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1 | AN ACT concerning utilities.
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2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Public Utilities Act is amended by changing | |||||||||||||||||||
5 | Section 16-126 as
follows:
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6 | (220 ILCS 5/16-126)
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7 | Sec. 16-126. Membership in an independent system operator.
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8 | (a) The General Assembly finds that the establishment of | |||||||||||||||||||
9 | one or
more independent system operators or their functional | |||||||||||||||||||
10 | equivalents
is required to facilitate the development of an | |||||||||||||||||||
11 | open and
efficient marketplace for electric power and energy to | |||||||||||||||||||
12 | the
benefit of Illinois consumers. Therefore, an
each Illinois | |||||||||||||||||||
13 | electric
utility owning or controlling transmission facilities | |||||||||||||||||||
14 | or
providing transmission services in Illinois and that is a | |||||||||||||||||||
15 | member
of the Mid-American Interconnected Network as of the | |||||||||||||||||||
16 | effective
date of this amendatory Act of 1997 shall submit for | |||||||||||||||||||
17 | approval to
the Federal Energy Regulatory Commission an | |||||||||||||||||||
18 | application for
establishing or joining an independent system | |||||||||||||||||||
19 | operator that
shall:
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20 | (1) independently manage and control transmission | |||||||||||||||||||
21 | facilities of
any electric utility;
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22 | (2) provide for nondiscriminatory access to and use of | |||||||||||||||||||
23 | the
transmission system for buyers and sellers of | |||||||||||||||||||
24 | electricity;
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25 | (3) direct the transmission activities of the control | |||||||||||||||||||
26 | area
operators;
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27 | (4) coordinate, plan, and order the installation of new
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28 | transmission facilities;
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29 | (5) adopt inspection, maintenance, repair, and | |||||||||||||||||||
30 | replacement
standards for the transmission facilities | |||||||||||||||||||
31 | under its control and
direct maintenance, repair, and | |||||||||||||||||||
32 | replacement of all facilities
under its control; and
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1 | (6) implement procedures and act to assure the | ||||||
2 | provision of
adequate and reliable service.
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3 | These standards shall be
consistent with reliability | ||||||
4 | criteria no less stringent than those
established by the | ||||||
5 | Mid-American Interconnected Network and the
North American | ||||||
6 | Electric Reliability Council or their successors.
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7 | (b) The requirements of this Section may be met by joining | ||||||
8 | or
establishing a regional independent system operator that | ||||||
9 | meets
the criteria enumerated in subsections (a), (c), and (d) | ||||||
10 | of this
Section, as determined by the Commission. To achieve | ||||||
11 | the
objectives set forth in subsection (a), the State of | ||||||
12 | Illinois,
through the appropriate officers, departments, and | ||||||
13 | agencies, shall
work cooperatively with the appropriate | ||||||
14 | officials and agencies of
those States contiguous to this State | ||||||
15 | and the Federal Energy
Regulatory Commission towards the | ||||||
16 | formation of one or more
regional independent system operators.
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17 | (c) The independent system operator's governance structure | ||||||
18 | must be fair and
nondiscriminatory, and
the independent system | ||||||
19 | operator must be independent of any one market
participant or | ||||||
20 | class of participants. The independent system operator's rules
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21 | of
governance must prevent control, or the appearance of | ||||||
22 | control, of
decision-making by any class of participants.
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23 | (d) Participants in the independent system operator shall | ||||||
24 | make available to
the independent system operator all
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25 | information required by the independent system operator in | ||||||
26 | performance of its
functions
described herein. The independent | ||||||
27 | system operator and the electric utilities
participating in the | ||||||
28 | independent system operator shall make all filings
required by | ||||||
29 | the
Federal Energy Regulatory Commission. The independent | ||||||
30 | system operator shall
ensure that
additional filings at the | ||||||
31 | Federal Energy Regulatory Commission
request confirmation of | ||||||
32 | the relevant provisions of this
amendatory Act of 1997.
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33 | (e) If a spot market, exchange market, or other | ||||||
34 | market-based
mechanism providing transparent real-time market | ||||||
35 | prices for
electric power has not been developed, the | ||||||
36 | independent system operator or a
closely
cooperating agent of |
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1 | the independent system operator may provide an efficient
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2 | competitive
power exchange auction for electric power and | ||||||
3 | energy, open on a
nondiscriminatory basis to all suppliers, | ||||||
4 | which meets the loads
of all auction customers at efficient | ||||||
5 | prices.
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6 | (f) For those electric utilities referred to in subsection | ||||||
7 | (a)
which have not filed with the Federal Energy Regulatory | ||||||
8 | Commission by June 30,
1998 an
application for establishment or | ||||||
9 | participation in an independent
system operator or if such | ||||||
10 | application has not been approved by
the Federal Energy | ||||||
11 | Regulatory Commission by March 31, 1999, a 5 member
Oversight | ||||||
12 | Board shall
be formed. The Oversight Board shall (1) oversee | ||||||
13 | the creation of
an Illinois independent system operator and (2) | ||||||
14 | determine the composition and
initial
terms of service of, and | ||||||
15 | appoint the initial members of, the
Illinois independent system | ||||||
16 | operator board of directors. The Oversight Board
shall
consist | ||||||
17 | of the following: (1) 3 persons appointed by the
Governor; (2) | ||||||
18 | one person appointed by the Speaker of the House of
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19 | Representatives; and (3) one person appointed by the President | ||||||
20 | of
the Senate. The Oversight Board shall take the steps that | ||||||
21 | are
necessary to ensure the earliest possible incorporation of | ||||||
22 | an
Illinois independent system operator under the Business | ||||||
23 | Corporation Act of
1983, and
shall serve until the Illinois | ||||||
24 | independent system operator is incorporated.
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25 | (g) After notice and hearing, the Commission shall require | ||||||
26 | each
electric utility referred to in subsection (a), that is | ||||||
27 | not
participating in an independent system operator meeting the | ||||||
28 | requirements of
subsections
(a) and (c), to seek authority from | ||||||
29 | the Federal Energy Regulatory Commission to
transfer
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30 | functional control of transmission facilities to the Illinois | ||||||
31 | independent
system operator
for control by the Illinois | ||||||
32 | independent system operator consistent with the
requirements
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33 | of subsection (a). Upon approval by the Federal Energy | ||||||
34 | Regulatory Commission,
electric utilities
may also elect to | ||||||
35 | transfer ownership of transmission facilities
to the Illinois | ||||||
36 | independent system operator. Nothing in this Act shall be
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1 | deemed to
preclude the Illinois independent system operator | ||||||
2 | from (1) seeking authority,
as
necessary, to merge with or | ||||||
3 | otherwise combine its operations with
those of one or more | ||||||
4 | other entities authorized to provide
transmission services, | ||||||
5 | (2) purchasing or leasing transmission
assets from | ||||||
6 | transmission-owning entities not required by this
Section to | ||||||
7 | lease transmission facilities to the Illinois independent | ||||||
8 | system
operator, or
(3) operating as a transmission public | ||||||
9 | utility under the Federal
Power Act.
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10 | (h) Any other owner of transmission facilities in Illinois | ||||||
11 | not
required by this Section to participate in an independent | ||||||
12 | system operator shall
be
permitted, but not required, to become | ||||||
13 | a member of the Illinois
independent system operator.
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14 | (i) The Illinois independent system operator created under | ||||||
15 | this Section, and
any other
independent system operator | ||||||
16 | authorized by the Federal Energy Regulatory
Commission to | ||||||
17 | provide
transmission services as a
public utility under the | ||||||
18 | Federal Power Act within the State of
Illinois, shall be deemed | ||||||
19 | to be a public utility for purposes of
Section 8-503 and 8-509 | ||||||
20 | of this Act.
An independent system operator or regional | ||||||
21 | transmission organization that is
the subject
of an order | ||||||
22 | entered by the Commission under Section 8-503 need not possess | ||||||
23 | a
certificate
of service authority under Section 8-406 in order | ||||||
24 | to be authorized to take the
actions set
forth in Section | ||||||
25 | 8-509.
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26 | (j) Electric utilities referred to in subsection (a) may | ||||||
27 | withdraw
from the Illinois independent system operator upon | ||||||
28 | becoming a member of an
independent
system operator or | ||||||
29 | operators conforming with the criteria in
subsections (a) and | ||||||
30 | (c) and whose formation and operation has
been approved by the | ||||||
31 | Federal Energy Regulatory Commission. This
subsection does not | ||||||
32 | relieve any electric utility of any
obligations under Federal | ||||||
33 | law.
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34 | (k) Nothing in this Section shall be construed as imposing | ||||||
35 | any
requirements or obligations that are in conflict with | ||||||
36 | federal
law.
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1 | (l) A regional transmission organization created under the | ||||||
2 | rules of the
Federal
Energy Regulatory Commission shall be | ||||||
3 | considered to be the functional
equivalent of an
independent | ||||||
4 | system operator for purposes of this Section, and an electric
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5 | utility shall be
deemed to meet its obligations under this | ||||||
6 | Section through membership in a
regional
transmission | ||||||
7 | organization that fulfills the requirements of an independent
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8 | system operator
under this Section.
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9 | (Source: P.A. 92-12, eff. 7-1-01.)
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