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Rep. Rich Brauer
Filed: 3/20/2007
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09500HB2970ham001 |
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LRB095 06420 MJR 33770 a |
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| AMENDMENT TO HOUSE BILL 2970
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| AMENDMENT NO. ______. Amend House Bill 2970 by replacing |
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| everything after the enacting clause with the following:
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| "Section 5. The Public Utilities Act is amended by changing |
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| Sections 16-102, 16-111, and 16-113 as follows:
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| (220 ILCS 5/16-102)
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| Sec. 16-102. Definitions. For the purposes of this
Article |
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| the following terms shall be defined as set forth in
this |
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| Section.
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| "Alternative retail electric supplier" means every
person, |
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| cooperative, corporation, municipal corporation,
company, |
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| association, joint stock company or association,
firm, |
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| partnership, individual, or other entity, their lessees,
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| trustees, or receivers appointed by any court whatsoever, that
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| offers electric power or energy for sale, lease or in exchange
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| for other value received to one or more retail customers, or
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LRB095 06420 MJR 33770 a |
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| that engages in the delivery or furnishing of electric power
or |
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| energy to such retail customers, and shall include, without
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| limitation, resellers, aggregators and power marketers, but
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| shall not include (i) electric utilities (or any agent of the
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| electric utility to the extent the electric utility provides
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| tariffed services to retail customers through that agent),
(ii) |
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| any electric cooperative or municipal system as defined
in |
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| Section 17-100 to the extent that the electric cooperative
or |
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| municipal system is serving retail customers within any
area in |
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| which it is or would be entitled to provide service
under the |
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| law in effect immediately prior to the effective
date of this |
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| amendatory Act of 1997, (iii) a public utility
that is owned |
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| and operated by any public institution of higher
education of |
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| this State, or a public utility that is owned by
such public |
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| institution of higher education and operated by
any of its |
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| lessees or operating agents, within any area in
which it is or |
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| would be entitled to provide service under the
law in effect |
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| immediately prior to the effective date of this
amendatory Act |
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| of 1997, (iv) a retail customer to the extent
that customer |
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| obtains its electric power and energy from that customer's
own |
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| cogeneration or self-generation facilities, (v) an
entity that |
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| owns, operates, sells, or arranges for the installation of
a |
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| customer's own cogeneration or self-generation facilities, but |
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| only to
the extent the entity is engaged in
owning,
selling or |
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| arranging for the installation of such facility,
or operating |
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| the facility
on behalf of such customer, provided however that |
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LRB095 06420 MJR 33770 a |
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| any such
third party owner or operator of a facility built |
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| after
January 1, 1999, complies with the labor provisions of |
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| Section 16-128(a) as
though
such third party were an |
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| alternative retail
electric supplier,
or (vi) an industrial or
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| manufacturing customer that owns
its own
distribution |
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| facilities, to the extent that the customer provides service |
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| from
that distribution system to a third-party contractor |
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| located on the customer's
premises that is integrally and |
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| predominantly engaged in the customer's
industrial or
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| manufacturing process; provided, that if the industrial or |
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| manufacturing
customer has elected delivery services, the |
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| customer shall pay transition
charges applicable to the |
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| electric power and energy consumed by the third-party
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| contractor unless such charges are otherwise paid by the third |
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| party
contractor, which shall be calculated based on the usage |
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| of, and the base rates
or the contract rates applicable to, the |
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| third-party contractor in accordance
with Section 16-102.
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| "Base rates" means the rates for those tariffed services |
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| that the electric
utility is required to offer pursuant to |
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| subsection (a) of Section 16-103 and
that were identified in a |
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| rate order for collection of the electric
utility's base rate |
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| revenue requirement, excluding (i) separate automatic
rate |
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| adjustment riders then in effect, (ii) special or negotiated |
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| contract
rates, (iii) delivery services tariffs filed pursuant |
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| to Section 16-108, (iv)
real-time pricing, or (v) tariffs that |
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| were in effect prior to October 1, 1996
and that based charges |
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| for services on an index or average of other utilities'
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| charges, but including (vi) any subsequent redesign of such |
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| rates for
tariffed
services that is authorized by the |
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| Commission after notice and hearing.
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| "Competitive service" includes (i) any service that
has |
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| been declared to be competitive pursuant to Section
16-113 of |
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| this Act, (ii) contract service, and (iii) services,
other than |
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| tariffed services, that are related to, but not
necessary for, |
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| the provision of electric power and energy or delivery |
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| services.
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| "Contract service" means (1) services, including the
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| provision of electric power and energy or other services, that
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| are provided by mutual agreement between an electric utility
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| and a retail customer that is located in the electric
utility's |
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| service area, provided that, delivery services shall
not be a |
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| contract service until such services are declared
competitive |
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| pursuant to Section 16-113; and also means (2) the
provision of |
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| electric power and energy by an electric utility
to retail |
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| customers outside the electric utility's service
area pursuant |
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| to Section 16-116. Provided, however, contract
service does not |
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| include electric utility services provided
pursuant to (i) |
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| contracts that retail customers are required
to execute as a |
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| condition of receiving tariffed services, or
(ii) special or |
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| negotiated rate contracts for electric utility
services that |
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| were entered into between an electric utility
and a retail |
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| customer prior to the effective date of this
amendatory Act of |
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LRB095 06420 MJR 33770 a |
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| 1997 and filed with the Commission.
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| "Delivery services" means those services provided by the
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| electric utility that are necessary in order for the
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| transmission and distribution systems to function so that
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| retail customers located in the electric utility's service
area |
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| can receive electric power and energy from suppliers
other than |
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| the electric utility, and shall include, without
limitation, |
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| standard metering and billing services.
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| "Electric utility" means a public utility, as defined in
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| Section 3-105 of this Act, that has a franchise, license,
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| permit or right to furnish or sell electricity to retail
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| customers within a service area.
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| "Mandatory transition period" means the period from |
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| December 16, 1997 ( the
effective date of Public Act 90-561)
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| this amendatory Act of 1997 through
January
1, 2007 and from |
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| the effective date of this amendatory Act of the 95th General |
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| Assembly through 3 years after the effective date of this |
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| amendatory Act of the 95th General Assembly, for residential |
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| customers with all electric residential service offered in the |
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| service areas of all electric utilities that, on December 31, |
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| 2005, served at least 100,000 customers .
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| "Municipal system" shall have the meaning set forth in
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| Section 17-100.
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| "Real-time pricing" means tariffed retail charges for |
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| delivered electric
power and energy that vary
hour-to-hour and |
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| are determined from wholesale market prices using a methodology |
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LRB095 06420 MJR 33770 a |
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| approved by the Illinois Commerce Commission.
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| "Retail customer" means a single entity using electric
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| power or energy at a single premises and that (A) either (i)
is |
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| receiving or is eligible to receive tariffed services from
an |
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| electric utility, or (ii) that is served by a municipal system |
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| or electric
cooperative within any area in which the
municipal |
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| system or electric cooperative is or would be
entitled to |
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| provide service under the law in effect
immediately prior to |
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| the effective date of this amendatory Act
of 1997, or (B) an |
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| entity which on the effective date of this
Act was receiving |
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| electric service from a public utility and
(i) was engaged in |
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| the practice of resale and redistribution
of such electricity |
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| within a building prior to January 2,
1957, or (ii) was |
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| providing lighting services to tenants in a
multi-occupancy |
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| building, but only to the extent such resale,
redistribution or |
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| lighting service is authorized by the
electric utility's |
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| tariffs that were on file with the
Commission on the effective |
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| date of this Act.
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| "Service area" means (i) the geographic area within which
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| an electric utility was lawfully entitled to provide electric
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| power and energy to retail customers as of the effective date
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| of this amendatory Act of 1997, and includes (ii) the location
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| of any retail customer to which the electric utility was
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| lawfully providing electric utility services on such effective
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| date.
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| "Small commercial retail customer" means those
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LRB095 06420 MJR 33770 a |
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| nonresidential retail customers of an electric utility
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| consuming 15,000 kilowatt-hours or less of electricity
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| annually in its service area.
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| "Tariffed service" means services provided to retail
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| customers by an electric utility as defined by its rates on
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| file with the Commission pursuant to the provisions of Article
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| IX of this Act, but shall not include competitive services.
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| "Transition charge" means a charge expressed in cents
per |
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| kilowatt-hour that is calculated for a customer or class
of |
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| customers as follows for each year in which an electric
utility |
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| is entitled to recover transition charges as provided
in |
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| Section 16-108:
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| (1) the amount of revenue that an electric utility
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| would receive from the retail customer or customers if it
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| were serving such customers' electric power and energy
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| requirements as a tariffed service based on (A) all of
the |
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| customers' actual usage during the 3 years
ending 90 days |
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| prior to the date on which such customers
were first |
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| eligible for delivery services pursuant to
Section 16-104, |
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| and (B) on (i) the base rates in effect
on October 1, 1996 |
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| (adjusted for the reductions required
by subsection (b) of |
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| Section 16-111, for any reduction resulting from a rate
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| decrease under Section 16-101(b), for any restatement of |
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| base rates made in
conjunction with an elimination
of the |
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| fuel adjustment clause pursuant to subsection (b), (d), or |
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| (f) of
Section
9-220
and for any removal of decommissioning |
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LRB095 06420 MJR 33770 a |
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| costs from base
rates pursuant to Section 16-114)
and any |
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| separate automatic rate adjustment riders (other
than a |
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| decommissioning rate as defined in Section 16-114)
under |
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| which the customers were receiving or, had they
been |
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| customers, would have received electric power and
energy |
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| from the electric utility during the year
immediately |
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| preceding the date on which such customers
were first |
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| eligible for delivery service pursuant to
Section 16-104, |
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| or (ii) to the extent applicable, any
contract rates, |
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| including contracts or rates for consolidated or
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| aggregated billing, under which such customers were
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| receiving electric power and energy from the electric
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| utility during such year;
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| (2) less the amount of revenue, other than revenue
from |
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| transition charges and decommissioning rates, that the |
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| electric utility
would
receive from such retail customers |
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| for delivery services
provided by the electric utility, |
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| assuming such customers
were taking delivery services for |
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| all of their usage,
based on the delivery services tariffs |
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| in effect during
the year for which the transition charge |
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| is being
calculated and on the usage identified in |
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| paragraph (1);
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| (3) less the market value for the electric power
and |
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| energy that the electric utility would have used to
supply |
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| all of such customers' electric power and energy
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| requirements, as a tariffed service, based on the usage
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LRB095 06420 MJR 33770 a |
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| identified in paragraph (1), with such market value
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| determined in accordance with Section 16-112 of this Act;
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| (4) less the following amount which represents the
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| amount to be attributed to new revenue sources and cost
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| reductions by the electric utility through the end of the
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| period for which transition costs are recovered pursuant
to |
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| Section 16-108, referred to in this Article XVI as a |
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| "mitigation factor":
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| (A) for nonresidential retail customers, an amount |
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| equal to the greater
of (i) 0.5 cents per kilowatt-hour |
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| during the period October 1, 1999
through December 31, |
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| 2004, 0.6 cents per kilowatt-hour in calendar year |
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| 2005,
and 0.9 cents per kilowatt-hour in calendar year |
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| 2006, multiplied in
each year by the usage identified |
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| in paragraph (1), or (ii) an amount equal to
the |
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| following percentages of the amount produced by |
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| applying the applicable
base rates (adjusted as |
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| described in subparagraph (1)(B)) or contract rate to
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| the usage identified in paragraph (1): 8% for the |
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| period October 1, 1999
through December 31, 2002, 10% |
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| in calendar years 2003 and 2004, 11% in calendar
year |
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| 2005 and 12% in calendar year 2006;
and
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| (B) for residential retail customers, an amount
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| equal to the following percentages of the amount |
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| produced by applying the
base rates in effect on |
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| October 1, 1996 (adjusted as
described in subparagraph |
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LRB095 06420 MJR 33770 a |
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| (1)(B)) to the usage
identified in paragraph (1): (i) |
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| 6% from May 1, 2002 through December 31,
2002, (ii) 7% |
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| in calendar years 2003 and 2004, (iii) 8% in calendar |
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| year
2005, and (iv) 10% in calendar year 2006;
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| (5) divided by the usage of such customers
identified |
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| in paragraph (1),
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| provided that the transition charge shall never be less than
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| zero.
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| "Unbundled service" means a component or constituent part
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| of a tariffed service which the electric utility subsequently
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| offers separately to its customers.
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| (Source: P.A. 94-977, eff. 6-30-06.)
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| (220 ILCS 5/16-111)
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| Sec. 16-111. Rates and restructuring transactions during
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| mandatory transition period.
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| (a) During the mandatory transition period,
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| notwithstanding any provision of Article IX of this Act, and
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| except as provided in subsections (b), (d), (e), and (f)
of |
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| this Section, the Commission shall order all electric utilities |
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| that, on December 31, 2005, served at least 100,000 customers |
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| to file and implement tariffs to reinstate all rates for |
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| residential customers with all electric residences paid by the |
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| electric utilities' residential customers with all electric |
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| residences on December 31, 2006, within 10 days after the |
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| effective date of this amendatory Act of the 95th General |
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LRB095 06420 MJR 33770 a |
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| Assembly, and the Commission shall not , prior to 3 years after |
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| the effective date of this amendatory Act of the 95th General |
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| Assembly, (i) initiate,
authorize or order any change by way of |
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| increase (other than in connection with
a request for rate |
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| increase which was filed after September 1, 1997 but prior
to |
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| October 15, 1997, by an electric utility serving less than |
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| 12,500 customers
in this State) or (ii) , (ii)
initiate or, |
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| unless requested by the electric utility,
authorize or order |
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| any change by way of decrease,
restructuring or unbundling |
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| (except as provided in Section 16-109A), in the
rates of any |
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| electric
utility that were in effect on October 1, 1996, or |
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| (iii) in any order approving
any application for a merger |
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| pursuant to Section 7-204 that was pending as of
May 16, 1997, |
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| impose any condition requiring any filing for an increase,
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| decrease, or change in, or other review of, an electric |
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| utility's rates or
enforce any such condition of any such |
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| order;
provided,
however, that this subsection shall not |
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| prohibit the
Commission from:
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| (1) (blank);
approving the application of an electric |
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| utility
to implement an alternative to rate of return |
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| regulation
or a regulatory mechanism that rewards or |
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| penalizes the
electric utility through adjustment of rates |
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| based on
utility performance, pursuant to Section 9-244;
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| (2) authorizing an electric utility to eliminate its
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| fuel adjustment clause and adjust its base rate tariffs
in |
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| accordance with subsection (b), (d), or (f) of Section
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| 9-220 of this Act, to fix its fuel adjustment factor in
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| accordance with subsection (c) of Section 9-220 of this
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| Act, or to eliminate its fuel adjustment clause in |
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| accordance with subsection
(e) of Section 9-220 of this |
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| Act;
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| (3) ordering into effect tariffs for delivery
services |
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| and transition charges in accordance with
Sections 16-104 |
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| and 16-108, for real-time pricing in
accordance with |
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| Section 16-107, or the options required
by Section 16-110 |
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| and subsection (n) of 16-112,
allowing a billing experiment |
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| in accordance with
Section 16-106, or modifying delivery |
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| services tariffs in accordance with
Section 16-109; or
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| (4) ordering or allowing into effect any tariff to
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| recover charges pursuant to Sections 9-201.5, 9-220.1,
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| 9-221, 9-222 (except as provided in Section 9-222.1), |
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| 16-108, and 16-114 of
this
Act, Section 5-5 of the |
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| Electricity Infrastructure Maintenance Fee Law, Section
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| 6-5 of the Renewable Energy, Energy Efficiency, and Coal |
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| Resources Development
Law of 1997, and Section 13 of the |
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| Energy Assistance Act.
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| After December 31, 2004, the provisions of this subsection |
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| (a) shall not
apply to an electric utility whose average |
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| residential retail rate was less
than or equal to 90% of the |
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| average residential retail rate for the "Midwest
Utilities", as |
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| that term is defined in subsection (b) of this Section, based |
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| on
data reported on Form 1 to the Federal Energy Regulatory |
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LRB095 06420 MJR 33770 a |
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| Commission for
calendar year 1995, and which served between |
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| 150,000 and 250,000 retail
customers in this State on January |
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| 1, 1995
unless the electric utility or its holding company has |
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| been acquired by or
merged with an affiliate of another |
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| electric utility subsequent to January 1,
2002. This exemption |
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| shall be limited to
this subsection (a) and shall not extend to |
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| any other provisions of this Act.
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| (b) Notwithstanding the provisions of subsection (a), each |
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| Illinois electric
utility serving more than 12,500 customers in |
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| Illinois shall file tariffs (i)
reducing, effective August 1, |
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| 1998, each component of its base rates to
residential retail
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| customers by 15% from the base rates in effect immediately |
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| prior to January 1,
1998 and (ii) if the public utility |
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| provides electric service to (A) more
than
500,000
customers |
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| but less than 1,000,000 customers in this State on January 1,
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| 1999,
reducing, effective May 1, 2002, each component of its
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| base rates to residential retail customers by an additional 5% |
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| from the base
rates in effect immediately prior to January 1, |
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| 1998, or (B) at least
1,000,000 customers in this State on |
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| January 1, 1999,
reducing, effective October 1, 2001, each |
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| component of its
base rates to residential retail customers by |
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| an additional
5% from the base rates in effect immediately |
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| prior to
January 1, 1998.
Provided, however, that (A) if an |
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| electric utility's average residential
retail
rate is less than |
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| or equal to the average residential retail
rate for a group
of |
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| Midwest Utilities (consisting of all investor-owned electric |
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| utilities with
annual system peaks in excess of 1000 megawatts |
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| in the States of Illinois,
Indiana, Iowa, Kentucky, Michigan, |
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| Missouri, Ohio, and Wisconsin), based on
data
reported on Form |
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| 1 to the Federal Energy Regulatory Commission for calendar
year |
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| 1995,
then it shall only be required to file tariffs (i) |
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| reducing, effective August
1, 1998, each component of its base |
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| rates to residential
retail customers by
5% from the base rates |
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| in effect immediately prior to January 1, 1998, (ii)
reducing, |
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| effective October 1, 2000, each component of its base
rates to |
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| residential retail customers by the lesser of 5% of the base |
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| rates in
effect immediately prior to January 1, 1998 or the
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| percentage by which the electric utility's average residential |
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| retail rate
exceeds the average residential retail rate of the |
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| Midwest Utilities,
based on data
reported on Form 1 to the |
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| Federal Energy Regulatory Commission for calendar
year 1999, |
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| and (iii) reducing, effective October 1, 2002, each component |
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| of its
base rates to
residential retail customers by an
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| additional amount equal to the lesser of 5% of the base rates |
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| in effect
immediately prior to January 1, 1998 or the |
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| percentage by which
the electric utility's average residential |
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| retail rate exceeds the average
residential retail rate of the |
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| Midwest Utilities,
based on data reported on Form
1 to the |
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| Federal Energy Regulatory Commission for calendar year 2001; |
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| and (B)
if the average residential retail rate of an electric |
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| utility serving between
150,000
and 250,000 retail customers in |
26 |
| this State on January 1, 1995 is less than or
equal to 90% of
|
|
|
|
09500HB2970ham001 |
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LRB095 06420 MJR 33770 a |
|
|
1 |
| the average residential retail rate for the Midwest Utilities, |
2 |
| based on data
reported
on Form 1 to the Federal Energy |
3 |
| Regulatory Commission for calendar year 1995,
then it shall |
4 |
| only be required to file tariffs (i) reducing, effective August
|
5 |
| 1,
1998, each component of its base rates to residential retail |
6 |
| customers by 2%
from the base rates in effect immediately prior |
7 |
| to January 1, 1998; (ii)
reducing, effective October 1, 2000, |
8 |
| each component of its base rates to
residential retail |
9 |
| customers by 2% from the base rate in effect immediately
prior |
10 |
| to January 1, 1998; and (iii) reducing, effective October 1, |
11 |
| 2002, each
component of its base rates to residential retail |
12 |
| customers by 1% from the base
rates in effect immediately prior |
13 |
| to January 1, 1998.
Provided,
further, that any electric |
14 |
| utility for which a decrease in base rates has been
or is |
15 |
| placed into effect between October 1, 1996 and the dates |
16 |
| specified in the
preceding sentences of this subsection, other |
17 |
| than pursuant to the requirements
of this subsection,
shall be |
18 |
| entitled to reduce the amount of any reduction or reductions in |
19 |
| its
base rates required by this subsection by the amount of |
20 |
| such other decrease.
The tariffs required under this
subsection |
21 |
| shall be filed 45 days in advance of
the effective date.
|
22 |
| Notwithstanding anything to the contrary in Section 9-220 of |
23 |
| this Act, no
restatement of base rates in conjunction with the |
24 |
| elimination of a fuel
adjustment clause under that Section |
25 |
| shall result in a lesser decrease in base
rates than customers |
26 |
| would otherwise receive under this subsection had the
electric |
|
|
|
09500HB2970ham001 |
- 16 - |
LRB095 06420 MJR 33770 a |
|
|
1 |
| utility's fuel adjustment clause not been eliminated.
|
2 |
| (c) Any utility reducing its base rates by 15% on August 1, |
3 |
| 1998 pursuant
to
subsection
(b)
shall include the following |
4 |
| statement on its bills for residential customers
from August 1 |
5 |
| through December 31, 1998: "Effective August 1, 1998, your |
6 |
| rates
have been
reduced by 15% by the Electric Service
Customer |
7 |
| Choice and Rate Relief Law of 1997 passed by the Illinois |
8 |
| General
Assembly.". Any utility reducing its base rates by 5% |
9 |
| on August 1, 1998,
pursuant to subsection (b) shall include the |
10 |
| following statement on its bills
for residential customers from |
11 |
| August 1 through December 31, 1998: "Effective
August 1,
1998, |
12 |
| your rates have been reduced by 5% by the Electric Service |
13 |
| Customer
Choice and Rate Relief Law of 1997 passed by the |
14 |
| Illinois General Assembly.".
|
15 |
| Any utility reducing its base rates by 2% on August 1, 1998 |
16 |
| pursuant to
subsection (b) shall include the following |
17 |
| statement on its bills for
residential customers from August 1 |
18 |
| through December 31, 1998: "Effective
August 1, 1998, your |
19 |
| rates have been reduced by 2% by the Electric Service
Customer |
20 |
| Choice and Rate Relief Law of 1997 passed by the Illinois |
21 |
| General
Assembly.".
|
22 |
| (d) During the mandatory transition period, but not before |
23 |
| January 1, 2000,
and notwithstanding
the provisions of |
24 |
| subsection (a), an electric
utility may request an increase in |
25 |
| its base rates if the
electric utility demonstrates that the |
26 |
| 2-year average of its
earned rate of return on common equity, |
|
|
|
09500HB2970ham001 |
- 17 - |
LRB095 06420 MJR 33770 a |
|
|
1 |
| calculated as its net
income applicable to common stock divided |
2 |
| by the average of
its beginning and ending balances of common |
3 |
| equity using data
reported in the electric utility's Form 1 |
4 |
| report to the
Federal Energy Regulatory Commission but adjusted |
5 |
| to remove
the effects of accelerated depreciation or |
6 |
| amortization or
other transition or mitigation measures |
7 |
| implemented by the
electric utility pursuant to subsection (g) |
8 |
| of this Section
and the effect of any refund paid pursuant to |
9 |
| subsection (e)
of this Section, is
below the 2-year average for |
10 |
| the same 2 years of the monthly average yields of
30-year
U.S. |
11 |
| Treasury bonds published by the Board of Governors of the
|
12 |
| Federal Reserve System in its weekly H.15 Statistical Release |
13 |
| or
successor publication.
The Commission shall review the |
14 |
| electric utility's request, and may review the
justness and |
15 |
| reasonableness of all rates for tariffed services, in
|
16 |
| accordance with the provisions of Article IX of this Act, |
17 |
| provided that the
Commission shall consider any special or |
18 |
| negotiated adjustments to the
revenue requirement agreed to |
19 |
| between the electric utility and the other
parties to the |
20 |
| proceeding. In setting rates under this Section, the Commission
|
21 |
| shall exclude the costs and revenues that are associated with |
22 |
| competitive
services and any billing or pricing experiments |
23 |
| conducted under Section 16-106.
|
24 |
| (e) For the purposes of this subsection (e) all |
25 |
| calculations and
comparisons shall be performed for the |
26 |
| Illinois operations
of
multijurisdictional utilities. During |
|
|
|
09500HB2970ham001 |
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LRB095 06420 MJR 33770 a |
|
|
1 |
| the mandatory transition period,
notwithstanding the |
2 |
| provisions
of subsection (a), if the 2-year
average of an |
3 |
| electric utility's earned rate of return on
common equity, |
4 |
| calculated as its net income applicable to
common stock divided |
5 |
| by the average of its beginning and
ending balances of common |
6 |
| equity using data reported in
the electric utility's Form 1 |
7 |
| report to the Federal
Energy Regulatory Commission but adjusted |
8 |
| to remove the
effect of any refund paid under this subsection |
9 |
| (e),
and further adjusted to include the annual amortization of |
10 |
| any difference
between the consideration received by an |
11 |
| affiliated interest of the electric
utility in the sale of an |
12 |
| asset which had been sold or transferred by the
electric |
13 |
| utility to the affiliated interest subsequent to the effective |
14 |
| date of
this
amendatory Act of 1997 and the consideration for |
15 |
| which such asset had been sold
or transferred to the affiliated |
16 |
| interest, with such difference to be amortized
ratably from the |
17 |
| date of the sale by the affiliated interest to December 31,
|
18 |
| 2006,
exceeds the 2-year average of the Index for the same 2
|
19 |
| years by 1.5 or more percentage points, the electric
utility |
20 |
| shall make refunds to customers beginning the
first billing day |
21 |
| of April in the following year in the
manner described in |
22 |
| paragraph (3) of this subsection.
For purposes of this |
23 |
| subsection (e),
the "Index" shall be the sum of (A) the average |
24 |
| for
the 12 months ended September 30
of the monthly average |
25 |
| yields of 30-year U.S. Treasury
bonds published by the Board of |
26 |
| Governors of the Federal
Reserve System in its weekly H.15 |
|
|
|
09500HB2970ham001 |
- 19 - |
LRB095 06420 MJR 33770 a |
|
|
1 |
| Statistical Release or
successor publication for each year 1998 |
2 |
| through 2006, and (B) (i)
4.00
percentage points for
each of |
3 |
| the 12-month periods ending September 30, 1998 through
|
4 |
| September 30, 1999 or
8.00 percentage points if the electric |
5 |
| utility's average
residential retail rate is less than or equal |
6 |
| to 90% of the average residential
retail rate
for the "Midwest |
7 |
| Utilities", as that term is defined in subsection (b) of this
|
8 |
| Section, based on data reported on Form 1 to the Federal Energy |
9 |
| Regulatory
Commission for calendar year 1995, and the electric |
10 |
| utility served between
150,000 and 250,000 retail customers on |
11 |
| January 1, 1995,
(ii) 7.00
percentage points for each of the |
12 |
| 12-month periods ending September 30, 2000
through September |
13 |
| 30, 2006 if the electric utility was providing
service to
at |
14 |
| least 1,000,000 customers in this State on January 1, 1999,
or |
15 |
| 9.00 percentage points if the
electric
utility's
average |
16 |
| residential retail rate is less than or equal to 90% of the |
17 |
| average
residential retail rate for the "Midwest Utilities", as |
18 |
| that term is defined in
subsection (b) of this Section, based |
19 |
| on data reported on Form 1 to the Federal
Energy Regulatory |
20 |
| Commission for calendar year 1995 and the electric utility
|
21 |
| served between 150,000 and 250,000 retail customers in this |
22 |
| State on January
1, 1995, (iii) 11.00 percentage points for |
23 |
| each of the
12-month periods ending
September 30, 2000 through |
24 |
| September 30, 2006, but only if the
electric
utility's average |
25 |
| residential retail rate is less than or equal to 90% of the
|
26 |
| average residential retail rate for the "Midwest Utilities", as |
|
|
|
09500HB2970ham001 |
- 20 - |
LRB095 06420 MJR 33770 a |
|
|
1 |
| that term is
defined in subsection (b) of this Section, based |
2 |
| on data reported on Form 1 to
the Federal Energy Regulatory |
3 |
| Commission for calendar year 1995, the electric
utility served |
4 |
| between 150,000 and 250,000 retail customers in this State on
|
5 |
| January 1, 1995, and the electric utility offers delivery |
6 |
| services on or before
June 1, 2000 to retail customers whose |
7 |
| annual electric energy use comprises 33%
of the kilowatt hour |
8 |
| sales to that group of retail
customers that are classified |
9 |
| under Division D, Groups 20 through 39 of the
Standard |
10 |
| Industrial Classifications set forth in the Standard |
11 |
| Industrial
Classification Manual published by the United |
12 |
| States Office of Management and
Budget, excluding the kilowatt |
13 |
| hour sales to those customers that are eligible
for delivery |
14 |
| services pursuant to Section 16-104(a)(1)(i), and offers |
15 |
| delivery
services to its remaining retail customers classified |
16 |
| under Division D, Groups
20 through 39 on or before October 1, |
17 |
| 2000, and, provided further, that the
electric
utility commits |
18 |
| not to petition pursuant to Section 16-108(f) for entry of an
|
19 |
| order by the Commission authorizing the electric utility to |
20 |
| implement
transition charges for an additional period after |
21 |
| December 31, 2006, or (iv)
5.00 percentage points for each of |
22 |
| the 12-month periods
ending September 30, 2000 through |
23 |
| September 30, 2006 for all other
electric
utilities or 7.00 |
24 |
| percentage points for such utilities for
each of the 12-month |
25 |
| periods ending September 30, 2000 through September 30,
2006 |
26 |
| for any such utility that commits not to petition pursuant to
|
|
|
|
09500HB2970ham001 |
- 21 - |
LRB095 06420 MJR 33770 a |
|
|
1 |
| Section
16-108(f) for entry of an order by the Commission |
2 |
| authorizing the electric
utility to implement transition |
3 |
| charges for an additional period after December
31, 2006 or |
4 |
| 11.00 percentage points for each of the
12-month periods ending |
5 |
| September 30, 2005 and September 30, 2006 for each
electric |
6 |
| utility providing service to fewer than 6,500, or between |
7 |
| 75,000 and
150,000, electric
retail customers in this State
on |
8 |
| January 1, 1995 if such utility commits not to petition |
9 |
| pursuant to Section
16-108(f) for entry of an order by the |
10 |
| Commission authorizing the electric
utility to implement |
11 |
| transition charges for an additional period after December
31, |
12 |
| 2006.
|
13 |
| (1) For purposes of this subsection (e), "excess
|
14 |
| earnings" means the difference between (A) the 2-year
|
15 |
| average of the electric utility's earned rate of return
on |
16 |
| common equity, less (B) the 2-year average of the sum
of |
17 |
| (i) the Index applicable to each of the 2 years and
(ii) |
18 |
| 1.5 percentage points; provided, that "excess
earnings" |
19 |
| shall never be less than zero.
|
20 |
| (2) On or before March 31 of each year 2000 through |
21 |
| 2007 each
electric
utility shall
file a report with the |
22 |
| Commission showing its earned rate
of return on common |
23 |
| equity, calculated in accordance with
this subsection, for |
24 |
| the preceding calendar year and the
average for the |
25 |
| preceding 2 calendar years.
|
26 |
| (3) If an electric utility has excess earnings,
|
|
|
|
09500HB2970ham001 |
- 22 - |
LRB095 06420 MJR 33770 a |
|
|
1 |
| determined in accordance with paragraphs (1) and (2) of
|
2 |
| this subsection, the refunds which the electric utility
|
3 |
| shall pay to its customers beginning the first billing
day |
4 |
| of April in the following year shall be calculated
and |
5 |
| applied as follows:
|
6 |
| (i) The electric utility's excess earnings
shall |
7 |
| be multiplied by the average of the beginning
and |
8 |
| ending balances of the electric utility's common
|
9 |
| equity for the 2-year period in which excess
earnings |
10 |
| occurred.
|
11 |
| (ii) The result of the calculation in (i) shall
be |
12 |
| multiplied by 0.50 and then divided by a number
equal |
13 |
| to 1 minus the electric utility's composite
federal and |
14 |
| State income tax rate.
|
15 |
| (iii) The result of the calculation in (ii)
shall |
16 |
| be divided by the sum of the electric
utility's |
17 |
| projected total kilowatt-hour sales to
retail |
18 |
| customers plus projected kilowatt-hours to be
|
19 |
| delivered to delivery services customers over a one
|
20 |
| year period beginning with the first billing date in
|
21 |
| April in the succeeding year to determine a cents
per |
22 |
| kilowatt-hour refund factor.
|
23 |
| (iv) The cents per kilowatt-hour refund factor
|
24 |
| calculated in (iii) shall be credited to the
electric |
25 |
| utility's customers by applying the factor
on the |
26 |
| customer's monthly bills to each kilowatt-hour sold or |
|
|
|
09500HB2970ham001 |
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LRB095 06420 MJR 33770 a |
|
|
1 |
| delivered until
the total amount
calculated in (ii) has |
2 |
| been paid to customers.
|
3 |
| (f) During the mandatory transition period, an electric
|
4 |
| utility may file revised tariffs reducing the price of any
|
5 |
| tariffed service offered by the electric utility for all
|
6 |
| customers taking that tariffed service, which shall be
|
7 |
| effective 7 days after filing.
|
8 |
| (g) During the mandatory transition period, an electric
|
9 |
| utility may, without obtaining any approval of the Commission |
10 |
| other than that
provided for in this subsection and
|
11 |
| notwithstanding any other provision of this Act or any rule or
|
12 |
| regulation of the Commission that would require such approval:
|
13 |
| (1) implement a reorganization, other than a merger of |
14 |
| 2 or
more public utilities as defined in Section 3-105 or |
15 |
| their
holding companies;
|
16 |
| (2) retire generating plants from service;
|
17 |
| (3) sell, assign, lease or otherwise transfer assets to |
18 |
| an
affiliated or unaffiliated entity and as part of such
|
19 |
| transaction enter into service agreements, power purchase
|
20 |
| agreements, or other agreements with the transferee; |
21 |
| provided,
however, that the prices, terms and conditions of |
22 |
| any power
purchase agreement must be approved or allowed |
23 |
| into effect by
the Federal Energy Regulatory Commission; or
|
24 |
| (4) use any
accelerated cost recovery method including |
25 |
| accelerated depreciation,
accelerated amortization or |
26 |
| other capital recovery
methods, or record reductions to the |
|
|
|
09500HB2970ham001 |
- 24 - |
LRB095 06420 MJR 33770 a |
|
|
1 |
| original cost of its
assets.
|
2 |
| In order to implement a reorganization, retire
generating |
3 |
| plants from service, or sell, assign, lease or
otherwise |
4 |
| transfer assets pursuant to this Section, the
electric utility |
5 |
| shall comply with subsections (c) and (d) of Section
16-128, if |
6 |
| applicable, and subsection (k) of this Section, if applicable,
|
7 |
| and provide the Commission with at
least 30 days notice of the |
8 |
| proposed reorganization or
transaction, which notice shall |
9 |
| include the following
information:
|
10 |
| (i) a complete statement of the entries that the
|
11 |
| electric utility will make on its books and records of
|
12 |
| account to implement the proposed reorganization or
|
13 |
| transaction together with a certification from an
|
14 |
| independent certified public accountant that such |
15 |
| entries
are in accord with generally accepted |
16 |
| accounting
principles and, if the Commission has |
17 |
| previously approved
guidelines for cost allocations |
18 |
| between the utility and
its affiliates, a |
19 |
| certification from the chief accounting
officer of the |
20 |
| utility that such entries are in accord
with those cost |
21 |
| allocation guidelines;
|
22 |
| (ii) a description of how the electric utility will
|
23 |
| use proceeds of any sale, assignment, lease or transfer
|
24 |
| to retire debt or otherwise reduce or recover the costs
|
25 |
| of services provided by such electric utility;
|
26 |
| (iii) a list of all federal approvals or approvals
|
|
|
|
09500HB2970ham001 |
- 25 - |
LRB095 06420 MJR 33770 a |
|
|
1 |
| required from departments and agencies of this State,
|
2 |
| other than the Commission, that the electric utility |
3 |
| has
or will obtain before implementing the |
4 |
| reorganization or
transaction;
|
5 |
| (iv) an irrevocable commitment by the electric
|
6 |
| utility that it will not, as a result of the |
7 |
| transaction,
impose any stranded cost charges that it |
8 |
| might otherwise
be allowed to charge retail customers |
9 |
| under federal law
or increase the transition charges |
10 |
| that it is otherwise
entitled to collect under this |
11 |
| Article XVI; and
|
12 |
| (v) if the electric utility proposes to sell,
|
13 |
| assign, lease or otherwise transfer a generating plant
|
14 |
| that brings the amount of net dependable generating
|
15 |
| capacity transferred pursuant to this subsection to an
|
16 |
| amount equal to or greater than 15% of the electric
|
17 |
| utility's net dependable capacity as of the effective
|
18 |
| date of this amendatory Act of 1997, and enters into a
|
19 |
| power purchase agreement with the entity to which such
|
20 |
| generating plant is sold, assigned, leased, or |
21 |
| otherwise
transferred, the electric utility also |
22 |
| agrees, if its
fuel adjustment clause has not already |
23 |
| been eliminated,
to eliminate its fuel adjustment |
24 |
| clause in accordance
with subsection (b) of Section |
25 |
| 9-220 for a period of time
equal to the length of any |
26 |
| such power purchase agreement
or successor agreement, |
|
|
|
09500HB2970ham001 |
- 26 - |
LRB095 06420 MJR 33770 a |
|
|
1 |
| or until January 1, 2005,
whichever is longer; if the |
2 |
| capacity of the generating
plant so transferred and |
3 |
| related power purchase agreement
does not result in the |
4 |
| elimination of the fuel adjustment
clause under this |
5 |
| subsection, and the fuel adjustment clause has not |
6 |
| already
been eliminated, the electric utility shall
|
7 |
| agree that the costs associated with the transferred
|
8 |
| plant that are included in the calculation of the rate
|
9 |
| per kilowatt-hour to be applied pursuant to the |
10 |
| electric
utility's fuel adjustment clause during such |
11 |
| period shall
not exceed the per kilowatt-hour cost |
12 |
| associated with
such generating plant included in the |
13 |
| electric utility's
fuel adjustment clause during the |
14 |
| full calendar year
preceding the transfer, with such |
15 |
| limit to be adjusted
each year thereafter by the Gross |
16 |
| Domestic Product
Implicit Price Deflator.
|
17 |
| (vi) In addition, if the electric utility proposes |
18 |
| to sell, assign, or
lease, (A) either (1) an amount of |
19 |
| generating plant that brings the amount of
net |
20 |
| dependable generating capacity transferred pursuant to |
21 |
| this subsection to
an amount equal to or greater than |
22 |
| 15% of its net dependable capacity on the
effective |
23 |
| date of this amendatory Act of 1997, or (2) one or more |
24 |
| generating
plants with a total net dependable capacity |
25 |
| of 1100 megawatts, or (B)
transmission and |
26 |
| distribution facilities that either (1) bring the |
|
|
|
09500HB2970ham001 |
- 27 - |
LRB095 06420 MJR 33770 a |
|
|
1 |
| amount of
transmission and distribution facilities |
2 |
| transferred pursuant to this
subsection to an amount |
3 |
| equal to or greater than 15% of the electric utility's
|
4 |
| total depreciated original cost investment in such |
5 |
| facilities, or (2) represent
an investment of |
6 |
| $25,000,000 in terms of total depreciated original |
7 |
| cost, the
electric utility shall provide, in
addition |
8 |
| to the information listed in subparagraphs
(i) through |
9 |
| (v), the following information: (A) a description of |
10 |
| how the
electric utility will meet its service |
11 |
| obligations under this Act in a safe and
reliable |
12 |
| manner and (B) the electric utility's projected earned |
13 |
| rate of
return on common equity, calculated in |
14 |
| accordance with subsection (d) of this
Section, for |
15 |
| each year from the date of the notice through December |
16 |
| 31,
2006
both with and without the proposed |
17 |
| transaction. If
the Commission has not issued an order |
18 |
| initiating a hearing on the proposed
transaction |
19 |
| within 30 days after the date the electric utility's |
20 |
| notice is
filed, the transaction shall be deemed |
21 |
| approved. The Commission may, after
notice and |
22 |
| hearing,
prohibit the proposed transaction if it makes |
23 |
| either or both of the following
findings: (1) that the |
24 |
| proposed transaction will render the electric utility
|
25 |
| unable to provide its tariffed services in a safe and |
26 |
| reliable manner, or (2)
that there is a strong |
|
|
|
09500HB2970ham001 |
- 28 - |
LRB095 06420 MJR 33770 a |
|
|
1 |
| likelihood that consummation of the proposed |
2 |
| transaction
will result in the electric utility being |
3 |
| entitled to request an increase in
its base rates |
4 |
| during the mandatory transition period pursuant to |
5 |
| subsection
(d) of this Section. Any hearing initiated |
6 |
| by the Commission into the proposed
transaction shall |
7 |
| be completed, and the Commission's final order |
8 |
| approving or
prohibiting the proposed transaction |
9 |
| shall be entered, within 90 days after the
date the |
10 |
| electric utility's notice was filed.
Provided, |
11 |
| however, that a sale, assignment, or lease of |
12 |
| transmission facilities
to an independent system |
13 |
| operator that meets the requirements of Section 16-126
|
14 |
| shall not be subject to Commission approval under this |
15 |
| Section.
|
16 |
| In any proceeding conducted by the Commission |
17 |
| pursuant to this
subparagraph
(vi), intervention shall |
18 |
| be limited to parties with a direct interest in the
|
19 |
| transaction which is the subject of the hearing and any |
20 |
| statutory consumer
protection agency as defined in |
21 |
| subsection (d) of Section 9-102.1.
Notwithstanding the |
22 |
| provisions of Section 10-113 of this Act, any |
23 |
| application
seeking rehearing of an order issued under |
24 |
| this subparagraph (vi), whether
filed by the electric |
25 |
| utility or by an intervening party, shall be filed |
26 |
| within
10 days after service of the order.
|
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09500HB2970ham001 |
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LRB095 06420 MJR 33770 a |
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| The Commission shall not in any subsequent proceeding or
|
2 |
| otherwise, review such a reorganization or other transaction
|
3 |
| authorized by this Section, but shall retain the authority to |
4 |
| allocate costs as
stated in Section 16-111(i). An entity to |
5 |
| which an electric
utility sells, assigns, leases or transfers |
6 |
| assets pursuant to
this subsection (g) shall not, as a result |
7 |
| of the transactions
specified in this subsection (g), be deemed |
8 |
| a public utility
as defined in Section 3-105. Nothing in this |
9 |
| subsection (g)
shall change any requirement under the |
10 |
| jurisdiction of the
Illinois Department of Nuclear Safety |
11 |
| including, but not
limited to, the payment of fees. Nothing in |
12 |
| this subsection
(g) shall exempt a utility from obtaining a |
13 |
| certificate
pursuant to Section 8-406 of this Act for the |
14 |
| construction of
a new electric generating facility. Nothing in |
15 |
| this
subsection (g) is intended to exempt the transactions |
16 |
| hereunder from the
operation of the federal or State antitrust
|
17 |
| laws. Nothing in this subsection (g) shall require an electric
|
18 |
| utility to use the procedures specified in this subsection for
|
19 |
| any of the transactions specified herein. Any other procedure
|
20 |
| available under this Act may, at the electric utility's
|
21 |
| election, be used for any such transaction.
|
22 |
| (h) During the mandatory transition period, the
Commission |
23 |
| shall not establish or use any rates of
depreciation, which for |
24 |
| purposes of this subsection shall
include amortization, for any |
25 |
| electric utility other than
those established pursuant to |
26 |
| subsection (c) of Section 5-104
of this Act or utilized |
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09500HB2970ham001 |
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LRB095 06420 MJR 33770 a |
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| pursuant to subsection (g) of this
Section. Provided, however, |
2 |
| that in any proceeding to review an electric
utility's rates |
3 |
| for tariffed services pursuant to Section 9-201, 9-202, 9-250
|
4 |
| or
16-111(d) of this Act, the Commission may establish new |
5 |
| rates
of depreciation for the electric utility in the same |
6 |
| manner provided in
subsection (d) of Section 5-104 of this Act.
|
7 |
| An electric utility implementing an accelerated cost
recovery |
8 |
| method including accelerated depreciation,
accelerated |
9 |
| amortization or other capital recovery methods, or
recording |
10 |
| reductions to the original cost of its assets,
pursuant to |
11 |
| subsection (g) of this Section, shall file a
statement with the |
12 |
| Commission describing the accelerated cost
recovery method to |
13 |
| be implemented or the reduction in the
original cost of its |
14 |
| assets to be recorded. Upon the filing
of such statement, the |
15 |
| accelerated cost recovery method or the
reduction in the |
16 |
| original cost of assets shall be deemed to be
approved by the |
17 |
| Commission as though an order had been entered
by the |
18 |
| Commission.
|
19 |
| (i) Subsequent to the mandatory transition period, the
|
20 |
| Commission, in any proceeding to establish rates and charges
|
21 |
| for tariffed services offered by an electric utility, shall
|
22 |
| consider only (1) the then current or projected revenues,
|
23 |
| costs, investments and cost of capital directly or
indirectly |
24 |
| associated with the provision of such tariffed
services; (2) |
25 |
| collection of transition charges in accordance
with Sections |
26 |
| 16-102 and 16-108 of this Act; (3) recovery of
any employee |
|
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09500HB2970ham001 |
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LRB095 06420 MJR 33770 a |
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| transition costs as described in Section 16-128
which the |
2 |
| electric utility is continuing to incur, including
recovery of |
3 |
| any unamortized portion of such costs previously
incurred or |
4 |
| committed, with such costs to be equitably
allocated among |
5 |
| bundled services, delivery services, and
contracts with |
6 |
| alternative retail electric suppliers; and (4)
recovery of the |
7 |
| costs associated with the electric utility's
compliance with |
8 |
| decommissioning funding requirements; and
shall not consider |
9 |
| any other revenues, costs, investments
or cost of capital of |
10 |
| either the electric utility or of any
affiliate of the electric |
11 |
| utility that are not associated with the provision of
tariffed |
12 |
| services. In setting rates for tariffed services, the |
13 |
| Commission
shall equitably allocate joint and common costs and |
14 |
| investments between the
electric utility's competitive and |
15 |
| tariffed services. In determining the
justness and
|
16 |
| reasonableness of the electric power and energy component of
an |
17 |
| electric utility's rates for tariffed services subsequent
to |
18 |
| the mandatory transition period and prior to the time that
the |
19 |
| provision of such electric power and energy is declared
|
20 |
| competitive, the Commission shall consider the extent to which
|
21 |
| the electric utility's tariffed rates for such component for
|
22 |
| each customer class exceed the market value determined
pursuant |
23 |
| to Section 16-112, and, if the electric power and
energy |
24 |
| component of such tariffed rate exceeds the market
value by |
25 |
| more than 10% for any customer class, may
establish such |
26 |
| electric power and energy component at a rate
equal to the |
|
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09500HB2970ham001 |
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LRB095 06420 MJR 33770 a |
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| market value plus 10%.
In any such case, the Commission may |
2 |
| also elect to extend the provisions of
Section 16-111(e) for |
3 |
| any period in which the electric utility is collecting
|
4 |
| transition charges, using information applicable to such |
5 |
| period.
|
6 |
| (j) During the mandatory transition period, an electric
|
7 |
| utility may elect to transfer to a non-operating income
account |
8 |
| under the Commission's Uniform System of Accounts
either or |
9 |
| both of (i) an amount of unamortized investment tax
credit that |
10 |
| is in addition to the ratable amount which is
credited to the |
11 |
| electric utility's operating income account
for the year in |
12 |
| accordance with Section 46(f)(2) of the
federal Internal |
13 |
| Revenue Code of 1986, as in effect prior to P.L. 101-508, or
|
14 |
| (ii) "excess tax reserves",
as that term is defined in Section |
15 |
| 203(e)(2)(A) of the federal
Tax Reform Act of 1986, provided |
16 |
| that (A) the amount
transferred may not exceed the amount of |
17 |
| the electric
utility's assets that were created pursuant to |
18 |
| Statement of
Financial Accounting Standards No. 71 which the |
19 |
| electric
utility has written off during the mandatory |
20 |
| transition
period, and (B) the transfer shall not be effective |
21 |
| until
approved by the Internal Revenue Service. An electric |
22 |
| utility
electing to make such a transfer shall file a statement |
23 |
| with
the Commission stating the amount and timing of the |
24 |
| transfer
for which it intends to request approval of the |
25 |
| Internal
Revenue Service, along with a copy of its proposed |
26 |
| request to
the Internal Revenue Service for a ruling. The |
|
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09500HB2970ham001 |
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LRB095 06420 MJR 33770 a |
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|
1 |
| Commission
shall issue an order within 14 days after the |
2 |
| electric
utility's filing approving, subject to receipt of |
3 |
| approval
from the Internal Revenue Service, the proposed |
4 |
| transfer.
|
5 |
| (k) If an electric utility is selling or transferring
to a |
6 |
| single buyer 5 or more generating plants located in this State |
7 |
| with a
total net dependable capacity of 5000 megawatts or more
|
8 |
| pursuant to subsection (g) of this Section and has obtained
a |
9 |
| sale price or consideration that exceeds 200% of
the book value |
10 |
| of such plants, the electric utility must
provide to the |
11 |
| Governor, the President of the Illinois
Senate, the Minority |
12 |
| Leader of the Illinois Senate, the
Speaker of the Illinois |
13 |
| House of Representatives, and the
Minority Leader of the |
14 |
| Illinois House of Representatives no
later than 15 days after |
15 |
| filing its notice under subsection
(g) of this Section or 5 |
16 |
| days after the date on which this
subsection (k) becomes law, |
17 |
| whichever is later, a written
commitment in which such electric |
18 |
| utility agrees to expend
$2 billion outside the corporate |
19 |
| limits of any municipality
with 1,000,000 or more inhabitants |
20 |
| within such electric
utility's service area, over a 6-year |
21 |
| period beginning
with the calendar year in which the notice is |
22 |
| filed, on
projects, programs, and improvements within its |
23 |
| service area
relating to transmission and distribution |
24 |
| including, without
limitation, infrastructure expansion, |
25 |
| repair and
replacement, capital investments, operations and
|
26 |
| maintenance, and vegetation management.
|
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09500HB2970ham001 |
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LRB095 06420 MJR 33770 a |
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| (Source: P.A. 91-50, eff. 6-30-99; 92-537, eff. 6-6-02; 92-690, |
2 |
| eff. 7-18-02;
revised 9-10-02.)
|
3 |
| (220 ILCS 5/16-113)
|
4 |
| Sec. 16-113. Declaration of service as a competitive
|
5 |
| service.
|
6 |
| (a) An electric utility may, by petition, request the |
7 |
| Commission to declare
a
tariffed service provided by the |
8 |
| electric
utility to be a competitive service. The electric |
9 |
| utility
shall give notice of its petition to the public in the |
10 |
| same
manner that public notice is provided for proposed general
|
11 |
| increases in rates for tariffed services, in accordance with
|
12 |
| rules and regulations prescribed by the Commission. The
|
13 |
| Commission shall hold a hearing and
on the petition if a |
14 |
| hearing
is deemed necessary by the Commission. The Commission
|
15 |
| shall
declare the class of tariffed service to be a competitive |
16 |
| service for some
identifiable customer segment or group of |
17 |
| customers, or some
clearly defined geographical area within the |
18 |
| electric
utility's service area, only after the electric |
19 |
| utility demonstrates that at least 33% of the customers in the |
20 |
| electric utility's service area that are eligible to take the |
21 |
| class of tariffed service instead take service from alternative |
22 |
| retail electric suppliers, as defined in Section 16-102, and |
23 |
| that at least 3 alternative retail electric suppliers provide |
24 |
| service that is comparable to the class of tariffed service to |
25 |
| those customers in the utility's service area that do not take |
|
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09500HB2970ham001 |
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LRB095 06420 MJR 33770 a |
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| service from the electric utility;
if the service or a |
2 |
| reasonably
equivalent substitute service is reasonably |
3 |
| available to the
customer segment or group or in the defined |
4 |
| geographical area
at a comparable price from one or more |
5 |
| providers other than
the electric utility or an affiliate of |
6 |
| the electric utility,
and the electric utility has lost or |
7 |
| there is a reasonable
likelihood that the electric utility will |
8 |
| lose business for
the service to the other provider or |
9 |
| providers; provided, that
the Commission may not declare the |
10 |
| provision of electric power
and energy to be competitive |
11 |
| pursuant to this subsection with
respect to (i) any retail |
12 |
| customer or group of retail customers that is not
eligible |
13 |
| pursuant to Section 16-104 to take delivery services
provided |
14 |
| by the electric utility and (ii) any residential and
small |
15 |
| commercial retail customers prior to the last date on which |
16 |
| such
customers are required to pay transition charges.
In |
17 |
| determining whether to grant or deny a petition to declare
the |
18 |
| provision of electric power and energy competitive, the
|
19 |
| Commission shall consider, in applying the above criteria,
|
20 |
| whether there is adequate transmission capacity into the
|
21 |
| service area of the petitioning electric utility to make
|
22 |
| electric power and energy reasonably available to the customer
|
23 |
| segment or group or in the defined geographical area from one
|
24 |
| or more providers other than the electric utility or an
|
25 |
| affiliate of the electric utility, in accordance with this
|
26 |
| subsection. The Commission shall make its determination and
|
|
|
|
09500HB2970ham001 |
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LRB095 06420 MJR 33770 a |
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|
1 |
| issue its final order declaring or refusing to declare the
|
2 |
| service to be a competitive service within 180
120 days |
3 |
| following
the date that the petition is filed , or otherwise the |
4 |
| petition
shall be deemed to be granted; provided, that if the |
5 |
| petition
is deemed to be granted by operation of law, the |
6 |
| Commission
shall not thereby be precluded from finding and |
7 |
| ordering, in a
subsequent proceeding initiated by the |
8 |
| Commission, and after
notice and hearing, that the service is |
9 |
| not competitive based
on the criteria set forth in this |
10 |
| subsection .
|
11 |
| (b) Any customer except a customer identified in
subsection |
12 |
| (c) of Section 16-103 who is taking a tariffed
service that is |
13 |
| declared to be a competitive service pursuant
to subsection (a) |
14 |
| of this Section shall be entitled to
continue to take the |
15 |
| service from the electric utility on a
tariffed basis for a |
16 |
| period of 3 years following the date
that the service is |
17 |
| declared competitive, or such other period
as is stated in the |
18 |
| electric utility's tariff pursuant to
Section 16-110. This |
19 |
| subsection shall not require the
electric utility to offer or |
20 |
| provide on a tariffed basis any
service to any customer (except |
21 |
| those customers identified in
subsection (c) of Section 16-103) |
22 |
| that was not taking such
service on a tariffed basis on the |
23 |
| date the service was
declared to be competitive.
|
24 |
| (c) If the Commission denies a petition to declare a
|
25 |
| service to be a competitive service, or determines in a
|
26 |
| separate proceeding that a service is not competitive based on
|
|
|
|
09500HB2970ham001 |
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LRB095 06420 MJR 33770 a |
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|
1 |
| the criteria set forth in subsection (a), the electric utility
|
2 |
| may file a new petition no earlier than 6 months following the
|
3 |
| date of the Commission's order, requesting, on the basis of
|
4 |
| additional or different facts and circumstances, that the
|
5 |
| service be declared to be a competitive service.
|
6 |
| (d) The Commission shall not deny a petition to declare
a |
7 |
| service to be a competitive service, and shall not find that
a |
8 |
| service is not a competitive service, on the grounds that it
|
9 |
| has previously denied the petition of another electric utility
|
10 |
| to declare the same or a similar service to be a competitive
|
11 |
| service or has previously determined that the same or a
similar |
12 |
| service provided by another electric utility is not a
|
13 |
| competitive service.
|
14 |
| (e) An electric utility may declare a service, other
than |
15 |
| delivery services or the provision of electric power or
energy, |
16 |
| to be competitive by filing with the Commission at
least 14 |
17 |
| days prior to the date on which the service is to
become |
18 |
| competitive a notice describing the service that is
being |
19 |
| declared competitive and the date on which it will
become |
20 |
| competitive; provided, that any customer who is taking
a |
21 |
| tariffed service that is declared to be a competitive
service |
22 |
| pursuant to this subsection (e) shall be entitled to
continue |
23 |
| to take the service from the electric utility on a
tariffed |
24 |
| basis until the electric utility files, and the
Commission |
25 |
| grants, a petition to declare the service
competitive in |
26 |
| accordance with subsection (a) of this Section.
The Commission |
|
|
|
09500HB2970ham001 |
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LRB095 06420 MJR 33770 a |
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|
1 |
| shall be authorized to find and order, after
notice and hearing |
2 |
| in a subsequent proceeding initiated by the
Commission, that |
3 |
| any service declared to be competitive
pursuant to this |
4 |
| subsection (e) is not competitive in
accordance with the |
5 |
| criteria set forth in subsection (a) of
this Section.
|
6 |
| (Source: P.A. 90-561, eff. 12-16-97.)
|
7 |
| Section 99. Effective date. This Act takes effect upon |
8 |
| becoming law.".
|