093_SB2121

 
                                     LRB093 14272 AMC 19821 b

 1        AN ACT concerning utilities.

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

 4        Section 5.   The  Public  Utilities  Act  is  amended  by
 5    changing   Section  7-204  and  adding  Section  16-103.5  as
 6    follows:

 7        (220 ILCS 5/7-204) (from Ch. 111 2/3, par. 7-204)
 8        Sec. 7-204. Reorganization defined;  Commission  approval
 9    therefore.
10        (a)  For purposes of this Section, "reorganization" means
11    any transaction which, regardless of the means by which it is
12    accomplished,  results  in  a  change  in  the ownership of a
13    majority of the voting capital stock of  an  Illinois  public
14    utility; or the ownership or control of any entity which owns
15    or  controls  a  majority  of  the  voting capital stock of a
16    public utility; or by which 2 public utilities merge,  or  by
17    which  a  public  utility  acquires  substantially all of the
18    assets  of  another  public  utility;  or  the   transactions
19    described   in   subsection   (g);  provided,  however,  that
20    "reorganization" as used in this Section shall not include  a
21    mortgage  or pledge transaction entered into to secure a bona
22    fide borrowing by the party granting the mortgage  or  making
23    the pledge.
24        In  addition  to  the  foregoing,  "reorganization" shall
25    include for purposes of this Section any  transaction  which,
26    regardless  of  the  means  by which it is accomplished, will
27    have the effect of terminating the affiliated interest status
28    of any entity as defined in paragraphs (a), (b), (c)  or  (d)
29    of  subsection  (2)  of  Section 7-101 of this Act where such
30    entity had transactions with the public utility,  in  the  12
31    calendar months immediately preceding the date of termination
 
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 1    of  such affiliated interest status subject to subsection (3)
 2    of Section 7-101 of this Act with a value greater than 15% of
 3    the public utility's revenues for that same 12-month  period.
 4    If   the  proposed  transaction  would  have  the  effect  of
 5    terminating the affiliated interest status of more  than  one
 6    Illinois  public  utility,  the  utility  with  the  greatest
 7    revenues  for  the 12-month period shall be used to determine
 8    whether such proposed transaction is a reorganization for the
 9    purposes  of  this  Section.   The  Commission   shall   have
10    jurisdiction over any reorganization as defined herein.
11        (b)  No  reorganization  shall  take  place without prior
12    Commission approval.  The Commission shall  not  approve  any
13    proposed reorganization if the Commission finds, after notice
14    and  hearing,  that  the reorganization will adversely affect
15    the utility's ability to perform its duties under  this  Act.
16    In reviewing any proposed reorganization, the Commission must
17    find that:
18             (1)  the  proposed  reorganization will not diminish
19        the utility's  ability  to  provide  adequate,  reliable,
20        efficient, safe and least-cost public utility service;
21             (2)  the  proposed reorganization will not result in
22        the unjustified subsidization of  non-utility  activities
23        by the utility or its customers;
24             (3)  costs  and facilities are fairly and reasonably
25        allocated between utility and non-utility  activities  in
26        such  a  manner  that  the  Commission may identify those
27        costs and facilities which are properly included  by  the
28        utility for ratemaking purposes;
29             (4)  the    proposed    reorganization    will   not
30        significantly  impair  the  utility's  ability  to  raise
31        necessary capital on reasonable terms or  to  maintain  a
32        reasonable capital structure;
33             (5)  the   utility   will   remain  subject  to  all
34        applicable  laws,  regulations,  rules,   decisions   and
 
                            -3-      LRB093 14272 AMC 19821 b
 1        policies  governing  the  regulation  of  Illinois public
 2        utilities;
 3             (6)  the proposed reorganization is  not  likely  to
 4        have a significant adverse effect on competition in those
 5        markets over which the Commission has jurisdiction;
 6             (7)  the  proposed  reorganization  is not likely to
 7        result in any adverse rate impacts on retail customers.
 8        (c)  The Commission shall not  approve  a  reorganization
 9    without   ruling  on:  (i)  the  allocation  of  any  savings
10    resulting from the proposed reorganization; and (ii)  whether
11    the companies should be allowed to recover any costs incurred
12    in  accomplishing the proposed reorganization and, if so, the
13    amount of costs eligible for recovery and how the costs  will
14    be allocated.
15        (d)  The  Commission  shall  issue its Order approving or
16    denying the proposed reorganization within  11  months  after
17    the  application  is  filed.  The  Commission  may extend the
18    deadline for a period equivalent to the length of  any  delay
19    which  the  Commission  finds  to  have  been  caused  by the
20    Applicant's failure to provide data or information  requested
21    by   the  Commission  or  that  the  Commission  ordered  the
22    Applicant to provide to the parties. The Commission may  also
23    extend  the  deadline by an additional period not to exceed 3
24    months to consider amendments to the Applicant's  filing,  or
25    to consider reasonably unforeseeable changes in circumstances
26    subsequent to the Applicant's initial filing.
27        (e)  Subsections  (c)  and  (d) and subparagraphs (6) and
28    (7) of subsection (b) of this Section  shall  apply  only  to
29    merger applications submitted to the Commission subsequent to
30    April  23,  1997.  No  other  Commission  approvals  shall be
31    required for mergers that are subject to this Section.
32        (f)  In approving any proposed reorganization pursuant to
33    this Section the Commission may impose such terms, conditions
34    or requirements as, in its judgment, are necessary to protect
 
                            -4-      LRB093 14272 AMC 19821 b
 1    the interests of the public utility and its customers.
 2        (g)  The Commission  shall,  within  9  months  after  an
 3    application  is  filed,  issue its Order approving or denying
 4    any proposed reorganization involving the  acquisition  by  a
 5    public utility or its affiliate of all of the common stock or
 6    substantially all of the operating assets, whether by merger,
 7    creation  and  acquisition  of  a  limited liability or other
 8    company, or otherwise, of another  public  utility  that  has
 9    secured  debt  that  is, or was, within the year prior to the
10    filing of the application, rated below investment grade by at
11    least 3 nationally recognized rating agencies.
12    (Source: P.A. 90-561, eff. 12-16-97.)

13        (220 ILCS 5/16-103.5 new)
14        Sec.  16-103.5.  Renewable energy resources standard.
15        (a)  In furtherance of subsection (f) of Section 5 of the
16    Illinois Resource Development and Energy Security Act,  which
17    provides  that  "renewable forms of energy should be promoted
18    as an important  element  of  the  energy  and  environmental
19    policies  of  the State and it is a goal of the State that at
20    least 5% of the State's energy production and use be  derived
21    from  renewable forms of energy by 2010 and at least 15% from
22    renewable forms  of  energy  by  2020",  a  renewable  energy
23    resources standard is hereby established in Illinois.
24        (b)  This  Section  applies  to  electric  utilities  and
25    alternative retail electric suppliers.
26        (c)  "Renewable  energy  resources" has the meaning given
27    that term in subsection (f) of Section 6-3 of  the  Renewable
28    Energy, Energy Efficiency, and Coal Resources Development Law
29    of 1997.
30        (d)  During  2004,  an  electric  utility  or alternative
31    retail electric supplier shall take all  appropriate  actions
32    to  meet  the  standards  set forth in this Section and shall
33    submit a report  to  the  Commission  by  December  31,  2004
 
                            -5-      LRB093 14272 AMC 19821 b
 1    describing that year's actions in detail.
 2        (e)  Each electric utility or alternative retail electric
 3    supplier  shall  in the years specified supply electricity to
 4    Illinois customers generated by renewable energy resources in
 5    at least the  following  minimum  percentages  of  the  total
 6    electricity  supplied by that electric utility or alternative
 7    retail electric supplier to customers in Illinois:
 8             (1) 2005, 2%;
 9             (2) 2007, 3%;
10             (3) 2009, 4%;
11             (4) 2010, 5%;
12             (5) 2012, 7%;
13             (6) 2014, 9%;
14             (7) 2016, 11%;
15             (8) 2018, 13%;
16             (9) 2020 and each year thereafter, 15%.
17        (f)  An electric utility or alternative  retail  electric
18    supplier  shall  meet  the standards in subsection (e) by any
19    combination of:
20             (1)  generating   electricity   in   Illinois   with
21        renewable  energy  resources  and  then  supplying   that
22        electricity to its Illinois customers; or
23             (2)  purchasing  electricity  generated  in Illinois
24        with renewable energy resources and then  supplying  that
25        electricity to its Illinois customers.
26        (g)  Any  electric utility or alternative retail electric
27    supplier may choose to arrange with another electric  utility
28    or   alternative  retail  electric  supplier  to  supply  its
29    Illinois customers with  electricity  generated  in  Illinois
30    with renewable energy resources.
31        (h)(1)  By  April  1  of  each year beginning in 2006, an
32    electric utility  or  alternative  retail  electric  supplier
33    subject  to  this  Section  shall  submit  a  report  to  the
34    Commission  that  documents compliance with the provisions of
 
                            -6-      LRB093 14272 AMC 19821 b
 1    this Section for the preceding year.
 2        (2)  The report shall include, but need  not  be  limited
 3    to, the following information:
 4             (A)  the total megawatt hours of electricity sold to
 5        customers in Illinois;
 6             (B)  the   total   megawatt   hours  of  electricity
 7        generated in Illinois with each kind of renewable  energy
 8        resource that is sold to customers in Illinois;
 9             (C)  the   total   megawatt   hours  of  electricity
10        acquired from other  electric  utilities  or  alternative
11        retail  electric  suppliers that is generated in Illinois
12        with renewable energy resources; and
13             (D)  any other information necessary to  demonstrate
14        compliance with this Section.
15        (3)  The  Commission shall establish additional reporting
16    requirements to ensure implementation of this Section.
17        (4)  The Commission  shall  promptly  post  every  report
18    submitted  under this subsection on the Commission's Internet
19    site.
20        (5)  The  Commission  may  audit  the  accuracy  of   all
21    information  submitted under this subsection, and may request
22    and obtain from each electric utility or  alternative  retail
23    electric  supplier any other information necessary to monitor
24    compliance with and enforcement of this Section.
25        (i)  An electric utility or alternative  retail  electric
26    supplier shall be assessed a penalty of not less than $50 for
27    each  megawatt  hour of electricity that the electric utility
28    or alternative retail electric supplier does  not  supply  as
29    required under subsection (e).
30        (j)  Costs  associated  with the procurement of renewable
31    energy resources pursuant  to this  Section  shall  be  fully
32    recoverable  from  retail  customers to the extent allowed by
33    law and shall not be subject to  any  limitations  stated  in
34    subsection (i) of Section 16-111  of this Act relating to the
 
                            -7-      LRB093 14272 AMC 19821 b
 1    recovery  of  the power and energy cost component in tariffed
 2    rates.  Costs associated with  contracts  that  were  prudent
 3    when  entered  into  pursuant  to    this  Section  shall not
 4    subsequently be denied recovery due to changes  in  State  or
 5    federal  law.
 6        (k)  The  Commission  shall establish penalties for other
 7    violations of this Section.