State of Illinois
92^nd General Assembly
Legislation

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92_SB2235enr

 
SB2235 Enrolled                               LRB9215298WHcsA

 1        AN ACT concerning energy.

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

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

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

10        (305 ILCS 20/2) (from Ch. 111 2/3, par. 1402)
11        Sec. 2. Findings and Intent.
12        (a)  The General Assembly finds that:
13             (1)  the health,  welfare,  and  prosperity  of  the
14        people of the State of Illinois require that all citizens
15        receive  essential  levels  of  heat and electric service
16        regardless of economic circumstance;
17             (2)  public utilities and other  entities  providing
18        such  services are entitled to receive proper payment for
19        services actually rendered;
20             (3)  declining Federal low income energy  assistance
21        funding  necessitates  a  State  response  to  ensure the
22        continuity  and  the  further   development   of   energy
23        assistance  and  related  policies  and  programs  within
24        Illinois; and
25             (4)  energy  assistance  policies  and  programs  in
26        effect in Illinois during the past 3 years have benefited
27        all  Illinois citizens, and should therefore be continued
28        with the modifications provided herein.
29        (b)  Consistent with its findings, the  General  Assembly
30    declares that it is the policy of the State that:
 
SB2235 Enrolled            -2-                LRB9215298WHcsA
 1             (1)  a  comprehensive  low  income energy assistance
 2        policy  and   program   should   be   established   which
 3        incorporates  income assistance, home weatherization, and
 4        other measures to ensure that  citizens  have  access  to
 5        affordable energy services;
 6             (2)  the  ability  of  public  utilities  and  other
 7        entities  to  receive  just  compensation  for  providing
 8        services should not be jeopardized by this policy;
 9             (3)  resources  applied  in  achieving  this  policy
10        should  be  coordinated  and efficiently utilized through
11        the  integration  of  public  programs  and  through  the
12        targeting of assistance; and
13             (4)  the State should utilize  all  appropriate  and
14        available  means  to fund this program and, to the extent
15        possible, should identify and utilize sources of  funding
16        which complement State tax revenues.
17    (Source: P.A. 86-127.)

18        (305 ILCS 20/4) (from Ch. 111 2/3, par. 1404)
19        Sec. 4. Energy Assistance Program.
20        (a)  The  Department of Commerce and Community Affairs is
21    hereby authorized  to  institute  a  program  to  ensure  the
22    availability   and  affordability  of  heating  and  electric
23    service  to  low  income  citizens.   The  Department   shall
24    implement  the  program  by  rule promulgated pursuant to The
25    Illinois Administrative Procedure Act.   The program shall be
26    consistent with the purposes and objectives of this  Act  and
27    with  all  other  specific requirements provided herein.  The
28    Department shall ensure that the program is in  operation  by
29    November 1, 1989, and may enter into such contracts and other
30    agreements  with  local  agencies as may be necessary for the
31    purpose of administering the energy assistance program.
32        (b)  Nothing in this Act shall be construed  as  altering
33    or  limiting the authority conferred on the Illinois Commerce
 
SB2235 Enrolled            -3-                LRB9215298WHcsA
 1    Commission by  the  Public  Utilities  Act  to  regulate  all
 2    aspects of the provision of public utility service, including
 3    but not limited to the authority to make rules and adjudicate
 4    disputes   between   utilities   and   customers  related  to
 5    eligibility for utility service, deposits, payment practices,
 6    discontinuance of service, and the  treatment  of  arrearages
 7    owing for previously rendered utility service.
 8    (Source: P.A. 86-127.)

 9        (305 ILCS 20/5) (from Ch. 111 2/3, par. 1405)
10        Sec. 5.  Policy Advisory Council.
11        (a)  Within  the  Department  of  Commerce  and Community
12    Affairs is created a  Low  Income  Energy  Assistance  Policy
13    Advisory Council.
14        (b)  The  Council  shall  be  chaired  by the Director of
15    Commerce and Community Affairs or his or her designee.  There
16    shall  be  20  members  of  the  Low Income Energy Assistance
17    Policy Advisory Council, including the  chairperson  and  the
18    following members:
19             (1)  one  member designated by the Illinois Commerce
20        Commission;
21             (2)  one   member   designated   by   the   Illinois
22        Department of Natural Resources;
23             (3)  one member designated by  the  Illinois  Energy
24        Association   to   represent  electric  public  utilities
25        serving in excess of 1 million customers in this State;
26             (4)  one member agreed upon by gas public  utilities
27        that  serve  more  than 500,000  and fewer than 1,500,000
28        customers in this State;
29             (5)  one member agreed upon by gas public  utilities
30        that serve 1,500,000 or more customers in this State;
31             (6)  one  member  designated  by the Illinois Energy
32        Association to represent  combination  gas  and  electric
33        public utilities;
 
SB2235 Enrolled            -4-                LRB9215298WHcsA
 1             (7)  one   member   agreed   upon  by  the  Illinois
 2        Municipal Electric Agency and the Association of Illinois
 3        Electric Cooperatives;
 4             (8)  one  member  agreed  upon   by   the   Illinois
 5        Industrial Energy Consumers;
 6             (9)  three  members  designated by the Department to
 7        represent low income energy consumers;
 8             (10)  two  members  designated   by   the   Illinois
 9        Community  Action Association to represent local agencies
10        that assist in the administration of this Act;
11             (11)  one member designated by the Citizens  Utility
12        Board to represent residential energy consumers;
13             (12)  one  member  designated by the Illinois Retail
14        Merchants  Association  to  represent  commercial  energy
15        customers;
16             (13)  one member designated  by  the  Department  to
17        represent independent energy providers; and
18             (14)  three  members  designated by the Mayor of the
19        City of Chicago.
20        (c)  Designated and appointed members shall serve 2  year
21    terms and until their successors are appointed and qualified.
22    The  designating organization shall notify the chairperson of
23    any changes or substitutions of a designee within 10 business
24    days of a change or substitution. Members shall serve without
25    compensation, but may receive reimbursement for actual  costs
26    incurred  in  fulfilling  their  duties  as  members  of  the
27    Council.
28        (d)  The Council shall have the following duties:
29             (1)  to  monitor  the  administration of this Act to
30        ensure  effective,  efficient,  and  coordinated  program
31        development and implementation;
32             (2)  to assist  the  Department  in  developing  and
33        administering   rules  and  regulations  required  to  be
34        promulgated pursuant to this Act in a  manner  consistent
 
SB2235 Enrolled            -5-                LRB9215298WHcsA
 1        with the purpose and objectives of this Act;
 2             (3)  to facilitate and coordinate the collection and
 3        exchange of all program data and other information needed
 4        by  the  Department and others in fulfilling their duties
 5        pursuant to this Act;
 6             (4)  to advise the Department on the proper level of
 7        support required for effective administration of the Act;
 8             (5)  to provide a  written  opinion  concerning  any
 9        regulation  proposed  pursuant to this Act, and to review
10        and comment on any  energy  assistance  or  related  plan
11        required to be prepared by the Department;
12             (6)  to  advise  the  Department on the use of funds
13        collected pursuant to Section 11 of this Act, and on  any
14        changes to existing low income energy assistance programs
15        to make effective use of such funds, so long as such uses
16        and  changes  are consistent with the requirements of the
17        Act. Policy Advisory Council to be comprised of:
18             (1)  the  following  ex  officio  members  or  their
19        designees:   the  Director  of  Commerce  and   Community
20        Affairs  who  shall  serve as Chair of the Committee, the
21        Director of Natural Resources,  the  Secretary  of  Human
22        Services,  and  the  Chairman  of  the  Illinois Commerce
23        Commission; and
24             (2)  9  persons  who  shall  be  appointed  by   the
25        Governor to serve 2 year terms and until their successors
26        are  appointed  and qualified, 3 of whom shall be persons
27        who represent  low  income  households  or  organizations
28        which  represent  such  households,  3  of  whom shall be
29        representatives of public  utilities  or  other  entities
30        which provide winter energy services, and 3 of whom shall
31        be  representatives  of  local  agencies  engaged  by the
32        Department to assist in the administration of this Act.
33             (3)  6  persons  who  shall  be  appointed  by   the
34        Director  of  the  Department  of  Commerce and Community
 
SB2235 Enrolled            -6-                LRB9215298WHcsA
 1        Affairs to serve 2 year terms and until their  successors
 2        are appointed and qualified, who shall be persons meeting
 3        such  qualifications  as  may  be required by the federal
 4        government for the administration of  the  Weatherization
 5        Assistance  Program  funded  by  the  U.S.  Department of
 6        Energy and any such related energy assistance programs.
 7             (4)  Members shall serve without  compensation,  but
 8        may  receive  reimbursement  for actual costs incurred in
 9        fulfilling their duties as members of the Council.
10        (b)  The Policy Advisory Council shall have the following
11    duties:
12             (1)  to monitor the administration of  this  Act  to
13        ensure  effective,  efficient,  and  coordinated  program
14        development and implementation;
15             (2)  to  assist  the  Department  in  developing and
16        administering  rules  and  regulations  required  to   be
17        promulgated  pursuant  to this Act in a manner consistent
18        with the purpose and objectives of this Act;
19             (3)  to facilitate and coordinate the collection and
20        exchange of all program data and other information needed
21        by the Department and others in fulfilling  their  duties
22        pursuant to this Act;
23             (4)  to advise the Department on the proper level of
24        support required for effective administration of the Act;
25             (5)  to  provide  a  written  opinion concerning any
26        regulation proposed pursuant to this Act, and  to  review
27        and  comment  on  any  energy  assistance or related plan
28        required to be prepared by the Department;
29             (6)  on or before March 1 of each year beginning  in
30        1990,  to prepare and submit a report to the Governor and
31        General Assembly which describes the  activities  of  the
32        Department  in  the  development  and  implementation  of
33        energy  assistance  and  related  policies  and programs,
34        which  characterizes   progress   towards   meeting   the
 
SB2235 Enrolled            -7-                LRB9215298WHcsA
 1        objectives  and  requirements  of  this  Act,  and  which
 2        recommends any statutory changes which might be needed to
 3        further  such  progress.   The  report  submitted in 1991
 4        shall  include  an  analysis   of   and   recommendations
 5        regarding  this Act's provisions concerning State payment
 6        of pre-program arrearages; and
 7             (7)  to advise the Department on the  use  of  funds
 8        collected  pursuant to Section 13 of this Act, and on any
 9        changes to existing low-income energy assistance programs
10        to make effective use of such funds, so long as such uses
11        and changes  are  consistent  with  the  requirements  of
12        subsection (a) of Section 13 of this Act.
13    (Source:  P.A.  89-445,  eff.  2-7-96;  89-507,  eff. 7-1-97;
14    90-561, eff. 12-16-97.)

15        (305 ILCS 20/6) (from Ch. 111 2/3, par. 1406)
16        Sec. 6.  Eligibility, Conditions  of  Participation,  and
17    Energy Assistance.
18        (a)  Any  person  who  is  a  resident  of  the  State of
19    Illinois and whose household income is not  greater  than  an
20    amount determined annually by the Department, in consultation
21    with  the  Policy  Advisory Council, may apply for assistance
22    pursuant  to  this  Act  in   accordance   with   regulations
23    promulgated   by   the  Department.  In  setting  the  annual
24    eligibility level, the Department shall consider  the  amount
25    of available funding and may not set a limit higher than 150%
26    of  the  federal  nonfarm poverty level as established by the
27    federal Office of Management and Budget.
28        (b)  Applicants who qualify for  assistance  pursuant  to
29    subsection   (a)   of   this   Section   shall,   subject  to
30    appropriation  from  the  General  Assembly  and  subject  to
31    availability of  funds  to  the  Department,  receive  energy
32    assistance  as  provided  by  this Act.  The Department, upon
33    receipt of monies authorized pursuant to this Act for  energy
 
SB2235 Enrolled            -8-                LRB9215298WHcsA
 1    assistance,  shall  commit funds for each qualified applicant
 2    in an amount determined by the  Department.   In  determining
 3    the amounts of assistance to be provided to or on behalf of a
 4    qualified  applicant,  the  Department  shall ensure that the
 5    highest amounts of  assistance  go  to  households  with  the
 6    greatest  energy  costs in relation to household income.  The
 7    Department  shall  include  factors  such  as  energy  costs,
 8    household size, household income, and  region  of  the  State
 9    when  determining  individual household benefits.  In setting
10    assistance levels, the Department shall  attempt  to  provide
11    assistance to approximately the same number of households who
12    participated   in  the  1991  Residential  Energy  Assistance
13    Partnership  Program.   Such  assistance  levels   shall   be
14    adjusted  annually  on  the basis of funding availability and
15    energy costs.  In promulgating rules for  the  administration
16    of this Section the Department shall assure that a minimum of
17    1/3  of  funds  available for benefits to eligible households
18    with the lowest incomes are made available to households  who
19    are  eligible  for  public  assistance  and  that elderly and
20    disabled  households  are  offered   a   priority   one-month
21    application period.
22        (c)  If  the  applicant  is  not  a customer of an energy
23    provider for winter energy services or an applicant for  such
24    service,   such  applicant  shall  receive  a  direct  energy
25    assistance payment in an amount established by the Department
26    for all such applicants under this  Act;  provided,  however,
27    that  such an applicant must have rental expenses for housing
28    greater than 30% of household income.
29        (d)  If  the  applicant  is  a  customer  of  an   energy
30    provider,  such  applicant shall receive energy assistance in
31    an  amount  established  by  the  Department  for  all   such
32    applicants  under  this  Act,  such  amount to be paid by the
33    Department to the energy  provider  supplying  winter  energy
34    service to such applicant.  Such applicant shall:
 
SB2235 Enrolled            -9-                LRB9215298WHcsA
 1             (i)  make  all  reasonable  efforts  to apply to any
 2        other appropriate source of public energy assistance; and
 3             (ii)  sign a waiver  permitting  the  Department  to
 4        receive  income  information  from  any public or private
 5        agency providing income or energy assistance and from any
 6        employer, whether public or private.
 7        (e)  Any qualified applicant pursuant to this Section may
 8    receive or have paid on such applicant's behalf an  emergency
 9    assistance  payment to enable such applicant to obtain access
10    to winter energy services.  Any such payments shall  be  made
11    in accordance with regulations of the Department.
12        (f)  The   Department   may,   if  sufficient  funds  are
13    available, provide additional benefits to  certain  qualified
14    applicants:
15             (i)  for  the  reduction of past due amounts owed to
16        energy providers; and
17             (ii)  to  assist  the  household  in  responding  to
18        excessively high summer  temperatures  or  energy  costs.
19        Households containing elderly members, children, a person
20        with  a  disability,  or a person with a medical need for
21        conditioned air shall receive  priority  for  receipt  of
22        such benefits.
23    (Source: P.A. 91-936, eff. 1-10-01.)

24        (305 ILCS 20/7) (from Ch. 111 2/3, par. 1407)
25        Sec. 7.  State Weatherization Plan and Program.
26        (a)  The  Department  shall,  after consultation with the
27    Policy Advisory Council, prepare  and  promulgate  an  annual
28    State  Weatherization  Plan  beginning  in  the year this Act
29    becomes effective.  To  the  extent  practicable,  such  Plan
30    shall  provide  for  targeting  use of both State and federal
31    weatherization funds to the households of eligible applicants
32    pursuant to this Act whose ratios of energy costs  to  income
33    are the highest.  The State Weatherization Plan shall include
 
SB2235 Enrolled            -10-               LRB9215298WHcsA
 1    but need not be limited to the following:
 2             (1)  a     description     of     the    demographic
 3        characteristics  and  energy  use  patterns   of   people
 4        eligible for assistance pursuant to this Act;
 5             (2)  the  methodology  used  by  the  Department  in
 6        targeting weatherization funds;
 7             (3)  a   description  of  anticipated  activity  and
 8        results for the year covered by the  Plan,  including  an
 9        estimate  of  energy cost savings expected to be realized
10        by the weatherization program; and
11             (4)  every  third  year,  beginning  in   2002,   an
12        evaluation  of results from the weatherization program in
13        the year preceding the plan year, including the effect of
14        State  Weatherization  Program  investments   on   energy
15        consumption  and  cost  in  the  population  eligible for
16        assistance pursuant  to  this  Act,  and  the  effect  of
17        targeted  weatherization  investments on the costs of the
18        energy assistance program authorized by this Act.
19        (b)  The   Department   shall   implement    the    State
20    Weatherization  Plan by rule through a program which provides
21    targeted weatherization assistance to eligible applicants for
22    energy assistance pursuant to this Act.  The  Department  may
23    enter  into  such contracts and other arrangements with local
24    agencies as may be necessary for the purpose of administering
25    the weatherization program.
26    (Source: P.A. 86-127; 87-14.)

27        (305 ILCS 20/8) (from Ch. 111 2/3, par. 1408)
28        Sec. 8.  Program Evaluation Reports.
29        (a)  The Department of Natural  Resources  shall  prepare
30    and  submit  to the Governor and the General Assembly reports
31    on September 30 biennially March 15 of each  year,  beginning
32    in  2003  1991,  evaluating  the  effectiveness of the energy
33    assistance and weatherization  policies  authorized  by  this
 
SB2235 Enrolled            -11-               LRB9215298WHcsA
 1    Act.   The  first  report shall cover such effects during the
 2    first winter during which the program authorized by this Act,
 3    is in operation, and successive reports shall  cover  effects
 4    since the issuance of the preceding report.
 5             (1) (b)  Reports  issued  pursuant  to  this Section
 6        shall be limited to, information concerning  the  effects
 7        of the policies authorized by this Act on (1) the ability
 8        of  eligible  applicants  to obtain and maintain adequate
 9        and affordable winter energy services and (2) changes  in
10        the costs and prices of winter energy services for people
11        who  do  not  receive  energy assistance pursuant to this
12        Act.
13             (2) (c)  The Department of Natural  Resources  shall
14        by  September  30,  2002, in consultation with the Policy
15        Advisory Council, determine the kinds  of  numerical  and
16        other  information  needed  to  conduct  the  evaluations
17        required  by  this  Section,  and shall advise the Policy
18        Advisory Council of such information needs  in  a  timely
19        manner.     The  Department  of  Commerce  and  Community
20        Affairs,  the  Department  of  Human  Services,  and  the
21        Illinois Commerce  Commission  shall  each  provide  such
22        information  as  the  Department of Natural Resources may
23        require  to  ensure   that   the   evaluation   reporting
24        requirement established by this Section can be met.
25        (b)  On  or  before  December  31,  2002, 2004, 2006, and
26    2007, the Department shall prepare a report for  the  General
27    Assembly  on  the  expenditure  of funds appropriated for the
28    programs authorized under this Act.
29        (c)  On or before December 31 of each year in 2004, 2006,
30    and 2007, the Department  shall,  in  consultation  with  the
31    Council,   prepare  and  submit  evaluation  reports  to  the
32    Governor and the General Assembly outlining  the  effects  of
33    the  program  designed  under this Act on the following as it
34    relates to the propriety of continuing the program:
 
SB2235 Enrolled            -12-               LRB9215298WHcsA
 1             (1)  the  definition  of  an  eligible  low   income
 2        residential customer;
 3             (2)  access  of  low income residential customers to
 4        essential energy services;
 5             (3)  past due  amounts  owed  to  utilities  by  low
 6        income persons in Illinois;
 7             (4)  appropriate   measures   to   encourage  energy
 8        conservation, efficiency, and  responsibility  among  low
 9        income residential customers;
10             (5)  the   activities   of  the  Department  in  the
11        development and implementation of energy  assistance  and
12        related   policies   and  programs,  which  characterizes
13        progress toward meeting the objectives  and  requirements
14        of  this  Act, and which recommends any statutory changes
15        which might be needed to further such progress.
16        (d)  The Department  shall  by  September  30,  2002   in
17    consultation   with   the  Council  determine  the  kinds  of
18    numerical  and  other  information  needed  to  conduct   the
19    evaluations required by this Section.
20        (e) (d)  The  Illinois  Commerce Commission shall require
21    each public utility providing heating or electric service  to
22    compile and submit any numerical and other information needed
23    by  the Department of Natural Resources to meet its reporting
24    obligations.
25    (Source: P.A. 89-445, eff. 2-7-96; 89-507, eff. 7-1-97.)

26        (305 ILCS 20/13)
27        Sec. 13.  Supplemental Low-Income Energy Assistance Fund.
28        (a)  The Supplemental Low-Income Energy  Assistance  Fund
29    is  hereby  created  as a special fund in the State Treasury.
30    The  Supplemental  Low-Income  Energy  Assistance   Fund   is
31    authorized  to  receive,  by  statutory  deposit,  the moneys
32    collected   pursuant   to   this   Section.     Subject    to
33    appropriation,  the  Department  shall  use  moneys  from the
 
SB2235 Enrolled            -13-               LRB9215298WHcsA
 1    Supplemental Low-Income Energy Assistance Fund  for  payments
 2    to  electric  or  gas public utilities, municipal electric or
 3    gas utilities, and electric cooperatives on behalf  of  their
 4    customers  who  are participants in the program authorized by
 5    Section 4 of this Act, for the  provision  of  weatherization
 6    services   and   for   administration   of  the  Supplemental
 7    Low-Income Energy Assistance Fund.  The  yearly  expenditures
 8    for weatherization may not exceed 10% of the amount collected
 9    during  the  year  pursuant  to this Section.  In determining
10    which  customers  will  participate  in  the   weatherization
11    component,  the  Department  shall  target weatherization for
12    those customers with the greatest energy burden, that is  the
13    lowest   income  and  greatest  utility  bills.   The  yearly
14    administrative expenses of the Supplemental Low-Income Energy
15    Assistance Fund may not exceed 10% of  the  amount  collected
16    during that year pursuant to this Section.
17        (b)  Notwithstanding  the provisions of Section 16-111 of
18    the Public Utilities Act but subject  to  subsection  (k)  of
19    this  Section,  each public utility, electric cooperative, as
20    defined in Section 3.4 of  the  Electric  Supplier  Act,  and
21    municipal  utility,  as  referenced  in  Section 3-105 of the
22    Public Utilities Act, that is  engaged  in  the  delivery  of
23    electricity  or  the  distribution  of natural gas within the
24    State of Illinois shall, effective January  1,  1998,  assess
25    each  of  its  customer  accounts a monthly Energy Assistance
26    Charge for  the  Supplemental  Low-Income  Energy  Assistance
27    Fund.  The  delivering  public utility, municipal electric or
28    gas  utility,  or  electric  or   gas   cooperative   for   a
29    self-assessing purchaser remains subject to the collection of
30    the fee imposed by this Section.  The monthly charge shall be
31    as follows:
32             (1)  $0.40 per month on each account for residential
33        electric service;
34             (2)  $0.40 per month on each account for residential
 
SB2235 Enrolled            -14-               LRB9215298WHcsA
 1        gas service;
 2             (3)  $4    per    month    on   each   account   for
 3        non-residential electric service which had less  than  10
 4        megawatts  of  peak  demand  during the previous calendar
 5        year;
 6             (4)  $4   per   month   on    each    account    for
 7        non-residential  gas  service which had distributed to it
 8        less than 4,000,000 therms of  gas  during  the  previous
 9        calendar year;
10             (5)  $300    per   month   on   each   account   for
11        non-residential electric service which had  10  megawatts
12        or  greater  of  peak demand during the previous calendar
13        year; and
14             (6)  $300   per   month   on   each   account    for
15        non-residential  gas  service which had 4,000,000 or more
16        therms of gas  distributed  to  it  during  the  previous
17        calendar year.
18        (c)  For purposes of this Section:
19             (1)  "residential  electric  service" means electric
20        utility service for household  purposes  delivered  to  a
21        dwelling  of  2  or  fewer  units which is billed under a
22        residential  rate,  or  electric  utility   service   for
23        household  purposes delivered to a dwelling unit or units
24        which  is  billed  under  a  residential  rate   and   is
25        registered by a separate meter for each dwelling unit;
26             (2)  "residential  gas  service"  means  gas utility
27        service for household purposes distributed to a  dwelling
28        of  2  or fewer units which is billed under a residential
29        rate, or  gas  utility  service  for  household  purposes
30        distributed  to  a dwelling unit or units which is billed
31        under a residential rate and is registered by a  separate
32        meter for each dwelling unit;
33             (3)  "non-residential    electric   service"   means
34        electric  utility  service  which  is   not   residential
 
SB2235 Enrolled            -15-               LRB9215298WHcsA
 1        electric service; and
 2             (4)  "non-residential gas service" means gas utility
 3        service which is not residential gas service.
 4        (d)  At  least 45 days prior to the date on which it must
 5    begin  assessing  Energy  Assistance  Charges,  each   public
 6    utility  engaged  in  the  delivery  of  electricity  or  the
 7    distribution  of  natural  gas  shall  file with the Illinois
 8    Commerce  Commission   tariffs   incorporating   the   Energy
 9    Assistance Charge in other charges stated in such tariffs.
10        (e)  The  Energy  Assistance  Charge assessed by electric
11    and gas public utilities shall be  considered  a  charge  for
12    public utility service.
13        (f)  By  the 20th day of the month following the month in
14    which the charges imposed by the Section were collected, each
15    public utility, municipal utility, and  electric  cooperative
16    shall  remit to the Department of Revenue all moneys received
17    as payment of  the  Energy  Assistance  Charge  on  a  return
18    prescribed and furnished by the Department of Revenue showing
19    such  information as the Department of Revenue may reasonably
20    require.  If a customer makes a  partial  payment,  a  public
21    utility, municipal utility, or electric cooperative may elect
22    either:  (i)  to apply such partial payments first to amounts
23    owed to the utility or cooperative for its services and  then
24    to  payment for the Energy Assistance Charge or (ii) to apply
25    such partial payments on a  pro-rata  basis  between  amounts
26    owed  to  the  utility or cooperative for its services and to
27    payment for the Energy Assistance Charge.
28        (g)  The Department of Revenue  shall  deposit  into  the
29    Supplemental  Low-Income  Energy  Assistance  Fund all moneys
30    remitted to it in accordance  with  subsection  (f)  of  this
31    Section.
32        (h)  (Blank).   If  as  of  June  30,  2002  the  program
33    authorized by Section 4 of this Act has not been replaced  by
34    a  new  energy assistance program which is in operation, then
 
SB2235 Enrolled            -16-               LRB9215298WHcsA
 1    the General  Assembly  shall  review  the  program;  provided
 2    however,  that after that date, any public utility, municipal
 3    utility, or electric cooperative shall continue to assess  an
 4    Energy  Assistance Charge which was originally assessed on or
 5    before June 30, 2002 and which remains unpaid.
 6        On or before December  31,  2002,  the  Department  shall
 7    prepare  a report for the General Assembly on the expenditure
 8    of funds appropriated from the Low-Income  Energy  Assistance
 9    Block  Grant  Fund for the program authorized under Section 4
10    of this Act.
11        (i)  The Department of Revenue may establish  such  rules
12    as it deems necessary to implement this Section.
13        (j)  The Department of Commerce and Community Affairs may
14    establish  such rules as it deems necessary to implement this
15    Section.
16        (k)  The charges imposed by this Section shall only apply
17    to customers of  municipal  electric  or  gas  utilities  and
18    electric or gas cooperatives if the municipal electric or gas
19    utility  or  electric or gas cooperative makes an affirmative
20    decision to impose the charge.  If a  municipal  electric  or
21    gas  utility  or an electric cooperative makes an affirmative
22    decision to impose the charge provided by this  Section,  the
23    municipal  electric  or  gas  utility or electric cooperative
24    shall inform the Department of Revenue  in  writing  of  such
25    decision when it begins to impose the charge.  If a municipal
26    electric  or gas utility or electric or gas  cooperative does
27    not assess this charge, the Department may not use funds from
28    the Supplemental Low-Income Energy Assistance Fund to provide
29    benefits to its customers under  the  program  authorized  by
30    Section 4 of this Act.
31        In   its  use  of  federal  funds  under  this  Act,  the
32    Department may not cause a disproportionate  share  of  those
33    federal  funds  to  benefit customers of systems which do not
34    assess the charge provided by this Section.
 
SB2235 Enrolled            -17-               LRB9215298WHcsA
 1        This Section is  repealed  effective  December  31,  2007
 2    unless renewed by action of the General Assembly. The General
 3    Assembly  shall  consider  the  results  of  the  evaluations
 4    described in Section 8 in its deliberations.
 5    (Source: P.A. 90-561, eff. 12-16-97; 90-624, eff. 7-10-98.)

 6        (305 ILCS 20/7.1 rep.)
 7        (305 ILCS 20/9 rep.)
 8        (305 ILCS 20/12 rep.)
 9        (305 ILCS 20/14 rep.)
10        Section 10.  The Energy Assistance Act of 1989 is amended
11    by repealing Sections 7.1, 9, 12, and 14.

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

15        (20 ILCS 687/6-5)
16        (Section scheduled to be repealed on December 16, 2007)
17        Sec.  6-5. Renewable Energy Resources and Coal Technology
18    Development Assistance Charge.
19        (a)  Notwithstanding the provisions of Section 16-111  of
20    the  Public  Utilities  Act  but subject to subsection (e) of
21    this Section, each public utility, electric  cooperative,  as
22    defined  in  Section  3.4  of  the Electric Supplier Act, and
23    municipal utility, as referenced  in  Section  3-105  of  the
24    Public  Utilities  Act,  that  is  engaged in the delivery of
25    electricity or the distribution of  natural  gas  within  the
26    State  of  Illinois  shall, effective January 1, 1998, assess
27    each of its customer  accounts  a  monthly  Renewable  Energy
28    Resources  and Coal Technology Development Assistance Charge.
29    The delivering public  utility,  municipal  electric  or  gas
30    utility,  or electric or gas cooperative for a self-assessing
31    purchaser remains  subject  to  the  collection  of  the  fee
 
SB2235 Enrolled            -18-               LRB9215298WHcsA
 1    imposed  by  this  Section.   The  monthly charge shall be as
 2    follows:
 3             (1)  $0.05 per month on each account for residential
 4        electric service as defined in Section 13 of  the  Energy
 5        Assistance Act of 1989;
 6             (2)  $0.05 per month on each account for residential
 7        gas  service  as  defined  in  Section  13  of the Energy
 8        Assistance Act of 1989;
 9             (3)  $0.50   per   month   on   each   account   for
10        nonresidential electric service, as defined in Section 13
11        of the Energy Assistance Act of 1989, which had less than
12        10 megawatts of peak demand during the previous  calendar
13        year;
14             (4)  $0.50   per   month   on   each   account   for
15        nonresidential  gas  service, as defined in Section 13 of
16        the Energy Assistance Act of 1989, which had  distributed
17        to  it  less  than  4,000,000  therms  of  gas during the
18        previous calendar year;
19             (5)  $37.50  per   month   on   each   account   for
20        nonresidential electric service, as defined in Section 13
21        of  the  Energy  Assistance  Act  of  1989,  which had 10
22        megawatts or greater of peak demand during  the  previous
23        calendar year; and
24             (6)  $37.50   per   month   on   each   account  for
25        nonresidential gas service, as defined in Section  13  of
26        the Energy Assistance Act of 1989, which had 4,000,000 or
27        more  therms of gas distributed to it during the previous
28        calendar year.
29        (b)  The Renewable Energy Resources and  Coal  Technology
30    Development  Assistance  Charge  assessed by electric and gas
31    public utilities shall be  considered  a  charge  for  public
32    utility service.
33        (c)  Fifty  percent  of  the moneys collected pursuant to
34    this Section shall  be  deposited  in  the  Renewable  Energy
 
SB2235 Enrolled            -19-               LRB9215298WHcsA
 1    Resources  Trust  Fund  by  the  Department  of  Revenue. The
 2    remaining 50 percent of the moneys collected pursuant to this
 3    Section shall be deposited in the Coal Technology Development
 4    Assistance Fund by the Department of Revenue  for  use  under
 5    the Illinois Coal Technology Development Assistance Act.
 6        (d)  By  the 20th day of the month following the month in
 7    which the charges imposed by  this  Section  were  collected,
 8    each   utility   and  alternative  retail  electric  supplier
 9    collecting charges pursuant to this Section  shall  remit  to
10    the Department of Revenue for deposit in the Renewable Energy
11    Resources  Trust  Fund  and  the  Coal Technology Development
12    Assistance Fund all moneys received as payment of the  charge
13    provided  for  in  this  Section  on  a return prescribed and
14    furnished  by  the  Department  of   Revenue   showing   such
15    information  as  the  Department  of  Revenue  may reasonably
16    require.
17        (e)  The charges imposed by this Section shall only apply
18    to customers of  municipal  electric  or  gas  utilities  and
19    electric or gas cooperatives if the municipal electric or gas
20    utility  or  electric or gas cooperative makes an affirmative
21    decision to impose the charge. If a municipal electric or gas
22    utility  or  an  electric  or  gas   cooperative   makes   an
23    affirmative  decision  to  impose the charge provided by this
24    Section, the municipal electric or gas utility or electric or
25    gas cooperative shall inform the  Department  of  Revenue  in
26    writing of such decision when it begins to impose the charge.
27    If  a  municipal  electric  or gas utility or electric or gas
28    cooperative does not assess this charge, its customers  shall
29    not be eligible for the Renewable Energy Resources Program.
30        (f)  The  Department  of Revenue may establish such rules
31    as it deems necessary to implement this Section.
32    (Source: P.A. 90-561, eff. 12-16-97; 90-624, eff. 7-10-98.)

33        Section 20.  The  Public  Utilities  Act  is  amended  by
 
SB2235 Enrolled            -20-               LRB9215298WHcsA
 1    changing Sections 8-207, 16-108, and 16-111 as follows:

 2        (220 ILCS 5/8-207) (from Ch. 111 2/3, par. 8-207)
 3        Sec.  8-207. Any former residential customer whose gas or
 4    electric service was used to provide or control  the  primary
 5    source  of space heating in the dwelling and whose service is
 6    disconnected for nonpayment of  a  bill  or  a  deposit  from
 7    December 1 of the prior winter's heating season through April
 8    1  of  the  current  heating  season  shall  be  eligible for
 9    reconnection and a deferred  payment  arrangement  under  the
10    provisions   of   this  Section,  subject  to  the  following
11    limitations:
12        A utility shall not be required to reconnect service  to,
13    and  enter into a deferred payment arrangement with, a former
14    customer under the provisions  of  this  Section  (1)  except
15    between  November 1 and April 1 of the current heating season
16    for former customers who do not have applications pending for
17    the program described in Section 6 of the  Energy  Assistance
18    Act  of 1989, and except between October 1 and April 1 of the
19    current heating season for all former customers who  do  have
20    applications  pending  for the program described in Section 6
21    of the Energy Assistance Act of 1989 and who provide proof of
22    application to the utility, (2) in 2 consecutive  years,  (3)
23    unless  that former customer has paid at least 33 1/3% of the
24    amount billed for utility service rendered  by  that  utility
25    subsequent  to  December  1  of the prior year, or (4) in any
26    instance where the utility can show there has been  tampering
27    with  the  utility's  wires, pipes, meters (including locking
28    devices), or other service equipment and further  shows  that
29    the  former  customer  enjoyed the benefit of utility service
30    obtained in the aforesaid manner.
31        The  terms  and  conditions  of  any   deferred   payment
32    arrangements established by the utility and a former customer
33    shall  take  into  consideration the following factors, based
 
SB2235 Enrolled            -21-               LRB9215298WHcsA
 1    upon information available from current  utility  records  or
 2    provided by the former customer:
 3             (1)  the amount past due;
 4             (2)  the former customer's ability to pay;
 5             (3)  the former customer's payment history;
 6             (4)  the  reasons  for  the accumulation of the past
 7        due amounts; and
 8             (5)  any other  relevant  factors  relating  to  the
 9        former customer's circumstances.
10        After   the   former   customer's  eligibility  has  been
11    established in accordance with the first  paragraph  of  this
12    Section  and,  upon  the  establishment of a deferred payment
13    agreement, the former customer shall pay 1/3  of  the  amount
14    past  due  (including reconnecting charge, if any) and 1/3 of
15    any deposit required by the utility.
16        Upon the payment of 1/3 of the amount past due and 1/3 of
17    any deposit required by the utility,  the  former  customer's
18    service  shall  be  reconnected  as  soon  as  possible.  The
19    company and the former customer  shall  agree  to  a  payment
20    schedule  for  the  remaining  balances which will reasonably
21    allow the  former  customer  to  make  the  payments  on  the
22    remainder  of  the  deposit  and  the  past due balance while
23    paying  current  bills  during  the  winter  heating  season.
24    However,  the  utility  is  not  obliged  to   make   payment
25    arrangements  extending  beyond  the following November.  The
26    utility shall allow the former customer a minimum of 4 months
27    in which to retire the past due balance and 3 months in which
28    to pay the remainder of the  deposit.   The  former  customer
29    shall  also  be informed that payment on the amounts past due
30    and the deposit, if any, plus the current bills must be  paid
31    by  the  due  date  or  the  customer may face termination of
32    service pursuant to this Section and Section 8-206.
33        The  Commission  shall  develop  rules  to   govern   the
34    reconnection   of   a  former  customer  who  demonstrates  a
 
SB2235 Enrolled            -22-               LRB9215298WHcsA
 1    financial inability to meet the requirement  of  1/3  of  the
 2    amount  past  due  and  1/3  of  any deposit requested by the
 3    utility.  The Commission's rules shall establish a  means  by
 4    which   the   former   customer's   utility  service  may  be
 5    reconnected through the payment of a  reasonable  amount  and
 6    upon entering  into a deferred payment agreement.
 7        Any  payment  agreement  made shall be in writing, with a
 8    copy provided to the former customer.  The renegotiation  and
 9    reinstatement of a customer and the establishment of a budget
10    payment  plan  shall  be pursuant to rules established by the
11    Commission.
12        Not later than September 15 of each year, every  gas  and
13    electric  utility  shall  conduct  a  survey  of  all  former
14    residential  customers whose gas or electric service was used
15    to provide or control the primary source of space heating  in
16    the dwelling and whose gas or electric service was terminated
17    for  nonpayment  of  a bill or deposit from December 1 of the
18    previous year to September 15 of that year and where  service
19    at  that  premises  has  not  been  restored.  Not later than
20    October 1 of each year the utility shall notify each of these
21    former customers that the gas or  electric  service  will  be
22    restored  by the company for the coming heating season if the
23    former customer contacts the utility and  makes  arrangements
24    with  the  utility  for  reconnection  of  service  under the
25    conditions set forth in this Section. A utility shall  notify
26    the  former  customer  or an adult member of the household by
27    personal visit, telephone contact or mailing of a  letter  by
28    first  class  mail  to  the last known address of that former
29    customer.   The  utility  shall  keep  records  which   would
30    indicate the date, form and the results of such contact.
31        Each  gas and electric utility which has former customers
32    affected  by  this  Section  shall  file  reports  with   the
33    Commission  providing  such information as the Commission may
34    deem appropriate. The Commission shall notify  each  gas  and
 
SB2235 Enrolled            -23-               LRB9215298WHcsA
 1    electric  utility  prior  to August 1 of each year concerning
 2    the information which is to be included  in  the  report  for
 3    that year.
 4        In  no  event  shall  any  actions  taken by a utility in
 5    compliance with this Section be deemed to abrogate or in  any
 6    way  interfere with the utility's rights to pursue the normal
 7    collection processes otherwise available to it.
 8        The Commission shall promulgate rules to  implement  this
 9    Section.
10    (Source: P.A. 86-782; 87-469.)

11        (220 ILCS 5/16-108)
12        Sec.  16-108.  Recovery  of  costs  associated  with  the
13    provision of delivery services.
14        (a)  An  electric  utility shall file a delivery services
15    tariff with the Commission at least 210  days  prior  to  the
16    date  that  it  is  required  to begin offering such services
17    pursuant to this Act.  An electric utility shall provide  the
18    components  of  delivery  services  that  are  subject to the
19    jurisdiction of the Federal Energy Regulatory  Commission  at
20    the  same  prices,  terms  and  conditions  set  forth in its
21    applicable tariff as approved or allowed into effect by  that
22    Commission. The Commission shall otherwise have the authority
23    pursuant  to  Article  IX  to review, approve, and modify the
24    prices, terms and conditions of those components of  delivery
25    services  not  subject  to  the  jurisdiction  of the Federal
26    Energy Regulatory  Commission,  including  the  authority  to
27    determine  the  extent to which such delivery services should
28    be offered  on  an  unbundled  basis.   In  making  any  such
29    determination  the  Commission  shall consider, at a minimum,
30    the effect of additional unbundling on (i) the  objective  of
31    just  and  reasonable rates, (ii) electric utility employees,
32    and (iii) the development of competitive markets for electric
33    energy services in Illinois.
 
SB2235 Enrolled            -24-               LRB9215298WHcsA
 1        (b)  The Commission shall enter an  order  approving,  or
 2    approving  as modified, the delivery services tariff no later
 3    than 30 days prior to the date on which the electric  utility
 4    must  commence  offering  such  services.  The Commission may
 5    subsequently modify such tariff pursuant to this Act.
 6        (c)  The electric  utility's  tariffs  shall  define  the
 7    classes  of  its  customers for purposes of delivery services
 8    charges.   Delivery  services  shall  be  priced   and   made
 9    available  to all retail customers electing delivery services
10    in each such class on a nondiscriminatory basis regardless of
11    whether the retail customer chooses the electric utility,  an
12    affiliate  of  the electric utility, or another entity as its
13    supplier of electric power and energy.  Charges for  delivery
14    services  shall  be  cost based, and shall allow the electric
15    utility to recover the costs of providing  delivery  services
16    through  its  charges  to its delivery service customers that
17    use the facilities and services associated with  such  costs.
18    Such  costs  shall include the costs of owning, operating and
19    maintaining transmission  and  distribution  facilities.  The
20    Commission  shall also be authorized to consider whether, and
21    if so to what extent, the following costs  are  appropriately
22    included  in  the electric utility's delivery services rates:
23    (i) the costs of that portion of generation  facilities  used
24    for  the production and absorption of reactive power in order
25    that retail  customers  located  in  the  electric  utility's
26    service  area  can  receive  electric  power  and energy from
27    suppliers other than the electric utility, and (ii) the costs
28    associated  with  the  use  and  redispatch   of   generation
29    facilities  to  mitigate  constraints  on the transmission or
30    distribution system in order that retail customers located in
31    the electric utility's  service  area  can  receive  electric
32    power  and  energy  from  suppliers  other  than the electric
33    utility.  Nothing in this subsection shall  be  construed  as
34    directing  the  Commission  to  allocate  any  of  the  costs
 
SB2235 Enrolled            -25-               LRB9215298WHcsA
 1    described  in  (i) or (ii) that are found to be appropriately
 2    included in the electric utility's delivery services rates to
 3    any particular customer group or geographic area  in  setting
 4    delivery services rates.
 5        (d)  The  Commission  shall  establish charges, terms and
 6    conditions for delivery services that are just and reasonable
 7    and  shall  take   into   account   customer   impacts   when
 8    establishing such charges. In establishing charges, terms and
 9    conditions  for  delivery services, the Commission shall take
10    into account voltage level differences.   A  retail  customer
11    shall have the option to request to purchase electric service
12    at  any  delivery  service voltage reasonably and technically
13    feasible from the electric facilities serving that customer's
14    premises provided  that  there  are  no  significant  adverse
15    impacts  upon  system  reliability  or  system efficiency.  A
16    retail customer shall also have  the  option  to  request  to
17    purchase  electric  service  at any point of delivery that is
18    reasonably and technically feasible provided that  there  are
19    no  significant  adverse  impacts  on  system  reliability or
20    efficiency. Such requests shall not be unreasonably denied.
21        (e)  Electric  utilities  shall  recover  the  costs   of
22    installing,  operating  or  maintaining  facilities  for  the
23    particular   benefit   of   one  or  more  delivery  services
24    customers, including without limitation any costs incurred in
25    complying with  a  customer's  request  to  be  served  at  a
26    different voltage level, directly from the retail customer or
27    customers  for  whose benefit the costs were incurred, to the
28    extent such costs  are  not  recovered  through  the  charges
29    referred to in subsections (c) and (d) of this Section.
30        (f)  An  electric  utility  shall  be  entitled  but  not
31    required  to implement transition charges in conjunction with
32    the offering of delivery services pursuant to Section 16-104.
33    If an electric  utility  implements  transition  charges,  it
34    shall  implement  such  charges  for  all  delivery  services
 
SB2235 Enrolled            -26-               LRB9215298WHcsA
 1    customers  and for all customers described in subsection (h),
 2    but shall not implement  transition  charges  for  power  and
 3    energy  that  a  retail  customer  takes from cogeneration or
 4    self-generation facilities located on that retail  customer's
 5    premises, if such facilities meet the following criteria:
 6             (i)  the  cogeneration or self-generation facilities
 7        serve a single retail customer and are  located  on  that
 8        retail   customer's   premises   (for  purposes  of  this
 9        subparagraph and  subparagraph  (ii),  an  industrial  or
10        manufacturing   retail   customer   and   a  third  party
11        contractor  that  is  served  by   such   industrial   or
12        manufacturing customer through such retail customer's own
13        electrical     distribution    facilities    under    the
14        circumstances  described  in  subsection  (vi)   of   the
15        definition  of "alternative retail electric supplier" set
16        forth in Section 16-102, shall  be  considered  a  single
17        retail customer);
18             (ii)  the cogeneration or self-generation facilities
19        either  (A)  are  sized  pursuant  to  generally accepted
20        engineering   standards   for   the   retail   customer's
21        electrical load at that  premises  (taking  into  account
22        standby  or  other  reliability considerations related to
23        that retail customer's operations at that site) or (B) if
24        the facility is a cogeneration facility  located  on  the
25        retail  customer's  premises,  the retail customer is the
26        thermal host for that facility and the facility has  been
27        designed  to  meet  that retail customer's thermal energy
28        requirements resulting in electrical output  beyond  that
29        retail  customer's  electrical  demand  at that premises,
30        comply  with  the  operating  and  efficiency   standards
31        applicable  to "qualifying facilities" specified in title
32        18 Code of Federal  Regulations  Section  292.205  as  in
33        effect  on  the  effective date of this amendatory Act of
34        1999;
 
SB2235 Enrolled            -27-               LRB9215298WHcsA
 1             (iii)  the retail customer  on  whose  premises  the
 2        facilities  are  located either has an exclusive right to
 3        receive, and corresponding obligation to pay for, all  of
 4        the  electrical  capacity of the facility, or in the case
 5        of a cogeneration facility that has been designed to meet
 6        the retail customer's thermal energy requirements at that
 7        premises, an identified amount of the electrical capacity
 8        of the facility, over a minimum 5-year period; and
 9             (iv)  if the cogeneration facility is sized for  the
10        retail  customer's  thermal  load  at  that  premises but
11        exceeds the electrical load, any sales of excess power or
12        energy are made only at wholesale,  are  subject  to  the
13        jurisdiction of the Federal Energy Regulatory Commission,
14        and   are  not  for  the  purpose  of  circumventing  the
15        provisions of this subsection (f).
16    If a generation  facility  located  at  a  retail  customer's
17    premises  does  not  meet  the  above  criteria,  an electric
18    utility implementing transition  charges  shall  implement  a
19    transition  charge  until December 31, 2006 for any power and
20    energy taken by such retail customer from such facility as if
21    such power and energy had  been  delivered  by  the  electric
22    utility.    Provided,  however,  that  an  industrial  retail
23    customer that is taking power from a generation facility that
24    does not meet the above criteria but that is located on  such
25    customer's  premises  will  not  be  subject  to a transition
26    charge for the power and energy taken by such retail customer
27    from such generation facility if the facility does not  serve
28    any  other retail customer and either was installed on behalf
29    of the customer and for its own use prior to January 1, 1997,
30    or  is  both  predominantly  fueled  by  byproducts  of  such
31    customer's manufacturing process at such premises  and  sells
32    or  offers an average of 300 megawatts or more of electricity
33    produced from such generation  facility  into  the  wholesale
34    market.  Such  charges  shall  be  calculated  as provided in
 
SB2235 Enrolled            -28-               LRB9215298WHcsA
 1    Section 16-102, and shall be collected on each  kilowatt-hour
 2    delivered  under  a  delivery  services  tariff  to  a retail
 3    customer from the date  the  customer  first  takes  delivery
 4    services  until  December  31,  2006  except  as  provided in
 5    subsection (h) of this Section. Provided,  however,  that  an
 6    electric  utility,  other  than an electric utility providing
 7    service to at least 1,000,000  customers  in  this  State  on
 8    January  1,  1999, shall be entitled to petition for entry of
 9    an order by the Commission authorizing the  electric  utility
10    to  implement  transition  charges  for  an additional period
11    ending no later than December 31, 2008.  The electric utility
12    shall file its petition with supporting evidence  no  earlier
13    than  16  months,  and  no  later  than  12  months, prior to
14    December 31, 2006.  The Commission shall hold  a  hearing  on
15    the  electric utility's petition and shall enter its order no
16    later than  8  months  after  the  petition  is  filed.   The
17    Commission  shall  determine  whether  and to what extent the
18    electric utility shall be authorized to implement  transition
19    charges   for  an  additional  period.   The  Commission  may
20    authorize  the  electric  utility  to  implement   transition
21    charges  for  some or all of the additional period, and shall
22    determine the mitigation factors to be used  in  implementing
23    such  transition charges; provided, that the Commission shall
24    not authorize mitigation factors less than 110% of  those  in
25    effect  during  the  12  months  ended December 31, 2006.  In
26    making its determination, the Commission shall  consider  the
27    following  factors:   the  necessity  to implement transition
28    charges for an additional period in  order  to  maintain  the
29    financial  integrity of the electric utility; the prudence of
30    the electric utility's actions in reducing  its  costs  since
31    the  effective  date  of  this  amendatory  Act  of 1997; the
32    ability of the electric utility to provide safe, adequate and
33    reliable service to retail customers in its service area; and
34    the impact on competition of allowing the electric utility to
 
SB2235 Enrolled            -29-               LRB9215298WHcsA
 1    implement transition charges for the additional period.
 2        (g)  The  electric  utility  shall  file   tariffs   that
 3    establish  the transition charges to be paid by each class of
 4    customers to the electric utility  in  conjunction  with  the
 5    provision   of  delivery  services.  The  electric  utility's
 6    tariffs  shall  define  the  classes  of  its  customers  for
 7    purposes of  calculating  transition  charges.  The  electric
 8    utility's  tariffs  shall  provide  for  the  calculation  of
 9    transition  charges  on  a  customer-specific  basis  for any
10    retail customer  whose  average  monthly  maximum  electrical
11    demand  on  the electric utility's system during the 6 months
12    with  the  customer's  highest  monthly  maximum   electrical
13    demands   equals   or  exceeds  3.0  megawatts  for  electric
14    utilities having more than 1,000,000 customers, and for other
15    electric utilities for  any  customer  that  has  an  average
16    monthly  maximum  electrical demand on the electric utility's
17    system of one megawatt or  more,  and  (A)  for  which  there
18    exists  data  on  the  customer's  usage  during  the 3 years
19    preceding the date that the customer became eligible to  take
20    delivery services, or (B) for which there does not exist data
21    on the customer's usage during the 3 years preceding the date
22    that  the customer became eligible to take delivery services,
23    if in the electric utility's reasonable judgment there exists
24    comparable usage information or a sufficient basis to develop
25    such information, and  further  provided  that  the  electric
26    utility   can  require  customers  for  which  an  individual
27    calculation is made to sign  contracts  that  set  forth  the
28    transition charges to be paid by the customer to the electric
29    utility pursuant to the tariff.
30        (h)  An  electric  utility shall also be entitled to file
31    tariffs that allow it  to  collect  transition  charges  from
32    retail  customers in the electric utility's service area that
33    do not take delivery services but that take electric power or
34    energy from an alternative retail electric supplier  or  from
 
SB2235 Enrolled            -30-               LRB9215298WHcsA
 1    an  electric utility other than the electric utility in whose
 2    service area the customer is located.  Such charges shall  be
 3    calculated,  in  accordance with the definition of transition
 4    charges in Section 16-102, for the period of  time  that  the
 5    customer  would  be obligated to pay transition charges if it
 6    were taking delivery services, except that no  deduction  for
 7    delivery services revenues shall be made in such calculation,
 8    and  usage data from the customer's class shall be used where
 9    historical usage data is not  available  for  the  individual
10    customer.   The  customer  shall  be  obligated  to  pay such
11    charges on a lump sum basis on or before the  date  on  which
12    the  customer  commences to take service from the alternative
13    retail electric supplier or other electric utility, provided,
14    that the electric utility in whose service area the  customer
15    is  located  shall offer the customer the option of signing a
16    contract pursuant to which the  customer  pays  such  charges
17    ratably  over the period in which the charges would otherwise
18    have applied.
19        (i)  An electric utility shall be entitled to add to  the
20    bills  of  delivery  services  customers  charges pursuant to
21    Sections  9-221,  9-222  (except  as  provided   in   Section
22    9-222.1),  and Section 16-114 of this Act, Section 5-5 of the
23    Electricity Infrastructure Maintenance Fee Law,  Section  6-5
24    of   the   Renewable  Energy,  Energy  Efficiency,  and  Coal
25    Resources Development Law of 1997,  and  Section  13  of  the
26    Energy Assistance Act of 1989.
27        (j)  If a retail customer that obtains electric power and
28    energy   from   cogeneration  or  self-generation  facilities
29    installed for its own use  on  or  before  January  1,  1997,
30    subsequently   takes   service  from  an  alternative  retail
31    electric supplier or  an  electric  utility  other  than  the
32    electric  utility  in  whose  service  area  the  customer is
33    located for any portion of the customer's electric power  and
34    energy  requirements  formerly obtained from those facilities
 
SB2235 Enrolled            -31-               LRB9215298WHcsA
 1    (including that amount purchased from the utility in lieu  of
 2    such  generation  and not as standby power purchases, under a
 3    cogeneration  displacement  tariff  in  effect  as   of   the
 4    effective   date   of  this  amendatory  Act  of  1997),  the
 5    transition   charges   otherwise   applicable   pursuant   to
 6    subsections (f), (g), or (h) of this  Section  shall  not  be
 7    applicable  in  any  year  to  that portion of the customer's
 8    electric power and energy requirements formerly obtained from
 9    those  facilities,  provided,  that  for  purposes  of   this
10    subsection  (j),  such  portion  shall not exceed the average
11    number  of  kilowatt-hours  per  year   obtained   from   the
12    cogeneration or self-generation facilities during the 3 years
13    prior  to  the date on which the customer became eligible for
14    delivery services, except as provided in  subsection  (f)  of
15    Section 16-110.
16    (Source: P.A. 90-561, eff. 12-16-97; 91-50, eff. 6-30-99.)

17        (220 ILCS 5/16-111)
18        Sec.  16-111. Rates and restructuring transactions during
19    mandatory transition period.
20        (a)  During    the    mandatory    transition     period,
21    notwithstanding  any provision of Article IX of this Act, and
22    except as provided in subsections (b), (d), (e), and  (f)  of
23    this   Section,   the  Commission  shall  not  (i)  initiate,
24    authorize or order any change by way of increase (other  than
25    in  connection  with  a  request  for rate increase which was
26    filed after September 1, 1997 but prior to October 15,  1997,
27    by  an electric utility serving less than 12,500 customers in
28    this State),  (ii)  initiate  or,  unless  requested  by  the
29    electric  utility,  authorize  or  order any change by way of
30    decrease, restructuring or unbundling (except as provided  in
31    Section  16-109A),  in the rates of any electric utility that
32    were in effect on October 1, 1996,  or  (iii)  in  any  order
33    approving  any  application  for a merger pursuant to Section
 
SB2235 Enrolled            -32-               LRB9215298WHcsA
 1    7-204 that was  pending  as  of  May  16,  1997,  impose  any
 2    condition  requiring any filing for an increase, decrease, or
 3    change in, or other review of, an electric utility's rates or
 4    enforce any such  condition  of  any  such  order;  provided,
 5    however,   that   this  subsection  shall  not  prohibit  the
 6    Commission from:
 7             (1)  approving  the  application  of   an   electric
 8        utility  to  implement  an  alternative to rate of return
 9        regulation or a  regulatory  mechanism  that  rewards  or
10        penalizes  the  electric  utility  through  adjustment of
11        rates based on utility performance, pursuant  to  Section
12        9-244;
13             (2)  authorizing  an  electric  utility to eliminate
14        its fuel adjustment  clause  and  adjust  its  base  rate
15        tariffs in accordance with subsection (b), (d), or (f) of
16        Section  9-220  of  this  Act, to fix its fuel adjustment
17        factor in accordance with subsection (c) of Section 9-220
18        of this Act, or to eliminate its fuel  adjustment  clause
19        in  accordance  with  subsection  (e) of Section 9-220 of
20        this Act;
21             (3)  ordering  into  effect  tariffs  for   delivery
22        services   and  transition  charges  in  accordance  with
23        Sections 16-104 and  16-108,  for  real-time  pricing  in
24        accordance  with  Section 16-107, or the options required
25        by Section 16-110 and subsection  (n) of 16-112, allowing
26        a billing experiment in accordance with  Section  16-106,
27        or modifying delivery services tariffs in accordance with
28        Section 16-109; or
29             (4)  ordering  or allowing into effect any tariff to
30        recover charges pursuant to  Sections  9-201.5,  9-220.1,
31        9-221,  9-222  (except  as  provided in Section 9-222.1),
32        16-108, and 16-114  of  this  Act,  Section  5-5  of  the
33        Electricity  Infrastructure  Maintenance Fee Law, Section
34        6-5 of the Renewable Energy, Energy Efficiency, and  Coal
 
SB2235 Enrolled            -33-               LRB9215298WHcsA
 1        Resources  Development Law of 1997, and Section 13 of the
 2        Energy Assistance Act of 1989.
 3        (b)  Notwithstanding the provisions  of  subsection  (a),
 4    each  Illinois  electric  utility  serving  more  than 12,500
 5    customers  in  Illinois  shall  file  tariffs  (i)  reducing,
 6    effective August 1, 1998, each component of its base rates to
 7    residential retail customers by 15% from the  base  rates  in
 8    effect  immediately  prior to January 1, 1998 and (ii) if the
 9    public utility provides electric service  to  (A)  more  than
10    500,000  customers  but less than 1,000,000 customers in this
11    State on January 1, 1999, reducing, effective  May  1,  2002,
12    each  component  of  its  base  rates  to  residential retail
13    customers by an additional 5% from the base rates  in  effect
14    immediately  prior  to  January  1,  1998,  or  (B)  at least
15    1,000,000  customers  in  this  State  on  January  1,  1999,
16    reducing, effective October 1, 2001, each  component  of  its
17    base  rates  to residential retail customers by an additional
18    5% from the base rates in effect immediately prior to January
19    1, 1998. Provided, however, that (A) if an electric utility's
20    average residential retail rate is less than or equal to  the
21    average  residential  retail  rate  for  a  group  of Midwest
22    Utilities  (consisting   of   all   investor-owned   electric
23    utilities   with  annual  system  peaks  in  excess  of  1000
24    megawatts in the States of Illinois, Indiana, Iowa, Kentucky,
25    Michigan, Missouri,  Ohio,  and  Wisconsin),  based  on  data
26    reported   on   Form  1  to  the  Federal  Energy  Regulatory
27    Commission for calendar year 1995,  then  it  shall  only  be
28    required  to  file  tariffs (i) reducing, effective August 1,
29    1998, each component of its base rates to residential  retail
30    customers  by  5%  from  the base rates in effect immediately
31    prior to January 1, 1998, (ii) reducing, effective October 1,
32    2000, each component of its base rates to residential  retail
33    customers  by  the  lesser  of 5% of the base rates in effect
34    immediately prior to January 1, 1998  or  the  percentage  by
 
SB2235 Enrolled            -34-               LRB9215298WHcsA
 1    which  the electric utility's average residential retail rate
 2    exceeds the average residential retail rate  of  the  Midwest
 3    Utilities,  based  on  data reported on Form 1 to the Federal
 4    Energy Regulatory Commission  for  calendar  year  1999,  and
 5    (iii)  reducing, effective October 1, 2002, each component of
 6    its  base  rates  to  residential  retail  customers  by   an
 7    additional amount equal to the lesser of 5% of the base rates
 8    in  effect  immediately  prior  to  January  1,  1998  or the
 9    percentage  by   which   the   electric   utility's   average
10    residential  retail  rate  exceeds  the  average  residential
11    retail  rate of the Midwest Utilities, based on data reported
12    on Form 1 to the Federal  Energy  Regulatory  Commission  for
13    calendar year 2001; and (B) if the average residential retail
14    rate  of  an  electric  utility  serving  between 150,000 and
15    250,000 retail customers in this State on January 1, 1995  is
16    less  than  or equal to 90% of the average residential retail
17    rate for the Midwest Utilities, based  on  data  reported  on
18    Form  1  to  the  Federal  Energy  Regulatory  Commission for
19    calendar year 1995, then it shall only be  required  to  file
20    tariffs   (i)   reducing,  effective  August  1,  1998,  each
21    component of its base rates to residential  retail  customers
22    by  2%  from  the  base  rates in effect immediately prior to
23    January 1, 1998; (ii) reducing, effective  October  1,  2000,
24    each  component  of  its  base  rates  to  residential retail
25    customers by 2% from the  base  rate  in  effect  immediately
26    prior  to  January  1,  1998;  and  (iii) reducing, effective
27    October  1,  2002,  each  component  of  its  base  rates  to
28    residential retail customers by 1% from  the  base  rates  in
29    effect  immediately  prior  to  January  1,  1998.  Provided,
30    further,  that  any  electric utility for which a decrease in
31    base rates has been or is placed into effect between  October
32    1, 1996 and the dates specified in the preceding sentences of
33    this  subsection,  other than pursuant to the requirements of
34    this subsection, shall be entitled to reduce  the  amount  of
 
SB2235 Enrolled            -35-               LRB9215298WHcsA
 1    any  reduction  or  reductions  in its base rates required by
 2    this subsection by the amount of  such  other  decrease.  The
 3    tariffs required under this subsection shall be filed 45 days
 4    in advance of the effective date. Notwithstanding anything to
 5    the  contrary in Section 9-220 of this Act, no restatement of
 6    base rates in conjunction with  the  elimination  of  a  fuel
 7    adjustment clause under that Section shall result in a lesser
 8    decrease in base rates than customers would otherwise receive
 9    under   this  subsection  had  the  electric  utility's  fuel
10    adjustment clause not been eliminated.
11        (c)  Any utility reducing its base rates by 15% on August
12    1,  1998  pursuant  to  subsection  (b)  shall  include   the
13    following  statement  on  its bills for residential customers
14    from August 1 through December 31, 1998: "Effective August 1,
15    1998, your rates have been reduced by  15%  by  the  Electric
16    Service Customer Choice and Rate Relief Law of 1997 passed by
17    the  Illinois  General  Assembly.".  Any utility reducing its
18    base rates by 5% on August 1, 1998,  pursuant  to  subsection
19    (b)  shall  include  the following statement on its bills for
20    residential customers from  August  1  through  December  31,
21    1998:   "Effective  August  1,  1998,  your  rates  have been
22    reduced by 5% by the Electric  Service  Customer  Choice  and
23    Rate  Relief  Law  of  1997  passed  by  the Illinois General
24    Assembly.".
25        Any utility reducing its base rates by 2%  on  August  1,
26    1998  pursuant  to subsection (b) shall include the following
27    statement on its bills for residential customers from  August
28    1  through December 31, 1998: "Effective August 1, 1998, your
29    rates have  been  reduced  by  2%  by  the  Electric  Service
30    Customer  Choice  and  Rate  Relief Law of 1997 passed by the
31    Illinois General Assembly.".
32        (d)  During the  mandatory  transition  period,  but  not
33    before  January  1, 2000, and notwithstanding  the provisions
34    of  subsection  (a),  an  electric  utility  may  request  an
 
SB2235 Enrolled            -36-               LRB9215298WHcsA
 1    increase  in  its  base  rates  if   the   electric   utility
 2    demonstrates  that  the  2-year average of its earned rate of
 3    return  on  common  equity,  calculated  as  its  net  income
 4    applicable to common stock divided  by  the  average  of  its
 5    beginning  and  ending  balances  of common equity using data
 6    reported in the electric  utility's  Form  1  report  to  the
 7    Federal  Energy  Regulatory Commission but adjusted to remove
 8    the effects of accelerated depreciation  or  amortization  or
 9    other  transition  or  mitigation measures implemented by the
10    electric utility pursuant to subsection (g) of  this  Section
11    and  the effect of any refund paid pursuant to subsection (e)
12    of this Section, is below the 2-year average for the  same  2
13    years of the monthly average yields of 30-year  U.S. Treasury
14    bonds  published  by  the  Board of Governors of the  Federal
15    Reserve System in its  weekly  H.15  Statistical  Release  or
16    successor   publication.  The  Commission  shall  review  the
17    electric utility's request, and may review the  justness  and
18    reasonableness   of  all  rates  for  tariffed  services,  in
19    accordance with the provisions of Article  IX  of  this  Act,
20    provided  that  the  Commission shall consider any special or
21    negotiated adjustments to the revenue requirement  agreed  to
22    between  the  electric  utility  and the other parties to the
23    proceeding.   In  setting  rates  under  this  Section,   the
24    Commission  shall  exclude  the  costs  and revenues that are
25    associated with  competitive  services  and  any  billing  or
26    pricing experiments conducted under Section 16-106.
27        (e)  For   the   purposes  of  this  subsection  (e)  all
28    calculations and  comparisons  shall  be  performed  for  the
29    Illinois operations of multijurisdictional utilities.  During
30    the   mandatory   transition   period,   notwithstanding  the
31    provisions of subsection (a), if the  2-year  average  of  an
32    electric  utility's  earned  rate of return on common equity,
33    calculated as its  net  income  applicable  to  common  stock
34    divided  by  the average of its beginning and ending balances
 
SB2235 Enrolled            -37-               LRB9215298WHcsA
 1    of  common  equity  using  data  reported  in  the   electric
 2    utility's  Form  1  report  to  the Federal Energy Regulatory
 3    Commission but adjusted to remove the effect  of  any  refund
 4    paid  under  this  subsection  (e),  and  further adjusted to
 5    include the annual amortization of any difference between the
 6    consideration received  by  an  affiliated  interest  of  the
 7    electric  utility in the sale of an asset which had been sold
 8    or transferred by the  electric  utility  to  the  affiliated
 9    interest  subsequent to the effective date of this amendatory
10    Act of 1997 and the consideration for which  such  asset  had
11    been  sold  or  transferred  to the affiliated interest, with
12    such difference to be amortized ratably from the date of  the
13    sale by the affiliated interest to December 31, 2006, exceeds
14    the  2-year  average of the Index for the same 2 years by 1.5
15    or more percentage points, the electric  utility  shall  make
16    refunds to customers beginning the first billing day of April
17    in  the  following  year in the manner described in paragraph
18    (3) of this subsection. For purposes of this subsection  (e),
19    the  "Index"  shall  be the sum of (A) the average for the 12
20    months ended September 30 of the monthly  average  yields  of
21    30-year  U.S.  Treasury  bonds  published  by  the  Board  of
22    Governors  of  the  Federal Reserve System in its weekly H.15
23    Statistical Release or successor publication  for  each  year
24    1998  through  2004,  and  (B) (i) 4.00 percentage points for
25    each of  the  12-month  periods  ending  September  30,  1998
26    through  September  30, 1999 or 8.00 percentage points if the
27    electric utility's average residential retail  rate  is  less
28    than  or  equal to 90% of the average residential retail rate
29    for the "Midwest Utilities",  as  that  term  is  defined  in
30    subsection  (b)  of  this  Section, based on data reported on
31    Form 1  to  the  Federal  Energy  Regulatory  Commission  for
32    calendar  year  1995, and the electric utility served between
33    150,000 and 250,000 retail customers on January 1, 1995, (ii)
34    7.00 percentage points  for  each  of  the  12-month  periods
 
SB2235 Enrolled            -38-               LRB9215298WHcsA
 1    ending  September  30, 2000 through September 30, 2004 if the
 2    electric utility was providing service to at least  1,000,000
 3    customers   in  this  State  on  January  1,  1999,  or  9.00
 4    percentage  points  if   the   electric   utility's   average
 5    residential  retail  rate is less than or equal to 90% of the
 6    average residential retail rate for the "Midwest  Utilities",
 7    as  that  term  is defined in subsection (b) of this Section,
 8    based on data reported  on  Form  1  to  the  Federal  Energy
 9    Regulatory Commission for calendar year 1995 and the electric
10    utility  served  between 150,000 and 250,000 retail customers
11    in this State on January  1,  1995,  (iii)  11.00  percentage
12    points  for each of the 12-month periods ending September 30,
13    2000 through September 30, 2004, but  only  if  the  electric
14    utility's  average  residential  retail  rate is less than or
15    equal to 90% of the average residential retail rate  for  the
16    "Midwest  Utilities",  as  that term is defined in subsection
17    (b) of this Section, based on data reported on Form 1 to  the
18    Federal  Energy Regulatory Commission for calendar year 1995,
19    the electric  utility  served  between  150,000  and  250,000
20    retail  customers  in  this State on January 1, 1995, and the
21    electric utility offers delivery services on or  before  June
22    1,  2000 to retail customers whose annual electric energy use
23    comprises 33% of the kilowatt hour sales  to  that  group  of
24    retail customers that are classified under Division D, Groups
25    20  through 39 of the Standard Industrial Classifications set
26    forth  in  the  Standard  Industrial  Classification   Manual
27    published  by  the  United  States  Office  of Management and
28    Budget, excluding the kilowatt hour sales to those  customers
29    that  are  eligible for delivery services pursuant to Section
30    16-104(a)(1)(i),  and  offers  delivery   services   to   its
31    remaining  retail  customers  classified  under  Division  D,
32    Groups  20  through  39  on  or  before October 1, 2000, and,
33    provided further, that the electric utility  commits  not  to
34    petition  pursuant to Section 16-108(f) for entry of an order
 
SB2235 Enrolled            -39-               LRB9215298WHcsA
 1    by  the  Commission  authorizing  the  electric  utility   to
 2    implement  transition  charges for an additional period after
 3    December 31, 2006, or (iv) 5.00 percentage points for each of
 4    the  12-month  periods  ending  September  30,  2000  through
 5    September 30, 2004 for all other electric utilities  or  7.00
 6    percentage points for such utilities for each of the 12-month
 7    periods  ending September 30, 2000 through September 30, 2004
 8    for any such utility that commits not to petition pursuant to
 9    Section 16-108(f) for entry of an  order  by  the  Commission
10    authorizing  the  electric  utility  to  implement transition
11    charges for an additional period after December 31, 2006.
12             (1)  For purposes of this  subsection  (e),  "excess
13        earnings"  means  the  difference  between (A) the 2-year
14        average of the electric utility's earned rate  of  return
15        on  common equity, less (B) the 2-year average of the sum
16        of (i) the Index applicable to each of the  2  years  and
17        (ii)   1.5  percentage  points;  provided,  that  "excess
18        earnings" shall never be less than zero.
19             (2)  On or before March 31 of each year 2000 through
20        2005 each electric utility shall file a report  with  the
21        Commission  showing  its  earned rate of return on common
22        equity, calculated in accordance  with  this  subsection,
23        for  the  preceding calendar year and the average for the
24        preceding 2 calendar years.
25             (3)  If an electric  utility  has  excess  earnings,
26        determined  in  accordance with paragraphs (1) and (2) of
27        this subsection, the refunds which the  electric  utility
28        shall  pay   to its customers beginning the first billing
29        day of April in the following year  shall  be  calculated
30        and applied as follows:
31                  (i)  The  electric  utility's  excess  earnings
32             shall  be multiplied by the average of the beginning
33             and ending balances of the electric utility's common
34             equity  for  the  2-year  period  in  which   excess
 
SB2235 Enrolled            -40-               LRB9215298WHcsA
 1             earnings occurred.
 2                  (ii)  The  result  of  the  calculation  in (i)
 3             shall be multiplied by 0.50 and then  divided  by  a
 4             number  equal  to  1  minus  the  electric utility's
 5             composite federal and State income tax rate.
 6                  (iii)  The result of the  calculation  in  (ii)
 7             shall   be  divided  by  the  sum  of  the  electric
 8             utility's projected  total  kilowatt-hour  sales  to
 9             retail customers plus projected kilowatt-hours to be
10             delivered  to delivery services customers over a one
11             year period beginning with the first billing date in
12             April in the succeeding year to  determine  a  cents
13             per kilowatt-hour refund factor.
14                  (iv)  The cents per kilowatt-hour refund factor
15             calculated   in  (iii)  shall  be  credited  to  the
16             electric utility's customers by applying the  factor
17             on    the   customer's   monthly   bills   to   each
18             kilowatt-hour sold  or  delivered  until  the  total
19             amount   calculated   in   (ii)  has  been  paid  to
20             customers.
21        (f)  During the mandatory transition period, an  electric
22    utility  may  file  revised tariffs reducing the price of any
23    tariffed service offered by  the  electric  utility  for  all
24    customers  taking  that  tariffed  service,  which  shall  be
25    effective 7 days after filing.
26        (g)  During  the mandatory transition period, an electric
27    utility may, without obtaining any approval of the Commission
28    other  than  that  provided  for  in  this   subsection   and
29    notwithstanding  any  other provision of this Act or any rule
30    or regulation of  the  Commission  that  would  require  such
31    approval:
32             (1)  implement a reorganization, other than a merger
33        of 2 or more public utilities as defined in Section 3-105
34        or their holding companies;
 
SB2235 Enrolled            -41-               LRB9215298WHcsA
 1             (2)  retire generating plants from service;
 2             (3)  sell,   assign,  lease  or  otherwise  transfer
 3        assets to an affiliated or  unaffiliated  entity  and  as
 4        part  of  such transaction enter into service agreements,
 5        power purchase agreements, or other agreements  with  the
 6        transferee; provided, however, that the prices, terms and
 7        conditions  of  any  power  purchase  agreement  must  be
 8        approved  or  allowed  into  effect by the Federal Energy
 9        Regulatory Commission; or
10             (4)  use  any  accelerated  cost   recovery   method
11        including     accelerated    depreciation,    accelerated
12        amortization or other capital recovery methods, or record
13        reductions to the original cost of its assets.
14        In order to implement a reorganization, retire generating
15    plants from service, or  sell,  assign,  lease  or  otherwise
16    transfer  assets  pursuant  to  this  Section,  the  electric
17    utility  shall comply with subsections (c) and (d) of Section
18    16-128, if applicable, and subsection (k) of this Section, if
19    applicable, and provide the Commission with at least 30  days
20    notice  of  the proposed reorganization or transaction, which
21    notice shall include the following information:
22                  (i)  a complete statement of the  entries  that
23             the  electric  utility  will  make  on its books and
24             records  of  account  to  implement   the   proposed
25             reorganization   or   transaction  together  with  a
26             certification from an independent  certified  public
27             accountant  that  such  entries  are  in accord with
28             generally accepted accounting principles and, if the
29             Commission has previously  approved  guidelines  for
30             cost   allocations   between  the  utility  and  its
31             affiliates,   a   certification   from   the   chief
32             accounting officer of the utility that such  entries
33             are in accord with those cost allocation guidelines;
34                  (ii)  a description of how the electric utility
 
SB2235 Enrolled            -42-               LRB9215298WHcsA
 1             will  use proceeds of any sale, assignment, lease or
 2             transfer to  retire  debt  or  otherwise  reduce  or
 3             recover  the  costs  of  services  provided  by such
 4             electric utility;
 5                  (iii)  a  list  of  all  federal  approvals  or
 6             approvals required from departments and agencies  of
 7             this  State,  other  than  the  Commission, that the
 8             electric  utility  has   or   will   obtain   before
 9             implementing the reorganization or transaction;
10                  (iv)  an irrevocable commitment by the electric
11             utility  that  it  will  not,  as  a  result  of the
12             transaction, impose any stranded cost  charges  that
13             it  might  otherwise  be  allowed  to  charge retail
14             customers  under  federal  law   or   increase   the
15             transition  charges that it is otherwise entitled to
16             collect under this Article XVI; and
17                  (v)  if the electric utility proposes to  sell,
18             assign,  lease  or  otherwise  transfer a generating
19             plant that  brings  the  amount  of  net  dependable
20             generating  capacity  transferred  pursuant  to this
21             subsection to an amount equal to or greater than 15%
22             of the electric utility's net dependable capacity as
23             of the effective date  of  this  amendatory  Act  of
24             1997,  and  enters  into  a power purchase agreement
25             with the entity to which such  generating  plant  is
26             sold,  assigned,  leased,  or otherwise transferred,
27             the electric  utility  also  agrees,  if   its  fuel
28             adjustment  clause  has not already been eliminated,
29             to  eliminate  its   fuel   adjustment   clause   in
30             accordance  with subsection (b) of Section 9-220 for
31             a period of time equal to the  length  of  any  such
32             power  purchase agreement or successor agreement, or
33             until January 1, 2005, whichever is longer;  if  the
34             capacity  of the generating plant so transferred and
 
SB2235 Enrolled            -43-               LRB9215298WHcsA
 1             related power purchase agreement does not result  in
 2             the  elimination of the fuel adjustment clause under
 3             this subsection, and the fuel adjustment clause  has
 4             not  already  been  eliminated, the electric utility
 5             shall agree  that  the  costs  associated  with  the
 6             transferred   plant   that   are   included  in  the
 7             calculation of the  rate  per  kilowatt-hour  to  be
 8             applied  pursuant  to  the  electric  utility's fuel
 9             adjustment  clause  during  such  period  shall  not
10             exceed the per kilowatt-hour  cost  associated  with
11             such  generating  plant  included  in  the  electric
12             utility's  fuel  adjustment  clause  during the full
13             calendar year  preceding  the  transfer,  with  such
14             limit  to  be   adjusted each year thereafter by the
15             Gross Domestic Product Implicit Price Deflator.
16                  (vi)  In  addition,  if  the  electric  utility
17             proposes to sell, assign, or lease, (A)  either  (1)
18             an amount of generating plant that brings the amount
19             of  net  dependable  generating capacity transferred
20             pursuant to this subsection to an amount equal to or
21             greater than 15% of its net dependable  capacity  on
22             the  effective  date of this amendatory Act of 1997,
23             or (2) one or more generating plants  with  a  total
24             net  dependable  capacity  of 1100 megawatts, or (B)
25             transmission and distribution facilities that either
26             (1)   bring   the   amount   of   transmission   and
27             distribution facilities transferred pursuant to this
28             subsection to an amount equal to or greater than 15%
29             of the electric utility's total depreciated original
30             cost investment in such facilities, or (2) represent
31             an investment  of  $25,000,000  in  terms  of  total
32             depreciated  original  cost,  the  electric  utility
33             shall provide, in addition to the information listed
34             in  subparagraphs  (i)  through  (v),  the following
 
SB2235 Enrolled            -44-               LRB9215298WHcsA
 1             information: (A) a description of how  the  electric
 2             utility will meet its service obligations under this
 3             Act  in  a  safe  and  reliable  manner  and (B) the
 4             electric utility's projected earned rate  of  return
 5             on  common  equity,  calculated  in  accordance with
 6             subsection (d) of this Section, for each  year  from
 7             the  date  of  the  notice through December 31, 2004
 8             both with and without the proposed transaction.   If
 9             the  Commission has not issued an order initiating a
10             hearing on the proposed transaction within  30  days
11             after  the  date  the  electric  utility's notice is
12             filed, the transaction  shall  be  deemed  approved.
13             The   Commission  may,  after  notice  and  hearing,
14             prohibit the proposed transaction if it makes either
15             or both of the  following  findings:  (1)  that  the
16             proposed   transaction   will  render  the  electric
17             utility unable to provide its tariffed services in a
18             safe and reliable manner, or (2)  that  there  is  a
19             strong  likelihood that consummation of the proposed
20             transaction will  result  in  the  electric  utility
21             being  entitled  to  request an increase in its base
22             rates  during  the   mandatory   transition   period
23             pursuant  to  subsection  (d)  of this Section.  Any
24             hearing  initiated  by  the  Commission   into   the
25             proposed  transaction  shall  be  completed, and the
26             Commission's final order  approving  or  prohibiting
27             the proposed transaction shall be entered, within 90
28             days  after  the  date the electric utility's notice
29             was  filed.  Provided,   however,   that   a   sale,
30             assignment,  or  lease of transmission facilities to
31             an  independent  system  operator  that  meets   the
32             requirements  of Section 16-126 shall not be subject
33             to Commission approval under this Section.
34                  In any proceeding conducted by  the  Commission
 
SB2235 Enrolled            -45-               LRB9215298WHcsA
 1             pursuant  to  this  subparagraph  (vi), intervention
 2             shall be limited to parties with a  direct  interest
 3             in  the  transaction  which  is  the  subject of the
 4             hearing and any statutory consumer protection agency
 5             as defined in subsection  (d)  of  Section  9-102.1.
 6             Notwithstanding  the provisions of Section 10-113 of
 7             this Act, any application seeking  rehearing  of  an
 8             order  issued  under this subparagraph (vi), whether
 9             filed by the electric utility or by  an  intervening
10             party,  shall  be filed within 10 days after service
11             of the order.
12        The Commission shall not in any subsequent proceeding  or
13    otherwise,  review such a reorganization or other transaction
14    authorized by this Section, but shall retain the authority to
15    allocate costs as stated in Section 16-111(i). An  entity  to
16    which an electric utility sells, assigns, leases or transfers
17    assets pursuant to this subsection (g) shall not, as a result
18    of  the  transactions  specified  in  this subsection (g), be
19    deemed a public utility as defined in Section 3-105.  Nothing
20    in this subsection (g) shall change any requirement under the
21    jurisdiction of the Illinois  Department  of  Nuclear  Safety
22    including,  but  not limited to, the payment of fees. Nothing
23    in this subsection (g) shall exempt a utility from  obtaining
24    a  certificate  pursuant to Section 8-406 of this Act for the
25    construction of a new electric generating facility.   Nothing
26    in this subsection (g) is intended to exempt the transactions
27    hereunder   from  the  operation  of  the  federal  or  State
28    antitrust laws. Nothing in this subsection (g) shall  require
29    an  electric  utility to use the procedures specified in this
30    subsection for any of the transactions specified herein.  Any
31    other procedure available under this Act may, at the electric
32    utility's election, be used for any such transaction.
33        (h)  During  the   mandatory   transition   period,   the
34    Commission   shall   not   establish  or  use  any  rates  of
 
SB2235 Enrolled            -46-               LRB9215298WHcsA
 1    depreciation, which for purposes  of  this  subsection  shall
 2    include  amortization,  for  any  electric utility other than
 3    those established pursuant to subsection (c) of Section 5-104
 4    of this Act or utilized pursuant to subsection  (g)  of  this
 5    Section.  Provided, however, that in any proceeding to review
 6    an electric utility's rates for tariffed services pursuant to
 7    Section  9-201,  9-202,  9-250  or 16-111(d) of this Act, the
 8    Commission may establish new rates of  depreciation  for  the
 9    electric  utility  in  the same manner provided in subsection
10    (d) of  Section  5-104  of  this  Act.  An  electric  utility
11    implementing  an  accelerated  cost recovery method including
12    accelerated depreciation, accelerated amortization  or  other
13    capital  recovery  methods,  or  recording  reductions to the
14    original cost of its assets, pursuant to  subsection  (g)  of
15    this  Section,  shall  file  a  statement with the Commission
16    describing  the  accelerated  cost  recovery  method  to   be
17    implemented  or  the  reduction  in  the original cost of its
18    assets to be recorded.  Upon the filing  of  such  statement,
19    the  accelerated cost recovery method or the reduction in the
20    original cost of assets shall be deemed to be approved by the
21    Commission as  though  an  order  had  been  entered  by  the
22    Commission.
23        (i)  Subsequent  to  the mandatory transition period, the
24    Commission, in any proceeding to establish rates and  charges
25    for  tariffed  services offered by an electric utility, shall
26    consider only (1) the then  current  or  projected  revenues,
27    costs, investments and cost of capital directly or indirectly
28    associated  with the provision of such tariffed services; (2)
29    collection of transition charges in accordance with  Sections
30    16-102  and  16-108 of this Act; (3) recovery of any employee
31    transition costs as described in  Section  16-128  which  the
32    electric  utility  is continuing to incur, including recovery
33    of any unamortized portion of such costs previously  incurred
34    or committed, with such costs to be equitably allocated among
 
SB2235 Enrolled            -47-               LRB9215298WHcsA
 1    bundled  services,  delivery  services,  and  contracts  with
 2    alternative  retail  electric  suppliers; and (4) recovery of
 3    the costs associated with the electric  utility's  compliance
 4    with  decommissioning  funding  requirements;  and  shall not
 5    consider any other revenues, costs, investments  or  cost  of
 6    capital of either the electric utility or of any affiliate of
 7    the  electric  utility  that  are  not  associated  with  the
 8    provision   of  tariffed  services.   In  setting  rates  for
 9    tariffed services, the Commission  shall  equitably  allocate
10    joint  and  common costs and investments between the electric
11    utility's competitive and tariffed services.  In  determining
12    the  justness  and  reasonableness  of the electric power and
13    energy component of an electric utility's rates for  tariffed
14    services  subsequent  to  the mandatory transition period and
15    prior to the time that the provision of such  electric  power
16    and  energy  is  declared  competitive,  the Commission shall
17    consider the extent to which the electric utility's  tariffed
18    rates  for  such component for each customer class exceed the
19    market value determined pursuant to Section 16-112,  and,  if
20    the electric power and energy component of such tariffed rate
21    exceeds  the  market  value by more than 10% for any customer
22    class, may establish such electric power and energy component
23    at a rate equal to the market value plus  10%.  In  any  such
24    case,  the Commission may also elect to extend the provisions
25    of Section 16-111(e) for any period  in  which  the  electric
26    utility  is  collecting transition charges, using information
27    applicable to such period.
28        (j)  During the mandatory transition period, an  electric
29    utility  may  elect  to  transfer  to  a non-operating income
30    account under the Commission's  Uniform  System  of  Accounts
31    either or both of (i) an amount of unamortized investment tax
32    credit  that  is  in  addition to the ratable amount which is
33    credited to the electric utility's operating  income  account
34    for  the  year  in  accordance  with  Section 46(f)(2) of the
 
SB2235 Enrolled            -48-               LRB9215298WHcsA
 1    federal Internal Revenue Code of 1986, as in effect prior  to
 2    P.L.  101-508, or (ii) "excess tax reserves", as that term is
 3    defined in Section 203(e)(2)(A) of the federal Tax Reform Act
 4    of 1986, provided that (A) the  amount  transferred  may  not
 5    exceed  the amount of the electric utility's assets that were
 6    created  pursuant  to  Statement  of   Financial   Accounting
 7    Standards  No.  71 which the electric utility has written off
 8    during the mandatory transition period, and (B) the  transfer
 9    shall not be effective until approved by the Internal Revenue
10    Service.   An  electric  utility  electing  to  make  such  a
11    transfer  shall  file a statement with the Commission stating
12    the amount and timing of the transfer for which it intends to
13    request approval of the Internal Revenue Service, along  with
14    a  copy  of  its  proposed  request  to  the Internal Revenue
15    Service for a ruling.  The Commission shall  issue  an  order
16    within 14 days after the electric utility's filing approving,
17    subject  to  receipt  of  approval  from the Internal Revenue
18    Service, the proposed transfer.
19        (k)  If an electric utility is selling or transferring to
20    a single buyer 5 or more generating plants  located  in  this
21    State  with a total net dependable capacity of 5000 megawatts
22    or more pursuant to subsection (g) of this  Section  and  has
23    obtained  a  sale price or consideration that exceeds 200% of
24    the book value of such  plants,  the  electric  utility  must
25    provide  to  the  Governor,  the  President  of  the Illinois
26    Senate, the Minority  Leader  of  the  Illinois  Senate,  the
27    Speaker  of  the  Illinois  House of Representatives, and the
28    Minority Leader of the Illinois House of  Representatives  no
29    later  than  15 days after filing its notice under subsection
30    (g) of this Section or 5 days after the date  on  which  this
31    subsection  (k)  becomes  law,  whichever is later, a written
32    commitment in which such electric utility agrees to expend $2
33    billion outside the corporate limits of any municipality with
34    1,000,000 or more inhabitants within such electric  utility's
 
SB2235 Enrolled            -49-               LRB9215298WHcsA
 1    service  area,  over  a  6-year  period  beginning  with  the
 2    calendar  year  in  which  the  notice is filed, on projects,
 3    programs, and improvements within its service  area  relating
 4    to   transmission   and   distribution   including,   without
 5    limitation, infrastructure expansion, repair and replacement,
 6    capital   investments,   operations   and   maintenance,  and
 7    vegetation management.
 8    (Source: P.A. 90-561, eff. 12-16-97; 90-563,  eff.  12-16-97;
 9    91-50, eff. 6-30-99.)

10        Section  99.  Effective date.  This Act takes effect upon
11    becoming law.
 
SB2235 Enrolled            -50-               LRB9215298WHcsA
 1                                INDEX
 2               Statutes amended in order of appearance
 3    305 ILCS 20/1             from Ch. 111 2/3, par. 1401
 4    305 ILCS 20/2             from Ch. 111 2/3, par. 1402
 5    305 ILCS 20/4             from Ch. 111 2/3, par. 1404
 6    305 ILCS 20/5             from Ch. 111 2/3, par. 1405
 7    305 ILCS 20/6             from Ch. 111 2/3, par. 1406
 8    305 ILCS 20/7             from Ch. 111 2/3, par. 1407
 9    305 ILCS 20/8             from Ch. 111 2/3, par. 1408
10    305 ILCS 20/13
11    305 ILCS 20/7.1 rep.
12    305 ILCS 20/9 rep.
13    305 ILCS 20/12 rep.
14    305 ILCS 20/14 rep.
15    20 ILCS 687/6-5
16    220 ILCS 5/8-207          from Ch. 111 2/3, par. 8-207
17    220 ILCS 5/16-108
18    220 ILCS 5/16-111

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