SB2571 93RD GENERAL ASSEMBLY

LRB093 20806 AMC 46728 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB2571

Introduced 2/4/2004, by Patrick Welch

SYNOPSIS AS INTRODUCED:

220 ILCS 5/Art. XX heading new
220 ILCS 5/20-101 new
220 ILCS 5/20-102 new
220 ILCS 5/20-103 new
220 ILCS 5/20-104 new
220 ILCS 5/20-105 new
30 ILCS 805/8.28 new

Amends the Public Utilities Act. Adds an Article concerning interconnection of on-site distributed generation. Requires the Illinois Commerce Commission to initiate a proceeding to establish, by order, generic standards for utility tariffs for the interconnection and parallel operation of distributed generation fueled by natural gas or a renewable fuel, or another similarly clean fuel or combination of fuels of no more than 10 megawatts of interconnected capacity. Requires each public utility providing electric service at retail to file a distributed generation tariff for Commission approval or approval with modification and each municipal utility and cooperative electric association to adopt a distributed generation tariff. Provides that every electric utility shall file with the Commission a distributed generation interconnection report for the preceding calendar year that identifies each distributed generation facility interconnected with the utility's distribution system. Amends the State Mandates Act to require implementation without reimbursement.

FISCAL NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning public utilities.

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

Section 5. The Public Utilities Act is amended by adding Article XX as follows:

(220 ILCS 5/Art. XX heading new)

ARTICLE XX. INTERCONNECTION OF ON-SITE

DISTRIBUTED GENERATION

(220 ILCS 5/20-101 new)

Sec. 20-101. Short title. This Article may be cited as the Interconnection Law.

(220 ILCS 5/20-102 new)

Sec. 20-102. Purpose. The purpose of this Article is to:

(1) establish the terms and conditions that govern the interconnection and parallel operation of on-site distributed generation;

(2) provide cost savings and reliability benefits to customers;

(3) establish technical requirements that will promote the safe and reliable parallel operation of on-site distributed generation resources;

(4) enhance both the reliability of electric service and economic efficiency in the production and consumption of electricity; and

(5) promote the use of distributed resources in order to provide electric system benefits during periods of capacity constraints.

(220 ILCS 5/20-103 new)

Sec. 20-103. Distributed generation; generic proceeding.

(a) The Commission shall initiate a proceeding within 30 days of the effective date of this Article, to establish, by order, generic standards for utility tariffs for the interconnection and parallel operation of distributed generation fueled by natural gas or a renewable fuel, or another similarly clean fuel or combination of fuels of no more than 10 megawatts of interconnected capacity. At a minimum, these tariff standards must:

(1) to the extent possible, be consistent with industry and other federal and State operational and safety standards;

(2) provide for the low-cost, safe, and standardized interconnection of facilities;

(3) take into account differing system requirements and hardware, as well as the overall demand load requirements of individual utilities;

(4) allow for reasonable terms and conditions, consistent with the cost and operating characteristics of the various technologies, so that a utility can reasonably be assured of the reliable, safe, and efficient operation of the interconnected equipment; and

(5) establish (i) a standard interconnection agreement that sets forth the contractual conditions under which a company and a customer agree that one or more facilities may be interconnected with the company's utility system, and (ii) a standard application for interconnection and parallel operation with the utility system.

(b) The Commission may develop financial incentives based on a public utility's performance in encouraging residential and small business customers to participate in on-site generation.

(220 ILCS 5/20-104 new)

Sec. 20-104. Distributed generation tariff. Within 90 days of the issuance of an order under Section 20-103:

(1) each public utility providing electric service at retail shall file a distributed generation tariff consistent with that order, for Commission approval or approval with modification; and

(2) each municipal utility and cooperative electric association shall adopt a distributed generation tariff that addresses the issues included in the Commission's order.

(220 ILCS 5/20-105 new)

Sec. 20-105. Reporting requirements.

(a) Each electric utility shall maintain records concerning applications received for interconnection and parallel operation of distributed generation. The records must include the date each application is received, documents generated in the course of processing each application, correspondence regarding each application, and the final disposition of each application.

(b) Every electric utility shall file with the Commission a distributed generation interconnection report for the preceding calendar year that identifies each distributed generation facility interconnected with the utility's distribution system. The report must list the new distributed generation facilities interconnected with the system since the previous year's report, any distributed generation facilities no longer interconnected with the utility's system since the previous report, the capacity of each facility, and the feeder or other point on the company's utility system where the facility is connected. The annual report must also identify all applications for interconnection received during the previous one-year period and the disposition of the applications.

Section 90. The State Mandates Act is amended by adding Section 8.28 as follows:

(30 ILCS 805/8.28 new)

Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 93rd General Assembly.