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91_SB0141
LRB9102142JSpc
1 AN ACT to amend the Public Utilities Act by changing
2 Sections 16-102 and 16-108.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Public Utilities Act is amended by
6 changing Sections 16-102 and 16-108 as follows:
7 (220 ILCS 5/16-102)
8 Sec. 16-102. Definitions. For the purposes of this
9 Article the following terms shall be defined as set forth in
10 this Section.
11 "Alternative retail electric supplier" means every
12 person, cooperative, corporation, municipal corporation,
13 company, association, joint stock company or association,
14 firm, partnership, individual, or other entity, their
15 lessees, trustees, or receivers appointed by any court
16 whatsoever, that offers electric power or energy for sale,
17 lease or in exchange for other value received to one or more
18 retail customers, or that engages in the delivery or
19 furnishing of electric power or energy to such retail
20 customers, and shall include, without limitation, resellers,
21 aggregators and power marketers, but shall not include (i)
22 electric utilities (or any agent of the electric utility to
23 the extent the electric utility provides tariffed services to
24 retail customers through that agent), (ii) any electric
25 cooperative or municipal system as defined in Section 17-100
26 to the extent that the electric cooperative or municipal
27 system is serving retail customers within any area in which
28 it is or would be entitled to provide service under the law
29 in effect immediately prior to the effective date of this
30 amendatory Act of 1997, (iii) a public utility that is owned
31 and operated by any public institution of higher education of
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1 this State, or a public utility that is owned by such public
2 institution of higher education and operated by any of its
3 lessees or operating agents, within any area in which it is
4 or would be entitled to provide service under the law in
5 effect immediately prior to the effective date of this
6 amendatory Act of 1997, (iv) any retail customer to the
7 extent that customer obtains its electric power and energy
8 from its own cogeneration or self-generation facilities, (v)
9 any entity that sells or arranges for the installation of
10 cogeneration or self-generation facilities to be owned by a
11 retail customer described in subparagraph (iv), but only to
12 the extent the entity is engaged in selling or arranging for
13 such installation, or (vi) an industrial or manufacturing
14 customer that owns its own distribution facilities, to the
15 extent that the customer provides service from that
16 distribution system to a third-party contractor located on
17 the customer's premises that is integrally and predominantly
18 engaged in the customer's industrial or manufacturing
19 process; provided, that if the industrial or manufacturing
20 customer has elected delivery services, the customer shall
21 pay transition charges applicable to the electric power and
22 energy consumed by the third-party contractor unless such
23 charges are otherwise paid by the third party contractor,
24 which shall be calculated based on the usage of, and the base
25 rates or the contract rates applicable to, the third-party
26 contractor in accordance with Section 16-102, or (vii) a
27 retail customer that obtains its electric power and energy
28 from cogeneration or self-generation facilities located on
29 its premises and sells any excess electric power and energy
30 only on the wholesale market.
31 "Base rates" means the rates for those tariffed services
32 that the electric utility is required to offer pursuant to
33 subsection (a) of Section 16-103 and that were identified in
34 a rate order for collection of the electric utility's base
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1 rate revenue requirement, excluding (i) separate automatic
2 rate adjustment riders then in effect, (ii) special or
3 negotiated contract rates, (iii) delivery services tariffs
4 filed pursuant to Section 16-108, (iv) real-time pricing, or
5 (v) tariffs that were in effect prior to October 1, 1996 and
6 that based charges for services on an index or average of
7 other utilities' charges, but including (vi) any subsequent
8 redesign of such rates for tariffed services that is
9 authorized by the Commission after notice and hearing.
10 "Competitive service" includes (i) any service that has
11 been declared to be competitive pursuant to Section 16-113 of
12 this Act, (ii) contract service, and (iii) services, other
13 than tariffed services, that are related to, but not
14 necessary for, the provision of electric power and energy or
15 delivery services.
16 "Contract service" means (1) services, including the
17 provision of electric power and energy or other services,
18 that are provided by mutual agreement between an electric
19 utility and a retail customer that is located in the electric
20 utility's service area, provided that, delivery services
21 shall not be a contract service until such services are
22 declared competitive pursuant to Section 16-113; and also
23 means (2) the provision of electric power and energy by an
24 electric utility to retail customers outside the electric
25 utility's service area pursuant to Section 16-116. Provided,
26 however, contract service does not include electric utility
27 services provided pursuant to (i) contracts that retail
28 customers are required to execute as a condition of receiving
29 tariffed services, or (ii) special or negotiated rate
30 contracts for electric utility services that were entered
31 into between an electric utility and a retail customer prior
32 to the effective date of this amendatory Act of 1997 and
33 filed with the Commission.
34 "Delivery services" means those services provided by the
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1 electric utility that are necessary in order for the
2 transmission and distribution systems to function so that
3 retail customers located in the electric utility's service
4 area can receive electric power and energy from suppliers
5 other than the electric utility, and shall include, without
6 limitation, standard metering and billing services.
7 "Electric utility" means a public utility, as defined in
8 Section 3-105 of this Act, that has a franchise, license,
9 permit or right to furnish or sell electricity to retail
10 customers within a service area.
11 "Mandatory transition period" means the period from the
12 effective date of this amendatory Act of 1997 through January
13 1, 2005.
14 "Municipal system" shall have the meaning set forth in
15 Section 17-100.
16 "Real-time pricing" means charges for delivered electric
17 power and energy that vary on an hour-to-hour basis for
18 nonresidential retail customers and that vary on a periodic
19 basis during the day for residential retail customers.
20 "Retail customer" means a single entity using electric
21 power or energy at a single premises and that (A) either (i)
22 is receiving or is eligible to receive tariffed services from
23 an electric utility, or (ii) that is served by a municipal
24 system or electric cooperative within any area in which the
25 municipal system or electric cooperative is or would be
26 entitled to provide service under the law in effect
27 immediately prior to the effective date of this amendatory
28 Act of 1997, or (B) an entity which on the effective date of
29 this Act was receiving electric service from a public utility
30 and (i) was engaged in the practice of resale and
31 redistribution of such electricity within a building prior to
32 January 2, 1957, or (ii) was providing lighting services to
33 tenants in a multi-occupancy building, but only to the extent
34 such resale, redistribution or lighting service is authorized
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1 by the electric utility's tariffs that were on file with the
2 Commission on the effective date of this Act.
3 "Service area" means (i) the geographic area within which
4 an electric utility was lawfully entitled to provide electric
5 power and energy to retail customers as of the effective date
6 of this amendatory Act of 1997, and includes (ii) the
7 location of any retail customer to which the electric utility
8 was lawfully providing electric utility services on such
9 effective date.
10 "Small commercial retail customer" means those
11 nonresidential retail customers of an electric utility
12 consuming 15,000 kilowatt-hours or less of electricity
13 annually in its service area.
14 "Tariffed service" means services provided to retail
15 customers by an electric utility as defined by its rates on
16 file with the Commission pursuant to the provisions of
17 Article IX of this Act, but shall not include competitive
18 services.
19 "Transition charge" means a charge expressed in cents per
20 kilowatt-hour that is calculated for a customer or class of
21 customers as follows for each year in which an electric
22 utility is entitled to recover transition charges as provided
23 in Section 16-108:
24 (1) the amount of revenue that an electric utility
25 would receive from the retail customer or customers if it
26 were serving such customers' electric power and energy
27 requirements as a tariffed service based on (A) all of
28 the customers' actual usage during the 3 years ending 90
29 days prior to the date on which such customers were first
30 eligible for delivery services pursuant to Section
31 16-104, and (B) on (i) the base rates in effect on
32 October 1, 1996 (adjusted for the reductions required by
33 subsection (b) of Section 16-111, for any reduction
34 resulting from a rate decrease under Section 16-101(b),
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1 for any restatement of base rates made in conjunction
2 with an elimination of the fuel adjustment clause
3 pursuant to subsection (b), (d), or (f) of Section 9-220
4 and for any removal of decommissioning costs from base
5 rates pursuant to Section 16-114) and any separate
6 automatic rate adjustment riders (other than a
7 decommissioning rate as defined in Section 16-114) under
8 which the customers were receiving or, had they been
9 customers, would have received electric power and energy
10 from the electric utility during the year immediately
11 preceding the date on which such customers were first
12 eligible for delivery service pursuant to Section 16-104,
13 or (ii) to the extent applicable, any contract rates,
14 including contracts or rates for consolidated or
15 aggregated billing, under which such customers were
16 receiving electric power and energy from the electric
17 utility during such year;
18 (2) less the amount of revenue, other than revenue
19 from transition charges and decommissioning rates, that
20 the electric utility would receive from such retail
21 customers for delivery services provided by the electric
22 utility, assuming such customers were taking delivery
23 services for all of their usage, based on the delivery
24 services tariffs in effect during the year for which the
25 transition charge is being calculated and on the usage
26 identified in paragraph (1);
27 (3) less the market value for the electric power
28 and energy that the electric utility would have used to
29 supply all of such customers' electric power and energy
30 requirements, as a tariffed service, based on the usage
31 identified in paragraph (1), with such market value
32 determined in accordance with Section 16-112 of this Act;
33 (4) less the following amount which represents the
34 amount to be attributed to new revenue sources and cost
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1 reductions by the electric utility through the end of the
2 period for which transition costs are recovered pursuant
3 to Section 16-108, referred to in this Article XVI as a
4 "mitigation factor":
5 (A) for nonresidential retail customers, an
6 amount equal to the greater of (i) 0.5 cents per
7 kilowatt-hour during the period October 1, 1999
8 through December 31, 2004, 0.6 cents per
9 kilowatt-hour in calendar year 2005, and 0.9 cents
10 per kilowatt-hour in calendar year 2006, multiplied
11 in each year by the usage identified in paragraph
12 (1), or (ii) an amount equal to the following
13 percentages of the amount produced by applying the
14 applicable base rates (adjusted as described in
15 subparagraph (1)(B)) or contract rate to the usage
16 identified in paragraph (1): 8% for the period
17 October 1, 1999 through December 31, 2002, 10% in
18 calendar years 2003 and 2004, 11% in calendar year
19 2005 and 12% in calendar year 2006; and
20 (B) for residential retail customers, an
21 amount equal to the following percentages of the
22 amount produced by applying the base rates in effect
23 on October 1, 1996 (adjusted as described in
24 subparagraph (1)(B)) to the usage identified in
25 paragraph (1): (i) 6% from May 1, 2002 through
26 December 31, 2002, (ii) 7% in calendar years 2003
27 and 2004, (iii) 8% in calendar year 2005, and (iv)
28 10% in calendar year 2006;
29 (5) divided by the usage of such customers
30 identified in paragraph (1),
31 provided that the transition charge shall never be less than
32 zero.
33 "Unbundled service" means a component or constituent part
34 of a tariffed service which the electric utility subsequently
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1 offers separately to its customers.
2 (Source: P.A. 90-561, eff. 12-16-97.)
3 (220 ILCS 5/16-108)
4 Sec. 16-108. Recovery of costs associated with the
5 provision of delivery services.
6 (a) An electric utility shall file a delivery services
7 tariff with the Commission at least 210 days prior to the
8 date that it is required to begin offering such services
9 pursuant to this Act. An electric utility shall provide the
10 components of delivery services that are subject to the
11 jurisdiction of the Federal Energy Regulatory Commission at
12 the same prices, terms and conditions set forth in its
13 applicable tariff as approved or allowed into effect by that
14 Commission. The Commission shall otherwise have the authority
15 pursuant to Article IX to review, approve, and modify the
16 prices, terms and conditions of those components of delivery
17 services not subject to the jurisdiction of the Federal
18 Energy Regulatory Commission, including the authority to
19 determine the extent to which such delivery services should
20 be offered on an unbundled basis. In making any such
21 determination the Commission shall consider, at a minimum,
22 the effect of additional unbundling on (i) the objective of
23 just and reasonable rates, (ii) electric utility employees,
24 and (iii) the development of competitive markets for electric
25 energy services in Illinois.
26 (b) The Commission shall enter an order approving, or
27 approving as modified, the delivery services tariff no later
28 than 30 days prior to the date on which the electric utility
29 must commence offering such services. The Commission may
30 subsequently modify such tariff pursuant to this Act.
31 (c) The electric utility's tariffs shall define the
32 classes of its customers for purposes of delivery services
33 charges. Delivery services shall be priced and made
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1 available to all retail customers electing delivery services
2 in each such class on a nondiscriminatory basis regardless of
3 whether the retail customer chooses the electric utility, an
4 affiliate of the electric utility, or another entity as its
5 supplier of electric power and energy. Charges for delivery
6 services shall be cost based, and shall allow the electric
7 utility to recover the costs of providing delivery services
8 through its charges to its delivery service customers that
9 use the facilities and services associated with such costs.
10 Such costs shall include the costs of owning, operating and
11 maintaining transmission and distribution facilities. The
12 Commission shall also be authorized to consider whether, and
13 if so to what extent, the following costs are appropriately
14 included in the electric utility's delivery services rates:
15 (i) the costs of that portion of generation facilities used
16 for the production and absorption of reactive power in order
17 that retail customers located in the electric utility's
18 service area can receive electric power and energy from
19 suppliers other than the electric utility, and (ii) the costs
20 associated with the use and redispatch of generation
21 facilities to mitigate constraints on the transmission or
22 distribution system in order that retail customers located in
23 the electric utility's service area can receive electric
24 power and energy from suppliers other than the electric
25 utility. Nothing in this subsection shall be construed as
26 directing the Commission to allocate any of the costs
27 described in (i) or (ii) that are found to be appropriately
28 included in the electric utility's delivery services rates to
29 any particular customer group or geographic area in setting
30 delivery services rates.
31 (d) The Commission shall establish charges, terms and
32 conditions for delivery services that are just and reasonable
33 and shall take into account customer impacts when
34 establishing such charges. In establishing charges, terms and
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1 conditions for delivery services, the Commission shall take
2 into account voltage level differences. A retail customer
3 shall have the option to request to purchase electric service
4 at any delivery service voltage reasonably and technically
5 feasible from the electric facilities serving that customer's
6 premises provided that there are no significant adverse
7 impacts upon system reliability or system efficiency. A
8 retail customer shall also have the option to request to
9 purchase electric service at any point of delivery that is
10 reasonably and technically feasible provided that there are
11 no significant adverse impacts on system reliability or
12 efficiency. Such requests shall not be unreasonably denied.
13 (e) Electric utilities shall recover the costs of
14 installing, operating or maintaining facilities for the
15 particular benefit of one or more delivery services
16 customers, including without limitation any costs incurred in
17 complying with a customer's request to be served at a
18 different voltage level, directly from the retail customer or
19 customers for whose benefit the costs were incurred, to the
20 extent such costs are not recovered through the charges
21 referred to in subsections (c) and (d) of this Section.
22 (f) An electric utility shall be entitled but not
23 required to implement transition charges in conjunction with
24 the offering of delivery services pursuant to Section 16-104.
25 If an electric utility implements transition charges, it
26 shall implement such charges for all delivery services
27 customers and for all customers described in subsection (h).
28 Such charges shall be calculated as provided in Section
29 16-102, and shall be collected on each kilowatt-hour
30 delivered under a delivery services tariff to a retail
31 customer from the date the customer first takes delivery
32 services until December 31, 2006 except as provided in
33 subsection (h) of this Section. Provided, however, that an
34 electric utility shall be entitled to petition for entry of
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1 an order by the Commission authorizing the electric utility
2 to implement transition charges for an additional period
3 ending no later than December 31, 2008. The electric utility
4 shall file its petition with supporting evidence no earlier
5 than 16 months, and no later than 12 months, prior to
6 December 31, 2006. The Commission shall hold a hearing on
7 the electric utility's petition and shall enter its order no
8 later than 8 months after the petition is filed. The
9 Commission shall determine whether and to what extent the
10 electric utility shall be authorized to implement transition
11 charges for an additional period. The Commission may
12 authorize the electric utility to implement transition
13 charges for some or all of the additional period, and shall
14 determine the mitigation factors to be used in implementing
15 such transition charges; provided, that the Commission shall
16 not authorize mitigation factors less than 110% of those in
17 effect during the 12 months ended December 31, 2006. In
18 making its determination, the Commission shall consider the
19 following factors: the necessity to implement transition
20 charges for an additional period in order to maintain the
21 financial integrity of the electric utility; the prudence of
22 the electric utility's actions in reducing its costs since
23 the effective date of this amendatory Act of 1997; the
24 ability of the electric utility to provide safe, adequate and
25 reliable service to retail customers in its service area; and
26 the impact on competition of allowing the electric utility to
27 implement transition charges for the additional period.
28 (g) The electric utility shall file tariffs that
29 establish the transition charges to be paid by each class of
30 customers to the electric utility in conjunction with the
31 provision of delivery services. The electric utility's
32 tariffs shall define the classes of its customers for
33 purposes of calculating transition charges. The electric
34 utility's tariffs shall provide for the calculation of
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1 transition charges on a customer-specific basis for any
2 retail customer whose average monthly maximum electrical
3 demand on the electric utility's system during the 6 months
4 with the customer's highest monthly maximum electrical
5 demands equals or exceeds 3.0 megawatts for electric
6 utilities having more than 1,000,000 customers, and for other
7 electric utilities for any customer that has an average
8 monthly maximum electrical demand on the electric utility's
9 system of one megawatt or more, and (A) for which there
10 exists data on the customer's usage during the 3 years
11 preceding the date that the customer became eligible to take
12 delivery services, or (B) for which there does not exist data
13 on the customer's usage during the 3 years preceding the date
14 that the customer became eligible to take delivery services,
15 if in the electric utility's reasonable judgment there exists
16 comparable usage information or a sufficient basis to develop
17 such information, and further provided that the electric
18 utility can require customers for which an individual
19 calculation is made to sign contracts that set forth the
20 transition charges to be paid by the customer to the electric
21 utility pursuant to the tariff.
22 (h) An electric utility shall also be entitled to file
23 tariffs that allow it to collect transition charges from
24 retail customers in the electric utility's service area that
25 do not take delivery services but that take electric power or
26 energy from an alternative retail electric supplier or from
27 an electric utility other than the electric utility in whose
28 service area the customer is located. Such charges shall be
29 calculated, in accordance with the definition of transition
30 charges in Section 16-102, for the period of time that the
31 customer would be obligated to pay transition charges if it
32 were taking delivery services, except that no deduction for
33 delivery services revenues shall be made in such calculation,
34 and usage data from the customer's class shall be used where
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1 historical usage data is not available for the individual
2 customer. The customer shall be obligated to pay such
3 charges on a lump sum basis on or before the date on which
4 the customer commences to take service from the alternative
5 retail electric supplier or other electric utility, provided,
6 that the electric utility in whose service area the customer
7 is located shall offer the customer the option of signing a
8 contract pursuant to which the customer pays such charges
9 ratably over the period in which the charges would otherwise
10 have applied.
11 (i) An electric utility shall be entitled to add to the
12 bills of delivery services customers charges pursuant to
13 Sections 9-221, 9-222 (except as provided in Section
14 9-222.1), and Section 16-114 of this Act, Section 5-5 of the
15 Electricity Infrastructure Maintenance Fee Law, Section 6-5
16 of the Renewable Energy, Energy Efficiency, and Coal
17 Resources Development Law of 1997, and Section 13 of the
18 Energy Assistance Act of 1989.
19 (j) If a retail customer that obtains electric power and
20 energy from cogeneration or self-generation facilities
21 installed for its own use on or before January 1, 1997,
22 subsequently takes service from an alternative retail
23 electric supplier or an electric utility other than the
24 electric utility in whose service area the customer is
25 located for any portion of the customer's electric power and
26 energy requirements formerly obtained from those facilities
27 (including that amount purchased from the utility in lieu of
28 such generation and not as standby power purchases, under a
29 cogeneration displacement tariff in effect as of the
30 effective date of this amendatory Act of 1997), the
31 transition charges otherwise applicable pursuant to
32 subsections (f), (g), or (h) of this Section shall not be
33 applicable in any year to that portion of the customer's
34 electric power and energy requirements formerly obtained from
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1 those facilities, provided, that for purposes of this
2 subsection (j), such portion shall not exceed the average
3 number of kilowatt-hours per year obtained from the
4 cogeneration or self-generation facilities during the 3 years
5 prior to the date on which the customer became eligible for
6 delivery services, except as provided in subsection (f) of
7 Section 16-110.
8 (k) A retail customer that obtains electric power and
9 energy from cogeneration or self-generation facilities
10 located on its premises and sells any excess power and energy
11 only on the wholesale market shall not be subject to the
12 transition charges otherwise applicable under subsection (f),
13 (g), or (h) of this Section unless the customer subsequently
14 takes service from an alternative retail electric supplier or
15 an electric utility other than the electric utility in whose
16 service area the customer is located. If the retail customer
17 takes service from an alternative retail electric supplier or
18 an electric utility other than the electric utility in whose
19 service area the customer is located, the transition charges
20 applicable under subsection (f), (g), or (h) of this Section
21 shall apply only to the amount of electric power and energy
22 the customer takes from an alternative retail electric
23 supplier or an electric utility other than the electric
24 utility in whose service area the customer is located.
25 (Source: P.A. 90-561, eff. 12-16-97.)