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90_SB0056enr
220 ILCS 5/8-204 from Ch. 111 2/3, par. 8-204
Amends the Public Utilities Act. Adds a Section caption
and makes stylistic changes to a Section concerning the use
of life-support equipment. Effective immediately.
LRB9001051JSgc
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1 AN ACT concerning the generation of electricity, amending
2 a named Act.
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, if and
6 only if the provisions of House Bill 362 of the 90th General
7 Assembly that are changed by this amendatory Act of 1997
8 become law, by changing Section 16-111 as follows:
9 (220 ILCS 5/16-111)
10 Sec. 16-111. Rates and restructuring transactions during
11 mandatory transition period.
12 (a) During the mandatory transition period,
13 notwithstanding any provision of Article IX of this Act, and
14 except as provided in subsections (b), (d), (e), and (f) of
15 this Section, the Commission shall not (i) initiate,
16 authorize or order any change by way of increase (other than
17 in connection with a request for rate increase which was
18 filed after September 1, 1997 but prior to October 15, 1997,
19 by an electric utility serving less than 12,500 customers in
20 this state), (ii) initiate or, unless requested by the
21 electric utility, authorize or order any change by way of
22 decrease, restructuring or unbundling (except as provided in
23 Section 16-109A), in the rates of any electric utility that
24 were in effect on October 1, 1996, or (iii) in any order
25 approving any application for a merger pursuant to Section
26 7-204 that was pending as of May 16, 1997, impose any
27 condition requiring any filing for an increase, decrease, or
28 change in, or other review of, an electric utility's rates or
29 enforce any such condition of any such order; provided,
30 however, that this subsection shall not prohibit the
31 Commission from:
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1 (1) approving the application of an electric
2 utility to implement an alternative to rate of return
3 regulation or a regulatory mechanism that rewards or
4 penalizes the electric utility through adjustment of
5 rates based on utility performance, pursuant to Section
6 9-244;
7 (2) authorizing an electric utility to eliminate
8 its fuel adjustment clause and adjust its base rate
9 tariffs in accordance with subsection (b), (d), or (f) of
10 Section 9-220 of this Act, to fix its fuel adjustment
11 factor in accordance with subsection (c) of Section 9-220
12 of this Act, or to eliminate its fuel adjustment clause
13 in accordance with subsection (e) of Section 9-220 of
14 this Act;
15 (3) ordering into effect tariffs for delivery
16 services and transition charges in accordance with
17 Sections 16-104 and 16-108, for real-time pricing in
18 accordance with Section 16-107, or the options required
19 by Section 16-110 and subsection (n) of 16-112, allowing
20 a billing experiment in accordance with Section 16-106,
21 or modifying delivery services tariffs in accordance with
22 Section 16-109; or
23 (4) ordering or allowing into effect any tariff to
24 recover charges pursuant to Sections 9-201.5, 9-220.1,
25 9-221, 9-222 (except as provided in Section 9-222.1),
26 16-108, and 16-114 of this Act, Section 5-5 of the
27 Electricity Infrastructure Maintenance Fee Law, Section
28 6-5 of the Renewable Energy, Energy Efficiency, and Coal
29 Resources Development Law of 1997, and Section 13 of the
30 Energy Assistance Act of 1989.
31 (b) Notwithstanding the provisions of subsection (a),
32 each Illinois electric utility serving more than 12,500
33 customers in Illinois shall file tariffs (i) reducing,
34 effective August 1, 1998, each component of its base rates to
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1 residential retail customers by 15% from the base rates in
2 effect immediately prior to January 1, 1998 and (ii) if the
3 public utility provides electric service to more than 500,000
4 customers in this State on the effective date of this
5 amendatory Act of 1997, reducing, effective May 1, 2002, each
6 component of its base rates to residential retail customers
7 by an additional 5% from the base rates in effect immediately
8 prior to January 1, 1998. Provided, however, that (A) if an
9 electric utility's average residential retail rate is less
10 than or equal to the average residential retail rate for a
11 group of Midwest Utilities (consisting of all investor-owned
12 electric utilities with annual system peaks in excess of 1000
13 megawatts in the States of Illinois, Indiana, Iowa, Kentucky,
14 Michigan, Missouri, Ohio, and Wisconsin), based on data
15 reported on Form 1 to the Federal Energy Regulatory
16 Commission for calendar year 1995, then it shall only be
17 required to file tariffs (i) reducing, effective August 1,
18 1998, each component of its base rates to residential retail
19 customers by 5% from the base rates in effect immediately
20 prior to January 1, 1998, (ii) reducing, effective October 1,
21 2000, each component of its base rates to residential retail
22 customers by the lesser of 5% of the base rates in effect
23 immediately prior to January 1, 1998 or the percentage by
24 which the electric utility's average residential retail rate
25 exceeds the average residential retail rate of the Midwest
26 Utilities, based on data reported on Form 1 to the Federal
27 Energy Regulatory Commission for calendar year 1999, and
28 (iii) reducing, effective October 1, 2002, each component of
29 its base rates to residential retail customers by an
30 additional amount equal to the lesser of 5% of the base rates
31 in effect immediately prior to January 1, 1998 or the
32 percentage by which the electric utility's average
33 residential retail rate exceeds the average residential
34 retail rate of the Midwest Utilities, based on data reported
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1 on Form 1 to the Federal Energy Regulatory Commission for
2 calendar year 2001; and (B) if the average residential retail
3 rate of an electric utility serving between 150,000 and
4 250,000 retail customers in this State on January 1, 1995 is
5 less than or equal to 90% of the average residential retail
6 rate for the Midwest Utilities, based on data reported on
7 Form 1 to the Federal Energy Regulatory Commission for
8 calendar year 1995, then it shall only be required to file
9 tariffs (i) reducing, effective August 1, 1998, each
10 component of its base rates to residential retail customers
11 by 2% from the base rates in effect immediately prior to
12 January 1, 1998; (ii) reducing, effective October 1, 2000,
13 each component of its base rates to residential retail
14 customers by 2% from the base rate in effect immediately
15 prior to January 1, 1998; and (iii) reducing, effective
16 October 1, 2002, each component of its base rates to
17 residential retail customers by 1% from the base rates in
18 effect immediately prior to January 1, 1998. Provided,
19 further, that any electric utility for which a decrease in
20 base rates has been or is placed into effect between October
21 1, 1996 and the dates specified in the preceding sentences of
22 this subsection, other than pursuant to the requirements of
23 this subsection, shall be entitled to reduce the amount of
24 any reduction or reductions in its base rates required by
25 this subsection by the amount of such other decrease. The
26 tariffs required under this subsection shall be filed 45 days
27 in advance of the effective date. Notwithstanding anything to
28 the contrary in Section 9-220 of this Act, no restatement of
29 base rates in conjunction with the elimination of a fuel
30 adjustment clause under that Section shall result in a lesser
31 decrease in base rates than customers would otherwise receive
32 under this subsection had the electric utility's fuel
33 adjustment clause not been eliminated.
34 (c) Any utility reducing its base rates by 15% on August
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1 1, 1998 pursuant to subsection (b) shall include the
2 following statement on its bills for residential customers
3 from August 1 through December 31, 1998: "Effective August 1,
4 1998, your rates have been reduced by 15% by the Electric
5 Service Customer Choice and Rate Relief Law of 1997 passed by
6 the Illinois General Assembly.". Any utility reducing its
7 base rates by 5% on August 1, 1998, pursuant to subsection
8 (b) shall include the following statement on its bills for
9 residential customers from August 1 through December 31,
10 1998: "Effective 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 August 1,
15 1998 pursuant to subsection (b) shall include the following
16 statement on its bills for residential customers from August
17 1 through December 31, 1998: "Effective August 1, 1998, your
18 rates have been reduced by 2% by the Electric Service
19 Customer Choice and Rate Relief Law of 1997 passed by the
20 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 comparisions shall be performed
18 for the Illinois operations of multijurisdictional utilities.
19 During 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 the effective date of this amendatory
33 Act of 1997 and the consideration for which such asset had
34 been sold or transferred to the affiliated interest, with
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1 such difference to be amortized ratably from the date of the
2 sale by the affiliated interest to December 31, 2006, exceeds
3 the 2-year average of the Index for the same 2 years by 1.5
4 or more percentage points, the electric utility shall make
5 refunds to customers beginning the first billing day of April
6 in the following year in the manner described in paragraph
7 (3) of this subsection. For purposes of this subsection (e),
8 the "Index" shall be the sum of (A) the average for the 12
9 months ended September 30 of the monthly average yields of
10 30-year U.S. Treasury bonds published by the Board of
11 Governors of the Federal Reserve System in its weekly H.15
12 Statistical Release or successor publication for each year
13 1998 through 2004, and (B) (i) 4.00 percentage points for
14 each of the 12-month periods ending September 30, 1998
15 through September 30, 1999 or 8.00 percentage points if the
16 electric utility's average residential retail rate is less
17 than or equal to 90% of the average residential retail rate
18 for the "Midwest Utilities", as that term is defined in
19 subsection (b) of this Section, based on data reported on
20 Form 1 to the Federal Energy Regulatory Commission for
21 calendar year 1995, and the electric utility served between
22 150,000 and 250,000 retail customers on January 1, 1995, or
23 (ii) 5.00 percentage points for each of the 12-month periods
24 ending September 30, 2000 through September 30, 2004 or 9.00
25 percentage points if the electric utility's average
26 residential retail rate is less than or equal to 90% of the
27 average residential retail rate for the "Midwest Utilities",
28 as that term is defined in subsection (b) of this Section,
29 based on data reported on Form 1 to the Federal Energy
30 Regulatory Commission for calendar year 1995 and the electric
31 utility served between 150,000 and 250,000 retail customers
32 in this State on January 1, 1995.
33 (1) For purposes of this subsection (e), "excess
34 earnings" means the difference between (A) the 2-year
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1 average of the electric utility's earned rate of return
2 on common equity, less (B) the 2-year average of the sum
3 of (i) the Index applicable to each of the 2 years and
4 (ii) 1.5 percentage points; provided, that "excess
5 earnings" shall never be less than zero.
6 (2) On or before March 31 of each year 2000 through
7 2005 each electric utility shall file a report with the
8 Commission showing its earned rate of return on common
9 equity, calculated in accordance with this subsection,
10 for the preceding calendar year and the average for the
11 preceding 2 calendar years.
12 (3) If an electric utility has excess earnings,
13 determined in accordance with paragraphs (1) and (2) of
14 this subsection, the refunds which the electric utility
15 shall pay to its customers beginning the first billing
16 day of April in the following year shall be calculated
17 and applied as follows:
18 (i) The electric utility's excess earnings
19 shall be multiplied by the average of the beginning
20 and ending balances of the electric utility's common
21 equity for the 2-year period in which excess
22 earnings occurred.
23 (ii) The result of the calculation in (i)
24 shall be multiplied by 0.50 and then divided by a
25 number equal to 1 minus the electric utility's
26 composite federal and State income tax rate.
27 (iii) The result of the calculation in (ii)
28 shall be divided by the sum of the electric
29 utility's projected total kilowatt-hour sales to
30 retail customers plus projected kilowatt-hours to be
31 delivered to delivery services customers over a one
32 year period beginning with the first billing date in
33 April in the succeeding year to determine a cents
34 per kilowatt-hour refund factor.
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1 (iv) The cents per kilowatt-hour refund factor
2 calculated in (iii) shall be credited to the
3 electric utility's customers by applying the factor
4 on the customer's monthly bills to each
5 kilowatt-hour sold or delivered until the total
6 amount calculated in (ii) has been paid to
7 customers.
8 (f) During the mandatory transition period, an electric
9 utility may file revised tariffs reducing the price of any
10 tariffed service offered by the electric utility for all
11 customers taking that tariffed service, which shall be
12 effective 7 days after filing.
13 (g) During the mandatory transition period, an electric
14 utility may, without obtaining any approval of the Commission
15 other than that provided for in this subsection and
16 notwithstanding any other provision of this Act or any rule
17 or regulation of the Commission that would require such
18 approval:
19 (1) implement a reorganization, other than a merger
20 of 2 or more public utilities as defined in Section 3-105
21 or their holding companies;
22 (2) retire generating plants from service;
23 (3) sell, assign, lease or otherwise transfer
24 assets to an affiliated or unaffiliated entity and as
25 part of such transaction enter into service agreements,
26 power purchase agreements, or other agreements with the
27 transferee; provided, however, that the prices, terms and
28 conditions of any power purchase agreement must be
29 approved or allowed into effect by the Federal Energy
30 Regulatory Commission; or
31 (4) use any accelerated cost recovery method
32 including accelerated depreciation, accelerated
33 amortization or other capital recovery methods, or record
34 reductions to the original cost of its assets.
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1 In order to implement a reorganization, retire generating
2 plants from service, or sell, assign, lease or otherwise
3 transfer assets pursuant to this Section, the electric
4 utility shall comply with subsections (c) and (d) of Section
5 16-128, if applicable, and provide the Commission with at
6 least 30 days notice of the proposed reorganization or
7 transaction, which notice shall include the following
8 information:
9 (i) a complete statement of the entries that
10 the electric utility will make on its books and
11 records of account to implement the proposed
12 reorganization or transaction together with a
13 certification from an independent certified public
14 accountant that such entries are in accord with
15 generally accepted accounting principles and, if the
16 Commission has previously approved guidelines for
17 cost allocations between the utility and its
18 affiliates, a certification from the chief
19 accounting officer of the utility that such entries
20 are in accord with those cost allocation guidelines;
21 (ii) a description of how the electric utility
22 will use proceeds of any sale, assignment, lease or
23 transfer to retire debt or otherwise reduce or
24 recover the costs of services provided by such
25 electric utility;
26 (iii) a list of all federal approvals or
27 approvals required from departments and agencies of
28 this State, other than the Commission, that the
29 electric utility has or will obtain before
30 implementing the reorganization or transaction;
31 (iv) an irrevocable commitment by the electric
32 utility that it will not, as a result of the
33 transaction, impose any stranded cost charges that
34 it might otherwise be allowed to charge retail
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1 customers under federal law or increase the
2 transition charges that it is otherwise entitled to
3 collect under this Article XVI; and
4 (v) if the electric utility proposes to sell,
5 assign, lease or otherwise transfer a generating
6 plant that brings the amount of net dependable
7 generating capacity transferred pursuant to this
8 subsection to an amount equal to or greater than 15%
9 of the electric utility's net dependable capacity as
10 of the effective date of this amendatory Act of
11 1997, and enters into a power purchase agreement
12 with the entity to which such generating plant is
13 sold, assigned, leased, or otherwise transferred,
14 the electric utility also agrees, if its fuel
15 adjustment clause has not already been eliminated,
16 to eliminate its fuel adjustment clause in
17 accordance with subsection (b) of Section 9-220 for
18 a period of time equal to the length of any such
19 power purchase agreement or successor agreement, or
20 until January 1, 2005, whichever is longer; if the
21 capacity of the generating plant so transferred and
22 related power purchase agreement does not result in
23 the elimination of the fuel adjustment clause under
24 this subsection, and the fuel adjustment clause has
25 not already been eliminated, the electric utility
26 shall agree that the costs associated with the
27 transferred plant that are included in the
28 calculation of the rate per kilowatt-hour to be
29 applied pursuant to the electric utility's fuel
30 adjustment clause during such period shall not
31 exceed the per kilowatt-hour cost associated with
32 such generating plant included in the electric
33 utility's fuel adjustment clause during the full
34 calendar year preceding the transfer, with such
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1 limit to be adjusted each year thereafter by the
2 Gross Domestic Product Implicit Price Deflator.
3 (vi) In addition, if the electric utility
4 proposes to sell, assign, or lease, (A) either (1)
5 an amount of generating plant that brings the amount
6 of net dependable generating capacity transferred
7 pursuant to this subsection to an amount equal to or
8 greater than 15% of its net dependable capacity on
9 the effective date of this amendatory Act of 1997,
10 or (2) one or more generating plants with a total
11 net dependable capacity of 1100 megawatts, or (B)
12 transmission and distribution facilities that either
13 (1) bring the amount of transmission and
14 distribution facilities transferred pursuant to this
15 subsection to an amount equal to or greater than 15%
16 of the electric utility's total depreciated original
17 cost investment in such facilities, or (2) represent
18 an investment of $25,000,000 in terms of total
19 depreciated original cost, the electric utility
20 shall provide, in addition to the information listed
21 in subparagraphs (i) through (v), the following
22 information: (A) a description of how the electric
23 utility will meet its service obligations under this
24 Act in a safe and reliable manner and (B) the
25 electric utility's projected earned rate of return
26 on common equity, calculated in accordance with
27 subsection (d) of this Section, for each year from
28 the date of the notice through December 31, 2004
29 both with and without the proposed transaction. If
30 the Commission has not issued an order initiating a
31 hearing on the proposed transaction within 30 days
32 after the date the electric utility's notice is
33 filed, the transaction shall be deemed approved.
34 The Commission may, after notice and hearing,
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1 prohibit the proposed transaction if it makes either
2 or both of the following findings: (1) that the
3 proposed transaction will render the electric
4 utility unable to provide its tariffed services in a
5 safe and reliable manner, or (2) that there is a
6 strong likelihood that consummation of the proposed
7 transaction will result in the electric utility
8 being entitled to request an increase in its base
9 rates during the mandatory transition period
10 pursuant to subsection (d) of this Section. Any
11 hearing initiated by the Commission into the
12 proposed transaction shall be completed, and the
13 Commission's final order approving or prohibiting
14 the proposed transaction shall be entered, within 90
15 days after the date the electric utility's notice
16 was filed. Provided, however, that a sale,
17 assignment, or lease of transmission facilities to
18 an independent system operator that meets the
19 requirements of Section 16-126 shall not be subject
20 to Commission approval under this Section.
21 In any proceeding conducted by the Commission
22 pursuant to this subparagraph (vi), intervention
23 shall be limited to parties with a direct interest
24 in the transaction which is the subject of the
25 hearing and any statutory consumer protection agency
26 as defined in subsection (d) of Section 9-102.1.
27 Notwithstanding the provisions of Section 10-113 of
28 this Act, any application seeking rehearing of an
29 order issued under this subparagraph (vi), whether
30 filed by the electric utility or by an intervening
31 party, shall be filed within 10 days after service
32 of the order.
33 The Commission shall not in any subsequent proceeding or
34 otherwise, review such a reorganization or other transaction
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1 authorized by this Section, but shall retain the authority to
2 allocate costs as stated in Section 16-111(i). An entity to
3 which an electric utility sells, assigns, leases or transfers
4 assets pursuant to this subsection (g) shall not, as a result
5 of the transactions specified in this subsection (g), be
6 deemed a public utility as defined in Section 3-105. Nothing
7 in this subsection (g) shall change any requirement under the
8 jurisdiction of the Illinois Department of Nuclear Safety
9 including, but not limited to, the payment of fees. Nothing
10 in this subsection (g) shall exempt a utility from obtaining
11 a certificate pursuant to Section 8-406 of this Act for the
12 construction of a new electric generating facility. Nothing
13 in this subsection (g) is intended to exempt the transactions
14 hereunder from the operation of the federal or State
15 antitrust laws. Nothing in this subsection (g) shall require
16 an electric utility to use the procedures specified in this
17 subsection for any of the transactions specified herein. Any
18 other procedure available under this Act may, at the electric
19 utility's election, be used for any such transaction.
20 (h) During the mandatory transition period, the
21 Commission shall not establish or use any rates of
22 depreciation, which for purposes of this subsection shall
23 include amortization, for any electric utility other than
24 those established pursuant to subsection (c) of Section 5-104
25 of this Act or utilized pursuant to subsection (g) of this
26 Section. Provided, however, that in any proceeding to review
27 an electric utility's rates for tariffed services pursuant to
28 Section 9-201, 9-202, 9-250 or 16-111(d) of this Act, the
29 Commission may establish new rates of depreciation for the
30 electric utility in the same manner provided in subsection
31 (d) of Section 5-104 of this Act. An electric utility
32 implementing an accelerated cost recovery method including
33 accelerated depreciation, accelerated amortization or other
34 capital recovery methods, or recording reductions to the
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1 original cost of its assets, pursuant to subsection (g) of
2 this Section, shall file a statement with the Commission
3 describing the accelerated cost recovery method to be
4 implemented or the reduction in the original cost of its
5 assets to be recorded. Upon the filing of such statement,
6 the accelerated cost recovery method or the reduction in the
7 original cost of assets shall be deemed to be approved by the
8 Commission as though an order had been entered by the
9 Commission.
10 (i) Subsequent to the mandatory transition period, the
11 Commission, in any proceeding to establish rates and charges
12 for tariffed services offered by an electric utility, shall
13 consider only (1) the then current or projected revenues,
14 costs, investments and cost of capital directly or indirectly
15 associated with the provision of such tariffed services; (2)
16 collection of transition charges in accordance with Sections
17 16-102 and 16-108 of this Act; (3) recovery of any employee
18 transition costs as described in Section 16-128 which the
19 electric utility is continuing to incur, including recovery
20 of any unamortized portion of such costs previously incurred
21 or committed, with such costs to be equitably allocated among
22 bundled services, delivery services, and contracts with
23 alternative retail electric suppliers; and (4) recovery of
24 the costs associated with the electric utility's compliance
25 with decommissioning funding requirements; and shall not
26 consider any other revenues, costs, investments or cost of
27 capital of either the electric utility or of any affiliate of
28 the electric utility that are not associated with the
29 provision of tariffed services. In setting rates for
30 tariffed services, the Commission shall equitably allocate
31 joint and common costs and investments between the electric
32 utility's competitive and tariffed services. In determining
33 the justness and reasonableness of the electric power and
34 energy component of an electric utility's rates for tariffed
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1 services subsequent to the mandatory transition period and
2 prior to the time that the provision of such electric power
3 and energy is declared competitive, the Commission shall
4 consider the extent to which the electric utility's tariffed
5 rates for such component for each customer class exceed the
6 market value determined pursuant to Section 16-112, and, if
7 the electric power and energy component of such tariffed rate
8 exceeds the market value by more than 10% for any customer
9 class, may establish such electric power and energy component
10 at a rate equal to the market value plus 10%. In any such
11 case, the Commission may also elect to extend the provisions
12 of Section 16-111(e) for any period in which the electric
13 utility is collecting transition charges, using information
14 applicable to such period.
15 (j) During the mandatory transition period, an electric
16 utility may elect to transfer to a non-operating income
17 account under the Commission's Uniform System of Accounts
18 either or both of (i) an amount of unamortized investment tax
19 credit that is in addition to the ratable amount which is
20 credited to the electric utility's operating income account
21 for the year in accordance with Section 46(f)(2) of the
22 federal Internal Revenue Code of 1986, as in effect prior to
23 P.L. 101-508, or (ii) "excess tax reserves", as that term is
24 defined in Section 203(e)(2)(A) of the federal Tax Reform Act
25 of 1986, provided that (A) the amount transferred may not
26 exceed the amount of the electric utility's assets that were
27 created pursuant to Statement of Financial Accounting
28 Standards No. 71 which the electric utility has written off
29 during the mandatory transition period, and (B) the transfer
30 shall not be effective until approved by the Internal Revenue
31 Service. An electric utility electing to make such a
32 transfer shall file a statement with the Commission stating
33 the amount and timing of the transfer for which it intends to
34 request approval of the Internal Revenue Service, along with
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1 a copy of its proposed request to the Internal Revenue
2 Service for a ruling. The Commission shall issue an order
3 within 14 days after the electric utility's filing approving,
4 subject to receipt of approval from the Internal Revenue
5 Service, the proposed transfer.
6 (Source: 90HB0362sam02.)
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.