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Public Act 094-0977
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| SB1705 Enrolled |
LRB094 11269 MKM 42123 b |
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Public Utilities Act is amended by changing |
Sections 16-101A, 16-102, and 16-107 as follows:
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(220 ILCS 5/16-101A)
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Sec. 16-101A. Legislative findings.
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(a) The citizens and businesses of the State of Illinois
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have been well-served by a comprehensive electrical utility
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system which has provided safe, reliable, and affordable
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service. The electrical utility system in the State of
Illinois |
has historically been subject to State and federal
regulation, |
aimed at assuring the citizens and businesses of
the State of |
safe, reliable, and affordable service, while at
the same time |
assuring the utility system of a return on its
investment.
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(b) Competitive forces are affecting the market for
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electricity as a result of recent federal regulatory and
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statutory changes and the activities of other states.
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Competition in the electric services market may create
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opportunities for new products and services for customers and
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lower costs for users of electricity. Long-standing regulatory
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relationships need to be altered to accommodate the
competition |
that could fundamentally alter the structure of
the electric |
services market.
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(c) With the advent of increasing competition in this
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industry, the State has a continued interest in assuring that
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the safety, reliability, and affordability of electrical power
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is not sacrificed to competitive pressures, and to that end,
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intends to implement safeguards to assure that the industry
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continues to operate the electrical system in a manner that
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will serve the public's interest. Under the existing
regulatory |
framework, the industry has been encouraged to
undertake |
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certain investments in its physical plant and
personnel to |
enhance its efficient operation, the cost of
which it has been |
permitted to pass on to consumers. The
State has an interest in |
providing the existing utilities a
reasonable opportunity to |
obtain a return on certain
investments on which they depended |
in undertaking those
commitments in the first instance while, |
at the same time, not
permitting new entrants into the industry |
to take unreasonable
advantage of the investments made by the |
formerly regulated
industry.
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(d) A competitive wholesale and retail market must
benefit |
all Illinois citizens. The Illinois Commerce
Commission should |
act to promote the development of an
effectively competitive |
electricity market that operates
efficiently and is equitable |
to all consumers. Consumer
protections must be in place to |
ensure that all customers
continue to receive safe, reliable, |
affordable, and
environmentally safe electric service.
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(e) All consumers must benefit in an equitable and timely
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fashion from the lower costs for electricity that result from
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retail and wholesale competition and receive sufficient
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information to make informed choices among suppliers and
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services. The use of renewable resources and energy efficiency
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resources should be encouraged in competitive markets.
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(f) The efficiency of electric markets depends both upon |
the competitiveness of supply and upon the |
price-responsiveness of the demand for service. Therefore, to |
ensure the lowest total cost of service and to enhance the |
reliability of service, all classes of the electricity |
customers of electric utilities should have access to and be |
able to voluntarily use real-time pricing and other |
price-response and demand-response mechanisms.
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(Source: P.A. 90-561, eff. 12-16-97.)
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(220 ILCS 5/16-102)
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Sec. 16-102. Definitions. For the purposes of this
Article |
the following terms shall be defined as set forth in
this |
Section.
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"Alternative retail electric supplier" means every
person, |
cooperative, corporation, municipal corporation,
company, |
association, joint stock company or association,
firm, |
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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that engages in the delivery or furnishing of electric power
or |
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) |
any electric cooperative or municipal system as defined
in |
Section 17-100 to the extent that the electric cooperative
or |
municipal system is serving retail customers within any
area in |
which it is or would be entitled to provide service
under the |
law in effect immediately prior to the effective
date of this |
amendatory Act of 1997, (iii) a public utility
that is owned |
and operated by any public institution of higher
education of |
this State, or a public utility that is owned by
such public |
institution of higher education and operated by
any of its |
lessees or operating agents, within any area in
which it is or |
would be entitled to provide service under the
law in effect |
immediately prior to the effective date of this
amendatory Act |
of 1997, (iv) a retail customer to the extent
that customer |
obtains its electric power and energy from that customer's
own |
cogeneration or self-generation facilities, (v) an
entity that |
owns, operates, sells, or arranges for the installation of
a |
customer's own cogeneration or self-generation facilities, but |
only to
the extent the entity is engaged in
owning,
selling or |
arranging for the installation of such facility,
or operating |
the facility
on behalf of such customer, provided however that |
any such
third party owner or operator of a facility built |
after
January 1, 1999, complies with the labor provisions of |
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 |
facilities, to the extent that the customer provides service |
from
that distribution system to a third-party contractor |
located on the customer's
premises that is integrally and |
predominantly engaged in the customer's
industrial or
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manufacturing process; provided, that if the industrial or |
manufacturing
customer has elected delivery services, the |
customer shall pay transition
charges applicable to the |
electric power and energy consumed by the third-party
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contractor unless such charges are otherwise paid by the third |
party
contractor, which shall be calculated based on the usage |
of, and the base rates
or the contract rates applicable to, the |
third-party contractor in accordance
with Section 16-102.
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"Base rates" means the rates for those tariffed services |
that the electric
utility is required to offer pursuant to |
subsection (a) of Section 16-103 and
that were identified in a |
rate order for collection of the electric
utility's base rate |
revenue requirement, excluding (i) separate automatic
rate |
adjustment riders then in effect, (ii) special or negotiated |
contract
rates, (iii) delivery services tariffs filed pursuant |
to Section 16-108, (iv)
real-time pricing, or (v) tariffs that |
were in effect prior to October 1, 1996
and that based charges |
for services on an index or average of other utilities'
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charges, but including (vi) any subsequent redesign of such |
rates for
tariffed
services that is authorized by the |
Commission after notice and hearing.
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"Competitive service" includes (i) any service that
has |
been declared to be competitive pursuant to Section
16-113 of |
this Act, (ii) contract service, and (iii) services,
other than |
tariffed services, that are related to, but not
necessary for, |
the provision of electric power and energy or delivery |
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 |
service area, provided that, delivery services shall
not be a |
contract service until such services are declared
competitive |
pursuant to Section 16-113; and also means (2) the
provision of |
electric power and energy by an electric utility
to retail |
customers outside the electric utility's service
area pursuant |
to Section 16-116. Provided, however, contract
service does not |
include electric utility services provided
pursuant to (i) |
contracts that retail customers are required
to execute as a |
condition of receiving tariffed services, or
(ii) special or |
negotiated rate contracts for electric utility
services that |
were entered into between an electric utility
and a retail |
customer prior to the effective date of this
amendatory Act of |
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 |
can receive electric power and energy from suppliers
other than |
the electric utility, and shall include, without
limitation, |
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 the
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effective date of this amendatory Act of 1997 through January
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1, 2007.
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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 |
delivered electric
power and energy that vary on an
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hour-to-hour and are determined from wholesale market prices |
using a methodology approved by the Illinois Commerce |
Commission
basis for
nonresidential retail customers and that |
vary on a periodic
basis during the day for residential retail |
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customers.
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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 |
receiving or is eligible to receive tariffed services from
an |
electric utility, or (ii) that is served by a municipal system |
or electric
cooperative within any area in which the
municipal |
system or electric cooperative is or would be
entitled to |
provide service under the law in effect
immediately prior to |
the effective date of this amendatory Act
of 1997, or (B) an |
entity which on the effective date of this
Act was receiving |
electric service from a public utility and
(i) was engaged in |
the practice of resale and redistribution
of such electricity |
within a building prior to January 2,
1957, or (ii) was |
providing lighting services to tenants in a
multi-occupancy |
building, but only to the extent such resale,
redistribution or |
lighting service is authorized by the
electric utility's |
tariffs that were on file with the
Commission on the effective |
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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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 |
kilowatt-hour that is calculated for a customer or class
of |
customers as follows for each year in which an electric
utility |
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is entitled to recover transition charges as provided
in |
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 |
customers' actual usage during the 3 years
ending 90 days |
prior to the date on which such customers
were first |
eligible for delivery services pursuant to
Section 16-104, |
and (B) on (i) the base rates in effect
on October 1, 1996 |
(adjusted for the reductions required
by subsection (b) of |
Section 16-111, for any reduction resulting from a rate
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decrease under Section 16-101(b), for any restatement of |
base rates made in
conjunction with an elimination
of the |
fuel adjustment clause pursuant to subsection (b), (d), or |
(f) of
Section
9-220
and for any removal of decommissioning |
costs from base
rates pursuant to Section 16-114)
and any |
separate automatic rate adjustment riders (other
than a |
decommissioning rate as defined in Section 16-114)
under |
which the customers were receiving or, had they
been |
customers, would have received electric power and
energy |
from the electric utility during the year
immediately |
preceding the date on which such customers
were first |
eligible for delivery service pursuant to
Section 16-104, |
or (ii) to the extent applicable, any
contract rates, |
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 |
transition charges and decommissioning rates, that the |
electric utility
would
receive from such retail customers |
for delivery services
provided by the electric utility, |
assuming such customers
were taking delivery services for |
all of their usage,
based on the delivery services tariffs |
in effect during
the year for which the transition charge |
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is being
calculated and on the usage identified in |
paragraph (1);
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(3) less the market value for the electric power
and |
energy that the electric utility would have used to
supply |
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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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 |
Section 16-108, referred to in this Article XVI as a |
"mitigation factor":
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(A) for nonresidential retail customers, an amount |
equal to the greater
of (i) 0.5 cents per kilowatt-hour |
during the period October 1, 1999
through December 31, |
2004, 0.6 cents per kilowatt-hour in calendar year |
2005,
and 0.9 cents per kilowatt-hour in calendar year |
2006, multiplied in
each year by the usage identified |
in paragraph (1), or (ii) an amount equal to
the |
following percentages of the amount produced by |
applying the applicable
base rates (adjusted as |
described in subparagraph (1)(B)) or contract rate to
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the usage identified in paragraph (1): 8% for the |
period October 1, 1999
through December 31, 2002, 10% |
in calendar years 2003 and 2004, 11% in calendar
year |
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 |
produced by applying the
base rates in effect on |
October 1, 1996 (adjusted as
described in subparagraph |
(1)(B)) to the usage
identified in paragraph (1): (i) |
6% from May 1, 2002 through December 31,
2002, (ii) 7% |
in calendar years 2003 and 2004, (iii) 8% in calendar |
year
2005, and (iv) 10% in calendar year 2006;
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(5) divided by the usage of such customers
identified |
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. 91-50, eff. 6-30-99; 92-537, eff. 6-6-02.)
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(220 ILCS 5/16-107)
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Sec. 16-107. Real-time pricing.
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(a) Each electric utility shall file, on or before May 1,
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1998, a tariff or tariffs which allow nonresidential retail
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customers in the electric utility's service area to elect
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real-time pricing beginning October 1, 1998.
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(b) Each electric utility shall file, on or before May 1,
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2000, a tariff or tariffs which allow residential retail
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customers in the electric utility's service area to elect
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real-time pricing beginning October 1, 2000.
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(b-5) Each electric utility shall file a tariff or tariffs |
allowing residential retail customers in the electric |
utility's service area to elect real-time pricing beginning |
January 2, 2007. A customer who elects real-time pricing shall |
remain on such rate for a minimum of 12 months. The Commission |
may, after notice and hearing, approve the tariff or tariffs, |
provided that the Commission finds that the potential for |
demand reductions will result in net economic benefits to all |
residential customers of the electric utility. In examining |
economic benefits from demand reductions, the Commission |
shall, at a minimum, consider the following: improvements to |
system reliability and power quality, reduction in wholesale |
market prices and price volatility, electric utility cost |
avoidance and reductions, market power mitigation, and other |
benefits of demand reductions, but only to the extent that the |
effects of reduced demand can be demonstrated to lower the cost |
of electricity delivered to residential customers. A tariff or |
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tariffs approved pursuant to this subsection (b-5) shall, at a |
minimum, describe (i) the methodology for determining the |
market price of energy to be reflected in the real-time rate |
and (ii) the manner in which customers who elect real-time |
pricing will be provided with ready access to hourly market |
prices, including, but not limited to, day-ahead hourly energy |
prices. |
A proceeding under this subsection (b-5) may not exceed 120 |
days in length.
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(b-10) Each electric utility providing real-time pricing |
pursuant to subsection (b-5) shall install a meter capable of |
recording hourly interval energy use at the service location of |
each customer that elects real-time pricing pursuant to this |
subsection. |
(b-15) If the Commission issues an order pursuant to |
subsection (b-5), the affected electric utility shall contract |
with an entity not affiliated with the electric utility to |
serve as a program administrator to develop and implement a |
program to provide consumer outreach, enrollment, and |
education concerning real-time pricing and to establish and |
administer an information system and technical and other |
customer assistance that is necessary to enable customers to |
manage electricity use. The program administrator: (i) shall be |
selected and compensated by the electric utility, subject to |
Commission approval; (ii) shall have demonstrated technical |
and managerial competence in the development and |
administration of demand management programs; and (iii) may |
develop and implement risk management, energy efficiency, and |
other services related to energy use management for which the |
program administrator shall be compensated by participants in |
the program receiving such services. The electric utility shall |
provide the program administrator with all information and |
assistance necessary to perform the program administrator's |
duties, including, but not limited to, customer, account, and |
energy use data. The electric utility shall permit the program |
administrator to include inserts in residential customer bills |
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2 times per year to assist with customer outreach and |
enrollment. |
The program administrator shall submit an annual report to |
the electric utility no later than April 1 of each year |
describing the operation and results of the program, including |
information concerning the number and types of customers using |
real-time pricing, changes in customers' energy use patterns, |
an assessment of the value of the program to both participants |
and non-participants, and recommendations concerning |
modification of the program and the tariff or tariffs filed |
under subsection (b-5). This report shall be filed by the |
electric utility with the Commission within 30 days of receipt |
and shall be available to the public on the Commission's web |
site. |
(b-20) The Commission shall monitor the performance of |
programs established pursuant to subsection (b-15) and shall |
order the termination or modification of a program if it |
determines that the program is not, after a reasonable period |
of time for development not to exceed 4 years, resulting in net |
benefits to the residential customers of the electric utility.
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(b-25) An electric utility shall be entitled to recover |
reasonable costs incurred in complying with this Section, |
provided that recovery of the costs is fairly apportioned among |
its residential customers as provided in this subsection |
(b-25). The electric utility may apportion greater costs on the |
residential customers who elect real-time pricing, but may also |
impose some of the costs of real-time pricing on customers who |
do not elect real-time pricing, provided that the Commission |
determines that the cost savings resulting from real-time |
pricing will exceed the costs imposed on customers for |
maintaining the program.
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(c) The electric utility's tariff or tariffs filed
pursuant |
to this Section shall be subject to Article IX.
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(d) This Section does not apply to any electric utility |
providing service to 100,000 or fewer customers.
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(Source: P.A. 90-561, eff. 12-16-97.)
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