HB5234 103RD GENERAL ASSEMBLY

LRB103 37941 CES 69614 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5234

Introduced 2/9/2024, by Rep. Lawrence "Larry" Walsh, Jr.

SYNOPSIS AS INTRODUCED:

220 ILCS 5/Art. XXIII heading new
220 ILCS 5/23-100 new
220 ILCS 5/23-105 new

Creates the Transmission Efficiency and Cooperation Law within the Public Utilities Act. Provides that an incumbent electric transmission owner has the right to construct, own, and maintain an electric transmission line approved in a transmission plan that will connect to facilities that are owned by that incumbent electric transmission owner and that are or will be under the functional control of a regional transmission operator. Specifies that the right to construct, own, and maintain such an electric transmission line belongs individually and proportionally to each incumbent electric transmission owner, unless otherwise agreed upon in writing. Provides that proportionality shall be determined based on the location of the electric transmission line relative to each incumbent electric transmission owner's retail service territory. Authorizes an incumbent electric transmission owner to assign its right to construct, own, and maintain an electric transmission line to a transmission affiliate. Provides that an owner may notify the Illinois Commerce Commission that it will not construct any or all of the electric transmission line, and the Commission may grant permission and approval for the construction to another entity. Effective immediately.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Public Utilities Act is amended by adding Article XXIII as follows:

(220 ILCS 5/Art. XXIII heading new)

ARTICLE XXIII. TRANSMISSION EFFICIENCY AND COOPERATION LAW

(220 ILCS 5/23-100 new)

Sec. 23-100. Short title. This Article may be cited as the Transmission Efficiency and Cooperation Law.

(220 ILCS 5/23-105 new)

Sec. 23-105. Incumbent electric transmission line owner rights.

(a) As used in this Section:

"Electric transmission line" means a transmission line that is designed and constructed with the capability of being safely and reliably energized at 100 kilovolts or more and its associated transmission facilities, including transmission substations. "Electric transmission line" does not include electric transmission lines located on an electric generating facility's side of the facility's point of interconnection with an incumbent electric transmission line owner.

"Incumbent electric transmission owner" means any public utility, municipal corporation, or electric cooperative that owns, operates, and maintains at least one electric transmission line in this State.

"Regional transmission operator" means a regional transmission organization, independent system operator, or equivalent entity approved by the Federal Energy Regulatory Commission, or its successor agency, that exercises functional control over electric transmission lines located in this State.

"Transmission affiliate" means any company that (i) has been issued a certificate of public convenience and necessity in Illinois authorizing it to own and operate an electric transmission line and (ii) is an Illinois electric utility as defined in Section 16-102 or an affiliate of it through a common ownership structure.

"Transmission plan" means a transmission plan adopted by a regional transmission operator.

(b) An incumbent electric transmission owner has the right to construct, own, and maintain an electric transmission line that has been approved for construction in a transmission plan and that will connect to facilities that are owned by that incumbent electric transmission owner and are or will be, once construction is completed, under the functional control of a regional transmission operator. The right to construct, own, and maintain such an electric transmission line that will connect to facilities owned by 2 or more incumbent electric transmission owners belongs individually and proportionally to each incumbent electric transmission owner, unless otherwise agreed upon in writing. Proportionality shall be determined based on the location of the electric transmission line relative to each incumbent electric transmission owner's retail service territory. An incumbent electric transmission owner shall be permitted to assign its right to construct, own, and maintain an electric transmission line to a transmission affiliate.

(c) Nothing in this Section limits the right of any incumbent electric transmission owner to construct, own, and maintain any transmission equipment or facilities that have a capacity of less than 100 kilovolts or of any entity otherwise qualified under this Act to own, operate, and maintain electric transmission facilities that are not approved for construction in a transmission plan or that will not connect to facilities under the functional control of a regional transmission operator.

(d) Nothing in this Section shall be construed to impair, abridge, or diminish in any way the powers, rights, and privileges of municipal corporations that are not incumbent electric transmission owners to partner with an incumbent electric transmission owner on the development and ownership of an electric transmission line included in a transmission plan or to develop, construct, own, operate, maintain, upgrade, and renew facilities that are not included in a transmission plan but that are necessary or convenient in the provision of electric service, directly or indirectly, to citizens and businesses located in the service areas of municipal systems as that term is defined in Section 17 100, including the rights of such municipal systems and of municipal power agencies as defined in Section 11-119.1-3 of the Illinois Municipal Code to develop, construct, own, operate, maintain, upgrade, and renew such electric transmission lines and related facilities.

(e) Nothing in this Section shall relieve an incumbent electric transmission owner asserting its right to construct an electric transmission line, or its transmission affiliate as applicable, of the requirement to file an application for a certificate of convenience and necessity to the extent otherwise required by this Act.

(f) Within 90 days after the later of the effective date of this amendatory Act of the 103rd General Assembly or approval of the construction of an electric transmission line by a regional transmission operator, an incumbent electric transmission owner otherwise authorized to engage in the construction under this Section may provide notice to the Commission and the applicable regional transmission operator indicating it will not construct any or all of the electric transmission line so approved, or it will assign any or all of the construction to a transmission affiliate. If the notice is given and indicates the notifying incumbent electric transmission owner or its transmission affiliate will not construct any or all of the electric transmission line so approved, the incumbent electric transmission owner shall indicate the reason for that election, and the Commission may grant permission and approval for such construction to another entity otherwise qualified to own and operate the electric transmission line under this Act.

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