State of Illinois
91st General Assembly
Legislation

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[ Introduced ][ Engrossed ][ House Amendment 001 ]
[ Conference Committee Report 001 ]

91_SB0024enr

 
SB24 Enrolled                                  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,  16-104,  16-108, 16-110, 16-111,
 7    16-115, and 16-130 and adding  Sections  16-111.1,  16-111.2,
 8    and 16-114.1 as follows:

 9        (220 ILCS 5/16-102)
10        Sec.  16-102.   Definitions.   For  the  purposes of this
11    Article the following terms shall be defined as set forth  in
12    this Section.
13        "Alternative   retail   electric  supplier"  means  every
14    person,  cooperative,  corporation,  municipal   corporation,
15    company,  association,  joint  stock  company or association,
16    firm,  partnership,  individual,  or  other   entity,   their
17    lessees,  trustees,  or  receivers  appointed  by  any  court
18    whatsoever,  that  offers  electric power or energy for sale,
19    lease or in exchange for other value received to one or  more
20    retail   customers,  or  that  engages  in  the  delivery  or
21    furnishing  of  electric  power  or  energy  to  such  retail
22    customers, and shall include, without limitation,  resellers,
23    aggregators  and  power  marketers, but shall not include (i)
24    electric utilities (or any agent of the electric  utility  to
25    the extent the electric utility provides tariffed services to
26    retail  customers  through  that  agent),  (ii)  any electric
27    cooperative or municipal system as defined in Section  17-100
28    to  the  extent  that  the  electric cooperative or municipal
29    system is serving retail customers within any area  in  which
30    it  is  or would be entitled to provide service under the law
31    in effect immediately prior to the  effective  date  of  this
 
SB24 Enrolled              -2-                 LRB9100188JSgc
 1    amendatory  Act of 1997, (iii) a public utility that is owned
 2    and operated by any public institution of higher education of
 3    this State, or a public utility that is owned by such  public
 4    institution  of  higher  education and operated by any of its
 5    lessees or operating agents, within any area in which  it  is
 6    or  would  be  entitled  to  provide service under the law in
 7    effect immediately  prior  to  the  effective  date  of  this
 8    amendatory  Act  of  1997,  (iv) a any retail customer to the
 9    extent that customer obtains its electric  power  and  energy
10    from  that customer's its own cogeneration or self-generation
11    facilities, (v) an any entity that owns, operates, sells,  or
12    arranges   for   the   installation   of   a  customer's  own
13    cogeneration or self-generation facilities to be owned  by  a
14    retail  customer  described in subparagraph (iv), but only to
15    the extent the  entity  is  engaged  in  owning,  selling  or
16    arranging  for  the  such  installation of such facility,  or
17    operating the facility on behalf of such  customer,  provided
18    however  that  any  such  third  party owner or operator of a
19    facility built after January 1, 1999, complies with the labor
20    provisions of Section 16-128(a) as though  such  third  party
21    were  an  alternative  retail  electric  supplier, or (vi) an
22    industrial  or  manufacturing  customer  that  owns  its  own
23    distribution facilities, to  the  extent  that  the  customer
24    provides   service   from   that  distribution  system  to  a
25    third-party contractor located  on  the  customer's  premises
26    that   is   integrally   and  predominantly  engaged  in  the
27    customer's industrial  or  manufacturing  process;  provided,
28    that  if the industrial or manufacturing customer has elected
29    delivery services, the customer shall pay transition  charges
30    applicable  to  the electric power and energy consumed by the
31    third-party contractor unless such charges are otherwise paid
32    by the third party  contractor,  which  shall  be  calculated
33    based  on  the  usage  of, and the base rates or the contract
34    rates applicable to, the third-party contractor in accordance
 
SB24 Enrolled              -3-                 LRB9100188JSgc
 1    with Section 16-102.
 2        "Base rates" means the rates for those tariffed  services
 3    that  the  electric  utility is required to offer pursuant to
 4    subsection (a) of Section 16-103 and that were identified  in
 5    a  rate  order  for collection of the electric utility's base
 6    rate revenue requirement, excluding  (i)  separate  automatic
 7    rate  adjustment  riders  then  in  effect,  (ii)  special or
 8    negotiated contract rates, (iii)  delivery  services  tariffs
 9    filed  pursuant to Section 16-108, (iv) real-time pricing, or
10    (v) tariffs that were in effect prior to October 1, 1996  and
11    that  based  charges  for  services on an index or average of
12    other utilities' charges, but including (vi)  any  subsequent
13    redesign   of  such  rates  for  tariffed  services  that  is
14    authorized by the Commission after notice and hearing.
15        "Competitive service" includes (i) any service  that  has
16    been declared to be competitive pursuant to Section 16-113 of
17    this  Act,  (ii)  contract service, and (iii) services, other
18    than  tariffed  services,  that  are  related  to,  but   not
19    necessary  for, the provision of electric power and energy or
20    delivery services.
21        "Contract service"  means  (1)  services,  including  the
22    provision  of  electric  power  and energy or other services,
23    that are provided by mutual  agreement  between  an  electric
24    utility and a retail customer that is located in the electric
25    utility's  service  area,  provided  that,  delivery services
26    shall not be a  contract  service  until  such  services  are
27    declared  competitive  pursuant  to  Section 16-113; and also
28    means (2) the provision of electric power and  energy  by  an
29    electric  utility  to  retail  customers outside the electric
30    utility's service area pursuant to Section 16-116.  Provided,
31    however, contract service does not include  electric  utility
32    services  provided  pursuant  to  (i)  contracts  that retail
33    customers are required to execute as a condition of receiving
34    tariffed  services,  or  (ii)  special  or  negotiated   rate
 
SB24 Enrolled              -4-                 LRB9100188JSgc
 1    contracts  for  electric  utility  services that were entered
 2    into between an electric utility and a retail customer  prior
 3    to  the  effective  date  of  this amendatory Act of 1997 and
 4    filed with the Commission.
 5        "Delivery services" means those services provided by  the
 6    electric   utility  that  are  necessary  in  order  for  the
 7    transmission and distribution systems  to  function  so  that
 8    retail  customers  located  in the electric utility's service
 9    area can receive electric power  and  energy  from  suppliers
10    other  than  the electric utility, and shall include, without
11    limitation, standard metering and billing services.
12        "Electric utility" means a public utility, as defined  in
13    Section  3-105  of  this  Act, that has a franchise, license,
14    permit or right to furnish  or  sell  electricity  to  retail
15    customers within a service area.
16        "Mandatory  transition  period" means the period from the
17    effective date of this amendatory Act of 1997 through January
18    1, 2005.
19        "Municipal system" shall have the meaning  set  forth  in
20    Section 17-100.
21        "Real-time  pricing" means charges for delivered electric
22    power and energy that  vary  on  an  hour-to-hour  basis  for
23    nonresidential  retail  customers and that vary on a periodic
24    basis during the day for residential retail customers.
25        "Retail customer" means a single  entity  using  electric
26    power  or energy at a single premises and that (A) either (i)
27    is receiving or is eligible to receive tariffed services from
28    an electric utility,  or (ii) that is served by  a  municipal
29    system  or  electric cooperative within any area in which the
30    municipal system or  electric  cooperative  is  or  would  be
31    entitled   to   provide  service  under  the  law  in  effect
32    immediately prior to the effective date  of  this  amendatory
33    Act  of 1997, or (B) an entity which on the effective date of
34    this Act was receiving electric service from a public utility
 
SB24 Enrolled              -5-                 LRB9100188JSgc
 1    and  (i)  was  engaged  in  the   practice  of   resale   and
 2    redistribution of such electricity within a building prior to
 3    January  2,  1957, or (ii) was providing lighting services to
 4    tenants in a multi-occupancy building, but only to the extent
 5    such resale, redistribution or lighting service is authorized
 6    by the electric utility's tariffs that were on file with  the
 7    Commission on the effective date of this Act.
 8        "Service area" means (i) the geographic area within which
 9    an electric utility was lawfully entitled to provide electric
10    power and energy to retail customers as of the effective date
11    of  this  amendatory  Act  of  1997,  and  includes  (ii) the
12    location of any retail customer to which the electric utility
13    was lawfully providing  electric  utility  services  on  such
14    effective date.
15        "Small    commercial   retail   customer"   means   those
16    nonresidential  retail  customers  of  an  electric   utility
17    consuming   15,000  kilowatt-hours  or  less  of  electricity
18    annually in its service area.
19        "Tariffed service"  means  services  provided  to  retail
20    customers  by  an electric utility as defined by its rates on
21    file with  the  Commission  pursuant  to  the  provisions  of
22    Article  IX  of  this  Act, but shall not include competitive
23    services.
24        "Transition charge" means a charge expressed in cents per
25    kilowatt-hour that is calculated for a customer or  class  of
26    customers  as  follows  for  each  year  in which an electric
27    utility is entitled to recover transition charges as provided
28    in Section 16-108:
29             (1)  the amount of revenue that an electric  utility
30        would receive from the retail customer or customers if it
31        were  serving  such  customers' electric power and energy
32        requirements as a tariffed service based on  (A)  all  of
33        the  customers' actual usage during the 3 years ending 90
34        days prior to the date on which such customers were first
 
SB24 Enrolled              -6-                 LRB9100188JSgc
 1        eligible  for  delivery  services  pursuant  to   Section
 2        16-104,  and  (B)  on  (i)  the  base  rates in effect on
 3        October 1, 1996 (adjusted for the reductions required  by
 4        subsection  (b)  of  Section  16-111,  for  any reduction
 5        resulting from a rate decrease under  Section  16-101(b),
 6        for  any  restatement  of  base rates made in conjunction
 7        with  an  elimination  of  the  fuel  adjustment   clause
 8        pursuant  to subsection (b), (d), or (f) of Section 9-220
 9        and for any removal of decommissioning  costs  from  base
10        rates  pursuant  to  Section  16-114)  and  any  separate
11        automatic   rate   adjustment   riders   (other   than  a
12        decommissioning rate as defined in Section 16-114)  under
13        which  the  customers  were  receiving  or, had they been
14        customers, would have received electric power and  energy
15        from  the  electric  utility  during the year immediately
16        preceding the date on which  such  customers  were  first
17        eligible for delivery service pursuant to Section 16-104,
18        or  (ii)  to  the  extent applicable, any contract rates,
19        including  contracts  or  rates   for   consolidated   or
20        aggregated  billing,  under  which  such  customers  were
21        receiving  electric  power  and  energy from the electric
22        utility during such year;
23             (2)  less the amount of revenue, other than  revenue
24        from  transition  charges and decommissioning rates, that
25        the electric  utility  would  receive  from  such  retail
26        customers  for delivery services provided by the electric
27        utility, assuming such  customers  were  taking  delivery
28        services  for  all  of their usage, based on the delivery
29        services tariffs in effect during the year for which  the
30        transition  charge  is  being calculated and on the usage
31        identified in paragraph (1);
32             (3)  less the market value for  the  electric  power
33        and  energy  that the electric utility would have used to
34        supply all of such customers' electric power  and  energy
 
SB24 Enrolled              -7-                 LRB9100188JSgc
 1        requirements,  as  a tariffed service, based on the usage
 2        identified in  paragraph  (1),  with  such  market  value
 3        determined in accordance with Section 16-112 of this Act;
 4             (4)  less  the following amount which represents the
 5        amount to be attributed to new revenue sources  and  cost
 6        reductions by the electric utility through the end of the
 7        period  for which transition costs are recovered pursuant
 8        to Section 16-108, referred to in this Article XVI  as  a
 9        "mitigation factor":
10                  (A)  for  nonresidential  retail  customers, an
11             amount equal to the greater of  (i)  0.5  cents  per
12             kilowatt-hour  during  the  period  October  1, 1999
13             through   December   31,   2004,   0.6   cents   per
14             kilowatt-hour in calendar year 2005, and  0.9  cents
15             per  kilowatt-hour in calendar year 2006, multiplied
16             in each year by the usage  identified  in  paragraph
17             (1),  or  (ii)  an  amount  equal  to  the following
18             percentages of the amount produced by  applying  the
19             applicable  base  rates  (adjusted  as  described in
20             subparagraph (1)(B)) or contract rate to  the  usage
21             identified  in  paragraph  (1):  8%  for  the period
22             October 1, 1999 through December 31,  2002,  10%  in
23             calendar  years  2003 and 2004, 11% in calendar year
24             2005 and 12% in calendar year 2006; and
25                  (B)  for  residential  retail   customers,   an
26             amount  equal  to  the  following percentages of the
27             amount produced by applying the base rates in effect
28             on  October  1,  1996  (adjusted  as  described   in
29             subparagraph  (1)(B))  to  the  usage  identified in
30             paragraph (1): (i)  6%  from  May  1,  2002  through
31             December  31,  2002,  (ii) 7% in calendar years 2003
32             and 2004, (iii) 8% in calendar year 2005,  and  (iv)
33             10% in calendar year 2006;
34             (5)  divided   by   the   usage  of  such  customers
 
SB24 Enrolled              -8-                 LRB9100188JSgc
 1        identified in paragraph (1),
 2    provided that the transition charge shall never be less  than
 3    zero.
 4        "Unbundled service" means a component or constituent part
 5    of a tariffed service which the electric utility subsequently
 6    offers separately to its customers.
 7    (Source: P.A. 90-561, eff. 12-16-97.)

 8        (220 ILCS 5/16-104)
 9        Sec.  16-104.   Delivery  services  transition  plan.  An
10    electric  utility  shall  provide delivery services to retail
11    customers in accordance with the provisions of this Section.
12        (a)  Each electric utility shall offer delivery  services
13    to retail customers located in its service area in accordance
14    with the following provisions:
15             (1)  On  or  before  October  1,  1999, the electric
16        utility  shall  offer  delivery  services  (i)   to   any
17        non-residential  retail  customer  whose  average monthly
18        maximum  electrical  demand  on  the  electric  utility's
19        system during the 6 months with  the  customer's  highest
20        monthly  maximum demands in the 12 months ending June 30,
21        1999  equals  or  exceeds  4  megawatts;  (ii)   to   any
22        non-governmental,   non-residential,   commercial  retail
23        customers under common ownership doing business at 10  or
24        more  separate  locations  within  the electric utility's
25        service area, if the aggregate coincident average monthly
26        maximum electrical demand of all  such  locations  during
27        the  6 months with the customer's highest monthly maximum
28        electrical demands during the 12 months ending  June  30,
29        1999  equals or exceeds 9.5 megawatts, provided, however,
30        that an electric utility's obligation to  offer  delivery
31        services  under this clause (ii) shall not exceed 3.5% of
32        the maximum electric demand  on  the  electric  utility's
33        system  in  the 12 months ending June 30, 1999; and (iii)
 
SB24 Enrolled              -9-                 LRB9100188JSgc
 1        to non-residential retail customers whose annual electric
 2        energy use comprises  33%  of  the  kilowatt-hour  sales,
 3        excluding  the kilowatt-hour sales to customers described
 4        in clauses (i) and (ii), to each  non-residential  retail
 5        customer class of the electric utility.
 6             (2)  On  or  before  October  1,  2000, the electric
 7        utility shall offer delivery  services  to  the  eligible
 8        governmental  customers  described in subsections (a) and
 9        (b)  of  Section  16-125A  if  the  aggregate  coincident
10        average  monthly  maximum  electrical  demand   of   such
11        customers during the 6 months with the customers' highest
12        monthly  maximum  electrical demands during the 12 months
13        ending June 30, 2000 equals or exceeds 9.5 megawatts.
14             (2.5)  On  or  before  June  1,  2000,  an  electric
15        utility serving more than  1,000,000  customers  in  this
16        State  shall  offer delivery services to retail customers
17        whose annual electric energy use  comprises  33%  of  the
18        kilowatt  hour  sales  to  that group of retail customers
19        that are classified under Division D, Groups  20  through
20        39  of  the Standard Industrial Classifications set forth
21        in  the   Standard   Industrial   Classification   Manual
22        published  by  the United States Office of Management and
23        Budget,  excluding  the  kilowatt-hour  sales  to   those
24        customers   that   are  eligible  for  delivery  services
25        pursuant to  clause  (1)(i),  and  shall  offer  delivery
26        services  to  its  remaining  retail customers classified
27        under Division D, Groups  20  through  39  on  or  before
28        October 1, 2000.
29             (3)  On  or  before  December 31, 2000, the electric
30        utility shall offer delivery services  to  all  remaining
31        nonresidential retail customers in its service area.
32             (4)  On  or before May 1, 2002, the electric utility
33        shall offer delivery services to all  residential  retail
34        customers in its service area.
 
SB24 Enrolled              -10-                LRB9100188JSgc
 1        The  loads  and  kilowatt-hour sales used for purposes of
 2    this subsection shall be those for the 12 months ending  June
 3    30,  1999  for  nonresidential retail customers. The electric
 4    utility shall identify those customers to be offered delivery
 5    service pursuant to clause (1)(iii) and  paragraph  (2.5)  of
 6    subsection  (a) of this Section and Section 16-111(e)(B)(iii)
 7    pursuant to  a  lottery  or  other  random  nondiscriminatory
 8    selection   process  set  forth  in  the  electric  utility's
 9    delivery services implementation  plan  pursuant  to  Section
10    16-105,  which  process  may  include  a registration process
11    giving  each  nonresidential  customer  the  opportunity   to
12    register  for  eligibility  for  delivery services under this
13    Section,  with  a  lottery  of  registered  customers  to  be
14    conducted if the annual electric energy use of all registered
15    customers exceeds the limit set forth in clause  (1)(iii)  or
16    clause  (2.5)  or  Section  16-111(e)(B)(iii), as applicable;
17    provided that the provision of this amendatory Act of 1999 as
18    it relates to the  registration  and  lottery  process  under
19    clause  (1)(iii)  is  not  intended  to  nor does it make any
20    change in the meaning of this Section,  but  is  intended  to
21    remove  possible ambiguities, thereby confirming the existing
22    meaning of this Section prior to the effective date  of  this
23    amendatory Act of 1999. Provided, that non-residential retail
24    customers under common ownership at separate locations within
25    the  electric  utility's service area may elect, prior to the
26    date the electric  utility  conducts  the  lottery  or  other
27    random  selection process for purposes of clause (1)(iii), to
28    designate themselves as  a  common  ownership  group,  to  be
29    excluded  from  such  lottery and to instead participate in a
30    separate lottery for such common ownership group pursuant  to
31    which  delivery  services  will be offered to non-residential
32    retail customers comprising 33% of  the  total  kilowatt-hour
33    sales  to  the common ownership group on or before October 1,
34    1999.  For purposes  of  this  subsection  (a),  an  electric
 
SB24 Enrolled              -11-                LRB9100188JSgc
 1    utility  may define "common ownership" to exclude sites which
 2    are not part of the same business, provided,  that  auxiliary
 3    establishments   as   defined   in  the  Standard  Industrial
 4    Classification Manual published by the United  States  Office
 5    of Management and Budget shall not be excluded.
 6        (b)  The  electric utility shall allow the aggregation of
 7    loads that are eligible for delivery services so long as such
 8    aggregation meets the criteria for delivery of electric power
 9    and energy applicable to the electric utility established  by
10    the  regional  reliability  council  to  which  the  electric
11    utility   belongs,   by   an   independent  system  operating
12    organization to which the electric  utility  belongs,  or  by
13    another organization responsible for overseeing the integrity
14    and  reliability of the transmission system, as such criteria
15    are in effect from time to time.  The  Commission  may  adopt
16    rules  and regulations governing the criteria for aggregation
17    of the loads utilizing delivery services, but its failure  to
18    do  so shall not preclude any eligible customer from electing
19    delivery services.  The electric  utility  shall  allow  such
20    aggregation   for   any   voluntary  grouping  of  customers,
21    including without limitation those having a common agent with
22    contractual authority to purchase electric power  and  energy
23    and  delivery  services  on  behalf  of  all customers in the
24    grouping.
25        (c)  An electric utility shall allow  a  retail  customer
26    that   generates  power  for  its  own  use  to  include  the
27    electrical demand obtained from the  customer's  cogeneration
28    or  self-generation  facilities  that  is coincident with the
29    retail customer's maximum monthly electrical  demand  on  the
30    electric   utility's  system  in  any  determination  of  the
31    customer's maximum monthly electrical demand for purposes  of
32    determining  when  such  retail  customer  shall  be  offered
33    delivery  services pursuant to clause (i) of subparagraph (1)
34    of subsection (a) of this Section.
 
SB24 Enrolled              -12-                LRB9100188JSgc
 1        (d)  The Commission shall establish  charges,  terms  and
 2    conditions  for  delivery services in accordance with Section
 3    16-108.
 4        (e)  Subject  to  the  terms  and  conditions  which  the
 5    electric utility is entitled to  impose  in  accordance  with
 6    Section  16-108,  a retail customer that is eligible to elect
 7    delivery services pursuant to subsection (a) may place all or
 8    a portion of its electric power and  energy  requirements  on
 9    delivery services.
10        (f)  An  electric  utility  may require a retail customer
11    who elects to (i) use an alternative retail electric supplier
12    or another electric utility for  some  but  not  all  of  its
13    electric  power  or  energy  requirements,  and  (ii) use the
14    electric utility for any portion of  its  remaining  electric
15    power  and  energy requirements,  to place the portion of the
16    customer's electric power or energy requirement that is to be
17    served by the electric utility on a tariff containing charges
18    that are set to recover the lowest reasonably available  cost
19    to  the  electric  utility  of  acquiring  electric power and
20    energy  on  the  wholesale  electric  market  to  serve  such
21    remaining portion of the customer's electric power and energy
22    requirement, reasonable compensation for  arranging  for  and
23    providing  such  electric  power  or energy, and the electric
24    utility's other costs of providing service to such  remaining
25    electric power and energy requirement.
26    (Source: P.A. 90-561, eff. 12-16-97.)

27        (220 ILCS 5/16-108)
28        Sec.  16-108.  Recovery  of  costs  associated  with  the
29    provision of delivery services.
30        (a)  An  electric  utility shall file a delivery services
31    tariff with the Commission at least 210  days  prior  to  the
32    date  that  it  is  required  to begin offering such services
33    pursuant to this Act.  An electric utility shall provide  the
 
SB24 Enrolled              -13-                LRB9100188JSgc
 1    components  of  delivery  services  that  are  subject to the
 2    jurisdiction of the Federal Energy Regulatory  Commission  at
 3    the  same  prices,  terms  and  conditions  set  forth in its
 4    applicable tariff as approved or allowed into effect by  that
 5    Commission. The Commission shall otherwise have the authority
 6    pursuant  to  Article  IX  to review, approve, and modify the
 7    prices, terms and conditions of those components of  delivery
 8    services  not  subject  to  the  jurisdiction  of the Federal
 9    Energy Regulatory  Commission,  including  the  authority  to
10    determine  the  extent to which such delivery services should
11    be offered  on  an  unbundled  basis.   In  making  any  such
12    determination  the  Commission  shall consider, at a minimum,
13    the effect of additional unbundling on (i) the  objective  of
14    just  and  reasonable rates, (ii) electric utility employees,
15    and (iii) the development of competitive markets for electric
16    energy services in Illinois.
17        (b)  The Commission shall enter an  order  approving,  or
18    approving  as modified, the delivery services tariff no later
19    than 30 days prior to the date on which the electric  utility
20    must  commence  offering  such  services.  The Commission may
21    subsequently modify such tariff pursuant to this Act.
22        (c)  The electric  utility's  tariffs  shall  define  the
23    classes  of  its  customers for purposes of delivery services
24    charges.   Delivery  services  shall  be  priced   and   made
25    available  to all retail customers electing delivery services
26    in each such class on a nondiscriminatory basis regardless of
27    whether the retail customer chooses the electric utility,  an
28    affiliate  of  the electric utility, or another entity as its
29    supplier of electric power and energy.  Charges for  delivery
30    services  shall  be  cost based, and shall allow the electric
31    utility to recover the costs of providing  delivery  services
32    through  its  charges  to its delivery service customers that
33    use the facilities and services associated with  such  costs.
34    Such  costs  shall include the costs of owning, operating and
 
SB24 Enrolled              -14-                LRB9100188JSgc
 1    maintaining transmission  and  distribution  facilities.  The
 2    Commission  shall also be authorized to consider whether, and
 3    if so to what extent, the following costs  are  appropriately
 4    included  in  the electric utility's delivery services rates:
 5    (i) the costs of that portion of generation  facilities  used
 6    for  the production and absorption of reactive power in order
 7    that retail  customers  located  in  the  electric  utility's
 8    service  area  can  receive  electric  power  and energy from
 9    suppliers other than the electric utility, and (ii) the costs
10    associated  with  the  use  and  redispatch   of   generation
11    facilities  to  mitigate  constraints  on the transmission or
12    distribution system in order that retail customers located in
13    the electric utility's  service  area  can  receive  electric
14    power  and  energy  from  suppliers  other  than the electric
15    utility.  Nothing in this subsection shall  be  construed  as
16    directing  the  Commission  to  allocate  any  of  the  costs
17    described  in  (i) or (ii) that are found to be appropriately
18    included in the electric utility's delivery services rates to
19    any particular customer group or geographic area  in  setting
20    delivery services rates.
21        (d)  The  Commission  shall  establish charges, terms and
22    conditions for delivery services that are just and reasonable
23    and  shall  take   into   account   customer   impacts   when
24    establishing such charges. In establishing charges, terms and
25    conditions  for  delivery services, the Commission shall take
26    into account voltage level differences.   A  retail  customer
27    shall have the option to request to purchase electric service
28    at  any  delivery  service voltage reasonably and technically
29    feasible from the electric facilities serving that customer's
30    premises provided  that  there  are  no  significant  adverse
31    impacts  upon  system  reliability  or  system efficiency.  A
32    retail customer shall also have  the  option  to  request  to
33    purchase  electric  service  at any point of delivery that is
34    reasonably and technically feasible provided that  there  are
 
SB24 Enrolled              -15-                LRB9100188JSgc
 1    no  significant  adverse  impacts  on  system  reliability or
 2    efficiency. Such requests shall not be unreasonably denied.
 3        (e)  Electric  utilities  shall  recover  the  costs   of
 4    installing,  operating  or  maintaining  facilities  for  the
 5    particular   benefit   of   one  or  more  delivery  services
 6    customers, including without limitation any costs incurred in
 7    complying with  a  customer's  request  to  be  served  at  a
 8    different voltage level, directly from the retail customer or
 9    customers  for  whose benefit the costs were incurred, to the
10    extent such costs  are  not  recovered  through  the  charges
11    referred to in subsections (c) and (d) of this Section.
12        (f)  An  electric  utility  shall  be  entitled  but  not
13    required  to implement transition charges in conjunction with
14    the offering of delivery services pursuant to Section 16-104.
15    If an electric  utility  implements  transition  charges,  it
16    shall  implement  such  charges  for  all  delivery  services
17    customers  and for all customers described in subsection (h),
18    but shall not implement  transition  charges  for  power  and
19    energy  that  a  retail  customer  takes from cogeneration or
20    self-generation facilities located on that retail  customer's
21    premises, if such facilities meet the following criteria:
22             (i)  the  cogeneration or self-generation facilities
23        serve a single retail customer and are  located  on  that
24        retail   customer's   premises   (for  purposes  of  this
25        subparagraph and  subparagraph  (ii),  an  industrial  or
26        manufacturing   retail   customer   and   a  third  party
27        contractor  that  is  served  by   such   industrial   or
28        manufacturing customer through such retail customer's own
29        electrical     distribution    facilities    under    the
30        circumstances  described  in  subsection  (vi)   of   the
31        definition  of "alternative retail electric supplier" set
32        forth in Section 16-102, shall  be  considered  a  single
33        retail customer);
34             (ii)  the cogeneration or self-generation facilities
 
SB24 Enrolled              -16-                LRB9100188JSgc
 1        either  (A)  are  sized  pursuant  to  generally accepted
 2        engineering   standards   for   the   retail   customer's
 3        electrical load at that  premises  (taking  into  account
 4        standby  or  other  reliability considerations related to
 5        that retail customer's operations at that site) or (B) if
 6        the facility is a cogeneration facility  located  on  the
 7        retail  customer's  premises,  the retail customer is the
 8        thermal host for that facility and the facility has  been
 9        designed  to  meet  that retail customer's thermal energy
10        requirements resulting in electrical output  beyond  that
11        retail  customer's  electrical  demand  at that premises,
12        comply  with  the  operating  and  efficiency   standards
13        applicable  to "qualifying facilities" specified in title
14        18 Code of Federal  Regulations  Section  292.205  as  in
15        effect  on  the  effective date of this amendatory Act of
16        1999;
17             (iii)  the retail customer  on  whose  premises  the
18        facilities  are  located either has an exclusive right to
19        receive, and corresponding obligation to pay for, all  of
20        the  electrical  capacity of the facility, or in the case
21        of a cogeneration facility that has been designed to meet
22        the retail customer's thermal energy requirements at that
23        premises, an identified amount of the electrical capacity
24        of the facility, over a minimum 5-year period; and
25             (iv)  if the cogeneration facility is sized for  the
26        retail  customer's  thermal  load  at  that  premises but
27        exceeds the electrical load, any sales of excess power or
28        energy are made only at wholesale,  are  subject  to  the
29        jurisdiction of the Federal Energy Regulatory Commission,
30        and   are  not  for  the  purpose  of  circumventing  the
31        provisions of this subsection (f).
32    If a generation  facility  located  at  a  retail  customer's
33    premises  does  not  meet  the  above  criteria,  an electric
34    utility implementing transition  charges  shall  implement  a
 
SB24 Enrolled              -17-                LRB9100188JSgc
 1    transition  charge  until December 31, 2006 for any power and
 2    energy taken by such retail customer from such facility as if
 3    such power and energy had  been  delivered  by  the  electric
 4    utility.    Provided,  however,  that  an  industrial  retail
 5    customer that is taking power from a generation facility that
 6    does not meet the above criteria but that is located on  such
 7    customer's  premises  will  not  be  subject  to a transition
 8    charge for the power and energy taken by such retail customer
 9    from such generation facility if the facility does not  serve
10    any  other retail customer and either was installed on behalf
11    of the customer and for its own use prior to January 1, 1997,
12    or  is  both  predominantly  fueled  by  byproducts  of  such
13    customer's manufacturing process at such premises  and  sells
14    or  offers an average of 300 megawatts or more of electricity
15    produced from such generation  facility  into  the  wholesale
16    market.  Such  charges  shall  be  calculated  as provided in
17    Section 16-102, and shall be collected on each  kilowatt-hour
18    delivered  under  a  delivery  services  tariff  to  a retail
19    customer from the date  the  customer  first  takes  delivery
20    services  until  December  31,  2006  except  as  provided in
21    subsection (h) of this Section. Provided,  however,  that  an
22    electric  utility,  other  than an electric utility providing
23    service to at least 1,000,000  customers  in  this  State  on
24    January  1,  1999, shall be entitled to petition for entry of
25    an order by the Commission authorizing the  electric  utility
26    to  implement  transition  charges  for  an additional period
27    ending no later than December 31, 2008.  The electric utility
28    shall file its petition with supporting evidence  no  earlier
29    than  16  months,  and  no  later  than  12  months, prior to
30    December 31, 2006.  The Commission shall hold  a  hearing  on
31    the  electric utility's petition and shall enter its order no
32    later than  8  months  after  the  petition  is  filed.   The
33    Commission  shall  determine  whether  and to what extent the
34    electric utility shall be authorized to implement  transition
 
SB24 Enrolled              -18-                LRB9100188JSgc
 1    charges   for  an  additional  period.   The  Commission  may
 2    authorize  the  electric  utility  to  implement   transition
 3    charges  for  some or all of the additional period, and shall
 4    determine the mitigation factors to be used  in  implementing
 5    such  transition charges; provided, that the Commission shall
 6    not authorize mitigation factors less than 110% of  those  in
 7    effect  during  the  12  months  ended December 31, 2006.  In
 8    making its determination, the Commission shall  consider  the
 9    following  factors:   the  necessity  to implement transition
10    charges for an additional period in  order  to  maintain  the
11    financial  integrity of the electric utility; the prudence of
12    the electric utility's actions in reducing  its  costs  since
13    the  effective  date  of  this  amendatory  Act  of 1997; the
14    ability of the electric utility to provide safe, adequate and
15    reliable service to retail customers in its service area; and
16    the impact on competition of allowing the electric utility to
17    implement transition charges for the additional period.
18        (g)  The  electric  utility  shall  file   tariffs   that
19    establish  the transition charges to be paid by each class of
20    customers to the electric utility  in  conjunction  with  the
21    provision   of  delivery  services.  The  electric  utility's
22    tariffs  shall  define  the  classes  of  its  customers  for
23    purposes of  calculating  transition  charges.  The  electric
24    utility's  tariffs  shall  provide  for  the  calculation  of
25    transition  charges  on  a  customer-specific  basis  for any
26    retail customer  whose  average  monthly  maximum  electrical
27    demand  on  the electric utility's system during the 6 months
28    with  the  customer's  highest  monthly  maximum   electrical
29    demands   equals   or  exceeds  3.0  megawatts  for  electric
30    utilities having more than 1,000,000 customers, and for other
31    electric utilities for  any  customer  that  has  an  average
32    monthly  maximum  electrical demand on the electric utility's
33    system of one megawatt or  more,  and  (A)  for  which  there
34    exists  data  on  the  customer's  usage  during  the 3 years
 
SB24 Enrolled              -19-                LRB9100188JSgc
 1    preceding the date that the customer became eligible to  take
 2    delivery services, or (B) for which there does not exist data
 3    on the customer's usage during the 3 years preceding the date
 4    that  the customer became eligible to take delivery services,
 5    if in the electric utility's reasonable judgment there exists
 6    comparable usage information or a sufficient basis to develop
 7    such information, and  further  provided  that  the  electric
 8    utility   can  require  customers  for  which  an  individual
 9    calculation is made to sign  contracts  that  set  forth  the
10    transition charges to be paid by the customer to the electric
11    utility pursuant to the tariff.
12        (h)  An  electric  utility shall also be entitled to file
13    tariffs that allow it  to  collect  transition  charges  from
14    retail  customers in the electric utility's service area that
15    do not take delivery services but that take electric power or
16    energy from an alternative retail electric supplier  or  from
17    an  electric utility other than the electric utility in whose
18    service area the customer is located.  Such charges shall  be
19    calculated,  in  accordance with the definition of transition
20    charges in Section 16-102, for the period of  time  that  the
21    customer  would  be obligated to pay transition charges if it
22    were taking delivery services, except that no  deduction  for
23    delivery services revenues shall be made in such calculation,
24    and  usage data from the customer's class shall be used where
25    historical usage data is not  available  for  the  individual
26    customer.   The  customer  shall  be  obligated  to  pay such
27    charges on a lump sum basis on or before the  date  on  which
28    the  customer  commences to take service from the alternative
29    retail electric supplier or other electric utility, provided,
30    that the electric utility in whose service area the  customer
31    is  located  shall offer the customer the option of signing a
32    contract pursuant to which the  customer  pays  such  charges
33    ratably  over the period in which the charges would otherwise
34    have applied.
 
SB24 Enrolled              -20-                LRB9100188JSgc
 1        (i)  An electric utility shall be entitled to add to  the
 2    bills  of  delivery  services  customers  charges pursuant to
 3    Sections  9-221,  9-222  (except  as  provided   in   Section
 4    9-222.1),  and Section 16-114 of this Act, Section 5-5 of the
 5    Electricity Infrastructure Maintenance Fee Law,  Section  6-5
 6    of   the   Renewable  Energy,  Energy  Efficiency,  and  Coal
 7    Resources Development Law of 1997,  and  Section  13  of  the
 8    Energy Assistance Act of 1989.
 9        (j)  If a retail customer that obtains electric power and
10    energy   from   cogeneration  or  self-generation  facilities
11    installed for its own use  on  or  before  January  1,  1997,
12    subsequently   takes   service  from  an  alternative  retail
13    electric supplier or  an  electric  utility  other  than  the
14    electric  utility  in  whose  service  area  the  customer is
15    located for any portion of the customer's electric power  and
16    energy  requirements  formerly obtained from those facilities
17    (including that amount purchased from the utility in lieu  of
18    such  generation  and not as standby power purchases, under a
19    cogeneration  displacement  tariff  in  effect  as   of   the
20    effective   date   of  this  amendatory  Act  of  1997),  the
21    transition   charges   otherwise   applicable   pursuant   to
22    subsections (f), (g), or (h) of this  Section  shall  not  be
23    applicable  in  any  year  to  that portion of the customer's
24    electric power and energy requirements formerly obtained from
25    those  facilities,  provided,  that  for  purposes  of   this
26    subsection  (j),  such  portion  shall not exceed the average
27    number  of  kilowatt-hours  per  year   obtained   from   the
28    cogeneration or self-generation facilities during the 3 years
29    prior  to  the date on which the customer became eligible for
30    delivery services, except as provided in  subsection  (f)  of
31    Section 16-110.
32    (Source: P.A. 90-561, eff. 12-16-97.)

33        (220 ILCS 5/16-110)
 
SB24 Enrolled              -21-                LRB9100188JSgc
 1        Sec.  16-110.  Delivery  services customer power purchase
 2    options.
 3        (a)  Each electric utility shall offer a tariffed service
 4    or services in accordance with the terms and  conditions  set
 5    forth  in  this Section pursuant to which its non-residential
 6    delivery services customers may purchase  from  the  electric
 7    utility  an amount of electric power and energy that is equal
 8    to or less than  the  amounts  that  are  delivered  by  such
 9    electric utility.
10        (b)  Except  as  provided  in  subsection  (o) of Section
11    16-112, a non-residential delivery services customer that  is
12    paying  transition  charges  to the electric utility shall be
13    permitted to purchase electric  power  and  energy  from  the
14    electric utility at a price or prices equal to the sum of (i)
15    the  market  values  that  are  determined  for  the electric
16    utility in accordance with Section 16-112  and  used  by  the
17    electric  utility  to  calculate  the  customer's  transition
18    charges  and (ii) a fee that compensates the electric utility
19    for any administrative costs it incurs in arranging to supply
20    such electric power and energy.   The  electric  utility  may
21    require  that  the  customer purchase such electric power and
22    energy for periods of not less than one  year  and  may  also
23    require  that  the  customer  give up to 30 days notice for a
24    purchase of one year's duration, and 90  days  notice  for  a
25    purchase of more than one year's duration.  A non-residential
26    delivery  service customer exercising the option described in
27    this subsection may sell  or  assign  its  interests  in  the
28    electric  power or energy that the customer has purchased. In
29    the  case  of  any   such   assignment   or   sale   by   any
30    non-residential  delivery  service customer to an alternative
31    retail electric supplier that is serving  such  customer  and
32    has  been  certified  pursuant to Section 16-115, an electric
33    utility serving more than  500,000  customers  shall  provide
34    such  power  and energy at the same market value as set forth
 
SB24 Enrolled              -22-                LRB9100188JSgc
 1    in clause (i) of  this  subsection,  together  with  the  fee
 2    charged  under clause (ii) of this subsection, less any costs
 3    included in such market value or fee with respect  to  retail
 4    marketing  activities,  provided,  however,  that in no event
 5    shall an electric utility be required after June 1,  2002  to
 6    provide  power  and energy at this market value plus fee that
 7    excludes marketing costs for any such assignment or sale by a
 8    non-residential customer to an  alternative  retail  electric
 9    supplier.  At  least  twice  per  year, each electric utility
10    shall notify its small commercial retail  customers,  through
11    bill  inserts  and  other  similar  means, of their option to
12    obtain electric power and energy through purchases at  market
13    value pursuant to this subsection.
14        (c)  After  the  transition charge period applicable to a
15    non-residential delivery services  customer,  and  until  the
16    provision   of   electric   power   and  energy  is  declared
17    competitive for the customer  group  to  which  the  customer
18    belongs,  a  non-residential  delivery services customer that
19    paid any transition charges it was legally obligated  to  pay
20    to  an  electric  utility  shall  be  permitted  to  purchase
21    electric  power  and  energy  from  the  electric utility for
22    contract periods of one year at a price or  prices  equal  to
23    the   sum  of  (i)  the  market  value  determined  for  that
24    customer's class pursuant to Section 16-112 and (ii)  to  the
25    extent  it  is  not  included  in such market value, a fee to
26    compensate the electric utility for the service of  arranging
27    the  supply  or  purchase  of such electric power and energy.
28    The electric utility may require  that  a  delivery  services
29    customer  give  the following notice for such a purchase: (i)
30    for a small commercial retail  customer,  not  more  than  30
31    days; (ii) for a nonresidential customer which is not a small
32    commercial  retail  customer but which has maximum electrical
33    demand of less than 500 kilowatts, not more  than  6  months;
34    (iii)  for  a nonresidential customer with maximum electrical
 
SB24 Enrolled              -23-                LRB9100188JSgc
 1    demand of 500 kilowatts or more but less than  one  megawatt,
 2    not  more  than  9  months;  and  (iv)  for  a nonresidential
 3    customer with maximum electrical demand of  one  megawatt  or
 4    more,  not  more than one year. At least twice per year, each
 5    electric utility shall notify  its  small  commercial  retail
 6    customers,  through  bill  inserts or other similar means, of
 7    their option to obtain  electric  power  and  energy  through
 8    purchases at market value pursuant to this subsection.
 9        (d)  After  the  transition charge period applicable to a
10    non-residential delivery services  customer,  and  until  the
11    provision   of   electric   power   and  energy  is  declared
12    competitive for the customer  group  to  which  the  customer
13    belongs,  a non-residential delivery services customer, other
14    than a  small  commercial  retail  customer,  that  paid  any
15    transition  charges  it  was  legally  obligated to pay to an
16    electric utility shall  be  permitted  to  purchase  electric
17    power  and  energy  from  the  electric  utility for contract
18    periods of one year at a price or prices equal to (A) the sum
19    of (i) the electric utility's actual cost of  procuring  such
20    electric  power  and  energy  and  (ii)  a  broker's  fee  to
21    compensate the electric utility for arranging the supply, or,
22    if  the  utility  so elects, (B) the market value of electric
23    power or energy provided by the electric  utility  determined
24    as  set  forth  in  the  electric  utility's  tariff for that
25    customer's class.  The electric utility may require that  the
26    delivery services customer give up to 30 days notice for such
27    a purchase.
28        (e)  Each  delivery services customer purchasing electric
29    power and energy from the  electric  utility  pursuant  to  a
30    tariff  filed  in accordance with this Section shall also pay
31    all of the applicable  charges  set  forth  in  the  electric
32    utility's  delivery  services  tariffs  and any other tariffs
33    applicable to the services provided to that customer  by  the
34    electric utility.
 
SB24 Enrolled              -24-                LRB9100188JSgc
 1        (f)  An  electric  utility  can require a retail customer
 2    taking delivery services  that  formerly  generated  electric
 3    power and energy for its own use and that would not otherwise
 4    pay transition charges on a portion of its electric power and
 5    energy  requirements  served  on  delivery  services  to  pay
 6    transition charges on that portion of the customer's electric
 7    power  and  energy  requirements as a condition of exercising
 8    the delivery services customer  power  purchase  options  set
 9    forth in this Section.
10    (Source: P.A. 90-561, eff. 12-16-97.)

11        (220 ILCS 5/16-111)
12        Sec.  16-111. Rates and restructuring transactions during
13    mandatory transition period.
14        (a)  During    the    mandatory    transition     period,
15    notwithstanding  any provision of Article IX of this Act, and
16    except as provided in subsections (b), (d), (e), and  (f)  of
17    this   Section,   the  Commission  shall  not  (i)  initiate,
18    authorize or order any change by way of increase (other  than
19    in  connection  with  a  request  for rate increase which was
20    filed after September 1, 1997 but prior to October 15,  1997,
21    by  an electric utility serving less than 12,500 customers in
22    this state),  (ii)  initiate  or,  unless  requested  by  the
23    electric  utility,  authorize  or  order any change by way of
24    decrease, restructuring or unbundling (except as provided  in
25    Section  16-109A),  in the rates of any electric utility that
26    were in effect on October 1, 1996,  or  (iii)  in  any  order
27    approving  any  application  for a merger pursuant to Section
28    7-204 that was  pending  as  of  May  16,  1997,  impose  any
29    condition  requiring any filing for an increase, decrease, or
30    change in, or other review of, an electric utility's rates or
31    enforce any such  condition  of  any  such  order;  provided,
32    however,   that   this  subsection  shall  not  prohibit  the
33    Commission from:
 
SB24 Enrolled              -25-                LRB9100188JSgc
 1             (1)  approving  the  application  of   an   electric
 2        utility  to  implement  an  alternative to rate of return
 3        regulation or a  regulatory  mechanism  that  rewards  or
 4        penalizes  the  electric  utility  through  adjustment of
 5        rates based on utility performance, pursuant  to  Section
 6        9-244;
 7             (2)  authorizing  an  electric  utility to eliminate
 8        its fuel adjustment  clause  and  adjust  its  base  rate
 9        tariffs in accordance with subsection (b), (d), or (f) of
10        Section  9-220  of  this  Act, to fix its fuel adjustment
11        factor in accordance with subsection (c) of Section 9-220
12        of this Act, or to eliminate its fuel  adjustment  clause
13        in  accordance  with  subsection  (e) of Section 9-220 of
14        this Act;
15             (3)  ordering  into  effect  tariffs  for   delivery
16        services   and  transition  charges  in  accordance  with
17        Sections 16-104 and  16-108,  for  real-time  pricing  in
18        accordance  with  Section 16-107, or the options required
19        by Section 16-110 and subsection  (n) of 16-112, allowing
20        a billing experiment in accordance with  Section  16-106,
21        or modifying delivery services tariffs in accordance with
22        Section 16-109; or
23             (4)  ordering  or allowing into effect any tariff to
24        recover charges pursuant to  Sections  9-201.5,  9-220.1,
25        9-221,  9-222  (except  as  provided in Section 9-222.1),
26        16-108, and 16-114  of  this  Act,  Section  5-5  of  the
27        Electricity  Infrastructure  Maintenance Fee Law, Section
28        6-5 of the Renewable Energy, Energy Efficiency, and  Coal
29        Resources  Development Law of 1997, and Section 13 of the
30        Energy Assistance Act of 1989.
31        (b)  Notwithstanding the provisions  of  subsection  (a),
32    each  Illinois  electric  utility  serving  more  than 12,500
33    customers  in  Illinois  shall  file  tariffs  (i)  reducing,
34    effective August 1, 1998, each component of its base rates to
 
SB24 Enrolled              -26-                LRB9100188JSgc
 1    residential retail customers by 15% from the  base  rates  in
 2    effect  immediately  prior to January 1, 1998 and (ii) if the
 3    public utility provides electric service  to  (A)  more  than
 4    500,000  customers  but less than 1,000,000 customers in this
 5    State  on  January  1,  1999  the  effective  date  of   this
 6    amendatory Act of 1997, reducing, effective May 1, 2002, each
 7    component  of  its base rates to residential retail customers
 8    by an additional 5% from the base rates in effect immediately
 9    prior to January 1, 1998, or (B) at least 1,000,000 customers
10    in this State on January 1, 1999, reducing, effective October
11    1, 2001, each component of  its  base  rates  to  residential
12    retail  customers  by an additional 5% from the base rates in
13    effect  immediately  prior  to  January  1,  1998.  Provided,
14    however,  that  (A)  if   an   electric   utility's   average
15    residential  retail rate is less than or equal to the average
16    residential retail rate for  a  group  of  Midwest  Utilities
17    (consisting  of  all  investor-owned  electric utilities with
18    annual system peaks in excess of 1000 megawatts in the States
19    of Illinois, Indiana,  Iowa,  Kentucky,  Michigan,  Missouri,
20    Ohio, and Wisconsin), based on data reported on Form 1 to the
21    Federal  Energy Regulatory Commission for calendar year 1995,
22    then it shall only be required to file tariffs (i)  reducing,
23    effective August 1, 1998, each component of its base rates to
24    residential  retail  customers  by  5% from the base rates in
25    effect immediately prior to January 1, 1998,  (ii)  reducing,
26    effective  October  1, 2000, each component of its base rates
27    to residential retail customers by the lesser of  5%  of  the
28    base  rates in effect immediately prior to January 1, 1998 or
29    the  percentage  by  which  the  electric  utility's  average
30    residential  retail  rate  exceeds  the  average  residential
31    retail rate of the Midwest Utilities, based on data  reported
32    on  Form  1  to  the Federal Energy Regulatory Commission for
33    calendar year 1999, and (iii) reducing, effective October  1,
34    2002,  each component of its base rates to residential retail
 
SB24 Enrolled              -27-                LRB9100188JSgc
 1    customers by an additional amount equal to the lesser  of  5%
 2    of  the  base rates in effect immediately prior to January 1,
 3    1998 or  the  percentage  by  which  the  electric  utility's
 4    average   residential   retail   rate   exceeds  the  average
 5    residential retail rate of the Midwest  Utilities,  based  on
 6    data  reported  on  Form  1  to the Federal Energy Regulatory
 7    Commission for calendar year 2001; and  (B)  if  the  average
 8    residential  retail  rate  of  an  electric  utility  serving
 9    between 150,000 and 250,000 retail customers in this State on
10    January  1,  1995 is less than or equal to 90% of the average
11    residential retail rate for the Midwest Utilities,  based  on
12    data  reported  on  Form  1  to the Federal Energy Regulatory
13    Commission for calendar year 1995,  then  it  shall  only  be
14    required  to  file  tariffs (i) reducing, effective August 1,
15    1998, each component of its base rates to residential  retail
16    customers  by  2%  from  the base rates in effect immediately
17    prior to January 1, 1998; (ii) reducing, effective October 1,
18    2000, each component of its base rates to residential  retail
19    customers  by  2%  from  the  base rate in effect immediately
20    prior to January  1,  1998;  and  (iii)  reducing,  effective
21    October  1,  2002,  each  component  of  its  base  rates  to
22    residential  retail  customers  by  1% from the base rates in
23    effect  immediately  prior  to  January  1,  1998.  Provided,
24    further, that any electric utility for which  a  decrease  in
25    base  rates has been or is placed into effect between October
26    1, 1996 and the dates specified in the preceding sentences of
27    this subsection, other than pursuant to the  requirements  of
28    this  subsection,  shall  be entitled to reduce the amount of
29    any reduction or reductions in its  base  rates  required  by
30    this  subsection  by  the  amount of such other decrease. The
31    tariffs required under this subsection shall be filed 45 days
32    in advance of the effective date. Notwithstanding anything to
33    the contrary in Section 9-220 of this Act, no restatement  of
34    base  rates  in  conjunction  with  the elimination of a fuel
 
SB24 Enrolled              -28-                LRB9100188JSgc
 1    adjustment clause under that Section shall result in a lesser
 2    decrease in base rates than customers would otherwise receive
 3    under  this  subsection  had  the  electric  utility's   fuel
 4    adjustment clause not been eliminated.
 5        (c)  Any utility reducing its base rates by 15% on August
 6    1,   1998  pursuant  to  subsection  (b)  shall  include  the
 7    following statement on its bills  for  residential  customers
 8    from August 1 through December 31, 1998: "Effective August 1,
 9    1998,  your  rates  have  been reduced by 15% by the Electric
10    Service Customer Choice and Rate Relief Law of 1997 passed by
11    the Illinois General Assembly.".  Any  utility  reducing  its
12    base  rates  by  5% on August 1, 1998, pursuant to subsection
13    (b) shall include the following statement on  its  bills  for
14    residential  customers  from  August  1  through December 31,
15    1998:  "Effective  August  1,  1998,  your  rates  have  been
16    reduced  by  5%  by  the Electric Service Customer Choice and
17    Rate Relief Law  of  1997  passed  by  the  Illinois  General
18    Assembly.".
19        Any  utility  reducing  its base rates by 2% on August 1,
20    1998 pursuant to subsection (b) shall include  the  following
21    statement  on its bills for residential customers from August
22    1 through December 31, 1998: "Effective August 1, 1998,  your
23    rates  have  been  reduced  by  2%  by  the  Electric Service
24    Customer Choice and Rate Relief Law of  1997  passed  by  the
25    Illinois General Assembly.".
26        (d)  During  the  mandatory  transition  period,  but not
27    before January 1, 2000, and notwithstanding   the  provisions
28    of  subsection  (a),  an  electric  utility  may  request  an
29    increase   in   its   base  rates  if  the  electric  utility
30    demonstrates that the 2-year average of its  earned  rate  of
31    return  on  common  equity,  calculated  as  its  net  income
32    applicable  to  common  stock  divided  by the average of its
33    beginning and ending balances of  common  equity  using  data
34    reported  in  the  electric  utility's  Form  1 report to the
 
SB24 Enrolled              -29-                LRB9100188JSgc
 1    Federal Energy Regulatory Commission but adjusted  to  remove
 2    the  effects  of  accelerated depreciation or amortization or
 3    other transition or mitigation measures  implemented  by  the
 4    electric  utility  pursuant to subsection (g) of this Section
 5    and the effect of any refund paid pursuant to subsection  (e)
 6    of  this  Section, is below the 2-year average for the same 2
 7    years of the monthly average yields of 30-year  U.S. Treasury
 8    bonds published by the Board of Governors  of  the    Federal
 9    Reserve  System  in  its  weekly  H.15 Statistical Release or
10    successor  publication.  The  Commission  shall  review   the
11    electric  utility's  request, and may review the justness and
12    reasonableness  of  all  rates  for  tariffed  services,   in
13    accordance  with  the  provisions  of Article IX of this Act,
14    provided that the Commission shall consider  any  special  or
15    negotiated  adjustments  to the revenue requirement agreed to
16    between the electric utility and the  other  parties  to  the
17    proceeding.    In  setting  rates  under  this  Section,  the
18    Commission shall exclude the  costs  and  revenues  that  are
19    associated  with  competitive  services  and  any  billing or
20    pricing experiments conducted under Section 16-106.
21        (e)  For  the  purposes  of  this  subsection   (e)   all
22    calculations  and  comparisons  shall  be  performed  for the
23    Illinois operations of multijurisdictional utilities.  During
24    the  mandatory   transition   period,   notwithstanding   the
25    provisions  of  subsection  (a),  if the 2-year average of an
26    electric utility's earned rate of return  on  common  equity,
27    calculated  as  its  net  income  applicable  to common stock
28    divided by the average of its beginning and  ending  balances
29    of   common  equity  using  data  reported  in  the  electric
30    utility's Form 1 report  to  the  Federal  Energy  Regulatory
31    Commission  but  adjusted  to remove the effect of any refund
32    paid under this  subsection  (e),  and  further  adjusted  to
33    include the annual amortization of any difference between the
34    consideration  received  by  an  affiliated  interest  of the
 
SB24 Enrolled              -30-                LRB9100188JSgc
 1    electric utility in the sale of an asset which had been  sold
 2    or  transferred  by  the  electric  utility to the affiliated
 3    interest subsequent to the effective date of this  amendatory
 4    Act  of  1997  and the consideration for which such asset had
 5    been sold or transferred to  the  affiliated  interest,  with
 6    such  difference to be amortized ratably from the date of the
 7    sale by the affiliated interest to December 31, 2006, exceeds
 8    the 2-year average of the Index for the same 2 years  by  1.5
 9    or  more  percentage  points, the electric utility shall make
10    refunds to customers beginning the first billing day of April
11    in the following year in the manner  described  in  paragraph
12    (3)  of this subsection. For purposes of this subsection (e),
13    the "Index" shall be the sum of (A) the average  for  the  12
14    months  ended  September  30 of the monthly average yields of
15    30-year  U.S.  Treasury  bonds  published  by  the  Board  of
16    Governors of the Federal Reserve System in  its  weekly  H.15
17    Statistical  Release  or  successor publication for each year
18    1998 through 2004, and (B) (i)  4.00  percentage  points  for
19    each  of  the  12-month  periods  ending  September  30, 1998
20    through September 30, 1999 or 8.00 percentage points  if  the
21    electric  utility's  average  residential retail rate is less
22    than or equal to 90% of the average residential  retail  rate
23    for  the  "Midwest  Utilities",  as  that  term is defined in
24    subsection (b) of this Section, based  on  data  reported  on
25    Form  1  to  the  Federal  Energy  Regulatory  Commission for
26    calendar year 1995, and the electric utility  served  between
27    150,000  and  250,000 retail customers on January 1, 1995, or
28    (ii) 7.00 5.00 percentage points for  each  of  the  12-month
29    periods ending September 30, 2000 through September 30, 2004
30    if  the  electric  utility  was providing service to at least
31    1,000,000 customers in this State on January 1, 1999, or 9.00
32    percentage  points  if   the   electric   utility's   average
33    residential  retail  rate is less than or equal to 90% of the
34    average residential retail rate for the "Midwest  Utilities",
 
SB24 Enrolled              -31-                LRB9100188JSgc
 1    as  that  term  is defined in subsection (b) of this Section,
 2    based on data reported  on  Form  1  to  the  Federal  Energy
 3    Regulatory Commission for calendar year 1995 and the electric
 4    utility  served  between 150,000 and 250,000 retail customers
 5    in this State on January  1,  1995,  (iii)  11.00  percentage
 6    points  for each of the 12-month periods ending September 30,
 7    2000 through September 30, 2004, but  only  if  the  electric
 8    utility's  average  residential  retail  rate is less than or
 9    equal to 90% of the average residential retail rate  for  the
10    "Midwest  Utilities",  as  that term is defined in subsection
11    (b) of this Section, based on data reported on Form 1 to  the
12    Federal  Energy Regulatory Commission for calendar year 1995,
13    the electric  utility  served  between  150,000  and  250,000
14    retail  customers  in  this State on January 1, 1995, and the
15    electric utility offers delivery services on or  before  June
16    1,  2000 to retail customers whose annual electric energy use
17    comprises 33% of the kilowatt hour sales  to  that  group  of
18    retail customers that are classified under Division D, Groups
19    20  through 39 of the Standard Industrial Classifications set
20    forth  in  the  Standard  Industrial  Classification   Manual
21    published  by  the  United  States  Office  of Management and
22    Budget, excluding the kilowatt hour sales to those  customers
23    that  are  eligible for delivery services pursuant to Section
24    16-104(a)(1)(i),  and  offers  delivery   services   to   its
25    remaining  retail  customers  classified  under  Division  D,
26    Groups  20  through  39  on  or  before October 1, 2000, and,
27    provided further, that the electric utility  commits  not  to
28    petition  pursuant to Section 16-108(f) for entry of an order
29    by  the  Commission  authorizing  the  electric  utility   to
30    implement  transition  charges for an additional period after
31    December 31, 2006, or (iv) 5.00 percentage points for each of
32    the  12-month  periods  ending  September  30,  2000  through
33    September 30, 2004 for all other electric utilities  or  7.00
34    percentage points for such utilities for each of the 12-month
 
SB24 Enrolled              -32-                LRB9100188JSgc
 1    periods  ending September 30, 2000 through September 30, 2004
 2    for any such utility that commits not to petition pursuant to
 3    Section 16-108(f) for entry of an  order  by  the  Commission
 4    authorizing  the  electric  utility  to  implement transition
 5    charges for an additional period after December 31, 2006.
 6             (1)  For purposes of this  subsection  (e),  "excess
 7        earnings"  means  the  difference  between (A) the 2-year
 8        average of the electric utility's earned rate  of  return
 9        on  common equity, less (B) the 2-year average of the sum
10        of (i) the Index applicable to each of the  2  years  and
11        (ii)   1.5  percentage  points;  provided,  that  "excess
12        earnings" shall never be less than zero.
13             (2)  On or before March 31 of each year 2000 through
14        2005 each electric utility shall file a report  with  the
15        Commission  showing  its  earned rate of return on common
16        equity, calculated in accordance  with  this  subsection,
17        for  the  preceding calendar year and the average for the
18        preceding 2 calendar years.
19             (3)  If an electric  utility  has  excess  earnings,
20        determined  in  accordance with paragraphs (1) and (2) of
21        this subsection, the refunds which the  electric  utility
22        shall  pay   to its customers beginning the first billing
23        day of April in the following year  shall  be  calculated
24        and applied as follows:
25                  (i)  The  electric  utility's  excess  earnings
26             shall  be multiplied by the average of the beginning
27             and ending balances of the electric utility's common
28             equity  for  the  2-year  period  in  which   excess
29             earnings occurred.
30                  (ii)  The  result  of  the  calculation  in (i)
31             shall be multiplied by 0.50 and then  divided  by  a
32             number  equal  to  1  minus  the  electric utility's
33             composite federal and State income tax rate.
34                  (iii)  The result of the  calculation  in  (ii)
 
SB24 Enrolled              -33-                LRB9100188JSgc
 1             shall   be  divided  by  the  sum  of  the  electric
 2             utility's projected  total  kilowatt-hour  sales  to
 3             retail customers plus projected kilowatt-hours to be
 4             delivered  to delivery services customers over a one
 5             year period beginning with the first billing date in
 6             April in the succeeding year to  determine  a  cents
 7             per kilowatt-hour refund factor.
 8                  (iv)  The cents per kilowatt-hour refund factor
 9             calculated   in  (iii)  shall  be  credited  to  the
10             electric utility's customers by applying the  factor
11             on    the   customer's   monthly   bills   to   each
12             kilowatt-hour sold  or  delivered  until  the  total
13             amount   calculated   in   (ii)  has  been  paid  to
14             customers.
15        (f)  During the mandatory transition period, an  electric
16    utility  may  file  revised tariffs reducing the price of any
17    tariffed service offered by  the  electric  utility  for  all
18    customers  taking  that  tariffed  service,  which  shall  be
19    effective 7 days after filing.
20        (g)  During  the mandatory transition period, an electric
21    utility may, without obtaining any approval of the Commission
22    other  than  that  provided  for  in  this   subsection   and
23    notwithstanding  any  other provision of this Act or any rule
24    or regulation of  the  Commission  that  would  require  such
25    approval:
26             (1)  implement a reorganization, other than a merger
27        of 2 or more public utilities as defined in Section 3-105
28        or their holding companies;
29             (2)  retire generating plants from service;
30             (3)  sell,   assign,  lease  or  otherwise  transfer
31        assets to an affiliated or  unaffiliated  entity  and  as
32        part  of  such transaction enter into service agreements,
33        power purchase agreements, or other agreements  with  the
34        transferee; provided, however, that the prices, terms and
 
SB24 Enrolled              -34-                LRB9100188JSgc
 1        conditions  of  any  power  purchase  agreement  must  be
 2        approved  or  allowed  into  effect by the Federal Energy
 3        Regulatory Commission; or
 4             (4)  use  any  accelerated  cost   recovery   method
 5        including     accelerated    depreciation,    accelerated
 6        amortization or other capital recovery methods, or record
 7        reductions to the original cost of its assets.
 8        In order to implement a reorganization, retire generating
 9    plants from service, or  sell,  assign,  lease  or  otherwise
10    transfer  assets  pursuant  to  this  Section,  the  electric
11    utility  shall comply with subsections (c) and (d) of Section
12    16-128, if applicable, and subsection (k) of this Section, if
13    applicable, and provide the Commission with at least 30  days
14    notice  of  the proposed reorganization or transaction, which
15    notice shall include the following information:
16                  (i)  a complete statement of the  entries  that
17             the  electric  utility  will  make  on its books and
18             records  of  account  to  implement   the   proposed
19             reorganization   or   transaction  together  with  a
20             certification from an independent  certified  public
21             accountant  that  such  entries  are  in accord with
22             generally accepted accounting principles and, if the
23             Commission has previously  approved  guidelines  for
24             cost   allocations   between  the  utility  and  its
25             affiliates,   a   certification   from   the   chief
26             accounting officer of the utility that such  entries
27             are in accord with those cost allocation guidelines;
28                  (ii)  a description of how the electric utility
29             will  use proceeds of any sale, assignment, lease or
30             transfer to  retire  debt  or  otherwise  reduce  or
31             recover  the  costs  of  services  provided  by such
32             electric utility;
33                  (iii)  a  list  of  all  federal  approvals  or
34             approvals required from departments and agencies  of
 
SB24 Enrolled              -35-                LRB9100188JSgc
 1             this  State,  other  than  the  Commission, that the
 2             electric  utility  has   or   will   obtain   before
 3             implementing the reorganization or transaction;
 4                  (iv)  an irrevocable commitment by the electric
 5             utility  that  it  will  not,  as  a  result  of the
 6             transaction, impose any stranded cost  charges  that
 7             it  might  otherwise  be  allowed  to  charge retail
 8             customers  under  federal  law   or   increase   the
 9             transition  charges that it is otherwise entitled to
10             collect under this Article XVI; and
11                  (v)  if the electric utility proposes to  sell,
12             assign,  lease  or  otherwise  transfer a generating
13             plant that  brings  the  amount  of  net  dependable
14             generating  capacity  transferred  pursuant  to this
15             subsection to an amount equal to or greater than 15%
16             of the electric utility's net dependable capacity as
17             of the effective date  of  this  amendatory  Act  of
18             1997,  and  enters  into  a power purchase agreement
19             with the entity to which such  generating  plant  is
20             sold,  assigned,  leased,  or otherwise transferred,
21             the electric  utility  also  agrees,  if   its  fuel
22             adjustment  clause  has not already been eliminated,
23             to  eliminate  its   fuel   adjustment   clause   in
24             accordance  with subsection (b) of Section 9-220 for
25             a period of time equal to the  length  of  any  such
26             power  purchase agreement or successor agreement, or
27             until January 1, 2005, whichever is longer;  if  the
28             capacity  of the generating plant so transferred and
29             related power purchase agreement does not result  in
30             the  elimination of the fuel adjustment clause under
31             this subsection, and the fuel adjustment clause  has
32             not  already  been  eliminated, the electric utility
33             shall agree  that  the  costs  associated  with  the
34             transferred   plant   that   are   included  in  the
 
SB24 Enrolled              -36-                LRB9100188JSgc
 1             calculation of the  rate  per  kilowatt-hour  to  be
 2             applied  pursuant  to  the  electric  utility's fuel
 3             adjustment  clause  during  such  period  shall  not
 4             exceed the per kilowatt-hour  cost  associated  with
 5             such  generating  plant  included  in  the  electric
 6             utility's  fuel  adjustment  clause  during the full
 7             calendar year  preceding  the  transfer,  with  such
 8             limit  to  be   adjusted each year thereafter by the
 9             Gross Domestic Product Implicit Price Deflator.
10                  (vi)  In  addition,  if  the  electric  utility
11             proposes to sell, assign, or lease, (A)  either  (1)
12             an amount of generating plant that brings the amount
13             of  net  dependable  generating capacity transferred
14             pursuant to this subsection to an amount equal to or
15             greater than 15% of its net dependable  capacity  on
16             the  effective  date of this amendatory Act of 1997,
17             or (2) one or more generating plants  with  a  total
18             net  dependable  capacity  of 1100 megawatts, or (B)
19             transmission and distribution facilities that either
20             (1)   bring   the   amount   of   transmission   and
21             distribution facilities transferred pursuant to this
22             subsection to an amount equal to or greater than 15%
23             of the electric utility's total depreciated original
24             cost investment in such facilities, or (2) represent
25             an investment  of  $25,000,000  in  terms  of  total
26             depreciated  original  cost,  the  electric  utility
27             shall provide, in addition to the information listed
28             in  subparagraphs  (i)  through  (v),  the following
29             information: (A) a description of how  the  electric
30             utility will meet its service obligations under this
31             Act  in  a  safe  and  reliable  manner  and (B) the
32             electric utility's projected earned rate  of  return
33             on  common  equity,  calculated  in  accordance with
34             subsection (d) of this Section, for each  year  from
 
SB24 Enrolled              -37-                LRB9100188JSgc
 1             the  date  of  the  notice through December 31, 2004
 2             both with and without the proposed transaction.   If
 3             the  Commission has not issued an order initiating a
 4             hearing on the proposed transaction within  30  days
 5             after  the  date  the  electric  utility's notice is
 6             filed, the transaction  shall  be  deemed  approved.
 7             The   Commission  may,  after  notice  and  hearing,
 8             prohibit the proposed transaction if it makes either
 9             or both of the  following  findings:  (1)  that  the
10             proposed   transaction   will  render  the  electric
11             utility unable to provide its tariffed services in a
12             safe and reliable manner, or (2)  that  there  is  a
13             strong  likelihood that consummation of the proposed
14             transaction will  result  in  the  electric  utility
15             being  entitled  to  request an increase in its base
16             rates  during  the   mandatory   transition   period
17             pursuant  to  subsection  (d)  of this Section.  Any
18             hearing  initiated  by  the  Commission   into   the
19             proposed  transaction  shall  be  completed, and the
20             Commission's final order  approving  or  prohibiting
21             the proposed transaction shall be entered, within 90
22             days  after  the  date the electric utility's notice
23             was  filed.  Provided,   however,   that   a   sale,
24             assignment,  or  lease of transmission facilities to
25             an  independent  system  operator  that  meets   the
26             requirements  of Section 16-126 shall not be subject
27             to Commission approval under this Section.
28                  In any proceeding conducted by  the  Commission
29             pursuant  to  this  subparagraph  (vi), intervention
30             shall be limited to parties with a  direct  interest
31             in  the  transaction  which  is  the  subject of the
32             hearing and any statutory consumer protection agency
33             as defined in subsection  (d)  of  Section  9-102.1.
34             Notwithstanding  the provisions of Section 10-113 of
 
SB24 Enrolled              -38-                LRB9100188JSgc
 1             this Act, any application seeking  rehearing  of  an
 2             order  issued  under this subparagraph (vi), whether
 3             filed by the electric utility or by  an  intervening
 4             party,  shall  be filed within 10 days after service
 5             of the order.
 6        The Commission shall not in any subsequent proceeding  or
 7    otherwise,  review such a reorganization or other transaction
 8    authorized by this Section, but shall retain the authority to
 9    allocate costs as stated in Section 16-111(i). An  entity  to
10    which an electric utility sells, assigns, leases or transfers
11    assets pursuant to this subsection (g) shall not, as a result
12    of  the  transactions  specified  in  this subsection (g), be
13    deemed a public utility as defined in Section 3-105.  Nothing
14    in this subsection (g) shall change any requirement under the
15    jurisdiction of the Illinois  Department  of  Nuclear  Safety
16    including,  but  not limited to, the payment of fees. Nothing
17    in this subsection (g) shall exempt a utility from  obtaining
18    a  certificate  pursuant to Section 8-406 of this Act for the
19    construction of a new electric generating facility.   Nothing
20    in this subsection (g) is intended to exempt the transactions
21    hereunder   from  the  operation  of  the  federal  or  State
22    antitrust laws. Nothing in this subsection (g) shall  require
23    an  electric  utility to use the procedures specified in this
24    subsection for any of the transactions specified herein.  Any
25    other procedure available under this Act may, at the electric
26    utility's election, be used for any such transaction.
27        (h)  During  the   mandatory   transition   period,   the
28    Commission   shall   not   establish  or  use  any  rates  of
29    depreciation, which for purposes  of  this  subsection  shall
30    include  amortization,  for  any  electric utility other than
31    those established pursuant to subsection (c) of Section 5-104
32    of this Act or utilized pursuant to subsection  (g)  of  this
33    Section.  Provided, however, that in any proceeding to review
34    an electric utility's rates for tariffed services pursuant to
 
SB24 Enrolled              -39-                LRB9100188JSgc
 1    Section  9-201,  9-202,  9-250  or 16-111(d) of this Act, the
 2    Commission may establish new rates of  depreciation  for  the
 3    electric  utility  in  the same manner provided in subsection
 4    (d) of  Section  5-104  of  this  Act.  An  electric  utility
 5    implementing  an  accelerated  cost recovery method including
 6    accelerated depreciation, accelerated amortization  or  other
 7    capital  recovery  methods,  or  recording  reductions to the
 8    original cost of its assets, pursuant to  subsection  (g)  of
 9    this  Section,  shall  file  a  statement with the Commission
10    describing  the  accelerated  cost  recovery  method  to   be
11    implemented  or  the  reduction  in  the original cost of its
12    assets to be recorded.  Upon the filing  of  such  statement,
13    the  accelerated cost recovery method or the reduction in the
14    original cost of assets shall be deemed to be approved by the
15    Commission as  though  an  order  had  been  entered  by  the
16    Commission.
17        (i)  Subsequent  to  the mandatory transition period, the
18    Commission, in any proceeding to establish rates and  charges
19    for  tariffed  services offered by an electric utility, shall
20    consider only (1) the then  current  or  projected  revenues,
21    costs, investments and cost of capital directly or indirectly
22    associated  with the provision of such tariffed services; (2)
23    collection of transition charges in accordance with  Sections
24    16-102  and  16-108 of this Act; (3) recovery of any employee
25    transition costs as described in  Section  16-128  which  the
26    electric  utility  is continuing to incur, including recovery
27    of any unamortized portion of such costs previously  incurred
28    or committed, with such costs to be equitably allocated among
29    bundled  services,  delivery  services,  and  contracts  with
30    alternative  retail  electric  suppliers; and (4) recovery of
31    the costs associated with the electric  utility's  compliance
32    with  decommissioning  funding  requirements;  and  shall not
33    consider any other revenues, costs, investments  or  cost  of
34    capital of either the electric utility or of any affiliate of
 
SB24 Enrolled              -40-                LRB9100188JSgc
 1    the  electric  utility  that  are  not  associated  with  the
 2    provision   of  tariffed  services.   In  setting  rates  for
 3    tariffed services, the Commission  shall  equitably  allocate
 4    joint  and  common costs and investments between the electric
 5    utility's competitive and tariffed services.  In  determining
 6    the  justness  and  reasonableness  of the electric power and
 7    energy component of an electric utility's rates for  tariffed
 8    services  subsequent  to  the mandatory transition period and
 9    prior to the time that the provision of such  electric  power
10    and  energy  is  declared  competitive,  the Commission shall
11    consider the extent to which the electric utility's  tariffed
12    rates  for  such component for each customer class exceed the
13    market value determined pursuant to Section 16-112,  and,  if
14    the electric power and energy component of such tariffed rate
15    exceeds  the  market  value by more than 10% for any customer
16    class, may establish such electric power and energy component
17    at a rate equal to the market value plus  10%.  In  any  such
18    case,  the Commission may also elect to extend the provisions
19    of Section 16-111(e) for any period  in  which  the  electric
20    utility  is  collecting transition charges, using information
21    applicable to such period.
22        (j)  During the mandatory transition period, an  electric
23    utility  may  elect  to  transfer  to  a non-operating income
24    account under the Commission's  Uniform  System  of  Accounts
25    either or both of (i) an amount of unamortized investment tax
26    credit  that  is  in  addition to the ratable amount which is
27    credited to the electric utility's operating  income  account
28    for  the  year  in  accordance  with  Section 46(f)(2) of the
29    federal Internal Revenue Code of 1986, as in effect prior  to
30    P.L.  101-508, or (ii) "excess tax reserves", as that term is
31    defined in Section 203(e)(2)(A) of the federal Tax Reform Act
32    of 1986, provided that (A) the  amount  transferred  may  not
33    exceed  the amount of the electric utility's assets that were
34    created  pursuant  to  Statement  of   Financial   Accounting
 
SB24 Enrolled              -41-                LRB9100188JSgc
 1    Standards  No.  71 which the electric utility has written off
 2    during the mandatory transition period, and (B) the  transfer
 3    shall not be effective until approved by the Internal Revenue
 4    Service.   An  electric  utility  electing  to  make  such  a
 5    transfer  shall  file a statement with the Commission stating
 6    the amount and timing of the transfer for which it intends to
 7    request approval of the Internal Revenue Service, along  with
 8    a  copy  of  its  proposed  request  to  the Internal Revenue
 9    Service for a ruling.  The Commission shall  issue  an  order
10    within 14 days after the electric utility's filing approving,
11    subject  to  receipt  of  approval  from the Internal Revenue
12    Service, the proposed transfer.
13        (k)  If an electric utility is selling or transferring to
14    a single buyer 5 or more generating plants  located  in  this
15    State  with a total net dependable capacity of 5000 megawatts
16    or more pursuant to subsection (g) of this  Section  and  has
17    obtained  a  sale price or consideration that exceeds 200% of
18    the book value of such  plants,  the  electric  utility  must
19    provide  to  the  Governor,  the  President  of  the Illinois
20    Senate, the Minority  Leader  of  the  Illinois  Senate,  the
21    Speaker  of  the  Illinois  House of Representatives, and the
22    Minority Leader of the Illinois House of  Representatives  no
23    later  than  15 days after filing its notice under subsection
24    (g) of this Section or 5 days after the date  on  which  this
25    subsection  (k)  becomes  law,  whichever is later, a written
26    commitment in which such electric utility agrees to expend $2
27    billion outside the corporate limits of any municipality with
28    1,000,000 or more inhabitants within such electric  utility's
29    service  area,  over  a  6-year  period  beginning  with  the
30    calendar  year  in  which  the  notice is filed, on projects,
31    programs, and improvements within its service  area  relating
32    to   transmission   and   distribution   including,   without
33    limitation, infrastructure expansion, repair and replacement,
34    capital   investments,   operations   and   maintenance,  and
 
SB24 Enrolled              -42-                LRB9100188JSgc
 1    vegetation management.
 2    (Source: P.A. 90-561, eff. 12-16-97; 90-563, eff. 12-16-97.)

 3        (220 ILCS 5/16-111.1 new)
 4        Sec. 16-111.1.  Illinois Clean Energy Community Trust.
 5        (a)  An electric utility which has  sold  or  transferred
 6    generating  facilities  in  a transaction to which subsection
 7    (k) of Section 16-111 applies is authorized to  establish  an
 8    Illinois  clean  energy community trust or foundation for the
 9    purposes of providing financial  support  and  assistance  to
10    entities,  public  or  private,  within the State of Illinois
11    including, but not limited  to,  units  of  State  and  local
12    government,   educational   institutions,  corporations,  and
13    charitable,   educational,   environmental   and    community
14    organizations,  for  programs  and  projects that benefit the
15    public by improving energy efficiency,  developing  renewable
16    energy  resources,  supporting  other energy related projects
17    that  improve  the   State's   environmental   quality,   and
18    supporting  projects  and  programs  intended  to preserve or
19    enhance the natural habitats and wildlife areas of the State.
20    Provided, however, that the trust or foundation  funds  shall
21    not  be  used for the remediation of environmentally impaired
22    property.   The  trust  or  foundation  may  also  assist  in
23    identifying   other   energy    and    environmental    grant
24    opportunities.
25        (b)  Such  trust  or  foundation  shall  be governed by a
26    declaration of trust or articles of incorporation and  bylaws
27    which shall, at a minimum, provide that:
28             (1)  There  shall  be 6 voting trustees of the trust
29        or foundation, one of whom  shall  be  appointed  by  the
30        Governor, one of whom shall be appointed by the President
31        of the Illinois Senate, one of whom shall be appointed by
32        the  Minority  Leader of the Illinois Senate, one of whom
33        shall be appointed by the Speaker of the  Illinois  House
 
SB24 Enrolled              -43-                LRB9100188JSgc
 1        of Representatives, one of whom shall be appointed by the
 2        Minority Leader of the Illinois House of Representatives,
 3        and  one  of  whom  shall  be  appointed  by the electric
 4        utility establishing the trust  or  foundation,  provided
 5        that the voting trustee appointed by the utility shall be
 6        a  representative  of  a  recognized environmental action
 7        group selected by the utility.  The Governor shall select
 8        one of the 6 voting trustees, once appointed, to  be  the
 9        first  chairman  of  the  trust or foundation pending the
10        first election of officers. In addition, there shall be 4
11        non-voting trustees, one of whom shall  be  appointed  by
12        the  Director of the Department of Commerce and Community
13        Affairs, one of whom shall be appointed by  the  Director
14        of  the  Illinois Environmental Protection Agency, one of
15        whom shall be appointed by the Director of the Department
16        of Natural Resources, and one of whom shall be  appointed
17        by   the  electric  utility  establishing  the  trust  or
18        foundation,  provided   that   the   non-voting   trustee
19        appointed  by the utility shall bring financial expertise
20        to the trust or foundation  and  shall  have  appropriate
21        credentials therefor.
22             (2)  All  voting trustees and the non-voting trustee
23        with   financial   expertise   shall   be   entitled   to
24        compensation for their services  as  trustees,  provided,
25        however,  that  no  member of the General Assembly and no
26        employee of the electric utility establishing  the  trust
27        or  foundation  serving as a voting trustee shall receive
28        any compensation for his or her services  as  a  trustee,
29        and   provided  further  that  the  compensation  to  the
30        chairman of the trust shall not exceed  $25,000  annually
31        and  the  compensation  to  any  other  trustee shall not
32        exceed $20,000 annually.  All trustees shall be  entitled
33        to  reimbursement  for  reasonable  expenses  incurred on
34        behalf of the trust in the performance of their duties as
 
SB24 Enrolled              -44-                LRB9100188JSgc
 1        trustees.  All such compensation and reimbursements shall
 2        be paid out of the trust.
 3             (3)  Trustees shall  be  appointed  within  30  days
 4        after  the  creation of the trust or foundation and shall
 5        serve for a term of 5 years commencing upon the  date  of
 6        their  respective  appointments,  until  their respective
 7        successors are appointed and qualified.
 8             (4)  A vacancy in the office  of  trustee  shall  be
 9        filled  by  the person holding the office responsible for
10        appointing the trustee whose death or resignation creates
11        the vacancy, and a trustee appointed to  fill  a  vacancy
12        shall  serve  the  remainder  of  the term of the trustee
13        whose resignation or death created the vacancy.
14             (5)  The  trust  or   foundation   shall   have   an
15        indefinite  term,  and shall terminate at such time as no
16        trust assets remain.
17             (6)  The trust or foundation shall be funded in  the
18        minimum  amount  of $250,000,000, with the allocation and
19        disbursement of funds for the various purposes for  which
20        the  trust  or foundation is established to be determined
21        by the trustees in accordance  with  the  declaration  of
22        trust  or  the  articles  of  incorporation  and  bylaws;
23        provided,  however, that this amount may be reduced by up
24        to $25,000,000 if, at the time the trust or foundation is
25        funded, a corresponding  amount  is  contributed  by  the
26        electric  utility establishing the trust or foundation to
27        the Board of Trustees of Southern Illinois University for
28        the purpose of funding programs or  projects  related  to
29        clean  coal  and provided further that $25,000,000 of the
30        amount contributed to the trust or  foundation  shall  be
31        available  to  fund programs or projects related to clean
32        coal.
33             (7)  The trust or foundation shall be authorized  to
34        employ  an  executive  director  and  other employees, to
 
SB24 Enrolled              -45-                LRB9100188JSgc
 1        enter into leases, contracts  and  other  obligations  on
 2        behalf  of the trust or foundation, and to incur expenses
 3        that the trustees deem necessary or appropriate  for  the
 4        fulfillment  of  the  purposes  for  which  the  trust or
 5        foundation  is  established,  provided,   however,   that
 6        salaries  and  administrative expenses incurred on behalf
 7        of the trust or foundation shall not exceed  $500,000  in
 8        the  first  fiscal  year after the trust or foundation is
 9        established and  shall  not  exceed  $1,000,000  in  each
10        subsequent fiscal year.
11             (8)  The  trustees  may  create and appoint advisory
12        boards  or   committees   to   assist   them   with   the
13        administration  of the trust or foundation, and to advise
14        and  make   recommendations   to   them   regarding   the
15        contribution  and disbursement of the trust or foundation
16        funds.
17        (c)(1)  In addition to the allocation and disbursement of
18        funds for the purposes set forth  in  subsection  (a)  of
19        this  Section,  the  trustees  of the trust or foundation
20        shall annually contribute funds in amounts set  forth  in
21        subparagraph  (2)  of  this  subsection  to  the Citizens
22        Utility Board created by the Citizens Utility Board  Act;
23        provided,  however,  that  any  such  funds shall be used
24        solely for the representation of the interests of utility
25        consumers before the Illinois  Commerce  Commission,  the
26        Federal  Energy  Regulatory  Commission,  and the Federal
27        Communications  Commission  and  for  the  provision   of
28        consumer  education  on utility service and prices and on
29        benefits and methods of  energy  conservation.  Provided,
30        however,  that  no  part  of  such funds shall be used to
31        support  (i)  any  lobbying  activity,  (ii)   activities
32        related   to  fundraising,  (iii)  advertising  or  other
33        marketing efforts regarding a particular utility, or (iv)
34        solicitation of support for, or advocacy of, a particular
 
SB24 Enrolled              -46-                LRB9100188JSgc
 1        position regarding any specific utility  or  a  utility's
 2        docketed proceeding.
 3             (2)  In  the  calendar  year  in  which the trust or
 4        foundation is first funded, the trustees shall contribute
 5        $1,000,000 to the Citizens Utility Board within  60  days
 6        after  such trust or foundation is established; provided,
 7        however, that  such  contribution  shall  be  made  after
 8        December  31,  1999.   In  each  of  the 6 calendar years
 9        subsequent to the first contribution,  if  the  trust  or
10        foundation is in existence, the trustees shall contribute
11        to  the  Citizens  Utility  Board  an amount equal to the
12        total expenditures by  such  organization  in  the  prior
13        calendar  year,  as  set forth in the report filed by the
14        Citizens Utility Board with the chairman of such trust or
15        foundation  as  required  by  subparagraph  (3)  of  this
16        subsection.  Such subsequent contributions shall be  made
17        within  30  days  of  submission  by the Citizens Utility
18        Board of such report to the  Chairman  of  the  trust  or
19        foundation, but in no event shall any annual contribution
20        by  the  trustees  to  the  Citizens Utility Board exceed
21        $1,000,000.  Following such 7-year  period,  an  Illinois
22        statutory  consumer  protection  agency  may petition the
23        trust   or   foundation   for   contributions   to   fund
24        expenditures of the type identified in paragraph (1), but
25        in no event shall annual contributions by  the  trust  or
26        foundation for such expenditures exceed $1,000,000.
27             (3)  The  Citizens Utility Board shall file a report
28        with the chairman of such trust or  foundation  for  each
29        year  in  which  it  expends  any funds received from the
30        trust or foundation  setting  forth  the  amount  of  any
31        expenditures  (regardless of the source of funds for such
32        expenditures)  for:  (i)  the   representation   of   the
33        interests   of  utility  consumers  before  the  Illinois
34        Commerce  Commission,  the  Federal   Energy   Regulatory
 
SB24 Enrolled              -47-                LRB9100188JSgc
 1        Commission,  and  the  Federal Communications Commission,
 2        and (ii) the provision of consumer education  on  utility
 3        service  and prices and on benefits and methods of energy
 4        conservation.  Such report  shall  separately  state  the
 5        total   amount   of  expenditures  for  the  purposes  or
 6        activities identified by  items  (i)  and  (ii)  of  this
 7        paragraph, the name and address of the external recipient
 8        of  any such expenditure, if applicable, and the specific
 9        purposes or activities (including  internal  purposes  or
10        activities)  for  which  each  expenditure was made.  Any
11        report required by this subsection shall  be  filed  with
12        the  chairman  of  such trust or foundation no later than
13        March 31 of the year immediately following the  year  for
14        which the report is required.

15        (220 ILCS 5/16-111.2 new)
16        Sec.  16-111.2.   Provisions  related to proposed utility
17    transactions.
18        (a)  The General Assembly finds:
19             (1)  A transaction as described in paragraph (3)  of
20        this   subsection   (a)   will   contribute  to  improved
21        reliability of the electric  supply  system  in  Illinois
22        which is one of the key purposes of the Illinois Electric
23        Service Customer Choice and Rate Relief Law of 1997.
24             (2)  A  transaction as described in paragraph (3) of
25        this subsection  (a)  is  likely  to  promote  additional
26        investment  in  the existing generating assets and in the
27        development  of   additional   generation   capacity   in
28        Illinois,  and  such change in ownership is in the public
29        interest, consistent with  the  intent  of  the  Illinois
30        Electric  Service  Customer Choice and Rate Relief Law of
31        1997 and beneficial for the citizens of this State.
32             (3)  As of the date on which this amendatory Act  of
33        1999  becomes  law, an electric utility providing service
 
SB24 Enrolled              -48-                LRB9100188JSgc
 1        to more  than  1,000,000  customers  in  this  State  has
 2        proposed  to sell or transfer to a single buyer 5 or more
 3        generating plants with a total net dependable capacity of
 4        5000 megawatts or more  pursuant  to  subsection  (g)  of
 5        Section 16-111.
 6             (4)  Such  electric  utility anticipates receiving a
 7        sale  price  or  consideration  as  a  result   of   such
 8        transaction  exceeding  200%  of  the book value of these
 9        plants.
10             (5)  Such electric  utility  has  presented  to  the
11        Governor  and  the  leaders  of  the  General  Assembly a
12        written commitment in which such electric utility  agrees
13        to  expend $2,000,000,000 outside the corporate limits of
14        any  municipality  with  1,000,000  or  more  inhabitants
15        within such  electric  utility's  service  area,  over  a
16        6-year  period  beginning  with  this  calendar  year  on
17        projects,  programs  and  improvements within its service
18        area relating to transmission and distribution including,
19        without limitation, infrastructure expansion, repair  and
20        replacement,    capital   investments,   operations   and
21        maintenance, and vegetation management.
22             (6)  Such electric utility has  committed  that,  if
23        the  sale  or  transfer  contemplated by paragraph (3) of
24        this subsection is consummated on or before December  31,
25        1999,  the  electric  utility  shall  make  contributions
26        totaling  $250,000,000 to entities within this State for,
27        among  other  purposes,  environmental  and  clean   coal
28        initiatives   pursuant   to   Section   16-111.1,   which
29        commitment  includes a contribution of $25,000,000 to the
30        Board of Trustees of Southern Illinois University for the
31        purpose of funding programs or projects related to  clean
32        coal.
33        (b)  That, in light of the findings in paragraphs (1) and
34    (2)   of   subsection   (a)   and,   in  this  instance,  the
 
SB24 Enrolled              -49-                LRB9100188JSgc
 1    circumstances described in  paragraphs  (3)  through  (6)  of
 2    subsection  (a)  and  otherwise,  the General Assembly hereby
 3    finds that allowing the generating facilities being  acquired
 4    to  be  eligible  facilities  under  the  provisions  of  the
 5    National  Energy  Policy  Act  of  1992  that apply to exempt
 6    wholesale generators (A) will benefit consumers;  (B)  is  in
 7    the public interest; and (C) does not violate the law of this
 8    State.
 9        (c)  Nothing in this Section shall have any effect on the
10    authority  of  the Commission under subsection (g) of Section
11    16-111 of this Act.

12        (220 ILCS 5/16-114.1 new)
13        Sec. 16-114.1.   Recovery  of  decommissioning  costs  in
14    connection with nuclear power plant sale agreement.
15        (a)  An  electric  utility  owning  a single-unit nuclear
16    power plant located  in  this  State  which  enters  into  an
17    agreement to sell the nuclear power plant and as part of such
18    agreement   agrees:    (i)   to   make   contributions  to  a
19    tax-qualified  decommissioning  trust  or  non-tax  qualified
20    decommissioning trust, or both, as defined in Section 8-508.1
21    for the nuclear power plant, in specified amounts  or  for  a
22    specified  period  of time, after the sale is consummated, or
23    (ii) to purchase an insurance instrument which  provides  for
24    the   payment   of   all   or   a  specified  amount  of  the
25    decommissioning costs of the nuclear power  plant,  shall  be
26    entitled,   in  the  case  of  item  (i),  to  maintain  such
27    decommissioning trusts for  the  purpose  of  receiving  such
28    contributions   after   the  consummation  of  the  sale,  to
29    implement revisions to its decommissioning rate in accordance
30    with subsection (b) of this Section,  and  to  transfer  such
31    decommissioning  trusts, or the balance in the trusts, to the
32    buyer of the nuclear  power  plant  in  accordance  with  the
33    agreement of sale, and in the case of item (ii), to implement
 
SB24 Enrolled              -50-                LRB9100188JSgc
 1    revisions  to  its  decommissioning  rate  in accordance with
 2    subsection (c) of this Section.
 3        (b)  An electric utility entering into  an  agreement  of
 4    sale  described in subsection (a)(i) of this Section shall be
 5    entitled to file a petition with the Commission for entry  of
 6    an order authorizing the electric utility (i) to amortize its
 7    liability for decommissioning costs pursuant to the agreement
 8    of sale over the period of time in which the electric utility
 9    is   required   by   such   agreement   to   make  additional
10    contributions to the tax-qualified decommissioning trust, the
11    non-tax qualified decommissioning trust, or both, and (ii) to
12    revise its decommissioning rate to a level that will recover,
13    over the time period specified in the agreement of  sale,  an
14    annual   amount   equal  to  the  electric  utility's  annual
15    contributions  to  the  decommissioning  trusts   which   are
16    required   by   the  agreement  of  sale  multiplied  by  the
17    percentage of the output of the nuclear power plant which the
18    agreement of sale obligates the electric utility to  purchase
19    in each such year.
20        (c)  An  electric  utility  entering into an agreement of
21    sale described in subsection (a)(ii)  shall  be  entitled  to
22    file  a  petition  with  the Commission for entry of an order
23    authorizing   the   electric   utility    to    revise    its
24    decommissioning  rate  to  a  level that will recover, over 5
25    years,  the  electric  utility's  cost  of   purchasing   the
26    insurance  instrument  multiplied  by  the  percentage of the
27    output of the nuclear power plant which the agreement of sale
28    obligates the electric utility to purchase in each such year.
29        (d)  An   electric   utility's   petition   pursuant   to
30    subsection (b) or subsection (c) shall state  the  percentage
31    of  the output of the nuclear power plant which the agreement
32    of sale obligates the electric utility to purchase  from  the
33    new owner of the nuclear power plant in each of the years for
34    which  the electric utility is seeking to implement a revised
 
SB24 Enrolled              -51-                LRB9100188JSgc
 1    decommissioning rate. The electric utility's  petition  shall
 2    also state that the electric utility agrees, as conditions of
 3    the  Commission's order and the implementation of the revised
 4    decommissioning rate, (i)  to  file  revisions,  pursuant  to
 5    Section  16-111(f),  to  its  base rate tariffs applicable to
 6    retail  customers   subject   to   the   electric   utility's
 7    decommissioning  rate reducing such tariffs, and (ii) to file
 8    revisions to its  transition  charge  tariffs  applicable  to
 9    retail   customers   subject   to   the   electric  utility's
10    decommissioning  rate  incorporating  a   credit   into   the
11    calculation  of  the electric utility's transition charges in
12    accordance with  this  subsection.   The  reduction  and  the
13    credit shall be in an amount per kilowatt-hour of electricity
14    sold  or  delivered  to  retail  customers  equal  to (i) the
15    electric utility's decommissioning  rate  authorized  by  the
16    Commission's  order  in accordance with subsection (b)(ii) or
17    (c), as applicable, less (ii) the  product  of  the  electric
18    utility's decommissioning rate in effect immediately prior to
19    the  agreement  of  sale  multiplied by the percentage of the
20    output of the nuclear power plant which the agreement of sale
21    obligates the electric utility to purchase from the new owner
22    of the nuclear power plant.  The Commission  shall  issue  an
23    order granting the petition within 30 days after the petition
24    is  filed.  The  Commission's order shall state the aggregate
25    total amount which the  order  is  authorizing  the  electric
26    utility  to  collect  through  its  decommissioning rate. The
27    Commission's order shall state that the effectiveness of  the
28    revisions  to  the  electric  utility's  decommissioning rate
29    shall be conditioned on the filing by the electric utility of
30    the revisions reducing its base rate  tariffs  and  providing
31    for  credits to its transition charge tariffs as specified in
32    this subsection. Upon completion of  the  collection  of  the
33    total  amount  which  the  Commission's  order authorizes the
34    electric utility to collect through its decommissioning rate,
 
SB24 Enrolled              -52-                LRB9100188JSgc
 1    the electric utility shall not be  entitled  to  collect  any
 2    further  amounts  of  decommissioning  costs  for its nuclear
 3    power plant through a decommissioning rate. Nothing  in  this
 4    Section  shall  be  construed  to  permit  an increase in the
 5    overall tariffed rates  and  charges  paid  by  the  electric
 6    utility's customers.
 7        (e)  In  addition to the uses of the proceeds of the sale
 8    and issuance of transitional funding  instruments  authorized
 9    by  Section  18-103(d)(1),  an  electric  utility  which  has
10    entered  into  an agreement to sell a nuclear power plant may
11    use the proceeds from the sale and issuance  of  transitional
12    funding  instruments  to  make contributions, or to reimburse
13    itself for contributions which the electric utility has made,
14    to decommissioning trusts in accordance with the agreement of
15    sale, in an  amount  not  to  exceed  20%  of  the  aggregate
16    principal  amount  of  transitional funding instruments which
17    the electric utility was authorized to cause to  have  issued
18    pursuant  to  Section 18-103(d)(6), including for purposes of
19    this calculation  the  amount  of  any  transitional  funding
20    instruments  which  the  electric utility caused to be issued
21    prior to the date of this amendatory Act of 1999.  The use of
22    proceeds authorized by this subsection shall not  be  subject
23    to  Section  18-103(d)(1)(B)  and  shall not be considered in
24    determining if the  percentage  limitations  on  the  use  of
25    proceeds   set   forth   in  the  proviso  following  Section
26    18-103(d)(1)(E) have been complied with.
27        (f)  None of the authorizations permitted by this Section
28    may be exercised if the sale of the nuclear  power  plant  is
29    disapproved by the Commission.

30        (220 ILCS 5/16-115)
31        Sec. 16-115. Certification of alternative retail electric
32    suppliers.
33        (a)  Any alternative retail electric supplier must obtain
 
SB24 Enrolled              -53-                LRB9100188JSgc
 1    a  certificate  of  service  authority from the Commission in
 2    accordance  with  this  Section  before  serving  any  retail
 3    customer or other user located in this State.  An alternative
 4    retail electric supplier may request, and the Commission  may
 5    grant,  a  certificate  of  service  authority for the entire
 6    State or for a specified geographic area of the State.
 7        (b)  An alternative retail electric  supplier  seeking  a
 8    certificate   of   service  authority  shall  file  with  the
 9    Commission  a  verified  application  containing  information
10    showing that the applicant meets  the  requirements  of  this
11    Section.   The  alternative  retail  electric  supplier shall
12    publish notice of  its  application  in  the  official  State
13    newspaper  within  10  days following the date of its filing.
14    No later than 45 days after the application is properly filed
15    with the  Commission,  and  such  notice  is  published,  the
16    Commission  shall  issue  its  order  granting or denying the
17    application.
18        (c)  An  application  for  a   certificate   of   service
19    authority  shall  identify  the  area  or  areas in which the
20    applicant intends to offer service and the types of  services
21    it   intends   to  offer.   Applicants  that  seek  to  serve
22    residential or small commercial  retail  customers  within  a
23    geographic  area  that  is smaller than an electric utility's
24    service area shall submit  evidence  demonstrating  that  the
25    designation  of  this  smaller  area does not violate Section
26    16-115A. An applicant that  seeks  to  serve  residential  or
27    small   commercial   retail   customers   may  state  in  its
28    application for certification any limitations  that  will  be
29    imposed  on  the  number  of  customers or maximum load to be
30    served.
31        (d)  The Commission shall grant  the  application  for  a
32    certificate of service authority if it makes the findings set
33    forth  in  this  subsection based on the verified application
34    and such other information as the applicant may submit:
 
SB24 Enrolled              -54-                LRB9100188JSgc
 1             (1)  That   the   applicant   possesses   sufficient
 2        technical,  financial  and   managerial   resources   and
 3        abilities  to  provide  the  service for which it seeks a
 4        certificate of service  authority.   In  determining  the
 5        level  of  technical,  financial and managerial resources
 6        and abilities which the applicant must  demonstrate,  the
 7        Commission   shall   consider  (i)  the  characteristics,
 8        including the size and financial sophistication,  of  the
 9        customers  that  the  applicant  seeks to serve, and (ii)
10        whether the applicant seeks to provide electric power and
11        energy using property, plant and equipment which it owns,
12        controls or operates;
13             (2)  That  the  applicant  will  comply   with   all
14        applicable  federal,  State, regional and industry rules,
15        policies,  practices  and   procedures   for   the   use,
16        operation,  and  maintenance of the safety, integrity and
17        reliability, of the interconnected electric  transmission
18        system;
19             (3)  That the applicant will only provide service to
20        retail  customers  in  an electric utility's service area
21        that are eligible to take delivery  services  under  this
22        Act;
23             (4)  That   the  applicant  will  comply  with  such
24        informational or reporting requirements as the Commission
25        may  by  rule  establish  and  provide  the   information
26        required   by  Section  16-112.    Any  data  related  to
27        contracts for the purchase and sale of electric power and
28        energy shall be made available for review by the Staff of
29        the Commission on a confidential  and  proprietary  basis
30        and  only  to  the  extent and for the purposes which the
31        Commission determines are reasonably necessary  in  order
32        to carry out the purposes of this Act;
33             (5)  That if the applicant, its corporate affiliates
34        or  the  applicant's  principal source of electricity (to
 
SB24 Enrolled              -55-                LRB9100188JSgc
 1        the extent such source  is  known  at  the  time  of  the
 2        application) owns or controls facilities, for public use,
 3        for  the  transmission  or distribution of electricity to
 4        end-users within  a  defined  geographic  area  to  which
 5        electric   power   and   energy  can  be  physically  and
 6        economically  delivered  by  the  electric   utility   or
 7        utilities  in  whose  service  area or areas the proposed
 8        service will be offered,  the  applicant,  its  corporate
 9        affiliates  or  principal  source  of electricity, as the
10        case may be, provides delivery services to  the  electric
11        utility  or  utilities in whose service area or areas the
12        proposed service will  be  offered  that  are  reasonably
13        comparable  to those offered by the electric utility, and
14        provided further, that the applicant  agrees  to  certify
15        annually  to  the  Commission  that  it  is continuing to
16        provide such  delivery  services  and  that  it  has  not
17        knowingly  assisted  any  person  or  entity to avoid the
18        requirements of  this  Section.   For  purposes  of  this
19        subparagraph,  "principal  source  of  electricity" shall
20        mean a single source that supplies at least  65%  of  the
21        applicant's  electric  power and energy, and the purchase
22        of transmission and distribution services pursuant  to  a
23        filed tariff under the jurisdiction of the Federal Energy
24        Regulatory   Commission   or   a   state  public  utility
25        commission shall not constitute control of access to  the
26        provider's transmission and distribution facilities;
27             (6)  With  respect  to  an  applicant  that seeks to
28        serve residential or small commercial  retail  customers,
29        that  the  area  to  be  served  by the applicant and any
30        limitations it proposes on the  number  of  customers  or
31        maximum  amount  of load to be served meet the provisions
32        of Section 16-115A, provided,  that  the  Commission  can
33        extend  the  time  for  considering  such  a  certificate
34        request  by  up  to 90 days, and can schedule hearings on
 
SB24 Enrolled              -56-                LRB9100188JSgc
 1        such a request;
 2             (7)  That the applicant meets  the  requirements  of
 3        subsection (a) of Section 16-128; and
 4             (8)  That  the  applicant will comply with all other
 5        applicable laws and regulations.
 6        (e)  A  retail  customer  that  owns  a  cogeneration  or
 7    self-generation facility and that seeks certification only to
 8    provide electric power  and  energy  from  such  facility  to
 9    retail  customers  at  separate locations which customers are
10    both (i)  owned  by,  or  a  subsidiary  or  other  corporate
11    affiliate  of,  such applicant and (ii) eligible for delivery
12    services, shall be granted a certificate of service authority
13    upon filing an application and notifying the Commission  that
14    it  has  entered into an agreement with the relevant electric
15    utilities pursuant to Section 16-118. Provided, however, that
16    if  the  retail  customer   owning   such   cogeneration   or
17    self-generation  facility  would  not be charged a transition
18    charge due to the exemption provided under subsection (f)  of
19    Section  16-108  prior  to  the certification, and the retail
20    customers at separate locations are taking delivery  services
21    in  conjunction  with  purchasing  power  and energy from the
22    facility, the retail customer on whose premises the  facility
23    is located shall not thereafter be required to pay transition
24    charges  on  the  power  and energy that such retail customer
25    takes from the facility.
26        (f)  The  Commission  shall   have   the   authority   to
27    promulgate  rules and regulations to carry out the provisions
28    of this Section.  On or before May 1,  1999,  the  Commission
29    shall  adopt  a rule or rules applicable to the certification
30    of those alternative retail electric suppliers that  seek  to
31    serve  only  nonresidential  retail  customers  with  maximum
32    electrical  demands  of  one  megawatt  or  more  which shall
33    provide for (i)  expedited  and  streamlined  procedures  for
34    certification  of  such alternative retail electric suppliers
 
SB24 Enrolled              -57-                LRB9100188JSgc
 1    and  (ii)  specific  criteria  which,  if  met  by  any  such
 2    alternative retail electric supplier,  shall  constitute  the
 3    demonstration   of   technical,   financial   and  managerial
 4    resources  and  abilities  to  provide  service  required  by
 5    subsection (d) (1) of this Section, such as a requirement  to
 6    post a bond or letter of credit, from a responsible surety or
 7    financial  institution, of sufficient size for the nature and
 8    scope of  the  services  to  be  provided;  demonstration  of
 9    adequate  insurance  for the scope and nature of the services
10    to be provided; and experience in providing similar  services
11    in other jurisdictions.
12    (Source: P.A. 90-561, eff. 12-16-97.)

13        (220 ILCS 5/16-130)
14        Sec. 16-130.  Annual Reports.  The General Assembly finds
15    that   it   is   necessary  to  have  reliable  and  accurate
16    information  regarding  the  transition  to   a   competitive
17    electric   industry.    In  addition  to  the  annual  report
18    requirements pursuant to Section  5-109  of  this  Act,  each
19    electric  utility  shall file with the Commission a report on
20    the following topics in  accordance  with  the  schedule  set
21    forth in subsection (b) of this Section:
22             (1)  Data  on  each  customer  class of the electric
23        utility in which  delivery  services  have  been  elected
24        including:
25                  (A)  number  of  retail customers in each class
26             that have elected delivery service;
27                  (B)  kilowatt hours consumed by  the  customers
28             described in subparagraph (A);
29                  (C)  revenue loss experienced by the utility as
30             a  result of customers electing delivery services or
31             market-based prices as compared to continued service
32             under otherwise applicable tariffed rates;
33                  (D)  total amount of funds collected from  each
 
SB24 Enrolled              -58-                LRB9100188JSgc
 1             customer  class  pursuant  to the transition charges
 2             authorized in Section 16-108;
 3                  (E)  Such other information as  the  Commission
 4             may by rule require.
 5             (2)  A   description  of  any  steps  taken  by  the
 6        electric  utility  to  mitigate  and  reduce  its  costs,
 7        including both a  detailed  description  of  steps  taken
 8        during the preceding calendar year and a summary of steps
 9        taken  since the effective date of this amendatory Act of
10        1997,  and  including,   to   the   extent   practicable,
11        quantification  of  the  costs  mitigated  or  reduced by
12        specific actions taken by the electric utility.
13             (3)  A description of actions taken  under  Sections
14        5-104,  7-204,  9-220,  and  16-111  of  this  Act.  This
15        information shall include but not be limited to:
16                  (A)  a description of the actions taken;
17                  (B)  the effective date of the action;
18                  (C)  the annual savings or  additional  charges
19             realized   by   customers  from  actions  taken,  by
20             customer class and total for each year;
21                  (D)  the accumulated  impact  on  customers  by
22             customer class and total; and
23                  (E)  a  summary  of the method used to quantify
24             the impact on customers.
25             (4)  A summary of  the  electric  utility's  use  of
26        transitional funding instruments, including a description
27        of  the  electric  utility's  use  of the proceeds of any
28        transitional  funding  instruments  it  has   issued   in
29        accordance with Article XVIII of this Act.
30             (5)  Kilowatt-hours  consumed  in  the twelve months
31        ending December 31, 1996 (which kilowatt-hours are hereby
32        referred to as  "base  year  sales")  by  customer  class
33        multiplied  by the revenue per kilowatt hour, adjusted to
34        remove charges added  to  customers'  bills  pursuant  to
 
SB24 Enrolled              -59-                LRB9100188JSgc
 1        Sections  9-221  and 9-222 of this Act, during the twelve
 2        months  ending  December  31,  1996,  adjusted  for   the
 3        reductions  required  by subsection (b) of Section 16-111
 4        and the mitigation factors contained in  Section  16-102.
 5        This  amount  shall be stated for: (i) each calendar year
 6        preceding the year in which a report is  required  to  be
 7        submitted  pursuant  to  subsection  (b);  and  (ii) as a
 8        cumulative total of all  calendar  years  beginning  with
 9        1998 and ending with the calendar year preceding the year
10        in which a report is required to be submitted pursuant to
11        subsection (b).
12             (6)  Calculations  identical  to  those  required by
13        subparagraph (5) except that base  year  sales  shall  be
14        adjusted  for  growth  in  the electric utility's service
15        territory, in addition to the other adjustments specified
16        by the first sentence of subparagraph (5).
17             (7)  The electric utility's total  revenue  and  net
18        income for each calendar year beginning with 1997 through
19        the calendar year preceding the year in which a report is
20        required  to  be  submitted pursuant to subsection (b) as
21        reported in the electric utility's Form 1 report  to  the
22        Federal Energy Regulatory Commission.
23             (8)  Any  consideration  in  excess  of the net book
24        cost as of the effective date of this amendatory  Act  of
25        1997  received  by  the  electric utility during the year
26        from a sale made subsequent to the effective date of this
27        amendatory Act of 1997 to a non-affiliated third party of
28        any generating plant  that  was  owned  by  the  electric
29        utility  on  the effective date of this amendatory Act of
30        1997.
31             (9)  Any  consideration  received  by  the  electric
32        utility from sales or transfers during  the  year  to  an
33        affiliated  interest  of generating plant, or other plant
34        that represents an investment of $25,000,000 or  more  in
 
SB24 Enrolled              -60-                LRB9100188JSgc
 1        terms   of   total   depreciated   original  cost,  which
 2        generating or other plant  were  owned  by  the  electric
 3        utility  prior  to  the effective date of this amendatory
 4        Act of 1997.
 5             (10)  Any consideration received  by  an  affiliated
 6        interest  of  an electric utility from sales or transfers
 7        during the  year  to  a  non-affiliated  third  party  of
 8        generating  plant,  but only if: (i) the electric utility
 9        had previously sold or  transferred  such  plant  to  the
10        affiliated  interest  subsequent to the effective date of
11        this amendatory Act of 1997; (ii) the affiliated interest
12        sells or transfers such plant to a  non-affiliated  third
13        party   prior   to  December  31,  2006;  and  (iii)  the
14        affiliated interest receives consideration for  the  sale
15        or  transfer  of  such  plant to the non-affiliated third
16        party in an amount greater than  the  cost  or  price  at
17        which   such   plant  was  sold  or  transferred  to  the
18        affiliated interest by the electric utility.
19             (11)  A summary account of those  expenditures  made
20        for  projects,  programs,  and  improvements  relating to
21        transmission   and   distribution   including,    without
22        limitation,    infrastructure   expansion,   repair   and
23        replacement,   capital   investments,   operations    and
24        maintenance,  and  vegetation  management,  pursuant to a
25        written commitment made under subsection (k)  of  Section
26        16-111.
27        (b)  The  information required by subsection (a) shall be
28    filed by each electric utility on or before March 1  of  each
29    year  1999  through  2007 or through such additional years as
30    the  electric  utility  is  collecting   transition   charges
31    pursuant  to  subsection  (f)  of  Section  16-108,  for  the
32    previous   calendar   year.   The   information  required  by
33    subparagraph (6) of subsection (a)  for  calendar  year  1997
34    shall be submitted by the electric utility on or before March
 
SB24 Enrolled              -61-                LRB9100188JSgc
 1    1, 1999.
 2        (c)  On  or  before May 15 of each year 1999 through 2006
 3    or through such additional years as the electric  utility  is
 4    collecting  transition  charges pursuant to subsection (f) of
 5    Section 16-108, the Commission shall submit a report  to  the
 6    General Assembly which summarizes the information provided by
 7    each  electric utility under this Section; provided, however,
 8    that proprietary or confidential  information  shall  not  be
 9    publicly disclosed.
10    (Source: P.A. 90-561, eff. 12-16-97.)

11        Section 10.  The Citizens Utility Board Act is amended by
12    changing Section 5 and adding Section 5.1 as follows:

13        (220 ILCS 10/5) (from Ch. 111 2/3, par. 905)
14        Sec. 5.  Powers and duties.  (1)  The corporation shall:
15        (a)  Represent   and   protect   the   interests  of  the
16    residential utility consumers of this State.  All actions  by
17    the  corporation under this Act shall be directed toward such
18    duty;  provided  that  the  corporation  may  also  give  due
19    consideration to the interests of business in the State.
20        (b)  Inform, in so far as possible, all utility consumers
21    about the corporation, including the procedure for  obtaining
22    membership in the corporation.
23        (2)  The  corporation shall have all the powers necessary
24    or convenient for the effective representation and protection
25    of the interest of utility consumers and  to  implement  this
26    Act,  including the following powers in addition to all other
27    powers granted by this Act.
28        (a)  To make, amend and repeal bylaws and rules  for  the
29    regulation of its affairs and the conduct of its business; to
30    adopt  an official seal and alter it at pleasure; to maintain
31    an office; to sue and be sued in its own name, plead  and  be
32    impleaded;  and  to  make  and  execute  contracts  and other
 
SB24 Enrolled              -62-                LRB9100188JSgc
 1    instruments necessary or convenient to the  exercise  of  the
 2    powers of the corporation.
 3        (b)  To   employ   such  agents,  employees  and  special
 4    advisors as it finds necessary and to fix their compensation.
 5        (c)  To solicit and accept gifts, loans, including  loans
 6    made   by   the   Illinois  Commerce  Commission  from  funds
 7    appropriated for that purpose by law, or other aid  in  order
 8    to  support  activities  concerning  the interests of utility
 9    consumers.,  Except as provided  in  Section  5.1,  that  the
10    corporation may not accept gifts, loans or other aid from any
11    public  utility  or  from  any director, employee or agent or
12    member of the immediate family of  a  director,  employee  or
13    agent  of any public utility and, except that after the first
14    election the corporation, may not accept from any individual,
15    private corporation, association or partnership in any single
16    year a total of  more  than  $1,000  in  gifts.   Under  this
17    paragraph, "aid" does not mean payment of membership dues.
18        (d)  To  intervene as a party or otherwise participate on
19    behalf of utility consumers in any proceeding  which  affects
20    the interest of utility consumers.
21        (e)  To  represent  the  interests  of  utility consumers
22    before the Illinois Commerce Commission, the  Federal  Energy
23    Regulatory Commission, the Federal Communications Commission,
24    the courts, and other public bodies, except that no director,
25    employee  or  agent of the corporation may engage in lobbying
26    without  first  complying  with   any   applicable   statute,
27    administrative rule or other regulation relating to lobbying.
28        (f)  To  establish  annual  dues  which shall be set at a
29    level that provides sufficient funding for the corporation to
30    effectively perform its powers and duties, and is  affordable
31    for as many utility consumers as is possible.
32        (g)  To  implement  solicitation  for corporation funding
33    and membership.
34        (h)  To seek tax exempt status under  State  and  federal
 
SB24 Enrolled              -63-                LRB9100188JSgc
 1    law,  including  501(c)(3)  status  under  the  United States
 2    Internal Revenue Code.
 3        (i)  To  provide  information  and  advice   to   utility
 4    consumers  on  any  matter  with  respect to utility service,
 5    including but  not  limited  to  information  and  advice  on
 6    benefits and methods of energy conservation.
 7        (3)  The  powers, duties, rights and privileges conferred
 8    or imposed upon the  corporation  by  this  Act  may  not  be
 9    transferred.
10        (4)  The  corporation shall refrain from interfering with
11    collective bargaining rights of any  employees  of  a  public
12    utility.
13    (Source: P.A. 83-945.)

14        (220 ILCS 10/5.1 new)
15        Sec.  5.1.   Contributions.   Notwithstanding anything to
16    the contrary in Section 5 of this Act, the corporation  shall
17    have  the  authority to solicit and accept contributions made
18    pursuant to Section 16-111.1 of the Public Utilities Act.

19        Section 99.  Effective date.  This Act takes effect  upon
20    becoming law.

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