[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
91_HB3027ham002
LRB9109967JSpcam03
1 AMENDMENT TO HOUSE BILL 3027
2 AMENDMENT NO. . Amend House Bill 3027, AS AMENDED,
3 in the title and in the introductory clause to Section 5 of
4 the bill by changing "Section 16-109" each time it appears to
5 "Sections 16-108 and 16-109"; and
6 by inserting immediately below the introductory clause to
7 Section 5 of the bill the following:
8 "(220 ILCS 5/16-108)
9 Sec. 16-108. Recovery of costs associated with the
10 provision of delivery services.
11 (a) An electric utility shall file a delivery services
12 tariff with the Commission at least 210 days prior to the
13 date that it is required to begin offering such services
14 pursuant to this Act. An electric utility shall provide the
15 components of delivery services that are subject to the
16 jurisdiction of the Federal Energy Regulatory Commission at
17 the same prices, terms and conditions set forth in its
18 applicable tariff as approved or allowed into effect by that
19 Commission. The Commission shall otherwise have the authority
20 pursuant to Article IX to review, approve, and modify the
21 prices, terms and conditions of those components of delivery
22 services not subject to the jurisdiction of the Federal
-2- LRB9109967JSpcam03
1 Energy Regulatory Commission, including the authority to
2 determine the extent to which such delivery services should
3 be offered on an unbundled basis. In making any such
4 determination the Commission shall consider, at a minimum,
5 the effect of additional unbundling on (i) the objective of
6 just and reasonable rates, (ii) electric utility employees,
7 and (iii) the development of competitive markets for electric
8 energy services in Illinois. The Commission, however, may not
9 issue a final order regarding the offering of delivery
10 services on an unbundled basis before January 1, 2003.
11 (b) The Commission shall enter an order approving, or
12 approving as modified, the delivery services tariff no later
13 than 30 days prior to the date on which the electric utility
14 must commence offering such services. The Commission may
15 subsequently modify such tariff pursuant to this Act.
16 (c) The electric utility's tariffs shall define the
17 classes of its customers for purposes of delivery services
18 charges. Delivery services shall be priced and made
19 available to all retail customers electing delivery services
20 in each such class on a nondiscriminatory basis regardless of
21 whether the retail customer chooses the electric utility, an
22 affiliate of the electric utility, or another entity as its
23 supplier of electric power and energy. Charges for delivery
24 services shall be cost based, and shall allow the electric
25 utility to recover the costs of providing delivery services
26 through its charges to its delivery service customers that
27 use the facilities and services associated with such costs.
28 Such costs shall include the costs of owning, operating and
29 maintaining transmission and distribution facilities. The
30 Commission shall also be authorized to consider whether, and
31 if so to what extent, the following costs are appropriately
32 included in the electric utility's delivery services rates:
33 (i) the costs of that portion of generation facilities used
34 for the production and absorption of reactive power in order
-3- LRB9109967JSpcam03
1 that retail customers located in the electric utility's
2 service area can receive electric power and energy from
3 suppliers other than the electric utility, and (ii) the costs
4 associated with the use and redispatch of generation
5 facilities to mitigate constraints on the transmission or
6 distribution system in order that retail customers located in
7 the electric utility's service area can receive electric
8 power and energy from suppliers other than the electric
9 utility. Nothing in this subsection shall be construed as
10 directing the Commission to allocate any of the costs
11 described in (i) or (ii) that are found to be appropriately
12 included in the electric utility's delivery services rates to
13 any particular customer group or geographic area in setting
14 delivery services rates.
15 (d) The Commission shall establish charges, terms and
16 conditions for delivery services that are just and reasonable
17 and shall take into account customer impacts when
18 establishing such charges. In establishing charges, terms and
19 conditions for delivery services, the Commission shall take
20 into account voltage level differences. A retail customer
21 shall have the option to request to purchase electric service
22 at any delivery service voltage reasonably and technically
23 feasible from the electric facilities serving that customer's
24 premises provided that there are no significant adverse
25 impacts upon system reliability or system efficiency. A
26 retail customer shall also have the option to request to
27 purchase electric service at any point of delivery that is
28 reasonably and technically feasible provided that there are
29 no significant adverse impacts on system reliability or
30 efficiency. Such requests shall not be unreasonably denied.
31 (e) Electric utilities shall recover the costs of
32 installing, operating or maintaining facilities for the
33 particular benefit of one or more delivery services
34 customers, including without limitation any costs incurred in
-4- LRB9109967JSpcam03
1 complying with a customer's request to be served at a
2 different voltage level, directly from the retail customer or
3 customers for whose benefit the costs were incurred, to the
4 extent such costs are not recovered through the charges
5 referred to in subsections (c) and (d) of this Section.
6 (f) An electric utility shall be entitled but not
7 required to implement transition charges in conjunction with
8 the offering of delivery services pursuant to Section 16-104.
9 If an electric utility implements transition charges, it
10 shall implement such charges for all delivery services
11 customers and for all customers described in subsection (h),
12 but shall not implement transition charges for power and
13 energy that a retail customer takes from cogeneration or
14 self-generation facilities located on that retail customer's
15 premises, if such facilities meet the following criteria:
16 (i) the cogeneration or self-generation facilities
17 serve a single retail customer and are located on that
18 retail customer's premises (for purposes of this
19 subparagraph and subparagraph (ii), an industrial or
20 manufacturing retail customer and a third party
21 contractor that is served by such industrial or
22 manufacturing customer through such retail customer's own
23 electrical distribution facilities under the
24 circumstances described in subsection (vi) of the
25 definition of "alternative retail electric supplier" set
26 forth in Section 16-102, shall be considered a single
27 retail customer);
28 (ii) the cogeneration or self-generation facilities
29 either (A) are sized pursuant to generally accepted
30 engineering standards for the retail customer's
31 electrical load at that premises (taking into account
32 standby or other reliability considerations related to
33 that retail customer's operations at that site) or (B) if
34 the facility is a cogeneration facility located on the
-5- LRB9109967JSpcam03
1 retail customer's premises, the retail customer is the
2 thermal host for that facility and the facility has been
3 designed to meet that retail customer's thermal energy
4 requirements resulting in electrical output beyond that
5 retail customer's electrical demand at that premises,
6 comply with the operating and efficiency standards
7 applicable to "qualifying facilities" specified in title
8 18 Code of Federal Regulations Section 292.205 as in
9 effect on the effective date of this amendatory Act of
10 1999;
11 (iii) the retail customer on whose premises the
12 facilities are located either has an exclusive right to
13 receive, and corresponding obligation to pay for, all of
14 the electrical capacity of the facility, or in the case
15 of a cogeneration facility that has been designed to meet
16 the retail customer's thermal energy requirements at that
17 premises, an identified amount of the electrical capacity
18 of the facility, over a minimum 5-year period; and
19 (iv) if the cogeneration facility is sized for the
20 retail customer's thermal load at that premises but
21 exceeds the electrical load, any sales of excess power or
22 energy are made only at wholesale, are subject to the
23 jurisdiction of the Federal Energy Regulatory Commission,
24 and are not for the purpose of circumventing the
25 provisions of this subsection (f).
26 If a generation facility located at a retail customer's
27 premises does not meet the above criteria, an electric
28 utility implementing transition charges shall implement a
29 transition charge until December 31, 2006 for any power and
30 energy taken by such retail customer from such facility as if
31 such power and energy had been delivered by the electric
32 utility. Provided, however, that an industrial retail
33 customer that is taking power from a generation facility that
34 does not meet the above criteria but that is located on such
-6- LRB9109967JSpcam03
1 customer's premises will not be subject to a transition
2 charge for the power and energy taken by such retail customer
3 from such generation facility if the facility does not serve
4 any other retail customer and either was installed on behalf
5 of the customer and for its own use prior to January 1, 1997,
6 or is both predominantly fueled by byproducts of such
7 customer's manufacturing process at such premises and sells
8 or offers an average of 300 megawatts or more of electricity
9 produced from such generation facility into the wholesale
10 market. Such charges shall be calculated as provided in
11 Section 16-102, and shall be collected on each kilowatt-hour
12 delivered under a delivery services tariff to a retail
13 customer from the date the customer first takes delivery
14 services until December 31, 2006 except as provided in
15 subsection (h) of this Section. Provided, however, that an
16 electric utility, other than an electric utility providing
17 service to at least 1,000,000 customers in this State on
18 January 1, 1999, shall be entitled to petition for entry of
19 an order by the Commission authorizing the electric utility
20 to implement transition charges for an additional period
21 ending no later than December 31, 2008. The electric utility
22 shall file its petition with supporting evidence no earlier
23 than 16 months, and no later than 12 months, prior to
24 December 31, 2006. The Commission shall hold a hearing on
25 the electric utility's petition and shall enter its order no
26 later than 8 months after the petition is filed. The
27 Commission shall determine whether and to what extent the
28 electric utility shall be authorized to implement transition
29 charges for an additional period. The Commission may
30 authorize the electric utility to implement transition
31 charges for some or all of the additional period, and shall
32 determine the mitigation factors to be used in implementing
33 such transition charges; provided, that the Commission shall
34 not authorize mitigation factors less than 110% of those in
-7- LRB9109967JSpcam03
1 effect during the 12 months ended December 31, 2006. In
2 making its determination, the Commission shall consider the
3 following factors: the necessity to implement transition
4 charges for an additional period in order to maintain the
5 financial integrity of the electric utility; the prudence of
6 the electric utility's actions in reducing its costs since
7 the effective date of this amendatory Act of 1997; the
8 ability of the electric utility to provide safe, adequate and
9 reliable service to retail customers in its service area; and
10 the impact on competition of allowing the electric utility to
11 implement transition charges for the additional period.
12 (g) The electric utility shall file tariffs that
13 establish the transition charges to be paid by each class of
14 customers to the electric utility in conjunction with the
15 provision of delivery services. The electric utility's
16 tariffs shall define the classes of its customers for
17 purposes of calculating transition charges. The electric
18 utility's tariffs shall provide for the calculation of
19 transition charges on a customer-specific basis for any
20 retail customer whose average monthly maximum electrical
21 demand on the electric utility's system during the 6 months
22 with the customer's highest monthly maximum electrical
23 demands equals or exceeds 3.0 megawatts for electric
24 utilities having more than 1,000,000 customers, and for other
25 electric utilities for any customer that has an average
26 monthly maximum electrical demand on the electric utility's
27 system of one megawatt or more, and (A) for which there
28 exists data on the customer's usage during the 3 years
29 preceding the date that the customer became eligible to take
30 delivery services, or (B) for which there does not exist data
31 on the customer's usage during the 3 years preceding the date
32 that the customer became eligible to take delivery services,
33 if in the electric utility's reasonable judgment there exists
34 comparable usage information or a sufficient basis to develop
-8- LRB9109967JSpcam03
1 such information, and further provided that the electric
2 utility can require customers for which an individual
3 calculation is made to sign contracts that set forth the
4 transition charges to be paid by the customer to the electric
5 utility pursuant to the tariff.
6 (h) An electric utility shall also be entitled to file
7 tariffs that allow it to collect transition charges from
8 retail customers in the electric utility's service area that
9 do not take delivery services but that take electric power or
10 energy from an alternative retail electric supplier or from
11 an electric utility other than the electric utility in whose
12 service area the customer is located. Such charges shall be
13 calculated, in accordance with the definition of transition
14 charges in Section 16-102, for the period of time that the
15 customer would be obligated to pay transition charges if it
16 were taking delivery services, except that no deduction for
17 delivery services revenues shall be made in such calculation,
18 and usage data from the customer's class shall be used where
19 historical usage data is not available for the individual
20 customer. The customer shall be obligated to pay such
21 charges on a lump sum basis on or before the date on which
22 the customer commences to take service from the alternative
23 retail electric supplier or other electric utility, provided,
24 that the electric utility in whose service area the customer
25 is located shall offer the customer the option of signing a
26 contract pursuant to which the customer pays such charges
27 ratably over the period in which the charges would otherwise
28 have applied.
29 (i) An electric utility shall be entitled to add to the
30 bills of delivery services customers charges pursuant to
31 Sections 9-221, 9-222 (except as provided in Section
32 9-222.1), and Section 16-114 of this Act, Section 5-5 of the
33 Electricity Infrastructure Maintenance Fee Law, Section 6-5
34 of the Renewable Energy, Energy Efficiency, and Coal
-9- LRB9109967JSpcam03
1 Resources Development Law of 1997, and Section 13 of the
2 Energy Assistance Act of 1989.
3 (j) If a retail customer that obtains electric power and
4 energy from cogeneration or self-generation facilities
5 installed for its own use on or before January 1, 1997,
6 subsequently takes service from an alternative retail
7 electric supplier or an electric utility other than the
8 electric utility in whose service area the customer is
9 located for any portion of the customer's electric power and
10 energy requirements formerly obtained from those facilities
11 (including that amount purchased from the utility in lieu of
12 such generation and not as standby power purchases, under a
13 cogeneration displacement tariff in effect as of the
14 effective date of this amendatory Act of 1997), the
15 transition charges otherwise applicable pursuant to
16 subsections (f), (g), or (h) of this Section shall not be
17 applicable in any year to that portion of the customer's
18 electric power and energy requirements formerly obtained from
19 those facilities, provided, that for purposes of this
20 subsection (j), such portion shall not exceed the average
21 number of kilowatt-hours per year obtained from the
22 cogeneration or self-generation facilities during the 3 years
23 prior to the date on which the customer became eligible for
24 delivery services, except as provided in subsection (f) of
25 Section 16-110.
26 (Source: P.A. 90-561, eff. 12-16-97; 91-50, eff. 6-30-99.)".