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90_SB0056ccr001
LRB9001051JSgcccr6
1 90TH GENERAL ASSEMBLY
2 CONFERENCE COMMITTEE REPORT
3 ON SENATE BILL 56
4 -------------------------------------------------------------
5 -------------------------------------------------------------
6 To the President of the Senate and the Speaker of the
7 House of Representatives:
8 We, the conference committee appointed to consider the
9 differences between the houses in relation to House Amendment
10 No. 1 to Senate Bill 56, recommend the following:
11 (1) that the House of Representatives recede from House
12 Amendment No. 1; and
13 (2) that Senate Bill 56 be amended by replacing the
14 title with the following:
15 "AN ACT concerning the generation of electricity,
16 amending a named Act."; and
17 by replacing everything after the enacting clause with the
18 following:
19 "Section 5. The Public Utilities Act is amended, if and
20 only if the provisions of House Bill 362 of the 90th General
21 Assembly that are changed by this amendatory Act of 1997
22 become law, by changing Section 16-111 as follows:
23 (220 ILCS 5/16-111)
24 Sec. 16-111. Rates and restructuring transactions during
25 mandatory transition period.
26 (a) During the mandatory transition period,
27 notwithstanding any provision of Article IX of this Act, and
28 except as provided in subsections (b), (d), (e), and (f) of
29 this Section, the Commission shall not (i) initiate,
30 authorize or order any change by way of increase (other than
31 in connection with a request for rate increase which was
32 filed after September 1, 1997 but prior to October 15, 1997,
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1 by an electric utility serving less than 12,500 customers in
2 this state), (ii) initiate or, unless requested by the
3 electric utility, authorize or order any change by way of
4 decrease, restructuring or unbundling (except as provided in
5 Section 16-109A), in the rates of any electric utility that
6 were in effect on October 1, 1996, or (iii) in any order
7 approving any application for a merger pursuant to Section
8 7-204 that was pending as of May 16, 1997, impose any
9 condition requiring any filing for an increase, decrease, or
10 change in, or other review of, an electric utility's rates or
11 enforce any such condition of any such order; provided,
12 however, that this subsection shall not prohibit the
13 Commission from:
14 (1) approving the application of an electric
15 utility to implement an alternative to rate of return
16 regulation or a regulatory mechanism that rewards or
17 penalizes the electric utility through adjustment of
18 rates based on utility performance, pursuant to Section
19 9-244;
20 (2) authorizing an electric utility to eliminate
21 its fuel adjustment clause and adjust its base rate
22 tariffs in accordance with subsection (b), (d), or (f) of
23 Section 9-220 of this Act, to fix its fuel adjustment
24 factor in accordance with subsection (c) of Section 9-220
25 of this Act, or to eliminate its fuel adjustment clause
26 in accordance with subsection (e) of Section 9-220 of
27 this Act;
28 (3) ordering into effect tariffs for delivery
29 services and transition charges in accordance with
30 Sections 16-104 and 16-108, for real-time pricing in
31 accordance with Section 16-107, or the options required
32 by Section 16-110 and subsection (n) of 16-112, allowing
33 a billing experiment in accordance with Section 16-106,
34 or modifying delivery services tariffs in accordance with
35 Section 16-109; or
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1 (4) ordering or allowing into effect any tariff to
2 recover charges pursuant to Sections 9-201.5, 9-220.1,
3 9-221, 9-222 (except as provided in Section 9-222.1),
4 16-108, and 16-114 of this Act, Section 5-5 of the
5 Electricity Infrastructure Maintenance Fee Law, Section
6 6-5 of the Renewable Energy, Energy Efficiency, and Coal
7 Resources Development Law of 1997, and Section 13 of the
8 Energy Assistance Act of 1989.
9 (b) Notwithstanding the provisions of subsection (a),
10 each Illinois electric utility serving more than 12,500
11 customers in Illinois shall file tariffs (i) reducing,
12 effective August 1, 1998, each component of its base rates to
13 residential retail customers by 15% from the base rates in
14 effect immediately prior to January 1, 1998 and (ii) if the
15 public utility provides electric service to more than 500,000
16 customers in this State on the effective date of this
17 amendatory Act of 1997, reducing, effective May 1, 2002, each
18 component of its base rates to residential retail customers
19 by an additional 5% from the base rates in effect immediately
20 prior to January 1, 1998. Provided, however, that (A) if an
21 electric utility's average residential retail rate is less
22 than or equal to the average residential retail rate for a
23 group of Midwest Utilities (consisting of all investor-owned
24 electric utilities with annual system peaks in excess of 1000
25 megawatts in the States of Illinois, Indiana, Iowa, Kentucky,
26 Michigan, Missouri, Ohio, and Wisconsin), based on data
27 reported on Form 1 to the Federal Energy Regulatory
28 Commission for calendar year 1995, then it shall only be
29 required to file tariffs (i) reducing, effective August 1,
30 1998, each component of its base rates to residential retail
31 customers by 5% from the base rates in effect immediately
32 prior to January 1, 1998, (ii) reducing, effective October 1,
33 2000, each component of its base rates to residential retail
34 customers by the lesser of 5% of the base rates in effect
35 immediately prior to January 1, 1998 or the percentage by
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1 which the electric utility's average residential retail rate
2 exceeds the average residential retail rate of the Midwest
3 Utilities, based on data reported on Form 1 to the Federal
4 Energy Regulatory Commission for calendar year 1999, and
5 (iii) reducing, effective October 1, 2002, each component of
6 its base rates to residential retail customers by an
7 additional amount equal to the lesser of 5% of the base rates
8 in effect immediately prior to January 1, 1998 or the
9 percentage by which the electric utility's average
10 residential retail rate exceeds the average residential
11 retail rate of the Midwest Utilities, based on data reported
12 on Form 1 to the Federal Energy Regulatory Commission for
13 calendar year 2001; and (B) if the average residential retail
14 rate of an electric utility serving between 150,000 and
15 250,000 retail customers in this State on January 1, 1995 is
16 less than or equal to 90% of the average residential retail
17 rate for the Midwest Utilities, based on data reported on
18 Form 1 to the Federal Energy Regulatory Commission for
19 calendar year 1995, then it shall only be required to file
20 tariffs (i) reducing, effective August 1, 1998, each
21 component of its base rates to residential retail customers
22 by 2% from the base rates in effect immediately prior to
23 January 1, 1998; (ii) reducing, effective October 1, 2000,
24 each component of its base rates to residential retail
25 customers by 2% from the base rate in effect immediately
26 prior to January 1, 1998; and (iii) reducing, effective
27 October 1, 2002, each component of its base rates to
28 residential retail customers by 1% from the base rates in
29 effect immediately prior to January 1, 1998. Provided,
30 further, that any electric utility for which a decrease in
31 base rates has been or is placed into effect between October
32 1, 1996 and the dates specified in the preceding sentences of
33 this subsection, other than pursuant to the requirements of
34 this subsection, shall be entitled to reduce the amount of
35 any reduction or reductions in its base rates required by
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1 this subsection by the amount of such other decrease. The
2 tariffs required under this subsection shall be filed 45 days
3 in advance of the effective date. Notwithstanding anything to
4 the contrary in Section 9-220 of this Act, no restatement of
5 base rates in conjunction with the elimination of a fuel
6 adjustment clause under that Section shall result in a lesser
7 decrease in base rates than customers would otherwise receive
8 under this subsection had the electric utility's fuel
9 adjustment clause not been eliminated.
10 (c) Any utility reducing its base rates by 15% on August
11 1, 1998 pursuant to subsection (b) shall include the
12 following statement on its bills for residential customers
13 from August 1 through December 31, 1998: "Effective August 1,
14 1998, your rates have been reduced by 15% by the Electric
15 Service Customer Choice and Rate Relief Law of 1997 passed by
16 the Illinois General Assembly.". Any utility reducing its
17 base rates by 5% on August 1, 1998, pursuant to subsection
18 (b) shall include the following statement on its bills for
19 residential customers from August 1 through December 31,
20 1998: "Effective August 1, 1998, your rates have been
21 reduced by 5% by the Electric Service Customer Choice and
22 Rate Relief Law of 1997 passed by the Illinois General
23 Assembly.".
24 Any utility reducing its base rates by 2% on August 1,
25 1998 pursuant to subsection (b) shall include the following
26 statement on its bills for residential customers from August
27 1 through December 31, 1998: "Effective August 1, 1998, your
28 rates have been reduced by 2% by the Electric Service
29 Customer Choice and Rate Relief Law of 1997 passed by the
30 Illinois General Assembly.".
31 (d) During the mandatory transition period, but not
32 before January 1, 2000, and notwithstanding the provisions
33 of subsection (a), an electric utility may request an
34 increase in its base rates if the electric utility
35 demonstrates that the 2-year average of its earned rate of
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1 return on common equity, calculated as its net income
2 applicable to common stock divided by the average of its
3 beginning and ending balances of common equity using data
4 reported in the electric utility's Form 1 report to the
5 Federal Energy Regulatory Commission but adjusted to remove
6 the effects of accelerated depreciation or amortization or
7 other transition or mitigation measures implemented by the
8 electric utility pursuant to subsection (g) of this Section
9 and the effect of any refund paid pursuant to subsection (e)
10 of this Section, is below the 2-year average for the same 2
11 years of the monthly average yields of 30-year U.S. Treasury
12 bonds published by the Board of Governors of the Federal
13 Reserve System in its weekly H.15 Statistical Release or
14 successor publication. The Commission shall review the
15 electric utility's request, and may review the justness and
16 reasonableness of all rates for tariffed services, in
17 accordance with the provisions of Article IX of this Act,
18 provided that the Commission shall consider any special or
19 negotiated adjustments to the revenue requirement agreed to
20 between the electric utility and the other parties to the
21 proceeding. In setting rates under this Section, the
22 Commission shall exclude the costs and revenues that are
23 associated with competitive services and any billing or
24 pricing experiments conducted under Section 16-106.
25 (e) For the purposes of this subsection (e) all
26 calculations and comparisons comparisions shall be performed
27 for the Illinois operations of multijurisdictional utilities.
28 During the mandatory transition period, notwithstanding the
29 provisions of subsection (a), if the 2-year average of an
30 electric utility's earned rate of return on common equity,
31 calculated as its net income applicable to common stock
32 divided by the average of its beginning and ending balances
33 of common equity using data reported in the electric
34 utility's Form 1 report to the Federal Energy Regulatory
35 Commission but adjusted to remove the effect of any refund
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1 paid under this subsection (e), and further adjusted to
2 include the annual amortization of any difference between the
3 consideration received by an affiliated interest of the
4 electric utility in the sale of an asset which had been sold
5 or transferred by the electric utility to the affiliated
6 interest subsequent to the effective date of this amendatory
7 Act of 1997 and the consideration for which such asset had
8 been sold or transferred to the affiliated interest, with
9 such difference to be amortized ratably from the date of the
10 sale by the affiliated interest to December 31, 2006, exceeds
11 the 2-year average of the Index for the same 2 years by 1.5
12 or more percentage points, the electric utility shall make
13 refunds to customers beginning the first billing day of April
14 in the following year in the manner described in paragraph
15 (3) of this subsection. For purposes of this subsection (e),
16 the "Index" shall be the sum of (A) the average for the 12
17 months ended September 30 of the monthly average yields of
18 30-year U.S. Treasury bonds published by the Board of
19 Governors of the Federal Reserve System in its weekly H.15
20 Statistical Release or successor publication for each year
21 1998 through 2004, and (B) (i) 4.00 percentage points for
22 each of the 12-month periods ending September 30, 1998
23 through September 30, 1999 or 8.00 percentage points if the
24 electric utility's average residential retail rate is less
25 than or equal to 90% of the average residential retail rate
26 for the "Midwest Utilities", as that term is defined in
27 subsection (b) of this Section, based on data reported on
28 Form 1 to the Federal Energy Regulatory Commission for
29 calendar year 1995, and the electric utility served between
30 150,000 and 250,000 retail customers on January 1, 1995, or
31 (ii) 5.00 percentage points for each of the 12-month periods
32 ending September 30, 2000 through September 30, 2004 or 9.00
33 percentage points if the electric utility's average
34 residential retail rate is less than or equal to 90% of the
35 average residential retail rate for the "Midwest Utilities",
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1 as that term is defined in subsection (b) of this Section,
2 based on data reported on Form 1 to the Federal Energy
3 Regulatory Commission for calendar year 1995 and the electric
4 utility served between 150,000 and 250,000 retail customers
5 in this State on January 1, 1995.
6 (1) For purposes of this subsection (e), "excess
7 earnings" means the difference between (A) the 2-year
8 average of the electric utility's earned rate of return
9 on common equity, less (B) the 2-year average of the sum
10 of (i) the Index applicable to each of the 2 years and
11 (ii) 1.5 percentage points; provided, that "excess
12 earnings" shall never be less than zero.
13 (2) On or before March 31 of each year 2000 through
14 2005 each electric utility shall file a report with the
15 Commission showing its earned rate of return on common
16 equity, calculated in accordance with this subsection,
17 for the preceding calendar year and the average for the
18 preceding 2 calendar years.
19 (3) If an electric utility has excess earnings,
20 determined in accordance with paragraphs (1) and (2) of
21 this subsection, the refunds which the electric utility
22 shall pay to its customers beginning the first billing
23 day of April in the following year shall be calculated
24 and applied as follows:
25 (i) The electric utility's excess earnings
26 shall be multiplied by the average of the beginning
27 and ending balances of the electric utility's common
28 equity for the 2-year period in which excess
29 earnings occurred.
30 (ii) The result of the calculation in (i)
31 shall be multiplied by 0.50 and then divided by a
32 number equal to 1 minus the electric utility's
33 composite federal and State income tax rate.
34 (iii) The result of the calculation in (ii)
35 shall be divided by the sum of the electric
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1 utility's projected total kilowatt-hour sales to
2 retail customers plus projected kilowatt-hours to be
3 delivered to delivery services customers over a one
4 year period beginning with the first billing date in
5 April in the succeeding year to determine a cents
6 per kilowatt-hour refund factor.
7 (iv) The cents per kilowatt-hour refund factor
8 calculated in (iii) shall be credited to the
9 electric utility's customers by applying the factor
10 on the customer's monthly bills to each
11 kilowatt-hour sold or delivered until the total
12 amount calculated in (ii) has been paid to
13 customers.
14 (f) During the mandatory transition period, an electric
15 utility may file revised tariffs reducing the price of any
16 tariffed service offered by the electric utility for all
17 customers taking that tariffed service, which shall be
18 effective 7 days after filing.
19 (g) During the mandatory transition period, an electric
20 utility may, without obtaining any approval of the Commission
21 other than that provided for in this subsection and
22 notwithstanding any other provision of this Act or any rule
23 or regulation of the Commission that would require such
24 approval:
25 (1) implement a reorganization, other than a merger
26 of 2 or more public utilities as defined in Section 3-105
27 or their holding companies;
28 (2) retire generating plants from service;
29 (3) sell, assign, lease or otherwise transfer
30 assets to an affiliated or unaffiliated entity and as
31 part of such transaction enter into service agreements,
32 power purchase agreements, or other agreements with the
33 transferee; provided, however, that the prices, terms and
34 conditions of any power purchase agreement must be
35 approved or allowed into effect by the Federal Energy
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1 Regulatory Commission; or
2 (4) use any accelerated cost recovery method
3 including accelerated depreciation, accelerated
4 amortization or other capital recovery methods, or record
5 reductions to the original cost of its assets.
6 In order to implement a reorganization, retire generating
7 plants from service, or sell, assign, lease or otherwise
8 transfer assets pursuant to this Section, the electric
9 utility shall comply with subsections (c) and (d) of Section
10 16-128, if applicable, and provide the Commission with at
11 least 30 days notice of the proposed reorganization or
12 transaction, which notice shall include the following
13 information:
14 (i) a complete statement of the entries that
15 the electric utility will make on its books and
16 records of account to implement the proposed
17 reorganization or transaction together with a
18 certification from an independent certified public
19 accountant that such entries are in accord with
20 generally accepted accounting principles and, if the
21 Commission has previously approved guidelines for
22 cost allocations between the utility and its
23 affiliates, a certification from the chief
24 accounting officer of the utility that such entries
25 are in accord with those cost allocation guidelines;
26 (ii) a description of how the electric utility
27 will use proceeds of any sale, assignment, lease or
28 transfer to retire debt or otherwise reduce or
29 recover the costs of services provided by such
30 electric utility;
31 (iii) a list of all federal approvals or
32 approvals required from departments and agencies of
33 this State, other than the Commission, that the
34 electric utility has or will obtain before
35 implementing the reorganization or transaction;
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1 (iv) an irrevocable commitment by the electric
2 utility that it will not, as a result of the
3 transaction, impose any stranded cost charges that
4 it might otherwise be allowed to charge retail
5 customers under federal law or increase the
6 transition charges that it is otherwise entitled to
7 collect under this Article XVI; and
8 (v) if the electric utility proposes to sell,
9 assign, lease or otherwise transfer a generating
10 plant that brings the amount of net dependable
11 generating capacity transferred pursuant to this
12 subsection to an amount equal to or greater than 15%
13 of the electric utility's net dependable capacity as
14 of the effective date of this amendatory Act of
15 1997, and enters into a power purchase agreement
16 with the entity to which such generating plant is
17 sold, assigned, leased, or otherwise transferred,
18 the electric utility also agrees, if its fuel
19 adjustment clause has not already been eliminated,
20 to eliminate its fuel adjustment clause in
21 accordance with subsection (b) of Section 9-220 for
22 a period of time equal to the length of any such
23 power purchase agreement or successor agreement, or
24 until January 1, 2005, whichever is longer; if the
25 capacity of the generating plant so transferred and
26 related power purchase agreement does not result in
27 the elimination of the fuel adjustment clause under
28 this subsection, and the fuel adjustment clause has
29 not already been eliminated, the electric utility
30 shall agree that the costs associated with the
31 transferred plant that are included in the
32 calculation of the rate per kilowatt-hour to be
33 applied pursuant to the electric utility's fuel
34 adjustment clause during such period shall not
35 exceed the per kilowatt-hour cost associated with
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1 such generating plant included in the electric
2 utility's fuel adjustment clause during the full
3 calendar year preceding the transfer, with such
4 limit to be adjusted each year thereafter by the
5 Gross Domestic Product Implicit Price Deflator.
6 (vi) In addition, if the electric utility
7 proposes to sell, assign, or lease, (A) either (1)
8 an amount of generating plant that brings the amount
9 of net dependable generating capacity transferred
10 pursuant to this subsection to an amount equal to or
11 greater than 15% of its net dependable capacity on
12 the effective date of this amendatory Act of 1997,
13 or (2) one or more generating plants with a total
14 net dependable capacity of 1100 megawatts, or (B)
15 transmission and distribution facilities that either
16 (1) bring the amount of transmission and
17 distribution facilities transferred pursuant to this
18 subsection to an amount equal to or greater than 15%
19 of the electric utility's total depreciated original
20 cost investment in such facilities, or (2) represent
21 an investment of $25,000,000 in terms of total
22 depreciated original cost, the electric utility
23 shall provide, in addition to the information listed
24 in subparagraphs (i) through (v), the following
25 information: (A) a description of how the electric
26 utility will meet its service obligations under this
27 Act in a safe and reliable manner and (B) the
28 electric utility's projected earned rate of return
29 on common equity, calculated in accordance with
30 subsection (d) of this Section, for each year from
31 the date of the notice through December 31, 2004
32 both with and without the proposed transaction. If
33 the Commission has not issued an order initiating a
34 hearing on the proposed transaction within 30 days
35 after the date the electric utility's notice is
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1 filed, the transaction shall be deemed approved.
2 The Commission may, after notice and hearing,
3 prohibit the proposed transaction if it makes either
4 or both of the following findings: (1) that the
5 proposed transaction will render the electric
6 utility unable to provide its tariffed services in a
7 safe and reliable manner, or (2) that there is a
8 strong likelihood that consummation of the proposed
9 transaction will result in the electric utility
10 being entitled to request an increase in its base
11 rates during the mandatory transition period
12 pursuant to subsection (d) of this Section. Any
13 hearing initiated by the Commission into the
14 proposed transaction shall be completed, and the
15 Commission's final order approving or prohibiting
16 the proposed transaction shall be entered, within 90
17 days after the date the electric utility's notice
18 was filed. Provided, however, that a sale,
19 assignment, or lease of transmission facilities to
20 an independent system operator that meets the
21 requirements of Section 16-126 shall not be subject
22 to Commission approval under this Section.
23 In any proceeding conducted by the Commission
24 pursuant to this subparagraph (vi), intervention
25 shall be limited to parties with a direct interest
26 in the transaction which is the subject of the
27 hearing and any statutory consumer protection agency
28 as defined in subsection (d) of Section 9-102.1.
29 Notwithstanding the provisions of Section 10-113 of
30 this Act, any application seeking rehearing of an
31 order issued under this subparagraph (vi), whether
32 filed by the electric utility or by an intervening
33 party, shall be filed within 10 days after service
34 of the order.
35 The Commission shall not in any subsequent proceeding or
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1 otherwise, review such a reorganization or other transaction
2 authorized by this Section, but shall retain the authority to
3 allocate costs as stated in Section 16-111(i). An entity to
4 which an electric utility sells, assigns, leases or transfers
5 assets pursuant to this subsection (g) shall not, as a result
6 of the transactions specified in this subsection (g), be
7 deemed a public utility as defined in Section 3-105. Nothing
8 in this subsection (g) shall change any requirement under the
9 jurisdiction of the Illinois Department of Nuclear Safety
10 including, but not limited to, the payment of fees. Nothing
11 in this subsection (g) shall exempt a utility from obtaining
12 a certificate pursuant to Section 8-406 of this Act for the
13 construction of a new electric generating facility. Nothing
14 in this subsection (g) is intended to exempt the transactions
15 hereunder from the operation of the federal or State
16 antitrust laws. Nothing in this subsection (g) shall require
17 an electric utility to use the procedures specified in this
18 subsection for any of the transactions specified herein. Any
19 other procedure available under this Act may, at the electric
20 utility's election, be used for any such transaction.
21 (h) During the mandatory transition period, the
22 Commission shall not establish or use any rates of
23 depreciation, which for purposes of this subsection shall
24 include amortization, for any electric utility other than
25 those established pursuant to subsection (c) of Section 5-104
26 of this Act or utilized pursuant to subsection (g) of this
27 Section. Provided, however, that in any proceeding to review
28 an electric utility's rates for tariffed services pursuant to
29 Section 9-201, 9-202, 9-250 or 16-111(d) of this Act, the
30 Commission may establish new rates of depreciation for the
31 electric utility in the same manner provided in subsection
32 (d) of Section 5-104 of this Act. An electric utility
33 implementing an accelerated cost recovery method including
34 accelerated depreciation, accelerated amortization or other
35 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
35 services subsequent to the mandatory transition period and
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1 prior to the time that the provision of such electric power
2 and energy is declared competitive, the Commission shall
3 consider the extent to which the electric utility's tariffed
4 rates for such component for each customer class exceed the
5 market value determined pursuant to Section 16-112, and, if
6 the electric power and energy component of such tariffed rate
7 exceeds the market value by more than 10% for any customer
8 class, may establish such electric power and energy component
9 at a rate equal to the market value plus 10%. In any such
10 case, the Commission may also elect to extend the provisions
11 of Section 16-111(e) for any period in which the electric
12 utility is collecting transition charges, using information
13 applicable to such period.
14 (j) During the mandatory transition period, an electric
15 utility may elect to transfer to a non-operating income
16 account under the Commission's Uniform System of Accounts
17 either or both of (i) an amount of unamortized investment tax
18 credit that is in addition to the ratable amount which is
19 credited to the electric utility's operating income account
20 for the year in accordance with Section 46(f)(2) of the
21 federal Internal Revenue Code of 1986, as in effect prior to
22 P.L. 101-508, or (ii) "excess tax reserves", as that term is
23 defined in Section 203(e)(2)(A) of the federal Tax Reform Act
24 of 1986, provided that (A) the amount transferred may not
25 exceed the amount of the electric utility's assets that were
26 created pursuant to Statement of Financial Accounting
27 Standards No. 71 which the electric utility has written off
28 during the mandatory transition period, and (B) the transfer
29 shall not be effective until approved by the Internal Revenue
30 Service. An electric utility electing to make such a
31 transfer shall file a statement with the Commission stating
32 the amount and timing of the transfer for which it intends to
33 request approval of the Internal Revenue Service, along with
34 a copy of its proposed request to the Internal Revenue
35 Service for a ruling. The Commission shall issue an order
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1 within 14 days after the electric utility's filing approving,
2 subject to receipt of approval from the Internal Revenue
3 Service, the proposed transfer.
4 (Source: 90HB0362sam02.)
5 Section 99. Effective date. This Act takes effect upon
6 becoming law.".
7 Submitted on , 1997.
8 ______________________________ _____________________________
9 Senator Mahar Representative
10 ______________________________ _____________________________
11 Senator Rauschenberger Representative
12 ______________________________ _____________________________
13 Senator Maitland Representative
14 ______________________________ _____________________________
15 Senator Farley Representative
16 ______________________________ _____________________________
17 Senator Shadid Representative
18 Committee for the Senate Committee for the House