State of Illinois
91st General Assembly
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91_SB0023sam001

 










                                             LRB9100408JSpcam

 1                     AMENDMENT TO SENATE BILL 23

 2        AMENDMENT NO.     .  Amend Senate Bill  23  by  replacing
 3    the title with the following:

 4        "AN  ACT  to  amend  the Public Utilities Act by changing
 5    Section 16-102."; and

 6    by replacing everything after the enacting  clause  with  the
 7    following:

 8        "Section  5.   The  Public  Utilities  Act  is amended by
 9    changing Section 16-102 as follows:

10        (220 ILCS 5/16-102)
11        Sec. 16-102.  Definitions.   For  the  purposes  of  this
12    Article  the  following  terms  shall  have  the  meanings be
13    defined as set forth in this Section.
14        "Alternative  retail  electric  supplier"   means   every
15    person,   cooperative,  corporation,  municipal  corporation,
16    company, association, joint  stock  company  or  association,
17    firm,   partnership,   individual,  or  other  entity,  their
18    lessees,  trustees,  or  receivers  appointed  by  any  court
19    whatsoever, that offers electric power or  energy  for  sale,
20    lease  or in exchange for other value received to one or more
 
                            -2-              LRB9100408JSpcam
 1    retail  customers,  or  that  engages  in  the  delivery   or
 2    furnishing  of  electric  power  or  energy  to  such  retail
 3    customers,  and shall include, without limitation, resellers,
 4    aggregators and power marketers, but shall  not  include  (i)
 5    electric  utilities  (or any agent of the electric utility to
 6    the extent the electric utility provides tariffed services to
 7    retail customers  through  that  agent),  (ii)  any  electric
 8    cooperative  or municipal system as defined in Section 17-100
 9    to the extent that  the  electric  cooperative  or  municipal
10    system  is  serving retail customers within any area in which
11    it is or would be entitled to provide service under  the  law
12    in  effect  immediately  prior  to the effective date of this
13    amendatory Act of 1997, (iii) a public utility that is  owned
14    and operated by any public institution of higher education of
15    this  State, or a public utility that is owned by such public
16    institution of higher education and operated by  any  of  its
17    lessees  or  operating agents, within any area in which it is
18    or would be entitled to provide  service  under  the  law  in
19    effect  immediately  prior  to  the  effective  date  of this
20    amendatory Act of 1997,  (iv)  any  retail  customer  to  the
21    extent  that  customer  obtains its electric power and energy
22    from its own cogeneration or self-generation facilities,  (v)
23    any  entity  that  sells  or arranges for the installation of
24    cogeneration or self-generation facilities to be owned  by  a
25    retail  customer  described in subparagraph (iv), but only to
26    the extent the entity is engaged in selling or arranging  for
27    such  installation,  or  (vi)  an industrial or manufacturing
28    customer that owns its own distribution  facilities,  to  the
29    extent   that   the   customer  provides  service  from  that
30    distribution system to a third-party  contractor  located  on
31    the  customer's premises that is integrally and predominantly
32    engaged  in  the  customer's  industrial   or   manufacturing
33    process;  provided,  that  if the industrial or manufacturing
34    customer has elected delivery services,  the  customer  shall
 
                            -3-              LRB9100408JSpcam
 1    pay  transition  charges applicable to the electric power and
 2    energy consumed by the  third-party  contractor  unless  such
 3    charges  are  otherwise  paid  by the third party contractor,
 4    which shall be calculated based on the usage of, and the base
 5    rates or the contract rates applicable  to,  the  third-party
 6    contractor in accordance with Section 16-102.
 7        "Base  rates" means the rates for those tariffed services
 8    that the electric utility is required to  offer  pursuant  to
 9    subsection  (a) of Section 16-103 and that were identified in
10    a rate order for collection of the  electric  utility's  base
11    rate  revenue  requirement,  excluding (i) separate automatic
12    rate adjustment  riders  then  in  effect,  (ii)  special  or
13    negotiated  contract  rates,  (iii) delivery services tariffs
14    filed pursuant to Section 16-108, (iv) real-time pricing,  or
15    (v)  tariffs that were in effect prior to October 1, 1996 and
16    that based charges for services on an  index  or  average  of
17    other  utilities'  charges, but including (vi) any subsequent
18    redesign  of  such  rates  for  tariffed  services  that   is
19    authorized by the Commission after notice and hearing.
20        "Competitive  service"  includes (i) any service that has
21    been declared to be competitive pursuant to Section 16-113 of
22    this Act, (ii) contract service, and  (iii)  services,  other
23    than   tariffed  services,  that  are  related  to,  but  not
24    necessary for, the provision of electric power and energy  or
25    delivery services.
26        "Contract  service"  means  (1)  services,  including the
27    provision of electric power and  energy  or  other  services,
28    that  are  provided  by  mutual agreement between an electric
29    utility and a retail customer that is located in the electric
30    utility's service  area,  provided  that,  delivery  services
31    shall  not  be  a  contract  service  until such services are
32    declared competitive pursuant to  Section  16-113;  and  also
33    means  (2)  the  provision of electric power and energy by an
34    electric utility to retail  customers  outside  the  electric
 
                            -4-              LRB9100408JSpcam
 1    utility's service area pursuant to Section 16-116.  Provided,
 2    however,  contract  service does not include electric utility
 3    services provided  pursuant  to  (i)  contracts  that  retail
 4    customers are required to execute as a condition of receiving
 5    tariffed   services,  or  (ii)  special  or  negotiated  rate
 6    contracts for electric utility  services  that  were  entered
 7    into  between an electric utility and a retail customer prior
 8    to the effective date of this  amendatory  Act  of  1997  and
 9    filed with the Commission.
10        "Delivery  services" means those services provided by the
11    electric  utility  that  are  necessary  in  order  for   the
12    transmission  and  distribution  systems  to function so that
13    retail customers located in the  electric  utility's  service
14    area  can  receive  electric  power and energy from suppliers
15    other than the electric utility, and shall  include,  without
16    limitation, standard metering and billing services.
17        "Electric  utility" means a public utility, as defined in
18    Section 3-105 of this Act, that  has  a  franchise,  license,
19    permit  or  right  to  furnish  or sell electricity to retail
20    customers within a service area.
21        "Mandatory transition period" means the period  from  the
22    effective date of this amendatory Act of 1997 through January
23    1, 2005.
24        "Municipal  system"  shall  have the meaning set forth in
25    Section 17-100.
26        "Real-time pricing" means charges for delivered  electric
27    power  and  energy  that  vary  on  an hour-to-hour basis for
28    nonresidential retail customers and that vary on  a  periodic
29    basis during the day for residential retail customers.
30        "Retail  customer"  means  a single entity using electric
31    power or energy at a single premises and that (A) either  (i)
32    is receiving or is eligible to receive tariffed services from
33    an  electric  utility,  or (ii) that is served by a municipal
34    system or electric cooperative within any area in  which  the
 
                            -5-              LRB9100408JSpcam
 1    municipal  system  or  electric  cooperative  is  or would be
 2    entitled  to  provide  service  under  the  law   in   effect
 3    immediately  prior  to  the effective date of this amendatory
 4    Act of 1997, or (B) an entity which on the effective date  of
 5    this Act was receiving electric service from a public utility
 6    and   (i)   was  engaged  in  the   practice  of  resale  and
 7    redistribution of such electricity within a building prior to
 8    January 2, 1957, or (ii) was providing lighting  services  to
 9    tenants in a multi-occupancy building, but only to the extent
10    such resale, redistribution or lighting service is authorized
11    by  the electric utility's tariffs that were on file with the
12    Commission on the effective date of this Act.
13        "Service area" means (i) the geographic area within which
14    an electric utility was lawfully entitled to provide electric
15    power and energy to retail customers as of the effective date
16    of this  amendatory  Act  of  1997,  and  includes  (ii)  the
17    location of any retail customer to which the electric utility
18    was  lawfully  providing  electric  utility  services on such
19    effective date.
20        "Small   commercial   retail   customer"   means    those
21    nonresidential   retail  customers  of  an  electric  utility
22    consuming  15,000  kilowatt-hours  or  less  of   electricity
23    annually in its service area.
24        "Tariffed  service"  means  services  provided  to retail
25    customers by an electric utility as defined by its  rates  on
26    file  with  the  Commission  pursuant  to  the  provisions of
27    Article IX of this Act, but  shall  not  include  competitive
28    services.
29        "Transition charge" means a charge expressed in cents per
30    kilowatt-hour  that  is calculated for a customer or class of
31    customers as follows for  each  year  in  which  an  electric
32    utility is entitled to recover transition charges as provided
33    in Section 16-108:
34             (1)  the  amount of revenue that an electric utility
 
                            -6-              LRB9100408JSpcam
 1        would receive from the retail customer or customers if it
 2        were serving such customers' electric  power  and  energy
 3        requirements  as  a  tariffed service based on (A) all of
 4        the customers' actual usage during the 3 years ending  90
 5        days prior to the date on which such customers were first
 6        eligible   for  delivery  services  pursuant  to  Section
 7        16-104, and (B) on  (i)  the  base  rates  in  effect  on
 8        October  1, 1996 (adjusted for the reductions required by
 9        subsection (b)  of  Section  16-111,  for  any  reduction
10        resulting  from  a rate decrease under Section 16-101(b),
11        for any restatement of base  rates  made  in  conjunction
12        with   an  elimination  of  the  fuel  adjustment  clause
13        pursuant to subsection (b), (d), or (f) of Section  9-220
14        and  for  any  removal of decommissioning costs from base
15        rates  pursuant  to  Section  16-114)  and  any  separate
16        automatic  rate   adjustment   riders   (other   than   a
17        decommissioning  rate as defined in Section 16-114) under
18        which the customers were  receiving  or,  had  they  been
19        customers,  would have received electric power and energy
20        from the electric utility  during  the  year  immediately
21        preceding  the  date  on  which such customers were first
22        eligible for delivery service pursuant to Section 16-104,
23        or (ii) to the extent  applicable,  any  contract  rates,
24        including   contracts   or   rates  for  consolidated  or
25        aggregated  billing,  under  which  such  customers  were
26        receiving electric power and  energy  from  the  electric
27        utility during such year;
28             (2)  less  the amount of revenue, other than revenue
29        from transition charges and decommissioning  rates,  that
30        the  electric  utility  would  receive  from  such retail
31        customers for delivery services provided by the  electric
32        utility,  assuming  such  customers  were taking delivery
33        services for all of their usage, based  on  the  delivery
34        services  tariffs in effect during the year for which the
 
                            -7-              LRB9100408JSpcam
 1        transition charge is being calculated and  on  the  usage
 2        identified in paragraph (1);
 3             (3)  less  the  market  value for the electric power
 4        and energy that the electric utility would have  used  to
 5        supply  all  of such customers' electric power and energy
 6        requirements, as a tariffed service, based on  the  usage
 7        identified  in  paragraph  (1),  with  such  market value
 8        determined in accordance with Section 16-112 of this Act;
 9             (4)  less the following amount which represents  the
10        amount  to  be attributed to new revenue sources and cost
11        reductions by the electric utility through the end of the
12        period for which transition costs are recovered  pursuant
13        to  Section  16-108, referred to in this Article XVI as a
14        "mitigation factor":
15                  (A)  for nonresidential  retail  customers,  an
16             amount  equal  to  the  greater of (i) 0.5 cents per
17             kilowatt-hour during  the  period  October  1,  1999
18             through   December   31,   2004,   0.6   cents   per
19             kilowatt-hour  in  calendar year 2005, and 0.9 cents
20             per kilowatt-hour in calendar year 2006,  multiplied
21             in  each  year  by the usage identified in paragraph
22             (1), or  (ii)  an  amount  equal  to  the  following
23             percentages  of  the amount produced by applying the
24             applicable base  rates  (adjusted  as  described  in
25             subparagraph  (1)(B))  or contract rate to the usage
26             identified in  paragraph  (1):  8%  for  the  period
27             October  1,  1999  through December 31, 2002, 10% in
28             calendar years 2003 and 2004, 11% in  calendar  year
29             2005 and 12% in calendar year 2006; and
30                  (B)  for   residential   retail  customers,  an
31             amount equal to the  following  percentages  of  the
32             amount produced by applying the base rates in effect
33             on   October  1,  1996  (adjusted  as  described  in
34             subparagraph (1)(B))  to  the  usage  identified  in
 
                            -8-              LRB9100408JSpcam
 1             paragraph  (1):  (i)  6%  from  May  1, 2002 through
 2             December 31, 2002, (ii) 7% in  calendar  years  2003
 3             and  2004,  (iii) 8% in calendar year 2005, and (iv)
 4             10% in calendar year 2006;
 5             (5)  divided  by  the  usage   of   such   customers
 6        identified in paragraph (1),
 7    provided  that the transition charge shall never be less than
 8    zero.
 9        "Unbundled service" means a component or constituent part
10    of a tariffed service which the electric utility subsequently
11    offers separately to its customers.
12    (Source: P.A. 90-561, eff. 12-16-97.)".

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