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90_HB1164
220 ILCS 5/9-220 from Ch. 111 2/3, par. 9-220
Amends the Public Utilities Act. Removes coal
transportation costs from allowable costs recoverable as a
cost of fuel. Effective immediately.
LRB9004269JSgc
LRB9004269JSgc
1 AN ACT to amend the Public Utilities Act by changing
2 Section 9-220.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Public Utilities Act is amended by
6 changing Section 9-220 as follows:
7 (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220)
8 Sec. 9-220. Modification of rates; cost of fuel.
9 Notwithstanding the provisions of Section 9-201, the
10 Commission may authorize the increase or decrease of rates
11 and charges based upon changes in the cost of fuel used in
12 the generation or production of electric power, changes in
13 the cost of purchased power, or changes in the cost of
14 purchased gas through the application of fuel adjustment
15 clauses or purchased gas adjustment clauses. The Commission
16 may also authorize the increase or decrease of rates and
17 charges based upon expenditures or revenues resulting from
18 the purchase or sale of emission allowances created under the
19 Clean Air Act Amendments of 1990, as defined in Section
20 8-402.1, through such fuel adjustment clauses, as a cost of
21 fuel. For the purposes of this paragraph, cost of fuel used
22 in the generation or production of electric power shall
23 include the amount of any fees paid by the utility for the
24 implementation and operation of a process for the
25 desulfurization of the flue gas when burning high sulfur coal
26 at any location within the State of Illinois irrespective of
27 the attainment status designation of such location, except
28 for any fees or costs related to a service contract which is
29 part of a utility's Clean Air Act compliance plan approved
30 pursuant to Section 8-402.1, to the extent that recovery of
31 comparable costs would not be permitted under this Section if
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1 incurred directly by a utility owning and operating such a
2 facility; but shall not include transportation costs of coal.
3 except as otherwise provided in this paragraph. Such costs
4 of fuel shall, when requested by a utility or at the
5 conclusion of the utility's next general electric rate
6 proceeding, whichever shall first occur, include
7 transportation costs of coal purchased under existing coal
8 purchase contracts. For purposes of this paragraph "existing
9 coal purchase contracts" means contracts for the purchase of
10 coal in effect on the effective date of this amendatory Act
11 of 1991, as such contracts may thereafter be amended, but
12 only to the extent that any such amendment does not increase
13 the aggregate quantity of coal to be purchased under such
14 contract. Cost shall be based upon uniformly applied
15 accounting principles. Annually, the Commission shall
16 initiate public hearings to determine whether the clauses
17 reflect actual costs of fuel, gas, or power, or coal
18 transportation purchased to determine whether such purchases
19 were prudent, and to reconcile any amounts collected with the
20 actual costs of fuel, power, or gas, or coal transportation
21 prudently purchased. In each such proceeding, the burden of
22 proof shall be upon the utility to establish the prudency of
23 its cost of fuel, power, or gas, or coal transportation
24 purchases and costs.
25 The Commission shall have authority to promulgate rules
26 and regulations to carry out the provisions of this
27 paragraph.
28 (Source: P.A. 87-173; 88-488.)
29 Section 99. Effective date. This Act takes effect upon
30 becoming law.