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92_SB2235eng SB2235 Engrossed 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 have access toreceiveessential levels of heat and 16 electric service regardless of economic circumstance; 17 (2) public utilities and other entities providing 18 such services are entitled to receive proper payment for 19 services actually rendered; 20 (3) declining Federal low income energy assistance 21 funding necessitates a State response to ensure the 22 continuity and the further development of energy 23 assistance and related policies and programs within 24 Illinois; and 25 (4) energy assistance policies and programs in 26 effect in Illinois during the past 3 years have benefited 27 all Illinois citizens, and should therefore be continued 28 with the modifications provided herein. 29 (b) Consistent with its findings, the General Assembly 30 declares that it is the policy of the State that: SB2235 Engrossed -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 assistensure thatcitizens to obtain 5haveaccess to affordable energy services; 6 (2) the ability of public utilities and other 7 entities to receive just compensation for providing 8 services should not be jeopardized by this policy; 9 (3) resources applied in achieving this policy 10 should be coordinated and efficiently utilized through 11 the integration of public programs and through the 12 targeting of assistance; and 13 (4) the State should utilize all appropriate and 14 available means to fund this program and, to the extent 15 possible, should identify and utilize sources of funding 16 which complement State tax revenues. 17 (Source: P.A. 86-127.) 18 (305 ILCS 20/4) (from Ch. 111 2/3, par. 1404) 19 Sec. 4. Energy Assistance Program. 20 (a) The Department of Commerce and Community Affairs is 21 hereby authorized to institute a program to promoteensure22 the availability and affordability of heating and electric 23 service to low income citizens. The Department shall 24 implement the program by rule promulgated pursuant to The 25 Illinois Administrative Procedure Act. The program shall be 26 consistent with the purposes and objectives of this Act and 27 with all other specific requirements provided herein. The 28 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 Engrossed -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 17 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 Engrossed -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; and 16 (13) one member designated by the Department to 17 represent independent energy providers. 18 (c) Designated and appointed members shall serve 2 year 19 terms and until their successors are appointed and qualified. 20 The designating organization shall notify the chairperson of 21 any changes or substitutions of a designee within 10 business 22 days of a change or substitution. Members shall serve without 23 compensation, but may receive reimbursement for actual costs 24 incurred in fulfilling their duties as members of the 25 Council. 26 (d) The Council shall have the following duties: 27 (1) to monitor the administration of this Act to 28 ensure effective, efficient, and coordinated program 29 development and implementation; 30 (2) to assist the Department in developing and 31 administering rules and regulations required to be 32 promulgated pursuant to this Act in a manner consistent 33 with the purpose and objectives of this Act; 34 (3) to facilitate and coordinate the collection and SB2235 Engrossed -5- LRB9215298WHcsA 1 exchange of all program data and other information needed 2 by the Department and others in fulfilling their duties 3 pursuant to this Act; 4 (4) to advise the Department on the proper level of 5 support required for effective administration of the Act; 6 (5) to provide a written opinion concerning any 7 regulation proposed pursuant to this Act, and to review 8 and comment on any energy assistance or related plan 9 required to be prepared by the Department; 10 (6) to advise the Department on the use of funds 11 collected pursuant to Section 11 of this Act, and on any 12 changes to existing low income energy assistance programs 13 to make effective use of such funds, so long as such uses 14 and changes are consistent with the requirements of the 15 Act.Policy Advisory Council to be comprised of:16(1) the following ex officio members or their17designees: the Director of Commerce and Community18Affairs who shall serve as Chair of the Committee, the19Director of Natural Resources, the Secretary of Human20Services, and the Chairman of the Illinois Commerce21Commission; and22(2) 9 persons who shall be appointed by the23Governor to serve 2 year terms and until their successors24are appointed and qualified, 3 of whom shall be persons25who represent low income households or organizations26which represent such households, 3 of whom shall be27representatives of public utilities or other entities28which provide winter energy services, and 3 of whom shall29be representatives of local agencies engaged by the30Department to assist in the administration of this Act.31(3) 6 persons who shall be appointed by the32Director of the Department of Commerce and Community33Affairs to serve 2 year terms and until their successors34are appointed and qualified, who shall be persons meetingSB2235 Engrossed -6- LRB9215298WHcsA 1such qualifications as may be required by the federal2government for the administration of the Weatherization3Assistance Program funded by the U.S. Department of4Energy and any such related energy assistance programs.5(4) Members shall serve without compensation, but6may receive reimbursement for actual costs incurred in7fulfilling their duties as members of the Council.8(b) The Policy Advisory Council shall have the following9duties:10(1) to monitor the administration of this Act to11ensure effective, efficient, and coordinated program12development and implementation;13(2) to assist the Department in developing and14administering rules and regulations required to be15promulgated pursuant to this Act in a manner consistent16with the purpose and objectives of this Act;17(3) to facilitate and coordinate the collection and18exchange of all program data and other information needed19by the Department and others in fulfilling their duties20pursuant to this Act;21(4) to advise the Department on the proper level of22support required for effective administration of the Act;23(5) to provide a written opinion concerning any24regulation proposed pursuant to this Act, and to review25and comment on any energy assistance or related plan26required to be prepared by the Department;27(6) on or before March 1 of each year beginning in281990, to prepare and submit a report to the Governor and29General Assembly which describes the activities of the30Department in the development and implementation of31energy assistance and related policies and programs,32which characterizes progress towards meeting the33objectives and requirements of this Act, and which34recommends any statutory changes which might be needed toSB2235 Engrossed -7- LRB9215298WHcsA 1further such progress. The report submitted in 19912shall include an analysis of and recommendations3regarding this Act's provisions concerning State payment4of pre-program arrearages; and5(7) to advise the Department on the use of funds6collected pursuant to Section 13 of this Act, and on any7changes to existing low-income energy assistance programs8to make effective use of such funds, so long as such uses9and changes are consistent with the requirements of10subsection (a) of Section 13 of this Act.11 (Source: P.A. 89-445, eff. 2-7-96; 89-507, eff. 7-1-97; 12 90-561, eff. 12-16-97.) 13 (305 ILCS 20/6) (from Ch. 111 2/3, par. 1406) 14 Sec. 6. Eligibility, Conditions of Participation, and 15 Energy Assistance. 16 (a) Any person who is a resident of the State of 17 Illinois and whose household income is not greater than an 18 amount determined annually by the Department, in consultation 19 with the Policy Advisory Council, may apply for assistance 20 pursuant to this Act in accordance with regulations 21 promulgated by the Department. In setting the annual 22 eligibility level, the Department shall consider the amount 23 of available funding and may not set a limit higher than 150% 24 of the federal nonfarm poverty level as established by the 25 federal Office of Management and Budget. 26 (b) Applicants who qualify for assistance pursuant to 27 subsection (a) of this Section shall, subject to 28 appropriation from the General Assembly and subject to 29 availability of funds to the Department, receive energy 30 assistance as provided by this Act. The Department, upon 31 receipt of monies authorized pursuant to this Act for energy 32 assistance, shall commit funds for each qualified applicant 33 in an amount determined by the Department. In determining SB2235 Engrossed -8- LRB9215298WHcsA 1 the amounts of assistance to be provided to or on behalf of a 2 qualified applicant, the Department shall ensure that the 3 highest amounts of assistance go to households with the 4 greatest energy costs in relation to household income. The 5 Department shall include factors such as energy costs, 6 household size, household income, and region of the State 7 when determining individual household benefits. In setting 8 assistance levels, the Department shall attempt to provide 9 assistance to approximately the same number of households who 10 participated in the 1991 Residential Energy Assistance 11 Partnership Program. Such assistance levels shall be 12 adjusted annually on the basis of funding availability and 13 energy costs. In promulgating rules for the administration 14 of this Section the Department shall assure that a minimum of 15 1/3 of funds available for benefits to eligible households 16 with the lowest incomesare made available to households who17are eligible for public assistanceand that elderly and 18 disabled households are offered a priorityone-month19 application period. 20 (c) If the applicant is not a customer of an energy 21 provider for winter energy services or an applicant for such 22 service, such applicant shall receive a direct energy 23 assistance payment in an amount established by the Department 24 for all such applicants under this Act; provided, however, 25 that such an applicant must have rental expenses for housing 26 greater than 30% of household income. 27 (d) If the applicant is a customer of an energy 28 provider, such applicant shall receive energy assistance in 29 an amount established by the Department for all such 30 applicants under this Act, such amount to be paid by the 31 Department to the energy provider supplying winter energy 32 service to such applicant. Such applicant shall: 33 (i) make all reasonable efforts to apply to any 34 other appropriate source of public energy assistance; and SB2235 Engrossed -9- LRB9215298WHcsA 1 (ii) sign a waiver permitting the Department to 2 receive income information from any public or private 3 agency providing income or energy assistance and from any 4 employer, whether public or private. 5 (e) Any qualified applicant pursuant to this Section may 6 receive or have paid on such applicant's behalf an emergency 7 assistance payment to enable such applicant to obtain access 8 to winter energy services. Any such payments shall be made 9 in accordance with regulations of the Department. 10 (f) The Department may, if sufficient funds are 11 available, provide additional benefits to certain qualified 12 applicants: 13 (i) for the reduction of past due amounts owed to 14 energy providers; and 15 (ii) to assist the household in responding to 16 excessively high summer temperatures or energy costs. 17 Households containing elderly members, children, a person 18 with a disability, or a person with a medical need for 19 conditioned air shall receive priority for receipt of 20 such benefits. 21 (Source: P.A. 91-936, eff. 1-10-01.) 22 (305 ILCS 20/7) (from Ch. 111 2/3, par. 1407) 23 Sec. 7. State Weatherization Plan and Program. 24 (a) The Department shall, after consultation with the 25 Policy Advisory Council, prepare and promulgate an annual 26 State Weatherization Plan beginning in the year this Act 27 becomes effective. To the extent practicable, such Plan 28 shall provide for targeting use of both State and federal 29 weatherization funds to the households of eligible applicants 30 pursuant to this Act whose ratios of energy costs to income 31 are the highest. The State Weatherization Plan shall include 32 but need not be limited to the following: 33 (1) a description of the demographic SB2235 Engrossed -10- LRB9215298WHcsA 1 characteristics and energy use patterns of people 2 eligible for assistance pursuant to this Act; 3 (2) the methodology used by the Department in 4 targeting weatherization funds; 5 (3) a description of anticipated activity and 6 results for the year covered by the Plan, including an 7 estimate of energy cost savings expected to be realized 8 by the weatherization program; and 9 (4) every third year, beginning in 2002, an 10 evaluation of results from the weatherization program in 11 the year preceding the plan year, including the effect of 12 State Weatherization Program investments on energy 13 consumption and cost in the population eligible for 14 assistance pursuant to this Act, and the effect of 15 targeted weatherization investments on the costs of the 16 energy assistance program authorized by this Act. 17 (b) The Department shall implement the State 18 Weatherization Plan by rule through a program which provides 19 targeted weatherization assistance to eligible applicants for 20 energy assistance pursuant to this Act. The Department may 21 enter into such contracts and other arrangements with local 22 agencies as may be necessary for the purpose of administering 23 the weatherization program. 24 (Source: P.A. 86-127; 87-14.) 25 (305 ILCS 20/8) (from Ch. 111 2/3, par. 1408) 26 Sec. 8. ProgramEvaluationReports. 27 (a) The Department of Natural Resources shall prepare 28 and submit to the Governor and the General Assembly reports 29 on September 30 bienniallyMarch 15 of each year, beginning 30 in 20031991, evaluating the effectiveness of the energy 31 assistance and weatherization policies authorized by this 32 Act. The first report shall cover such effects during the 33 first winter during which the program authorized by this Act, SB2235 Engrossed -11- LRB9215298WHcsA 1 is in operation, and successive reports shall cover effects 2 since the issuance of the preceding report. 3 (1)(b)Reports issued pursuant to this Section 4 shall be limited to, information concerning the effects 5 of the policies authorized by this Act on (1) the ability 6 of eligible applicants to obtain and maintain adequate 7 and affordable winter energy services and (2) changes in 8 the costs and prices of winter energy services for people 9 who do not receive energy assistance pursuant to this 10 Act. 11 (2)(c)The Department of Natural Resources shall 12 by September 30, 2002, in consultation with the Policy 13 Advisory Council, determine the kinds of numerical and 14 other information needed to conduct the evaluations 15 required by this Section, and shall advise the Policy 16 Advisory Council of such information needs in a timely 17 manner. The Department of Commerce and Community 18 Affairs, the Department of Human Services, and the 19 Illinois Commerce Commission shall each provide such 20 information as the Department of Natural Resources may 21 require to ensure that the evaluation reporting 22 requirement established by this Section can be met. 23 (b) On or before December 31, 2002, 2004, 2006, and 24 2007, the Department shall prepare a report for the General 25 Assembly on the expenditure of funds appropriated for the 26 programs authorized under this Act. 27 (c) On or before December 31 of each year in 2004, 2006, 28 and 2007, the Department shall, in consultation with the 29 Council, prepare and submit evaluation reports to the 30 Governor and the General Assembly outlining the effects of 31 the program designed under this Act on the following as it 32 relates to the propriety of continuing the program: 33 (1) the definition of an eligible low income 34 residential customer; SB2235 Engrossed -12- LRB9215298WHcsA 1 (2) access of low income residential customers to 2 essential energy services; 3 (3) past due amounts owed to utilities by low 4 income persons in Illinois; 5 (4) appropriate measures to encourage energy 6 conservation, efficiency, and responsibility among low 7 income residential customers; 8 (5) the activities of the Department in the 9 development and implementation of energy assistance and 10 related policies and programs, which characterizes 11 progress toward meeting the objectives and requirements 12 of this Act, and which recommends any statutory changes 13 which might be needed to further such progress. 14 (d) The Department shall by September 30, 2002 in 15 consultation with the Council determine the kinds of 16 numerical and other information needed to conduct the 17 evaluations required by this Section. 18 (e)(d)The Illinois Commerce Commission shall require 19 each public utility providing heating or electric service to 20 compile and submit any numerical and other information needed 21 by the Department of Natural Resources to meet its reporting 22 obligations. 23 (Source: P.A. 89-445, eff. 2-7-96; 89-507, eff. 7-1-97.) 24 (305 ILCS 20/13) 25 Sec. 13. Supplemental Low-Income Energy Assistance Fund. 26 (a) The Supplemental Low-Income Energy Assistance Fund 27 is hereby created as a special fund in the State Treasury. 28 The Supplemental Low-Income Energy Assistance Fund is 29 authorized to receive, by statutory deposit, the moneys 30 collected pursuant to this Section. Subject to 31 appropriation, the Department shall use moneys from the 32 Supplemental Low-Income Energy Assistance Fund for payments 33 to electric or gas public utilities, municipal electric or SB2235 Engrossed -13- LRB9215298WHcsA 1 gas utilities, and electric cooperatives on behalf of their 2 customers who are participants in the program authorized by 3 Section 4 of this Act, for the provision of weatherization 4 services and for administration of the Supplemental 5 Low-Income Energy Assistance Fund. The yearly expenditures 6 for weatherization may not exceed 10% of the amount collected 7 during the year pursuant to this Section.In determining8which customers will participate in the weatherization9component, the Department shall target weatherization for10those customers with the greatest energy burden, that is the11lowest income and greatest utility bills.The yearly 12 administrative expenses of the Supplemental Low-Income Energy 13 Assistance Fund may not exceed 10% of the amount collected 14 during that year pursuant to this Section. 15 (b) Notwithstanding the provisions of Section 16-111 of 16 the Public Utilities Act but subject to subsection (k) of 17 this Section, each public utility, electric cooperative, as 18 defined in Section 3.4 of the Electric Supplier Act, and 19 municipal utility, as referenced in Section 3-105 of the 20 Public Utilities Act, that is engaged in the delivery of 21 electricity or the distribution of natural gas within the 22 State of Illinois shall, effective January 1, 1998, assess 23 each of its customer accounts a monthly Energy Assistance 24 Charge for the Supplemental Low-Income Energy Assistance 25 Fund. The delivering public utility, municipal electric or 26 gas utility, or electric or gas cooperative for a 27 self-assessing purchaser remains subject to the collection of 28 the fee imposed by this Section. The monthly charge shall be 29 as follows: 30 (1) $0.40 per month on each account for residential 31 electric service; 32 (2) $0.40 per month on each account for residential 33 gas service; 34 (3) $4 per month on each account for SB2235 Engrossed -14- LRB9215298WHcsA 1 non-residential electric service which had less than 10 2 megawatts of peak demand during the previous calendar 3 year; 4 (4) $4 per month on each account for 5 non-residential gas service which had distributed to it 6 less than 4,000,000 therms of gas during the previous 7 calendar year; 8 (5) $300 per month on each account for 9 non-residential electric service which had 10 megawatts 10 or greater of peak demand during the previous calendar 11 year; and 12 (6) $300 per month on each account for 13 non-residential gas service which had 4,000,000 or more 14 therms of gas distributed to it during the previous 15 calendar year. 16 (c) For purposes of this Section: 17 (1) "residential electric service" means electric 18 utility service for household purposes delivered to a 19 dwelling of 2 or fewer units which is billed under a 20 residential rate, or electric utility service for 21 household purposes delivered to a dwelling unit or units 22 which is billed under a residential rate and is 23 registered by a separate meter for each dwelling unit; 24 (2) "residential gas service" means gas utility 25 service for household purposes distributed to a dwelling 26 of 2 or fewer units which is billed under a residential 27 rate, or gas utility service for household purposes 28 distributed to a dwelling unit or units which is billed 29 under a residential rate and is registered by a separate 30 meter for each dwelling unit; 31 (3) "non-residential electric service" means 32 electric utility service which is not residential 33 electric service; and 34 (4) "non-residential gas service" means gas utility SB2235 Engrossed -15- LRB9215298WHcsA 1 service which is not residential gas service. 2 (d) At least 45 days prior to the date on which it must 3 begin assessing Energy Assistance Charges, each public 4 utility engaged in the delivery of electricity or the 5 distribution of natural gas shall file with the Illinois 6 Commerce Commission tariffs incorporating the Energy 7 Assistance Charge in other charges stated in such tariffs. 8 (e) The Energy Assistance Charge assessed by electric 9 and gas public utilities shall be considered a charge for 10 public utility service. 11 (f) By the 20th day of the month following the month in 12 which the charges imposed by the Section were collected, each 13 public utility, municipal utility, and electric cooperative 14 shall remit to the Department of Revenue all moneys received 15 as payment of the Energy Assistance Charge on a return 16 prescribed and furnished by the Department of Revenue showing 17 such information as the Department of Revenue may reasonably 18 require. If a customer makes a partial payment, a public 19 utility, municipal utility, or electric cooperative may elect 20 either: (i) to apply such partial payments first to amounts 21 owed to the utility or cooperative for its services and then 22 to payment for the Energy Assistance Charge or (ii) to apply 23 such partial payments on a pro-rata basis between amounts 24 owed to the utility or cooperative for its services and to 25 payment for the Energy Assistance Charge. 26 (g) The Department of Revenue shall deposit into the 27 Supplemental Low-Income Energy Assistance Fund all moneys 28 remitted to it in accordance with subsection (f) of this 29 Section. 30 (h) (Blank).If as of June 30, 2002 the program31authorized by Section 4 of this Act has not been replaced by32a new energy assistance program which is in operation, then33the General Assembly shall review the program; provided34however, that after that date, any public utility, municipalSB2235 Engrossed -16- LRB9215298WHcsA 1utility, or electric cooperative shall continue to assess an2Energy Assistance Charge which was originally assessed on or3before June 30, 2002 and which remains unpaid.4 On or before December 31, 2002, the Department shall 5 prepare a report for the General Assembly on the expenditure 6 of funds appropriated from the Low-Income Energy Assistance 7 Block Grant Fund for the program authorized under Section 4 8 of this Act. 9 (i) The Department of Revenue may establish such rules 10 as it deems necessary to implement this Section. 11 (j) The Department of Commerce and Community Affairs may 12 establish such rules as it deems necessary to implement this 13 Section. 14 (k) The charges imposed by this Section shall only apply 15 to customers of municipal electric or gas utilities and 16 electric or gas cooperatives if the municipal electric or gas 17 utility or electric or gas cooperative makes an affirmative 18 decision to impose the charge. If a municipal electric or 19 gas utility or an electric cooperative makes an affirmative 20 decision to impose the charge provided by this Section, the 21 municipal electric or gas utility or electric cooperative 22 shall inform the Department of Revenue in writing of such 23 decision when it begins to impose the charge. If a municipal 24 electric or gas utility or electric or gas cooperative does 25 not assess this charge, the Department may not use funds from 26 the Supplemental Low-Income Energy Assistance Fund to provide 27 benefits to its customers under the program authorized by 28 Section 4 of this Act. 29 In its use of federal funds under this Act, the 30 Department may not cause a disproportionate share of those 31 federal funds to benefit customers of systems which do not 32 assess the charge provided by this Section. 33 This Section is repealed effective December 31, 2007 34 unless renewed by action of the General Assembly. The SB2235 Engrossed -17- LRB9215298WHcsA 1 General Assembly shall consider the results of the 2 evaluations described in Section 8 in its deliberations. 3 (Source: P.A. 90-561, eff. 12-16-97; 90-624, eff. 7-10-98.) 4 (305 ILCS 20/7.1 rep.) 5 (305 ILCS 20/9 rep.) 6 (305 ILCS 20/12 rep.) 7 (305 ILCS 20/14 rep.) 8 Section 10. The Energy Assistance Act of 1989 is amended 9 by repealing Sections 7.1, 9, 12, and 14. 10 Section 15. The Renewable Energy, Energy Efficiency, and 11 Coal Resources Development Law of 1997 is amended by changing 12 Section 6-5 as follows: 13 (20 ILCS 687/6-5) 14 (Section scheduled to be repealed on December 16, 2007) 15 Sec. 6-5. Renewable Energy Resources and Coal Technology 16 Development Assistance Charge. 17 (a) Notwithstanding the provisions of Section 16-111 of 18 the Public Utilities Act but subject to subsection (e) 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 Renewable Energy 26 Resources and Coal Technology Development Assistance Charge. 27 The delivering public utility, municipal electric or gas 28 utility, or electric or gas cooperative for a self-assessing 29 purchaser remains subject to the collection of the fee 30 imposed by this Section. The monthly charge shall be as 31 follows: SB2235 Engrossed -18- LRB9215298WHcsA 1 (1) $0.05 per month on each account for residential 2 electric service as defined in Section 13 of the Energy 3 Assistance Actof 1989; 4 (2) $0.05 per month on each account for residential 5 gas service as defined in Section 13 of the Energy 6 Assistance Actof 1989; 7 (3) $0.50 per month on each account for 8 nonresidential electric service, as defined in Section 13 9 of the Energy Assistance Actof 1989, which had less than 10 10 megawatts of peak demand during the previous calendar 11 year; 12 (4) $0.50 per month on each account for 13 nonresidential gas service, as defined in Section 13 of 14 the Energy Assistance Actof 1989, which had distributed 15 to it less than 4,000,000 therms of gas during the 16 previous calendar year; 17 (5) $37.50 per month on each account for 18 nonresidential electric service, as defined in Section 13 19 of the Energy Assistance Actof 1989, which had 10 20 megawatts or greater of peak demand during the previous 21 calendar year; and 22 (6) $37.50 per month on each account for 23 nonresidential gas service, as defined in Section 13 of 24 the Energy Assistance Actof 1989, which had 4,000,000 or 25 more therms of gas distributed to it during the previous 26 calendar year. 27 (b) The Renewable Energy Resources and Coal Technology 28 Development Assistance Charge assessed by electric and gas 29 public utilities shall be considered a charge for public 30 utility service. 31 (c) Fifty percent of the moneys collected pursuant to 32 this Section shall be deposited in the Renewable Energy 33 Resources Trust Fund by the Department of Revenue. The 34 remaining 50 percent of the moneys collected pursuant to this SB2235 Engrossed -19- LRB9215298WHcsA 1 Section shall be deposited in the Coal Technology Development 2 Assistance Fund by the Department of Revenue for use under 3 the Illinois Coal Technology Development Assistance Act. 4 (d) By the 20th day of the month following the month in 5 which the charges imposed by this Section were collected, 6 each utility and alternative retail electric supplier 7 collecting charges pursuant to this Section shall remit to 8 the Department of Revenue for deposit in the Renewable Energy 9 Resources Trust Fund and the Coal Technology Development 10 Assistance Fund all moneys received as payment of the charge 11 provided for in this Section on a return prescribed and 12 furnished by the Department of Revenue showing such 13 information as the Department of Revenue may reasonably 14 require. 15 (e) The charges imposed by this Section shall only apply 16 to customers of municipal electric or gas utilities and 17 electric or gas cooperatives if the municipal electric or gas 18 utility or electric or gas cooperative makes an affirmative 19 decision to impose the charge. If a municipal electric or gas 20 utility or an electric or gas cooperative makes an 21 affirmative decision to impose the charge provided by this 22 Section, the municipal electric or gas utility or electric or 23 gas cooperative shall inform the Department of Revenue in 24 writing of such decision when it begins to impose the charge. 25 If a municipal electric or gas utility or electric or gas 26 cooperative does not assess this charge, its customers shall 27 not be eligible for the Renewable Energy Resources Program. 28 (f) The Department of Revenue may establish such rules 29 as it deems necessary to implement this Section. 30 (Source: P.A. 90-561, eff. 12-16-97; 90-624, eff. 7-10-98.) 31 Section 20. The Public Utilities Act is amended by 32 changing Sections 8-207, 16-108, and 16-111 as follows: SB2235 Engrossed -20- LRB9215298WHcsA 1 (220 ILCS 5/8-207) (from Ch. 111 2/3, par. 8-207) 2 Sec. 8-207. Any former residential customer whose gas or 3 electric service was used to provide or control the primary 4 source of space heating in the dwelling and whose service is 5 disconnected for nonpayment of a bill or a deposit from 6 December 1 of the prior winter's heating season through April 7 1 of the current heating season shall be eligible for 8 reconnection and a deferred payment arrangement under the 9 provisions of this Section, subject to the following 10 limitations: 11 A utility shall not be required to reconnect service to, 12 and enter into a deferred payment arrangement with, a former 13 customer under the provisions of this Section (1) except 14 between November 1 and April 1 of the current heating season 15 for former customers who do not have applications pending for 16 the program described in Section 6 of the Energy Assistance 17 Actof 1989, and except between October 1 and April 1 of the 18 current heating season for all former customers who do have 19 applications pending for the program described in Section 6 20 of the Energy Assistance Actof 1989and who provide proof of 21 application to the utility, (2) in 2 consecutive years, (3) 22 unless that former customer has paid at least 33 1/3% of the 23 amount billed for utility service rendered by that utility 24 subsequent to December 1 of the prior year, or (4) in any 25 instance where the utility can show there has been tampering 26 with the utility's wires, pipes, meters (including locking 27 devices), or other service equipment and further shows that 28 the former customer enjoyed the benefit of utility service 29 obtained in the aforesaid manner. 30 The terms and conditions of any deferred payment 31 arrangements established by the utility and a former customer 32 shall take into consideration the following factors, based 33 upon information available from current utility records or 34 provided by the former customer: SB2235 Engrossed -21- LRB9215298WHcsA 1 (1) the amount past due; 2 (2) the former customer's ability to pay; 3 (3) the former customer's payment history; 4 (4) the reasons for the accumulation of the past 5 due amounts; and 6 (5) any other relevant factors relating to the 7 former customer's circumstances. 8 After the former customer's eligibility has been 9 established in accordance with the first paragraph of this 10 Section and, upon the establishment of a deferred payment 11 agreement, the former customer shall pay 1/3 of the amount 12 past due (including reconnecting charge, if any) and 1/3 of 13 any deposit required by the utility. 14 Upon the payment of 1/3 of the amount past due and 1/3 of 15 any deposit required by the utility, the former customer's 16 service shall be reconnected as soon as possible. The 17 company and the former customer shall agree to a payment 18 schedule for the remaining balances which will reasonably 19 allow the former customer to make the payments on the 20 remainder of the deposit and the past due balance while 21 paying current bills during the winter heating season. 22 However, the utility is not obliged to make payment 23 arrangements extending beyond the following November. The 24 utility shall allow the former customer a minimum of 4 months 25 in which to retire the past due balance and 3 months in which 26 to pay the remainder of the deposit. The former customer 27 shall also be informed that payment on the amounts past due 28 and the deposit, if any, plus the current bills must be paid 29 by the due date or the customer may face termination of 30 service pursuant to this Section and Section 8-206. 31 The Commission shall develop rules to govern the 32 reconnection of a former customer who demonstrates a 33 financial inability to meet the requirement of 1/3 of the 34 amount past due and 1/3 of any deposit requested by the SB2235 Engrossed -22- LRB9215298WHcsA 1 utility. The Commission's rules shall establish a means by 2 which the former customer's utility service may be 3 reconnected through the payment of a reasonable amount and 4 upon entering into a deferred payment agreement. 5 Any payment agreement made shall be in writing, with a 6 copy provided to the former customer. The renegotiation and 7 reinstatement of a customer and the establishment of a budget 8 payment plan shall be pursuant to rules established by the 9 Commission. 10 Not later than September 15 of each year, every gas and 11 electric utility shall conduct a survey of all former 12 residential customers whose gas or electric service was used 13 to provide or control the primary source of space heating in 14 the dwelling and whose gas or electric service was terminated 15 for nonpayment of a bill or deposit from December 1 of the 16 previous year to September 15 of that year and where service 17 at that premises has not been restored. Not later than 18 October 1 of each year the utility shall notify each of these 19 former customers that the gas or electric service will be 20 restored by the company for the coming heating season if the 21 former customer contacts the utility and makes arrangements 22 with the utility for reconnection of service under the 23 conditions set forth in this Section. A utility shall notify 24 the former customer or an adult member of the household by 25 personal visit, telephone contact or mailing of a letter by 26 first class mail to the last known address of that former 27 customer. The utility shall keep records which would 28 indicate the date, form and the results of such contact. 29 Each gas and electric utility which has former customers 30 affected by this Section shall file reports with the 31 Commission providing such information as the Commission may 32 deem appropriate. The Commission shall notify each gas and 33 electric utility prior to August 1 of each year concerning 34 the information which is to be included in the report for SB2235 Engrossed -23- LRB9215298WHcsA 1 that year. 2 In no event shall any actions taken by a utility in 3 compliance with this Section be deemed to abrogate or in any 4 way interfere with the utility's rights to pursue the normal 5 collection processes otherwise available to it. 6 The Commission shall promulgate rules to implement this 7 Section. 8 (Source: P.A. 86-782; 87-469.) 9 (220 ILCS 5/16-108) 10 Sec. 16-108. Recovery of costs associated with the 11 provision of delivery services. 12 (a) An electric utility shall file a delivery services 13 tariff with the Commission at least 210 days prior to the 14 date that it is required to begin offering such services 15 pursuant to this Act. An electric utility shall provide the 16 components of delivery services that are subject to the 17 jurisdiction of the Federal Energy Regulatory Commission at 18 the same prices, terms and conditions set forth in its 19 applicable tariff as approved or allowed into effect by that 20 Commission. The Commission shall otherwise have the authority 21 pursuant to Article IX to review, approve, and modify the 22 prices, terms and conditions of those components of delivery 23 services not subject to the jurisdiction of the Federal 24 Energy Regulatory Commission, including the authority to 25 determine the extent to which such delivery services should 26 be offered on an unbundled basis. In making any such 27 determination the Commission shall consider, at a minimum, 28 the effect of additional unbundling on (i) the objective of 29 just and reasonable rates, (ii) electric utility employees, 30 and (iii) the development of competitive markets for electric 31 energy services in Illinois. 32 (b) The Commission shall enter an order approving, or 33 approving as modified, the delivery services tariff no later SB2235 Engrossed -24- LRB9215298WHcsA 1 than 30 days prior to the date on which the electric utility 2 must commence offering such services. The Commission may 3 subsequently modify such tariff pursuant to this Act. 4 (c) The electric utility's tariffs shall define the 5 classes of its customers for purposes of delivery services 6 charges. Delivery services shall be priced and made 7 available to all retail customers electing delivery services 8 in each such class on a nondiscriminatory basis regardless of 9 whether the retail customer chooses the electric utility, an 10 affiliate of the electric utility, or another entity as its 11 supplier of electric power and energy. Charges for delivery 12 services shall be cost based, and shall allow the electric 13 utility to recover the costs of providing delivery services 14 through its charges to its delivery service customers that 15 use the facilities and services associated with such costs. 16 Such costs shall include the costs of owning, operating and 17 maintaining transmission and distribution facilities. The 18 Commission shall also be authorized to consider whether, and 19 if so to what extent, the following costs are appropriately 20 included in the electric utility's delivery services rates: 21 (i) the costs of that portion of generation facilities used 22 for the production and absorption of reactive power in order 23 that retail customers located in the electric utility's 24 service area can receive electric power and energy from 25 suppliers other than the electric utility, and (ii) the costs 26 associated with the use and redispatch of generation 27 facilities to mitigate constraints on the transmission or 28 distribution system in order that retail customers located in 29 the electric utility's service area can receive electric 30 power and energy from suppliers other than the electric 31 utility. Nothing in this subsection shall be construed as 32 directing the Commission to allocate any of the costs 33 described in (i) or (ii) that are found to be appropriately 34 included in the electric utility's delivery services rates to SB2235 Engrossed -25- LRB9215298WHcsA 1 any particular customer group or geographic area in setting 2 delivery services rates. 3 (d) The Commission shall establish charges, terms and 4 conditions for delivery services that are just and reasonable 5 and shall take into account customer impacts when 6 establishing such charges. In establishing charges, terms and 7 conditions for delivery services, the Commission shall take 8 into account voltage level differences. A retail customer 9 shall have the option to request to purchase electric service 10 at any delivery service voltage reasonably and technically 11 feasible from the electric facilities serving that customer's 12 premises provided that there are no significant adverse 13 impacts upon system reliability or system efficiency. A 14 retail customer shall also have the option to request to 15 purchase electric service at any point of delivery that is 16 reasonably and technically feasible provided that there are 17 no significant adverse impacts on system reliability or 18 efficiency. Such requests shall not be unreasonably denied. 19 (e) Electric utilities shall recover the costs of 20 installing, operating or maintaining facilities for the 21 particular benefit of one or more delivery services 22 customers, including without limitation any costs incurred in 23 complying with a customer's request to be served at a 24 different voltage level, directly from the retail customer or 25 customers for whose benefit the costs were incurred, to the 26 extent such costs are not recovered through the charges 27 referred to in subsections (c) and (d) of this Section. 28 (f) An electric utility shall be entitled but not 29 required to implement transition charges in conjunction with 30 the offering of delivery services pursuant to Section 16-104. 31 If an electric utility implements transition charges, it 32 shall implement such charges for all delivery services 33 customers and for all customers described in subsection (h), 34 but shall not implement transition charges for power and SB2235 Engrossed -26- LRB9215298WHcsA 1 energy that a retail customer takes from cogeneration or 2 self-generation facilities located on that retail customer's 3 premises, if such facilities meet the following criteria: 4 (i) the cogeneration or self-generation facilities 5 serve a single retail customer and are located on that 6 retail customer's premises (for purposes of this 7 subparagraph and subparagraph (ii), an industrial or 8 manufacturing retail customer and a third party 9 contractor that is served by such industrial or 10 manufacturing customer through such retail customer's own 11 electrical distribution facilities under the 12 circumstances described in subsection (vi) of the 13 definition of "alternative retail electric supplier" set 14 forth in Section 16-102, shall be considered a single 15 retail customer); 16 (ii) the cogeneration or self-generation facilities 17 either (A) are sized pursuant to generally accepted 18 engineering standards for the retail customer's 19 electrical load at that premises (taking into account 20 standby or other reliability considerations related to 21 that retail customer's operations at that site) or (B) if 22 the facility is a cogeneration facility located on the 23 retail customer's premises, the retail customer is the 24 thermal host for that facility and the facility has been 25 designed to meet that retail customer's thermal energy 26 requirements resulting in electrical output beyond that 27 retail customer's electrical demand at that premises, 28 comply with the operating and efficiency standards 29 applicable to "qualifying facilities" specified in title 30 18 Code of Federal Regulations Section 292.205 as in 31 effect on the effective date of this amendatory Act of 32 1999; 33 (iii) the retail customer on whose premises the 34 facilities are located either has an exclusive right to SB2235 Engrossed -27- LRB9215298WHcsA 1 receive, and corresponding obligation to pay for, all of 2 the electrical capacity of the facility, or in the case 3 of a cogeneration facility that has been designed to meet 4 the retail customer's thermal energy requirements at that 5 premises, an identified amount of the electrical capacity 6 of the facility, over a minimum 5-year period; and 7 (iv) if the cogeneration facility is sized for the 8 retail customer's thermal load at that premises but 9 exceeds the electrical load, any sales of excess power or 10 energy are made only at wholesale, are subject to the 11 jurisdiction of the Federal Energy Regulatory Commission, 12 and are not for the purpose of circumventing the 13 provisions of this subsection (f). 14 If a generation facility located at a retail customer's 15 premises does not meet the above criteria, an electric 16 utility implementing transition charges shall implement a 17 transition charge until December 31, 2006 for any power and 18 energy taken by such retail customer from such facility as if 19 such power and energy had been delivered by the electric 20 utility. Provided, however, that an industrial retail 21 customer that is taking power from a generation facility that 22 does not meet the above criteria but that is located on such 23 customer's premises will not be subject to a transition 24 charge for the power and energy taken by such retail customer 25 from such generation facility if the facility does not serve 26 any other retail customer and either was installed on behalf 27 of the customer and for its own use prior to January 1, 1997, 28 or is both predominantly fueled by byproducts of such 29 customer's manufacturing process at such premises and sells 30 or offers an average of 300 megawatts or more of electricity 31 produced from such generation facility into the wholesale 32 market. Such charges shall be calculated as provided in 33 Section 16-102, and shall be collected on each kilowatt-hour 34 delivered under a delivery services tariff to a retail SB2235 Engrossed -28- LRB9215298WHcsA 1 customer from the date the customer first takes delivery 2 services until December 31, 2006 except as provided in 3 subsection (h) of this Section. Provided, however, that an 4 electric utility, other than an electric utility providing 5 service to at least 1,000,000 customers in this State on 6 January 1, 1999, shall be entitled to petition for entry of 7 an order by the Commission authorizing the electric utility 8 to implement transition charges for an additional period 9 ending no later than December 31, 2008. The electric utility 10 shall file its petition with supporting evidence no earlier 11 than 16 months, and no later than 12 months, prior to 12 December 31, 2006. The Commission shall hold a hearing on 13 the electric utility's petition and shall enter its order no 14 later than 8 months after the petition is filed. The 15 Commission shall determine whether and to what extent the 16 electric utility shall be authorized to implement transition 17 charges for an additional period. The Commission may 18 authorize the electric utility to implement transition 19 charges for some or all of the additional period, and shall 20 determine the mitigation factors to be used in implementing 21 such transition charges; provided, that the Commission shall 22 not authorize mitigation factors less than 110% of those in 23 effect during the 12 months ended December 31, 2006. In 24 making its determination, the Commission shall consider the 25 following factors: the necessity to implement transition 26 charges for an additional period in order to maintain the 27 financial integrity of the electric utility; the prudence of 28 the electric utility's actions in reducing its costs since 29 the effective date of this amendatory Act of 1997; the 30 ability of the electric utility to provide safe, adequate and 31 reliable service to retail customers in its service area; and 32 the impact on competition of allowing the electric utility to 33 implement transition charges for the additional period. 34 (g) The electric utility shall file tariffs that SB2235 Engrossed -29- LRB9215298WHcsA 1 establish the transition charges to be paid by each class of 2 customers to the electric utility in conjunction with the 3 provision of delivery services. The electric utility's 4 tariffs shall define the classes of its customers for 5 purposes of calculating transition charges. The electric 6 utility's tariffs shall provide for the calculation of 7 transition charges on a customer-specific basis for any 8 retail customer whose average monthly maximum electrical 9 demand on the electric utility's system during the 6 months 10 with the customer's highest monthly maximum electrical 11 demands equals or exceeds 3.0 megawatts for electric 12 utilities having more than 1,000,000 customers, and for other 13 electric utilities for any customer that has an average 14 monthly maximum electrical demand on the electric utility's 15 system of one megawatt or more, and (A) for which there 16 exists data on the customer's usage during the 3 years 17 preceding the date that the customer became eligible to take 18 delivery services, or (B) for which there does not exist data 19 on the customer's usage during the 3 years preceding the date 20 that the customer became eligible to take delivery services, 21 if in the electric utility's reasonable judgment there exists 22 comparable usage information or a sufficient basis to develop 23 such information, and further provided that the electric 24 utility can require customers for which an individual 25 calculation is made to sign contracts that set forth the 26 transition charges to be paid by the customer to the electric 27 utility pursuant to the tariff. 28 (h) An electric utility shall also be entitled to file 29 tariffs that allow it to collect transition charges from 30 retail customers in the electric utility's service area that 31 do not take delivery services but that take electric power or 32 energy from an alternative retail electric supplier or from 33 an electric utility other than the electric utility in whose 34 service area the customer is located. Such charges shall be SB2235 Engrossed -30- LRB9215298WHcsA 1 calculated, in accordance with the definition of transition 2 charges in Section 16-102, for the period of time that the 3 customer would be obligated to pay transition charges if it 4 were taking delivery services, except that no deduction for 5 delivery services revenues shall be made in such calculation, 6 and usage data from the customer's class shall be used where 7 historical usage data is not available for the individual 8 customer. The customer shall be obligated to pay such 9 charges on a lump sum basis on or before the date on which 10 the customer commences to take service from the alternative 11 retail electric supplier or other electric utility, provided, 12 that the electric utility in whose service area the customer 13 is located shall offer the customer the option of signing a 14 contract pursuant to which the customer pays such charges 15 ratably over the period in which the charges would otherwise 16 have applied. 17 (i) An electric utility shall be entitled to add to the 18 bills of delivery services customers charges pursuant to 19 Sections 9-221, 9-222 (except as provided in Section 20 9-222.1), and Section 16-114 of this Act, Section 5-5 of the 21 Electricity Infrastructure Maintenance Fee Law, Section 6-5 22 of the Renewable Energy, Energy Efficiency, and Coal 23 Resources Development Law of 1997, and Section 13 of the 24 Energy Assistance Actof 1989. 25 (j) If a retail customer that obtains electric power and 26 energy from cogeneration or self-generation facilities 27 installed for its own use on or before January 1, 1997, 28 subsequently takes service from an alternative retail 29 electric supplier or an electric utility other than the 30 electric utility in whose service area the customer is 31 located for any portion of the customer's electric power and 32 energy requirements formerly obtained from those facilities 33 (including that amount purchased from the utility in lieu of 34 such generation and not as standby power purchases, under a SB2235 Engrossed -31- LRB9215298WHcsA 1 cogeneration displacement tariff in effect as of the 2 effective date of this amendatory Act of 1997), the 3 transition charges otherwise applicable pursuant to 4 subsections (f), (g), or (h) of this Section shall not be 5 applicable in any year to that portion of the customer's 6 electric power and energy requirements formerly obtained from 7 those facilities, provided, that for purposes of this 8 subsection (j), such portion shall not exceed the average 9 number of kilowatt-hours per year obtained from the 10 cogeneration or self-generation facilities during the 3 years 11 prior to the date on which the customer became eligible for 12 delivery services, except as provided in subsection (f) of 13 Section 16-110. 14 (Source: P.A. 90-561, eff. 12-16-97; 91-50, eff. 6-30-99.) 15 (220 ILCS 5/16-111) 16 Sec. 16-111. Rates and restructuring transactions during 17 mandatory transition period. 18 (a) During the mandatory transition period, 19 notwithstanding any provision of Article IX of this Act, and 20 except as provided in subsections (b), (d), (e), and (f) of 21 this Section, the Commission shall not (i) initiate, 22 authorize or order any change by way of increase (other than 23 in connection with a request for rate increase which was 24 filed after September 1, 1997 but prior to October 15, 1997, 25 by an electric utility serving less than 12,500 customers in 26 this State), (ii) initiate or, unless requested by the 27 electric utility, authorize or order any change by way of 28 decrease, restructuring or unbundling (except as provided in 29 Section 16-109A), in the rates of any electric utility that 30 were in effect on October 1, 1996, or (iii) in any order 31 approving any application for a merger pursuant to Section 32 7-204 that was pending as of May 16, 1997, impose any 33 condition requiring any filing for an increase, decrease, or SB2235 Engrossed -32- LRB9215298WHcsA 1 change in, or other review of, an electric utility's rates or 2 enforce any such condition of any such order; provided, 3 however, that this subsection shall not prohibit the 4 Commission from: 5 (1) approving the application of an electric 6 utility to implement an alternative to rate of return 7 regulation or a regulatory mechanism that rewards or 8 penalizes the electric utility through adjustment of 9 rates based on utility performance, pursuant to Section 10 9-244; 11 (2) authorizing an electric utility to eliminate 12 its fuel adjustment clause and adjust its base rate 13 tariffs in accordance with subsection (b), (d), or (f) of 14 Section 9-220 of this Act, to fix its fuel adjustment 15 factor in accordance with subsection (c) of Section 9-220 16 of this Act, or to eliminate its fuel adjustment clause 17 in accordance with subsection (e) of Section 9-220 of 18 this Act; 19 (3) ordering into effect tariffs for delivery 20 services and transition charges in accordance with 21 Sections 16-104 and 16-108, for real-time pricing in 22 accordance with Section 16-107, or the options required 23 by Section 16-110 and subsection (n) of 16-112, allowing 24 a billing experiment in accordance with Section 16-106, 25 or modifying delivery services tariffs in accordance with 26 Section 16-109; or 27 (4) ordering or allowing into effect any tariff to 28 recover charges pursuant to Sections 9-201.5, 9-220.1, 29 9-221, 9-222 (except as provided in Section 9-222.1), 30 16-108, and 16-114 of this Act, Section 5-5 of the 31 Electricity Infrastructure Maintenance Fee Law, Section 32 6-5 of the Renewable Energy, Energy Efficiency, and Coal 33 Resources Development Law of 1997, and Section 13 of the 34 Energy Assistance Actof 1989. SB2235 Engrossed -33- LRB9215298WHcsA 1 (b) Notwithstanding the provisions of subsection (a), 2 each Illinois electric utility serving more than 12,500 3 customers in Illinois shall file tariffs (i) reducing, 4 effective August 1, 1998, each component of its base rates to 5 residential retail customers by 15% from the base rates in 6 effect immediately prior to January 1, 1998 and (ii) if the 7 public utility provides electric service to (A) more than 8 500,000 customers but less than 1,000,000 customers in this 9 State on January 1, 1999, reducing, effective May 1, 2002, 10 each component of its base rates to residential retail 11 customers by an additional 5% from the base rates in effect 12 immediately prior to January 1, 1998, or (B) at least 13 1,000,000 customers in this State on January 1, 1999, 14 reducing, effective October 1, 2001, each component of its 15 base rates to residential retail customers by an additional 16 5% from the base rates in effect immediately prior to January 17 1, 1998. Provided, however, that (A) if an electric utility's 18 average residential retail rate is less than or equal to the 19 average residential retail rate for a group of Midwest 20 Utilities (consisting of all investor-owned electric 21 utilities with annual system peaks in excess of 1000 22 megawatts in the States of Illinois, Indiana, Iowa, Kentucky, 23 Michigan, Missouri, Ohio, and Wisconsin), based on data 24 reported on Form 1 to the Federal Energy Regulatory 25 Commission for calendar year 1995, then it shall only be 26 required to file tariffs (i) reducing, effective August 1, 27 1998, each component of its base rates to residential retail 28 customers by 5% from the base rates in effect immediately 29 prior to January 1, 1998, (ii) reducing, effective October 1, 30 2000, each component of its base rates to residential retail 31 customers by the lesser of 5% of the base rates in effect 32 immediately prior to January 1, 1998 or the percentage by 33 which the electric utility's average residential retail rate 34 exceeds the average residential retail rate of the Midwest SB2235 Engrossed -34- LRB9215298WHcsA 1 Utilities, based on data reported on Form 1 to the Federal 2 Energy Regulatory Commission for calendar year 1999, and 3 (iii) reducing, effective October 1, 2002, each component of 4 its base rates to residential retail customers by an 5 additional amount equal to the lesser of 5% of the base rates 6 in effect immediately prior to January 1, 1998 or the 7 percentage by which the electric utility's average 8 residential retail rate exceeds the average residential 9 retail rate of the Midwest Utilities, based on data reported 10 on Form 1 to the Federal Energy Regulatory Commission for 11 calendar year 2001; and (B) if the average residential retail 12 rate of an electric utility serving between 150,000 and 13 250,000 retail customers in this State on January 1, 1995 is 14 less than or equal to 90% of the average residential retail 15 rate for the Midwest Utilities, based on data reported on 16 Form 1 to the Federal Energy Regulatory Commission for 17 calendar year 1995, then it shall only be required to file 18 tariffs (i) reducing, effective August 1, 1998, each 19 component of its base rates to residential retail customers 20 by 2% from the base rates in effect immediately prior to 21 January 1, 1998; (ii) reducing, effective October 1, 2000, 22 each component of its base rates to residential retail 23 customers by 2% from the base rate in effect immediately 24 prior to January 1, 1998; and (iii) reducing, effective 25 October 1, 2002, each component of its base rates to 26 residential retail customers by 1% from the base rates in 27 effect immediately prior to January 1, 1998. Provided, 28 further, that any electric utility for which a decrease in 29 base rates has been or is placed into effect between October 30 1, 1996 and the dates specified in the preceding sentences of 31 this subsection, other than pursuant to the requirements of 32 this subsection, shall be entitled to reduce the amount of 33 any reduction or reductions in its base rates required by 34 this subsection by the amount of such other decrease. The SB2235 Engrossed -35- LRB9215298WHcsA 1 tariffs required under this subsection shall be filed 45 days 2 in advance of the effective date. Notwithstanding anything to 3 the contrary in Section 9-220 of this Act, no restatement of 4 base rates in conjunction with the elimination of a fuel 5 adjustment clause under that Section shall result in a lesser 6 decrease in base rates than customers would otherwise receive 7 under this subsection had the electric utility's fuel 8 adjustment clause not been eliminated. 9 (c) Any utility reducing its base rates by 15% on August 10 1, 1998 pursuant to subsection (b) shall include the 11 following statement on its bills for residential customers 12 from August 1 through December 31, 1998: "Effective August 1, 13 1998, your rates have been reduced by 15% by the Electric 14 Service Customer Choice and Rate Relief Law of 1997 passed by 15 the Illinois General Assembly.". Any utility reducing its 16 base rates by 5% on August 1, 1998, pursuant to subsection 17 (b) shall include the following statement on its bills for 18 residential customers from August 1 through December 31, 19 1998: "Effective August 1, 1998, your rates have been 20 reduced by 5% by the Electric Service Customer Choice and 21 Rate Relief Law of 1997 passed by the Illinois General 22 Assembly.". 23 Any utility reducing its base rates by 2% on August 1, 24 1998 pursuant to subsection (b) shall include the following 25 statement on its bills for residential customers from August 26 1 through December 31, 1998: "Effective August 1, 1998, your 27 rates have been reduced by 2% by the Electric Service 28 Customer Choice and Rate Relief Law of 1997 passed by the 29 Illinois General Assembly.". 30 (d) During the mandatory transition period, but not 31 before January 1, 2000, and notwithstanding the provisions 32 of subsection (a), an electric utility may request an 33 increase in its base rates if the electric utility 34 demonstrates that the 2-year average of its earned rate of SB2235 Engrossed -36- LRB9215298WHcsA 1 return on common equity, calculated as its net income 2 applicable to common stock divided by the average of its 3 beginning and ending balances of common equity using data 4 reported in the electric utility's Form 1 report to the 5 Federal Energy Regulatory Commission but adjusted to remove 6 the effects of accelerated depreciation or amortization or 7 other transition or mitigation measures implemented by the 8 electric utility pursuant to subsection (g) of this Section 9 and the effect of any refund paid pursuant to subsection (e) 10 of this Section, is below the 2-year average for the same 2 11 years of the monthly average yields of 30-year U.S. Treasury 12 bonds published by the Board of Governors of the Federal 13 Reserve System in its weekly H.15 Statistical Release or 14 successor publication. The Commission shall review the 15 electric utility's request, and may review the justness and 16 reasonableness of all rates for tariffed services, in 17 accordance with the provisions of Article IX of this Act, 18 provided that the Commission shall consider any special or 19 negotiated adjustments to the revenue requirement agreed to 20 between the electric utility and the other parties to the 21 proceeding. In setting rates under this Section, the 22 Commission shall exclude the costs and revenues that are 23 associated with competitive services and any billing or 24 pricing experiments conducted under Section 16-106. 25 (e) For the purposes of this subsection (e) all 26 calculations and comparisons shall be performed for the 27 Illinois operations of multijurisdictional utilities. During 28 the mandatory transition period, notwithstanding the 29 provisions of subsection (a), if the 2-year average of an 30 electric utility's earned rate of return on common equity, 31 calculated as its net income applicable to common stock 32 divided by the average of its beginning and ending balances 33 of common equity using data reported in the electric 34 utility's Form 1 report to the Federal Energy Regulatory SB2235 Engrossed -37- LRB9215298WHcsA 1 Commission but adjusted to remove the effect of any refund 2 paid under this subsection (e), and further adjusted to 3 include the annual amortization of any difference between the 4 consideration received by an affiliated interest of the 5 electric utility in the sale of an asset which had been sold 6 or transferred by the electric utility to the affiliated 7 interest subsequent to the effective date of this amendatory 8 Act of 1997 and the consideration for which such asset had 9 been sold or transferred to the affiliated interest, with 10 such difference to be amortized ratably from the date of the 11 sale by the affiliated interest to December 31, 2006, exceeds 12 the 2-year average of the Index for the same 2 years by 1.5 13 or more percentage points, the electric utility shall make 14 refunds to customers beginning the first billing day of April 15 in the following year in the manner described in paragraph 16 (3) of this subsection. For purposes of this subsection (e), 17 the "Index" shall be the sum of (A) the average for the 12 18 months ended September 30 of the monthly average yields of 19 30-year U.S. Treasury bonds published by the Board of 20 Governors of the Federal Reserve System in its weekly H.15 21 Statistical Release or successor publication for each year 22 1998 through 2004, and (B) (i) 4.00 percentage points for 23 each of the 12-month periods ending September 30, 1998 24 through September 30, 1999 or 8.00 percentage points if the 25 electric utility's average residential retail rate is less 26 than or equal to 90% of the average residential retail rate 27 for the "Midwest Utilities", as that term is defined in 28 subsection (b) of this Section, based on data reported on 29 Form 1 to the Federal Energy Regulatory Commission for 30 calendar year 1995, and the electric utility served between 31 150,000 and 250,000 retail customers on January 1, 1995, (ii) 32 7.00 percentage points for each of the 12-month periods 33 ending September 30, 2000 through September 30, 2004 if the 34 electric utility was providing service to at least 1,000,000 SB2235 Engrossed -38- LRB9215298WHcsA 1 customers in this State on January 1, 1999, or 9.00 2 percentage points if the electric utility's average 3 residential retail rate is less than or equal to 90% of the 4 average residential retail rate for the "Midwest Utilities", 5 as that term is defined in subsection (b) of this Section, 6 based on data reported on Form 1 to the Federal Energy 7 Regulatory Commission for calendar year 1995 and the electric 8 utility served between 150,000 and 250,000 retail customers 9 in this State on January 1, 1995, (iii) 11.00 percentage 10 points for each of the 12-month periods ending September 30, 11 2000 through September 30, 2004, but only if the electric 12 utility's average residential retail rate is less than or 13 equal to 90% of the average residential retail rate for the 14 "Midwest Utilities", as that term is defined in subsection 15 (b) of this Section, based on data reported on Form 1 to the 16 Federal Energy Regulatory Commission for calendar year 1995, 17 the electric utility served between 150,000 and 250,000 18 retail customers in this State on January 1, 1995, and the 19 electric utility offers delivery services on or before June 20 1, 2000 to retail customers whose annual electric energy use 21 comprises 33% of the kilowatt hour sales to that group of 22 retail customers that are classified under Division D, Groups 23 20 through 39 of the Standard Industrial Classifications set 24 forth in the Standard Industrial Classification Manual 25 published by the United States Office of Management and 26 Budget, excluding the kilowatt hour sales to those customers 27 that are eligible for delivery services pursuant to Section 28 16-104(a)(1)(i), and offers delivery services to its 29 remaining retail customers classified under Division D, 30 Groups 20 through 39 on or before October 1, 2000, and, 31 provided further, that the electric utility commits not to 32 petition pursuant to Section 16-108(f) for entry of an order 33 by the Commission authorizing the electric utility to 34 implement transition charges for an additional period after SB2235 Engrossed -39- LRB9215298WHcsA 1 December 31, 2006, or (iv) 5.00 percentage points for each of 2 the 12-month periods ending September 30, 2000 through 3 September 30, 2004 for all other electric utilities or 7.00 4 percentage points for such utilities for each of the 12-month 5 periods ending September 30, 2000 through September 30, 2004 6 for any such utility that commits not to petition pursuant to 7 Section 16-108(f) for entry of an order by the Commission 8 authorizing the electric utility to implement transition 9 charges for an additional period after December 31, 2006. 10 (1) For purposes of this subsection (e), "excess 11 earnings" means the difference between (A) the 2-year 12 average of the electric utility's earned rate of return 13 on common equity, less (B) the 2-year average of the sum 14 of (i) the Index applicable to each of the 2 years and 15 (ii) 1.5 percentage points; provided, that "excess 16 earnings" shall never be less than zero. 17 (2) On or before March 31 of each year 2000 through 18 2005 each electric utility shall file a report with the 19 Commission showing its earned rate of return on common 20 equity, calculated in accordance with this subsection, 21 for the preceding calendar year and the average for the 22 preceding 2 calendar years. 23 (3) If an electric utility has excess earnings, 24 determined in accordance with paragraphs (1) and (2) of 25 this subsection, the refunds which the electric utility 26 shall pay to its customers beginning the first billing 27 day of April in the following year shall be calculated 28 and applied as follows: 29 (i) The electric utility's excess earnings 30 shall be multiplied by the average of the beginning 31 and ending balances of the electric utility's common 32 equity for the 2-year period in which excess 33 earnings occurred. 34 (ii) The result of the calculation in (i) SB2235 Engrossed -40- LRB9215298WHcsA 1 shall be multiplied by 0.50 and then divided by a 2 number equal to 1 minus the electric utility's 3 composite federal and State income tax rate. 4 (iii) The result of the calculation in (ii) 5 shall be divided by the sum of the electric 6 utility's projected total kilowatt-hour sales to 7 retail customers plus projected kilowatt-hours to be 8 delivered to delivery services customers over a one 9 year period beginning with the first billing date in 10 April in the succeeding year to determine a cents 11 per kilowatt-hour refund factor. 12 (iv) The cents per kilowatt-hour refund factor 13 calculated in (iii) shall be credited to the 14 electric utility's customers by applying the factor 15 on the customer's monthly bills to each 16 kilowatt-hour sold or delivered until the total 17 amount calculated in (ii) has been paid to 18 customers. 19 (f) During the mandatory transition period, an electric 20 utility may file revised tariffs reducing the price of any 21 tariffed service offered by the electric utility for all 22 customers taking that tariffed service, which shall be 23 effective 7 days after filing. 24 (g) During the mandatory transition period, an electric 25 utility may, without obtaining any approval of the Commission 26 other than that provided for in this subsection and 27 notwithstanding any other provision of this Act or any rule 28 or regulation of the Commission that would require such 29 approval: 30 (1) implement a reorganization, other than a merger 31 of 2 or more public utilities as defined in Section 3-105 32 or their holding companies; 33 (2) retire generating plants from service; 34 (3) sell, assign, lease or otherwise transfer SB2235 Engrossed -41- LRB9215298WHcsA 1 assets to an affiliated or unaffiliated entity and as 2 part of such transaction enter into service agreements, 3 power purchase agreements, or other agreements with the 4 transferee; provided, however, that the prices, terms and 5 conditions of any power purchase agreement must be 6 approved or allowed into effect by the Federal Energy 7 Regulatory Commission; or 8 (4) use any accelerated cost recovery method 9 including accelerated depreciation, accelerated 10 amortization or other capital recovery methods, or record 11 reductions to the original cost of its assets. 12 In order to implement a reorganization, retire generating 13 plants from service, or sell, assign, lease or otherwise 14 transfer assets pursuant to this Section, the electric 15 utility shall comply with subsections (c) and (d) of Section 16 16-128, if applicable, and subsection (k) of this Section, if 17 applicable, and provide the Commission with at least 30 days 18 notice of the proposed reorganization or transaction, which 19 notice shall include the following information: 20 (i) a complete statement of the entries that 21 the electric utility will make on its books and 22 records of account to implement the proposed 23 reorganization or transaction together with a 24 certification from an independent certified public 25 accountant that such entries are in accord with 26 generally accepted accounting principles and, if the 27 Commission has previously approved guidelines for 28 cost allocations between the utility and its 29 affiliates, a certification from the chief 30 accounting officer of the utility that such entries 31 are in accord with those cost allocation guidelines; 32 (ii) a description of how the electric utility 33 will use proceeds of any sale, assignment, lease or 34 transfer to retire debt or otherwise reduce or SB2235 Engrossed -42- LRB9215298WHcsA 1 recover the costs of services provided by such 2 electric utility; 3 (iii) a list of all federal approvals or 4 approvals required from departments and agencies of 5 this State, other than the Commission, that the 6 electric utility has or will obtain before 7 implementing the reorganization or transaction; 8 (iv) an irrevocable commitment by the electric 9 utility that it will not, as a result of the 10 transaction, impose any stranded cost charges that 11 it might otherwise be allowed to charge retail 12 customers under federal law or increase the 13 transition charges that it is otherwise entitled to 14 collect under this Article XVI; and 15 (v) if the electric utility proposes to sell, 16 assign, lease or otherwise transfer a generating 17 plant that brings the amount of net dependable 18 generating capacity transferred pursuant to this 19 subsection to an amount equal to or greater than 15% 20 of the electric utility's net dependable capacity as 21 of the effective date of this amendatory Act of 22 1997, and enters into a power purchase agreement 23 with the entity to which such generating plant is 24 sold, assigned, leased, or otherwise transferred, 25 the electric utility also agrees, if its fuel 26 adjustment clause has not already been eliminated, 27 to eliminate its fuel adjustment clause in 28 accordance with subsection (b) of Section 9-220 for 29 a period of time equal to the length of any such 30 power purchase agreement or successor agreement, or 31 until January 1, 2005, whichever is longer; if the 32 capacity of the generating plant so transferred and 33 related power purchase agreement does not result in 34 the elimination of the fuel adjustment clause under SB2235 Engrossed -43- LRB9215298WHcsA 1 this subsection, and the fuel adjustment clause has 2 not already been eliminated, the electric utility 3 shall agree that the costs associated with the 4 transferred plant that are included in the 5 calculation of the rate per kilowatt-hour to be 6 applied pursuant to the electric utility's fuel 7 adjustment clause during such period shall not 8 exceed the per kilowatt-hour cost associated with 9 such generating plant included in the electric 10 utility's fuel adjustment clause during the full 11 calendar year preceding the transfer, with such 12 limit to be adjusted each year thereafter by the 13 Gross Domestic Product Implicit Price Deflator. 14 (vi) In addition, if the electric utility 15 proposes to sell, assign, or lease, (A) either (1) 16 an amount of generating plant that brings the amount 17 of net dependable generating capacity transferred 18 pursuant to this subsection to an amount equal to or 19 greater than 15% of its net dependable capacity on 20 the effective date of this amendatory Act of 1997, 21 or (2) one or more generating plants with a total 22 net dependable capacity of 1100 megawatts, or (B) 23 transmission and distribution facilities that either 24 (1) bring the amount of transmission and 25 distribution facilities transferred pursuant to this 26 subsection to an amount equal to or greater than 15% 27 of the electric utility's total depreciated original 28 cost investment in such facilities, or (2) represent 29 an investment of $25,000,000 in terms of total 30 depreciated original cost, the electric utility 31 shall provide, in addition to the information listed 32 in subparagraphs (i) through (v), the following 33 information: (A) a description of how the electric 34 utility will meet its service obligations under this SB2235 Engrossed -44- LRB9215298WHcsA 1 Act in a safe and reliable manner and (B) the 2 electric utility's projected earned rate of return 3 on common equity, calculated in accordance with 4 subsection (d) of this Section, for each year from 5 the date of the notice through December 31, 2004 6 both with and without the proposed transaction. If 7 the Commission has not issued an order initiating a 8 hearing on the proposed transaction within 30 days 9 after the date the electric utility's notice is 10 filed, the transaction shall be deemed approved. 11 The Commission may, after notice and hearing, 12 prohibit the proposed transaction if it makes either 13 or both of the following findings: (1) that the 14 proposed transaction will render the electric 15 utility unable to provide its tariffed services in a 16 safe and reliable manner, or (2) that there is a 17 strong likelihood that consummation of the proposed 18 transaction will result in the electric utility 19 being entitled to request an increase in its base 20 rates during the mandatory transition period 21 pursuant to subsection (d) of this Section. Any 22 hearing initiated by the Commission into the 23 proposed transaction shall be completed, and the 24 Commission's final order approving or prohibiting 25 the proposed transaction shall be entered, within 90 26 days after the date the electric utility's notice 27 was filed. Provided, however, that a sale, 28 assignment, or lease of transmission facilities to 29 an independent system operator that meets the 30 requirements of Section 16-126 shall not be subject 31 to Commission approval under this Section. 32 In any proceeding conducted by the Commission 33 pursuant to this subparagraph (vi), intervention 34 shall be limited to parties with a direct interest SB2235 Engrossed -45- LRB9215298WHcsA 1 in the transaction which is the subject of the 2 hearing and any statutory consumer protection agency 3 as defined in subsection (d) of Section 9-102.1. 4 Notwithstanding the provisions of Section 10-113 of 5 this Act, any application seeking rehearing of an 6 order issued under this subparagraph (vi), whether 7 filed by the electric utility or by an intervening 8 party, shall be filed within 10 days after service 9 of the order. 10 The Commission shall not in any subsequent proceeding or 11 otherwise, review such a reorganization or other transaction 12 authorized by this Section, but shall retain the authority to 13 allocate costs as stated in Section 16-111(i). An entity to 14 which an electric utility sells, assigns, leases or transfers 15 assets pursuant to this subsection (g) shall not, as a result 16 of the transactions specified in this subsection (g), be 17 deemed a public utility as defined in Section 3-105. Nothing 18 in this subsection (g) shall change any requirement under the 19 jurisdiction of the Illinois Department of Nuclear Safety 20 including, but not limited to, the payment of fees. Nothing 21 in this subsection (g) shall exempt a utility from obtaining 22 a certificate pursuant to Section 8-406 of this Act for the 23 construction of a new electric generating facility. Nothing 24 in this subsection (g) is intended to exempt the transactions 25 hereunder from the operation of the federal or State 26 antitrust laws. Nothing in this subsection (g) shall require 27 an electric utility to use the procedures specified in this 28 subsection for any of the transactions specified herein. Any 29 other procedure available under this Act may, at the electric 30 utility's election, be used for any such transaction. 31 (h) During the mandatory transition period, the 32 Commission shall not establish or use any rates of 33 depreciation, which for purposes of this subsection shall 34 include amortization, for any electric utility other than SB2235 Engrossed -46- LRB9215298WHcsA 1 those established pursuant to subsection (c) of Section 5-104 2 of this Act or utilized pursuant to subsection (g) of this 3 Section. Provided, however, that in any proceeding to review 4 an electric utility's rates for tariffed services pursuant to 5 Section 9-201, 9-202, 9-250 or 16-111(d) of this Act, the 6 Commission may establish new rates of depreciation for the 7 electric utility in the same manner provided in subsection 8 (d) of Section 5-104 of this Act. An electric utility 9 implementing an accelerated cost recovery method including 10 accelerated depreciation, accelerated amortization or other 11 capital recovery methods, or recording reductions to the 12 original cost of its assets, pursuant to subsection (g) of 13 this Section, shall file a statement with the Commission 14 describing the accelerated cost recovery method to be 15 implemented or the reduction in the original cost of its 16 assets to be recorded. Upon the filing of such statement, 17 the accelerated cost recovery method or the reduction in the 18 original cost of assets shall be deemed to be approved by the 19 Commission as though an order had been entered by the 20 Commission. 21 (i) Subsequent to the mandatory transition period, the 22 Commission, in any proceeding to establish rates and charges 23 for tariffed services offered by an electric utility, shall 24 consider only (1) the then current or projected revenues, 25 costs, investments and cost of capital directly or indirectly 26 associated with the provision of such tariffed services; (2) 27 collection of transition charges in accordance with Sections 28 16-102 and 16-108 of this Act; (3) recovery of any employee 29 transition costs as described in Section 16-128 which the 30 electric utility is continuing to incur, including recovery 31 of any unamortized portion of such costs previously incurred 32 or committed, with such costs to be equitably allocated among 33 bundled services, delivery services, and contracts with 34 alternative retail electric suppliers; and (4) recovery of SB2235 Engrossed -47- LRB9215298WHcsA 1 the costs associated with the electric utility's compliance 2 with decommissioning funding requirements; and shall not 3 consider any other revenues, costs, investments or cost of 4 capital of either the electric utility or of any affiliate of 5 the electric utility that are not associated with the 6 provision of tariffed services. In setting rates for 7 tariffed services, the Commission shall equitably allocate 8 joint and common costs and investments between the electric 9 utility's competitive and tariffed services. In determining 10 the justness and reasonableness of the electric power and 11 energy component of an electric utility's rates for tariffed 12 services subsequent to the mandatory transition period and 13 prior to the time that the provision of such electric power 14 and energy is declared competitive, the Commission shall 15 consider the extent to which the electric utility's tariffed 16 rates for such component for each customer class exceed the 17 market value determined pursuant to Section 16-112, and, if 18 the electric power and energy component of such tariffed rate 19 exceeds the market value by more than 10% for any customer 20 class, may establish such electric power and energy component 21 at a rate equal to the market value plus 10%. In any such 22 case, the Commission may also elect to extend the provisions 23 of Section 16-111(e) for any period in which the electric 24 utility is collecting transition charges, using information 25 applicable to such period. 26 (j) During the mandatory transition period, an electric 27 utility may elect to transfer to a non-operating income 28 account under the Commission's Uniform System of Accounts 29 either or both of (i) an amount of unamortized investment tax 30 credit that is in addition to the ratable amount which is 31 credited to the electric utility's operating income account 32 for the year in accordance with Section 46(f)(2) of the 33 federal Internal Revenue Code of 1986, as in effect prior to 34 P.L. 101-508, or (ii) "excess tax reserves", as that term is SB2235 Engrossed -48- LRB9215298WHcsA 1 defined in Section 203(e)(2)(A) of the federal Tax Reform Act 2 of 1986, provided that (A) the amount transferred may not 3 exceed the amount of the electric utility's assets that were 4 created pursuant to Statement of Financial Accounting 5 Standards No. 71 which the electric utility has written off 6 during the mandatory transition period, and (B) the transfer 7 shall not be effective until approved by the Internal Revenue 8 Service. An electric utility electing to make such a 9 transfer shall file a statement with the Commission stating 10 the amount and timing of the transfer for which it intends to 11 request approval of the Internal Revenue Service, along with 12 a copy of its proposed request to the Internal Revenue 13 Service for a ruling. The Commission shall issue an order 14 within 14 days after the electric utility's filing approving, 15 subject to receipt of approval from the Internal Revenue 16 Service, the proposed transfer. 17 (k) If an electric utility is selling or transferring to 18 a single buyer 5 or more generating plants located in this 19 State with a total net dependable capacity of 5000 megawatts 20 or more pursuant to subsection (g) of this Section and has 21 obtained a sale price or consideration that exceeds 200% of 22 the book value of such plants, the electric utility must 23 provide to the Governor, the President of the Illinois 24 Senate, the Minority Leader of the Illinois Senate, the 25 Speaker of the Illinois House of Representatives, and the 26 Minority Leader of the Illinois House of Representatives no 27 later than 15 days after filing its notice under subsection 28 (g) of this Section or 5 days after the date on which this 29 subsection (k) becomes law, whichever is later, a written 30 commitment in which such electric utility agrees to expend $2 31 billion outside the corporate limits of any municipality with 32 1,000,000 or more inhabitants within such electric utility's 33 service area, over a 6-year period beginning with the 34 calendar year in which the notice is filed, on projects, SB2235 Engrossed -49- LRB9215298WHcsA 1 programs, and improvements within its service area relating 2 to transmission and distribution including, without 3 limitation, infrastructure expansion, repair and replacement, 4 capital investments, operations and maintenance, and 5 vegetation management. 6 (Source: P.A. 90-561, eff. 12-16-97; 90-563, eff. 12-16-97; 7 91-50, eff. 6-30-99.) 8 Section 99. Effective date. This Act takes effect upon 9 becoming law. SB2235 Engrossed -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