State of Illinois
90th General Assembly
Legislation

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[ Senate Amendment 001 ]

90_HB0362sam002

                                          SRS90HB0362JJsaam02
 1                     AMENDMENT TO HOUSE BILL 362
 2        AMENDMENT NO.     .  Amend House Bill  362  by  replacing
 3    the title with the following:
 4        "AN  ACT  in  relation  to  the  competitive provision of
 5    utility services, amending named Acts."; and
 6    by replacing everything after the enacting  clause  with  the
 7    following:
 8                             "ARTICLE I
 9        Section 5.  The Public Utilities Act is amended by adding
10    Articles XVI, XVII, and XVIII as follows:
11        (220 ILCS 5/Art. XVI heading new)
12       ARTICLE XVI. ELECTRIC SERVICE CUSTOMER CHOICE AND RATE
13                         RELIEF LAW OF 1997
14        (220 ILCS 5/16-101 new)
15        Sec. 16-101.  Short title and applicability.
16        (a)   This  Article  may be cited as the Electric Service
17    Customer Choice and Rate Relief Law of 1997 and  shall  apply
18    to   electric   utilities  and  alternative  retail  electric
19    suppliers as defined in this Article.  Except to  the  extent
20    modified  or  supplemented by the provisions of this Article,
                            -2-           SRS90HB0362JJsaam02
 1    or  where  the  context  clearly  renders   such   provisions
 2    inapplicable,  the other Articles of the Public Utilities Act
 3    pertaining to public  utilities,  public  utility  rates  and
 4    services  and  the  regulation thereof, are fully and equally
 5    applicable  to  the  tariffed  services  electric   utilities
 6    provide.
 7        (b)   The  provisions  of  subsections (a) through (h) of
 8    Section 16-111 of this Act shall not  be  applicable  to  any
 9    electric   utility   which   elects  to  file  biennial  rate
10    proceedings before the Commission in the years 1998, 2000 and
11    2002.  An electric utility electing this option shall  do  so
12    by  filing  a  notice  of  such  election with the Commission
13    within 60 days after the effective date  of  this  amendatory
14    Act  of  1997,  or  its  right to make such election shall be
15    irrevocably waived.  An electric utility electing the  option
16    specified  in  this  paragraph shall file its rate proceeding
17    with the Commission no later than August 1 of the years 1998,
18    2000, 2002.  The electric utility's filing shall comply  with
19    all requirements of 83 Illinois Administrative Code Parts 255
20    and  285  as  though  the electric utility were filing for an
21    increase in its rates, without regard to whether such  filing
22    would  produce  an  increase,  a decrease or no change in the
23    electric utility's rates and the Commission shall review  the
24    electric  utility's  filing  and  shall  issue  its  order in
25    accordance with the provisions of Section 9-201 of this Act.
26        (220 ILCS 5/16-101A new)
27        Sec. 16-101A. Legislative findings.
28        (a)  The citizens and businesses of the State of Illinois
29    have been well-served by a comprehensive  electrical  utility
30    system  which  has  provided  safe,  reliable, and affordable
31    service.  The electrical  utility  system  in  the  State  of
32    Illinois  has  historically been subject to State and federal
33    regulation, aimed at assuring the citizens and businesses  of
                            -3-           SRS90HB0362JJsaam02
 1    the State of safe, reliable, and affordable service, while at
 2    the  same time assuring the utility system of a return on its
 3    investment.
 4        (b)  Competitive forces  are  affecting  the  market  for
 5    electricity  as  a  result  of  recent federal regulatory and
 6    statutory  changes  and  the  activities  of  other   states.
 7    Competition  in  the  electric  services  market  may  create
 8    opportunities for new products and services for customers and
 9    lower   costs   for   users   of  electricity.  Long-standing
10    regulatory relationships need to be  altered  to  accommodate
11    the  competition that could fundamentally alter the structure
12    of the electric services market.
13        (c)  With the advent of increasing  competition  in  this
14    industry, the State has a continued interest in assuring that
15    the  safety,  reliability,  and  affordability  of electrical
16    power is not sacrificed to competitive pressures, and to that
17    end, intends to  implement  safeguards  to  assure  that  the
18    industry  continues  to  operate  the  electrical system in a
19    manner that will  serve  the  public's  interest.  Under  the
20    existing   regulatory   framework,   the  industry  has  been
21    encouraged to undertake certain investments in  its  physical
22    plant  and  personnel to enhance its efficient operation, the
23    cost of which it has been permitted to pass on to  consumers.
24    The State has an interest in providing the existing utilities
25    a  reasonable  opportunity  to  obtain  a  return  on certain
26    investments on  which  they  depended  in  undertaking  those
27    commitments  in  the  first instance while, at the same time,
28    not  permitting  new  entrants  into  the  industry  to  take
29    unreasonable  advantage  of  the  investments  made  by   the
30    formerly regulated industry.
31        (d)  A  competitive  wholesale  and  retail  market  must
32    benefit   all   Illinois   citizens.  The  Illinois  Commerce
33    Commission should  act  to  promote  the  development  of  an
34    effectively  competitive  electricity  market  that  operates
                            -4-           SRS90HB0362JJsaam02
 1    efficiently  and  is  equitable  to  all  consumers. Consumer
 2    protections must be in place to  ensure  that  all  customers
 3    continue   to   receive   safe,   reliable,  affordable,  and
 4    environmentally safe electric service.
 5        (e)  All consumers  must  benefit  in  an  equitable  and
 6    timely  fashion  from  the  lower  costs for electricity that
 7    result from retail  and  wholesale  competition  and  receive
 8    sufficient   information   to  make  informed  choices  among
 9    suppliers and services. The use of  renewable  resources  and
10    energy   efficiency   resources   should   be  encouraged  in
11    competitive markets.
12        (220 ILCS 5/16-102 new)
13        Sec. 16-102.  Definitions.   For  the  purposes  of  this
14    Article  the following terms shall be defined as set forth in
15    this Section.
16        "Alternative  retail  electric  supplier"   means   every
17    person,   cooperative,  corporation,  municipal  corporation,
18    company, association, joint  stock  company  or  association,
19    firm,   partnership,   individual,  or  other  entity,  their
20    lessees,  trustees,  or  receivers  appointed  by  any  court
21    whatsoever, that offers electric power or  energy  for  sale,
22    lease  or in exchange for other value received to one or more
23    retail  customers,  or  that  engages  in  the  delivery   or
24    furnishing  of  electric  power  or  energy  to  such  retail
25    customers,  and shall include, without limitation, resellers,
26    aggregators and power marketers, but shall  not  include  (i)
27    electric  utilities  (or any agent of the electric utility to
28    the extent the electric utility provides tariffed services to
29    retail customers  through  that  agent),  (ii)  any  electric
30    cooperative  or municipal system as defined in Section 17-100
31    to the extent that  the  electric  cooperative  or  municipal
32    system  is  serving retail customers within any area in which
33    it is or would be entitled to provide service under  the  law
                            -5-           SRS90HB0362JJsaam02
 1    in  effect  immediately  prior  to the effective date of this
 2    amendatory Act of 1997, (iii) a public utility that is  owned
 3    and operated by any public institution of higher education of
 4    this  State, or a public utility that is owned by such public
 5    institution of higher education and operated by  any  of  its
 6    lessees  or  operating agents, within any area in which it is
 7    or would be entitled to provide  service  under  the  law  in
 8    effect  immediately  prior  to  the  effective  date  of this
 9    amendatory Act of 1997,  (iv)  any  retail  customer  to  the
10    extent  that  customer  obtains its electric power and energy
11    from its own cogeneration or self-generation facilities,  (v)
12    any  entity  that  sells  or arranges for the installation of
13    cogeneration or self-generation facilities to be owned  by  a
14    retail  customer  described in subparagraph (iv), but only to
15    the extent the entity is engaged in selling or arranging  for
16    such  installation,  or  (vi)  an industrial or manufacturing
17    customer that owns its own distribution  facilities,  to  the
18    extent   that   the   customer  provides  service  from  that
19    distribution system to a third-party  contractor  located  on
20    the  customer's premises that is integrally and predominantly
21    engaged  in  the  customer's  industrial   or   manufacturing
22    process;  provided,  that  if the industrial or manufacturing
23    customer has elected delivery services,  the  customer  shall
24    pay  transition  charges applicable to the electric power and
25    energy consumed by the  third-party  contractor  unless  such
26    charges  are  otherwise  paid  by the third party contractor,
27    which shall be calculated based on the usage of, and the base
28    rates or the contract rates applicable  to,  the  third-party
29    contractor in accordance with Section 16-102.
30        "Base  rates" means the rates for those tariffed services
31    that the electric utility is required to  offer  pursuant  to
32    subsection  (a) of Section 16-103 and that were identified in
33    a rate order for collection of the  electric  utility's  base
34    rate  revenue  requirement,  excluding (i) separate automatic
                            -6-           SRS90HB0362JJsaam02
 1    rate adjustment  riders  then  in  effect,  (ii)  special  or
 2    negotiated  contract  rates,  (iii) delivery services tariffs
 3    filed pursuant to Section 16-108, (iv) real-time pricing,  or
 4    (v)  tariffs that were in effect prior to October 1, 1996 and
 5    that based charges for services on an  index  or  average  of
 6    other  utilities'  charges, but including (vi) any subsequent
 7    redesign  of  such  rates  for  tariffed  services  that   is
 8    authorized by the Commission after notice and hearing.
 9        "Competitive  service"  includes (i) any service that has
10    been declared to be competitive pursuant to Section 16-113 of
11    this Act, (ii) contract service, and  (iii)  services,  other
12    than   tariffed  services,  that  are  related  to,  but  not
13    necessary for, the provision of electric power and energy  or
14    delivery services.
15        "Contract  service"  means  (1)  services,  including the
16    provision of electric power and  energy  or  other  services,
17    that  are  provided  by  mutual agreement between an electric
18    utility and a retail customer that is located in the electric
19    utility's service  area,  provided  that,  delivery  services
20    shall  not  be  a  contract  service  until such services are
21    declared competitive pursuant to  Section  16-113;  and  also
22    means  (2)  the  provision of electric power and energy by an
23    electric utility to retail  customers  outside  the  electric
24    utility's service area pursuant to Section 16-116.  Provided,
25    however,  contract  service does not include electric utility
26    services provided  pursuant  to  (i)  contracts  that  retail
27    customers are required to execute as a condition of receiving
28    tariffed   services,  or  (ii)  special  or  negotiated  rate
29    contracts for electric utility  services  that  were  entered
30    into  between an electric utility and a retail customer prior
31    to the effective date of this  amendatory  Act  of  1997  and
32    filed with the Commission.
33        "Delivery  services" means those services provided by the
34    electric  utility  that  are  necessary  in  order  for   the
                            -7-           SRS90HB0362JJsaam02
 1    transmission  and  distribution  systems  to function so that
 2    retail customers located in the  electric  utility's  service
 3    area  can  receive  electric  power and energy from suppliers
 4    other than the electric utility, and shall  include,  without
 5    limitation, standard metering and billing services.
 6        "Electric  utility" means a public utility, as defined in
 7    Section 3-105 of this Act, that  has  a  franchise,  license,
 8    permit  or  right  to  furnish  or sell electricity to retail
 9    customers within a service area.
10        "Mandatory transition period" means the period  from  the
11    effective date of this amendatory Act of 1997 through January
12    1, 2005.
13        "Municipal  system"  shall  have the meaning set forth in
14    Section 17-100.
15        "Real-time pricing" means charges for delivered  electric
16    power  and  energy  that  vary  on  an hour-to-hour basis for
17    nonresidential retail customers and that vary on  a  periodic
18    basis during the day for residential retail customers.
19        "Retail  customer"  means  a single entity using electric
20    power or energy at a single premises and that (A) either  (i)
21    is receiving or is eligible to receive tariffed services from
22    an  electric  utility,  or (ii) that is served by a municipal
23    system or electric cooperative within any area in  which  the
24    municipal  system  or  electric  cooperative  is  or would be
25    entitled  to  provide  service  under  the  law   in   effect
26    immediately  prior  to  the effective date of this amendatory
27    Act of 1997, or (B) an entity which on the effective date  of
28    this Act was receiving electric service from a public utility
29    and   (i)   was  engaged  in  the   practice  of  resale  and
30    redistribution of such electricity within a building prior to
31    January 2, 1957, or (ii) was providing lighting  services  to
32    tenants in a multi-occupancy building, but only to the extent
33    such resale, redistribution or lighting service is authorized
34    by  the electric utility's tariffs that were on file with the
                            -8-           SRS90HB0362JJsaam02
 1    Commission on the effective date of this Act.
 2        "Service area" means (i) the geographic area within which
 3    an electric utility was lawfully entitled to provide electric
 4    power and energy to retail customers as of the effective date
 5    of this  amendatory  Act  of  1997,  and  includes  (ii)  the
 6    location of any retail customer to which the electric utility
 7    was  lawfully  providing  electric  utility  services on such
 8    effective date.
 9        "Small   commercial   retail   customer"   means    those
10    nonresidential   retail  customers  of  an  electric  utility
11    consuming  15,000  kilowatt-hours  or  less  of   electricity
12    annually in its service area.
13        "Tariffed  service"  means  services  provided  to retail
14    customers by an electric utility as defined by its  rates  on
15    file  with  the  Commission  pursuant  to  the  provisions of
16    Article IX of this Act, but  shall  not  include  competitive
17    services.
18        "Transition charge" means a charge expressed in cents per
19    kilowatt-hour  that  is calculated for a customer or class of
20    customers as follows for  each  year  in  which  an  electric
21    utility is entitled to recover transition charges as provided
22    in Section 16-108:
23             (1)  the  amount of revenue that an electric utility
24        would receive from the retail customer or customers if it
25        were serving such customers' electric  power  and  energy
26        requirements  as  a  tariffed service based on (A) all of
27        the customers' actual usage during the 3 years ending  90
28        days prior to the date on which such customers were first
29        eligible   for  delivery  services  pursuant  to  Section
30        16-104, and (B) on  (i)  the  base  rates  in  effect  on
31        October  1, 1996 (adjusted for the reductions required by
32        subsection (b)  of  Section  16-111,  for  any  reduction
33        resulting  from  a rate decrease under Section 16-101(b),
34        for any restatement of base  rates  made  in  conjunction
                            -9-           SRS90HB0362JJsaam02
 1        with   an  elimination  of  the  fuel  adjustment  clause
 2        pursuant to subsection (b), (d), or (f) of Section  9-220
 3        and  for  any  removal of decommissioning costs from base
 4        rates  pursuant  to  Section  16-114)  and  any  separate
 5        automatic  rate   adjustment   riders   (other   than   a
 6        decommissioning  rate as defined in Section 16-114) under
 7        which the customers were  receiving  or,  had  they  been
 8        customers,  would have received electric power and energy
 9        from the electric utility  during  the  year  immediately
10        preceding  the  date  on  which such customers were first
11        eligible for delivery service pursuant to Section 16-104,
12        or (ii) to the extent  applicable,  any  contract  rates,
13        including   contracts   or   rates  for  consolidated  or
14        aggregated  billing,  under  which  such  customers  were
15        receiving electric power and  energy  from  the  electric
16        utility during such year;
17             (2)  less  the amount of revenue, other than revenue
18        from transition charges and decommissioning  rates,  that
19        the  electric  utility  would  receive  from  such retail
20        customers for delivery services provided by the  electric
21        utility,  assuming  such  customers  were taking delivery
22        services for all of their usage, based  on  the  delivery
23        services  tariffs in effect during the year for which the
24        transition charge is being calculated and  on  the  usage
25        identified in paragraph (1);
26             (3)  less  the  market  value for the electric power
27        and energy that the electric utility would have  used  to
28        supply  all  of such customers' electric power and energy
29        requirements, as a tariffed service, based on  the  usage
30        identified  in  paragraph  (1),  with  such  market value
31        determined in accordance with Section 16-112 of this Act;
32             (4)  less the following amount which represents  the
33        amount  to  be attributed to new revenue sources and cost
34        reductions by the electric utility through the end of the
                            -10-          SRS90HB0362JJsaam02
 1        period for which transition costs are recovered  pursuant
 2        to  Section  16-108, referred to in this Article XVI as a
 3        "mitigation factor":
 4                  (A)  for nonresidential  retail  customers,  an
 5             amount  equal  to  the  greater of (i) 0.5 cents per
 6             kilowatt-hour during  the  period  October  1,  1999
 7             through   December   31,   2004,   0.6   cents   per
 8             kilowatt-hour  in  calendar year 2005, and 0.9 cents
 9             per kilowatt-hour in calendar year 2006,  multiplied
10             in  each  year  by the usage identified in paragraph
11             (1), or  (ii)  an  amount  equal  to  the  following
12             percentages  of  the amount produced by applying the
13             applicable base  rates  (adjusted  as  described  in
14             subparagraph  (1)(B))  or contract rate to the usage
15             identified in  paragraph  (1):  8%  for  the  period
16             October  1,  1999  through December 31, 2002, 10% in
17             calendar years 2003 and 2004, 11% in  calendar  year
18             2005 and 12% in calendar year 2006; and
19                  (B)  for   residential   retail  customers,  an
20             amount equal to the  following  percentages  of  the
21             amount produced by applying the base rates in effect
22             on   October  1,  1996  (adjusted  as  described  in
23             subparagraph (1)(B))  to  the  usage  identified  in
24             paragraph  (1):  (i)  6%  from  May  1, 2002 through
25             December 31, 2002, (ii) 7% in  calendar  years  2003
26             and  2004,  (iii) 8% in calendar year 2005, and (iv)
27             10% in calendar year 2006;
28             (5)  divided  by  the  usage   of   such   customers
29        identified in paragraph (1),
30    provided  that the transition charge shall never be less than
31    zero.
32        "Unbundled service" means a component or constituent part
33    of a tariffed service which the electric utility subsequently
34    offers separately to its customers.
                            -11-          SRS90HB0362JJsaam02
 1        (220 ILCS 5/16-103 new)
 2        Sec. 16-103. Service obligations of electric utilities.
 3        (a)  An  electric  utility  shall  continue  offering  to
 4    retail customers each tariffed service that it offered  as  a
 5    distinct  and  identifiable  service on the effective date of
 6    this amendatory  Act  of  1997  until  the   service  is  (i)
 7    declared  competitive  pursuant  to  Section  16-113, or (ii)
 8    abandoned  pursuant  to  Section  8-508.  Nothing   in   this
 9    subsection   shall  be  construed  as  limiting  an  electric
10    utility's right to propose,  or  the  Commission's  power  to
11    approve, allow or order modifications in the rates, terms and
12    conditions  for  such  services  pursuant  to  Article  IX or
13    Section 16-111 of this Act.
14        (b)  An electric utility shall also  offer,  as  tariffed
15    services,  delivery services in accordance with this Article,
16    the power purchase options described in  Section  16-110  and
17    real-time pricing as provided in Section 16-107.
18        (c)  Notwithstanding any other provision of this Article,
19    each   electric   utility  shall  continue  offering  to  all
20    residential customers and  to  all  small  commercial  retail
21    customers in its service area, as a tariffed service, bundled
22    electric   power  and  energy  delivered  to  the  customer's
23    premises consistent with the bundled utility service provided
24    by the  electric  utility  on  the  effective  date  of  this
25    amendatory  Act of 1997. Upon declaration of the provision of
26    electric  power  and  energy  as  competitive,  the  electric
27    utility shall continue to  offer  to  such  customers,  as  a
28    tariffed  service,  bundled  service  options  at rates which
29    reflect recovery of all cost  components  for  providing  the
30    service.  For those components of the service which have been
31    declared competitive, cost shall be the market based  prices.
32    Market  based  prices  as  referred to herein shall mean, for
33    electric power  and  energy,  either  (i)  those  prices  for
34    electric  power  and energy determined as provided in Section
                            -12-          SRS90HB0362JJsaam02
 1    16-112, or (ii) the electric utility's cost of obtaining  the
 2    electric  power and energy at wholesale through a competitive
 3    bidding or other arms-length acquisition process.
 4        (d)  Any residential or small commercial retail  customer
 5    which  elects  delivery services is entitled to return to the
 6    electric utility's bundled utility tariffed service  offering
 7    provided  in  accordance  with subsection (c) of this Section
 8    upon payment of a reasonable administrative fee  which  shall
 9    be  set  forth  in  the  tariff,  provided, however, that the
10    electric utility shall be entitled to  impose  the  condition
11    that  such customer may not elect delivery services for up to
12    24 months thereafter.
13        (e)  The Commission shall not require an electric utility
14    to  offer  any  tariffed  service  other  than  the  services
15    required by this Section, and shall not require  an  electric
16    utility to offer any competitive service.
17        (220 ILCS 5/16-104 new)
18        Sec.  16-104.   Delivery  services  transition  plan.  An
19    electric  utility  shall  provide delivery services to retail
20    customers in accordance with the provisions of this Section.
21        (a)  Each electric utility shall offer delivery  services
22    to retail customers located in its service area in accordance
23    with the following provisions:
24             (1)  On  or  before  October  1,  1999, the electric
25        utility  shall  offer  delivery  services  (i)   to   any
26        non-residential  retail  customer  whose  average monthly
27        maximum  electrical  demand  on  the  electric  utility's
28        system during the 6 months with  the  customer's  highest
29        monthly  maximum demands in the 12 months ending June 30,
30        1999  equals  or  exceeds  4  megawatts;  (ii)   to   any
31        non-governmental,   non-residential,   commercial  retail
32        customers under common ownership doing business at 10  or
33        more  separate  locations  within  the electric utility's
                            -13-          SRS90HB0362JJsaam02
 1        service area, if the aggregate coincident average monthly
 2        maximum electrical demand of all  such  locations  during
 3        the  6 months with the customer's highest monthly maximum
 4        electrical demands during the 12 months ending  June  30,
 5        1999  equals or exceeds 9.5 megawatts, provided, however,
 6        that an electric utility's obligation to  offer  delivery
 7        services  under this clause (ii) shall not exceed 3.5% of
 8        the maximum electric demand  on  the  electric  utility's
 9        system  in  the 12 months ending June 30, 1999; and (iii)
10        to non-residential retail customers whose annual electric
11        energy use comprises  33%  of  the  kilowatt-hour  sales,
12        excluding  the kilowatt-hour sales to customers described
13        in clauses (i) and (ii), to each  non-residential  retail
14        customer class of the electric utility.
15             (2)  On  or  before  October  1,  2000, the electric
16        utility shall offer delivery  services  to  the  eligible
17        governmental  customers  described in subsections (a) and
18        (b)  of  Section  16-125A  if  the  aggregate  coincident
19        average  monthly  maximum  electrical  demand   of   such
20        customers during the 6 months with the customers' highest
21        monthly  maximum  electrical demands during the 12 months
22        ending June 30, 2000 equals or exceeds 9.5 megawatts.
23             (3)  On or before December 31,  2000,  the  electric
24        utility  shall  offer  delivery services to all remaining
25        nonresidential retail customers in its service area.
26             (4)  On or before May 1, 2002, the electric  utility
27        shall  offer  delivery services to all residential retail
28        customers in its service area.
29        The loads and kilowatt-hour sales used  for  purposes  of
30    this  subsection shall be those for the 12 months ending June
31    30, 1999 for nonresidential retail  customers.  The  electric
32    utility shall identify those customers to be offered delivery
33    service  pursuant to clause (1)(iii) pursuant to a lottery or
34    other random non-discriminatory selection process  set  forth
                            -14-          SRS90HB0362JJsaam02
 1    in  the  electric  utility's delivery services implementation
 2    plan   pursuant   to   Section   16-105.    Provided,    that
 3    non-residential  retail  customers  under common ownership at
 4    separate locations within the electric utility's service area
 5    may elect, prior to the date the  electric  utility  conducts
 6    the lottery or other random selection process for purposes of
 7    clause   (1)(iii),   to  designate  themselves  as  a  common
 8    ownership group, to be excluded  from  such  lottery  and  to
 9    instead  participate  in  a  separate lottery for such common
10    ownership group pursuant to which delivery services  will  be
11    offered to non-residential retail customers comprising 33% of
12    the  total  kilowatt-hour sales to the common ownership group
13    on  or  before  October  1,  1999.   For  purposes  of   this
14    subsection  (a),  an  electric  utility  may  define  "common
15    ownership"  to  exclude  sites which are not part of the same
16    business, provided, that auxiliary establishments as  defined
17    in the Standard Industrial Classification Manual published by
18    the  United  States Office of Management and Budget shall not
19    be excluded.
20        (b)  The electric utility shall allow the aggregation  of
21    loads that are eligible for delivery services so long as such
22    aggregation meets the criteria for delivery of electric power
23    and  energy applicable to the electric utility established by
24    the  regional  reliability  council  to  which  the  electric
25    utility  belongs,  by   an   independent   system   operating
26    organization  to  which  the  electric utility belongs, or by
27    another organization responsible for overseeing the integrity
28    and reliability of the transmission system, as such  criteria
29    are  in  effect  from  time to time. The Commission may adopt
30    rules and regulations governing the criteria for  aggregation
31    of  the loads utilizing delivery services, but its failure to
32    do so shall not preclude any eligible customer from  electing
33    delivery  services.   The  electric  utility shall allow such
34    aggregation  for  any  voluntary   grouping   of   customers,
                            -15-          SRS90HB0362JJsaam02
 1    including without limitation those having a common agent with
 2    contractual  authority  to purchase electric power and energy
 3    and delivery services on  behalf  of  all  customers  in  the
 4    grouping.
 5        (c)  An  electric  utility  shall allow a retail customer
 6    that  generates  power  for  its  own  use  to  include   the
 7    electrical  demand  obtained from the customer's cogeneration
 8    or self-generation facilities that  is  coincident  with  the
 9    retail  customer's  maximum  monthly electrical demand on the
10    electric  utility's  system  in  any  determination  of   the
11    customer's  maximum monthly electrical demand for purposes of
12    determining  when  such  retail  customer  shall  be  offered
13    delivery services pursuant to clause (i) of subparagraph  (1)
14    of subsection (a) of this Section.
15        (d)  The  Commission  shall  establish charges, terms and
16    conditions for delivery services in accordance  with  Section
17    16-108.
18        (e)  Subject  to  the  terms  and  conditions  which  the
19    electric  utility  is  entitled  to impose in accordance with
20    Section 16-108, a retail customer that is eligible  to  elect
21    delivery services pursuant to subsection (a) may place all or
22    a  portion  of  its electric power and energy requirements on
23    delivery services.
24        (f)  An electric utility may require  a  retail  customer
25    who elects to (i) use an alternative retail electric supplier
26    or  another  electric  utility  for  some  but not all of its
27    electric power or  energy  requirements,  and  (ii)  use  the
28    electric  utility  for  any portion of its remaining electric
29    power and energy requirements,  to place the portion  of  the
30    customer's electric power or energy requirement that is to be
31    served by the electric utility on a tariff containing charges
32    that  are set to recover the lowest reasonably available cost
33    to the electric  utility  of  acquiring  electric  power  and
34    energy  on  the  wholesale  electric  market  to  serve  such
                            -16-          SRS90HB0362JJsaam02
 1    remaining portion of the customer's electric power and energy
 2    requirement,  reasonable  compensation  for arranging for and
 3    providing such electric power or  energy,  and  the  electric
 4    utility's  other costs of providing service to such remaining
 5    electric power and energy requirement.
 6        (220 ILCS 5/16-105 new)
 7        Sec. 16-105.  Delivery services implementation  plan.  To
 8    ensure  the  safe  and  orderly  implementation  of  delivery
 9    services,   each   electric   utility  shall  submit  to  the
10    Commission no later than March 1, 1999, a  delivery  services
11    implementation  plan  for  non-residential  customers  and no
12    later than August 1, 2001, a delivery services implementation
13    plan  for  residential  customers.  The   delivery   services
14    implementation  plan  shall detail the process and procedures
15    by which each electric utility will offer  delivery  services
16    to  each  customer  class  and shall be designed to insure an
17    orderly transition and the maintenance of  reliable  service.
18    The  Commission  shall enter an order approving, or approving
19    as modified, the delivery  services  implementation  plan  of
20    each electric utility no later than 60 days prior to the date
21    on  which  the  electric  utility must commence offering such
22    services.
23        (220 ILCS 5/16-106 new)
24        Sec. 16-106.  Billing experiments.  During the  mandatory
25    transition  period, an electric utility may at its discretion
26    conduct one or more experiments for the provision or  billing
27    of  services  on  a consolidated or aggregated basis, for the
28    provision of real-time pricing, or other billing  or  pricing
29    experiments, and may include experimental programs offered to
30    groups  of  retail  customers possessing common attributes as
31    defined by the electric utility, such as the  members  of  an
32    organization  that  was  established  to serve a well-defined
                            -17-          SRS90HB0362JJsaam02
 1    industry  group,  companies   having   multiple   sites,   or
 2    closely-located  or  affiliated buildings, provided that such
 3    groups exist  for  a  purpose  other  than  obtaining  energy
 4    services  and  have  been in existence for at least 10 years.
 5    The offering of such a program  by  an  electric  utility  to
 6    retail  customers  participating  in  the  program,  and  the
 7    participation  by  those  customers in the program, shall not
 8    create any right in any other retail  customer  or  group  of
 9    customers  to  participate  in the same or a similar program.
10    The Commission shall allow such experiments to go into effect
11    upon the filing  by  the  electric  utility  of  a  statement
12    describing  the  program.   Nothing contained in this Section
13    shall  be  deemed  to  prohibit  the  electric  utility  from
14    offering, or  the  Commission  from  approving,  experimental
15    rates,  tariffs  and  services  in  addition to those allowed
16    under this Section.  The Commission shall review  and  report
17    annually  the  progress,  participation  and  effects of such
18    experiments to the General Assembly.  Based upon its  review,
19    recommendations  for  modification of such experiments may be
20    made by the Commission to the Illinois General Assembly.
21        (220 ILCS 5/16-107 new)
22        Sec. 16-107.  Real-time pricing.
23        (a)  Each electric utility shall file, on or  before  May
24    1,  1998,  a  tariff  or  tariffs  which allow nonresidential
25    retail customers in the electric utility's  service  area  to
26    elect real-time pricing beginning October 1, 1998.
27        (b)  Each  electric  utility shall file, on or before May
28    1, 2000, a tariff or tariffs which allow  residential  retail
29    customers  in  the  electric  utility's service area to elect
30    real-time pricing beginning October 1, 2000.
31        (c)  The  electric  utility's  tariff  or  tariffs  filed
32    pursuant to this Section shall be subject to Article IX.
                            -18-          SRS90HB0362JJsaam02
 1        (220 ILCS 5/16-108 new)
 2        Sec.  16-108.  Recovery  of  costs  associated  with  the
 3    provision of delivery services.
 4        (a)  An electric utility shall file a  delivery  services
 5    tariff  with  the  Commission  at least 210 days prior to the
 6    date that it is required  to  begin  offering  such  services
 7    pursuant  to this Act.  An electric utility shall provide the
 8    components of delivery  services  that  are  subject  to  the
 9    jurisdiction  of  the Federal Energy Regulatory Commission at
10    the same prices,  terms  and  conditions  set  forth  in  its
11    applicable  tariff as approved or allowed into effect by that
12    Commission. The Commission shall otherwise have the authority
13    pursuant to Article IX to review,  approve,  and  modify  the
14    prices,  terms and conditions of those components of delivery
15    services not subject  to  the  jurisdiction  of  the  Federal
16    Energy  Regulatory  Commission,  including  the  authority to
17    determine the extent to which such delivery  services  should
18    be  offered  on  an  unbundled  basis.   In  making  any such
19    determination the Commission shall consider,  at  a  minimum,
20    the  effect  of additional unbundling on (i) the objective of
21    just and reasonable rates, (ii) electric  utility  employees,
22    and (iii) the development of competitive markets for electric
23    energy services in Illinois.
24        (b)  The  Commission  shall  enter an order approving, or
25    approving as modified, the delivery services tariff no  later
26    than  30 days prior to the date on which the electric utility
27    must commence offering such  services.   The  Commission  may
28    subsequently modify such tariff pursuant to this Act.
29        (c)    The  electric  utility's  tariffs shall define the
30    classes of its customers for purposes  of  delivery  services
31    charges.    Delivery   services  shall  be  priced  and  made
32    available to all retail customers electing delivery  services
33    in  each  such class on a non-discriminatory basis regardless
34    of whether the retail customer chooses the electric  utility,
                            -19-          SRS90HB0362JJsaam02
 1    an  affiliate  of  the electric utility, or another entity as
 2    its supplier of  electric  power  and  energy.   Charges  for
 3    delivery  services  shall  be cost based, and shall allow the
 4    electric utility to recover the costs of  providing  delivery
 5    services   through   its  charges  to  its  delivery  service
 6    customers that use the  facilities  and  services  associated
 7    with  such  costs.  Such  costs  shall  include  the costs of
 8    owning,   operating   and   maintaining   transmission    and
 9    distribution   facilities.   The  Commission  shall  also  be
10    authorized to consider whether, and if so to what extent, the
11    following costs are appropriately included  in  the  electric
12    utility's  delivery  services  rates:  (i)  the costs of that
13    portion of generation facilities used for the production  and
14    absorption  of  reactive power in order that retail customers
15    located in the electric utility's service  area  can  receive
16    electric  power  and  energy  from  suppliers  other than the
17    electric utility, and (ii) the costs associated with the  use
18    and   redispatch   of   generation   facilities  to  mitigate
19    constraints on the transmission  or  distribution  system  in
20    order that retail customers located in the electric utility's
21    service  area  can  receive  electric  power  and energy from
22    suppliers other than the electric utility.  Nothing  in  this
23    subsection  shall be construed as directing the Commission to
24    allocate any of the costs described in (i) or (ii)  that  are
25    found  to be appropriately included in the electric utility's
26    delivery services rates to any particular customer  group  or
27    geographic area in setting delivery services rates.
28        (d)  The  Commission  shall  establish charges, terms and
29    conditions for delivery services that are just and reasonable
30    and  shall  take   into   account   customer   impacts   when
31    establishing such charges. In establishing charges, terms and
32    conditions  for  delivery services, the Commission shall take
33    into account voltage level differences.   A  retail  customer
34    shall have the option to request to purchase electric service
                            -20-          SRS90HB0362JJsaam02
 1    at  any  delivery  service voltage reasonably and technically
 2    feasible from the electric facilities serving that customer's
 3    premises provided  that  there  are  no  significant  adverse
 4    impacts  upon  system  reliability  or  system efficiency.  A
 5    retail customer shall also have  the  option  to  request  to
 6    purchase  electric  service  at any point of delivery that is
 7    reasonably and technically feasible provided that  there  are
 8    no  significant  adverse  impacts  on  system  reliability or
 9    efficiency. Such requests shall not be unreasonably denied.
10        (e)  Electric  utilities  shall  recover  the  costs   of
11    installing,  operating  or  maintaining  facilities  for  the
12    particular   benefit   of   one  or  more  delivery  services
13    customers, including without limitation any costs incurred in
14    complying with  a  customer's  request  to  be  served  at  a
15    different voltage level, directly from the retail customer or
16    customers  for  whose benefit the costs were incurred, to the
17    extent such costs  are  not  recovered  through  the  charges
18    referred to in subsections (c) and (d) of this Section.
19        (f)  An  electric  utility  shall  be  entitled  but  not
20    required  to implement transition charges in conjunction with
21    the offering of delivery services pursuant to Section 16-104.
22    If an electric  utility  implements  transition  charges,  it
23    shall  implement  such  charges  for  all  delivery  services
24    customers  and for all customers described in subsection (h).
25    Such charges shall  be  calculated  as  provided  in  Section
26    16-102,   and   shall  be  collected  on  each  kilowatt-hour
27    delivered under  a  delivery  services  tariff  to  a  retail
28    customer  from  the  date  the  customer first takes delivery
29    services until  December  31,  2006  except  as  provided  in
30    subsection  (h)  of  this Section. Provided, however, that an
31    electric utility shall be entitled to petition for  entry  of
32    an  order  by the Commission authorizing the electric utility
33    to implement transition  charges  for  an  additional  period
34    ending no later than December 31, 2008.  The electric utility
                            -21-          SRS90HB0362JJsaam02
 1    shall  file  its petition with supporting evidence no earlier
 2    than 16 months,  and  no  later  than  12  months,  prior  to
 3    December  31,  2006.   The Commission shall hold a hearing on
 4    the electric utility's petition and shall enter its order  no
 5    later  than  8  months  after  the  petition  is  filed.  The
 6    Commission shall determine whether and  to  what  extent  the
 7    electric  utility shall be authorized to implement transition
 8    charges  for  an  additional  period.   The  Commission   may
 9    authorize   the  electric  utility  to  implement  transition
10    charges for some or all of the additional period,  and  shall
11    determine  the  mitigation factors to be used in implementing
12    such transition charges; provided, that the Commission  shall
13    not  authorize  mitigation factors less than 110% of those in
14    effect during the 12 months  ended  December  31,  2006.   In
15    making  its  determination, the Commission shall consider the
16    following factors:  the  necessity  to  implement  transition
17    charges  for  an  additional  period in order to maintain the
18    financial integrity of the electric utility; the prudence  of
19    the  electric  utility's  actions in reducing its costs since
20    the effective date  of  this  amendatory  Act  of  1997;  the
21    ability of the electric utility to provide safe, adequate and
22    reliable service to retail customers in its service area; and
23    the impact on competition of allowing the electric utility to
24    implement transition charges for the additional period.
25        (g)  The   electric   utility  shall  file  tariffs  that
26    establish the transition charges to be paid by each class  of
27    customers  to  the  electric  utility in conjunction with the
28    provision  of  delivery  services.  The  electric   utility's
29    tariffs  shall  define  the  classes  of  its  customers  for
30    purposes  of  calculating  transition  charges.  The electric
31    utility's  tariffs  shall  provide  for  the  calculation  of
32    transition charges  on  a  customer-specific  basis  for  any
33    retail  customer  whose  average  monthly  maximum electrical
34    demand on the electric utility's system during the  6  months
                            -22-          SRS90HB0362JJsaam02
 1    with   the  customer's  highest  monthly  maximum  electrical
 2    demands  equals  or  exceeds  3.0  megawatts   for   electric
 3    utilities having more than 1,000,000 customers, and for other
 4    electric  utilities  for  any  customer  that  has an average
 5    monthly maximum electrical demand on the  electric  utility's
 6    system  of  one  megawatt  or  more,  and (A) for which there
 7    exists data on  the  customer's  usage  during  the  3  years
 8    preceding  the date that the customer became eligible to take
 9    delivery services, or (B) for which there does not exist data
10    on the customer's usage during the 3 years preceding the date
11    that the customer became eligible to take delivery  services,
12    if in the electric utility's reasonable judgment there exists
13    comparable usage information or a sufficient basis to develop
14    such  information,  and  further  provided  that the electric
15    utility  can  require  customers  for  which  an   individual
16    calculation  is  made  to  sign  contracts that set forth the
17    transition charges to be paid by the customer to the electric
18    utility pursuant to the tariff.
19        (h)  An electric utility shall also be entitled  to  file
20    tariffs  that  allow  it  to  collect transition charges from
21    retail customers in the electric utility's service area  that
22    do not take delivery services but that take electric power or
23    energy  from  an alternative retail electric supplier or from
24    an electric utility other than the electric utility in  whose
25    service  area the customer is located.  Such charges shall be
26    calculated, in accordance with the definition  of  transition
27    charges  in  Section  16-102, for the period of time that the
28    customer would be obligated to pay transition charges  if  it
29    were  taking  delivery services, except that no deduction for
30    delivery services revenues shall be made in such calculation,
31    and usage data from the customer's class shall be used  where
32    historical  usage  data  is  not available for the individual
33    customer.  The  customer  shall  be  obligated  to  pay  such
34    charges  on  a  lump sum basis on or before the date on which
                            -23-          SRS90HB0362JJsaam02
 1    the customer commences to take service from  the  alternative
 2    retail electric supplier or other electric utility, provided,
 3    that  the electric utility in whose service area the customer
 4    is located shall offer the customer the option of  signing  a
 5    contract  pursuant  to  which  the customer pays such charges
 6    ratably over the period in which the charges would  otherwise
 7    have applied.
 8        (i)  An  electric utility shall be entitled to add to the
 9    bills of delivery  services  customers  charges  pursuant  to
10    Sections   9-221,   9-222  (except  as  provided  in  Section
11    9-222.1), and Section 16-114 of this Act, Section 5-5 of  the
12    Electricity  Infrastructure  Maintenance Fee Law, Section 6-5
13    of  the  Renewable  Energy,  Energy  Efficiency,   and   Coal
14    Resources  Development  Law  of  1997,  and Section 13 of the
15    Energy Assistance Act of 1989.
16        (j)  If a retail customer that obtains electric power and
17    energy  from  cogeneration  or   self-generation   facilities
18    installed  for  its  own  use  on  or before January 1, 1997,
19    subsequently  takes  service  from  an   alternative   retail
20    electric  supplier  or  an  electric  utility  other than the
21    electric utility  in  whose  service  area  the  customer  is
22    located  for any portion of the customer's electric power and
23    energy requirements formerly obtained from  those  facilities
24    (including  that amount purchased from the utility in lieu of
25    such generation and not as standby power purchases,  under  a
26    cogeneration   displacement   tariff  in  effect  as  of  the
27    effective  date  of  this  amendatory  Act  of   1997),   the
28    transition   charges   otherwise   applicable   pursuant   to
29    subsections  (f),  (g),  or  (h) of this Section shall not be
30    applicable in any year to  that  portion  of  the  customer's
31    electric power and energy requirements formerly obtained from
32    those   facilities,  provided,  that  for  purposes  of  this
33    subsection (j), such portion shall  not  exceed  the  average
34    number   of   kilowatt-hours   per  year  obtained  from  the
                            -24-          SRS90HB0362JJsaam02
 1    cogeneration or self-generation facilities during the 3 years
 2    prior to the date on which the customer became  eligible  for
 3    delivery  services,  except  as provided in subsection (f) of
 4    Section 16-110.
 5        (220 ILCS 5/16-109 new)
 6        Sec. 16-109. Unbundling of delivery services;  Commission
 7    review.  The  General  Assembly  finds  that  the offering of
 8    delivery services will, and is intended  to,  facilitate  the
 9    development  of competition for generation services, and that
10    competition may develop for other services currently  offered
11    on  a tariffed basis by the electric utility.  The Commission
12    shall open a proceeding  to  investigate  the  need  for  and
13    desirability   of   different  or  additional  unbundling  of
14    delivery services for some or all electric utilities 3  years
15    from  the  date  that a tariff for delivery services is first
16    approved or allowed into effect  pursuant  to  this  Section.
17    The  Commission  shall open an additional proceeding to again
18    investigate the need for and  desirability  of  different  or
19    additional  unbundling  of  delivery services for some or all
20    electric utilities, 3 years after  the  entry  of  its  final
21    order  in the first investigation proceeding.  The Commission
22    shall issue its final order in each investigation  proceeding
23    no later than 6 months after the proceeding is initiated.  In
24    each  such  proceeding  the  Commission  shall consider, at a
25    minimum, the effect  of  additional  unbundling  on  (i)  the
26    objective of just and reasonable rates, (ii) electric utility
27    employees,  and  (iii) the development of competitive markets
28    for electric energy services in Illinois.   Specific  changes
29    to  the  delivery  services  tariffs  of  individual electric
30    utilities to implement findings and directives stated  in  an
31    order  in  an  investigation  proceeding initiated under this
32    Section  shall  be  addressed  through  individual   electric
33    utility   tariff   filings.   The  Commission  may  also,  in
                            -25-          SRS90HB0362JJsaam02
 1    accordance with Section 16-108, upon complaint  or  upon  its
 2    own  initiative  without  complaint,  upon reasonable notice,
 3    enter upon a hearing concerning the need and desirability  of
 4    requiring additional or other unbundling of delivery services
 5    offered by electric utilities.
 6        (220 ILCS 5/16-109A new)
 7        Sec.   16-109A.    Unbundling   of  prices  for  tariffed
 8    services;  Commission  investigation.   In  addition  to  the
 9    unbundling authorized under Sections 16-108 and  16-109,  the
10    Commission  shall  have the authority to investigate the need
11    for, and to  require,  the  restructuring  or  unbundling  of
12    prices  for  tariffed services, other than delivery services,
13    offered by an electric utility; provided, however,  that  the
14    Commission   shall   not   enter   an   order  requiring  the
15    restructuring or unbundling of prices for any  such  tariffed
16    services for a customer class of an electric utility prior to
17    the  date  that the class first becomes eligible for delivery
18    services pursuant to Section 16-104.
19        (220 ILCS 5/16-110 new)
20        Sec. 16-110. Delivery services  customer  power  purchase
21    options.
22        (a)  Each electric utility shall offer a tariffed service
23    or  services  in accordance with the terms and conditions set
24    forth in this Section pursuant to which  its  non-residential
25    delivery  services  customers  may purchase from the electric
26    utility an amount of electric power and energy that is  equal
27    to  or  less  than  the  amounts  that  are delivered by such
28    electric utility.
29        (b)  Except as provided  in  subsection  (o)  of  Section
30    16-112,  a non-residential delivery services customer that is
31    paying transition charges to the electric  utility  shall  be
32    permitted  to  purchase  electric  power  and energy from the
                            -26-          SRS90HB0362JJsaam02
 1    electric utility at a price or prices equal to the sum of (i)
 2    the market  values  that  are  determined  for  the  electric
 3    utility  in  accordance  with  Section 16-112 and used by the
 4    electric  utility  to  calculate  the  customer's  transition
 5    charges and (ii) a fee that compensates the electric  utility
 6    for any administrative costs it incurs in arranging to supply
 7    such  electric  power  and  energy.  The electric utility may
 8    require that the customer purchase such  electric  power  and
 9    energy  for  periods  of  not less than one year and may also
10    require that the customer give up to 30  days  notice  for  a
11    purchase  of  one  year's duration, and 90 day's notice for a
12    purchase of more than one year's duration.  A non-residential
13    delivery service customer exercising the option described  in
14    this  subsection  may  sell  or  assign  its interests in the
15    electric power or energy that the customer has purchased.  At
16    least  twice per year, each electric utility shall notify its
17    small commercial retail customers, through bill  inserts  and
18    other similar means, of their option to obtain electric power
19    and energy through purchases at market value pursuant to this
20    subsection.
21        (c)  After  the  transition charge period applicable to a
22    non-residential delivery services  customer,  and  until  the
23    provision   of   electric   power   and  energy  is  declared
24    competitive for the customer  group  to  which  the  customer
25    belongs,  a  non-residential  delivery services customer that
26    paid any transition charges it was legally obligated  to  pay
27    to  an  electric  utility  shall  be  permitted  to  purchase
28    electric  power  and  energy  from  the  electric utility for
29    contract periods of one year at a price or  prices  equal  to
30    the   sum  of  (i)  the  market  value  determined  for  that
31    customer's class pursuant to Section 16-112 and (ii)  to  the
32    extent  it  is  not  included  in such market value, a fee to
33    compensate the electric utility for the service of  arranging
34    the  supply  or  purchase  of such electric power and energy.
                            -27-          SRS90HB0362JJsaam02
 1    The electric utility may require  that  a  delivery  services
 2    customer  give  the following notice for such a purchase: (i)
 3    for a small commercial retail  customer,  not  more  than  30
 4    days; (ii) for a nonresidential customer which is not a small
 5    commercial  retail  customer but which has maximum electrical
 6    demand of less than 500 kilowatts, not more  than  6  months;
 7    (iii)  for  a nonresidential customer with maximum electrical
 8    demand of 500 kilowatts or more but less than  one  megawatt,
 9    not  more  than  9  months;  and  (iv)  for  a nonresidential
10    customer with maximum electrical demand of  one  megawatt  or
11    more,  not  more than one year. At least twice per year, each
12    electric utility shall notify  its  small  commercial  retail
13    customers,  through  bill  inserts or other similar means, of
14    their option to obtain  electric  power  and  energy  through
15    purchases at market value pursuant to this subsection.
16        (d)  After  the  transition charge period applicable to a
17    non-residential delivery services  customer,  and  until  the
18    provision   of   electric   power   and  energy  is  declared
19    competitive for the customer  group  to  which  the  customer
20    belongs,  a non-residential delivery services customer, other
21    than a  small  commercial  retail  customer,  that  paid  any
22    transition  charges  it  was  legally  obligated to pay to an
23    electric utility shall  be  permitted  to  purchase  electric
24    power  and  energy  from  the  electric  utility for contract
25    periods of one year at a price or prices equal to (A) the sum
26    of (i) the electric utility's actual cost of  procuring  such
27    electric  power  and  energy  and  (ii)  a  broker's  fee  to
28    compensate the electric utility for arranging the supply, or,
29    if  the  utility  so elects, (B) the market value of electric
30    power or energy provided by the electric  utility  determined
31    as  set  forth  in  the  electric  utility's  tariff for that
32    customer's class.  The electric utility may require that  the
33    delivery services customer give up to 30 days notice for such
34    a purchase.
                            -28-          SRS90HB0362JJsaam02
 1        (e)  Each  delivery services customer purchasing electric
 2    power and energy from the  electric  utility  pursuant  to  a
 3    tariff  filed  in accordance with this Section shall also pay
 4    all of the applicable  charges  set  forth  in  the  electric
 5    utility's  delivery  services  tariffs  and any other tariffs
 6    applicable to the services provided to that customer  by  the
 7    electric utility.
 8        (f)  An  electric  utility  can require a retail customer
 9    taking delivery services  that  formerly  generated  electric
10    power and energy for its own use and that would not otherwise
11    pay transition charges on a portion of its electric power and
12    energy  requirements  served  on  delivery  services  to  pay
13    transition charges on that portion of the customer's electric
14    power  and  energy  requirements as a condition of exercising
15    the delivery services customer  power  purchase  options  set
16    forth in this Section.
17        (220 ILCS 5/16-111 new)
18        Sec.  16-111. Rates and restructuring transactions during
19    mandatory transition period.
20        (a)  During    the    mandatory    transition     period,
21    notwithstanding  any provision of Article IX of this Act, and
22    except as provided in subsections (b), (d), (e), and  (f)  of
23    this   Section,   the  Commission  shall  not  (i)  initiate,
24    authorize or order any change by way of increase (other  than
25    in  connection  with  a  request  for rate increase which was
26    filed after September 1, 1997 but prior to October 15,  1997,
27    by  an electric utility serving less than 12,500 customers in
28    this state),  (ii)  initiate  or,  unless  requested  by  the
29    electric  utility,  authorize  or  order any change by way of
30    decrease, restructuring or unbundling (except as provided  in
31    Section  16-109A),  in the rates of any electric utility that
32    were in effect on October 1, 1996,  or  (iii)  in  any  order
33    approving  any  application  for a merger pursuant to Section
                            -29-          SRS90HB0362JJsaam02
 1    7-204 that was  pending  as  of  May  16,  1997,  impose  any
 2    condition  requiring any filing for an increase, decrease, or
 3    change in, or other review of, an electric utility's rates or
 4    enforce any such  condition  of  any  such  order;  provided,
 5    however,   that   this  subsection  shall  not  prohibit  the
 6    Commission from:
 7             (1)  approving  the  application  of   an   electric
 8        utility  to  implement  an  alternative to rate of return
 9        regulation or a  regulatory  mechanism  that  rewards  or
10        penalizes  the  electric  utility  through  adjustment of
11        rates based on utility performance, pursuant  to  Section
12        9-244;
13             (2)  authorizing  an  electric  utility to eliminate
14        its fuel adjustment  clause  and  adjust  its  base  rate
15        tariffs in accordance with subsection (b), (d), or (f) of
16        Section  9-220  of  this  Act, to fix its fuel adjustment
17        factor in accordance with subsection (c) of Section 9-220
18        of this Act, or to eliminate its fuel  adjustment  clause
19        in  accordance  with  subsection  (e) of Section 9-220 of
20        this Act;
21             (3)  ordering  into  effect  tariffs  for   delivery
22        services   and  transition  charges  in  accordance  with
23        Sections 16-104 and  16-108,  for  real-time  pricing  in
24        accordance  with  Section 16-107, or the options required
25        by Section 16-110 and subsection  (n) of 16-112, allowing
26        a billing experiment in accordance with  Section  16-106,
27        or modifying delivery services tariffs in accordance with
28        Section 16-109; or
29             (4)  ordering  or allowing into effect any tariff to
30        recover charges pursuant to  Sections  9-201.5,  9-220.1,
31        9-221,  9-222  (except  as  provided in Section 9-222.1),
32        16-108, and 16-114  of  this  Act,  Section  5-5  of  the
33        Electricity  Infrastructure  Maintenance Fee Law, Section
34        6-5 of the Renewable Energy, Energy Efficiency, and  Coal
                            -30-          SRS90HB0362JJsaam02
 1        Resources  Development Law of 1997, and Section 13 of the
 2        Energy Assistance Act of 1989.
 3        (b)  Notwithstanding the provisions  of  subsection  (a),
 4    each  Illinois  electric  utility  serving  more  than 12,500
 5    customers  in  Illinois  shall  file  tariffs  (i)  reducing,
 6    effective August 1, 1998, each component of its base rates to
 7    residential retail customers by 15% from the  base  rates  in
 8    effect  immediately  prior to January 1, 1998 and (ii) if the
 9    public utility provides electric service to more than 500,000
10    customers in  this  State  on  the  effective  date  of  this
11    amendatory Act of 1997, reducing, effective May 1, 2002, each
12    component  of  its base rates to residential retail customers
13    by an additional 5% from the base rates in effect immediately
14    prior to January 1,  1998.  Provided,  however,  that  if  an
15    electric  utility's  average  residential retail rate is less
16    than or equal to the average residential retail  rate  for  a
17    group  of Midwest Utilities (consisting of all investor-owned
18    electric utilities with annual system peaks in excess of 1000
19    megawatts in the States of Illinois, Indiana, Iowa, Kentucky,
20    Michigan, Missouri,  Ohio,  and  Wisconsin),  based  on  data
21    reported   on   Form  1  to  the  Federal  Energy  Regulatory
22    Commission for calendar year 1995,  then  it  shall  only  be
23    required  to  file  tariffs (i) reducing, effective August 1,
24    1998, each component of its base rates to residential  retail
25    customers  by  5%  from  the base rates in effect immediately
26    prior to January 1, 1998, (ii) reducing, effective October 1,
27    2000, its base rates to residential retail customers  by  the
28    lesser of 5% of the base rates in effect immediately prior to
29    January  1,  1998  or  the  percentage  by which the electric
30    utility's average residential retail rate exceeds the average
31    residential retail rate of the Midwest  Utilities,  based  on
32    data  reported  on  Form  1  to the Federal Energy Regulatory
33    Commission  for  calendar  year  1999,  and  (iii)  reducing,
34    effective October 1, 2002, each component of its  base  rates
                            -31-          SRS90HB0362JJsaam02
 1    to residential retail customers by an additional amount equal
 2    to  the  lesser of 5% of the base rates in effect immediately
 3    prior to January 1, 1998  or  the  percentage  by  which  the
 4    electric  utility's  average  residential retail rate exceeds
 5    the average residential retail rate of the Midwest Utilities,
 6    based on data reported  on  Form  1  to  the  Federal  Energy
 7    Regulatory  Commission  for  calendar  year  2001.  Provided,
 8    further,  that  any  electric utility for which a decrease in
 9    base rates has been or is placed into effect between  October
10    1, 1996 and the dates specified in the preceding sentences of
11    this  subsection,  other than pursuant to the requirements of
12    this subsection, shall be entitled to reduce  the  amount  of
13    any  reduction  or  reductions  in its base rates required by
14    this subsection by the amount of  such  other  decrease.  The
15    tariffs required under this subsection shall be filed 45 days
16    in advance of the effective date. Notwithstanding anything to
17    the  contrary in Section 9-220 of this Act, no restatement of
18    base rates in conjunction with  the  elimination  of  a  fuel
19    adjustment clause under that Section shall result in a lesser
20    decrease in base rates than customers would otherwise receive
21    under   this  subsection  had  the  electric  utility's  fuel
22    adjustment clause not been eliminated.
23        (c)  Any utility reducing its base rates by 15% on August
24    1,  1998  pursuant  to  subsection  (b)  shall  include   the
25    following  statement  on  its bills for residential customers
26    from August 1 through December 31, 1998: "Effective August 1,
27    1998, your rates have been reduced by  15%  by  the  Electric
28    Service Customer Choice and Rate Relief Law of 1997 passed by
29    the  Illinois  General  Assembly.".  Any utility reducing its
30    base rates by 5% on August 1, 1998,  pursuant  to  subsection
31    (b)  shall  include  the following statement on its bills for
32    residential customers from  August  1  through  December  31,
33    1998:   "Effective  August  1,  1998,  your  rates  have been
34    reduced by 5% by the Electric  Service  Customer  Choice  and
                            -32-          SRS90HB0362JJsaam02
 1    Rate  Relief  Law  of  1997  passed  by  the Illinois General
 2    Assembly.".
 3        (d)  During the  mandatory  transition  period,  but  not
 4    before  January  1, 2000, and notwithstanding  the provisions
 5    of  subsection  (a),  an  electric  utility  may  request  an
 6    increase  in  its  base  rates  if   the   electric   utility
 7    demonstrates  that  the  2-year average of its earned rate of
 8    return  on  common  equity,  calculated  as  its  net  income
 9    applicable to common stock divided  by  the  average  of  its
10    beginning  and  ending  balances  of common equity using data
11    reported in the electric  utility's  Form  1  report  to  the
12    Federal  Energy  Regulatory Commission but adjusted to remove
13    the effects of accelerated depreciation  or  amortization  or
14    other  transition  or  mitigation measures implemented by the
15    electric utility pursuant to subsection (g) of  this  Section
16    and  the effect of any refund paid pursuant to subsection (e)
17    of this Section, is below the 2-year average for the  same  2
18    years of the monthly average yields of 30-year  U.S. Treasury
19    bonds  published  by  the  Board of Governors of the  Federal
20    Reserve System in its  weekly  H.15  Statistical  Release  or
21    successor   publication.  The  Commission  shall  review  the
22    electric utility's request, and may review the  justness  and
23    reasonableness   of  all  rates  for  tariffed  services,  in
24    accordance with the provisions of Article  IX  of  this  Act,
25    provided  that  the  Commission shall consider any special or
26    negotiated adjustments to the revenue requirement  agreed  to
27    between  the  electric  utility  and the other parties to the
28    proceeding.   In  setting  rates  under  this  Section,   the
29    Commission  shall  exclude  the  costs  and revenues that are
30    associated with  competitive  services  and  any  billing  or
31    pricing experiments conducted under Section 16-106.
32        (e)  For   the   purposes  of  this  subsection  (e)  all
33    calculations and comparisions  shall  be  performed  for  the
34    Illinois operations of multijurisdictional utilities.  During
                            -33-          SRS90HB0362JJsaam02
 1    the   mandatory   transition   period,   notwithstanding  the
 2    provisions of subsection (a), if the  2-year  average  of  an
 3    electric  utility's  earned  rate of return on common equity,
 4    calculated as its  net  income  applicable  to  common  stock
 5    divided  by  the average of its beginning and ending balances
 6    of  common  equity  using  data  reported  in  the   electric
 7    utility's  Form  1  report  to  the Federal Energy Regulatory
 8    Commission but adjusted to remove the effect  of  any  refund
 9    paid  under  this  subsection  (e),  and  further adjusted to
10    include the annual amortization of any difference between the
11    consideration received  by  an  affiliated  interest  of  the
12    electric  utility in the sale of an asset which had been sold
13    or transferred by the  electric  utility  to  the  affiliated
14    interest  subsequent to the effective date of this amendatory
15    Act of 1997 and the consideration for which  such  asset  had
16    been  sold  or  transferred  to the affiliated interest, with
17    such difference to be amortized ratably from the date of  the
18    sale by the affiliated interest to December 31, 2006, exceeds
19    the  2-year  average of the Index for the same 2 years by 1.5
20    or more percentage points, the electric  utility  shall  make
21    refunds to customers beginning the first billing day of April
22    in  the  following  year in the manner described in paragraph
23    (3) of this subsection. For purposes of this subsection  (e),
24    the  "Index"  shall  be the sum of (A) the average for the 12
25    months ended September 30 of the monthly  average  yields  of
26    30-year  U.S.  Treasury  bonds  published  by  the  Board  of
27    Governors  of  the  Federal Reserve System in its weekly H.15
28    Statistical Release or successor publication  for  each  year
29    1998  through  2004,  and  (B) (i) 4.00 percentage points for
30    each of  the  12-month  periods  ending  September  30,  1998
31    through September 30, 1999 or (ii) 5.00 percentage points for
32    each  of  the  12-month  periods  ending  September  30, 2000
33    through September 30, 2004.
34             (1)  For purposes of this  subsection  (e),  "excess
                            -34-          SRS90HB0362JJsaam02
 1        earnings"  means  the  difference  between (A) the 2-year
 2        average of the electric utility's earned rate  of  return
 3        on  common equity, less (B) the 2-year average of the sum
 4        of (i) the Index applicable to each of the  2  years  and
 5        (ii)   1.5  percentage  points;  provided,  that  "excess
 6        earnings" shall never be less than zero.
 7             (2)  On or before March 31 of each year 2000 through
 8        2005 each electric utility shall file a report  with  the
 9        Commission  showing  its  earned rate of return on common
10        equity, calculated in accordance  with  this  subsection,
11        for  the  preceding calendar year and the average for the
12        preceding 2 calendar years.
13             (3)  If an electric  utility  has  excess  earnings,
14        determined  in  accordance with paragraphs (1) and (2) of
15        this subsection, the refunds which the  electric  utility
16        shall  pay   to its customers beginning the first billing
17        day of April in the following year  shall  be  calculated
18        and applied as follows:
19                  (i)  The  electric  utility's  excess  earnings
20             shall  be multiplied by the average of the beginning
21             and ending balances of the electric utility's common
22             equity  for  the  2-year  period  in  which   excess
23             earnings occurred.
24                  (ii)  The  result  of  the  calculation  in (i)
25             shall be multiplied by 0.50 and then  divided  by  a
26             number  equal  to  1  minus  the  electric utility's
27             composite federal and State income tax rate.
28                  (iii)  The result of the  calculation  in  (ii)
29             shall   be  divided  by  the  sum  of  the  electric
30             utility's projected  total  kilowatt-hour  sales  to
31             retail customers plus projected kilowatt-hours to be
32             delivered  to delivery services customers over a one
33             year period beginning with the first billing date in
34             April in the succeeding year to  determine  a  cents
                            -35-          SRS90HB0362JJsaam02
 1             per kilowatt-hour refund factor.
 2                  (iv)  The cents per kilowatt-hour refund factor
 3             calculated   in  (iii)  shall  be  credited  to  the
 4             electric utility's customers by applying the  factor
 5             on    the   customer's   monthly   bills   to   each
 6             kilowatt-hour sold  or  delivered  until  the  total
 7             amount   calculated   in   (ii)  has  been  paid  to
 8             customers.
 9        (f)  During the mandatory transition period, an  electric
10    utility  may  file  revised tariffs reducing the price of any
11    tariffed service offered by  the  electric  utility  for  all
12    customers  taking  that  tariffed  service,  which  shall  be
13    effective 7 days after filing.
14        (g)  During  the mandatory transition period, an electric
15    utility may, without obtaining any approval of the Commission
16    other  than  that  provided  for  in  this   subsection   and
17    notwithstanding  any  other provision of this Act or any rule
18    or regulation of  the  Commission  that  would  require  such
19    approval:
20             (1)  implement a reorganization, other than a merger
21        of 2 or more public utilities as defined in Section 3-105
22        or their holding companies;
23             (2)  retire generating plants from service;
24             (3)  sell,   assign,  lease  or  otherwise  transfer
25        assets to an affiliated or  unaffiliated  entity  and  as
26        part  of  such transaction enter into service agreements,
27        power purchase agreements, or other agreements  with  the
28        transferee; provided, however, that the prices, terms and
29        conditions  of  any  power  purchase  agreement  must  be
30        approved  or  allowed  into  effect by the Federal Energy
31        Regulatory Commission; or
32             (4)  use  any  accelerated  cost   recovery   method
33        including     accelerated    depreciation,    accelerated
34        amortization or other capital recovery methods, or record
                            -36-          SRS90HB0362JJsaam02
 1        reductions to the original cost of its assets.
 2        In order to implement a reorganization, retire generating
 3    plants from service, or  sell,  assign,  lease  or  otherwise
 4    transfer  assets  pursuant  to  this  Section,  the  electric
 5    utility  shall comply with subsections (c) and (d) of Section
 6    16-128, if applicable, and provide  the  Commission  with  at
 7    least  30  days  notice  of  the  proposed  reorganization or
 8    transaction,  which  notice  shall  include   the   following
 9    information:
10                  (i)  a  complete  statement of the entries that
11             the electric utility will  make  on  its  books  and
12             records   of   account  to  implement  the  proposed
13             reorganization  or  transaction  together   with   a
14             certification  from  an independent certified public
15             accountant that such  entries  are  in  accord  with
16             generally accepted accounting principles and, if the
17             Commission  has  previously  approved guidelines for
18             cost  allocations  between  the  utility   and   its
19             affiliates,   a   certification   from   the   chief
20             accounting  officer of the utility that such entries
21             are in accord with those cost allocation guidelines;
22                  (ii)  a description of how the electric utility
23             will use proceeds of any sale, assignment, lease  or
24             transfer  to  retire  debt  or  otherwise  reduce or
25             recover the  costs  of  services  provided  by  such
26             electric utility;
27                  (iii)  a  list  of  all  federal  approvals  or
28             approvals  required from departments and agencies of
29             this State, other  than  the  Commission,  that  the
30             electric   utility   has   or   will  obtain  before
31             implementing the reorganization or transaction;
32                  (iv)  an irrevocable commitment by the electric
33             utility that  it  will  not,  as  a  result  of  the
34             transaction,  impose  any stranded cost charges that
                            -37-          SRS90HB0362JJsaam02
 1             it might  otherwise  be  allowed  to  charge  retail
 2             customers   under   federal   law  or  increase  the
 3             transition charges that it is otherwise entitled  to
 4             collect under this Article XVI; and
 5                  (v)  if  the electric utility proposes to sell,
 6             assign, lease or  otherwise  transfer  a  generating
 7             plant  that  brings  the  amount  of  net dependable
 8             generating capacity  transferred  pursuant  to  this
 9             subsection to an amount equal to or greater than 15%
10             of the electric utility's net dependable capacity as
11             of  the  effective  date  of  this amendatory Act of
12             1997, and enters into  a  power  purchase  agreement
13             with  the  entity  to which such generating plant is
14             sold, assigned, leased,  or  otherwise  transferred,
15             the  electric  utility  also  agrees,  if   its fuel
16             adjustment clause has not already  been  eliminated,
17             to   eliminate   its   fuel   adjustment  clause  in
18             accordance with subsection (b) of Section 9-220  for
19             a  period  of  time  equal to the length of any such
20             power purchase agreement or successor agreement,  or
21             until  January  1, 2005, whichever is longer; if the
22             capacity of the generating plant so transferred  and
23             related  power purchase agreement does not result in
24             the elimination of the fuel adjustment clause  under
25             this  subsection, and the fuel adjustment clause has
26             not already been eliminated,  the  electric  utility
27             shall  agree  that  the  costs  associated  with the
28             transferred  plant  that   are   included   in   the
29             calculation  of  the  rate  per  kilowatt-hour to be
30             applied pursuant  to  the  electric  utility's  fuel
31             adjustment  clause  during  such  period  shall  not
32             exceed  the  per  kilowatt-hour cost associated with
33             such  generating  plant  included  in  the  electric
34             utility's fuel adjustment  clause  during  the  full
                            -38-          SRS90HB0362JJsaam02
 1             calendar  year  preceding  the  transfer,  with such
 2             limit to be  adjusted each year  thereafter  by  the
 3             Gross Domestic Product Implicit Price Deflator.
 4                  (vi)  In  addition,  if  the  electric  utility
 5             proposes  to  sell, assign, or lease, (A) either (1)
 6             an amount of generating plant that brings the amount
 7             of net dependable  generating  capacity  transferred
 8             pursuant to this subsection to an amount equal to or
 9             greater  than  15% of its net dependable capacity on
10             the effective date of this amendatory Act  of  1997,
11             or  (2)  one  or more generating plants with a total
12             net dependable capacity of 1100  megawatts,  or  (B)
13             transmission and distribution facilities that either
14             (1)   bring   the   amount   of   transmission   and
15             distribution facilities transferred pursuant to this
16             subsection to an amount equal to or greater than 15%
17             of the electric utility's total depreciated original
18             cost investment in such facilities, or (2) represent
19             an  investment  of  $25,000,000  in  terms  of total
20             depreciated  original  cost,  the  electric  utility
21             shall provide, in addition to the information listed
22             in subparagraphs  (i)  through  (v),  the  following
23             information:  a  description  of  how  the  electric
24             utility will meet its service obligations under this
25             Act in a safe and reliable manner. If the Commission
26             has  not issued an order initiating a hearing on the
27             proposed transaction within 30 days after  the  date
28             the   electric   utility's   notice  is  filed,  the
29             transaction   shall   be   deemed   approved.    The
30             Commission may, after notice and  hearing,  prohibit
31             the  proposed transaction if it makes either or both
32             of the following findings:  (1)  that  the  proposed
33             transaction  will render the electric utility unable
34             to provide its  tariffed  services  in  a  safe  and
                            -39-          SRS90HB0362JJsaam02
 1             reliable  manner,  or  (2)  that  there  is a strong
 2             likelihood  that  consummation   of   the   proposed
 3             transaction  will  result  in  the  electric utility
 4             being entitled to request an increase  in  its  base
 5             rates   during   the   mandatory  transition  period
 6             pursuant to subsection (d)  of  this  Section.   Any
 7             hearing   initiated   by  the  Commission  into  the
 8             proposed transaction shall  be  completed,  and  the
 9             Commission's  final  order  approving or prohibiting
10             the proposed transaction shall be entered, within 90
11             days after the date the  electric  utility's  notice
12             was   filed.   Provided,   however,   that  a  sale,
13             assignment, or lease of transmission  facilities  to
14             an   independent  system  operator  that  meets  the
15             requirements of Section 16-126 shall not be  subject
16             to Commission approval under this Section.
17                  In  any  proceeding conducted by the Commission
18             pursuant to  this  subparagraph  (vi),  intervention
19             shall  be  limited to parties with a direct interest
20             in the transaction  which  is  the  subject  of  the
21             hearing and any statutory consumer protection agency
22             as  defined  in  subsection  (d) of Section 9-102.1.
23             Notwithstanding the provisions of Section 10-113  of
24             this  Act,  any  application seeking rehearing of an
25             order issued under this subparagraph  (vi),  whether
26             filed  by  the electric utility or by an intervening
27             party, shall be filed within 10 days  after  service
28             of the order.
29        The  Commission shall not in any subsequent proceeding or
30    otherwise, review such a reorganization or other  transaction
31    authorized by this Section, but shall retain the authority to
32    allocate  costs  as stated in Section 16-111(i). An entity to
33    which an electric utility sells, assigns, leases or transfers
34    assets pursuant to this subsection (g) shall not, as a result
                            -40-          SRS90HB0362JJsaam02
 1    of the transactions specified  in  this  subsection  (g),  be
 2    deemed a public utility as defined in Section 3-105.  Nothing
 3    in this subsection (g) shall change any requirement under the
 4    jurisdiction  of  the  Illinois  Department of Nuclear Safety
 5    including, but not limited to, the payment of  fees.  Nothing
 6    in  this subsection (g) shall exempt a utility from obtaining
 7    a certificate pursuant to Section 8-406 of this Act  for  the
 8    construction  of a new electric generating facility.  Nothing
 9    in this subsection (g) is intended to exempt the transactions
10    hereunder  from  the  operation  of  the  federal  or   State
11    antitrust  laws. Nothing in this subsection (g) shall require
12    an electric utility to use the procedures specified  in  this
13    subsection for any of the transactions specified herein.  Any
14    other procedure available under this Act may, at the electric
15    utility's election, be used for any such transaction.
16        (h)  During   the   mandatory   transition   period,  the
17    Commission  shall  not  establish  or  use   any   rates   of
18    depreciation,  which  for  purposes  of this subsection shall
19    include amortization, for any  electric  utility  other  than
20    those established pursuant to subsection (c) of Section 5-104
21    of  this  Act  or utilized pursuant to subsection (g) of this
22    Section.  Provided, however, that in any proceeding to review
23    an electric utility's rates for tariffed services pursuant to
24    Section 9-201, 9-202, 9-250 or 16-111(d)  of  this  Act,  the
25    Commission  may  establish  new rates of depreciation for the
26    electric utility in the same manner  provided  in  subsection
27    (d)  of  Section  5-104  of  this  Act.  An  electric utility
28    implementing an accelerated cost  recovery  method  including
29    accelerated  depreciation,  accelerated amortization or other
30    capital recovery methods,  or  recording  reductions  to  the
31    original  cost  of  its assets, pursuant to subsection (g) of
32    this Section, shall file  a  statement  with  the  Commission
33    describing   the  accelerated  cost  recovery  method  to  be
34    implemented or the reduction in  the  original  cost  of  its
                            -41-          SRS90HB0362JJsaam02
 1    assets  to  be  recorded.  Upon the filing of such statement,
 2    the accelerated cost recovery method or the reduction in  the
 3    original cost of assets shall be deemed to be approved by the
 4    Commission  as  though  an  order  had  been  entered  by the
 5    Commission.
 6        (i)  Subsequent to the mandatory transition  period,  the
 7    Commission,  in any proceeding to establish rates and charges
 8    for tariffed services offered by an electric  utility,  shall
 9    consider  only  (1)  the  then current or projected revenues,
10    costs, investments and cost of capital directly or indirectly
11    associated with the provision of such tariffed services;  (2)
12    collection  of transition charges in accordance with Sections
13    16-102 and 16-108 of this Act; (3) recovery of  any  employee
14    transition  costs  as  described  in Section 16-128 which the
15    electric utility is continuing to incur,  including  recovery
16    of  any unamortized portion of such costs previously incurred
17    or committed, with such costs to be equitably allocated among
18    bundled  services,  delivery  services,  and  contracts  with
19    alternative retail electric suppliers; and  (4)  recovery  of
20    the  costs  associated with the electric utility's compliance
21    with decommissioning  funding  requirements;  and  shall  not
22    consider  any  other  revenues, costs, investments or cost of
23    capital of either the electric utility or of any affiliate of
24    the  electric  utility  that  are  not  associated  with  the
25    provision  of  tariffed  services.   In  setting  rates   for
26    tariffed  services,  the  Commission shall equitably allocate
27    joint and common costs and investments between  the  electric
28    utility's  competitive and tariffed services.  In determining
29    the justness and reasonableness of  the  electric  power  and
30    energy  component of an electric utility's rates for tariffed
31    services subsequent to the mandatory  transition  period  and
32    prior  to  the time that the provision of such electric power
33    and energy is  declared  competitive,  the  Commission  shall
34    consider  the extent to which the electric utility's tariffed
                            -42-          SRS90HB0362JJsaam02
 1    rates for such component for each customer class  exceed  the
 2    market  value  determined pursuant to Section 16-112, and, if
 3    the electric power and energy component of such tariffed rate
 4    exceeds the market value by more than 10%  for  any  customer
 5    class, may establish such electric power and energy component
 6    at  a  rate  equal  to the market value plus 10%. In any such
 7    case, the Commission may also elect to extend the  provisions
 8    of  Section  16-111(e)  for  any period in which the electric
 9    utility is collecting transition charges,  using  information
10    applicable to such period.
11        (j)  During  the mandatory transition period, an electric
12    utility may elect  to  transfer  to  a  non-operating  income
13    account  under  the  Commission's  Uniform System of Accounts
14    either or both of (i) an amount of unamortized investment tax
15    credit that is in addition to the  ratable  amount  which  is
16    credited  to  the electric utility's operating income account
17    for the year in  accordance  with  Section  46(f)(2)  of  the
18    federal  Internal Revenue Code of 1986, as in effect prior to
19    P.L. 101-508, or (ii) "excess tax reserves", as that term  is
20    defined in Section 203(e)(2)(A) of the federal Tax Reform Act
21    of  1986,  provided  that  (A) the amount transferred may not
22    exceed the amount of the electric utility's assets that  were
23    created   pursuant   to  Statement  of  Financial  Accounting
24    Standards No. 71 which the electric utility has  written  off
25    during  the mandatory transition period, and (B) the transfer
26    shall not be effective until approved by the Internal Revenue
27    Service.   An  electric  utility  electing  to  make  such  a
28    transfer shall file a statement with the  Commission  stating
29    the amount and timing of the transfer for which it intends to
30    request  approval of the Internal Revenue Service, along with
31    a copy of  its  proposed  request  to  the  Internal  Revenue
32    Service  for  a  ruling.  The Commission shall issue an order
33    within 14 days after the electric utility's filing approving,
34    subject to receipt of  approval  from  the  Internal  Revenue
                            -43-          SRS90HB0362JJsaam02
 1    Service, the proposed transfer.
 2        (220 ILCS 5/16-112 new)
 3        Sec. 16-112.  Determination of market value.
 4        (a)  The  market  value  to be used in the calculation of
 5    transition charges as defined  in  Section  16-102  shall  be
 6    determined  in  accordance  with either (i) a tariff that has
 7    been filed  by  the  electric  utility  with  the  Commission
 8    pursuant  to  Article  IX of this Act and that provides for a
 9    determination of the market  value  for  electric  power  and
10    energy  as  a  function of an exchange traded or other market
11    traded  index,  options  or  futures  contract  or  contracts
12    applicable to the market in which the utility sells, and  the
13    customers in its service area buy, electric power and energy,
14    or  (ii)  in  the  event  no such tariff has been placed into
15    effect for the electric utility, or in the event such  tariff
16    does  not  establish  market  values  for  each  of the years
17    specified in the neutral  fact-finder  process  described  in
18    subsections  (b)  through  (h)  of  this  Section,  a  tariff
19    incorporating  the  market  values resulting from the neutral
20    fact-finder process set forth in subsections (b) through  (h)
21    of this Section.
22        (b)  Except   as  provided  in  subsection  (m)  of  this
23    Section, on or before April 30, 1998, on or  before  February
24    28,  1999,  and  on  or  before each April 30 from 2000 until
25    2007, the Commission shall appoint a neutral  fact-finder  to
26    make  the  calculations   described in subsection (c) of this
27    Section.  The neutral fact-finder shall  be  a  member  of  a
28    national public accounting firm, shall not have served as the
29    neutral  fact-finder  in  the  previous  year,  and  shall be
30    selected from a list of candidates provided by  a  nationally
31    recognized   provider   of   neutral  fact-finders  that  has
32    established rules for maintaining confidentiality.  An amount
33    sufficient to pay the fees of the neutral  fact-finder  shall
                            -44-          SRS90HB0362JJsaam02
 1    be  appropriated annually from the Public Utility Fund in the
 2    State treasury.
 3        (c)  On or before June 1, 1998, on  or  before  April  1,
 4    1999,  and  on or before each June 1 from 2000 until 2007, or
 5    until discontinued in accordance with subsection (m) of  this
 6    Section,  each  electric  utility and each alternative retail
 7    electric supplier shall submit to the neutral  fact-finder  a
 8    summary  of (A) all contracts entered into after June 1, 1997
 9    that are for the sale of electric power  and  energy  from  a
10    generating  facility  or  facilities located in this State or
11    located in a  contiguous  State  and  owned  by  an  electric
12    utility  as  part  of its interconnected operating system and
13    delivery during one or more of the  5  years  succeeding  the
14    date  of submission, and (B) all contracts entered into after
15    June 1, 1997 for purchase and delivery of electric power  and
16    energy  in  or  into  this  State during one or more of the 5
17    years succeeding the date of submission;  provided,  however,
18    that  such  contracts shall not include (i) contracts between
19    the electric utility and an affiliate; (ii) sales, purchases,
20    or deliveries made under rates and  tariffs  filed  with  the
21    Commission,  except  for tariffs filed pursuant to subsection
22    (d) of Section 16-110 and except for  special  or  negotiated
23    rate  contracts  between  an  electric  utility  and a retail
24    customer to the  extent  that  such  contracts  are  for  the
25    provision  of  electric  power and energy after the date that
26    the customer becomes  eligible  for  delivery  services;  and
27    (iii) extensions or amendments to full requirements wholesale
28    contracts   existing   as  of  the  effective  date  of  this
29    amendatory  Act  of  1997,  provided  that  such   contracts,
30    extensions,  or  amendments  are cost of service regulated by
31    the Federal  Energy  Regulatory  Commission.   The  summaries
32    shall,  at  a minimum, identify the date of the contract; the
33    year in which the electric power or energy is to be  sold  or
34    delivered;  the  point  of delivery; defining characteristics
                            -45-          SRS90HB0362JJsaam02
 1    such as the nature of the  power  transaction  (for  example,
 2    reserve  responsibility (firm, non-firm)), length of contract
 3    and temporal differences (for  example,  season,  on-peak  or
 4    off-peak);  and  the applicable prices stated at the point at
 5    which the electric  power  and  energy  leaves  the  electric
 6    utility's   or   alternative   retail   electric   supplier's
 7    transmission  system,  as  the  case  may  be, in the case of
 8    contracts described in item (A) and at the point at which the
 9    electric power  and  energy  enters  the  electric  utility's
10    transmission  system  in  the  case of contracts in item (B),
11    provided, that the applicable price shall be  stated  at  the
12    point  at  which  the  electric  power  and energy enters the
13    electric  utility's  transmission  system  in  the  case   of
14    electric  power  and energy generated for delivery within the
15    electric utility's service area.  In reporting to the neutral
16    fact-finder the price of power and energy sold under  bundled
17    service  contracts, electric utilities and alternative retail
18    electric suppliers shall deduct from the contract  price  the
19    charges  for delivery services, including transition charges,
20    applicable to delivery  services  customers  in  a  utility's
21    service  area,  and  charges for services, if any, other than
22    the provision of power and energy or delivery  services.  The
23    Commission   may  adopt  orders  setting  forth  requirements
24    governing the form and content of such summaries.
25        (d)  The  neutral  fact-finder  shall  calculate   market
26    values  for  electric  power  and  energy  for  each electric
27    utility, taking into account the defining characteristics set
28    forth in subsection (c) of this Section;  provided,  however,
29    that  the neutral fact-finder may determine that a particular
30    value is appropriate for more than one electric  utility,  or
31    for  all  electric  utilities  in  this  State.   The neutral
32    fact-finder shall calculate the market values  for  the  next
33    year  and,  to  the extent the summaries include a sufficient
34    number of actual contracts to represent a viable  market  for
                            -46-          SRS90HB0362JJsaam02
 1    the  sale  and  delivery  of  electric  power  and  energy in
 2    subsequent years, for each of the 4 succeeding years.
 3        (e)  In calculating market values for electric power, the
 4    neutral fact-finder shall weight contract  prices  (including
 5    any  contract  price  indices) by both the amount of capacity
 6    covered by the contract and the  number  of  hours  in  which
 7    capacity  is to be provided under the contract in each period
 8    of the year, shall take into  account  all  of  the  defining
 9    characteristics  set  forth in subsection (c) of this Section
10    and shall develop such values as required  to  represent  the
11    different types of market values of electric power.
12        (f)  The  neutral  fact-finder shall base calculations of
13    the market values for electric energy on  the  energy  prices
14    stated  in the contracts, and where no explicit energy prices
15    or index price basis are stated, on the actual  energy  costs
16    of  the supplier in the corresponding period of the preceding
17    year that would have been applicable to the  electric  energy
18    provided  under  the contract.  The neutral fact-finder shall
19    develop market values for electric energy and shall take into
20    account the defining characteristics set forth in  subsection
21    (c)  of  this  Section,  as  required to represent the market
22    values of such electric energy.
23        (g)  If the contracts used  by  the  neutral  fact-finder
24    base  prices  for  future  years  on one or more indices, the
25    neutral fact-finder shall identify such indices in his or her
26    final  report,  develop  a  weighting  for  each  index,  and
27    calculate a weighted average index.  The market values  shall
28    be  calculated  using  the  weighted  average  index when the
29    actual values of the component indices are known.
30        (h)  The neutral fact-finder shall publish a final report
31    on or before July 30 of each year, except that  in  1999  the
32    neutral fact finder shall publish the report on or before May
33    30,  setting  forth  the calculated market values and stating
34    the basis for such calculations.  The final report shall not,
                            -47-          SRS90HB0362JJsaam02
 1    however, disclose any proprietary or confidential data.
 2        (i)  The  market  values  calculated   by   the   neutral
 3    fact-finder shall not be admissible in any proceeding for any
 4    purpose  other  than the calculation of transition charges or
 5    calculation of the  price  for  the  power  purchase  options
 6    provided  pursuant  to  subsection  (b)  and  (c)  of Section
 7    16-110.
 8        (j)  The Commission shall have access  to  all  contracts
 9    described in subsection (c) of this Section and shall perform
10    such  audits as it and the neutral fact-finder deem necessary
11    to insure the accuracy of  the  summaries  submitted  to  the
12    neutral  fact-finder.   The summaries described in subsection
13    (c) of this Section  and  each  contract  shall  be  accorded
14    confidential and proprietary treatment and their review shall
15    be  subject  to the provisions of Sections 4-404 and 5-108 of
16    this Act, and the contract between  the  Commission  and  the
17    neutral  fact-finder  shall contain provisions obligating the
18    neutral  fact-finder  to  comply  with  such  Sections.   The
19    summaries shall not be  discoverable  by  any  party  in  any
20    proceeding absent a compelling demonstration of need.
21        (k)  In  determining the market values to be used for the
22    various customer classes in calculating transition charges as
23    defined in Section 16-102 or for the power  purchase  options
24    set  forth in Section 16-110, an electric utility shall apply
25    the market  values  that  are  determined  as  set  forth  in
26    subsection  (a)  to  the electric power and energy that would
27    have been used to  serve  the  delivery  services  customers'
28    electric  power  and  energy requirements, based on the usage
29    specified in Section  16-102  and  taking  into  account  the
30    daily,  monthly, annual and other relevant characteristics of
31    the customers' demands on the electric utility's system.
32        (l)  In calculating a lump sum transition charge  payment
33    for  the  purposes  of  subsection (h) of Section 16-108, the
34    electric utility  shall  use  the  market  values  that  were
                            -48-          SRS90HB0362JJsaam02
 1    determined  as  provided  in  its  tariff,  or if such market
 2    values have not been determined for the full period  of  time
 3    covered  by such lump sum calculation, such other basis as is
 4    stated in the electric utility's  tariff  filed  pursuant  to
 5    Section 16-108.
 6        (m)  The  Commission  may  approve  or reject, or propose
 7    modifications to, any tariff providing for the  determination
 8    of market value that has been proposed by an electric utility
 9    pursuant  to  subsection  (a)  of this Section, but shall not
10    have the power to otherwise order  the  electric  utility  to
11    implement  a  modified  tariff  or  to  place into effect any
12    tariff for the determination of market value other  than  one
13    incorporating  the neutral fact-finder procedure set forth in
14    this Section.   Provided,  however,  that  if  each  electric
15    utility  serving  at  least 300,000 customers has placed into
16    effect a tariff that provides for a determination  of  market
17    value  as  a  function  of an exchange traded or other market
18    traded index, options or futures contract or contracts,  then
19    the  Commission  can  require any other electric utilities to
20    file such a tariff, and can terminate the neutral fact-finder
21    procedure for the periods covered by such tariffs.
22        (n)  To the extent that the summaries list  a  sufficient
23    number  of  actual contracts to represent a viable market and
24    market values can be determined for more than one  year,  the
25    electric  utility shall offer customers that are obligated to
26    pay transition charges contracts that establish  for  one  or
27    more  years,  up to a maximum of the lesser of 5 years or the
28    remaining number of years until December 31, 2008, the market
29    value or values to be  used  in  calculating  the  customer's
30    transition  charges  in such years and for which market value
31    determinations have been  made.   The  electric  utility  may
32    require  any  customer to give up to one year notice prior to
33    entering into a one or  2  year  contract  pursuant  to  this
34    subsection,  up  to 2 years notice for a 3 year contract, and
                            -49-          SRS90HB0362JJsaam02
 1    up to 3 years notice for a 4 or 5 year  contract.   Contracts
 2    of  one  or  2  years  duration  shall incorporate the market
 3    values that were determined as provided in  this  Section  in
 4    the  year  in  which  the  notice  is  required  to be given.
 5    Contracts of more than 2 years duration shall incorporate the
 6    market values that are determined in the year  prior  to  the
 7    first  year  in  which  the  electric  utility  will  collect
 8    transition charges from the customer under the contract.  The
 9    electric utility shall also allow customers to select, at the
10    time  that  a  customer gives its notice, an option to revoke
11    the notice within 30 days following the determination of  the
12    market values that will apply under the contract requested by
13    the  customer, and may charge customers a fee for such option
14    that is set forth in a tariff filed pursuant  to  Article  IX
15    and that is adequate to allow the electric utility to recover
16    its  transactional  costs and compensate it based on the cost
17    that would be incurred to purchase an  option  to  cover  the
18    risk  associated  with  the customer's option to revoke.  The
19    electric  utility shall not be required to offer customers  a
20    contract  under  this  paragraph  for  any  year for which no
21    determination of market value has been  made  either  by  the
22    neutral  fact-finder  or  pursuant  to  a tariff filed by the
23    electric utility.
24        (o)  An electric utility  shall  have  no  obligation  to
25    provide  electric  power  or energy as a tariffed service for
26    the electric power and energy requirements placed on delivery
27    service by any customer that  has  entered  into  a  contract
28    pursuant  to  subsection  (n)  of  this  Section  and has not
29    purchased and exercised an option to revoke, during the  term
30    of the contract.  A customer that has purchased and exercised
31    an  option  to  revoke  under  this  subsection  shall remain
32    eligible to receive any tariffed service for which  it  would
33    otherwise be eligible.
                            -50-          SRS90HB0362JJsaam02
 1        (220 ILCS 5/16-113 new)
 2        Sec.  16-113.   Declaration  of  service as a competitive
 3    service.
 4        (a)  An electric utility may, by  petition,  request  the
 5    Commission  to  declare  a  tariffed  service provided by the
 6    electric utility to be a competitive service.   The  electric
 7    utility  shall  give  notice of its petition to the public in
 8    the same manner that public notice is provided  for  proposed
 9    general   increases   in  rates  for  tariffed  services,  in
10    accordance with  rules  and  regulations  prescribed  by  the
11    Commission.   The  Commission  shall  hold  a  hearing on the
12    petition if a hearing is deemed necessary by the  Commission.
13    The  Commission shall declare the service to be a competitive
14    service for some identifiable customer segment  or  group  of
15    customers,  or  some clearly defined geographical area within
16    the electric utility's service area,  if  the  service  or  a
17    reasonably   equivalent   substitute  service  is  reasonably
18    available to the customer segment or group or in the  defined
19    geographical  area  at  a  comparable  price from one or more
20    providers other than the electric utility or an affiliate  of
21    the  electric  utility,  and the electric utility has lost or
22    there is a reasonable likelihood that  the  electric  utility
23    will  lose  business for the service to the other provider or
24    providers; provided, that the Commission may not declare  the
25    provision  of  electric  power  and  energy to be competitive
26    pursuant to this subsection with respect to  (i)  any  retail
27    customer  or  group  of retail customers that is not eligible
28    pursuant to Section 16-104 to take delivery services provided
29    by the electric utility and (ii) any  residential  and  small
30    commercial  retail  customers prior to the last date on which
31    such customers are required to  pay  transition  charges.  In
32    determining  whether  to  grant or deny a petition to declare
33    the provision of electric power and energy  competitive,  the
34    Commission  shall  consider,  in applying the above criteria,
                            -51-          SRS90HB0362JJsaam02
 1    whether there is  adequate  transmission  capacity  into  the
 2    service  area  of  the  petitioning  electric utility to make
 3    electric  power  and  energy  reasonably  available  to   the
 4    customer segment or group or in the defined geographical area
 5    from one or more providers other than the electric utility or
 6    an affiliate of the electric utility, in accordance with this
 7    subsection.  The  Commission shall make its determination and
 8    issue its final order declaring or refusing  to  declare  the
 9    service to be a competitive service within 120 days following
10    the  date  that  the  petition  is  filed,  or  otherwise the
11    petition shall be deemed to be granted; provided, that if the
12    petition is deemed to be granted by  operation  of  law,  the
13    Commission  shall  not  thereby be precluded from finding and
14    ordering,  in  a  subsequent  proceeding  initiated  by   the
15    Commission, and after notice and hearing, that the service is
16    not  competitive  based  on  the  criteria  set forth in this
17    subsection.
18        (b)  Any  customer  except  a  customer   identified   in
19    subsection  (c)  of  Section  16-103 who is taking a tariffed
20    service that is declared to be a competitive service pursuant
21    to subsection (a)  of  this  Section  shall  be  entitled  to
22    continue  to  take the service from the electric utility on a
23    tariffed basis for a period of 3  years  following  the  date
24    that  the  service  is  declared  competitive,  or such other
25    period as is stated in the electric utility's tariff pursuant
26    to Section 16-110.  This subsection  shall  not  require  the
27    electric  utility to offer or provide on a tariffed basis any
28    service to any customer (except those customers identified in
29    subsection (c) of Section 16-103) that was  not  taking  such
30    service  on  a  tariffed  basis  on  the date the service was
31    declared to be competitive.
32        (c)  If the Commission denies a  petition  to  declare  a
33    service  to  be  a  competitive  service,  or determines in a
34    separate proceeding that a service is not  competitive  based
                            -52-          SRS90HB0362JJsaam02
 1    on  the  criteria  set  forth in subsection (a), the electric
 2    utility may file a new petition  no  earlier  than  6  months
 3    following  the date of the Commission's order, requesting, on
 4    the basis of additional or different facts and circumstances,
 5    that the service be declared to be a competitive service.
 6        (d)  The Commission shall not deny a petition to  declare
 7    a  service  to  be  a competitive service, and shall not find
 8    that a service is not a competitive service, on  the  grounds
 9    that  it  has  previously  denied  the  petition  of  another
10    electric  utility to declare the same or a similar service to
11    be a competitive service or has  previously  determined  that
12    the  same  or  a similar service provided by another electric
13    utility is not a competitive service.
14        (e)  An electric utility may  declare  a  service,  other
15    than  delivery services or the provision of electric power or
16    energy, to be competitive by filing with  the  Commission  at
17    least  14  days  prior to the date on which the service is to
18    become competitive a notice describing the  service  that  is
19    being  declared  competitive  and  the  date on which it will
20    become competitive; provided, that any customer who is taking
21    a tariffed service that  is  declared  to  be  a  competitive
22    service  pursuant to this subsection (e) shall be entitled to
23    continue to take the service from the electric utility  on  a
24    tariffed  basis  until  the  electric  utility files, and the
25    Commission  grants,  a  petition  to  declare   the   service
26    competitive   in  accordance  with  subsection  (a)  of  this
27    Section. The Commission  shall  be  authorized  to  find  and
28    order,  after  notice  and hearing in a subsequent proceeding
29    initiated by the Commission, that any service declared to  be
30    competitive   pursuant   to   this   subsection  (e)  is  not
31    competitive in accordance with  the  criteria  set  forth  in
32    subsection (a) of this Section.
33        (220 ILCS 5/16-114 new)
                            -53-          SRS90HB0362JJsaam02
 1        Sec.  16-114.  Recovery of decommissioning charges. On or
 2    before  April  1,  1999,  each  electric  utility  owning  an
 3    interest in, or having responsibility as a matter of contract
 4    or statute for decommissioning costs as  defined  in  Section
 5    8-508.1  of, one or more nuclear power plants shall file with
 6    the  Commission  a  tariff  or  tariffs  conforming  to   the
 7    provisions  of  Section 9-201.5 of this Act, to be applicable
 8    to each and every kilowatt-hour of electricity  delivered  or
 9    sold  at  retail  in  the  electic  utility's  service  area,
10    including,  but not limited to, sales by the electric utility
11    to tariffed services retail customers, sales by the  electric
12    utility  to retail customers pursuant to special contracts or
13    other negotiated arrangements, sales  by  alternative  retail
14    electric  suppliers,  and  sales by an electric utility other
15    than the electric utility in whose service  area  the  retail
16    customer  is located; provided, however, that for a user that
17    obtained electric power and energy from its own  cogeneration
18    or  self-generation  facilities on or before January 1, 1997,
19    and subsequently takes services from  an  alternative  retail
20    electric  supplier  or  an  electric  utility  other than the
21    electric utility in whose service area the  user  is  located
22    for any portion of its electric power and energy requirements
23    formerly  obtained from those facilities, the tariff required
24    by this Section shall not be applicable in any year  to  that
25    portion  of the user's electric power and energy requirements
26    formerly obtained from those facilities,  provided  that  for
27    the  purposes  of this Section, such portion shall not exceed
28    the average number of kilowatt-hours per year  obtained  from
29    the  cogeneration  or self-generation facilities during the 3
30    years prior to the date on which the user became eligible for
31    delivery services.
32        The Commission shall determine whether the  tariff  meets
33    the  requirements  of  Sections 9-201 and 9-201.5 and of this
34    Section, and  shall  permit  the  electric  utility's  tariff
                            -54-          SRS90HB0362JJsaam02
 1    together  with any modifications made after hearing to become
 2    effective no later  than  October  1,  1999.  In  making  its
 3    determination,  the  Commission shall retain the authority it
 4    possessed prior to the effective date of this amendatory  Act
 5    of 1997 to make jurisdictional allocations of decommissioning
 6    expense  recovery.  The tariff filed pursuant to this Section
 7    shall be applicable to any user taking some  or  all  of  its
 8    electric  power  and  energy requirements from an alternative
 9    retail electric supplier or from an  electric  utility  other
10    than  the  electric utility in whose service area the user is
11    located on and after the date that the user becomes  eligible
12    for  delivery  services in accordance with Section 16-104. If
13    the electric utility has in effect as of the  effective  date
14    of  this  amendatory  Act  of  1997 a decommissioning rate as
15    defined in Section 9-201.5 conforming to the requirements  of
16    that  Section, the tariff or tariffs required by this Section
17    shall if the electric utility requests be consistent with its
18    decommissioning rate that is  already  in  effect;  provided,
19    that  the  tariff  or  tariffs filed pursuant to this Section
20    shall  provide  for  the  removal  from  base  rates  of  any
21    decommissioning costs  that  are  included  in  the  electric
22    utility's  base  rates  and  their inclusion in the tariff or
23    tariffs required by this Section. The tariff required by this
24    Section shall be included by the Commission  in  the  reviews
25    required by subsection (d) of Section 9-201.5.
26        (220 ILCS 5/16-115 new)
27        Sec. 16-115. Certification of alternative retail electric
28    suppliers.
29        (a)  Any alternative retail electric supplier must obtain
30    a  certificate  of  service  authority from the Commission in
31    accordance  with  this  Section  before  serving  any  retail
32    customer or other user located in this State.  An alternative
33    retail electric supplier may request, and the Commission  may
                            -55-          SRS90HB0362JJsaam02
 1    grant,  a  certificate  of  service  authority for the entire
 2    State or for a specified geographic area of the State.
 3        (b)  An alternative retail electric  supplier  seeking  a
 4    certificate   of   service  authority  shall  file  with  the
 5    Commission  a  verified  application  containing  information
 6    showing that the applicant meets  the  requirements  of  this
 7    Section.   The  alternative  retail  electric  supplier shall
 8    publish notice of  its  application  in  the  official  State
 9    newspaper  within  10  days following the date of its filing.
10    No later than 45 days after the application is properly filed
11    with the  Commission,  and  such  notice  is  published,  the
12    Commission  shall  issue  its  order  granting or denying the
13    application.
14        (c)  An  application  for  a   certificate   of   service
15    authority  shall  identify  the  area  or  areas in which the
16    applicant intends to offer service and the types of  services
17    it   intends   to  offer.   Applicants  that  seek  to  serve
18    residential or small commercial  retail  customers  within  a
19    geographic  area  that  is smaller than an electric utility's
20    service area shall submit  evidence  demonstrating  that  the
21    designation  of  this  smaller  area does not violate Section
22    16-115A. An applicant that  seeks  to  serve  residential  or
23    small   commercial   retail   customers   may  state  in  its
24    application for certification any limitations  that  will  be
25    imposed  on  the  number  of  customers or maximum load to be
26    served.
27        (d)  The Commission shall grant  the  application  for  a
28    certificate of service authority if it makes the findings set
29    forth  in  this  subsection based on the verified application
30    and such other information as the applicant may submit:
31             (1)  That   the   applicant   possesses   sufficient
32        technical,  financial  and   managerial   resources   and
33        abilities  to  provide  the  service for which it seeks a
34        certificate of service  authority.   In  determining  the
                            -56-          SRS90HB0362JJsaam02
 1        level  of  technical,  financial and managerial resources
 2        and abilities which the applicant must  demonstrate,  the
 3        Commission   shall   consider  (i)  the  characteristics,
 4        including the size and financial sophistication,  of  the
 5        customers  that  the  applicant  seeks to serve, and (ii)
 6        whether the applicant seeks to provide electric power and
 7        energy using property, plant and equipment which it owns,
 8        controls or operates;
 9             (2)  That  the  applicant  will  comply   with   all
10        applicable  federal,  State, regional and industry rules,
11        policies,  practices  and   procedures   for   the   use,
12        operation,  and  maintenance of the safety, integrity and
13        reliability, of the interconnected electric  transmission
14        system;
15             (3)  That the applicant will only provide service to
16        retail  customers  in  an electric utility's service area
17        that are eligible to take delivery  services  under  this
18        Act;
19             (4)  That   the  applicant  will  comply  with  such
20        informational or reporting requirements as the Commission
21        may  by  rule  establish  and  provide  the   information
22        required   by  Section  16-112.    Any  data  related  to
23        contracts for the purchase and sale of electric power and
24        energy shall be made available for review by the Staff of
25        the Commission on a confidential  and  proprietary  basis
26        and  only  to  the  extent and for the purposes which the
27        Commission determines are reasonably necessary  in  order
28        to carry out the purposes of this Act;
29             (5)  That if the applicant, its corporate affiliates
30        or  the  applicant's  principal source of electricity (to
31        the extent such source  is  known  at  the  time  of  the
32        application) owns or controls facilities, for public use,
33        for  the  transmission  or distribution of electricity to
34        end-users within  a  defined  geographic  area  to  which
                            -57-          SRS90HB0362JJsaam02
 1        electric   power   and   energy  can  be  physically  and
 2        economically  delivered  by  the  electric   utility   or
 3        utilities  in  whose  service  area or areas the proposed
 4        service will be offered,  the  applicant,  its  corporate
 5        affiliates  or  principal  source  of electricity, as the
 6        case may be, provides delivery services to  the  electric
 7        utility  or  utilities in whose service area or areas the
 8        proposed service will  be  offered  that  are  reasonably
 9        comparable  to those offered by the electric utility, and
10        provided further, that the applicant  agrees  to  certify
11        annually  to  the  Commission  that  it  is continuing to
12        provide such  delivery  services  and  that  it  has  not
13        knowingly  assisted  any  person  or  entity to avoid the
14        requirements of  this  Section.   For  purposes  of  this
15        subparagraph,  "principal  source  of  electricity" shall
16        mean a single source that supplies at least  65%  of  the
17        applicant's  electric  power and energy, and the purchase
18        of transmission and distribution services pursuant  to  a
19        filed tariff under the jurisdiction of the Federal Energy
20        Regulatory   Commission   or   a   state  public  utility
21        commission shall not constitute control of access to  the
22        provider's transmission and distribution facilities;
23             (6)  With  respect  to  an  applicant  that seeks to
24        serve residential or small commercial  retail  customers,
25        that  the  area  to  be  served  by the applicant and any
26        limitations it proposes on the  number  of  customers  or
27        maximum  amount  of load to be served meet the provisions
28        of Section 16-115A, provided,  that  the  Commission  can
29        extend  the  time  for  considering  such  a  certificate
30        request  by  up  to 90 days, and can schedule hearings on
31        such a request;
32             (7)  That the applicant meets  the  requirements  of
33        subsection (a) of Section 16-128; and
34             (8)  That  the  applicant will comply with all other
                            -58-          SRS90HB0362JJsaam02
 1        applicable laws and regulations.
 2        (e)  A  retail  customer  that  owns  a  cogeneration  or
 3    self-generation facility and that seeks certification only to
 4    provide electric power  and  energy  from  such  facility  to
 5    retail  customers  at  separate locations which customers are
 6    both (i)  owned  by,  or  a  subsidiary  or  other  corporate
 7    affiliate  of,  such applicant and (ii) eligible for delivery
 8    services, shall be granted a certificate of service authority
 9    upon filing an application and notifying the Commission  that
10    it  has  entered into an agreement with the relevant electric
11    utilities pursuant to Section 16-118.
12        (f)  The  Commission  shall   have   the   authority   to
13    promulgate  rules and regulations to carry out the provisions
14    of this Section.  On or before May 1,  1999,  the  Commission
15    shall  adopt  a rule or rules applicable to the certification
16    of those alternative retail electric suppliers that  seek  to
17    serve  only  nonresidential  retail  customers  with  maximum
18    electrical  demands  of  one  megawatt  or  more  which shall
19    provide for (i)  expedited  and  streamlined  procedures  for
20    certification  of  such alternative retail electric suppliers
21    and  (ii)  specific  criteria  which,  if  met  by  any  such
22    alternative retail electric supplier,  shall  constitute  the
23    demonstration   of   technical,   financial   and  managerial
24    resources  and  abilities  to  provide  service  required  by
25    subsection (d) (1) of this Section, such as a requirement  to
26    post a bond or letter of credit, from a responsible surety or
27    financial  institution, of sufficient size for the nature and
28    scope of  the  services  to  be  provided;  demonstration  of
29    adequate  insurance  for the scope and nature of the services
30    to be provided; and experience in providing similar  services
31    in other jurisdictions.
32        (220 ILCS 5/16-115A new)
33        Sec.  16-115A. Obligations of alternative retail electric
                            -59-          SRS90HB0362JJsaam02
 1    suppliers.
 2        (a)  An alternative retail electric supplier shall:
 3             (i)  comply with the requirements imposed on  public
 4        utilities  by  Sections 8-201 through 8-207, 8-301, 8-505
 5        and 8-507 of this Act, to the extent that these  sections
 6        have  application  to  the  services being offered by the
 7        alternative retail electric supplier; and
 8             (ii)  continue to comply with the  requirements  for
 9        certification stated in subsection (d) of Section 16-115.
10        (b)  An alternative retail electric supplier shall obtain
11    verifiable authorization from a customer, in a form or manner
12    approved by the Commission consistent with Section 2EE of the
13    Consumer  Fraud  and Deceptive Business Practices Act, before
14    the customer is switched from another supplier.
15        (c)  No alternative retail electric supplier, or electric
16    utility other than the electric utility in whose service area
17    a customer is located, shall (i) enter  into  or  employ  any
18    arrangements  which  have  the  effect of preventing a retail
19    customer with a maximum electrical demand of  less  than  one
20    megawatt  from  having access to the services of the electric
21    utility in whose service area the customer is located or (ii)
22    charge retail customers  for  such  access.  This  subsection
23    shall  not  be  construed to prevent an arms-length agreement
24    between a supplier and a retail customer that sets a term  of
25    service, notice period for terminating service and provisions
26    governing  early  termination through a tariff or contract as
27    allowed by Section 16-119.
28        (d)  An alternative  retail  electric  supplier  that  is
29    certified  to  serve  residential  or small commercial retail
30    customers shall not:
31                  (1)  deny service to a  customer  or  group  of
32             customers   nor  establish  any  differences  as  to
33             prices,  terms,  conditions,   services,   products,
34             facilities,  or  in  any other respect, whereby such
                            -60-          SRS90HB0362JJsaam02
 1             denial or differences are based upon race, gender or
 2             income.
 3                  (2)  deny service to a  customer  or  group  of
 4             customers   based  on  locality  nor  establish  any
 5             unreasonable  difference  as   to   prices,   terms,
 6             conditions,  services,  products,  or  facilities as
 7             between localities.
 8        (e)  An alternative retail electric supplier shall comply
 9    with  the  following  requirements  with   respect   to   the
10    marketing,  offering and provision of products or services to
11    residential and small commercial retail customers:
12             (i)  Any marketing materials which  make  statements
13        concerning  prices, terms and conditions of service shall
14        contain information that adequately discloses the prices,
15        terms and conditions of the products or services that the
16        alternative  retail  electric  supplier  is  offering  or
17        selling to the customer.
18             (ii)  Before any customer is switched  from  another
19        supplier,  the alternative retail electric supplier shall
20        give the customer  written  information  that  adequately
21        discloses,  in  plain  language,  the  prices,  terms and
22        conditions of the products and services being offered and
23        sold to the customer.
24             (iii)  An alternative retail electric supplier shall
25        provide documentation to the Commission and to  customers
26        that  substantiates  any  claims  made by the alternative
27        retail electric supplier regarding the  technologies  and
28        fuel  types  used  to generate the electricity offered or
29        sold to customers.
30             (iv)  The alternative retail electric supplier shall
31        provide to the customer (1) itemized  billing  statements
32        that  describe  the products and services provided to the
33        customer  and  their  prices,  and  (2)   an   additional
34        statement,  at  least annually, that adequately discloses
                            -61-          SRS90HB0362JJsaam02
 1        the average monthly prices, and the terms and conditions,
 2        of the products and services sold to the customer.
 3        (f)  An alternative retail electric  supplier  may  limit
 4    the  overall  size  or  availability of a service offering by
 5    specifying one or more of the following:  a maximum number of
 6    customers, maximum amount of electric load to be served, time
 7    period during which the offering will be available, or  other
 8    comparable  limitation,  but  not  including  the  geographic
 9    locations  of customers within the area which the alternative
10    retail electric  supplier  is  certificated  to  serve.   The
11    alternative retail electric supplier shall file the terms and
12    conditions  of such service offering including the applicable
13    limitations with the Commission prior to making  the  service
14    offering available to customers.
15        (g)  Nothing  in  this  Section  shall  be  construed  as
16    preventing  an alternative retail electric supplier, which is
17    an affiliate of, or which contracts with, (i) an industry  or
18    trade   organization   or   association,  (ii)  a  membership
19    organization or association that exists for a  purpose  other
20    than   the   purchase   of   electricity,  or  (iii)  another
21    organization  that  meets  criteria  established  in  a  rule
22    adopted  by  the  Commission,  from  offering   through   the
23    organization  or  association  services  at prices, terms and
24    conditions that are available solely to the  members  of  the
25    organization or association.
26        (220 ILCS 5/16-115B new)
27        Sec.  16-115B.  Commission oversight of services provided
28    by alternative retail electric suppliers.
29        (a)  The Commission shall have jurisdiction in accordance
30    with the provisions of Article X of this Act to entertain and
31    dispose of  any  complaint  against  any  alternative  retail
32    electric  supplier  alleging  (i) that the alternative retail
33    electric supplier has violated or is in  nonconformance  with
                            -62-          SRS90HB0362JJsaam02
 1    any  applicable  provisions of Section 16-115 through Section
 2    16-115A; (ii) that an alternative  retail  electric  supplier
 3    serving  retail customers having maximum demands of less than
 4    one megawatt has failed to provide service in accordance with
 5    the terms of its contract or contracts with such customer  or
 6    customers;   (iii)   that  the  alternative  retail  electric
 7    supplier has violated  or  is  in  non-conformance  with  the
 8    delivery  services  tariff  of,  or  any  of  its  agreements
 9    relating  to  delivery  services  with, the electric utility,
10    municipal system, or electric cooperative providing  delivery
11    services;  or  (iv)  that  the  alternative  retail  electric
12    supplier   has   violated   or  failed  to  comply  with  the
13    requirements of Sections 8-201 through 8-207,  8-301,  8-505,
14    or 8-507 of this Act as made applicable to alternative retail
15    electric suppliers.
16        (b)  The  Commission  shall  have authority, after notice
17    and hearing held on complaint  or  on  the  Commission's  own
18    motion:
19             (1)  To   order   an   alternative  retail  electric
20        supplier to cease and desist, or correct,  any  violation
21        of  or  non-conformance  with  the  provisions of Section
22        16-115 or 16-115A;
23             (2)  To impose financial penalties for violations of
24        or non-conformances with the provisions of Section 16-115
25        or 16-115A, not to exceed (i) $10,000 per  occurrence  or
26        (ii)   $30,000   per   day   for   those   violations  or
27        non-conformances  which  continue  after  the  Commission
28        issues a cease-and-desist order; and
29             (3)  To  alter,  modify,  revoke  or   suspend   the
30        certificate of service authority of an alternative retail
31        electric  supplier for substantial or repeated violations
32        of or non-conformances with  the  provisions  of  Section
33        16-115 or 16-115A.
                            -63-          SRS90HB0362JJsaam02
 1        (220 ILCS 5/16-116 new)
 2        Sec.  16-116.  Commission oversight of electric utilities
 3    serving retail  customers  outside  their  service  areas  or
 4    providing competitive, non-tariffed services.
 5        (a)  An  electric  utility  that has a tariff on file for
 6    delivery  services  may,  without  regard  to  any  otherwise
 7    applicable tariffs on file, provide electric power and energy
 8    to one or more retail customers located outside  its  service
 9    area,  but only to the extent (i) such retail customer (A) is
10    eligible for delivery services under  any  delivery  services
11    tariff  filed  with the Commission by the electric utility in
12    whose service area the retail customer is located and (B) has
13    either elected to take such delivery services or has paid  or
14    contracted  to  pay  the charges specified in Sections 16-108
15    and 16-114, or (ii) if such retail customer is  served  by  a
16    municipal  system  or  electric  cooperative, the customer is
17    eligible for delivery services under the terms and conditions
18    for such service  established  by  the  municipal  system  or
19    electric cooperative serving that customer.
20        (b)  An   electric  utility  may  offer  any  competitive
21    service to any customer or group of customers without  filing
22    contracts   with  or  seeking  approval  of  the  Commission,
23    notwithstanding any rule or  regulation  that  would  require
24    such approval.  The Commission shall not increase or decrease
25    the  prices,  and  may  not  alter  or  add  to the terms and
26    conditions for the utility's competitive services, from those
27    agreed to  by  the  electric  utility  and  the  customer  or
28    customers.   Non-tariffed,  competitive services shall not be
29    subject to the provisions of the Electric Supplier Act or  to
30    Articles  V, VII, VIII or IX of the Act, except to the extent
31    that any provisions of such Articles are made  applicable  to
32    alternative  retail  electric  suppliers pursuant to Sections
33    16-115 and 16-115A, but shall be subject to the provisions of
34    subsections (b) through (g) of Section 16-115A,  and  Section
                            -64-          SRS90HB0362JJsaam02
 1    16-115B  to the same extent such provisions are applicable to
 2    the  services  provided  by   alternative   retail   electric
 3    suppliers.
 4        (220 ILCS 5/16-117 new)
 5        Sec. 16-117. Commission consumer education program.
 6        (a)  The  restructuring  of the electricity industry will
 7    create a  new  electricity  market  with  new  marketers  and
 8    sellers  offering  new  goods and services, many of which the
 9    average consumer will not be able to readily evaluate. It  is
10    the  intent  of  the  General  Assembly  that (i) electricity
11    consumers  be   provided   with   sufficient   and   reliable
12    information  so  that  they  are  able  to  compare  and make
13    informed selections of products and services provided in  the
14    electricity market; and (ii) mechanisms be provided to enable
15    consumers to protect themselves from marketing practices that
16    are unfair or abusive.
17        (b)  The   Commission  shall  implement  and  maintain  a
18    consumer education program to provide residential  and  small
19    commercial  retail  customers  with  information to help them
20    understand their service options in  a  competitive  electric
21    services market, and their rights and responsibilities.
22        (c)  The  Commission shall form a working group following
23    the enactment of this amendatory  Act  of  1997.  This  group
24    shall  consist  of  5  representatives  of the investor-owned
25    electric utilities  in  this  State,  2  of  which  shall  be
26    appointed by electric utilities serving over 1,000,000 retail
27    customers  in  this  State;  2 representatives of alternative
28    retail electric suppliers; 3 representatives of organizations
29    representing  the  interests   of   residential   and   small
30    commercial retail customers; and the Commission.
31        (d)  By  March  1,  1999,  with  respect  to  educational
32    materials  for  small commercial customers and by November 1,
33    2001 with respect to educational  materials  for  residential
                            -65-          SRS90HB0362JJsaam02
 1    customers,  the  working  group  appointed  pursuant  to this
 2    Section  shall  develop  a  package  of  printed  educational
 3    materials which meet the requirements of subsection  (e)  and
 4    shall  submit  such  package  to the Commission for approval,
 5    along with recommendations  for  implementing  this  consumer
 6    education program. Such materials shall consider the needs of
 7    different  types of consumers in this State, such as elderly,
 8    low-income,  multilingual,  minority,  rural   and   disabled
 9    customers.   The working group shall issue recommendations to
10    the  Commission  on  how  such  education  program   can   be
11    implemented  through  a  variety  of  communication  methods,
12    including  specifically  mass  media, distribution of printed
13    material, public service announcements, and  posting  on  the
14    Internet.
15        (e)  At   a   minimum,  the  materials  constituting  the
16    consumer education program submitted to the Commission by the
17    working  group  shall   include   concise   explanations   or
18    descriptions of the following:
19             (1)  the  structure of the electric utility industry
20        following this amendatory Act of 1997 and a  glossary  of
21        basic terms;
22             (2)  the  choices  available  to  consumers  to take
23        electric service  from  an  alternative  retail  electric
24        supplier  or  remain  as a retail customer of an electric
25        utility;
26             (3)  a customer's rights, risks and responsibilities
27        in receiving service from an alternative retail  electric
28        supplier or remaining as a retail customer of an electric
29        utility;
30             (4)  the  legal  obligations  of  alternative retail
31        electric suppliers;
32             (5)  those  services  that  may  be  offered  on   a
33        competitive  basis  in  a  deregulated  electric services
34        market, including services that could  be  packaged  with
                            -66-          SRS90HB0362JJsaam02
 1        the delivery of electric power and energy;
 2             (6)  services  that  an electric utility is required
 3        to provide pursuant to tariffed rates;
 4             (7)  the components of a bill that could be received
 5        by a customer taking delivery services;
 6             (8)  the complaint procedures set forth  in  Section
 7        10-108  of this Act by which consumers may seek a redress
 8        of  grievances  against  an  electric   utility   or   an
 9        alternative  retail electric supplier and a list of phone
10        numbers of the Commission, the Attorney General or  other
11        entities  that  can provide information and assistance to
12        customers; and
13             (9)  additional  information  available   from   the
14        Commission upon request.
15        (f)  Within  45 days following the submission required of
16    the working group by subsection  (d)  of  this  Section,  the
17    Commission   shall  approve  or  disapprove  the  educational
18    materials and  recommendations  for  program  implementation.
19    The   Commission   shall  be  deemed  to  have  approved  the
20    educational program materials and recommendations unless  the
21    Commission disapproves of any such material or recommendation
22    within 45 days following the date of receipt.
23        (g)  Once   approved   by   the   Commission,   materials
24    comprising  the  consumer  education  program contemplated by
25    this Section shall be distributed as follows:
26             (1)  Electric   utilities   shall    mail    printed
27        educational  materials specified by the working group and
28        approved by the Commission (a)  to  all  residential  and
29        small  commercial  retail  customers  within a reasonable
30        period prior to  the  date  that  such  customers  become
31        eligible   to  purchase  power  from  alternative  retail
32        electric  suppliers,  such  "reasonable  period"  to   be
33        determined by the Commission; and (b) once the applicable
34        customer  class  becomes  eligible  to  receive  delivery
                            -67-          SRS90HB0362JJsaam02
 1        services,  to  all  new  residential and small commercial
 2        retail customers at the time that  such  customers  begin
 3        taking services from the electric utility.
 4             (2)  Alternative  retail  electric  suppliers  shall
 5        include  such  materials  with  all  initial  mailings to
 6        potential  residential  and   small   commercial   retail
 7        customers  but  in all circumstances prior to the time by
 8        which an alternative retail  electric  supplier  executes
 9        any  agreements  or contracts with such customers for the
10        supply of electric services.
11             (3)  Both electric utilities and alternative  retail
12        electric  suppliers  shall  provide  such materials at no
13        charge  to  residential  and  small   commercial   retail
14        customers upon request.
15             (4)  The   Commission   shall  make  available  upon
16        request and at no charge, and shall make available to the
17        public on the Internet  through  the  State  of  Illinois
18        World Wide Web Site:
19                  (A)  all    printed    educational    materials
20             developed  by  the working group and approved by the
21             Commission;
22                  (B)  a list of all certified alternative retail
23             electric suppliers  serving  residential  and  small
24             commercial   retail  customers  within  the  service
25             territory of each electric utility;
26                  (C)  a  list  of  alternative  retail  electric
27             suppliers serving residential  or  small  commercial
28             retail customers which have been found in the last 3
29             years  by  the Commission pursuant to Section 10-108
30             to have failed to provide service in accordance with
31             the  terms  of  their  contracts  with  such  retail
32             customers; and
33                  (D)  guidelines   to   assist   customers    in
34             determining    which   energy   supplier   is   most
                            -68-          SRS90HB0362JJsaam02
 1             appropriate for each customer.
 2        (h)  The Commission may also adopt a  uniform  disclosure
 3    form  which  alternative  retail  electric suppliers would be
 4    required to complete enabling consumers  to  compare  prices,
 5    terms and conditions offered by such suppliers.
 6        (i)  The  Commission  shall  make available to the public
 7    staff with the ability and knowledge to respond  to  consumer
 8    inquiries.
 9        (j)  The costs of printing educational materials approved
10    by  the  Commission pursuant to this Section shall be payable
11    solely from funding as provided in this subsection.
12        Each year the General Assembly shall appropriate money to
13    the Commission from the General Revenue Fund for the expenses
14    of the Commission associated with this Section. The  cost  of
15    the  consumer  education program contemplated by this Section
16    shall not exceed the amount  of  such  appropriation.  In  no
17    event shall any electric utility, alternative retail electric
18    supplier  or  customer  be  liable  for the costs of printing
19    consumer education program material in accordance  with  this
20    Section.   The  obligations  associated  with  this  consumer
21    education program shall not exceed the  amounts  appropriated
22    for this program pursuant to this Section.
23        (k)  The  Commission shall study the effectiveness of the
24    consumer education  program.   Such  study  shall  include  a
25    notice  and  an  opportunity for participation and comment by
26    all interested and potentially affected parties.  Such  study
27    shall  be  completed  by January 31st of each year during the
28    mandatory transition period and a summary  thereof,  together
29    with  any  legislative  recommendations, shall be included in
30    the Commission's Annual Report due in accordance with Section
31    4-304 of this Act.
32        (220 ILCS 5/16-118 new)
33        Sec. 16-118. Services provided by electric  utilities  to
                            -69-          SRS90HB0362JJsaam02
 1    alternative retail electric suppliers.
 2        (a)  It  is  in  the  best  interest  of  Illinois energy
 3    consumers  to  promote  fair  and  open  competition  in  the
 4    provision  of  electric  power  and  energy  and  to  prevent
 5    anticompetitive practices in the provision of electric  power
 6    and  energy.  Therefore,  to  the  extent an electric utility
 7    provides electric power and energy or  delivery  services  to
 8    alternative  retail  electric suppliers and such services are
 9    not  subject  to  the  jurisdiction  of  the  Federal  Energy
10    Regulatory Commission, and are not competitive services, they
11    shall be provided through tariffs that  are  filed  with  the
12    Commission, pursuant to Article IX of this Act. Each electric
13    utility shall permit alternative retail electric suppliers to
14    interconnect   facilities  to  those  owned  by  the  utility
15    provided  they    meet   established   standards   for   such
16    interconnection, and may provide standby or other services to
17    alternative retail electric suppliers. The alternative retail
18    electric  supplier  shall  sign  a contract setting forth the
19    prices, terms and conditions  for  interconnection  with  the
20    electric  utility  and  the  prices, terms and conditions for
21    services provided by the electric utility to the  alternative
22    retail  electric supplier in connection with the delivery  by
23    the electric utility of electric power and energy supplied by
24    the alternative retail electric supplier.
25        (b)   An electric utility shall file a tariff pursuant to
26    Article IX of the Act that  would  allow  alternative  retail
27    electric  suppliers  or  electric  utilities  other  than the
28    electric utility in whose service area retail  customers  are
29    located  to  issue  single  bills to the retail customers for
30    both  the  services  provided  by  such  alternative   retail
31    electric  supplier or other electric utility and the delivery
32    services provided by the electric utility to such  customers.
33    The  tariff  filed  pursuant  to  this  subsection  shall (i)
34    require partial payments  made  by  retail  customers  to  be
                            -70-          SRS90HB0362JJsaam02
 1    credited  first  to the electric utility's tariffed services,
 2    (ii) impose commercially reasonable  terms  with  respect  to
 3    credit and collection, including requests for deposits, (iii)
 4    retain  the electric utility's right to disconnect the retail
 5    customers, if it does not receive payment  for  its  tariffed
 6    services, in the same manner that it would be permitted to if
 7    it  had  billed for the services itself, and (iv) require the
 8    alternative  retail  electric  supplier  or  other   electric
 9    utility  that  elects  the  billing  option  provided by this
10    tariff to  include  on  each  bill  to  retail  customers  an
11    identification of the electric utility providing the delivery
12    services  and  a  listing  of  the charges applicable to such
13    services.  The tariff filed pursuant to this  subsection  may
14    also  include other just and reasonable terms and conditions.
15    In addition,  an  electric  utility,  an  alternative  retail
16    electric supplier or electric utility other than the electric
17    utility  in whose service area the customer is located, and a
18    customer served by such alternative retail electric  supplier
19    or  other  electric  utility,  may  enter  into  an agreement
20    pursuant to which the  alternative retail  electric  supplier
21    or  other  electric  utility  pays  the  charges specified in
22    Section 16-108, or other customer-related charges,  including
23    taxes  and  fees,  in lieu of such charges being recovered by
24    the electric utility directly from the customer.
25        (220 ILCS 5/16-119 new)
26        Sec. 16-119. Switching suppliers. An electric utility  or
27    an  alternative retail electric supplier may establish a term
28    of  service,  notice  period  for  terminating  service   and
29    provisions  governing  early  termination through a tariff or
30    contract.  A customer may  change  its  supplier  subject  to
31    tariff   or  contract  terms  and  conditions.    Any  notice
32    provisions; or provision for a fee, charge  or  penalty  with
33    early  termination  of  a  contract;  shall  be conspicuously
                            -71-          SRS90HB0362JJsaam02
 1    disclosed in any tariff or contract.  A customer shall remain
 2    responsible for  any  unpaid  charges  owed  to  an  electric
 3    utility  or  alternative retail electric supplier at the time
 4    it switches to another provider.
 5        (220 ILCS 5/16-119A new)
 6        Sec. 16-119A.  Functional separation.
 7        (a)  Within 90 days after  the  effective  date  of  this
 8    amendatory   Act   of  1997,  the  Commission  shall  open  a
 9    rulemaking proceeding to establish standards of  conduct  for
10    every  electric  utility  described  in  subsection  (b).  To
11    create efficient competition between suppliers of  generating
12    services   and   sellers  of  such  services  at  retail  and
13    wholesale, the rules shall allow all customers  of  a  public
14    utility   that  distributes  electric  power  and  energy  to
15    purchase electric power and energy from the supplier of their
16    choice in accordance with the provisions of  Section  16-104.
17    In  addition,  the  rules  shall  address  relations  between
18    providers  of  any  2 services described in subsection (b) to
19    prevent   undue   discrimination   and   promote    efficient
20    competition.  Provided,  however,  that a proposed rule shall
21    not be published prior to May 15, 1999.
22        (b)  The Commission shall  also  have  the  authority  to
23    investigate   the   need  for,  and  adopt  rules  requiring,
24    functional separation between the generation services and the
25    delivery services of those electric utilities whose principal
26    service  area  is  in  Illinois  as  necessary  to  meet  the
27    objective of creating efficient competition between suppliers
28    of generating services and sellers of such services at retail
29    and wholesale. After January 1, 2003,  the  Commission  shall
30    also  have  the  authority  to  investigate the need for, and
31    adopt  rules  requiring,  functional  separation  between  an
32    electric utility's competitive and non-competitive services.
33        (c)  In establishing or considering the  need  for  rules
                            -72-          SRS90HB0362JJsaam02
 1    under subsections (a) and (b), the Commission shall take into
 2    account  the  effects  on the cost and reliability of service
 3    and the obligation of the utility to provide bundled  service
 4    under  this Act.  The Commission shall adopt rules that are a
 5    cost effective means to ensure compliance with this Section.
 6        (d)  Nothing  in  this  Section  shall  be  construed  as
 7    imposing any requirements or obligations that are in conflict
 8    with federal law.
 9        (220 ILCS 5/16-120 new)
10        Sec.   16-120.   Development   of   competitive   market;
11    Commission study and reports; investigation.
12        (a) On or before December 31, 1999 and once every 3 years
13    thereafter, the Commission shall monitor and analyze patterns
14    of entry and exit, applications for entry and exit,  and  any
15    barriers  to  entry  or  participation  that  may  exist, for
16    services provided  under  this  Article;  shall  analyze  any
17    impediments  to  the  establishment  of  a  fully competitive
18    energy and power market in Illinois; and  shall  include  its
19    findings   together   with  appropriate  recommendations  for
20    legislative action in a report to the General Assembly.
21        (b)  Beginning  in  2001,  and  ending   in   2006,   the
22    Commission  shall  prepare  an  annual  report  regarding the
23    development of electricity markets in Illinois which shall be
24    filed by April 1 of each year with  the  Joint  Committee  on
25    Legislative  Support Services of the General Assembly and the
26    Governor and which shall be publicly available.  Such  report
27    shall include, at a minimum, the following information:
28             (1)  the  aggregate  annual  peak  demand  of retail
29    customers in the State of Illinois in the preceding  calendar
30    year;
31             (2)  the  total  annual kilowatt-hours delivered and
32    sold to retail customers in the State  of  Illinois  by  each
33    electric  utility  within  its  own  service  territory, each
                            -73-          SRS90HB0362JJsaam02
 1    electric  utility  outside   its   service   territory,   and
 2    alternative   retail  electric  suppliers  in  the  preceding
 3    calendar year;
 4             (3)  the  percentage  of  the  total  kilowatt-hours
 5    delivered and sold  to  retail  customers  in  the  State  of
 6    Illinois  in  the  preceding  calendar  year by each electric
 7    utility within its service territory, each  electric  utility
 8    outside  its  service  territory, and each alternative retail
 9    electric supplier; and
10             (4)  any other information the Commission  considers
11    significant   in   assessing   the  development  of  Illinois
12    electricity  markets,  which  may  include,  to  the   extent
13    available,  information similar to that described in items 1,
14    2 and 3 with respect  to  cogeneration,  self-generation  and
15    other  sources  of  electric  power  and  energy  provided to
16    customers that do  not  take  delivery  services  or  bundled
17    electric utility services.
18        The Commission may also include such other information as
19    it  deems  to  be  necessary  or  beneficial in describing or
20    explaining the results of its Report.  The Report required by
21    this  Section  shall  be  adopted  by  a  vote  of  the  full
22    Commission prior  to  filing.   Proprietary  or  confidential
23    information   shall   not  be  disclosed  publicly.   Nothing
24    contained in this Section shall prohibit the Commission  from
25    taking  actions  that  would  otherwise be allowed under this
26    Act.
27        (220 ILCS 5/16-121 new)
28        Sec. 16-121. Non-discrimination; adoption  of  rules  and
29    regulations. The Commission shall adopt rules and regulations
30    no  later  than  180  days  after  the effective date of this
31    amendatory Act of 1997 governing the relationship between the
32    electric   utility   and   its   affiliates,   and   ensuring
33    non-discrimination in  services  provided  to  the  utility's
                            -74-          SRS90HB0362JJsaam02
 1    affiliate  and  any  alternative  retail  electric  supplier,
 2    including     without     limitation,     cost    allocation,
 3    cross-subsidization and information sharing.
 4        (220 ILCS 5/16-122 new)
 5        Sec. 16-122. Customer information.
 6        (a)  Upon the request of a retail customer, or  a  person
 7    who  presents  verifiable  authorization and is acting as the
 8    customer's agent, and payment of a reasonable  fee,  electric
 9    utilities  shall  provide  to  the customer or its authorized
10    agent the customer's billing and usage data.
11        (b)  Upon request from any  alternative  retail  electric
12    supplier and payment of a reasonable fee, an electric utility
13    serving  retail  customers  in  its  service  area shall make
14    available generic  information  concerning  the  usage,  load
15    shape  curve or other general characteristics of customers by
16    rate classification. Provided however, no  customer  specific
17    billing,  usage  or  load  shape data shall be provided under
18    this  subsection  unless  authorization   to   provide   such
19    information   is   provided   by  the  customer  pursuant  to
20    subsection (a) of this Section.
21        (c)  All  such  customer  information   shall   be   made
22    available  in  a  timely  fashion in an electronic format, if
23    available.
24        (220 ILCS 5/16-123 new)
25        Sec.  16-123.  Establishment  of   customer   information
26    centers   for   electric  utilities  and  alternative  retail
27    electric suppliers. All electric  utilities  and  alternative
28    retail  electric  suppliers  shall  be required to maintain a
29    customer  call   center   where   customers   can   reach   a
30    representative  and  receive  current  information. Customers
31    shall periodically be notified  on  how  to  reach  the  call
32    center.  The Commission shall have the authority to establish
                            -75-          SRS90HB0362JJsaam02
 1    reporting requirements for such centers.
 2        (220 ILCS 5/16-124 new)
 3        Sec.  16-124.  Metering   for   residential   and   small
 4    commercial  retail  customers.  An electric utility shall not
 5    require a residential or small commercial retail customer  to
 6    take   additional   metering  or  metering  capability  as  a
 7    condition of taking delivery services unless  the  Commission
 8    finds,  after notice and hearing, that additional metering or
 9    metering  capability  is   required   to   meet   reliability
10    requirements.   Alternative retail electric suppliers serving
11    such  customers  may  provide  such  additional  metering  or
12    metering  capability  at  their  own  expense  or  take  such
13    additional metering or metering capability from  the  utility
14    as  a tariffed service.  Any additional metering requirements
15    shall be imposed in a nondiscriminatory manner.   Nothing  in
16    this  subsection  shall  be  construed  to prevent the normal
17    maintenance, replacement or upgrade of meters as required  to
18    comply with Commission rules.
19        (220 ILCS 5/16-125 new)
20        Sec.  16-125.  Transmission  and distribution reliability
21    requirements.
22        (a)  To assure the reliable delivery  of  electricity  to
23    all  customers in this State and the effective implementation
24    of the provisions of  this  Article,  the  Commission  shall,
25    within  180 days of the effective date of this Article, adopt
26    rules  and  regulations  for  assessing  and   assuring   the
27    reliability  of the transmission and distribution systems and
28    facilities that are under the Commission's jurisdiction.
29        (b)  These  rules  and  regulations  shall  require  each
30    electric utility  or  alternative  retail  electric  supplier
31    owning,    controlling,   or   operating   transmission   and
32    distribution  facilities  and  equipment   subject   to   the
                            -76-          SRS90HB0362JJsaam02
 1    Commission's  jurisdiction,  referred  to  in this Section as
 2    "jurisdictional entities", to adopt and implement  procedures
 3    for  restoring  transmission  and  distribution  services  to
 4    customers  after  transmission  or  distribution outages on a
 5    non-discriminatory basis without regard to whether a customer
 6    has chosen the electric utility, an affiliate of the electric
 7    utility, or another entity as its provider of electric  power
 8    and  energy.   These  rules  and regulations shall also, at a
 9    minimum, specifically require each jurisdictional  entity  to
10    submit annually to the Commission.
11             (1)  the   number   and   duration  of  planned  and
12        unplanned outages during the prior year and their impacts
13        on customers;
14             (2)  outages that were controllable and outages that
15        were exacerbated in scope or duration by the condition of
16        facilities, equipment or premises or by  the  actions  or
17        inactions of operating personnel or agents;
18             (3)  customer  service  interruptions  that were due
19        solely to the actions  or  inactions  of  an  alternative
20        retail electric supplier or a public utility in supplying
21        power or energy;
22             (4)  a   detailed   report   of   the  age,  current
23        condition,   reliability   and   performance    of    the
24        jurisdictional   entity's   existing   transmission   and
25        distribution  facilities,  which  shall  include, without
26        limitation, the following data:
27                  (i)  a summary of the  jurisdictional  entity's
28             outages  and  voltage variances reportable under the
29             Commission's rules;
30                  (ii)  the jurisdictional entity's  expenditures
31             for  transmission  construction and maintenance, the
32             ratio of those expenditures  to  the  jurisdictional
33             entity's  transmission  investment,  and the average
34             remaining  depreciation  lives   of   the   entity's
                            -77-          SRS90HB0362JJsaam02
 1             transmission  facilities,  expressed as a percentage
 2             of total depreciation lives;
 3                  (iii)  the jurisdictional entity's expenditures
 4             for distribution construction and  maintenance,  the
 5             ratio  of  those  expenditures to the jurisdictional
 6             entity's distribution investment,  and  the  average
 7             remaining   depreciation   lives   of  the  entity's
 8             distribution facilities, expressed as  a  percentage
 9             of total depreciation lives;
10                  (iv)  a  customer satisfaction survey covering,
11             among other areas identified  in  Commission  rules,
12             reliability, customer service, and understandability
13             of  the jurisdictional entity's services and prices;
14             and
15                  (v)  the corresponding information, in the same
16             format, for the previous 3 years, if available;
17             (5)  a plan for future  investment  and  reliability
18        improvements for the jurisdictional entity's transmission
19        and  distribution  facilities  that will ensure continued
20        reliable delivery of energy to customers and provide  the
21        delivery   reliability   needed   for   fair   and   open
22        competition; and
23             (6)  a   report   of   the  jurisdictional  entity's
24        implementation of its plan filed pursuant to subparagraph
25        (5)  for the previous reporting period.
26        (c)  The Commission rules shall set  forth  the  criteria
27    that  will  be  used  to  assess each jurisdictional entity's
28    annual report and evaluate its reliability performance.  Such
29    criteria must take into account,  at  a  minimum:  the  items
30    required  to  be  reported  in  subsection  (b); the relevant
31    characteristics of the area served; the age and condition  of
32    the  system's  equipment  and  facilities;  good  engineering
33    practices;  the  costs of potential actions; and the benefits
34    of avoiding the risks of service disruption.
                            -78-          SRS90HB0362JJsaam02
 1        (d)  At least every 3 years, beginning in  the  year  the
 2    Commission issues the rules required by subsection (a) or the
 3    following  year  if  the  rules  are issued after June 1, the
 4    Commission  shall  assess   the   annual   report   of   each
 5    jurisdictional    entity   and   evaluate   its   reliability
 6    performance.   The  Commission's  evaluation  shall   include
 7    specific  identification  of, and recommendations concerning,
 8    any potential reliability problems that it has identified  as
 9    a result of its evaluation.
10        (e)  In  the  event that more than 30,000 customers of an
11    electric  utility  are  subjected  to  a   continuous   power
12    interruption  of     4  hours  or  more  that  results in the
13    transmission of power  at  less  than  50%  of  the  standard
14    voltage,  or  that  results  in    the  total  loss  of power
15    transmission,  the  utility  shall  be      responsible   for
16    compensating  customers  affected  by that interruption for 4
17    hours or more for  all    actual  damages,  which  shall  not
18    include  consequential   damages, suffered as a result of the
19    power interruption.   The utility shall  also  reimburse  the
20    affected  municipality,    county,  or  other  unit  of local
21    government in which the power  interruption has  taken  place
22    for  all   emergency and contingency expenses incurred by the
23    unit of  local government as a result of the interruption.  A
24    waiver  of the requirements of this subsection may be granted
25    by the  Commission in instances in which the utility can show
26    that  the power interruption was a result of any  one or more
27    of the following causes:
28             (1)  Unpreventable damage due to weather  events  or
29        conditions.
30             (2)  Customer tampering.
31             (3)  Unpreventable    damage   due   to   civil   or
32        international unrest or animals.
33             (4) Damage to utility equipment or other actions  by
34        a  party  other  than the utility, its employees, agents,
                            -79-          SRS90HB0362JJsaam02
 1        or  contractors.
 2    Loss of revenue and expenses incurred in complying with  this
 3    subsection may not be recovered from ratepayers.
 4        (f)  In  the  event of a power surge or other fluctuation
 5    that causes damage and affects more  than  30,000  customers,
 6    the  electric  utility  shall  pay to  affected customers the
 7    replacement value of all goods  damaged as a  result  of  the
 8    power surge or other fluctuation  unless the utility can show
 9    that  the power surge or other  fluctuation was due to one or
10    more of the following causes:
11             (1) Unpreventable damage due to  weather  events  or
12        conditions.
13             (2)  Customer tampering.
14             (3)  Unpreventable    damage   due   to   civil   or
15        international unrest or animals.
16             (4)  Damage to utility equipment or other actions by
17        a party other  than the utility, its  employees,  agents,
18        or  contractors.
19    Loss  of revenue and expenses incurred in complying with this
20    subsection may not be recovered from  ratepayers.   Customers
21    with  respect  to  whom  a  waiver  has  been  granted by the
22    Commission pursuant to subparagraphs (1)-(4)  of  subsections
23    (e)  and  (f)  shall  not  count  toward the 30,000 customers
24    required therein.
25        (g)  Whenever an electric utility must perform    planned
26    or routine maintenance or repairs on its equipment  that will
27    result  in  transmission  of  power  at less than 50%  of the
28    standard voltage, loss of power, or power  fluctuation    (as
29    defined   in   subsection   (f)),   the  utility  shall  make
30    reasonable efforts to notify potentially  affected  customers
31    no  less  than  24  hours  in  advance  of performance of the
32    repairs or maintenance.
33        (h)  Remedies provided for  under  this  Section  may  be
34    sought  exclusively  through the Illinois Commerce Commission
                            -80-          SRS90HB0362JJsaam02
 1    as provided  under  Section  10-109  of  this  Act.   Damages
 2    awarded  under this Section for a power interruption shall be
 3    limited  to  actual  damages,   which   shall   not   include
 4    consequential  damages,  and litigation costs.  Damage awards
 5    may not be paid out of utility rate funds.
 6        (i)  The provisions of this Section shall not in any  way
 7    diminish  or  replace  other civil or administrative remedies
 8    available to a customer or a class of customers.
 9        (j)  The Commission shall by  rule  require  an  electric
10    utility to maintain service records detailing  information on
11    each  instance  of transmission of power at  less than 50% of
12    the standard voltage, loss of power, or    power  fluctuation
13    (as  defined  in  subsection  (f)),  that  affects 10 or more
14    customers.  Occurrences that are    momentary  shall  not  be
15    required  to  be  recorded  or  reported.  The service record
16    shall  include,  for  each   occurrence,   the      following
17    information:
18             (1)  The date.
19             (2)  The time of occurrence.
20             (3)  The duration of the incident.
21             (4)  The number of customers affected.
22             (5)  A description of the cause.
23             (6)  The geographic area affected.
24             (7)  The   specific   equipment   involved   in  the
25        fluctuation or interruption.
26             (8)  A description  of  measures  taken  to  restore
27        service.
28             (9)  A  description  of measures taken to remedy the
29        cause of the power interruption or fluctuation.
30             (10)  A description of  measures  taken  to  prevent
31        future occurrence.
32             (11)  The  amount  of  remuneration, if any, paid to
33        affected customers.
34             (12)  A statement of whether the  fixed  charge  was
                            -81-          SRS90HB0362JJsaam02
 1        waived for affected customers.
 2        Copies  of  the records containing this information shall
 3    be available for public inspection at the utility's  offices,
 4    and  copies thereof may be obtained upon payment of a fee not
 5    exceeding the reasonable cost of  reproduction.   A  copy  of
 6    each  record  shall be filed with the Commission and shall be
 7    available for public inspection.  Copies of the  records  may
 8    be   obtained  upon  payment  of  a  fee  not  exceeding  the
 9    reasonable cost of reproduction.
10        (k)  The requirements of subsections (e) through  (j)  of
11    this  Section  shall apply only to an electric public utility
12    having 1,000,000 or more customers.
13        (220 ILCS 5/16-125A new)
14        Sec.   16-125A.  Consolidated   billing   provision   for
15    established intergovernmental agreement  participants.
16        (a)  The tariffs of  each  electric  utility  serving  at
17    least      1,000,000   customers  shall  permit  governmental
18    customers acting  through an intergovernmental agreement that
19    was in effect 30  days    prior  to  the  date  specified  in
20    subsection  (b)  and  which  provides  for these governmental
21    customers to work cooperatively in the purchase  of  electric
22    energy to aggregate their monthly  kilowatt-hour energy usage
23    and monthly kilowatt billing  demand.
24        (b)  In  implementing the provisions of this Section, the
25    rates and  charges  applicable  under  the  combined  billing
26    tariff of  the serving utility in effect on May 1, 1997 shall
27    apply  to all  load of eligible government customers selected
28    by the governmental customers including, but not limited  to,
29    load served under  contract.
30        (c)  For   purposes   of   this   Section,  "governmental
31    customers" shall mean any customer that  is  a  municipality,
32    municipal  corporation,    unit  of  local  government,  park
33    district,  school  district,    community  college  district,
                            -82-          SRS90HB0362JJsaam02
 1    forest   preserve   district,   special     district,  public
 2    corporation, body politic and corporate,  sanitary  or  water
 3    reclamation  district,  or  other local government  agencies,
 4    including any entity created by intergovernmental   agreement
 5    among   any  of  the  foregoing  entities  to  implement  the
 6    arrangements permitted by subsections (a)  and  (b)  of  this
 7    Section.
 8        (d)  Electric  utilities  shall  file tariffs that comply
 9    with  the requirements of this Section within 60  days  after
10    the effective  date of this amendatory Act of 1997.
11        (220 ILCS 5/16-126 new)
12        Sec.   16-126.   Membership   in  an  independent  system
13    operator.
14        (a)  The General Assembly finds that the establishment of
15    one or more independent system operators or their  functional
16    equivalents  is  required to facilitate the development of an
17    open and efficient marketplace for electric power and  energy
18    to   the  benefit  of  Illinois  consumers.  Therefore,  each
19    Illinois electric utility owning or controlling  transmission
20    facilities or providing transmission services in Illinois and
21    that  is  a member of the Mid-American Interconnected Network
22    as of the effective date of this amendatory Act of 1997 shall
23    submit  for  approval  to  the  Federal   Energy   Regulatory
24    Commission  an  application  for  establishing  or joining an
25    independent system operator that shall:
26             (1)  independently manage and  control  transmission
27        facilities of any electric utility;
28             (2)  provide for nondiscriminatory access to and use
29        of  the  transmission  system  for  buyers and sellers of
30        electricity;
31             (3)  direct  the  transmission  activities  of   the
32        control area operators;
33             (4)  coordinate, plan, and order the installation of
                            -83-          SRS90HB0362JJsaam02
 1        new transmission facilities;
 2             (5)  adopt   inspection,  maintenance,  repair,  and
 3        replacement standards  for  the  transmission  facilities
 4        under  its  control  and  direct maintenance, repair, and
 5        replacement of all facilities under its control; and
 6             (6)  implement procedures  and  act  to  assure  the
 7        provision of adequate and reliable service.
 8        These  standards  shall  be  consistent  with reliability
 9    criteria no less stringent  than  those  established  by  the
10    Mid-American  Interconnected  Network  and the North American
11    Electric Reliability Council or their successors.
12        (b)  The requirements of  this  Section  may  be  met  by
13    joining   or   establishing  a  regional  independent  system
14    operator that meets the criteria  enumerated  in  subsections
15    (a),  (c),  and  (d)  of  this  Section, as determined by the
16    Commission. To achieve the objectives set forth in subsection
17    (a), the State of Illinois, through the appropriate officers,
18    departments, and agencies, shall work cooperatively with  the
19    appropriate officials and agencies of those States contiguous
20    to  this  State  and the Federal Energy Regulatory Commission
21    towards the formation of one  or  more  regional  independent
22    system operators.
23        (c)  The   independent   system   operator's   governance
24    structure  must  be  fair  and  non-discriminatory,  and  the
25    independent  system  operator  must be independent of any one
26    market participant or class of participants. The  independent
27    system  operator's  rules of governance must prevent control,
28    or the appearance of control, of decision-making by any class
29    of participants.
30        (d)  Participants  in  the  independent  system  operator
31    shall make available to the independent system  operator  all
32    information  required  by  the independent system operator in
33    performance  of   its   functions   described   herein.   The
34    independent   system  operator  and  the  electric  utilities
                            -84-          SRS90HB0362JJsaam02
 1    participating in the independent system operator  shall  make
 2    all   filings  required  by  the  Federal  Energy  Regulatory
 3    Commission. The independent system operator shall ensure that
 4    additional  filings  at   the   Federal   Energy   Regulatory
 5    Commission request confirmation of the relevant provisions of
 6    this amendatory Act of 1997.
 7        (e)  If   a   spot  market,  exchange  market,  or  other
 8    market-based mechanism providing transparent real-time market
 9    prices  for  electric  power  has  not  been  developed,  the
10    independent system operator or a closely cooperating agent of
11    the independent system  operator  may  provide  an  efficient
12    competitive  power  exchange  auction  for electric power and
13    energy, open on a nondiscriminatory basis to  all  suppliers,
14    which  meets  the loads of all auction customers at efficient
15    prices.
16        (f)  For  those  electric  utilities   referred   to   in
17    subsection  (a)  which have not filed with the Federal Energy
18    Regulatory Commission by June 30,  1998  an  application  for
19    establishment  or  participation  in  an  independent  system
20    operator  or if such application has not been approved by the
21    Federal Energy Regulatory Commission by March 31, 1999,  a  5
22    member  Oversight  Board shall be formed. The Oversight Board
23    shall (1) oversee the creation  of  an  Illinois  independent
24    system operator and (2) determine the composition and initial
25    terms  of service of, and appoint the initial members of, the
26    Illinois independent system operator board of directors.  The
27    Oversight Board shall consist of the following: (1) 3 persons
28    appointed  by  the  Governor; (2) one person appointed by the
29    Speaker of the House of Representatives; and (3)  one  person
30    appointed by the President of the Senate. The Oversight Board
31    shall  take  the  steps  that  are  necessary  to  ensure the
32    earliest possible incorporation of  an  Illinois  independent
33    system  operator  under the Business Corporation Act of 1983,
34    and  shall  serve  until  the  Illinois  independent   system
                            -85-          SRS90HB0362JJsaam02
 1    operator is incorporated.
 2        (g)  After  notice  and  hearing,  the  Commission  shall
 3    require  each electric utility referred to in subsection (a),
 4    that is not participating in an independent  system  operator
 5    meeting  the requirements of subsections (a) and (c), to seek
 6    authority from the Federal Energy  Regulatory  Commission  to
 7    transfer functional control of transmission facilities to the
 8    Illinois  independent  system  operator  for  control  by the
 9    Illinois independent  system  operator  consistent  with  the
10    requirements  of subsection (a). Upon approval by the Federal
11    Energy Regulatory Commission,  electric  utilities  may  also
12    elect to transfer ownership of transmission facilities to the
13    Illinois  independent  system  operator.  Nothing in this Act
14    shall be deemed to preclude the  Illinois independent  system
15    operator  from  (1) seeking authority, as necessary, to merge
16    with or otherwise combine its operations with those of one or
17    more  other  entities  authorized  to  provide   transmission
18    services,  (2) purchasing or leasing transmission assets from
19    transmission-owning entities not required by this Section  to
20    lease  transmission  facilities  to  the Illinois independent
21    system operator, or (3) operating as  a  transmission  public
22    utility under the Federal Power Act.
23        (h)  Any   other  owner  of  transmission  facilities  in
24    Illinois not required by this Section to  participate  in  an
25    independent  system  operator  shall  be  permitted,  but not
26    required, to become a  member  of  the  Illinois  independent
27    system operator.
28        (i)  The  Illinois  independent  system  operator created
29    under this Section, and any other independent system operator
30    authorized by the Federal  Energy  Regulatory  Commission  to
31    provide  transmission  services as a public utility under the
32    Federal Power Act within the  State  of  Illinois,  shall  be
33    deemed  to  be a public utility for purposes of Section 8-503
34    and 8-509 of this Act.
                            -86-          SRS90HB0362JJsaam02
 1        (j)  Electric utilities referred to in subsection (a) may
 2    withdraw from the Illinois independent system  operator  upon
 3    becoming  a  member  of  an  independent  system  operator or
 4    operators conforming with the criteria in subsections (a) and
 5    (c) and whose formation and operation has  been  approved  by
 6    the  Federal  Energy  Regulatory  Commission. This subsection
 7    does not relieve any  electric  utility  of  any  obligations
 8    under Federal law.
 9        (k)  Nothing  in  this  Section  shall  be  construed  as
10    imposing any requirements or obligations that are in conflict
11    with federal law.
12        (220 ILCS 5/16-127 new)
13        Sec. 16-127.  Environmental disclosure.
14        (a)  Effective  January  1,  1999, every electric utility
15    and alternative retail electric supplier  shall  provide  the
16    following  information,  to  the  maximum extent practicable,
17    with its bills to its customers on a quarterly basis:
18             (i)  the  known  sources  of  electricity  supplied,
19        broken-out by percentages, of biomass  power,  coal-fired
20        power,  hydro  power,  natural  gas-fired  power, nuclear
21        power, oil-fired power, solar power, wind power and other
22        resources, respectively; and
23             (ii)  a  pie-chart  which  graphically  depicts  the
24        percentages of the sources of the electricity supplied as
25        set forth in subparagraph (i) of this subsection.
26        (b)  In addition, every electric utility and  alternative
27    retail electric supplier shall provide, to the maximum extent
28    practicable,  with  its bills to its customers on a quarterly
29    basis, a standardized chart in a format to be  determined  by
30    the  Commission in a rule following notice and hearings which
31    provides the amounts of carbon dioxide,  nitrous  oxides  and
32    sulfur  dioxide  emissions  and nuclear waste attributable to
33    the known sources of electricity supplied  as  set  forth  in
                            -87-          SRS90HB0362JJsaam02
 1    subparagraph (i) of subsection (a) of this Section.
 2        (c)  The   electric   utilities  and  alternative  retail
 3    electric suppliers may  provide  their  customers  with  such
 4    other information as they believe relevant to the information
 5    required in subsections (a) and (b) of this Section.
 6        (d)  For  the purposes of subsection (a) of this Section,
 7    "biomass" means dedicated crops grown for  energy  production
 8    and organic wastes.
 9        (e)  All  of  the information provided in subsections (a)
10    and (b) of this Section shall be presented to the  Commission
11    for inclusion in its World Wide Web Site.
12        (220 ILCS 5/16-128 new)
13        Sec.  16-128.  Provisions  related  to  utility employees
14    during the mandatory transition period.
15        (a)  The General Assembly finds:
16             (1)  The reliability  and  safety  of  the  electric
17        system  has  depended  on  a  workforce  of  skilled  and
18        dedicated employees, equipped with technical training and
19        experience.
20             (2)  The integrity and reliability of the system has
21        also  depended  on the industry's commitment to invest in
22        regular inspection and maintenance, to assure that it can
23        withstand the demands of heavy service  requirements  and
24        emergency situations.
25             (3)  It  is  in  the State's interest to protect the
26        interests  of  utility  employees  who   have   dedicated
27        themselves  to  assuring reliable service to the citizens
28        of this State, and who might  otherwise  be  economically
29        displaced in a restructured industry.
30        The  General  Assembly further finds that it is necessary
31    to  assure  that  employees  operating  in  the   deregulated
32    industry have the requisite skills, knowledge, and competence
33    to provide reliable and safe electrical service and therefore
                            -88-          SRS90HB0362JJsaam02
 1    that  alternative retail electric suppliers shall be required
 2    to demonstrate the competence of their employees to  work  in
 3    the industry.
 4        The   knowledge,  skill,  and  competence  levels  to  be
 5    demonstrated  shall  be  consistent  with   those   generally
 6    required  of  or by the electric utilities in this State with
 7    respect to their employees.
 8        Adequate demonstration of requisite knowledge, skill  and
 9    competence,  shall  include such factors as completion by the
10    employee   of   an   accredited   or   otherwise   recognized
11    apprenticeship program for the  particular  craft,  trade  or
12    skill,  or  specified  years  of  employment with an electric
13    utility performing a particular work function.
14        To  implement  this  requirement,  the   Commission,   in
15    determining   that  an  applicant  meets  the  standards  for
16    certification as an  alternative  retail  electric  supplier,
17    shall  require  the  applicant  to  demonstrate  (i) that the
18    applicant is licensed to do  business,  and  bonded,  in  the
19    State  of  Illinois;  and  (ii)  that  the  employees  of the
20    applicant that will be installing, operating, and maintaining
21    generation, transmission, or distribution  facilities  within
22    this  State,  or  any  entity  with  which  the applicant has
23    contracted to perform those functions within this State, have
24    the requisite knowledge, skills, and  competence  to  perform
25    those  functions in a safe and responsible manner in order to
26    provide safe and reliable service,  in  accordance  with  the
27    criteria stated above.
28        (b)  The  General  Assembly finds, based on experience in
29    other industries that  have  undergone  similar  transitions,
30    that   the  introduction  of  competition  into  the  State's
31    electric utility industry may result in workforce  reductions
32    by  electric utilities which may adversely affect persons who
33    have been employed by  this  State's  electric  utilities  in
34    functions  important  to  the public convenience and welfare.
                            -89-          SRS90HB0362JJsaam02
 1    The General  Assembly  further  finds  that  the  impacts  on
 2    employees  and  their communities of any necessary reductions
 3    in  the   utility   workforce   directly   caused   by   this
 4    restructuring  of the electric industry shall be mitigated to
 5    the extent  practicable  through  such  means  as  offers  of
 6    voluntary    severance,    retraining,    early   retirement,
 7    outplacement and related benefits. Therefore, before any such
 8    reduction in the workforce during the transition  period,  an
 9    electric  utility  shall  present  to  its employees or their
10    representatives a  workforce  reduction  plan  outlining  the
11    means  by  which the electric utility intends to mitigate the
12    impact of such workforce reduction on its employees.
13        (c)  In the event of  a  sale,  purchase,  or  any  other
14    transfer  of ownership during the mandatory transition period
15    of one or more Illinois divisions or business  units,  and/or
16    generating  stations  or  generating  units,  of  an electric
17    utility, the electric utility's  contract  and/or  agreements
18    with  the  acquiring entity or persons shall require that the
19    entity or persons hire a sufficient number of non-supervisory
20    employees to operate and maintain the  station,  division  or
21    unit   by  initially  making  offers  of  employment  to  the
22    non-supervisory workforce of the electric utility's division,
23    business unit, generating station and/or generating  unit  at
24    no  less  than  the  wage rates, and substantially equivalent
25    fringe benefits and terms and conditions of  employment  that
26    are  in  effect  at the time of transfer of ownership of said
27    division,   business   unit,   generating   station,   and/or
28    generating units;  and  said  wage  rates  and  substantially
29    equivalent  fringe  benefits  and  terms  and  conditions  of
30    employment  shall  continue  for  at least 30 months from the
31    time  of  said  transfer  of  ownership  unless  the  parties
32    mutually  agree  to  different  terms   and   conditions   of
33    employment  within  that  30-month period.  The utility shall
34    offer a transition  plan  to  those  employees  who  are  not
                            -90-          SRS90HB0362JJsaam02
 1    offered  jobs by the acquiring entity because that entity has
 2    a need for fewer workers.  If there is litigation  concerning
 3    the  sale,  or  other  transfer  of ownership of the electric
 4    utility's divisions, business units, generating  station,  or
 5    generating  units, the 30-month period will begin on the date
 6    the acquiring entity or persons take control or management of
 7    the  divisions,  business  units,   generating   station   or
 8    generating units of the electric utility.
 9        (d)  If   a   utility   transfers  ownership  during  the
10    mandatory  transition  period  of  one   or   more   Illinois
11    divisions,  business units, generating stations or generating
12    units of an electric utility to a majority-owned  subsidiary,
13    that  subsidiary  shall  continue  to  employ  the  utility's
14    employees  who were employed by the utility at such division,
15    business unit or  generating  station  at  the  time  of  the
16    transfer under the same terms and conditions of employment as
17    those  employees  enjoyed  at  the  time of the transfer.  If
18    ownership  of  the  subsidiary  is   subsequently   sold   or
19    transferred  to  a  third party during the transition period,
20    the transition provisions outlined in  subsection  (c)  shall
21    apply.
22        (e)  The  plant transfer provisions set forth above shall
23    not apply to any generating station which was the subject  of
24    a sales agreement entered into before January 1, 1997.
25        (220 ILCS 5/16-129 new)
26        Sec.  16-129.   Existing contracts not affected.  Nothing
27    in this Article XVI shall affect the  right  of  an  electric
28    utility  to continue to provide, or the right of the customer
29    to continue to receive, service pursuant to  a  contract  for
30    electric   service  between  the  electric  utility  and  the
31    customer,  in  accordance  with  the   prices,   terms    and
32    conditions   provided  for  in  that  contract.   Either  the
33    electric utility or the customer may require compliance  with
                            -91-          SRS90HB0362JJsaam02
 1    the prices, terms and conditions of such contract.
 2        (220 ILCS 5/16-130 new)
 3        Sec. 16-130.  Annual Reports.  The General Assembly finds
 4    that   it   is   necessary  to  have  reliable  and  accurate
 5    information  regarding  the  transition  to   a   competitive
 6    electric   industry.    In  addition  to  the  annual  report
 7    requirements pursuant to Section  5-109  of  this  Act,  each
 8    electric  utility  shall file with the Commission a report on
 9    the following topics in  accordance  with  the  schedule  set
10    forth in subsection (b) of this Section:
11             (1)  Data  on  each  customer  class of the electric
12        utility in which  delivery  services  have  been  elected
13        including:
14                  (A)  number  of  retail customers in each class
15             that have elected delivery service;
16                  (B)  kilowatt hours consumed by  the  customers
17             described in subparagraph (A);
18                  (C)  revenue loss experienced by the utility as
19             a  result of customers electing delivery services or
20             market-based prices as compared to continued service
21             under otherwise applicable tariffed rates;
22                  (D)  total amount of funds collected from  each
23             customer  class  pursuant  to the transition charges
24             authorized in Section 16-108;
25                  (E)  Such other information as  the  Commission
26             may by rule require.
27             (2)  A   description  of  any  steps  taken  by  the
28        electric  utility  to  mitigate  and  reduce  its  costs,
29        including both a  detailed  description  of  steps  taken
30        during the preceding calendar year and a summary of steps
31        taken  since the effective date of this amendatory Act of
32        1997,  and  including,   to   the   extent   practicable,
33        quantification  of  the  costs  mitigated  or  reduced by
                            -92-          SRS90HB0362JJsaam02
 1        specific actions taken by the electric utility.
 2             (3)  A description of actions taken  under  Sections
 3        5-104,  7-204,  9-220,  and  16-111  of  this  Act.  This
 4        information shall include but not be limited to:
 5                  (A)  a description of the actions taken;
 6                  (B)  the effective date of the action;
 7                  (C)  the annual savings or  additional  charges
 8             realized   by   customers  from  actions  taken,  by
 9             customer class and total for each year;
10                  (D)  the accumulated  impact  on  customers  by
11             customer class and total; and
12                  (E)  a  summary  of the method used to quantify
13             the impact on customers.
14             (4)  A summary of  the  electric  utility's  use  of
15        transitional funding instruments, including a description
16        of  the  electric  utility's  use  of the proceeds of any
17        transitional  funding  instruments  it  has   issued   in
18        accordance with Article XVIII of this Act.
19             (5)  Kilowatt-hours  consumed  in  the twelve months
20        ending December 31, 1996 (which kilowatt-hours are hereby
21        referred to as  "base  year  sales")  by  customer  class
22        multiplied  by the revenue per kilowatt hour, adjusted to
23        remove charges  added  to  customers  bills  pursuant  to
24        Sections  9-221  and 9-222 of this Act, during the twelve
25        months  ending  December  31,  1996,  adjusted  for   the
26        reductions  required  by subsection (b) of Section 16-111
27        and the mitigation factors contained in  Section  16-102.
28        This  amount  shall be stated for: (i) each calendar year
29        preceding the year in which a report is  required  to  be
30        submitted  pursuant  to  subsection  (b);  and  (ii) as a
31        cumulative total of all  calendar  years  beginning  with
32        1998 and ending with the calendar year preceding the year
33        in which a report is required to be submitted pursuant to
34        subsection (b).
                            -93-          SRS90HB0362JJsaam02
 1             (6)  Calculations  identical  to  those  required by
 2        subparagraph (5) except that base  year  sales  shall  be
 3        adjusted  for  growth  in  the electric utility's service
 4        territory, in addition to the other adjustments specified
 5        by the first sentence of sub-paragraph (5).
 6             (7)  the electric utility's total  revenue  and  net
 7        income for each calendar year beginning with 1997 through
 8        the calendar year preceding the year in which a report is
 9        required  to  be  submitted pursuant to subsection (b) as
10        reported in the electric utility's Form 1 report  to  the
11        Federal Energy Regulatory Commission.
12             (8)  any  consideration  in  excess  of the net book
13        cost as of the effective date of this amendatory  Act  of
14        1997  received  by  the  electric utility during the year
15        from a sale made subsequent to the effective date of this
16        amendatory Act of 1997 to a non-affiliated third party of
17        any generating plant  that  was  owned  by  the  electric
18        utility  on  the effective date of this amendatory Act of
19        1997.
20             (9)  any  consideration  received  by  the  electric
21        utility from sales or transfers during  the  year  to  an
22        affiliated  interest  of generating plant, or other plant
23        that represents an investment of $25,000,000 or  more  in
24        terms   of   total   depreciated   original  cost,  which
25        generating or other plant  were  owned  by  the  electric
26        utility  prior  to  the effective date of this amendatory
27        Act of 1997.
28             (10)  any consideration received  by  an  affiliated
29        interest  of  an electric utility from sales or transfers
30        during the  year  to  a  non-affiliated  third  party  of
31        generating  plant,  but only if: (i) the electric utility
32        had previously sold or  transferred  such  plant  to  the
33        affiliated  interest  subsequent to the effective date of
34        this amendatory Act of 1997; (ii) the affiliated interest
                            -94-          SRS90HB0362JJsaam02
 1        sells or transfers such plant to a  non-affiliated  third
 2        party   prior   to  December  31,  2006;  and  (iii)  the
 3        affiliated interest receives consideration for  the  sale
 4        or  transfer  of  such  plant to the non-affiliated third
 5        party in an amount greater than  the  cost  or  price  at
 6        which   such   plant  was  sold  or  transferred  to  the
 7        affiliated interest by the electric utility.
 8             (b) The information required by subsection (a) shall
 9    be filed by each electric utility on or  before  March  1  of
10    each  year 1999 through 2007 or through such additional years
11    as the electric  utility  is  collecting  transition  charges
12    pursuant  to  subsection  (f)  of  Section  16-108,  for  the
13    previous   calendar   year.    The  information  required  by
14    subparagraph (6) of subsection (a)  for  calendar  year  1997
15    shall be submitted by the electric utility on or before March
16    1, 1999.
17             (c)   On  or before May 15 of each year 1999 through
18    2006 or through such additional years as the electric utility
19    is collecting transition charges pursuant to  subsection  (f)
20    of  Section  16-108,  the Commission shall submit a report to
21    the  General  Assembly  which  summarizes   the   information
22    provided   by  each  electric  utility  under  this  Section;
23    provided,   however,   that   proprietary   or   confidential
24    information shall not be publicly disclosed.
25        (220 ILCS 5/Art. XVII heading new)
26          ARTICLE XVII. ELECTRIC COOPERATIVES AND MUNICIPAL
27                               SYSTEMS
28        (220 ILCS 5/17-100 new)
29        Sec.  17-100.   Exemption   from   provisions   of   this
30    amendatory Act of 1997.  Electric cooperatives, as defined in
31    Section   3.4  of  the  Electric  Supplier  Act,  and  public
32    utilities that  are  owned  and  operated  by  any  political
                            -95-          SRS90HB0362JJsaam02
 1    subdivision, or municipal corporation of this State, or owned
 2    by such an entity and operated by any lessee or any operating
 3    agent  thereof, hereinafter referred to as municipal systems,
 4    shall not be subject to the provisions of this amendatory Act
 5    of 1997, except as hereinafter provided in this Article XVII.
 6        (220 ILCS 5/17-200 new)
 7        Sec. 17-200.  Election  to  provide  existing  or  future
 8    customers access to alternative retail electric suppliers.
 9        (a)  An  electric  cooperative  or  municipal system each
10    may, by appropriate action and at the sole discretion of  the
11    governing  body  of  each, from time to time make one or more
12    elections to cause one or more  of  the  existing  or  future
13    customers  of  each  respective system to be eligible to take
14    service from an alternative retail electric  supplier  for  a
15    specified  period  of  time.   Provided  that, and subject to
16    their authority to serve customers pursuant to  the  Electric
17    Supplier  Act  with  respect  to  electric  cooperatives  and
18    pursuant  to  the  Illinois  Municipal  Code  with respect to
19    municipal systems, each shall continue to  provide  exclusive
20    distribution facilities for any existing and future customers
21    that  the electric cooperative or municipal system are now or
22    in the future otherwise entitled to serve and which customers
23    are now or in the future receiving  service  provided  by  an
24    alternative retail electric supplier.
25        (b)  Notification  of  election  to  provide  existing or
26    future  customers  access  to  alternative  retail   electric
27    suppliers.   The  election  by  an  electric  cooperative  or
28    municipal  system  authorizing  access  to alternative retail
29    electric suppliers for existing or future customers shall  be
30    made  by  filing notice thereof with the Commission and shall
31    be made effective only by such filing.
32        (220 ILCS 5/17-300 new)
                            -96-          SRS90HB0362JJsaam02
 1        Sec.  17-300.   Election  to  be  an  alternative  retail
 2    electric supplier.
 3        (a)  An electric cooperative or municipal system may,  by
 4    appropriate  action,  and  at  the  sole  discretion  of  the
 5    governing  body  of  each,  make  an  election  to  become an
 6    alternative retail electric supplier.
 7        (b)  Commission authority over an electric cooperative or
 8    municipal  system  electing  to  be  an  alternative   retail
 9    electric  supplier.   An  electric  cooperative  or municipal
10    system electing to be an alternative retail electric supplier
11    shall provide those  services  in  accordance  with  Sections
12    16-115A  and  16-115B  of this Act,  to the extent that these
13    Sections have application to the services  being  offered  by
14    the   electric   cooperative   or   municipal  system  as  an
15    alternative retail electric supplier.  In no case shall these
16    provisions apply to the existing or future  customers  taking
17    delivery  services  from an electric cooperative or municipal
18    system pursuant  to  their  respective  authority  under  the
19    Electric Supplier Act or the Illinois Municipal Code.
20        (c)  Notification of election to be an alternative retail
21    electric  supplier.   Upon  filing  notice  of  intent  by an
22    electric cooperative or  a  municipal  system  to  become  an
23    alternative  retail  electric  supplier, the Commission shall
24    issue within 45 days a certificate of service  authority  for
25    the  entire  State  or for a specified geographic area of the
26    State, as specified in the notice.  Issuance of a certificate
27    of service authority shall constitute compliance with Section
28    16-115 of this Act.
29        (d)  Delivery services provided by electric  cooperatives
30    or   municipal   systems.    Municipal  systems  or  electric
31    cooperatives making an election under this Section  shall  be
32    required  to  provide  delivery  services on their respective
33    systems to the electric utility or utilities in whose service
34    area or areas the proposed service  will  be  offered.   Such
                            -97-          SRS90HB0362JJsaam02
 1    required  delivery  services  to  be provided by the electric
 2    cooperatives  and  municipal  systems  shall  be   reasonably
 3    comparable  to the delivery services provided to the electric
 4    cooperative's and municipal system's own customers.
 5        (e)  Exclusive authority  over  distribution  facilities.
 6    Provided  that,  and  subject  to  their  authority  to serve
 7    customers pursuant to the Electric Supplier Act with  respect
 8    to   electric  cooperatives  and  pursuant  to  the  Illinois
 9    Municipal Code with respect to municipal systems, each  shall
10    continue to provide the exclusive distribution facilities for
11    any   existing   and   future  customers  that  the  electric
12    cooperative or municipal system  is  now  or  in  the  future
13    otherwise  entitled  to serve, and which customers are now or
14    in the future receiving service provided  by  an  alternative
15    retail electric supplier.
16        (220 ILCS 5/17-400 new)
17        Sec.  17-400.  Conditions  prohibiting  municipal  system
18    participation.   At  no time shall a municipal system make an
19    election under Sections 17-200 or 17-300 of this  Article  if
20    such election places at risk:
21        (1)  Any status held by the municipal system or municipal
22    corporation or political subdivision which provides exemption
23    from State or federal tax statutes; or
24        (2)  Any  debt,  credit  instrument  or other contractual
25    financial obligation held by, or on behalf of  the  municipal
26    system  which  was entered into under an exemption from State
27    or federal tax statutes.
28        (220 ILCS 5/17-500 new)
29        Sec. 17-500.  Jurisdiction.  Except as  provided  in  the
30    Electric  Supplier Act, the Illinois Municipal Code, and this
31    Article  XVII,  the  Commission,  or  any  other  agency   or
32    subdivision  thereof  of the State of Illinois or any private
                            -98-          SRS90HB0362JJsaam02
 1    entity  shall  have  no  jurisdiction   over   any   electric
 2    cooperative  or  municipal  system  regardless of whether any
 3    election or elections as provided for herein have been  made,
 4    and   all   control  regarding  an  electric  cooperative  or
 5    municipal  system   shall   be   vested   in   the   electric
 6    cooperative's   board   of   directors  or  trustees  or  the
 7    applicable governing body of the municipal system.
 8        (220 ILCS 5/17-600 new)
 9        Sec.  17-600.   Rights  of  electric   cooperatives   and
10    municipal  systems in conflict herewith.  Except as expressly
11    provided for herein, this Article XVII shall not be construed
12    to conflict with the rights of an electric cooperative  or  a
13    municipal  system as declared in the Electric Supplier Act or
14    as set forth in the Illinois Municipal  Code  or  the  public
15    policy   against  duplication  of  facilities  as  set  forth
16    therein.
17        (220 ILCS 5/17-700 new)
18        Sec.   17-700.  Right   to   create   municipal   utility
19    unaffected.  Nothing in this amendatory  Act  of  1997  shall
20    limit the right of a municipality to form a municipal utility
21    in  accordance  with Article 11, Division 117 of the Illinois
22    Municipal Code and the provisions of this Article XVII  shall
23    apply  to  any  municipal  utility formed after the effective
24    date of this amendatory Act of 1997.
25        (220 ILCS 5/Art. XVIII heading new)
26      ARTICLE XVIII.  ELECTRIC UTILITY TRANSITIONAL FUNDING LAW
27        (220 ILCS 5/18-101 new)
28        Sec. 18-101. Short title and applicability.  This Article
29    may be cited as the Electric Utility Transitional Funding Law
30    of 1997 and shall apply to electric utilities as  defined  in
                            -99-          SRS90HB0362JJsaam02
 1    this Article.
 2        (220 ILCS 5/18-102 new)
 3        Sec.  18-102.   Definitions.   For  the  purposes of this
 4    Article the following terms shall be defined as set forth  in
 5    this  Section.  Terms  defined  in Article XVI shall have the
 6    same meanings in this Article.
 7        "Assignee"  means  any  party,  other  than  an  electric
 8    utility or  grantee,  to  which  an  interest  in  intangible
 9    transition   property  shall  have  been  assigned,  sold  or
10    transferred.  The term "assignee" includes  any  corporation,
11    public  authority,  trust,  financing  vehicle,  partnership,
12    limited liability company or other entity.
13        "Grantee" means any party, other than an electric utility
14    or  an  assignee which acquires its interest from an electric
15    utility, to whom or for whose benefit  the  Commission  shall
16    create,   establish   and  grant  rights  in,  to  and  under
17    intangible transition property.  The term "grantee"  includes
18    any  corporation, public authority, trust, financing vehicle,
19    partnership, limited liability company or other entity.
20        "Grantee  instruments"   means   (a)   any   instruments,
21    documents,  notes,  debentures,  bonds  or other evidences of
22    indebtedness evidencing any contractual right to receive  the
23    payment  of  money  from a grantee or (b) any certificates of
24    participation, certificates of beneficial interest  or  other
25    instruments  evidencing a beneficial or ownership interest in
26    a grantee  or  in  intangible  transition  property  of  such
27    grantee which are (i) issued (A) by or on behalf of a grantee
28    pursuant  to a transitional funding order and (B) pursuant to
29    an executed indenture, pooling agreement, security  agreement
30    or  other  similar  agreement  of  such  grantee  creating  a
31    security  interest,  ownership  interest  or other beneficial
32    interest in intangible transition property and  (ii)  payable
33    solely  from  proceeds  of  intangible  transition  property,
                            -100-         SRS90HB0362JJsaam02
 1    including  amounts  received  with  respect  to  the  related
 2    instrument funding charges.
 3        "Holder"   means   any  holder  of  transitional  funding
 4    instruments, including a trustee, collateral  agent,  nominee
 5    or other such party acting for the benefit of such a holder.
 6        "Instrument funding charge" means a non-bypassable charge
 7    expressed   in   cents  per  kilowatt-hour  authorized  in  a
 8    transitional funding order to be applied and invoiced to each
 9    retail customer, class of retail  customers  of  an  electric
10    utility  or other person or group of persons obligated to pay
11    any  base  rates,  transition  charges  or  other  rates  for
12    tariffed services from which such instrument  funding  charge
13    has   been   deducted   and  stated  separately  pursuant  to
14    subsection (j) of Section 18-104.
15        "Intangible transition property" means the right,  title,
16    and  interest  of  an electric utility or grantee or assignee
17    arising pursuant to a transitional funding  order  to  impose
18    and  receive  instrument  funding  charges,  and  all related
19    revenues, collections, claims, payments, money,  or  proceeds
20    thereof,  including  all  right,  title,  and  interest of an
21    electric utility, grantee  or  assignee  in,  to,  under  and
22    pursuant  to such transitional funding order,  whether or not
23    such  intangible  transition  property  described  above   is
24    characterized  on  the  books  of  the  electric utility as a
25    regulatory asset or  as  a  cost  incurred  by  the  electric
26    utility  or  otherwise.  Intangible transition property shall
27    arise and exist  only  when,  as,  and  to  the  extent  that
28    instrument  funding  charges are authorized in a transitional
29    funding order that has become effective  in  accordance  with
30    this  Article  and shall thereafter continuously exist to the
31    extent provided in the order.
32        "Issuer" means any party, other than an electric utility,
33    which has issued transitional funding instruments.  The  term
34    "issuer"  includes  any corporation, public authority, trust,
                            -101-         SRS90HB0362JJsaam02
 1    financing vehicle, partnership, limited liability company  or
 2    other entity.
 3        "Transitional funding instruments" means any instruments,
 4    pass-through certificates, notes, debentures, certificates of
 5    participation,  bonds, certificates of beneficial interest or
 6    other evidences of indebtedness or instruments  evidencing  a
 7    beneficial  interest  (i) which are issued by or on behalf of
 8    an electric utility or  issuer  pursuant  to  a  transitional
 9    funding  order, (ii) which are issued pursuant to an executed
10    indenture, pooling agreement,  security  agreement  or  other
11    similar agreement of an electric utility or issuer creating a
12    security  interest,  ownership  interest  or other beneficial
13    interest  in  intangible  transition  property   or   grantee
14    instruments,  if  any, and (iii) the proceeds of which are to
15    be used for the purposes set forth  in  subparagraph  (1)  of
16    subsection (d) of Section 18-103 of this Article.
17        "Transitional  funding  order"  means  an  order  of  the
18    Commission  issued  in accordance with the provisions of this
19    Article  creating  and  establishing  intangible   transition
20    property  and  the  rights of any party therein and approving
21    the sale, pledge, assignment or other transfer of  intangible
22    transition  property  and  grantee  instruments,  if any, the
23    issuance of  transitional  funding  instruments  and  grantee
24    instruments,  if  any,  and  the imposition and collection of
25    instrument funding charges.
26        (220 ILCS 5/18-103 new)
27        Sec. 18-103. Transitional funding orders.
28        (a)  Notwithstanding any other provision of this  Act  or
29    other  law,  the  Commission  is  hereby  authorized to issue
30    transitional  funding  orders   in    accordance   with   the
31    provisions  of  this  Section, in order to facilitate (i) the
32    issuance of transitional funding instruments by or on  behalf
33    of  electric  utilities  or  issuers and (ii) the issuance of
                            -102-         SRS90HB0362JJsaam02
 1    grantee instruments by or on behalf of grantees.
 2        (b)  A transitional funding order may be  issued  by  the
 3    Commission  only  upon the application of an electric utility
 4    and shall become effective in accordance with its terms  only
 5    after  such  electric  utility  files with the Commission its
 6    written consent to all terms and conditions  of  such  order.
 7    After  the  issuance  of  a  transitional  funding order, the
 8    electric utility or  grantee  shall  retain  sole  discretion
 9    regarding  whether  to  assign,  sell,  pledge  or  otherwise
10    transfer   intangible   transition   property   and   grantee
11    instruments,   if  any,  or  to  cause  transitional  funding
12    instruments and grantee instruments, if any,  to  be  issued,
13    including  the  right  to  defer or postpone such assignment,
14    sale, transfer, pledge or issuance or  to  change  the  terms
15    thereof as allowed by such order.
16        (c)  After  the  effective date of this amendatory Act of
17    1997, an electric utility may file any number of applications
18    for transitional funding  orders.   Each  application  for  a
19    transitional funding order shall contain detailed information
20    regarding   the  electric  utility's  proposal  for  (i)  the
21    assignment,  sale,  pledge  or  other  transfer  of,  or  the
22    establishment, creation and granting of  rights  in  and  to,
23    intangible  transition  property  and grantee instruments, if
24    any, (ii) the issuance of  transitional  funding  instruments
25    and  grantee  instruments,  if  any,  (iii)  the total dollar
26    amount of intangible transition property to  be  created  and
27    the  amount  to  be  sold,  pledged,  assigned  or  otherwise
28    transferred  or  granted  hereunder  (which  amount may be in
29    excess  of  the  principal  and  interest  payable   on   the
30    transitional  funding instruments and grantee instruments, if
31    any, in order to provide for servicing costs and the  funding
32    or  maintenance of debt service and other reserves, costs and
33    fees as security to the holders of the  transitional  funding
34    instruments and grantee instruments, if any), (iv) the amount
                            -103-         SRS90HB0362JJsaam02
 1    of  transitional funding instruments and grantee instruments,
 2    if any, to be issued, (v) the amount, expressed in cents  per
 3    kilowatt-hour,  of instrument funding charges to be collected
 4    from retail customers or other  persons,  (vi)  the  time  to
 5    maturity for the transitional funding instruments and grantee
 6    instruments, if any, and (vii) the electric utility's planned
 7    use of the proceeds from the issuance of transitional funding
 8    instruments   including   the   amounts   allocated  for  the
 9    respective uses specified in subparagraph (1)  of  subsection
10    (d) of Section 18-103 of this Article.
11        (d)  The  Commission  shall,  after proper notice, hold a
12    hearing for the  sole  purpose  of  determining  whether  the
13    application  and  requested transitional funding order are in
14    compliance with this Article and shall complete its review of
15    the application and  issue  its  final  transitional  funding
16    order  by  no  later  than  90  days after the filing of such
17    application by the  electric  utility;   provided,  that,  in
18    contested  cases  where  the  public  interest  is  in  issue
19    pursuant  to  subparagraph  (1)(B)  of this subsection (d) or
20    pursuant to subsection (m) of Section 18-104, the  Commission
21    may  complete  its  review  and  issue its final transitional
22    funding order by no later than 120 days after the  filing  of
23    such  application.  The  order shall create and establish the
24    proposed  intangible  transition  property  in   the   amount
25    requested  by  the  applicant  and approve the proposed sale,
26    pledge,   assignment   or   other   transfer   of,   or   the
27    establishment, creation and granting of  rights  in  and  to,
28    intangible  transition  property  and grantee instruments, if
29    any,  the   proposed   issuance   of   transitional   funding
30    instruments and grantee instruments, if any, and the proposed
31    imposition  and  collection  of  the corresponding instrument
32    funding charges, if the Commission finds  that  each  of  the
33    following conditions are met:
34             (1)  the  electric  utility will use the proceeds of
                            -104-         SRS90HB0362JJsaam02
 1        the  sale  and  issuance  of  the  transitional   funding
 2        instruments for one or more of the following purposes:
 3                  (A)  to refinance debt or equity, or both, in a
 4             manner   which   the   electric  utility  reasonably
 5             demonstrates will result in an overall reduction  in
 6             its  cost  of capital, taking into account the costs
 7             of financing; provided, however, that  any  proceeds
 8             transferred  to  a  parent  company through a common
 9             stock repurchase transaction shall be used to retire
10             publicly traded common stock of the  parent  company
11             or  to pay commercially reasonable transaction costs
12             associated with such retirement;
13                  (B)  if the Commission finds that the  sale  or
14             issuance of transitional funding instruments for the
15             following  purposes  is in the public interest, then
16             the following uses of proceeds:   (i)  to  repay  or
17             retire  fuel  contracts  or  obligations  related to
18             nuclear  spent  fuel  previously  incurred  by   the
19             electric  utility  in  providing  electric  power or
20             energy services prior to the effective date of  this
21             amendatory   Act   of   1997  or  (ii)  to  pay  any
22             expenditures  required  to  be  undertaken  by  such
23             electric utility by the provisions of Section 16-128
24             of this Act  including  labor  severance  costs  and
25             employee retraining costs;
26                  (C)  to  fund  debt service and other reserves,
27             commercially reasonable costs and fees necessary  or
28             desirable  in  connection  with the marketing of the
29             transitional   funding   instruments   and   grantee
30             instruments, if any;
31                  (D)  to pay for commercially  reasonable  costs
32             associated  with  the issuance and collateralization
33             of  transitional  funding  instruments  and  grantee
34             instruments, if any; and
                            -105-         SRS90HB0362JJsaam02
 1                  (E)  to pay  for  the  commercially  reasonable
 2             costs   associated   with   the   issuance  of  such
 3             transitional  funding  instruments,  including   the
 4             costs  incurred  since  the  effective  date of this
 5             amendatory Act  of  1997,  or  to  be  incurred,  in
 6             connection   with   transactions   to  recapitalize,
 7             refinance  or  retire   stock   and/or   debt,   any
 8             associated  taxes,  and  the costs incurred or to be
 9             incurred to obtain,  collateralize,  issue,  service
10             and  administer transitional funding instruments and
11             grantee instruments, including  interest  and  other
12             related fees, costs and charges;
13        provided,  (i)  that the transitional funding order shall
14        require the electric utility to use (1) at least  80%  of
15        such proceeds for the purposes specified in subparagraphs
16        (A) and (B) above and (2) no more than 20% of the maximum
17        amount  of  such  proceeds  permitted  under subparagraph
18        (6)(B) of this subsection for purposes other  than  those
19        specified  in  subparagraph  (A)  above  ;  (ii) that the
20        electric utility's use of such proceeds for the  purposes
21        specified  in subparagraph (A) above shall not, as of the
22        date of application  of  such  proceeds,  result  in  the
23        common   equity   component  of  its  capital  structure,
24        exclusive of the portion of its  capital  structure  that
25        consists of obligations representing transitional funding
26        instruments  or  grantee instruments, being reduced below
27        the  lesser  of  (1)  40%  and  (2)  the  common   equity
28        percentage  as  of  December 31, 1996 adjusted to reflect
29        any write-off of assets or common equity  implemented  or
30        required to be implemented as a result of this amendatory
31        Act  of  1997;  and  (iii) in no event shall the electric
32        utility  use  the  proceeds  of  the  sale   of   grantee
33        instruments  or transitional funding instruments to repay
34        or retire obligations incurred by any  affiliate  of  the
                            -106-         SRS90HB0362JJsaam02
 1        electric  utility  (other  than  in  connection  with any
 2        refinancing  of  grantee  instruments   or   transitional
 3        funding  instruments  issued  by such affiliate), without
 4        the consent of the Commission;
 5             (2)  the expected  maturity  date  for  the  grantee
 6        instruments  or the transitional funding instruments, and
 7        the final date on which the electric utility, grantee  or
 8        assignee   shall   be  entitled  to  charge  and  collect
 9        instrument funding charges, shall each be set to occur no
10        later than December 31, 2008, subject to  the  provisions
11        of subsections (l) and (m) of Section 18-104;
12             (3)  the  instrument  funding  charges authorized in
13        such order will be deducted and  stated  separately  from
14        base rates and transition charges, and, where applicable,
15        other  rates  for  tariffed  services, all as provided in
16        subsection  (j)  of  Section  18-104  and  in  a   manner
17        conforming  to  the  allocation of the instrument funding
18        charges implemented pursuant to subparagraph (4) of  this
19        subsection;
20             (4)  the  instrument  funding  charges authorized in
21        such order shall have been  allocated  among  classes  of
22        retail  customers  in  accordance  with percentage ratios
23        determined by dividing the base rate  revenue  from  each
24        class  by  the electric utility's total base rate revenue
25        for the 1996 calendar year;
26             (5)  the  issuance  of  the   transitional   funding
27        instruments   will  not  cause  the  rates  for  tariffed
28        services to increase over the rates then in existence  as
29        adjusted  for  the  rate decreases provided in subsection
30        (b) of Section 16-111; and
31             (6)  the  aggregate  principal  amount  of   grantee
32        instruments  or,  if such transitional funding order does
33        not provide for  the  issuance  of  grantee  instruments,
34        transitional  funding  instruments, to be issued pursuant
                            -107-         SRS90HB0362JJsaam02
 1        to such order, together with the aggregate amount of such
 2        instruments issued under any prior  orders  requested  by
 3        such electric utility, shall not exceed:
 4                  (A)  during  the twelve-month period commencing
 5                     August 1, 1998, an amount equal  to  25%  of
 6                     the   applicable  electric  utility's  total
 7                     capitalization,  including  both  debt   and
 8                     equity,  as of December 31, 1996, multiplied
 9                     by  the  ratio  of  the  electric  utility's
10                     revenues  from  Illinois  electric   utility
11                     retail  customers  in the 1996 calendar year
12                     to its total electric  retail  revenues  for
13                     such 1996 year; and
14                  (B)  thereafter,  an amount equal to 50% of the
15                     applicable    electric    utility's    total
16                     capitalization,  including  both  debt   and
17                     equity,  as  of December 31, 1996 multiplied
18                     by  the  ratio  of  the  electric  utility's
19                     revenues  from  Illinois  electric   utility
20                     retail  customers  in the 1996 calendar year
21                     to its total electric  retail  revenues  for
22                     such 1996 year.
23        (220 ILCS 5/18-104 new)
24        Sec. 18-104. Terms and provisions of transitional funding
25    orders.
26        (a)  Each  transitional  funding  order  shall create and
27    establish intangible transition property in an amount not  to
28    exceed  the  sum  of  (i)  the  rate  base established by the
29    Commission in the electric utility's last rate case prior  to
30    the  effective date of this amendatory Act of 1997, plus (ii)
31    any expenditures required to be undertaken by  such  electric
32    utility  by  the  provisions  of  Section 16-128 of this Act,
33    including  labor  severance  costs  and  employee  retraining
                            -108-         SRS90HB0362JJsaam02
 1    costs, plus (iii) amounts necessary to fund debt service  and
 2    other   reserves,  commercially  reasonable  costs  and  fees
 3    necessary  in  connection   with   the   marketing   of   the
 4    transitional  funding instruments and grantee instruments, if
 5    any, plus (iv) commercially reasonable  costs  incurred  from
 6    and  after  the effective date of this amendatory Act of 1997
 7    or to be incurred which are associated with the issuance  and
 8    collateralization  of  transitional  funding  instruments and
 9    grantee instruments, if any, plus (v) commercially reasonable
10    costs incurred from and after  the  effective  date  of  this
11    amendatory Act of 1997 or to be incurred which are associated
12    with  issuance  of  such  transitional  funding  instruments,
13    including  the  costs  incurred  from and after the effective
14    date of this amendatory Act of 1997, or to  be  incurred,  in
15    connection  with  transactions  to recapitalize, refinance or
16    retire stock and/or debt, any associated taxes  and the costs
17    incurred to  obtain,  collateralize,  issue,  service  and/or
18    administer   transitional  funding  instruments  and  grantee
19    instruments, if any, including  interest  and  other  related
20    fees, costs and charges (all of the foregoing costs described
21    in  clauses (i) through (v) above to include any taxes, where
22    applicable, to the extent the costs thereof  would  otherwise
23    have  been  recoverable  by an electric utility through rates
24    for tariffed services under the Public Utilities  Act  as  in
25    effect  prior to this amendatory Act of 1997), minus (vi) the
26    amount  of  any  intangible  transition  property  previously
27    created and established at the request of and for the benefit
28    of such electric utility  in  a  prior  transitional  funding
29    order.   The  transitional  funding order shall authorize (A)
30    the sale, pledge, assignment or other  transfer  of,  or  the
31    establishment,   creation   and   granting   of  an  electric
32    utility's, assignee's  or  grantee's  rights  in  and  to,  a
33    specific  dollar  amount  of  intangible  transition property
34    (which amount may be in excess of the principal and  interest
                            -109-         SRS90HB0362JJsaam02
 1    payable  on  the transitional funding instruments and grantee
 2    instruments, if any, in order to provide for servicing  costs
 3    and  the  funding  or  maintenance  of debt service and other
 4    reserves as security  to  the  holders  of  the  transitional
 5    funding  instruments),  (B) the issuance of a specific dollar
 6    amount of grantee instruments or, if the transitional funding
 7    order  does  not  provide  for  the   issuance   of   grantee
 8    instruments, a specific dollar amount of transitional funding
 9    instruments,   by  or  on  behalf  of  an  electric  utility,
10    assignee, issuer or grantee, as the case may be, and (C)  the
11    imposition  and collection of a specific amount of instrument
12    funding charges projected to be sufficient to  pay  when  due
13    the  principal  of  and interest on the corresponding grantee
14    instruments or, if the transitional funding  order  does  not
15    provide   for   the  issuance  of  grantee  instruments,  the
16    corresponding transitional funding instruments, in each case,
17    together with premium, servicing fees and other  fees,  costs
18    and  charges  related  thereto,  and to maintain any required
19    reserves.  Except as otherwise specifically set forth in  the
20    transitional   funding   order,   the   transitional  funding
21    instruments  issued  pursuant  to   such   order   shall   be
22    non-recourse  to  the credit or to any assets of the electric
23    utility  other  than   any   assets   comprising   intangible
24    transition  property  or  grantee instruments, as applicable.
25    The obligation of retail customers and other persons  to  pay
26    instrument  funding  charges  shall  be  contingent  upon the
27    receipt  by  such  retail  customers  and  other  persons  of
28    electric power and energy, the kilowatt hours  of  which  are
29    included  in  the  calculation  of  the dollar amount of such
30    instrument funding  charges,  but  the  transitional  funding
31    order shall specifically provide that such instrument funding
32    charges  will  not be subject to any defense, counterclaim or
33    right of set off arising  as  a  result  of  failure  by  the
34    pertinent   electric  utility,  upon  whose  application  the
                            -110-         SRS90HB0362JJsaam02
 1    intangible transition property was  created,  to  perform  or
 2    provide  past,  present  or future services.  For purposes of
 3    the foregoing sentence, an electric  utility  or  alternative
 4    retail  electric supplier obligated to pay transition charges
 5    under subsection (b) of Section 16-118 on behalf  of  certain
 6    retail  customers  shall  be  deemed  to  have  received  the
 7    electric  power and energy provided to such retail customers.
 8    The transitional funding order shall also set forth the  time
 9    to   maturity   for   the  grantee  instruments  or,  if  the
10    transitional funding order does not provide for the  issuance
11    of   grantee  instruments,  the  time  to  maturity  for  the
12    transitional   funding   instruments    issued    thereunder.
13    Concurrently  with  the  sale,  pledge,  assignment  or other
14    transfer of, or the establishment, creation and  granting  of
15    an  electric utility's, assignee's or grantee's rights in and
16    to, intangible transition property and  grantee  instruments,
17    if any, and the issuance of transitional funding instruments,
18    an  electric  utility,  grantee,  issuer or an assignee shall
19    begin to impose and collect the specified instrument  funding
20    charges  from  retail customers, classes of retail customers,
21    and any other persons or groups of persons as  set  forth  in
22    the  pertinent  transitional  funding  order  and  shall file
23    tariffs in accordance with subsection (j) of  Section  18-104
24    of this Article.
25        (b)  The  transitional  funding  order shall require that
26    the  proceeds  from  the  issuance  of  transitional  funding
27    instruments  shall be used for  the  purposes  set  forth  in
28    subparagraph  (1) of subsection (d) of Section 18-103 of this
29    Article.
30        (c)  Notwithstanding any other provision of law,  neither
31    the  transitional funding order nor the intangible transition
32    property created and established thereby nor  the  instrument
33    funding  charges  authorized  to  be  imposed  and  collected
34    thereunder  shall  be  subject  to  reduction,  postponement,
                            -111-         SRS90HB0362JJsaam02
 1    impairment  or  termination  by  any subsequent action of the
 2    Commission; provided, however, that nothing in this paragraph
 3    is intended to supersede  any  right  of  any  party  to  the
 4    Commission's  proceeding relating to the transitional funding
 5    order to seek judicial review of  such  transitional  funding
 6    order.
 7        (d)  The  Commission  shall  provide  in any transitional
 8    funding order for a procedure for periodic adjustments to the
 9    instrument funding charges set  forth  therein  in  order  to
10    ensure  the  repayment in accordance with the projections set
11    forth in  the  transitional  funding  order  of  all  grantee
12    instruments  or,  if such transitional funding order does not
13    provide  for  the  issuance  of  grantee   instruments,   the
14    corresponding  transitional  funding  instruments  authorized
15    therein   and   to   reconcile  the  revenues  received  from
16    instrument funding charges during the  applicable  adjustment
17    period  with  the revenues projected to be received from such
18    charges as set forth in  the  relevant  transitional  funding
19    order.   Unless  the  transitional  funding  order  otherwise
20    provides,  such  adjustments  shall  be required whenever the
21    instrument funding  charges  actually  collected  during  the
22    applicable  adjustment  period  by  the  appropriate party or
23    parties were greater or  less  than  the  instrument  funding
24    charges  projected in the relevant transitional funding order
25    to be collected in such adjustment period; provided that,  if
26    so  requested by an electric utility in any application for a
27    transitional funding order, the  transitional  funding  order
28    may  (i)  specify  a dollar or percentage amount of variation
29    from the projected revenues within which no such  adjustments
30    will  be  required and/or (ii) set forth a maximum adjustment
31    amount for the  instrument  funding  charges.   The  electric
32    utility  (or  such  other  party  as  may be specified in the
33    pertinent transitional funding order) shall determine, within
34    90 days of the end of each adjustment period (or such shorter
                            -112-         SRS90HB0362JJsaam02
 1    period as may be provided in the documents  relating  to  the
 2    pertinent   transitional   funding   instruments  or  grantee
 3    instruments,  as   applicable),   whether   any   adjustments
 4    described  above in this subsection (d) of Section 18-104 are
 5    required.  If any such  adjustments  are  so  required,  such
 6    adjustments  shall  be  implemented  by the electric utility,
 7    grantee, issuer or  assignee,  as  applicable,  with  written
 8    notice  to the Commission, within such 90-day period (or such
 9    shorter period as  may  be  provided  for  in  the  documents
10    relating to the pertinent transitional funding instruments or
11    grantee  instruments,  as  applicable).   Any such adjustment
12    shall be calculated to include amounts necessary for recovery
13    of any additional costs incurred  by  the  grantee,  electric
14    utility, assignee or issuer as a result of the relevant delay
15    in  collections  of  instrument  funding  charges.   If, as a
16    result of  any  adjustment,  the  amount  of  any  instrument
17    funding  charge,  as  so  adjusted, will exceed an amount per
18    kilowatt-hour greater than the amount  per  kilowatt-hour  of
19    the  instrument  funding  charge  initially authorized by the
20    Commission  in  its  transitional  funding  order,  then  the
21    relevant  electric  utility  shall  be  obligated   to   file
22    amendatory  tariffs  in  compliance  with  subsection  (k) of
23    Section 18-104.
24        (e)  Except  where  this  Article  specifically  requires
25    otherwise, the collection of instrument funding  charges  and
26    the  allocation  of  any  such  collections as among holders,
27    assignees, issuers, grantees and any other  parties  entitled
28    to receive portions thereof, may be accomplished according to
29    the  provisions  set  forth  in  the  applicable transitional
30    funding order, or,  if  the  order  is  silent  on  any  such
31    matters,  according  to  the  provisions  set  forth  in  the
32    documents  relating  to  the  pertinent  transitional funding
33    instruments   or   grantee   instruments,   as    applicable.
34    Notwithstanding the foregoing, the electric utility, grantee,
                            -113-         SRS90HB0362JJsaam02
 1    issuer  or  assignee, as applicable, shall determine no later
 2    than 90 days after the stated maturity date of each series of
 3    grantee instruments or, if the related  transitional  funding
 4    order   does   not   provide  for  the  issuance  of  grantee
 5    instruments, the stated maturity date of transitional funding
 6    instruments,  whether  the  aggregate  amount  of  instrument
 7    funding charges collected prior to such stated maturity  date
 8    exceeds the amount required to provide for the payment of all
 9    principal,  interest,  premium  and servicing and other fees,
10    costs and charges owing under  such  grantee  instruments  or
11    transitional  funding instruments, as the case may be.  If it
12    is determined that the aggregate amount of instrument funding
13    charges collected exceeds the amount required to provide  for
14    the payment of all principal, interest, premium and servicing
15    and  other  fees,  costs  and charges related to such grantee
16    instruments or transitional funding instruments, as the  case
17    may  be,  such  excess, together with any investment earnings
18    thereon,  shall  be  paid  to  the  owner  of  the  pertinent
19    intangible transition property.
20        (f)  Notwithstanding any other provision of law, on  such
21    conditions  as  the  Commission  may approve in the pertinent
22    transitional funding  order,  the  interest  of  an  electric
23    utility, assignee, issuer or grantee in intangible transition
24    property  or  grantee  instruments,  as  applicable,  may  be
25    assigned, sold or otherwise transferred, in whole or in part,
26    and  may,  in  whole  or  in  part, be pledged or assigned as
27    security to or for the benefit of a holder  or  holders.   To
28    the  extent  that  any  such  interest  or portion thereof is
29    assigned, sold or otherwise transferred  or  is  established,
30    created and granted to a grantee or is pledged or assigned as
31    security,  the  Commission,  in  the  pertinent  transitional
32    funding  order,  shall  authorize the electric utility or any
33    affiliate thereof  to  contract  with  the  grantee,  issuer,
34    assignee  or  holders  to  collect  the applicable instrument
                            -114-         SRS90HB0362JJsaam02
 1    funding charges for the benefit and account of  the  grantee,
 2    issuer,  assignee  or  holder,  and  such electric utility or
 3    affiliate  will,  except  as  otherwise  specified   in   the
 4    transitional   funding  order,  account  for  and  remit  the
 5    applicable instrument funding charge, without the  obligation
 6    to  remit  any  investment  earnings  thereon,  to or for the
 7    account of the grantee,  issuer,  assignee  or  holder.   The
 8    obligation  of  such electric utility or affiliate to collect
 9    and remit the applicable instrument funding charges hereunder
10    shall continue irrespective of whether such electric  utility
11    is  providing  electric  power  and/or  other services to the
12    retail customers and other  persons  obligated  to  pay  such
13    instrument  funding  charges.   If the documents creating the
14    transitional funding instruments or grantee  instruments,  if
15    any,  so  provide,  such obligations shall, in the event of a
16    default by such electric utility or affiliate  in  performing
17    such  obligations,  be  undertaken and performed by any other
18    entity selected by the  assignee  or  any  holder,  group  of
19    holders  or  trustee  or  agent  on  behalf of such holder or
20    holders, as the case may  be,  (i)  which  provides  electric
21    power  or  services to a person that was a retail customer of
22    such electric  utility  and  (ii)  from  whom  such  electric
23    utility  is  entitled  to  recover  transition  charges under
24    Section 16-108; provided, however, that any  failure  by  the
25    designated party to perform such obligations shall not affect
26    the  existence  of  the intangible transition property or the
27    instrument funding charges or the validity or  enforceability
28    of  the  instrument  funding charges in accordance with their
29    terms.
30        (g)  In its transitional funding  order,  the  Commission
31    shall  afford  flexibility  in  establishing  the  terms  and
32    conditions  of  the  transitional funding instruments and the
33    grantee instruments, if any, including  repayment  schedules,
34    collateral,   required   debt  service  and  other  reserves,
                            -115-         SRS90HB0362JJsaam02
 1    interest rates and other financing costs and the  ability  of
 2    the  electric  utility,  at its option, to effect a series of
 3    issuances of transitional  funding  instruments  and  grantee
 4    instruments  and  correlated  assignments,  sales, pledges or
 5    other transfers of intangible transition property and grantee
 6    instruments, if any,  not  to  exceed  the  aggregate  dollar
 7    amounts approved in the transitional funding order.
 8        (h)  The  electric  utility shall file a statement of the
 9    final terms of the issuance of  any  series  of  transitional
10    funding  instruments or grantee instruments, if any, with the
11    Commission within 90 days of the  receipt  of  proceeds  from
12    such  issuance.   In addition, the Commission may require the
13    electric utility to file periodic reports on its use  of  the
14    proceeds at intervals of not less than one year.
15        (i)  Any adjustment to instrument funding charges that is
16    necessary  due  to  subsequent  refinancing  of  transitional
17    funding  instruments or grantee instruments, if any, shall be
18    authorized by the Commission in a supplemental order.
19        (j)  In connection with the issuance  of  a  transitional
20    funding  order and as a precondition to the imposition of any
21    instrument funding charges authorized thereby,  the  relevant
22    electric utility shall file tariffs directing that the amount
23    of  such  instrument funding charges be deducted, stated, and
24    collected separately from the  amounts  otherwise  billed  by
25    such  electric  utility for base rates and transition charges
26    and, where applicable, other rates for tariffed  services  as
27    set  forth  in  the  transitional  funding  order.   Upon the
28    effectiveness of  such  tariff,  the  amounts  of  instrument
29    funding  charges  thereby  deducted  and to be deducted shall
30    have become intangible transition property  as  specified  in
31    the transitional funding order.  The Commission shall have no
32    authority  to  review such tariffs except to confirm that the
33    instrument funding charges  authorized  in  the  transitional
34    funding  order  have  been  deducted,  stated,  and collected
                            -116-         SRS90HB0362JJsaam02
 1    separately from base rates and transition charges and,  where
 2    applicable,  other  rates  for tariffed services otherwise in
 3    effect at such time, and the filing of any  such  tariff  may
 4    not  be  suspended  for any other reason.  No such deductions
 5    referred to in this subsection shall be construed as a change
 6    in or otherwise require a  recalculation  of  the  authorized
 7    amounts  of  such  base  rates, transition charges, and other
 8    rates for tariffed services  under  Section  16-102,  16-107,
 9    16-108,  or 16-110, as applicable. Instrument funding charges
10    shall be recoverable  with  respect  to  electric  power  and
11    energy or other services for which the deductions provided in
12    this  subsection  have become effective and no such deduction
13    shall be effective with respect to any services or  power  in
14    respect  of which instrument funding charges have not been so
15    authorized and imposed.
16        (k)  If any adjustment under subsection  (d)  of  Section
17    18-104 results in the amount of any instrument funding charge
18    as  so adjusted exceeding an amount per kilowatt-hour greater
19    than the amount per kilowatt-hour of the  instrument  funding
20    charge   initially   authorized  by  the  Commission  in  its
21    transitional funding order,  the  relevant  electric  utility
22    shall  file amendatory tariffs reducing the amounts otherwise
23    billed by such electric utility for base rates and transition
24    charges  or,  where  applicable,  other  rates  for  tariffed
25    services, by the amount  of  such  excess.   Such  amendatory
26    tariff  shall  be subject to the provisions of subsection (j)
27    of Section 18-104,  except  that  (i)  the  failure  of  such
28    amendatory  tariff  to  become effective for any reason shall
29    not delay or impair  the  effectiveness  of  the  adjustments
30    required  under subsection (d) of Section 18-104 and (ii) the
31    obligation of retail customers and other persons or groups of
32    persons to pay instrument  funding  charges  as  so  adjusted
33    shall not be subject to any defense, counterclaim or right of
34    set  off  arising  as  a  result  of failure by the pertinent
                            -117-         SRS90HB0362JJsaam02
 1    electric utility  to  comply  with  this  subsection  (k)  of
 2    Section  18-104.   Nothing  in this subsection (k) of Section
 3    18-104 shall restrict any retail  customer  or  other  person
 4    from  bringing  any  suit in any court or from exercising any
 5    other legal or equitable remedy against an  electric  utility
 6    for  any failure by such electric utility to comply with this
 7    subsection (k) of Section 18-104.
 8        (l)  The intangible transition property created  under  a
 9    transitional  funding order and the authority of the grantee,
10    assignee, issuer, electric utility or other person authorized
11    thereunder to impose and collect instrument  funding  charges
12    shall  continue  beyond  the  final  date  set  forth  in the
13    applicable transitional funding order until such time as  all
14    grantee  instruments  authorized  in  such  order  or, if the
15    applicable transitional funding order does  not  provide  for
16    grantee   instruments,   the   related  transitional  funding
17    instruments authorized in such order, have been paid in full.
18        Upon the later  of  the  final  date  set  forth  in  the
19    applicable  transitional funding order for the imposition and
20    collection of instrument funding charges or the repayment  in
21    full  of  any  grantee  instruments  or  transitional funding
22    instruments, as applicable, authorized  in  such  order,  the
23    authority  to  impose  and  collect  the  related  instrument
24    funding charges shall cease and the relevant electric utility
25    shall  be  entitled  to  file tariffs revoking any deductions
26    from base  rates,  transition  charges  or  other  rates  for
27    tariffed  services which were granted in connection with such
28    instrument funding charges  pursuant  to  subsection  (j)  of
29    Section  18-104  or  subsection  (k)  of Section 18-104.  The
30    Commission shall have no authority  to  review  such  tariffs
31    except to determine that the rates and charges resulting from
32    such  revocation  do  not  exceed  the applicable base rates,
33    transition charges, or  other  rates  for  tariffed  services
34    which would otherwise have been in effect at the time of such
                            -118-         SRS90HB0362JJsaam02
 1    revocation  had  no  instrument  funding  charges  ever  been
 2    deducted therefrom.
 3        (m)  If  so  requested  by  an  electric  utility  in its
 4    application for a transitional funding order, the Commission,
 5    in the relevant transitional funding order, may authorize (i)
 6    the  issuance  of  grantee  instruments  and/or  transitional
 7    funding instruments with expected maturity dates  later  than
 8    December  31,  2008  but not later than December 31, 2010 and
 9    (ii) the imposition  and  collection  of  instrument  funding
10    charges  by  electric utilities, grantees, or assignees later
11    than December 31, 2008 but not later than December  31,  2010
12    if  the  electric  utility  includes in its application a pro
13    forma calculation of  the  impact  of  the  issuance  of  the
14    transitional  funding  instruments or grantee instruments and
15    the associated use of proceeds  on  the  revenue  requirement
16    established  by the Commission in the electric utility's last
17    rate  case,  with  such  calculation  to  be  presented   for
18    illustrative purposes only, and the Commission, in its review
19    of  the  relevant  application  for  the transitional funding
20    order, finds that such action is in the public  interest  and
21    that  the  instrument  funding  charges  to be applied toward
22    payment of transitional funding  instruments  after  December
23    31,  2008  will be deducted, stated, and collected separately
24    from base  rates  and,  where  applicable,  other  rates  for
25    tariffed  services  otherwise  in  effect at such time and as
26    scheduled to be in  effect  through  such  expected  maturity
27    date.
28        (220 ILCS 5/18-105 new)
29        Sec. 18-105.  Intangible transition property.
30        (a)  Notwithstanding  any  other provision of this Act or
31    other law, the Commission is hereby authorized, in accordance
32    with the application for a  transitional  funding  order,  to
33    create,   establish   and  grant  rights  in,  to  and  under
                            -119-         SRS90HB0362JJsaam02
 1    intangible  transition  property  in  and  to  any   grantee,
 2    electric utility, issuer or assignee, and such party shall be
 3    granted the power to levy general tariffs on retail customers
 4    of an electric utility or any other person required to pay an
 5    instrument  funding charge in order to collect the instrument
 6    funding charges related to the intangible transition property
 7    in which such party has been granted rights and in  order  to
 8    facilitate  the  issuance of transitional funding instruments
 9    and grantee instruments, if any,  to,  by  or  on  behalf  of
10    electric  utilities,  grantees,  issuers  or  assignees.  The
11    Commission shall be authorized to create, establish and grant
12    such rights hereunder in and to such party  with  or  without
13    receiving consideration from such party.
14        (b)  The  State pledges to and agrees with the holders of
15    any transitional  funding  instruments  who  may  enter  into
16    contracts  with  an  electric  utility,  grantee, assignee or
17    issuer pursuant to this Article XVIII that the State will not
18    in any way limit,  alter,  impair  or  reduce  the  value  of
19    intangible  transition  property  created  by,  or instrument
20    funding charges approved by, a transitional funding order  so
21    as  to impair the terms of any contract made by such electric
22    utility, grantee, assignee or issuer with such holders or  in
23    any  way impair the rights and remedies of such holders until
24    the  pertinent  grantee  instruments  or,  if   the   related
25    transitional  funding order does not provide for the issuance
26    of grantee instruments, the  pertinent  transitional  funding
27    instruments  and  interest, premium and other fees, costs and
28    charges related thereto, as the case may be, are  fully  paid
29    and discharged.  Electric utilities, grantees and issuers are
30    authorized  to  include  these  pledges and agreements of the
31    State in  any  contract  with  the  holders  of  transitional
32    funding  instruments  or  with any assignees pursuant to this
33    Article XVIII and any assignees are similarly  authorized  to
34    include  these  pledges  and  agreements  of the State in any
                            -120-         SRS90HB0362JJsaam02
 1    contract with any  issuer,  holder  or  any  other  assignee.
 2    Nothing  in  this  Article  XVIII shall preclude the State of
 3    Illinois from  requiring  adjustments  as  may  otherwise  be
 4    allowed   by  law  to  the  electric  utility's  base  rates,
 5    transition  charges,  delivery  services  charges,  or  other
 6    charges for tariffed services, so long as any such adjustment
 7    does not directly affect or  impair  any  instrument  funding
 8    charges previously authorized by a transitional funding order
 9    issued by the Commission.
10        (c)  Transitional   funding   instruments   and   grantee
11    instruments,  if  any,  issued  under  this  Article  do  not
12    constitute debt or liability of the State or of any political
13    subdivision   thereof,   and   transitional   funding  orders
14    authorizing such issuance do not constitute a pledge  of  the
15    full faith and credit of the State or of any of its political
16    subdivisions.    The   issuance   of   transitional   funding
17    instruments  and  grantee  instruments,  if  any,  under this
18    Article  shall  not  directly,  indirectly  or   contingently
19    obligate  the  State  or any political subdivision thereof to
20    levy or to pledge any form of taxation therefor  or  to  make
21    any   appropriation   for   their   payment,   and  any  such
22    transitional funding instruments and grantee instruments,  if
23    any,  shall  be payable solely from the intangible transition
24    property or grantee instruments, as the case may be, or  from
25    such  other  proceeds or property as may be pledged therefor.
26    Nothing in this Section shall be  construed  to  prevent  the
27    State  or  any  political subdivision thereof from owning any
28    interest in a grantee, assignee or issuer or to  prevent  any
29    electric  utility,  issuer, grantee or assignee from selling,
30    pledging  or  assigning  intangible  transition  property  or
31    grantee instruments, as the case may be,  or  from  providing
32    recourse  or  guarantees  or  any  other  third-party  credit
33    enhancement   in   connection   with  such  sale,  pledge  or
34    assignment.
                            -121-         SRS90HB0362JJsaam02
 1        (220 ILCS 5/18-106 new)
 2        Sec. 18-106.  Grantee instruments.
 3        (a)  If an electric utility to which grantee  instruments
 4    have  been  issued  discontinues providing electric power and
 5    energy services prior to the maturity date  of  such  grantee
 6    instruments,  such  electric utility shall not be entitled to
 7    receive any payment on such grantee instruments on and  after
 8    the date of such discontinuance.
 9        (b)  Notwithstanding  the provisions of subsection (a) of
10    this Section, any assignee holding such  grantee  instruments
11    or  any  holder of transitional funding instruments which are
12    secured by such grantee  instruments  shall  nevertheless  be
13    entitled  to  recover  amounts  payable by such grantee under
14    such grantee instruments in accordance with their terms as if
15    such electric utility had not discontinued the  provision  of
16    electric power and energy.
17        (c)  Notwithstanding  any  other  provision  of  law, the
18    issuance of any grantee instruments in  accordance  with  the
19    terms  and  provisions  of a transitional funding order shall
20    for all purposes be exempt from the application of Article 39
21    of the Criminal Code of 1961 and the Interest Act.
22        (220 ILCS 5/18-107 new)
23        Sec. 18-107. Security interests in intangible  transition
24    property and grantee instruments.
25        (a)  Notwithstanding  any other provision of law, neither
26    intangible transition property, grantee instruments  nor  any
27    right,  title  or interest therein, shall constitute property
28    in which a security interest may be created under the Uniform
29    Commercial Code nor shall any such rights be deemed  proceeds
30    of  any  property which is not intangible transition property
31    or grantee instruments, as the case may be.  For purposes  of
32    the  foregoing,  the terms "account" and "general intangible"
33    (as defined under Section 9-106 of the    Uniform  Commercial
                            -122-         SRS90HB0362JJsaam02
 1    Code)  and  the  term  "instrument" (as defined under Section
 2    9-105 of the Uniform Commercial Code) shall, as used  in  the
 3    Uniform  Commercial  Code,  be  deemed  to  exclude  any such
 4    intangible transition property, grantee  instruments  or  any
 5    right, title, or interest therein.
 6        (b)  The granting, perfection and enforcement of security
 7    interests   in  intangible  transition  property  or  grantee
 8    instruments are governed  by  this  Section  rather  than  by
 9    Article 9 of the Uniform Commercial Code.
10        (c)  A   valid   and  enforceable  security  interest  in
11    intangible transition property  and  in  grantee  instruments
12    shall  attach  and  be  perfected only by the means set forth
13    below in this subsection (c) of Section 18-107:
14             (1)  To the extent transitional funding  instruments
15        or  grantee  instruments  are  purported to be secured by
16        intangible  transition  property   or   to   the   extent
17        transitional  funding  instruments  are  purported  to be
18        secured by grantee instruments, as the case  may  be,  as
19        specified  in  the applicable transitional funding order,
20        the lien of  the  transitional  funding  instruments  and
21        grantee  instruments,  if any, shall attach automatically
22        to  such  intangible  transition  property  and   grantee
23        instruments,  if  any,  from  the time of issuance of the
24        transitional funding instruments and grantee instruments,
25        if any.  Such lien  shall  be  a  valid  and  enforceable
26        security  interest  in the intangible transition property
27        or the grantee instruments, as the case may be,  securing
28        the   transitional   funding   instruments   and  grantee
29        instruments, if any, and shall be continuously  perfected
30        if,  before  the  date  of  issuance  of  the  applicable
31        transitional  funding instruments or grantee instruments,
32        if any, or within no more  than  10  days  thereafter,  a
33        filing  has  been made by or on behalf of the holder with
34        the Chief Clerk  of  the  Commission  stating  that  such
                            -123-         SRS90HB0362JJsaam02
 1        transitional  funding instruments or grantee instruments,
 2        if any, have been issued.  Any such filing made with  the
 3        Commission   in  respect  to  such  transitional  funding
 4        instruments or grantee instruments shall take  precedence
 5        over  any  subsequent  filing  except as may otherwise be
 6        provided in the applicable transitional funding order.
 7             (2)  The   liens   under   subparagraph   (1)    are
 8        enforceable  against  the electric utility, any assignee,
 9        grantee or  issuer,  and  all  third  parties,  including
10        judicial  lien  creditors,  subject only to the rights of
11        any third  parties  holding  security  interests  in  the
12        intangible  transition  property  or  grantee instruments
13        previously perfected in  the  manner  described  in  this
14        subsection  if  value has been given by the purchasers of
15        transitional funding instruments or grantee  instruments.
16        A  perfected  lien  in intangible transition property and
17        grantee instruments, if any, is a continuously  perfected
18        security  interest  in  all  then  existing or thereafter
19        arising revenues and proceeds arising with respect to the
20        associated  intangible  transition  property  or  grantee
21        instruments, as the case  may  be,  whether  or  not  the
22        electric  power and energy included in the calculation of
23        such revenues and proceeds have been provided.  The  lien
24        created  under  this  subsection  is  perfected and ranks
25        prior to any other lien,  including  any  judicial  lien,
26        which  subsequently attaches to the intangible transition
27        property or grantee instruments, as the case may be,  and
28        to  any  other rights created by the transitional funding
29        order or any revenues or proceeds of the foregoing.   The
30        relative priority of a lien created under this subsection
31        is  not  defeated or adversely affected by changes to the
32        transitional funding order or to the  instrument  funding
33        charges  payable  by any retail customer, class of retail
34        customers or other person or group of  persons  obligated
                            -124-         SRS90HB0362JJsaam02
 1        to pay such charges.
 2             (3)  The  relative  priority of a lien created under
 3        this subsection is not defeated or adversely affected  by
 4        the  commingling  of  revenues  arising  with  respect to
 5        intangible transition  property  or  grantee  instruments
 6        with  funds of the electric utility or other funds of the
 7        assignee, issuer or grantee.
 8             (4)  If   an   event   of   default   occurs   under
 9        transitional funding instruments or grantee  instruments,
10        the  holders thereof or their authorized representatives,
11        as secured parties, may foreclose  or  otherwise  enforce
12        the  lien in the grantee instruments or in the intangible
13        transition property  securing  the  transitional  funding
14        instruments   or   grantee  instruments,  as  applicable,
15        subject to the rights of any third parties holding  prior
16        security  interests in the intangible transition property
17        or grantee instruments previously perfected in the manner
18        provided in this subsection.   Upon  application  by  the
19        holders  or  their  authorized  representatives,  without
20        limiting their other remedies, the Commission shall order
21        the  sequestration  and  payment  to the holders or their
22        authorized  representatives  of  revenues  arising   with
23        respect  to the intangible transition property or grantee
24        instruments pledged to the holders.  An order under  this
25        subsection   shall   remain  in  full  force  and  effect
26        notwithstanding any bankruptcy, reorganization, or  other
27        insolvency  proceedings  with  respect  to  the  electric
28        utility, grantee, assignee or issuer.
29             (5)  The   Commission   shall   maintain  segregated
30        records which reflect the date and time of receipt of all
31        filings made under this subsection.  The  Commission  may
32        provide  that transfers of intangible transition property
33        or of grantee instruments be filed in accordance with the
34        same system.
                            -125-         SRS90HB0362JJsaam02
 1        (220 ILCS 5/18-108 new)
 2        Sec. 18-108.   Characterization  of  transfer.   A  sale,
 3    assignment   or   other  transfer  of  intangible  transition
 4    property or grantee instruments which is expressly stated  in
 5    the  documents  governing   such  transaction to be a sale or
 6    other absolute transfer,  in  a  transaction  approved  in  a
 7    transitional  funding  order, shall be treated as an absolute
 8    transfer of all of the transferor's right, title and interest
 9    in, to and  under  such  intangible  transition  property  or
10    grantee  instruments  which  places such transferred property
11    beyond the reach of the transferor or its creditors, as in  a
12    true  sale,  and  not as a pledge or other financing, of such
13    intangible transition property or grantee instruments, as the
14    case may be; provided, however,  that  whether  or  not  such
15    transfer  is  deemed  to  be  a sale for federal tax purposes
16    shall be governed by applicable law without  regard  to  this
17    Section 18-108.  The characterization of any such transfer as
18    an  absolute  transfer and the corresponding characterization
19    of the transferee's property interest shall not  be  defeated
20    or  adversely  affected  by,  among  other  things:  (i)  the
21    commingling  of  revenues  arising with respect to intangible
22    transition property or grantee instruments, as the  case  may
23    be,  with funds of the electric utility or other funds of the
24    assignee, issuer or grantee;  (ii)  granting  to  holders  of
25    transitional  funding  instruments  a  preferred right to the
26    intangible transition property, whether direct  or  indirect;
27    (iii)   the  provision  by  the  electric  utility,  grantee,
28    assignee, or issuer of any  recourse,  collateral  or  credit
29    enhancement  with respect to transitional funding instruments
30    or  grantee  instruments,  as  the  case  may  be;  (iv)  the
31    retention by the assigning party of a partial interest in any
32    intangible transition property, whether direct  or  indirect,
33    or  whether  subordinate  or  otherwise;  or (v) the electric
34    utility's responsibilities for collecting instrument  funding
                            -126-         SRS90HB0362JJsaam02
 1    charges and any retention of bare legal title for the purpose
 2    of   such  collection  activities;  provided,  however,  that
 3    nothing in  this  Section  18-108  is  intended  to  preclude
 4    consideration  of  such  provisions in determining whether or
 5    not such transfer is deemed to be  a  sale  for  federal  tax
 6    purposes  under other applicable law.  A sale, assignment, or
 7    other transfer of intangible transition property  or  grantee
 8    instruments, as the case may be, shall be deemed perfected as
 9    against third persons, including any judicial lien creditors,
10    when all of the following have taken place:
11             (1)  The  Commission  has  issued  the  transitional
12        funding   order   creating   the   intangible  transition
13        property; and
14             (2)  A  sale,  assignment   or   transfer   of   the
15        intangible transition property or grantee instruments, as
16        the  case  may  be,  has  been  executed and delivered in
17        writing by the electric utility.
18        (220 ILCS 5/18-109 new)
19        Sec.  18-109.  Actions   with   respect   to   intangible
20    transition property and related instrument funding charges.
21        (a)  Notwithstanding  any  other provision of this Act or
22    other law, any electric utility, issuer, assignee, grantee or
23    holder shall be expressly permitted hereby  to  bring  action
24    against  a  retail customer or other person for nonpayment of
25    any instrument funding charges constituting  a  part  of  the
26    intangible  transition  property  then  held by such electric
27    utility, issuer, assignee, grantee or holder. Notwithstanding
28    any other provision of this Act, any  such  action  shall  be
29    subject  to any and all applicable consumer credit protection
30    laws and other laws relating to origination,  collection  and
31    reporting of consumer credit obligations.
32        (b)  Notwithstanding  any  other provision of this Act or
33    other law, the Commission shall have  exclusive  jurisdiction
                            -127-         SRS90HB0362JJsaam02
 1    over any dispute arising out of the obligations to impose and
 2    collect  instrument  funding  charges of an electric utility,
 3    its successor or any other  entity  which  provides  electric
 4    power  or  energy  or delivery services to a person from whom
 5    the electric utility  is  authorized  to  recover  transition
 6    charges  under Section 16-108.  Nothing in this Section shall
 7    prevent  holders from bringing any suit in any court or  from
 8    exercising  any  other  legal  or equitable remedy against an
 9    electric utility for failure  to  distribute  collections  of
10    instrument  funding charges from retail customers, classes of
11    retail customers or  other  persons  or  from  bringing  suit
12    against  an  electric  utility  for  damages arising from any
13    failure by such electric utility to perform  the  contractual
14    obligations agreed to by it under any documents pertaining to
15    or  executed  in  connection  with  the  transitional funding
16    instruments issued by or on behalf of such electric utility.
17        (220 ILCS 5/18-110 new)
18        Sec.  18-110.  Taxation  of   transfers   of   intangible
19    transition property and grantee instruments.
20        (a)  Any  sale,  pledge,  assignment or other transfer of
21    intangible transition property and  grantee  instruments,  if
22    any,  shall  be exempt from any State or local sales, income,
23    transfers, gains, receipts or similar taxes.
24        (b)  Any transfer of intangible transition  property  and
25    grantee  instruments, if any, shall be treated as a pledge or
26    other financing for State tax purposes, including  State  and
27    local  income  and  franchise  taxes,  unless  the  documents
28    governing  such transfer specifically state that the transfer
29    is intended to be treated otherwise.
30        (225 ILCS 5/18-111 new)
31        Sec. 18-111.  Limitations  on  issuance  of  transitional
32    funding orders, collection of instrument funding charges, and
                            -128-         SRS90HB0362JJsaam02
 1    use   of  proceeds  from  issuance  of  transitional  funding
 2    instruments and grantee instruments.
 3        Notwithstanding any  other  provisions  of  this  Article
 4    XVIII:
 5        (1)  The  Commission shall be prohibited from issuing any
 6    transitional funding order prior to January 1, 1998,  and  no
 7    electric   utility   shall  issue  any  transitional  funding
 8    instrument or grantee instrument, prior to August 1, 1998, or
 9    after December 31, 2004.
10        (2)  The Commission shall be authorized to include in any
11    transitional funding order an  expiration  date  after  which
12    date  the  electric  utility shall no longer be authorized to
13    issue transitional funding instruments or grantee instruments
14    pursuant to such order, provided, that  any  such  expiration
15    date  specified  in  a transitional funding order shall be no
16    earlier than 24 months following the date of issuance of  the
17    relevant transitional funding order.
18        (3)  No electric utility shall be allowed to increase its
19    rates  for  tariffed services, including delivery charges, or
20    its transition charges, above the level or levels which would
21    have been allowed in accordance with this Act if the electric
22    utility were not authorized to impose and collect  instrument
23    funding charges.
24        (4)  Any   transitional   funding  order  issued  by  the
25    Commission shall set forth,  based  on  the  information  set
26    forth  in  the electric utility's application, the procedures
27    to be followed by the  electric  utility  for  assuring  that
28    proceeds  from  the  issuance  of  the  transitional  funding
29    instruments  or  grantee instruments authorized by such order
30    are applied in accordance with the terms of the order.    Any
31    use  by  an electric utility of the proceeds from issuance of
32    transitional funding instruments or grantee instruments other
33    than  in  accordance  with  the  purposes  specified  in  the
34    relevant  transitional  funding  order  of  the   Commission,
                            -129-         SRS90HB0362JJsaam02
 1    pursuant to subsection (d) of Section 18-103, shall be void.
 2        Section  10.  The  Public  Utilities  Act  is  amended by
 3    changing Sections 3-105, 5-104, 6-102, 7-101,  7-102,  7-204,
 4    7-206, 8-406, 8-503, 8-510, 9-201.5, 9-220, 9-244, and 10-113
 5    and adding Section 4-404 as follows:
 6        (220 ILCS 5/3-105) (from Ch. 111 2/3, par. 3-105)
 7        Sec.  3-105.  Public  utility. "Public utility" means and
 8    includes, except where otherwise expressly provided  in  this
 9    Section,   every   corporation,  company,  limited  liability
10    company, association, joint  stock  company  or  association,
11    firm,  partnership or individual, their lessees, trustees, or
12    receivers  appointed  by  any  court  whatsoever  that  owns,
13    controls, operates or manages, within this State, directly or
14    indirectly, for public use, any plant, equipment or  property
15    used  or  to  be  used  for or in connection with, or owns or
16    controls any franchise, license, permit or  right  to  engage
17    in:
18             a.  the  production,  storage,  transmission,  sale,
19        delivery or furnishing of heat, cold, power, electricity,
20        water,   or   light,   except   when   used   solely  for
21        communications purposes;
22             b.  the disposal of sewerage; or
23             c.  the conveyance of oil or gas by pipe line.
24        "Public utility" does not include, however:
25             1.  public utilities that are owned and operated  by
26        any  political  subdivision, public institution of higher
27        education or municipal  corporation  of  this  State,  or
28        public   utilities  that  are  owned  by  such  political
29        subdivision, public institution of higher  education,  or
30        municipal  corporation and operated by any of its lessees
31        or operating agents;
32             2.  water  companies   which   are   purely   mutual
                            -130-         SRS90HB0362JJsaam02
 1        concerns,  having  no  rates or charges for services, but
 2        paying the operating  expenses  by  assessment  upon  the
 3        members of such a company and no other person;
 4             3.  electric  cooperatives  as  defined  in  Section
 5        3-119;
 6             4.  residential  natural  gas  cooperatives that are
 7        not-for-profit corporations established for  the  purpose
 8        of  administering  and operating, on a cooperative basis,
 9        the furnishing of  natural  gas  to  residences  for  the
10        benefit of their members who are residential consumers of
11        natural  gas.   For  entities  qualifying  as residential
12        natural gas cooperatives and recognized by  the  Illinois
13        Commerce  Commission  as  such, the State shall guarantee
14        legally binding contracts  entered  into  by  residential
15        natural  gas  cooperatives  for  the  express  purpose of
16        acquiring natural gas supplies for  their  members.   The
17        Illinois  Commerce  Commission  shall establish rules and
18        regulations providing for  such  guarantees.   The  total
19        liability  of  the State in providing all such guarantees
20        shall not at any time exceed $1,000,000,  nor  shall  the
21        State  provide  such a guarantee to a residential natural
22        gas cooperative for more than 3 consecutive years;
23             5.  sewage disposal companies which  provide  sewage
24        disposal  services on a mutual basis without establishing
25        rates or charges for services, but paying  the  operating
26        expenses  by  assessment  upon the members of the company
27        and no others;
28             6.  (Blank);
29             7.  cogeneration facilities, small power  production
30        facilities,  and  other qualifying facilities, as defined
31        in  the  Public  Utility  Regulatory  Policies  Act   and
32        regulations  promulgated thereunder, except to the extent
33        State regulatory jurisdiction and action is  required  or
34        authorized   by   federal  law,  regulations,  regulatory
                            -131-         SRS90HB0362JJsaam02
 1        decisions or the decisions of federal or State courts  of
 2        competent jurisdiction; and
 3             8.  the  ownership  or  operation of a facility that
 4        sells compressed natural gas at retail to the public  for
 5        use  only  as  a  motor  vehicle  fuel and the selling of
 6        compressed natural gas at retail to the  public  for  use
 7        only as a motor vehicle fuel; and.
 8             9.  alternative retail electric suppliers as defined
 9        in Article XVI.
10        For the purpose of the least-cost planning obligations of
11    Section  8-401  and  for  all  of Section 8-402, the Illinois
12    Commerce Commission may, for good cause shown  in  individual
13    cases,  exclude  from  the  meaning  of  "public utility" the
14    electric operations  of  any  public  utility,  as  otherwise
15    defined  in  this Act, which serves less than 20,000 electric
16    customers within the State of Illinois, or the gas operations
17    of any public utility, as  otherwise  defined  in  this  Act,
18    which  serves less than 20,000 gas customers within the State
19    of Illinois.
20    (Source: P.A. 88-480; 89-42, eff. 1-1-96.)
21        (220 ILCS 5/4-404 new)
22        Sec. 4-404.  Protection of confidential  and  proprietary
23    information.    The   Commission   shall   provide   adequate
24    protection   for  confidential  and  proprietary  information
25    furnished, delivered or filed by any person,  corporation  or
26    other entity.
27        (220 ILCS 5/5-104) (from Ch. 111 2/3, par. 5-104)
28        Sec. 5-104. Depreciation accounts.
29        (a)  The  Commission  shall have power, after hearing, to
30    require any or all public utilities, except  electric  public
31    utilities,  to  keep such accounts as will adequately reflect
32    depreciation, obsolescence and the progress of the arts.  The
                            -132-         SRS90HB0362JJsaam02
 1    Commission  may,  from  time to time, ascertain and determine
 2    and by order fix the proper and adequate rate of depreciation
 3    of the several classes of property for each  public  utility;
 4    and  each  public  utility  shall  conform  its  depreciation
 5    accounts to the rates so ascertained, determined and fixed.
 6        (b)  The  Commission shall have the power, after hearing,
 7    to require any or all electric public utilities to keep  such
 8    accounts    as    will   adequately   reflect   depreciation,
 9    obsolescence, and the progress of the arts.   The  Commission
10    may,  from time to time, ascertain and determine and by order
11    fix the proper and  adequate  rate  of  depreciation  of  the
12    several classes of property for each electric public utility;
13    and  each  electric  public  utility shall thereafter, absent
14    further order of the  Commission,  conform  its  depreciation
15    accounts  to  the  rates so ascertained, determined and fixed
16    until at least the  end  of  the  first  full  calendar  year
17    following the date of such determination.
18        (c)  An  electric  public  utility  may from time to time
19    alter the annual rates of depreciation, which for purposes of
20    this  subsection  (c)  and  subsection  (d)   shall   include
21    amortization,  that  it  applies  to  its  several classes of
22    assets so long as the rates  are  consistent  with  generally
23    accepted  accounting principles.  The electric public utility
24    shall file a statement with the Commission  which  shall  set
25    forth the new rates of depreciation and which shall contain a
26    certification  by  an independent certified public accountant
27    that the  new  rates  of  depreciation  are  consistent  with
28    generally accepted accounting principles.  Upon the filing of
29    such statement, the new rates of depreciation shall be deemed
30    to be approved by the Commission as the rates of depreciation
31    to  be  applied thereafter by the public utility as though an
32    order had been entered pursuant to subsection (b).
33        (d)  In any  proceeding  conducted  pursuant  to  Section
34    9-201  or 9-202 to set an electric public utility's rates for
                            -133-         SRS90HB0362JJsaam02
 1    service,  the  Commission  may  determine  not  to  use,   in
 2    determining  the depreciation expense component of the public
 3    utility's  rates  for  service,  the  rates  of  depreciation
 4    established pursuant to subsection (c), if the Commission  in
 5    that  proceeding  finds  based  on  the record that different
 6    rates of depreciation  are  required  to  adequately  reflect
 7    depreciation,  obsolescence and the progress of the arts, and
 8    fixes by order and uses for purposes of that  proceeding  new
 9    rates  of  depreciation  to  be  thereafter  employed  by the
10    electric public utility until  the  end  of  the  first  full
11    calendar  year  following  the  date of the determination and
12    thereafter until altered in accordance with subsection (b) or
13    (c) of this Section.
14    (Source: P.A. 84-617.)
15        (220 ILCS 5/6-102) (from Ch. 111 2/3, par. 6-102)
16        Sec. 6-102. Authorization of issues of stock.
17        (a)  Subject to the provisions of this  Act  and  of  the
18    order  of  the  Commission  issued as provided in this Act, a
19    public utility may issue stocks and stock  certificates,  and
20    bonds,  notes  and other evidences of indebtedness payable at
21    periods of more than 12 months after the date thereof for any
22    lawful purpose. However, such public utility shall first have
23    secured from the Commission an order authorizing  such  issue
24    and stating the amount thereof and the purpose or purposes to
25    which  the  issue  or the proceeds thereof are to be applied,
26    and that  in  the  opinion  of  the  Commission,  the  money,
27    property or labor to be procured or paid for by such issue is
28    reasonably  required for the purpose or purposes specified in
29    the order.
30        (b)  The provisions of this subsection  (b)  shall  apply
31    only  to  (1)  any issuances of stock in a cumulative amount,
32    exclusive of any issuances referred to in item (3), that  are
33    10%  or  more in a calendar year or 20% or more in a 24-month
                            -134-         SRS90HB0362JJsaam02
 1    period of the total common stockholders'  equity  or  of  the
 2    total  amount of preferred stock outstanding, as the case may
 3    be, of the public utility, and (2) to any issuances of bonds,
 4    notes or other evidences  of  indebtedness  in  a  cumulative
 5    principal  amount,  exclusive of any issuances referred to in
 6    item (3), that are 10% or more in a calendar year or  20%  or
 7    more  in  a 24-month period of the aggregate principal amount
 8    of bonds, notes and other evidences of  indebtedness  of  the
 9    public  utility  outstanding,  all  as  of  the  date  of the
10    issuance, but shall not apply to (3) any issuances  of  stock
11    or  of bonds, notes or other evidences of indebtedness 90% or
12    more of the proceeds of which are to be used  by  the  public
13    utility  for  purposes of refunding, redeeming or refinancing
14    outstanding issues of stock, bonds, notes or other  evidences
15    of  indebtedness.  To  enable it to determine whether it will
16    issue the such order  required  by  subsection  (a)  of  this
17    Section, the Commission may shall hold a hearing and may make
18    such  additional  inquiry  or investigation, and examine such
19    witnesses, books, papers, accounts, documents  and  contracts
20    and  require  the  filing  of  such  data  as  it may deem of
21    assistance.  The  public  utility  may  be  required  by  the
22    Commission to disclose every interest  of  the  directors  of
23    such  public  utility in any transaction under investigation.
24    The Commission shall  have  power  to  investigate  all  such
25    transactions  and  to inquire into the good faith thereof, to
26    examine books, papers, accounts, documents and  contracts  of
27    public utilities, construction or other companies or of firms
28    or  individuals  with  whom the public utility shall have had
29    financial transactions, for the purpose  of  enabling  it  to
30    verify  any  statements  furnished,  and  to examine into the
31    actual value of property acquired by or services rendered  to
32    such   public   utility.   Before   issuing  its  order,  the
33    Commission, when it is deemed necessary  by  the  Commission,
34    shall  make an adequate physical valuation of all property of
                            -135-         SRS90HB0362JJsaam02
 1    the public utility, but a valuation already made under proper
 2    public supervision may be adopted,  either  in  whole  or  in
 3    part,  at  the  discretion  of the Commission; and shall also
 4    examine all previously authorized or  outstanding  securities
 5    of  the public utility, and fixed charges attached thereto. A
 6    statement of the results of such physical  valuation,  and  a
 7    statement  of  the  character  of all outstanding securities,
 8    together with the conditions under which they are held, shall
 9    be included in the order. The  Commission  may  require  that
10    such  information  or  such part thereof as it thinks proper,
11    shall appear upon the stock, stock certificate, bond, note or
12    other evidence of indebtedness authorized by its  order.  The
13    Commission may by its order grant permission for the issue of
14    such  stock  certificates, or bonds, notes or other evidences
15    of indebtedness in the amount applied for,  or  in  a  lesser
16    amount,  or not at all, and may attach to the exercise of its
17    permission such  condition  or  conditions  as  it  may  deem
18    reasonable  and  necessary.  Nothing  in  this  Section shall
19    prevent a public utility from  seeking,  nor  the  Commission
20    from   approving,  a  shelf  registration  plan  for  issuing
21    securities  over  a  reasonable  period  in  accordance  with
22    regulations established by the United States  Securities  and
23    Exchange  Commission.   Any  securities issued pursuant to an
24    approved shelf registration plan need not be further approved
25    by the Commission so long as they are in compliance with  the
26    approved  shelf  registration plan. The Commission shall have
27    the power to refuse its approval  of  applications  to  issue
28    securities,  in  whole  or  in  part, upon a finding that the
29    issue  of  such  securities  would  be  contrary  to   public
30    interest.  The Commission may also require the public utility
31    to compile for the information of its shareholders such facts
32    in regard to its financial transactions, in such form as  the
33    Commission may direct.
34        No  public  utility  shall,  without  the  consent of the
                            -136-         SRS90HB0362JJsaam02
 1    Commission,  apply  the  issue  of   any   stock   or   stock
 2    certificates,   or   bond,   note   or   other   evidence  of
 3    indebtedness, which was issued pursuant to an  order  of  the
 4    Commission  entered  pursuant  to this subsection (b), or any
 5    part thereof, or any proceeds thereof,  to  any  purpose  not
 6    specified  in  the  Commission's  order  or  to  any  purpose
 7    specified  in  the Commission's order in excess of the amount
 8    authorized for such purpose; or issue or dispose of the  same
 9    on  any  terms  less  favorable  than those specified in such
10    order, or a modification thereof. The Commission  shall  have
11    the  power  to  require  public  utilities to account for the
12    disposition of the proceeds of all sales of stocks and  stock
13    certificates,   and  bonds,  notes  and  other  evidences  of
14    indebtedness, which were issued pursuant to an order  of  the
15    Commission  entered  pursuant to this subsection (b), in such
16    form and detail as it may deem advisable,  and  to  establish
17    such  rules  and  regulations  as  it may deem reasonable and
18    necessary to insure the disposition of such proceeds for  the
19    purpose or purposes specified in its order.
20        (c)  A   public  utility  may  issue  notes,  for  proper
21    purposes, and not in violation of any provision of  this  Act
22    or  any  other  Act,  payable  at periods of not more than 12
23    months after the date of issuance of the  same,  without  the
24    consent  of  the Commission; but no such note shall, in whole
25    or in part, be renewed or be refunded from  the  proceeds  of
26    any  other such note or evidence of indebtedness from time to
27    time without the consent of the Commission for  an  aggregate
28    period of longer than 2 two years.
29        (d)  Any  issuance  of  stock or of bonds, notes or other
30    evidences of indebtedness,  other  than  issuances  of  notes
31    pursuant  to  subsection  (c)  of  this Section, which is not
32    subject to subsection (b) of this Section, shall be regulated
33    by the Commission as follows:  the public utility shall  file
34    with  the Commission, at least 15 days before the date of the
                            -137-         SRS90HB0362JJsaam02
 1    issuance, an informational statement setting forth  the  type
 2    and  amount of the issue and the purpose or purposes to which
 3    the issue or the proceeds thereof are to be  applied.   Prior
 4    to the date of the issuance specified in the public utility's
 5    filing,  the Commission, if it finds that the issuance is not
 6    subject to subsection (b) of  this  Section,  shall  issue  a
 7    written  order  in  conformance  with  subsection (a) of this
 8    Section authorizing the issuance.  Notwithstanding any  other
 9    provisions  of  this  Act,  the  Commission  may delegate its
10    authority to enter the order required by this subsection  (d)
11    to a hearing examiner.
12        (e)  The  Commission shall have no power to authorize the
13    capitalization of the  right  to  be  a  corporation,  or  to
14    authorize  the  capitalization  of any franchise, license, or
15    permit whatsoever or the right to own, operate or  enjoy  any
16    such  franchise,  license, or permit, in excess of the amount
17    (exclusive of any tax or annual charge) actually paid to  the
18    State   or   to   a  political  subdivision  thereof  as  the
19    consideration for  the  grant  of  such  franchise,  license,
20    permit  or right; nor shall any contract for consolidation or
21    lease be capitalized, nor shall any public utility  hereafter
22    issue  any  bonds,  notes  or other evidences of indebtedness
23    against or as a lien, upon any contract for consolidation  or
24    merger.
25        (f)  The  provisions  of  this Section shall not apply to
26    public utilities which are not corporations duly incorporated
27    under the laws of this State to  the  extent  that  any  such
28    public  utility  may  issue  stock,  bonds,  notes  or  other
29    evidences   of   indebtedness   not  directly  or  indirectly
30    constituting or creating a lien or charge  on,  or  right  to
31    profits  from,  any  property  used  or  useful  in rendering
32    service within this State. Nothing  in  this  Section  or  in
33    Section  6-104  of  this  Act shall be construed to require a
34    common  carrier  by  railroad  subject  to  Part  I  of   the
                            -138-         SRS90HB0362JJsaam02
 1    Interstate  Commerce  Act,  being  part of an Act of the 49th
 2    Congress of the United States entitled "An  Act  to  Regulate
 3    Commerce",   as   amended,  to  secure  from  the  Commission
 4    authority to issue or  execute  or  deliver  any  conditional
 5    sales contract or similar contract or instrument reserving or
 6    retaining title in the seller for all or part of the purchase
 7    price  of  equipment or property used or to be used for or in
 8    connection with the transportation of persons or property.
 9    (Source: P.A. 84-617.)
10        (220 ILCS 5/7-101) (from Ch. 111 2/3, par. 7-101)
11        Sec. 7-101. Transactions with affiliated interests.
12        (1)  The Commission shall have jurisdiction over  holders
13    of the voting capital stock of all public utilities under the
14    jurisdiction  of  the  Commission  to  such  extent as may be
15    necessary to enable the Commission to require the  disclosure
16    of the identity in respective interests of every owner of any
17    substantial  interest in such voting capital stocks.  One per
18    centum or more is a substantial interest, within the  meaning
19    of this subdivision.
20        (2)  (i)  Except as provided in subparagraph (ii) of this
21    subsection (2), tThe Commission shall have jurisdiction  over
22    affiliated   interests   having   transactions,   other  than
23    ownership of stock and receipt  of  dividends  thereon,  with
24    public utilities under the jurisdiction of the Commission, to
25    the  extent  of  access  to  all accounts and records of such
26    affiliated interests relating to such transactions, including
27    access to accounts and records of joint or general  expenses,
28    any  portion of which may be applicable to such transactions;
29    and to the extent of authority to require such  reports  with
30    respect   to  such  transactions  to  be  submitted  by  such
31    affiliated interests, as the Commission may prescribe.
32        (ii)  The  Commission  shall   have   jurisdiction   over
33    affiliated   interests   having   transactions,   other  than
                            -139-         SRS90HB0362JJsaam02
 1    ownership of stock and receipt  of  dividends  thereon,  with
 2    electric  and  gas public utilities under the jurisdiction of
 3    the Commission, to the extent of access to all  accounts  and
 4    records   of  such  affiliated  interests  relating  to  such
 5    transactions, including access to  accounts  and  records  of
 6    joint  and  general  expenses with the electric or gas public
 7    utility any portion of which is related to such transactions;
 8    and to the extent of authority to require such  reports  with
 9    respect   to  such  transactions  to  be  submitted  by  such
10    affiliated  interests,  as  the  Commission  may   prescribe;
11    provided,  however,  that  prior to requesting such access or
12    reports from the affiliated interest,  the  Commission  shall
13    first  seek  to obtain the information that would be included
14    in such accounts, records or reports from the public utility.
15    The Commission shall not have  access  to  any  accounts  and
16    records  of,  or  require  any  reports  from,  an affiliated
17    interest that are not related  to  a  transaction,  including
18    without  limitation  a  transfer  or  exchange of tangible or
19    intangible assets, with the electric or gas  public  utility.
20    Nothing  in  this  paragraph shall limit the authority of the
21    Commission otherwise provided under this Act to  have  access
22    to  accounts  and records of, or to require reports from, the
23    electric or gas public utility  or  to  prescribe  guidelines
24    which  the  electric  or  gas  public  utility must follow in
25    allocating costs to transactions with affiliated interests.
26        For the purpose of this Section, the  phrase  "affiliated
27    interests" means:
28        (a)  Every  corporation  and  person  owning  or holding,
29    directly or indirectly, 10% or more  of  the  voting  capital
30    stock of such public utility;
31        (b)  Every   corporation  and  person  in  any  chain  of
32    successive ownership of 10% or more of voting capital stock;
33        (c)  Every corporation,  10%  or  more  of  whose  voting
34    capital  stock  is  owned by any person or corporation owning
                            -140-         SRS90HB0362JJsaam02
 1    10% or more of  the  voting  capital  stock  of  such  public
 2    utility, or by any person or corporation in any such chain of
 3    successive ownership of 10% or more of voting capital stock;
 4        (d)  Every  corporation,  10%  or  more  of  whose voting
 5    securities is owned, directly or indirectly  by  such  public
 6    utility;
 7        (e)  Every  person who is an elective officer or director
 8    of such public utility or of any corporation in any chain  of
 9    successive ownership of 10% or more of voting capital stock;
10        (f)  Every  corporation  which  has  one or more elective
11    officers or one or more directors in common with such  public
12    utility;
13        (g)  Every corporation or person which the Commission may
14    determine as a matter of fact after investigation and hearing
15    is  actually  exercising  any  substantial influence over the
16    policies and actions of such public utility even though  such
17    influence  is  not  based  upon  stock holding, stockholders,
18    directors  or  officers  to  the  extent  specified  in  this
19    Section;
20        (h)  Every  person  or  corporation  who  or  which   the
21    Commission   may   determine   as  a  matter  of  fact  after
22    investigation  and  hearing  is  actually   exercising   such
23    substantial  influence  over the policies and actions of such
24    public  utility  in  conjunction  with  one  or  more   other
25    corporations  or  persons with which or whom they are related
26    by ownership or blood relationship or by  action  in  concert
27    that  together  they  are affiliated with such public utility
28    within the meaning of this Section even though no one of them
29    alone is so affiliated.
30        No such person or corporation is  affiliated  within  the
31    meaning   of   this   Section  however,  if  such  person  or
32    corporation is otherwise subject to the jurisdiction  of  the
33    Commission   or  such  person  or  corporation  has  not  had
34    transactions or dealings other than the holding of stock  and
                            -141-         SRS90HB0362JJsaam02
 1    the  receipt  of  dividends  thereon with such public utility
 2    during the 2 year period next preceding.
 3        (3)  No management,  construction,  engineering,  supply,
 4    financial  or similar contract and no contract or arrangement
 5    for the purchase, sale, lease or exchange of any property  or
 6    for  the  furnishing  of  any  service,  property  or  thing,
 7    hereafter  made with any affiliated interest, as hereinbefore
 8    defined, shall be effective unless it has  first  been  filed
 9    with  and  consented  to  by the Commission or is exempted in
10    accordance with the provisions of this Section or of  Section
11    16-111  of  this  Act.   The  Commission  may  condition such
12    approval in such manner as it may deem necessary to safeguard
13    the public interest.  If it be found by the Commission, after
14    investigation and  a  hearing,  that  any  such  contract  or
15    arrangement is not in the public interest, the Commission may
16    disapprove  such  contract  or arrangement. Every contract or
17    arrangement not consented to or excepted by the Commission as
18    provided for in this Section is void.
19        The consent to, or exemption or waiver of consent to, any
20    contract or arrangement under this Section or Section  16-111
21    as  required  above, does not constitute approval of payments
22    thereunder for the purpose of computing expense of  operation
23    in  any  rate  proceeding.  However, the Commission shall not
24    require  a  public  utility  to  make  purchases  at   prices
25    exceeding  the  prices offered by an affiliated interest, and
26    the  Commission  shall  not  be  required  to  disapprove  or
27    disallow, solely on the ground that such payments  yield  the
28    affiliated  interest  a return or rate of return in excess of
29    that allowed the public utility, any portion of payments  for
30    purchases from an affiliated interest.
31        (4)  The Commission may by general rules applicable alike
32    to all public utilities affected thereby waive the filing and
33    necessity   for   approval   of  contracts  and  arrangements
34    described in subparagraph (3) of this Section in cases of (a)
                            -142-         SRS90HB0362JJsaam02
 1    contracts or arrangements made  in  the  ordinary  course  of
 2    business  for  the  employment  of officers or employees; (b)
 3    contracts or arrangements made  in  the  ordinary  course  of
 4    business  for  the  purchase  of services, supplies, or other
 5    personal property at prices not  exceeding  the  standard  or
 6    prevailing  market  prices,  or  at  prices  or  rates  fixed
 7    pursuant  to  law;  (c)  contracts  or arrangements where the
 8    total obligation  to  be  incurred  under  such  contract  or
 9    arrangement  thereunder  does  not  exceed  the lesser of (i)
10    $5,000,000 or (ii) 2% of the public utility's  receipts  from
11    all  tariffed  services  (as  defined  in Article XVI) in the
12    preceding calendar year  $500;  (d)  the  temporary  leasing,
13    lending  or interchanging of equipment in the ordinary course
14    of business or in case of an  emergency;  and  (e)  contracts
15    made  by  a public utility with a person or corporation whose
16    bid  is  the  most  favorable  to  the  public  utility,   as
17    ascertained by competitive bidding under such rules as may be
18    prescribed  by  the  Commission.   If the Commission, after a
19    hearing, finds that any public  utility  is  abusing  or  has
20    abused  such  general  rule and thereby is evading compliance
21    with the standard  established  herein,  the  Commission  may
22    require  such  public  utility to thereafter file and receive
23    the Commission's approval upon  all  such  transactions,  but
24    that general rule shall remain in full force and effect as to
25    all other public utilities.
26    (Source: P.A. 84-617.)
27        (220 ILCS 5/7-102) (from Ch. 111 2/3, par. 7-102)
28        Sec.  7-102.  Transactions requiring Commission approval.
29    Unless the consent and approval of the  Commission  is  first
30    obtained  or unless such approval is waived by the Commission
31    or is exempted in accordance  with  the  provisions  of  this
32    Section or of any other Section of this Act:
33        (a)  No  2  or  more  public  utilities  may  enter  into
                            -143-         SRS90HB0362JJsaam02
 1    contracts  with  each  other  that  will  enable  such public
 2    utilities to operate their lines or plants in connection with
 3    each other;
 4        (b)  No public utility may purchase,  lease,  or  in  any
 5    other  manner  acquire  control, direct or indirect, over the
 6    franchises, licenses, permits, plants, equipment, business or
 7    other property of any other public utility;
 8        (c)  No  public  utility  may  assign,  transfer,  lease,
 9    mortgage, sell (by option or otherwise), or otherwise dispose
10    of or encumber the whole  or  any  part  of  its  franchises,
11    licenses,  permits,  plant,  equipment,  business,  or  other
12    property,  but  the  consent  and  approval of the Commission
13    shall not be required for  the  sale,  lease,  assignment  or
14    transfer  (1)  by any public utility of any tangible personal
15    property which is not necessary or useful in the  performance
16    of  its  duties  to the public, or (2) by any railroad of any
17    real or tangible personal property;
18        (d)  No public  utility  may  by  any  means,  direct  or
19    indirect,  merge  or  consolidate  its  franchises, licenses,
20    permits, plants, equipment, business or other  property  with
21    that of any other public utility;
22        (e)  No  public  utility  may  purchase, acquire, take or
23    receive any stock, stock certificates, bonds, notes or  other
24    evidences of indebtedness of any other public utility;
25        (f)  No  public  utility  may  in any manner, directly or
26    indirectly, guarantee the  performance  of  any  contract  or
27    other  obligation  of  any  other person, firm or corporation
28    whatsoever;
29        (g)  No public utility may use,  appropriate,  or  divert
30    any  of  its moneys, property or other resources in or to any
31    business or enterprise which  is  not,  prior  to  such  use,
32    appropriation or diversion essentially and directly connected
33    with  or a proper and necessary department or division of the
34    business  of  such  public  utility;   provided   that   this
                            -144-         SRS90HB0362JJsaam02
 1    subsection  shall  not  be construed as modifying subsections
 2    (a) through (e) of this Section;
 3        (h)  No  public  utility  may,  directly  or  indirectly,
 4    invest, loan or advance, or permit to be invested, loaned  or
 5    advanced  any  of its moneys, property or other resources in,
 6    for, in behalf of or to any other person, firm, trust, group,
 7    association, company or corporation whatsoever,  except  that
 8    no consent or approval by the Commission is necessary for the
 9    purchase   of   stock   in  development  credit  corporations
10    organized under the Illinois Development  Credit  Corporation
11    Act,  providing  that  no such purchase may be made hereunder
12    if, as a result of such  purchase,  the  cumulative  purchase
13    price  of  all  such shares owned by the utility would exceed
14    one-fiftieth of one per cent of the utility's gross operating
15    revenue for the preceding calendar year.
16        (i)  Any public utility may present to the Commission for
17    approval options or contracts to sell or lease real property,
18    notwithstanding that the value of the property  under  option
19    may  have  changed  between  the  date  of the option and the
20    subsequent date of sale or lease. If the options or contracts
21    are approved by the Commission, subsequent sales or leases in
22    conformance with those options or contracts may  be  made  by
23    the   public  utility  without  any  further  action  by  the
24    Commission. If approval of the options or contracts is denied
25    by the Commission, the options or contracts are void and  any
26    consideration  theretofore paid to the public utility must be
27    refunded  within  30  days  following  disapproval   of   the
28    application.
29        The   proceedings  for  obtaining  the  approval  of  the
30    Commission provided for  it  in  this  Section  shall  be  as
31    follows: There shall be filed with the Commission a petition,
32    joint  or  otherwise, as the case may be, signed and verified
33    by the president, any vice president,  secretary,  treasurer,
34    comptroller,  general  manager,  or  chief  engineer  of  the
                            -145-         SRS90HB0362JJsaam02
 1    respective  companies,  or  by  the person or company, as the
 2    case may be, clearly setting forth the  object  and  purposes
 3    desired, and setting forth the full and complete terms of the
 4    proposed  assignment,  transfer,  lease,  mortgage, purchase,
 5    sale, merger, consolidation, contract or  other  transaction,
 6    as  the  case  may  be. Upon the filing of such petition, the
 7    Commission shall, if it deems necessary, fix a time and place
 8    for the hearing thereon. After such hearing, or  in  case  no
 9    hearing is required, if the Commission is satisfied that such
10    petition  should  reasonably  be granted, and that the public
11    will be convenienced thereby, the Commission shall make  such
12    order  in  the  premises  as  it  may  deem proper and as the
13    circumstances may require, attaching such  conditions  as  it
14    may  deem  proper, and thereupon it shall be lawful to do the
15    things provided for  in  such  order.  The  Commission  shall
16    impose  such  conditions  as  will  protect  the  interest of
17    minority and preferred stockholders.
18        The  Commission  shall  have  power  by   general   rules
19    applicable alike to all public utilities, other than electric
20    and  gas  public  utilities,  affected  thereby  to waive the
21    filing and necessity for approval of the following: (a) sales
22    of property  involving  a  consideration  of  not  more  than
23    $300,000  for  utilities  with  gross  revenues  in excess of
24    $50,000,000 annually and a consideration  of  not  more  than
25    $100,000 for all other utilities;  (b)  leases, easements and
26    licenses involving a consideration or rental of not more than
27    $30,000  per year for utilities with gross revenues in excess
28    of $50,000,000 annually and a consideration or rental of  not
29    more  than  $10,000  per  year  for  all other utilities; (c)
30    leases of office building space not required  by  the  public
31    utility in rendering service to the public; (d) the temporary
32    leasing,   lending  or  interchanging  of  equipment  in  the
33    ordinary course of business or in case of an  emergency;  and
34    (e)  purchase-money  mortgages  given  by a public utility in
                            -146-         SRS90HB0362JJsaam02
 1    connection with the purchase of  tangible  personal  property
 2    where  the  total  obligation  to be secured shall be payable
 3    within a period not  exceeding  one  year.  However,  if  the
 4    Commission, after a hearing, finds that any public utility to
 5    which  such  rule is applicable is abusing or has abused such
 6    general rule and  thereby  is  evading  compliance  with  the
 7    standard  established herein, the Commission shall have power
 8    to require such public utility to thereafter file and receive
 9    the Commission's  approval  upon  all  such  transactions  as
10    described in this Section, but such general rule shall remain
11    in  full force and effect as to all other public utilities to
12    which such rule is applicable.
13        The filing of,  and  the  consent  and  approval  of  the
14    Commission  for,  any  assignment, transfer, lease, mortgage,
15    purchase, sale,  merger,  consolidation,  contract  or  other
16    transaction  by  an electric or gas public utility with gross
17    revenues  in  all  jurisdictions  of  $250,000,000  or   more
18    annually involving a sale price or annual consideration in an
19    amount  of  $5,000,000  or  less  shall not be required.  The
20    Commission shall also have the authority, on petition  by  an
21    electric  or  gas  public  utility with gross revenues in all
22    jurisdictions of $250,000,000 or more annually, to  establish
23    by  order  higher  thresholds  than  the  foregoing  for  the
24    requirement  of  approval  of  transactions by the Commission
25    pursuant to this Section  for  the  electric  or  gas  public
26    utility, but no greater than 1% of the electric or gas public
27    utility's average total gross utility plant in service in the
28    case  of sale, assignment or acquisition of property, or 2.5%
29    of the electric or gas public utility's total revenue in  the
30    case  of  other  sales price or annual consideration, in each
31    case based on the preceding calendar year, and subject to the
32    power of the Commission, after notice and hearing, to further
33    revise those thresholds at a later date.  In addition to  the
34    foregoing,  the  Commission shall have power by general rules
                            -147-         SRS90HB0362JJsaam02
 1    applicable alike to all electric  and  gas  public  utilities
 2    affected  thereby  to  waive  the  filing  and  necessity for
 3    approval of the following: (a) sales of property involving  a
 4    consideration  of  $100,000  or  less  for  electric  and gas
 5    utilities with gross revenues in all  jurisdictions  of  less
 6    than   $250,000,000   annually;  (b)  leases,  easements  and
 7    licenses involving a consideration or rental of not more than
 8    $10,000 per year for electric and gas  utilities  with  gross
 9    revenues  in  all  jurisdictions  of  less  than $250,000,000
10    annually; (c) leases of office building space not required by
11    the electric or gas public utility in  rendering  service  to
12    the   public;   (d)   the   temporary   leasing,  lending  or
13    interchanging of equipment in the ordinary course of business
14    or in the  case  of  an  emergency;  and  (e)  purchase-money
15    mortgages  given  by  an  electric  or  gas public utility in
16    connection with the purchase of  tangible  personal  property
17    where  the  total  obligation  to be secured shall be payable
18    within a period of  one  year  or  less.    However,  if  the
19    Commission,  after  a hearing, finds that any electric or gas
20    public utility is abusing or has abused such general rule and
21    thereby is evading compliance with the  standard  established
22    herein,  the  Commission  shall  have  power  to require such
23    electric or gas public utility to thereafter file and receive
24    the Commission's  approval  upon  all  such  transactions  as
25    described  in  this  Section and not exempted pursuant to the
26    first sentence of this paragraph  or  to  subsection  (g)  of
27    Section  16-111  of  this  Act,  but  such general rule shall
28    remain in full force and effect as to all other electric  and
29    gas public utilities.
30        Every  assignment,  transfer,  lease,  mortgage,  sale or
31    other disposition or encumbrance of the whole or any part  of
32    the franchises, licenses, permits, plant, equipment, business
33    or  other  property  of  any public utility, or any merger or
34    consolidation thereof, and every contract, purchase of stock,
                            -148-         SRS90HB0362JJsaam02
 1    or other transaction referred to  in  this  Section  and  not
 2    exempted in accordance with the provisions of the immediately
 3    preceding  paragraph  of this Section, made otherwise than in
 4    accordance with an order of the  Commission  authorizing  the
 5    same,  except as provided in this Section, shall be void. The
 6    provisions  of  this  Section  shall   not   apply   to   any
 7    transactions  by or with a political subdivision or municipal
 8    corporation of this State.
 9        The provisions of  this  Section  do  not  apply  to  the
10    purchase  or  sale  of  emission allowances created under and
11    defined in Title IV of the federal Clean Air  Act  Amendments
12    of 1990 (P.L. 101-549), as amended.
13    (Source: P.A. 88-604, eff. 9-1-94; 89-99, eff. 7-7-95.)
14        (220 ILCS 5/7-204) (from Ch. 111 2/3, par. 7-204)
15        Sec.  7-204. Reorganization; defined; Commission approval
16    therefore.
17        (a)  For purposes of this Section, "reorganization" means
18    any transaction which, regardless of the means by which it is
19    accomplished, results in a  change  in  the  ownership  of  a
20    majority  of  the  voting capital stock of an Illinois public
21    utility; or the ownership or control of any entity which owns
22    or controls a majority of  the  voting  capital  stock  of  a
23    public  utility;  or by which 2 public utilities merge, or by
24    which a public utility  acquires  substantially  all  of  the
25    assets  of  another  public  utility; provided, however, that
26    "reorganization" as used in this Section shall not include  a
27    mortgage  or pledge transaction entered into to secure a bona
28    fide borrowing by the party granting the mortgage  or  making
29    the pledge.
30        In  addition  to  the  foregoing,  "reorganization" shall
31    include for purposes of this Section any  transaction  which,
32    regardless of the means by which it its is accomplished, will
33    have the effect of terminating the affiliated interest status
                            -149-         SRS90HB0362JJsaam02
 1    of  any  entity as defined in paragraphs (a), (b), (c) or (d)
 2    of subsection (2) of Section 7-101 of  this  Act  where  such
 3    entity  had  transactions  with the public utility, in the 12
 4    twelve calendar months  immediately  preceding  the  date  of
 5    termination  of  such  affiliated  interest status subject to
 6    subsection (3) of Section 7-101 of  this  Act  with  a  value
 7    greater  than  15%  of the public utility's revenues for that
 8    same  12-month  twelve-month   period.    If   the   proposed
 9    transaction   would   have  the  effect  of  terminating  the
10    affiliated interest status of more than one  Illinois  public
11    utility,  the  utility  with  the  greatest  revenues for the
12    12-month twelve-month  period  shall  be  used  to  determine
13    whether such proposed transaction is a reorganization for the
14    purposes   of   this  Section.   The  Commission  shall  have
15    jurisdiction over any reorganization as defined herein.
16        (b)  No reorganization shall  take  place  without  prior
17    Commission  approval.    The Commission shall not approve any
18    proposed reorganization if the Commission finds, after notice
19    and hearing, that the reorganization  will  adversely  affect
20    the  utility's  ability to perform its duties under this Act.
21    In reviewing any proposed reorganization, the Commission must
22    find that:
23             (1) (a)  the  proposed   reorganization   will   not
24        diminish  the  utility's  ability  to  provide  adequate,
25        reliable,  efficient,  safe and least-cost public utility
26        service;
27             (2) (b)  the proposed reorganization will not result
28        in   the   unjustified   subsidization   of   non-utility
29        activities by the utility or its customers;
30             (3) (c)  costs  and  facilities   are   fairly   and
31        reasonably  allocated  between  utility  and  non-utility
32        activities  in  such  a  manner  that  the Commission may
33        identify those costs and facilities  which  are  properly
34        included by the utility for ratemaking purposes;
                            -150-         SRS90HB0362JJsaam02
 1             (4) (d)  the   proposed   reorganization   will  not
 2        significantly  impair  the  utility's  ability  to  raise
 3        necessary capital on reasonable terms or  to  maintain  a
 4        reasonable capital structure;
 5             (5) (e)  the  utility  will  remain  subject  to all
 6        applicable  laws,  regulations,  rules,   decisions   and
 7        policies  governing  the  regulation  of  Illinois public
 8        utilities.
 9             (6)  the proposed reorganization is  not  likely  to
10        have a significant adverse effect on competition in those
11        markets over which the Commission has jurisdiction;
12             (7)  the  proposed  reorganization  is not likely to
13        result in any adverse rate impacts on retail customers.
14        (c)  The Commission shall not  approve  a  reorganization
15    without   ruling  on:  (i)  the  allocation  of  any  savings
16    resulting from the proposed reorganization; and (ii)  whether
17    the companies should be allowed to recover any costs incurred
18    in  accomplishing the proposed reorganization and, if so, the
19    amount of costs eligible for recovery and how the costs  will
20    be allocated.
21        (d)  The  Commission  shall  issue its Order approving or
22    denying the proposed reorganization within  11  months  after
23    the  application  is  filed.  The  Commission  may extend the
24    deadline for a period equivalent to the length of  any  delay
25    which  the  Commission  finds  to  have  been  caused  by the
26    Applicant's failure to provide data or information  requested
27    by   the  Commission  or  that  the  Commission  ordered  the
28    Applicant to provide to the parties. The Commission may  also
29    extend  the  deadline by an additional period not to exceed 3
30    months to consider amendments to the Applicant's  filing,  or
31    to consider reasonably unforeseeable changes in circumstances
32    subsequent to the Applicant's initial filing.
33        (e)  Subsections  (c)  and  (d) and subparagraphs (6) and
34    (7) of subsection (b) of this Section  shall  apply  only  to
                            -151-         SRS90HB0362JJsaam02
 1    merger applications submitted to the Commission subsequent to
 2    April  23,  1997.  No  other  Commission  approvals  shall be
 3    required for mergers that are subject to this Section.
 4        (f)  In approving any proposed reorganization pursuant to
 5    this Section the Commission may impose such terms, conditions
 6    or requirements as, in its judgment, are necessary to protect
 7    the interests of the public utility and its customers.
 8    (Source: P.A. 84-617; 84-1025.)
 9        (220 ILCS 5/7-206) (from Ch. 111 2/3, par. 7-206)
10        Sec. 7-206. Separate accounts for nonpublic  business  of
11    public  utility.    The  Commission  may require every public
12    utility engaged directly or indirectly in any  other  than  a
13    public   utility   business,  as  defined  by  law,  to  keep
14    separately in like manner and form the accounts of  all  such
15    other  business,  and  the  Commission  may  provide  for the
16    examination and inspection of the books, accounts, papers and
17    records of such other business, in so far as may be necessary
18    to enforce any provisions of this Act. The  Commission  shall
19    have   the   power   to  inquire  as  to  and  prescribe  the
20    apportionment of capitalization, earnings, debts and expenses
21    fairly and justly to be awarded to or borne by the ownership,
22    operation, management or control of such  public  utility  as
23    distinguished  from  such  other business. Provided, however,
24    that an electric or gas public utility shall not be  required
25    to  maintain  the accounts of any non-public utility business
26    in the same manner and form as the  electric  or  gas  public
27    utility  is  required  to  keep  the  accounts  of its public
28    utility business unless expressly ordered by the Commission.
29    (Source: P.A. 84-617.)
30        (220 ILCS 5/8-406) (from Ch. 111 2/3, par. 8-406)
31        Sec.  8-406.   Certificate  of  public  convenience   and
32    necessity.
                            -152-         SRS90HB0362JJsaam02
 1        (a)  No  public  utility  not  owning any city or village
 2    franchise nor engaged in performing any public service or  in
 3    furnishing  any  product or commodity within this State as of
 4    July 1, 1921 and  not  possessing  a  certificate  of  public
 5    convenience   and   necessity   from  the  Illinois  Commerce
 6    Commission, the State Public  Utilities   Commission  or  the
 7    Public  Utilities Commission, at the time this amendatory Act
 8    of 1985 goes into effect, shall transact any business in this
 9    State until it shall have obtained  a  certificate  from  the
10    Commission  that public convenience and necessity require the
11    transaction of such business.
12        (b)  No public utility shall begin  the  construction  of
13    any  new  plant, equipment, property or facility which is not
14    in substitution of any existing plant, equipment, property or
15    facility  or  any  extension  or  alteration  thereof  or  in
16    addition thereto, and which in the case of gas  and  electric
17    utilities  may  affect  the energy plan of the utility unless
18    and until it  shall  have  obtained  from  the  Commission  a
19    certificate  that  public  convenience  and necessity require
20    such construction. Whenever after a  hearing  the  Commission
21    determines  that  any  new construction or the transaction of
22    any business by a public  utility  will  promote  the  public
23    convenience and is necessary thereto, it shall have the power
24    to  issue  certificates  of public convenience and necessity.
25    The Commission shall  determine  that  proposed  construction
26    will promote the public convenience and necessity only if the
27    utility  demonstrates:  (1) that the proposed construction is
28    necessary  to  provide  adequate,  reliable,  and   efficient
29    service  to  its  customers  and  is  the least-cost means of
30    satisfying the service  needs  of  its  customers;  (2)  with
31    respect  to  gas  and  electric  utilities, that the proposed
32    construction is consistent with the most recent  energy  plan
33    adopted  by  the Commission for the utility and the State, as
34    updated; (2) (3) that the utility is capable  of  efficiently
                            -153-         SRS90HB0362JJsaam02
 1    managing  and  supervising  the  construction process and has
 2    taken sufficient action  to  ensure  adequate  and  efficient
 3    construction  and  supervision  thereof; and (3) (4) that the
 4    utility is capable of  financing  the  proposed  construction
 5    without  significant  adverse  financial consequences for the
 6    utility or its customers. If the Commission  finds  that  the
 7    public  convenience  and  necessity  requires  a new electric
 8    generating  facility  to  be  added  by  the   utility,   the
 9    Commission   shall  evaluate  the  proposed  construction  in
10    comparison with the merits of  a  facility  designed  to  use
11    Illinois coal in an environmentally acceptable way, and shall
12    consider  the  economic  impact  on  employment  directly  or
13    indirectly related to the production of coal in Illinois over
14    the   entire   period   of  time  affected  by  the  proposed
15    construction or its alternatives.
16        (c)  After the effective date of this amendatory  Act  of
17    1987, no construction shall commence on any new nuclear power
18    plant  to be located within this State, and no certificate of
19    public convenience and necessity or other authorization shall
20    be issued therefor by the Commission, until the  Director  of
21    the  Illinois  Environmental Protection Agency finds that the
22    United States Government, through its authorized agency,  has
23    identified  and  approved  a demonstrable technology or means
24    for the disposal of high level nuclear waste, or  until  such
25    construction  has  been  specifically  approved  by a statute
26    enacted by the General Assembly.
27        As used in this Section, "high level nuclear waste" means
28    those aqueous wastes resulting  from  the  operation  of  the
29    first  cycle  of  the solvent extraction system or equivalent
30    and the concentrated  wastes  of  the  subsequent  extraction
31    cycles   or   equivalent   in  a  facility  for  reprocessing
32    irradiated  reactor  fuel  and  shall  include   spent   fuel
33    assemblies prior to fuel reprocessing.
34        (d)  In  making  its  determination, the Commission shall
                            -154-         SRS90HB0362JJsaam02
 1    attach primary weight to the cost  or  cost  savings  to  the
 2    customers  of the utility. The Commission may consider any or
 3    all factors which will  or  may  affect  such  cost  or  cost
 4    savings.
 5        (e)  The  Commission  may  issue  a temporary certificate
 6    which shall remain in force not to exceed one year  in  cases
 7    of emergency, to assure maintenance of adequate service or to
 8    serve   particular  customers,  without  notice  or  hearing,
 9    pending  the  determination   of   an   application   for   a
10    certificate,   and   may   by   regulation  exempt  from  the
11    requirements of this Section temporary acts or operations for
12    which the issuance of a certificate will not be  required  in
13    the public interest.
14        A  public utility shall not be required to obtain but may
15    apply for and obtain a certificate of public convenience  and
16    necessity pursuant to this Section with respect to any matter
17    as to which it has received the authorization or order of the
18    Commission  under  the  Electric  Supplier  Act, and any such
19    authorization or  order  granted  a  public  utility  by  the
20    Commission  under  that Act shall as between public utilities
21    be deemed to be, and shall have except as  provided  in  that
22    Act  the  same  force  and effect as, a certificate of public
23    convenience and necessity issued pursuant to this Section.
24        No electric cooperative shall be made or shall  become  a
25    party  to  or  shall  be entitled to be heard or to otherwise
26    appear or participate in any proceeding initiated under  this
27    Section  for authorization of power plant construction and as
28    to matters as to  which  a  remedy  is  available  under  The
29    Electric Supplier Act.
30        (f)  Such  certificates may be altered or modified by the
31    Commission, upon its own motion or upon  application  by  the
32    person  or  corporation  affected.  Unless exercised within a
33    period of 2 years from the grant thereof authority  conferred
34    by  a  certificate of convenience and necessity issued by the
                            -155-         SRS90HB0362JJsaam02
 1    Commission shall be null and void.
 2        No certificate of public convenience and necessity  shall
 3    be   construed   as  granting  a  monopoly  or  an  exclusive
 4    privilege, immunity or franchise.
 5    (Source: P.A. 85-377.)
 6        (220 ILCS 5/8-503) (from Ch. 111 2/3, par. 8-503)
 7        Sec. 8-503. Whenever the  Commission,  after  a  hearing,
 8    shall   find   that   additions,   extensions,   repairs   or
 9    improvements   to,   or   changes  in,  the  existing  plant,
10    equipment, apparatus, facilities or other  physical  property
11    of  any  public  utility  or  of  any  2  two  or more public
12    utilities are necessary and ought reasonably to  be  made  or
13    that  a  new  structure or structures is or are necessary and
14    should be erected, to promote the security or convenience  of
15    its  employees  or  the public, or in any other way to secure
16    adequate service or facilities, the Commission shall make and
17    serve an order authorizing or directing that such  additions,
18    extensions, repairs, improvements or changes be made, or such
19    structure  or  structures  be erected at the location, in the
20    manner and within the time specified in said order; provided,
21    however, that the Commission shall have no authority to order
22    the construction,  addition  or  extension  of  any  electric
23    generating   plant  unless  the  public  utility  requests  a
24    certificate for the construction of  the  plant  pursuant  to
25    Section  8-406  and  in  conjunction  with  such request also
26    requests the entry of an order under  this  Section.  If  any
27    additions,  extensions,  repairs, improvements or changes, or
28    any new structure or structures,  which  the  Commission  has
29    authorized  or ordered to be erected, require joint action by
30    2 two or more public utilities, the Commission  shall  notify
31    the  said  public  utilities that such additions, extensions,
32    repairs,  improvements  or  changes  or  new   structure   or
33    structures  have been authorized or ordered and that the same
                            -156-         SRS90HB0362JJsaam02
 1    shall be made at the joint cost  whereupon  the  said  public
 2    utilities  shall  have such reasonable time as the Commission
 3    may grant within which to agree  upon  the  apportionment  or
 4    division  of  cost  of  such  additions, extensions, repairs,
 5    improvements or changes or new structure or structures, which
 6    each shall bear. If at  the  expiration  of  such  time  such
 7    public  utilities  shall  fail  to file with the Commission a
 8    statement that an agreement has been made for a  division  or
 9    apportionment  of  the  cost  or  expense  of such additions,
10    extensions,  repairs,  improvements  or   changes,   or   new
11    structure or structures, the Commission shall have authority,
12    after further hearing, to make an order fixing the proportion
13    of  such  cost  or expense to be borne by each public utility
14    and the manner in which the same shall be paid or secured.
15        Nothing in this Act shall prevent  the  Commission,  upon
16    its  own  motion  or  upon  petition,  from ordering, after a
17    hearing,   the   extension,   construction,   connection   or
18    interconnection of plant, equipment, pipe,  line,  facilities
19    or  other  physical  property of a public utility in whatever
20    configuration the Commission finds necessary to  ensure  that
21    natural  gas  is  made available to consumers at no increased
22    cost to the customers of the utility supplying the gas.
23        Whenever the Commission finds, after a hearing, that  the
24    public  convenience  or necessity requires it, the Commission
25    may order public utilities subject  to  its  jurisdiction  to
26    work   jointly   (1)   for  the  purpose  of  purchasing  and
27    distributing natural gas  or  gas  substitutes,  provided  it
28    shall  not  increase  the cost of gas to the customers of the
29    participating utilities, or  (2)  for  any  other  reasonable
30    purpose.
31    (Source: P.A. 84-617.)
32        (220 ILCS 5/8-510) (from Ch. 111 2/3, par. 8-510)
33        Sec.  8-510. Land surveys. For the purpose of making land
                            -157-         SRS90HB0362JJsaam02
 1    surveys,  any  public  utility  that  has  been   granted   a
 2    certificate  of  public  convenience  and  necessity  by,  or
 3    received  an  order under Section 8-503 of this Act from, the
 4    Commission may, 30 days after providing written notice to the
 5    owner thereof by registered mail, enter upon the property  of
 6    any  owner  who has refused permission for entrance upon that
 7    property, but subject to responsibility for all damages which
 8    may be inflicted thereby.
 9    (Source: P.A. 84-617.)
10        (220 ILCS 5/9-201.5)
11        Sec.  9-201.5.  Decommissioning  nuclear  power   plants;
12    rates.
13        (a)  The  Commission may after hearing, in a rate case or
14    otherwise, authorize the institution of  rate  provisions  or
15    tariffs  that  increase  or  decrease charges to customers to
16    reflect changes  in,  or  additional  or  reduced  costs  of,
17    decommissioning  nuclear power plants, including accruals for
18    estimates of those costs,  irrespective  of  any  changes  in
19    other  costs  or  revenues;  provided  the revenues collected
20    under such  rates  or  tariffs  are  used  to  recover  costs
21    associated  with contributions to appropriate decommissioning
22    trust funds or to reduce the amounts to be charged under such
23    rates or tariffs in the future. These provisions  or  tariffs
24    shall hereinafter be referred to as "decommissioning rates".
25        (b)  A    public   utility   that   does   not   have   a
26    decommissioning rate in effect on the effective date of  this
27    amendatory  Act  of 1994 may not place a decommissioning rate
28    in effect before January 1, 1995. Changes in charges under  a
29    decommissioning  rate  shall not be subject to the notice and
30    filing requirements of subsection (a)  of  Section  9-201  of
31    this  Act,  but a decommissioning rate of a utility that does
32    not have such a rate in effect before the effective  date  of
33    this amendatory Act of 1994 shall provide that no increase in
                            -158-         SRS90HB0362JJsaam02
 1    charges  under  that rate may take effect until 60 days after
 2    the utility provides the proposed  increased  charge  to  the
 3    Commission  for  review.  The  Commission  may require that a
 4    decommissioning  rate  contain  provisions  for   reconciling
 5    amounts   collected  under  the  rate  with  both  reasonably
 6    projected costs and actual costs prudently incurred. As  used
 7    in this Section, "decommissioning costs" and "decommissioning
 8    trust  fund"  have  the same meaning as in Section 8-508.1 of
 9    this Act.
10        (c)  Nothing contained in this  amendatory  Act  of  1994
11    shall  affect  any  determination  of  the  authority  of the
12    Commission before the effective date of this  amendatory  Act
13    of  1994.  Nothing  contained  in this amendatory Act of 1994
14    shall be used in any determination of the  authority  of  the
15    Commission after the effective date of this amendatory Act of
16    1994, except with respect to decommissioning rates.
17        (d)  A  decommissioning rate authorized by the Commission
18    under this  Section  and  the  decommissioning  cost  studies
19    underlying  the  rate shall be subject to hearing and review,
20    in a rate case or otherwise,  not  less  than  once  every  6
21    years,  and the decommissioning rate shall be discontinued by
22    the Commission unless specifically approved for  continuation
23    by the Commission after the hearing.
24    (Source: P.A. 88-653, eff. 1-1-95.)
25        (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220)
26        Sec. 9-220. Rate changes based on changes in fuel costs.
27        (a)  Notwithstanding the provisions of Section 9-201, the
28    Commission  may  authorize  the increase or decrease of rates
29    and charges based upon changes in the cost of  fuel  used  in
30    the  generation  or  production of electric power, changes in
31    the cost of purchased  power,  or  changes  in  the  cost  of
32    purchased  gas  through  the  application  of fuel adjustment
33    clauses or purchased gas adjustment clauses.  The  Commission
                            -159-         SRS90HB0362JJsaam02
 1    may  also  authorize  the  increase  or decrease of rates and
 2    charges based upon expenditures or  revenues  resulting  from
 3    the purchase or sale of emission allowances created under the
 4    federal  Clean  Air  Act  Amendments  of  1990, as defined in
 5    Section 8-402.1, through such fuel adjustment clauses,  as  a
 6    cost  of  fuel.   For the purposes of this paragraph, cost of
 7    fuel used in the generation or production of  electric  power
 8    shall  include the amount of any fees paid by the utility for
 9    the  implementation  and  operation  of  a  process  for  the
10    desulfurization of the flue gas when burning high sulfur coal
11    at any location within the State of Illinois irrespective  of
12    the  attainment  status  designation of such location, except
13    for any fees or costs related to a service contract which  is
14    part  of  a  utility's Clean Air Act compliance plan approved
15    pursuant to Section 8-402.1, to the extent that  recovery  of
16    comparable costs would not be permitted under this Section if
17    incurred  directly  by  a utility owning and operating such a
18    facility; but shall not include transportation costs of  coal
19    (i)  except  to the extent that for contracts entered into on
20    and after the effective date of this amendatory Act of  1997,
21    the   cost  of  the  coal,  including  transportation  costs,
22    constitutes the lowest cost for adequate  and  reliable  fuel
23    supply   reasonably   available  to  the  public  utility  in
24    comparison to the cost, including  transportation  costs,  of
25    other adequate and reliable sources of fuel supply reasonably
26    available  to the public utility, or (ii) except as otherwise
27    provided in the next 3 sentences of  this  paragraph.    Such
28    costs  of  fuel  shall, when requested by a utility or at the
29    conclusion  of  the  utility's  next  general  electric  rate
30    proceeding,   whichever   shall    first    occur,    include
31    transportation  costs  of  coal purchased under existing coal
32    purchase contracts.  For purposes of this paragraph "existing
33    coal purchase contracts" means contracts for the purchase  of
34    coal  in  effect on the effective date of this amendatory Act
                            -160-         SRS90HB0362JJsaam02
 1    of 1991, as such contracts may  thereafter  be  amended,  but
 2    only  to the extent that any such amendment does not increase
 3    the aggregate quantity of coal to  be  purchased  under  such
 4    contract.  Nothing herein shall authorize an electric utility
 5    to recover through its fuel adjustment clause any amounts  of
 6    transportation  costs  of  coal  that  were  included  in the
 7    revenue requirement used to set base rates in its most recent
 8    general rate proceeding. Cost shall be based  upon  uniformly
 9    applied accounting principles. Annually, the Commission shall
10    initiate  public  hearings  to  determine whether the clauses
11    reflect  actual  costs  of  fuel,   gas,   power,   or   coal
12    transportation  purchased to determine whether such purchases
13    were prudent, and to reconcile any amounts collected with the
14    actual costs of fuel,  power,  gas,  or  coal  transportation
15    prudently  purchased.  In each such proceeding, the burden of
16    proof shall be upon the utility  to  establish  the  prudence
17    prudency   of   its   cost  of  fuel,  power,  gas,  or  coal
18    transportation purchases  and  costs.  The  Commission  shall
19    issue  its  final order in each such annual proceeding for an
20    electric utility by  December  31  of  the  year  immediately
21    following   the   year  to  which  the  proceeding  pertains,
22    provided, that the Commission shall  issue  its  final  order
23    with respect to such annual proceeding for the years 1996 and
24    earlier by December 31, 1998.
25        (b)  A  public  utility providing electric service, other
26    than a public utility described in subsections (e) or (f)  of
27    this Section, may at any time during the mandatory transition
28    period  file  with the Commission proposed tariff sheets that
29    eliminate the public utility's  fuel  adjustment  clause  and
30    adjust  the  public utility's base rate tariffs by the amount
31    necessary for the base fuel component of the  base  rates  to
32    recover  the  public  utility's average fuel and power supply
33    costs per kilowatt-hour for the 2 most recent years for which
34    the Commission has issued final orders in annual  proceedings
                            -161-         SRS90HB0362JJsaam02
 1    pursuant  to subsection (a), where the average fuel and power
 2    supply costs per kilowatt-hour shall be calculated as the sum
 3    of the public utility's prudent and allowable fuel and  power
 4    supply  costs as found by the Commission in the 2 proceedings
 5    divided  by  the  public  utility's   actual   jurisdictional
 6    kilowatt-hour  sales  for those 2 years.  Notwithstanding any
 7    contrary or inconsistent provisions in Section 9-201 of  this
 8    Act,  in  subsection  (a)  of this Section or in any rules or
 9    regulations  promulgated  by  the  Commission   pursuant   to
10    subsection  (g)  of this Section, the Commission shall review
11    and shall by order  approve,  or  approve  as  modified,  the
12    proposed  tariff  sheets within 60 days after the date of the
13    public utility's  filing.   The  Commission  may  modify  the
14    public  utility's  proposed  tariff sheets only to the extent
15    the Commission finds necessary to achieve conformance to  the
16    requirements  of  this  subsection  (b).   During the 5 years
17    following the date of the  Commission's  order,  but  in  any
18    event no earlier than January 1, 2005, a public utility whose
19    fuel  adjustment  clause has been eliminated pursuant to this
20    subsection shall not file proposed tariff sheets seeking,  or
21    otherwise  petition  the  Commission  for, reinstatement of a
22    fuel adjustment clause.
23        (c)  Notwithstanding   any   contrary   or   inconsistent
24    provisions in Section 9-201 of this Act, in subsection (a) of
25    this Section or in any rules or  regulations  promulgated  by
26    the  Commission pursuant to subsection (g) of this Section, a
27    public utility  providing  electric  service,  other  than  a
28    public  utility  described  in  subsection (e) or (f) of this
29    Section, may at any  time  during  the  mandatory  transition
30    period  file  with the Commission proposed tariff sheets that
31    establish the rate per kilowatt-hour to be  applied  pursuant
32    to the public utility's fuel adjustment clause at the average
33    value  for such rate during the preceding 24 months, provided
34    that such average rate results  in  a  credit  to  customers'
                            -162-         SRS90HB0362JJsaam02
 1    bills,  without  making any revisions to the public utility's
 2    base  rate  tariffs.   The  proposed  tariff   sheets   shall
 3    establish the fuel adjustment rate for a specific time period
 4    of  at least 3 years but not more than 5 years, provided that
 5    the terms and conditions for any reinstatement earlier than 5
 6    years shall be set forth in the proposed  tariff  sheets  and
 7    subject  to  modification or approval by the Commission.  The
 8    Commission shall  review  and  shall  by  order  approve  the
 9    proposed  tariff  sheets if it finds that the requirements of
10    this subsection are met.  The Commission  shall  not  conduct
11    the  annual  hearings  specified  in  the last 3 sentences of
12    subsection (a) of this Section for the utility for the period
13    that the factor established pursuant to this subsection is in
14    effect.
15        (d)  A public utility providing electric  service,  or  a
16    public  utility  providing  gas  service  may  file  with the
17    Commission proposed tariff sheets that eliminate  the  public
18    utility's  fuel or purchased gas adjustment clause and adjust
19    the  public  utility's  base  rate  tariffs  to  provide  for
20    recovery of power supply costs or gas supply costs that would
21    have been recovered through such clause; provided,  that  the
22    provisions of this subsection (d) shall not be available to a
23    public  utility  described  in subsections (e) or (f) of this
24    Section   to   eliminate   its   fuel   adjustment    clause.
25    Notwithstanding  any  contrary  or inconsistent provisions in
26    Section 9-201 of this Act, in subsection (a) of this Section,
27    or in any rules or regulations promulgated by the  Commission
28    pursuant  to  subsection  (g) of this Section, the Commission
29    shall review and  shall  by  order  approve,  or  approve  as
30    modified  in  the  Commission's  order,  the  proposed tariff
31    sheets within 240 days after the date of the public utility's
32    filing.  The  Commission's  order  shall  approve  rates  and
33    charges  that  the  Commission,  based  on information in the
34    public utility's filing or on the record if a hearing is held
                            -163-         SRS90HB0362JJsaam02
 1    by the Commission, finds will recover the reasonable, prudent
 2    and necessary jurisdictional power supply costs or gas supply
 3    costs incurred or to be incurred by the public utility during
 4    a 12 month period found by the Commission to  be  appropriate
 5    for  these  purposes,  provided,  that  such  period shall be
 6    either (i) a 12 month historical period occurring during  the
 7    15  months ending on the date of the public utility's filing,
 8    or (ii) a 12 month future period  ending  no  later  than  15
 9    months  following  the  date  of the public utility's filing.
10    The public utility  shall  include  with  its  tariff  filing
11    information  showing both (1) its actual jurisdictional power
12    supply costs or gas supply costs for a  12  month  historical
13    period   conforming  to  (i)  above  and  (2)  its  projected
14    jurisdictional power supply costs or gas supply costs  for  a
15    future  12  month  period  conforming  to  (ii) above. If the
16    Commission's  order  requires  modifications  in  the  tariff
17    sheets filed by the public utility, the public utility  shall
18    have  7  days  following  the date of the order to notify the
19    Commission whether the  public  utility  will  implement  the
20    modified  tariffs  or elect to continue its fuel or purchased
21    gas adjustment clause in force as though no  order  had  been
22    entered.   The  Commission's  order  shall  provide  for  any
23    reconciliation  of power supply costs or gas supply costs, as
24    the case may be, and associated  revenues  through  the  date
25    that  the  public  utility's fuel or purchased gas adjustment
26    clause is eliminated.  During the 5 years following the  date
27    of  the  Commission's  order,  a public utility whose fuel or
28    purchased gas adjustment clause has been eliminated  pursuant
29    to  this  subsection  shall  not  file proposed tariff sheets
30    seeking,  or   otherwise   petition   the   Commission   for,
31    reinstatement   or  adoption  of  a  fuel  or  purchased  gas
32    adjustment clause. Nothing in this subsection  (d)  shall  be
33    construed as limiting the Commission's authority to eliminate
34    a  public  utility's  fuel adjustment clause or purchased gas
                            -164-         SRS90HB0362JJsaam02
 1    adjustment clause in accordance  with  any  other  applicable
 2    provisions of this Act.
 3        (e)  Notwithstanding   any   contrary   or   inconsistent
 4    provisions  in   Section 9-201 of this Act, in subsection (a)
 5    of this  Section,  or  in    any  rules  promulgated  by  the
 6    Commission  pursuant    to  subsection (g) of this Section, a
 7    public utility providing    electric  service  to  more  than
 8    1,000,000  customers  in  this  State may, within the first 6
 9    months after the  effective date of this  amendatory  Act  of
10    1997,  file  with the  Commission proposed tariff sheets that
11    eliminate, effective  January 1, 1997, the  public  utility's
12    fuel adjustment clause  without adjusting its base rates, and
13    such  tariff  sheets shall be  effective upon filing.  To the
14    extent the application of the fuel    adjustment  clause  had
15    resulted  in net charges to customers after  January 1, 1997,
16    the utility shall also file a tariff sheet that  provides for
17    a refund stated on a per kilowatt-hour basis of such  charges
18    over a period not to exceed 6 months; provided  however, that
19    such refund shall not include the proportional    amounts  of
20    taxes  paid  under  the  Use  Tax  Act,  Service Use Tax Act,
21    Service Occupation Tax Act, and Retailers' Occupation Tax Act
22    on  fuel used in generation.  The Commission shall  issue  an
23    order   within 45 days after the date of the public utility's
24    filing  approving or approving as modified such tariff sheet.
25    If the fuel  adjustment clause is eliminated pursuant to this
26    subsection, the  Commission  shall  not  conduct  the  annual
27    hearings specified in the  last 3 sentences of subsection (a)
28    of  this  Section  for  the    utility  for  any period after
29    December 31, 1996 and prior to any    reinstatement  of  such
30    clause.  A  public  utility whose fuel  adjustment clause has
31    been eliminated pursuant to this subsection  shall not file a
32    proposed tariff sheet seeking, or  otherwise    petition  the
33    Commission  for, reinstatement of the fuel adjustment  clause
34    prior to January 1, 2005.
                            -165-         SRS90HB0362JJsaam02
 1        (f)  Notwithstanding   any   contrary   or   inconsistent
 2    provisions in Section 9-201 of this Act, in subsection (a) of
 3    this Section, or in any rules or regulations  promulgated  by
 4    the  Commission pursuant to subsection (g) of this Section, a
 5    public  utility  providing  electric  service  to  more  than
 6    500,000 customers but fewer than 1,000,000 customers in  this
 7    State may, within the first 6 months after the effective date
 8    of  this  amendatory  Act  of  1997, file with the Commission
 9    proposed tariff sheets that eliminate, effective  January  1,
10    1997,  the public utility's fuel adjustment clause and adjust
11    its base rates by the amount  necessary  for  the  base  fuel
12    component  of  the  base  rates  to recover 91% of the public
13    utility's average fuel and power supply costs for the 2  most
14    recent years for which the Commission, as of January 1, 1997,
15    has  issued  final  orders  in annual proceedings pursuant to
16    subsection (a), where the average fuel and power supply costs
17    per kilowatt-hour shall be  calculated  as  the  sum  of  the
18    public  utility's prudent and allowable fuel and power supply
19    costs as found by the Commission in the 2 proceedings divided
20    by the public utility's actual  jurisdictional  kilowatt-hour
21    sales  for  those  2 years, provided, that such tariff sheets
22    shall  be  effective  upon  filing.   To   the   extent   the
23    application of the fuel adjustment clause had resulted in net
24    charges to customers after January 1, 1997, the utility shall
25    also file a tariff sheet that provides for a refund stated on
26    a  per  kilowatt-hour basis of such charges over a period not
27    to exceed 6 months.  Provided however, that such refund shall
28    not include the proportional amounts of taxes paid under  the
29    Use Tax Act, Service Use Tax Act, Service Occupation Tax Act,
30    and Retailers' Occupation Tax Act on fuel used in generation.
31    The  Commission shall issue an order within 45 days after the
32    date of the public utility's filing approving or approving as
33    modified such tariff sheet.  If the fuel adjustment clause is
34    eliminated pursuant to this subsection, the Commission  shall
                            -166-         SRS90HB0362JJsaam02
 1    not  conduct  the  annual  hearings  specified  in the last 3
 2    sentences of subsection (a) of this Section for  the  utility
 3    for  any  period  after  December  31,  1996 and prior to any
 4    reinstatement of such clause.  A public  utility  whose  fuel
 5    adjustment  clause  has  been  eliminated  pursuant  to  this
 6    subsection shall not file a proposed tariff sheet seeking, or
 7    otherwise  petition  the Commission for, reinstatement of the
 8    fuel adjustment clause prior to January 1, 2005.
 9        (g)  The Commission shall have  authority  to  promulgate
10    rules  and  regulations  to  carry out the provisions of this
11    Section paragraph.
12    (Source: P.A. 87-173; 88-488.)
13        (220 ILCS 5/9-244) (from Ch. 111 2/3, par. 9-244)
14        Sec. 9-244. Alternative rate regulation.
15        (a)  Notwithstanding any of the ratemaking provisions  of
16    this  Article  IX  or  other  Sections  of  this  Act, or the
17    Commission's rules that are deemed to require rate of  return
18    regulation,  and  except  as  provided  in  Article  XVI, the
19    Commission, upon  petition  by  an  electric  or  gas  public
20    utility, and after notice and hearing, may authorize for some
21    or  all  of  the  regulated  services  of  that  utility, the
22    implementation of one or  more  programs  consisting  of  (i)
23    alternatives  to rate of return regulation, including but not
24    limited to earnings sharing, rate moratoria,  price  caps  or
25    flexible  rate  options,  or (ii) other regulatory mechanisms
26    that reward or penalize the utility through the adjustment of
27    rates based on utility performance.  In  the  case  of  other
28    regulatory  mechanisms  that  reward  or  penalize  utilities
29    through the adjustment of rates based on utility performance,
30    the  utility's  performance  shall  be  compared to standards
31    established  in  the   Commission   order   authorizing   the
32    implementation   of   other   regulatory   mechanisms.    The
33    Commission is specifically authorized to approve in  response
                            -167-         SRS90HB0362JJsaam02
 1    to  such petitions different forms of alternatives to rate of
 2    return regulation or other regulatory mechanisms to  fit  the
 3    particular  characteristics  and  requirements  of  different
 4    utilities and their service territories.
 5        (b)  The  Commission  shall  approve  the  program  if it
 6    finds, based on the record, that:
 7             (1)  the program is likely to result in rates  lower
 8        than   otherwise   would   have   been  in  effect  under
 9        traditional rate of return regulation  for  the  services
10        covered  by  the program and that are consistent with the
11        provisions of Section 9-241 of the Act; and
12             (2)  the  program  is  likely  to  result  in  other
13        substantial  and  identifiable  benefits  that  would  be
14        realized by customers served under the program  and  that
15        would not be realized in the absence of the program; and
16             (3)  the  utility  is  in compliance with applicable
17        Commission standards for reliability  and  implementation
18        of  the program is not likely to adversely affect service
19        reliability; and
20             (4)  implementation of the program is not likely  to
21        result   in  deterioration  of  the  utility's  financial
22        condition; and
23             (5)  implementation of the program is not likely  to
24        adversely  affect the development of competitive markets;
25        and
26             (6)  the electric utility is in compliance with  its
27        obligation to offer delivery services pursuant to Article
28        XVI; and
29             (7)  the    program   includes   annual    reporting
30        requirements and other provisions that  will  enable  the
31        Commission  to  adequately  monitor its implementation of
32        the program; and
33             (8)  the  program   includes   provisions   for   an
34        equitable  sharing  of  any net economic benefits between
                            -168-         SRS90HB0362JJsaam02
 1        the utility and its customers to the extent  the  program
 2        is likely to result in such benefits.
 3        The Commission shall issue its order approving or denying
 4    the program no later than 270 days from the date of filing of
 5    the  petition.  Any program approved under this Section shall
 6    continue in effect until revised, modified or  terminated  by
 7    order of the Commission as provided in this Section.   If the
 8    Commission   cannot   make   the  above  findings,  it  shall
 9    specifically identify in its order the reason or reasons  why
10    the  proposed  program  does not meet the above criteria, and
11    shall identify any modifications supported in the record,  if
12    any,  that  would  cause  the  program  to  satisfy the above
13    criteria.   In  the  event  the  order  identifies  any  such
14    modifications it shall not become a final  order  subject  to
15    petitions  for  rehearing until 15 days after service of same
16    by the Commission.  The utility shall have 14 days  following
17    the  date of service of the order to notify the Commission in
18    writing  whether  it  will  accept   any   modifications   so
19    identified  in  the  order  or  whether it has elected not to
20    proceed with  the  program.   If  the  utility  notifies  the
21    Commission  that  it  will  accept  such  modifications,  the
22    Commission  shall  issue  an  amended  order, without further
23    hearing,  within  14  days   following   such   notification,
24    approving  the  program  as  modified and such order shall be
25    considered to be a final order of the Commission  subject  to
26    petitions for rehearing and appellate procedures.
27        (c)  The Commission shall open a proceeding to review any
28    program  approved  under  subsection  (b)  2  years after the
29    program is first implemented to determine whether the program
30    is meeting its objectives, and may make  such  revisions,  no
31    later  than  270  days after the proceeding is opened, as are
32    necessary to result in the program meeting its objectives.  A
33    utility may elect to discontinue any program so revised.  The
34    Commission shall not otherwise direct a  utility  to  revise,
                            -169-         SRS90HB0362JJsaam02
 1    modify  or  cancel  a  program  during its term of operation,
 2    except as found  necessary,  after  notice  and  hearing,  to
 3    ensure system reliability.
 4        (d)  Upon its own motion or complaint, the Commission may
 5    investigate  whether  the utility is implementing an approved
 6    program in accordance with the Commission order approving the
 7    program.  If the Commission finds after notice  and  hearing,
 8    that   the   utility  is  not  implementing  the  program  in
 9    accordance with such order, the Commission  shall  order  the
10    utility  to  comply  with the terms of the order.  Complaints
11    relating to the program filed under  Section  9-250  of  this
12    Act,  alleging  that  the  program  does not comply with that
13    Section or the requirements of subsection (b)  shall  not  be
14    filed  sooner  than one year after the review provided for in
15    subsection (c).  The complainant shall  bear  the  burden  of
16    proving the allegations in the complaint.
17        (e)  The  Commission  shall not be authorized to allow or
18    order an electric utility to place  a  program  into  effect,
19    pursuant  to  this  Section,  applicable to delivery services
20    provided by a utility, unless  the  utility  already  has  in
21    effect   a   delivery   services  tariff  conforming  to  the
22    requirements of Section 16-108 of this Act.
23        (f)  The Commission may, upon subsequent petition by  the
24    utility, after notice and hearing, authorize the extension of
25    a  program  that  was  previously  approved  pursuant to this
26    Section or approve  revisions  or  modifications  of  such  a
27    program to be effective, after the initially approved program
28    has  been in effect.  Any such petition seeking an extension,
29    revision,  or  modification  of  such  a  program   must   be
30    accompanied  by  an  evaluation of the program addressing the
31    criteria set forth in subsection (b) hereof.   The  utility's
32    petition  may,  but is not required to, specify a termination
33    date for the extended,  revised  or  modified  program.   The
34    Commission  may require a review of the extended, revised, or
                            -170-         SRS90HB0362JJsaam02
 1    modified program at such intervals as may be ordered  by  the
 2    Commission,  for  the  purpose  of  determining  whether  the
 3    program   should   be   revised,   modified,  or  terminated.
 4    Performance based rates.  Notwithstanding any other  Sections
 5    of  this  Act or the Commission's rules, the Commission, upon
 6    petition by a public utility and after hearing, may authorize
 7    for that utility on an experimental basis, the implementation
 8    of one or more programs consisting  of  (a)  alternatives  to
 9    rate  of return regulation or (b) other regulatory mechanisms
10    that reward or penalize utilities through the  adjustment  of
11    rates  based  on  utility  performance.  In the case of other
12    regulatory  mechanisms  that  reward  or  penalize  utilities
13    through the adjustment of rates based on utility performance,
14    the utility's performance  shall  be  compared  to  standards
15    established   in   the   Commission   order  authorizing  the
16    implementation of the  other  regulatory  mechanisms.  Before
17    authorizing  the  implementation  of programs that are either
18    alternatives to rate of return regulation or other regulatory
19    mechanisms that reward  or  penalize  utilities  through  the
20    adjustment   of  rates  based  on  utility  performance,  the
21    Commission shall:
22             (1)  make a finding that the implementation of  such
23        programs is in the public interest;
24             (2)  make  a finding that the implementation of such
25        programs will produce fair, just, and  reasonable  rates,
26        consistent  with  the provisions of Section 9-241 of this
27        Act;
28             (3)  where appropriate,  make  a  finding  that  the
29        programs  respond  to  changes  in the utility's industry
30        that are in fact occurring;
31             (4)  specifically   identify   how   the   programs'
32        departure from traditional rate  of  return  rate  making
33        principles    will   benefit   ratepayers   through   the
34        realization of one or more of the following:   efficiency
                            -171-         SRS90HB0362JJsaam02
 1        gains; cost savings; or improvements in productivity.
 2        The  Commission  shall  issue  its order no later than 11
 3    months from the date of the filing of the petition.  Any such
 4    programs shall not extend beyond the public utility's service
 5    territory and shall not extend beyond June 30, 2000. No later
 6    than December 31, 2000, the Commission shall  report  to  the
 7    General     Assembly,     with     appropriate    legislative
 8    recommendations.
 9    (Source: P.A. 89-194, eff. 1-1-96.)
10        (220 ILCS 5/10-113) (from Ch. 111 2/3, par. 10-113)
11        Sec. 10-113. Rescission or hearing of order.
12        (a)  Anything   in   this    Act    to    the    contrary
13    notwithstanding,  the Commission may at any time, upon notice
14    to the public utility affected, and after opportunity  to  be
15    heard  as  provided in the case of complaints, rescind, alter
16    or amend any rule, regulation, order or decision made by  it.
17    Any  order  rescinding,  altering  or  amending a prior rule,
18    regulation, order or decision shall,  when  served  upon  the
19    public  utility  affected,  have the same effect as is herein
20    provided  for  original   rules,   regulations,   orders   or
21    decisions.  Within  30  days after the service of any rule or
22    regulation, order or decision of the Commission any party  to
23    the action or proceeding may apply for a rehearing in respect
24    to  any  matter  determined  in said action or proceeding and
25    specified in the application for  rehearing.  The  Commission
26    shall  receive  and consider such application and shall grant
27    or deny such application in whole or in part within  20  days
28    from  the  date  of the receipt thereof by the Commission. In
29    case the application for rehearing is granted in whole or  in
30    part  the Commission shall proceed as promptly as possible to
31    consider such  rehearing  as  allowed.  No  appeal  shall  be
32    allowed  from  any rule, regulation, order or decision of the
33    Commission unless and until an application  for  a  rehearing
                            -172-         SRS90HB0362JJsaam02
 1    thereof shall first have been filed with and finally disposed
 2    of  by  the  Commission:  provided, however, that in case the
 3    Commission shall fail to grant or deny an application  for  a
 4    rehearing in whole or in part within 20 days from the date of
 5    the  receipt  thereof,  or  shall fail to enter a final order
 6    upon rehearing  within  150  days  after  such  rehearing  is
 7    granted,  the  application  for  rehearing shall be deemed to
 8    have been denied and finally disposed of,  and  an  order  to
 9    that  effect  shall  be  deemed  to have been served, for the
10    purpose of an appeal from  the  rule,  regulation,  order  or
11    decision   covered   by   such   application.  No  person  or
12    corporation in any appeal shall urge or rely upon any grounds
13    not set forth in such application for a rehearing before  the
14    Commission. An application for rehearing shall not excuse any
15    corporation  or  person  from  complying with and obeying any
16    rule, regulation, order or decision or any requirement of any
17    rule,  regulation,  order  or  decision  of  the   Commission
18    theretofore  made,  or  operate  in  any  manner  to  stay or
19    postpone the enforcement thereof, except in  such  cases  and
20    upon  such  terms  as the Commission may by order direct. If,
21    after such rehearing and  consideration  of  all  the  facts,
22    including  those  arising  since  the  making  of  the  rule,
23    regulation, order or decision, the Commission shall be of the
24    opinion that the original rule, regulation, order or decision
25    or  any part thereof is in any respect unjust or unwarranted,
26    or should be changed, the Commission may  rescind,  alter  or
27    amend  the  same.  A rule, regulation, order or decision made
28    after such rehearing, rescinding, altering  or  amending  the
29    original  rule,  regulation, order or decision shall have the
30    same force and effect as an original rule, regulation,  order
31    or   decision,   but  shall  not  affect  any  right  or  the
32    enforcement of any right arising from or  by  virtue  of  the
33    original  rule,  regulation,  order  or  decision  unless  so
34    ordered  by  the  Commission.  Only  one  rehearing  shall be
                            -173-         SRS90HB0362JJsaam02
 1    granted by the Commission; but this shall not be construed to
 2    prevent any party from filing a petition setting up a new and
 3    different state of facts after  2  years,  and  invoking  the
 4    action of the Commission thereon.
 5        (b)  Notwithstanding   any   contrary   or   inconsistent
 6    provision  in  the Illinois Administrative Procedure Act, the
 7    Commission may, in  accordance  with  this  Section,  make  a
 8    change  in  a rule or regulation adopted or modified pursuant
 9    to Section 5-40 of the Illinois Administrative Procedure Act,
10    upon consideration of an application  for  rehearing  of  the
11    Commission's  order  directing that the rule or regulation be
12    filed with the  Secretary  of  State  and  published  in  the
13    Illinois Register pursuant to subsection (d) of Section 5-40.
14    The  Commission  shall  provide  the  parties to the original
15    hearing in which the rule was adopted  or  modified  no  less
16    than  7  days  notice  to provide responses to the change the
17    Commission proposes to make.  Any such change shall be  based
18    upon evidence submitted in the record in the original hearing
19    or  in  the  rehearing.   If  the  Commission  makes  such  a
20    substantive change in the rule or regulation pursuant to this
21    subsection,  it  shall provide notice of the amendment to the
22    rule or regulation to the Joint Committee  on  Administrative
23    Rules  in accordance with subsection (c) of Section 5-40, and
24    shall thereafter comply with the requirements  of  subsection
25    (d) of Section 5-40 with respect to the rule or regulation as
26    amended.   The  running  of  the  time  period  specified  in
27    subsection (e) of Section 5-40 of the Illinois Administrative
28    Procedure Act for completing a rulemaking proceeding shall be
29    tolled for the period of time necessary for the Commission to
30    receive  and  consider  an  application  for rehearing and to
31    conduct any proceedings on  rehearing,  provided,  that  such
32    tolling  shall  not  serve  to extend any of the time periods
33    provided for in subsection (a) of this Section.
34    (Source: P.A. 84-617.)
                            -174-         SRS90HB0362JJsaam02
 1        Section 15.  Except as otherwise provided in  Section  60
 2    of  this  amendatory  Act of 1997, iIf any provision added by
 3    this amendatory Act of 1997  is  held  invalid,  this  entire
 4    amendatory  Act  of  1997  shall  be  deemed invalid, and the
 5    provisions of Section 1.31, "Severability", of the Statute on
 6    Statutes are hereby expressly declared not applicable to this
 7    amendatory Act  of  1997;  provided,  however  (i)  that  any
 8    contracts entered into and performed, transactions completed,
 9    orders  issued,  services  provided,  billings  rendered,  or
10    payments  made  in  accordance  with  the  provisions of this
11    amendatory Act of 1997, other than as provided in clause (ii)
12    below, prior  to  the  date  of  the  determination  of  such
13    invalidity,  shall not thereby be rendered invalid; (ii) that
14    no presumption as  to  the  validity  or  invalidity  of  any
15    contracts,   transactions,   orders,  billings,  or  payments
16    pursuant to Article XVIII of the Public Utilities  Act  shall
17    result  from a determination of invalidity of this amendatory
18    Act of 1997; and (iii) that the  provisions  of  proviso  (i)
19    shall not be deemed to preserve the validity of any executory
20    contracts  or  transactions,  of  any  actions  to  be  taken
21    pursuant   to  orders  issued,  or  of  any  services  to  be
22    performed, billings to be rendered, or payments to  be  made,
23    pursuant  to  provisions  of  this  amendatory  Act  of  1997
24    subsequent to the date of determination of such invalidity.
25        (220 ILCS 5/8-402 rep.)
26        (220 ILCS 5/8-402.1 rep.)
27        (220 ILCS 5/8-404 rep.)
28        Section  18.   Sections  8-402, 8-402.1, and 8-404 of the
29    Public Utilities Act are hereby repealed.
30                              ARTICLE 2
31        Section 2-1.  Short title.  This Article may be cited  as
                            -175-         SRS90HB0362JJsaam02
 1    the Electricity Excise Tax Law.
 2        Section  2-2.  Findings and intent.  The General Assembly
 3    finds that the deregulation and restructuring of the electric
 4    utility industry in this State mandated  and  implemented  by
 5    this  amendatory  Act  of  1997,  including the unbundling of
 6    services  and  the  authorization  of  competition   in   the
 7    provision  of  those  services such that consumers may in the
 8    future  transact  with  multiple  providers  to  obtain   the
 9    services  that  were formerly provided by a single franchised
10    monopoly supplier  of  electricity,  renders  the  system  of
11    taxation   embodied  in  the  Public  Utilities  Revenue  Act
12    impracticable and infeasible.  The General  Assembly  further
13    finds that the deregulation and restructuring of the electric
14    utility  industry  necessitate changes to the existing system
15    of taxation in order to preserve  revenue neutrality  in  tax
16    collections  for  the State of Illinois, to avoid placing any
17    supplier engaged in the business of distributing,  supplying,
18    furnishing,  selling,  transmitting or delivering electricity
19    at  a  competitive  disadvantage,  to  minimize    additional
20    administrative  costs and burdens of collection, and to avoid
21    the  imposition  of  increased  tax  burdens  on   individual
22    consumers  of  electricity, particularly residential electric
23    users virtually all of whom, pursuant to  Section  2  of  the
24    Public  Utilities  Revenue  Act,  presently bear the economic
25    burden of the tax imposed thereunder at the rate of .32 cents
26    per kilowatt-hour  distributed,  supplied,  furnished,  sold,
27    transmitted  or  delivered  to  them.   The  General Assembly
28    further finds that to  change  the  current  rates  at  which
29    non-residential  users bear the economic burden of the Public
30    Utilities Revenue Tax, thereby resulting  in increases in the
31    amount of  tax  for  which  non-residential  users  bear  the
32    economic  burden,  could  impose  additional  cost burdens on
33    businesses  in  this  State  and  adversely  affect  economic
                            -176-         SRS90HB0362JJsaam02
 1    development and business retention in  Illinois  unless  such
 2    users  are  provided  options for paying an excise tax on the
 3    basis of purchase  price.   The  General  Assembly  therefore
 4    finds  that  there  is a compelling public need to modify the
 5    system of taxation embodied in the Public  Utilities  Revenue
 6    Act by repealing the tax imposed by Section 2 of that Act and
 7    imposing this electricity excise tax so as to:
 8             (1)  Impose   the  electricity  excise  tax  on  the
 9        privilege of electric use measured by  the kilowatt-hours
10        delivered to the purchaser;
11             (2)  As part of this amendatory Act of 1997,  repeal
12        the  tax imposed by Section 2-202 of the Public Utilities
13        Act as applicable to electric utilities and establish the
14        rates of tax imposed under the electricity excise tax  in
15        order to collect substantially the same amount of revenue
16        as was collected under Section 2-202 of that Act; and
17             (3)  Allow  non-residential consumers of electricity
18        to elect to register with the Department  of  Revenue  as
19        self-assessing  purchasers  and  to  pay  the electricity
20        excise tax directly to the Department at a rate which  is
21        established  as  a percentage of such consumer's purchase
22        price for electricity distributed,  supplied,  furnished,
23        sold, transmitted or delivered to the purchaser.
24        Section  2-3.  Definitions.   As used in this Law, unless
25    the context clearly requires otherwise:
26        (a)  "Department" means the Department of Revenue of  the
27    State of Illinois.
28        (b)  "Director"  means  the Director of the Department of
29    Revenue of the State of Illinois.
30        (c)  "Person" means any natural individual, firm,  trust,
31    estate,  partnership, association, joint stock company, joint
32    venture,  corporation,  limited  liability  company,   or   a
33    receiver,   trustee,   guardian,   or   other  representative
                            -177-         SRS90HB0362JJsaam02
 1    appointed by order of any court, or any city, town,  village,
 2    county, or other political subdivision of this State.
 3        (d)  "Purchase  price"  means  the consideration paid for
 4    the distribution, supply, furnishing, sale,  transmission  or
 5    delivery  of  electricity to a person for non-residential use
 6    or consumption (and for both residential and  non-residential
 7    use  or consumption in the case of electricity purchased from
 8    a municipal  system  or  electric  cooperative  described  in
 9    subsection  (b)  of  Section 2-4) and not for resale, and for
10    all services directly related to the production, transmission
11    or  distribution  of   electricity   distributed,   supplied,
12    furnished, sold, transmitted or delivered for non-residential
13    use  or  consumption, and includes transition charges imposed
14    in accordance with Article XVI of the  Public  Utilities  Act
15    and  instrument  funding  charges  imposed in accordance with
16    Article XVIII of the Public Utilities Act, as well  as  cash,
17    services  and  property of every kind or nature, and shall be
18    determined without any deduction on account of  the  cost  of
19    the  service,  product  or  commodity  supplied,  the cost of
20    materials used, labor or service costs, or any other  expense
21    whatsoever.    However,  "purchase  price"  shall not include
22    consideration paid for:
23             (i)  any charge for a dishonored check;
24             (ii)  any  finance  or  credit  charge,  penalty  or
25        charge  for  delayed  payment,  or  discount  for  prompt
26        payment;
27             (iii)  any charge for reconnection of service or for
28        replacement or relocation of facilities;
29             (iv)  any  advance  or  contribution   in   aid   of
30        construction;
31             (v)  repair,  inspection  or  servicing of equipment
32        located on customer premises;
33             (vi)  leasing or rental of equipment, the leasing or
34        rental of which is not necessary to furnishing, supplying
                            -178-         SRS90HB0362JJsaam02
 1        or selling electricity;
 2             (vii)  any purchase by a purchaser if  the  supplier
 3        is  prohibited  by federal or State constitution, treaty,
 4        convention, statute or court decision from recovering the
 5        related tax liability from such purchaser; and
 6             (viii)  any  amounts  added  to  purchasers'   bills
 7        because  of  charges  made pursuant to the tax imposed by
 8        this Law.
 9        In case credit is extended, the amount thereof  shall  be
10    included only as and when payments are made.
11        "Purchase price" shall not include consideration received
12    from  business enterprises certified under Section 9-222.1 of
13    the Public Utilities Act, as amended, to the extent  of  such
14    exemption  and  during  the  period  of time specified by the
15    Department of Commerce and Community Affairs.
16        (e)  "Purchaser"   means   any   person   who    acquires
17    electricity  for use or consumption and not for resale, for a
18    valuable consideration.
19        (f)  "Non-residential electric  use"  means  any  use  or
20    consumption of electricity which is not  residential electric
21    use.
22        (g)  "Residential electric use" means electricity used or
23    consumed  at  a  dwelling of 2 or fewer units, or electricity
24    for household purposes used or consumed at  a  building  with
25    multiple  dwelling  units where the electricity is registered
26    by a separate meter for each dwelling unit.
27        (h)  "Self-assessing purchaser"  means  a  purchaser  for
28    non-residential  electric use who elects to register with and
29    to pay tax directly to  the  Department  in  accordance  with
30    Sections 2-10 and 2-11 of this Law.
31        (i)  "Delivering  supplier"  means  any person engaged in
32    the business of delivering electricity to persons for use  or
33    consumption  and  not  for  resale and who, in any case where
34    more  than  one  person  participates  in  the  delivery   of
                            -179-         SRS90HB0362JJsaam02
 1    electricity  to  a  specific  purchaser,   is the last of the
 2    suppliers engaged in delivering the electricity prior to  its
 3    receipt by the purchaser.
 4        (j)  "Delivering supplier maintaining a place of business
 5    in  this  State",  or  any  like  term,  means any delivering
 6    supplier having or maintaining within this State, directly or
 7    by a subsidiary, an office, generation facility, transmission
 8    facility, distribution facility, sales office or other  place
 9    of  business,  or any employee, agent or other representative
10    operating within this  State  under  the  authority  of  such
11    delivering supplier or such delivering supplier's subsidiary,
12    irrespective  of  whether  such place of business or agent or
13    other representative is located in this State permanently  or
14    temporarily,  or  whether  such  delivering  supplier or such
15    delivering supplier's subsidiary is licensed to  do  business
16    in this State.
17        (k)  "Use"  means the exercise by any person of any right
18    or power over electricity incident to the ownership  of  that
19    electricity,  except that it does not include the generation,
20    production, transmission, distribution, delivery or  sale  of
21    electricity  in  the regular course of business or the use of
22    electricity for such purposes.
23        Section 2-4. Tax imposed.
24        (a)  Except as provided  in  subsection  (b),  a  tax  is
25    imposed  on  the privilege of using in this State electricity
26    purchased for use or consumption and not  for  resale,  other
27    than  by  municipal corporations owning and operating a local
28    transportation system for public service,  at  the  following
29    rates per kilowatt-hour delivered to the purchaser:
30        (i)  For  the  first 2000 kilowatt-hours used or consumed
31    in a month: 0.330 cents per kilowatt- hour;
32        (ii)  For the next 48,000 kilowatt-hours used or consumed
33    in a month: 0.319 cents per kilowatt-hour;
                            -180-         SRS90HB0362JJsaam02
 1        (iii)  For  the  next  50,000  kilowatt-hours   used   or
 2    consumed in a month: 0.303 cents per kilowatt-hour;
 3        (iv)  For   the   next  400,000  kilowatt-hours  used  or
 4    consumed in a month: 0.297 cents per kilowatt-hour;
 5        (v)  For the next 500,000 kilowatt-hours used or consumed
 6    in a month: 0.286 cents per kilowatt-hour;
 7        (vi)  For  the  next  2,000,000  kilowatt-hours  used  or
 8    consumed in a month: 0.270 cents per kilowatt-hour;
 9        (vii)  For the  next  2,000,000  kilowatt-hours  used  or
10    consumed in a month: 0.254 cents per kilowatt-hour;
11        (viii)  For  the  next  5,000,000  kilowatt-hours used or
12    consumed in a month: 0.233 cents per kilowatt-hour;
13        (ix)  For the  next  10,000,000  kilowatt-hours  used  or
14    consumed in a month: 0.207 cents per kilowatt-hour;
15        (x)  For   all   electricity   in  excess  of  20,000,000
16    kilowatt-hours used or consumed in a month: 0.202  cents  per
17    kilowatt-hour.
18        Provided, that in lieu of the foregoing rates, the tax is
19    imposed  on a self-assessing purchaser at the rate of 5.1% of
20    the  self-assessing  purchaser's  purchase  price   for   all
21    electricity    distributed,    supplied,   furnished,   sold,
22    transmitted and delivered to the self-assessing purchaser  in
23    a month.
24        (b)  A  tax  is imposed on the privilege of using in this
25    State  electricity  purchased  from  a  municipal  system  or
26    electric cooperative, as  defined  in  Article  XVII  of  the
27    Public  Utilities  Act,  which  has  not  made an election as
28    permitted by either Section 17-200 or Section 17-300 of  such
29    Act,  at  the  lesser  of 0.32 cents per kilowatt hour of all
30    electricity   distributed,   supplied,    furnished,    sold,
31    transmitted,  and  delivered  by  such  municipal  system  or
32    electric  cooperative  to  the  purchaser  or 5% of each such
33    purchaser's purchase price for all  electricity  distributed,
34    supplied, furnished, sold, transmitted, and delivered by such
                            -181-         SRS90HB0362JJsaam02
 1    municipal  system  or  electric cooperative to the purchaser,
 2    whichever is the lower rate as applied to each  purchaser  in
 3    each billing period.
 4        (c)  The  tax  imposed by this Section 2-4 is not imposed
 5    with  respect  to  any  use  of   electricity   by   business
 6    enterprises  certified  under  Section  9-222.1 of the Public
 7    Utilities Act, as amended, to the extent  of  such  exemption
 8    and  during  the time specified by the Department of Commerce
 9    and Community Affairs; or with respect to any transaction  in
10    interstate  commerce,  or  otherwise,  to the extent to which
11    such transaction may not, under the Constitution and statutes
12    of the United States, be made the subject of taxation by this
13    State.
14        Section 2-5.  Multistate exemption.   To  prevent  actual
15    multi-state  taxation  of  the   privilege that is subject to
16    taxation under this  Law,  any  purchaser,  upon  proof  that
17    purchaser  has  paid  a  tax  in another state on such event,
18    shall be allowed a credit against the  tax  imposed  by  this
19    Law,  to the extent of the amount of the tax properly due and
20    paid in the other state.
21        Section  2-6.   Sunset   of   exemptions,   credits   and
22    deductions.    The application of every exemption, credit and
23    deduction against tax imposed by this Law, shall  be  limited
24    by  a  reasonable  and  appropriate sunset date.  A purchaser
25    subject to the tax imposed by this Law  is  not  entitled  to
26    take  the  exemption,  credit,  or deduction beginning on the
27    sunset date and thereafter.  If a reasonable and  appropriate
28    sunset  date  is not specified in the Public Act that creates
29    the exemption, credit, or deduction, a purchaser shall not be
30    entitled  to  take  the  exemption,  credit,   or   deduction
31    beginning  5 years after the effective date of the Public Act
32    creating the exemption, credit, or deduction and  thereafter.
                            -182-         SRS90HB0362JJsaam02
 1    The  provisions  of  this  Section  shall  not  apply  to the
 2    exemption provided by Section 2-5 of this Law.
 3        Section 2-7.  Collection of electricity excise tax.   The
 4    tax   imposed  by  this  Law  shall  be  collected  from  the
 5    purchaser, other than a self-assessing purchaser who provides
 6    a copy of an active certification described in Sections  2-10
 7    and   2-10.5   of   this  Law,  by  any  delivering  supplier
 8    maintaining a place of business in this State  at  the  rates
 9    stated  in  Section  2-4  with  respect  to  the  electricity
10    delivered   by   such  delivering  supplier  to  or  for  the
11    purchaser,  and  shall  be  remitted  to  the  Department  as
12    provided in Section 2-9 of this Law. All sales to a purchaser
13    are presumed subject to tax collection unless  the  purchaser
14    provides  the  delivering  supplier  with a copy of an active
15    certification described in Sections 2-10 and 2-10.5  of  this
16    Law.    Upon  receipt  of  an  active  certification  from  a
17    purchaser,  the  delivering  supplier  is  relieved  of   all
18    liability  for  the collection and remittance of tax from the
19    self-assessing purchaser who has provided the  certification.
20    The  delivering supplier is relieved of the liability for the
21    collection of the tax from a self-assessing  purchaser  until
22    such  time  as the delivering supplier is notified in writing
23    by the purchaser that  the  purchaser's  certification  as  a
24    self-assessing  purchaser  is no longer in effect. Delivering
25    suppliers shall collect the tax from purchasers by adding the
26    tax to the amount of the purchase  price  received  from  the
27    purchaser for delivering electricity for or to the purchaser.
28    Where  a  delivering supplier does not collect the tax from a
29    purchaser, other than a self-assessing purchaser, as provided
30    herein, such purchaser shall pay  the  tax  directly  to  the
31    Department.
32        Section  2-7.5.  Registration  of delivering suppliers. A
                            -183-         SRS90HB0362JJsaam02
 1    person who engages in business as a  delivering  supplier  of
 2    electricity in this State shall register with the Department.
 3    Application  for  a certificate of registration shall be made
 4    to the Department upon forms furnished by the Department  and
 5    shall  contain  any reasonable information the Department may
 6    require.  Upon receipt of the application for  a  certificate
 7    of  registration  in  proper form, the Department shall issue
 8    to the applicant a certificate of registration.
 9        The Department may deny a certificate of registration  to
10    any    applicant  if such applicant is in  default for moneys
11    due under this Law.
12        Any person aggrieved by any decision  of  the  Department
13    under   this Section may, within 20 days after notice of such
14    decision,  protest  and  request  a  hearing,  whereupon  the
15    Department shall give notice to such person of the  time  and
16    place  fixed  for  such  hearing  and shall hold a hearing in
17    conformity with the provisions of this  Law  and  then  issue
18    its  final  administrative  decision  in  the  matter to such
19    person. In the absence of such a protest within 20 days,  the
20    Department's  decision shall become final without any further
21    determination being made or notice given.
22        Section 2-7.6. Revocation of certificate of registration.
23    The Department may, after notice and a  hearing  as  provided
24    herein,  revoke the certificate of registration of any person
25    who violates any of  the  provisions  of  this  Law.   Before
26    revocation  of  a certificate of registration, the Department
27    shall, within 90 days after non-compliance  and  at  least  7
28    days  prior  to  the  date of the hearing, give the person so
29    accused notice in writing of the charge against him  or  her,
30    and  on the date designated shall conduct a hearing upon this
31    matter.  The lapse of such 90 day period shall  not  preclude
32    the  Department  from  conducting revocation proceedings at a
33    later  date  if  necessary.   Any  hearing  held  under  this
                            -184-         SRS90HB0362JJsaam02
 1    Section shall be conducted by the Director or by  any officer
 2    or employee of the Department designated in  writing  by  the
 3    Director.
 4        Upon  the hearing of any such proceeding, the Director or
 5    any officer or employee of  the  Department    designated  in
 6    writing  by  the  Director  may  administer  oaths,  and  the
 7    Department  may  procure  by  its  subpoena the attendance of
 8    witnesses and, by its subpoena  duces tecum,  the  production
 9    of  relevant  books  and  papers.    Any  circuit court, upon
10    application either of the accused or  of the Department, may,
11    by order duly entered, require the  attendance  of  witnesses
12    and  the  production of relevant books  and papers before the
13    Department in any hearing relating  to    the  revocation  of
14    certificates  of  registration.  Upon  refusal  or neglect to
15    obey the order of the court, the court may  compel  obedience
16    thereof by proceedings for contempt.
17        The Department may, by application to any circuit  court,
18    obtain  an  injunction  requiring  any person who  engages in
19    business as a delivering supplier of electricity to obtain  a
20    certificate of registration. Upon refusal or  neglect to obey
21    the  order  of  the court, the court may compel  obedience by
22    proceedings for contempt.
23        Section 2-8.  Tax collected as debt owed to  State.   The
24    tax  herein  required  to  be  collected  by  any  delivering
25    supplier  maintaining  a place of business in this State, and
26    any such tax collected by that  person,  shall  constitute  a
27    debt  owed  by  that person to this State, provided, that the
28    delivering supplier shall be  allowed  credit  for  such  tax
29    related  to  deliveries  of electricity the charges for which
30    are written off as uncollectible, and provided further,  that
31    if  such  charges  are  thereafter  collected, the delivering
32    supplier shall be obligated to remit such tax.  For  purposes
33    of   this  Section,  any  partial  payment  not  specifically
                            -185-         SRS90HB0362JJsaam02
 1    identified by the purchaser shall be deemed  to  be  for  the
 2    delivery of electricity.
 3        Section  2-9.   Return  and  payment of tax by delivering
 4    supplier.   Each  delivering  supplier  who  is  required  or
 5    authorized  to collect the tax imposed by this Law shall make
 6    a return to the Department on or before the 15th day of  each
 7    month for the preceding calendar month stating the following:
 8        (1)  The delivering supplier's name.
 9        (2)  The  address  of the delivering supplier's principal
10    place of business and the address of the principal  place  of
11    business  (if  that  is  a  different address) from which the
12    delivering supplier engaged in  the  business  of  delivering
13    electricity in this State.
14        (3)  The   total  number  of   kilowatt-hours  which  the
15    supplier delivered to or for purchasers during the  preceding
16    calendar  month  and  upon  the  basis  of  which  the tax is
17    imposed.
18        (4)  Amount of tax, computed upon Item (3) at  the  rates
19    stated in Section 2-4.
20        (5)  An  adjustment  for  uncollectible amounts of tax in
21    respect of prior period kilowatt-hour deliveries,  determined
22    in  accordance  with rules and regulations promulgated by the
23    Department.
24        (6)  Such other information as the Department  reasonably
25    may require.
26        In making such return the delivering supplier may use any
27    reasonable  method to derive reportable "kilowatt-hours" from
28    the delivering supplier's records.
29        If the average monthly tax liability to the Department of
30    the  delivering  supplier  does  not   exceed   $2,500,   the
31    Department may authorize the delivering supplier's returns to
32    be  filed  on  a  quarter-annual  basis,  with the return for
33    January, February and March of a  given  year  being  due  by
                            -186-         SRS90HB0362JJsaam02
 1    April  30  of  such  year; with the return for April, May and
 2    June of a given year being due by July 31 of such year;  with
 3    the  return  for  July,  August and September of a given year
 4    being due by October 31 of such year; and with the return for
 5    October, November and December of a given year being  due  by
 6    January 31 of the following year.
 7        If the average monthly tax liability to the Department of
 8    the   delivering   supplier   does  not  exceed  $1,000,  the
 9    Department may authorize the delivering supplier's returns to
10    be filed on an annual basis, with the return for a given year
11    being due by January 31 of the following year.
12        Such quarter-annual and annual returns, as  to  form  and
13    substance,  shall  be  subject  to  the  same requirements as
14    monthly returns.
15        Notwithstanding  any  other   provision   in   this   Law
16    concerning  the  time within which a  delivering supplier may
17    file a return, any such delivering  supplier  who  ceases  to
18    engage   in  a  kind  of  business  which  makes  the  person
19    responsible for filing returns under this Law  shall  file  a
20    final return under this Law with the Department not more than
21    one month after discontinuing such business.
22        Each  delivering supplier whose average monthly liability
23    to the Department under this Law was $10,000 or  more  during
24    the  preceding  calendar year, excluding the month of highest
25    liability and the month of lowest liability in such  calendar
26    year,  and who is not operated by a unit of local government,
27    shall make estimated payments to the Department on or  before
28    the  7th,  15th,  22nd and last day of the month during which
29    tax liability to the Department is incurred in an amount  not
30    less  than  the  lower  of  either  22.5%  of such delivering
31    supplier's actual tax liability for the month or 25% of  such
32    delivering  supplier's  actual  tax  liability  for  the same
33    calendar month of the preceding year.   The  amount  of  such
34    quarter-monthly  payments shall be credited against the final
                            -187-         SRS90HB0362JJsaam02
 1    tax liability of such delivering supplier's return  for  that
 2    month.  An outstanding credit approved by the Department or a
 3    credit  memorandum issued by the Department arising from such
 4    delivering supplier's overpayment of his  or  her  final  tax
 5    liability  for  any month may be applied to reduce the amount
 6    of any subsequent quarter-monthly payment or credited against
 7    the final tax liability of such delivering supplier's  return
 8    for  any subsequent month.  If any quarter-monthly payment is
 9    not paid at the time  or  in  the  amount  required  by  this
10    Section, such delivering supplier shall be liable for penalty
11    and interest on the difference between the minimum amount due
12    as  a  payment  and  the  amount of such payment actually and
13    timely paid, except insofar as such delivering  supplier  has
14    previously  made payments for that month to the Department in
15    excess of the minimum payments previously due.
16        If the Director finds that the information  required  for
17    the  making  of  an  accurate  return  cannot  reasonably  be
18    compiled by such delivering supplier within 15 days after the
19    close of the calendar month for which a return is to be made,
20    the Director may grant an extension of time for the filing of
21    such return for a period not to exceed 31 calendar days.  The
22    granting  of  such  an  extension may be conditioned upon the
23    deposit by such delivering supplier with the Department of an
24    amount of money not exceeding the  amount  estimated  by  the
25    Director  to  be  due  with the return so extended.  All such
26    deposits shall be credited against such delivering supplier's
27    liabilities under this Law.   If  the  deposit  exceeds  such
28    delivering supplier's present and probable future liabilities
29    under this Law, the Department shall issue to such delivering
30    supplier  a  credit memorandum, which may be assigned by such
31    delivering supplier to a similar person under  this  Law,  in
32    accordance  with  reasonable  rules  and  regulations  to  be
33    prescribed by the Department.
34        The delivering supplier making the return provided for in
                            -188-         SRS90HB0362JJsaam02
 1    this Section shall, at the time of making such return, pay to
 2    the Department the amount of tax imposed by this Law.
 3        A  delivering  supplier  who  has  an average monthly tax
 4    liability  of  $10,000  or  more  shall  make  all   payments
 5    required  by  rules  of  the  Department  by electronic funds
 6    transfer.  The term "average monthly tax liability" shall  be
 7    the  sum  of the delivering supplier's liabilities under this
 8    Law for the immediately preceding calendar  year  divided  by
 9    12.   Any  delivering  supplier not required to make payments
10    by electronic funds transfer may make payments by  electronic
11    funds  transfer  with  the permission of the Department.  All
12    delivering suppliers required to make payments by  electronic
13    funds  transfer  and  any  delivering suppliers authorized to
14    voluntarily make payments by electronic funds transfer  shall
15    make   those   payments  in  the  manner  authorized  by  the
16    Department.
17        Each month the  Department  shall  pay  into  the  Public
18    Utility  Fund  in  the State treasury an amount determined by
19    the Director to be equal to 3.0% of the funds received by the
20    Department pursuant to this Section.  The  remainder  of  all
21    moneys received by the Department under this Section shall be
22    paid into the General Revenue Fund in the State treasury.
23        Section  2-10.  Election  to be self-assessing purchaser.
24    Any purchaser for non-residential electric use may  elect  to
25    register  with  the  Department as a self-assessing purchaser
26    and to pay the tax imposed by Section  2-4  directly  to  the
27    Department,   at   the   rate  stated  in  that  Section  for
28    self-assessing purchasers, rather than paying the tax to such
29    purchaser's delivering supplier.  The election by a purchaser
30    to register as a self-assessing purchaser may not be  revoked
31    by  the  purchaser  for  at  least  12  months thereafter.  A
32    purchaser  who  revokes  his  or  her   registration   as   a
33    self-assessing purchaser shall not thereafter be permitted to
                            -189-         SRS90HB0362JJsaam02
 1    register  as a self-assessing purchaser within the succeeding
 2    12 months.  A self-assessing purchaser shall renew his or her
 3    registration every 12 months, or the  registration  shall  be
 4    deemed to be revoked.
 5        Section    2-10.5.     Registration   of   self-assessing
 6    purchaser.  Application for a certificate of registration  as
 7    a  self-assessing  purchaser  shall be made to the Department
 8    upon forms furnished by the Department and shall contain  any
 9    reasonable  information  the  Department  may  require.  Upon
10    receipt of the application for a certificate of  registration
11    in  proper form and payment of a bi-annual renewal fee not to
12    exceed $200, the Department shall issue to  the  applicant  a
13    certificate  of  registration that permits the person to whom
14    it was  issued  to  pay  the  tax  incurred  under  this  Law
15    directly  to  the  Department  for  a  period  of 2 years.  A
16    certificate  of  registration  under   this   Section   shall
17    automatically  be  renewed, subject to revocation as provided
18    by this Law, for additional 2-year periods from the  date  of
19    its   expiration unless otherwise notified by the Department.
20        Upon the expiration or revocation  of  a  certificate  of
21    registration  as  a  self-assessing  purchaser, the person to
22    whom such certificate had been issued shall  provide  written
23    notice  of the expiration or revocation of the certificate to
24    that person's delivering supplier or suppliers.
25        The Department may deny a certificate of registration  to
26    any    applicant  if  the  owner, any partner, any manager or
27    member  of  a  limited  liability  company,  or  a  corporate
28    officer  of    the  applicant,  is  or  has been the owner, a
29    partner, a  manager or member of a limited liability company,
30    or a  corporate officer, of another self-assessing  purchaser
31    that  is in default for moneys due under this Law.
32        Any  person  aggrieved  by any decision of the Department
33    under  this Section may, within 20 days after notice of  such
                            -190-         SRS90HB0362JJsaam02
 1    decision,  protest  and  request  a  hearing,  whereupon  the
 2    Department  shall  give notice to such person of the time and
 3    place fixed for such hearing and  shall  hold  a  hearing  in
 4    conformity  with  the  provisions  of this Law and then issue
 5    its final administrative  decision  in  the  matter  to  such
 6    person.  In the absence of such a protest within 20 days, the
 7    Department's decision shall become final without any  further
 8    determination being made or notice given.
 9        Section    2-10.6.     Revocation   of   certificate   of
10    registration.   The  Department  may,  after  notice  and   a
11    hearing   as  provided  herein,  revoke  the  certificate  of
12    registration  of  any  person  who  violates   any   of   the
13    provisions  of  this  Law. Before revocation of a certificate
14    of registration the Department shall, within  90  days  after
15    non-compliance  and  at least 7 days prior to the date of the
16    hearing, give the person so accused notice in writing of  the
17    charge  against  him or her, and on the date designated shall
18    conduct a hearing upon this matter.  The  lapse  of  such  90
19    day  period shall not preclude the Department from conducting
20    revocation proceedings at a later  date  if  necessary.   Any
21    hearing  held  under  this  Section shall be conducted by the
22    Director of Revenue or by any  officer  or  employee  of  the
23    Department   designated,  in  writing,  by  the  Director  of
24    Revenue.
25        Upon the hearing of any such proceeding, the Director  of
26    Revenue,  or  any  officer  or  employee  of  the  Department
27    designated, in writing,  by  the  Director  of  Revenue,  may
28    administer  oaths,  and  the  Department  may  procure by its
29    subpoena the attendance of witnesses  and,  by  its  subpoena
30    duces  tecum,  the  production  of relevant books and papers.
31    Any circuit court, upon application either of the accused  or
32    of  the  Department,  may, by order duly entered, require the
33    attendance of witnesses and the production of relevant  books
                            -191-         SRS90HB0362JJsaam02
 1    and  papers, before the Department in any hearing relating to
 2    the revocation of certificates of registration. Upon  refusal
 3    or  neglect  to  obey  the  order of the court, the court may
 4    compel obedience thereof by proceedings for contempt.
 5        Section   2-11.    Direct   return   and    payment    by
 6    self-assessing   purchaser.   When  electricity  is  used  or
 7    consumed by a self-assessing purchaser  subject  to  the  tax
 8    imposed  by  this Law who did not pay the tax to a delivering
 9    supplier maintaining a place of business  within  this  State
10    and   required   or  authorized  to  collect  the  tax,  that
11    self-assessing purchaser shall, on or before the 15th day  of
12    each month, make a return to the Department for the preceding
13    calendar month, stating all of the following:
14             (1)  The   self-assessing   purchaser's   name   and
15        principal address.
16             (2)  The   aggregate  purchase  price  paid  by  the
17        self-assessing purchaser for  the  distribution,  supply,
18        furnishing,  sale,  transmission  and  delivery  of  such
19        electricity  to or for the purchaser during the preceding
20        calendar  month,  including   budget   plan   and   other
21        purchaser-owned  amounts  applied  during  such  month in
22        payment of charges includible in the purchase price,  and
23        upon the basis of which the tax is imposed.
24             (3)  Amount of tax, computed upon Item 2 at the rate
25        stated in Section 2-4.
26             (4)  Such   other   information  as  the  Department
27        reasonably may require.
28        In making such return the  self-assessing  purchaser  may
29    use  any  reasonable  method  to  derive reportable "purchase
30    price" from the self-assessing purchaser's  records.
31        If   the   average   monthly   tax   liability   of   the
32    self-assessing purchaser to the Department  does  not  exceed
33    $2,500,  the  Department  may  authorize  the  self-assessing
                            -192-         SRS90HB0362JJsaam02
 1    purchaser's  returns  to  be filed on a quarter-annual basis,
 2    with the return for January, February and March  of  a  given
 3    year  being due by April 30 of such year; with the return for
 4    April, May and June of a given year being due by July  31  of
 5    such year; with the return for July, August, and September of
 6    a  given  year being due by October 31 of such year; and with
 7    the return for October, November and December of a given year
 8    being due by January 31 of the following year.
 9        If   the   average   monthly   tax   liability   of   the
10    self-assessing purchaser to the Department  does  not  exceed
11    $1,000,  the  Department  may  authorize  the  self-assessing
12    purchaser's  returns to be filed on an annual basis, with the
13    return for a given year  being  due  by  January  31  of  the
14    following year.
15        Such  quarter-annual  and  annual returns, as to form and
16    substance, shall be  subject  to  the  same  requirements  as
17    monthly returns.
18        Notwithstanding   any   other   provision   in  this  Law
19    concerning the time within which a  self-assessing  purchaser
20    may  file  a  return,  any  such self-assessing purchaser who
21    ceases to be responsible for filing returns  under  this  Law
22    shall  file a final return under this Law with the Department
23    not more than one month thereafter.
24        Each  self-assessing  purchaser  whose  average   monthly
25    liability  to  the  Department  pursuant  to this Section was
26    $10,000 or more during the preceding calendar year, excluding
27    the month of  highest  liability  and  the  month  of  lowest
28    liability  during  such  calendar  year,  and  which  is  not
29    operated  by a unit of local government, shall make estimated
30    payments to the Department on or before the 7th,  15th,  22nd
31    and  last  day of the month during which tax liability to the
32    Department is incurred in an amount not less than  the  lower
33    of either 22.5% of such self-assessing purchaser's actual tax
34    liability  for  the  month  or  25%  of  such  self-assessing
                            -193-         SRS90HB0362JJsaam02
 1    purchaser's  actual tax liability for the same calendar month
 2    of the preceding year.  The amount  of  such  quarter-monthly
 3    payments shall be credited against the final tax liability of
 4    the  self-assessing  purchaser's  return  for that month.  An
 5    outstanding credit approved by the  Department  or  a  credit
 6    memorandum   issued   by  the  Department  arising  from  the
 7    self-assessing purchaser's overpayment of the  self-assessing
 8    purchaser's  final tax liability for any month may be applied
 9    to  reduce  the  amount  of  any  subsequent  quarter-monthly
10    payment or credited against the final tax liability  of  such
11    self-assessing  purchaser's  return for any subsequent month.
12    If any quarter-monthly payment is not paid at the time or  in
13    the  amount  required  by  this Section, such person shall be
14    liable for penalty and interest on the difference between the
15    minimum amount due as  a  payment  and  the  amount  of  such
16    payment  actually  and  timely  paid,  except insofar as such
17    person has previously made payments for  that  month  to  the
18    Department in excess of the minimum payments previously due.
19        If  the  Director finds that the information required for
20    the  making  of  an  accurate  return  cannot  reasonably  be
21    compiled by a self-assessing purchaser within 15  days  after
22    the  close  of the calendar month for which a return is to be
23    made, the Director may grant an extension  of  time  for  the
24    filing  of  such  return  for  a  period  of not to exceed 31
25    calendar days.  The granting of  such  an  extension  may  be
26    conditioned upon the deposit by such self-assessing purchaser
27    with  the  Department of an amount of money not exceeding the
28    amount estimated by the Director to be due with the return so
29    extended.  All such deposits shall be credited  against  such
30    self-assessing  purchaser's  liabilities  under this Law.  If
31    the deposit exceeds such self-assessing  purchaser's  present
32    and   probable   future   liabilities  under  this  Law,  the
33    Department shall issue to  such  self-assessing  purchaser  a
34    credit   memorandum,   which   may   be   assigned   by  such
                            -194-         SRS90HB0362JJsaam02
 1    self-assessing purchaser to a similar person under this  Law,
 2    in  accordance  with  reasonable  rules and regulations to be
 3    prescribed by the Department.
 4        The self-assessing purchaser making the  return  provided
 5    for in this Section shall, at the time of making such return,
 6    pay to the Department the amount of tax imposed by this Law.
 7        A self-assessing purchaser who has an average monthly tax
 8    liability   of  $10,000  or  more  shall  make  all  payments
 9    required by rules  of  the  Department  by  electronic  funds
10    transfer.   The term "average monthly tax liability" shall be
11    the sum of the self-assessing purchaser's  liabilities  under
12    this  Law for the immediately preceding calendar year divided
13    by 12.  Any self-assessing purchaser  not  required  to  make
14    payments  by  electronic  funds transfer may make payments by
15    electronic  funds  transfer  with  the  permission   of   the
16    Department.   All  self-assessing purchasers required to make
17    payments by electronic funds transfer and any  self-assessing
18    purchasers   authorized   to  voluntarily  make  payments  by
19    electronic funds transfer shall make those  payments  in  the
20    manner authorized by the Department.
21        Each  month  the  Department  shall  pay  into the Public
22    Utility Fund in the State treasury an  amount  determined  by
23    the Director to be equal to 3.0% of the funds received by the
24    Department  pursuant  to  this Section.  The remainder of all
25    moneys received by the Department under this Section shall be
26    paid into the General Revenue Fund in the State treasury.
27        Section 2-12.  Applicability of Retailers' Occupation Tax
28    Act, Public Utilities Revenue Act  and  Uniform  Penalty  and
29    Interest  Act.  The  Department  shall  have  full  power  to
30    administer  and  enforce  this  Law;  to  collect  all taxes,
31    penalties and interest due hereunder; to  dispose  of  taxes,
32    penalties  and  interest  so  collected  in the manner herein
33    provided; and to determine all rights to credit memoranda  or
                            -195-         SRS90HB0362JJsaam02
 1    refunds  arising  on account of the erroneous payment of tax,
 2    penalty or interest hereunder.
 3        All of the provisions of Sections 4 (except that the time
 4    limitation provisions shall run from the date when the tax is
 5    due rather  than  from  the  date  when  gross  receipts  are
 6    received),  5  (except that the time limitation provisions on
 7    the issuances of notices of tax liability shall run from  the
 8    date when the tax is due rather than from the date when gross
 9    receipts  are  received  and  except  that  in  the case of a
10    failure to file a return required by this Law, no  notice  of
11    tax  liability  shall  be issued on and after each July 1 and
12    January 1 covering tax due with that return during any  month
13    or  period more than 6 years before that July 1 or January 1,
14    respectively, and except that the 30% penalty provided for in
15    Section 5 shall not apply), 5a, 5b, 5c, 5d, 5e,  5f,  5g,  5i
16    and  5j of the Retailers' Occupation Tax Act, and Sections 6,
17    8, 9, 10 and 11 of the Public Utilities  Revenue  Act,  which
18    are  not  inconsistent with this Law, and the Uniform Penalty
19    and Interest Act shall apply, as far as practicable,  to  the
20    subject  matter  of  this  Law  to the same extent as if such
21    provisions  were  included  herein.    References   in   such
22    incorporated  Sections  of  the Retailers' Occupation Tax Act
23    and Public Utilities Revenue Act  and  to  taxpayers  and  to
24    persons  engaged in the business of selling tangible personal
25    property at  retail  means  both  purchasers  and  delivering
26    suppliers  maintaining  a place of business in this State, as
27    required by the particular context, when used  in  this  Law.
28    References  in  such  incorporated Sections of the Retailers'
29    Occupation Tax Act and Public Utilities Revenue Act to  gross
30    receipts  and to gross receipts received means purchase price
31    or kilowatt-hours used  or  consumed  by  the  purchaser,  as
32    required by the particular context.
33        Section  2-13.   Inspection  of  books and records. Every
                            -196-         SRS90HB0362JJsaam02
 1    delivering supplier maintaining a place of business  in  this
 2    State  who  is obligated to collect and remit the tax imposed
 3    on  a  purchaser  by  this  Law,  and  every   self-assessing
 4    purchaser who is obligated to pay the tax imposed by this Law
 5    directly  to  the  Department,  shall  keep   books, records,
 6    papers and other documents which are adequate to reflect  the
 7    information   which  such  supplier  or  such  self-assessing
 8    purchaser, as the case may be, is required by Section 2-9  or
 9    Section  2-11  of  this  Law  to  report to the Department by
10    filing  returns with the Department. All  books  and  records
11    and  other  papers  and  documents required by this Law to be
12    kept shall be kept in the English language and shall, at  all
13    times  during  business  hours  of  the  day,  be  subject to
14    inspection by the Department or its  duly  authorized  agents
15    and  employees.   Books and records reflecting purchase price
16    paid and kilowatt-hours delivered, used  or  consumed  during
17    any period with respect to which the Department is authorized
18    to  establish  liability as provided  in Section 2-12 of this
19    Law shall be preserved until the expiration  of  such  period
20    unless   the   Department,   in   writing,  authorizes  their
21    destruction or disposal at an earlier date.
22        The Department may, upon  written  authorization  of  the
23    Director,  destroy  any  returns  or  any  records, papers or
24    memoranda pertaining to such returns upon the  expiration  of
25    any  period covered by such returns with respect to which the
26    Department is authorized to establish liability.
27        Section 2-14.  Rules  and  regulations;  hearing;  review
28    under  Administrative  Review  Law;  death or incompetency of
29    party. The Department may make, promulgate and  enforce  such
30    reasonable    rules   and   regulations   relating   to   the
31    administration and enforcement of this Law as may  be  deemed
32    expedient.
33        Whenever  notice  to  a  purchaser  or  to  a  delivering
                            -197-         SRS90HB0362JJsaam02
 1    supplier  is  required  by  this  Law,  such  notice  may  be
 2    personally  served  or  given  by  United States certified or
 3    registered mail, addressed to  the  purchaser  or  delivering
 4    supplier  concerned  at  his  or  her last known address, and
 5    proof of such mailing shall be sufficient for the purposes of
 6    this Law.  In the case of a notice  of  hearing,  the  notice
 7    shall be mailed not less than 21 days prior to the date fixed
 8    for the hearing.
 9        All  hearings  provided for in this Law with respect to a
10    purchaser or to a delivering supplier  having  its  principal
11    address  or principal place of business in any of the several
12    counties of this State shall be held in  the  county  wherein
13    the  purchaser  or  delivering  supplier  has  its  principal
14    address  or principal place of business.  If the purchaser or
15    delivering supplier does not have its  principal  address  or
16    principal  place  of  business  in  this State, such hearings
17    shall be held in Sangamon County.  The Circuit Court  of  any
18    county  wherein  a hearing is held shall have power to review
19    all final  administrative  decisions  of  the  Department  in
20    administering  the  provisions of this Law.  If, however, the
21    administrative proceeding which is to be reviewed  judicially
22    is a claim for refund proceeding commenced in accordance with
23    this  Law  and Section 2a of the State Officers and Employees
24    Money Disposition Act, the Circuit Court having  jurisdiction
25    of  the  action  for  judicial  review under this Section and
26    under the Administrative Review Law shall be the  same  court
27    that  entered  the temporary restraining order or preliminary
28    injunction which is provided for in Section 2a of  the  State
29    Officers  and  Employees  Money  Disposition  Act  and  which
30    enables such claim proceeding to be processed and disposed of
31    as  a  claim for refund proceeding rather than as a claim for
32    credit proceeding.
33        The provisions of the Administrative Review Law, and  the
34    rules adopted pursuant thereto, shall apply to and govern all
                            -198-         SRS90HB0362JJsaam02
 1    proceedings  for  the judicial review of final administrative
 2    decisions   of   the   Department   hereunder.    The    term
 3    "administrative  decision"  is defined as in Section 3-101 of
 4    the Code of Civil Procedure.
 5        Service upon the Director or Assistant  Director  of  the
 6    Department  of  Revenue  of  summons  issued in any action to
 7    review a final administrative decision is  service  upon  the
 8    Department.   The  Department shall certify the record of its
 9    proceedings if the person commencing such action shall pay to
10    it the sum of 75 cents per page of testimony taken before the
11    Department and  25  cents  per  page  of  all  other  matters
12    contained  in  such  record, except that these charges may be
13    waived where the Department is satisfied that  the  aggrieved
14    party is a poor person who cannot afford to pay such charges.
15        Whenever  any  proceeding  provided  by this Law has been
16    begun by the Department or by a person  subject  thereto  and
17    such  person  thereafter dies or becomes a person under legal
18    disability before the  proceeding  has  been  concluded,  the
19    legal representative of the deceased person or a person under
20    legal disability shall notify the Department of such death or
21    legal  disability.  The  legal representative, as such, shall
22    then be substituted by the Department in place of and for the
23    person.
24        Within 20 days after notice to the  legal  representative
25    of  the  time  fixed  for  that  purpose,  the proceeding may
26    proceed in all respects and with like effect  as  though  the
27    person   had   not  died  or  become  a  person  under  legal
28    disability.
29        Section 2-15.   Illinois  Administrative  Procedure  Act;
30    application.   The  Illinois  Administrative Procedure Act is
31    hereby   expressly   adopted   and   shall   apply   to   all
32    administrative rules and procedures of the  Department  under
33    this  Law, except that:  (1) paragraph (b) of Section 5-10 of
                            -199-         SRS90HB0362JJsaam02
 1    the Illinois Administrative Procedure Act does not  apply  to
 2    final  orders,  decisions and opinions of the Department, (2)
 3    subparagraph  (a)(ii)  of  Section  5-10  of   the   Illinois
 4    Administrative   Procedure   Act  does  not  apply  to  forms
 5    established by the Department for use under this Law, and (3)
 6    the   provisions   of   Section   10-45   of   the   Illinois
 7    Administrative Procedure Act regarding proposals for decision
 8    are excluded and not applicable to the Department under  this
 9    Law.
10        Section  2-16.   Violations.  Any purchaser or delivering
11    supplier who is required to but fails to make  a  return,  or
12    who  makes  a fraudulent return, or who wilfully violates any
13    other provision of this Law or any rule or regulation of  the
14    Department  for  the  administration  and enforcement of this
15    Law, is guilty of a business  offense  and,  upon  conviction
16    thereof,  shall  be  fined  not  less than $750 nor more than
17    $7,500.
18        Section  2-17.   Office  of  Attorney  General;  Consumer
19    Utilities Unit.  From the moneys collected  under  this  Law,
20    the  General  Assembly shall appropriate sufficient moneys to
21    the Office of the Attorney General to pay the expenses of the
22    Consumer Utilities Unit incurred in the  performance  of  its
23    duties under Section 6.5 of the Attorney General Act.
24                              ARTICLE 3
25        Section  25.  The Public Utilities Revenue Act is amended
26    by changing Sections 1, 2a.1,  2a.2,  5,  and  7  and  adding
27    Section 1a as follows:
28        (35 ILCS 620/1) (from Ch. 120, par. 468)
29        Sec. 1. For the purposes of this Law:
                            -200-         SRS90HB0362JJsaam02
 1        "Consumer Price Index" means the Consumer Price Index For
 2    All  Urban  Consumers  for  all items published by the United
 3    States Department of Labor; provided that if  this  index  no
 4    longer  exists, the Department of Revenue shall prescribe the
 5    use of a comparable, substitute index.
 6        "Gross receipts" means  the  consideration  received  for
 7    electricity  distributed,  supplied,  furnished  or  sold  to
 8    persons  for  use  or consumption and not for resale, and for
 9    all services (including the transmission of  electricity  for
10    an  end-user)  rendered in connection therewith, and includes
11    cash, services and property of  every  kind  or  nature,  and
12    shall  be  determined without any deduction on account of the
13    cost of the service, product or commodity supplied, the  cost
14    of  materials  used,  labor  or  service  costs, or any other
15    expense  whatsoever.  However,  "gross  receipts"  shall  not
16    include receipts from:
17             (i)  any minimum or other charge for electricity  or
18        electric   service   where  the  customer  has  taken  no
19        kilowatt-hours of electricity;
20             (ii)  any charge for a dishonored check;
21             (iii)  any finance  or  credit  charge,  penalty  or
22        charge  for  delayed  payment,  or  discount  for  prompt
23        payment;
24             (iv)  any  charge for reconnection of service or for
25        replacement or relocation of facilities;
26             (v)  any  advance  or   contribution   in   aid   of
27        construction;
28             (vi)  repair,  inspection  or servicing of equipment
29        located on customer premises;
30             (vii)  leasing or rental of equipment,  the  leasing
31        or  rental  of  which  is  not necessary to distributing,
32        furnishing,   supplying,    selling    or    transporting
33        electricity;
34             (viii)  any  sale  to  a customer if the taxpayer is
                            -201-         SRS90HB0362JJsaam02
 1        prohibited by  federal  or  State  constitution,  treaty,
 2        convention, statute or court decision from recovering the
 3        related tax liability from such customer; and
 4             (ix)  any charges added to customers' bills pursuant
 5        to  the  provisions  of Section 9-221 or Section 9-222 of
 6        the Public Utilities Act,  as  amended,  or  any  charges
 7        added  to  customers'  bills  by  taxpayers  who  are not
 8        subject to  rate  regulation  by  the  Illinois  Commerce
 9        Commission  for  the purpose of recovering any of the tax
10        liabilities or other amount specified in such  provisions
11        of  such  Act.  In  case  credit  is extended, the amount
12        thereof shall be included only as and when  payments  are
13        received.
14        "Gross receipts" shall not include consideration received
15    from  business enterprises certified under Section 9-222.1 of
16    the Public Utilities Act, as amended, to the extent  of  such
17    exemption  and  during  the  period  of time specified by the
18    Department of Commerce and Community Affairs.
19        "Department" means the Department of Revenue of the State
20    of Illinois.
21        "Director"  means  the  Director  of  Revenue   for   the
22    Department of Revenue of the State of Illinois.
23        "Distributing   electricity"  means  delivering  electric
24    energy to an end  user  over  facilities  owned,  leased,  or
25    controlled by the taxpayer.
26        "Taxpayer" for purposes of the tax on the distribution of
27    electricity   imposed   by   this   Act   means  an  electric
28    cooperative, an electric utility, or  an  alternative  retail
29    electric supplier (other than a person that is an alternative
30    retail electric supplier solely pursuant to subsection (e) of
31    Section  16-115  of the Public Utilities Act), as those terms
32    are defined in the Public Utilities Act, a person engaged  in
33    the   business  of  distributing,  supplying,  furnishing  or
34    selling electricity in this State for use or consumption  and
                            -202-         SRS90HB0362JJsaam02
 1    not for resale.
 2        "Taxpayer"  for  purposes of the Public Utilities Revenue
 3    Tax means a person engaged in the business  of  distributing,
 4    suppling,  furnishing  or  selling  electricity  for  use  or
 5    consumption and not for resale.
 6        "Person"  means  any  natural  individual,  firm,  trust,
 7    estate,  partnership, association, joint stock company, joint
 8    adventure,  corporation,  limited  liability  company,  or  a
 9    receiver, trustee, guardian or other representative appointed
10    by order of any court, or any city,  town,  county  or  other
11    political subdivision of this State.
12        "Invested  capital"  means  that  amount equal to (i) the
13    average of the balances at the  beginning  and  end  of  each
14    taxable  period  of the taxpayer's total stockholder's equity
15    and total long-term debt, less investments in and advances to
16    all corporations, as set forth on the balance sheets included
17    in the taxpayer's annual  report  to  the  Illinois  Commerce
18    Commission  for  the  taxable  period;  (ii)  multiplied by a
19    fraction determined under Sections  301  and  304(a)  of  the
20    "Illinois Income Tax Act" and reported on the Illinois income
21    tax  return  for  the  taxable  period  ending in or with the
22    taxable period  in  question.  However,  notwithstanding  the
23    income   tax   return  reporting  requirement  stated  above,
24    beginning July 1, 1979, no taxpayer's  denominators  used  to
25    compute   the   sales,  property  or  payroll  factors  under
26    subsection (a) of Section 304 of the Illinois Income Tax  Act
27    shall  include  payroll,  property  or sales of any corporate
28    entity  other  than  the  taxpayer  for   the   purposes   of
29    determining  an allocation for the invested capital tax. This
30    amendatory Act of 1982, Public Act 82-1024, is  not  intended
31    to  and  does  not  make  any  change  in  the meaning of any
32    provision of this Act, it  having  been  the  intent  of  the
33    General  Assembly  in  initially  enacting  the definition of
34    "invested  capital"  to  provide  for  apportionment  of  the
                            -203-         SRS90HB0362JJsaam02
 1    invested capital of  each  company,  based  solely  upon  the
 2    sales,  property  and payroll of that company. in the case of
 3    an electric cooperative subject to the tax imposed by Section
 4    2a.1, "invested capital" means an amount equal to the product
 5    determined by multiplying, (i) the average of the balances at
 6    the beginning and end of the taxable period of the taxpayer's
 7    total  equity  (including  memberships,  patronage   capital,
 8    operating  margins,  non-operating margins, other margins and
 9    other equities), as set forth on the balance sheets  included
10    in   the  taxpayer's  annual  report  to  the  United  States
11    Department   of   Agriculture   Rural   Utilities    Services
12    Electrification  Administration  (established pursuant to the
13    federal Rural Electrification Act of 1936,  as  amended),  by
14    (ii) the fraction determined under Sections 301 and 304(a) of
15    the  Illinois  Income  Tax  Act,  as amended, for the taxable
16    period.
17        "Taxable period" means each calendar  year  period  which
18    ends  after  the  effective  date  of  this  Act and which is
19    covered by an annual report filed by the taxpayer  with   the
20    Illinois  Commerce  Commission.   In  the case of an electric
21    cooperative subject to  the  tax  imposed  by  Section  2a.1,
22    "taxable  period"  means  each calendar year ending after the
23    effective date of this Act and covered by  an  annual  report
24    filed  by  the  taxpayer with the United States Department of
25    Agriculture   Rural   Utilities   Services    Electrification
26    Administration.
27    (Source: P.A. 88-480.)
28        (35 ILCS 620/1a new)
29        Sec.   1a.  Legislative  Intent.   The  General  Assembly
30    previously imposed a tax on the invested capital of  electric
31    utilities  to  replace in part the personal property tax that
32    was  abolished  by  the  Illinois   Constitution   of   1970.
33    Subsequent  to  the  enactment and imposition of the invested
                            -204-         SRS90HB0362JJsaam02
 1    capital tax on electric utilities,  State  and  federal  laws
 2    regulating  the  provision  of  electricity have been enacted
 3    which provide for the restructuring  of  the  electric  power
 4    industry  into  a  competitive industry.  In response to this
 5    restructuring, this amendatory Act of  1997  is  intended  to
 6    provide  for  a  replacement  for the invested capital tax on
 7    electric utilities, other  than  electric  cooperatives,  and
 8    replace   it  with  a  new  tax  based  on  the  quantity  of
 9    electricity that is delivered  in  this  State.  The  General
10    Assembly finds and declares that this new tax is a fairer and
11    more  equitable means to replace that portion of the personal
12    property tax that was abolished by the Illinois  Constitution
13    of  1970  and previously replaced by the invested capital tax
14    on  electric  utilities,  while  maintaining   a   comparable
15    allocation among electric utilities in this State for payment
16    of taxes imposed to replace the personal property tax.
17        (35 ILCS 620/2a.1) (from Ch. 120, par. 469a.1)
18        Sec.  2a.1.    Imposition  of tax on invested capital and
19    on distribution of electricity.
20        (a) In addition to the tax taxes imposed by the  Illinois
21    Income  Tax  Act  and  Section 2 of this Act, there is hereby
22    imposed upon every taxpayer persons engaged in  the  business
23    of distributing, supplying, furnishing or selling electricity
24    and  subject  to  the  tax imposed by this Act (other than an
25    electric cooperative, a school  district  or  unit  of  local
26    government  as  defined  in  Section  1 of Article VII of the
27    Illinois Constitution of 1970 and other than persons  subject
28    to  the  tax  imposed by Section 2a.1 of the "Gas Revenue Tax
29    Act), an additional tax as follows: in an amount equal to .8%
30    of such persons' invested capital for the taxable period.
31             (i)  For  the   first   500,000,000   kilowatt-hours
32        distributed  by  the  taxpayer  in  this State during the
33        taxable period, 0.031 cents per kilowatt-hour;
                            -205-         SRS90HB0362JJsaam02
 1             (ii)  For  the  next  1,000,000,000   kilowatt-hours
 2        distributed  by  the  taxpayer  in  this State during the
 3        taxable period, 0.050 cents per kilowatt-hour;
 4             (iii)  For  the  next  2,500,000,000  kilowatt-hours
 5        distributed by the taxpayer  in  this  State  during  the
 6        taxable period, 0.070 cents per kilowatt-hour;
 7             (iv)  For  the  next  4,000,000,000  killowatt-hours
 8        distributed  by  the  taxpayer  in  this State during the
 9        taxable period, 0.140 cents per kilowatt-hour;
10             (v)  For  the  next   7,000,000,000   kilowatt-hours
11        distributed  by  the  taxpayer  in  this State during the
12        taxable period, 0.180 cents per kilowatt-hour;
13             (vi)  For  the  next  3,000,000,000  killowatt-hours
14        distributed by the taxpayer  in  this  State  during  the
15        taxable period, 0.142 cents per kilowatt-hour; and
16             (vii)  For  all  kilowatt-hours  distributed  by the
17        taxpayer in this  State  during  the  taxable  period  in
18        excess  of 18,000,000,000 kilowatt-hours, 0.131 cents per
19        killowatt-hour.
20        (b)  There is imposed on electric cooperatives  that  are
21    required  to  file reports with the Rural Utilities Service a
22    tax equal to 0.8% of such cooperative's invested capital  for
23    the  taxable period. The invested capital tax imposed by this
24    subsection shall not be imposed on electric cooperatives  not
25    required to file reports with the Rural Utilities Service.
26        (c)  If,   for  any  taxable  period,  the  total  amount
27    received by the Department from the tax imposed by subsection
28    (a) exceeds $145,279,553 plus, for taxable periods subsequent
29    to 1998, an amount equal to the lesser of (i) 5% or (ii)  the
30    percentage  increase  in  the Consumer Price Index during the
31    immediately preceding taxable period,  of  the  total  amount
32    received by the Department from the tax imposed by subsection
33    (a)  for the immediately preceding taxable period, determined
34    after  allowance  of  the  credit  provided   for   in   this
                            -206-         SRS90HB0362JJsaam02
 1    subsection,  the  Department  shall issue credit memoranda in
 2    the aggregate amount of the excess to each of  the  taxpayers
 3    who  paid  any  amount  of  tax under subsection (a) for that
 4    taxable period in the proportion which the amount paid by the
 5    taxpayer  bears  to  the  total  amount  paid  by  all   such
 6    taxpayers.   Any credit memorandum issued to a taxpayer under
 7    this subsection may be used  as  a  credit  by  the  taxpayer
 8    against its liability in future taxable periods for tax under
 9    subsection  (a).  Any amount credited to a taxpayer shall not
10    be refunded to the taxpayer unless the taxpayer  demonstrates
11    to the reasonable satisfaction of the Department that it will
12    not incur future liability for tax under subsection (a).  The
13    Department   shall   adopt  reasonable  regulations  for  the
14    implementation of the provisions of this subsection.
15        If such persons are not liable for  such  additional  tax
16    for  the  entire taxable period, such additional tax shall be
17    computed on the portion of the taxable  period  during  which
18    such  persons  were  liable  for  such  additional  tax.  The
19    invested  capital  tax  imposed  by this Section shall not be
20    imposed upon persons who are not regulated  by  the  Illinois
21    Commerce  Commission  or who are not required, in the case of
22    electric  cooperatives,  to  file  reports  with  the   Rural
23    Electrification Administration.
24    (Source: P.A. 87-205; 87-313.)
25        (35 ILCS 620/2a.2) (from Ch. 120, par. 469a.2)
26        Sec.  2a.2.   Annual  return,  collection and payment.  A
27    return with respect to the tax imposed by Section 2a.1  shall
28    be made by every person for any taxable period for which such
29    person  is  liable for such tax. Such return shall be made on
30    such forms  as  the  Department  shall  prescribe  and  shall
31    contain the following information:
32             1.  Taxpayer's name;
33             2.  Address   of   taxpayer's   principal  place  of
                            -207-         SRS90HB0362JJsaam02
 1        business, and address of the principal place of  business
 2        (if  that is a different address) from which the taxpayer
 3        engages  in  the  business  of  distributing,  supplying,
 4        furnishing or selling electricity in this State;
 5             3.  The  total   proprietary   capital   and   total
 6        long-term debt as of the beginning and end of the taxable
 7        period as set forth on the balance sheets included in the
 8        taxpayer's   annual   report  to  the  Illinois  Commerce
 9        Commission (or, total equity, in  the  case  of  electric
10        cooperatives,  in the annual reports filed with the Rural
11        Utilities Service Electrification Administration) for the
12        taxable period;
13             3a.  The   total   kilowatt-hours   of   electricity
14        distributed  by  a  taxpayer,  other  than  an   electric
15        cooperative, in this State for the taxable period covered
16        by the return;
17             4.  The taxpayer's base income allocable to Illinois
18        under Sections 301 and 304(a) of the "Illinois Income Tax
19        Act", for the period covered by the return;
20             4.  5.  The amount of tax due for the taxable period
21        (computed on the basis of the amounts set forth in  Items
22        3 and 3a 4); and
23             5.  6.  Such  other reasonable information as may be
24        required  by  forms  or  regulations  prescribed  by  the
25        Department.
26        The returns prescribed by this Section shall be  due  and
27    shall  be  filed  with the Department not later than the 15th
28    day of the third month following the  close  of  the  taxable
29    period.   The  taxpayer making the return herein provided for
30    shall, at  the  time  of  making  such  return,  pay  to  the
31    Department the remaining amount of tax herein imposed and due
32    for  the  taxable period.  Each taxpayer shall make estimated
33    quarterly payments on the 15th day of the third, sixth, ninth
34    and twelfth months of each taxable  period.   Such  estimated
                            -208-         SRS90HB0362JJsaam02
 1    payments   shall   be  25%  of  the  tax  liability  for  the
 2    immediately preceding taxable period  or  the  tax  liability
 3    that  would  have  been  imposed in the immediately preceding
 4    taxable period if this amendatory Act of  1979  had  been  in
 5    effect.  All moneys received by the Department under Sections
 6    2a.1  and  2a.2  shall be paid into the Personal Property Tax
 7    Replacement Fund in the State Treasury.
 8    (Source: P.A. 87-205.)
 9        (35 ILCS 620/5) (from Ch. 120, par. 472)
10        Sec. 5. All of the provisions of Sections 4, (except that
11    the time limitation provisions shall run from the  date  when
12    the  tax is due rather than from the date when gross receipts
13    are received), 5 (except that the time limitation  provisions
14    on  the  issuance  of notices of tax liability shall run from
15    the date when the tax is due rather than from the  date  when
16    gross receipts are received and except that, in the case of a
17    failure  to  file a return required by this Act, no notice of
18    tax liability shall be issued  covering  tax  due  with  that
19    return  more than 6 years after the original due date of that
20    return, and except that  the  30%  penalty  provided  for  in
21    Section 5 shall not apply), 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i
22    and  5j  of  the Retailers' Occupation Tax Act, which are not
23    inconsistent with this Act, and Section 3-7  of  the  Uniform
24    Penalty  and Interest Act shall apply, as far as practicable,
25    to the subject matter of this Act to the same  extent  as  if
26    such  provisions  were  included  herein.  References in such
27    incorporated Sections of the Retailers' Occupation Tax Act to
28    retailers, to sellers or to persons engaged in  the  business
29    of selling tangible personal property mean persons engaged in
30    the   business  of  distributing,  supplying,  furnishing  or
31    selling electricity when used in this Act. References in such
32    incorporated Sections of the Retailers' Occupation Tax Act to
33    purchasers of tangible personal property mean  purchasers  of
                            -209-         SRS90HB0362JJsaam02
 1    electricity  when  used  in  this  Act.  References  in  such
 2    incorporated Sections of the Retailers' Occupation Tax Act to
 3    sales  of  tangible  personal property mean the distributing,
 4    supplying, furnishing or selling of electricity when used  in
 5    this Act.
 6    (Source: P.A. 87-205.)
 7        (35 ILCS 620/7) (from Ch. 120, par. 474)
 8        Sec.  7.  Every taxpayer under this Act shall keep books,
 9    records, papers and other documents  which  are  adequate  to
10    reflect  the information which such taxpayers are required by
11    Section 2a.2 3 of this Act to report  to  the  Department  by
12    filing  annual  monthly  returns  with  the  Department.  The
13    Department  may  adopt  rules  that  establish  requirements,
14    including  record  forms and formats, for records required to
15    be kept and maintained by taxpayers.  For  purposes  of  this
16    Section, "records" means all data maintained by the taxpayer,
17    including data on paper, microfilm, microfiche or any type of
18    machine-sensible  data compilation. All books and records and
19    other papers and documents required by this Act  to  be  kept
20    shall be kept in the English language and shall, at all times
21    during business hours of the day, be subject to inspection by
22    the  Department  or its duly authorized agents and employees.
23    Books and records reflecting  kilowatt-hours  of  electricity
24    distributed  gross  receipts  received during any period with
25    respect to which the Department is  authorized  to  establish
26    liability as provided in Section Sections 4 and 5 of this Act
27    shall be preserved until the expiration of such period unless
28    the  Department,  in writing, authorizes their destruction or
29    disposal at an earlier date.
30        The Department may, upon  written  authorization  of  the
31    Director,  destroy  any  returns  or  any  records, papers or
32    memoranda pertaining to such returns upon the  expiration  of
33    any  period covered by such returns with respect to which the
                            -210-         SRS90HB0362JJsaam02
 1    Department is authorized to establish liability.
 2    (Source: P.A. 88-480.)
 3        (35 ILCS 620/2 rep.)
 4        (35 ILCS 620/2a.3 rep.)
 5        (35 ILCS 620/3 rep.)
 6        Section 26.  The Public Utilities Revenue Act is  amended
 7    by repealing Sections 2, 2a.3, and 3.
 8        Section  30.   The  Gas  Revenue  Tax  Act  is amended by
 9    changing Section 2a.1 as follows:
10        (35 ILCS 615/2a.1) (from Ch. 120, par. 467.17a.1)
11        Sec. 2a.1.  Imposition of tax on  invested  capital.   In
12    addition  to the taxes imposed by the Illinois Income Tax Act
13    and Section 2 of this  Act,  there  is  hereby  imposed  upon
14    persons  engaged  in the business of distributing, supplying,
15    furnishing or selling gas and subject to the tax  imposed  by
16    this  Act  (other  than  a  school  district or unit of local
17    government as defined in Section 1  of  Article  VII  of  the
18    Illinois  Constitution  of  1970),  an  additional  tax in an
19    amount equal to .8% of such persons' invested capital for the
20    taxable period.  If such persons  are  not  liable  for  such
21    additional tax for the entire taxable period, such additional
22    tax  shall  be  computed on the portion of the taxable period
23    during which such persons were  liable  for  such  additional
24    tax.  The  invested capital tax imposed by this Section shall
25    not be imposed upon persons who  are  not  regulated  by  the
26    Illinois  Commerce  Commission.  Provided, in the case of any
27    person which is subject to the invested capital  tax  imposed
28    by  this  Section and which is also subject to the tax on the
29    distribution of electricity imposed by Section  2a.1  of  the
30    Public  Utilities  Revenue  Act,  the  invested  capital  tax
31    imposed  by  this Section shall be an amount equal to 0.8% of
                            -211-         SRS90HB0362JJsaam02
 1    such  person's  invested  capital  for  the  taxable   period
 2    multiplied  by  a  fraction  the  numerator  of  which is the
 3    average of the beginning and ending balances of such person's
 4    gross gas utility plant in service  and  the  denominator  of
 5    which  is the average of the beginning and ending balances of
 6    such  person's  gross  electric  and  gas  utility  plant  in
 7    service, as set forth in such person's annual report  to  the
 8    Illinois Commerce Commission for the taxable period.
 9    (Source: P.A. 87-205; 87-313.)
10        Section  35.   The  Public  Utilities  Act  is amended by
11    changing Section 2-202 as follow:
12        (220 ILCS 5/2-202) (from Ch. 111 2/3, par. 2-202)
13        Sec. 2-202. (a) It is declared to be the public policy of
14    this State that in order to maintain and foster the effective
15    regulation  of  public  utilities  under  this  Act  in   the
16    interests  of  the  People  of  the State of Illinois and the
17    public utilities as well, the  public  utilities  subject  to
18    regulation  under  this  Act and which enjoy the privilege of
19    operating as public utilities in this State, shall  bear  the
20    expense  of  administering this Act by means of a tax on such
21    privilege measured by the annual gross revenue of such public
22    utilities  in  the  manner  provided  in  this  Section.  For
23    purposes of this Section, "expense of administering this Act"
24    includes any costs incident to studies, whether made  by  the
25    Commission  or under contract entered into by the Commission,
26    concerning  environmental  pollution   problems   caused   or
27    contributed   to  by  public  utilities  and  the  means  for
28    eliminating or abating those problems. Such proceeds shall be
29    deposited in the Public Utility Fund in the State treasury.
30        (b)  All of the ordinary and contingent expenses  of  the
31    Commission  incident  to the administration of this Act shall
32    be  paid  out  of  the  Public  Utility   Fund   except   the
                            -212-         SRS90HB0362JJsaam02
 1    compensation  of the members of the Commission which shall be
 2    paid from the General  Revenue  Fund.  Notwithstanding  other
 3    provisions  of  this  Act  to  the contrary, the ordinary and
 4    contingent  expenses  of  the  Commission  incident  to   the
 5    administration  of the Illinois Commercial Transportation Law
 6    may be paid from appropriations from the Public Utility  Fund
 7    through the end of fiscal year 1986.
 8        (c)  A tax is imposed upon each public utility subject to
 9    the provisions of this Act equal to .08% of its gross revenue
10    for  each  calendar  year  commencing  with the calendar year
11    beginning January 1, 1982, except that the Commission may, by
12    rule, establish a different rate no greater  than  0.1%.  For
13    purposes  of  this Section, "gross revenue" shall not include
14    revenue  from  the  production,  transmission,  distribution,
15    sale, delivery, or furnishing of electricity.
16        (d)  Annual gross  revenue  returns  shall  be  filed  in
17    accordance with paragraph (1) or (2) of this subsection (d).
18             (1)  Except  as  provided  in  paragraph (2) of this
19        subsection (d), on or before January 10 of each year each
20        public utility subject to  the  provisions  of  this  Act
21        shall  file with the Commission an estimated annual gross
22        revenue return containing an estimate of  the  amount  of
23        its  gross  revenue  for  the  calendar  year  commencing
24        January  1  of said year and a statement of the amount of
25        tax due for said calendar  year  on  the  basis  of  that
26        estimate.  Public utilities may also file revised returns
27        containing  updated  estimates and updated amounts of tax
28        due during the calendar year. These revised  returns,  if
29        filed,  shall  form  the basis for quarterly payments due
30        during the remainder of the calendar year.  In  addition,
31        on  or  before  February  15  of  each  year, each public
32        utility shall file an amended return showing  the  actual
33        amount of gross revenues shown by the company's books and
34        records as of December 31 of the previous year. Forms and
                            -213-         SRS90HB0362JJsaam02
 1        instructions  for  such  estimated,  revised, and amended
 2        returns shall be devised and supplied by the Commission.
 3             (2)  Beginning January 1, 1993, the requirements  of
 4        paragraph  (1)  of this subsection (d) shall not apply to
 5        any public utility in any calendar  year  for  which  the
 6        total  tax  the public utility owes under this Section is
 7        less than $1,000.  For such public utilities with respect
 8        to such years, the public utility  shall  file  with  the
 9        Commission,  on  or  before  January  31 of the following
10        year, an annual gross revenue return for the year  and  a
11        statement  of the amount of  tax due for that year on the
12        basis of such a return. Forms and instructions  for  such
13        returns  and  corrected  returns  shall  be  devised  and
14        supplied by the Commission.
15        (e)  All  returns submitted to the Commission by a public
16    utility as provided in this subsection (e) or subsection  (d)
17    of  this  Section  shall  contain or be verified by a written
18    declaration by an appropriate officer of the  public  utility
19    that  the  return is made under the penalties of perjury. The
20    Commission may audit each  such  return  submitted  and  may,
21    under  the provisions of Section 5-101 of this Act, take such
22    measures as are necessary to ascertain the correctness of the
23    returns submitted. The Commission has the power to direct the
24    filing of a corrected return by any utility which  has  filed
25    an  incorrect  return and to direct the filing of a return by
26    any  utility  which  has  failed  to  submit  a  return.    A
27    taxpayer's  signing a fraudulent return under this Section is
28    perjury, as defined in Section 32-2 of the Criminal  Code  of
29    1961.
30        (f)  (1)  For  all  public utilities subject to paragraph
31    (1) of subsection (d), at least one  quarter  of  the  annual
32    amount  of  tax due under subsection (c) shall be paid to the
33    Commission on or before the  tenth  day  of  January,  April,
34    July,  and  October  of the calendar year subject to tax.  In
                            -214-         SRS90HB0362JJsaam02
 1    the event that an adjustment in the amount of tax due  should
 2    be  necessary  as  a  result  of  the filing of an amended or
 3    corrected return under subsection (d) or  subsection  (e)  of
 4    this  Section,  the amount of any deficiency shall be paid by
 5    the public utility together with  the  amended  or  corrected
 6    return  and  the amount of any excess shall, after the filing
 7    of a claim for credit by the public utility, be  returned  to
 8    the  public utility in the form of a credit memorandum in the
 9    amount of such excess or be refunded to the public utility in
10    accordance with the provisions  of  subsection  (k)  of  this
11    Section.   However, if such deficiency or excess is less than
12    $1, then the public utility need not pay the  deficiency  and
13    may not claim a credit.
14        (2)  Any  public  utility  subject  to  paragraph  (2) of
15    subsection  (d)  shall  pay  the  amount  of  tax  due  under
16    subsection (c) on or before January 31 next following the end
17    of the calendar year subject to tax.  In the  event  that  an
18    adjustment  in the amount of tax due should be necessary as a
19    result of the filing of a corrected return  under  subsection
20    (e), the amount of any deficiency shall be paid by the public
21    utility at the time the corrected return is filed. Any excess
22    tax  payment  by  the  public utility shall be returned to it
23    after the filing of a claim for credit,  in  the  form  of  a
24    credit  memorandum  in the amount of the excess.  However, if
25    such deficiency or excess is less than $1, the public utility
26    need not pay the deficiency and may not claim a credit.
27        (g)  Each installment or  required  payment  of  the  tax
28    imposed  by  subsection (c) becomes delinquent at midnight of
29    the date that it  is  due.  Failure  to  make  a  payment  as
30    required  by this Section shall result in the imposition of a
31    late payment penalty, an underestimation penalty, or both, as
32    provided by this subsection.  The late payment penalty  shall
33    be the greater of:
34             (1)  $25  for  each month or portion of a month that
                            -215-         SRS90HB0362JJsaam02
 1        the installment or required payment is unpaid or
 2             (2)  an amount equal to the difference between  what
 3        should  have  been  paid  on the due date, based upon the
 4        most recently filed estimate, and what was actually paid,
 5        times 1% one percent, for each  month  or  portion  of  a
 6        month  that  the  installment  or  required  payment goes
 7        unpaid.  This penalty may be  assessed  as  soon  as  the
 8        installment or required payment becomes delinquent.
 9        The  underestimation  penalty shall apply to those public
10    utilities subject to paragraph  (1)  of  subsection  (d)  and
11    shall  be  calculated after the filing of the amended return.
12    It shall be imposed if the amount actually paid on any of the
13    dates specified in subsection (f) is not equal  to  at  least
14    one-fourth of the amount actually due for the year, and shall
15    equal the greater of:
16             (1)  $25  for  each month or portion of a month that
17        the amount due is unpaid or
18             (2)  an amount equal to the difference between  what
19        should  have  been paid, based on the amended return, and
20        what was actually  paid  as  of  the  date  specified  in
21        subsection  (f),  times a percentage equal to 1/12 of the
22        sum of 10% and the percentage most  recently  established
23        by  the  Commission  for  interest to be paid on customer
24        deposits under 83 Ill. Adm. Code 280.70(e)(1),  for  each
25        month  or  portion  of  a  month that the amount due goes
26        unpaid, except that no underestimation penalty  shall  be
27        assessed if the amount actually paid on each of the dates
28        specified  in  subsection (f) was based on an estimate of
29        gross  revenues  at  least  equal  to  the  actual  gross
30        revenues  for  the  previous  year.  The  Commission  may
31        enforce the collection of any delinquent  installment  or
32        payment,  or  portion  thereof  by legal action or in any
33        other manner by which the collection  of  debts  due  the
34        State  of Illinois may be enforced under the laws of this
                            -216-         SRS90HB0362JJsaam02
 1        State. The executive director or his designee may  excuse
 2        the  payment of an assessed penalty if he determines that
 3        enforced collection of the penalty would be unjust.
 4        (h)  All sums  collected  by  the  Commission  under  the
 5    provisions  of  this Section shall be paid promptly after the
 6    receipt of the same,  accompanied  by  a  detailed  statement
 7    thereof, into the Public Utility Fund in the State treasury.
 8        (i)  During  the  month  of  October of each odd-numbered
 9    year the Commission shall:
10             (1)  determine the amount of all moneys deposited in
11        the Public  Utility  Fund  during  the  preceding  fiscal
12        biennium  plus  the  balance, if any, in that fund at the
13        beginning of that biennium;
14             (2)  determine the sum total of the following items:
15        (A)   all   moneys   expended   or   obligated    against
16        appropriations  made  from the Public Utility Fund during
17        the preceding fiscal biennium, plus (B) the  sum  of  the
18        credit  memoranda  then  outstanding  against  the Public
19        Utility Fund, if any; and
20             (3)  determine the amount, if any, by which the  sum
21        determined  as  provided  in  item (1) exceeds the amount
22        determined as provided in item (2).
23        If the amount determined as provided in item (3) of  this
24    subsection  exceeds  $2,500,000,  the  Commission  shall then
25    compute the proportionate amount, if any, which (x)  the  tax
26    paid hereunder by each utility during the preceding biennium,
27    and  (y)  the amount paid into the Public Utility Fund during
28    the preceding biennium by the Department of Revenue  pursuant
29    to  Sections  2-9 and 2-11 of the Electricity Excise Tax Law,
30    bears to the difference  between  the  amount  determined  as
31    provided  in  item (3) of this subsection (i) and $2,500,000.
32    The  Commission  shall   cause   the   proportionate   amount
33    determined   with   respect   to   payments  made  under  the
34    Electricity Excise Tax Law to be transferred into the General
                            -217-         SRS90HB0362JJsaam02
 1    Revenue Fund in the State Treasury, and  notify  each  public
 2    utility  that it may file during the 3 month period after the
 3    date of notification a claim  for  credit  for  the  in  such
 4    proportionate amount determined with respect to payments made
 5    hereunder  by the public utility. If the proportionate amount
 6    is less than  $10,  no  notification  will  be  sent  by  the
 7    Commission, and no right to a claim exists as to that amount.
 8    Upon  the  filing  of  a  claim  for credit within the period
 9    provided, the Commission shall issue a credit  memorandum  in
10    such  amount  to  such  public  utility. Any claim for credit
11    filed after the period provided for in this Section is void.
12        (j)  Credit memoranda issued pursuant to  subsection  (f)
13    and  credit  memoranda  issued  after notification and filing
14    pursuant to subsection (i) may be  applied  for  the  2  year
15    period  from the date of issuance, against the payment of any
16    amount due during  that  period  under  the  tax  imposed  by
17    subsection  (c),  or,  subject  to  reasonable  rule  of  the
18    Commission  including  requirement  of  notification,  may be
19    assigned to any other public utility  subject  to  regulation
20    under this Act. Any application of credit memoranda after the
21    period provided for in this Section is void.
22        (k)  The  chairman  or executive director may make refund
23    of fees, taxes or other charges whenever he  shall  determine
24    that  the  person  or  public  utility will not be liable for
25    payment of such fees, taxes or charges  during  the  next  24
26    months  and  he  determines  that  the  issuance  of a credit
27    memorandum would be unjust.
28    (Source: P.A. 86-209; 87-971.)
29        Section 40.  The  Attorney  General  Act  is  amended  by
30    adding Section 6.5 as follows:
31        (15 ILCS 205/6.5 new)
32        Sec. 6.5. Consumer Utilities Unit.
                            -218-         SRS90HB0362JJsaam02
 1        (a)  The General Assembly finds that the health, welfare,
 2    and  prosperity  of  all  Illinois citizens, and the public's
 3    interest in adequate, safe, reliable, cost-effective electric
 4    services, requires effective  public  representation  by  the
 5    Attorney  General  to protect the rights and interests of the
 6    public in the provision of all elements of  electric  service
 7    both during and after the transition to a competitive market,
 8    and  that  to  ensure that the benefits of competition in the
 9    provision of electric services to all consumers are attained,
10    there shall be created within  the  Office  of  the  Attorney
11    General a Consumer Utilities Unit.
12        (b)  As  used  in this Section: "Electric services" means
13    services sold by  an  electric  service  provider.  "Electric
14    service  provider"  shall mean anyone who sells, contracts to
15    sell, or markets electric  power,  generation,  distribution,
16    transmission, or services (including metering and billing) in
17    connection   therewith.   Electric  service  providers  shall
18    include any  electric  utility  and  any  alternative  retail
19    electric  supplier as defined in Section 16-102 of the Public
20    Utilities Act.
21        (c)  There is created within the Office of  the  Attorney
22    General  a  Consumer  Utilities Unit, consisting of Assistant
23    Attorneys General appointed by  the  Attorney  General,  who,
24    together  with such other staff as is deemed necessary by the
25    Attorney General, shall have the power and duty on behalf  of
26    the  people  of the State to intervene in, initiate, enforce,
27    and defend all legal proceedings on matters relating  to  the
28    provision,  marketing,  and sale of electric service whenever
29    the Attorney General determines that such action is necessary
30    to promote or protect the rights and interest of all Illinois
31    citizens,  classes  of  customers,  and  users  of   electric
32    services.
33        (d)  In  addition  to  the  investigative and enforcement
34    powers available to the Attorney General,  including  without
                            -219-         SRS90HB0362JJsaam02
 1    limitation  those  under  the  Consumer  Fraud  and Deceptive
 2    Business Practices Act and the Illinois  Antitrust  Act,  the
 3    Attorney General shall be a party as a matter of right to all
 4    proceedings,  investigations,  and  related matters involving
 5    the  provision  of  electric  services  before  the  Illinois
 6    Commerce Commission and shall, upon request, have  access  to
 7    and the use of all files, records, data, and documents in the
 8    possession  or  control of the Commission, which material the
 9    Attorney General's office shall maintain as confidential,  to
10    be used for law enforcement purposes only, which material may
11    be  shared  with other law enforcement officials.  Nothing in
12    this Section is intended to take away or  limit  any  of  the
13    powers  the  Attorney  General  has pursuant to common law or
14    other statutory law.
15        Section 45. The Consumer  Fraud  and  Deceptive  Business
16    Practices  Act  is  amended by changing Section 2P and adding
17    Sections 2EE, 2FF, 2GG, and 2HH as follows:
18        (815 ILCS 505/2EE new)
19        Sec. 2EE.     Electric  service  provider  selection.  An
20    electric  service  provider  shall  not  submit  or execute a
21    change in a subscriber's selection of a provider of  electric
22    service except as follows:
23          The  new  electric  service  provider  has obtained the
24    customer's written authorization in a  form  that  meets  the
25    following requirements:
26             (1)  An  electric  service provider shall obtain any
27        necessary written authorization from a subscriber  for  a
28        change in electric service by using a letter of agency as
29        specified  in  this  Section.   Any letter of agency that
30        does not conform with this Section is invalid.
31             (2)  The  letter  of  agency  shall  be  a  separate
32        document (an easily separable  document  containing  only
                            -220-         SRS90HB0362JJsaam02
 1        the  authorization language described in subparagraph (5)
 2        of this Section) whose sole purpose is  to  authorize  an
 3        electric  service  provider change.  The letter of agency
 4        must be signed and dated by the subscriber requesting the
 5        electric service provider change.
 6             (3)  The letter of agency shall not be combined with
 7        inducements of any kind on the same document.
 8             (4)  Notwithstanding subparagraphs (1)  and  (2)  of
 9        this  Section,  the letter of agency may be combined with
10        checks that contain only the required  letter  of  agency
11        language  prescribed in paragraph (5) of this Section and
12        the necessary information to make the check a  negotiable
13        instrument.  The letter of agency check shall not contain
14        any  promotional  language  or  material.   The letter of
15        agency check shall contain in easily readable,  bold-face
16        type on the face of the check, a notice that the consumer
17        is  authorizing  an  electric  service provider change by
18        signing the check.  The letter of  agency  language  also
19        shall  be  placed  near the signature line on the back of
20        the check.
21             (5)  At a minimum, the  letter  of  agency  must  be
22        printed  with  a  print  of sufficient size to be clearly
23        legible, and must contain clear and unambiguous  language
24        that confirms;
25                  (i) The subscriber's billing name and address;
26                  (ii)   The  decision  to  change  the  electric
27             service provider from the current  provider  to  the
28             prospective provider;
29                  (iii)  The terms, conditions, and nature of the
30             service to be provided to  the  subscriber  must  be
31             clearly and conspicuously disclosed, in writing, and
32             an electric service provider must directly establish
33             the  rates  for  the  service  contracted for by the
34             subscriber; and
                            -221-         SRS90HB0362JJsaam02
 1                  (iv) That the subscriber  understand  that  any
 2             electric  service  provider selection the subscriber
 3             chooses may involve a charge to the  subscriber  for
 4             changing the subscriber's electric service provider.
 5             (6)  Letters  of agency shall not suggest or require
 6        that a subscriber take some action in order to retain the
 7        subscriber's current electric service provider.
 8             (7)  If  any  portion  of  a  letter  of  agency  is
 9        translated into another language, then  all  portions  of
10        the  letter  of  agency  must  be  translated  into  that
11        language.
12        For purposes of this Section, "electric service provider"
13    shall  have  the  meaning given that phrase in Section 6.5 of
14    the Attorney General Act.
15        (815 ILCS 505/2FF new)
16        Sec. 2FF. Electric  service  fraud;  elderly  persons  or
17    disabled  persons;  additional penalties. With respect to the
18    advertising,   sale,   provider   selection,   billings,   or
19    collections relating to the provision  of  electric  service,
20    where the consumer is an elderly person or disabled person, a
21    civil  penalty  of $50,000 may be imposed for each violation.
22    For purposes of this Section:
23        (1)  "Elderly person" means a person 60 years of  age  or
24    older.
25        (2)  "Disabled  person" means a person who suffers from a
26    permanent  physical  or  mental  impairment  resulting   from
27    disease, injury, functional disorder or congenital condition.
28        (3)  "Electric service" shall have the meaning given that
29    term in Section 6.5 of the Attorney General Act.
30        (815 ILCS 505/2GG new)
31        Sec.    2GG.      Electric   service   advertising.   Any
32    advertisement for electric service  that  lists  rates  shall
                            -222-         SRS90HB0362JJsaam02
 1    clearly  and  conspicuously disclose all associated costs for
 2    such service including, but not limited to, access  fees  and
 3    service fees.
 4        (815 ILCS 505/2HH new)
 5        Sec.  2HH.  Billing  and collection practices of electric
 6    service   providers.   Each   person   selling    generation,
 7    transmission,  distribution, metering, or billing of electric
 8    service shall  display  the  name,  the  toll-free  telephone
 9    number  of  such  service  provider, and a description of the
10    services provided on all bills submitted  to  subscribers  of
11    such  services.   All  personal  information  relating to the
12    subscriber   of   generation,   transmission,   distribution,
13    metering, or billing of electric service shall be  maintained
14    by the service providers solely for the purpose of generating
15    the  bill for such services, and shall not be divulged to any
16    other  persons  with  the  exception   of   credit   bureaus,
17    collection  agencies, and persons licensed to market electric
18    service in the State of Illinois, without the written consent
19    of the subscriber.
20        (815 ILCS 505/2P) (from Ch. 121 1/2, par. 262P)
21        Sec. 2P.  Offers of free prizes,  gifts,  or  gratuities;
22    disclosure of conditions.  It is an unlawful practice for any
23    person to promote or advertise any business, product, utility
24    service,  including  but  not  limited  to,  the provision of
25    electric, telecommunication, or gas service, or  interest  in
26    property,  by  means  of  offering  free  prizes,  gifts,  or
27    gratuities  to  any  consumer,  unless all material terms and
28    conditions  relating   to   the   offer   are   clearly   and
29    conspicuously  disclosed  at the outset of the offer so as to
30    leave no reasonable probability that the  offering  might  be
31    misunderstood.
32    (Source: P.A. 84-1308.)
                            -223-         SRS90HB0362JJsaam02
 1        Section  65.   The  Illinois Municipal Code is amended by
 2    changing Section 8-11-2 as follows:
 3        (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
 4        Sec.   8-11-2.  The   corporate   authorities   of    any
 5    municipality  may tax any or all of the following occupations
 6    or privileges:
 7             1.  Persons engaged in the business of  transmitting
 8        messages by means of electricity or radio magnetic waves,
 9        or  fiber optics, at a rate not to exceed 5% of the gross
10        receipts  from  that  business  originating  within   the
11        corporate limits of the municipality.
12             2.  Persons engaged in the business of distributing,
13        supplying,   furnishing,   or  selling  gas  for  use  or
14        consumption within the corporate limits of a municipality
15        of 500,000 or fewer population, and not for resale, at  a
16        rate not to exceed 5% of the gross receipts therefrom.
17             2a.  Persons    engaged    in    the   business   of
18        distributing, supplying, furnishing, or selling  gas  for
19        use  or  consumption  within  the  corporate  limits of a
20        municipality of over  500,000  population,  and  not  for
21        resale,  at a rate not to exceed 8% of the gross receipts
22        therefrom.  If imposed, this tax shall be paid in monthly
23        payments.
24             3.  The privilege of using or consuming  electricity
25        acquired  in  a  purchase  at retail and used or consumed
26        within the corporate limits of the municipality at  rates
27        not  to exceed the following maximum rates, calculated on
28        a monthly basis for each purchaser:
29             (i)  For the  first  2,000  kilowatt-hours  used  or
30        consumed in a month; 0.61 cents per kilowatt-hour;
31             (ii)  For  the  next  48,000  kilowatt-hours used or
32        consumed in a month; 0.40 cents per kilowatt-hour;
33             (iii)  For the next 50,000  kilowatt-hours  used  or
                            -224-         SRS90HB0362JJsaam02
 1        consumed in a month; 0.36 cents per kilowatt-hour;
 2             (iv)  For  the  next  400,000 kilowatt-hours used or
 3        consumed in a month; 0.35 cents per kilowatt-hour;
 4             (v)  For the next  500,000  kilowatt-hours  used  or
 5        consumed in a month; 0.34 cents per kilowatt-hour;
 6             (vi)  For  the next 2,000,000 kilowatt-hours used or
 7        consumed in a month; 0.32 cents per kilowatt-hour;
 8             (vii)  For the next 2,000,000 kilowatt-hours used or
 9        consumed in a month; 0.315 cents per kilowatt-hour;
10             (viii)  For the next 5,000,000  kilowatt-hours  used
11        or consumed in a month; 0.31 cents per kilowatt-hour;
12             (ix)  For the next 10,000,000 kilowatt-hours used or
13        consumed in a month; 0.305 cents per kilowatt-hour; and
14             (x)  For  all electricity used or consumed in excess
15        of 20,000,000 kilowatt-hours in a month, 0.30  cents  per
16        kilowatt-hour.
17             If  a municipality imposes a tax at rates lower than
18        either the maximum rates specified in this Section or the
19        alternative maximum rates  promulgated  by  the  Illinois
20        Commerce  Commission,  as  provided  below, the tax rates
21        shall be imposed upon the kilowatt  hour  categories  set
22        forth  above  with  the same proportional relationship as
23        that   which   exists   among   such    maximum    rates.
24        Notwithstanding  the  foregoing, until December 31, 2008,
25        no municipality shall establish rates that are in  excess
26        of  rates  reasonably calculated to produce revenues that
27        equal the maximum total revenues such municipality  could
28        have   received   under   the   tax  authorized  by  this
29        subparagraph in the last full calendar year prior to  the
30        effective  date  of  Section 65 of this amendatory Act of
31        1997; provided that this shall not be a limitation on the
32        amount  of  tax  revenues  actually  collected  by   such
33        municipality.
34             Upon  the  request of the corporate authorities of a
                            -225-         SRS90HB0362JJsaam02
 1        municipality, the  Illinois  Commerce  Commission  shall,
 2        within  90 days after receipt of such request, promulgate
 3        alternative  rates  for  each  of   these   kilowatt-hour
 4        categories  that  will  reflect, as closely as reasonably
 5        practical for that municipality, the distribution of  the
 6        tax  among classes of purchasers as if the tax were based
 7        on  a  uniform  percentage  of  the  purchase  price   of
 8        electricity.    A   municipality   that  has  adopted  an
 9        ordinance imposing a tax pursuant to subparagraph 3 as it
10        existed prior to the effective date of Section 65 of this
11        amendatory Act of 1997 may, rather than imposing the  tax
12        permitted  by  this  amendatory  Act of 1997, continue to
13        impose the tax pursuant to that ordinance with respect to
14        gross  receipts  received  from   residential   customers
15        through July 31, 1999, and with respect to gross receipts
16        from  any  non-residential  customer until the first bill
17        issued  to  such  customer  for  delivery   services   in
18        accordance  with  Section  16-104 of the Public Utilities
19        Act but in no case later than the  last  bill  issued  to
20        such  customer  before  December  31,  2000. No ordinance
21        imposing the tax permitted by this amendatory Act of 1997
22        shall be applicable to any non-residential customer until
23        the first bill  issued  to  such  customer  for  delivery
24        services  in accordance with Section 16-104 of the Public
25        Utilities Act but in no case later  than  the  last  bill
26        issued  to  such non-residential customer before December
27        31,  2000.   Persons   engaged   in   the   business   of
28        distributing,    supplying,    furnishing,   or   selling
29        electricity for use or consumption within  the  corporate
30        limits of the municipality, and not for resale, at a rate
31        not to exceed 5% of the gross receipts therefrom.
32             4.  Persons engaged in the business of distributing,
33        supplying,  furnishing,  or  selling  water  for  use  or
34        consumption   within   the   corporate   limits   of  the
                            -226-         SRS90HB0362JJsaam02
 1        municipality, and not for resale, at a rate not to exceed
 2        5% of the gross receipts therefrom.
 3        None of the taxes  authorized  by  this  Section  may  be
 4    imposed   with  respect  to  any  transaction  in  interstate
 5    commerce or otherwise to the extent to which the business  or
 6    privilege may not, under the constitution and statutes of the
 7    United  States, be made the subject of taxation by this State
 8    or any political sub-division thereof; nor shall any  persons
 9    engaged   in   the   business   of  distributing,  supplying,
10    furnishing,  or  selling  or  transmitting  gas,  water,   or
11    electricity,  or  engaged  in  the  business  of transmitting
12    messages, or using or consuming  electricity  acquired  in  a
13    purchase   at  retail,  be  subject  to  taxation  under  the
14    provisions of this Section for those transactions that are or
15    may become subject to taxation under the  provisions  of  the
16    "Municipal  Retailers'  Occupation  Tax  Act"  authorized  by
17    Section  8-11-1; nor shall any tax authorized by this Section
18    be imposed upon any person engaged in a business  or  on  any
19    privilege unless the tax is imposed in like manner and at the
20    same  rate upon all persons engaged in businesses of the same
21    class in the municipality, whether privately  or  municipally
22    owned  or  operated,  or exercising the same privilege within
23    the municipality.
24        Any of the taxes enumerated in this  Section  may  be  in
25    addition  to  the  payment  of money, or value of products or
26    services furnished to the municipality  by  the  taxpayer  as
27    compensation  for  the  use  of its streets, alleys, or other
28    public  places,  or  installation  and  maintenance  therein,
29    thereon  or  thereunder  of  poles,  wires,  pipes  or  other
30    equipment used in the operation of the taxpayer's business.
31        (a)  If  the  corporate  authorities  of  any  home  rule
32    municipality have adopted an ordinance that imposed a tax  on
33    public  utility  customers, between July 1, 1971, and October
34    1, 1981, on the good faith belief that they  were  exercising
                            -227-         SRS90HB0362JJsaam02
 1    authority  pursuant  to  Section 6 of Article VII of the 1970
 2    Illinois  Constitution,  that   action   of   the   corporate
 3    authorities    shall    be    declared   legal   and   valid,
 4    notwithstanding a  later  decision  of  a  judicial  tribunal
 5    declaring  the  ordinance  invalid.  No municipality shall be
 6    required to rebate, refund, or issue credits  for  any  taxes
 7    described  in this paragraph, and those taxes shall be deemed
 8    to have been levied and  collected  in  accordance  with  the
 9    Constitution and laws of this State.
10        (b)  In  any case in which (i) prior to October 19, 1979,
11    the corporate authorities of any municipality have adopted an
12    ordinance imposing a tax authorized by this  Section  (or  by
13    the predecessor provision of the "Revised Cities and Villages
14    Act")  and  have  explicitly or in practice interpreted gross
15    receipts to include either charges added to customers'  bills
16    pursuant  to  the provision of paragraph (a) of Section 36 of
17    the Public Utilities Act or charges added to customers' bills
18    by taxpayers who are not subject to rate  regulation  by  the
19    Illinois  Commerce  Commission  for the purpose of recovering
20    any of the tax liabilities or other amounts specified in such
21    paragraph (a) of Section 36 of that Act, and (ii) on or after
22    October 19, 1979, a judicial  tribunal  has  construed  gross
23    receipts  to  exclude  all  or  part  of  those charges, then
24    neither those municipality nor any taxpayer who paid the  tax
25    shall be required to rebate, refund, or issue credits for any
26    tax  imposed  or  charge collected from customers pursuant to
27    the municipality's interpretation prior to October 19,  1979.
28    This  paragraph  reflects a legislative finding that it would
29    be contrary to the public interest to require a  municipality
30    or  its  taxpayers to refund taxes or charges attributable to
31    the municipality's more  inclusive  interpretation  of  gross
32    receipts  prior  to  October 19, 1979, and is not intended to
33    prescribe or limit judicial construction of this Section. The
34    legislative finding set forth in  this  subsection  does  not
                            -228-         SRS90HB0362JJsaam02
 1    apply  to  taxes  imposed  after  the  effective date of this
 2    amendatory Act of 1995.
 3        (c)  The  tax  authorized  by  subparagraph  3  shall  be
 4    collected from the purchaser  by  the  person  maintaining  a
 5    place  of business in this State who delivers the electricity
 6    to the purchaser.  This tax shall constitute a  debt  of  the
 7    purchaser  to  the person who delivers the electricity to the
 8    purchaser and if unpaid, is recoverable in the same manner as
 9    the original charge for delivering the electricity.  Any  tax
10    required  to be collected pursuant to an ordinance authorized
11    by subparagraph 3 and any such  tax  collected  by  a  person
12    delivering  electricity  shall  constitute a debt owed to the
13    municipality  by  such  person  delivering  the  electricity,
14    provided, that the person  delivering  electricity  shall  be
15    allowed   credit  for  such  tax  related  to  deliveries  of
16    electricity  the  charges  for  which  are  written  off   as
17    uncollectible, and provided further, that if such charges are
18    thereafter   collected,  the  delivering  supplier  shall  be
19    obligated to remit such tax.  For purposes of this subsection
20    (c), any partial payment not specifically identified  by  the
21    purchaser   shall  be  deemed  to  be  for  the  delivery  of
22    electricity. Persons delivering electricity shall collect the
23    tax from the purchaser by adding such tax to the gross charge
24    for delivering the electricity, in the manner  prescribed  by
25    the  municipality.  Persons delivering electricity shall also
26    be authorized to add to such gross charge an amount equal  to
27    3%  of the tax to reimburse the person delivering electricity
28    for  the  expenses  incurred  in  keeping  records,   billing
29    customers,  preparing  and  filing returns, remitting the tax
30    and supplying data to the municipality upon request.  If  the
31    person  delivering  electricity fails to collect the tax from
32    the purchaser, then the purchaser shall be  required  to  pay
33    the tax directly to the municipality in the manner prescribed
34    by the municipality.  Persons delivering electricity who file
                            -229-         SRS90HB0362JJsaam02
 1    returns  pursuant to this paragraph (c) shall, at the time of
 2    filing such return, pay the municipality the  amount  of  the
 3    tax collected pursuant to subparagraph 3. (Blank).
 4        (d)  For  the  purpose  of  the  taxes enumerated in this
 5    Section:
 6        "Gross receipts" means the consideration received for the
 7    transmission of  messages,  the  consideration  received  for
 8    distributing, supplying, furnishing or selling gas for use or
 9    consumption   and  not  for  resale,  and  the  consideration
10    received for distributing, supplying, furnishing  or  selling
11    electricity  for  use  or consumption and not for resale, and
12    the  consideration  received  for  distributing,   supplying,
13    furnishing  or  selling  water for use or consumption and not
14    for resale, and  for  all  services  rendered  in  connection
15    therewith  valued  in  money,  whether  received  in money or
16    otherwise, including cash, credit, services and  property  of
17    every  kind  and  material  and  for  all  services  rendered
18    therewith,  and  shall be determined without any deduction on
19    account of the cost of transmitting  such  messages,  without
20    any  deduction on account of the cost of the service, product
21    or commodity supplied, the cost of materials used,  labor  or
22    service  cost,  or  any  other  expenses  whatsoever.  "Gross
23    receipts" shall not include that portion of the consideration
24    received  for distributing, supplying, furnishing, or selling
25    gas, electricity, or water to, or  for  the  transmission  of
26    messages for, business enterprises described in paragraph (e)
27    of  this Section to the extent and during the period in which
28    the exemption authorized by paragraph (e) is in effect or for
29    school districts or units of local  government  described  in
30    paragraph  (f)  during  the  period  in  which  the exemption
31    authorized in paragraph  (f) is in effect.
32        For utility bills issued on or after  May  1,  1996,  but
33    before  May  1,  1997,  and  for  receipts from those utility
34    bills, "gross receipts" does not  include  one-third  of  (i)
                            -230-         SRS90HB0362JJsaam02
 1    amounts  added to customers' bills under Section 9-222 of the
 2    Public Utilities Act, or (ii)  amounts  added  to  customers'
 3    bills  by taxpayers who are not subject to rate regulation by
 4    the  Illinois  Commerce  Commission  for   the   purpose   of
 5    recovering  any  of  the tax liabilities described in Section
 6    9-222 of the Public Utilities Act. For utility  bills  issued
 7    on  or  after  May  1,  1997, but before May 1, 1998, and for
 8    receipts from those utility bills, "gross receipts" does  not
 9    include  two-thirds  of (i) amounts added to customers' bills
10    under Section 9-222 of the  Public  Utilities  Act,  or  (ii)
11    amount  added  to  customers'  bills by taxpayers who are not
12    subject  to  rate  regulation  by   the   Illinois   Commerce
13    Commission  for  the  purpose  of  recovering  any of the tax
14    liabilities  described  in  Section  9-222  of   the   Public
15    Utilities  Act.  For  utility bills issued on or after May 1,
16    1998, and for  receipts  from  those  utility  bills,  "gross
17    receipts"  does  not  include (i) amounts added to customers'
18    bills under Section 9-222 of the  Public  Utilities  Act,  or
19    (ii)  amounts  added to customers' bills by taxpayers who are
20    not subject to  rate  regulation  by  the  Illinois  Commerce
21    Commission  for  the  purpose  of  recovering  any of the tax
22    liabilities  described  in  Section  9-222  of   the   Public
23    Utilities Act.
24        For  purposes  of this Section "gross receipts" shall not
25    include (i) amounts added to customers' bills  under  Section
26    9-221  of  the Public Utilities Act, or (ii) charges added to
27    customers' bills to recover the surcharge imposed  under  the
28    Emergency   Telephone  System  Act.  This  paragraph  is  not
29    intended to nor does it make any change  in  the  meaning  of
30    "gross  receipts"  for  the  purposes of this Section, but is
31    intended to remove possible ambiguities,  thereby  confirming
32    the  existing  meaning  of  "gross  receipts"  prior  to  the
33    effective date of this amendatory Act of 1995.
34        The  words  "transmitting  messages",  in addition to the
                            -231-         SRS90HB0362JJsaam02
 1    usual and popular meaning of person to person  communication,
 2    shall   include  the  furnishing,  for  a  consideration,  of
 3    services or facilities (whether owned or leased), or both, to
 4    persons in connection with the transmission of messages where
 5    those persons do not, in turn, receive any  consideration  in
 6    connection  therewith,  but shall not include such furnishing
 7    of services or facilities to persons for the transmission  of
 8    messages  to  the extent that any such services or facilities
 9    for  the  transmission  of  messages  are  furnished  for   a
10    consideration,  by  those  persons  to other persons, for the
11    transmission of messages.
12        "Person" as  used  in  this  Section  means  any  natural
13    individual,  firm,  trust,  estate, partnership, association,
14    joint stock company, joint  adventure,  corporation,  limited
15    liability company, municipal corporation, the State or any of
16    its  or political subdivisions subdivision of this State, any
17    State university created by statute, or a receiver,  trustee,
18    guardian  or  other  representative appointed by order of any
19    court.
20        "Person maintaining a place of business  in  this  State"
21    shall  mean  any  person  having  or  maintaining within this
22    State, directly or by a subsidiary  or  other  affiliate,  an
23    office,    generation    facility,   distribution   facility,
24    transmission  facility,  sales  office  or  other  place   of
25    business,  or  any  employee,  agent, or other representative
26    operating within this State under the authority of the person
27    or its subsidiary or other affiliate, irrespective of whether
28    such place of business or agent or  other  representative  is
29    located  in this State permanently or temporarily, or whether
30    such person, subsidiary or other  affiliate  is  licensed  or
31    qualified to do business in this State.
32        "Public utility" shall have the meaning ascribed to it in
33    Section  3-105  of the Public Utilities Act and shall include
34    telecommunications carriers as defined in Section  13-202  of
                            -232-         SRS90HB0362JJsaam02
 1    that Act and alternative retail electric suppliers as defined
 2    in Section 16-102 of that Act.
 3        "Purchase  at  retail"  shall  mean  any  acquisition  of
 4    electricity   by   a   purchaser   for  purposes  of  use  or
 5    consumption, and not for resale, but shall  not  include  the
 6    use  of  electricity  by  a  public  utility  directly in the
 7    generation, production, transmission,  delivery  or  sale  of
 8    electricity.
 9        "Purchaser"  shall  mean any person who uses or consumes,
10    within the corporate limits of the municipality,  electricity
11    acquired in a purchase at retail.
12        In  the  case  of  persons  engaged  in  the  business of
13    transmitting messages through the use  of  mobile  equipment,
14    such   as  cellular  phones  and  paging  systems,  the gross
15    receipts from the  business  shall  be  deemed  to  originate
16    within  the  corporate  limits  of a municipality only if the
17    address to which the bills for the service are sent is within
18    those corporate limits. If,  however,  that  address  is  not
19    located  within  a municipality that imposes a tax under this
20    Section, then (i) if the party responsible for  the  bill  is
21    not an individual, the gross receipts from the business shall
22    be  deemed  to  originate  within the corporate limits of the
23    municipality where that party's principal place  of  business
24    in Illinois is located, and (ii) if the party responsible for
25    the  bill  is  an  individual,  the  gross  receipts from the
26    business shall be deemed to originate  within  the  corporate
27    limits  of  the  municipality  where  that  party's principal
28    residence in Illinois is located.
29        (e)  Any municipality  that  imposes  taxes  upon  public
30    utilities  or  upon  the  privilege  of  using  or  consuming
31    electricity pursuant to this Section whose territory includes
32    any  part  of  an  enterprise  zone  or  federally designated
33    Foreign Trade Zone or Sub-Zone may, by a majority vote of its
34    corporate authorities, exempt from those taxes for  a  period
                            -233-         SRS90HB0362JJsaam02
 1    not  exceeding  20  years  any  specified percentage of gross
 2    receipts of public utilities received  from,  or  electricity
 3    used or consumed by, business enterprises that:
 4             (1)  either  (i)  make  investments  that  cause the
 5        creation of a minimum of 200 full-time equivalent jobs in
 6        Illinois, (ii) make investments of at least  $175,000,000
 7        that  cause  the  creation  of a minimum of 150 full-time
 8        equivalent jobs in Illinois, or  (iii)  make  investments
 9        that  cause the retention of a minimum of 1,000 full-time
10        jobs in Illinois; and
11             (2)  are either (i) located in  an  Enterprise  Zone
12        established  pursuant to the Illinois Enterprise Zone Act
13        or (ii) Department  of  Commerce  and  Community  Affairs
14        designated  High Impact Businesses located in a federally
15        designated Foreign Trade Zone or Sub-Zone; and
16             (3)  are certified by the Department of Commerce and
17        Community Affairs  as  complying  with  the  requirements
18        specified in clauses (1) and (2) of this paragraph (e).
19        Upon adoption of the ordinance authorizing the exemption,
20    the  municipal  clerk shall transmit a copy of that ordinance
21    to the Department of Commerce  and  Community  Affairs.   The
22    Department  of Commerce and Community Affairs shall determine
23    whether the business enterprises located in the  municipality
24    meet  the  criteria  prescribed  in  this  paragraph.  If the
25    Department of Commerce and Community Affairs determines  that
26    the  business  enterprises  meet the criteria, it shall grant
27    certification.  The  Department  of  Commerce  and  Community
28    Affairs  shall act upon certification requests within 30 days
29    after receipt of the ordinance.
30        Upon certification of  the  business  enterprise  by  the
31    Department  of Commerce and Community Affairs, the Department
32    of Commerce and Community Affairs shall notify the Department
33    of Revenue of the certification.  The Department  of  Revenue
34    shall  notify the public utilities of the exemption status of
                            -234-         SRS90HB0362JJsaam02
 1    the gross receipts received from, and the electricity used or
 2    consumed  by,  the  certified  business  enterprises.    Such
 3    exemption  status  shall  be  effective within 3 months after
 4    certification.
 5        (f)  A  municipality  that  imposes  taxes  upon   public
 6    utilities  or  upon  the  privilege  of  using  or  consuming
 7    electricity  under  this Section and whose territory includes
 8    part of another unit of local government or a school district
 9    may by ordinance exempt the other unit of local government or
10    school district from those taxes.
11        (g)  The amendment of this Section by Public  Act  84-127
12    shall  take  precedence  over  any  other  amendment  of this
13    Section by any  other  amendatory  Act  passed  by  the  84th
14    General  Assembly  before  the  effective  date of Public Act
15    84-127.
16        (h)  In any case in which, before July 1, 1992, a  person
17    engaged  in the business of transmitting messages through the
18    use of mobile equipment, such as cellular phones  and  paging
19    systems,  has  determined  the  municipality within which the
20    gross receipts from the business originated by  reference  to
21    the location of its transmitting or switching equipment, then
22    (i)  neither  the  municipality to which tax was paid on that
23    basis nor the taxpayer that paid tax on that basis  shall  be
24    required to rebate, refund, or issue credits for any such tax
25    or  charge collected from customers to reimburse the taxpayer
26    for the tax and (ii) no municipality to which tax would  have
27    been  paid  with  respect  to  those  gross  receipts  if the
28    provisions of this amendatory Act of 1991 had been in  effect
29    before  July  1,  1992,  shall  have  any  claim  against the
30    taxpayer for any amount of the tax.
31    (Source: P.A. 89-325, eff. 1-1-96; 90-16, eff. 6-16-97.)
32                              ARTICLE 4
                            -235-         SRS90HB0362JJsaam02
 1        Section 75.  Effective date  of  Articles  2  and  5  and
 2    Sections  25,  26, 30, 35 and 65.  Sections 25 and 30 of this
 3    amendatory Act of 1997 take effect January 1, 1998.  Articles
 4    2 and 5 and Sections 26, 35 and 65 of this amendatory Act  of
 5    1997 take effect August 1, 1998.
 6                              ARTICLE 5
 7        Section  5-1.   Short title.  This Article shall be known
 8    and  may  be  cited  as  the  Electricity      Infrastructure
 9    Maintenance Fee Law.
10        Section  5-2.   Legislative intent.  This Law is intended
11    to create a uniform system for the  imposition and collection
12    of fees associated with the privilege  of  using  the  public
13    right of way  for the delivery of electricity.
14        Section 5-3.  Definitions.  For the purposes of this Law:
15        (a)  "Electricity  deliverer"  means  any person who uses
16    any portion of any  public  rights  of  way  of  an  Illinois
17    municipality  for  the purpose of distributing, transmitting,
18    or  otherwise  delivering  electricity,  regardless  of   its
19    source,  for use or consumption within that municipality, and
20    not for resale.  For purposes of this definition, use of  the
21    public  rights  of  way  shall  not  include  the use of real
22    property pursuant to the terms  of  an  easement,  lease,  or
23    other  similar  property interest held over municipally-owned
24    property.
25        (b)  "Delivery of electricity"  means  the  distribution,
26    transmission,  or  other  delivery of electricity through the
27    use of the municipality's public rights of way, regardless of
28    the source of the electricity, for use or consumption  within
29    that municipality, and not for resale.  The term includes the
30    delivery  of  electricity  for  use  or  consumption  by  the
                            -236-         SRS90HB0362JJsaam02
 1    electricity   deliverer,   except  for  electricity  used  or
 2    consumed by the electricity deliverer for the  production  or
 3    distribution of electricity.
 4        (c)  "Person"  means any natural individual, firm, trust,
 5    estate, partnership, association, joint stock company,  joint
 6    adventure,  corporation, limited liability company, municipal
 7    corporation, the State or any of its political  subdivisions,
 8    any  State  university  created  by  statute,  or a receiver,
 9    trustee, guardian, or other representative appointed by order
10    of any court.
11        (d)  "Public rights of way" means  streets,  alleys,  and
12    similar public ways, and all areas over and under such public
13    ways,  title to which is owned by the municipality, and which
14    are dedicated exclusively to public use.
15        (e)  "Purchaser" means any person who uses  or  consumes,
16    within  the corporate limits of the municipality, electricity
17    acquired in a purchase at retail.
18        (f)  "Resale" includes any and all sales  of  electricity
19    for  the  purpose  of a subsequent sale to another, including
20    the sale of electric energy within the meaning of the Federal
21    Power Act (16 U.S.C. 824), but excluding the distribution  of
22    electricity  to occupants of a building or buildings, or to a
23    group of customers within the municipality, by a  person  who
24    owns,  controls  or  manages,  or  acts  as  agent  for,  the
25    building, buildings, or group of customers.
26        Section    5-4.  Right    to   franchise   contract.    A
27    municipality  shall  be  entitled  to  require  a   franchise
28    contract  from  an  electricity  deliverer  as a condition of
29    allowing the electricity deliverer to use any portion of  any
30    public right of way within the municipality for the placement
31    and maintenance of facilities for distributing, transmitting,
32    or  delivering electricity.  Such franchise contract shall be
33    established by ordinance and shall be valid when accepted  in
                            -237-         SRS90HB0362JJsaam02
 1    writing by the electricity deliverer.
 2        Section   5-5.    Municipal   electricity  infrastructure
 3    maintenance fee.
 4        (a)  Any municipality that on the effective date of  this
 5    Law  had  in effect a franchise agreement with an electricity
 6    deliverer may impose an infrastructure maintenance  fee  upon
 7    electricity   deliverers,   as   compensation   for  granting
 8    electricity deliverers the privilege of using  public  rights
 9    of  way,  in  an  amount  specified in subsection (b) of this
10    Section.   If  more  than  one   electricity   deliverer   is
11    responsible  for  the delivery of the same electricity to the
12    same consumer, the fee related to that electricity  shall  be
13    imposed  upon  the  electricity deliverer who last physically
14    uses the public way for delivery of that electricity prior to
15    its consumption.
16        (b) (1)  In municipalities with a population greater than
17    500,000, the amount of  the  infrastructure  maintenance  fee
18    imposed  under  this  Section  shall not exceed the following
19    maximum  rates  for  kilowatt-hours  delivered   within   the
20    municipality to each purchaser:
21             (i)   For   the   first   2,000   kilowatt-hours  of
22        electricity used or consumed in a month: 0.53  cents  per
23        kilowatt-hour;
24             (ii)   For   the   next   48,000  kilowatt-hours  of
25        electricity used or consumed in a month: 0.35  cents  per
26        kilowatt-hour;
27             (iii)   For   the   next  50,000  kilowatt-hours  of
28        electricity used or consumed in a month: 0.31  cents  per
29        kilowatt-hour;
30             (iv)   For   the   next  400,000  kilowatt-hours  of
31        electricity used or consumed in a month: 0.305 cents  per
32        kilowatt-hour;
33             (v)   For   the   next   500,000  kilowatt-hours  of
                            -238-         SRS90HB0362JJsaam02
 1        electricity used or consumed in a month: 0.30  cents  per
 2        kilowatt-hour;
 3             (vi)   For  the  next  2,000,000  kilowatt-hours  of
 4        electricity used or consumed in a month: 0.28  cents  per
 5        kilowatt-hour;
 6             (vii)  For  the  next  2,000,000  kilowatt-hours  of
 7        electricity  used or consumed in a month: 0.275 cents per
 8        kilowatt-hour;
 9             (viii) For  the  next  5,000,000  kilowatt-hours  of
10        electricity  used  or consumed in a month: 0.27 cents per
11        kilowatt-hour;
12             (ix) For the next 10,000,000 kilowatt-hours used  or
13        consumed in a month: 0.265 cents per kilowatt-hour;
14             (x)  For all kilowatt-hours of electricity in excess
15        of 20,000,000 kilowatt-hours used or consumed in a month:
16        0.26 cents per kilowatt-hour.
17        (2) In municipalities with a  population  of  500,000  or
18    less,  the  amount  of  the  infrastructure  maintenance  fee
19    imposed  under  this  Section  shall  be imposed based on the
20    kilowatt-hour  categories  set  forth  above  and  shall   be
21    calculated   on   a   monthly  basis  for  kilowatt-hours  of
22    electricity delivered to each purchaser; provided,  that  if,
23    immediately  prior  to imposing an infrastructure maintenance
24    fee, such municipality receives franchise fees, permit  fees,
25    free  electrical  service,  or  other  forms  of compensation
26    pursuant  to  an  existing  franchise  agreement,  the  rates
27    established  for  these  kilowatt-hour  categories  for  such
28    infrastructure  maintenance  fee  during  the  term  of   the
29    franchise   agreement   shall  not  exceed  rates  reasonably
30    calculated, at the time such infrastructure  maintenance  fee
31    is  initially  imposed,  to  generate  an  amount  of revenue
32    equivalent to the  value  of  the  compensation  received  or
33    provided under the franchise agreement.
34        (3)   Notwithstanding   any   other   provision  of  this
                            -239-         SRS90HB0362JJsaam02
 1    subsection (b), a fee shall not be  imposed  if  and  to  the
 2    extent that imposition or collection of the fee would violate
 3    the  Constitution  or  statutes  of  the United States or the
 4    statutes or Constitution of the State of Illinois.
 5        (c)  Any electricity deliverer may collect the amount  of
 6    a  fee imposed under this Section from the purchaser using or
 7    consuming the electricity with respect to which the  fee  was
 8    imposed.   The  fee  may  be  collected  by  the  electricity
 9    deliverer from the purchaser as a separately stated charge on
10    the  purchaser's  bills or in any other manner permitted from
11    time to  time  by  law  or  by  the  electricity  deliverer's
12    tariffs.  The  electricity  deliverer shall be allowed credit
13    for  any  portion  of  the  fee  related  to  deliveries   of
14    electricity   the  charges  for  which  are  written  off  as
15    uncollectible, provided, that if such charges are  thereafter
16    collected,  the  electricity  deliverer shall be obligated to
17    pay such fee.  For purposes  of  this  Section,  any  partial
18    payment not specifically identified by the purchaser shall be
19    deemed  to  be for the delivery of electricity.  No ordinance
20    imposing the fee authorized by this Section with  respect  to
21    the  kilowatt-hours  delivered  to  non-residential customers
22    shall be effective until October 1, 1999.   For  purposes  of
23    this  Law, the period of time from the effective date of this
24    Law  through  and  including  September  30,  1999  shall  be
25    referred to as the "Initial Period."
26        (d)  As  between  the  electricity  deliverer   and   the
27    municipality,  the  fee  authorized  by this Section shall be
28    collected, enforced, and  administered  by  the  municipality
29    imposing  the  fee.    Any municipality adopting an ordinance
30    imposing an infrastructure maintenance  fee  under  this  Law
31    shall  give  written  notice  to  each  electricity deliverer
32    subject to the fee not less than 60 days prior  to  the  date
33    the fee is imposed.
                            -240-         SRS90HB0362JJsaam02
 1        Section  5-6.   Validity  of  existing franchise fees and
 2    agreement; police powers.
 3        (a)  On and after the effective  date  of  this  Law,  no
 4    electricity  deliverer  paying  an infrastructure maintenance
 5    fee imposed under this Law may be denied the  right  to  use,
 6    directly  or  indirectly, public rights of way because of the
 7    failure to pay any other fee or charge for the right  to  use
 8    those rights of way except to the extent that the electricity
 9    deliverer  during the Initial Period fails under any existing
10    franchise agreement to pay franchise fees which are based  on
11    the   gross   receipts  or  gross  revenues  attributable  to
12    non-residential  customers  or  to  provide  free  electrical
13    service or other compensation attributable to non-residential
14    customers.  A municipality  that  imposes  an  infrastructure
15    maintenance fee pursuant to Section 5-5 shall impose no other
16    fees  or  charges  upon  electricity  deliverers for such use
17    except as provided by subsections (b) or (c) of this Section.
18        (b)  Agreements  between   electricity   deliverers   and
19    municipalities  regarding  use of the public way shall remain
20    valid according to and for their  stated  terms.  However,  a
21    municipality  that,  pursuant  to  a  franchise  agreement in
22    existence on the effective date of  this  Law,  receives  any
23    franchise fees, permit fees, free electrical service or other
24    compensation  for use of the public rights of way, may impose
25    an infrastructure maintenance fee pursuant to this  Law  only
26    if  the  municipality:  (1)  waives  its right to receive all
27    compensation from the electricity deliverer for  use  of  the
28    public  rights  of  way  during  the  time the infrastructure
29    maintenance fee is imposed, except as provided in  subsection
30    (c),   and   except   that  during  the  Initial  Period  any
31    municipality may continue to  receive  franchise  fees,  free
32    electrical service or other compensation from the electricity
33    deliverer  which  are  equal  in  value to the Initial Period
34    Compensation; and (2) provides written notice of this  waiver
                            -241-         SRS90HB0362JJsaam02
 1    to the appropriate electricity deliverer at the time that the
 2    municipality   provides  notice  of  the  imposition  of  the
 3    infrastructure  maintenance  fee  under  subsection  (d)   of
 4    Section  5-5.  For  purposes of this Section, "Initial Period
 5    Compensation" shall mean the total amount of compensation due
 6    under the existing franchise  agreement  during  the  Initial
 7    Period  less the amount of the infrastructure maintenance fee
 8    imposed under this Section during the Initial Period.
 9        (c)  Nothing in this Law prohibits  a  municipality  from
10    the  reasonable exercise of its police powers over the public
11    rights of way.  In addition, a municipality  may  require  an
12    electricity   deliverer   to   reimburse   any   special   or
13    extraordinary  expenses  or  costs reasonably incurred by the
14    municipality as a direct result of damages to its property or
15    public rights of way, such as the  costs  of  restoration  of
16    streets damaged by a electricity deliverer that does not make
17    timely  repair  of the damage, or for the loss of revenue due
18    to the inability to use public facilities as a direct  result
19    of  the actions of the electricity deliverer, such as parking
20    meters that are required to be removed because of work of  an
21    electricity deliverer.
22                              ARTICLE 6
23        Section  6-1.  Short  title. This Article may be cited as
24    the Renewable Energy, Energy Efficiency, and  Coal  Resources
25    Development Law of 1997.
26        Section  6-2.  Findings  and intent. The General Assembly
27    finds and  declares  that  it  is  desirable  to  obtain  the
28    environmental  quality,  public  health,  and  fuel diversity
29    benefits of developing new  renewable  energy  resources  and
30    clean  coal technologies for use in Illinois and to lower the
31    cost of renewable energy resources and clean  coal  resources
                            -242-         SRS90HB0362JJsaam02
 1    provided to utility consumers. The General Assembly finds and
 2    declares  that  the  benefits  of  electricity from renewable
 3    energy resources and clean coal technologies  accrue  to  the
 4    public  at  large,  thus consumers and electric utilities and
 5    alternative retail electric suppliers share  an  interest  in
 6    developing   and   using   a   significant   level  of  these
 7    environmentally   preferable   resources   in   the   State's
 8    electricity supply portfolio. The General Assembly finds  and
 9    declares  that encouraging energy efficiency will improve the
10    environmental quality and  public  health  in  the  State  of
11    Illinois.
12        Section 6-3. Renewable energy resources program.
13        (a)  The Department of Commerce and Community Affairs, to
14    be  called  the  "Department"  hereinafter in this Law, shall
15    administer the Renewable Energy Resources Program to  provide
16    grants,  loans,  and other incentives to foster investment in
17    and the development and use of renewable energy resources.
18        (b)  The Department shall establish eligibility  criteria
19    for  grants, loans, and other incentives to foster investment
20    in and the development and use of renewable energy resources.
21    These criteria shall be reviewed  annually  and  adjusted  as
22    necessary.  The criteria should promote the goal of fostering
23    investment in and the development and use,  in  Illinois,  of
24    renewable energy resources.
25        (c)  The Department shall accept applications for grants,
26    loans,  and  other incentives to foster investment in and the
27    development and use of renewable energy resources.
28        (d)  To  the  extent  that  funds   are   available   and
29    appropriated, the Department shall provide grants, loans, and
30    other   incentives  to  applicants  that  meet  the  criteria
31    specified by the Department.
32        (e)  The Department shall conduct an annual study on  the
33    use   and  availability  of  renewable  energy  resources  in
                            -243-         SRS90HB0362JJsaam02
 1    Illinois. Each year, the Department shall submit a report  on
 2    the  study to the General Assembly. This report shall include
 3    suggestions  for  legislation  which   will   encourage   the
 4    development and use of renewable energy resources.
 5        (f)  As  used  in  this Law, "renewable energy resources"
 6    includes energy from wind, solar thermal energy, photovoltaic
 7    cells and panels, dedicated crops grown for energy production
 8    and organic waste biomass, hydropower that does  not  involve
 9    new construction or significant expansion of hydropower dams,
10    and   other   such  alternative  sources  of  environmentally
11    preferable energy.  "Renewable  energy  resources"  does  not
12    include,  however,  energy  from the incineration, burning or
13    heating of waste wood,  tires,  garbage,  general  household,
14    institutional  and  commercial waste, industrial lunchroom or
15    office waste, landscape waste, or construction or  demolition
16    debris.
17        Section 6-4. Renewable Energy Resources Trust Fund.
18        (a)  A  fund  to be called the Renewable Energy Resources
19    Trust Fund is hereby established in the State Treasury.
20        (b)  The Renewable Energy Resources Trust Fund  shall  be
21    administered  by the Department to provide grants, loans, and
22    other incentives to foster investment in and the  development
23    and  use of renewable energy resources as provided in Section
24    6-3 of this Law.
25        (c)  All funds used by the Department for  the  Renewable
26    Energy Resources Program shall be subject to appropriation by
27    the General Assembly.
28        Section   6-5.   Renewable   Energy  Resources  and  Coal
29    Technology Development Assistance Charge.
30        (a)  Beginning January 1,  1998,  the  following  charges
31    shall be imposed:
32             (1)  $0.05 per month on each account for residential
                            -244-         SRS90HB0362JJsaam02
 1        electric  service  as defined in Section 13 of the Energy
 2        Assistance Act of 1989;
 3             (2)  $0.05 per month on each account for residential
 4        gas service as  defined  in  Section  13  of  the  Energy
 5        Assistance Act of 1989;
 6             (3)  $0.50   per   month   on   each   account   for
 7        nonresidential electric service, as defined in Section 13
 8        of the Energy Assistance Act of 1989, taking less than 10
 9        megawatts  of  peak  demand  during the previous calendar
10        year;
11             (4)  $0.50   per   month   on   each   account   for
12        nonresidential gas service, as defined in Section  13  of
13        the  Energy  Assistance  Act  of  1989,  taking less than
14        4,000,000 therms of  gas  during  the  previous  calendar
15        year;
16             (5)  $37.50   per   month   on   each   account  for
17        nonresidential electric service, as defined in Section 13
18        of the Energy Assistance Act of 1989, taking 10 megawatts
19        or greater of peak demand during  the  previous  calendar
20        year; and
21             (6)  $37.50   per   month   on   each   account  for
22        nonresidential gas service, as defined in Section  13  of
23        the  Energy  Assistance  Act of 1989, taking 4,000,000 or
24        more therms of gas during the previous calendar year.
25        (b)  Except  as  provided  in  subsection  (e)  of   this
26    Section,  this  charge is to be collected by electric and gas
27    utilities, whether  owned  by  investors,  municipalities  or
28    cooperatives,  and alternative retail electric suppliers on a
29    monthly basis from their respective customers.
30        (c)  Fifty percent of the moneys  collected  pursuant  to
31    this  Section  shall  be  deposited  in  the Renewable Energy
32    Resources Trust Fund. The remaining 50 percent of the  moneys
33    collected  pursuant to this Section shall be deposited in the
34    Coal Technology Development Assistance Fund for use under the
                            -245-         SRS90HB0362JJsaam02
 1    Illinois Coal Technology Development Assistance Act.
 2        (d)  On a monthly basis,  each  utility  and  alternative
 3    retail  electric supplier collecting charges pursuant to this
 4    Section shall remit to the  Department  for  deposit  in  the
 5    Renewable  Energy Resources Trust Fund all moneys received as
 6    payment of the charge provided for in this Section.
 7        (e)  The charges imposed by this Section shall only apply
 8    to customers of municipal  electric  utilities  and  electric
 9    cooperatives  if  the  municipal electric utility or electric
10    cooperative makes  an  affirmative  decision  to  impose  the
11    charge.   If   a   municipal  electric  utility  or  electric
12    cooperative does not assess this charge, its customers  shall
13    not be eligible for the Renewable Energy Resources Program.
14        Section 6-6. Energy efficiency program.
15        (a)  For   the   year  beginning  January  1,  1998,  and
16    thereafter as provided in this Section, each electric utility
17    and  each  alternative  retail  electric  supplier  supplying
18    electric power and energy to retail customers located in  the
19    State of Illinois shall contribute annually to the Department
20    a  pro  rata share of a total amount of $3,000,000 based upon
21    the number of kilowatt-hours sold by each such entity in  the
22    12   months   preceding  the  year  of  contribution.   These
23    contributions shall be  remitted  to  the  Department  on  or
24    before  June  30  of  each year the contribution is due.  The
25    funds received by the Department  pursuant  to  this  Section
26    shall be subject to the appropriation of funds by the General
27    Assembly.   The  Department  shall  place  the funds remitted
28    under this Section in a trust fund, that is hereby created in
29    the State Treasury, called the Energy Efficiency Trust Fund.
30        (b)  The Department shall  disburse  the  moneys  in  the
31    Energy   Efficiency   Trust   Fund  to  residential  electric
32    customers  to  fund  projects  which   the   Department   has
33    determined  will  promote  energy  efficiency in the State of
                            -246-         SRS90HB0362JJsaam02
 1    Illinois.  The Department shall establish a list of  projects
 2    eligible  for  grants  from  the Energy Efficiency Trust Fund
 3    including, but not limited to, supporting  energy  efficiency
 4    efforts   for   low-income   households,   replacing   energy
 5    inefficient  windows  with  more efficient windows, replacing
 6    energy inefficient appliances with more efficient appliances,
 7    replacing energy inefficient  lighting  with  more  efficient
 8    lighting,  insulating dwellings and buildings, and such other
 9    projects which will increase energy efficiency in  homes  and
10    rental properties.
11        (c)  The  Department  shall  establish  criteria  and  an
12    application process for this grant program.
13        (d)  The  Department  shall  conduct  a  study  of  other
14    possible  energy efficiency improvements and evaluate methods
15    for promoting energy efficiency and conservation,  especially
16    for the benefit of low-income customers.
17        (e)  The  Department shall submit an annual report to the
18    General Assembly evaluating the effectiveness of the projects
19    and programs  provided  in  this  Section,  and  recommending
20    further   legislation   which   will   encourage   additional
21    development  and implementation of energy efficiency projects
22    and programs in Illinois and other actions that help to  meet
23    the goals of this Section.
24        Section  6-7.  Repeal.  The  provisions  of  this Law are
25    repealed 10 years after the effective date of this amendatory
26    Act of 1997 unless renewed by act of the General Assembly.
27        Section 80.  The  Illinois  Coal  Technology  Development
28    Assistance Act is amended by changing Section 3 as follows:
29        (30 ILCS 730/3) (from Ch. 96 1/2, par. 8203)
30        Sec.   3.    Transfers  to  Coal  Technology  Development
31    Assistance Funds. As soon as may  be  practicable  after  the
                            -247-         SRS90HB0362JJsaam02
 1    first  day  of  each  month,  the Department of Revenue shall
 2    certify to the Treasurer an  amount  equal  to  1/64  of  the
 3    revenue  realized  from  the  tax  imposed by the Electricity
 4    Excise Tax Law, Section 2 of  the  Public  Utilities  Revenue
 5    Act,  Section 2 of the Messages Tax Act, and Section 2 of the
 6    Gas Revenue  Tax  Act,  during  the  preceding  month.   Upon
 7    receipt  of  the  certification, the Treasurer shall transfer
 8    the amount shown  on  such  certification  from  the  General
 9    Revenue  Fund  to  the Coal Technology Development Assistance
10    Fund, which is hereby created as a special fund in the  State
11    treasury,  except that no transfer shall be made in any month
12    in which the Fund from moneys received under this Section has
13    reached the following balance:
14             (1)  $7,000,000 during fiscal year 1994.
15             (2)  $8,500,000 during fiscal year 1995.
16             (3)  $10,000,000  during  fiscal  year 1996 and each
17        year thereafter.
18    (Source: P.A. 88-391.)
19        Section 85. The Energy Assistance Act of 1989 is  amended
20    by  changing  Section  5  and  adding  Sections  13 and 14 as
21    follows:
22        (305 ILCS 20/5) (from Ch. 111 2/3, par. 1405)
23        (Text of Section before amendment by P.A. 89-507)
24        Sec. 5.  Policy Advisory Council.
25        (a)  Within the  Department  of  Commerce  and  Community
26    Affairs  is created a Policy Advisory Council to be comprised
27    of:
28             (1)  the  following  ex  officio  members  or  their
29        designees:   the  Director  of  Commerce  and   Community
30        Affairs  who  shall  serve as Chair of the Committee, the
31        Director of Natural Resources,  the  Director  of  Public
32        Aid,   and   the   Chairman   of  the  Illinois  Commerce
                            -248-         SRS90HB0362JJsaam02
 1        Commission; and
 2             (2)  9  persons  who  shall  be  appointed  by   the
 3        Governor to serve 2 year terms and until their successors
 4        are  appointed  and qualified, 3 of whom shall be persons
 5        who represent  low  income  households  or  organizations
 6        which  represent  such  households,  3  of  whom shall be
 7        representatives of public  utilities  or  other  entities
 8        which provide winter energy services, and 3 of whom shall
 9        be  representatives  of  local  agencies  engaged  by the
10        Department to assist in the administration of this Act.
11             (3)  6  persons  who  shall  be  appointed  by   the
12        Director  of  the  Department  of  Commerce and Community
13        Affairs to  serve  2  two  year  terms  and  until  their
14        successors  are  appointed  and  qualified,  who shall be
15        persons meeting such qualifications as may be required by
16        the federal government  for  the  administration  of  the
17        Weatherization  Assistance  Program  funded  by  the U.S.
18        Department  of  Energy  and  any  such   related   energy
19        assistance programs.
20             (4)  Members  shall  serve without compensation, but
21        may receive reimbursement for actual  costs  incurred  in
22        fulfilling their duties as members of the Council.
23        (b)  The Policy Advisory Council shall have the following
24    duties:
25             (1)  to  monitor  the  administration of this Act to
26        ensure  effective,  efficient,  and  coordinated  program
27        development and implementation;
28             (2)  to assist  the  Department  in  developing  and
29        administering   rules  and  regulations  required  to  be
30        promulgated pursuant to this Act in a  manner  consistent
31        with the purpose and objectives of this Act;
32             (3)  to facilitate and coordinate the collection and
33        exchange of all program data and other information needed
34        by  the  Department and others in fulfilling their duties
                            -249-         SRS90HB0362JJsaam02
 1        pursuant to this Act;
 2             (4)  to advise the Department on the proper level of
 3        support required for effective administration of the Act;
 4             (5)  to provide a  written  opinion  concerning  any
 5        regulation  proposed  pursuant to this Act, and to review
 6        and comment on any  energy  assistance  or  related  plan
 7        required to be prepared by the Department; and
 8             (6)  on  or before March 1 of each year beginning in
 9        1990, to prepare and submit a report to the Governor  and
10        General  Assembly  which  describes the activities of the
11        Department  in  the  development  and  implementation  of
12        energy assistance  and  related  policies  and  programs,
13        which   characterizes   progress   towards   meeting  the
14        objectives  and  requirements  of  this  Act,  and  which
15        recommends any statutory changes which might be needed to
16        further such progress.   The  report  submitted  in  1991
17        shall   include   an   analysis  of  and  recommendations
18        regarding this Act's provisions concerning State  payment
19        of pre-program arrearages; and.
20             (7)  to  advise  the  Department on the use of funds
21        collected pursuant to Section 13 of this Act, and on  any
22        changes to existing low-income energy assistance programs
23        to make effective use of such funds, so long as such uses
24        and  changes  are  consistent  with  the  requirements of
25        subsection (a) of Section 13 of this Act.
26    (Source: P.A. 89-445, eff. 2-7-96.)
27        (Text of Section after amendment by P.A. 89-507)
28        Sec. 5.  Policy Advisory Council.
29        (a)  Within the  Department  of  Commerce  and  Community
30    Affairs  is created a Policy Advisory Council to be comprised
31    of:
32             (1)  the  following  ex  officio  members  or  their
33        designees:   the  Director  of  Commerce  and   Community
34        Affairs  who  shall  serve as Chair of the Committee, the
                            -250-         SRS90HB0362JJsaam02
 1        Director of Natural Resources,  the  Secretary  of  Human
 2        Services,  and  the  Chairman  of  the  Illinois Commerce
 3        Commission; and
 4             (2)  9  persons  who  shall  be  appointed  by   the
 5        Governor to serve 2 year terms and until their successors
 6        are  appointed  and qualified, 3 of whom shall be persons
 7        who represent  low  income  households  or  organizations
 8        which  represent  such  households,  3  of  whom shall be
 9        representatives of public  utilities  or  other  entities
10        which provide winter energy services, and 3 of whom shall
11        be  representatives  of  local  agencies  engaged  by the
12        Department to assist in the administration of this Act.
13             (3)  6  persons  who  shall  be  appointed  by   the
14        Director  of  the  Department  of  Commerce and Community
15        Affairs to  serve  2  two  year  terms  and  until  their
16        successors  are  appointed  and  qualified,  who shall be
17        persons meeting such qualifications as may be required by
18        the federal government  for  the  administration  of  the
19        Weatherization  Assistance  Program  funded  by  the U.S.
20        Department  of  Energy  and  any  such   related   energy
21        assistance programs.
22             (4)  Members  shall  serve without compensation, but
23        may receive reimbursement for actual  costs  incurred  in
24        fulfilling their duties as members of the Council.
25        (b)  The Policy Advisory Council shall have the following
26    duties:
27             (1)  to  monitor  the  administration of this Act to
28        ensure  effective,  efficient,  and  coordinated  program
29        development and implementation;
30             (2)  to assist  the  Department  in  developing  and
31        administering   rules  and  regulations  required  to  be
32        promulgated pursuant to this Act in a  manner  consistent
33        with the purpose and objectives of this Act;
34             (3)  to facilitate and coordinate the collection and
                            -251-         SRS90HB0362JJsaam02
 1        exchange of all program data and other information needed
 2        by  the  Department and others in fulfilling their duties
 3        pursuant to this Act;
 4             (4)  to advise the Department on the proper level of
 5        support required for effective administration of the Act;
 6             (5)  to provide a  written  opinion  concerning  any
 7        regulation  proposed  pursuant to this Act, and to review
 8        and comment on any  energy  assistance  or  related  plan
 9        required to be prepared by the Department; and
10             (6)  on  or before March 1 of each year beginning in
11        1990, to prepare and submit a report to the Governor  and
12        General  Assembly  which  describes the activities of the
13        Department  in  the  development  and  implementation  of
14        energy assistance  and  related  policies  and  programs,
15        which   characterizes   progress   towards   meeting  the
16        objectives  and  requirements  of  this  Act,  and  which
17        recommends any statutory changes which might be needed to
18        further such progress.   The  report  submitted  in  1991
19        shall   include   an   analysis  of  and  recommendations
20        regarding this Act's provisions concerning State  payment
21        of pre-program arrearages; and.
22             (7)  to  advise  the  Department on the use of funds
23        collected pursuant to Section 13 of this Act, and on  any
24        changes to existing low-income energy assistance programs
25        to make effective use of such funds, so long as such uses
26        and  changes  are  consistent  with  the  requirements of
27        subsection (a) of Section 13 of this Act.
28    (Source: P.A. 89-445, eff. 2-7-96; 89-507, eff. 7-1-97.)
29        (305 ILCS 20/13 new)
30        Sec. 13.  Supplemental Low-Income Energy Assistance Fund.
31        (a)  The Supplemental Low-Income Energy  Assistance  Fund
32    is  hereby  created  as a special fund in the State Treasury.
33    The  Supplemental  Low-Income  Energy  Assistance   Fund   is
                            -252-         SRS90HB0362JJsaam02
 1    authorized  to  receive,  by  statutory  deposit,  the moneys
 2    collected   pursuant   to   this   Section.     Subject    to
 3    appropriation,  the  Department  shall  use  moneys  from the
 4    Supplemental Low-Income Energy Assistance Fund  for  payments
 5    to  electric  or  gas public utilities, municipal electric or
 6    gas utilities, and electric cooperatives on behalf  of  their
 7    customers  who  are participants in the program authorized by
 8    Section 4 of this Act, for the  provision  of  weatherization
 9    services   and   for   administration   of  the  Supplemental
10    Low-Income Energy Assistance Fund.  The  yearly  expenditures
11    for weatherization may not exceed 10% of the amount collected
12    during  the  year  pursuant  to this Section.  In determining
13    which  customers  will  participate  in  the   weatherization
14    component,  the  Department  shall  target weatherization for
15    those customers with the greatest energy burden, that is  the
16    lowest   income  and  greatest  utility  bills.   The  yearly
17    administrative expenses of the Supplemental Low-Income Energy
18    Assistance Fund may not exceed 10% of  the  amount  collected
19    during that year pursuant to this Section.
20        (b)  Notwithstanding  the provisions of Section 16-111 of
21    the Public  Utilities  Act,  each  public  utility,  electric
22    cooperative,  as  defined  in  Section  3.4  of  the Electric
23    Supplier Act, and municipal utility, as referenced in Section
24    3-105 of the Public Utilities Act, that  is  engaged  in  the
25    delivery  of  electricity  or the distribution of natural gas
26    within the State of  Illinois  shall,  effective  January  1,
27    1998,  assess  each of its customer accounts a monthly Energy
28    Assistance Charge  for  the  Supplemental  Low-Income  Energy
29    Assistance Fund.  The monthly charge shall be as follows:
30             (1)  $0.40 per month on each account for residential
31        electric service;
32             (2)  $0.40 per month on each account for residential
33        gas service;
34             (3)  $4    per    month    on   each   account   for
                            -253-         SRS90HB0362JJsaam02
 1        non-residential electric service which had less  than  10
 2        megawatts  of  peak  demand  during the previous calendar
 3        year;
 4             (4)  $4   per   month   on    each    account    for
 5        non-residential  gas  service which had distributed to it
 6        less than 4,000,000 therms of  gas  during  the  previous
 7        calendar year;
 8             (5)  $300    per   month   on   each   account   for
 9        non-residential electric service which had  10  megawatts
10        or  greater  of  peak demand during the previous calendar
11        year; and
12             (6)  $300   per   month   on   each   account    for
13        non-residential  gas  service which had 4,000,000 or more
14        therms of gas  distributed  to  it  during  the  previous
15        calendar year.
16        (c)  For purposes of this Section:
17             (1)  "residential  electric  service" means electric
18        utility service for household  purposes  delivered  to  a
19        dwelling  of  2  or  fewer  units which is billed under a
20        residential  rate,  or  electric  utility   service   for
21        household  purposes delivered to a dwelling unit or units
22        which  is  billed  under  a  residential  rate   and   is
23        registered by a separate meter for each dwelling unit;
24             (2)  "residential  gas  service"  means  gas utility
25        service for household purposes distributed to a  dwelling
26        of  2  or fewer units which is billed under a residential
27        rate, or  gas  utility  service  for  household  purposes
28        distributed  to  a dwelling unit or units which is billed
29        under a residential rate and is registered by a  separate
30        meter for each dwelling unit;
31             (3)  "non-residential    electric   service"   means
32        electric  utility  service  which  is   not   residential
33        electric service; and
34             (4)  "non-residential gas service" means gas utility
                            -254-         SRS90HB0362JJsaam02
 1        service which is not residential gas service.
 2        (d)  At  least 45 days prior to the date on which it must
 3    begin  assessing  Energy  Assistance  Charges,  each   public
 4    utility  engaged  in  the  delivery  of  electricity  or  the
 5    distribution  of  natural  gas  shall  file with the Illinois
 6    Commerce  Commission   tariffs   incorporating   the   Energy
 7    Assistance Charge in other charges stated in such tariffs.
 8        (e)  The  Energy  Assistance  Charge assessed by electric
 9    and gas public utilities shall be  considered  a  charge  for
10    public utility service.
11        (f)  On  a  monthly basis, each public utility, municipal
12    utility,  and  electric  cooperative  shall  remit   to   the
13    Department  of  Revenue all moneys received as payment of the
14    Energy Assistance Charge.  If  a  customer  makes  a  partial
15    payment,  a  public  utility,  municipal utility, or electric
16    cooperative may elect  either:  (i)  to  apply  such  partial
17    payments  first to amounts owed to the utility or cooperative
18    for  its  services  and  then  to  payment  for  the   Energy
19    Assistance Charge or (ii) to apply such partial payments on a
20    pro-rata  basis  between  amounts  owed  to  the  utility  or
21    cooperative  for  its  services and to payment for the Energy
22    Assistance Charge.
23        (g)  The Department of Revenue  shall  deposit  into  the
24    Supplemental  Low-Income  Energy  Assistance  Fund all moneys
25    remitted to it in accordance  with  subsection  (f)  of  this
26    Section.
27        (h)  If as of December 31, 2002 the program authorized by
28    Section  4  of this Act has not been replaced by a new energy
29    assistance program which is in operation,  then  the  General
30    Assembly  shall  review  the  program; provided however, that
31    after that date, any public utility,  municipal  utility,  or
32    electric  cooperative  shall  continue  to  assess  an Energy
33    Assistance Charge which was originally assessed on or  before
34    December 31, 2002 and which remains unpaid.
                            -255-         SRS90HB0362JJsaam02
 1        On  or  before  December  31,  2003, the Department shall
 2    prepare a report for the General Assembly on the  expenditure
 3    of  funds  appropriated from the Low-Income Energy Assistance
 4    Block Grant Fund for the program authorized under  Section  4
 5    of this Act.
 6        (i)  The  Department  of Revenue may establish such rules
 7    as it deems necessary to implement this Section.
 8        (j)  The Department of Commerce and Community Affairs may
 9    establish such rules as it deems necessary to implement  this
10    Section.
11        (k)  The charges imposed by this Section shall only apply
12    to  customers  of  municipal  electric utilities and electric
13    cooperatives if the municipal electric  utility  or  electric
14    cooperative  makes  an  affirmative  decision  to  impose the
15    charge.   If  a  municipal  electric  utility   or   electric
16    cooperative  does  not assess this charge, the Department may
17    not  use  funds  from  the  Supplemental  Low-Income   Energy
18    Assistance  Fund  to  provide benefits to its customers under
19    the program authorized by Section 4 of this Act.
20        (305 ILCS 20/14 new)
21        Sec. 14.  Energy Assistance Program Design Group.
22        (a)  This  Section  establishes  an   Energy   Assistance
23    Program  Design  Group  to  advise  the General Assembly with
24    respect to designing a low-income energy  assistance  program
25    for the period beginning on January 1, 2003.
26        (b)  As  promptly  as practicable following the enactment
27    of this amendatory Act of 1997, the General  Assembly,  or  a
28    Joint Committee thereof, shall establish an Energy Assistance
29    Program  Design  Group.  The Energy Assistance Program Design
30    Group shall be chaired by the Director of the  Department  of
31    Commerce   and   Community  Affairs  and  shall  include  one
32    representative of each of the  following:  (i)  the  Illinois
33    Commerce   Commission;   (ii)   the   Department  of  Natural
                            -256-         SRS90HB0362JJsaam02
 1    Resources; (iii) electric public utilities; (iv)  gas  public
 2    utilities; (v) combination gas and electric public utilities;
 3    (vi)  municipal  utilities  and  electric cooperatives; (vii)
 4    electricity and  natural  gas  marketers;  (viii)  low-income
 5    energy   customers;   (ix)  local  agencies  engaged  by  the
 6    Department of Commerce and Community Affairs to assist in the
 7    administration of the Energy  Assistance  Act  of  1989;  (x)
 8    residential   energy   customers;   (xi)   commercial  energy
 9    customers; and (xii) industrial energy customers.
10        (c)  Within 3 months of  its  establishment,  the  Energy
11    Assistance   Program   Design   Group  shall  meet  to  begin
12    consideration of the design and implementation of  an  energy
13    assistance  program  in  Illinois for the period beginning on
14    January 1, 2003.  Within 12 months of its establishment,  the
15    Program Design Group shall hold public hearings to assist its
16    deliberations.
17        (d)  The  Program  Design  Group  shall  provide a report
18    containing its recommendations to the General Assembly on  or
19    before  January  1,  2002.   This  report  must  include  the
20    following:
21             (1)  recommendations   on   the   definition  of  an
22        eligible low-income residential customer;
23             (2)  recommendations regarding the  continuation  of
24        the  program  authorized by Section 4 of this Act and the
25        Supplemental Low-Income Energy Assistance Fund;
26             (3)  recommendations    on    ensuring    low-income
27        residential customers have  access  to  essential  energy
28        services;
29             (4)  recommendations  on addressing past due amounts
30        owed to utilities by low-income persons in Illinois;
31             (5)  demographic and  other  information  (including
32        household consumption information) necessary to determine
33        the  total  number  of customers eligible for assistance,
34        the  total  number  of  customers  likely  to  apply  for
                            -257-         SRS90HB0362JJsaam02
 1        assistance, and funding  estimates  for  any  recommended
 2        program;
 3             (6)  recommendations   on  appropriate  measures  to
 4        encourage   energy    conservation,    efficiency,    and
 5        responsibility among low-income residential customers;
 6             (7)  any    recommended    changes    to    existing
 7        legislation; and
 8             (8)  an  estimate  of  the  cost of implementing the
 9        Program Design Group's recommendations.
10        (e)  The recommendations adopted by  the  Program  Design
11    Group  shall  be  competitively  neutral  in  their impact on
12    providers in the energy market and shall spread program costs
13    across the broadest possible base.
14        (f)  The Department of  Commerce  and  Community  Affairs
15    shall  hold  public  hearings  on  the recommendations of the
16    Energy Assistance Program Design Group during  calendar  year
17    2002.
18        Section  90.  The  State Finance Act is amended by adding
19    Sections 5.449, 5.450, and 5.451 as follows:
20        (30 ILCS 105/5.449 new)
21        Sec. 5.449. The Renewable Energy Resources Trust Fund.
22        (30 ILCS 105/5.450 new)
23        Sec. 5.450. The Energy Efficiency Trust Fund.
24        (30 ILCS 105/5.451 new)
25        Sec. 5.451. The Supplemental Low-Income Energy Assistance
26    Fund.
27        Section 95. The Illinois  Antitrust  Act  is  amended  by
28    changing Section 5 as follows:
                            -258-         SRS90HB0362JJsaam02
 1        (740 ILCS 10/5) (from Ch. 38, par. 60-5)
 2        Sec.  5.  No provisions of this Act shall be construed to
 3    make illegal:
 4        (1)  the activities  of  any  labor  organization  or  of
 5    individual members thereof which are directed solely to labor
 6    objectives  which are legitimate under the laws of either the
 7    State of Illinois or the United States;
 8        (2)  the activities of any agricultural or  horticultural
 9    cooperative    organization,    whether    incorporated    or
10    unincorporated,  or  of individual members thereof, which are
11    directed   solely   to   objectives   of   such   cooperative
12    organizations which are legitimate under the laws  of  either
13    the State of Illinois or the United States;
14        (3)  the  activities of any public utility, as defined in
15    Section 3-105 of the Public Utilities Act to the extent  that
16    such  activities  are  subject  to  a clearly articulated and
17    affirmatively expressed State policy to  replace  competition
18    with regulation, where the conduct to be exempted is actively
19    supervised  by  the  State  itself  the  jurisdiction  of the
20    Illinois Commerce Commission;
21        (4)  The activities of a telecommunications  carrier,  as
22    defined in Section 13-202 of the Public Utilities Act, to the
23    extent   those   activities   relate   to  the  provision  of
24    noncompetitive telecommunications services under  the  Public
25    Utilities  Act  and  are  subject  to the jurisdiction of the
26    Illinois  Commerce  Commission  or  to  the   activities   of
27    telephone  mutual  concerns  referred to in Section 13-202 of
28    the Public Utilities  Act  to  the  extent  those  activities
29    relate  to the provision and maintenance of telephone service
30    to owners and customers;
31        (5)  the activities (including, but not limited  to,  the
32    making  of  or  participating  in joint underwriting or joint
33    reinsurance arrangement) of  any  insurer,  insurance  agent,
34    insurance  broker,  independent  insurance adjuster or rating
                            -259-         SRS90HB0362JJsaam02
 1    organization to the extent that such activities  are  subject
 2    to  regulation  by  the  Director  of Insurance of this State
 3    under, or are permitted or are authorized by,  the  Insurance
 4    Code or any other law of this State;
 5        (6)  the  religious  and  charitable  activities  of  any
 6    not-for-profit corporation, trust or organization established
 7    exclusively for religious or charitable purposes, or for both
 8    purposes;
 9        (7)  the  activities  of  any  not-for-profit corporation
10    organized  to  provide  telephone  service  on  a  mutual  or
11    co-operative  basis  or  electrification  on  a  co-operative
12    basis, to the extent such activities relate to the  marketing
13    and distribution of telephone or electrical service to owners
14    and customers;
15        (8)  the  activities engaged in by securities dealers who
16    are (i) licensed by the State of Illinois or (ii) members  of
17    the  National  Association  of  Securities  Dealers  or (iii)
18    members of any National Securities Exchange  registered  with
19    the  Securities  and Exchange Commission under the Securities
20    Exchange Act of 1934, as amended,  in  the  course  of  their
21    business   of  offering,  selling,  buying  and  selling,  or
22    otherwise trading in or underwriting  securities,  as  agent,
23    broker,   or   principal,  and  activities  of  any  National
24    Securities   Exchange   so    registered,    including    the
25    establishment of commission rates and schedules of charges;
26        (9)  the activities of any board of trade designated as a
27    "contract  market"  by  the  Secretary  of Agriculture of the
28    United States pursuant to Section 5 of the Commodity Exchange
29    Act, as amended;
30        (10)  the activities of any motor carrier, rail  carrier,
31    or  common  carrier  by  pipeline,  as  defined in the Common
32    Carrier by Pipeline Law of the Public Utilities Act,  to  the
33    extent  that  such  activities are permitted or authorized by
34    the Act or are subject to regulation by the Illinois Commerce
                            -260-         SRS90HB0362JJsaam02
 1    Commission;
 2        (11)  the activities of any state or national bank to the
 3    extent that such activities are regulated  or  supervised  by
 4    officers of the state or federal government under the banking
 5    laws of this State or the United States;
 6        (12)  the  activities of any state or federal savings and
 7    loan association to  the  extent  that  such  activities  are
 8    regulated  or  supervised by officers of the state or federal
 9    government under the savings and loan laws of this  State  or
10    the United States;
11        (13)  the  activities  of  any  bona  fide not-for-profit
12    association, society or board, of attorneys, practitioners of
13    medicine,  architects,  engineers,  land  surveyors  or  real
14    estate brokers licensed and regulated by  an  agency  of  the
15    State  of  Illinois,  in  recommending schedules of suggested
16    fees, rates or commissions for use solely  as  guidelines  in
17    determining charges for professional and technical services;
18        (14)  Conduct  involving  trade  or  commerce (other than
19    import trade or import commerce) with foreign nations unless:
20             (a)  such conduct has  a  direct,  substantial,  and
21        reasonably foreseeable effect:
22                  (i)  on trade or commerce which is not trade or
23             commerce with foreign nations, or on import trade or
24             import commerce with foreign nations; or
25                  (ii)  on  export  trade or export commerce with
26             foreign nations of a person engaged in such trade or
27             commerce in the United States; and
28             (b)  such effect gives rise to  a  claim  under  the
29        provisions of this Act, other than this subsection (14).
30             (c)  If  this  Act applies to conduct referred to in
31        this subsection (14) only because of  the  provisions  of
32        paragraph  (a)(ii),  then  this  Act  shall apply to such
33        conduct only for injury to export business in the  United
34        States which affects this State; or
                            -261-         SRS90HB0362JJsaam02
 1        (15)  the  activities  of  a  unit of local government or
 2    school district and the activities of the  employees,  agents
 3    and  officers  of  a  unit  of  local  government  or  school
 4    district.
 5    (Source: P.A. 90-185, eff. 7-23-97.)
 6        Section  97.   No  acceleration or delay.  Where this Act
 7    makes changes in a statute that is represented in this Act by
 8    text that is not yet or no longer in effect (for  example,  a
 9    Section  represented  by  multiple versions), the use of that
10    text does not accelerate or delay the taking  effect  of  (i)
11    the  changes made by this Act or (ii) provisions derived from
12    any other Public Act.
13                              ARTICLE 8
14        Section 99.   Effective  date.   Except  as  provided  in
15    Article 4, this Act takes effect on becoming law.".

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