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Public Act 91-0050
SB24 Enrolled LRB9100188JSgc
AN ACT to encourage the development of cogeneration and
self-generation of electricity.
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 16-102, 16-104, 16-108, 16-110, 16-111,
16-115, and 16-130 and adding Sections 16-111.1, 16-111.2,
and 16-114.1 as follows:
(220 ILCS 5/16-102)
Sec. 16-102. Definitions. For the purposes of this
Article the following terms shall be defined as set forth in
this Section.
"Alternative retail electric supplier" means every
person, cooperative, corporation, municipal corporation,
company, association, joint stock company or association,
firm, partnership, individual, or other entity, their
lessees, trustees, or receivers appointed by any court
whatsoever, that offers electric power or energy for sale,
lease or in exchange for other value received to one or more
retail customers, or that engages in the delivery or
furnishing of electric power or energy to such retail
customers, and shall include, without limitation, resellers,
aggregators and power marketers, but shall not include (i)
electric utilities (or any agent of the electric utility to
the extent the electric utility provides tariffed services to
retail customers through that agent), (ii) any electric
cooperative or municipal system as defined in Section 17-100
to the extent that the electric cooperative or municipal
system is serving retail customers within any area in which
it is or would be entitled to provide service under the law
in effect immediately prior to the effective date of this
amendatory Act of 1997, (iii) a public utility that is owned
and operated by any public institution of higher education of
this State, or a public utility that is owned by such public
institution of higher education and operated by any of its
lessees or operating agents, within any area in which it is
or would be entitled to provide service under the law in
effect immediately prior to the effective date of this
amendatory Act of 1997, (iv) a any retail customer to the
extent that customer obtains its electric power and energy
from that customer's its own cogeneration or self-generation
facilities, (v) an any entity that owns, operates, sells, or
arranges for the installation of a customer's own
cogeneration or self-generation facilities to be owned by a
retail customer described in subparagraph (iv), but only to
the extent the entity is engaged in owning, selling or
arranging for the such installation of such facility, or
operating the facility on behalf of such customer, provided
however that any such third party owner or operator of a
facility built after January 1, 1999, complies with the labor
provisions of Section 16-128(a) as though such third party
were an alternative retail electric supplier, or (vi) an
industrial or manufacturing customer that owns its own
distribution facilities, to the extent that the customer
provides service from that distribution system to a
third-party contractor located on the customer's premises
that is integrally and predominantly engaged in the
customer's industrial or manufacturing process; provided,
that if the industrial or manufacturing customer has elected
delivery services, the customer shall pay transition charges
applicable to the electric power and energy consumed by the
third-party contractor unless such charges are otherwise paid
by the third party contractor, which shall be calculated
based on the usage of, and the base rates or the contract
rates applicable to, the third-party contractor in accordance
with Section 16-102.
"Base rates" means the rates for those tariffed services
that the electric utility is required to offer pursuant to
subsection (a) of Section 16-103 and that were identified in
a rate order for collection of the electric utility's base
rate revenue requirement, excluding (i) separate automatic
rate adjustment riders then in effect, (ii) special or
negotiated contract rates, (iii) delivery services tariffs
filed pursuant to Section 16-108, (iv) real-time pricing, or
(v) tariffs that were in effect prior to October 1, 1996 and
that based charges for services on an index or average of
other utilities' charges, but including (vi) any subsequent
redesign of such rates for tariffed services that is
authorized by the Commission after notice and hearing.
"Competitive service" includes (i) any service that has
been declared to be competitive pursuant to Section 16-113 of
this Act, (ii) contract service, and (iii) services, other
than tariffed services, that are related to, but not
necessary for, the provision of electric power and energy or
delivery services.
"Contract service" means (1) services, including the
provision of electric power and energy or other services,
that are provided by mutual agreement between an electric
utility and a retail customer that is located in the electric
utility's service area, provided that, delivery services
shall not be a contract service until such services are
declared competitive pursuant to Section 16-113; and also
means (2) the provision of electric power and energy by an
electric utility to retail customers outside the electric
utility's service area pursuant to Section 16-116. Provided,
however, contract service does not include electric utility
services provided pursuant to (i) contracts that retail
customers are required to execute as a condition of receiving
tariffed services, or (ii) special or negotiated rate
contracts for electric utility services that were entered
into between an electric utility and a retail customer prior
to the effective date of this amendatory Act of 1997 and
filed with the Commission.
"Delivery services" means those services provided by the
electric utility that are necessary in order for the
transmission and distribution systems to function so that
retail customers located in the electric utility's service
area can receive electric power and energy from suppliers
other than the electric utility, and shall include, without
limitation, standard metering and billing services.
"Electric utility" means a public utility, as defined in
Section 3-105 of this Act, that has a franchise, license,
permit or right to furnish or sell electricity to retail
customers within a service area.
"Mandatory transition period" means the period from the
effective date of this amendatory Act of 1997 through January
1, 2005.
"Municipal system" shall have the meaning set forth in
Section 17-100.
"Real-time pricing" means charges for delivered electric
power and energy that vary on an hour-to-hour basis for
nonresidential retail customers and that vary on a periodic
basis during the day for residential retail customers.
"Retail customer" means a single entity using electric
power or energy at a single premises and that (A) either (i)
is receiving or is eligible to receive tariffed services from
an electric utility, or (ii) that is served by a municipal
system or electric cooperative within any area in which the
municipal system or electric cooperative is or would be
entitled to provide service under the law in effect
immediately prior to the effective date of this amendatory
Act of 1997, or (B) an entity which on the effective date of
this Act was receiving electric service from a public utility
and (i) was engaged in the practice of resale and
redistribution of such electricity within a building prior to
January 2, 1957, or (ii) was providing lighting services to
tenants in a multi-occupancy building, but only to the extent
such resale, redistribution or lighting service is authorized
by the electric utility's tariffs that were on file with the
Commission on the effective date of this Act.
"Service area" means (i) the geographic area within which
an electric utility was lawfully entitled to provide electric
power and energy to retail customers as of the effective date
of this amendatory Act of 1997, and includes (ii) the
location of any retail customer to which the electric utility
was lawfully providing electric utility services on such
effective date.
"Small commercial retail customer" means those
nonresidential retail customers of an electric utility
consuming 15,000 kilowatt-hours or less of electricity
annually in its service area.
"Tariffed service" means services provided to retail
customers by an electric utility as defined by its rates on
file with the Commission pursuant to the provisions of
Article IX of this Act, but shall not include competitive
services.
"Transition charge" means a charge expressed in cents per
kilowatt-hour that is calculated for a customer or class of
customers as follows for each year in which an electric
utility is entitled to recover transition charges as provided
in Section 16-108:
(1) the amount of revenue that an electric utility
would receive from the retail customer or customers if it
were serving such customers' electric power and energy
requirements as a tariffed service based on (A) all of
the customers' actual usage during the 3 years ending 90
days prior to the date on which such customers were first
eligible for delivery services pursuant to Section
16-104, and (B) on (i) the base rates in effect on
October 1, 1996 (adjusted for the reductions required by
subsection (b) of Section 16-111, for any reduction
resulting from a rate decrease under Section 16-101(b),
for any restatement of base rates made in conjunction
with an elimination of the fuel adjustment clause
pursuant to subsection (b), (d), or (f) of Section 9-220
and for any removal of decommissioning costs from base
rates pursuant to Section 16-114) and any separate
automatic rate adjustment riders (other than a
decommissioning rate as defined in Section 16-114) under
which the customers were receiving or, had they been
customers, would have received electric power and energy
from the electric utility during the year immediately
preceding the date on which such customers were first
eligible for delivery service pursuant to Section 16-104,
or (ii) to the extent applicable, any contract rates,
including contracts or rates for consolidated or
aggregated billing, under which such customers were
receiving electric power and energy from the electric
utility during such year;
(2) less the amount of revenue, other than revenue
from transition charges and decommissioning rates, that
the electric utility would receive from such retail
customers for delivery services provided by the electric
utility, assuming such customers were taking delivery
services for all of their usage, based on the delivery
services tariffs in effect during the year for which the
transition charge is being calculated and on the usage
identified in paragraph (1);
(3) less the market value for the electric power
and energy that the electric utility would have used to
supply all of such customers' electric power and energy
requirements, as a tariffed service, based on the usage
identified in paragraph (1), with such market value
determined in accordance with Section 16-112 of this Act;
(4) less the following amount which represents the
amount to be attributed to new revenue sources and cost
reductions by the electric utility through the end of the
period for which transition costs are recovered pursuant
to Section 16-108, referred to in this Article XVI as a
"mitigation factor":
(A) for nonresidential retail customers, an
amount equal to the greater of (i) 0.5 cents per
kilowatt-hour during the period October 1, 1999
through December 31, 2004, 0.6 cents per
kilowatt-hour in calendar year 2005, and 0.9 cents
per kilowatt-hour in calendar year 2006, multiplied
in each year by the usage identified in paragraph
(1), or (ii) an amount equal to the following
percentages of the amount produced by applying the
applicable base rates (adjusted as described in
subparagraph (1)(B)) or contract rate to the usage
identified in paragraph (1): 8% for the period
October 1, 1999 through December 31, 2002, 10% in
calendar years 2003 and 2004, 11% in calendar year
2005 and 12% in calendar year 2006; and
(B) for residential retail customers, an
amount equal to the following percentages of the
amount produced by applying the base rates in effect
on October 1, 1996 (adjusted as described in
subparagraph (1)(B)) to the usage identified in
paragraph (1): (i) 6% from May 1, 2002 through
December 31, 2002, (ii) 7% in calendar years 2003
and 2004, (iii) 8% in calendar year 2005, and (iv)
10% in calendar year 2006;
(5) divided by the usage of such customers
identified in paragraph (1),
provided that the transition charge shall never be less than
zero.
"Unbundled service" means a component or constituent part
of a tariffed service which the electric utility subsequently
offers separately to its customers.
(Source: P.A. 90-561, eff. 12-16-97.)
(220 ILCS 5/16-104)
Sec. 16-104. Delivery services transition plan. An
electric utility shall provide delivery services to retail
customers in accordance with the provisions of this Section.
(a) Each electric utility shall offer delivery services
to retail customers located in its service area in accordance
with the following provisions:
(1) On or before October 1, 1999, the electric
utility shall offer delivery services (i) to any
non-residential retail customer whose average monthly
maximum electrical demand on the electric utility's
system during the 6 months with the customer's highest
monthly maximum demands in the 12 months ending June 30,
1999 equals or exceeds 4 megawatts; (ii) to any
non-governmental, non-residential, commercial retail
customers under common ownership doing business at 10 or
more separate locations within the electric utility's
service area, if the aggregate coincident average monthly
maximum electrical demand of all such locations during
the 6 months with the customer's highest monthly maximum
electrical demands during the 12 months ending June 30,
1999 equals or exceeds 9.5 megawatts, provided, however,
that an electric utility's obligation to offer delivery
services under this clause (ii) shall not exceed 3.5% of
the maximum electric demand on the electric utility's
system in the 12 months ending June 30, 1999; and (iii)
to non-residential retail customers whose annual electric
energy use comprises 33% of the kilowatt-hour sales,
excluding the kilowatt-hour sales to customers described
in clauses (i) and (ii), to each non-residential retail
customer class of the electric utility.
(2) On or before October 1, 2000, the electric
utility shall offer delivery services to the eligible
governmental customers described in subsections (a) and
(b) of Section 16-125A if the aggregate coincident
average monthly maximum electrical demand of such
customers during the 6 months with the customers' highest
monthly maximum electrical demands during the 12 months
ending June 30, 2000 equals or exceeds 9.5 megawatts.
(2.5) On or before June 1, 2000, an electric
utility serving more than 1,000,000 customers in this
State shall offer delivery services to retail customers
whose annual electric energy use comprises 33% of the
kilowatt hour sales to that group of retail customers
that are classified under Division D, Groups 20 through
39 of the Standard Industrial Classifications set forth
in the Standard Industrial Classification Manual
published by the United States Office of Management and
Budget, excluding the kilowatt-hour sales to those
customers that are eligible for delivery services
pursuant to clause (1)(i), and shall offer delivery
services to its remaining retail customers classified
under Division D, Groups 20 through 39 on or before
October 1, 2000.
(3) On or before December 31, 2000, the electric
utility shall offer delivery services to all remaining
nonresidential retail customers in its service area.
(4) On or before May 1, 2002, the electric utility
shall offer delivery services to all residential retail
customers in its service area.
The loads and kilowatt-hour sales used for purposes of
this subsection shall be those for the 12 months ending June
30, 1999 for nonresidential retail customers. The electric
utility shall identify those customers to be offered delivery
service pursuant to clause (1)(iii) and paragraph (2.5) of
subsection (a) of this Section and Section 16-111(e)(B)(iii)
pursuant to a lottery or other random nondiscriminatory
selection process set forth in the electric utility's
delivery services implementation plan pursuant to Section
16-105, which process may include a registration process
giving each nonresidential customer the opportunity to
register for eligibility for delivery services under this
Section, with a lottery of registered customers to be
conducted if the annual electric energy use of all registered
customers exceeds the limit set forth in clause (1)(iii) or
clause (2.5) or Section 16-111(e)(B)(iii), as applicable;
provided that the provision of this amendatory Act of 1999 as
it relates to the registration and lottery process under
clause (1)(iii) is not intended to nor does it make any
change in the meaning of this Section, but is intended to
remove possible ambiguities, thereby confirming the existing
meaning of this Section prior to the effective date of this
amendatory Act of 1999. Provided, that non-residential retail
customers under common ownership at separate locations within
the electric utility's service area may elect, prior to the
date the electric utility conducts the lottery or other
random selection process for purposes of clause (1)(iii), to
designate themselves as a common ownership group, to be
excluded from such lottery and to instead participate in a
separate lottery for such common ownership group pursuant to
which delivery services will be offered to non-residential
retail customers comprising 33% of the total kilowatt-hour
sales to the common ownership group on or before October 1,
1999. For purposes of this subsection (a), an electric
utility may define "common ownership" to exclude sites which
are not part of the same business, provided, that auxiliary
establishments as defined in the Standard Industrial
Classification Manual published by the United States Office
of Management and Budget shall not be excluded.
(b) The electric utility shall allow the aggregation of
loads that are eligible for delivery services so long as such
aggregation meets the criteria for delivery of electric power
and energy applicable to the electric utility established by
the regional reliability council to which the electric
utility belongs, by an independent system operating
organization to which the electric utility belongs, or by
another organization responsible for overseeing the integrity
and reliability of the transmission system, as such criteria
are in effect from time to time. The Commission may adopt
rules and regulations governing the criteria for aggregation
of the loads utilizing delivery services, but its failure to
do so shall not preclude any eligible customer from electing
delivery services. The electric utility shall allow such
aggregation for any voluntary grouping of customers,
including without limitation those having a common agent with
contractual authority to purchase electric power and energy
and delivery services on behalf of all customers in the
grouping.
(c) An electric utility shall allow a retail customer
that generates power for its own use to include the
electrical demand obtained from the customer's cogeneration
or self-generation facilities that is coincident with the
retail customer's maximum monthly electrical demand on the
electric utility's system in any determination of the
customer's maximum monthly electrical demand for purposes of
determining when such retail customer shall be offered
delivery services pursuant to clause (i) of subparagraph (1)
of subsection (a) of this Section.
(d) The Commission shall establish charges, terms and
conditions for delivery services in accordance with Section
16-108.
(e) Subject to the terms and conditions which the
electric utility is entitled to impose in accordance with
Section 16-108, a retail customer that is eligible to elect
delivery services pursuant to subsection (a) may place all or
a portion of its electric power and energy requirements on
delivery services.
(f) An electric utility may require a retail customer
who elects to (i) use an alternative retail electric supplier
or another electric utility for some but not all of its
electric power or energy requirements, and (ii) use the
electric utility for any portion of its remaining electric
power and energy requirements, to place the portion of the
customer's electric power or energy requirement that is to be
served by the electric utility on a tariff containing charges
that are set to recover the lowest reasonably available cost
to the electric utility of acquiring electric power and
energy on the wholesale electric market to serve such
remaining portion of the customer's electric power and energy
requirement, reasonable compensation for arranging for and
providing such electric power or energy, and the electric
utility's other costs of providing service to such remaining
electric power and energy requirement.
(Source: P.A. 90-561, eff. 12-16-97.)
(220 ILCS 5/16-108)
Sec. 16-108. Recovery of costs associated with the
provision of delivery services.
(a) An electric utility shall file a delivery services
tariff with the Commission at least 210 days prior to the
date that it is required to begin offering such services
pursuant to this Act. An electric utility shall provide the
components of delivery services that are subject to the
jurisdiction of the Federal Energy Regulatory Commission at
the same prices, terms and conditions set forth in its
applicable tariff as approved or allowed into effect by that
Commission. The Commission shall otherwise have the authority
pursuant to Article IX to review, approve, and modify the
prices, terms and conditions of those components of delivery
services not subject to the jurisdiction of the Federal
Energy Regulatory Commission, including the authority to
determine the extent to which such delivery services should
be offered on an unbundled basis. In making any such
determination the Commission shall consider, at a minimum,
the effect of additional unbundling on (i) the objective of
just and reasonable rates, (ii) electric utility employees,
and (iii) the development of competitive markets for electric
energy services in Illinois.
(b) The Commission shall enter an order approving, or
approving as modified, the delivery services tariff no later
than 30 days prior to the date on which the electric utility
must commence offering such services. The Commission may
subsequently modify such tariff pursuant to this Act.
(c) The electric utility's tariffs shall define the
classes of its customers for purposes of delivery services
charges. Delivery services shall be priced and made
available to all retail customers electing delivery services
in each such class on a nondiscriminatory basis regardless of
whether the retail customer chooses the electric utility, an
affiliate of the electric utility, or another entity as its
supplier of electric power and energy. Charges for delivery
services shall be cost based, and shall allow the electric
utility to recover the costs of providing delivery services
through its charges to its delivery service customers that
use the facilities and services associated with such costs.
Such costs shall include the costs of owning, operating and
maintaining transmission and distribution facilities. The
Commission shall also be authorized to consider whether, and
if so to what extent, the following costs are appropriately
included in the electric utility's delivery services rates:
(i) the costs of that portion of generation facilities used
for the production and absorption of reactive power in order
that retail customers located in the electric utility's
service area can receive electric power and energy from
suppliers other than the electric utility, and (ii) the costs
associated with the use and redispatch of generation
facilities to mitigate constraints on the transmission or
distribution system in order that retail customers located in
the electric utility's service area can receive electric
power and energy from suppliers other than the electric
utility. Nothing in this subsection shall be construed as
directing the Commission to allocate any of the costs
described in (i) or (ii) that are found to be appropriately
included in the electric utility's delivery services rates to
any particular customer group or geographic area in setting
delivery services rates.
(d) The Commission shall establish charges, terms and
conditions for delivery services that are just and reasonable
and shall take into account customer impacts when
establishing such charges. In establishing charges, terms and
conditions for delivery services, the Commission shall take
into account voltage level differences. A retail customer
shall have the option to request to purchase electric service
at any delivery service voltage reasonably and technically
feasible from the electric facilities serving that customer's
premises provided that there are no significant adverse
impacts upon system reliability or system efficiency. A
retail customer shall also have the option to request to
purchase electric service at any point of delivery that is
reasonably and technically feasible provided that there are
no significant adverse impacts on system reliability or
efficiency. Such requests shall not be unreasonably denied.
(e) Electric utilities shall recover the costs of
installing, operating or maintaining facilities for the
particular benefit of one or more delivery services
customers, including without limitation any costs incurred in
complying with a customer's request to be served at a
different voltage level, directly from the retail customer or
customers for whose benefit the costs were incurred, to the
extent such costs are not recovered through the charges
referred to in subsections (c) and (d) of this Section.
(f) An electric utility shall be entitled but not
required to implement transition charges in conjunction with
the offering of delivery services pursuant to Section 16-104.
If an electric utility implements transition charges, it
shall implement such charges for all delivery services
customers and for all customers described in subsection (h),
but shall not implement transition charges for power and
energy that a retail customer takes from cogeneration or
self-generation facilities located on that retail customer's
premises, if such facilities meet the following criteria:
(i) the cogeneration or self-generation facilities
serve a single retail customer and are located on that
retail customer's premises (for purposes of this
subparagraph and subparagraph (ii), an industrial or
manufacturing retail customer and a third party
contractor that is served by such industrial or
manufacturing customer through such retail customer's own
electrical distribution facilities under the
circumstances described in subsection (vi) of the
definition of "alternative retail electric supplier" set
forth in Section 16-102, shall be considered a single
retail customer);
(ii) the cogeneration or self-generation facilities
either (A) are sized pursuant to generally accepted
engineering standards for the retail customer's
electrical load at that premises (taking into account
standby or other reliability considerations related to
that retail customer's operations at that site) or (B) if
the facility is a cogeneration facility located on the
retail customer's premises, the retail customer is the
thermal host for that facility and the facility has been
designed to meet that retail customer's thermal energy
requirements resulting in electrical output beyond that
retail customer's electrical demand at that premises,
comply with the operating and efficiency standards
applicable to "qualifying facilities" specified in title
18 Code of Federal Regulations Section 292.205 as in
effect on the effective date of this amendatory Act of
1999;
(iii) the retail customer on whose premises the
facilities are located either has an exclusive right to
receive, and corresponding obligation to pay for, all of
the electrical capacity of the facility, or in the case
of a cogeneration facility that has been designed to meet
the retail customer's thermal energy requirements at that
premises, an identified amount of the electrical capacity
of the facility, over a minimum 5-year period; and
(iv) if the cogeneration facility is sized for the
retail customer's thermal load at that premises but
exceeds the electrical load, any sales of excess power or
energy are made only at wholesale, are subject to the
jurisdiction of the Federal Energy Regulatory Commission,
and are not for the purpose of circumventing the
provisions of this subsection (f).
If a generation facility located at a retail customer's
premises does not meet the above criteria, an electric
utility implementing transition charges shall implement a
transition charge until December 31, 2006 for any power and
energy taken by such retail customer from such facility as if
such power and energy had been delivered by the electric
utility. Provided, however, that an industrial retail
customer that is taking power from a generation facility that
does not meet the above criteria but that is located on such
customer's premises will not be subject to a transition
charge for the power and energy taken by such retail customer
from such generation facility if the facility does not serve
any other retail customer and either was installed on behalf
of the customer and for its own use prior to January 1, 1997,
or is both predominantly fueled by byproducts of such
customer's manufacturing process at such premises and sells
or offers an average of 300 megawatts or more of electricity
produced from such generation facility into the wholesale
market. Such charges shall be calculated as provided in
Section 16-102, and shall be collected on each kilowatt-hour
delivered under a delivery services tariff to a retail
customer from the date the customer first takes delivery
services until December 31, 2006 except as provided in
subsection (h) of this Section. Provided, however, that an
electric utility, other than an electric utility providing
service to at least 1,000,000 customers in this State on
January 1, 1999, shall be entitled to petition for entry of
an order by the Commission authorizing the electric utility
to implement transition charges for an additional period
ending no later than December 31, 2008. The electric utility
shall file its petition with supporting evidence no earlier
than 16 months, and no later than 12 months, prior to
December 31, 2006. The Commission shall hold a hearing on
the electric utility's petition and shall enter its order no
later than 8 months after the petition is filed. The
Commission shall determine whether and to what extent the
electric utility shall be authorized to implement transition
charges for an additional period. The Commission may
authorize the electric utility to implement transition
charges for some or all of the additional period, and shall
determine the mitigation factors to be used in implementing
such transition charges; provided, that the Commission shall
not authorize mitigation factors less than 110% of those in
effect during the 12 months ended December 31, 2006. In
making its determination, the Commission shall consider the
following factors: the necessity to implement transition
charges for an additional period in order to maintain the
financial integrity of the electric utility; the prudence of
the electric utility's actions in reducing its costs since
the effective date of this amendatory Act of 1997; the
ability of the electric utility to provide safe, adequate and
reliable service to retail customers in its service area; and
the impact on competition of allowing the electric utility to
implement transition charges for the additional period.
(g) The electric utility shall file tariffs that
establish the transition charges to be paid by each class of
customers to the electric utility in conjunction with the
provision of delivery services. The electric utility's
tariffs shall define the classes of its customers for
purposes of calculating transition charges. The electric
utility's tariffs shall provide for the calculation of
transition charges on a customer-specific basis for any
retail customer whose average monthly maximum electrical
demand on the electric utility's system during the 6 months
with the customer's highest monthly maximum electrical
demands equals or exceeds 3.0 megawatts for electric
utilities having more than 1,000,000 customers, and for other
electric utilities for any customer that has an average
monthly maximum electrical demand on the electric utility's
system of one megawatt or more, and (A) for which there
exists data on the customer's usage during the 3 years
preceding the date that the customer became eligible to take
delivery services, or (B) for which there does not exist data
on the customer's usage during the 3 years preceding the date
that the customer became eligible to take delivery services,
if in the electric utility's reasonable judgment there exists
comparable usage information or a sufficient basis to develop
such information, and further provided that the electric
utility can require customers for which an individual
calculation is made to sign contracts that set forth the
transition charges to be paid by the customer to the electric
utility pursuant to the tariff.
(h) An electric utility shall also be entitled to file
tariffs that allow it to collect transition charges from
retail customers in the electric utility's service area that
do not take delivery services but that take electric power or
energy from an alternative retail electric supplier or from
an electric utility other than the electric utility in whose
service area the customer is located. Such charges shall be
calculated, in accordance with the definition of transition
charges in Section 16-102, for the period of time that the
customer would be obligated to pay transition charges if it
were taking delivery services, except that no deduction for
delivery services revenues shall be made in such calculation,
and usage data from the customer's class shall be used where
historical usage data is not available for the individual
customer. The customer shall be obligated to pay such
charges on a lump sum basis on or before the date on which
the customer commences to take service from the alternative
retail electric supplier or other electric utility, provided,
that the electric utility in whose service area the customer
is located shall offer the customer the option of signing a
contract pursuant to which the customer pays such charges
ratably over the period in which the charges would otherwise
have applied.
(i) An electric utility shall be entitled to add to the
bills of delivery services customers charges pursuant to
Sections 9-221, 9-222 (except as provided in Section
9-222.1), and Section 16-114 of this Act, Section 5-5 of the
Electricity Infrastructure Maintenance Fee Law, Section 6-5
of the Renewable Energy, Energy Efficiency, and Coal
Resources Development Law of 1997, and Section 13 of the
Energy Assistance Act of 1989.
(j) If a retail customer that obtains electric power and
energy from cogeneration or self-generation facilities
installed for its own use on or before January 1, 1997,
subsequently takes service from an alternative retail
electric supplier or an electric utility other than the
electric utility in whose service area the customer is
located for any portion of the customer's electric power and
energy requirements formerly obtained from those facilities
(including that amount purchased from the utility in lieu of
such generation and not as standby power purchases, under a
cogeneration displacement tariff in effect as of the
effective date of this amendatory Act of 1997), the
transition charges otherwise applicable pursuant to
subsections (f), (g), or (h) of this Section shall not be
applicable in any year to that portion of the customer's
electric power and energy requirements formerly obtained from
those facilities, provided, that for purposes of this
subsection (j), such portion shall not exceed the average
number of kilowatt-hours per year obtained from the
cogeneration or self-generation facilities during the 3 years
prior to the date on which the customer became eligible for
delivery services, except as provided in subsection (f) of
Section 16-110.
(Source: P.A. 90-561, eff. 12-16-97.)
(220 ILCS 5/16-110)
Sec. 16-110. Delivery services customer power purchase
options.
(a) Each electric utility shall offer a tariffed service
or services in accordance with the terms and conditions set
forth in this Section pursuant to which its non-residential
delivery services customers may purchase from the electric
utility an amount of electric power and energy that is equal
to or less than the amounts that are delivered by such
electric utility.
(b) Except as provided in subsection (o) of Section
16-112, a non-residential delivery services customer that is
paying transition charges to the electric utility shall be
permitted to purchase electric power and energy from the
electric utility at a price or prices equal to the sum of (i)
the market values that are determined for the electric
utility in accordance with Section 16-112 and used by the
electric utility to calculate the customer's transition
charges and (ii) a fee that compensates the electric utility
for any administrative costs it incurs in arranging to supply
such electric power and energy. The electric utility may
require that the customer purchase such electric power and
energy for periods of not less than one year and may also
require that the customer give up to 30 days notice for a
purchase of one year's duration, and 90 days notice for a
purchase of more than one year's duration. A non-residential
delivery service customer exercising the option described in
this subsection may sell or assign its interests in the
electric power or energy that the customer has purchased. In
the case of any such assignment or sale by any
non-residential delivery service customer to an alternative
retail electric supplier that is serving such customer and
has been certified pursuant to Section 16-115, an electric
utility serving more than 500,000 customers shall provide
such power and energy at the same market value as set forth
in clause (i) of this subsection, together with the fee
charged under clause (ii) of this subsection, less any costs
included in such market value or fee with respect to retail
marketing activities, provided, however, that in no event
shall an electric utility be required after June 1, 2002 to
provide power and energy at this market value plus fee that
excludes marketing costs for any such assignment or sale by a
non-residential customer to an alternative retail electric
supplier. At least twice per year, each electric utility
shall notify its small commercial retail customers, through
bill inserts and other similar means, of their option to
obtain electric power and energy through purchases at market
value pursuant to this subsection.
(c) After the transition charge period applicable to a
non-residential delivery services customer, and until the
provision of electric power and energy is declared
competitive for the customer group to which the customer
belongs, a non-residential delivery services customer that
paid any transition charges it was legally obligated to pay
to an electric utility shall be permitted to purchase
electric power and energy from the electric utility for
contract periods of one year at a price or prices equal to
the sum of (i) the market value determined for that
customer's class pursuant to Section 16-112 and (ii) to the
extent it is not included in such market value, a fee to
compensate the electric utility for the service of arranging
the supply or purchase of such electric power and energy.
The electric utility may require that a delivery services
customer give the following notice for such a purchase: (i)
for a small commercial retail customer, not more than 30
days; (ii) for a nonresidential customer which is not a small
commercial retail customer but which has maximum electrical
demand of less than 500 kilowatts, not more than 6 months;
(iii) for a nonresidential customer with maximum electrical
demand of 500 kilowatts or more but less than one megawatt,
not more than 9 months; and (iv) for a nonresidential
customer with maximum electrical demand of one megawatt or
more, not more than one year. At least twice per year, each
electric utility shall notify its small commercial retail
customers, through bill inserts or other similar means, of
their option to obtain electric power and energy through
purchases at market value pursuant to this subsection.
(d) After the transition charge period applicable to a
non-residential delivery services customer, and until the
provision of electric power and energy is declared
competitive for the customer group to which the customer
belongs, a non-residential delivery services customer, other
than a small commercial retail customer, that paid any
transition charges it was legally obligated to pay to an
electric utility shall be permitted to purchase electric
power and energy from the electric utility for contract
periods of one year at a price or prices equal to (A) the sum
of (i) the electric utility's actual cost of procuring such
electric power and energy and (ii) a broker's fee to
compensate the electric utility for arranging the supply, or,
if the utility so elects, (B) the market value of electric
power or energy provided by the electric utility determined
as set forth in the electric utility's tariff for that
customer's class. The electric utility may require that the
delivery services customer give up to 30 days notice for such
a purchase.
(e) Each delivery services customer purchasing electric
power and energy from the electric utility pursuant to a
tariff filed in accordance with this Section shall also pay
all of the applicable charges set forth in the electric
utility's delivery services tariffs and any other tariffs
applicable to the services provided to that customer by the
electric utility.
(f) An electric utility can require a retail customer
taking delivery services that formerly generated electric
power and energy for its own use and that would not otherwise
pay transition charges on a portion of its electric power and
energy requirements served on delivery services to pay
transition charges on that portion of the customer's electric
power and energy requirements as a condition of exercising
the delivery services customer power purchase options set
forth in this Section.
(Source: P.A. 90-561, eff. 12-16-97.)
(220 ILCS 5/16-111)
Sec. 16-111. Rates and restructuring transactions during
mandatory transition period.
(a) During the mandatory transition period,
notwithstanding any provision of Article IX of this Act, and
except as provided in subsections (b), (d), (e), and (f) of
this Section, the Commission shall not (i) initiate,
authorize or order any change by way of increase (other than
in connection with a request for rate increase which was
filed after September 1, 1997 but prior to October 15, 1997,
by an electric utility serving less than 12,500 customers in
this state), (ii) initiate or, unless requested by the
electric utility, authorize or order any change by way of
decrease, restructuring or unbundling (except as provided in
Section 16-109A), in the rates of any electric utility that
were in effect on October 1, 1996, or (iii) in any order
approving any application for a merger pursuant to Section
7-204 that was pending as of May 16, 1997, impose any
condition requiring any filing for an increase, decrease, or
change in, or other review of, an electric utility's rates or
enforce any such condition of any such order; provided,
however, that this subsection shall not prohibit the
Commission from:
(1) approving the application of an electric
utility to implement an alternative to rate of return
regulation or a regulatory mechanism that rewards or
penalizes the electric utility through adjustment of
rates based on utility performance, pursuant to Section
9-244;
(2) authorizing an electric utility to eliminate
its fuel adjustment clause and adjust its base rate
tariffs in accordance with subsection (b), (d), or (f) of
Section 9-220 of this Act, to fix its fuel adjustment
factor in accordance with subsection (c) of Section 9-220
of this Act, or to eliminate its fuel adjustment clause
in accordance with subsection (e) of Section 9-220 of
this Act;
(3) ordering into effect tariffs for delivery
services and transition charges in accordance with
Sections 16-104 and 16-108, for real-time pricing in
accordance with Section 16-107, or the options required
by Section 16-110 and subsection (n) of 16-112, allowing
a billing experiment in accordance with Section 16-106,
or modifying delivery services tariffs in accordance with
Section 16-109; or
(4) ordering or allowing into effect any tariff to
recover charges pursuant to Sections 9-201.5, 9-220.1,
9-221, 9-222 (except as provided in Section 9-222.1),
16-108, and 16-114 of this Act, Section 5-5 of the
Electricity Infrastructure Maintenance Fee Law, Section
6-5 of the Renewable Energy, Energy Efficiency, and Coal
Resources Development Law of 1997, and Section 13 of the
Energy Assistance Act of 1989.
(b) Notwithstanding the provisions of subsection (a),
each Illinois electric utility serving more than 12,500
customers in Illinois shall file tariffs (i) reducing,
effective August 1, 1998, each component of its base rates to
residential retail customers by 15% from the base rates in
effect immediately prior to January 1, 1998 and (ii) if the
public utility provides electric service to (A) more than
500,000 customers but less than 1,000,000 customers in this
State on January 1, 1999 the effective date of this
amendatory Act of 1997, reducing, effective May 1, 2002, each
component of its base rates to residential retail customers
by an additional 5% from the base rates in effect immediately
prior to January 1, 1998, or (B) at least 1,000,000 customers
in this State on January 1, 1999, reducing, effective October
1, 2001, each component of its base rates to residential
retail customers by an additional 5% from the base rates in
effect immediately prior to January 1, 1998. Provided,
however, that (A) if an electric utility's average
residential retail rate is less than or equal to the average
residential retail rate for a group of Midwest Utilities
(consisting of all investor-owned electric utilities with
annual system peaks in excess of 1000 megawatts in the States
of Illinois, Indiana, Iowa, Kentucky, Michigan, Missouri,
Ohio, and Wisconsin), based on data reported on Form 1 to the
Federal Energy Regulatory Commission for calendar year 1995,
then it shall only be required to file tariffs (i) reducing,
effective August 1, 1998, each component of its base rates to
residential retail customers by 5% from the base rates in
effect immediately prior to January 1, 1998, (ii) reducing,
effective October 1, 2000, each component of its base rates
to residential retail customers by the lesser of 5% of the
base rates in effect immediately prior to January 1, 1998 or
the percentage by which the electric utility's average
residential retail rate exceeds the average residential
retail rate of the Midwest Utilities, based on data reported
on Form 1 to the Federal Energy Regulatory Commission for
calendar year 1999, and (iii) reducing, effective October 1,
2002, each component of its base rates to residential retail
customers by an additional amount equal to the lesser of 5%
of the base rates in effect immediately prior to January 1,
1998 or the percentage by which the electric utility's
average residential retail rate exceeds the average
residential retail rate of the Midwest Utilities, based on
data reported on Form 1 to the Federal Energy Regulatory
Commission for calendar year 2001; and (B) if the average
residential retail rate of an electric utility serving
between 150,000 and 250,000 retail customers in this State on
January 1, 1995 is less than or equal to 90% of the average
residential retail rate for the Midwest Utilities, based on
data reported on Form 1 to the Federal Energy Regulatory
Commission for calendar year 1995, then it shall only be
required to file tariffs (i) reducing, effective August 1,
1998, each component of its base rates to residential retail
customers by 2% from the base rates in effect immediately
prior to January 1, 1998; (ii) reducing, effective October 1,
2000, each component of its base rates to residential retail
customers by 2% from the base rate in effect immediately
prior to January 1, 1998; and (iii) reducing, effective
October 1, 2002, each component of its base rates to
residential retail customers by 1% from the base rates in
effect immediately prior to January 1, 1998. Provided,
further, that any electric utility for which a decrease in
base rates has been or is placed into effect between October
1, 1996 and the dates specified in the preceding sentences of
this subsection, other than pursuant to the requirements of
this subsection, shall be entitled to reduce the amount of
any reduction or reductions in its base rates required by
this subsection by the amount of such other decrease. The
tariffs required under this subsection shall be filed 45 days
in advance of the effective date. Notwithstanding anything to
the contrary in Section 9-220 of this Act, no restatement of
base rates in conjunction with the elimination of a fuel
adjustment clause under that Section shall result in a lesser
decrease in base rates than customers would otherwise receive
under this subsection had the electric utility's fuel
adjustment clause not been eliminated.
(c) Any utility reducing its base rates by 15% on August
1, 1998 pursuant to subsection (b) shall include the
following statement on its bills for residential customers
from August 1 through December 31, 1998: "Effective August 1,
1998, your rates have been reduced by 15% by the Electric
Service Customer Choice and Rate Relief Law of 1997 passed by
the Illinois General Assembly.". Any utility reducing its
base rates by 5% on August 1, 1998, pursuant to subsection
(b) shall include the following statement on its bills for
residential customers from August 1 through December 31,
1998: "Effective August 1, 1998, your rates have been
reduced by 5% by the Electric Service Customer Choice and
Rate Relief Law of 1997 passed by the Illinois General
Assembly.".
Any utility reducing its base rates by 2% on August 1,
1998 pursuant to subsection (b) shall include the following
statement on its bills for residential customers from August
1 through December 31, 1998: "Effective August 1, 1998, your
rates have been reduced by 2% by the Electric Service
Customer Choice and Rate Relief Law of 1997 passed by the
Illinois General Assembly.".
(d) During the mandatory transition period, but not
before January 1, 2000, and notwithstanding the provisions
of subsection (a), an electric utility may request an
increase in its base rates if the electric utility
demonstrates that the 2-year average of its earned rate of
return on common equity, calculated as its net income
applicable to common stock divided by the average of its
beginning and ending balances of common equity using data
reported in the electric utility's Form 1 report to the
Federal Energy Regulatory Commission but adjusted to remove
the effects of accelerated depreciation or amortization or
other transition or mitigation measures implemented by the
electric utility pursuant to subsection (g) of this Section
and the effect of any refund paid pursuant to subsection (e)
of this Section, is below the 2-year average for the same 2
years of the monthly average yields of 30-year U.S. Treasury
bonds published by the Board of Governors of the Federal
Reserve System in its weekly H.15 Statistical Release or
successor publication. The Commission shall review the
electric utility's request, and may review the justness and
reasonableness of all rates for tariffed services, in
accordance with the provisions of Article IX of this Act,
provided that the Commission shall consider any special or
negotiated adjustments to the revenue requirement agreed to
between the electric utility and the other parties to the
proceeding. In setting rates under this Section, the
Commission shall exclude the costs and revenues that are
associated with competitive services and any billing or
pricing experiments conducted under Section 16-106.
(e) For the purposes of this subsection (e) all
calculations and comparisons shall be performed for the
Illinois operations of multijurisdictional utilities. During
the mandatory transition period, notwithstanding the
provisions of subsection (a), if the 2-year average of an
electric utility's earned rate of return on common equity,
calculated as its net income applicable to common stock
divided by the average of its beginning and ending balances
of common equity using data reported in the electric
utility's Form 1 report to the Federal Energy Regulatory
Commission but adjusted to remove the effect of any refund
paid under this subsection (e), and further adjusted to
include the annual amortization of any difference between the
consideration received by an affiliated interest of the
electric utility in the sale of an asset which had been sold
or transferred by the electric utility to the affiliated
interest subsequent to the effective date of this amendatory
Act of 1997 and the consideration for which such asset had
been sold or transferred to the affiliated interest, with
such difference to be amortized ratably from the date of the
sale by the affiliated interest to December 31, 2006, exceeds
the 2-year average of the Index for the same 2 years by 1.5
or more percentage points, the electric utility shall make
refunds to customers beginning the first billing day of April
in the following year in the manner described in paragraph
(3) of this subsection. For purposes of this subsection (e),
the "Index" shall be the sum of (A) the average for the 12
months ended September 30 of the monthly average yields of
30-year U.S. Treasury bonds published by the Board of
Governors of the Federal Reserve System in its weekly H.15
Statistical Release or successor publication for each year
1998 through 2004, and (B) (i) 4.00 percentage points for
each of the 12-month periods ending September 30, 1998
through September 30, 1999 or 8.00 percentage points if the
electric utility's average residential retail rate is less
than or equal to 90% of the average residential retail rate
for the "Midwest Utilities", as that term is defined in
subsection (b) of this Section, based on data reported on
Form 1 to the Federal Energy Regulatory Commission for
calendar year 1995, and the electric utility served between
150,000 and 250,000 retail customers on January 1, 1995, or
(ii) 7.00 5.00 percentage points for each of the 12-month
periods ending September 30, 2000 through September 30, 2004
if the electric utility was providing service to at least
1,000,000 customers in this State on January 1, 1999, or 9.00
percentage points if the electric utility's average
residential retail rate is less than or equal to 90% of the
average residential retail rate for the "Midwest Utilities",
as that term is defined in subsection (b) of this Section,
based on data reported on Form 1 to the Federal Energy
Regulatory Commission for calendar year 1995 and the electric
utility served between 150,000 and 250,000 retail customers
in this State on January 1, 1995, (iii) 11.00 percentage
points for each of the 12-month periods ending September 30,
2000 through September 30, 2004, but only if the electric
utility's average residential retail rate is less than or
equal to 90% of the average residential retail rate for the
"Midwest Utilities", as that term is defined in subsection
(b) of this Section, based on data reported on Form 1 to the
Federal Energy Regulatory Commission for calendar year 1995,
the electric utility served between 150,000 and 250,000
retail customers in this State on January 1, 1995, and the
electric utility offers delivery services on or before June
1, 2000 to retail customers whose annual electric energy use
comprises 33% of the kilowatt hour sales to that group of
retail customers that are classified under Division D, Groups
20 through 39 of the Standard Industrial Classifications set
forth in the Standard Industrial Classification Manual
published by the United States Office of Management and
Budget, excluding the kilowatt hour sales to those customers
that are eligible for delivery services pursuant to Section
16-104(a)(1)(i), and offers delivery services to its
remaining retail customers classified under Division D,
Groups 20 through 39 on or before October 1, 2000, and,
provided further, that the electric utility commits not to
petition pursuant to Section 16-108(f) for entry of an order
by the Commission authorizing the electric utility to
implement transition charges for an additional period after
December 31, 2006, or (iv) 5.00 percentage points for each of
the 12-month periods ending September 30, 2000 through
September 30, 2004 for all other electric utilities or 7.00
percentage points for such utilities for each of the 12-month
periods ending September 30, 2000 through September 30, 2004
for any such utility that commits not to petition pursuant to
Section 16-108(f) for entry of an order by the Commission
authorizing the electric utility to implement transition
charges for an additional period after December 31, 2006.
(1) For purposes of this subsection (e), "excess
earnings" means the difference between (A) the 2-year
average of the electric utility's earned rate of return
on common equity, less (B) the 2-year average of the sum
of (i) the Index applicable to each of the 2 years and
(ii) 1.5 percentage points; provided, that "excess
earnings" shall never be less than zero.
(2) On or before March 31 of each year 2000 through
2005 each electric utility shall file a report with the
Commission showing its earned rate of return on common
equity, calculated in accordance with this subsection,
for the preceding calendar year and the average for the
preceding 2 calendar years.
(3) If an electric utility has excess earnings,
determined in accordance with paragraphs (1) and (2) of
this subsection, the refunds which the electric utility
shall pay to its customers beginning the first billing
day of April in the following year shall be calculated
and applied as follows:
(i) The electric utility's excess earnings
shall be multiplied by the average of the beginning
and ending balances of the electric utility's common
equity for the 2-year period in which excess
earnings occurred.
(ii) The result of the calculation in (i)
shall be multiplied by 0.50 and then divided by a
number equal to 1 minus the electric utility's
composite federal and State income tax rate.
(iii) The result of the calculation in (ii)
shall be divided by the sum of the electric
utility's projected total kilowatt-hour sales to
retail customers plus projected kilowatt-hours to be
delivered to delivery services customers over a one
year period beginning with the first billing date in
April in the succeeding year to determine a cents
per kilowatt-hour refund factor.
(iv) The cents per kilowatt-hour refund factor
calculated in (iii) shall be credited to the
electric utility's customers by applying the factor
on the customer's monthly bills to each
kilowatt-hour sold or delivered until the total
amount calculated in (ii) has been paid to
customers.
(f) During the mandatory transition period, an electric
utility may file revised tariffs reducing the price of any
tariffed service offered by the electric utility for all
customers taking that tariffed service, which shall be
effective 7 days after filing.
(g) During the mandatory transition period, an electric
utility may, without obtaining any approval of the Commission
other than that provided for in this subsection and
notwithstanding any other provision of this Act or any rule
or regulation of the Commission that would require such
approval:
(1) implement a reorganization, other than a merger
of 2 or more public utilities as defined in Section 3-105
or their holding companies;
(2) retire generating plants from service;
(3) sell, assign, lease or otherwise transfer
assets to an affiliated or unaffiliated entity and as
part of such transaction enter into service agreements,
power purchase agreements, or other agreements with the
transferee; provided, however, that the prices, terms and
conditions of any power purchase agreement must be
approved or allowed into effect by the Federal Energy
Regulatory Commission; or
(4) use any accelerated cost recovery method
including accelerated depreciation, accelerated
amortization or other capital recovery methods, or record
reductions to the original cost of its assets.
In order to implement a reorganization, retire generating
plants from service, or sell, assign, lease or otherwise
transfer assets pursuant to this Section, the electric
utility shall comply with subsections (c) and (d) of Section
16-128, if applicable, and subsection (k) of this Section, if
applicable, and provide the Commission with at least 30 days
notice of the proposed reorganization or transaction, which
notice shall include the following information:
(i) a complete statement of the entries that
the electric utility will make on its books and
records of account to implement the proposed
reorganization or transaction together with a
certification from an independent certified public
accountant that such entries are in accord with
generally accepted accounting principles and, if the
Commission has previously approved guidelines for
cost allocations between the utility and its
affiliates, a certification from the chief
accounting officer of the utility that such entries
are in accord with those cost allocation guidelines;
(ii) a description of how the electric utility
will use proceeds of any sale, assignment, lease or
transfer to retire debt or otherwise reduce or
recover the costs of services provided by such
electric utility;
(iii) a list of all federal approvals or
approvals required from departments and agencies of
this State, other than the Commission, that the
electric utility has or will obtain before
implementing the reorganization or transaction;
(iv) an irrevocable commitment by the electric
utility that it will not, as a result of the
transaction, impose any stranded cost charges that
it might otherwise be allowed to charge retail
customers under federal law or increase the
transition charges that it is otherwise entitled to
collect under this Article XVI; and
(v) if the electric utility proposes to sell,
assign, lease or otherwise transfer a generating
plant that brings the amount of net dependable
generating capacity transferred pursuant to this
subsection to an amount equal to or greater than 15%
of the electric utility's net dependable capacity as
of the effective date of this amendatory Act of
1997, and enters into a power purchase agreement
with the entity to which such generating plant is
sold, assigned, leased, or otherwise transferred,
the electric utility also agrees, if its fuel
adjustment clause has not already been eliminated,
to eliminate its fuel adjustment clause in
accordance with subsection (b) of Section 9-220 for
a period of time equal to the length of any such
power purchase agreement or successor agreement, or
until January 1, 2005, whichever is longer; if the
capacity of the generating plant so transferred and
related power purchase agreement does not result in
the elimination of the fuel adjustment clause under
this subsection, and the fuel adjustment clause has
not already been eliminated, the electric utility
shall agree that the costs associated with the
transferred plant that are included in the
calculation of the rate per kilowatt-hour to be
applied pursuant to the electric utility's fuel
adjustment clause during such period shall not
exceed the per kilowatt-hour cost associated with
such generating plant included in the electric
utility's fuel adjustment clause during the full
calendar year preceding the transfer, with such
limit to be adjusted each year thereafter by the
Gross Domestic Product Implicit Price Deflator.
(vi) In addition, if the electric utility
proposes to sell, assign, or lease, (A) either (1)
an amount of generating plant that brings the amount
of net dependable generating capacity transferred
pursuant to this subsection to an amount equal to or
greater than 15% of its net dependable capacity on
the effective date of this amendatory Act of 1997,
or (2) one or more generating plants with a total
net dependable capacity of 1100 megawatts, or (B)
transmission and distribution facilities that either
(1) bring the amount of transmission and
distribution facilities transferred pursuant to this
subsection to an amount equal to or greater than 15%
of the electric utility's total depreciated original
cost investment in such facilities, or (2) represent
an investment of $25,000,000 in terms of total
depreciated original cost, the electric utility
shall provide, in addition to the information listed
in subparagraphs (i) through (v), the following
information: (A) a description of how the electric
utility will meet its service obligations under this
Act in a safe and reliable manner and (B) the
electric utility's projected earned rate of return
on common equity, calculated in accordance with
subsection (d) of this Section, for each year from
the date of the notice through December 31, 2004
both with and without the proposed transaction. If
the Commission has not issued an order initiating a
hearing on the proposed transaction within 30 days
after the date the electric utility's notice is
filed, the transaction shall be deemed approved.
The Commission may, after notice and hearing,
prohibit the proposed transaction if it makes either
or both of the following findings: (1) that the
proposed transaction will render the electric
utility unable to provide its tariffed services in a
safe and reliable manner, or (2) that there is a
strong likelihood that consummation of the proposed
transaction will result in the electric utility
being entitled to request an increase in its base
rates during the mandatory transition period
pursuant to subsection (d) of this Section. Any
hearing initiated by the Commission into the
proposed transaction shall be completed, and the
Commission's final order approving or prohibiting
the proposed transaction shall be entered, within 90
days after the date the electric utility's notice
was filed. Provided, however, that a sale,
assignment, or lease of transmission facilities to
an independent system operator that meets the
requirements of Section 16-126 shall not be subject
to Commission approval under this Section.
In any proceeding conducted by the Commission
pursuant to this subparagraph (vi), intervention
shall be limited to parties with a direct interest
in the transaction which is the subject of the
hearing and any statutory consumer protection agency
as defined in subsection (d) of Section 9-102.1.
Notwithstanding the provisions of Section 10-113 of
this Act, any application seeking rehearing of an
order issued under this subparagraph (vi), whether
filed by the electric utility or by an intervening
party, shall be filed within 10 days after service
of the order.
The Commission shall not in any subsequent proceeding or
otherwise, review such a reorganization or other transaction
authorized by this Section, but shall retain the authority to
allocate costs as stated in Section 16-111(i). An entity to
which an electric utility sells, assigns, leases or transfers
assets pursuant to this subsection (g) shall not, as a result
of the transactions specified in this subsection (g), be
deemed a public utility as defined in Section 3-105. Nothing
in this subsection (g) shall change any requirement under the
jurisdiction of the Illinois Department of Nuclear Safety
including, but not limited to, the payment of fees. Nothing
in this subsection (g) shall exempt a utility from obtaining
a certificate pursuant to Section 8-406 of this Act for the
construction of a new electric generating facility. Nothing
in this subsection (g) is intended to exempt the transactions
hereunder from the operation of the federal or State
antitrust laws. Nothing in this subsection (g) shall require
an electric utility to use the procedures specified in this
subsection for any of the transactions specified herein. Any
other procedure available under this Act may, at the electric
utility's election, be used for any such transaction.
(h) During the mandatory transition period, the
Commission shall not establish or use any rates of
depreciation, which for purposes of this subsection shall
include amortization, for any electric utility other than
those established pursuant to subsection (c) of Section 5-104
of this Act or utilized pursuant to subsection (g) of this
Section. Provided, however, that in any proceeding to review
an electric utility's rates for tariffed services pursuant to
Section 9-201, 9-202, 9-250 or 16-111(d) of this Act, the
Commission may establish new rates of depreciation for the
electric utility in the same manner provided in subsection
(d) of Section 5-104 of this Act. An electric utility
implementing an accelerated cost recovery method including
accelerated depreciation, accelerated amortization or other
capital recovery methods, or recording reductions to the
original cost of its assets, pursuant to subsection (g) of
this Section, shall file a statement with the Commission
describing the accelerated cost recovery method to be
implemented or the reduction in the original cost of its
assets to be recorded. Upon the filing of such statement,
the accelerated cost recovery method or the reduction in the
original cost of assets shall be deemed to be approved by the
Commission as though an order had been entered by the
Commission.
(i) Subsequent to the mandatory transition period, the
Commission, in any proceeding to establish rates and charges
for tariffed services offered by an electric utility, shall
consider only (1) the then current or projected revenues,
costs, investments and cost of capital directly or indirectly
associated with the provision of such tariffed services; (2)
collection of transition charges in accordance with Sections
16-102 and 16-108 of this Act; (3) recovery of any employee
transition costs as described in Section 16-128 which the
electric utility is continuing to incur, including recovery
of any unamortized portion of such costs previously incurred
or committed, with such costs to be equitably allocated among
bundled services, delivery services, and contracts with
alternative retail electric suppliers; and (4) recovery of
the costs associated with the electric utility's compliance
with decommissioning funding requirements; and shall not
consider any other revenues, costs, investments or cost of
capital of either the electric utility or of any affiliate of
the electric utility that are not associated with the
provision of tariffed services. In setting rates for
tariffed services, the Commission shall equitably allocate
joint and common costs and investments between the electric
utility's competitive and tariffed services. In determining
the justness and reasonableness of the electric power and
energy component of an electric utility's rates for tariffed
services subsequent to the mandatory transition period and
prior to the time that the provision of such electric power
and energy is declared competitive, the Commission shall
consider the extent to which the electric utility's tariffed
rates for such component for each customer class exceed the
market value determined pursuant to Section 16-112, and, if
the electric power and energy component of such tariffed rate
exceeds the market value by more than 10% for any customer
class, may establish such electric power and energy component
at a rate equal to the market value plus 10%. In any such
case, the Commission may also elect to extend the provisions
of Section 16-111(e) for any period in which the electric
utility is collecting transition charges, using information
applicable to such period.
(j) During the mandatory transition period, an electric
utility may elect to transfer to a non-operating income
account under the Commission's Uniform System of Accounts
either or both of (i) an amount of unamortized investment tax
credit that is in addition to the ratable amount which is
credited to the electric utility's operating income account
for the year in accordance with Section 46(f)(2) of the
federal Internal Revenue Code of 1986, as in effect prior to
P.L. 101-508, or (ii) "excess tax reserves", as that term is
defined in Section 203(e)(2)(A) of the federal Tax Reform Act
of 1986, provided that (A) the amount transferred may not
exceed the amount of the electric utility's assets that were
created pursuant to Statement of Financial Accounting
Standards No. 71 which the electric utility has written off
during the mandatory transition period, and (B) the transfer
shall not be effective until approved by the Internal Revenue
Service. An electric utility electing to make such a
transfer shall file a statement with the Commission stating
the amount and timing of the transfer for which it intends to
request approval of the Internal Revenue Service, along with
a copy of its proposed request to the Internal Revenue
Service for a ruling. The Commission shall issue an order
within 14 days after the electric utility's filing approving,
subject to receipt of approval from the Internal Revenue
Service, the proposed transfer.
(k) If an electric utility is selling or transferring to
a single buyer 5 or more generating plants located in this
State with a total net dependable capacity of 5000 megawatts
or more pursuant to subsection (g) of this Section and has
obtained a sale price or consideration that exceeds 200% of
the book value of such plants, the electric utility must
provide to the Governor, the President of the Illinois
Senate, the Minority Leader of the Illinois Senate, the
Speaker of the Illinois House of Representatives, and the
Minority Leader of the Illinois House of Representatives no
later than 15 days after filing its notice under subsection
(g) of this Section or 5 days after the date on which this
subsection (k) becomes law, whichever is later, a written
commitment in which such electric utility agrees to expend $2
billion outside the corporate limits of any municipality with
1,000,000 or more inhabitants within such electric utility's
service area, over a 6-year period beginning with the
calendar year in which the notice is filed, on projects,
programs, and improvements within its service area relating
to transmission and distribution including, without
limitation, infrastructure expansion, repair and replacement,
capital investments, operations and maintenance, and
vegetation management.
(Source: P.A. 90-561, eff. 12-16-97; 90-563, eff. 12-16-97.)
(220 ILCS 5/16-111.1 new)
Sec. 16-111.1. Illinois Clean Energy Community Trust.
(a) An electric utility which has sold or transferred
generating facilities in a transaction to which subsection
(k) of Section 16-111 applies is authorized to establish an
Illinois clean energy community trust or foundation for the
purposes of providing financial support and assistance to
entities, public or private, within the State of Illinois
including, but not limited to, units of State and local
government, educational institutions, corporations, and
charitable, educational, environmental and community
organizations, for programs and projects that benefit the
public by improving energy efficiency, developing renewable
energy resources, supporting other energy related projects
that improve the State's environmental quality, and
supporting projects and programs intended to preserve or
enhance the natural habitats and wildlife areas of the State.
Provided, however, that the trust or foundation funds shall
not be used for the remediation of environmentally impaired
property. The trust or foundation may also assist in
identifying other energy and environmental grant
opportunities.
(b) Such trust or foundation shall be governed by a
declaration of trust or articles of incorporation and bylaws
which shall, at a minimum, provide that:
(1) There shall be 6 voting trustees of the trust
or foundation, one of whom shall be appointed by the
Governor, one of whom shall be appointed by the President
of the Illinois Senate, one of whom shall be appointed by
the Minority Leader of the Illinois Senate, one of whom
shall be appointed by the Speaker of the Illinois House
of Representatives, one of whom shall be appointed by the
Minority Leader of the Illinois House of Representatives,
and one of whom shall be appointed by the electric
utility establishing the trust or foundation, provided
that the voting trustee appointed by the utility shall be
a representative of a recognized environmental action
group selected by the utility. The Governor shall select
one of the 6 voting trustees, once appointed, to be the
first chairman of the trust or foundation pending the
first election of officers. In addition, there shall be 4
non-voting trustees, one of whom shall be appointed by
the Director of the Department of Commerce and Community
Affairs, one of whom shall be appointed by the Director
of the Illinois Environmental Protection Agency, one of
whom shall be appointed by the Director of the Department
of Natural Resources, and one of whom shall be appointed
by the electric utility establishing the trust or
foundation, provided that the non-voting trustee
appointed by the utility shall bring financial expertise
to the trust or foundation and shall have appropriate
credentials therefor.
(2) All voting trustees and the non-voting trustee
with financial expertise shall be entitled to
compensation for their services as trustees, provided,
however, that no member of the General Assembly and no
employee of the electric utility establishing the trust
or foundation serving as a voting trustee shall receive
any compensation for his or her services as a trustee,
and provided further that the compensation to the
chairman of the trust shall not exceed $25,000 annually
and the compensation to any other trustee shall not
exceed $20,000 annually. All trustees shall be entitled
to reimbursement for reasonable expenses incurred on
behalf of the trust in the performance of their duties as
trustees. All such compensation and reimbursements shall
be paid out of the trust.
(3) Trustees shall be appointed within 30 days
after the creation of the trust or foundation and shall
serve for a term of 5 years commencing upon the date of
their respective appointments, until their respective
successors are appointed and qualified.
(4) A vacancy in the office of trustee shall be
filled by the person holding the office responsible for
appointing the trustee whose death or resignation creates
the vacancy, and a trustee appointed to fill a vacancy
shall serve the remainder of the term of the trustee
whose resignation or death created the vacancy.
(5) The trust or foundation shall have an
indefinite term, and shall terminate at such time as no
trust assets remain.
(6) The trust or foundation shall be funded in the
minimum amount of $250,000,000, with the allocation and
disbursement of funds for the various purposes for which
the trust or foundation is established to be determined
by the trustees in accordance with the declaration of
trust or the articles of incorporation and bylaws;
provided, however, that this amount may be reduced by up
to $25,000,000 if, at the time the trust or foundation is
funded, a corresponding amount is contributed by the
electric utility establishing the trust or foundation to
the Board of Trustees of Southern Illinois University for
the purpose of funding programs or projects related to
clean coal and provided further that $25,000,000 of the
amount contributed to the trust or foundation shall be
available to fund programs or projects related to clean
coal.
(7) The trust or foundation shall be authorized to
employ an executive director and other employees, to
enter into leases, contracts and other obligations on
behalf of the trust or foundation, and to incur expenses
that the trustees deem necessary or appropriate for the
fulfillment of the purposes for which the trust or
foundation is established, provided, however, that
salaries and administrative expenses incurred on behalf
of the trust or foundation shall not exceed $500,000 in
the first fiscal year after the trust or foundation is
established and shall not exceed $1,000,000 in each
subsequent fiscal year.
(8) The trustees may create and appoint advisory
boards or committees to assist them with the
administration of the trust or foundation, and to advise
and make recommendations to them regarding the
contribution and disbursement of the trust or foundation
funds.
(c)(1) In addition to the allocation and disbursement of
funds for the purposes set forth in subsection (a) of
this Section, the trustees of the trust or foundation
shall annually contribute funds in amounts set forth in
subparagraph (2) of this subsection to the Citizens
Utility Board created by the Citizens Utility Board Act;
provided, however, that any such funds shall be used
solely for the representation of the interests of utility
consumers before the Illinois Commerce Commission, the
Federal Energy Regulatory Commission, and the Federal
Communications Commission and for the provision of
consumer education on utility service and prices and on
benefits and methods of energy conservation. Provided,
however, that no part of such funds shall be used to
support (i) any lobbying activity, (ii) activities
related to fundraising, (iii) advertising or other
marketing efforts regarding a particular utility, or (iv)
solicitation of support for, or advocacy of, a particular
position regarding any specific utility or a utility's
docketed proceeding.
(2) In the calendar year in which the trust or
foundation is first funded, the trustees shall contribute
$1,000,000 to the Citizens Utility Board within 60 days
after such trust or foundation is established; provided,
however, that such contribution shall be made after
December 31, 1999. In each of the 6 calendar years
subsequent to the first contribution, if the trust or
foundation is in existence, the trustees shall contribute
to the Citizens Utility Board an amount equal to the
total expenditures by such organization in the prior
calendar year, as set forth in the report filed by the
Citizens Utility Board with the chairman of such trust or
foundation as required by subparagraph (3) of this
subsection. Such subsequent contributions shall be made
within 30 days of submission by the Citizens Utility
Board of such report to the Chairman of the trust or
foundation, but in no event shall any annual contribution
by the trustees to the Citizens Utility Board exceed
$1,000,000. Following such 7-year period, an Illinois
statutory consumer protection agency may petition the
trust or foundation for contributions to fund
expenditures of the type identified in paragraph (1), but
in no event shall annual contributions by the trust or
foundation for such expenditures exceed $1,000,000.
(3) The Citizens Utility Board shall file a report
with the chairman of such trust or foundation for each
year in which it expends any funds received from the
trust or foundation setting forth the amount of any
expenditures (regardless of the source of funds for such
expenditures) for: (i) the representation of the
interests of utility consumers before the Illinois
Commerce Commission, the Federal Energy Regulatory
Commission, and the Federal Communications Commission,
and (ii) the provision of consumer education on utility
service and prices and on benefits and methods of energy
conservation. Such report shall separately state the
total amount of expenditures for the purposes or
activities identified by items (i) and (ii) of this
paragraph, the name and address of the external recipient
of any such expenditure, if applicable, and the specific
purposes or activities (including internal purposes or
activities) for which each expenditure was made. Any
report required by this subsection shall be filed with
the chairman of such trust or foundation no later than
March 31 of the year immediately following the year for
which the report is required.
(220 ILCS 5/16-111.2 new)
Sec. 16-111.2. Provisions related to proposed utility
transactions.
(a) The General Assembly finds:
(1) A transaction as described in paragraph (3) of
this subsection (a) will contribute to improved
reliability of the electric supply system in Illinois
which is one of the key purposes of the Illinois Electric
Service Customer Choice and Rate Relief Law of 1997.
(2) A transaction as described in paragraph (3) of
this subsection (a) is likely to promote additional
investment in the existing generating assets and in the
development of additional generation capacity in
Illinois, and such change in ownership is in the public
interest, consistent with the intent of the Illinois
Electric Service Customer Choice and Rate Relief Law of
1997 and beneficial for the citizens of this State.
(3) As of the date on which this amendatory Act of
1999 becomes law, an electric utility providing service
to more than 1,000,000 customers in this State has
proposed to sell or transfer to a single buyer 5 or more
generating plants with a total net dependable capacity of
5000 megawatts or more pursuant to subsection (g) of
Section 16-111.
(4) Such electric utility anticipates receiving a
sale price or consideration as a result of such
transaction exceeding 200% of the book value of these
plants.
(5) Such electric utility has presented to the
Governor and the leaders of the General Assembly a
written commitment in which such electric utility agrees
to expend $2,000,000,000 outside the corporate limits of
any municipality with 1,000,000 or more inhabitants
within such electric utility's service area, over a
6-year period beginning with this calendar year on
projects, programs and improvements within its service
area relating to transmission and distribution including,
without limitation, infrastructure expansion, repair and
replacement, capital investments, operations and
maintenance, and vegetation management.
(6) Such electric utility has committed that, if
the sale or transfer contemplated by paragraph (3) of
this subsection is consummated on or before December 31,
1999, the electric utility shall make contributions
totaling $250,000,000 to entities within this State for,
among other purposes, environmental and clean coal
initiatives pursuant to Section 16-111.1, which
commitment includes a contribution of $25,000,000 to the
Board of Trustees of Southern Illinois University for the
purpose of funding programs or projects related to clean
coal.
(b) That, in light of the findings in paragraphs (1) and
(2) of subsection (a) and, in this instance, the
circumstances described in paragraphs (3) through (6) of
subsection (a) and otherwise, the General Assembly hereby
finds that allowing the generating facilities being acquired
to be eligible facilities under the provisions of the
National Energy Policy Act of 1992 that apply to exempt
wholesale generators (A) will benefit consumers; (B) is in
the public interest; and (C) does not violate the law of this
State.
(c) Nothing in this Section shall have any effect on the
authority of the Commission under subsection (g) of Section
16-111 of this Act.
(220 ILCS 5/16-114.1 new)
Sec. 16-114.1. Recovery of decommissioning costs in
connection with nuclear power plant sale agreement.
(a) An electric utility owning a single-unit nuclear
power plant located in this State which enters into an
agreement to sell the nuclear power plant and as part of such
agreement agrees: (i) to make contributions to a
tax-qualified decommissioning trust or non-tax qualified
decommissioning trust, or both, as defined in Section 8-508.1
for the nuclear power plant, in specified amounts or for a
specified period of time, after the sale is consummated, or
(ii) to purchase an insurance instrument which provides for
the payment of all or a specified amount of the
decommissioning costs of the nuclear power plant, shall be
entitled, in the case of item (i), to maintain such
decommissioning trusts for the purpose of receiving such
contributions after the consummation of the sale, to
implement revisions to its decommissioning rate in accordance
with subsection (b) of this Section, and to transfer such
decommissioning trusts, or the balance in the trusts, to the
buyer of the nuclear power plant in accordance with the
agreement of sale, and in the case of item (ii), to implement
revisions to its decommissioning rate in accordance with
subsection (c) of this Section.
(b) An electric utility entering into an agreement of
sale described in subsection (a)(i) of this Section shall be
entitled to file a petition with the Commission for entry of
an order authorizing the electric utility (i) to amortize its
liability for decommissioning costs pursuant to the agreement
of sale over the period of time in which the electric utility
is required by such agreement to make additional
contributions to the tax-qualified decommissioning trust, the
non-tax qualified decommissioning trust, or both, and (ii) to
revise its decommissioning rate to a level that will recover,
over the time period specified in the agreement of sale, an
annual amount equal to the electric utility's annual
contributions to the decommissioning trusts which are
required by the agreement of sale multiplied by the
percentage of the output of the nuclear power plant which the
agreement of sale obligates the electric utility to purchase
in each such year.
(c) An electric utility entering into an agreement of
sale described in subsection (a)(ii) shall be entitled to
file a petition with the Commission for entry of an order
authorizing the electric utility to revise its
decommissioning rate to a level that will recover, over 5
years, the electric utility's cost of purchasing the
insurance instrument multiplied by the percentage of the
output of the nuclear power plant which the agreement of sale
obligates the electric utility to purchase in each such year.
(d) An electric utility's petition pursuant to
subsection (b) or subsection (c) shall state the percentage
of the output of the nuclear power plant which the agreement
of sale obligates the electric utility to purchase from the
new owner of the nuclear power plant in each of the years for
which the electric utility is seeking to implement a revised
decommissioning rate. The electric utility's petition shall
also state that the electric utility agrees, as conditions of
the Commission's order and the implementation of the revised
decommissioning rate, (i) to file revisions, pursuant to
Section 16-111(f), to its base rate tariffs applicable to
retail customers subject to the electric utility's
decommissioning rate reducing such tariffs, and (ii) to file
revisions to its transition charge tariffs applicable to
retail customers subject to the electric utility's
decommissioning rate incorporating a credit into the
calculation of the electric utility's transition charges in
accordance with this subsection. The reduction and the
credit shall be in an amount per kilowatt-hour of electricity
sold or delivered to retail customers equal to (i) the
electric utility's decommissioning rate authorized by the
Commission's order in accordance with subsection (b)(ii) or
(c), as applicable, less (ii) the product of the electric
utility's decommissioning rate in effect immediately prior to
the agreement of sale multiplied by the percentage of the
output of the nuclear power plant which the agreement of sale
obligates the electric utility to purchase from the new owner
of the nuclear power plant. The Commission shall issue an
order granting the petition within 30 days after the petition
is filed. The Commission's order shall state the aggregate
total amount which the order is authorizing the electric
utility to collect through its decommissioning rate. The
Commission's order shall state that the effectiveness of the
revisions to the electric utility's decommissioning rate
shall be conditioned on the filing by the electric utility of
the revisions reducing its base rate tariffs and providing
for credits to its transition charge tariffs as specified in
this subsection. Upon completion of the collection of the
total amount which the Commission's order authorizes the
electric utility to collect through its decommissioning rate,
the electric utility shall not be entitled to collect any
further amounts of decommissioning costs for its nuclear
power plant through a decommissioning rate. Nothing in this
Section shall be construed to permit an increase in the
overall tariffed rates and charges paid by the electric
utility's customers.
(e) In addition to the uses of the proceeds of the sale
and issuance of transitional funding instruments authorized
by Section 18-103(d)(1), an electric utility which has
entered into an agreement to sell a nuclear power plant may
use the proceeds from the sale and issuance of transitional
funding instruments to make contributions, or to reimburse
itself for contributions which the electric utility has made,
to decommissioning trusts in accordance with the agreement of
sale, in an amount not to exceed 20% of the aggregate
principal amount of transitional funding instruments which
the electric utility was authorized to cause to have issued
pursuant to Section 18-103(d)(6), including for purposes of
this calculation the amount of any transitional funding
instruments which the electric utility caused to be issued
prior to the date of this amendatory Act of 1999. The use of
proceeds authorized by this subsection shall not be subject
to Section 18-103(d)(1)(B) and shall not be considered in
determining if the percentage limitations on the use of
proceeds set forth in the proviso following Section
18-103(d)(1)(E) have been complied with.
(f) None of the authorizations permitted by this Section
may be exercised if the sale of the nuclear power plant is
disapproved by the Commission.
(220 ILCS 5/16-115)
Sec. 16-115. Certification of alternative retail electric
suppliers.
(a) Any alternative retail electric supplier must obtain
a certificate of service authority from the Commission in
accordance with this Section before serving any retail
customer or other user located in this State. An alternative
retail electric supplier may request, and the Commission may
grant, a certificate of service authority for the entire
State or for a specified geographic area of the State.
(b) An alternative retail electric supplier seeking a
certificate of service authority shall file with the
Commission a verified application containing information
showing that the applicant meets the requirements of this
Section. The alternative retail electric supplier shall
publish notice of its application in the official State
newspaper within 10 days following the date of its filing.
No later than 45 days after the application is properly filed
with the Commission, and such notice is published, the
Commission shall issue its order granting or denying the
application.
(c) An application for a certificate of service
authority shall identify the area or areas in which the
applicant intends to offer service and the types of services
it intends to offer. Applicants that seek to serve
residential or small commercial retail customers within a
geographic area that is smaller than an electric utility's
service area shall submit evidence demonstrating that the
designation of this smaller area does not violate Section
16-115A. An applicant that seeks to serve residential or
small commercial retail customers may state in its
application for certification any limitations that will be
imposed on the number of customers or maximum load to be
served.
(d) The Commission shall grant the application for a
certificate of service authority if it makes the findings set
forth in this subsection based on the verified application
and such other information as the applicant may submit:
(1) That the applicant possesses sufficient
technical, financial and managerial resources and
abilities to provide the service for which it seeks a
certificate of service authority. In determining the
level of technical, financial and managerial resources
and abilities which the applicant must demonstrate, the
Commission shall consider (i) the characteristics,
including the size and financial sophistication, of the
customers that the applicant seeks to serve, and (ii)
whether the applicant seeks to provide electric power and
energy using property, plant and equipment which it owns,
controls or operates;
(2) That the applicant will comply with all
applicable federal, State, regional and industry rules,
policies, practices and procedures for the use,
operation, and maintenance of the safety, integrity and
reliability, of the interconnected electric transmission
system;
(3) That the applicant will only provide service to
retail customers in an electric utility's service area
that are eligible to take delivery services under this
Act;
(4) That the applicant will comply with such
informational or reporting requirements as the Commission
may by rule establish and provide the information
required by Section 16-112. Any data related to
contracts for the purchase and sale of electric power and
energy shall be made available for review by the Staff of
the Commission on a confidential and proprietary basis
and only to the extent and for the purposes which the
Commission determines are reasonably necessary in order
to carry out the purposes of this Act;
(5) That if the applicant, its corporate affiliates
or the applicant's principal source of electricity (to
the extent such source is known at the time of the
application) owns or controls facilities, for public use,
for the transmission or distribution of electricity to
end-users within a defined geographic area to which
electric power and energy can be physically and
economically delivered by the electric utility or
utilities in whose service area or areas the proposed
service will be offered, the applicant, its corporate
affiliates or principal source of electricity, as the
case may be, provides delivery services to the electric
utility or utilities in whose service area or areas the
proposed service will be offered that are reasonably
comparable to those offered by the electric utility, and
provided further, that the applicant agrees to certify
annually to the Commission that it is continuing to
provide such delivery services and that it has not
knowingly assisted any person or entity to avoid the
requirements of this Section. For purposes of this
subparagraph, "principal source of electricity" shall
mean a single source that supplies at least 65% of the
applicant's electric power and energy, and the purchase
of transmission and distribution services pursuant to a
filed tariff under the jurisdiction of the Federal Energy
Regulatory Commission or a state public utility
commission shall not constitute control of access to the
provider's transmission and distribution facilities;
(6) With respect to an applicant that seeks to
serve residential or small commercial retail customers,
that the area to be served by the applicant and any
limitations it proposes on the number of customers or
maximum amount of load to be served meet the provisions
of Section 16-115A, provided, that the Commission can
extend the time for considering such a certificate
request by up to 90 days, and can schedule hearings on
such a request;
(7) That the applicant meets the requirements of
subsection (a) of Section 16-128; and
(8) That the applicant will comply with all other
applicable laws and regulations.
(e) A retail customer that owns a cogeneration or
self-generation facility and that seeks certification only to
provide electric power and energy from such facility to
retail customers at separate locations which customers are
both (i) owned by, or a subsidiary or other corporate
affiliate of, such applicant and (ii) eligible for delivery
services, shall be granted a certificate of service authority
upon filing an application and notifying the Commission that
it has entered into an agreement with the relevant electric
utilities pursuant to Section 16-118. Provided, however, that
if the retail customer owning such cogeneration or
self-generation facility would not be charged a transition
charge due to the exemption provided under subsection (f) of
Section 16-108 prior to the certification, and the retail
customers at separate locations are taking delivery services
in conjunction with purchasing power and energy from the
facility, the retail customer on whose premises the facility
is located shall not thereafter be required to pay transition
charges on the power and energy that such retail customer
takes from the facility.
(f) The Commission shall have the authority to
promulgate rules and regulations to carry out the provisions
of this Section. On or before May 1, 1999, the Commission
shall adopt a rule or rules applicable to the certification
of those alternative retail electric suppliers that seek to
serve only nonresidential retail customers with maximum
electrical demands of one megawatt or more which shall
provide for (i) expedited and streamlined procedures for
certification of such alternative retail electric suppliers
and (ii) specific criteria which, if met by any such
alternative retail electric supplier, shall constitute the
demonstration of technical, financial and managerial
resources and abilities to provide service required by
subsection (d) (1) of this Section, such as a requirement to
post a bond or letter of credit, from a responsible surety or
financial institution, of sufficient size for the nature and
scope of the services to be provided; demonstration of
adequate insurance for the scope and nature of the services
to be provided; and experience in providing similar services
in other jurisdictions.
(Source: P.A. 90-561, eff. 12-16-97.)
(220 ILCS 5/16-130)
Sec. 16-130. Annual Reports. The General Assembly finds
that it is necessary to have reliable and accurate
information regarding the transition to a competitive
electric industry. In addition to the annual report
requirements pursuant to Section 5-109 of this Act, each
electric utility shall file with the Commission a report on
the following topics in accordance with the schedule set
forth in subsection (b) of this Section:
(1) Data on each customer class of the electric
utility in which delivery services have been elected
including:
(A) number of retail customers in each class
that have elected delivery service;
(B) kilowatt hours consumed by the customers
described in subparagraph (A);
(C) revenue loss experienced by the utility as
a result of customers electing delivery services or
market-based prices as compared to continued service
under otherwise applicable tariffed rates;
(D) total amount of funds collected from each
customer class pursuant to the transition charges
authorized in Section 16-108;
(E) Such other information as the Commission
may by rule require.
(2) A description of any steps taken by the
electric utility to mitigate and reduce its costs,
including both a detailed description of steps taken
during the preceding calendar year and a summary of steps
taken since the effective date of this amendatory Act of
1997, and including, to the extent practicable,
quantification of the costs mitigated or reduced by
specific actions taken by the electric utility.
(3) A description of actions taken under Sections
5-104, 7-204, 9-220, and 16-111 of this Act. This
information shall include but not be limited to:
(A) a description of the actions taken;
(B) the effective date of the action;
(C) the annual savings or additional charges
realized by customers from actions taken, by
customer class and total for each year;
(D) the accumulated impact on customers by
customer class and total; and
(E) a summary of the method used to quantify
the impact on customers.
(4) A summary of the electric utility's use of
transitional funding instruments, including a description
of the electric utility's use of the proceeds of any
transitional funding instruments it has issued in
accordance with Article XVIII of this Act.
(5) Kilowatt-hours consumed in the twelve months
ending December 31, 1996 (which kilowatt-hours are hereby
referred to as "base year sales") by customer class
multiplied by the revenue per kilowatt hour, adjusted to
remove charges added to customers' bills pursuant to
Sections 9-221 and 9-222 of this Act, during the twelve
months ending December 31, 1996, adjusted for the
reductions required by subsection (b) of Section 16-111
and the mitigation factors contained in Section 16-102.
This amount shall be stated for: (i) each calendar year
preceding the year in which a report is required to be
submitted pursuant to subsection (b); and (ii) as a
cumulative total of all calendar years beginning with
1998 and ending with the calendar year preceding the year
in which a report is required to be submitted pursuant to
subsection (b).
(6) Calculations identical to those required by
subparagraph (5) except that base year sales shall be
adjusted for growth in the electric utility's service
territory, in addition to the other adjustments specified
by the first sentence of subparagraph (5).
(7) The electric utility's total revenue and net
income for each calendar year beginning with 1997 through
the calendar year preceding the year in which a report is
required to be submitted pursuant to subsection (b) as
reported in the electric utility's Form 1 report to the
Federal Energy Regulatory Commission.
(8) Any consideration in excess of the net book
cost as of the effective date of this amendatory Act of
1997 received by the electric utility during the year
from a sale made subsequent to the effective date of this
amendatory Act of 1997 to a non-affiliated third party of
any generating plant that was owned by the electric
utility on the effective date of this amendatory Act of
1997.
(9) Any consideration received by the electric
utility from sales or transfers during the year to an
affiliated interest of generating plant, or other plant
that represents an investment of $25,000,000 or more in
terms of total depreciated original cost, which
generating or other plant were owned by the electric
utility prior to the effective date of this amendatory
Act of 1997.
(10) Any consideration received by an affiliated
interest of an electric utility from sales or transfers
during the year to a non-affiliated third party of
generating plant, but only if: (i) the electric utility
had previously sold or transferred such plant to the
affiliated interest subsequent to the effective date of
this amendatory Act of 1997; (ii) the affiliated interest
sells or transfers such plant to a non-affiliated third
party prior to December 31, 2006; and (iii) the
affiliated interest receives consideration for the sale
or transfer of such plant to the non-affiliated third
party in an amount greater than the cost or price at
which such plant was sold or transferred to the
affiliated interest by the electric utility.
(11) A summary account of those expenditures made
for projects, programs, and improvements relating to
transmission and distribution including, without
limitation, infrastructure expansion, repair and
replacement, capital investments, operations and
maintenance, and vegetation management, pursuant to a
written commitment made under subsection (k) of Section
16-111.
(b) The information required by subsection (a) shall be
filed by each electric utility on or before March 1 of each
year 1999 through 2007 or through such additional years as
the electric utility is collecting transition charges
pursuant to subsection (f) of Section 16-108, for the
previous calendar year. The information required by
subparagraph (6) of subsection (a) for calendar year 1997
shall be submitted by the electric utility on or before March
1, 1999.
(c) On or before May 15 of each year 1999 through 2006
or through such additional years as the electric utility is
collecting transition charges pursuant to subsection (f) of
Section 16-108, the Commission shall submit a report to the
General Assembly which summarizes the information provided by
each electric utility under this Section; provided, however,
that proprietary or confidential information shall not be
publicly disclosed.
(Source: P.A. 90-561, eff. 12-16-97.)
Section 10. The Citizens Utility Board Act is amended by
changing Section 5 and adding Section 5.1 as follows:
(220 ILCS 10/5) (from Ch. 111 2/3, par. 905)
Sec. 5. Powers and duties. (1) The corporation shall:
(a) Represent and protect the interests of the
residential utility consumers of this State. All actions by
the corporation under this Act shall be directed toward such
duty; provided that the corporation may also give due
consideration to the interests of business in the State.
(b) Inform, in so far as possible, all utility consumers
about the corporation, including the procedure for obtaining
membership in the corporation.
(2) The corporation shall have all the powers necessary
or convenient for the effective representation and protection
of the interest of utility consumers and to implement this
Act, including the following powers in addition to all other
powers granted by this Act.
(a) To make, amend and repeal bylaws and rules for the
regulation of its affairs and the conduct of its business; to
adopt an official seal and alter it at pleasure; to maintain
an office; to sue and be sued in its own name, plead and be
impleaded; and to make and execute contracts and other
instruments necessary or convenient to the exercise of the
powers of the corporation.
(b) To employ such agents, employees and special
advisors as it finds necessary and to fix their compensation.
(c) To solicit and accept gifts, loans, including loans
made by the Illinois Commerce Commission from funds
appropriated for that purpose by law, or other aid in order
to support activities concerning the interests of utility
consumers., Except as provided in Section 5.1, that the
corporation may not accept gifts, loans or other aid from any
public utility or from any director, employee or agent or
member of the immediate family of a director, employee or
agent of any public utility and, except that after the first
election the corporation, may not accept from any individual,
private corporation, association or partnership in any single
year a total of more than $1,000 in gifts. Under this
paragraph, "aid" does not mean payment of membership dues.
(d) To intervene as a party or otherwise participate on
behalf of utility consumers in any proceeding which affects
the interest of utility consumers.
(e) To represent the interests of utility consumers
before the Illinois Commerce Commission, the Federal Energy
Regulatory Commission, the Federal Communications Commission,
the courts, and other public bodies, except that no director,
employee or agent of the corporation may engage in lobbying
without first complying with any applicable statute,
administrative rule or other regulation relating to lobbying.
(f) To establish annual dues which shall be set at a
level that provides sufficient funding for the corporation to
effectively perform its powers and duties, and is affordable
for as many utility consumers as is possible.
(g) To implement solicitation for corporation funding
and membership.
(h) To seek tax exempt status under State and federal
law, including 501(c)(3) status under the United States
Internal Revenue Code.
(i) To provide information and advice to utility
consumers on any matter with respect to utility service,
including but not limited to information and advice on
benefits and methods of energy conservation.
(3) The powers, duties, rights and privileges conferred
or imposed upon the corporation by this Act may not be
transferred.
(4) The corporation shall refrain from interfering with
collective bargaining rights of any employees of a public
utility.
(Source: P.A. 83-945.)
(220 ILCS 10/5.1 new)
Sec. 5.1. Contributions. Notwithstanding anything to
the contrary in Section 5 of this Act, the corporation shall
have the authority to solicit and accept contributions made
pursuant to Section 16-111.1 of the Public Utilities Act.
Section 99. Effective date. This Act takes effect upon
becoming law.
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