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| [ Conference Committee Report 001 ] |
91_SB0024
LRB9100188JSgc
1 AN ACT to encourage the development of cogeneration and
2 self-generation of electricity.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Public Utilities Act is amended by
6 changing Sections 16-102 and 16-115 as follows:
7 (220 ILCS 5/16-102)
8 Sec. 16-102. Definitions. As used in For the purposes
9 of this Article the following terms shall be defined as set
10 forth in this Section.
11 "Alternative retail electric supplier" means every
12 person, cooperative, corporation, municipal corporation,
13 company, association, joint stock company or association,
14 firm, partnership, individual, or other entity, their
15 lessees, trustees, or receivers appointed by any court
16 whatsoever, that offers electric power or energy for sale,
17 lease or in exchange for other value received to one or more
18 retail customers, or that engages in the delivery or
19 furnishing of electric power or energy to such retail
20 customers, and shall include, without limitation, resellers,
21 aggregators and power marketers, but shall not include (i)
22 electric utilities (or any agent of the electric utility to
23 the extent the electric utility provides tariffed services to
24 retail customers through that agent), (ii) any electric
25 cooperative or municipal system as defined in Section 17-100
26 to the extent that the electric cooperative or municipal
27 system is serving retail customers within any area in which
28 it is or would be entitled to provide service under the law
29 in effect immediately prior to the effective date of this
30 amendatory Act of 1997, (iii) a public utility that is owned
31 and operated by any public institution of higher education of
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1 this State, or a public utility that is owned by such public
2 institution of higher education and operated by any of its
3 lessees or operating agents, within any area in which it is
4 or would be entitled to provide service under the law in
5 effect immediately prior to the effective date of this
6 amendatory Act of 1997, (iv) any retail customer to the
7 extent that customer obtains its electric power and energy
8 from its own cogeneration or self-generation facilities, (v)
9 any entity that sells or arranges for the installation of
10 cogeneration or self-generation facilities to be owned by a
11 retail customer described in subparagraph (iv), but only to
12 the extent the entity is engaged in selling or arranging for
13 such installation, or (vi) an industrial or manufacturing
14 customer that owns its own distribution facilities, to the
15 extent that the customer provides service from that
16 distribution system to a third-party contractor located on
17 the customer's premises that is integrally and predominantly
18 engaged in the customer's industrial or manufacturing
19 process; provided, that if the industrial or manufacturing
20 customer has elected delivery services, the customer shall
21 pay transition charges applicable to the electric power and
22 energy consumed by the third-party contractor unless such
23 charges are otherwise paid by the third party contractor,
24 which shall be calculated based on the usage of, and the base
25 rates or the contract rates applicable to, the third-party
26 contractor in accordance with Section 16-102.
27 "Base rates" means the rates for those tariffed services
28 that the electric utility is required to offer pursuant to
29 subsection (a) of Section 16-103 and that were identified in
30 a rate order for collection of the electric utility's base
31 rate revenue requirement, excluding (i) separate automatic
32 rate adjustment riders then in effect, (ii) special or
33 negotiated contract rates, (iii) delivery services tariffs
34 filed pursuant to Section 16-108, (iv) real-time pricing, or
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1 (v) tariffs that were in effect prior to October 1, 1996 and
2 that based charges for services on an index or average of
3 other utilities' charges, but including (vi) any subsequent
4 redesign of such rates for tariffed services that is
5 authorized by the Commission after notice and hearing.
6 "Competitive service" includes (i) any service that has
7 been declared to be competitive pursuant to Section 16-113 of
8 this Act, (ii) contract service, and (iii) services, other
9 than tariffed services, that are related to, but not
10 necessary for, the provision of electric power and energy or
11 delivery services.
12 "Contract service" means (1) services, including the
13 provision of electric power and energy or other services,
14 that are provided by mutual agreement between an electric
15 utility and a retail customer that is located in the electric
16 utility's service area, provided that, delivery services
17 shall not be a contract service until such services are
18 declared competitive pursuant to Section 16-113; and also
19 means (2) the provision of electric power and energy by an
20 electric utility to retail customers outside the electric
21 utility's service area pursuant to Section 16-116. Provided,
22 however, contract service does not include electric utility
23 services provided pursuant to (i) contracts that retail
24 customers are required to execute as a condition of receiving
25 tariffed services, or (ii) special or negotiated rate
26 contracts for electric utility services that were entered
27 into between an electric utility and a retail customer prior
28 to the effective date of this amendatory Act of 1997 and
29 filed with the Commission.
30 "Delivery services" means those services provided by the
31 electric utility that are necessary in order for the
32 transmission and distribution systems to function so that
33 retail customers located in the electric utility's service
34 area can receive electric power and energy from suppliers
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1 other than the electric utility, and shall include, without
2 limitation, standard metering and billing services.
3 "Electric utility" means a public utility, as defined in
4 Section 3-105 of this Act, that has a franchise, license,
5 permit or right to furnish or sell electricity to retail
6 customers within a service area.
7 "Mandatory transition period" means the period from the
8 effective date of this amendatory Act of 1997 through January
9 1, 2005.
10 "Municipal system" shall have the meaning set forth in
11 Section 17-100.
12 "Real-time pricing" means charges for delivered electric
13 power and energy that vary on an hour-to-hour basis for
14 nonresidential retail customers and that vary on a periodic
15 basis during the day for residential retail customers.
16 "Retail customer" means a single entity using electric
17 power or energy at a single premises and that (A) either (i)
18 is receiving or is eligible to receive tariffed services from
19 an electric utility, or (ii) that is served by a municipal
20 system or electric cooperative within any area in which the
21 municipal system or electric cooperative is or would be
22 entitled to provide service under the law in effect
23 immediately prior to the effective date of this amendatory
24 Act of 1997, or (B) an entity which on the effective date of
25 this Act was receiving electric service from a public utility
26 and (i) was engaged in the practice of resale and
27 redistribution of such electricity within a building prior to
28 January 2, 1957, or (ii) was providing lighting services to
29 tenants in a multi-occupancy building, but only to the extent
30 such resale, redistribution or lighting service is authorized
31 by the electric utility's tariffs that were on file with the
32 Commission on the effective date of this Act.
33 "Service area" means (i) the geographic area within which
34 an electric utility was lawfully entitled to provide electric
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1 power and energy to retail customers as of the effective date
2 of this amendatory Act of 1997, and includes (ii) the
3 location of any retail customer to which the electric utility
4 was lawfully providing electric utility services on such
5 effective date.
6 "Small commercial retail customer" means those
7 nonresidential retail customers of an electric utility
8 consuming 15,000 kilowatt-hours or less of electricity
9 annually in its service area.
10 "Tariffed service" means services provided to retail
11 customers by an electric utility as defined by its rates on
12 file with the Commission pursuant to the provisions of
13 Article IX of this Act, but shall not include competitive
14 services.
15 "Transition charge" means a charge expressed in cents per
16 kilowatt-hour that is calculated for a customer or class of
17 customers as follows for each year in which an electric
18 utility is entitled to recover transition charges as provided
19 in Section 16-108:
20 (1) the amount of revenue that an electric utility
21 would receive from the retail customer or customers if it
22 were serving such customers' electric power and energy
23 requirements as a tariffed service based on (A) all of
24 the customers' actual usage during the 3 years ending 90
25 days prior to the date on which such customers were first
26 eligible for delivery services pursuant to Section
27 16-104, and (B) on (i) the base rates in effect on
28 October 1, 1996 (adjusted for the reductions required by
29 subsection (b) of Section 16-111, for any reduction
30 resulting from a rate decrease under Section 16-101(b),
31 for any restatement of base rates made in conjunction
32 with an elimination of the fuel adjustment clause
33 pursuant to subsection (b), (d), or (f) of Section 9-220
34 and for any removal of decommissioning costs from base
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1 rates pursuant to Section 16-114) and any separate
2 automatic rate adjustment riders (other than a
3 decommissioning rate as defined in Section 16-114) under
4 which the customers were receiving or, had they been
5 customers, would have received electric power and energy
6 from the electric utility during the year immediately
7 preceding the date on which such customers were first
8 eligible for delivery service pursuant to Section 16-104,
9 or (ii) to the extent applicable, any contract rates,
10 including contracts or rates for consolidated or
11 aggregated billing, under which such customers were
12 receiving electric power and energy from the electric
13 utility during such year;
14 (2) less the amount of revenue, other than revenue
15 from transition charges and decommissioning rates, that
16 the electric utility would receive from such retail
17 customers for delivery services provided by the electric
18 utility, assuming such customers were taking delivery
19 services for all of their usage, based on the delivery
20 services tariffs in effect during the year for which the
21 transition charge is being calculated and on the usage
22 identified in paragraph (1);
23 (3) less the market value for the electric power
24 and energy that the electric utility would have used to
25 supply all of such customers' electric power and energy
26 requirements, as a tariffed service, based on the usage
27 identified in paragraph (1), with such market value
28 determined in accordance with Section 16-112 of this Act;
29 (4) less the following amount which represents the
30 amount to be attributed to new revenue sources and cost
31 reductions by the electric utility through the end of the
32 period for which transition costs are recovered pursuant
33 to Section 16-108, referred to in this Article XVI as a
34 "mitigation factor":
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1 (A) for nonresidential retail customers, an
2 amount equal to the greater of (i) 0.5 cents per
3 kilowatt-hour during the period October 1, 1999
4 through December 31, 2004, 0.6 cents per
5 kilowatt-hour in calendar year 2005, and 0.9 cents
6 per kilowatt-hour in calendar year 2006, multiplied
7 in each year by the usage identified in paragraph
8 (1), or (ii) an amount equal to the following
9 percentages of the amount produced by applying the
10 applicable base rates (adjusted as described in
11 subparagraph (1)(B)) or contract rate to the usage
12 identified in paragraph (1): 8% for the period
13 October 1, 1999 through December 31, 2002, 10% in
14 calendar years 2003 and 2004, 11% in calendar year
15 2005 and 12% in calendar year 2006; and
16 (B) for residential retail customers, an
17 amount equal to the following percentages of the
18 amount produced by applying the base rates in effect
19 on October 1, 1996 (adjusted as described in
20 subparagraph (1)(B)) to the usage identified in
21 paragraph (1): (i) 6% from May 1, 2002 through
22 December 31, 2002, (ii) 7% in calendar years 2003
23 and 2004, (iii) 8% in calendar year 2005, and (iv)
24 10% in calendar year 2006;
25 (5) divided by the usage of such customers
26 identified in paragraph (1),
27 provided that the transition charge shall never be less than
28 zero.
29 "Unbundled service" means a component or constituent part
30 of a tariffed service which the electric utility subsequently
31 offers separately to its customers.
32 (Source: P.A. 90-561, eff. 12-16-97.)
33 (220 ILCS 5/16-115)
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1 Sec. 16-115. Certification of alternative retail electric
2 suppliers.
3 (a) An Any alternative retail electric supplier must
4 obtain a certificate of service authority from the Commission
5 in accordance with this Section before serving any retail
6 customer or other user located in this State. An alternative
7 retail electric supplier may request, and the Commission may
8 grant, a certificate of service authority for the entire
9 State or for a specified geographic area of the State.
10 (b) An alternative retail electric supplier seeking a
11 certificate of service authority shall file with the
12 Commission a verified application containing information
13 showing that the applicant meets the requirements of this
14 Section. The alternative retail electric supplier shall
15 publish notice of its application in the official State
16 newspaper within 10 days following the date of its filing.
17 No later than 45 days after the application is properly filed
18 with the Commission, and such notice is published, the
19 Commission shall issue its order granting or denying the
20 application.
21 (c) An application for a certificate of service
22 authority shall identify the area or areas in which the
23 applicant intends to offer service and the types of services
24 it intends to offer. Applicants that seek to serve
25 residential or small commercial retail customers within a
26 geographic area that is smaller than an electric utility's
27 service area shall submit evidence demonstrating that the
28 designation of this smaller area does not violate Section
29 16-115A. An applicant that seeks to serve residential or
30 small commercial retail customers may state in its
31 application for certification any limitations that will be
32 imposed on the number of customers or maximum load to be
33 served.
34 (d) The Commission shall grant the application for a
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1 certificate of service authority if it makes the findings set
2 forth in this subsection based on the verified application
3 and such other information as the applicant may submit:
4 (1) That the applicant possesses sufficient
5 technical, financial and managerial resources and
6 abilities to provide the service for which it seeks a
7 certificate of service authority. In determining the
8 level of technical, financial and managerial resources
9 and abilities which the applicant must demonstrate, the
10 Commission shall consider (i) the characteristics,
11 including the size and financial sophistication, of the
12 customers that the applicant seeks to serve, and (ii)
13 whether the applicant seeks to provide electric power and
14 energy using property, plant and equipment which it owns,
15 controls or operates;
16 (2) That the applicant will comply with all
17 applicable federal, State, regional and industry rules,
18 policies, practices and procedures for the use,
19 operation, and maintenance of the safety, integrity and
20 reliability, of the interconnected electric transmission
21 system;
22 (3) That the applicant will only provide service to
23 retail customers in an electric utility's service area
24 that are eligible to take delivery services under this
25 Act;
26 (4) That the applicant will comply with such
27 informational or reporting requirements as the Commission
28 may by rule establish and provide the information
29 required by Section 16-112. Any data related to
30 contracts for the purchase and sale of electric power and
31 energy shall be made available for review by the Staff of
32 the Commission on a confidential and proprietary basis
33 and only to the extent and for the purposes which the
34 Commission determines are reasonably necessary in order
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1 to carry out the purposes of this Act;
2 (5) That if the applicant, its corporate affiliates
3 or the applicant's principal source of electricity (to
4 the extent such source is known at the time of the
5 application) owns or controls facilities, for public use,
6 for the transmission or distribution of electricity to
7 end-users within a defined geographic area to which
8 electric power and energy can be physically and
9 economically delivered by the electric utility or
10 utilities in whose service area or areas the proposed
11 service will be offered, the applicant, its corporate
12 affiliates or principal source of electricity, as the
13 case may be, provides delivery services to the electric
14 utility or utilities in whose service area or areas the
15 proposed service will be offered that are reasonably
16 comparable to those offered by the electric utility, and
17 provided further, that the applicant agrees to certify
18 annually to the Commission that it is continuing to
19 provide such delivery services and that it has not
20 knowingly assisted any person or entity to avoid the
21 requirements of this Section. For purposes of this
22 subparagraph, "principal source of electricity" shall
23 mean a single source that supplies at least 65% of the
24 applicant's electric power and energy, and the purchase
25 of transmission and distribution services pursuant to a
26 filed tariff under the jurisdiction of the Federal Energy
27 Regulatory Commission or a state public utility
28 commission shall not constitute control of access to the
29 provider's transmission and distribution facilities;
30 (6) With respect to an applicant that seeks to
31 serve residential or small commercial retail customers,
32 that the area to be served by the applicant and any
33 limitations it proposes on the number of customers or
34 maximum amount of load to be served meet the provisions
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1 of Section 16-115A, provided, that the Commission can
2 extend the time for considering such a certificate
3 request by up to 90 days, and can schedule hearings on
4 such a request;
5 (7) That the applicant meets the requirements of
6 subsection (a) of Section 16-128; and
7 (8) That the applicant will comply with all other
8 applicable laws and regulations.
9 (e) A retail customer that owns a cogeneration or
10 self-generation facility and that seeks certification only to
11 provide electric power and energy from such facility to
12 retail customers at separate locations which customers are
13 both (i) owned by, or a subsidiary or other corporate
14 affiliate of, such applicant and (ii) eligible for delivery
15 services, shall be granted a certificate of service authority
16 upon filing an application and notifying the Commission that
17 it has entered into an agreement with the relevant electric
18 utilities pursuant to Section 16-118.
19 (f) The Commission shall have the authority to
20 promulgate rules and regulations to carry out the provisions
21 of this Section. On or before May 1, 1999, the Commission
22 shall adopt a rule or rules applicable to the certification
23 of those alternative retail electric suppliers that seek to
24 serve only nonresidential retail customers with maximum
25 electrical demands of one megawatt or more which shall
26 provide for (i) expedited and streamlined procedures for
27 certification of such alternative retail electric suppliers
28 and (ii) specific criteria which, if met by any such
29 alternative retail electric supplier, shall constitute the
30 demonstration of technical, financial and managerial
31 resources and abilities to provide service required by
32 subsection (d) (1) of this Section, such as a requirement to
33 post a bond or letter of credit, from a responsible surety or
34 financial institution, of sufficient size for the nature and
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1 scope of the services to be provided; demonstration of
2 adequate insurance for the scope and nature of the services
3 to be provided; and experience in providing similar services
4 in other jurisdictions.
5 (Source: P.A. 90-561, eff. 12-16-97.)