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90_HB2433
220 ILCS 5/16-111
Amends the Public Utilities Act. Provides that under the
Electric Service Customer Choice and Rate Relief Law of 1997
residential retail rates shall be reduced effective February
1, rather than August 1, 1998. Effective immediately.
LRB9008410JSgc
LRB9008410JSgc
1 AN ACT to amend the Public Utilities Act by changing
2 Section 16-111.
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 16-111 as follows:
7 (220 ILCS 5/16-111)
8 Sec. 16-111. Rates and restructuring transactions during
9 mandatory transition period.
10 (a) During the mandatory transition period,
11 notwithstanding any provision of Article IX of this Act, and
12 except as provided in subsections (b), (d), (e), and (f) of
13 this Section, the Commission shall not (i) initiate,
14 authorize or order any change by way of increase (other than
15 in connection with a request for rate increase which was
16 filed after September 1, 1997 but prior to October 15, 1997,
17 by an electric utility serving less than 12,500 customers in
18 this State), (ii) initiate or, unless requested by the
19 electric utility, authorize or order any change by way of
20 decrease, restructuring or unbundling (except as provided in
21 Section 16-109A), in the rates of any electric utility that
22 were in effect on October 1, 1996, or (iii) in any order
23 approving any application for a merger pursuant to Section
24 7-204 that was pending as of May 16, 1997, impose any
25 condition requiring any filing for an increase, decrease, or
26 change in, or other review of, an electric utility's rates or
27 enforce any such condition of any such order; provided,
28 however, that this subsection shall not prohibit the
29 Commission from:
30 (1) approving the application of an electric
31 utility to implement an alternative to rate of return
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1 regulation or a regulatory mechanism that rewards or
2 penalizes the electric utility through adjustment of
3 rates based on utility performance, pursuant to Section
4 9-244;
5 (2) authorizing an electric utility to eliminate
6 its fuel adjustment clause and adjust its base rate
7 tariffs in accordance with subsection (b), (d), or (f) of
8 Section 9-220 of this Act, to fix its fuel adjustment
9 factor in accordance with subsection (c) of Section 9-220
10 of this Act, or to eliminate its fuel adjustment clause
11 in accordance with subsection (e) of Section 9-220 of
12 this Act;
13 (3) ordering into effect tariffs for delivery
14 services and transition charges in accordance with
15 Sections 16-104 and 16-108, for real-time pricing in
16 accordance with Section 16-107, or the options required
17 by Section 16-110 and subsection (n) of 16-112, allowing
18 a billing experiment in accordance with Section 16-106,
19 or modifying delivery services tariffs in accordance with
20 Section 16-109; or
21 (4) ordering or allowing into effect any tariff to
22 recover charges pursuant to Sections 9-201.5, 9-220.1,
23 9-221, 9-222 (except as provided in Section 9-222.1),
24 16-108, and 16-114 of this Act, Section 5-5 of the
25 Electricity Infrastructure Maintenance Fee Law, Section
26 6-5 of the Renewable Energy, Energy Efficiency, and Coal
27 Resources Development Law of 1997, and Section 13 of the
28 Energy Assistance Act of 1989.
29 (b) Notwithstanding the provisions of subsection (a),
30 each Illinois electric utility serving more than 12,500
31 customers in Illinois shall file tariffs (i) reducing,
32 effective February August 1, 1998, each component of its base
33 rates to residential retail customers by 15% from the base
34 rates in effect immediately prior to January 1, 1998 and (ii)
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1 if the public utility provides electric service to more than
2 500,000 customers in this State on December 16, the effective
3 date of this amendatory Act of 1997, reducing, effective May
4 1, 2002, each component of its base rates to residential
5 retail customers by an additional 5% from the base rates in
6 effect immediately prior to January 1, 1998. Provided,
7 however, that (A) if an electric utility's average
8 residential retail rate is less than or equal to the average
9 residential retail rate for a group of Midwest Utilities
10 (consisting of all investor-owned electric utilities with
11 annual system peaks in excess of 1000 megawatts in the States
12 of Illinois, Indiana, Iowa, Kentucky, Michigan, Missouri,
13 Ohio, and Wisconsin), based on data reported on Form 1 to the
14 Federal Energy Regulatory Commission for calendar year 1995,
15 then it shall only be required to file tariffs (i) reducing,
16 effective February August 1, 1998, each component of its base
17 rates to residential retail customers by 5% from the base
18 rates in effect immediately prior to January 1, 1998, (ii)
19 reducing, effective October 1, 2000, each component of its
20 base rates to residential retail customers by the lesser of
21 5% of the base rates in effect immediately prior to January
22 1, 1998 or the percentage by which the electric utility's
23 average residential retail rate exceeds the average
24 residential retail rate of the Midwest Utilities, based on
25 data reported on Form 1 to the Federal Energy Regulatory
26 Commission for calendar year 1999, and (iii) reducing,
27 effective October 1, 2002, each component of its base rates
28 to residential retail customers by an additional amount equal
29 to the lesser of 5% of the base rates in effect immediately
30 prior to January 1, 1998 or the percentage by which the
31 electric utility's average residential retail rate exceeds
32 the average residential retail rate of the Midwest Utilities,
33 based on data reported on Form 1 to the Federal Energy
34 Regulatory Commission for calendar year 2001; and (B) if the
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1 average residential retail rate of an electric utility
2 serving between 150,000 and 250,000 retail customers in this
3 State on January 1, 1995 is less than or equal to 90% of the
4 average residential retail rate for the Midwest Utilities,
5 based on data reported on Form 1 to the Federal Energy
6 Regulatory Commission for calendar year 1995, then it shall
7 only be required to file tariffs (i) reducing, effective
8 February August 1, 1998, each component of its base rates to
9 residential retail customers by 2% from the base rates in
10 effect immediately prior to January 1, 1998; (ii) reducing,
11 effective October 1, 2000, each component of its base rates
12 to residential retail customers by 2% from the base rate in
13 effect immediately prior to January 1, 1998; and (iii)
14 reducing, effective October 1, 2002, each component of its
15 base rates to residential retail customers by 1% from the
16 base rates in effect immediately prior to January 1, 1998.
17 Provided, further, that any electric utility for which a
18 decrease in base rates has been or is placed into effect
19 between October 1, 1996 and the dates specified in the
20 preceding sentences of this subsection, other than pursuant
21 to the requirements of this subsection, shall be entitled to
22 reduce the amount of any reduction or reductions in its base
23 rates required by this subsection by the amount of such other
24 decrease. The tariffs required under this subsection shall be
25 filed 45 days in advance of the effective date.
26 Notwithstanding anything to the contrary in Section 9-220 of
27 this Act, no restatement of base rates in conjunction with
28 the elimination of a fuel adjustment clause under that
29 Section shall result in a lesser decrease in base rates than
30 customers would otherwise receive under this subsection had
31 the electric utility's fuel adjustment clause not been
32 eliminated.
33 (c) Any utility reducing its base rates by 15% on
34 February August 1, 1998 pursuant to subsection (b) shall
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1 include the following statement on its bills for residential
2 customers from February August 1 through December 31, 1998:
3 "Effective February August 1, 1998, your rates have been
4 reduced by 15% by the Electric Service Customer Choice and
5 Rate Relief Law of 1997 passed by the Illinois General
6 Assembly.". Any utility reducing its base rates by 5% on
7 February August 1, 1998, pursuant to subsection (b) shall
8 include the following statement on its bills for residential
9 customers from February August 1 through December 31, 1998:
10 "Effective February August 1, 1998, your rates have been
11 reduced by 5% by the Electric Service Customer Choice and
12 Rate Relief Law of 1997 passed by the Illinois General
13 Assembly.".
14 Any utility reducing its base rates by 2% on February
15 August 1, 1998 pursuant to subsection (b) shall include the
16 following statement on its bills for residential customers
17 from February August 1 through December 31, 1998: "Effective
18 February August 1, 1998, your rates have been reduced by 2%
19 by the Electric Service Customer Choice and Rate Relief Law
20 of 1997 passed by the Illinois General Assembly.".
21 (d) During the mandatory transition period, but not
22 before January 1, 2000, and notwithstanding the provisions
23 of subsection (a), an electric utility may request an
24 increase in its base rates if the electric utility
25 demonstrates that the 2-year average of its earned rate of
26 return on common equity, calculated as its net income
27 applicable to common stock divided by the average of its
28 beginning and ending balances of common equity using data
29 reported in the electric utility's Form 1 report to the
30 Federal Energy Regulatory Commission but adjusted to remove
31 the effects of accelerated depreciation or amortization or
32 other transition or mitigation measures implemented by the
33 electric utility pursuant to subsection (g) of this Section
34 and the effect of any refund paid pursuant to subsection (e)
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1 of this Section, is below the 2-year average for the same 2
2 years of the monthly average yields of 30-year U.S. Treasury
3 bonds published by the Board of Governors of the Federal
4 Reserve System in its weekly H.15 Statistical Release or
5 successor publication. The Commission shall review the
6 electric utility's request, and may review the justness and
7 reasonableness of all rates for tariffed services, in
8 accordance with the provisions of Article IX of this Act,
9 provided that the Commission shall consider any special or
10 negotiated adjustments to the revenue requirement agreed to
11 between the electric utility and the other parties to the
12 proceeding. In setting rates under this Section, the
13 Commission shall exclude the costs and revenues that are
14 associated with competitive services and any billing or
15 pricing experiments conducted under Section 16-106.
16 (e) For the purposes of this subsection (e) all
17 calculations and comparisons shall be performed for the
18 Illinois operations of multijurisdictional utilities. During
19 the mandatory transition period, notwithstanding the
20 provisions of subsection (a), if the 2-year average of an
21 electric utility's earned rate of return on common equity,
22 calculated as its net income applicable to common stock
23 divided by the average of its beginning and ending balances
24 of common equity using data reported in the electric
25 utility's Form 1 report to the Federal Energy Regulatory
26 Commission but adjusted to remove the effect of any refund
27 paid under this subsection (e), and further adjusted to
28 include the annual amortization of any difference between the
29 consideration received by an affiliated interest of the
30 electric utility in the sale of an asset which had been sold
31 or transferred by the electric utility to the affiliated
32 interest subsequent to December 16, the effective date of
33 this amendatory Act of 1997 and the consideration for which
34 such asset had been sold or transferred to the affiliated
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1 interest, with such difference to be amortized ratably from
2 the date of the sale by the affiliated interest to December
3 31, 2006, exceeds the 2-year average of the Index for the
4 same 2 years by 1.5 or more percentage points, the electric
5 utility shall make refunds to customers beginning the first
6 billing day of April in the following year in the manner
7 described in paragraph (3) of this subsection. For purposes
8 of this subsection (e), the "Index" shall be the sum of (A)
9 the average for the 12 months ended September 30 of the
10 monthly average yields of 30-year U.S. Treasury bonds
11 published by the Board of Governors of the Federal Reserve
12 System in its weekly H.15 Statistical Release or successor
13 publication for each year 1998 through 2004, and (B) (i) 4.00
14 percentage points for each of the 12-month periods ending
15 September 30, 1998 through September 30, 1999 or 8.00
16 percentage points if the electric utility's average
17 residential retail rate is less than or equal to 90% of the
18 average residential retail rate for the "Midwest Utilities",
19 as that term is defined in subsection (b) of this Section,
20 based on data reported on Form 1 to the Federal Energy
21 Regulatory Commission for calendar year 1995, and the
22 electric utility served between 150,000 and 250,000 retail
23 customers on January 1, 1995, or (ii) 5.00 percentage points
24 for each of the 12-month periods ending September 30, 2000
25 through September 30, 2004 or 9.00 percentage points if the
26 electric utility's average residential retail rate is less
27 than or equal to 90% of the average residential retail rate
28 for the "Midwest Utilities", as that term is defined in
29 subsection (b) of this Section, based on data reported on
30 Form 1 to the Federal Energy Regulatory Commission for
31 calendar year 1995 and the electric utility served between
32 150,000 and 250,000 retail customers in this State on January
33 1, 1995.
34 (1) For purposes of this subsection (e), "excess
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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
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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
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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
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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 December 16, the effective date of this
12 amendatory Act of 1997, and enters into a power
13 purchase agreement with the entity to which such
14 generating plant is sold, assigned, leased, or
15 otherwise transferred, the electric utility also
16 agrees, if its fuel adjustment clause has not
17 already been eliminated, to eliminate its fuel
18 adjustment clause in accordance with subsection (b)
19 of Section 9-220 for a period of time equal to the
20 length of any such power purchase agreement or
21 successor agreement, or until January 1, 2005,
22 whichever is longer; if the capacity of the
23 generating plant so transferred and related power
24 purchase agreement does not result in the
25 elimination of the fuel adjustment clause under this
26 subsection, and the fuel adjustment clause has not
27 already been eliminated, the electric utility shall
28 agree that the costs associated with the transferred
29 plant that are included in the calculation of the
30 rate per kilowatt-hour to be applied pursuant to the
31 electric utility's fuel adjustment clause during
32 such period shall not exceed the per kilowatt-hour
33 cost associated with such generating plant included
34 in the electric utility's fuel adjustment clause
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1 during the full calendar year preceding the
2 transfer, with such limit to be adjusted each year
3 thereafter by the Gross Domestic Product Implicit
4 Price Deflator.
5 (vi) In addition, if the electric utility
6 proposes to sell, assign, or lease, (A) either (1)
7 an amount of generating plant that brings the amount
8 of net dependable generating capacity transferred
9 pursuant to this subsection to an amount equal to or
10 greater than 15% of its net dependable capacity on
11 December 16, the effective date of this amendatory
12 Act of 1997, or (2) one or more generating plants
13 with a total net dependable capacity of 1100
14 megawatts, or (B) transmission and distribution
15 facilities that either (1) bring the amount of
16 transmission and distribution facilities transferred
17 pursuant to this subsection to an amount equal to or
18 greater than 15% of the electric utility's total
19 depreciated original cost investment in such
20 facilities, or (2) represent an investment of
21 $25,000,000 in terms of total depreciated original
22 cost, the electric utility shall provide, in
23 addition to the information listed in subparagraphs
24 (i) through (v), the following information: (A) a
25 description of how the electric utility will meet
26 its service obligations under this Act in a safe and
27 reliable manner and (B) the electric utility's
28 projected earned rate of return on common equity,
29 calculated in accordance with subsection (d) of this
30 Section, for each year from the date of the notice
31 through December 31, 2004 both with and without the
32 proposed transaction. If the Commission has not
33 issued an order initiating a hearing on the proposed
34 transaction within 30 days after the date the
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1 electric utility's notice is filed, the transaction
2 shall be deemed approved. The Commission may, after
3 notice and hearing, prohibit the proposed
4 transaction if it makes either or both of the
5 following findings: (1) that the proposed
6 transaction will render the electric utility unable
7 to provide its tariffed services in a safe and
8 reliable manner, or (2) that there is a strong
9 likelihood that consummation of the proposed
10 transaction will result in the electric utility
11 being entitled to request an increase in its base
12 rates during the mandatory transition period
13 pursuant to subsection (d) of this Section. Any
14 hearing initiated by the Commission into the
15 proposed transaction shall be completed, and the
16 Commission's final order approving or prohibiting
17 the proposed transaction shall be entered, within 90
18 days after the date the electric utility's notice
19 was filed. Provided, however, that a sale,
20 assignment, or lease of transmission facilities to
21 an independent system operator that meets the
22 requirements of Section 16-126 shall not be subject
23 to Commission approval under this Section.
24 In any proceeding conducted by the Commission
25 pursuant to this subparagraph (vi), intervention
26 shall be limited to parties with a direct interest
27 in the transaction which is the subject of the
28 hearing and any statutory consumer protection agency
29 as defined in subsection (d) of Section 9-102.1.
30 Notwithstanding the provisions of Section 10-113 of
31 this Act, any application seeking rehearing of an
32 order issued under this subparagraph (vi), whether
33 filed by the electric utility or by an intervening
34 party, shall be filed within 10 days after service
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1 of the order.
2 The Commission shall not in any subsequent proceeding or
3 otherwise, review such a reorganization or other transaction
4 authorized by this Section, but shall retain the authority to
5 allocate costs as stated in Section 16-111(i). An entity to
6 which an electric utility sells, assigns, leases or transfers
7 assets pursuant to this subsection (g) shall not, as a result
8 of the transactions specified in this subsection (g), be
9 deemed a public utility as defined in Section 3-105. Nothing
10 in this subsection (g) shall change any requirement under the
11 jurisdiction of the Illinois Department of Nuclear Safety
12 including, but not limited to, the payment of fees. Nothing
13 in this subsection (g) shall exempt a utility from obtaining
14 a certificate pursuant to Section 8-406 of this Act for the
15 construction of a new electric generating facility. Nothing
16 in this subsection (g) is intended to exempt the transactions
17 hereunder from the operation of the federal or State
18 antitrust laws. Nothing in this subsection (g) shall require
19 an electric utility to use the procedures specified in this
20 subsection for any of the transactions specified herein. Any
21 other procedure available under this Act may, at the electric
22 utility's election, be used for any such transaction.
23 (h) During the mandatory transition period, the
24 Commission shall not establish or use any rates of
25 depreciation, which for purposes of this subsection shall
26 include amortization, for any electric utility other than
27 those established pursuant to subsection (c) of Section 5-104
28 of this Act or utilized pursuant to subsection (g) of this
29 Section. Provided, however, that in any proceeding to review
30 an electric utility's rates for tariffed services pursuant to
31 Section 9-201, 9-202, 9-250 or 16-111(d) of this Act, the
32 Commission may establish new rates of depreciation for the
33 electric utility in the same manner provided in subsection
34 (d) of Section 5-104 of this Act. An electric utility
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1 implementing an accelerated cost recovery method including
2 accelerated depreciation, accelerated amortization or other
3 capital recovery methods, or recording reductions to the
4 original cost of its assets, pursuant to subsection (g) of
5 this Section, shall file a statement with the Commission
6 describing the accelerated cost recovery method to be
7 implemented or the reduction in the original cost of its
8 assets to be recorded. Upon the filing of such statement,
9 the accelerated cost recovery method or the reduction in the
10 original cost of assets shall be deemed to be approved by the
11 Commission as though an order had been entered by the
12 Commission.
13 (i) Subsequent to the mandatory transition period, the
14 Commission, in any proceeding to establish rates and charges
15 for tariffed services offered by an electric utility, shall
16 consider only (1) the then current or projected revenues,
17 costs, investments and cost of capital directly or indirectly
18 associated with the provision of such tariffed services; (2)
19 collection of transition charges in accordance with Sections
20 16-102 and 16-108 of this Act; (3) recovery of any employee
21 transition costs as described in Section 16-128 which the
22 electric utility is continuing to incur, including recovery
23 of any unamortized portion of such costs previously incurred
24 or committed, with such costs to be equitably allocated among
25 bundled services, delivery services, and contracts with
26 alternative retail electric suppliers; and (4) recovery of
27 the costs associated with the electric utility's compliance
28 with decommissioning funding requirements; and shall not
29 consider any other revenues, costs, investments or cost of
30 capital of either the electric utility or of any affiliate of
31 the electric utility that are not associated with the
32 provision of tariffed services. In setting rates for
33 tariffed services, the Commission shall equitably allocate
34 joint and common costs and investments between the electric
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1 utility's competitive and tariffed services. In determining
2 the justness and reasonableness of the electric power and
3 energy component of an electric utility's rates for tariffed
4 services subsequent to the mandatory transition period and
5 prior to the time that the provision of such electric power
6 and energy is declared competitive, the Commission shall
7 consider the extent to which the electric utility's tariffed
8 rates for such component for each customer class exceed the
9 market value determined pursuant to Section 16-112, and, if
10 the electric power and energy component of such tariffed rate
11 exceeds the market value by more than 10% for any customer
12 class, may establish such electric power and energy component
13 at a rate equal to the market value plus 10%. In any such
14 case, the Commission may also elect to extend the provisions
15 of Section 16-111(e) for any period in which the electric
16 utility is collecting transition charges, using information
17 applicable to such period.
18 (j) During the mandatory transition period, an electric
19 utility may elect to transfer to a non-operating income
20 account under the Commission's Uniform System of Accounts
21 either or both of (i) an amount of unamortized investment tax
22 credit that is in addition to the ratable amount which is
23 credited to the electric utility's operating income account
24 for the year in accordance with Section 46(f)(2) of the
25 federal Internal Revenue Code of 1986, as in effect prior to
26 P.L. 101-508, or (ii) "excess tax reserves", as that term is
27 defined in Section 203(e)(2)(A) of the federal Tax Reform Act
28 of 1986, provided that (A) the amount transferred may not
29 exceed the amount of the electric utility's assets that were
30 created pursuant to Statement of Financial Accounting
31 Standards No. 71 which the electric utility has written off
32 during the mandatory transition period, and (B) the transfer
33 shall not be effective until approved by the Internal Revenue
34 Service. An electric utility electing to make such a
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1 transfer shall file a statement with the Commission stating
2 the amount and timing of the transfer for which it intends to
3 request approval of the Internal Revenue Service, along with
4 a copy of its proposed request to the Internal Revenue
5 Service for a ruling. The Commission shall issue an order
6 within 14 days after the electric utility's filing approving,
7 subject to receipt of approval from the Internal Revenue
8 Service, the proposed transfer.
9 (Source: P.A. 90-561, eff. 12-16-97; 90-563, eff. 12-16-97.)
10 Section 99. Effective date. This Act takes effect upon
11 becoming law.