There Is a Newer Version of the Illinois Compiled Statutes
2005 Illinois Code - 220 ILCS 5/ Public Utilities Act. Article XVI - Electric Service Customer Choice And Rate Relief Law Of 1997
(220 ILCS 5/16‑101)
Sec. 16‑101.
Short title and applicability.
(a) This Article may
be cited as the Electric Service Customer Choice and Rate
Relief Law of 1997 and shall apply to electric utilities and
alternative retail electric suppliers as defined in this
Article. Except to the extent modified or supplemented by the
provisions of this Article, or where the context clearly
renders such provisions inapplicable, the other Articles of
the Public Utilities Act pertaining to public utilities, public utility rates
and services and the regulation thereof, are fully and equally
applicable to the tariffed services electric utilities
provide.
(b) The provisions of subsections (a) through (h) of Section 16‑111 of this
Act shall not be applicable to any electric utility which elects to file
biennial rate proceedings before the Commission in the years 1998, 2000 and
2002. An electric utility electing this option shall do so by filing a notice
of such election with the Commission within 60 days after the effective date of
this amendatory Act of 1997, or its right to make such election shall be
irrevocably waived. An electric utility electing the option specified in this
paragraph shall file its rate proceeding with the Commission no later than
August 1 of the years 1998, 2000, and 2002. The electric utility's filing
shall comply with all requirements of 83 Illinois Administrative Code Parts 255
and 285 as though the electric utility were filing for an increase in its
rates, without regard to whether such filing would produce an increase, a
decrease or no change in the electric utility's rates and the Commission shall
review the electric utility's filing and shall issue its
order in accordance with the provisions of Section 9‑201 of this Act.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑101A)
Sec. 16‑101A.
Legislative findings.
(a) The citizens and businesses of the State of Illinois
have been well‑served by a comprehensive electrical utility
system which has provided safe, reliable, and affordable
service. The electrical utility system in the State of
Illinois has historically been subject to State and federal
regulation, aimed at assuring the citizens and businesses of
the State of safe, reliable, and affordable service, while at
the same time assuring the utility system of a return on its
investment.
(b) Competitive forces are affecting the market for
electricity as a result of recent federal regulatory and
statutory changes and the activities of other states.
Competition in the electric services market may create
opportunities for new products and services for customers and
lower costs for users of electricity. Long‑standing regulatory
relationships need to be altered to accommodate the
competition that could fundamentally alter the structure of
the electric services market.
(c) With the advent of increasing competition in this
industry, the State has a continued interest in assuring that
the safety, reliability, and affordability of electrical power
is not sacrificed to competitive pressures, and to that end,
intends to implement safeguards to assure that the industry
continues to operate the electrical system in a manner that
will serve the public's interest. Under the existing
regulatory framework, the industry has been encouraged to
undertake certain investments in its physical plant and
personnel to enhance its efficient operation, the cost of
which it has been permitted to pass on to consumers. The
State has an interest in providing the existing utilities a
reasonable opportunity to obtain a return on certain
investments on which they depended in undertaking those
commitments in the first instance while, at the same time, not
permitting new entrants into the industry to take unreasonable
advantage of the investments made by the formerly regulated
industry.
(d) A competitive wholesale and retail market must
benefit all Illinois citizens. The Illinois Commerce
Commission should act to promote the development of an
effectively competitive electricity market that operates
efficiently and is equitable to all consumers. Consumer
protections must be in place to ensure that all customers
continue to receive safe, reliable, affordable, and
environmentally safe electric service.
(e) All consumers must benefit in an equitable and timely
fashion from the lower costs for electricity that result from
retail and wholesale competition and receive sufficient
information to make informed choices among suppliers and
services. The use of renewable resources and energy efficiency
resources should be encouraged in competitive markets.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(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 retail customer to the extent
that customer obtains its electric power and energy from that customer's
own cogeneration or self‑generation facilities, (v) an
entity that owns, operates, sells, or arranges for the installation of
a customer's own cogeneration or self‑generation facilities, but only to
the extent the entity is engaged in
owning,
selling or arranging for the 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, 2007.
"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 | ||
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(2) less the amount of revenue, other than revenue | ||
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(3) less the market value for the electric power and | ||
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(4) less the following amount which represents the | ||
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(A) for nonresidential retail customers, an | ||
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(B) for residential retail customers, an amount | ||
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(5) divided by the usage of such customers | ||
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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. 91‑50, eff. 6‑30‑99; 92‑537, eff. 6‑6‑02.)
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(220 ILCS 5/16‑103)
Sec. 16‑103.
Service obligations of electric utilities.
(a) An electric utility shall continue offering to
retail customers each tariffed service that it offered as a
distinct and identifiable service on the effective date of
this amendatory Act of 1997 until the service is (i) declared
competitive pursuant to Section 16‑113, or (ii) abandoned
pursuant to Section 8‑508. Nothing in this subsection shall be
construed as limiting an electric utility's right to propose,
or the Commission's power to approve, allow or order
modifications in the rates, terms and conditions for such
services pursuant to Article IX or Section 16‑111 of this Act.
(b) An electric utility shall also offer, as tariffed
services, delivery services in accordance with this Article,
the power purchase options described in Section 16‑110 and
real‑time pricing as provided in Section 16‑107.
(c) Notwithstanding any other provision of this Article,
each electric utility shall continue offering to all
residential customers and to all small commercial retail
customers in its service area, as a tariffed service, bundled electric power
and
energy delivered to the customer's premises consistent with
the bundled utility service provided by the electric utility
on the effective date of this amendatory Act of 1997. Upon
declaration of the provision of electric power and energy as
competitive, the electric utility shall continue to offer to
such customers, as a tariffed service, bundled service options
at rates which reflect recovery of all cost components for
providing the service. For those components of the service
which have been declared competitive, cost shall be the market
based prices. Market based prices as referred to herein shall
mean, for electric power and energy, either (i) those prices
for electric power and energy determined as provided in
Section 16‑112, or (ii) the electric utility's cost of
obtaining the electric power and energy at wholesale through a
competitive bidding or other arms‑length acquisition process.
(d) Any residential or small commercial retail customer
which elects delivery services is entitled to return to the
electric utility's bundled utility tariffed service offering
provided in accordance with subsection (c) of this Section
upon payment of a reasonable administrative fee which shall be
set forth in the tariff, provided, however, that the electric
utility shall be entitled to impose the condition that such
customer may not elect delivery services for up to 24 months
thereafter.
(e) The Commission shall not require an electric utility
to offer any tariffed service other than the services required
by this Section, and shall not require an electric utility to
offer any competitive service.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(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 | ||
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(2) On or before October 1, 2000, the electric | ||
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(2.5) On or before June 1, 2000, an electric utility | ||
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(3) On or before December 31, 2000, the electric | ||
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(4) On or before May 1, 2002, the electric utility | ||
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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; 91‑50, eff. 6‑30‑99.)
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(220 ILCS 5/16‑105)
Sec. 16‑105.
Delivery services implementation plan.
To ensure the safe and orderly implementation of delivery
services, each electric utility shall submit to the Commission
no later than March 1, 1999, a delivery services
implementation plan for non‑residential customers and no later than August 1,
2001, a delivery services implementation plan for residential customers. The
delivery services implementation plan
shall detail the process and procedures by which each electric
utility will offer delivery services to each customer class
and shall be designed to insure an orderly transition and the
maintenance of reliable service. The Commission shall enter an
order approving, or approving as modified, the delivery
services implementation plan of each electric utility no later
than 60 days prior to the date on which the electric utility
must commence offering such services.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑106)
Sec. 16‑106.
Billing experiments.
During the mandatory
transition period, an electric utility may at its discretion
conduct one or more experiments for the provision or billing
of services on a consolidated or aggregated basis, for the
provision of real‑time pricing, or other billing or pricing
experiments, and may include experimental programs offered to
groups of retail customers possessing common attributes as
defined by the electric utility, such as the members of an
organization that was established to serve a well‑defined
industry group, companies having multiple sites, or closely located or
affiliated buildings, provided that such groups
exist for a purpose other than obtaining energy services and
have been in existence for at least 10 years. The offering of
such a program by an electric utility to retail customers
participating in the program, and the participation by those
customers in the program, shall not create any right in any
other retail customer or group of customers to participate in
the same or a similar program. The Commission shall allow
such experiments to go into effect upon the filing by the
electric utility of a statement describing the program.
Nothing contained in this Section shall be deemed to prohibit
the electric utility from offering, or the Commission from
approving, experimental rates, tariffs and services in
addition to those allowed under this Section. The Commission shall review and
report annually the progress, participation and effects of such experiments to
the General Assembly. Based upon its review, recommendations for modification
of such experiments may be made by the Commission to the Illinois General
Assembly.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑107)
Sec. 16‑107.
Real‑time pricing.
(a) Each electric utility shall file, on or before May 1,
1998, a tariff or tariffs which allow nonresidential retail
customers in the electric utility's service area to elect
real‑time pricing beginning October 1, 1998.
(b) Each electric utility shall file, on or before May 1,
2000, a tariff or tariffs which allow residential retail
customers in the electric utility's service area to elect
real‑time pricing beginning October 1, 2000.
(c) The electric utility's tariff or tariffs filed
pursuant to this Section shall be subject to Article IX.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(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 | ||
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(ii) the cogeneration or self‑generation facilities | ||
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(iii) the retail customer on whose premises the | ||
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(iv) if the cogeneration facility is sized for the | ||
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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.
(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. 91‑50, eff. 6‑30‑99; 92‑690, eff. 7‑18‑02.)
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(220 ILCS 5/16‑109)
Sec. 16‑109.
Unbundling of delivery services; Commission
review.
The General Assembly finds that the offering of delivery
services will, and is intended to, facilitate the development
of competition for generation services, and that competition
may develop for other services currently offered on a tariffed
basis by the electric utility. The Commission shall open a
proceeding to investigate the need for and desirability of
different or additional unbundling of delivery services for
some or all electric utilities 3 years from the date that
a tariff for delivery services is first approved or allowed
into effect pursuant to this Section. The Commission shall
open an additional proceeding to again investigate the need
for and desirability of different or additional unbundling of
delivery services for some or all electric utilities, 3
years after the entry of its final order in the first
investigation proceeding. The Commission shall issue its
final order in each investigation proceeding no later than 6
months after the proceeding is initiated. In each such
proceeding 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. Specific changes to the delivery
services tariffs of individual electric utilities to implement
findings and directives stated in an order in an investigation
proceeding initiated under this Section shall be addressed
through individual electric utility tariff filings.
The Commission may also, in accordance with Section 16‑108, upon complaint or
upon its own initiative without complaint, upon reasonable notice, enter upon a
hearing concerning the need and desirability of requiring additional or other
unbundling of delivery services offered by electric utilities.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑109A)
Sec. 16‑109A.
Unbundling of prices for tariffed services; Commission
investigation. In addition to the unbundling authorized under Sections 16‑108
and 16‑109, the Commission shall have the authority to investigate the need
for, and to require, the restructuring or unbundling of prices for tariffed
services, other than delivery services, offered by an electric utility;
provided, however, that the Commission shall not enter an order requiring the
restructuring or unbundling of prices for any such tariffed services for a
customer class of an electric utility prior to the date that the class first
becomes eligible for delivery services pursuant to Section 16‑104.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(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; 91‑50, eff. 6‑30‑99.)
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(220 ILCS 5/16‑111)
(Text of Section from P.A. 92‑537)
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 | ||
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(2) authorizing an electric utility to eliminate its | ||
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(3) ordering into effect tariffs for delivery | ||
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(4) ordering or allowing into effect any tariff to | ||
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After December 31, 2004, the provisions of this subsection (a) shall not
apply to an electric utility whose average residential retail rate was 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 which served between 150,000 and 250,000 retail
customers in this State on January 1, 1995
unless the electric utility or its holding company has been acquired by or
merged with an affiliate of another electric utility subsequent to January 1,
2002. This exemption shall be limited to
this subsection (a) and shall not extend to any other provisions of this Act.
(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,
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 2006, 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,
(ii) 7.00
percentage points for each of the 12‑month periods ending September 30, 2000
through September 30, 2006 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, 2006, 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, 2006 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,
2006 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 or 11.00 percentage points for each of the
12‑month periods ending September 30, 2005 and September 30, 2006 for each
electric utility providing service to fewer than 6,500, or between 75,000 and
150,000, electric
retail customers in this State
on January 1, 1995 if such 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.
(1) For purposes of this subsection (e), "excess | ||
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(2) On or before March 31 of each year 2000 through | ||
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(3) If an electric utility has excess earnings, | ||
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(i) The electric utility's excess earnings shall | ||
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(ii) The result of the calculation in (i) shall | ||
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(iii) The result of the calculation in (ii) | ||
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(iv) The cents per kilowatt‑hour refund factor | ||
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(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 | ||
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(2) retire generating plants from service;
(3) sell, assign, lease or otherwise transfer assets | ||
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(4) use any accelerated cost recovery method | ||
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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 | ||
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(ii) a description of how the electric utility | ||
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(iii) a list of all federal approvals or | ||
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(iv) an irrevocable commitment by the electric | ||
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(v) if the electric utility proposes to sell, | ||
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(vi) In addition, if the electric utility | ||
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In any proceeding conducted by the Commission | ||
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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. 91‑50, eff. 6‑30‑99; 92‑537, eff. 6‑6‑02.)
(Text of Section from P.A. 92‑690)
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 | ||
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(2) authorizing an electric utility to eliminate its | ||
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(3) ordering into effect tariffs for delivery | ||
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(4) ordering or allowing into effect any tariff to | ||
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(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,
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,
(ii) 7.00
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 | ||
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(2) On or before March 31 of each year 2000 through | ||
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(3) If an electric utility has excess earnings, | ||
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(i) The electric utility's excess earnings shall | ||
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(ii) The result of the calculation in (i) shall | ||
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(iii) The result of the calculation in (ii) | ||
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(iv) The cents per kilowatt‑hour refund factor | ||
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(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 | ||
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(2) retire generating plants from service;
(3) sell, assign, lease or otherwise transfer assets | ||
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(4) use any accelerated cost recovery method | ||
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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 | ||
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(ii) a description of how the electric utility | ||
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(iii) a list of all federal approvals or | ||
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(iv) an irrevocable commitment by the electric | ||
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(v) if the electric utility proposes to sell, | ||
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(vi) In addition, if the electric utility | ||
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In any proceeding conducted by the Commission | ||
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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. 91‑50, eff. 6‑30‑99; 92‑690, eff. 7‑18‑02.)
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(2) All voting trustees and the non‑voting trustee | ||
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(3) Trustees shall be appointed within 30 days after | ||
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(4) A vacancy in the office of trustee shall be | ||
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(5) The trust or foundation shall have an indefinite | ||
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(6) The trust or foundation shall be funded in the | ||
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(7) The trust or foundation shall be authorized to | ||
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(8) The trustees may create and appoint advisory | ||
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(c)(1) In addition to the allocation and disbursement of | ||
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(2) In the calendar year in which the trust or | ||
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(3) The Citizens Utility Board shall file a report | ||
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(d) In addition to any other allocation and disbursement of funds in this
Section, the
trustees of the trust or foundation shall contribute an amount up to
$125,000,000 (1) for deposit
into the General
Obligation Bond Retirement and Interest Fund held in the State treasury to
assist in the
repayment on general obligation bonds issued under subsection (d) of Section 7
of the General
Obligation Bond Act, and (2) for deposit into funds administered by agencies
with
responsibility for environmental activities to assist in payment for
environmental
programs. The amount required to be contributed shall be
provided to the
trustees in a certification letter from the Director of the Bureau of the
Budget that shall be
provided no later than August 1, 2003.
The
payment from the
trustees shall be paid to the State no later than December 31st following the
receipt of the letter.
(Source: P.A. 93‑32, eff. 6‑20‑03; 94‑793, eff. 5‑19‑06.)
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(220 ILCS 5/16‑111.2)
Sec. 16‑111.2.
Provisions related to proposed
utility transactions.
(a) The General Assembly finds:
(1) A transaction as described in paragraph (3) of | ||
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(2) A transaction as described in paragraph (3) of | ||
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(3) As of the date on which this amendatory Act of | ||
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(4) Such electric utility anticipates receiving a | ||
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(5) Such electric utility has presented to the | ||
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(6) Such electric utility has committed that, if the | ||
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(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.
(Source: P.A. 91‑50, eff. 6‑30‑99.)
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(220 ILCS 5/16‑111.3)
Sec. 16‑111.3.
Transition period earnings calculations.
At such time as
the Board of Governors of the Federal Reserve System ceases to include the
monthly average yields of 30‑year U.S. Treasury bonds in its weekly H.15
Statistical Release or successor publication, the Monthly Treasury Long‑Term
Average Rates (25 years and above) published by the Board of Governors of the
Federal Reserve System in its weekly H.15 Statistical Release or successor
publication shall instead be used to establish a rate for the purpose of
calculating the Index defined in subsection (e) of Section 16‑111 of this Act,
and at such time, such Monthly Treasury Long‑Term Average Rates (25 years and
above) shall also be used in place of the monthly average yields of 30‑year
U.S. Treasury bonds in the rate of return calculation required by subsection
(d) of Section 16‑111. An electric utility shall also remove the effects, if
any, of any impairment due to the application of Statement of Financial
Accounting Standards No. 142,
which was issued in June 2001, when making the calculations required by this
Section or by subsections (d) and (e) of Section 16‑111.
(Source: P.A. 92‑537, eff. 6‑6‑02.)
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(220 ILCS 5/16‑112)
Sec. 16‑112.
Determination of market value.
(a) The market value to be used in the calculation of
transition charges as defined in Section 16‑102 shall be
determined in accordance with either (i) a tariff that has
been filed by the electric utility with the Commission
pursuant to Article IX of this Act and that provides for a
determination of the market value for electric power and
energy as a function of an exchange traded or other market
traded index, options or futures contract or contracts
applicable to the market in which the utility sells, and the
customers in its service area buy, electric power and energy,
or (ii) in the event no such tariff has been placed into
effect for the electric utility, or in the event such tariff
does not establish market values for each of the years
specified in the neutral fact‑finder process described in
subsections (b) through (h) of this Section, a tariff
incorporating the market values resulting from the neutral
fact‑finder process set forth in subsections (b) through (h)
of this Section.
(b) Except as provided in subsection (m) of this
Section, on or before April 30, 1998, on or before February 28, 1999, and on or
before each April 30
from 2000 until 2007, the Commission shall appoint a neutral
fact‑finder to make the calculations described in subsection
(c) of this Section. The neutral fact‑finder shall be a
member of a national public accounting firm, shall not have
served as the neutral fact‑finder in the previous year, and
shall be selected from a list of candidates provided by
a nationally
recognized provider of neutral fact‑finders that has
established rules for maintaining confidentiality. An amount
sufficient to pay the fees of the neutral fact‑finder shall be
appropriated annually from the Public Utility Fund in the
State treasury.
(c) On or before June 1, 1998, on or before April 1, 1999, and on or before
each June 1
from 2000 until 2007, or until discontinued in accordance with
subsection (m) of this Section, each electric utility and each
alternative retail electric supplier shall submit to the neutral
fact‑finder a summary of (A) all contracts entered into after
June 1, 1997 that are for the sale of electric power and
energy from a generating facility or facilities located in
this State or located in a contiguous State and owned by an
electric utility as part of its interconnected operating
system and delivery during one or more of the 5 years
succeeding the date of submission, and (B) all contracts
entered into after June 1, 1997 for purchase and delivery of
electric power and energy in or into this State during one or
more of the 5 years succeeding the date of submission;
provided, however, that such contracts shall not include (i)
contracts between the electric utility and an affiliate; (ii)
sales, purchases, or deliveries made under rates and tariffs
filed with the Commission, except for tariffs filed pursuant
to subsection (d) of Section 16‑110 and except for special or
negotiated rate contracts between an electric utility and a
retail customer to the extent that such contracts are for the
provision of electric power and energy after the date that
the customer becomes eligible for delivery services; and (iii)
extensions or amendments to full requirements wholesale
contracts existing as of the effective date of this amendatory
Act of 1997, provided that such contracts, extensions, or
amendments are cost of service regulated by the Federal Energy
Regulatory Commission. The summaries shall, at a minimum,
identify the date of the contract; the year in which the
electric power or energy is to be sold or delivered; the point
of delivery; defining characteristics such as the
nature of the power transaction (for example, reserve
responsibility (firm, non‑firm)), length of contract and
temporal differences (for example, season, on‑peak or off‑peak); and the
applicable prices stated at the point at which
the electric power and energy leaves the electric utility's or
alternative retail electric supplier's transmission system, as the
case may be, in the case of contracts described in item (A)
and at the point at which the electric power and energy enters
the electric utility's transmission system in the case of
contracts in item (B), provided, that the applicable price
shall be stated at the point at which the electric power and
energy enters the electric utility's transmission system in
the case of electric power and energy generated for delivery
within the electric utility's service area. In reporting to
the neutral fact‑finder the price of power and energy sold
under bundled service contracts, electric utilities and alternative retail
electric
suppliers shall deduct from the contract
price the charges for delivery services, including transition
charges, applicable to delivery services customers in a
utility's service area, and charges for services, if any,
other than the provision of power and energy or delivery
services. The Commission may adopt orders setting forth
requirements governing the form and content of such summaries.
(d) The neutral fact‑finder shall calculate market
values for electric power and energy for each electric
utility, taking into account the defining characteristics set
forth in subsection (c) of this Section; provided, however,
that the neutral fact‑finder may determine that a particular
value is appropriate for more than one electric utility, or
for all electric utilities in this State. The neutral fact‑finder shall
calculate the market values for the next year
and, to the extent the summaries include a sufficient number
of actual contracts to represent a viable market for the sale
and delivery of electric power and energy in subsequent years,
for each of the 4 succeeding years.
(e) In calculating market values for electric power, the
neutral fact‑finder shall weight contract prices (including
any contract price indices) by both the amount of capacity
covered by the contract and the number of hours in which
capacity is to be provided under the contract in each period
of the year, shall take into account all of the defining
characteristics set forth in subsection (c) of this Section
and shall develop such values as required to represent the
different types of market values of electric power.
(f) The neutral fact‑finder shall base calculations of
the market values for electric energy on the energy prices
stated in the contracts, and where no explicit energy prices
or index price basis are stated, on the actual energy costs of
the supplier in the corresponding period of the preceding year
that would have been applicable to the electric energy
provided under the contract. The neutral fact‑finder shall
develop market values for electric energy and shall take into
account the defining characteristics set forth in subsection
(c) of this Section, as required to represent the market
values of such electric energy.
(g) If the contracts used by the neutral fact‑finder
base prices for future years on one or more indices, the
neutral fact‑finder shall identify such indices in his or her
final report, develop a weighting for each index, and
calculate a weighted average index. The market values shall
be calculated using the weighted average index when the actual
values of the component indices are known.
(h) The neutral fact‑finder shall publish a final report
on or before July 30 of each year, except that in 1999 the neutral fact finder
shall publish the report on or before May 30, setting forth the
calculated market values and stating the basis for such
calculations. The final report shall not, however, disclose any proprietary or
confidential data.
(i) The market values calculated by the neutral fact‑finder shall not be
admissible in any proceeding for any
purpose other than the calculation of transition charges or
calculation of the price for the power purchase options
provided pursuant to subsection (b) and (c) of Section 16‑110.
(j) The Commission shall have access to all contracts
described in subsection (c) of this Section and shall perform
such audits as it and the neutral fact‑finder deem necessary
to insure the accuracy of the summaries submitted to the
neutral fact‑finder. The summaries described in subsection
(c) of this Section and each contract shall be accorded
confidential and proprietary treatment and their review shall
be subject to the provisions of Sections 4‑404 and 5‑108 of
this Act, and the contract between the Commission and the
neutral fact‑finder shall contain provisions obligating the
neutral fact‑finder to comply with such Sections. The
summaries shall not be discoverable by any party in any
proceeding absent a compelling demonstration of need.
(k) In determining the market values to be used for the various customer
classes in
calculating transition charges as defined in Section 16‑102 or for the power
purchase options set forth in Section 16‑110,
an electric utility shall
apply the market values that are determined as set forth in
subsection (a) to the electric power and energy that would have
been used to serve the delivery services customers' electric
power and energy requirements, based on the usage specified in
Section 16‑102 and taking into account the daily, monthly,
annual and other relevant characteristics of the customers'
demands on the electric utility's system.
(l) In calculating a lump sum transition charge payment
for the purposes of subsection (h) of Section 16‑108, the
electric utility shall use the market values that were
determined as provided in its tariff, or if such market values
have not been determined for the full period of time covered
by such lump sum calculation, such other basis as is stated in
the electric utility's tariff filed pursuant to Section 16‑108.
(m) The Commission may approve or reject, or propose
modifications to, any tariff providing for the determination
of market value that has been proposed by an electric utility
pursuant to subsection (a) of this Section, but shall not have
the power to otherwise order the electric utility to implement
a modified tariff or to place into effect any tariff for the
determination of market value other than one incorporating the
neutral fact‑finder procedure set forth in this Section.
Provided, however, that if each electric utility serving at
least 300,000 customers has placed into effect a tariff that
provides for a determination of market value as a function of
an exchange traded or other market traded index, options or
futures contract or contracts, then the Commission can require
any other electric utilities to file such a tariff, and can
terminate the neutral fact‑finder procedure for the periods
covered by such tariffs.
(n) To the extent that the summaries list a sufficient
number of actual contracts to represent a viable market and
market values can be determined for more than one year, the
electric utility shall offer customers that are obligated to
pay transition charges contracts that establish for one or
more years, up to a maximum of the lesser of 5 years or the remaining number of
years until December 31, 2008, the market value or
values to be used in calculating the customer's transition
charges in such years
and for which market value
determinations have been made. The electric utility may
require any customer to give up to one year notice prior to
entering into a one or 2 year contract pursuant to this
subsection, up to 2 years notice for a 3 year contract, and up
to 3 years notice for a 4 or 5 year contract. Contracts of
one or 2 years duration shall incorporate the market values
that were determined as provided in this Section in the year
in which the notice is required to be given. Contracts of
more than 2 years duration shall incorporate the market values
that are determined in the year prior to the first year in
which the electric utility will collect transition charges
from the customer under the contract. The electric utility
shall also allow customers to select, at the time that a
customer gives its notice, an option to revoke the notice
within 30 days following the determination of the market
values that will apply under the contract requested by the
customer, and may charge customers a fee for such option that
is set forth in a tariff filed pursuant to Article IX and that
is adequate to allow the electric utility to recover its
transactional costs and compensate it based on the cost that
would be incurred to purchase an option to cover the risk
associated with the customer's option to revoke. The electric
utility shall not be required to offer customers a contract
under this paragraph for any year for which no determination
of market value has been made either by the neutral fact‑finder or pursuant to
a tariff filed by the electric utility.
(o) An electric utility shall have no obligation to
provide electric power or energy as a tariffed service for the
electric power and energy requirements placed on delivery
service by any customer that has entered into a contract
pursuant to subsection (n) of this Section and has not
purchased and exercised an option to revoke, during the term
of the contract. A customer that has purchased and exercised
an option to revoke under this subsection shall remain
eligible to receive any tariffed service for which it would
otherwise be eligible.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑113)
Sec. 16‑113.
Declaration of service as a competitive
service.
(a) An electric utility may, by petition, request the Commission to declare
a
tariffed service provided by the electric
utility to be a competitive service. The electric utility
shall give notice of its petition to the public in the same
manner that public notice is provided for proposed general
increases in rates for tariffed services, in accordance with
rules and regulations prescribed by the Commission. The
Commission shall hold a hearing on the petition if a hearing
is deemed necessary by the Commission. The Commission shall
declare the service to be a competitive service for some
identifiable customer segment or group of customers, or some
clearly defined geographical area within the electric
utility's service area, if the service or a reasonably
equivalent substitute service is reasonably available to the
customer segment or group or in the defined geographical area
at a comparable price from one or more providers other than
the electric utility or an affiliate of the electric utility,
and the electric utility has lost or there is a reasonable
likelihood that the electric utility will lose business for
the service to the other provider or providers; provided, that
the Commission may not declare the provision of electric power
and energy to be competitive pursuant to this subsection with
respect to (i) any retail customer or group of retail customers that is not
eligible pursuant to Section 16‑104 to take delivery services
provided by the electric utility and (ii) any residential and
small commercial retail customers prior to the last date on which such
customers are required to pay transition charges.
In determining whether to grant or deny a petition to declare
the provision of electric power and energy competitive, the
Commission shall consider, in applying the above criteria,
whether there is adequate transmission capacity into the
service area of the petitioning electric utility to make
electric power and energy reasonably available to the customer
segment or group or in the defined geographical area from one
or more providers other than the electric utility or an
affiliate of the electric utility, in accordance with this
subsection. The Commission shall make its determination and
issue its final order declaring or refusing to declare the
service to be a competitive service within 120 days following
the date that the petition is filed, or otherwise the petition
shall be deemed to be granted; provided, that if the petition
is deemed to be granted by operation of law, the Commission
shall not thereby be precluded from finding and ordering, in a
subsequent proceeding initiated by the Commission, and after
notice and hearing, that the service is not competitive based
on the criteria set forth in this subsection.
(b) Any customer except a customer identified in
subsection (c) of Section 16‑103 who is taking a tariffed
service that is declared to be a competitive service pursuant
to subsection (a) of this Section shall be entitled to
continue to take the service from the electric utility on a
tariffed basis for a period of 3 years following the date
that the service is declared competitive, or such other period
as is stated in the electric utility's tariff pursuant to
Section 16‑110. This subsection shall not require the
electric utility to offer or provide on a tariffed basis any
service to any customer (except those customers identified in
subsection (c) of Section 16‑103) that was not taking such
service on a tariffed basis on the date the service was
declared to be competitive.
(c) If the Commission denies a petition to declare a
service to be a competitive service, or determines in a
separate proceeding that a service is not competitive based on
the criteria set forth in subsection (a), the electric utility
may file a new petition no earlier than 6 months following the
date of the Commission's order, requesting, on the basis of
additional or different facts and circumstances, that the
service be declared to be a competitive service.
(d) The Commission shall not deny a petition to declare
a service to be a competitive service, and shall not find that
a service is not a competitive service, on the grounds that it
has previously denied the petition of another electric utility
to declare the same or a similar service to be a competitive
service or has previously determined that the same or a
similar service provided by another electric utility is not a
competitive service.
(e) An electric utility may declare a service, other
than delivery services or the provision of electric power or
energy, to be competitive by filing with the Commission at
least 14 days prior to the date on which the service is to
become competitive a notice describing the service that is
being declared competitive and the date on which it will
become competitive; provided, that any customer who is taking
a tariffed service that is declared to be a competitive
service pursuant to this subsection (e) shall be entitled to
continue to take the service from the electric utility on a
tariffed basis until the electric utility files, and the
Commission grants, a petition to declare the service
competitive in accordance with subsection (a) of this Section.
The Commission shall be authorized to find and order, after
notice and hearing in a subsequent proceeding initiated by the
Commission, that any service declared to be competitive
pursuant to this subsection (e) is not competitive in
accordance with the criteria set forth in subsection (a) of
this Section.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑114)
Sec. 16‑114.
Recovery of decommissioning charges.
On or before April 1, 1999, each electric utility owning
an interest in, or having responsibility as a matter of
contract or statute for decommissioning costs as defined in
Section 8‑508.1 of, one or more nuclear power plants shall file
with the Commission a tariff or tariffs conforming to the
provisions of Section 9‑201.5 of this Act, to be applicable to each and every
kilowatt‑hour of electricity delivered or sold at retail in the electric
utility's service area, including, but not limited to, sales by the electric
utility to tariffed services retail customers, sales by the electric utility to
retail customers pursuant to special contracts or other negotiated
arrangements, sales by alternative retail electric suppliers, and sales by an
electric utility other than the electric utility in whose service
area the retail customer is located; provided, however, that for a
user that obtained electric power and energy from its own
cogeneration or self‑generation facilities on or before
January 1, 1997, and subsequently takes services from an
alternative retail electric supplier or an electric
utility other than the electric utility in whose service
area the user is located for any portion of its electric
power and energy requirements formerly obtained from
those facilities, the tariff required by this Section
shall not be applicable in any year to that portion of
the user's electric power and energy requirements
formerly obtained from those facilities, provided that
for the purposes of this Section, 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 user became eligible for delivery services.
The Commission shall determine whether the tariff meets the
requirements of Sections 9‑201 and 9‑201.5 and of this
Section, and shall permit the electric utility's tariff
together with any modifications made after hearing to become
effective no later than October 1, 1999. In making its determination, the
Commission shall retain the authority it possessed prior to the effective date
of this amendatory Act of 1997 to make jurisdictional allocations of
decommissioning expense recovery.
The tariff filed
pursuant to this Section shall be
applicable to any user taking some or all of its electric
power and energy requirements from an alternative retail
electric supplier or from an electric utility other than the
electric utility in whose service area the user is located on
and after the date that the user becomes eligible for delivery
services in accordance with Section 16‑104. If the electric
utility has in effect as of the effective date of this
amendatory Act of 1997 a decommissioning rate as defined in
Section 9‑201.5 conforming to the requirements of that
Section, the tariff or tariffs required by this Section shall
if the electric utility requests be consistent with its
decommissioning rate that is already in effect; provided, that
the tariff or tariffs filed pursuant to this Section shall
provide for the removal from base rates of any decommissioning
costs that are included in the electric utility's base rates
and their inclusion in the tariff or tariffs required by this
Section. The tariff required by this Section shall be included
by the Commission in the reviews required by subsection (d) of
Section 9‑201.5.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑114.1)
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.
(Source: P.A. 91‑50, eff. 6‑30‑99.)
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(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 | ||
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(2) That the applicant will comply with all | ||
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(3) That the applicant will only provide service to | ||
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(4) That the applicant will comply with such | ||
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(5) That if the applicant, its corporate affiliates | ||
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(6) With respect to an applicant that seeks to serve | ||
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(7) That the applicant meets the requirements of | ||
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(8) That the applicant will comply with all other | ||
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(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; 91‑50, eff. 6‑30‑99.)
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(220 ILCS 5/16‑115A)
Sec. 16‑115A.
Obligations of alternative retail electric
suppliers.
(a) An alternative retail electric supplier shall:
(i) comply with the requirements imposed on public | ||
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(ii) continue to comply with the requirements for | ||
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(b) An alternative retail electric supplier shall obtain verifiable
authorization from a customer, in a form or manner approved by the Commission
consistent with Section 2EE of the Consumer Fraud and Deceptive Business
Practices Act, before the customer is switched from another supplier.
(c) No alternative retail electric supplier, or electric
utility other than the electric utility in whose service area
a customer is located, shall (i) enter into or employ any
arrangements which have the effect of preventing a retail
customer with a maximum electrical demand of less than one
megawatt from having access to the services of the electric
utility in whose service area the customer is located or (ii)
charge retail customers for such access. This subsection shall not be
construed to prevent an arms‑length agreement between a
supplier and a retail customer that sets a term of service, notice
period for terminating service and provisions governing early
termination through a tariff or contract as allowed by Section 16‑119.
(d) An alternative retail electric supplier that is
certified to serve residential or small commercial retail
customers shall not:
(1) deny service to a customer or group of customers | ||
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(2) deny service to a customer or group of customers | ||
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(e) An alternative retail electric supplier shall comply
with the following requirements with respect to the marketing,
offering and provision of products or services to residential
and small commercial retail customers:
(i) Any marketing materials which make statements | ||
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(ii) Before any customer is switched from another | ||
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(iii) An alternative retail electric supplier shall | ||
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(iv) The alternative retail electric supplier shall | ||
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(f) An alternative retail electric supplier may limit
the overall size or availability of a service offering by
specifying one or more of the following: a maximum number of
customers, maximum amount of electric load to be served, time
period during which the offering will be available, or other
comparable limitation, but not including the geographic
locations of customers within the area which the alternative
retail electric supplier is certificated to serve. The
alternative retail electric supplier shall file the terms and
conditions of such service offering including the applicable
limitations with the Commission prior to making the service
offering available to customers.
(g) Nothing in this Section shall be construed as
preventing an alternative retail electric supplier,
which is an affiliate of, or which contracts with, (i) an
industry or trade organization or association, (ii) a
membership organization or association that exists for a
purpose other than the purchase of electricity, or (iii)
another organization that meets criteria established in a rule
adopted by the Commission, from offering through the
organization or association services at prices, terms and
conditions that are available solely to the members of the
organization or association.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑115B)
Sec. 16‑115B.
Commission oversight of services provided
by alternative retail electric suppliers.
(a) The Commission shall have jurisdiction in accordance
with the provisions of Article X of this Act to entertain and dispose of
any complaint against any alternative retail electric supplier
alleging (i) that the alternative retail electric supplier has
violated or is in nonconformance with any applicable
provisions of Section 16‑115 through Section 16‑115A; (ii) that
an alternative retail electric supplier serving retail
customers having maximum demands of less than one megawatt has
failed to provide service in accordance with the terms of its
contract or contracts with such customer or customers; (iii)
that the alternative retail electric supplier has violated or
is in non‑conformance with the delivery services tariff of, or
any of its agreements relating to delivery services with, the
electric utility, municipal system, or electric cooperative
providing delivery services; or (iv) that the alternative
retail electric supplier has violated or failed to comply with
the requirements of Sections 8‑201 through 8‑207, 8‑301, 8‑505,
or 8‑507 of this Act as made applicable to alternative retail
electric suppliers.
(b) The Commission shall have authority, after notice
and hearing held on complaint or on the Commission's own
motion:
(1) To order an alternative retail electric supplier | ||
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(2) To impose financial penalties for violations of | ||
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(3) To alter, modify, revoke or suspend the | ||
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(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑116)
Sec. 16‑116.
Commission oversight of electric utilities serving retail
customers
outside their service areas or providing
competitive, non‑tariffed services.
(a) An electric utility that has a tariff on file for
delivery services may, without regard to any otherwise
applicable tariffs on file, provide electric power and energy
to one or more retail customers located outside its service
area, but only to the extent (i) such retail customer (A) is
eligible for delivery services under any delivery services
tariff filed with the Commission by the electric utility in
whose service area the retail customer is located and (B) has
either elected to take such delivery services or has paid or
contracted to pay the charges specified in Sections 16‑108 and
16‑114, or (ii) if such retail customer is served by a
municipal system or electric cooperative, the customer is
eligible for delivery services under the terms and conditions
for such service established by the municipal system or
electric cooperative serving that customer.
(b) An electric utility may offer any competitive
service to any customer or group of customers without filing
contracts with or seeking approval of the Commission, notwithstanding any rule
or regulation that would require such
approval. The Commission shall not increase or decrease the
prices, and may not alter or add to the terms and conditions
for the utility's competitive services, from those agreed to by the electric
utility and the customer or customers. Non‑tariffed, competitive services
shall
not be subject to the provisions of the Electric Supplier Act or to Articles V,
VII, VIII or
IX of the Act, except to the extent that any provisions of
such Articles are made applicable to alternative retail
electric suppliers pursuant to Sections 16‑115 and 16‑115A, but shall be
subject to the provisions of subsections (b) through (g) of Section 16‑115A,
and Section 16‑115B to the same extent such provisions are applicable to the
services provided by alternative retail electric suppliers.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑117)
Sec. 16‑117.
Commission consumer education program.
(a) The restructuring of the electricity industry will
create a new electricity market with new marketers and sellers
offering new goods and services, many of which the average
consumer will not be able to readily evaluate. It is the
intent of the General Assembly that (i) electricity consumers
be provided with sufficient and reliable information so that
they are able to compare and make informed selections of
products and services provided in the electricity market; and
(ii) mechanisms be provided to enable consumers to protect
themselves from marketing practices that are unfair or
abusive.
(b) The Commission shall implement and maintain a
consumer education program to provide residential and small
commercial retail customers with information to help them
understand their service options in a competitive electric
services market, and their rights and responsibilities.
(c) The Commission shall form a working group following
the enactment of this amendatory Act of 1997. This group shall
consist of 5 representatives of the investor‑owned electric
utilities in this State, 2 of which shall be appointed by
electric utilities serving over 1,000,000 retail customers
in this State; 2 representatives of alternative retail
electric suppliers; 3 representatives of organizations
representing the interests of residential and small commercial
retail customers; and the Commission.
(d) By March 1, 1999, with respect to educational materials for
small commercial customers and by November 1, 2001 with respect to educational
materials for residential customers, the working group appointed pursuant
to this Section shall develop a package of printed educational
materials which meet the requirements of subsection (e) and
shall submit such package to the Commission for approval,
along with recommendations for implementing this consumer
education program. Such materials shall consider the needs of
different types of consumers in this State, such as elderly,
low‑income, multilingual, minority, rural and disabled
customers. The working group shall issue recommendations to
the Commission on how such education program can be
implemented through a variety of communication methods,
including specifically mass media, distribution of printed
material, public service announcements, and posting on the
Internet.
(e) At a minimum, the materials constituting the
consumer education program submitted to the Commission by the
working group shall include concise explanations or
descriptions of the following:
(1) the structure of the electric utility industry | ||
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(2) the choices available to consumers to take | ||
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(3) a customer's rights, risks and responsibilities | ||
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(4) the legal obligations of alternative retail | ||
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(5) those services that may be offered on a | ||
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(6) services that an electric utility is required to | ||
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(7) the components of a bill that could be received | ||
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(8) the complaint procedures set forth in Section | ||
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(9) additional information available from the | ||
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(f) Within 45 days following the submission required of
the working group by subsection (d) of this Section, the
Commission shall approve or disapprove the educational
materials and recommendations for program implementation. The
Commission shall be deemed to have approved the educational
program materials and recommendations unless the Commission
disapproves of any such material or recommendation within 45
days following the date of receipt.
(g) Once approved by the Commission, materials
comprising the consumer education program contemplated by this
Section shall be distributed as follows:
(1) Electric utilities shall mail printed | ||
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(2) Alternative retail electric suppliers shall | ||
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(3) Both electric utilities and alternative retail | ||
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(4) The Commission shall make available upon request | ||
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(A) all printed educational materials developed | ||
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(B) a list of all certified alternative retail | ||
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(C) a list of alternative retail electric | ||
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(D) guidelines to assist customers in | ||
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(h) The Commission may also adopt a uniform disclosure
form which alternative retail electric suppliers would be
required to complete enabling consumers to compare prices,
terms and conditions offered by such suppliers.
(i) The Commission shall make available to the public
staff with the ability and knowledge to respond to consumer
inquiries.
(j) The costs of printing educational materials approved
by the Commission pursuant to this Section shall be payable
solely from funding as provided in this subsection.
Each year the General Assembly shall appropriate money to
the Commission from the General Revenue Fund for the expenses
of the Commission associated with this Section. The cost of
the consumer education program contemplated by this Section
shall not exceed the amount of such appropriation. In no event
shall any electric utility, alternative retail electric
supplier or customer be liable for the costs of printing
consumer education program material in accordance with this
Section. The obligations associated with this consumer
education program shall not exceed the amounts appropriated
for this program pursuant to this Section.
(k) The Commission shall study the effectiveness of the
consumer education program. Such study shall include a notice
and an opportunity for participation and comment by all
interested and potentially affected parties. Such study shall
be completed by January 31st of each year during the mandatory
transition period and a summary thereof, together with any
legislative recommendations, shall be included in the
Commission's Annual Report due in accordance with Section
4‑304 of this Act.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑118)
Sec. 16‑118.
Services provided by electric utilities to
alternative retail electric suppliers.
(a) It is in the best interest of Illinois energy
consumers to promote fair and open competition in the
provision of electric power and energy and to prevent
anticompetitive practices in the provision of electric power
and energy.
Therefore, to the extent an electric utility provides electric power and energy
or delivery services to alternative retail electric suppliers and such services
are not subject to the jurisdiction of the Federal Energy
Regulatory Commission, and are not competitive services, they
shall be provided through tariffs that are filed with the
Commission, pursuant to Article IX of this Act.
Each electric utility shall permit alternative
retail electric suppliers to interconnect facilities to those
owned by the utility provided they meet established standards
for such interconnection, and may provide standby or other
services to alternative retail electric suppliers. The
alternative retail electric supplier shall sign a contract
setting forth the prices, terms and conditions for
interconnection with the electric utility and the prices,
terms and conditions for services provided by the electric
utility to the alternative retail electric supplier in
connection with the delivery by the electric utility of
electric power and energy supplied by the alternative retail
electric supplier.
(b) An electric utility shall file a tariff pursuant to Article IX of the
Act that would allow alternative retail electric suppliers or electric
utilities other than the electric utility in whose service area retail
customers are
located to issue single bills to the retail customers for both the services
provided by such alternative retail electric supplier or other electric utility
and the delivery services provided by the electric utility to such customers.
The tariff filed pursuant to this subsection shall (i) require partial payments
made by retail customers to be credited first to the electric utility's
tariffed services, (ii) impose commercially reasonable terms with respect to
credit and collection, including requests for deposits, (iii) retain the
electric utility's right to disconnect the retail customers, if it does not
receive payment for its tariffed services, in the same manner that it would be
permitted to if it had billed for the services itself, and (iv) require the
alternative retail electric supplier or other electric utility that elects the
billing option provided by this tariff to include on each bill to retail
customers an identification of the electric utility providing the delivery
services and a listing of the charges applicable to such services. The tariff
filed pursuant to this subsection may also include other just and reasonable
terms and conditions. In addition,
an electric utility, an alternative retail electric
supplier or electric utility other than the electric utility
in whose service area the customer is located, and a customer
served by such alternative retail electric supplier or other
electric utility, may enter into an agreement pursuant to
which the alternative retail electric supplier or other
electric utility pays the charges specified in Section 16‑108,
or other customer‑related charges, including taxes and fees,
in lieu of such charges being recovered by the electric
utility directly from the customer.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑119)
Sec. 16‑119.
Switching suppliers.
An electric utility or an alternative retail electric
supplier may establish a term of service, notice period for
terminating service and provisions governing early termination
through a tariff or contract. A customer may change its
supplier subject to tariff or contract terms and conditions.
Any notice provisions; or provision for a fee, charge or
penalty with early termination of a contract; shall be
conspicuously disclosed in any tariff or contract. A customer
shall remain responsible for any unpaid charges owed to an
electric utility or alternative retail electric supplier at
the time it switches to another provider.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑119A)
Sec. 16‑119A.
Functional separation.
(a) Within 90 days after the effective date of this amendatory Act of 1997,
the Commission shall open a rulemaking proceeding to
establish standards of conduct for every electric utility
described in subsection (b). To create efficient competition
between suppliers of generating services and sellers of such
services at retail and wholesale, the rules shall allow all
customers of a public utility that distributes electric power
and energy to purchase electric power and energy from the
supplier of their choice in accordance with the provisions of
Section 16‑104. In addition, the rules shall address relations
between providers of any 2 services described in subsection (b)
to prevent undue discrimination and promote efficient
competition. Provided, however, that a proposed rule shall not be
published prior to May 15, 1999.
(b) The Commission shall also have the authority to investigate
the need for, and adopt rules requiring, functional separation
between the generation services and the delivery services of
those electric utilities whose principal service area is in
Illinois as necessary to meet the objective of creating efficient
competition between suppliers of generating services and sellers
of such services at retail and wholesale. After January 1, 2003,
the Commission shall also have the authority to investigate the
need for, and adopt rules requiring, functional separation
between an electric utility's competitive and non‑competitive
services.
(b‑5) If there is a change in ownership of a majority of the voting
capital
stock of
an electric utility or the ownership or control of any entity that owns or
controls a
majority of the voting capital stock of an electric utility, the electric
utility shall have the
right to file with the Commission a new plan. The newly filed plan shall
supersede any plan previously
approved
by the Commission pursuant to this Section for that electric utility, subject
to Commission approval. This
subsection only
applies to the extent that the Commission rules for the functional separation
of delivery
services and generation services provide an electric utility with the ability
to select from 2
or more options to comply with this Section. The electric utility may file its
revised plan
with the Commission up to one calendar year after the conclusion of the sale,
purchase,
or any other transfer of ownership described in this subsection. In all other
respects, an electric utility must comply with the Commission rules in effect
under this Section. The Commission
may
promulgate rules to implement this subsection. This subsection shall have no
legal effect after January 1, 2005.
(c) In establishing or considering the need for rules under
subsections (a) and (b), the Commission shall take into account
the effects on the cost and reliability of service and the
obligation of the utility to provide bundled service under this
Act. The Commission shall adopt rules that are a cost effective
means to ensure compliance with this Section.
(d) Nothing in this Section shall be construed as imposing any
requirements or obligations that are in conflict with federal
law.
(Source: P.A. 92‑756, eff. 8‑2‑02.)
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(220 ILCS 5/16‑120)
Sec. 16‑120.
Development of competitive market; Commission study and
reports; investigation.
(a) On or before December 31, 1999 and once every 3
years thereafter, the Commission shall monitor and analyze
patterns of entry and exit, applications for entry and exit,
and any barriers to entry or participation that may exist, for
services provided under this Article; shall analyze any
impediments to the establishment of a fully competitive energy
and power market in Illinois; and shall include its findings
together with appropriate recommendations for legislative
action in a report to the General Assembly.
(b) Beginning in 2001, and ending in 2006, the Commission shall prepare an
annual report regarding the development of electricity markets in Illinois
which shall be filed by April 1 of each year with the Joint Committee on
Legislative Support Services of the General Assembly and the Governor and which
shall be publicly available. Such report shall include, at a minimum, the
following information:
(1) the aggregate annual peak demand of retail | ||
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(2) the total annual kilowatt‑hours delivered and | ||
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(3) the percentage of the total kilowatt‑hours | ||
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(4) any other information the Commission considers | ||
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The Commission may also include such other information as it deems to be
necessary or beneficial in describing or explaining the results of its Report.
The Report required by this Section shall be adopted by a vote of the full
Commission prior to filing. Proprietary or confidential information shall not
be disclosed publicly. Nothing contained in this Section shall prohibit the
Commission from taking actions that would otherwise be allowed under this
Act.
(c) The Commission shall prepare a report on the value of municipal
aggregation of electricity customers. The report shall be filed with the
General Assembly and the Governor no later than January 15, 2003 and shall be
publicly available. The report shall, at a minimum, include:
(1) a description and analysis of actual and | ||
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(2) estimates of the potential benefits of municipal | ||
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(3) a description of the barriers to municipal and | ||
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(4) options for legislative action to foster | ||
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In preparing the report, the Commission shall consult with persons involved
in aggregation or the study of aggregation of electricity customers in
Illinois, including municipalities, utilities, aggregators, and non‑profit
organizations. The
provisions of Section 16‑122 notwithstanding, the Commission may request and
utilities shall provide such aggregated load data as may be necessary to
perform the analyses required by this subsection;
provided, however, proprietary or confidential information shall not be
disclosed publicly.
(Source: P.A. 92‑585, eff. 6‑26‑02.)
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(220 ILCS 5/16‑121)
Sec. 16‑121.
Non‑discrimination; adoption of rules and
regulations.
The Commission shall adopt rules and regulations no later
than 180 days after the effective date of this amendatory Act of 1997 governing
the relationship between the electric utility and its
affiliates, and ensuring nondiscrimination in services
provided to the utility's affiliate and any alternative retail
electric supplier, including without limitation, cost
allocation, cross‑subsidization and information sharing.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑122)
Sec. 16‑122.
Customer information.
(a) Upon the request of a retail customer, or a person
who presents verifiable authorization and is acting as the
customer's agent, and payment of a reasonable fee, electric
utilities shall provide to the customer or its authorized
agent the customer's billing and usage data.
(b) Upon request from any alternative retail electric
supplier and payment of a reasonable fee, an electric utility
serving retail customers in its service area shall make
available generic information concerning the usage, load shape
curve or other general characteristics of customers by rate
classification. Provided however, no customer specific
billing, usage or load shape data shall be provided under this
subsection unless authorization to provide such information is
provided by the customer pursuant to subsection (a) of this
Section.
(c) Upon request from a unit of local government and payment of a
reasonable fee, an electric utility shall make available information concerning
the usage, load shape curves, and other characteristics of customers by
customer classification and location within the boundaries of the unit of local
government, however, no customer specific billing, usage, or load shape data
shall be provided under this subsection unless authorization to provide that
information is provided by the customer.
(d) All such customer information shall be made available
in a timely fashion in an electronic format, if available.
(Source: P.A. 92‑585, eff. 6‑26‑02.)
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(220 ILCS 5/16‑123)
Sec. 16‑123.
Establishment of customer information
centers for electric utilities and
alternative retail electric suppliers.
All electric utilities and alternative retail electric
suppliers shall be required to maintain a customer call center
where customers can reach a representative and receive current
information. Customers shall periodically be notified on how
to reach the call center. The Commission shall have the
authority to establish reporting requirements for such
centers.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑124)
Sec. 16‑124.
Metering for residential and small
commercial retail customers.
An electric utility shall not require a residential or
small commercial retail customer to take additional metering
or metering capability as a condition of taking delivery
services unless the Commission finds, after notice and
hearing, that additional metering or metering capability is
required to meet reliability requirements. Alternative retail
electric suppliers serving such customers may provide such
additional metering or metering capability at their own
expense or take such additional metering or metering
capability from the utility as a tariffed service. Any
additional metering requirements shall be imposed in a
nondiscriminatory manner. Nothing in this subsection shall be
construed to prevent the normal maintenance, replacement or
upgrade of meters as required to comply with Commission rules.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑125)
Sec. 16‑125.
Transmission and distribution reliability
requirements.
(a) To assure the reliable delivery of electricity to all
customers in this State and the effective implementation of
the provisions of this Article, the Commission shall, within
180 days of the effective date of this Article, adopt rules
and regulations for assessing and assuring the reliability of
the transmission and distribution systems and facilities that
are under the Commission's jurisdiction.
(b) These rules and regulations shall require each electric utility or
alternative retail electric supplier owning, controlling, or operating
transmission and distribution facilities and equipment subject to the
Commission's jurisdiction, referred to in this Section as "jurisdictional
entities", to adopt and implement procedures for restoring transmission and
distribution services to customers after transmission or distribution outages
on a nondiscriminatory basis without regard to whether a customer has chosen
the electric utility, an affiliate of the electric utility, or another entity
as its provider of electric power and energy. These rules and regulations
shall also, at a minimum, specifically require each jurisdictional entity to
submit annually to the Commission.
(1) the number and duration of planned and unplanned | ||
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(2) outages that were controllable and outages that | ||
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(3) customer service interruptions that were due | ||
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(4) a detailed report of the age, current condition, | ||
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(i) a summary of the jurisdictional entity's | ||
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(ii) the jurisdictional entity's expenditures | ||
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(iii) the jurisdictional entity's expenditures | ||
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(iv) a customer satisfaction survey covering, | ||
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(v) the corresponding information, in the same | ||
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(5) a plan for future investment and reliability | ||
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(6) a report of the jurisdictional entity's | ||
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(c) The Commission rules shall set forth the criteria
that will be used to assess each jurisdictional entity's annual report and
evaluate its reliability performance. Such criteria
must take into account, at a minimum: the items required to be
reported in subsection (b); the relevant characteristics of
the area served; the age and condition of the system's
equipment and facilities; good engineering practices; the
costs of potential actions; and the benefits of avoiding the
risks of service disruption.
(d) At least every 3 years, beginning in the year
the Commission issues the rules required by subsection
(a) or the following year if the rules are issued after June
1, the Commission shall assess the annual report of each
jurisdictional entity and evaluate its reliability performance. The
Commission's evaluation shall
include specific identification of, and recommendations
concerning, any potential reliability problems that it has
identified as a result of its evaluation.
(e) In the event that more than 30,000 customers of an electric
utility are subjected to a continuous power interruption of
4 hours or more that results in the transmission of power
at less than 50% of the standard voltage, or that results in
the total loss of power transmission, the utility shall be
responsible for compensating customers affected by that interruption for 4
hours or more for all
actual damages, which shall not include consequential
damages, suffered as a result of the power interruption.
The utility shall also reimburse the affected municipality,
county, or other unit of local government in which the power
interruption has taken place for all
emergency and contingency expenses incurred by the unit of
local government as a result of the interruption. A waiver
of the requirements of this subsection may be granted by the
Commission in instances in which the utility can show that
the power interruption was a result of any
one or more of the following causes:
(1) Unpreventable damage due to weather events or | ||
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(2) Customer tampering.
(3) Unpreventable damage due to civil or | ||
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(4) Damage to utility equipment or other actions by | ||
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Loss of revenue and expenses incurred in complying with this
subsection may not be recovered from ratepayers.
(f) In the event of a power surge or other fluctuation
that causes damage and affects more than 30,000 customers, the electric utility
shall pay to
affected customers the replacement value of all goods
damaged as a result of the power surge or other fluctuation
unless the utility can show that the power surge or other
fluctuation was due to one or more of the following causes:
(1) Unpreventable damage due to weather events or | ||
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(2) Customer tampering.
(3) Unpreventable damage due to civil or | ||
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(4) Damage to utility equipment or other actions by | ||
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Loss of revenue and expenses incurred in complying with this
subsection may not be recovered from ratepayers. Customers with respect to
whom a waiver has been granted by the Commission pursuant to subparagraphs
(1)‑(4) of subsections (e) and (f) shall not count toward the 30,000 customers
required therein.
(g) Whenever an electric utility must perform
planned or routine maintenance or repairs on its equipment
that will result in transmission of power at less than 50%
of the standard voltage, loss of power, or power fluctuation
(as defined in subsection (f)), the utility shall make
reasonable efforts to notify potentially affected customers
no less than 24 hours in advance of performance of the
repairs or maintenance.
(h) Remedies provided for under this Section may be
sought exclusively through the Illinois Commerce Commission
as provided under Section 10‑109 of this Act. Damages
awarded under this Section for a power interruption shall be
limited to actual damages, which shall not include
consequential damages, and litigation costs. Damage awards
may not be paid out of utility rate funds.
(i) The provisions of this Section shall not in any way
diminish or replace other civil or administrative remedies
available to a customer or a class of customers.
(j) The Commission shall by rule require an electric
utility to maintain service records detailing
information on each instance of transmission of power at
less than 50% of the standard voltage, loss of power, or
power fluctuation (as defined in subsection (f)), that
affects 10 or more customers. Occurrences that are
momentary shall not be required to be recorded or reported.
The service record shall include, for each occurrence, the
following information:
(1) The date.
(2) The time of occurrence.
(3) The duration of the incident.
(4) The number of customers affected.
(5) A description of the cause.
(6) The geographic area affected.
(7) The specific equipment involved in the | ||
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(8) A description of measures taken to restore | ||
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(9) A description of measures taken to remedy the | ||
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(10) A description of measures taken to prevent | ||
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(11) The amount of remuneration, if any, paid to | ||
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(12) A statement of whether the fixed charge was | ||
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Copies of the records containing this information shall
be available for public inspection at the utility's offices,
and copies thereof may be obtained upon payment of a fee not
exceeding the reasonable cost of reproduction. A copy of
each record shall be filed with the Commission and shall be
available for public inspection. Copies of the records may
be obtained upon payment of a fee not exceeding the
reasonable cost of reproduction.
(k) The requirements of subsections (e) through (j) of
this Section shall apply only to an electric public utility
having 1,000,000 or more customers.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑125A)
Sec. 16‑125A.
Consolidated billing provision for
established intergovernmental agreement
participants.
(a) The tariffs of each electric utility serving at least
1,000,000 customers shall permit governmental customers acting
through an intergovernmental agreement that was in effect 30 days
prior to the date specified in subsection (b) and which provides for these
governmental customers to work cooperatively in the purchase of electric energy
to aggregate their
monthly
kilowatt‑hour energy usage and monthly kilowatt billing
demand.
(b) In implementing the provisions of this Section, the
rates and charges applicable under the combined billing tariff of
the serving utility in effect on May 1, 1997 shall apply to all
load of eligible government customers selected by the governmental
customers including, but not limited to, load served under
contract.
(c) For purposes of this Section, "governmental customers"
shall mean any customer that is
a municipality, municipal corporation,
unit of local government, park district, school district,
community college district, forest preserve district, special
district, public corporation, body politic and corporate,
sanitary or water reclamation district, or other local government
agencies, including any entity created by intergovernmental
agreement among any of the foregoing entities to implement the
arrangements permitted by subsections (a) and (b) of this
Section.
(d) Electric utilities shall file tariffs that comply with
the requirements of this Section within 60 days after the effective
date of this amendatory Act of 1997.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑126)
Sec. 16‑126.
Membership in an independent system operator.
(a) The General Assembly finds that the establishment of one or
more independent system operators or their functional equivalents
is required to facilitate the development of an open and
efficient marketplace for electric power and energy to the
benefit of Illinois consumers. Therefore, each Illinois electric
utility owning or controlling transmission facilities or
providing transmission services in Illinois and that is a member
of the Mid‑American Interconnected Network as of the effective
date of this amendatory Act of 1997 shall submit for approval to
the Federal Energy Regulatory Commission an application for
establishing or joining an independent system operator that
shall:
(1) independently manage and control transmission | ||
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(2) provide for nondiscriminatory access to and use | ||
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(3) direct the transmission activities of the | ||
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(4) coordinate, plan, and order the installation of | ||
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(5) adopt inspection, maintenance, repair, and | ||
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(6) implement procedures and act to assure the | ||
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These standards shall be
consistent with reliability criteria no less stringent than those
established by the Mid‑American Interconnected Network and the
North American Electric Reliability Council or their successors.
(b) The requirements of this Section may be met by joining or
establishing a regional independent system operator that meets
the criteria enumerated in subsections (a), (c), and (d) of this
Section, as determined by the Commission. To achieve the
objectives set forth in subsection (a), the State of Illinois,
through the appropriate officers, departments, and agencies, shall
work cooperatively with the appropriate officials and agencies of
those States contiguous to this State and the Federal Energy
Regulatory Commission towards the formation of one or more
regional independent system operators.
(c) The independent system operator's governance structure must be fair and
nondiscriminatory, and
the independent system operator must be independent of any one market
participant or class of participants. The independent system operator's rules
of
governance must prevent control, or the appearance of control, of
decision‑making by any class of participants.
(d) Participants in the independent system operator shall make available to
the independent system operator all
information required by the independent system operator in performance of its
functions
described herein. The independent system operator and the electric utilities
participating in the independent system operator shall make all filings
required by the
Federal Energy Regulatory Commission. The independent system operator shall
ensure that
additional filings at the Federal Energy Regulatory Commission
request confirmation of the relevant provisions of this
amendatory Act of 1997.
(e) If a spot market, exchange market, or other market‑based
mechanism providing transparent real‑time market prices for
electric power has not been developed, the independent system operator or a
closely
cooperating agent of the independent system operator may provide an efficient
competitive
power exchange auction for electric power and energy, open on a
nondiscriminatory basis to all suppliers, which meets the loads
of all auction customers at efficient prices.
(f) For those electric utilities referred to in subsection (a)
which have not filed with the Federal Energy Regulatory Commission by June 30,
1998 an
application for establishment or participation in an independent
system operator or if such application has not been approved by
the Federal Energy Regulatory Commission by March 31, 1999, a 5 member
Oversight Board shall
be formed. The Oversight Board shall (1) oversee the creation of
an Illinois independent system operator and (2) determine the composition and
initial
terms of service of, and appoint the initial members of, the
Illinois independent system operator board of directors. The Oversight Board
shall
consist of the following: (1) 3 persons appointed by the
Governor; (2) one person appointed by the Speaker of the House of
Representatives; and (3) one person appointed by the President of
the Senate. The Oversight Board shall take the steps that are
necessary to ensure the earliest possible incorporation of an
Illinois independent system operator under the Business Corporation Act of
1983, and
shall serve until the Illinois independent system operator is incorporated.
(g) After notice and hearing, the Commission shall require each
electric utility referred to in subsection (a), that is not
participating in an independent system operator meeting the requirements of
subsections
(a) and (c), to seek authority from the Federal Energy Regulatory Commission to
transfer
functional control of transmission facilities to the Illinois independent
system operator
for control by the Illinois independent system operator consistent with the
requirements
of subsection (a). Upon approval by the Federal Energy Regulatory Commission,
electric utilities
may also elect to transfer ownership of transmission facilities
to the Illinois independent system operator. Nothing in this Act shall be
deemed to
preclude the Illinois independent system operator from (1) seeking authority,
as
necessary, to merge with or otherwise combine its operations with
those of one or more other entities authorized to provide
transmission services, (2) purchasing or leasing transmission
assets from transmission‑owning entities not required by this
Section to lease transmission facilities to the Illinois independent system
operator, or
(3) operating as a transmission public utility under the Federal
Power Act.
(h) Any other owner of transmission facilities in Illinois not
required by this Section to participate in an independent system operator shall
be
permitted, but not required, to become a member of the Illinois
independent system operator.
(i) The Illinois independent system operator created under this Section, and
any other
independent system operator authorized by the Federal Energy Regulatory
Commission to provide
transmission services as a
public utility under the Federal Power Act within the State of
Illinois, shall be deemed to be a public utility for purposes of
Section 8‑503 and 8‑509 of this Act.
An independent system operator or regional transmission organization that is
the subject
of an order entered by the Commission under Section 8‑503 need not possess a
certificate
of service authority under Section 8‑406 in order to be authorized to take the
actions set
forth in Section 8‑509.
(j) Electric utilities referred to in subsection (a) may withdraw
from the Illinois independent system operator upon becoming a member of an
independent
system operator or operators conforming with the criteria in
subsections (a) and (c) and whose formation and operation has
been approved by the Federal Energy Regulatory Commission. This
subsection does not relieve any electric utility of any
obligations under Federal law.
(k) Nothing in this Section shall be construed as imposing any
requirements or obligations that are in conflict with federal
law.
(l) A regional transmission organization created under the rules of the
Federal
Energy Regulatory Commission shall be considered to be the functional
equivalent of an
independent system operator for purposes of this Section, and an electric
utility shall be
deemed to meet its obligations under this Section through membership in a
regional
transmission organization that fulfills the requirements of an independent
system operator
under this Section.
(Source: P.A. 92‑12, eff. 7‑1‑01.)
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(220 ILCS 5/16‑127)
Sec. 16‑127.
Environmental disclosure.
(a) Effective January 1, 1999, every electric utility and
alternative retail electric supplier shall provide the
following information, to the maximum extent practicable, with
its bills to its customers on a quarterly basis:
(i) the known sources of electricity supplied, | ||
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(ii) a pie‑chart which graphically depicts the | ||
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(b) In addition, every electric utility and alternative
retail electric supplier shall provide, to the maximum extent
practicable, with its bills to its customers on a quarterly
basis, a standardized chart in a format to be determined by
the Commission in a rule following notice and hearings which
provides the amounts of carbon dioxide,
nitrogen oxides
and sulfur dioxide emissions and nuclear waste
attributable to the known sources of electricity supplied as
set forth in subparagraph (i) of subsection (a) of this
Section.
(c) The electric utilities and alternative retail
electric suppliers may provide their customers with such other
information as they believe relevant to the information
required in subsections (a) and (b) of this Section.
(d) For the purposes of subsection (a) of this Section,
"biomass" means dedicated crops grown for energy production
and organic wastes.
(e) All of the information provided in subsections (a)
and (b) of this Section shall be presented to the Commission
for inclusion in its World Wide Web Site.
(Source: P.A. 90‑561, eff. 12‑16‑97; 90‑624, eff. 7‑10‑98.)
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(220 ILCS 5/16‑128)
Sec. 16‑128.
Provisions related to utility employees
during the mandatory transition period.
(a) The General Assembly finds:
(1) The reliability and safety of the electric | ||
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(2) The integrity and reliability of the system has | ||
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(3) It is in the State's interest to protect the | ||
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The General Assembly further finds that it is
necessary to assure that employees operating in the
deregulated industry have the requisite skills, knowledge, and
competence to provide reliable and safe electrical service
and therefore that alternative retail electric suppliers shall be required to
demonstrate
the competence of their employees to work in the industry.
The knowledge, skill, and competence levels to be
demonstrated shall be consistent with those generally required
of or by the electric utilities in this State with respect to
their employees.
Adequate demonstration of requisite knowledge, skill and
competence shall include such factors as completion by the
employee of an accredited or otherwise recognized
apprenticeship program for the particular craft, trade or
skill, or specified years of employment with an electric
utility performing a particular work function.
To implement this requirement, the Commission, in
determining that an applicant meets the standards for
certification as an alternative retail electric supplier,
shall require the applicant to demonstrate (i) that the
applicant is licensed to do business, and bonded, in the State
of Illinois; and (ii) that the employees of the applicant that
will be installing, operating, and maintaining generation,
transmission, or distribution facilities within this State, or
any entity with which the applicant has contracted to perform
those functions within this State, have the requisite knowledge, skills, and
competence to perform those functions in a safe and
responsible manner in order to provide safe and reliable
service, in accordance with the criteria stated above.
(b) The General Assembly finds, based on experience in
other industries that have undergone similar transitions, that
the introduction of competition into the State's electric
utility industry may result in workforce reductions by
electric utilities which may adversely affect persons who have
been employed by this State's electric utilities in functions
important to the public convenience and welfare. The General
Assembly further finds that the impacts on employees and their
communities of any necessary reductions in the utility
workforce directly caused by this restructuring of the
electric industry shall be mitigated to the extent
practicable through such means as offers of voluntary
severance, retraining, early retirement, outplacement and
related benefits. Therefore, before any such reduction in the
workforce during the transition period, an electric utility
shall present to its employees or their representatives a
workforce reduction plan outlining the means by which the
electric utility intends to mitigate the impact of such
workforce reduction on its employees.
(c) In the event of a sale, purchase, or any other transfer
of ownership during the mandatory transition period of one or
more Illinois divisions or business units, and/or generating
stations or generating units, of an electric utility, the
electric utility's contract and/or agreements with the
acquiring entity or persons shall require that the entity or
persons hire a sufficient number of non‑supervisory employees
to operate and maintain the station, division or unit by
initially making offers of employment to the non‑supervisory
workforce of the electric utility's division, business unit,
generating station and/or generating unit at no less than the
wage rates, and substantially equivalent fringe benefits and
terms and conditions of employment that are in effect at the
time of transfer of ownership of said division, business unit,
generating station, and/or generating units; and said wage
rates and substantially equivalent fringe benefits and terms
and conditions of employment shall continue for at least 30
months from the time of said transfer of ownership unless the
parties mutually agree to different terms and conditions of
employment within that 30‑month period. The utility shall
offer a transition plan to those employees who are not offered
jobs by the acquiring entity because that entity has a need
for fewer workers. If there is litigation concerning the
sale, or other transfer of ownership of the electric utility's
divisions, business units, generating station, or
generating units, the 30‑month period will begin on the date
the acquiring entity or persons take control or management
of the divisions, business units, generating station or
generating units of the electric utility.
(d) If a utility transfers ownership during the mandatory
transition period of one or more Illinois divisions, business
units, generating stations or generating units of an
electric utility to a majority‑owned subsidiary, that
subsidiary shall continue to employ the utility's employees
who were employed by the utility at such division, business
unit or generating station at the time of the transfer under
the same terms and conditions of employment as those employees
enjoyed at the time of the transfer. If ownership of the
subsidiary is subsequently sold or transferred to a third
party during the transition period, the transition provisions
outlined in subsection (c) shall apply.
(e) The plant transfer provisions set forth above shall not
apply to any generating station which was the subject of a
sales agreement entered into before January 1, 1997.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(220 ILCS 5/16‑129)
Sec. 16‑129.
Existing contracts not affected.
Nothing
in this Article XVI shall affect the right of an electric
utility to continue to provide, or the right of the customer
to continue to receive, service pursuant to a contract for
electric service between the electric utility and the
customer, in accordance with the prices, terms and conditions
provided for in that contract. Either the electric utility or
the customer may require compliance with the prices, terms and
conditions of such contract.
(Source: P.A. 90‑561, eff. 12‑16‑97.)
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(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 | ||
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(A) number of retail customers in each class | ||
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(B) kilowatt hours consumed by the customers | ||
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(C) revenue loss experienced by the utility as a | ||
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(D) total amount of funds collected from each | ||
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(E) Such other information as the Commission may | ||
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(2) A description of any steps taken by the electric | ||
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(3) A description of actions taken under Sections | ||
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(A) a description of the actions taken;
(B) the effective date of the action;
(C) the annual savings or additional charges | ||
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(D) the accumulated impact on customers by | ||
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(E) a summary of the method used to quantify the | ||
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(4) A summary of the electric utility's use of | ||
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(5) Kilowatt‑hours consumed in the twelve months | ||
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(6) Calculations identical to those required by | ||
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(7) The electric utility's total revenue and net | ||
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(8) Any consideration in excess of the net book cost | ||
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(9) Any consideration received by the electric | ||
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(10) Any consideration received by an affiliated | ||
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(11) A summary account of those expenditures made | ||
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(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; 91‑50, eff. 6‑30‑99.)
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