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| Public Act 094-0977 |
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Public Utilities Act is amended by changing | ||||
Sections 16-101A, 16-102, and 16-107 as follows:
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(220 ILCS 5/16-101A)
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Sec. 16-101A. Legislative findings.
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(a) The citizens and businesses of the State of Illinois
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have been well-served by a comprehensive electrical utility
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system which has provided safe, reliable, and affordable
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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.
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(b) Competitive forces are affecting the market for
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electricity as a result of recent federal regulatory and
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statutory changes and the activities of other states.
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Competition in the electric services market may create
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opportunities for new products and services for customers and
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lower costs for users of electricity. Long-standing regulatory
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relationships need to be altered to accommodate the
competition | ||||
that could fundamentally alter the structure of
the electric | ||||
services market.
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(c) With the advent of increasing competition in this
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industry, the State has a continued interest in assuring that
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the safety, reliability, and affordability of electrical power
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is not sacrificed to competitive pressures, and to that end,
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intends to implement safeguards to assure that the industry
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continues to operate the electrical system in a manner that
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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.
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(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.
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(e) All consumers must benefit in an equitable and timely
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fashion from the lower costs for electricity that result from
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retail and wholesale competition and receive sufficient
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information to make informed choices among suppliers and
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services. The use of renewable resources and energy efficiency
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resources should be encouraged in competitive markets.
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(f) The efficiency of electric markets depends both upon | ||
the competitiveness of supply and upon the | ||
price-responsiveness of the demand for service. Therefore, to | ||
ensure the lowest total cost of service and to enhance the | ||
reliability of service, all classes of the electricity | ||
customers of electric utilities should have access to and be | ||
able to voluntarily use real-time pricing and other | ||
price-response and demand-response mechanisms.
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(Source: P.A. 90-561, eff. 12-16-97.)
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(220 ILCS 5/16-102)
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Sec. 16-102. Definitions. For the purposes of this
Article | ||
the following terms shall be defined as set forth in
this | ||
Section.
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"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,
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trustees, or receivers appointed by any court whatsoever, that
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offers electric power or energy for sale, lease or in exchange
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for other value received to one or more retail customers, or
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that engages in the delivery or furnishing of electric power
or | ||
energy to such retail customers, and shall include, without
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limitation, resellers, aggregators and power marketers, but
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shall not include (i) electric utilities (or any agent of the
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electric utility to the extent the electric utility provides
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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
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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
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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
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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.
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"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'
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charges, but including (vi) any subsequent redesign of such | ||
rates for
tariffed
services that is authorized by the | ||
Commission after notice and hearing.
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"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.
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"Contract service" means (1) services, including the
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provision of electric power and energy or other services, that
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are provided by mutual agreement between an electric utility
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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.
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"Delivery services" means those services provided by the
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electric utility that are necessary in order for the
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transmission and distribution systems to function so that
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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.
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"Electric utility" means a public utility, as defined in
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Section 3-105 of this Act, that has a franchise, license,
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permit or right to furnish or sell electricity to retail
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customers within a service area.
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"Mandatory transition period" means the period from the
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effective date of this amendatory Act of 1997 through January
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1, 2007.
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"Municipal system" shall have the meaning set forth in
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Section 17-100.
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"Real-time pricing" means tariffed retail charges for | ||
delivered electric
power and energy that vary on an
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hour-to-hour and are determined from wholesale market prices | ||
using a methodology approved by the Illinois Commerce | ||
Commission
basis for
nonresidential retail customers and that | ||
vary on a periodic
basis during the day for residential retail | ||
customers.
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"Retail customer" means a single entity using electric
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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.
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"Service area" means (i) the geographic area within which
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an electric utility was lawfully entitled to provide electric
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power and energy to retail customers as of the effective date
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of this amendatory Act of 1997, and includes (ii) the location
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of any retail customer to which the electric utility was
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lawfully providing electric utility services on such effective
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date.
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"Small commercial retail customer" means those
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nonresidential retail customers of an electric utility
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consuming 15,000 kilowatt-hours or less of electricity
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annually in its service area.
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"Tariffed service" means services provided to retail
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customers by an electric utility as defined by its rates on
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file with the Commission pursuant to the provisions of Article
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IX of this Act, but shall not include competitive services.
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"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:
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(1) the amount of revenue that an electric utility
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would receive from the retail customer or customers if it
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were serving such customers' electric power and energy
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requirements as a tariffed service based on (A) all of
the | ||
customers' actual usage during the 3 years
ending 90 days | ||
prior to the date on which such customers
were first | ||
eligible for delivery services pursuant to
Section 16-104, | ||
and (B) on (i) the base rates in effect
on October 1, 1996 | ||
(adjusted for the reductions required
by subsection (b) of | ||
Section 16-111, for any reduction resulting from a rate
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decrease under Section 16-101(b), for any restatement of | ||
base rates made in
conjunction with an elimination
of the | ||
fuel adjustment clause pursuant to subsection (b), (d), or | ||
(f) of
Section
9-220
and for any removal of decommissioning | ||
costs from base
rates pursuant to Section 16-114)
and any | ||
separate automatic rate adjustment riders (other
than a | ||
decommissioning rate as defined in Section 16-114)
under | ||
which the customers were receiving or, had they
been | ||
customers, would have received electric power and
energy | ||
from the electric utility during the year
immediately | ||
preceding the date on which such customers
were first | ||
eligible for delivery service pursuant to
Section 16-104, | ||
or (ii) to the extent applicable, any
contract rates, | ||
including contracts or rates for consolidated or
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aggregated billing, under which such customers were
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receiving electric power and energy from the electric
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utility during such year;
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(2) less the amount of revenue, other than revenue
from | ||
transition charges and decommissioning rates, that the | ||
electric utility
would
receive from such retail customers | ||
for delivery services
provided by the electric utility, | ||
assuming such customers
were taking delivery services for | ||
all of their usage,
based on the delivery services tariffs | ||
in effect during
the year for which the transition charge | ||
is being
calculated and on the usage identified in | ||
paragraph (1);
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(3) less the market value for the electric power
and | ||
energy that the electric utility would have used to
supply | ||
all of such customers' electric power and energy
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requirements, as a tariffed service, based on the usage
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identified in paragraph (1), with such market value
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determined in accordance with Section 16-112 of this Act;
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(4) less the following amount which represents the
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amount to be attributed to new revenue sources and cost
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reductions by the electric utility through the end of the
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period for which transition costs are recovered pursuant
to | ||
Section 16-108, referred to in this Article XVI as a | ||
"mitigation factor":
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(A) for nonresidential retail customers, an amount | ||
equal to the greater
of (i) 0.5 cents per kilowatt-hour | ||
during the period October 1, 1999
through December 31, | ||
2004, 0.6 cents per kilowatt-hour in calendar year | ||
2005,
and 0.9 cents per kilowatt-hour in calendar year | ||
2006, multiplied in
each year by the usage identified | ||
in paragraph (1), or (ii) an amount equal to
the | ||
following percentages of the amount produced by | ||
applying the applicable
base rates (adjusted as | ||
described in subparagraph (1)(B)) or contract rate to
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the usage identified in paragraph (1): 8% for the | ||
period October 1, 1999
through December 31, 2002, 10% | ||
in calendar years 2003 and 2004, 11% in calendar
year | ||
2005 and 12% in calendar year 2006;
and
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(B) for residential retail customers, an amount
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equal to the following percentages of the amount | ||
produced by applying the
base rates in effect on | ||
October 1, 1996 (adjusted as
described in subparagraph | ||
(1)(B)) to the usage
identified in paragraph (1): (i) | ||
6% from May 1, 2002 through December 31,
2002, (ii) 7% | ||
in calendar years 2003 and 2004, (iii) 8% in calendar | ||
year
2005, and (iv) 10% in calendar year 2006;
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(5) divided by the usage of such customers
identified | ||
in paragraph (1),
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provided that the transition charge shall never be less than
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zero.
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"Unbundled service" means a component or constituent part
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of a tariffed service which the electric utility subsequently
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offers separately to its customers.
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(Source: P.A. 91-50, eff. 6-30-99; 92-537, eff. 6-6-02.)
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(220 ILCS 5/16-107)
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Sec. 16-107. Real-time pricing.
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(a) Each electric utility shall file, on or before May 1,
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1998, a tariff or tariffs which allow nonresidential retail
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customers in the electric utility's service area to elect
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real-time pricing beginning October 1, 1998.
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(b) Each electric utility shall file, on or before May 1,
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2000, a tariff or tariffs which allow residential retail
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customers in the electric utility's service area to elect
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real-time pricing beginning October 1, 2000.
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(b-5) Each electric utility shall file a tariff or tariffs | ||
allowing residential retail customers in the electric | ||
utility's service area to elect real-time pricing beginning | ||
January 2, 2007. A customer who elects real-time pricing shall | ||
remain on such rate for a minimum of 12 months. The Commission | ||
may, after notice and hearing, approve the tariff or tariffs, | ||
provided that the Commission finds that the potential for | ||
demand reductions will result in net economic benefits to all | ||
residential customers of the electric utility. In examining | ||
economic benefits from demand reductions, the Commission | ||
shall, at a minimum, consider the following: improvements to | ||
system reliability and power quality, reduction in wholesale | ||
market prices and price volatility, electric utility cost | ||
avoidance and reductions, market power mitigation, and other | ||
benefits of demand reductions, but only to the extent that the | ||
effects of reduced demand can be demonstrated to lower the cost | ||
of electricity delivered to residential customers. A tariff or | ||
tariffs approved pursuant to this subsection (b-5) shall, at a | ||
minimum, describe (i) the methodology for determining the | ||
market price of energy to be reflected in the real-time rate | ||
and (ii) the manner in which customers who elect real-time | ||
pricing will be provided with ready access to hourly market | ||
prices, including, but not limited to, day-ahead hourly energy | ||
prices. | ||
A proceeding under this subsection (b-5) may not exceed 120 | ||
days in length.
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(b-10) Each electric utility providing real-time pricing | ||
pursuant to subsection (b-5) shall install a meter capable of | ||
recording hourly interval energy use at the service location of | ||
each customer that elects real-time pricing pursuant to this | ||
subsection. | ||
(b-15) If the Commission issues an order pursuant to | ||
subsection (b-5), the affected electric utility shall contract | ||
with an entity not affiliated with the electric utility to | ||
serve as a program administrator to develop and implement a | ||
program to provide consumer outreach, enrollment, and | ||
education concerning real-time pricing and to establish and | ||
administer an information system and technical and other | ||
customer assistance that is necessary to enable customers to | ||
manage electricity use. The program administrator: (i) shall be | ||
selected and compensated by the electric utility, subject to | ||
Commission approval; (ii) shall have demonstrated technical | ||
and managerial competence in the development and | ||
administration of demand management programs; and (iii) may | ||
develop and implement risk management, energy efficiency, and | ||
other services related to energy use management for which the | ||
program administrator shall be compensated by participants in | ||
the program receiving such services. The electric utility shall | ||
provide the program administrator with all information and | ||
assistance necessary to perform the program administrator's | ||
duties, including, but not limited to, customer, account, and | ||
energy use data. The electric utility shall permit the program | ||
administrator to include inserts in residential customer bills | ||
2 times per year to assist with customer outreach and | ||
enrollment. | ||
The program administrator shall submit an annual report to | ||
the electric utility no later than April 1 of each year | ||
describing the operation and results of the program, including | ||
information concerning the number and types of customers using | ||
real-time pricing, changes in customers' energy use patterns, | ||
an assessment of the value of the program to both participants | ||
and non-participants, and recommendations concerning | ||
modification of the program and the tariff or tariffs filed | ||
under subsection (b-5). This report shall be filed by the | ||
electric utility with the Commission within 30 days of receipt | ||
and shall be available to the public on the Commission's web | ||
site. | ||
(b-20) The Commission shall monitor the performance of | ||
programs established pursuant to subsection (b-15) and shall | ||
order the termination or modification of a program if it | ||
determines that the program is not, after a reasonable period | ||
of time for development not to exceed 4 years, resulting in net | ||
benefits to the residential customers of the electric utility.
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(b-25) An electric utility shall be entitled to recover | ||
reasonable costs incurred in complying with this Section, | ||
provided that recovery of the costs is fairly apportioned among | ||
its residential customers as provided in this subsection | ||
(b-25). The electric utility may apportion greater costs on the | ||
residential customers who elect real-time pricing, but may also | ||
impose some of the costs of real-time pricing on customers who | ||
do not elect real-time pricing, provided that the Commission | ||
determines that the cost savings resulting from real-time | ||
pricing will exceed the costs imposed on customers for | ||
maintaining the program.
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(c) The electric utility's tariff or tariffs filed
pursuant | ||
to this Section shall be subject to Article IX.
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(d) This Section does not apply to any electric utility | ||
providing service to 100,000 or fewer customers.
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(Source: P.A. 90-561, eff. 12-16-97.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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