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92_SB2235enr SB2235 Enrolled 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 Actof 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 receive essential levels of heat and electric service 16 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: SB2235 Enrolled -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 ensure that citizens have access to 5 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 ensure the 22 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 Departmentshall ensure that the program is in operation by29November 1, 1989, andmay 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 SB2235 Enrolled -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 20 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 and fewer than 1,500,000 28 customers in this State; 29 (5) one member agreed upon by gas public utilities 30 that serve 1,500,000 or more customers in this State; 31 (6) one member designated by the Illinois Energy 32 Association to represent combination gas and electric 33 public utilities; SB2235 Enrolled -4- LRB9215298WHcsA 1 (7) one member agreed upon by the Illinois 2 Municipal Electric Agency and the Association of Illinois 3 Electric Cooperatives; 4 (8) one member agreed upon by the Illinois 5 Industrial Energy Consumers; 6 (9) three members designated by the Department to 7 represent low income energy consumers; 8 (10) two members designated by the Illinois 9 Community Action Association to represent local agencies 10 that assist in the administration of this Act; 11 (11) one member designated by the Citizens Utility 12 Board to represent residential energy consumers; 13 (12) one member designated by the Illinois Retail 14 Merchants Association to represent commercial energy 15 customers; 16 (13) one member designated by the Department to 17 represent independent energy providers; and 18 (14) three members designated by the Mayor of the 19 City of Chicago. 20 (c) Designated and appointed members shall serve 2 year 21 terms and until their successors are appointed and qualified. 22 The designating organization shall notify the chairperson of 23 any changes or substitutions of a designee within 10 business 24 days of a change or substitution. Members shall serve without 25 compensation, but may receive reimbursement for actual costs 26 incurred in fulfilling their duties as members of the 27 Council. 28 (d) The Council shall have the following duties: 29 (1) to monitor the administration of this Act to 30 ensure effective, efficient, and coordinated program 31 development and implementation; 32 (2) to assist the Department in developing and 33 administering rules and regulations required to be 34 promulgated pursuant to this Act in a manner consistent SB2235 Enrolled -5- LRB9215298WHcsA 1 with the purpose and objectives of this Act; 2 (3) to facilitate and coordinate the collection and 3 exchange of all program data and other information needed 4 by the Department and others in fulfilling their duties 5 pursuant to this Act; 6 (4) to advise the Department on the proper level of 7 support required for effective administration of the Act; 8 (5) to provide a written opinion concerning any 9 regulation proposed pursuant to this Act, and to review 10 and comment on any energy assistance or related plan 11 required to be prepared by the Department; 12 (6) to advise the Department on the use of funds 13 collected pursuant to Section 11 of this Act, and on any 14 changes to existing low income energy assistance programs 15 to make effective use of such funds, so long as such uses 16 and changes are consistent with the requirements of the 17 Act.Policy Advisory Council to be comprised of:18(1) the following ex officio members or their19designees: the Director of Commerce and Community20Affairs who shall serve as Chair of the Committee, the21Director of Natural Resources, the Secretary of Human22Services, and the Chairman of the Illinois Commerce23Commission; and24(2) 9 persons who shall be appointed by the25Governor to serve 2 year terms and until their successors26are appointed and qualified, 3 of whom shall be persons27who represent low income households or organizations28which represent such households, 3 of whom shall be29representatives of public utilities or other entities30which provide winter energy services, and 3 of whom shall31be representatives of local agencies engaged by the32Department to assist in the administration of this Act.33(3) 6 persons who shall be appointed by the34Director of the Department of Commerce and CommunitySB2235 Enrolled -6- LRB9215298WHcsA 1Affairs to serve 2 year terms and until their successors2are appointed and qualified, who shall be persons meeting3such qualifications as may be required by the federal4government for the administration of the Weatherization5Assistance Program funded by the U.S. Department of6Energy and any such related energy assistance programs.7(4) Members shall serve without compensation, but8may receive reimbursement for actual costs incurred in9fulfilling their duties as members of the Council.10(b) The Policy Advisory Council shall have the following11duties:12(1) to monitor the administration of this Act to13ensure effective, efficient, and coordinated program14development and implementation;15(2) to assist the Department in developing and16administering rules and regulations required to be17promulgated pursuant to this Act in a manner consistent18with the purpose and objectives of this Act;19(3) to facilitate and coordinate the collection and20exchange of all program data and other information needed21by the Department and others in fulfilling their duties22pursuant to this Act;23(4) to advise the Department on the proper level of24support required for effective administration of the Act;25(5) to provide a written opinion concerning any26regulation proposed pursuant to this Act, and to review27and comment on any energy assistance or related plan28required to be prepared by the Department;29(6) on or before March 1 of each year beginning in301990, to prepare and submit a report to the Governor and31General Assembly which describes the activities of the32Department in the development and implementation of33energy assistance and related policies and programs,34which characterizes progress towards meeting theSB2235 Enrolled -7- LRB9215298WHcsA 1objectives and requirements of this Act, and which2recommends any statutory changes which might be needed to3further such progress. The report submitted in 19914shall include an analysis of and recommendations5regarding this Act's provisions concerning State payment6of pre-program arrearages; and7(7) to advise the Department on the use of funds8collected pursuant to Section 13 of this Act, and on any9changes to existing low-income energy assistance programs10to make effective use of such funds, so long as such uses11and changes are consistent with the requirements of12subsection (a) of Section 13 of this Act.13 (Source: P.A. 89-445, eff. 2-7-96; 89-507, eff. 7-1-97; 14 90-561, eff. 12-16-97.) 15 (305 ILCS 20/6) (from Ch. 111 2/3, par. 1406) 16 Sec. 6. Eligibility, Conditions of Participation, and 17 Energy Assistance. 18 (a) Any person who is a resident of the State of 19 Illinois and whose household income is not greater than an 20 amount determined annually by the Department, in consultation 21 with the Policy Advisory Council, may apply for assistance 22 pursuant to this Act in accordance with regulations 23 promulgated by the Department. In setting the annual 24 eligibility level, the Department shall consider the amount 25 of available funding and may not set a limit higher than 150% 26 of the federal nonfarm poverty level as established by the 27 federal Office of Management and Budget. 28 (b) Applicants who qualify for assistance pursuant to 29 subsection (a) of this Section shall, subject to 30 appropriation from the General Assembly and subject to 31 availability of funds to the Department, receive energy 32 assistance as provided by this Act. The Department, upon 33 receipt of monies authorized pursuant to this Act for energy SB2235 Enrolled -8- LRB9215298WHcsA 1 assistance, shall commit funds for each qualified applicant 2 in an amount determined by the Department. In determining 3 the amounts of assistance to be provided to or on behalf of a 4 qualified applicant, the Department shall ensure that the 5 highest amounts of assistance go to households with the 6 greatest energy costs in relation to household income. The 7 Department shall include factors such as energy costs, 8 household size, household income, and region of the State 9 when determining individual household benefits. In setting 10 assistance levels, the Department shall attempt to provide 11 assistance to approximately the same number of households who 12 participated in the 1991 Residential Energy Assistance 13 Partnership Program. Such assistance levels shall be 14 adjusted annually on the basis of funding availability and 15 energy costs. In promulgating rules for the administration 16 of this Section the Department shall assure that a minimum of 17 1/3 of funds available for benefits to eligible households 18 with the lowest incomesare made available to households who19are eligible for public assistanceand that elderly and 20 disabled households are offered a priorityone-month21 application period. 22 (c) If the applicant is not a customer of an energy 23 provider for winter energy services or an applicant for such 24 service, such applicant shall receive a direct energy 25 assistance payment in an amount established by the Department 26 for all such applicants under this Act; provided, however, 27 that such an applicant must have rental expenses for housing 28 greater than 30% of household income. 29 (d) If the applicant is a customer of an energy 30 provider, such applicant shall receive energy assistance in 31 an amount established by the Department for all such 32 applicants under this Act, such amount to be paid by the 33 Department to the energy provider supplying winter energy 34 service to such applicant. Such applicant shall: SB2235 Enrolled -9- LRB9215298WHcsA 1 (i) make all reasonable efforts to apply to any 2 other appropriate source of public energy assistance; and 3 (ii) sign a waiver permitting the Department to 4 receive income information from any public or private 5 agency providing income or energy assistance and from any 6 employer, whether public or private. 7 (e) Any qualified applicant pursuant to this Section may 8 receive or have paid on such applicant's behalf an emergency 9 assistance payment to enable such applicant to obtain access 10 to winter energy services. Any such payments shall be made 11 in accordance with regulations of the Department. 12 (f) The Department may, if sufficient funds are 13 available, provide additional benefits to certain qualified 14 applicants: 15 (i) for the reduction of past due amounts owed to 16 energy providers; and 17 (ii) to assist the household in responding to 18 excessively high summer temperatures or energy costs. 19 Households containing elderly members, children, a person 20 with a disability, or a person with a medical need for 21 conditioned air shall receive priority for receipt of 22 such benefits. 23 (Source: P.A. 91-936, eff. 1-10-01.) 24 (305 ILCS 20/7) (from Ch. 111 2/3, par. 1407) 25 Sec. 7. State Weatherization Plan and Program. 26 (a) The Department shall, after consultation with the 27 Policy Advisory Council, prepare and promulgate an annual 28 State Weatherization Plan beginning in the year this Act 29 becomes effective. To the extent practicable, such Plan 30 shall provide for targeting use of both State and federal 31 weatherization funds to the households of eligible applicants 32 pursuant to this Act whose ratios of energy costs to income 33 are the highest. The State Weatherization Plan shall include SB2235 Enrolled -10- LRB9215298WHcsA 1 but need not be limited to the following: 2 (1) a description of the demographic 3 characteristics and energy use patterns of people 4 eligible for assistance pursuant to this Act; 5 (2) the methodology used by the Department in 6 targeting weatherization funds; 7 (3) a description of anticipated activity and 8 results for the year covered by the Plan, including an 9 estimate of energy cost savings expected to be realized 10 by the weatherization program; and 11 (4) every third year, beginning in 2002, an 12 evaluation of results from the weatherization program in 13 the year preceding the plan year, including the effect of 14 State Weatherization Program investments on energy 15 consumption and cost in the population eligible for 16 assistance pursuant to this Act, and the effect of 17 targeted weatherization investments on the costs of the 18 energy assistance program authorized by this Act. 19 (b) The Department shall implement the State 20 Weatherization Plan by rule through a program which provides 21 targeted weatherization assistance to eligible applicants for 22 energy assistance pursuant to this Act. The Department may 23 enter into such contracts and other arrangements with local 24 agencies as may be necessary for the purpose of administering 25 the weatherization program. 26 (Source: P.A. 86-127; 87-14.) 27 (305 ILCS 20/8) (from Ch. 111 2/3, par. 1408) 28 Sec. 8. ProgramEvaluationReports. 29 (a) The Department of Natural Resources shall prepare 30 and submit to the Governor and the General Assembly reports 31 on September 30 bienniallyMarch 15 of each year, beginning 32 in 20031991, evaluating the effectiveness of the energy 33 assistance and weatherization policies authorized by this SB2235 Enrolled -11- LRB9215298WHcsA 1 Act. The first report shall cover such effects during the 2 first winter during which the program authorized by this Act, 3 is in operation, and successive reports shall cover effects 4 since the issuance of the preceding report. 5 (1)(b)Reports issued pursuant to this Section 6 shall be limited to, information concerning the effects 7 of the policies authorized by this Act on (1) the ability 8 of eligible applicants to obtain and maintain adequate 9 and affordable winter energy services and (2) changes in 10 the costs and prices of winter energy services for people 11 who do not receive energy assistance pursuant to this 12 Act. 13 (2)(c)The Department of Natural Resources shall 14 by September 30, 2002, in consultation with the Policy 15 Advisory Council, determine the kinds of numerical and 16 other information needed to conduct the evaluations 17 required by this Section, and shall advise the Policy 18 Advisory Council of such information needs in a timely 19 manner. The Department of Commerce and Community 20 Affairs, the Department of Human Services, and the 21 Illinois Commerce Commission shall each provide such 22 information as the Department of Natural Resources may 23 require to ensure that the evaluation reporting 24 requirement established by this Section can be met. 25 (b) On or before December 31, 2002, 2004, 2006, and 26 2007, the Department shall prepare a report for the General 27 Assembly on the expenditure of funds appropriated for the 28 programs authorized under this Act. 29 (c) On or before December 31 of each year in 2004, 2006, 30 and 2007, the Department shall, in consultation with the 31 Council, prepare and submit evaluation reports to the 32 Governor and the General Assembly outlining the effects of 33 the program designed under this Act on the following as it 34 relates to the propriety of continuing the program: SB2235 Enrolled -12- LRB9215298WHcsA 1 (1) the definition of an eligible low income 2 residential customer; 3 (2) access of low income residential customers to 4 essential energy services; 5 (3) past due amounts owed to utilities by low 6 income persons in Illinois; 7 (4) appropriate measures to encourage energy 8 conservation, efficiency, and responsibility among low 9 income residential customers; 10 (5) the activities of the Department in the 11 development and implementation of energy assistance and 12 related policies and programs, which characterizes 13 progress toward meeting the objectives and requirements 14 of this Act, and which recommends any statutory changes 15 which might be needed to further such progress. 16 (d) The Department shall by September 30, 2002 in 17 consultation with the Council determine the kinds of 18 numerical and other information needed to conduct the 19 evaluations required by this Section. 20 (e)(d)The Illinois Commerce Commission shall require 21 each public utility providing heating or electric service to 22 compile and submit any numerical and other information needed 23 by the Department of Natural Resources to meet its reporting 24 obligations. 25 (Source: P.A. 89-445, eff. 2-7-96; 89-507, eff. 7-1-97.) 26 (305 ILCS 20/13) 27 Sec. 13. Supplemental Low-Income Energy Assistance Fund. 28 (a) The Supplemental Low-Income Energy Assistance Fund 29 is hereby created as a special fund in the State Treasury. 30 The Supplemental Low-Income Energy Assistance Fund is 31 authorized to receive, by statutory deposit, the moneys 32 collected pursuant to this Section. Subject to 33 appropriation, the Department shall use moneys from the SB2235 Enrolled -13- LRB9215298WHcsA 1 Supplemental Low-Income Energy Assistance Fund for payments 2 to electric or gas public utilities, municipal electric or 3 gas utilities, and electric cooperatives on behalf of their 4 customers who are participants in the program authorized by 5 Section 4 of this Act, for the provision of weatherization 6 services and for administration of the Supplemental 7 Low-Income Energy Assistance Fund. The yearly expenditures 8 for weatherization may not exceed 10% of the amount collected 9 during the year pursuant to this Section.In determining10which customers will participate in the weatherization11component, the Department shall target weatherization for12those customers with the greatest energy burden, that is the13lowest income and greatest utility bills.The yearly 14 administrative expenses of the Supplemental Low-Income Energy 15 Assistance Fund may not exceed 10% of the amount collected 16 during that year pursuant to this Section. 17 (b) Notwithstanding the provisions of Section 16-111 of 18 the Public Utilities Act but subject to subsection (k) of 19 this Section, each public utility, electric cooperative, as 20 defined in Section 3.4 of the Electric Supplier Act, and 21 municipal utility, as referenced in Section 3-105 of the 22 Public Utilities Act, that is engaged in the delivery of 23 electricity or the distribution of natural gas within the 24 State of Illinois shall, effective January 1, 1998, assess 25 each of its customer accounts a monthly Energy Assistance 26 Charge for the Supplemental Low-Income Energy Assistance 27 Fund. The delivering public utility, municipal electric or 28 gas utility, or electric or gas cooperative for a 29 self-assessing purchaser remains subject to the collection of 30 the fee imposed by this Section. The monthly charge shall be 31 as follows: 32 (1) $0.40 per month on each account for residential 33 electric service; 34 (2) $0.40 per month on each account for residential SB2235 Enrolled -14- LRB9215298WHcsA 1 gas service; 2 (3) $4 per month on each account for 3 non-residential electric service which had less than 10 4 megawatts of peak demand during the previous calendar 5 year; 6 (4) $4 per month on each account for 7 non-residential gas service which had distributed to it 8 less than 4,000,000 therms of gas during the previous 9 calendar year; 10 (5) $300 per month on each account for 11 non-residential electric service which had 10 megawatts 12 or greater of peak demand during the previous calendar 13 year; and 14 (6) $300 per month on each account for 15 non-residential gas service which had 4,000,000 or more 16 therms of gas distributed to it during the previous 17 calendar year. 18 (c) For purposes of this Section: 19 (1) "residential electric service" means electric 20 utility service for household purposes delivered to a 21 dwelling of 2 or fewer units which is billed under a 22 residential rate, or electric utility service for 23 household purposes delivered to a dwelling unit or units 24 which is billed under a residential rate and is 25 registered by a separate meter for each dwelling unit; 26 (2) "residential gas service" means gas utility 27 service for household purposes distributed to a dwelling 28 of 2 or fewer units which is billed under a residential 29 rate, or gas utility service for household purposes 30 distributed to a dwelling unit or units which is billed 31 under a residential rate and is registered by a separate 32 meter for each dwelling unit; 33 (3) "non-residential electric service" means 34 electric utility service which is not residential SB2235 Enrolled -15- LRB9215298WHcsA 1 electric service; and 2 (4) "non-residential gas service" means gas utility 3 service which is not residential gas service. 4 (d) At least 45 days prior to the date on which it must 5 begin assessing Energy Assistance Charges, each public 6 utility engaged in the delivery of electricity or the 7 distribution of natural gas shall file with the Illinois 8 Commerce Commission tariffs incorporating the Energy 9 Assistance Charge in other charges stated in such tariffs. 10 (e) The Energy Assistance Charge assessed by electric 11 and gas public utilities shall be considered a charge for 12 public utility service. 13 (f) By the 20th day of the month following the month in 14 which the charges imposed by the Section were collected, each 15 public utility, municipal utility, and electric cooperative 16 shall remit to the Department of Revenue all moneys received 17 as payment of the Energy Assistance Charge on a return 18 prescribed and furnished by the Department of Revenue showing 19 such information as the Department of Revenue may reasonably 20 require. If a customer makes a partial payment, a public 21 utility, municipal utility, or electric cooperative may elect 22 either: (i) to apply such partial payments first to amounts 23 owed to the utility or cooperative for its services and then 24 to payment for the Energy Assistance Charge or (ii) to apply 25 such partial payments on a pro-rata basis between amounts 26 owed to the utility or cooperative for its services and to 27 payment for the Energy Assistance Charge. 28 (g) The Department of Revenue shall deposit into the 29 Supplemental Low-Income Energy Assistance Fund all moneys 30 remitted to it in accordance with subsection (f) of this 31 Section. 32 (h) (Blank).If as of June 30, 2002 the program33authorized by Section 4 of this Act has not been replaced by34a new energy assistance program which is in operation, thenSB2235 Enrolled -16- LRB9215298WHcsA 1the General Assembly shall review the program; provided2however, that after that date, any public utility, municipal3utility, or electric cooperative shall continue to assess an4Energy Assistance Charge which was originally assessed on or5before June 30, 2002 and which remains unpaid.6 On or before December 31, 2002, the Department shall 7 prepare a report for the General Assembly on the expenditure 8 of funds appropriated from the Low-Income Energy Assistance 9 Block Grant Fund for the program authorized under Section 4 10 of this Act. 11 (i) The Department of Revenue may establish such rules 12 as it deems necessary to implement this Section. 13 (j) The Department of Commerce and Community Affairs may 14 establish such rules as it deems necessary to implement this 15 Section. 16 (k) The charges imposed by this Section shall only apply 17 to customers of municipal electric or gas utilities and 18 electric or gas cooperatives if the municipal electric or gas 19 utility or electric or gas cooperative makes an affirmative 20 decision to impose the charge. If a municipal electric or 21 gas utility or an electric cooperative makes an affirmative 22 decision to impose the charge provided by this Section, the 23 municipal electric or gas utility or electric cooperative 24 shall inform the Department of Revenue in writing of such 25 decision when it begins to impose the charge. If a municipal 26 electric or gas utility or electric or gas cooperative does 27 not assess this charge, the Department may not use funds from 28 the Supplemental Low-Income Energy Assistance Fund to provide 29 benefits to its customers under the program authorized by 30 Section 4 of this Act. 31 In its use of federal funds under this Act, the 32 Department may not cause a disproportionate share of those 33 federal funds to benefit customers of systems which do not 34 assess the charge provided by this Section. SB2235 Enrolled -17- LRB9215298WHcsA 1 This Section is repealed effective December 31, 2007 2 unless renewed by action of the General Assembly. The General 3 Assembly shall consider the results of the evaluations 4 described in Section 8 in its deliberations. 5 (Source: P.A. 90-561, eff. 12-16-97; 90-624, eff. 7-10-98.) 6 (305 ILCS 20/7.1 rep.) 7 (305 ILCS 20/9 rep.) 8 (305 ILCS 20/12 rep.) 9 (305 ILCS 20/14 rep.) 10 Section 10. The Energy Assistance Act of 1989 is amended 11 by repealing Sections 7.1, 9, 12, and 14. 12 Section 15. The Renewable Energy, Energy Efficiency, and 13 Coal Resources Development Law of 1997 is amended by changing 14 Section 6-5 as follows: 15 (20 ILCS 687/6-5) 16 (Section scheduled to be repealed on December 16, 2007) 17 Sec. 6-5. Renewable Energy Resources and Coal Technology 18 Development Assistance Charge. 19 (a) Notwithstanding the provisions of Section 16-111 of 20 the Public Utilities Act but subject to subsection (e) of 21 this Section, each public utility, electric cooperative, as 22 defined in Section 3.4 of the Electric Supplier Act, and 23 municipal utility, as referenced in Section 3-105 of the 24 Public Utilities Act, that is engaged in the delivery of 25 electricity or the distribution of natural gas within the 26 State of Illinois shall, effective January 1, 1998, assess 27 each of its customer accounts a monthly Renewable Energy 28 Resources and Coal Technology Development Assistance Charge. 29 The delivering public utility, municipal electric or gas 30 utility, or electric or gas cooperative for a self-assessing 31 purchaser remains subject to the collection of the fee SB2235 Enrolled -18- LRB9215298WHcsA 1 imposed by this Section. The monthly charge shall be as 2 follows: 3 (1) $0.05 per month on each account for residential 4 electric service as defined in Section 13 of the Energy 5 Assistance Actof 1989; 6 (2) $0.05 per month on each account for residential 7 gas service as defined in Section 13 of the Energy 8 Assistance Actof 1989; 9 (3) $0.50 per month on each account for 10 nonresidential electric service, as defined in Section 13 11 of the Energy Assistance Actof 1989, which had less than 12 10 megawatts of peak demand during the previous calendar 13 year; 14 (4) $0.50 per month on each account for 15 nonresidential gas service, as defined in Section 13 of 16 the Energy Assistance Actof 1989, which had distributed 17 to it less than 4,000,000 therms of gas during the 18 previous calendar year; 19 (5) $37.50 per month on each account for 20 nonresidential electric service, as defined in Section 13 21 of the Energy Assistance Actof 1989, which had 10 22 megawatts or greater of peak demand during the previous 23 calendar year; and 24 (6) $37.50 per month on each account for 25 nonresidential gas service, as defined in Section 13 of 26 the Energy Assistance Actof 1989, which had 4,000,000 or 27 more therms of gas distributed to it during the previous 28 calendar year. 29 (b) The Renewable Energy Resources and Coal Technology 30 Development Assistance Charge assessed by electric and gas 31 public utilities shall be considered a charge for public 32 utility service. 33 (c) Fifty percent of the moneys collected pursuant to 34 this Section shall be deposited in the Renewable Energy SB2235 Enrolled -19- LRB9215298WHcsA 1 Resources Trust Fund by the Department of Revenue. The 2 remaining 50 percent of the moneys collected pursuant to this 3 Section shall be deposited in the Coal Technology Development 4 Assistance Fund by the Department of Revenue for use under 5 the Illinois Coal Technology Development Assistance Act. 6 (d) By the 20th day of the month following the month in 7 which the charges imposed by this Section were collected, 8 each utility and alternative retail electric supplier 9 collecting charges pursuant to this Section shall remit to 10 the Department of Revenue for deposit in the Renewable Energy 11 Resources Trust Fund and the Coal Technology Development 12 Assistance Fund all moneys received as payment of the charge 13 provided for in this Section on a return prescribed and 14 furnished by the Department of Revenue showing such 15 information as the Department of Revenue may reasonably 16 require. 17 (e) The charges imposed by this Section shall only apply 18 to customers of municipal electric or gas utilities and 19 electric or gas cooperatives if the municipal electric or gas 20 utility or electric or gas cooperative makes an affirmative 21 decision to impose the charge. If a municipal electric or gas 22 utility or an electric or gas cooperative makes an 23 affirmative decision to impose the charge provided by this 24 Section, the municipal electric or gas utility or electric or 25 gas cooperative shall inform the Department of Revenue in 26 writing of such decision when it begins to impose the charge. 27 If a municipal electric or gas utility or electric or gas 28 cooperative does not assess this charge, its customers shall 29 not be eligible for the Renewable Energy Resources Program. 30 (f) The Department of Revenue may establish such rules 31 as it deems necessary to implement this Section. 32 (Source: P.A. 90-561, eff. 12-16-97; 90-624, eff. 7-10-98.) 33 Section 20. The Public Utilities Act is amended by SB2235 Enrolled -20- LRB9215298WHcsA 1 changing Sections 8-207, 16-108, and 16-111 as follows: 2 (220 ILCS 5/8-207) (from Ch. 111 2/3, par. 8-207) 3 Sec. 8-207. Any former residential customer whose gas or 4 electric service was used to provide or control the primary 5 source of space heating in the dwelling and whose service is 6 disconnected for nonpayment of a bill or a deposit from 7 December 1 of the prior winter's heating season through April 8 1 of the current heating season shall be eligible for 9 reconnection and a deferred payment arrangement under the 10 provisions of this Section, subject to the following 11 limitations: 12 A utility shall not be required to reconnect service to, 13 and enter into a deferred payment arrangement with, a former 14 customer under the provisions of this Section (1) except 15 between November 1 and April 1 of the current heating season 16 for former customers who do not have applications pending for 17 the program described in Section 6 of the Energy Assistance 18 Actof 1989, and except between October 1 and April 1 of the 19 current heating season for all former customers who do have 20 applications pending for the program described in Section 6 21 of the Energy Assistance Actof 1989and who provide proof of 22 application to the utility, (2) in 2 consecutive years, (3) 23 unless that former customer has paid at least 33 1/3% of the 24 amount billed for utility service rendered by that utility 25 subsequent to December 1 of the prior year, or (4) in any 26 instance where the utility can show there has been tampering 27 with the utility's wires, pipes, meters (including locking 28 devices), or other service equipment and further shows that 29 the former customer enjoyed the benefit of utility service 30 obtained in the aforesaid manner. 31 The terms and conditions of any deferred payment 32 arrangements established by the utility and a former customer 33 shall take into consideration the following factors, based SB2235 Enrolled -21- LRB9215298WHcsA 1 upon information available from current utility records or 2 provided by the former customer: 3 (1) the amount past due; 4 (2) the former customer's ability to pay; 5 (3) the former customer's payment history; 6 (4) the reasons for the accumulation of the past 7 due amounts; and 8 (5) any other relevant factors relating to the 9 former customer's circumstances. 10 After the former customer's eligibility has been 11 established in accordance with the first paragraph of this 12 Section and, upon the establishment of a deferred payment 13 agreement, the former customer shall pay 1/3 of the amount 14 past due (including reconnecting charge, if any) and 1/3 of 15 any deposit required by the utility. 16 Upon the payment of 1/3 of the amount past due and 1/3 of 17 any deposit required by the utility, the former customer's 18 service shall be reconnected as soon as possible. The 19 company and the former customer shall agree to a payment 20 schedule for the remaining balances which will reasonably 21 allow the former customer to make the payments on the 22 remainder of the deposit and the past due balance while 23 paying current bills during the winter heating season. 24 However, the utility is not obliged to make payment 25 arrangements extending beyond the following November. The 26 utility shall allow the former customer a minimum of 4 months 27 in which to retire the past due balance and 3 months in which 28 to pay the remainder of the deposit. The former customer 29 shall also be informed that payment on the amounts past due 30 and the deposit, if any, plus the current bills must be paid 31 by the due date or the customer may face termination of 32 service pursuant to this Section and Section 8-206. 33 The Commission shall develop rules to govern the 34 reconnection of a former customer who demonstrates a SB2235 Enrolled -22- LRB9215298WHcsA 1 financial inability to meet the requirement of 1/3 of the 2 amount past due and 1/3 of any deposit requested by the 3 utility. The Commission's rules shall establish a means by 4 which the former customer's utility service may be 5 reconnected through the payment of a reasonable amount and 6 upon entering into a deferred payment agreement. 7 Any payment agreement made shall be in writing, with a 8 copy provided to the former customer. The renegotiation and 9 reinstatement of a customer and the establishment of a budget 10 payment plan shall be pursuant to rules established by the 11 Commission. 12 Not later than September 15 of each year, every gas and 13 electric utility shall conduct a survey of all former 14 residential customers whose gas or electric service was used 15 to provide or control the primary source of space heating in 16 the dwelling and whose gas or electric service was terminated 17 for nonpayment of a bill or deposit from December 1 of the 18 previous year to September 15 of that year and where service 19 at that premises has not been restored. Not later than 20 October 1 of each year the utility shall notify each of these 21 former customers that the gas or electric service will be 22 restored by the company for the coming heating season if the 23 former customer contacts the utility and makes arrangements 24 with the utility for reconnection of service under the 25 conditions set forth in this Section. A utility shall notify 26 the former customer or an adult member of the household by 27 personal visit, telephone contact or mailing of a letter by 28 first class mail to the last known address of that former 29 customer. The utility shall keep records which would 30 indicate the date, form and the results of such contact. 31 Each gas and electric utility which has former customers 32 affected by this Section shall file reports with the 33 Commission providing such information as the Commission may 34 deem appropriate. The Commission shall notify each gas and SB2235 Enrolled -23- LRB9215298WHcsA 1 electric utility prior to August 1 of each year concerning 2 the information which is to be included in the report for 3 that year. 4 In no event shall any actions taken by a utility in 5 compliance with this Section be deemed to abrogate or in any 6 way interfere with the utility's rights to pursue the normal 7 collection processes otherwise available to it. 8 The Commission shall promulgate rules to implement this 9 Section. 10 (Source: P.A. 86-782; 87-469.) 11 (220 ILCS 5/16-108) 12 Sec. 16-108. Recovery of costs associated with the 13 provision of delivery services. 14 (a) An electric utility shall file a delivery services 15 tariff with the Commission at least 210 days prior to the 16 date that it is required to begin offering such services 17 pursuant to this Act. An electric utility shall provide the 18 components of delivery services that are subject to the 19 jurisdiction of the Federal Energy Regulatory Commission at 20 the same prices, terms and conditions set forth in its 21 applicable tariff as approved or allowed into effect by that 22 Commission. The Commission shall otherwise have the authority 23 pursuant to Article IX to review, approve, and modify the 24 prices, terms and conditions of those components of delivery 25 services not subject to the jurisdiction of the Federal 26 Energy Regulatory Commission, including the authority to 27 determine the extent to which such delivery services should 28 be offered on an unbundled basis. In making any such 29 determination the Commission shall consider, at a minimum, 30 the effect of additional unbundling on (i) the objective of 31 just and reasonable rates, (ii) electric utility employees, 32 and (iii) the development of competitive markets for electric 33 energy services in Illinois. SB2235 Enrolled -24- LRB9215298WHcsA 1 (b) The Commission shall enter an order approving, or 2 approving as modified, the delivery services tariff no later 3 than 30 days prior to the date on which the electric utility 4 must commence offering such services. The Commission may 5 subsequently modify such tariff pursuant to this Act. 6 (c) The electric utility's tariffs shall define the 7 classes of its customers for purposes of delivery services 8 charges. Delivery services shall be priced and made 9 available to all retail customers electing delivery services 10 in each such class on a nondiscriminatory basis regardless of 11 whether the retail customer chooses the electric utility, an 12 affiliate of the electric utility, or another entity as its 13 supplier of electric power and energy. Charges for delivery 14 services shall be cost based, and shall allow the electric 15 utility to recover the costs of providing delivery services 16 through its charges to its delivery service customers that 17 use the facilities and services associated with such costs. 18 Such costs shall include the costs of owning, operating and 19 maintaining transmission and distribution facilities. The 20 Commission shall also be authorized to consider whether, and 21 if so to what extent, the following costs are appropriately 22 included in the electric utility's delivery services rates: 23 (i) the costs of that portion of generation facilities used 24 for the production and absorption of reactive power in order 25 that retail customers located in the electric utility's 26 service area can receive electric power and energy from 27 suppliers other than the electric utility, and (ii) the costs 28 associated with the use and redispatch of generation 29 facilities to mitigate constraints on the transmission or 30 distribution system in order that retail customers located in 31 the electric utility's service area can receive electric 32 power and energy from suppliers other than the electric 33 utility. Nothing in this subsection shall be construed as 34 directing the Commission to allocate any of the costs SB2235 Enrolled -25- LRB9215298WHcsA 1 described in (i) or (ii) that are found to be appropriately 2 included in the electric utility's delivery services rates to 3 any particular customer group or geographic area in setting 4 delivery services rates. 5 (d) The Commission shall establish charges, terms and 6 conditions for delivery services that are just and reasonable 7 and shall take into account customer impacts when 8 establishing such charges. In establishing charges, terms and 9 conditions for delivery services, the Commission shall take 10 into account voltage level differences. A retail customer 11 shall have the option to request to purchase electric service 12 at any delivery service voltage reasonably and technically 13 feasible from the electric facilities serving that customer's 14 premises provided that there are no significant adverse 15 impacts upon system reliability or system efficiency. A 16 retail customer shall also have the option to request to 17 purchase electric service at any point of delivery that is 18 reasonably and technically feasible provided that there are 19 no significant adverse impacts on system reliability or 20 efficiency. Such requests shall not be unreasonably denied. 21 (e) Electric utilities shall recover the costs of 22 installing, operating or maintaining facilities for the 23 particular benefit of one or more delivery services 24 customers, including without limitation any costs incurred in 25 complying with a customer's request to be served at a 26 different voltage level, directly from the retail customer or 27 customers for whose benefit the costs were incurred, to the 28 extent such costs are not recovered through the charges 29 referred to in subsections (c) and (d) of this Section. 30 (f) An electric utility shall be entitled but not 31 required to implement transition charges in conjunction with 32 the offering of delivery services pursuant to Section 16-104. 33 If an electric utility implements transition charges, it 34 shall implement such charges for all delivery services SB2235 Enrolled -26- LRB9215298WHcsA 1 customers and for all customers described in subsection (h), 2 but shall not implement transition charges for power and 3 energy that a retail customer takes from cogeneration or 4 self-generation facilities located on that retail customer's 5 premises, if such facilities meet the following criteria: 6 (i) the cogeneration or self-generation facilities 7 serve a single retail customer and are located on that 8 retail customer's premises (for purposes of this 9 subparagraph and subparagraph (ii), an industrial or 10 manufacturing retail customer and a third party 11 contractor that is served by such industrial or 12 manufacturing customer through such retail customer's own 13 electrical distribution facilities under the 14 circumstances described in subsection (vi) of the 15 definition of "alternative retail electric supplier" set 16 forth in Section 16-102, shall be considered a single 17 retail customer); 18 (ii) the cogeneration or self-generation facilities 19 either (A) are sized pursuant to generally accepted 20 engineering standards for the retail customer's 21 electrical load at that premises (taking into account 22 standby or other reliability considerations related to 23 that retail customer's operations at that site) or (B) if 24 the facility is a cogeneration facility located on the 25 retail customer's premises, the retail customer is the 26 thermal host for that facility and the facility has been 27 designed to meet that retail customer's thermal energy 28 requirements resulting in electrical output beyond that 29 retail customer's electrical demand at that premises, 30 comply with the operating and efficiency standards 31 applicable to "qualifying facilities" specified in title 32 18 Code of Federal Regulations Section 292.205 as in 33 effect on the effective date of this amendatory Act of 34 1999; SB2235 Enrolled -27- LRB9215298WHcsA 1 (iii) the retail customer on whose premises the 2 facilities are located either has an exclusive right to 3 receive, and corresponding obligation to pay for, all of 4 the electrical capacity of the facility, or in the case 5 of a cogeneration facility that has been designed to meet 6 the retail customer's thermal energy requirements at that 7 premises, an identified amount of the electrical capacity 8 of the facility, over a minimum 5-year period; and 9 (iv) if the cogeneration facility is sized for the 10 retail customer's thermal load at that premises but 11 exceeds the electrical load, any sales of excess power or 12 energy are made only at wholesale, are subject to the 13 jurisdiction of the Federal Energy Regulatory Commission, 14 and are not for the purpose of circumventing the 15 provisions of this subsection (f). 16 If a generation facility located at a retail customer's 17 premises does not meet the above criteria, an electric 18 utility implementing transition charges shall implement a 19 transition charge until December 31, 2006 for any power and 20 energy taken by such retail customer from such facility as if 21 such power and energy had been delivered by the electric 22 utility. Provided, however, that an industrial retail 23 customer that is taking power from a generation facility that 24 does not meet the above criteria but that is located on such 25 customer's premises will not be subject to a transition 26 charge for the power and energy taken by such retail customer 27 from such generation facility if the facility does not serve 28 any other retail customer and either was installed on behalf 29 of the customer and for its own use prior to January 1, 1997, 30 or is both predominantly fueled by byproducts of such 31 customer's manufacturing process at such premises and sells 32 or offers an average of 300 megawatts or more of electricity 33 produced from such generation facility into the wholesale 34 market. Such charges shall be calculated as provided in SB2235 Enrolled -28- LRB9215298WHcsA 1 Section 16-102, and shall be collected on each kilowatt-hour 2 delivered under a delivery services tariff to a retail 3 customer from the date the customer first takes delivery 4 services until December 31, 2006 except as provided in 5 subsection (h) of this Section. Provided, however, that an 6 electric utility, other than an electric utility providing 7 service to at least 1,000,000 customers in this State on 8 January 1, 1999, shall be entitled to petition for entry of 9 an order by the Commission authorizing the electric utility 10 to implement transition charges for an additional period 11 ending no later than December 31, 2008. The electric utility 12 shall file its petition with supporting evidence no earlier 13 than 16 months, and no later than 12 months, prior to 14 December 31, 2006. The Commission shall hold a hearing on 15 the electric utility's petition and shall enter its order no 16 later than 8 months after the petition is filed. The 17 Commission shall determine whether and to what extent the 18 electric utility shall be authorized to implement transition 19 charges for an additional period. The Commission may 20 authorize the electric utility to implement transition 21 charges for some or all of the additional period, and shall 22 determine the mitigation factors to be used in implementing 23 such transition charges; provided, that the Commission shall 24 not authorize mitigation factors less than 110% of those in 25 effect during the 12 months ended December 31, 2006. In 26 making its determination, the Commission shall consider the 27 following factors: the necessity to implement transition 28 charges for an additional period in order to maintain the 29 financial integrity of the electric utility; the prudence of 30 the electric utility's actions in reducing its costs since 31 the effective date of this amendatory Act of 1997; the 32 ability of the electric utility to provide safe, adequate and 33 reliable service to retail customers in its service area; and 34 the impact on competition of allowing the electric utility to SB2235 Enrolled -29- LRB9215298WHcsA 1 implement transition charges for the additional period. 2 (g) The electric utility shall file tariffs that 3 establish the transition charges to be paid by each class of 4 customers to the electric utility in conjunction with the 5 provision of delivery services. The electric utility's 6 tariffs shall define the classes of its customers for 7 purposes of calculating transition charges. The electric 8 utility's tariffs shall provide for the calculation of 9 transition charges on a customer-specific basis for any 10 retail customer whose average monthly maximum electrical 11 demand on the electric utility's system during the 6 months 12 with the customer's highest monthly maximum electrical 13 demands equals or exceeds 3.0 megawatts for electric 14 utilities having more than 1,000,000 customers, and for other 15 electric utilities for any customer that has an average 16 monthly maximum electrical demand on the electric utility's 17 system of one megawatt or more, and (A) for which there 18 exists data on the customer's usage during the 3 years 19 preceding the date that the customer became eligible to take 20 delivery services, or (B) for which there does not exist data 21 on the customer's usage during the 3 years preceding the date 22 that the customer became eligible to take delivery services, 23 if in the electric utility's reasonable judgment there exists 24 comparable usage information or a sufficient basis to develop 25 such information, and further provided that the electric 26 utility can require customers for which an individual 27 calculation is made to sign contracts that set forth the 28 transition charges to be paid by the customer to the electric 29 utility pursuant to the tariff. 30 (h) An electric utility shall also be entitled to file 31 tariffs that allow it to collect transition charges from 32 retail customers in the electric utility's service area that 33 do not take delivery services but that take electric power or 34 energy from an alternative retail electric supplier or from SB2235 Enrolled -30- LRB9215298WHcsA 1 an electric utility other than the electric utility in whose 2 service area the customer is located. Such charges shall be 3 calculated, in accordance with the definition of transition 4 charges in Section 16-102, for the period of time that the 5 customer would be obligated to pay transition charges if it 6 were taking delivery services, except that no deduction for 7 delivery services revenues shall be made in such calculation, 8 and usage data from the customer's class shall be used where 9 historical usage data is not available for the individual 10 customer. The customer shall be obligated to pay such 11 charges on a lump sum basis on or before the date on which 12 the customer commences to take service from the alternative 13 retail electric supplier or other electric utility, provided, 14 that the electric utility in whose service area the customer 15 is located shall offer the customer the option of signing a 16 contract pursuant to which the customer pays such charges 17 ratably over the period in which the charges would otherwise 18 have applied. 19 (i) An electric utility shall be entitled to add to the 20 bills of delivery services customers charges pursuant to 21 Sections 9-221, 9-222 (except as provided in Section 22 9-222.1), and Section 16-114 of this Act, Section 5-5 of the 23 Electricity Infrastructure Maintenance Fee Law, Section 6-5 24 of the Renewable Energy, Energy Efficiency, and Coal 25 Resources Development Law of 1997, and Section 13 of the 26 Energy Assistance Actof 1989. 27 (j) If a retail customer that obtains electric power and 28 energy from cogeneration or self-generation facilities 29 installed for its own use on or before January 1, 1997, 30 subsequently takes service from an alternative retail 31 electric supplier or an electric utility other than the 32 electric utility in whose service area the customer is 33 located for any portion of the customer's electric power and 34 energy requirements formerly obtained from those facilities SB2235 Enrolled -31- LRB9215298WHcsA 1 (including that amount purchased from the utility in lieu of 2 such generation and not as standby power purchases, under a 3 cogeneration displacement tariff in effect as of the 4 effective date of this amendatory Act of 1997), the 5 transition charges otherwise applicable pursuant to 6 subsections (f), (g), or (h) of this Section shall not be 7 applicable in any year to that portion of the customer's 8 electric power and energy requirements formerly obtained from 9 those facilities, provided, that for purposes of this 10 subsection (j), such portion shall not exceed the average 11 number of kilowatt-hours per year obtained from the 12 cogeneration or self-generation facilities during the 3 years 13 prior to the date on which the customer became eligible for 14 delivery services, except as provided in subsection (f) of 15 Section 16-110. 16 (Source: P.A. 90-561, eff. 12-16-97; 91-50, eff. 6-30-99.) 17 (220 ILCS 5/16-111) 18 Sec. 16-111. Rates and restructuring transactions during 19 mandatory transition period. 20 (a) During the mandatory transition period, 21 notwithstanding any provision of Article IX of this Act, and 22 except as provided in subsections (b), (d), (e), and (f) of 23 this Section, the Commission shall not (i) initiate, 24 authorize or order any change by way of increase (other than 25 in connection with a request for rate increase which was 26 filed after September 1, 1997 but prior to October 15, 1997, 27 by an electric utility serving less than 12,500 customers in 28 this State), (ii) initiate or, unless requested by the 29 electric utility, authorize or order any change by way of 30 decrease, restructuring or unbundling (except as provided in 31 Section 16-109A), in the rates of any electric utility that 32 were in effect on October 1, 1996, or (iii) in any order 33 approving any application for a merger pursuant to Section SB2235 Enrolled -32- LRB9215298WHcsA 1 7-204 that was pending as of May 16, 1997, impose any 2 condition requiring any filing for an increase, decrease, or 3 change in, or other review of, an electric utility's rates or 4 enforce any such condition of any such order; provided, 5 however, that this subsection shall not prohibit the 6 Commission from: 7 (1) approving the application of an electric 8 utility to implement an alternative to rate of return 9 regulation or a regulatory mechanism that rewards or 10 penalizes the electric utility through adjustment of 11 rates based on utility performance, pursuant to Section 12 9-244; 13 (2) authorizing an electric utility to eliminate 14 its fuel adjustment clause and adjust its base rate 15 tariffs in accordance with subsection (b), (d), or (f) of 16 Section 9-220 of this Act, to fix its fuel adjustment 17 factor in accordance with subsection (c) of Section 9-220 18 of this Act, or to eliminate its fuel adjustment clause 19 in accordance with subsection (e) of Section 9-220 of 20 this Act; 21 (3) ordering into effect tariffs for delivery 22 services and transition charges in accordance with 23 Sections 16-104 and 16-108, for real-time pricing in 24 accordance with Section 16-107, or the options required 25 by Section 16-110 and subsection (n) of 16-112, allowing 26 a billing experiment in accordance with Section 16-106, 27 or modifying delivery services tariffs in accordance with 28 Section 16-109; or 29 (4) ordering or allowing into effect any tariff to 30 recover charges pursuant to Sections 9-201.5, 9-220.1, 31 9-221, 9-222 (except as provided in Section 9-222.1), 32 16-108, and 16-114 of this Act, Section 5-5 of the 33 Electricity Infrastructure Maintenance Fee Law, Section 34 6-5 of the Renewable Energy, Energy Efficiency, and Coal SB2235 Enrolled -33- LRB9215298WHcsA 1 Resources Development Law of 1997, and Section 13 of the 2 Energy Assistance Actof 1989. 3 (b) Notwithstanding the provisions of subsection (a), 4 each Illinois electric utility serving more than 12,500 5 customers in Illinois shall file tariffs (i) reducing, 6 effective August 1, 1998, each component of its base rates to 7 residential retail customers by 15% from the base rates in 8 effect immediately prior to January 1, 1998 and (ii) if the 9 public utility provides electric service to (A) more than 10 500,000 customers but less than 1,000,000 customers in this 11 State on January 1, 1999, reducing, effective May 1, 2002, 12 each component of its base rates to residential retail 13 customers by an additional 5% from the base rates in effect 14 immediately prior to January 1, 1998, or (B) at least 15 1,000,000 customers in this State on January 1, 1999, 16 reducing, effective October 1, 2001, each component of its 17 base rates to residential retail customers by an additional 18 5% from the base rates in effect immediately prior to January 19 1, 1998. Provided, however, that (A) if an electric utility's 20 average residential retail rate is less than or equal to the 21 average residential retail rate for a group of Midwest 22 Utilities (consisting of all investor-owned electric 23 utilities with annual system peaks in excess of 1000 24 megawatts in the States of Illinois, Indiana, Iowa, Kentucky, 25 Michigan, Missouri, Ohio, and Wisconsin), based on data 26 reported on Form 1 to the Federal Energy Regulatory 27 Commission for calendar year 1995, then it shall only be 28 required to file tariffs (i) reducing, effective August 1, 29 1998, each component of its base rates to residential retail 30 customers by 5% from the base rates in effect immediately 31 prior to January 1, 1998, (ii) reducing, effective October 1, 32 2000, each component of its base rates to residential retail 33 customers by the lesser of 5% of the base rates in effect 34 immediately prior to January 1, 1998 or the percentage by SB2235 Enrolled -34- LRB9215298WHcsA 1 which the electric utility's average residential retail rate 2 exceeds the average residential retail rate of the Midwest 3 Utilities, based on data reported on Form 1 to the Federal 4 Energy Regulatory Commission for calendar year 1999, and 5 (iii) reducing, effective October 1, 2002, each component of 6 its base rates to residential retail customers by an 7 additional amount equal to the lesser of 5% of the base rates 8 in effect immediately prior to January 1, 1998 or the 9 percentage by which the electric utility's average 10 residential retail rate exceeds the average residential 11 retail rate of the Midwest Utilities, based on data reported 12 on Form 1 to the Federal Energy Regulatory Commission for 13 calendar year 2001; and (B) if the average residential retail 14 rate of an electric utility serving between 150,000 and 15 250,000 retail customers in this State on January 1, 1995 is 16 less than or equal to 90% of the average residential retail 17 rate for the Midwest Utilities, based on data reported on 18 Form 1 to the Federal Energy Regulatory Commission for 19 calendar year 1995, then it shall only be required to file 20 tariffs (i) reducing, effective August 1, 1998, each 21 component of its base rates to residential retail customers 22 by 2% from the base rates in effect immediately prior to 23 January 1, 1998; (ii) reducing, effective October 1, 2000, 24 each component of its base rates to residential retail 25 customers by 2% from the base rate in effect immediately 26 prior to January 1, 1998; and (iii) reducing, effective 27 October 1, 2002, each component of its base rates to 28 residential retail customers by 1% from the base rates in 29 effect immediately prior to January 1, 1998. Provided, 30 further, that any electric utility for which a decrease in 31 base rates has been or is placed into effect between October 32 1, 1996 and the dates specified in the preceding sentences of 33 this subsection, other than pursuant to the requirements of 34 this subsection, shall be entitled to reduce the amount of SB2235 Enrolled -35- LRB9215298WHcsA 1 any reduction or reductions in its base rates required by 2 this subsection by the amount of such other decrease. The 3 tariffs required under this subsection shall be filed 45 days 4 in advance of the effective date. Notwithstanding anything to 5 the contrary in Section 9-220 of this Act, no restatement of 6 base rates in conjunction with the elimination of a fuel 7 adjustment clause under that Section shall result in a lesser 8 decrease in base rates than customers would otherwise receive 9 under this subsection had the electric utility's fuel 10 adjustment clause not been eliminated. 11 (c) Any utility reducing its base rates by 15% on August 12 1, 1998 pursuant to subsection (b) shall include the 13 following statement on its bills for residential customers 14 from August 1 through December 31, 1998: "Effective August 1, 15 1998, your rates have been reduced by 15% by the Electric 16 Service Customer Choice and Rate Relief Law of 1997 passed by 17 the Illinois General Assembly.". Any utility reducing its 18 base rates by 5% on August 1, 1998, pursuant to subsection 19 (b) shall include the following statement on its bills for 20 residential customers from August 1 through December 31, 21 1998: "Effective August 1, 1998, your rates have been 22 reduced by 5% by the Electric Service Customer Choice and 23 Rate Relief Law of 1997 passed by the Illinois General 24 Assembly.". 25 Any utility reducing its base rates by 2% on August 1, 26 1998 pursuant to subsection (b) shall include the following 27 statement on its bills for residential customers from August 28 1 through December 31, 1998: "Effective August 1, 1998, your 29 rates have been reduced by 2% by the Electric Service 30 Customer Choice and Rate Relief Law of 1997 passed by the 31 Illinois General Assembly.". 32 (d) During the mandatory transition period, but not 33 before January 1, 2000, and notwithstanding the provisions 34 of subsection (a), an electric utility may request an SB2235 Enrolled -36- LRB9215298WHcsA 1 increase in its base rates if the electric utility 2 demonstrates that the 2-year average of its earned rate of 3 return on common equity, calculated as its net income 4 applicable to common stock divided by the average of its 5 beginning and ending balances of common equity using data 6 reported in the electric utility's Form 1 report to the 7 Federal Energy Regulatory Commission but adjusted to remove 8 the effects of accelerated depreciation or amortization or 9 other transition or mitigation measures implemented by the 10 electric utility pursuant to subsection (g) of this Section 11 and the effect of any refund paid pursuant to subsection (e) 12 of this Section, is below the 2-year average for the same 2 13 years of the monthly average yields of 30-year U.S. Treasury 14 bonds published by the Board of Governors of the Federal 15 Reserve System in its weekly H.15 Statistical Release or 16 successor publication. The Commission shall review the 17 electric utility's request, and may review the justness and 18 reasonableness of all rates for tariffed services, in 19 accordance with the provisions of Article IX of this Act, 20 provided that the Commission shall consider any special or 21 negotiated adjustments to the revenue requirement agreed to 22 between the electric utility and the other parties to the 23 proceeding. In setting rates under this Section, the 24 Commission shall exclude the costs and revenues that are 25 associated with competitive services and any billing or 26 pricing experiments conducted under Section 16-106. 27 (e) For the purposes of this subsection (e) all 28 calculations and comparisons shall be performed for the 29 Illinois operations of multijurisdictional utilities. During 30 the mandatory transition period, notwithstanding the 31 provisions of subsection (a), if the 2-year average of an 32 electric utility's earned rate of return on common equity, 33 calculated as its net income applicable to common stock 34 divided by the average of its beginning and ending balances SB2235 Enrolled -37- LRB9215298WHcsA 1 of common equity using data reported in the electric 2 utility's Form 1 report to the Federal Energy Regulatory 3 Commission but adjusted to remove the effect of any refund 4 paid under this subsection (e), and further adjusted to 5 include the annual amortization of any difference between the 6 consideration received by an affiliated interest of the 7 electric utility in the sale of an asset which had been sold 8 or transferred by the electric utility to the affiliated 9 interest subsequent to the effective date of this amendatory 10 Act of 1997 and the consideration for which such asset had 11 been sold or transferred to the affiliated interest, with 12 such difference to be amortized ratably from the date of the 13 sale by the affiliated interest to December 31, 2006, exceeds 14 the 2-year average of the Index for the same 2 years by 1.5 15 or more percentage points, the electric utility shall make 16 refunds to customers beginning the first billing day of April 17 in the following year in the manner described in paragraph 18 (3) of this subsection. For purposes of this subsection (e), 19 the "Index" shall be the sum of (A) the average for the 12 20 months ended September 30 of the monthly average yields of 21 30-year U.S. Treasury bonds published by the Board of 22 Governors of the Federal Reserve System in its weekly H.15 23 Statistical Release or successor publication for each year 24 1998 through 2004, and (B) (i) 4.00 percentage points for 25 each of the 12-month periods ending September 30, 1998 26 through September 30, 1999 or 8.00 percentage points if the 27 electric utility's average residential retail rate is less 28 than or equal to 90% of the average residential retail rate 29 for the "Midwest Utilities", as that term is defined in 30 subsection (b) of this Section, based on data reported on 31 Form 1 to the Federal Energy Regulatory Commission for 32 calendar year 1995, and the electric utility served between 33 150,000 and 250,000 retail customers on January 1, 1995, (ii) 34 7.00 percentage points for each of the 12-month periods SB2235 Enrolled -38- LRB9215298WHcsA 1 ending September 30, 2000 through September 30, 2004 if the 2 electric utility was providing service to at least 1,000,000 3 customers in this State on January 1, 1999, or 9.00 4 percentage points if the electric utility's average 5 residential retail rate is less than or equal to 90% of the 6 average residential retail rate for the "Midwest Utilities", 7 as that term is defined in subsection (b) of this Section, 8 based on data reported on Form 1 to the Federal Energy 9 Regulatory Commission for calendar year 1995 and the electric 10 utility served between 150,000 and 250,000 retail customers 11 in this State on January 1, 1995, (iii) 11.00 percentage 12 points for each of the 12-month periods ending September 30, 13 2000 through September 30, 2004, but only if the electric 14 utility's average residential retail rate is less than or 15 equal to 90% of the average residential retail rate for the 16 "Midwest Utilities", as that term is defined in subsection 17 (b) of this Section, based on data reported on Form 1 to the 18 Federal Energy Regulatory Commission for calendar year 1995, 19 the electric utility served between 150,000 and 250,000 20 retail customers in this State on January 1, 1995, and the 21 electric utility offers delivery services on or before June 22 1, 2000 to retail customers whose annual electric energy use 23 comprises 33% of the kilowatt hour sales to that group of 24 retail customers that are classified under Division D, Groups 25 20 through 39 of the Standard Industrial Classifications set 26 forth in the Standard Industrial Classification Manual 27 published by the United States Office of Management and 28 Budget, excluding the kilowatt hour sales to those customers 29 that are eligible for delivery services pursuant to Section 30 16-104(a)(1)(i), and offers delivery services to its 31 remaining retail customers classified under Division D, 32 Groups 20 through 39 on or before October 1, 2000, and, 33 provided further, that the electric utility commits not to 34 petition pursuant to Section 16-108(f) for entry of an order SB2235 Enrolled -39- LRB9215298WHcsA 1 by the Commission authorizing the electric utility to 2 implement transition charges for an additional period after 3 December 31, 2006, or (iv) 5.00 percentage points for each of 4 the 12-month periods ending September 30, 2000 through 5 September 30, 2004 for all other electric utilities or 7.00 6 percentage points for such utilities for each of the 12-month 7 periods ending September 30, 2000 through September 30, 2004 8 for any such utility that commits not to petition pursuant to 9 Section 16-108(f) for entry of an order by the Commission 10 authorizing the electric utility to implement transition 11 charges for an additional period after December 31, 2006. 12 (1) For purposes of this subsection (e), "excess 13 earnings" means the difference between (A) the 2-year 14 average of the electric utility's earned rate of return 15 on common equity, less (B) the 2-year average of the sum 16 of (i) the Index applicable to each of the 2 years and 17 (ii) 1.5 percentage points; provided, that "excess 18 earnings" shall never be less than zero. 19 (2) On or before March 31 of each year 2000 through 20 2005 each electric utility shall file a report with the 21 Commission showing its earned rate of return on common 22 equity, calculated in accordance with this subsection, 23 for the preceding calendar year and the average for the 24 preceding 2 calendar years. 25 (3) If an electric utility has excess earnings, 26 determined in accordance with paragraphs (1) and (2) of 27 this subsection, the refunds which the electric utility 28 shall pay to its customers beginning the first billing 29 day of April in the following year shall be calculated 30 and applied as follows: 31 (i) The electric utility's excess earnings 32 shall be multiplied by the average of the beginning 33 and ending balances of the electric utility's common 34 equity for the 2-year period in which excess SB2235 Enrolled -40- LRB9215298WHcsA 1 earnings occurred. 2 (ii) The result of the calculation in (i) 3 shall be multiplied by 0.50 and then divided by a 4 number equal to 1 minus the electric utility's 5 composite federal and State income tax rate. 6 (iii) The result of the calculation in (ii) 7 shall be divided by the sum of the electric 8 utility's projected total kilowatt-hour sales to 9 retail customers plus projected kilowatt-hours to be 10 delivered to delivery services customers over a one 11 year period beginning with the first billing date in 12 April in the succeeding year to determine a cents 13 per kilowatt-hour refund factor. 14 (iv) The cents per kilowatt-hour refund factor 15 calculated in (iii) shall be credited to the 16 electric utility's customers by applying the factor 17 on the customer's monthly bills to each 18 kilowatt-hour sold or delivered until the total 19 amount calculated in (ii) has been paid to 20 customers. 21 (f) During the mandatory transition period, an electric 22 utility may file revised tariffs reducing the price of any 23 tariffed service offered by the electric utility for all 24 customers taking that tariffed service, which shall be 25 effective 7 days after filing. 26 (g) During the mandatory transition period, an electric 27 utility may, without obtaining any approval of the Commission 28 other than that provided for in this subsection and 29 notwithstanding any other provision of this Act or any rule 30 or regulation of the Commission that would require such 31 approval: 32 (1) implement a reorganization, other than a merger 33 of 2 or more public utilities as defined in Section 3-105 34 or their holding companies; SB2235 Enrolled -41- LRB9215298WHcsA 1 (2) retire generating plants from service; 2 (3) sell, assign, lease or otherwise transfer 3 assets to an affiliated or unaffiliated entity and as 4 part of such transaction enter into service agreements, 5 power purchase agreements, or other agreements with the 6 transferee; provided, however, that the prices, terms and 7 conditions of any power purchase agreement must be 8 approved or allowed into effect by the Federal Energy 9 Regulatory Commission; or 10 (4) use any accelerated cost recovery method 11 including accelerated depreciation, accelerated 12 amortization or other capital recovery methods, or record 13 reductions to the original cost of its assets. 14 In order to implement a reorganization, retire generating 15 plants from service, or sell, assign, lease or otherwise 16 transfer assets pursuant to this Section, the electric 17 utility shall comply with subsections (c) and (d) of Section 18 16-128, if applicable, and subsection (k) of this Section, if 19 applicable, and provide the Commission with at least 30 days 20 notice of the proposed reorganization or transaction, which 21 notice shall include the following information: 22 (i) a complete statement of the entries that 23 the electric utility will make on its books and 24 records of account to implement the proposed 25 reorganization or transaction together with a 26 certification from an independent certified public 27 accountant that such entries are in accord with 28 generally accepted accounting principles and, if the 29 Commission has previously approved guidelines for 30 cost allocations between the utility and its 31 affiliates, a certification from the chief 32 accounting officer of the utility that such entries 33 are in accord with those cost allocation guidelines; 34 (ii) a description of how the electric utility SB2235 Enrolled -42- LRB9215298WHcsA 1 will use proceeds of any sale, assignment, lease or 2 transfer to retire debt or otherwise reduce or 3 recover the costs of services provided by such 4 electric utility; 5 (iii) a list of all federal approvals or 6 approvals required from departments and agencies of 7 this State, other than the Commission, that the 8 electric utility has or will obtain before 9 implementing the reorganization or transaction; 10 (iv) an irrevocable commitment by the electric 11 utility that it will not, as a result of the 12 transaction, impose any stranded cost charges that 13 it might otherwise be allowed to charge retail 14 customers under federal law or increase the 15 transition charges that it is otherwise entitled to 16 collect under this Article XVI; and 17 (v) if the electric utility proposes to sell, 18 assign, lease or otherwise transfer a generating 19 plant that brings the amount of net dependable 20 generating capacity transferred pursuant to this 21 subsection to an amount equal to or greater than 15% 22 of the electric utility's net dependable capacity as 23 of the effective date of this amendatory Act of 24 1997, and enters into a power purchase agreement 25 with the entity to which such generating plant is 26 sold, assigned, leased, or otherwise transferred, 27 the electric utility also agrees, if its fuel 28 adjustment clause has not already been eliminated, 29 to eliminate its fuel adjustment clause in 30 accordance with subsection (b) of Section 9-220 for 31 a period of time equal to the length of any such 32 power purchase agreement or successor agreement, or 33 until January 1, 2005, whichever is longer; if the 34 capacity of the generating plant so transferred and SB2235 Enrolled -43- LRB9215298WHcsA 1 related power purchase agreement does not result in 2 the elimination of the fuel adjustment clause under 3 this subsection, and the fuel adjustment clause has 4 not already been eliminated, the electric utility 5 shall agree that the costs associated with the 6 transferred plant that are included in the 7 calculation of the rate per kilowatt-hour to be 8 applied pursuant to the electric utility's fuel 9 adjustment clause during such period shall not 10 exceed the per kilowatt-hour cost associated with 11 such generating plant included in the electric 12 utility's fuel adjustment clause during the full 13 calendar year preceding the transfer, with such 14 limit to be adjusted each year thereafter by the 15 Gross Domestic Product Implicit Price Deflator. 16 (vi) In addition, if the electric utility 17 proposes to sell, assign, or lease, (A) either (1) 18 an amount of generating plant that brings the amount 19 of net dependable generating capacity transferred 20 pursuant to this subsection to an amount equal to or 21 greater than 15% of its net dependable capacity on 22 the effective date of this amendatory Act of 1997, 23 or (2) one or more generating plants with a total 24 net dependable capacity of 1100 megawatts, or (B) 25 transmission and distribution facilities that either 26 (1) bring the amount of transmission and 27 distribution facilities transferred pursuant to this 28 subsection to an amount equal to or greater than 15% 29 of the electric utility's total depreciated original 30 cost investment in such facilities, or (2) represent 31 an investment of $25,000,000 in terms of total 32 depreciated original cost, the electric utility 33 shall provide, in addition to the information listed 34 in subparagraphs (i) through (v), the following SB2235 Enrolled -44- LRB9215298WHcsA 1 information: (A) a description of how the electric 2 utility will meet its service obligations under this 3 Act in a safe and reliable manner and (B) the 4 electric utility's projected earned rate of return 5 on common equity, calculated in accordance with 6 subsection (d) of this Section, for each year from 7 the date of the notice through December 31, 2004 8 both with and without the proposed transaction. If 9 the Commission has not issued an order initiating a 10 hearing on the proposed transaction within 30 days 11 after the date the electric utility's notice is 12 filed, the transaction shall be deemed approved. 13 The Commission may, after notice and hearing, 14 prohibit the proposed transaction if it makes either 15 or both of the following findings: (1) that the 16 proposed transaction will render the electric 17 utility unable to provide its tariffed services in a 18 safe and reliable manner, or (2) that there is a 19 strong likelihood that consummation of the proposed 20 transaction will result in the electric utility 21 being entitled to request an increase in its base 22 rates during the mandatory transition period 23 pursuant to subsection (d) of this Section. Any 24 hearing initiated by the Commission into the 25 proposed transaction shall be completed, and the 26 Commission's final order approving or prohibiting 27 the proposed transaction shall be entered, within 90 28 days after the date the electric utility's notice 29 was filed. Provided, however, that a sale, 30 assignment, or lease of transmission facilities to 31 an independent system operator that meets the 32 requirements of Section 16-126 shall not be subject 33 to Commission approval under this Section. 34 In any proceeding conducted by the Commission SB2235 Enrolled -45- LRB9215298WHcsA 1 pursuant to this subparagraph (vi), intervention 2 shall be limited to parties with a direct interest 3 in the transaction which is the subject of the 4 hearing and any statutory consumer protection agency 5 as defined in subsection (d) of Section 9-102.1. 6 Notwithstanding the provisions of Section 10-113 of 7 this Act, any application seeking rehearing of an 8 order issued under this subparagraph (vi), whether 9 filed by the electric utility or by an intervening 10 party, shall be filed within 10 days after service 11 of the order. 12 The Commission shall not in any subsequent proceeding or 13 otherwise, review such a reorganization or other transaction 14 authorized by this Section, but shall retain the authority to 15 allocate costs as stated in Section 16-111(i). An entity to 16 which an electric utility sells, assigns, leases or transfers 17 assets pursuant to this subsection (g) shall not, as a result 18 of the transactions specified in this subsection (g), be 19 deemed a public utility as defined in Section 3-105. Nothing 20 in this subsection (g) shall change any requirement under the 21 jurisdiction of the Illinois Department of Nuclear Safety 22 including, but not limited to, the payment of fees. Nothing 23 in this subsection (g) shall exempt a utility from obtaining 24 a certificate pursuant to Section 8-406 of this Act for the 25 construction of a new electric generating facility. Nothing 26 in this subsection (g) is intended to exempt the transactions 27 hereunder from the operation of the federal or State 28 antitrust laws. Nothing in this subsection (g) shall require 29 an electric utility to use the procedures specified in this 30 subsection for any of the transactions specified herein. Any 31 other procedure available under this Act may, at the electric 32 utility's election, be used for any such transaction. 33 (h) During the mandatory transition period, the 34 Commission shall not establish or use any rates of SB2235 Enrolled -46- LRB9215298WHcsA 1 depreciation, which for purposes of this subsection shall 2 include amortization, for any electric utility other than 3 those established pursuant to subsection (c) of Section 5-104 4 of this Act or utilized pursuant to subsection (g) of this 5 Section. Provided, however, that in any proceeding to review 6 an electric utility's rates for tariffed services pursuant to 7 Section 9-201, 9-202, 9-250 or 16-111(d) of this Act, the 8 Commission may establish new rates of depreciation for the 9 electric utility in the same manner provided in subsection 10 (d) of Section 5-104 of this Act. An electric utility 11 implementing an accelerated cost recovery method including 12 accelerated depreciation, accelerated amortization or other 13 capital recovery methods, or recording reductions to the 14 original cost of its assets, pursuant to subsection (g) of 15 this Section, shall file a statement with the Commission 16 describing the accelerated cost recovery method to be 17 implemented or the reduction in the original cost of its 18 assets to be recorded. Upon the filing of such statement, 19 the accelerated cost recovery method or the reduction in the 20 original cost of assets shall be deemed to be approved by the 21 Commission as though an order had been entered by the 22 Commission. 23 (i) Subsequent to the mandatory transition period, the 24 Commission, in any proceeding to establish rates and charges 25 for tariffed services offered by an electric utility, shall 26 consider only (1) the then current or projected revenues, 27 costs, investments and cost of capital directly or indirectly 28 associated with the provision of such tariffed services; (2) 29 collection of transition charges in accordance with Sections 30 16-102 and 16-108 of this Act; (3) recovery of any employee 31 transition costs as described in Section 16-128 which the 32 electric utility is continuing to incur, including recovery 33 of any unamortized portion of such costs previously incurred 34 or committed, with such costs to be equitably allocated among SB2235 Enrolled -47- LRB9215298WHcsA 1 bundled services, delivery services, and contracts with 2 alternative retail electric suppliers; and (4) recovery of 3 the costs associated with the electric utility's compliance 4 with decommissioning funding requirements; and shall not 5 consider any other revenues, costs, investments or cost of 6 capital of either the electric utility or of any affiliate of 7 the electric utility that are not associated with the 8 provision of tariffed services. In setting rates for 9 tariffed services, the Commission shall equitably allocate 10 joint and common costs and investments between the electric 11 utility's competitive and tariffed services. In determining 12 the justness and reasonableness of the electric power and 13 energy component of an electric utility's rates for tariffed 14 services subsequent to the mandatory transition period and 15 prior to the time that the provision of such electric power 16 and energy is declared competitive, the Commission shall 17 consider the extent to which the electric utility's tariffed 18 rates for such component for each customer class exceed the 19 market value determined pursuant to Section 16-112, and, if 20 the electric power and energy component of such tariffed rate 21 exceeds the market value by more than 10% for any customer 22 class, may establish such electric power and energy component 23 at a rate equal to the market value plus 10%. In any such 24 case, the Commission may also elect to extend the provisions 25 of Section 16-111(e) for any period in which the electric 26 utility is collecting transition charges, using information 27 applicable to such period. 28 (j) During the mandatory transition period, an electric 29 utility may elect to transfer to a non-operating income 30 account under the Commission's Uniform System of Accounts 31 either or both of (i) an amount of unamortized investment tax 32 credit that is in addition to the ratable amount which is 33 credited to the electric utility's operating income account 34 for the year in accordance with Section 46(f)(2) of the SB2235 Enrolled -48- LRB9215298WHcsA 1 federal Internal Revenue Code of 1986, as in effect prior to 2 P.L. 101-508, or (ii) "excess tax reserves", as that term is 3 defined in Section 203(e)(2)(A) of the federal Tax Reform Act 4 of 1986, provided that (A) the amount transferred may not 5 exceed the amount of the electric utility's assets that were 6 created pursuant to Statement of Financial Accounting 7 Standards No. 71 which the electric utility has written off 8 during the mandatory transition period, and (B) the transfer 9 shall not be effective until approved by the Internal Revenue 10 Service. An electric utility electing to make such a 11 transfer shall file a statement with the Commission stating 12 the amount and timing of the transfer for which it intends to 13 request approval of the Internal Revenue Service, along with 14 a copy of its proposed request to the Internal Revenue 15 Service for a ruling. The Commission shall issue an order 16 within 14 days after the electric utility's filing approving, 17 subject to receipt of approval from the Internal Revenue 18 Service, the proposed transfer. 19 (k) If an electric utility is selling or transferring to 20 a single buyer 5 or more generating plants located in this 21 State with a total net dependable capacity of 5000 megawatts 22 or more pursuant to subsection (g) of this Section and has 23 obtained a sale price or consideration that exceeds 200% of 24 the book value of such plants, the electric utility must 25 provide to the Governor, the President of the Illinois 26 Senate, the Minority Leader of the Illinois Senate, the 27 Speaker of the Illinois House of Representatives, and the 28 Minority Leader of the Illinois House of Representatives no 29 later than 15 days after filing its notice under subsection 30 (g) of this Section or 5 days after the date on which this 31 subsection (k) becomes law, whichever is later, a written 32 commitment in which such electric utility agrees to expend $2 33 billion outside the corporate limits of any municipality with 34 1,000,000 or more inhabitants within such electric utility's SB2235 Enrolled -49- LRB9215298WHcsA 1 service area, over a 6-year period beginning with the 2 calendar year in which the notice is filed, on projects, 3 programs, and improvements within its service area relating 4 to transmission and distribution including, without 5 limitation, infrastructure expansion, repair and replacement, 6 capital investments, operations and maintenance, and 7 vegetation management. 8 (Source: P.A. 90-561, eff. 12-16-97; 90-563, eff. 12-16-97; 9 91-50, eff. 6-30-99.) 10 Section 99. Effective date. This Act takes effect upon 11 becoming law. SB2235 Enrolled -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