a component or constituent part
13    of    a  tariffed  service   which   the   electric   utility
14    subsequently offers  separately to its customers.
15        (220 ILCS 5/16-103 new)
16        Sec.  16-103.  Services provided by electric utilities to
17    customers.
18        (a)  An  electric  utility  shall  continue  offering  to
19    retail  customers each tariffed service that it offered as  a
20    distinct  and   identifiable service on the effective date of
21    this amendatory Act   of  1997  until  the   service  is  (i)
22    declared  competitive  pursuant    to Section 16-113, or (ii)
23    abandoned  pursuant  to  Section  8-508.    Nothing  in  this
24    subsection shall  be  construed  as  limiting  an    electric
25    utility's  right  to  propose,  or  the Commission's power to
26    approve, allow or order modifications in the rates, terms and
27    conditions for such services  pursuant  to  Section  7-102.5,
28    Article  IX, or Sections 16-111 and 16-117 of this Act.
29        (b)  An  electric  utility  shall also offer, as tariffed
30    services, delivery services in accordance with this  Article,
31    the   power purchase options described in Section 16-110, and
32    real-time  pricing as provided in Section 16-107.
33        (c)  An electric utility that has a tariff  on  file  for
                            -42-               LRB9000199JSgc
 1    delivery  services  may,  without  regard  to  any  otherwise
 2    applicable    tariffs  on  file,  provide  electric power and
 3    energy to one or more  retail customers located  outside  its
 4    service  area,  but  only  to    the  extent  (i) such retail
 5    customer (A) is eligible for delivery    services  under  any
 6    delivery  services  tariff  filed with the  Commission by the
 7    electric utility in whose service area the   retail  customer
 8    is  located and (B) has either elected to take  such delivery
 9    services or has paid or   contracted  to  pay  the    charges
10    specified  in  Section  16-108  and  16-114,  or (ii) if such
11    retail customer is served by a municipal electric utility  or
12    electric  cooperative,  the customer is eligible for delivery
13    services under the terms  and  conditions  for  such  service
14    established  by  the  municipal  electric utility or electric
15    cooperative serving  that  customer.   The  electric  utility
16    shall  make its contracts for provision of electric power and
17    energy   to     retail  customers  taking  delivery  services
18    available for review by  the  Staff  of  the  Commission  for
19    purposes  of  performing  audits  of    contract summaries as
20    provided in Section 16-112.  An electric  utility  may  offer
21    any  other  competitive  service to any customer  or group of
22    customers without filing contracts with or seeking   approval
23    of  the  Commission,  notwithstanding any rule or  regulation
24    that would require such approval.  The Commission  shall  not
25    increase or decrease the prices, and may not alter or  add to
26    the  terms  and  conditions  for  competitive  services, from
27    those agreed to by the electric utility and the  customer  or
28    customers.   Such  services  shall  not  be  subject  to  the
29    provisions  of Article V, VII, VIII, or IX of the Act, except
30    to  the extent  that any provisions of such Articles are made
31    applicable to  non-utility  electric  suppliers  pursuant  to
32    Section  16-115,  or  to    the  provisions  of  the Electric
33    Suppliers Act.
34        (d)  The Commission shall not require an electric utility
                            -43-               LRB9000199JSgc
 1    to  offer  any  tariffed  service  other  than  the  services
 2    required  by   subsections (a) and (b), and shall not require
 3    an electric  utility to offer any competitive service.
 4        (220 ILCS 5/16-104 new)
 5        Sec. 16-104.  Delivery services transition plan.
 6        (a)  Each electric utility shall offer delivery  services
 7    to    retail  customers  located in its service area no later
 8    than the  following dates:
 9             (1)  On or before  January  1,  2000,  the  electric
10        utility    shall  offer  delivery  services to any retail
11        customer whose  average monthly maximum electrical demand
12        on the electric  utility's system  during  the  6  months
13        with  customer's  highest  monthly maximum demands in the
14        12 months ending December 31,  1999,  equals  or  exceeds
15        11.0 megawatts.
16             (2)  On  or  before  January  1,  2001, the electric
17        utility  shall offer  delivery  services  to  any  retail
18        customer whose  average monthly maximum electrical demand
19        on  the  electric    utility's system during the 6 months
20        with the customer's  highest monthly  maximum  electrical
21        demands  in  the  12  months    ending December 31, 2000,
22        equals or exceeds 9.5 megawatts.
23             (3)  On or before  January  1,  2002,  the  electric
24        utility  shall offer delivery services to:
25                  (A)  any  retail customer whose average monthly
26             maximum electrical demand on the electric  utility's
27             system  during  the  6  months  with  the customer's
28             highest  monthly maximum electrical  demands  equals
29             or exceeds  5.0 megawatts; and
30                  (B)  any    retail   customers   under   common
31             ownership doing  business  at  3  or  more  separate
32             locations  within  the  electric  utility's  service
33             area,    if  the  average monthly maximum electrical
                            -44-               LRB9000199JSgc
 1             demand per  location for such  locations  equals  or
 2             exceeds  300  kilowatts and the aggregate coincident
 3             average maximum  monthly electrical  demand  at  all
 4             such  sites during the  6 months with the customers'
 5             highest monthly maximum  electrical  demands  equals
 6             or exceeds 5.0 megawatts, in each case during the 12
 7             months ending December 31, 2001.
 8             (4)  On  or  before  January  1,  2003, the electric
 9        utility  shall offer delivery services to:
10                  (A)  any retail customer whose average  monthly
11             maximum  electrical demand on the electric utility's
12             system during  the  6  months  with  the  customer's
13             highest    monthly maximum electrical demands equals
14             or exceeds  3.0 megawatts; and
15                  (B)  any   retail   customers   under    common
16             ownership  doing  business  at  3  or  more separate
17             locations  within  the  electric  utility's  service
18             area,  if the  average  monthly  maximum  electrical
19             demand  per    location for such locations equals or
20             exceeds 200  kilowatts and the aggregate  coincident
21             average  maximum    monthly electrical demand at all
22             such sites during the  6 months with the  customers'
23             highest  monthly  maximum  electrical demands equals
24             or exceeds 3.0 megawatts, in each case during the 12
25             months ending December 31, 2002.
26             (5)  The  electric  utility  shall  offer   delivery
27        services    on  an aggregated basis to all nonresidential
28        retail    customers  not  previously   offered   delivery
29        services    commencing  January 1, 2004, and to all other
30        retail  customers commencing January  1,  2005,  if  such
31        customers'    aggregated  load  meets  the  criteria  for
32        delivery  of electric  power and energy applicable to the
33        electric utility  established by the regional reliability
34        council to which the  electric  utility  belongs,  by  an
                            -45-               LRB9000199JSgc
 1        independent  transmission   system operating organization
 2        to which the electric utility   belongs,  or  by  another
 3        organization  responsible  for   overseeing the integrity
 4        and reliability of the  transmission    system,  as  such
 5        criteria   are  in  effect  from  time  to  time.     The
 6        Commission may adopt rules and regulations governing  the
 7        criteria for aggregation of the loads referred to in this
 8        paragraph   (5)  utilizing  delivery  services,  but  its
 9        failure  to do so shall not  preclude  any  customer  who
10        otherwise  meets   the requirements of this paragraph (5)
11        from electing  delivery services.  For purposes  of  this
12        paragraph  (5),  "aggregated  basis"  shall  include  any
13        voluntary  grouping  of   customers having a common agent
14        with contractual authority  to  purchase  electric  power
15        and  energy  and  delivery  services    on  behalf of all
16        customers in the grouping.  For  purposes  of  paragraphs
17        (3)(B)  and  (4)(B)  of this subsection  (a), an electric
18        utility may define "common ownership" to exclude    sites
19        that  are  not  part of the same business, provided, that
20        auxiliary  establishments  as  defined  in  the  Standard
21        Industrial  Classification Manual published by the United
22        States Government  Office of Management and Budget  shall
23        not be excluded.
24        (b)  If  data  does  not  exist  on  a  retail customer's
25    maximum  monthly electrical demands, the customer  may  elect
26    delivery   services in accordance with the schedule set forth
27    in subsection  (a) if, in the electric  utility's  reasonable
28    judgement,   there   is    sufficient  other  information  to
29    demonstrate  that  the  customer's    electrical  demand   is
30    consistent with the requirements of that  schedule.
31        (c)  Subject  to  the  terms  and  conditions  which  the
32    electric    utility  is entitled to impose in accordance with
33    Section 16-109,  a retail customer that is eligible to  elect
34    delivery  services   pursuant to subsection (a) may place all
                            -46-               LRB9000199JSgc
 1    or a portion of its  electric power and  energy  requirements
 2    on delivery services.
 3        (220 ILCS 5/16-105 new)
 4        Sec. 16-105.  Mandatory delivery services experiments.
 5        (a)  Each  electric  utility  in this State having system
 6    peak  demand during the 12 months ended December 31, 1995, in
 7    excess of  100  megawatts  shall  conduct  an  experiment  or
 8    experiments  for    providing  delivery  services  to  retail
 9    customers  located in the  electric utility's service area in
10    accordance with the following  requirements:
11             (1)  The   electric    utility's    experiment    or
12        experiments    shall begin no later than January 1, 1998,
13        and shall  terminate no earlier than December  31,  1999.
14             (2) (A)  The   experiment   or  experiments  of  any
15             electric utility with  more  than  1,000,000  retail
16             customers  shall  provide  the  opportunity  for the
17             scheduling and delivery of 175 megawatts  of  retail
18             customer demands in any hour in conjunction with the
19             provision of delivery services.
20                  (B)  The   experiment  or  experiments  of  any
21             electric  utility with more than  500,000  but  less
22             than  1,000,000   retail customers shall provide the
23             opportunity for  retail customers  whose  individual
24             maximum electrical  demands total, in the aggregate,
25             75 megawatts to utilize  delivery services.
26                  (C)  The experiment or experiments of any other
27             electric utility subject to the requirements of this
28             Section  shall  provide  the  opportunity for retail
29             customers in the  electric  utility's  service  area
30             whose   individual maximum electrical demands total,
31             in the  aggregate, 2% of  the  utility's  peak  load
32             during  the  12    months ended December 31, 1995 to
33             utilize delivery  services.
                            -47-               LRB9000199JSgc
 1             (3)  Any  experiment  or  other  program  or  tariff
 2        commencing prior to the effective date of this amendatory
 3        Act of 1997 and concluding no earlier than  December  31,
 4        1999,  by  which  an  electric  utility  subject  to  the
 5        requirements  of this Section offers delivery services to
 6        retail customers in its service area shall be included in
 7        determining if the electric  utility  has  fulfilled  the
 8        requirements of this Section.
 9        (b)  In   addition   to   conducting  the  experiment  or
10    experiments    required  by  subsection  (a),  each  electric
11    utility in this State  having system peak demand  during  the
12    12  months  ended  December  31,    1995,  in  excess  of 100
13    megawatts  shall  conduct  experiments  for    (i)  providing
14    delivery services to residential retail customers  located in
15    the  electric  utility's  service  area  and  (ii)  providing
16    delivery services to any retail customer  placing  additional
17    electrical  demand  on  the  electric  utility's  system of 3
18    megawatts  or more, which shall be referred to herein as  the
19    "new  load    experiment",  in  accordance with the following
20    requirements:
21             (1)  The   electric   utility's    experiment    for
22        residential    retail customers shall begin no later than
23        January 1, 2000,  and shall  terminate  no  earlier  than
24        December  31,  2004.   The   experiment shall provide the
25        opportunity for, at the  electric  utility's  discretion,
26        either (i) at least 1000  residential retail customers in
27        the  electric utility's  service area or (ii) residential
28        retail customers in the  electric utility's service  area
29        whose  individual  maximum    electrical demands total 10
30        megawatts, to utilize delivery  services on an aggregated
31        basis, provided, that the minimum   aggregated  loads  of
32        groups   of   retail  customers  participating    in  the
33        experiment shall satisfy  the  criteria  referred  to  in
34        subsection (a)(5) of Section 16-104.
                            -48-               LRB9000199JSgc
 1             (2)  The  electric  utility's  new  load  experiment
 2        shall    begin  no  later than January 1, 2000, and shall
 3        terminate no  earlier than December 31,  2002.   The  new
 4        load  experiment  shall allow any retail customer placing
 5        additional  electrical demand of 3 megawatts or  more  on
 6        the  electric  utility's system, on or after the date the
 7        experiment  begins, to utilize delivery services for such
 8        additional  demand.
 9        (c)  The electric utility shall have a delivery  services
10    tariff   on   file  with  the  Commission  for  each  of  the
11    experiments  required  by  this  Section  setting  forth  the
12    rates, terms and  conditions of the delivery services offered
13    for  purposes  of the  experiment.  For each experiment which
14    begins after the effective  date of this  amendatory  Act  of
15    1997,  such  tariff  shall  be  filed  no later than 150 days
16    prior to the date on which the experiment  is to commence and
17    shall be effective as filed 30 days prior to    the  date  on
18    which  the  experiment  is  to  begin  unless  the  tariff is
19    modified by the Commission, prior  to  such  effective  date,
20    after  notice and hearing.
21        (d)  Other  than as expressly provided in subsections (a)
22    through (c), the electric utility shall determine the  scope,
23    availability,  customer  eligibility,  and  other  terms  and
24    conditions of each experiment.  Nothing in this Section shall
25    preclude an electric utility from conducting an experiment or
26    experiments of larger  size,  or  additional  experiments  of
27    different  scope,  than prescribed in subsections (a) and (b)
28    of  this Section.   The  offering  of  an  experiment  by  an
29    electric    utility  pursuant  to  this Section to the retail
30    customers    participating  in  the   experiment,   and   the
31    participation  by  those   customers in the experiment, shall
32    not create any right in any  other retail customer  or  group
33    of  customers  to  participate  in  the    same  or a similar
34    experiment.
                            -49-               LRB9000199JSgc
 1        (220 ILCS 5/16-106 new)
 2        Sec. 16-106.  Billing  experiments.   During  the  period
 3    from  the effective date of this amendatory Act of 1997 until
 4    December  31, 2005, an electric utility may at its discretion
 5    conduct one  or more experiments for the provision or billing
 6    of  services  on a  consolidated or aggregated basis, for the
 7    provision of real-time  pricing, or other billing or  pricing
 8    experiments,  and  may include  experimental programs offered
 9    to groups of retail customers  possessing  common  attributes
10    as  defined  by the electric utility,  such as the members of
11    an organization that was established to  serve a well-defined
12    industry  group,  companies  having  multiple     sites,   or
13    closely-located  or affiliated buildings, provided that  such
14    groups exist  for  a  purpose  other  than  obtaining  energy
15    services  and  have  been in existence for at least 10 years.
16    The  offering of such a program by  an  electric  utility  to
17    retail    customers  participating  in  the  program, and the
18    participation by  those customers in the program,  shall  not
19    create  any  right  in any  other retail customer or group of
20    customers to participate in the  same or a  similar  program.
21    The  Commission  shall  allow  such    experiments to go into
22    effect upon  the  filing  by  the  electric    utility  of  a
23    statement describing the program.  Nothing contained  in this
24    Section  shall  be  deemed  to  prohibit the electric utility
25    from offering, or the Commission from approving, experimental
26    rates, tariffs, contracts, and services in addition to  those
27    allowed under this Section.
28        (220 ILCS 5/16-107 new)
29        Sec. 16-107.  Real-time pricing.
30        (a)  Each electric utility  shall file, not less than 150
31    days  prior  to the date it is to  become effective, a tariff
32    or tariffs which allow a retail  customer to elect  real-time
33    pricing one year prior to the date  the customer would become
                            -50-               LRB9000199JSgc
 1    eligible  for delivery services pursuant  to the schedule set
 2    forth in Section 16-104.  The electric  utility's  tariff  or
 3    tariffs  filed  pursuant to this Section shall  be subject to
 4    Article IX.
 5        (b)  The electric utility shall allow a  retail  customer
 6    that   generates electric power and energy for its own use to
 7    include  the  electrical  demand  served  by  the  customer's
 8    cogeneration   or      self-generation   facilities  that  is
 9    coincident  with  the  retail    customer's  maximum  monthly
10    electrical demand on the electric  utility's  system  in  any
11    determination  of  the customer's maximum  monthly electrical
12    demand for  purposes  of  determining  whether  the    retail
13    customer  is  eligible  to elect real-time pricing, provided,
14    that the electric utility shall be entitled to  require  that
15    the    retail  customer  place  its entire electric power and
16    energy    requirement,  including   the   portion   of   such
17    requirement  obtained    from  the customer's cogeneration or
18    self-generation  facility,  on     the   electric   utility's
19    real-time  pricing  tariff  as  a  condition  of    receiving
20    real-time pricing pursuant to this Section.
21        (220 ILCS 5/16-108 new)
22        Sec.  16-108.  Recovery of costs associated with offering
23    delivery services.
24        (a)  An electric utility shall be entitled to recover the
25    costs of providing delivery services through its  charges  to
26    its    delivery  services  customers.   For  purposes of this
27    subsection,  in    addition  to  the  costs  associated  with
28    transmission and distribution facilities,  such  costs  shall
29    include  but  not  be  limited    to:   (A) the costs of that
30    portion, if any, of  generation    facilities  used  for  the
31    production  and  absorption  of reactive  power in order that
32    retail customers located in the electric   utility's  service
33    area  can  receive  electric power and energy from  suppliers
                            -51-               LRB9000199JSgc
 1    other than the electric utility and (B) the costs, if    any,
 2    associated   with   the  use  and  redispatch  of  generation
 3    facilities to mitigate constraints  on  the  transmission  or
 4    distribution    system in order that retail customers located
 5    in the electric  utility's service area can receive  electric
 6    power  and  energy  from    suppliers other than the electric
 7    utility.  Such charges shall be   cost-based,  shall  be  set
 8    forth  in  tariffs  that  are subject to the  requirements of
 9    Article IX of this Act, and shall be recovered    from  those
10    customers  using the facilities and services associated  with
11    the costs.
12        (b)  An electric utility shall be entitled to recover the
13    costs of installing, operating and maintaining facilities for
14    the  particular benefit of  one  or  more  delivery  services
15    customers    directly  from  the retail customer or customers
16    receiving the  delivery services, to the  extent  such  costs
17    are  not  recovered  by  the electric utility pursuant to the
18    charges referred to in  subsection (a).  Such  charges  shall
19    be  cost  based  and  shall   be recovered from the customers
20    using the facilities and services  associated with the costs.
21        (c)  An  electric  utility  shall  be  entitled  but  not
22    required  to implement transition charges in conjunction with
23    the  experiments required  by  subsections  (a)  and  (b)  of
24    Section  16-105    and  the  offering  of  delivery  services
25    pursuant   to  Section  16-104.      Such  charges  shall  be
26    calculated as provided in Section 16-102   and  collected  on
27    each  kilowatt-hour  delivered  under  a  delivery   services
28    tariff to a retail customer during the experiment or for  the
29    first 5 years  following  the  date  on  which  the  customer
30    became  eligible to take delivery services in accordance with
31    Section 16-104 of this Act, except as provided in  subsection
32    (g)  of this Section.
33        (d)  The   electric   utility  shall  file  tariffs  that
34    establish  the transition charges to be paid by each class of
                            -52-               LRB9000199JSgc
 1    customers to  the electric utility in  conjunction  with  the
 2    provision  of  delivery services, provided, that such tariffs
 3    shall provide for  the calculation of transition charges on a
 4    customer-specific  basis for any retail customer that has  an
 5    average  monthly    maximum electrical demand on the electric
 6    utility's system of 3  megawatts or more as determined  under
 7    subsection   (a)(4)(A)   of  Section    16-104  for  electric
 8    utilities having more than  1,000,000    customers,  and  for
 9    other  electric  utilities  for  any  customer  that   has an
10    average monthly maximum electrical  demand  on  the  electric
11    utility's  system  of one megawatt or more, and (A) for which
12    there  exists data on the customer's usage during the 3 years
13    preceding the date that the customer became eligible to  take
14    delivery services, or (B) for which there does not exist data
15    on    the  customer's  usage during the 3 years preceding the
16    date  that the customer  became  eligible  to  take  delivery
17    services,  if   in the electric utility's reasonable judgment
18    there exists  comparable usage information  or  a  sufficient
19    basis to develop  such information, and further provided that
20    the  electric  utility    can  require customers for which an
21    individual calculation  is  made    to  sign  contracts  that
22    establish  the transition charges to be  paid by the customer
23    to the electric utility pursuant to the  tariff.
24        (e)  A retail customer that participates  in  a  delivery
25    services  experiment  offered  pursuant  to Section 16-105 of
26    this  Act shall receive credit  for  any  transition  charges
27    specifically    identified  and paid in conjunction with such
28    experiment, with  such credit to begin in the first year that
29    the customer takes  delivery  services  and  to  be  applied,
30    until exhausted, against the  transition charges the customer
31    is obligated to pay under this  Section.
32        (f)  An  electric utility shall be entitled to add to the
33    bills of delivery  services  customers  charges  pursuant  to
34    Section  9-221  and  9-222  (except  as  provided  in Section
                            -53-               LRB9000199JSgc
 1    9-222.1),  and Section 16-114 of this Act.
 2        (g)  An electric utility shall  be  entitled  to  collect
 3    transition  charges  from  retail  customers  in the electric
 4    utility's service area that do not take delivery services but
 5    that  take  electric  power  or  energy  from  a  non-utility
 6    electric  supplier or from an electric utility other than the
 7    electric  utility in  whose  service  area  the  customer  is
 8    located.   Such    charges shall be calculated, in accordance
 9    with the definition of  transition charges in Section 16-102,
10    for the period of time that  the customer would be  obligated
11    to  pay  transition  charges  if  it    were  taking delivery
12    services, except that no deduction  for    delivery  services
13    revenues  shall  be made in such calculation, and  usage data
14    from the customer's class shall be  used  where    historical
15    usage  data  is  not  available for the individual  customer.
16    The customer shall be obligated to pay such  charges  on    a
17    lump  sum  basis  on or before the date on which the customer
18    commences to  take  service  from  the  non-utility  electric
19    supplier    or  other  electric  utility,  provided, that the
20    electric utility in   whose  service  area  the  customer  is
21    located  shall  offer  the   customer the option of signing a
22    contract pursuant to which the  customer  pays  such  charges
23    ratably over the period in which the  charges would otherwise
24    have applied.
25        (h)  If a retail customer that obtains electric power and
26    energy   from   cogeneration  or  self-generation  facilities
27    installed  for its own use on  or  before  January  1,  1997,
28    subsequently  takes    service  from  a  non-utility electric
29    supplier or an electric   utility  other  than  the  electric
30    utility  in  whose  service area the  customer is located for
31    any portion of the customer's  electric    power  and  energy
32    requirements  formerly  obtained  from those  facilities, the
33    transition  charges  otherwise  applicable   pursuant      to
34    subsection  (c),  (d),  or  (g)  of this Section shall not be
                            -54-               LRB9000199JSgc
 1    applicable in any year to  that  portion  of  the  customer's
 2    electric    power  and  energy requirements formerly obtained
 3    from those  facilities, provided, that for purposes  of  this
 4    subsection  (h),    such portion shall not exceed the average
 5    number  of  kilowatt-hours    per  year  obtained  from   the
 6    cogeneration  or  self-generation    facilities  during the 3
 7    years prior to  the  date  on  which  the    customer  became
 8    eligible  for  delivery services, except as  provided in item
 9    (2) of Section 16-109.
10        (i)  An electric utility, a non-utility electric supplier
11    or  electric utility other than the electric utility in whose
12    service  area the customer is located, and a customer  served
13    by  such    non-utility  electric  supplier or other electric
14    utility, may  enter into an agreement pursuant to  which  the
15    non-utility  electric supplier or other electric utility pays
16    the  charges    specified  in subsections (a), (b), (c), (d),
17    (f), and (g) of this  Section in lieu of such  charges  being
18    recovered   by  the  electric    utility  directly  from  the
19    customer.
20        (220 ILCS 5/16-109 new)
21        Sec. 16-109.  Terms and conditions of delivery  services.
22    An    electric utility offering delivery services as provided
23    in  Sections 16-104 and 16-105 may impose the following terms
24    and    conditions  in  connection  with   offering   delivery
25    services:
26             (1)  An   electric  utility  may  require  a  retail
27        customer who  elects to (i) use  a  non-utility  electric
28        supplier  or  another   electric utility for some but not
29        all of its electric power or   energy  requirements,  and
30        (ii)  use  the  electric  utility for any  portion of its
31        remaining electric power and energy requirements,      to
32        place  the  portion  of  the customer's electric power or
33        energy  requirement that is to be served by the  electric
                            -55-               LRB9000199JSgc
 1        utility  on  a  tariff containing charges that are set to
 2        recover the lowest   reasonably  available  cost  to  the
 3        electric  utility of acquiring  electric power and energy
 4        on the wholesale electric market to  serve such remaining
 5        portion of the customer's  electric  power  and    energy
 6        requirement,  reasonable  compensation  for arranging for
 7        and  providing such electric power  or  energy,  and  the
 8        electric    utility's other costs of providing service to
 9        such remaining  electric power and energy requirement.
10             (2)  An  electric  utility  can  require  a   retail
11        customer      taking   delivery  services  that  formerly
12        generated electric power  and energy for its own use  and
13        that,  pursuant  to  subsection  (h)   of Section 16-108,
14        would not otherwise pay transition charges on  a  portion
15        of  its  electric power and energy requirements served on
16        delivery services  to  pay  transition  charges  on  that
17        portion  of    the  customer's  electric power and energy
18        requirement as a  condition of  exercising  the  delivery
19        services  customer  power   purchase options set forth in
20        subsection (b) of Section 16-110.
21             (3)  An   electric   utility   shall   provide   the
22        components of  delivery services that are subject to  the
23        jurisdiction of the  Federal Energy Regulatory Commission
24        at  the  same  prices, terms  and conditions set forth in
25        its transmission service tariff that  has  been  approved
26        or   allowed   into   effect  by  that  Commission.   The
27        Commission shall otherwise have the authority to  review,
28        approve    and modify the prices, terms and conditions of
29        the other  components to  be  included  in  the  electric
30        utility's delivery  services tariff.
31             (4)  An   electric  utility  shall  allow  a  retail
32        customer that  generates power for its own use to include
33        the electrical  demand    obtained  from  the  customer's
34        cogeneration  or  self-generation    facilities  that  is
                            -56-               LRB9000199JSgc
 1        coincident  with  the  retail customer's maximum  monthly
 2        electrical demand on the electric utility's system in any
 3        determination   of   the   customer's   maximum   monthly
 4        electrical demand  for purposes of  Sections  16-104  and
 5        16-107.
 6             (5)  A  customer  that prior to January 1, 2000, was
 7        participating in a delivery services  experiment  offered
 8        by  an electric  utility pursuant to Section 16-105 shall
 9        be entitled to continue   to  receive  delivery  services
10        between  the  termination of the  experiment and the date
11        the customer is eligible to receive    delivery  services
12        under Section 16-104, for that portion of the  customer's
13        electric  power  and  energy  requirement  using delivery
14        services during the experiment.
15        (220 ILCS 5/16-110 new)
16        Sec. 16-110.  Delivery services customer  power  purchase
17    options.
18        (a)  Each electric utility shall offer a tariffed service
19    or  services, in accordance with the terms and conditions set
20    forth    in  this  Section  pursuant  to  which  its delivery
21    services customers  may purchase electric  power  and  energy
22    from such electric  utility.
23        (b)  Except as provided in subsection (o) Section 16-112,
24    during   the    5  year  transition  charge  recovery  period
25    applicable to a  delivery services customer, a customer  that
26    is paying transition charges to the electric utility shall be
27    permitted  to    purchase  electric power and energy from the
28    electric utility at a  price or prices equal to  the  sum  of
29    (i)  the  market values that  are determined for the electric
30    utility in accordance with  Section 16-112 and  used  by  the
31    electric  utility  to  calculate  the   customer's transition
32    charges and (ii) a fee that compensates the  electric utility
33    for any administrative costs  it  incurs  in    arranging  to
                            -57-               LRB9000199JSgc
 1    supply such electric power and energy.  The electric  utility
 2    may  require  that the customer purchase such electric  power
 3    and energy for periods of not less  than  one  year  and  may
 4    also  require that the customer give up to 30 days notice for
 5    a purchase of one year's duration, and 90 day's notice for  a
 6    purchase  of  more  than  one  year's  duration.   A delivery
 7    service  customer exercising the  option  described  in  this
 8    subsection  may  sell or assign its interests in the electric
 9    power or energy that  the customer has purchased.
10        (c)  After the 5 year transition charge period applicable
11    to a delivery services customer, and until the  provision  of
12    electric  power  and  energy  is declared competitive for the
13    customer group to which  the  customer  belongs,  a  delivery
14    services    customer  that paid any transition charges it was
15    obligated  to  pay    but  is  no  longer  obligated  to  pay
16    transition charges to an  electric utility shall be permitted
17    to purchase electric power   and  energy  from  the  electric
18    utility  for  contract  periods  of  one   year at a price or
19    prices equal to the sum of (i) the market   value  determined
20    pursuant  to Section 16-112 and (ii) a fee to  compensate the
21    electric utility for the service of arranging the  supply  or
22    purchase  of  such  electric power and energy.  The  electric
23    utility may require that the delivery services customer  give
24    up to one year's notice for such a purchase.
25        (d)  After the 5 year transition charge period applicable
26    to a delivery services customer, and until the  provision  of
27    power    and  energy is declared competitive for the customer
28    group to  which the customer  belongs,  a  delivery  services
29    customer  that   paid any transition charges it was obligated
30    to pay but is no  longer obligated to pay transition  charges
31    to  an  electric  utility    shall  be  permitted to purchase
32    electric power and energy from  the    electric  utility  for
33    contract  periods  of one year at a price or  prices equal to
34    (A) the sum of (i) the electric utility's  actual    cost  of
                            -58-               LRB9000199JSgc
 1    procuring such electric power and energy and (ii) a  broker's
 2    fee  to  compensate  the  electric  utility for arranging the
 3    supply, or, if the utility so elects, (B) the market value of
 4    electric power or energy provided  by  the  electric  utility
 5    determined  as  set  forth  in the electric utility's tariff.
 6    The  electric utility may require that the delivery  services
 7    customer  give up to 30 days notice for such a purchase.
 8        (e)  Each  delivery services customer purchasing electric
 9    power and energy from the  electric  utility  pursuant  to  a
10    tariff   filed in accordance with this Section shall also pay
11    all of the  applicable charges  set  forth  in  the  electric
12    utility's  delivery    services tariffs and any other tariffs
13    applicable to the services  provided to that customer by  the
14    electric utility.
15        (220 ILCS 9/16-111 new)
16        Sec. 16-111.  Rates and restructuring transactions during
17    mandatory transition period.
18        (a)  During     the    mandatory    transition    period,
19    notwithstanding  any provision of Article IX of this Act, and
20    except as provided  in subsections (b), (c),  (d),  (e),  and
21    (f)  of this Section, the  Commission shall not (i) initiate,
22    authorize or order any change  by way of  increase,  or  (ii)
23    initiate  or,  unless  requested  by  the   electric utility,
24    authorize  or  order  any  change  by  way  of      decrease,
25    restructuring  or  unbundling,  in the rates of any  electric
26    utility that were in effect on October 1,  1996;    provided,
27    however,   that   this  subsection  shall  not  prohibit  the
28    Commission from:
29             (1) authorizing an electric utility to implement  an
30        alternative to rate of return regulation or a  regulatory
31        mechanism  that rewards or penalizes the electric utility
32        through    adjustment   of   rates   based   on   utility
33        performance, pursuant to  Section 16-117;
                            -59-               LRB9000199JSgc
 1             (2)  authorizing  an  electric  utility to eliminate
 2        its fuel adjustment  clause  and  adjust  its  base  rate
 3        tariffs  in  accordance with subsection (a)(1) of Section
 4        7-102.5 or with  subsection (b) or (d) of  Section  9-220
 5        of  this  Act  or  to  fix its  fuel adjustment factor in
 6        accordance with subsection (c) of  Section 9-220 of  this
 7        Act;
 8             (3)  ordering  into  effect  a  tariff for  delivery
 9        services in accordance with Sections  16-104  or  16-105,
10        for  real-time pricing in accordance with Section 16-107,
11        or the  options required by Section 16-110 and subsection
12        (n) of 16-112, or  allowing  a    billing  experiment  in
13        accordance with Section 16-106;
14             (4)  approving a rate restructuring that is proposed
15        by  the    electric utility within one or more individual
16        customer classes  in accordance with  subsection  (c)  of
17        this Section; or
18             (5)  ordering  or allowing into effect any tariff to
19        recover  charges pursuant to Sections  9-201.5,  9-220.1,
20        9-221,  9-222    (except as provided in Section 9-222.1),
21        16-108 or 16-114 of this  Act.
22        (b)  Notwithstanding the provisions  of  subsection  (a),
23    each  electric utility shall file tariffs reducing on each of
24    January    1, 2000, January 1, 2001, January 1, 2002, January
25    1, 2003 and  January 1, 2004 its  base  rates  by  an  amount
26    equal to 1.5% of the revenue received by the electric utility
27    from  base  rates  during the preceding 12 months.  Provided,
28    however, that any  electric utility for which a  decrease  in
29    base rates is placed  into effect between October 1, 1996 and
30    January  1, 2004, other  than pursuant to the requirements of
31    this subsection, shall be  entitled to reduce the  amount  of
32    any  reduction  or  reductions in  its base rates required by
33    this subsection which has not yet been  implemented,  by  the
34    amount of such other decrease.
                            -60-               LRB9000199JSgc
 1        (c)  During  the mandatory transition period, an electric
 2    utility may revise the structure or level of the  charges  in
 3    any  tariff by filing the revised tariff with the Commission,
 4    to be  effective upon filing, provided, (1) that the revision
 5    shall  be  designed so as not to result in an increase in the
 6    total revenues  that  would  have  been  provided  under  the
 7    tariff,  as  adjusted  for   any rate decreases in accordance
 8    with subsection (b) of this  Section, based on  usage  for  a
 9    recent 12 month historical period,  and provided further, (2)
10    either (A) that the revision shall not  result in an increase
11    of  more  than  $2.50  per  month  in  any  existing customer
12    charge, facilities charge or other fixed  monthly charge in a
13    tariff in any 12 month period and all other  charges in  such
14    tariff remain the same or decrease, or (B) that  the revision
15    shall not result in any increase in the total amount  paid by
16    any  customer  served under the tariff, as adjusted for  rate
17    decreases in accordance with subsection (b), based  on  usage
18    for  a  recent 12 month historical period.  Any tariff filing
19    pursuant to this  subsection  which  meets  the  criteria  in
20    clause (1) but does not meet the criteria in clause (2) shall
21    be subject  to review and approval by the Commission pursuant
22    to Article IX  of this Act.
23        (d)  During     the    mandatory    transition    period,
24    notwithstanding    the  provisions  of  subsection  (a),   an
25    electric  utility  may request  an increase in its base rates
26    if the electric utility  demonstrates that the 2-year average
27    of its earned rate of return  on common equity, calculated as
28    its net income applicable to  common  stock  divided  by  the
29    average  of  its  beginning  and  ending   balances of common
30    equity using data reported in the electric  utility's Form  1
31    report  to  the  Federal  Energy  Regulatory   Commission but
32    adjusted to remove the effects of accelerated    depreciation
33    or  amortization  or other transition or mitigation  measures
34    implemented by the electric utility pursuant to    subsection
                            -61-               LRB9000199JSgc
 1    (g)  of  this  Section  and  the  effect  of  any refund paid
 2    pursuant to subsection (e) of this Section, is  1.5  or  more
 3    percentage  points  below the 2-year average of the Index for
 4    the  same 2 years.  The Commission shall review the  electric
 5    utility's    request  in  accordance  with  the provisions of
 6    Article IX of this  Act.  For purposes of this subsection (d)
 7    and of subsection (e)  of this Section, the "Index" shall  be
 8    the sum of (1) the average  for the 12 months ended September
 9    30  of  each  year  1997 through  2004 of the monthly average
10    yields of 30-year U.S. Treasury bonds  published by the Board
11    of Governors of the Federal Reserve System    in  its  weekly
12    H.15  Statistical  Release or successor publication,  and (2)
13    (i) 4.00 percentage points for each of the 12-month   periods
14    ending September 30, 1997 through September 30, 1999 or  (ii)
15    5.00  percentage  points  for  each  of  the 12-month periods
16    ending September 30, 2000 through September 30, 2004.
17        (e) (1)  During the  mandatory  transition  period,  not-
18        withstanding  the  provisions  of  subsection (a), if the
19        2-year  average of an electric utility's earned  rate  of
20        return  on    common equity, calculated as its net income
21        applicable to  common stock divided by the average of its
22        beginning and  ending balances  of  common  equity  using
23        data reported in the  electric utility's Form 1 report to
24        the Federal Energy  Regulatory Commission but adjusted to
25        remove  the  effect  of    any  refund  paid  under  this
26        subsection  (e), exceeds the 2- year average of the Index
27        for the same 2 years by 1.5 or  more  percentage  points,
28        the  electric  utility  shall  make  refunds to customers
29        beginning  the  first  billing  day  of    April  in  the
30        following year in the manner described in  paragraph  (4)
31        of this subsection.
32             (2)  For  purposes  of  this subsection (e), "excess
33        earnings" means the difference  between  (A)  the  2-year
34        average  of  the electric utility's earned rate of return
                            -62-               LRB9000199JSgc
 1        on common  equity, less (B) the 2-year average of the sum
 2        of (i) the  Index applicable to each of the 2  years  and
 3        (ii)  1.5    percentage  points;  provided,  that "excess
 4        earnings" shall  never be less than zero.
 5             (3)  On or before March 31 of each year  during  the
 6        mandatory  transition period, each electric utility shall
 7        file a report with the Commission showing its earned rate
 8        of  return on common  equity,  calculated  in  accordance
 9        with  this    subsection, for the preceding calendar year
10        and the average  for the preceding 2 calendar years.
11             (4)  If an electric  utility  has  excess  earnings,
12        determined  in  accordance with paragraphs (1) and (2) of
13        this subsection, the refunds which the  electric  utility
14        shall  pay   to its customers beginning the first billing
15        day of April in  the following year shall  be  calculated
16        and applied as  follows:
17                  (i)  The  electric  utility's  excess  earnings
18             shall  be multiplied by the average of the beginning
19             and    ending  balances  of  the  electric utility's
20             common equity  for the 2-year period in which excess
21             earnings  occurred.
22                  (ii)  The result  of  the  calculation  in  (i)
23             shall    be multiplied by 0.50 and then divided by a
24             number  equal to  1  minus  the  electric  utility's
25             composite  federal and State income tax rate.
26                  (iii)  The  result  of  the calculation in (ii)
27             shall   be  divided  by  the  sum  of  the  electric
28             utility's    projected  total kilowatt-hour sales to
29             retail customers  plus projected  kilowatt-hours  to
30             be  delivered to  delivery services customers over a
31             one year period  beginning with  the  first  billing
32             date in April in the  succeeding year to determine a
33             cents per kilowatt-hour  refund factor.
34                  (iv)  The cents per kilowatt-hour refund factor
                            -63-               LRB9000199JSgc
 1             calculated   in  (iii)  shall  be  credited  to  the
 2             electric  utility's customers by applying the factor
 3             on  the     customer's   monthly   bills   to   each
 4             kilowatt-hour  sold  or    delivered until the total
 5             amount  calculated  in  (ii)  has    been  paid   to
 6             customers.
 7        (f)  During  the mandatory transition period, an electric
 8    utility may file revised tariffs reducing the  price  of  any
 9    tariffed  service  offered  by  the  electric utility for all
10    customers  taking  that  tariffed  service,  which  shall  be
11    effective  7 days after filing.
12        (g)  During the mandatory transition period, an  electric
13    utility may, without obtaining approval of the Commission and
14    notwithstanding  any  other provision of this Act or any rule
15    or  regulation of the  Commission  that  would  require  such
16    approval,    (1)  implement  a  reorganization; (2) retire or
17    remove generating  plants from  service;  (3)  sell,  assign,
18    lease,  or  otherwise    transfer  assets to an affiliated or
19    unaffiliated entity and as  part of  such  transaction  enter
20    into service agreements, power  purchase agreements, or other
21    agreements  with the transferee;  provided, however, that the
22    prices, terms and conditions of any  power purchase agreement
23    must be approved or allowed  into  effect    by  the  Federal
24    Energy  Regulatory  Commission;  or  (4) use any  accelerated
25    cost  recovery  method  including  accelerated  depreciation,
26    accelerated amortization or other capital  recovery  methods,
27    or  record  reductions  to  the  original cost of its assets;
28    provided, that this subsection shall not authorize 2 or  more
29    electric utilities to consolidate their service areas or rate
30    schedules in a manner that would result in a rate increase to
31    any    class  of  customers  served  by  any  of the electric
32    utilities,  without obtaining such approval of the Commission
33    for the    consolidation  as  may  be  required  pursuant  to
34    Articles  VII  and  IX  of this Act.  In order to implement a
                            -64-               LRB9000199JSgc
 1    reorganization, retire or    remove  generating  plants  from
 2    service,  or  sell,  assign,  lease,  or   otherwise transfer
 3    assets pursuant to this Section, the electric  utility  shall
 4    provide  the  Commission with at least 30 days notice  of the
 5    proposed reorganization or transaction,  which  notice  shall
 6    include the following information:
 7             (i)  a  complete  statement  of the entries that the
 8        electric utility will make on its books  and  records  of
 9        account    to  implement  the  proposed reorganization or
10        transaction    together  with  a  certification  from  an
11        independent  certified    public  accountant  that   such
12        entries are in accord with  generally accepted accounting
13        principles   and,  if  the    Commission  has  previously
14        approved guidelines for cost    allocations  between  the
15        utility  and  its  affiliates,  a  certification from the
16        chief accounting  officer  of  the    utility  that  such
17        entries  are  in  accord  with  those  cost    allocation
18        guidelines;
19             (ii)  a description of how the electric utility will
20        use  proceeds of any sale, assignment, lease, or transfer
21        to  retire debt or otherwise reduce or recover the  costs
22        of  services provided by such electric utility;
23             (iii)  a  list of all federal approvals or approvals
24        required from departments and  agencies  of  this  State,
25        other  than the Commission, that the electric utility has
26        or will  obtain before implementing the reorganization or
27        transaction;
28             (iv)  an  irrevocable  commitment  by  the  electric
29        utility      that  it  will  not,  as  a  result  of  the
30        transaction, impose any  stranded cost  charges  that  it
31        might  otherwise  be  allowed to  charge retail customers
32        under federal law or increase  the    transition  charges
33        that  it  is  otherwise  entitled  to collect  under this
34        Article XVI; and
                            -65-               LRB9000199JSgc
 1             (v)  if  the  electric  utility  proposes  to  sell,
 2        assign,  lease, or otherwise transfer a generating  plant
 3        that  brings    the  amount  of net dependable generating
 4        capacity transferred  pursuant to this subsection  to  an
 5        amount  equal  to  or  greater   than 15% of the electric
 6        utility's net  dependable capacity as  of  the  effective
 7        date  of  this  amendatory Act of 1997, and enters into a
 8        power purchase  agreement with the entity to  which  such
 9        generating plant is  sold, assigned, leased, or otherwise
10        transferred,   the    electric  utility  also  agrees  to
11        eliminate its fuel  adjustment clause in accordance  with
12        subsection  (b)  of    Section 9-220 for a period of time
13        equal to the length of  any such power purchase agreement
14        or successor  agreement,  or    until  January  1,  2005,
15        whichever  is  longer; if the capacity  of the generating
16        plant  so  transferred  and  related  power      purchase
17        agreement does not result in the elimination of the  fuel
18        adjustment  clause  under  this  subsection, the electric
19        utility shall agree that the costs  associated  with  the
20        transferred plant that are included in the calculation of
21        the  rate per kilowatt-hour to be applied pursuant to the
22        electric utility's fuel  adjustment  clause  during  such
23        period    shall  not  exceed  the  per kilowatt-hour cost
24        associated with  such generating plant  included  in  the
25        electric  utility's    fuel  adjustment clause during the
26        full calendar year  preceding  the  transfer,  with  such
27        limit  to be  adjusted each  year thereafter by the Gross
28        Domestic Product Implicit Price  Deflator.
29        If the electric utility proposes to  sell,  assign,    or
30    lease   generating  plant  or  its  facilities  used  in  the
31    transmission or distribution of electric power or energy,  or
32    retire   or   remove   generating   plant   from  service,  a
33    description of how  it  will  meet  its  service  obligations
34    under  this  Act in a safe and reliable manner. If at the end
                            -66-               LRB9000199JSgc
 1    of the 30 day period, the Commission is of the  opinion  that
 2    the  proposed  transaction  will render the electric  utility
 3    unable to  provide  its  tariffed  services  in  a  safe  and
 4    reliable  manner, the Commission may extend the notice period
 5    for  an additional 60 days and require the  electric  utility
 6    to  show   cause why an injunction should not issue, pursuant
 7    to Section 4-202  of  this  Act,  on  the  grounds  that  the
 8    proposed transaction  will render the electric utility unable
 9    to  provide  its  tariffed    services in a safe and reliable
10    manner.  In  initiating  any  show    cause  proceeding,  the
11    Commission shall state with specificity the  reasons that the
12    Commission believes the proposed transaction  will render the
13    electric  utility unable to provide its tariffed  services in
14    a safe  and  reliable  manner.   Prior  to  the  end  of  the
15    additional 60 day period, the Commission shall issue an order
16    either  dismissing  the  show cause proceeding or stating its
17    intent  to pursue  such  an  injunction.   Such  order  shall
18    explain  the basis  of the Commission's conclusions and shall
19    be supported by  findings of fact based on the  record.   The
20    Commission  shall  not    in  any  subsequent  proceeding  or
21    otherwise  review such a  reorganization or other transaction
22    authorized by this Section.   The requirements set  forth  in
23    this  subsection  (g)  shall  not  apply   to a sale or lease
24    implemented in accordance with Section 7-102.5  of this  Act.
25    Nothing  in  this subsection (g) shall exempt a  utility from
26    obtaining a certificate pursuant to Section 8-406  of    this
27    Act  for  the  construction  of  a  new  electric  generating
28    facility.   Nothing  in  this  subsection  (g) is intended to
29    exempt  the transactions hereunder from the operation of  the
30    federal  antitrust laws.
31        (h)  During   the   mandatory   transition   period,  the
32    Commission    shall  not  establish  or  use  any  rates   of
33    depreciation,  which  for   purposes of this subsection shall
34    include amortization, for any  electric  utility  other  than
                            -67-               LRB9000199JSgc
 1    those  established  pursuant  to    subsection (b) of Section
 2    5-104 of this Act or utilized pursuant  to subsection (g)  of
 3    this   Section.    An   electric  utility    implementing  an
 4    accelerated  cost  recovery  method  including    accelerated
 5    depreciation, accelerated  amortization  or  other    capital
 6    recovery  methods,  or  recording  reductions to the original
 7    cost of its  assets,  pursuant  to  subsection  (g)  of  this
 8    Section,     shall  file  a  statement  with  the  Commission
 9    describing the    accelerated  cost  recovery  method  to  be
10    implemented  or  the    reduction in the original cost of its
11    assets to be recorded.   Upon the filing of  such  statement,
12    the accelerated cost recovery  method or the reduction in the
13    original  cost  of  assets shall be  deemed to be approved by
14    the Commission as though an order had  been  entered  by  the
15    Commission.
16        (i)  Subsequent  to  the mandatory transition period, the
17    Commission, in any proceeding to establish rates and  charges
18    for   tariffed services offered by an electric utility, shall
19    consider  only (1) the then current  or  projected  revenues,
20    expenses,    investments  and  cost  of  capital  directly or
21    indirectly associated  with the provision  of  such  tariffed
22    services;  (2)  recovery of  transition charges in accordance
23    with Sections 16-102  and  16-108    of  this  Act;  and  (3)
24    recovery of the costs associated with the  electric utility's
25    compliance  with  decommissioning  funding  requirements; and
26    shall not consider any other revenues,  expenses, investments
27    or cost of capital of either the electric  utility or of  any
28    affiliate  of  the  electric utility that are not  associated
29    with tariffed services.
30        (220 ILCS 5/16-112 new)
31        Sec. 16-112.  Determination of market value.
32        (a)  The market value to be used in  the  calculation  of
33    transition  charges  as  defined  in  Section 16-102 shall be
                            -68-               LRB9000199JSgc
 1    determined in accordance with either (i) a  tariff  that  has
 2    been    filed  by  the  electric  utility with the Commission
 3    pursuant to  Article IX of this Act and that provides  for  a
 4    determination  of    the  market value for electric power and
 5    energy as a function of  an exchange traded or  other  market
 6    traded  index,  options  or    futures  contract or contracts
 7    applicable to the market in which  the utility sells, and the
 8    customers in its  service  area  buy,    electric  power  and
 9    energy,  or (ii) in the event no such tariff  has been placed
10    into effect for the electric utility, or in the   event  such
11    tariff  does  not  establish  market  values for each of  the
12    years specified in the neutral fact-finder process  described
13    in  subsections  (b)  through  (f)  of this Section, a tariff
14    incorporating the market values resulting  from  the  neutral
15    fact-finder  process set forth in subsections (b) through (f)
16    of  this Section.
17        (b)  Except   as  provided  in  subsection  (m)  of  this
18    Section,  on or before  July  30,  1997,  and  each  July  30
19    following until  2009, the Commission shall appoint a neutral
20    fact-finder   to   make     the  calculations   described  in
21    subsection (c) of this Section.     The  neutral  fact-finder
22    shall  be  a  member  of  a national public  accounting firm,
23    shall not have served as the  neutral  fact-finder    in  the
24    previous   year,  and  shall  be  selected  from  a  list  of
25    candidates  provided  by  the  CPR  Institute   for   Dispute
26    Resolution    or  other  nationally  recognized  provider  of
27    neutral   fact-finders     that  has  established  rules  for
28    maintaining confidentiality.  An  amount  sufficient  to  pay
29    the  fees  of  the neutral fact-finder shall  be appropriated
30    annually from the Public Utility Fund in the  State treasury.
31        (c)  On or before September 1, 1997, and each September 1
32    following until 2009, or  until  discontinued  in  accordance
33    with  subsection  (m) of this Section, each electric  utility
34    and each non-utility electric supplier shall submit to    the
                            -69-               LRB9000199JSgc
 1    neutral  fact-finder  a  summary of (A) all contracts entered
 2    into after June 1, 1997 that are for  the  sale  of  electric
 3    power  and  energy  from  a generating facility or facilities
 4    located in this State or located in a  contiguous  State  and
 5    owned  by  an  electric utility as part of its interconnected
 6    operating system and delivery during one or  more  of  the  5
 7    years   succeeding  the  date  of  submission,  and  (B)  all
 8    contracts  entered into after June 1, 1997 for  purchase  and
 9    delivery  of  electric power and energy in or into this State
10    during one or  more of the 5 years  succeeding  the  date  of
11    submission;  provided, however, that such contracts shall not
12    include  (i)    contracts between the electric utility and an
13    affiliate; (ii)  sales, purchases, or deliveries  made  under
14    rates  and  tariffs  filed  with  the  Commission, except for
15    tariffs filed pursuant to subsection (d)  of  Section  16-110
16    except  for  special  or negotiated rate contracts between an
17    electric utility and a retail customer  to  the  extent  that
18    such    contracts are for the provision of electric power and
19    energy after the  date that  the  customer  becomes  eligible
20    for  delivery services; and (iii) extensions or amendments to
21    full requirements wholesale  contracts  existing  as  of  the
22    effective date of this amendatory  Act of 1997, provided that
23    such  contracts,  extensions,  or    amendments  are  cost of
24    service  regulated  by  the  Federal   Energy      Regulatory
25    Commission.  The summaries shall, at a minimum,  identify the
26    date  of  the contract; the year in which the electric  power
27    or energy is to be sold or delivered; the point of  delivery;
28    defining characteristics such as the nature  of  the    power
29    transaction   (for  example,  reserve  responsibility  (firm,
30    non-firm)), length of contract and temporal differences  (for
31    example,    season, on-peak, or off-peak); and the applicable
32    prices stated at  the point at which the electric  power  and
33    energy leaves the  electric utility's on non-utility electric
34    supplier's  transmission  system,  as the case may be, in the
                            -70-               LRB9000199JSgc
 1    case of contracts described in item (i) and at the  point  at
 2    which  the  electric  power    and energy enters the electric
 3    utility's transmission system in  the case  of  contracts  in
 4    item  (B),  provided,  that  the  applicable   price shall be
 5    stated at the point at which the electric power   and  energy
 6    enters the electric utility's transmission system in the case
 7    of    electric power and energy generated for delivery within
 8    the  electric utility's service area.  In  reporting  to  the
 9    neutral  fact-finder the price of power and energy sold under
10    bundled      service   contracts,   electric   utilities  and
11    non-utility electric suppliers shall deduct from the contract
12    price the charges for delivery services, including transition
13    charges,  applicable to  delivery  services  customers  in  a
14    utility's  service    area, and charges for services, if any,
15    other than the provision of power   and  energy  or  delivery
16    services.  The  Commission  may  adopt  orders  setting forth
17    requirements  governing  the  form  and   content   of   such
18    summaries.
19        (d)  The   neutral  fact-finder  shall  calculate  market
20    values  for electric  power  and  energy  for  each  electric
21    utility,  taking    into account the defining characteristics
22    set forth in subsection    (e)  of  this  Section;  provided,
23    however,  that  the neutral  fact-finder may determine that a
24    particular value is appropriate  for more than  one  electric
25    utility,  or  for all electric utilities  in this State.  The
26    neutral fact-finder shall calculate the market    values  for
27    the  next  year  and,  to the extent the summaries include  a
28    sufficient number of actual contracts to represent  a  viable
29    market for the sale and delivery of electric power and energy
30    in  subsequent years, for each of the 4 succeeding years.
31        (e)  In calculating market values for electric power, the
32    neutral  fact-finder  shall weight contract prices (including
33    any  contract price indices) by both the amount  of  capacity
34    covered  by    the  contract and the number of hours in which
                            -71-               LRB9000199JSgc
 1    capacity is to be  provided under the contract in each period
 2    of the year, shall  take into account  all  of  the  defining
 3    characteristics  set forth  in subsection (c) of this Section
 4    and shall develop such values  as required to  represent  the
 5    different types of market values of  electric power.
 6        (f)  The  neutral  fact-finder shall base calculations of
 7    the  market values for electric energy on the  energy  prices
 8    stated in  the contracts, and where no explicit energy prices
 9    or  index price  basis are stated, on the actual energy costs
10    of the supplier in  the corresponding period of the preceding
11    year that would have  been applicable to the electric  energy
12    provided  under the  contract.  The neutral fact-finder shall
13    develop market values for  electric  energy  and  shall  take
14    into  account  the  defining  characteristics  set  forth  in
15    subsection (c) of this Section, as required to represent  the
16    market values of such electric energy.
17        (g)  If  the  contracts  used  by the neutral fact-finder
18    base  prices for future years on one  or  more  indices,  the
19    neutral    fact-finder  shall identify such indices in his or
20    her final  report, develop a weighting for  each  index,  and
21    calculate a  weighted average index.  The market values shall
22    be  calculated    using  the  weighted average index when the
23    actual values of the  component indices are known.
24        (h)  The neutral fact-finder shall publish a final report
25    on  or before October 30 of  each  year,  setting  forth  the
26    calculated    market  values  and  stating the basis for such
27    calculations.
28        (i)  The  market  values  calculated   by   the   neutral
29    fact-finder    shall  not be admissible in any proceeding for
30    any purpose other  than the calculation of transition charges
31    or calculation of  the price for the power  purchase  options
32    provided  pursuant  to    subsections  (b) and (c) of Section
33    16-110.
34        (j)  The Commission shall have access  to  all  contracts
                            -72-               LRB9000199JSgc
 1    described in subsection (c) of this Section and shall perform
 2    such  audits as it and the neutral fact-finder deem necessary
 3    to  insure the accuracy of the  summaries  submitted  to  the
 4    neutral   fact-finder.  The summaries described in subsection
 5    (c) of this  Section and  each  contract  shall  be  accorded
 6    confidential  and    proprietary  treatment  and their review
 7    shall be subject to the  provisions  of  Sections  4-404  and
 8    5-108  of  this Act, and the  contract between the Commission
 9    and  the  neutral  fact-finder  shall    contain   provisions
10    obligating  the  neutral  fact-finder  to  comply   with such
11    Sections.  The summaries shall not be discoverable  by    any
12    party  in  any  proceeding  absent a special demonstration of
13    need.
14        (k)  In calculating  transition  charges  as  defined  in
15    Section    16-102, an electric utility shall apply the market
16    values that  are determined as set forth in its tariff to the
17    electric power  and energy that would have been used to serve
18    the delivery  services customers' electric power  and  energy
19    requirements, based  on the usage specified in Section 16-102
20    and taking into account  the daily, monthly, annual and other
21    relevant  characteristics  of   the customers' demands on the
22    electric utility's system.
23        (l)  In calculating a lump sum transition charge  payment
24    for    the  purposes of subsection (g) of Section 16-108, the
25    electric  utility shall  use  the  market  values  that  were
26    determined  as    provided  in  its tariff, or if such market
27    values have not been  determined for the full period of  time
28    covered by such lump sum  calculation, such other basis as is
29    stated  in  the  electric  utility's tariff filed pursuant to
30    Section 16-108.
31        (m)  The Commission may approve  or  reject,  or  propose
32    modifications  to, any tariff providing for the determination
33    of  market value  that  has  been  proposed  by  an  electric
34    utility    pursuant  to  subsection  (a) of this Section, but
                            -73-               LRB9000199JSgc
 1    shall not have  the power to  otherwise  order  the  electric
 2    utility  to  implement  a    modified tariff or to place into
 3    effect any tariff for the    determination  of  market  value
 4    other   than  one  incorporating  the    neutral  fact-finder
 5    procedure set forth in this  Section.     Provided,  however,
 6    that  if  each  electric  utility  serving  at least  300,000
 7    customers has placed into effect a tariff that provides   for
 8    a  determination of market value as a function of an exchange
 9    traded or other  market  traded  index,  options  or  futures
10    contract    or contracts, then the Commission can require any
11    other electric  utilities to file  such  a  tariff,  and  can
12    terminate  the neutral  fact-finder procedure for the periods
13    covered by such tariffs.
14        (n)  To the extent that the summaries list  a  sufficient
15    number  of  actual contracts to represent a viable market and
16    market values can be determined for more than one  year,  the
17    electric  utility shall offer customers that are obligated to
18    pay  transition charges contracts that establish for  one  or
19    more  years    the  market  value  or  values  to  be used in
20    calculating  the    customer's  transition  charges  in   the
21    remaining  years  in  which the  customer is obligated to pay
22    such charges and for which market  value determinations  have
23    been made.  The electric utility may  require any customer to
24    give up to one year notice prior to  entering into a one or 2
25    year  contract  pursuant  to  this  subsection, up to 2 years
26    notice for a 3 year contract, and  up to 3 years notice for a
27    4 or 5 year contract.   Contracts of one or 2 years  duration
28    shall  incorporate the  market values that were determined as
29    provided in this Section in  the year in which the notice  is
30    required  to  be  given.   Contracts    of  more than 2 years
31    duration shall  incorporate  the  market    values  that  are
32    determined  in the year prior to the first year in  which the
33    electric utility will collect transition charges  from    the
34    customer  under  a  tariff  filed pursuant to Section 16-108.
                            -74-               LRB9000199JSgc
 1    The electric utility shall also allow customers to select, at
 2    the  time that a customer gives  its  notice,  an  option  to
 3    revoke the  notice within 30 days following the determination
 4    of  the    market  values  that will apply under the contract
 5    requested by the  customer, and may charge  customers  a  fee
 6    for such option that is  set forth in a tariff filed pursuant
 7    to  Article  IX  and  that is  adequate to allow the electric
 8    utility to recover its  transactional costs and compensate it
 9    based on the cost that  would  be  incurred  to  purchase  an
10    option  to  cover  the  risk   associated with the customer's
11    option to revoke.   The  electric     utility  shall  not  be
12    required  to offer customers a contract under  this paragraph
13    for any year for which no determination of market  value  has
14    been made either by the neutral fact-finder or pursuant  to a
15    tariff filed by the electric utility.
16        (o)  An  electric  utility  shall  have  no obligation to
17    provide  electric power or energy as a tariffed  service  for
18    the  electric    power  and  energy  requirements  placed  on
19    delivery  service  by  any   customer that has entered into a
20    contract pursuant to subsection  (n) of this Section and  has
21    not  purchased and exercised an option  to revoke, during the
22    term of the contract.  A customer that  has    purchased  and
23    exercised  an  option  to revoke under this subsection  shall
24    remain eligible to receive any tariffed service for which  it
25    would otherwise be eligible.
26        (220 ILCS 5/16-113 new)
27        Sec. 16-113.  Declaration of  service  as  a  competitive
28    service.
29        (a)  An  electric  utility  may  by  petition request the
30    Commission to declare a  tariffed  service  provided  by  the
31    electric   utility to be a competitive service.  The electric
32    utility shall  give notice of its petition to the  public  in
33    the  same manner that  public notice is provided for proposed
                            -75-               LRB9000199JSgc
 1    general  increases  in  rates    for  tariffed  services,  in
 2    accordance with rules and  regulations    prescribed  by  the
 3    Commission.   The  Commission  shall  hold  a  hearing on the
 4    petition if a hearing is deemed necessary by the  Commission.
 5    The Commission shall declare the service to be a  competitive
 6    service for some identifiable customer segment or   group  of
 7    customers,  or some clearly defined geographical area  within
 8    the electric utility's service area,  if  the  service  or  a
 9    reasonably   equivalent   substitute  service  is  reasonably
10    available  to the customer segment or group or in the defined
11    geographical area at a comparable  price  from  one  or  more
12    providers other than the  electric utility or an affiliate of
13    the  electric  utility, and the  electric utility has lost or
14    there is a reasonable likelihood  that the  electric  utility
15    will  lose business for the service  to the other provider or
16    providers; provided, that the Commission  may not declare the
17    provision of electric power and energy  to  be    competitive
18    pursuant  to this subsection with respect to any  customer or
19    group of customers that is not eligible pursuant to   Section
20    16-104  to  take  delivery  services provided by the electric
21    utility. In determining whether to grant or deny  a  petition
22    to    declare  the  provision  of  electric  power and energy
23    competitive,  the Commission shall consider, in applying  the
24    above  criteria,    whether  there  is  adequate transmission
25    capacity into the service  area of the  petitioning  electric
26    utility  to  make  electric  power    and  energy  reasonably
27    available to the customer segment or group  or in the defined
28    geographical  area from one or more providers  other than the
29    electric utility or an affiliate of the electric  utility, in
30    accordance with this subsection. The Commission shall    make
31    its  determination  and  issue  its  final order declaring or
32    refusing to declare the service to be a  competitive  service
33    within  120  days  following  the  date  that the petition is
34    filed, or  otherwise the  petition  shall  be  deemed  to  be
                            -76-               LRB9000199JSgc
 1    granted;  provided,    that  if  the petition is deemed to be
 2    granted by operation  of  law,    the  Commission  shall  not
 3    thereby  be  precluded  from  finding  and    ordering,  in a
 4    subsequent proceeding initiated by the Commission,  and after
 5    notice and hearing,  that  the  service  is  not  competitive
 6    based on the criteria set forth in this subsection.
 7        (b)  Any  customer  who is taking a tariffed service that
 8    is    declared  to  be  a  competitive  service  pursuant  to
 9    subsection (a)  of this Section shall be entitled to continue
10    to take the service  from the electric utility on a  tariffed
11    basis  for  a  period of  3 years following the date that the
12    service is declared  competitive, or such other period as  is
13    stated  in the electric  utility's tariff pursuant to Section
14    16-110.  This subsection   shall  not  require  the  electric
15    utility  to offer or provide on a  tariffed basis any service
16    to any customer that was  not  taking    such  service  on  a
17    tariffed  basis  on  the date the service was  declared to be
18    competitive.
19        (c)  If the Commission denies a  petition  to  declare  a
20    service  to  be  a  competitive  service,  or determines in a
21    separate  proceeding that a service is not competitive  based
22    on  the    criteria set forth in subsection (a), the electric
23    utility may  file a new petition no  earlier  than  6  months
24    following the date  of the Commission's order, requesting, on
25    the   basis   of   additional      or   different  facts  and
26    circumstances,  that  the  service  be    declared  to  be  a
27    competitive service.
28        (d)  The Commission shall not deny a petition to  declare
29    a    service  to be a competitive service, and shall not find
30    that a  service is not a competitive service, on the  grounds
31    that  it  has    previously  denied  the  petition of another
32    electric utility to  declare the same or a similar service be
33    a competitive service or  has previously determined that  the
34    same  or  a  similar  service    provided by another electric
                            -77-               LRB9000199JSgc
 1    utility is not a competitive  service.
 2        (e)  An electric utility may  declare  a  service,  other
 3    than  delivery services or the provision of electric power or
 4    energy,    to be competitive by filing with the Commission at
 5    least 14 days  prior to the date on which the service  is  to
 6    become  competitive  a  notice describing the service that is
 7    being declared competitive  and the date  on  which  it  will
 8    become  competitive;  provided,  that    any  customer who is
 9    taking  a  tariffed  service  that  is  declared  to    be  a
10    competitive service pursuant to this subsection (e) shall  be
11    entitled  to  continue  to take the service from the electric
12    utility on a tariffed basis until the electric utility files,
13    and  the Commission grants, a petition to declare the service
14    competitive  in  accordance  with  subsection  (a)  of   this
15    Section.     The  Commission  shall be authorized to find and
16    order, after  notice and hearing in a  subsequent  proceeding
17    initiated by the  Commission, that any service declared to be
18    competitive   pursuant     to  this  subsection  (e)  is  not
19    competitive in accordance with the   criteria  set  forth  in
20    subsection (a) of this Section.
21        (220 ILCS 5/16-114 new)
22        Sec.  16-114.  Decommissioning rate for delivery services
23    customers and certain other electric power users.
24        (a)  On or before June  30,  1999  but  no  earlier  than
25    January    1,  1999, each electric utility owning an interest
26    in, or having  responsibility as  a  matter  of  contract  or
27    statute  for    decommissioning costs of, one or more nuclear
28    power plants, shall    file  with  the  Commission  a  tariff
29    conforming to the provisions of  Section 9-201.5 of this Act,
30    in  addition  to any decommissioning  tariff already on file,
31    that is applicable to users of electric    power  and  energy
32    located  in  the  electric  utility's service area  that take
33    some or all of their electric power and energy   requirements
                            -78-               LRB9000199JSgc
 1    from  a  non-utility  electric  supplier or from an  electric
 2    utility other than the  electric  utility  in  whose  service
 3    area  the user is located; provided, however, that for a user
 4    that   obtained  electric  power  and  energy  from  its  own
 5    cogeneration  or    self-generation  facilities  on or before
 6    January 1, 1997, and   subsequently  takes  services  from  a
 7    non-utility  electric  supplier  or an electric utility other
 8    than the electric utility in whose  service area the user  is
 9    located  for  any  portion  of its electric  power and energy
10    requirements formerly obtained from those    facilities,  the
11    tariff  required  by this Section shall not be  applicable in
12    any year to that portion of the user's electric    power  and
13    energy requirements formerly obtained from those  facilities,
14    provided that for the purposes of this Section, such  portion
15    shall  not  exceed  the  average number of kilowatt-hours per
16    year  obtained  from  the  cogeneration  or   self-generation
17    facilities  during the 3 years prior to the date on which the
18    user  became  eligible for delivery services.  The Commission
19    may, if it deems  one  necessary,  hold  a  hearing  on  such
20    tariff  but  shall  permit  the    electric  utility's tariff
21    together with any modifications made as    a  result  of  the
22    hearing  to  become effective no later than  January 1, 2000.
23    The  tariff  filed  pursuant  to  this  Section  shall     be
24    applicable  to  any  user  taking some or all of its electric
25    power and energy requirements  from  a  non-utility  electric
26    supplier  or from an electric utility other than the electric
27    utility in whose service area the  user  is  located  on  and
28    after    the date that the user becomes eligible for delivery
29    services in  accordance with Section 16-104.
30        (b)  If the electric utility has  in  effect  as  of  the
31    effective   date   of   this   amendatory   Act   of  1997  a
32    decommissioning    rate  as  defined   in   Section   9-201.5
33    conforming  to  the requirements  of that Section, the tariff
34    required by this Section  shall  if  the    electric  utility
                            -79-               LRB9000199JSgc
 1    requests be consistent with its decommissioning  rate that is
 2    already in effect.
 3        (c)  The   tariff  required  by  this  Section  shall  be
 4    included  by  the  Commission  in  the  reviews  required  by
 5    subsection  (d)  of  Section 9-201.5.  If as a result of such
 6    review the Commission    eliminates  the  electric  utility's
 7    decommissioning  rate  as  defined    in  that  Section,  the
 8    Commission  shall,  in  the  same  order,  establish a charge
 9    applicable to the users described in  subsection (a) of  this
10    Section   which   shall  recover  from  such    customers  an
11    appropriately allocated portion of the  electric    utility's
12    decommissioning  funding obligation and shall make a  finding
13    that the electric  utility  is  able,  through  its  charges,
14    including the charges established under this Section, to meet
15    its decommissioning funding obligations.
16        (220 ILCS 5/16-115 new)
17        Sec.   16-115.   Certification  of  non-utility  electric
18    suppliers.
19        (a)  Any non-utility  electric  supplier  must  obtain  a
20    certificate  of  service  authority  from  the  Commission in
21    accordance  with  this  Section  before  serving  any  retail
22    customer or other user located in this State.  A  non-utility
23    electric  supplier may request, and the Commission may grant,
24    a certificate of service authority for the  entire  State  or
25    for a specified geographic area of the State.
26        (b)  A    non-utility   electric   supplier   seeking   a
27    certificate  of  service  authority  shall  file   with   the
28    Commission  a  verified  application  containing  information
29    showing  that  the  applicant  meets the requirements of this
30    Section.  The non-utility  electric  supplier  shall  publish
31    notice  of  its  application  in the official State newspaper
32    within 10 days following the date of its  filing.   No  later
33    than  45  days  after  the application is properly filed with
                            -80-               LRB9000199JSgc
 1    the Commission and such notice is published,  the  Commission
 2    shall issue its order granting or denying the application.
 3        (c)  The  Commission  shall  grant  the application for a
 4    certificate of service authority if it  makes  the  following
 5    findings  based  on  the  verified application and such other
 6    information as the applicant may submit:
 7             (1)  That   the   applicant   possesses   sufficient
 8        technical,  financial  and   managerial   resources   and
 9        abilities  to  provide  the  service for which it seeks a
10        certificate of  service  authority.  In  determining  the
11        level  of  technical, financial, and managerial resources
12        and abilities which the applicant must  demonstrate,  the
13        Commission   shall   consider  (i)  the  characteristics,
14        including the size and the financial  sophistication,  of
15        the  customers  that  the  applicant  seeks to serve, and
16        (ii) whether the  applicant  seeks  to  provide  electric
17        power  and  energy  using  property,  plant  or equipment
18        which it owns, controls or operates.
19             (2)  That the applicant will comply with  applicable
20        federal, State and regional statutes, rules,    policies,
21        practices  and  procedures  for  the  use,  operation and
22        maintenance of  the  integrity  of  the    interconnected
23        electric transmission system.
24             (3)  That  the  applicant  will only provide service
25        (i) to retail customers in an electric utility's  service
26        area that are both eligible to take  delivery    services
27        under  the tariffs of such electric utility and  that are
28        taking delivery services or have made or are  making  any
29        payments   they  are  obligated  to  make  pursuant    to
30        subsection (g) of Section 16-108 or (ii)  to    customers
31        that  are  served  by  and are eligible to take  delivery
32        services under the  terms  and  conditions  of    service
33        established   by  any  municipal  utility  or    electric
34        cooperative that serves such customer.
                            -81-               LRB9000199JSgc
 1             (4)  That the applicant has committed  to  and  will
 2        submit  annually  a  summary  of its contract data to the
 3        neutral fact-finder, and make its contracts for  purchase
 4        and sale of electric power  and  energy    available  for
 5        review by the Staff of the Commission, on  a confidential
 6        and  proprietary  basis,  in the manner and  only for the
 7        purposes described in Section 16-112.
 8             (5)  That  in  addition  to   complying   with   the
 9        requirements  of  paragraph  (4)  of this subsection (c),
10        the applicant will  comply  with  such  informational  or
11        reporting  requirements  as  the  Commission  may by rule
12        establish.
13             (6)  That   if   the   applicant,   its    corporate
14        affiliates   or   the  applicant's  principal  source  of
15        electricity (to the extent such source is  known  at  the
16        time  of  the  application)  owns or controls facilities,
17        for public use, for the transmission or  distribution  of
18        electricity  to  end-users  within  a  defined geographic
19        area  to  which  electric  power  and   energy   can   be
20        physically  and  economically  delivered  by the electric
21        utility or utilities in whose service area or  areas  the
22        proposed  service  will  be  offered, such applicant, its
23        corporate affiliate or principal source  of  electricity,
24        as  the  case  may  be, provides delivery services to the
25        electric utility or utilities in whose  service  area  or
26        areas  the  proposed  service  will  be  offered that are
27        reasonably comparable to those offered  by  the  electric
28        utility, and provided further, that the applicant  agrees
29        to   certify  annually  to  the  Commission  that  it  is
30        continuing to provide such delivery services and that  it
31        has not knowingly assisted any person or entity to  avoid
32        the requirements of this Section.  For purposes  of  this
33        subsection,  "principal source of electricity" shall mean
34        a single source that  supplies  at  least  65%    of  the
                            -82-               LRB9000199JSgc
 1        applicant's  power  and  energy,  and  the  purchase   of
 2        transmission and  distribution  services  pursuant  to  a
 3        filed  tariff  under  the  jurisdiction  of  the  Federal
 4        Energy  Regulatory  Commission  or a state public utility
 5        commission shall not constitute control of access to  the
 6        provider's transmission and distribution  facilities.
 7        (d)  A  non-utility  electric  supplier   that   owns   a
 8    cogeneration  or self-generation facility and that seeks only
 9    to provide electric power and energy from  such  facility  to
10    retail  customers  at  separate locations which customers are
11    both  (i) owned  by,  or  a  subsidiary  or  other  corporate
12    affiliate    of,  such non-utility electric supplier and (ii)
13    eligible  for    delivery  services,  shall  be   granted   a
14    certificate  of service  authority upon filing an application
15    and notifying the  Commission that it  has  entered  into  an
16    agreement  with  the  relevant electric utilities pursuant to
17    Section 16-116.
18        (e)  Each non-utility electric supplier shall be  subject
19    to and shall comply with the requirements  and    obligations
20    imposed on public utilities by Sections 8-201  through 8-207,
21    8-301,  8-505 and 8-507 of this Act, to the  extent they have
22    application to the  services  offered  by  the    non-utility
23    electric supplier.
24        (f)  No   non-utility   electric  supplier,  or  electric
25    utility other than the  electric  utility  in  whose  service
26    area  a  customer  is located, shall enter into or employ any
27    arrangements which have the effect of preventing  a    retail
28    customer  with  a  maximum electrical demand of less than one
29    megawatt from having  access to the services of the  electric
30    utility  in  whose    service area the customer is located or
31    charging for such  access.
32        (g)  The Commission shall have the  authority  to  alter,
33    modify  or  revoke  the certificate of service authority of a
34    non-utility electric supplier if the Commission finds,  after
                            -83-               LRB9000199JSgc
 1    notice  and  hearing held on complaint or on the Commission's
 2    own  motion,  that  the  non-utility  electric  supplier  has
 3    violated or is no longer in conformance with  the  provisions
 4    of  subsection  (c)  or  (f) of this Section.  The Commission
 5    shall also have the authority, after notice and  hearing,  to
 6    order  a  non-utility  electric supplier to cease and correct
 7    any violation of or nonconformance  with  the  provisions  of
 8    subsection (c), (e), or (f).
 9        (h)  The    Commission   shall   have   jurisdiction   in
10    accordance with Article  X  of  this  Act  to  entertain  and
11    dispose  of  any  complaint  against any non-utility electric
12    supplier alleging (i) that the non-utility electric  supplier
13    has  violated  or  is in nonconformance with any of the items
14    (1) through (6) of subsection  (c),  or  subsection  (f),  of
15    this  Section;  (ii)  that  the non-utility electric supplier
16    serving retail customers having  maximum  electrical  demands
17    of  less  than  one megawatt has failed to provide service in
18    accordance with the terms of its contract or  contracts  with
19    such  customer  or  customers;  (iii)  that  the  non-utility
20    electric   supplier has violated or is in nonconformance with
21    the  delivery services tariff of, or any  of  its  agreements
22    relating  to  delivery  services  with, the electric utility,
23    municipal utility or electric cooperative providing  delivery
24    services;  or (iv) that the non-utility electric supplier has
25    violated  or  failed  to  comply  with  the  requirements  of
26    Sections 8-201 through 8-207, 8-301, 8-505 and 8-507 of  this
27    Act  as  made  applicable  to  non-utility electric suppliers
28    through subsection (e) of this Section.
29        (i)  The  Commission  shall   have   the   authority   to
30    promulgate  rules and regulations to carry out the provisions
31    of  this Section. On or before July 1, 1998,  the  Commission
32    shall  adopt  a rule or rules applicable to the certification
33    of those non-utility electric suppliers that  seek  to  serve
34    only  retail customers with maximum electrical demands of one
                            -84-               LRB9000199JSgc
 1    megawatt or more which shall provide for (1) expedited    and
 2    streamlined  procedures,  compared  to  those  set  forth  in
 3    subsection  (b)  of  this  Section, for certification of such
 4    non-utility electric suppliers,  and  (2)  specific  criteria
 5    which,  if  met  by  any  such non-utility electric supplier,
 6    shall constitute the demonstration  of  technical,  financial
 7    and  managerial  resources  and  abilities to provide service
 8    required by subsection (c)(1) of  this  Section,  such  as  a
 9    requirement  to  post  a  bond  or  letter  of credit, from a
10    responsible surety or financial  institution,  of  sufficient
11    size  for  the  nature  and  scope  of  the  services  to  be
12    provided;  demonstration  of adequate insurance for the scope
13    and nature of the services to be provided; and experience  in
14    providing similar services in other jurisdictions.
15        (220 ILCS 9/16-116 new)
16        Sec.  16-116.  Services provided by electric utilities to
17    non-utility electric suppliers.  Each electric utility  shall
18    permit   non-utility   electric   suppliers  to  interconnect
19    facilities  to those owned by the utility provided they  meet
20    established  standards  for  such  interconnection,  and  may
21    provide  standby  or   other services to non-utility electric
22    suppliers. The non-utility  electric supplier  shall  sign  a
23    contract  setting forth the prices,  terms and conditions for
24    interconnection with the electric  utility  and  the  prices,
25    terms  and  conditions for services  provided by the electric
26    utility to the non-utility electric  supplier  in  connection
27    with the delivery  by the electric utility  of electric power
28    and  energy  supplied  by the non-utility electric  supplier.
29    To the extent the services provided by the electric   utility
30    to  such  non-utility  electric  suppliers are not subject to
31    the jurisdiction of the Federal Energy Regulatory Commission,
32    and  are not competitive services,  they  shall  be  provided
33    through  tariffs that are filed with the Commission.
                            -85-               LRB9000199JSgc
 1        (220 ILCS 5/16-117 new)
 2        Sec.  16-117.   Alternative  rate regulation for electric
 3    utilities.
 4        (a)  Notwithstanding any other Sections of  this  Act  or
 5    the   Commission's rules, the Commission, upon petition by an
 6    electric  utility and after notice and hearing, may authorize
 7    for all or  part of the tariffed services  of  that  electric
 8    utility  the  implementation  of  one or more programs for an
 9    initial period not to   exceed  4  years  consisting  of  (i)
10    alternatives to rate of  return regulation including, but not
11    limited  to, earnings  sharing, rate moratoria, price caps or
12    flexible rate options, or  (ii)  regulatory  mechanisms  that
13    reward   or  penalize  the  electric    utility  through  the
14    adjustment of rates based on utility   performance.   In  the
15    case  of  regulatory  mechanisms that reward or  penalize the
16    electric utility through the adjustment of rates    based  on
17    the  utility's  performance, the utility's performance  shall
18    be compared to standards established in the Commission  order
19    authorizing the implementation of the  regulatory  mechanism.
20    The  Commission  is  specifically  authorized  to  approve in
21    response  to such petitions different forms  of  alternatives
22    to  rate of  return regulation or other regulatory mechanisms
23    to fit the  particular characteristics  and  requirements  of
24    different  electric  utilities and their service territories.
25    The Commission shall  find that the program is reasonable and
26    should be approved if it  finds, based on the record, that:
27             (1)  During the mandatory transition period, for any
28        service which is not subject to subsections (a)  and  (b)
29        of    Section  16-111, and for all services subsequent to
30        December  31, 2004, the program is likely  to  result  in
31        prices  lower  than rates which otherwise would have been
32        in effect under  traditional rate  of  return  regulation
33        for the services  covered by the program;
34             (2)  implementation  of  the  program  is  likely to
                            -86-               LRB9000199JSgc
 1        result  in substantial and  identifiable  benefits  which
 2        will  be   realized by customers served under the program
 3        and that  would not be realized in  the  absence  of  the
 4        program  such  as    but not limited to at least 2 of the
 5        following or of such    other  similar  benefits  as  the
 6        Commission   finds  based  on  the    record:   increased
 7        customer understanding  of  the  utility's    prices  and
 8        services,  increased efficiency of customers' use  of the
 9        electric utility's  services,  improved  or  more  varied
10        service  offerings,  increased reliability and quality of
11        service,   lower   prices   or   rates,   and    enhanced
12        opportunities    for economic development in the electric
13        utility's service  area;
14             (3)  the program is not likely to  result  in  undue
15        discrimination  to any class of customers taking tariffed
16        service from the electric utility;
17             (4)  implementation of the program is not likely  to
18        result   in   deterioration  of  the  electric  utility's
19        financial  condition in a  manner  that  would  adversely
20        affect  its    ability  to  provide  safe,  adequate  and
21        reliable electric  utility service and will not adversely
22        affect  the  electric   utility's ability to provide such
23        service;
24             (5)  the electric utility has complied with or is in
25        compliance with the requirements of Sections  16-104  and
26        16-  105,  to  the  extent that the requirements of those
27        Sections  are applicable to the electric utility  at  the
28        time the  petition is filed;
29             (6)  the electric utility has complied with or is in
30        compliance with the requirements of subsections (a), (b),
31        and  (e)  of  Section  16-111,  to  the  extent  that the
32        requirements  of those subsections are applicable to  the
33        electric  utility  at the time the petition is filed, and
34        the  program  will    result  in  compliance  with  those
                            -87-               LRB9000199JSgc
 1        subsections to the extent  that they will  be  applicable
 2        to  the  electric  utility  during    the period that the
 3        program is to be in effect;
 4             (7)  the  program  includes  reporting   and   other
 5        provisions  that will enable the Commission to adequately
 6        monitor implementation of the program; and
 7             (8)  the  program   includes   provisions   for   an
 8        equitable    sharing of any net economic benefits between
 9        the utility and  its customers to the extent the  program
10        is likely to result  in such benefits.
11        The  Commission  shall  issue  its  order no later than 8
12    months from  the date of the filing of the petition.  If  the
13    Commission  cannot    make  the  required  findings, it shall
14    specifically identify in its  order the reason or reasons why
15    the proposed program does not  meet  the  required  criteria,
16    and shall identify any modifications  supported in the record
17    that  would  cause  the program to  satisfy the criteria.  In
18    the event the order identifies   any  such  modifications  it
19    shall  not  become  a  final  order subject  to petitions for
20    rehearing until 15  days  after  service  of  same  by    the
21    Commission.    The   electric  utility  shall  have  14  days
22    following the time of the service of the order to notify  the
23    Commission   in   writing   whether   it   will   accept  any
24    modifications so  identified in the order or whether  it  has
25    elected  not  to  proceed  with the program.  If the electric
26    utility notifies the  Commission that  it  will  accept  such
27    modifications,  the  Commission  shall issue an amended order
28    without further  hearing  within  14    days  following  such
29    notification  approving  the  program  as   modified and such
30    order shall be considered  to  be  a  final  order    of  the
31    Commission  subject to petitions for rehearing and  appellate
32    procedures.
33        (b)  The Commission may, upon subsequent petition by  the
34    electric  utility,  authorize the extension of a program that
                            -88-               LRB9000199JSgc
 1    was   previously  approved  pursuant  to  subsection  (a)  or
 2    approve    revisions or modifications of such a program to be
 3    effective,  after the initially approved program has been  in
 4    effect  for 4 years.  Any such petition seeking an extension,
 5    revision  or    modification  of  such  a  program  must   be
 6    accompanied  by  an  evaluation of the program addressing the
 7    criteria  set  forth  in    subsection  (a).   The   electric
 8    utility's  petition  may,  but  is not required to, specify a
 9    termination date for  the  extended,    revised  or  modified
10    program.   The  Commission  may  require  a  review    of the
11    extended, revised or modified program at 4 year    intervals,
12    or   such   longer   intervals  as  may  be  ordered  by  the
13    Commission,  for  the  purpose  of  determining  whether  the
14    program  should be revised, modified or terminated.
15        (c)  The Commission (i) shall  not,  either  on  its  own
16    motion    or on complaint, order any revision or modification
17    of a program  that was approved under subsection (a)  or  (b)
18    during  the first  4 years that the program is in effect, and
19    (ii) shall not on  its own motion or on complaint  order  any
20    revision  or modification  of a program following the first 4
21    years except after  notice    to  the  electric  utility  and
22    hearing  and  making the findings  required by subsection (a)
23    with respect to such revision  or    modification;  provided,
24    that  notwithstanding  (i)  and  (ii),  the  Commission shall
25    order a conforming revision or modification  of  a    program
26    that  was  approved  under  subsection  (a) or (b), and, upon
27    making the findings required by subsection (a)  or  (b),  may
28    make    such  other  revisions  or  modifications as it finds
29    appropriate  based on the record, in connection with granting
30    the electric  utility an increase in base rates  pursuant  to
31    subsection (d) of  Section 16-111, and provided further, that
32    any  program which has  been approved under subsection (a) or
33    (b) shall continue in   effect  until  revised,  modified  or
34    terminated by order of the  Commission.
                            -89-               LRB9000199JSgc
 1        (d)  The  Commission  shall have authority at any time on
 2    its  own motion or on  complaint,  and  upon  notice  to  the
 3    electric    utility,  to  require  the  electric  utility  to
 4    demonstrate  that  the    terms, conditions, and prices being
 5    applied by the utility  pursuant to a program approved  under
 6    this  Section  are  consistent    with the provisions of that
 7    program, as approved by the  Commission  and,  after  hearing
 8    and  upon  a  finding,  based  on   evidence, that the terms,
 9    conditions, and prices being applied by the utility  pursuant
10    to  that   program  are not consistent with the provisions of
11    that program, to order  the electric utility  to  change  the
12    administration   of   the  terms    and  conditions  and  the
13    application  of  its  prices  to  be  consistent    with  the
14    provisions  of  the  program;  provided,  however,  that  the
15    Commission shall not in any  such  order  issued  during  the
16    first    4  years  that  a program previously approved by the
17    Commission  is in effect direct the utility to revise, modify
18    or cancel the  program.
19        (e)  Nothing  in  this  Section   shall   authorize   the
20    Commission  (i)  to  allow  an  electric  utility to put into
21    effect, during the  mandatory transition period,  base  rates
22    in  excess  of  those  permitted by subsections (a), (b), and
23    (d) of Section 16-111, or (ii) to require an electric utility
24    to put into effect, during  the mandatory transition  period,
25    base  rates lower than those  provided for in subsections (a)
26    and (b) of Section 16-111.
27        (f)  The Commission shall not be authorized to  allow  or
28    order  an  electric  utility  to  place a program into effect
29    pursuant  to this Section  applicable  to  delivery  services
30    provided  by  the    electric  utility,  unless  the electric
31    utility already has in  effect  a  delivery  services  tariff
32    conforming  to the requirements  of subsection (a) of Section
33    16-108 of this Act.
34        (g)  Notwithstanding the  provisions  of  Section  5-102,
                            -90-               LRB9000199JSgc
 1    5-103    and 5-109 of this Act, the Commission, if requested,
 2    shall, in  conjunction with an order approving a  program  in
 3    accordance  with    subsection (a) or (b) of this Section for
 4    all of the  regulated    business  of  an  electric  utility,
 5    authorize  the  electric utility  to keep its accounts in the
 6    form required by the Federal Energy    Regulatory  Commission
 7    and  to  file its FERC annual report with the  Commission, in
 8    lieu of the accounts  and  reports  otherwise    required  by
 9    Sections 5-102, 5-103 and 5-109 of this Act.
10        (h)  Subsequent to December 31, 2004, and notwithstanding
11    the  provisions  of  Sections  7-101 or 7-102 of this Act, an
12    electric utility that has a program approved under subsection
13    (a)  or (b)  for  all  of  the  regulated  business  of  that
14    electric  utility shall not be required to file, or to obtain
15    the consent  of the Commission for, any assignment, transfer,
16    lease,  mortgage,    purchase,  sale,  merger, consolidation,
17    contract or other  transaction for which filing, consent  and
18    approval  would    otherwise be required by Sections 7-101 or
19    7-102 of this Act when  the transaction involves  either  (1)
20    the disposition or  acquisition of property in an amount that
21    is  1%  or  less of the  average total gross utility plant in
22    service or (2) a sale price  or annual  consideration  in  an
23    amount  that  is  2.5%  or  less of the  total revenue of the
24    electric utility, as the case may be, during   the  preceding
25    12 months.
26        (220 ILCS 5/16-118 new)
27        Sec.  16-118.   Existing contracts not affected.  Nothing
28    in  this Article XVI shall affect the right  of  an  electric
29    utility to  continue to provide, or the right of the customer
30    to  continue  to  receive, service pursuant to a contract for
31    electric service    between  the  electric  utility  and  the
32    customer,   in  accordance  with    the  prices,  terms   and
33    conditions  provided  for  in  that  contract.    Either  the
                            -91-               LRB9000199JSgc
 1    electric utility or the customer may require  compliance with
 2    the prices, terms and conditions of such  contract.
 3        (220 ILCS 5/16-119 new)
 4        Sec. 16-119.  Community Energy Assistance.
 5        (a)  This Section   authorizes  the  establishment  of  a
 6    Community  Energy  Assistance    Program to provide continued
 7    access  to  energy  services  to  low    income   residential
 8    customers  in  the State of Illinois and to  encourage energy
 9    conservation among those customers.
10        (b)  As promptly as practicable following  the  enactment
11    of    this amendatory Act of 1997, the General Assembly, or a
12    Joint  Committee thereof, shall establish  a  Program  Design
13    Group.   The    Program  Design Group is to be chaired by the
14    Department of  Commerce and Community Affairs with one person
15    to represent the  interests of each of  the  following:   (i)
16    electric   utilities,   (ii)    gas  utilities,  (iii)  power
17    marketers, (iv) low-income energy   customers,  (v)  Illinois
18    community action agencies, (vi)  commercial energy consumers,
19    and (vii) industrial energy  consumers.
20        (c)  Within  6  months  of its establishment, the Program
21    Design  Group  shall  hold   public   hearings   to   develop
22    recommendations to the General Assembly, or a Joint Committee
23    thereof,  concerning  the  design  and  implementation  of  a
24    Community    Energy  Assistance  Program to provide access to
25    essential  energy    services   to   low-income   residential
26    customers  in  Illinois.   The    Commission must hold public
27    hearings on the Program Design  Group's recommendations.  The
28    program shall become effective only  upon the approval of the
29    General  Assembly,  which  may  accept   or      reject   the
30    recommendations  of  the Program Design Group.  This  Program
31    must include:
32             (1)  a  definition   of   an   eligible   low-income
33        residential    customer based on the federal poverty line
                            -92-               LRB9000199JSgc
 1        and other information  the  Program  Design  Group  deems
 2        appropriate;
 3             (2)  provisions  for  ensuring  access  to essential
 4        energy  services for low-income residential customers;
 5             (3)  consideration of arrearages for a period not to
 6        exceed 12 months;
 7             (4)  development   of    demographic    and    other
 8        information        (including    household    consumption
 9        information)  necessary to  determine the total number of
10        customers eligible  for    assistance  and  estimates  of
11        funding requirements for the  Program;
12             (5)  provisions to encourage energy efficiency among
13        low-income residential customers.
14        (d)  Funding  for  the Program shall be provided from (i)
15    funds provided by the Federal Low-Income Heating  and  Energy
16    Assistance Program, (ii) other funds made available in annual
17    appropriations  by  the  General  Assembly,  and  (iii) other
18    competitively neutral sources from the broadest possible base
19    recommended by the Program Design Group and authorized by the
20    General Assembly.
21        (e)  The Program shall be administered by the  Department
22    of Commerce and Community Affairs.
23        Section  10.  The  Public  Utilities  Act  is  amended by
24    changing  Sections  8-405  and  8-405.1  and  adding  Section
25    8-402.5 as follows:
26        (220 ILCS 5/8-402.5 new)
27        Sec. 8-402.5.  Inseverability  and  emergency  rules  for
28    retail wheeling of electricity.
29        (a)  Except  for  the  changes made by Section 10 of this
30    amendatory  Act  of  1997,  the  changes  made  to   existing
31    statutory  law  by  this  amendatory Act of 1997 are mutually
32    dependent and inseverable.  If any  change,  other  than  the
                            -93-               LRB9000199JSgc
 1    changes  made  by  Section 10 of this amendatory Act of 1997,
 2    made to existing statutory law by this amendatory Act of 1997
 3    or its application to any  person  or  circumstance  is  held
 4    invalid,  then  all  changes,  except for the changes made by
 5    Section 10 of this amendatory Act of 1997, made  to  existing
 6    law  by  this  amendatory  Act  of  1997 are invalid in their
 7    entirety.  A declaration of the invalidity  of  the  changes,
 8    other  than the changes made by Section 10 of this amendatory
 9    Act  of  1997,  made  to  existing  statutory  law  by   this
10    amendatory  Act  of  1997  shall  not  affect the validity of
11    statutory law as it existed immediately before the  effective
12    date  of  this  amendatory  Act  of  1997.  A declaration  of
13    invalidity, however, shall not affect  the  validity  of  any
14    contracts  entered  into,  transactions implemented, services
15    provided, billings rendered, or  payments made in  accordance
16    with  the  provisions  of this  amendatory Act of 1997 before
17    the date of such invalidity.
18        (b)  If any of the changes, other than the  changes  made
19    by  Section  10  of  this  amendatory  Act  of  1997, made to
20    existing statutory law by this amendatory  Act  of  1997  are
21    declared  invalid, the Commission shall, within 30 days after
22    the entry of the final order  of  invalidity,  initiate    an
23    emergency   rulemaking   pursuant  to  Section  5-45  of  the
24    Illinois Administrative Procedure Act  and  shall  within  60
25    days  after initiating such rulemaking adopt a rule providing
26    for  wheeling  to  retail  customers.  Any such rule  adopted
27    shall (1) establish a phase-in of wheeling for  all customers
28    beginning on January 1, 2000 and ending  January 1, 2005, and
29    (2) establish specific cost  recovery mechanisms that provide
30    each electric utility    with  a  reasonable  opportunity  to
31    recover  those    investments  and  other  assets  that  were
32    included  in  the  electric utility's rate base as of October
33    1, 1996 and  its other costs of  providing  tariffed  service
34    including  its cost of complying with decommissioning funding
                            -94-               LRB9000199JSgc
 1    obligations,  taking  into account the utility's ability  and
 2    efforts to reduce costs and increase efficiencies.
 3        (220 ILCS 5/8-405) (from Ch. 111 2/3, par. 8-405)
 4        Sec. 8-405. Energy services study.
 5        (a)  The  Commission  is  authorized,   to   the   extent
 6    consistent  with  its energy supply planning responsibilities
 7    and the energy supply planning objectives  of  this  Act,  to
 8    study  strategic options for changing the structure of energy
 9    services markets when (a) such study is authorized by a  vote
10    of the full Commission; (b) the study findings are subject to
11    full public hearings and opportunity for comment; and (c) the
12    study  findings  and  any  findings  from public hearings are
13    fully reported to the  General  Assembly  together  with  any
14    recommendations   adopted   by   a  vote  of  the  Commission
15    concerning the need for legislative action.
16        Notwithstanding  any  provision  to  the   contrary   the
17    Commission shall not require or implement any system or means
18    for  the  dispatch  or  brokering  of  power  from  a central
19    location unless and until such action is  recommended,  after
20    notice  and  hearing,  by  a  majority  vote  of  the  entire
21    Commission  and  expressly authorized by the General Assembly
22    upon consideration of the Commission recommendation.
23        (b)  If any of the changes, other than the  changes  made
24    by  Section  10  of  this  amendatory  Act  of  1997, made to
25    existing statutory law by this amendatory  Act  of  1997  are
26    declared  invalid,  then  the provisions of subsection (a) of
27    this Section shall be inoperative.
28    (Source: P.A. 84-617.)
29        (220 ILCS 5/8-405.1) (from Ch. 111 2/3, par. 8-405.1)
30        Sec. 8-405.1.  Feasibility of wheeling.
31        (a)  The Commission, in cooperation with  the  Department
32    of Natural Resources, shall study the feasibility of wheeling
                            -95-               LRB9000199JSgc
 1    electricity  in  Illinois.  Such study shall include, but not
 2    be limited to:
 3        (a)  the potential effect of wheeling on electrical rates
 4    for all electrical customers;
 5        (b)  the  effects   of   wheeling   on   rural   electric
 6    cooperatives and electrical suppliers in Illinois;
 7        (c)  the authority of the State to mandate wheeling;
 8        (d)  the  impact on the obligation of public utilities to
 9    provide service in their service areas.
10        The Commission shall report the findings of the study  to
11    the General Assembly no later than January 1, 1988.
12        (b)  If  any  of the changes, other than the changes made
13    by Section 10  of  this  amendatory  Act  of  1997,  made  to
14    existing  statutory  law  by  this amendatory Act of 1997 are
15    declared invalid, then the provisions of  subsection  (a)  of
16    this Section shall be inoperative.
17    (Source: P.A. 89-445, eff. 2-7-96.)
18        (220 ILCS 5/7-108 rep.)
19        (220 ILCS 5/7-205 rep.)
20        (220 ILCS 5/7-206 rep.)
21        (220 ILCS 5/8-401 rep.)
22        (220 ILCS 5/8-402 rep.)
23        (220 ILCS 5/8-402.1 rep.)
24        (220 ILCS 5/8-404 rep.)
25        Section  15.  Sections 7-108, 7-205, 7-206, 8-401, 8-402,
26    8-402.1, and 8-404 of the Public Utilities Act are repealed.
27        Section 20.  The Public Utilities Revenue Act is  amended
28    by adding Section 4.5 as follows:
29        (35 ILCS 620/4.5 new)
30        Sec. 4.5.  Replacement taxes.  The General Assembly finds
31    that  existing  taxes   imposed on electric utilities in this
                            -96-               LRB9000199JSgc
 1    State based on their  gross    receipts  may  place  Illinois
 2    electric   utilities   at  a  competitive    disadvantage  to
 3    out-of-State electricity suppliers who will be    allowed  to
 4    supply,  furnish,  sell,  and  deliver electricity to  retail
 5    customers in Illinois as a result  of  the  Electric  Service
 6    Transition  and  Customer  Choice  Law, and that as a result,
 7    the State of  Illinois may suffer a reduction in the revenues
 8    from those taxes.  Accordingly, on or before January 1, 1999,
 9    the    General  Assembly  shall  enact  legislation,  to   be
10    effective no  later than January 1, 2000, that shall amend or
11    repeal  the Public  Utilities Revenue Act and the tax imposed
12    by Section 2-202 of  the Public Utilities Act, and, if deemed
13    necessary by the General  Assembly, enact a  replacement  tax
14    to  be  applicable either (i) to  the privilege of supplying,
15    furnishing, selling, and delivering   electricity  to  retail
16    customers in this State or (ii) to the use  or consumption of
17    electricity  at  retail  in this State, to the  ends (1) that
18    the same amount of tax revenues collected through  those Acts
19    amended  or  repealed  shall  be  collected  through      the
20    replacement  Acts  and  (2)  that  the  incidence of such tax
21    shall  be  equitably   borne  either  (A)  by  all   electric
22    utilities    and  non-utility  electric  suppliers supplying,
23    furnishing, selling,  or  delivering  electricity  to  retail
24    customers  in  this  State  or    (B)  by all retail users of
25    electricity in this State.
26        Section 99.  Effective date.  This Act  takes  effect  on
27    June 1, 1997.
                            -97-               LRB9000199JSgc
 1                                INDEX
 2               Statutes amended in order of appearance
 3    220 ILCS 5/1-102          from Ch. 111 2/3, par. 1-102
 4    220 ILCS 5/4-403 new
 5    220 ILCS 5/4-404 new
 6    220 ILCS 5/5-104          from Ch. 111 2/3, par. 5-104
 7    220 ILCS 5/6-102          from Ch. 111 2/3, par. 6-102
 8    220 ILCS 5/7-101          from Ch. 111 2/3, par. 7-101
 9    220 ILCS 5/7-102          from Ch. 111 2/3, par. 7-102
10    220 ILCS 5/7-102.5 new
11    220 ILCS 5/8-503          from Ch. 111 2/3, par. 8-503
12    220 ILCS 5/8-510          from Ch. 111 2/3, par. 8-510
13    220 ILCS 5/9-220          from Ch. 111 2/3, par. 9-220
14    220 ILCS 5/10-103         from Ch. 111 2/3, par. 10-103
15    220 ILCS 5/10-113         from Ch. 111 2/3, par. 10-113
16    220 ILCS 5/10-114 new
17    220 ILCS 5/Art. XVI heading new
18    220 ILCS 5/16-101 new
19    220 ILCS 5/16-102 new
20    220 ILCS 5/16-103 new
21    220 ILCS 5/16-104 new
22    220 ILCS 5/16-105 new
23    220 ILCS 5/16-106 new
24    220 ILCS 5/16-107 new
25    220 ILCS 5/16-108 new
26    220 ILCS 5/16-109 new
27    220 ILCS 5/16-110 new
28    220 ILCS 9/16-111 new
29    220 ILCS 5/16-112 new
30    220 ILCS 5/16-113 new
31    220 ILCS 5/16-114 new
32    220 ILCS 5/16-115 new
33    220 ILCS 9/16-116 new
34    220 ILCS 5/16-117 new
                            -98-               LRB9000199JSgc
 1    220 ILCS 5/16-118 new
 2    220 ILCS 5/16-119 new
 3    220 ILCS 5/8-402.5 new
 4    220 ILCS 5/8-405          from Ch. 111 2/3, par. 8-405
 5    220 ILCS 5/8-405.1        from Ch. 111 2/3, par. 8-405.1
 6    220 ILCS 5/7-108 rep.
 7    220 ILCS 5/7-205 rep.
 8    220 ILCS 5/7-206 rep.
 9    220 ILCS 5/8-401 rep.
10    220 ILCS 5/8-402 rep.
11    220 ILCS 5/8-402.1 rep.
12    220 ILCS 5/8-404 rep.
13    35 ILCS 620/4.5 new

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