Public Act 097-0824
 
SB3811 EnrolledLRB097 19963 CEL 65260 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Public Utilities Act is amended by changing
Sections 16-107.5 and 16-111.5B as follows:
 
    (220 ILCS 5/16-107.5)
    Sec. 16-107.5. Net electricity metering.
    (a) The Legislature finds and declares that a program to
provide net electricity metering, as defined in this Section,
for eligible customers can encourage private investment in
renewable energy resources, stimulate economic growth, enhance
the continued diversification of Illinois' energy resource
mix, and protect the Illinois environment.
    (b) As used in this Section, (i) "eligible customer" means
a retail customer that owns or operates a solar, wind, or other
eligible renewable electrical generating facility with a rated
capacity of not more than 2,000 kilowatts that is located on
the customer's premises and is intended primarily to offset the
customer's own electrical requirements; (ii) "electricity
provider" means an electric utility or alternative retail
electric supplier; (iii) "eligible renewable electrical
generating facility" means a generator powered by solar
electric energy, wind, dedicated crops grown for electricity
generation, agricultural residues, untreated and unadulterated
wood waste, landscape trimmings, livestock manure, anaerobic
digestion of livestock or food processing waste, fuel cells or
microturbines powered by renewable fuels, or hydroelectric
energy; and (iv) "net electricity metering" (or "net metering")
means the measurement, during the billing period applicable to
an eligible customer, of the net amount of electricity supplied
by an electricity provider to the customer's premises or
provided to the electricity provider by the customer.
    (c) A net metering facility shall be equipped with metering
equipment that can measure the flow of electricity in both
directions at the same rate.
        (1) For eligible customers whose electric service has
    not been declared competitive pursuant to Section 16-113 of
    this Act as of July 1, 2011 and whose electric delivery
    service is provided and measured on a kilowatt-hour basis
    and electric supply service is not provided based on hourly
    pricing, this shall typically be accomplished through use
    of a single, bi-directional meter. If the eligible
    customer's existing electric revenue meter does not meet
    this requirement, the electricity provider shall arrange
    for the local electric utility or a meter service provider
    to install and maintain a new revenue meter at the
    electricity provider's expense.
        (2) For eligible customers whose electric service has
    not been declared competitive pursuant to Section 16-113 of
    this Act as of July 1, 2011 and whose electric delivery
    service is provided and measured on a kilowatt demand basis
    and electric supply service is not provided based on hourly
    pricing, this shall typically be accomplished through use
    of a dual channel meter capable of measuring the flow of
    electricity both into and out of the customer's facility at
    the same rate and ratio. If such customer's existing
    electric revenue meter does not meet this requirement, then
    the electricity provider shall arrange for the local
    electric utility or a meter service provider to install and
    maintain a new revenue meter at the electricity provider's
    expense.
        (3) For all other eligible customers, the electricity
    provider may arrange for the local electric utility or a
    meter service provider to install and maintain metering
    equipment capable of measuring the flow of electricity both
    into and out of the customer's facility at the same rate
    and ratio, typically through the use of a dual channel
    meter. If the eligible customer's existing electric
    revenue meter does not meet this requirement, then the
    costs of installing such equipment shall be paid for by the
    customer.
    (d) An electricity provider shall measure and charge or
credit for the net electricity supplied to eligible customers
or provided by eligible customers whose electric service has
not been declared competitive pursuant to Section 16-113 of the
Act as of July 1, 2011 and whose electric delivery service is
provided and measured on a kilowatt-hour basis and electric
supply service is not provided based on hourly pricing in the
following manner:
        (1) If the amount of electricity used by the customer
    during the billing period exceeds the amount of electricity
    produced by the customer, the electricity provider shall
    charge the customer for the net electricity supplied to and
    used by the customer as provided in subsection (e-5) of
    this Section.
        (2) If the amount of electricity produced by a customer
    during the billing period exceeds the amount of electricity
    used by the customer during that billing period, the
    electricity provider supplying that customer shall apply a
    1:1 kilowatt-hour credit to a subsequent bill for service
    to the customer for the net electricity supplied to the
    electricity provider. The electricity provider shall
    continue to carry over any excess kilowatt-hour credits
    earned and apply those credits to subsequent billing
    periods to offset any customer-generator consumption in
    those billing periods until all credits are used or until
    the end of the annualized period.
        (3) At the end of the year or annualized over the
    period that service is supplied by means of net metering,
    or in the event that the retail customer terminates service
    with the electricity provider prior to the end of the year
    or the annualized period, any remaining credits in the
    customer's account shall expire.
    (d-5) An electricity provider shall measure and charge or
credit for the net electricity supplied to eligible customers
or provided by eligible customers whose electric service has
not been declared competitive pursuant to Section 16-113 of
this Act as of July 1, 2011 and whose electric delivery service
is provided and measured on a kilowatt-hour basis and electric
supply service is provided based on hourly pricing in the
following manner:
        (1) If the amount of electricity used by the customer
    during any hourly period exceeds the amount of electricity
    produced by the customer, the electricity provider shall
    charge the customer for the net electricity supplied to and
    used by the customer according to the terms of the contract
    or tariff to which the same customer would be assigned to
    or be eligible for if the customer was not a net metering
    customer.
        (2) If the amount of electricity produced by a customer
    during any hourly period exceeds the amount of electricity
    used by the customer during that hourly period, the energy
    provider shall apply a credit for the net kilowatt-hours
    produced in such period. The credit shall consist of an
    energy credit and a delivery service credit. The energy
    credit shall be valued at the same price per kilowatt-hour
    as the electric service provider would charge for
    kilowatt-hour energy sales during that same hourly period.
    The delivery credit shall be equal to the net
    kilowatt-hours produced in such hourly period times a
    credit that reflects all kilowatt-hour based charges in the
    customer's electric service rate, excluding energy
    charges.
    (e) An electricity provider shall measure and charge or
credit for the net electricity supplied to eligible customers
whose electric service has not been declared competitive
pursuant to Section 16-113 of this Act as of July 1, 2011 and
whose electric delivery service is provided and measured on a
kilowatt demand basis and electric supply service is not
provided based on hourly pricing in the following manner:
        (1) If the amount of electricity used by the customer
    during the billing period exceeds the amount of electricity
    produced by the customer, then the electricity provider
    shall charge the customer for the net electricity supplied
    to and used by the customer as provided in subsection (e-5)
    of this Section. The , provided that the electricity
    provider shall assess and the customer shall remain remains
    responsible for all taxes, fees, and utility delivery
    charges that would otherwise be applicable to the net gross
    amount of electricity used by kilowatt-hours supplied to
    the eligible customer by the electricity provider.
        (2) If the amount of electricity produced by a customer
    during the billing period exceeds the amount of electricity
    used by the customer during that billing period, then the
    electricity provider supplying that customer shall apply a
    1:1 kilowatt-hour credit that reflects the kilowatt-hour
    based charges in the customer's electric service rate to a
    subsequent bill for service to the customer for the net
    electricity supplied to the electricity provider. The
    electricity provider shall continue to carry over any
    excess kilowatt-hour credits earned and apply those
    credits to subsequent billing periods to offset any
    customer-generator consumption in those billing periods
    until all credits are used or until the end of the
    annualized period.
        (3) At the end of the year or annualized over the
    period that service is supplied by means of net metering,
    or in the event that the retail customer terminates service
    with the electricity provider prior to the end of the year
    or the annualized period, any remaining credits in the
    customer's account shall expire.
    (e-5) An electricity provider shall provide electric
service to eligible customers whose electric service has not
been declared competitive pursuant to Section 16-113 of this
Act and whose electric supply service is not provided based on
hourly pricing who utilize net metering at non-discriminatory
rates that are identical, with respect to rate structure,
retail rate components, and any monthly charges, to the rates
that the customer would be charged if not a net metering
customer. An electricity provider shall not charge net metering
customers any fee or charge or require additional equipment,
insurance, or any other requirements not specifically
authorized by interconnection standards authorized by the
Commission, unless the fee, charge, or other requirement would
apply to other similarly situated customers who are not net
metering customers. The customer will remain responsible for
all taxes, fees, and utility delivery charges that would
otherwise be applicable to the net amount of electricity used
by the customer. Subsections (c) through (e) of this Section
shall not be construed to prevent an arms-length agreement
between an electricity provider and an eligible customer that
sets forth different prices, terms, and conditions for the
provision of net metering service, including, but not limited
to, the provision of the appropriate metering equipment for
non-residential customers.
    (f) Notwithstanding the requirements of subsections (c)
through (e-5) of this Section, an electricity provider must
require dual-channel metering for customers operating eligible
renewable electrical generating facilities with a nameplate
rating up to 2,000 kilowatts and to whom the provisions of
neither subsection (d), (d-5), nor (e) of this Section apply.
In such cases, electricity charges and credits shall be
determined as follows:
        (1) The electricity provider shall assess and the
    customer remains responsible for all taxes, fees, and
    utility delivery charges that would otherwise be
    applicable to the gross amount of kilowatt-hours supplied
    to the eligible customer by the electricity provider.
        (2) Each month that service is supplied by means of
    dual-channel metering, the electricity provider shall
    compensate the eligible customer for any excess
    kilowatt-hour credits at the electricity provider's
    avoided cost of electricity supply over the monthly period
    or as otherwise specified by the terms of a power-purchase
    agreement negotiated between the customer and electricity
    provider.
        (3) For all eligible net metering customers taking
    service from an electricity provider under contracts or
    tariffs employing time of use rates, any monthly
    consumption of electricity shall be calculated according
    to the terms of the contract or tariff to which the same
    customer would be assigned to or be eligible for if the
    customer was not a net metering customer. When those same
    customer-generators are net generators during any discrete
    time of use period, the net kilowatt-hours produced shall
    be valued at the same price per kilowatt-hour as the
    electric service provider would charge for retail
    kilowatt-hour sales during that same time of use period.
    (g) For purposes of federal and State laws providing
renewable energy credits or greenhouse gas credits, the
eligible customer shall be treated as owning and having title
to the renewable energy attributes, renewable energy credits,
and greenhouse gas emission credits related to any electricity
produced by the qualified generating unit. The electricity
provider may not condition participation in a net metering
program on the signing over of a customer's renewable energy
credits; provided, however, this subsection (g) shall not be
construed to prevent an arms-length agreement between an
electricity provider and an eligible customer that sets forth
the ownership or title of the credits.
    (h) Within 120 days after the effective date of this
amendatory Act of the 95th General Assembly, the Commission
shall establish standards for net metering and, if the
Commission has not already acted on its own initiative,
standards for the interconnection of eligible renewable
generating equipment to the utility system. The
interconnection standards shall address any procedural
barriers, delays, and administrative costs associated with the
interconnection of customer-generation while ensuring the
safety and reliability of the units and the electric utility
system. The Commission shall consider the Institute of
Electrical and Electronics Engineers (IEEE) Standard 1547 and
the issues of (i) reasonable and fair fees and costs, (ii)
clear timelines for major milestones in the interconnection
process, (iii) nondiscriminatory terms of agreement, and (iv)
any best practices for interconnection of distributed
generation.
    (i) All electricity providers shall begin to offer net
metering no later than April 1, 2008.
    (j) An electricity provider shall provide net metering to
eligible customers until the load of its net metering customers
equals 5% of the total peak demand supplied by that electricity
provider during the previous year. Electricity providers are
authorized to offer net metering beyond the 5% level if they so
choose.
    (k) Each electricity provider shall maintain records and
report annually to the Commission the total number of net
metering customers served by the provider, as well as the type,
capacity, and energy sources of the generating systems used by
the net metering customers. Nothing in this Section shall limit
the ability of an electricity provider to request the redaction
of information deemed by the Commission to be confidential
business information. Each electricity provider shall notify
the Commission when the total generating capacity of its net
metering customers is equal to or in excess of the 5% cap
specified in subsection (j) of this Section.
    (l) Notwithstanding the definition of "eligible customer"
in item (i) of subsection (b) of this Section, each electricity
provider shall consider whether to allow meter aggregation for
the purposes of net metering on:
        (1) properties owned or leased by multiple customers
    that contribute to the operation of an eligible renewable
    electrical generating facility, such as a community-owned
    wind project, a community-owned biomass project, a
    community-owned solar project, or a community methane
    digester processing livestock waste from multiple sources;
    and
        (2) individual units, apartments, or properties owned
    or leased by multiple customers and collectively served by
    a common eligible renewable electrical generating
    facility, such as an apartment building served by
    photovoltaic panels on the roof.
    For the purposes of this subsection (l), "meter
aggregation" means the combination of reading and billing on a
pro rata basis for the types of eligible customers described in
this Section.
    (m) Nothing in this Section shall affect the right of an
electricity provider to continue to provide, or the right of a
retail customer to continue to receive service pursuant to a
contract for electric service between the electricity provider
and the retail customer in accordance with the prices, terms,
and conditions provided for in that contract. Either the
electricity provider or the customer may require compliance
with the prices, terms, and conditions of the contract.
(Source: P.A. 97-616, eff. 10-26-11; 97-646, eff. 12-30-11.)
 
    (220 ILCS 5/16-111.5B)
    Sec. 16-111.5B. Provisions relating to energy efficiency
procurement.
    (a) Beginning in 2012, procurement plans prepared pursuant
to Section 16-111.5 of this Act shall be subject to the
following additional requirements:
        (1) The analysis included pursuant to paragraph (2) of
    subsection (b) of Section 16-111.5 shall also include the
    impact of energy efficiency building codes or appliance
    standards, both current and projected.
        (2) The procurement plan components described in
    subsection (b) of Section 16-111.5 shall also include an
    assessment of opportunities to expand the programs
    promoting energy efficiency measures that have been
    offered under plans approved pursuant to Section 8-103 of
    this Act or to implement additional cost-effective energy
    efficiency programs or measures.
        (3) In addition to the information provided pursuant to
    paragraph (1) of subsection (d) of Section 16-111.5 of this
    Act, each Illinois utility procuring power pursuant to that
    Section shall annually provide to the Illinois Power Agency
    by July 15 of each year, or such other date as may be
    required by the Commission or Agency, an assessment of
    cost-effective energy efficiency programs or measures that
    could be included in the procurement plan. The assessment
    shall include the following:
            (A) A comprehensive energy efficiency potential
        study for the utility's service territory that was
        completed within the past 3 years.
            (B) Beginning in 2014, the most recent analysis
        submitted pursuant to Section 8-103A of this Act and
        approved by the Commission under subsection (f) of
        Section 8-103 of this Act.
            (C) Identification of new or expanded
        cost-effective energy efficiency programs or measures
        that are incremental to those included in energy
        efficiency and demand-response plans approved by the
        Commission pursuant to Section 8-103 of this Act and
        that would be offered to all retail customers whose
        electric service has not been declared competitive
        under Section 16-113 of this Act and who are eligible
        to purchase power and energy from the utility under
        fixed-price bundled service tariffs, regardless of
        whether such customers actually do purchase such power
        and energy from the utility eligible retail customers.
            (D) Analysis showing that the new or expanded
        cost-effective energy efficiency programs or measures
        would lead to a reduction in the overall cost of
        electric service.
            (E) Analysis of how the cost of procuring
        additional cost-effective energy efficiency measures
        compares over the life of the measures to the
        prevailing cost of comparable supply.
            (F) An energy savings goal, expressed in
        megawatt-hours, for the year in which the measures will
        be implemented.
            (G) For each expanded or new program, the estimated
        amount that the program may reduce the agency's need to
        procure supply.
        In preparing such assessments, a utility shall conduct
    an annual solicitation process for purposes of requesting
    proposals from third-party vendors, the results of which
    shall be provided to the Agency as part of the assessment,
    including documentation of all bids received. The utility
    shall develop requests for proposals consistent with the
    manner in which it develops requests for proposals under
    plans approved pursuant to Section 8-103 of this Act, which
    considers input from the Agency and interested
    stakeholders.
        (4) The Illinois Power Agency shall include in the
    procurement plan prepared pursuant to paragraph (2) of
    subsection (d) of Section 16-111.5 of this Act energy
    efficiency programs and measures it determines are
    cost-effective and the associated annual energy savings
    goal included in the annual solicitation process and
    assessment submitted pursuant to paragraph (3) of this
    subsection (a).
        (5) Pursuant to paragraph (4) of subsection (d) of
    Section 16-111.5 of this Act, the Commission shall also
    approve the energy efficiency programs and measures
    included in the procurement plan, including the annual
    energy savings goal, if the Commission determines they
    fully capture the potential for all achievable
    cost-effective savings, to the extent practicable, and
    otherwise satisfy the requirements of Section 8-103 of this
    Act.
        In the event the Commission approves the procurement of
    additional energy efficiency, it shall reduce the amount of
    power to be procured under the procurement plan to reflect
    the additional energy efficiency and shall direct the
    utility to undertake the procurement of such energy
    efficiency, which shall not be subject to the requirements
    of subsection (e) of Section 16-111.5 of this Act. The
    utility shall consider input from the Agency and interested
    stakeholders on the procurement and administration
    process.
        (6) An electric utility shall recover its costs
    incurred under this Section related to the implementation
    of energy efficiency programs and measures approved by the
    Commission in its order approving the procurement plan
    under Section 16-111.5 of this Act, including, but not
    limited to, all costs associated with complying with this
    Section and all start-up and administrative costs and the
    costs for any evaluation, measurement, and verification of
    the measures, from all retail customers whose electric
    service has not been declared competitive under Section
    16-113 of this Act and who are eligible to purchase power
    and energy from the utility under fixed-price bundled
    service tariffs, regardless of whether such customers
    actually do purchase such power and energy from the utility
    eligible retail customers through the automatic adjustment
    clause tariff established pursuant to Section 8-103 of this
    Act, provided, however, that the limitations described in
    subsection (d) of that Section shall not apply to the costs
    incurred pursuant to this Section or Section 16-111.7 of
    this Act.
    (b) For purposes of this Section, the term "energy
efficiency" shall have the meaning set forth in Section 1-10 of
the Illinois Power Agency Act, and the term "cost-effective"
shall have the meaning set forth in subsection (a) of Section
8-103 of this Act. In addition, the estimated costs to acquire
an additional energy efficiency measure, when divided by the
number of kilowatt-hours expected to be saved over the life of
the measure, shall be less than or equal to the electricity
costs that would be avoided as a result of the energy
efficiency measure.
(Source: P.A. 97-616, eff. 10-26-11.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.