State of Illinois
92nd General Assembly
Legislation

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92_SB2235

 
                                              LRB9215298WHcsA

 1        AN ACT concerning energy.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The Energy Assistance Act of 1989 is amended
 5    by changing Sections 1, 2, 4, 5, 6, 7, 8, and 13 as follows:

 6        (305 ILCS 20/1) (from Ch. 111 2/3, par. 1401)
 7        Sec. 1.  Short Title.  This Act shall be known and may be
 8    cited as the "Energy Assistance Act of 1989".
 9    (Source: P.A. 86-127.)

10        (305 ILCS 20/2) (from Ch. 111 2/3, par. 1402)
11        Sec. 2. Findings and Intent.
12        (a)  The General Assembly finds that:
13             (1)  the health,  welfare,  and  prosperity  of  the
14        people of the State of Illinois require that all citizens
15        have  access  to  receive  essential  levels  of heat and
16        electric service regardless of economic circumstance;
17             (2)  public utilities and other  entities  providing
18        such  services are entitled to receive proper payment for
19        services actually rendered;
20             (3)  declining Federal low income energy  assistance
21        funding  necessitates  a  State  response  to  ensure the
22        continuity  and  the  further   development   of   energy
23        assistance  and  related  policies  and  programs  within
24        Illinois; and
25             (4)  energy  assistance  policies  and  programs  in
26        effect in Illinois during the past 3 years have benefited
27        all  Illinois citizens, and should therefore be continued
28        with the modifications provided herein.
29        (b)  Consistent with its findings, the  General  Assembly
30    declares that it is the policy of the State that:
 
                            -2-               LRB9215298WHcsA
 1             (1)  a  comprehensive  low  income energy assistance
 2        policy  and   program   should   be   established   which
 3        incorporates  income assistance, home weatherization, and
 4        other measures to assist ensure that citizens  to  obtain
 5        have access to affordable energy services;
 6             (2)  the  ability  of  public  utilities  and  other
 7        entities  to  receive  just  compensation  for  providing
 8        services should not be jeopardized by this policy;
 9             (3)  resources  applied  in  achieving  this  policy
10        should  be  coordinated  and efficiently utilized through
11        the  integration  of  public  programs  and  through  the
12        targeting of assistance; and
13             (4)  the State should utilize  all  appropriate  and
14        available  means  to fund this program and, to the extent
15        possible, should identify and utilize sources of  funding
16        which complement State tax revenues.
17    (Source: P.A. 86-127.)

18        (305 ILCS 20/4) (from Ch. 111 2/3, par. 1404)
19        Sec. 4. Energy Assistance Program.
20        (a)  The  Department of Commerce and Community Affairs is
21    hereby authorized to institute a program  to  promote  ensure
22    the  availability  and  affordability of heating and electric
23    service  to  low  income  citizens.   The  Department   shall
24    implement  the  program  by  rule promulgated pursuant to The
25    Illinois Administrative Procedure Act.   The program shall be
26    consistent with the purposes and objectives of this  Act  and
27    with  all  other  specific requirements provided herein.  The
28    Department shall ensure that the program is in  operation  by
29    November 1, 1989, and may enter into such contracts and other
30    agreements  with  local  agencies as may be necessary for the
31    purpose of administering the energy assistance program.
32        (b)  Nothing in this Act shall be construed  as  altering
33    or  limiting the authority conferred on the Illinois Commerce
 
                            -3-               LRB9215298WHcsA
 1    Commission by  the  Public  Utilities  Act  to  regulate  all
 2    aspects of the provision of public utility service, including
 3    but not limited to the authority to make rules and adjudicate
 4    disputes   between   utilities   and   customers  related  to
 5    eligibility for utility service, deposits, payment practices,
 6    discontinuance of service, and the  treatment  of  arrearages
 7    owing for previously rendered utility service.
 8    (Source: P.A. 86-127.)

 9        (305 ILCS 20/5) (from Ch. 111 2/3, par. 1405)
10        Sec. 5.  Policy Advisory Council.
11        (a)  Within  the  Department  of  Commerce  and Community
12    Affairs is created a  Low  Income  Energy  Assistance  Policy
13    Advisory Council.
14        (b)  The  Council  shall  be  chaired  by the Director of
15    Commerce and Community Affairs or his or her designee.  There
16    shall  be  15  members  of  the  Low Income Energy Assistance
17    Policy Advisory Council, including the  chairperson  and  the
18    following members:
19             (1)  one  member designated by the Illinois Commerce
20        Commission;
21             (2)  one   member   designated   by   the   Illinois
22        Department of Natural Resources;
23             (3)  one member designated by  the  Illinois  Energy
24        Association   to   represent  electric  public  utilities
25        serving in excess of 1 million customers in this State;
26             (4)  one member agreed upon by gas public  utilities
27        that serve more than 500,000 customers in this State;
28             (5)  one  member  designated  by the Illinois Energy
29        Association to represent  combination  gas  and  electric
30        public utilities;
31             (6)  one   member   agreed   upon  by  the  Illinois
32        Municipal Electric Agency and the Association of Illinois
33        Electric Cooperatives;
 
                            -4-               LRB9215298WHcsA
 1             (7)  one  member  agreed  upon   by   the   Illinois
 2        Industrial Energy Consumers;
 3             (8)  two  members  designated  by  the Department to
 4        represent low income energy consumers;
 5             (9)  two  members   designated   by   the   Illinois
 6        Community  Action Association to represent local agencies
 7        that assist in the administration of this Act;
 8             (10)  one member designated by the Citizens  Utility
 9        Board to represent residential energy consumers;
10             (11)  one  member  designated by the Illinois Retail
11        Merchants  Association  to  represent  commercial  energy
12        customers and;
13             (12)  one member designated  by  the  Department  to
14        represent independent energy providers.
15        (c)  Designated  and appointed members shall serve 2 year
16    terms and until their successors are appointed and qualified.
17    The designating organization shall notify the chairperson  of
18    any changes or substitutions of a designee within 10 business
19    days of a change or substitution. Members shall serve without
20    compensation,  but may receive reimbursement for actual costs
21    incurred  in  fulfilling  their  duties  as  members  of  the
22    Council.
23        (d)  The Council shall have the following duties:
24             (1)  to monitor the administration of  this  Act  to
25        ensure  effective,  efficient,  and  coordinated  program
26        development and implementation;
27             (2)  to  assist  the  Department  in  developing and
28        administering  rules  and  regulations  required  to   be
29        promulgated  pursuant  to this Act in a manner consistent
30        with the purpose and objectives of this Act;
31             (3)  to facilitate and coordinate the collection and
32        exchange of all program data and other information needed
33        by the Department and others in fulfilling  their  duties
34        pursuant to this Act;
 
                            -5-               LRB9215298WHcsA
 1             (4)  to advise the Department on the proper level of
 2        support required for effective administration of the Act;
 3             (5)  to  provide  a  written  opinion concerning any
 4        regulation proposed pursuant to this Act, and  to  review
 5        and  comment  on  any  energy  assistance or related plan
 6        required to be prepared by the Department;
 7             (6)  to advise the Department on the  use  of  funds
 8        collected  pursuant to Section 11 of this Act, and on any
 9        changes to existing low income energy assistance programs
10        to make effective use of such funds, so long as such uses
11        and changes are consistent with the requirements  of  the
12        Act. Policy Advisory Council to be comprised of:
13             (1)  the  following  ex  officio  members  or  their
14        designees:    the  Director  of  Commerce  and  Community
15        Affairs who shall serve as Chair of  the  Committee,  the
16        Director  of  Natural  Resources,  the Secretary of Human
17        Services, and  the  Chairman  of  the  Illinois  Commerce
18        Commission; and
19             (2)  9   persons  who  shall  be  appointed  by  the
20        Governor to serve 2 year terms and until their successors
21        are appointed and qualified, 3 of whom shall  be  persons
22        who  represent  low  income  households  or organizations
23        which represent such  households,  3  of  whom  shall  be
24        representatives  of  public  utilities  or other entities
25        which provide winter energy services, and 3 of whom shall
26        be representatives  of  local  agencies  engaged  by  the
27        Department to assist in the administration of this Act.
28             (3)  6   persons  who  shall  be  appointed  by  the
29        Director of the  Department  of  Commerce  and  Community
30        Affairs  to serve 2 year terms and until their successors
31        are appointed and qualified, who shall be persons meeting
32        such qualifications as may be  required  by  the  federal
33        government  for  the administration of the Weatherization
34        Assistance Program  funded  by  the  U.S.  Department  of
 
                            -6-               LRB9215298WHcsA
 1        Energy and any such related energy assistance programs.
 2             (4)  Members  shall  serve without compensation, but
 3        may receive reimbursement for actual  costs  incurred  in
 4        fulfilling their duties as members of the Council.
 5        (b)  The Policy Advisory Council shall have the following
 6    duties:
 7             (1)  to  monitor  the  administration of this Act to
 8        ensure  effective,  efficient,  and  coordinated  program
 9        development and implementation;
10             (2)  to assist  the  Department  in  developing  and
11        administering   rules  and  regulations  required  to  be
12        promulgated pursuant to this Act in a  manner  consistent
13        with the purpose and objectives of this Act;
14             (3)  to facilitate and coordinate the collection and
15        exchange of all program data and other information needed
16        by  the  Department and others in fulfilling their duties
17        pursuant to this Act;
18             (4)  to advise the Department on the proper level of
19        support required for effective administration of the Act;
20             (5)  to provide a  written  opinion  concerning  any
21        regulation  proposed  pursuant to this Act, and to review
22        and comment on any  energy  assistance  or  related  plan
23        required to be prepared by the Department;
24             (6)  on  or before March 1 of each year beginning in
25        1990, to prepare and submit a report to the Governor  and
26        General  Assembly  which  describes the activities of the
27        Department  in  the  development  and  implementation  of
28        energy assistance  and  related  policies  and  programs,
29        which   characterizes   progress   towards   meeting  the
30        objectives  and  requirements  of  this  Act,  and  which
31        recommends any statutory changes which might be needed to
32        further such progress.   The  report  submitted  in  1991
33        shall   include   an   analysis  of  and  recommendations
34        regarding this Act's provisions concerning State  payment
 
                            -7-               LRB9215298WHcsA
 1        of pre-program arrearages; and
 2             (7)  to  advise  the  Department on the use of funds
 3        collected pursuant to Section 13 of this Act, and on  any
 4        changes to existing low-income energy assistance programs
 5        to make effective use of such funds, so long as such uses
 6        and  changes  are  consistent  with  the  requirements of
 7        subsection (a) of Section 13 of this Act.
 8    (Source: P.A.  89-445,  eff.  2-7-96;  89-507,  eff.  7-1-97;
 9    90-561, eff. 12-16-97.)

10        (305 ILCS 20/6) (from Ch. 111 2/3, par. 1406)
11        Sec.  6.   Eligibility,  Conditions of Participation, and
12    Energy Assistance.
13        (a)  Any person  who  is  a  resident  of  the  State  of
14    Illinois  and  whose  household income is not greater than an
15    amount determined annually by the Department, in consultation
16    with the Policy Advisory Council, may  apply  for  assistance
17    pursuant   to   this   Act  in  accordance  with  regulations
18    promulgated  by  the  Department.  In  setting   the   annual
19    eligibility  level,  the Department shall consider the amount
20    of available funding and may not set a limit higher than 150%
21    of the federal nonfarm poverty level as  established  by  the
22    federal Office of Management and Budget.
23        (b)  Applicants  who  qualify  for assistance pursuant to
24    subsection  (a)   of   this   Section   shall,   subject   to
25    appropriation  from  the  General  Assembly  and  subject  to
26    availability  of  funds  to  the  Department,  receive energy
27    assistance as provided by this  Act.   The  Department,  upon
28    receipt  of monies authorized pursuant to this Act for energy
29    assistance, shall commit funds for each  qualified  applicant
30    in  an  amount  determined by the Department.  In determining
31    the amounts of assistance to be provided to or on behalf of a
32    qualified applicant, the Department  shall  ensure  that  the
33    highest  amounts  of  assistance  go  to  households with the
 
                            -8-               LRB9215298WHcsA
 1    greatest energy costs in relation to household  income.   The
 2    Department  shall  include  factors  such  as  energy  costs,
 3    household  size,  household  income,  and region of the State
 4    when determining individual household benefits.   In  setting
 5    assistance  levels,  the  Department shall attempt to provide
 6    assistance to approximately the same number of households who
 7    participated  in  the  1991  Residential  Energy   Assistance
 8    Partnership   Program.    Such  assistance  levels  shall  be
 9    adjusted annually on the basis of  funding  availability  and
10    energy  costs.   In promulgating rules for the administration
11    of this Section the Department shall assure that a minimum of
12    1/3 of funds available for benefits  to  eligible  households
13    with  the lowest incomes are made available to households who
14    are eligible for  public  assistance  and  that  elderly  and
15    disabled   households   are   offered  a  priority  one-month
16    application period.
17        (c)  If the applicant is not  a  customer  of  an  energy
18    provider  for winter energy services or an applicant for such
19    service,  such  applicant  shall  receive  a  direct   energy
20    assistance payment in an amount established by the Department
21    for  all  such  applicants under this Act; provided, however,
22    that such an applicant must have rental expenses for  housing
23    greater than 30% of household income.
24        (d)  If   the  applicant  is  a  customer  of  an  energy
25    provider, such applicant shall receive energy  assistance  in
26    an   amount  established  by  the  Department  for  all  such
27    applicants under this Act, such amount  to  be  paid  by  the
28    Department  to  the  energy  provider supplying winter energy
29    service to such applicant.  Such applicant shall:
30             (i)  make all reasonable efforts  to  apply  to  any
31        other appropriate source of public energy assistance; and
32             (ii)  sign  a  waiver  permitting  the Department to
33        receive income information from  any  public  or  private
34        agency providing income or energy assistance and from any
 
                            -9-               LRB9215298WHcsA
 1        employer, whether public or private.
 2        (e)  Any qualified applicant pursuant to this Section may
 3    receive  or have paid on such applicant's behalf an emergency
 4    assistance payment to enable such applicant to obtain  access
 5    to  winter  energy services.  Any such payments shall be made
 6    in accordance with regulations of the Department.
 7        (f)  The  Department  may,  if   sufficient   funds   are
 8    available,  provide  additional benefits to certain qualified
 9    applicants:
10             (i)  for the reduction of past due amounts  owed  to
11        energy providers and
12             (ii)  to assist the household respond to excessively
13        high  summer  temperatures  or  energy  costs. Households
14        containing elderly members, children,  a  person  with  a
15        disability,   or   a  person  with  a  medical  need  for
16        conditioned air shall receive  priority  for  receipt  of
17        such benefits.
18    (Source: P.A. 91-936, eff. 1-10-01.)

19        (305 ILCS 20/7) (from Ch. 111 2/3, par. 1407)
20        Sec. 7.  State Weatherization Plan and Program.
21        (a)  The  Department  shall,  after consultation with the
22    Policy Advisory Council, prepare  and  promulgate  an  annual
23    State  Weatherization  Plan  beginning  in  the year this Act
24    becomes effective.  To  the  extent  practicable,  such  Plan
25    shall  provide  for  targeting  use of both State and federal
26    weatherization funds to the households of eligible applicants
27    pursuant to this Act whose ratios of energy costs  to  income
28    are the highest.  The State Weatherization Plan shall include
29    but need not be limited to the following:
30             (1)  a     description     of     the    demographic
31        characteristics  and  energy  use  patterns   of   people
32        eligible for assistance pursuant to this Act;
33             (2)  the  methodology  used  by  the  Department  in
 
                            -10-              LRB9215298WHcsA
 1        targeting weatherization funds;
 2             (3)  a   description  of  anticipated  activity  and
 3        results for the year covered by the  Plan,  including  an
 4        estimate  of  energy cost savings expected to be realized
 5        by the weatherization program; and
 6             (4)  every  third  year,  beginning  in   2002,   an
 7        evaluation  of results from the weatherization program in
 8        the year preceding the plan year, including the effect of
 9        State  Weatherization  Program  investments   on   energy
10        consumption  and  cost  in  the  population  eligible for
11        assistance pursuant  to  this  Act,  and  the  effect  of
12        targeted  weatherization  investments on the costs of the
13        energy assistance program authorized by this Act.
14        (b)  The   Department   shall   implement    the    State
15    Weatherization  Plan by rule through a program which provides
16    targeted weatherization assistance to eligible applicants for
17    energy assistance pursuant to this Act.  The  Department  may
18    enter  into  such contracts and other arrangements with local
19    agencies as may be necessary for the purpose of administering
20    the weatherization program.
21    (Source: P.A. 86-127; 87-14.)

22        (305 ILCS 20/8) (from Ch. 111 2/3, par. 1408)
23        Sec. 8.  Program Evaluation Reports.
24        (a)  The Department of Natural  Resources  shall  prepare
25    and  submit  to the Governor and the General Assembly reports
26    on September 30 biennially March 15 of each  year,  beginning
27    in  2003  1991,  evaluating  the  effectiveness of the energy
28    assistance and weatherization  policies  authorized  by  this
29    Act.   The  first  report shall cover such effects during the
30    first winter during which the program authorized by this Act,
31    is in operation, and successive reports shall  cover  effects
32    since the issuance of the preceding report.
33             (1) (b)  Reports  issued  pursuant  to  this Section
 
                            -11-              LRB9215298WHcsA
 1        shall be limited to, information concerning  the  effects
 2        of the policies authorized by this Act on (1) the ability
 3        of  eligible  applicants  to obtain and maintain adequate
 4        and affordable winter energy services and (2) changes  in
 5        the costs and prices of winter energy services for people
 6        who  do  not  receive  energy assistance pursuant to this
 7        Act.
 8             (2) (c)  The Department of Natural  Resources  shall
 9        by  September  30,  2002, in consultation with the Policy
10        Advisory Council, determine the kinds  of  numerical  and
11        other  information  needed  to  conduct  the  evaluations
12        required  by  this  Section,  and shall advise the Policy
13        Advisory Council of such information needs  in  a  timely
14        manner.     The  Department  of  Commerce  and  Community
15        Affairs,  the  Department  of  Human  Services,  and  the
16        Illinois Commerce  Commission  shall  each  provide  such
17        information  as  the  Department of Natural Resources may
18        require  to  ensure   that   the   evaluation   reporting
19        requirement established by this Section can be met.
20        (b)  On  or  before  December  31,  2002, 2004, 2006, and
21    2007, the Department shall prepare a report for  the  General
22    Assembly  on  the  expenditure  of funds appropriated for the
23    programs authorized under this Act.
24        (c)  On or before December 31 of each year in 2004, 2006,
25    and 2007, the  Department  shall  in  consultation  with  the
26    Council,   prepare  and  submit  evaluation  reports  to  the
27    Governor and the General Assembly outlining  the  effects  of
28    the  program  designed  under this Act on the following as it
29    relates to the propriety of continuing the program:
30             (1)  the  definition  of  an  eligible  low   income
31        residential customer;
32             (2)  access  of  low income residential customers to
33        essential energy services;
34             (3)  past due  amounts  owed  to  utilities  by  low
 
                            -12-              LRB9215298WHcsA
 1        income persons in Illinois;
 2             (4)  appropriate   measures   to   encourage  energy
 3        conservation, efficiency, and  responsibility  among  low
 4        income residential customers;
 5             (5)  the   activities   of  the  Department  in  the
 6        development and implementation of energy  assistance  and
 7        related   policies   and  programs,  which  characterizes
 8        progress toward meeting the objectives  and  requirements
 9        of  this  Act, and which recommends any statutory changes
10        which might be needed to further such progress.
11        (d)  The Department  shall  by  September  30,  2002   in
12    consultation   with   the  Council  determine  the  kinds  of
13    numerical  and  other  information  needed  to  conduct   the
14    evaluations required by this Section.
15        (e) (d)  The  Illinois  Commerce Commission shall require
16    each public utility providing heating or electric service  to
17    compile and submit any numerical and other information needed
18    by  the Department of Natural Resources to meet its reporting
19    obligations.
20    (Source: P.A. 89-445, eff. 2-7-96; 89-507, eff. 7-1-97.)

21        (305 ILCS 20/13)
22        Sec. 13.  Supplemental Low-Income Energy Assistance Fund.
23        (a)  The Supplemental Low-Income Energy  Assistance  Fund
24    is  hereby  created  as a special fund in the State Treasury.
25    The  Supplemental  Low-Income  Energy  Assistance   Fund   is
26    authorized  to  receive,  by  statutory  deposit,  the moneys
27    collected   pursuant   to   this   Section.     Subject    to
28    appropriation,  the  Department  shall  use  moneys  from the
29    Supplemental Low-Income Energy Assistance Fund  for  payments
30    to  electric  or  gas public utilities, municipal electric or
31    gas utilities, and electric cooperatives on behalf  of  their
32    customers  who  are participants in the program authorized by
33    Section 4 of this Act, for the  provision  of  weatherization
 
                            -13-              LRB9215298WHcsA
 1    services   and   for   administration   of  the  Supplemental
 2    Low-Income Energy Assistance Fund.  The  yearly  expenditures
 3    for weatherization may not exceed 10% of the amount collected
 4    during  the  year  pursuant  to this Section.  In determining
 5    which  customers  will  participate  in  the   weatherization
 6    component,  the  Department  shall  target weatherization for
 7    those customers with the greatest energy burden, that is  the
 8    lowest   income  and  greatest  utility  bills.   The  yearly
 9    administrative expenses of the Supplemental Low-Income Energy
10    Assistance Fund may not exceed 10% of  the  amount  collected
11    during that year pursuant to this Section.
12        (b)  Notwithstanding  the provisions of Section 16-111 of
13    the Public Utilities Act but subject  to  subsection  (k)  of
14    this  Section,  each public utility, electric cooperative, as
15    defined in Section 3.4 of  the  Electric  Supplier  Act,  and
16    municipal  utility,  as  referenced  in  Section 3-105 of the
17    Public Utilities Act, that is  engaged  in  the  delivery  of
18    electricity  or  the  distribution  of natural gas within the
19    State of Illinois shall, effective January  1,  1998,  assess
20    each  of  its  customer  accounts a monthly Energy Assistance
21    Charge for  the  Supplemental  Low-Income  Energy  Assistance
22    Fund.  The  delivering  public utility, municipal electric or
23    gas  utility,  or  electric  or   gas   cooperative   for   a
24    self-assessing purchaser remains subject to the collection of
25    the fee imposed by this Section.  The monthly charge shall be
26    as follows:
27             (1)  $0.40 per month on each account for residential
28        electric service;
29             (2)  $0.40 per month on each account for residential
30        gas service;
31             (3)  $4    per    month    on   each   account   for
32        non-residential electric service which had less  than  10
33        megawatts  of  peak  demand  during the previous calendar
34        year;
 
                            -14-              LRB9215298WHcsA
 1             (4)  $4   per   month   on    each    account    for
 2        non-residential  gas  service which had distributed to it
 3        less than 4,000,000 therms of  gas  during  the  previous
 4        calendar year;
 5             (5)  $300    per   month   on   each   account   for
 6        non-residential electric service which had  10  megawatts
 7        or  greater  of  peak demand during the previous calendar
 8        year; and
 9             (6)  $300   per   month   on   each   account    for
10        non-residential  gas  service which had 4,000,000 or more
11        therms of gas  distributed  to  it  during  the  previous
12        calendar year.
13        (c)  For purposes of this Section:
14             (1)  "residential  electric  service" means electric
15        utility service for household  purposes  delivered  to  a
16        dwelling  of  2  or  fewer  units which is billed under a
17        residential  rate,  or  electric  utility   service   for
18        household  purposes delivered to a dwelling unit or units
19        which  is  billed  under  a  residential  rate   and   is
20        registered by a separate meter for each dwelling unit;
21             (2)  "residential  gas  service"  means  gas utility
22        service for household purposes distributed to a  dwelling
23        of  2  or fewer units which is billed under a residential
24        rate, or  gas  utility  service  for  household  purposes
25        distributed  to  a dwelling unit or units which is billed
26        under a residential rate and is registered by a  separate
27        meter for each dwelling unit;
28             (3)  "non-residential    electric   service"   means
29        electric  utility  service  which  is   not   residential
30        electric service; and
31             (4)  "non-residential gas service" means gas utility
32        service which is not residential gas service.
33        (d)  At  least 45 days prior to the date on which it must
34    begin  assessing  Energy  Assistance  Charges,  each   public
 
                            -15-              LRB9215298WHcsA
 1    utility  engaged  in  the  delivery  of  electricity  or  the
 2    distribution  of  natural  gas  shall  file with the Illinois
 3    Commerce  Commission   tariffs   incorporating   the   Energy
 4    Assistance Charge in other charges stated in such tariffs.
 5        (e)  The  Energy  Assistance  Charge assessed by electric
 6    and gas public utilities shall be  considered  a  charge  for
 7    public utility service.
 8        (f)  By  the 20th day of the month following the month in
 9    which the charges imposed by the Section were collected, each
10    public utility, municipal utility, and  electric  cooperative
11    shall  remit to the Department of Revenue all moneys received
12    as payment of  the  Energy  Assistance  Charge  on  a  return
13    prescribed and furnished by the Department of Revenue showing
14    such  information as the Department of Revenue may reasonably
15    require.  If a customer makes a  partial  payment,  a  public
16    utility, municipal utility, or electric cooperative may elect
17    either:  (i)  to apply such partial payments first to amounts
18    owed to the utility or cooperative for its services and  then
19    to  payment for the Energy Assistance Charge or (ii) to apply
20    such partial payments on a  pro-rata  basis  between  amounts
21    owed  to  the  utility or cooperative for its services and to
22    payment for the Energy Assistance Charge.
23        (g)  The Department of Revenue  shall  deposit  into  the
24    Supplemental  Low-Income  Energy  Assistance  Fund all moneys
25    remitted to it in accordance  with  subsection  (f)  of  this
26    Section.
27        (h)  (Blank).   If  as  of  June  30,  2002  the  program
28    authorized by Section 4 of this Act has not been replaced  by
29    a  new  energy assistance program which is in operation, then
30    the General  Assembly  shall  review  the  program;  provided
31    however,  that after that date, any public utility, municipal
32    utility, or electric cooperative shall continue to assess  an
33    Energy  Assistance Charge which was originally assessed on or
34    before June 30, 2002 and which remains unpaid.
 
                            -16-              LRB9215298WHcsA
 1        On or before December  31,  2002,  the  Department  shall
 2    prepare  a report for the General Assembly on the expenditure
 3    of funds appropriated from the Low-Income  Energy  Assistance
 4    Block  Grant  Fund for the program authorized under Section 4
 5    of this Act.
 6        (i)  The Department of Revenue may establish  such  rules
 7    as it deems necessary to implement this Section.
 8        (j)  The Department of Commerce and Community Affairs may
 9    establish  such rules as it deems necessary to implement this
10    Section.
11        (k)  The charges imposed by this Section shall only apply
12    to customers of  municipal  electric  or  gas  utilities  and
13    electric or gas cooperatives if the municipal electric or gas
14    utility  or  electric or gas cooperative makes an affirmative
15    decision to impose the charge.  If a  municipal  electric  or
16    gas  utility  or an electric cooperative makes an affirmative
17    decision to impose the charge provided by this  Section,  the
18    municipal  electric  or  gas  utility or electric cooperative
19    shall inform the Department of Revenue  in  writing  of  such
20    decision when it begins to impose the charge.  If a municipal
21    electric  or gas utility or electric or gas  cooperative does
22    not assess this charge, the Department may not use funds from
23    the Supplemental Low-Income Energy Assistance Fund to provide
24    benefits to its customers under  the  program  authorized  by
25    Section 4 of this Act.
26        In   its  use  of  federal  funds  under  this  Act,  the
27    Department may not cause a disproportionate  share  of  those
28    federal  funds  to  benefit customers of systems which do not
29    assess the charge provided by this Section.
30        This Section is  repealed  effective  December  31,  2007
31    unless  renewed  by  action  of  the  General  Assembly.  The
32    General  Assembly  shall  consider   the   results   of   the
33    evaluations described in Section 8 in its deliberations.
34    (Source: P.A. 90-561, eff. 12-16-97; 90-624, eff. 7-10-98.)
 
                            -17-              LRB9215298WHcsA
 1        (305 ILCS 20/7.1 rep.)
 2        (305 ILCS 20/9 rep.)
 3        (305 ILCS 20/12 rep.)
 4        (305 ILCS 20/14 rep.)
 5        Section 10.  The Energy Assistance Act of 1989 is amended
 6    by repealing Sections 7.1, 9, 12, and 14.

 7        Section 15.  The Renewable Energy, Energy Efficiency, and
 8    Coal Resources Development Law of 1997 is amended by changing
 9    Section 6-5 as follows:

10        (20 ILCS 687/6-5)
11        (Section scheduled to be repealed on December 16, 2007)
12        Sec.  6-5. Renewable Energy Resources and Coal Technology
13    Development Assistance Charge.
14        (a)  Notwithstanding the provisions of Section 16-111  of
15    the  Public  Utilities  Act  but subject to subsection (e) of
16    this Section, each public utility, electric  cooperative,  as
17    defined  in  Section  3.4  of  the Electric Supplier Act, and
18    municipal utility, as referenced  in  Section  3-105  of  the
19    Public  Utilities  Act,  that  is  engaged in the delivery of
20    electricity or the distribution of  natural  gas  within  the
21    State  of  Illinois  shall, effective January 1, 1998, assess
22    each of its customer  accounts  a  monthly  Renewable  Energy
23    Resources  and Coal Technology Development Assistance Charge.
24    The delivering public  utility,  municipal  electric  or  gas
25    utility,  or electric or gas cooperative for a self-assessing
26    purchaser remains  subject  to  the  collection  of  the  fee
27    imposed  by  this  Section.   The  monthly charge shall be as
28    follows:
29             (1)  $0.05 per month on each account for residential
30        electric service as defined in Section 13 of  the  Energy
31        Assistance Act of 1989;
32             (2)  $0.05 per month on each account for residential
 
                            -18-              LRB9215298WHcsA
 1        gas  service  as  defined  in  Section  13  of the Energy
 2        Assistance Act of 1989;
 3             (3)  $0.50   per   month   on   each   account   for
 4        nonresidential electric service, as defined in Section 13
 5        of the Energy Assistance Act of 1989, which had less than
 6        10 megawatts of peak demand during the previous  calendar
 7        year;
 8             (4)  $0.50   per   month   on   each   account   for
 9        nonresidential  gas  service, as defined in Section 13 of
10        the Energy Assistance Act of 1989, which had  distributed
11        to  it  less  than  4,000,000  therms  of  gas during the
12        previous calendar year;
13             (5)  $37.50  per   month   on   each   account   for
14        nonresidential electric service, as defined in Section 13
15        of  the  Energy  Assistance  Act  of  1989,  which had 10
16        megawatts or greater of peak demand during  the  previous
17        calendar year; and
18             (6)  $37.50   per   month   on   each   account  for
19        nonresidential gas service, as defined in Section  13  of
20        the Energy Assistance Act of 1989, which had 4,000,000 or
21        more  therms of gas distributed to it during the previous
22        calendar year.
23        (b)  The Renewable Energy Resources and  Coal  Technology
24    Development  Assistance  Charge  assessed by electric and gas
25    public utilities shall be  considered  a  charge  for  public
26    utility service.
27        (c)  Fifty  percent  of  the moneys collected pursuant to
28    this Section shall  be  deposited  in  the  Renewable  Energy
29    Resources  Trust  Fund  by  the  Department  of  Revenue. The
30    remaining 50 percent of the moneys collected pursuant to this
31    Section shall be deposited in the Coal Technology Development
32    Assistance Fund by the Department of Revenue  for  use  under
33    the Illinois Coal Technology Development Assistance Act.
34        (d)  By  the 20th day of the month following the month in
 
                            -19-              LRB9215298WHcsA
 1    which the charges imposed by  this  Section  were  collected,
 2    each   utility   and  alternative  retail  electric  supplier
 3    collecting charges pursuant to this Section  shall  remit  to
 4    the Department of Revenue for deposit in the Renewable Energy
 5    Resources  Trust  Fund  and  the  Coal Technology Development
 6    Assistance Fund all moneys received as payment of the  charge
 7    provided  for  in  this  Section  on  a return prescribed and
 8    furnished  by  the  Department  of   Revenue   showing   such
 9    information  as  the  Department  of  Revenue  may reasonably
10    require.
11        (e)  The charges imposed by this Section shall only apply
12    to customers of  municipal  electric  or  gas  utilities  and
13    electric or gas cooperatives if the municipal electric or gas
14    utility  or  electric or gas cooperative makes an affirmative
15    decision to impose the charge. If a municipal electric or gas
16    utility  or  an  electric  or  gas   cooperative   makes   an
17    affirmative  decision  to  impose the charge provided by this
18    Section, the municipal electric or gas utility or electric or
19    gas cooperative shall inform the  Department  of  Revenue  in
20    writing of such decision when it begins to impose the charge.
21    If  a  municipal  electric  or gas utility or electric or gas
22    cooperative does not assess this charge, its customers  shall
23    not be eligible for the Renewable Energy Resources Program.
24        (f)  The  Department  of Revenue may establish such rules
25    as it deems necessary to implement this Section.
26    (Source: P.A. 90-561, eff. 12-16-97; 90-624, eff. 7-10-98.)

27        Section 20.  The  Public  Utilities  Act  is  amended  by
28    changing Sections 8-207, 16-108, and 16-111 as follows:

29        (220 ILCS 5/8-207) (from Ch. 111 2/3, par. 8-207)
30        Sec.  8-207. Any former residential customer whose gas or
31    electric service was used to provide or control  the  primary
32    source  of space heating in the dwelling and whose service is
 
                            -20-              LRB9215298WHcsA
 1    disconnected for nonpayment of  a  bill  or  a  deposit  from
 2    December 1 of the prior winter's heating season through April
 3    1  of  the  current  heating  season  shall  be  eligible for
 4    reconnection and a deferred  payment  arrangement  under  the
 5    provisions   of   this  Section,  subject  to  the  following
 6    limitations:
 7        A utility shall not be required to reconnect service  to,
 8    and  enter into a deferred payment arrangement with, a former
 9    customer under the provisions  of  this  Section  (1)  except
10    between  November 1 and April 1 of the current heating season
11    for former customers who do not have applications pending for
12    the program described in Section 6 of the  Energy  Assistance
13    Act  of 1989, and except between October 1 and April 1 of the
14    current heating season for all former customers who  do  have
15    applications  pending  for the program described in Section 6
16    of the Energy Assistance Act of 1989 and who provide proof of
17    application to the utility, (2) in 2 consecutive  years,  (3)
18    unless  that former customer has paid at least 33 1/3% of the
19    amount billed for utility service rendered  by  that  utility
20    subsequent  to  December  1  of the prior year, or (4) in any
21    instance where the utility can show there has been  tampering
22    with  the  utility's  wires, pipes, meters (including locking
23    devices), or other service equipment and further  shows  that
24    the  former  customer  enjoyed the benefit of utility service
25    obtained in the aforesaid manner.
26        The  terms  and  conditions  of  any   deferred   payment
27    arrangements established by the utility and a former customer
28    shall  take  into  consideration the following factors, based
29    upon information available from current  utility  records  or
30    provided by the former customer:
31             (1)  the amount past due;
32             (2)  the former customer's ability to pay;
33             (3)  the former customer's payment history;
34             (4)  the  reasons  for  the accumulation of the past
 
                            -21-              LRB9215298WHcsA
 1        due amounts; and
 2             (5)  any other  relevant  factors  relating  to  the
 3        former customer's circumstances.
 4        After   the   former   customer's  eligibility  has  been
 5    established in accordance with the first  paragraph  of  this
 6    Section  and,  upon  the  establishment of a deferred payment
 7    agreement, the former customer shall pay 1/3  of  the  amount
 8    past  due  (including reconnecting charge, if any) and 1/3 of
 9    any deposit required by the utility.
10        Upon the payment of 1/3 of the amount past due and 1/3 of
11    any deposit required by the utility,  the  former  customer's
12    service  shall  be  reconnected  as  soon  as  possible.  The
13    company and the former customer  shall  agree  to  a  payment
14    schedule  for  the  remaining  balances which will reasonably
15    allow the  former  customer  to  make  the  payments  on  the
16    remainder  of  the  deposit  and  the  past due balance while
17    paying  current  bills  during  the  winter  heating  season.
18    However,  the  utility  is  not  obliged  to   make   payment
19    arrangements  extending  beyond  the following November.  The
20    utility shall allow the former customer a minimum of 4 months
21    in which to retire the past due balance and 3 months in which
22    to pay the remainder of the  deposit.   The  former  customer
23    shall  also  be informed that payment on the amounts past due
24    and the deposit, if any, plus the current bills must be  paid
25    by  the  due  date  or  the  customer may face termination of
26    service pursuant to this Section and Section 8-206.
27        The  Commission  shall  develop  rules  to   govern   the
28    reconnection   of   a  former  customer  who  demonstrates  a
29    financial inability to meet the requirement  of  1/3  of  the
30    amount  past  due  and  1/3  of  any deposit requested by the
31    utility.  The Commission's rules shall establish a  means  by
32    which   the   former   customer's   utility  service  may  be
33    reconnected through the payment of a  reasonable  amount  and
34    upon entering  into a deferred payment agreement.
 
                            -22-              LRB9215298WHcsA
 1        Any  payment  agreement  made shall be in writing, with a
 2    copy provided to the former customer.  The renegotiation  and
 3    reinstatement of a customer and the establishment of a budget
 4    payment  plan  shall  be pursuant to rules established by the
 5    Commission.
 6        Not later than September 15 of each year, every  gas  and
 7    electric  utility  shall  conduct  a  survey  of  all  former
 8    residential  customers whose gas or electric service was used
 9    to provide or control the primary source of space heating  in
10    the dwelling and whose gas or electric service was terminated
11    for  nonpayment  of  a bill or deposit from December 1 of the
12    previous year to September 15 of that year and where  service
13    at  that  premises  has  not  been  restored.  Not later than
14    October 1 of each year the utility shall notify each of these
15    former customers that the gas or  electric  service  will  be
16    restored  by the company for the coming heating season if the
17    former customer contacts the utility and  makes  arrangements
18    with  the  utility  for  reconnection  of  service  under the
19    conditions set forth in this Section. A utility shall  notify
20    the  former  customer  or an adult member of the household by
21    personal visit, telephone contact or mailing of a  letter  by
22    first  class  mail  to  the last known address of that former
23    customer.   The  utility  shall  keep  records  which   would
24    indicate the date, form and the results of such contact.
25        Each  gas and electric utility which has former customers
26    affected  by  this  Section  shall  file  reports  with   the
27    Commission  providing  such information as the Commission may
28    deem appropriate. The Commission shall notify  each  gas  and
29    electric  utility  prior  to August 1 of each year concerning
30    the information which is to be included  in  the  report  for
31    that year.
32        In  no  event  shall  any  actions  taken by a utility in
33    compliance with this Section be deemed to abrogate or in  any
34    way  interfere with the utility's rights to pursue the normal
 
                            -23-              LRB9215298WHcsA
 1    collection processes otherwise available to it.
 2        The Commission shall promulgate rules to  implement  this
 3    Section.
 4    (Source: P.A. 86-782; 87-469.)

 5        (220 ILCS 5/16-108)
 6        Sec.  16-108.  Recovery  of  costs  associated  with  the
 7    provision of delivery services.
 8        (a)  An  electric  utility shall file a delivery services
 9    tariff with the Commission at least 210  days  prior  to  the
10    date  that  it  is  required  to begin offering such services
11    pursuant to this Act.  An electric utility shall provide  the
12    components  of  delivery  services  that  are  subject to the
13    jurisdiction of the Federal Energy Regulatory  Commission  at
14    the  same  prices,  terms  and  conditions  set  forth in its
15    applicable tariff as approved or allowed into effect by  that
16    Commission. The Commission shall otherwise have the authority
17    pursuant  to  Article  IX  to review, approve, and modify the
18    prices, terms and conditions of those components of  delivery
19    services  not  subject  to  the  jurisdiction  of the Federal
20    Energy Regulatory  Commission,  including  the  authority  to
21    determine  the  extent to which such delivery services should
22    be offered  on  an  unbundled  basis.   In  making  any  such
23    determination  the  Commission  shall consider, at a minimum,
24    the effect of additional unbundling on (i) the  objective  of
25    just  and  reasonable rates, (ii) electric utility employees,
26    and (iii) the development of competitive markets for electric
27    energy services in Illinois.
28        (b)  The Commission shall enter an  order  approving,  or
29    approving  as modified, the delivery services tariff no later
30    than 30 days prior to the date on which the electric  utility
31    must  commence  offering  such  services.  The Commission may
32    subsequently modify such tariff pursuant to this Act.
33        (c)  The electric  utility's  tariffs  shall  define  the
 
                            -24-              LRB9215298WHcsA
 1    classes  of  its  customers for purposes of delivery services
 2    charges.   Delivery  services  shall  be  priced   and   made
 3    available  to all retail customers electing delivery services
 4    in each such class on a nondiscriminatory basis regardless of
 5    whether the retail customer chooses the electric utility,  an
 6    affiliate  of  the electric utility, or another entity as its
 7    supplier of electric power and energy.  Charges for  delivery
 8    services  shall  be  cost based, and shall allow the electric
 9    utility to recover the costs of providing  delivery  services
10    through  its  charges  to its delivery service customers that
11    use the facilities and services associated with  such  costs.
12    Such  costs  shall include the costs of owning, operating and
13    maintaining transmission  and  distribution  facilities.  The
14    Commission  shall also be authorized to consider whether, and
15    if so to what extent, the following costs  are  appropriately
16    included  in  the electric utility's delivery services rates:
17    (i) the costs of that portion of generation  facilities  used
18    for  the production and absorption of reactive power in order
19    that retail  customers  located  in  the  electric  utility's
20    service  area  can  receive  electric  power  and energy from
21    suppliers other than the electric utility, and (ii) the costs
22    associated  with  the  use  and  redispatch   of   generation
23    facilities  to  mitigate  constraints  on the transmission or
24    distribution system in order that retail customers located in
25    the electric utility's  service  area  can  receive  electric
26    power  and  energy  from  suppliers  other  than the electric
27    utility.  Nothing in this subsection shall  be  construed  as
28    directing  the  Commission  to  allocate  any  of  the  costs
29    described  in  (i) or (ii) that are found to be appropriately
30    included in the electric utility's delivery services rates to
31    any particular customer group or geographic area  in  setting
32    delivery services rates.
33        (d)  The  Commission  shall  establish charges, terms and
34    conditions for delivery services that are just and reasonable
 
                            -25-              LRB9215298WHcsA
 1    and  shall  take   into   account   customer   impacts   when
 2    establishing such charges. In establishing charges, terms and
 3    conditions  for  delivery services, the Commission shall take
 4    into account voltage level differences.   A  retail  customer
 5    shall have the option to request to purchase electric service
 6    at  any  delivery  service voltage reasonably and technically
 7    feasible from the electric facilities serving that customer's
 8    premises provided  that  there  are  no  significant  adverse
 9    impacts  upon  system  reliability  or  system efficiency.  A
10    retail customer shall also have  the  option  to  request  to
11    purchase  electric  service  at any point of delivery that is
12    reasonably and technically feasible provided that  there  are
13    no  significant  adverse  impacts  on  system  reliability or
14    efficiency. Such requests shall not be unreasonably denied.
15        (e)  Electric  utilities  shall  recover  the  costs   of
16    installing,  operating  or  maintaining  facilities  for  the
17    particular   benefit   of   one  or  more  delivery  services
18    customers, including without limitation any costs incurred in
19    complying with  a  customer's  request  to  be  served  at  a
20    different voltage level, directly from the retail customer or
21    customers  for  whose benefit the costs were incurred, to the
22    extent such costs  are  not  recovered  through  the  charges
23    referred to in subsections (c) and (d) of this Section.
24        (f)  An  electric  utility  shall  be  entitled  but  not
25    required  to implement transition charges in conjunction with
26    the offering of delivery services pursuant to Section 16-104.
27    If an electric  utility  implements  transition  charges,  it
28    shall  implement  such  charges  for  all  delivery  services
29    customers  and for all customers described in subsection (h),
30    but shall not implement  transition  charges  for  power  and
31    energy  that  a  retail  customer  takes from cogeneration or
32    self-generation facilities located on that retail  customer's
33    premises, if such facilities meet the following criteria:
34             (i)  the  cogeneration or self-generation facilities
 
                            -26-              LRB9215298WHcsA
 1        serve a single retail customer and are  located  on  that
 2        retail   customer's   premises   (for  purposes  of  this
 3        subparagraph and  subparagraph  (ii),  an  industrial  or
 4        manufacturing   retail   customer   and   a  third  party
 5        contractor  that  is  served  by   such   industrial   or
 6        manufacturing customer through such retail customer's own
 7        electrical     distribution    facilities    under    the
 8        circumstances  described  in  subsection  (vi)   of   the
 9        definition  of "alternative retail electric supplier" set
10        forth in Section 16-102, shall  be  considered  a  single
11        retail customer);
12             (ii)  the cogeneration or self-generation facilities
13        either  (A)  are  sized  pursuant  to  generally accepted
14        engineering   standards   for   the   retail   customer's
15        electrical load at that  premises  (taking  into  account
16        standby  or  other  reliability considerations related to
17        that retail customer's operations at that site) or (B) if
18        the facility is a cogeneration facility  located  on  the
19        retail  customer's  premises,  the retail customer is the
20        thermal host for that facility and the facility has  been
21        designed  to  meet  that retail customer's thermal energy
22        requirements resulting in electrical output  beyond  that
23        retail  customer's  electrical  demand  at that premises,
24        comply  with  the  operating  and  efficiency   standards
25        applicable  to "qualifying facilities" specified in title
26        18 Code of Federal  Regulations  Section  292.205  as  in
27        effect  on  the  effective date of this amendatory Act of
28        1999;
29             (iii)  the retail customer  on  whose  premises  the
30        facilities  are  located either has an exclusive right to
31        receive, and corresponding obligation to pay for, all  of
32        the  electrical  capacity of the facility, or in the case
33        of a cogeneration facility that has been designed to meet
34        the retail customer's thermal energy requirements at that
 
                            -27-              LRB9215298WHcsA
 1        premises, an identified amount of the electrical capacity
 2        of the facility, over a minimum 5-year period; and
 3             (iv)  if the cogeneration facility is sized for  the
 4        retail  customer's  thermal  load  at  that  premises but
 5        exceeds the electrical load, any sales of excess power or
 6        energy are made only at wholesale,  are  subject  to  the
 7        jurisdiction of the Federal Energy Regulatory Commission,
 8        and   are  not  for  the  purpose  of  circumventing  the
 9        provisions of this subsection (f).
10    If a generation  facility  located  at  a  retail  customer's
11    premises  does  not  meet  the  above  criteria,  an electric
12    utility implementing transition  charges  shall  implement  a
13    transition  charge  until December 31, 2006 for any power and
14    energy taken by such retail customer from such facility as if
15    such power and energy had  been  delivered  by  the  electric
16    utility.    Provided,  however,  that  an  industrial  retail
17    customer that is taking power from a generation facility that
18    does not meet the above criteria but that is located on  such
19    customer's  premises  will  not  be  subject  to a transition
20    charge for the power and energy taken by such retail customer
21    from such generation facility if the facility does not  serve
22    any  other retail customer and either was installed on behalf
23    of the customer and for its own use prior to January 1, 1997,
24    or  is  both  predominantly  fueled  by  byproducts  of  such
25    customer's manufacturing process at such premises  and  sells
26    or  offers an average of 300 megawatts or more of electricity
27    produced from such generation  facility  into  the  wholesale
28    market.  Such  charges  shall  be  calculated  as provided in
29    Section 16-102, and shall be collected on each  kilowatt-hour
30    delivered  under  a  delivery  services  tariff  to  a retail
31    customer from the date  the  customer  first  takes  delivery
32    services  until  December  31,  2006  except  as  provided in
33    subsection (h) of this Section. Provided,  however,  that  an
34    electric  utility,  other  than an electric utility providing
 
                            -28-              LRB9215298WHcsA
 1    service to at least 1,000,000  customers  in  this  State  on
 2    January  1,  1999, shall be entitled to petition for entry of
 3    an order by the Commission authorizing the  electric  utility
 4    to  implement  transition  charges  for  an additional period
 5    ending no later than December 31, 2008.  The electric utility
 6    shall file its petition with supporting evidence  no  earlier
 7    than  16  months,  and  no  later  than  12  months, prior to
 8    December 31, 2006.  The Commission shall hold  a  hearing  on
 9    the  electric utility's petition and shall enter its order no
10    later than  8  months  after  the  petition  is  filed.   The
11    Commission  shall  determine  whether  and to what extent the
12    electric utility shall be authorized to implement  transition
13    charges   for  an  additional  period.   The  Commission  may
14    authorize  the  electric  utility  to  implement   transition
15    charges  for  some or all of the additional period, and shall
16    determine the mitigation factors to be used  in  implementing
17    such  transition charges; provided, that the Commission shall
18    not authorize mitigation factors less than 110% of  those  in
19    effect  during  the  12  months  ended December 31, 2006.  In
20    making its determination, the Commission shall  consider  the
21    following  factors:   the  necessity  to implement transition
22    charges for an additional period in  order  to  maintain  the
23    financial  integrity of the electric utility; the prudence of
24    the electric utility's actions in reducing  its  costs  since
25    the  effective  date  of  this  amendatory  Act  of 1997; the
26    ability of the electric utility to provide safe, adequate and
27    reliable service to retail customers in its service area; and
28    the impact on competition of allowing the electric utility to
29    implement transition charges for the additional period.
30        (g)  The  electric  utility  shall  file   tariffs   that
31    establish  the transition charges to be paid by each class of
32    customers to the electric utility  in  conjunction  with  the
33    provision   of  delivery  services.  The  electric  utility's
34    tariffs  shall  define  the  classes  of  its  customers  for
 
                            -29-              LRB9215298WHcsA
 1    purposes of  calculating  transition  charges.  The  electric
 2    utility's  tariffs  shall  provide  for  the  calculation  of
 3    transition  charges  on  a  customer-specific  basis  for any
 4    retail customer  whose  average  monthly  maximum  electrical
 5    demand  on  the electric utility's system during the 6 months
 6    with  the  customer's  highest  monthly  maximum   electrical
 7    demands   equals   or  exceeds  3.0  megawatts  for  electric
 8    utilities having more than 1,000,000 customers, and for other
 9    electric utilities for  any  customer  that  has  an  average
10    monthly  maximum  electrical demand on the electric utility's
11    system of one megawatt or  more,  and  (A)  for  which  there
12    exists  data  on  the  customer's  usage  during  the 3 years
13    preceding the date that the customer became eligible to  take
14    delivery services, or (B) for which there does not exist data
15    on the customer's usage during the 3 years preceding the date
16    that  the customer became eligible to take delivery services,
17    if in the electric utility's reasonable judgment there exists
18    comparable usage information or a sufficient basis to develop
19    such information, and  further  provided  that  the  electric
20    utility   can  require  customers  for  which  an  individual
21    calculation is made to sign  contracts  that  set  forth  the
22    transition charges to be paid by the customer to the electric
23    utility pursuant to the tariff.
24        (h)  An  electric  utility shall also be entitled to file
25    tariffs that allow it  to  collect  transition  charges  from
26    retail  customers in the electric utility's service area that
27    do not take delivery services but that take electric power or
28    energy from an alternative retail electric supplier  or  from
29    an  electric utility other than the electric utility in whose
30    service area the customer is located.  Such charges shall  be
31    calculated,  in  accordance with the definition of transition
32    charges in Section 16-102, for the period of  time  that  the
33    customer  would  be obligated to pay transition charges if it
34    were taking delivery services, except that no  deduction  for
 
                            -30-              LRB9215298WHcsA
 1    delivery services revenues shall be made in such calculation,
 2    and  usage data from the customer's class shall be used where
 3    historical usage data is not  available  for  the  individual
 4    customer.   The  customer  shall  be  obligated  to  pay such
 5    charges on a lump sum basis on or before the  date  on  which
 6    the  customer  commences to take service from the alternative
 7    retail electric supplier or other electric utility, provided,
 8    that the electric utility in whose service area the  customer
 9    is  located  shall offer the customer the option of signing a
10    contract pursuant to which the  customer  pays  such  charges
11    ratably  over the period in which the charges would otherwise
12    have applied.
13        (i)  An electric utility shall be entitled to add to  the
14    bills  of  delivery  services  customers  charges pursuant to
15    Sections  9-221,  9-222  (except  as  provided   in   Section
16    9-222.1),  and Section 16-114 of this Act, Section 5-5 of the
17    Electricity Infrastructure Maintenance Fee Law,  Section  6-5
18    of   the   Renewable  Energy,  Energy  Efficiency,  and  Coal
19    Resources Development Law of 1997,  and  Section  13  of  the
20    Energy Assistance Act of 1989.
21        (j)  If a retail customer that obtains electric power and
22    energy   from   cogeneration  or  self-generation  facilities
23    installed for its own use  on  or  before  January  1,  1997,
24    subsequently   takes   service  from  an  alternative  retail
25    electric supplier or  an  electric  utility  other  than  the
26    electric  utility  in  whose  service  area  the  customer is
27    located for any portion of the customer's electric power  and
28    energy  requirements  formerly obtained from those facilities
29    (including that amount purchased from the utility in lieu  of
30    such  generation  and not as standby power purchases, under a
31    cogeneration  displacement  tariff  in  effect  as   of   the
32    effective   date   of  this  amendatory  Act  of  1997),  the
33    transition   charges   otherwise   applicable   pursuant   to
34    subsections (f), (g), or (h) of this  Section  shall  not  be
 
                            -31-              LRB9215298WHcsA
 1    applicable  in  any  year  to  that portion of the customer's
 2    electric power and energy requirements formerly obtained from
 3    those  facilities,  provided,  that  for  purposes  of   this
 4    subsection  (j),  such  portion  shall not exceed the average
 5    number  of  kilowatt-hours  per  year   obtained   from   the
 6    cogeneration or self-generation facilities during the 3 years
 7    prior  to  the date on which the customer became eligible for
 8    delivery services, except as provided in  subsection  (f)  of
 9    Section 16-110.
10    (Source: P.A. 90-561, eff. 12-16-97; 91-50, eff. 6-30-99.)

11        (220 ILCS 5/16-111)
12        Sec.  16-111. Rates and restructuring transactions during
13    mandatory transition period.
14        (a)  During    the    mandatory    transition     period,
15    notwithstanding  any provision of Article IX of this Act, and
16    except as provided in subsections (b), (d), (e), and  (f)  of
17    this   Section,   the  Commission  shall  not  (i)  initiate,
18    authorize or order any change by way of increase (other  than
19    in  connection  with  a  request  for rate increase which was
20    filed after September 1, 1997 but prior to October 15,  1997,
21    by  an electric utility serving less than 12,500 customers in
22    this State),  (ii)  initiate  or,  unless  requested  by  the
23    electric  utility,  authorize  or  order any change by way of
24    decrease, restructuring or unbundling (except as provided  in
25    Section  16-109A),  in the rates of any electric utility that
26    were in effect on October 1, 1996,  or  (iii)  in  any  order
27    approving  any  application  for a merger pursuant to Section
28    7-204 that was  pending  as  of  May  16,  1997,  impose  any
29    condition  requiring any filing for an increase, decrease, or
30    change in, or other review of, an electric utility's rates or
31    enforce any such  condition  of  any  such  order;  provided,
32    however,   that   this  subsection  shall  not  prohibit  the
33    Commission from:
 
                            -32-              LRB9215298WHcsA
 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
 
                            -33-              LRB9215298WHcsA
 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  (A)  more  than
 4    500,000  customers  but less than 1,000,000 customers in this
 5    State on January 1, 1999, reducing, effective  May  1,  2002,
 6    each  component  of  its  base  rates  to  residential retail
 7    customers by an additional 5% from the base rates  in  effect
 8    immediately  prior  to  January  1,  1998,  or  (B)  at least
 9    1,000,000  customers  in  this  State  on  January  1,  1999,
10    reducing, effective October 1, 2001, each  component  of  its
11    base  rates  to residential retail customers by an additional
12    5% from the base rates in effect immediately prior to January
13    1, 1998. Provided, however, that (A) if an electric utility's
14    average residential retail rate is less than or equal to  the
15    average  residential  retail  rate  for  a  group  of Midwest
16    Utilities  (consisting   of   all   investor-owned   electric
17    utilities   with  annual  system  peaks  in  excess  of  1000
18    megawatts in the States of Illinois, Indiana, Iowa, Kentucky,
19    Michigan, Missouri,  Ohio,  and  Wisconsin),  based  on  data
20    reported   on   Form  1  to  the  Federal  Energy  Regulatory
21    Commission for calendar year 1995,  then  it  shall  only  be
22    required  to  file  tariffs (i) reducing, effective August 1,
23    1998, each component of its base rates to residential  retail
24    customers  by  5%  from  the base rates in effect immediately
25    prior to January 1, 1998, (ii) reducing, effective October 1,
26    2000, each component of its base rates to residential  retail
27    customers  by  the  lesser  of 5% of the base rates in effect
28    immediately prior to January 1, 1998  or  the  percentage  by
29    which  the electric utility's average residential retail rate
30    exceeds the average residential retail rate  of  the  Midwest
31    Utilities,  based  on  data reported on Form 1 to the Federal
32    Energy Regulatory Commission  for  calendar  year  1999,  and
33    (iii)  reducing, effective October 1, 2002, each component of
34    its  base  rates  to  residential  retail  customers  by   an
 
                            -34-              LRB9215298WHcsA
 1    additional amount equal to the lesser of 5% of the base rates
 2    in  effect  immediately  prior  to  January  1,  1998  or the
 3    percentage  by   which   the   electric   utility's   average
 4    residential  retail  rate  exceeds  the  average  residential
 5    retail  rate of the Midwest Utilities, based on data reported
 6    on Form 1 to the Federal  Energy  Regulatory  Commission  for
 7    calendar year 2001; and (B) if the average residential retail
 8    rate  of  an  electric  utility  serving  between 150,000 and
 9    250,000 retail customers in this State on January 1, 1995  is
10    less  than  or equal to 90% of the average residential retail
11    rate for the Midwest Utilities, based  on  data  reported  on
12    Form  1  to  the  Federal  Energy  Regulatory  Commission for
13    calendar year 1995, then it shall only be  required  to  file
14    tariffs   (i)   reducing,  effective  August  1,  1998,  each
15    component of its base rates to residential  retail  customers
16    by  2%  from  the  base  rates in effect immediately prior to
17    January 1, 1998; (ii) reducing, effective  October  1,  2000,
18    each  component  of  its  base  rates  to  residential retail
19    customers by 2% from the  base  rate  in  effect  immediately
20    prior  to  January  1,  1998;  and  (iii) reducing, effective
21    October  1,  2002,  each  component  of  its  base  rates  to
22    residential retail customers by 1% from  the  base  rates  in
23    effect  immediately  prior  to  January  1,  1998.  Provided,
24    further,  that  any  electric utility for which a decrease in
25    base rates has been or is placed into effect between  October
26    1, 1996 and the dates specified in the preceding sentences of
27    this  subsection,  other than pursuant to the requirements of
28    this subsection, shall be entitled to reduce  the  amount  of
29    any  reduction  or  reductions  in its base rates required by
30    this subsection by the amount of  such  other  decrease.  The
31    tariffs required under this subsection shall be filed 45 days
32    in advance of the effective date. Notwithstanding anything to
33    the  contrary in Section 9-220 of this Act, no restatement of
34    base rates in conjunction with  the  elimination  of  a  fuel
 
                            -35-              LRB9215298WHcsA
 1    adjustment clause under that Section shall result in a lesser
 2    decrease in base rates than customers would otherwise receive
 3    under   this  subsection  had  the  electric  utility's  fuel
 4    adjustment clause not been eliminated.
 5        (c)  Any utility reducing its base rates by 15% on August
 6    1,  1998  pursuant  to  subsection  (b)  shall  include   the
 7    following  statement  on  its bills for residential customers
 8    from August 1 through December 31, 1998: "Effective August 1,
 9    1998, your rates have been reduced by  15%  by  the  Electric
10    Service Customer Choice and Rate Relief Law of 1997 passed by
11    the  Illinois  General  Assembly.".  Any utility reducing its
12    base rates by 5% on August 1, 1998,  pursuant  to  subsection
13    (b)  shall  include  the following statement on its bills for
14    residential customers from  August  1  through  December  31,
15    1998:   "Effective  August  1,  1998,  your  rates  have been
16    reduced by 5% by the Electric  Service  Customer  Choice  and
17    Rate  Relief  Law  of  1997  passed  by  the Illinois General
18    Assembly.".
19        Any utility reducing its base rates by 2%  on  August  1,
20    1998  pursuant  to subsection (b) shall include the following
21    statement on its bills for residential customers from  August
22    1  through December 31, 1998: "Effective August 1, 1998, your
23    rates have  been  reduced  by  2%  by  the  Electric  Service
24    Customer  Choice  and  Rate  Relief Law of 1997 passed by the
25    Illinois General Assembly.".
26        (d)  During the  mandatory  transition  period,  but  not
27    before  January  1, 2000, and notwithstanding  the provisions
28    of  subsection  (a),  an  electric  utility  may  request  an
29    increase  in  its  base  rates  if   the   electric   utility
30    demonstrates  that  the  2-year average of its earned rate of
31    return  on  common  equity,  calculated  as  its  net  income
32    applicable to common stock divided  by  the  average  of  its
33    beginning  and  ending  balances  of common equity using data
34    reported in the electric  utility's  Form  1  report  to  the
 
                            -36-              LRB9215298WHcsA
 1    Federal  Energy  Regulatory Commission but adjusted to remove
 2    the effects of accelerated depreciation  or  amortization  or
 3    other  transition  or  mitigation measures implemented by the
 4    electric utility pursuant to subsection (g) of  this  Section
 5    and  the effect of any refund paid pursuant to subsection (e)
 6    of this Section, is below the 2-year average for the  same  2
 7    years of the monthly average yields of 30-year  U.S. Treasury
 8    bonds  published  by  the  Board of Governors of the  Federal
 9    Reserve System in its  weekly  H.15  Statistical  Release  or
10    successor   publication.  The  Commission  shall  review  the
11    electric utility's request, and may review the  justness  and
12    reasonableness   of  all  rates  for  tariffed  services,  in
13    accordance with the provisions of Article  IX  of  this  Act,
14    provided  that  the  Commission shall consider any special or
15    negotiated adjustments to the revenue requirement  agreed  to
16    between  the  electric  utility  and the other parties to the
17    proceeding.   In  setting  rates  under  this  Section,   the
18    Commission  shall  exclude  the  costs  and revenues that are
19    associated with  competitive  services  and  any  billing  or
20    pricing experiments conducted under Section 16-106.
21        (e)  For   the   purposes  of  this  subsection  (e)  all
22    calculations and  comparisons  shall  be  performed  for  the
23    Illinois operations of multijurisdictional utilities.  During
24    the   mandatory   transition   period,   notwithstanding  the
25    provisions of subsection (a), if the  2-year  average  of  an
26    electric  utility's  earned  rate of return on common equity,
27    calculated as its  net  income  applicable  to  common  stock
28    divided  by  the average of its beginning and ending balances
29    of  common  equity  using  data  reported  in  the   electric
30    utility's  Form  1  report  to  the Federal Energy Regulatory
31    Commission but adjusted to remove the effect  of  any  refund
32    paid  under  this  subsection  (e),  and  further adjusted to
33    include the annual amortization of any difference between the
34    consideration received  by  an  affiliated  interest  of  the
 
                            -37-              LRB9215298WHcsA
 1    electric  utility in the sale of an asset which had been sold
 2    or transferred by the  electric  utility  to  the  affiliated
 3    interest  subsequent to the effective date of this amendatory
 4    Act of 1997 and the consideration for which  such  asset  had
 5    been  sold  or  transferred  to the affiliated interest, with
 6    such difference to be amortized ratably from the date of  the
 7    sale by the affiliated interest to December 31, 2006, exceeds
 8    the  2-year  average of the Index for the same 2 years by 1.5
 9    or more percentage points, the electric  utility  shall  make
10    refunds to customers beginning the first billing day of April
11    in  the  following  year in the manner described in paragraph
12    (3) of this subsection. For purposes of this subsection  (e),
13    the  "Index"  shall  be the sum of (A) the average for the 12
14    months ended September 30 of the monthly  average  yields  of
15    30-year  U.S.  Treasury  bonds  published  by  the  Board  of
16    Governors  of  the  Federal Reserve System in its weekly H.15
17    Statistical Release or successor publication  for  each  year
18    1998  through  2004,  and  (B) (i) 4.00 percentage points for
19    each of  the  12-month  periods  ending  September  30,  1998
20    through  September  30, 1999 or 8.00 percentage points if the
21    electric utility's average residential retail  rate  is  less
22    than  or  equal to 90% of the average residential retail rate
23    for the "Midwest Utilities",  as  that  term  is  defined  in
24    subsection  (b)  of  this  Section, based on data reported on
25    Form 1  to  the  Federal  Energy  Regulatory  Commission  for
26    calendar  year  1995, and the electric utility served between
27    150,000 and 250,000 retail customers on January 1, 1995, (ii)
28    7.00 percentage points  for  each  of  the  12-month  periods
29    ending  September  30, 2000 through September 30, 2004 if the
30    electric utility was providing service to at least  1,000,000
31    customers   in  this  State  on  January  1,  1999,  or  9.00
32    percentage  points  if   the   electric   utility's   average
33    residential  retail  rate is less than or equal to 90% of the
34    average residential retail rate for the "Midwest  Utilities",
 
                            -38-              LRB9215298WHcsA
 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,  (iii)  11.00  percentage
 6    points  for each of the 12-month periods ending September 30,
 7    2000 through September 30, 2004, but  only  if  the  electric
 8    utility's  average  residential  retail  rate is less than or
 9    equal to 90% of the average residential retail rate  for  the
10    "Midwest  Utilities",  as  that term is defined in subsection
11    (b) of this Section, based on data reported on Form 1 to  the
12    Federal  Energy Regulatory Commission for calendar year 1995,
13    the electric  utility  served  between  150,000  and  250,000
14    retail  customers  in  this State on January 1, 1995, and the
15    electric utility offers delivery services on or  before  June
16    1,  2000 to retail customers whose annual electric energy use
17    comprises 33% of the kilowatt hour sales  to  that  group  of
18    retail customers that are classified under Division D, Groups
19    20  through 39 of the Standard Industrial Classifications set
20    forth  in  the  Standard  Industrial  Classification   Manual
21    published  by  the  United  States  Office  of Management and
22    Budget, excluding the kilowatt hour sales to those  customers
23    that  are  eligible for delivery services pursuant to Section
24    16-104(a)(1)(i),  and  offers  delivery   services   to   its
25    remaining  retail  customers  classified  under  Division  D,
26    Groups  20  through  39  on  or  before October 1, 2000, and,
27    provided further, that the electric utility  commits  not  to
28    petition  pursuant to Section 16-108(f) for entry of an order
29    by  the  Commission  authorizing  the  electric  utility   to
30    implement  transition  charges for an additional period after
31    December 31, 2006, or (iv) 5.00 percentage points for each of
32    the  12-month  periods  ending  September  30,  2000  through
33    September 30, 2004 for all other electric utilities  or  7.00
34    percentage points for such utilities for each of the 12-month
 
                            -39-              LRB9215298WHcsA
 1    periods  ending September 30, 2000 through September 30, 2004
 2    for any such utility that commits not to petition pursuant to
 3    Section 16-108(f) for entry of an  order  by  the  Commission
 4    authorizing  the  electric  utility  to  implement transition
 5    charges for an additional period after December 31, 2006.
 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)
 
                            -40-              LRB9215298WHcsA
 1             shall   be  divided  by  the  sum  of  the  electric
 2             utility's projected  total  kilowatt-hour  sales  to
 3             retail customers plus projected kilowatt-hours to be
 4             delivered  to delivery services customers over a one
 5             year period beginning with the first billing date in
 6             April in the succeeding year to  determine  a  cents
 7             per kilowatt-hour refund factor.
 8                  (iv)  The cents per kilowatt-hour refund factor
 9             calculated   in  (iii)  shall  be  credited  to  the
10             electric utility's customers by applying the  factor
11             on    the   customer's   monthly   bills   to   each
12             kilowatt-hour sold  or  delivered  until  the  total
13             amount   calculated   in   (ii)  has  been  paid  to
14             customers.
15        (f)  During the mandatory transition period, an  electric
16    utility  may  file  revised tariffs reducing the price of any
17    tariffed service offered by  the  electric  utility  for  all
18    customers  taking  that  tariffed  service,  which  shall  be
19    effective 7 days after filing.
20        (g)  During  the mandatory transition period, an electric
21    utility may, without obtaining any approval of the Commission
22    other  than  that  provided  for  in  this   subsection   and
23    notwithstanding  any  other provision of this Act or any rule
24    or regulation of  the  Commission  that  would  require  such
25    approval:
26             (1)  implement a reorganization, other than a merger
27        of 2 or more public utilities as defined in Section 3-105
28        or their holding companies;
29             (2)  retire generating plants from service;
30             (3)  sell,   assign,  lease  or  otherwise  transfer
31        assets to an affiliated or  unaffiliated  entity  and  as
32        part  of  such transaction enter into service agreements,
33        power purchase agreements, or other agreements  with  the
34        transferee; provided, however, that the prices, terms and
 
                            -41-              LRB9215298WHcsA
 1        conditions  of  any  power  purchase  agreement  must  be
 2        approved  or  allowed  into  effect by the Federal Energy
 3        Regulatory Commission; or
 4             (4)  use  any  accelerated  cost   recovery   method
 5        including     accelerated    depreciation,    accelerated
 6        amortization or other capital recovery methods, or record
 7        reductions to the original cost of its assets.
 8        In order to implement a reorganization, retire generating
 9    plants from service, or  sell,  assign,  lease  or  otherwise
10    transfer  assets  pursuant  to  this  Section,  the  electric
11    utility  shall comply with subsections (c) and (d) of Section
12    16-128, if applicable, and subsection (k) of this Section, if
13    applicable, and provide the Commission with at least 30  days
14    notice  of  the proposed reorganization or transaction, which
15    notice shall include the following information:
16                  (i)  a complete statement of the  entries  that
17             the  electric  utility  will  make  on its books and
18             records  of  account  to  implement   the   proposed
19             reorganization   or   transaction  together  with  a
20             certification from an independent  certified  public
21             accountant  that  such  entries  are  in accord with
22             generally accepted accounting principles and, if the
23             Commission has previously  approved  guidelines  for
24             cost   allocations   between  the  utility  and  its
25             affiliates,   a   certification   from   the   chief
26             accounting officer of the utility that such  entries
27             are in accord with those cost allocation guidelines;
28                  (ii)  a description of how the electric utility
29             will  use proceeds of any sale, assignment, lease or
30             transfer to  retire  debt  or  otherwise  reduce  or
31             recover  the  costs  of  services  provided  by such
32             electric utility;
33                  (iii)  a  list  of  all  federal  approvals  or
34             approvals required from departments and agencies  of
 
                            -42-              LRB9215298WHcsA
 1             this  State,  other  than  the  Commission, that the
 2             electric  utility  has   or   will   obtain   before
 3             implementing the reorganization or transaction;
 4                  (iv)  an irrevocable commitment by the electric
 5             utility  that  it  will  not,  as  a  result  of the
 6             transaction, impose any stranded cost  charges  that
 7             it  might  otherwise  be  allowed  to  charge retail
 8             customers  under  federal  law   or   increase   the
 9             transition  charges that it is otherwise entitled to
10             collect under this Article XVI; and
11                  (v)  if the electric utility proposes to  sell,
12             assign,  lease  or  otherwise  transfer a generating
13             plant that  brings  the  amount  of  net  dependable
14             generating  capacity  transferred  pursuant  to this
15             subsection to an amount equal to or greater than 15%
16             of the electric utility's net dependable capacity as
17             of the effective date  of  this  amendatory  Act  of
18             1997,  and  enters  into  a power purchase agreement
19             with the entity to which such  generating  plant  is
20             sold,  assigned,  leased,  or otherwise transferred,
21             the electric  utility  also  agrees,  if   its  fuel
22             adjustment  clause  has not already been eliminated,
23             to  eliminate  its   fuel   adjustment   clause   in
24             accordance  with subsection (b) of Section 9-220 for
25             a period of time equal to the  length  of  any  such
26             power  purchase agreement or successor agreement, or
27             until January 1, 2005, whichever is longer;  if  the
28             capacity  of the generating plant so transferred and
29             related power purchase agreement does not result  in
30             the  elimination of the fuel adjustment clause under
31             this subsection, and the fuel adjustment clause  has
32             not  already  been  eliminated, the electric utility
33             shall agree  that  the  costs  associated  with  the
34             transferred   plant   that   are   included  in  the
 
                            -43-              LRB9215298WHcsA
 1             calculation of the  rate  per  kilowatt-hour  to  be
 2             applied  pursuant  to  the  electric  utility's fuel
 3             adjustment  clause  during  such  period  shall  not
 4             exceed the per kilowatt-hour  cost  associated  with
 5             such  generating  plant  included  in  the  electric
 6             utility's  fuel  adjustment  clause  during the full
 7             calendar year  preceding  the  transfer,  with  such
 8             limit  to  be   adjusted each year thereafter by the
 9             Gross Domestic Product Implicit Price Deflator.
10                  (vi)  In  addition,  if  the  electric  utility
11             proposes to sell, assign, or lease, (A)  either  (1)
12             an amount of generating plant that brings the amount
13             of  net  dependable  generating capacity transferred
14             pursuant to this subsection to an amount equal to or
15             greater than 15% of its net dependable  capacity  on
16             the  effective  date of this amendatory Act of 1997,
17             or (2) one or more generating plants  with  a  total
18             net  dependable  capacity  of 1100 megawatts, or (B)
19             transmission and distribution facilities that either
20             (1)   bring   the   amount   of   transmission   and
21             distribution facilities transferred pursuant to this
22             subsection to an amount equal to or greater than 15%
23             of the electric utility's total depreciated original
24             cost investment in such facilities, or (2) represent
25             an investment  of  $25,000,000  in  terms  of  total
26             depreciated  original  cost,  the  electric  utility
27             shall provide, in addition to the information listed
28             in  subparagraphs  (i)  through  (v),  the following
29             information: (A) a description of how  the  electric
30             utility will meet its service obligations under this
31             Act  in  a  safe  and  reliable  manner  and (B) the
32             electric utility's projected earned rate  of  return
33             on  common  equity,  calculated  in  accordance with
34             subsection (d) of this Section, for each  year  from
 
                            -44-              LRB9215298WHcsA
 1             the  date  of  the  notice through December 31, 2004
 2             both with and without the proposed transaction.   If
 3             the  Commission has not issued an order initiating a
 4             hearing on the proposed transaction within  30  days
 5             after  the  date  the  electric  utility's notice is
 6             filed, the transaction  shall  be  deemed  approved.
 7             The   Commission  may,  after  notice  and  hearing,
 8             prohibit the proposed transaction if it makes either
 9             or both of the  following  findings:  (1)  that  the
10             proposed   transaction   will  render  the  electric
11             utility unable to provide its tariffed services in a
12             safe and reliable manner, or (2)  that  there  is  a
13             strong  likelihood that consummation of the proposed
14             transaction will  result  in  the  electric  utility
15             being  entitled  to  request an increase in its base
16             rates  during  the   mandatory   transition   period
17             pursuant  to  subsection  (d)  of this Section.  Any
18             hearing  initiated  by  the  Commission   into   the
19             proposed  transaction  shall  be  completed, and the
20             Commission's final order  approving  or  prohibiting
21             the proposed transaction shall be entered, within 90
22             days  after  the  date the electric utility's notice
23             was  filed.  Provided,   however,   that   a   sale,
24             assignment,  or  lease of transmission facilities to
25             an  independent  system  operator  that  meets   the
26             requirements  of Section 16-126 shall not be subject
27             to Commission approval under this Section.
28                  In any proceeding conducted by  the  Commission
29             pursuant  to  this  subparagraph  (vi), intervention
30             shall be limited to parties with a  direct  interest
31             in  the  transaction  which  is  the  subject of the
32             hearing and any statutory consumer protection agency
33             as defined in subsection  (d)  of  Section  9-102.1.
34             Notwithstanding  the provisions of Section 10-113 of
 
                            -45-              LRB9215298WHcsA
 1             this Act, any application seeking  rehearing  of  an
 2             order  issued  under this subparagraph (vi), whether
 3             filed by the electric utility or by  an  intervening
 4             party,  shall  be filed within 10 days after service
 5             of the order.
 6        The Commission shall not in any subsequent proceeding  or
 7    otherwise,  review such a reorganization or other transaction
 8    authorized by this Section, but shall retain the authority to
 9    allocate costs as stated in Section 16-111(i). An  entity  to
10    which an electric utility sells, assigns, leases or transfers
11    assets pursuant to this subsection (g) shall not, as a result
12    of  the  transactions  specified  in  this subsection (g), be
13    deemed a public utility as defined in Section 3-105.  Nothing
14    in this subsection (g) shall change any requirement under the
15    jurisdiction of the Illinois  Department  of  Nuclear  Safety
16    including,  but  not limited to, the payment of fees. Nothing
17    in this subsection (g) shall exempt a utility from  obtaining
18    a  certificate  pursuant to Section 8-406 of this Act for the
19    construction of a new electric generating facility.   Nothing
20    in this subsection (g) is intended to exempt the transactions
21    hereunder   from  the  operation  of  the  federal  or  State
22    antitrust laws. Nothing in this subsection (g) shall  require
23    an  electric  utility to use the procedures specified in this
24    subsection for any of the transactions specified herein.  Any
25    other procedure available under this Act may, at the electric
26    utility's election, be used for any such transaction.
27        (h)  During  the   mandatory   transition   period,   the
28    Commission   shall   not   establish  or  use  any  rates  of
29    depreciation, which for purposes  of  this  subsection  shall
30    include  amortization,  for  any  electric utility other than
31    those established pursuant to subsection (c) of Section 5-104
32    of this Act or utilized pursuant to subsection  (g)  of  this
33    Section.  Provided, however, that in any proceeding to review
34    an electric utility's rates for tariffed services pursuant to
 
                            -46-              LRB9215298WHcsA
 1    Section  9-201,  9-202,  9-250  or 16-111(d) of this Act, the
 2    Commission may establish new rates of  depreciation  for  the
 3    electric  utility  in  the same manner provided in subsection
 4    (d) of  Section  5-104  of  this  Act.  An  electric  utility
 5    implementing  an  accelerated  cost recovery method including
 6    accelerated depreciation, accelerated amortization  or  other
 7    capital  recovery  methods,  or  recording  reductions to the
 8    original cost of its assets, pursuant to  subsection  (g)  of
 9    this  Section,  shall  file  a  statement with the Commission
10    describing  the  accelerated  cost  recovery  method  to   be
11    implemented  or  the  reduction  in  the original cost of its
12    assets to be recorded.  Upon the filing  of  such  statement,
13    the  accelerated cost recovery method or the reduction in the
14    original cost of assets shall be deemed to be approved by the
15    Commission as  though  an  order  had  been  entered  by  the
16    Commission.
17        (i)  Subsequent  to  the mandatory transition period, the
18    Commission, in any proceeding to establish rates and  charges
19    for  tariffed  services offered by an electric utility, shall
20    consider only (1) the then  current  or  projected  revenues,
21    costs, investments and cost of capital directly or indirectly
22    associated  with the provision of such tariffed services; (2)
23    collection of transition charges in accordance with  Sections
24    16-102  and  16-108 of this Act; (3) recovery of any employee
25    transition costs as described in  Section  16-128  which  the
26    electric  utility  is continuing to incur, including recovery
27    of any unamortized portion of such costs previously  incurred
28    or committed, with such costs to be equitably allocated among
29    bundled  services,  delivery  services,  and  contracts  with
30    alternative  retail  electric  suppliers; and (4) recovery of
31    the costs associated with the electric  utility's  compliance
32    with  decommissioning  funding  requirements;  and  shall not
33    consider any other revenues, costs, investments  or  cost  of
34    capital of either the electric utility or of any affiliate of
 
                            -47-              LRB9215298WHcsA
 1    the  electric  utility  that  are  not  associated  with  the
 2    provision   of  tariffed  services.   In  setting  rates  for
 3    tariffed services, the Commission  shall  equitably  allocate
 4    joint  and  common costs and investments between the electric
 5    utility's competitive and tariffed services.  In  determining
 6    the  justness  and  reasonableness  of the electric power and
 7    energy component of an electric utility's rates for  tariffed
 8    services  subsequent  to  the mandatory transition period and
 9    prior to the time that the provision of such  electric  power
10    and  energy  is  declared  competitive,  the Commission shall
11    consider the extent to which the electric utility's  tariffed
12    rates  for  such component for each customer class exceed the
13    market value determined pursuant to Section 16-112,  and,  if
14    the electric power and energy component of such tariffed rate
15    exceeds  the  market  value by more than 10% for any customer
16    class, may establish such electric power and energy component
17    at a rate equal to the market value plus  10%.  In  any  such
18    case,  the Commission may also elect to extend the provisions
19    of Section 16-111(e) for any period  in  which  the  electric
20    utility  is  collecting transition charges, using information
21    applicable to such period.
22        (j)  During the mandatory transition period, an  electric
23    utility  may  elect  to  transfer  to  a non-operating income
24    account under the Commission's  Uniform  System  of  Accounts
25    either or both of (i) an amount of unamortized investment tax
26    credit  that  is  in  addition to the ratable amount which is
27    credited to the electric utility's operating  income  account
28    for  the  year  in  accordance  with  Section 46(f)(2) of the
29    federal Internal Revenue Code of 1986, as in effect prior  to
30    P.L.  101-508, or (ii) "excess tax reserves", as that term is
31    defined in Section 203(e)(2)(A) of the federal Tax Reform Act
32    of 1986, provided that (A) the  amount  transferred  may  not
33    exceed  the amount of the electric utility's assets that were
34    created  pursuant  to  Statement  of   Financial   Accounting
 
                            -48-              LRB9215298WHcsA
 1    Standards  No.  71 which the electric utility has written off
 2    during the mandatory transition period, and (B) the  transfer
 3    shall not be effective until approved by the Internal Revenue
 4    Service.   An  electric  utility  electing  to  make  such  a
 5    transfer  shall  file a statement with the Commission stating
 6    the amount and timing of the transfer for which it intends to
 7    request approval of the Internal Revenue Service, along  with
 8    a  copy  of  its  proposed  request  to  the Internal Revenue
 9    Service for a ruling.  The Commission shall  issue  an  order
10    within 14 days after the electric utility's filing approving,
11    subject  to  receipt  of  approval  from the Internal Revenue
12    Service, the proposed transfer.
13        (k)  If an electric utility is selling or transferring to
14    a single buyer 5 or more generating plants  located  in  this
15    State  with a total net dependable capacity of 5000 megawatts
16    or more pursuant to subsection (g) of this  Section  and  has
17    obtained  a  sale price or consideration that exceeds 200% of
18    the book value of such  plants,  the  electric  utility  must
19    provide  to  the  Governor,  the  President  of  the Illinois
20    Senate, the Minority  Leader  of  the  Illinois  Senate,  the
21    Speaker  of  the  Illinois  House of Representatives, and the
22    Minority Leader of the Illinois House of  Representatives  no
23    later  than  15 days after filing its notice under subsection
24    (g) of this Section or 5 days after the date  on  which  this
25    subsection  (k)  becomes  law,  whichever is later, a written
26    commitment in which such electric utility agrees to expend $2
27    billion outside the corporate limits of any municipality with
28    1,000,000 or more inhabitants within such electric  utility's
29    service  area,  over  a  6-year  period  beginning  with  the
30    calendar  year  in  which  the  notice is filed, on projects,
31    programs, and improvements within its service  area  relating
32    to   transmission   and   distribution   including,   without
33    limitation, infrastructure expansion, repair and replacement,
34    capital   investments,   operations   and   maintenance,  and
 
                            -49-              LRB9215298WHcsA
 1    vegetation management.
 2    (Source: P.A. 90-561, eff. 12-16-97; 90-563,  eff.  12-16-97;
 3    91-50, eff. 6-30-99.)

 4        Section  99.  Effective date.  This Act takes effect upon
 5    becoming law.
 
                            -50-              LRB9215298WHcsA
 1                                INDEX
 2               Statutes amended in order of appearance
 3    305 ILCS 20/1             from Ch. 111 2/3, par. 1401
 4    305 ILCS 20/2             from Ch. 111 2/3, par. 1402
 5    305 ILCS 20/4             from Ch. 111 2/3, par. 1404
 6    305 ILCS 20/5             from Ch. 111 2/3, par. 1405
 7    305 ILCS 20/6             from Ch. 111 2/3, par. 1406
 8    305 ILCS 20/7             from Ch. 111 2/3, par. 1407
 9    305 ILCS 20/8             from Ch. 111 2/3, par. 1408
10    305 ILCS 20/13
11    305 ILCS 20/7.1 rep.
12    305 ILCS 20/9 rep.
13    305 ILCS 20/12 rep.
14    305 ILCS 20/14 rep.
15    20 ILCS 687/6-5
16    220 ILCS 5/8-207          from Ch. 111 2/3, par. 8-207
17    220 ILCS 5/16-108
18    220 ILCS 5/16-111

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