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Rep. David R. Leitch
Filed: 4/11/2005
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09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
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| AMENDMENT TO HOUSE BILL 3246
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| AMENDMENT NO. ______. Amend House Bill 3246 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, 16-108, 16-111, 16-112, 16-120, and 16-130 as |
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| 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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| 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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LRB094 09569 MKM 44867 a |
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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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| 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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LRB094 09569 MKM 44867 a |
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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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09400HB3246ham001 |
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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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| 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 the
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| effective date of this amendatory Act of 1997 through January
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| 1, 2009
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 charges for delivered electric
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| power and energy that vary on an hour-to-hour basis for
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| nonresidential retail customers and that vary on a periodic
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| basis during the day for residential retail 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 |
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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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| 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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09400HB3246ham001 |
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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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| 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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| 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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| 2008
2006 , multiplied in
each year by the usage |
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| identified in paragraph (1), or (ii) an amount equal to
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| the 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 2008
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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| (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 2008
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. 91-50, eff. 6-30-99; 92-537, eff. 6-6-02.)
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| (220 ILCS 5/16-108)
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| Sec. 16-108. Recovery of costs associated with the
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| provision of delivery services.
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| (a) An electric utility shall file a delivery services
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| tariff with the Commission at least 210 days prior to the date
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| that it is required to begin offering such services pursuant
to |
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| this Act. An electric utility shall provide the components
of |
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| delivery services that are subject to the jurisdiction of
the |
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| Federal Energy Regulatory Commission at the same prices,
terms |
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| and conditions set forth in its applicable tariff as
approved |
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| or allowed into effect by that Commission. The
Commission shall |
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| otherwise have the authority pursuant to Article IX to review,
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| approve, and modify the prices, terms and conditions of those
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| components of delivery services not subject to the
jurisdiction |
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| of the Federal Energy Regulatory Commission,
including the |
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| authority to determine the extent to which such
delivery |
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| services should be offered on an unbundled basis. In making any |
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| such
determination the Commission shall consider, at a minimum, |
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| the effect of
additional unbundling on (i) the objective of |
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| just and reasonable rates, (ii)
electric utility employees, and |
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| (iii) the development of competitive markets
for electric |
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| energy services in Illinois.
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| (b) The Commission shall enter an order approving, or
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| approving as modified, the delivery services tariff no later
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| than 30 days prior to the date on which the electric utility
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| must commence offering such services. The Commission may
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| subsequently modify such tariff pursuant to this Act.
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| (c) The electric utility's
tariffs shall define the classes |
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| of its customers for purposes
of delivery services charges. |
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| Delivery services shall be priced and made
available to all |
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| retail customers electing delivery services in each such class
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| on a nondiscriminatory basis regardless of whether the retail |
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| customer chooses
the electric utility, an affiliate of the |
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| electric utility, or another entity
as its supplier of electric |
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| power and energy. Charges for delivery services
shall be cost |
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| based,
and shall allow the electric utility to recover the |
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| costs of
providing delivery services through its charges to its
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| delivery service customers that use the facilities and
services |
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| associated with such costs.
Such costs shall include the
costs |
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| of owning, operating and maintaining transmission and
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| distribution facilities. The Commission shall also be
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| authorized to consider whether, and if so to what extent, the
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| following costs are appropriately included in the electric
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| utility's delivery services rates: (i) the costs of that
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| portion of generation facilities used for the production and
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| absorption of reactive power in order that retail customers
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| located in the electric utility's service area can receive
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| electric power and energy from suppliers other than the
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| electric utility, and (ii) the costs associated with the use
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| and redispatch of generation facilities to mitigate
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| constraints on the transmission or distribution system in
order |
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| that retail customers located in the electric utility's
service |
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| area can receive electric power and energy from
suppliers other |
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| than the electric utility. Nothing in this
subsection shall be |
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| construed as directing the Commission to
allocate any of the |
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| costs described in (i) or (ii) that are
found to be |
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| appropriately included in the electric utility's
delivery |
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| services rates to any particular customer group or
geographic |
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| area in setting delivery services rates.
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| (d) The Commission shall establish charges, terms and
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| conditions for delivery services that are just and reasonable
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| and shall take into account customer impacts when establishing
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| such charges. In establishing charges, terms and conditions
for |
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| delivery services, the Commission shall take into account
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| voltage level differences. A retail customer shall have the
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| option to request to purchase electric service at any delivery
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| service voltage reasonably and technically feasible from the
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| electric facilities serving that customer's premises provided
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| that there are no significant adverse impacts upon system
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| reliability or system efficiency. A retail customer shall
also |
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| have the option to request to purchase electric service
at any |
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| point of delivery that is reasonably and technically
feasible |
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| provided that there are no significant adverse
impacts on |
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| system reliability or efficiency. Such requests
shall not be |
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| unreasonably denied.
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| (e) Electric utilities shall recover the costs of
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| installing, operating or maintaining facilities for the
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| particular benefit of one or more delivery services customers,
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| including without limitation any costs incurred in complying
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| with a customer's request to be served at a different voltage
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| level, directly from the retail customer or customers for
whose |
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| benefit the costs were incurred, to the extent such
costs are |
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| not recovered through the charges referred to in
subsections |
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| (c) and (d) of this Section.
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| (f) An electric utility shall be entitled but not
required |
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| to implement transition charges in conjunction with
the |
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| offering of delivery services pursuant to Section 16-104.
If an |
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| electric utility implements transition charges, it shall |
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| implement such
charges for all delivery services customers and |
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| for all customers described in
subsection (h), but shall not |
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| implement transition charges for power and
energy that a retail |
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| customer takes from cogeneration or self-generation
facilities |
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| located on that retail customer's premises, if such facilities |
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| meet
the following criteria:
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| (i) the cogeneration or self-generation facilities |
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| serve a single retail
customer and are located on that |
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| retail customer's premises (for purposes of
this |
34 |
| subparagraph and subparagraph (ii), an industrial or |
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| manufacturing retail
customer and a third party contractor |
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| that is served by such industrial or
manufacturing customer |
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| through such retail customer's own electrical
distribution |
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| facilities under the circumstances described in subsection |
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| (vi) of
the definition of "alternative retail electric |
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| supplier" set forth in Section
16-102, shall be considered |
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| a single retail customer);
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| (ii) the cogeneration or self-generation facilities |
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| either (A) are sized
pursuant to generally accepted |
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| engineering standards for the retail customer's
electrical |
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| load at that premises (taking into account standby or other
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| reliability considerations related to that retail |
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| customer's operations at that
site) or (B) if the facility |
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| is a cogeneration facility located on the retail
customer's |
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| premises, the retail customer is the thermal host for that |
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| facility
and the facility has been designed to meet that |
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| retail customer's thermal
energy requirements resulting in |
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| electrical output beyond that retail
customer's electrical |
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| demand at that premises, comply with the operating and
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| efficiency standards applicable to "qualifying facilities" |
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| specified in title
18 Code of Federal Regulations Section |
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| 292.205 as in effect on the effective
date of this |
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| amendatory Act of 1999;
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| (iii) the retail customer on whose premises the |
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| facilities are located
either has an exclusive right to |
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| receive, and corresponding obligation to pay
for, all of |
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| the electrical capacity of the facility, or in the case of |
28 |
| a
cogeneration facility that has been designed to meet the |
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| retail customer's
thermal energy requirements at that |
30 |
| premises, an identified amount of the
electrical capacity |
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| of the facility, over a minimum 5-year period; and
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| (iv) if the cogeneration facility is sized for the
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| retail customer's thermal load at that premises but exceeds |
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| the electrical
load, any sales of excess power or energy |
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| are made only at wholesale, are
subject to the jurisdiction |
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| of the Federal Energy Regulatory Commission, and
are not |
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| for the purpose of circumventing the provisions of this |
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| subsection (f).
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| If a generation facility located at a retail customer's |
6 |
| premises does not meet
the above criteria, an electric utility |
7 |
| implementing
transition charges shall implement a transition |
8 |
| charge until December 31, 2008
2006
for any power and energy |
9 |
| taken by such retail customer from such facility as if
such |
10 |
| power and energy had been delivered by the electric utility. |
11 |
| Provided,
however, that an industrial retail customer that is |
12 |
| taking power from a
generation facility that does not meet the |
13 |
| above criteria but that is located
on such customer's premises |
14 |
| will not be subject to a transition charge for the
power and |
15 |
| energy taken by such retail customer from such generation |
16 |
| facility if
the facility does not serve any other retail |
17 |
| customer and either was installed
on behalf of the customer and |
18 |
| for its own use prior to January 1, 1997, or is
both |
19 |
| predominantly fueled by byproducts of such customer's |
20 |
| manufacturing
process at such premises and sells or offers an |
21 |
| average of 300 megawatts or
more of electricity produced from |
22 |
| such generation facility into the wholesale
market.
Such |
23 |
| charges
shall be calculated as provided in Section
16-102, and |
24 |
| shall be collected
on each kilowatt-hour delivered under a
|
25 |
| delivery services tariff to a retail customer from the date
the |
26 |
| customer first takes delivery services until December 31,
2008
|
27 |
| 2006 except as provided in subsection (h) of this Section.
|
28 |
| Provided, however, that an electric utility, other than an |
29 |
| electric utility
providing service to at least 1,000,000 |
30 |
| customers in this State on January 1,
1999,
shall be entitled |
31 |
| to petition for
entry of an order by the Commission authorizing |
32 |
| the electric utility to
implement transition charges for an |
33 |
| additional period ending no later than
December 31, 2010
2008 . |
34 |
| The electric utility shall file its petition with
supporting |
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
|
|
1 |
| evidence no earlier than 16 months, and no later than 12 |
2 |
| months,
prior to December 31, 2008
2006 . The Commission shall |
3 |
| hold a hearing on the
electric utility's petition and shall |
4 |
| enter its order no later than 8 months
after the petition is |
5 |
| filed. The Commission shall determine whether and to
what |
6 |
| extent the electric utility shall be authorized to implement |
7 |
| transition
charges for an additional period. The Commission may |
8 |
| authorize the electric
utility to implement transition charges |
9 |
| for some or all of the additional
period, and shall determine |
10 |
| the mitigation factors to be used in implementing
such |
11 |
| transition charges; provided, that the Commission shall not |
12 |
| authorize
mitigation factors less than 110% of those in effect |
13 |
| during the 12 months ended
December 31, 2008
2006 . In making |
14 |
| its determination, the Commission shall consider
the following |
15 |
| factors: the necessity to implement transition charges for an
|
16 |
| additional period in order to maintain the financial integrity |
17 |
| of the electric
utility; the prudence of the electric utility's |
18 |
| actions in reducing its costs
since the effective date of this |
19 |
| amendatory Act of 1997; the ability of the
electric utility to |
20 |
| provide safe, adequate and reliable service to retail
customers |
21 |
| in its service area; and the impact on competition of allowing |
22 |
| the
electric utility to implement transition charges for the |
23 |
| additional period.
|
24 |
| (g) The electric utility shall file tariffs that
establish |
25 |
| the transition charges to be paid by each class of
customers to |
26 |
| the electric utility in conjunction with the
provision of |
27 |
| delivery services. The electric utility's tariffs
shall define |
28 |
| the classes of its customers for purposes of
calculating |
29 |
| transition charges. The electric utility's tariffs
shall |
30 |
| provide for the calculation of transition charges on a
|
31 |
| customer-specific basis for any retail customer whose average
|
32 |
| monthly maximum electrical demand on the electric utility's
|
33 |
| system during the 6 months with the customer's highest monthly
|
34 |
| maximum electrical demands equals or exceeds 3.0 megawatts for
|
|
|
|
09400HB3246ham001 |
- 14 - |
LRB094 09569 MKM 44867 a |
|
|
1 |
| electric utilities having more than 1,000,000 customers, and
|
2 |
| for other electric utilities for any customer that has an
|
3 |
| average monthly maximum electrical demand on the electric
|
4 |
| utility's system of one megawatt or more, and (A) for which
|
5 |
| there exists data on the customer's usage during the 3 years
|
6 |
| preceding the date that the customer became eligible to take
|
7 |
| delivery services, or (B) for which there does not exist data
|
8 |
| on the customer's usage during the 3 years preceding the date
|
9 |
| that the customer became eligible to take delivery services,
if |
10 |
| in the electric utility's reasonable judgment there exists
|
11 |
| comparable usage information or a sufficient basis to develop
|
12 |
| such information, and further provided that the electric
|
13 |
| utility can require customers for which an individual
|
14 |
| calculation is made to sign contracts that set forth the
|
15 |
| transition charges to be paid by the customer to the electric
|
16 |
| utility pursuant to the tariff.
|
17 |
| (h) An electric utility shall also be entitled to file
|
18 |
| tariffs that allow it to collect transition charges from
retail |
19 |
| customers in the electric utility's service area that
do not |
20 |
| take delivery services but that take electric power or
energy |
21 |
| from an alternative retail electric supplier or from an
|
22 |
| electric utility other than the electric utility in whose
|
23 |
| service area the customer is located. Such charges shall be
|
24 |
| calculated, in accordance with the definition of transition
|
25 |
| charges in Section 16-102, for the period of time that the
|
26 |
| customer would be obligated to pay transition charges if it
|
27 |
| were taking delivery services, except that no deduction for
|
28 |
| delivery services revenues shall be made in such calculation,
|
29 |
| and usage data from the customer's class shall be used where
|
30 |
| historical usage data is not available for the individual
|
31 |
| customer. The customer shall be obligated to pay such charges
|
32 |
| on a lump sum basis on or before the date on which the
customer |
33 |
| commences to take service from the alternative retail
electric |
34 |
| supplier or other electric utility, provided, that
the electric |
|
|
|
09400HB3246ham001 |
- 15 - |
LRB094 09569 MKM 44867 a |
|
|
1 |
| utility in whose service area the customer is
located shall |
2 |
| offer the customer the option of signing a
contract pursuant to |
3 |
| which the customer pays such charges
ratably over the period in |
4 |
| which the charges would otherwise
have applied.
|
5 |
| (i) An electric utility shall be entitled to add to the
|
6 |
| bills of delivery services customers charges pursuant to
|
7 |
| Sections 9-221, 9-222 (except as provided in Section 9-222.1), |
8 |
| and Section
16-114 of this Act, Section 5-5 of the Electricity |
9 |
| Infrastructure Maintenance
Fee Law, Section 6-5 of the |
10 |
| Renewable Energy, Energy Efficiency, and Coal
Resources |
11 |
| Development Law of 1997, and Section 13 of the Energy |
12 |
| Assistance Act.
|
13 |
| (j) If a retail customer that obtains electric power and
|
14 |
| energy from cogeneration or self-generation facilities
|
15 |
| installed for its own use on or before January 1, 1997,
|
16 |
| subsequently takes service from an alternative retail electric
|
17 |
| supplier or an electric utility other than the electric
utility |
18 |
| in whose service area the customer is located for any
portion |
19 |
| of the customer's electric power and energy
requirements |
20 |
| formerly obtained from those facilities (including that amount
|
21 |
| purchased from the utility in lieu of such generation and not |
22 |
| as standby power
purchases, under a cogeneration displacement |
23 |
| tariff in effect as of the
effective date of this amendatory |
24 |
| Act of 1997), the
transition charges otherwise applicable |
25 |
| pursuant to subsections (f), (g), or
(h) of this Section shall |
26 |
| not be applicable
in any year to that portion of the customer's |
27 |
| electric power
and energy requirements formerly obtained from |
28 |
| those
facilities, provided, that for purposes of this |
29 |
| subsection
(j), such portion shall not exceed the average |
30 |
| number of
kilowatt-hours per year obtained from the |
31 |
| cogeneration or
self-generation facilities during the 3 years |
32 |
| prior to the
date on which the customer became eligible for |
33 |
| delivery
services, except as provided in subsection (f) of |
34 |
| Section
16-110.
|
|
|
|
09400HB3246ham001 |
- 16 - |
LRB094 09569 MKM 44867 a |
|
|
1 |
| (Source: P.A. 91-50, eff. 6-30-99; 92-690, eff. 7-18-02.)
|
2 |
| (220 ILCS 5/16-111)
|
3 |
| Sec. 16-111. Rates and restructuring transactions during
|
4 |
| mandatory transition period.
|
5 |
| (a) During the mandatory transition period,
|
6 |
| notwithstanding any provision of Article IX of this Act, and
|
7 |
| except as provided in subsections (b), (d), (e), and (f)
of |
8 |
| this Section, the Commission shall not (i) initiate,
authorize |
9 |
| or order any change by way of increase (other than in |
10 |
| connection with
a request for rate increase which was filed |
11 |
| after September 1, 1997 but prior
to October 15, 1997, by an |
12 |
| electric utility serving less than 12,500 customers
in this |
13 |
| State), (ii)
initiate or, unless requested by the electric |
14 |
| utility,
authorize or order any change by way of decrease,
|
15 |
| restructuring or unbundling (except as provided in Section |
16 |
| 16-109A), in the
rates of any electric
utility that were in |
17 |
| effect on October 1, 1996, or (iii) in any order approving
any |
18 |
| application for a merger pursuant to Section 7-204 that was |
19 |
| pending as of
May 16, 1997, impose any condition requiring any |
20 |
| filing for an increase,
decrease, or change in, or other review |
21 |
| of, an electric utility's rates or
enforce any such condition |
22 |
| of any such order;
provided,
however, that this subsection |
23 |
| shall not prohibit the
Commission from:
|
24 |
| (1) approving the application of an electric utility
to |
25 |
| implement an alternative to rate of return regulation
or a |
26 |
| regulatory mechanism that rewards or penalizes the
|
27 |
| electric utility through adjustment of rates based on
|
28 |
| utility performance, pursuant to Section 9-244;
|
29 |
| (2) authorizing an electric utility to eliminate its
|
30 |
| fuel adjustment clause and adjust its base rate tariffs
in |
31 |
| accordance with subsection (b), (d), or (f) of Section
|
32 |
| 9-220 of this Act, to fix its fuel adjustment factor in
|
33 |
| accordance with subsection (c) of Section 9-220 of this
|
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
|
|
1 |
| Act, or to eliminate its fuel adjustment clause in |
2 |
| accordance with subsection
(e) of Section 9-220 of this |
3 |
| Act;
|
4 |
| (3) ordering into effect tariffs for delivery
services |
5 |
| and transition charges in accordance with
Sections 16-104 |
6 |
| and 16-108, for real-time pricing in
accordance with |
7 |
| Section 16-107, or the options required
by Section 16-110 |
8 |
| and subsection (n) of 16-112,
allowing a billing experiment |
9 |
| in accordance with
Section 16-106, or modifying delivery |
10 |
| services tariffs in accordance with
Section 16-109; or
|
11 |
| (4) ordering or allowing into effect any tariff to
|
12 |
| recover charges pursuant to Sections 9-201.5, 9-220.1,
|
13 |
| 9-221, 9-222 (except as provided in Section 9-222.1), |
14 |
| 16-108, and 16-114 of
this
Act, Section 5-5 of the |
15 |
| Electricity Infrastructure Maintenance Fee Law, Section
|
16 |
| 6-5 of the Renewable Energy, Energy Efficiency, and Coal |
17 |
| Resources Development
Law of 1997, and Section 13 of the |
18 |
| Energy Assistance Act.
|
19 |
| After December 31, 2004, the provisions of this subsection |
20 |
| (a) shall not
apply to an electric utility whose average |
21 |
| residential retail rate was less
than or equal to 90% of the |
22 |
| average residential retail rate for the "Midwest
Utilities", as |
23 |
| that term is defined in subsection (b) of this Section, based |
24 |
| on
data reported on Form 1 to the Federal Energy Regulatory |
25 |
| Commission for
calendar year 1995, and which served between |
26 |
| 150,000 and 250,000 retail
customers in this State on January |
27 |
| 1, 1995
unless the electric utility or its holding company has |
28 |
| been acquired by or
merged with an affiliate of another |
29 |
| electric utility subsequent to January 1,
2002. This exemption |
30 |
| shall be limited to
this subsection (a) and shall not extend to |
31 |
| any other provisions of this Act.
|
32 |
| (b) Notwithstanding the provisions of subsection (a), each |
33 |
| Illinois electric
utility serving more than 12,500 customers in |
34 |
| Illinois shall file tariffs (i)
reducing, effective August 1, |
|
|
|
09400HB3246ham001 |
- 18 - |
LRB094 09569 MKM 44867 a |
|
|
1 |
| 1998, each component of its base rates to
residential retail
|
2 |
| customers by 15% from the base rates in effect immediately |
3 |
| prior to January 1,
1998 and (ii) if the public utility |
4 |
| provides electric service to (A) more
than
500,000
customers |
5 |
| but less than 1,000,000 customers in this State on January 1,
|
6 |
| 1999,
reducing, effective May 1, 2002, each component of its
|
7 |
| base rates to residential retail customers by an additional 5% |
8 |
| from the base
rates in effect immediately prior to January 1, |
9 |
| 1998, or (B) at least
1,000,000 customers in this State on |
10 |
| January 1, 1999,
reducing, effective October 1, 2001, each |
11 |
| component of its
base rates to residential retail customers by |
12 |
| an additional
5% from the base rates in effect immediately |
13 |
| prior to
January 1, 1998.
Provided, however, that (A) if an |
14 |
| electric utility's average residential
retail
rate is less than |
15 |
| or equal to the average residential retail
rate for a group
of |
16 |
| Midwest Utilities (consisting of all investor-owned electric |
17 |
| utilities with
annual system peaks in excess of 1000 megawatts |
18 |
| in the States of Illinois,
Indiana, Iowa, Kentucky, Michigan, |
19 |
| Missouri, Ohio, and Wisconsin), based on
data
reported on Form |
20 |
| 1 to the Federal Energy Regulatory Commission for calendar
year |
21 |
| 1995,
then it shall only be required to file tariffs (i) |
22 |
| reducing, effective August
1, 1998, each component of its base |
23 |
| rates to residential
retail customers by
5% from the base rates |
24 |
| in effect immediately prior to January 1, 1998, (ii)
reducing, |
25 |
| effective October 1, 2000, each component of its base
rates to |
26 |
| residential retail customers by the lesser of 5% of the base |
27 |
| rates in
effect immediately prior to January 1, 1998 or the
|
28 |
| percentage by which the electric utility's average residential |
29 |
| retail rate
exceeds the average residential retail rate of the |
30 |
| Midwest Utilities,
based on data
reported on Form 1 to the |
31 |
| Federal Energy Regulatory Commission for calendar
year 1999, |
32 |
| and (iii) reducing, effective October 1, 2002, each component |
33 |
| of its
base rates to
residential retail customers by an
|
34 |
| additional amount equal to the lesser of 5% of the base rates |
|
|
|
09400HB3246ham001 |
- 19 - |
LRB094 09569 MKM 44867 a |
|
|
1 |
| in effect
immediately prior to January 1, 1998 or the |
2 |
| percentage by which
the electric utility's average residential |
3 |
| retail rate exceeds the average
residential retail rate of the |
4 |
| Midwest Utilities,
based on data reported on Form
1 to the |
5 |
| Federal Energy Regulatory Commission for calendar year 2001; |
6 |
| and (B)
if the average residential retail rate of an electric |
7 |
| utility serving between
150,000
and 250,000 retail customers in |
8 |
| this State on January 1, 1995 is less than or
equal to 90% of
|
9 |
| the average residential retail rate for the Midwest Utilities, |
10 |
| based on data
reported
on Form 1 to the Federal Energy |
11 |
| Regulatory Commission for calendar year 1995,
then it shall |
12 |
| only be required to file tariffs (i) reducing, effective August
|
13 |
| 1,
1998, each component of its base rates to residential retail |
14 |
| customers by 2%
from the base rates in effect immediately prior |
15 |
| to January 1, 1998; (ii)
reducing, effective October 1, 2000, |
16 |
| each component of its base rates to
residential retail |
17 |
| customers by 2% from the base rate in effect immediately
prior |
18 |
| to January 1, 1998; and (iii) reducing, effective October 1, |
19 |
| 2002, each
component of its base rates to residential retail |
20 |
| customers by 1% from the base
rates in effect immediately prior |
21 |
| to January 1, 1998.
Provided,
further, that any electric |
22 |
| utility for which a decrease in base rates has been
or is |
23 |
| placed into effect between October 1, 1996 and the dates |
24 |
| specified in the
preceding sentences of this subsection, other |
25 |
| than pursuant to the requirements
of this subsection,
shall be |
26 |
| entitled to reduce the amount of any reduction or reductions in |
27 |
| its
base rates required by this subsection by the amount of |
28 |
| such other decrease.
The tariffs required under this
subsection |
29 |
| shall be filed 45 days in advance of
the effective date.
|
30 |
| Notwithstanding anything to the contrary in Section 9-220 of |
31 |
| this Act, no
restatement of base rates in conjunction with the |
32 |
| elimination of a fuel
adjustment clause under that Section |
33 |
| shall result in a lesser decrease in base
rates than customers |
34 |
| would otherwise receive under this subsection had the
electric |
|
|
|
09400HB3246ham001 |
- 20 - |
LRB094 09569 MKM 44867 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, |
27 |
| calculated as its net
income applicable to common stock divided |
28 |
| by the average of
its beginning and ending balances of common |
29 |
| equity using data
reported in the electric utility's Form 1 |
30 |
| report to the
Federal Energy Regulatory Commission but adjusted |
31 |
| to remove
the effects of accelerated depreciation or |
32 |
| amortization or
other transition or mitigation measures |
33 |
| implemented by the
electric utility pursuant to subsection (g) |
34 |
| of this Section
and the effect of any refund paid pursuant to |
|
|
|
09400HB3246ham001 |
- 21 - |
LRB094 09569 MKM 44867 a |
|
|
1 |
| subsection (e)
of this Section, is
below the 2-year average for |
2 |
| the same 2 years of the monthly average yields of
30-year
U.S. |
3 |
| Treasury bonds published by the Board of Governors of the
|
4 |
| Federal Reserve System in its weekly H.15 Statistical Release |
5 |
| or
successor publication.
The Commission shall review the |
6 |
| electric utility's request, and may review the
justness and |
7 |
| reasonableness of all rates for tariffed services, in
|
8 |
| accordance with the provisions of Article IX of this Act, |
9 |
| provided that the
Commission shall consider any special or |
10 |
| negotiated adjustments to the
revenue requirement agreed to |
11 |
| between the electric utility and the other
parties to the |
12 |
| proceeding. In setting rates under this Section, the Commission
|
13 |
| shall exclude the costs and revenues that are associated with |
14 |
| competitive
services and any billing or pricing experiments |
15 |
| conducted under Section 16-106.
|
16 |
| (e) For the purposes of this subsection (e) all |
17 |
| calculations and
comparisons shall be performed for the |
18 |
| Illinois operations
of
multijurisdictional utilities. During |
19 |
| the mandatory transition period,
notwithstanding the |
20 |
| provisions
of subsection (a), if the 2-year
average of an |
21 |
| electric utility's earned rate of return on
common equity, |
22 |
| calculated as its net income applicable to
common stock divided |
23 |
| by the average of its beginning and
ending balances of common |
24 |
| equity using data reported in
the electric utility's Form 1 |
25 |
| report to the Federal
Energy Regulatory Commission but adjusted |
26 |
| to remove the
effect of any refund paid under this subsection |
27 |
| (e),
and further adjusted to include the annual amortization of |
28 |
| any difference
between the consideration received by an |
29 |
| affiliated interest of the electric
utility in the sale of an |
30 |
| asset which had been sold or transferred by the
electric |
31 |
| utility to the affiliated interest subsequent to the effective |
32 |
| date of
this
amendatory Act of 1997 and the consideration for |
33 |
| which such asset had been sold
or transferred to the affiliated |
34 |
| interest, with such difference to be amortized
ratably from the |
|
|
|
09400HB3246ham001 |
- 22 - |
LRB094 09569 MKM 44867 a |
|
|
1 |
| date of the sale by the affiliated interest to December 31,
|
2 |
| 2008
2006 ,
exceeds the 2-year average of the Index for the same |
3 |
| 2
years by 1.5 or more percentage points, the electric
utility |
4 |
| shall make refunds to customers beginning the
first billing day |
5 |
| of April in the following year in the
manner described in |
6 |
| paragraph (3) of this subsection.
For purposes of this |
7 |
| subsection (e),
the "Index" shall be the sum of (A) the average |
8 |
| for
the 12 months ended September 30
of the monthly average |
9 |
| yields of 30-year U.S. Treasury
bonds published by the Board of |
10 |
| Governors of the Federal
Reserve System in its weekly H.15 |
11 |
| Statistical Release or
successor publication for each year 1998 |
12 |
| through 2008
2006 , and (B) (i)
4.00
percentage points for
each |
13 |
| of the 12-month periods ending September 30, 1998 through
|
14 |
| September 30, 1999 or
8.00 percentage points if the electric |
15 |
| utility's average
residential retail rate is less than or equal |
16 |
| to 90% of the average residential
retail rate
for the "Midwest |
17 |
| Utilities", as that term is defined in subsection (b) of this
|
18 |
| Section, based on data reported on Form 1 to the Federal Energy |
19 |
| Regulatory
Commission for calendar year 1995, and the electric |
20 |
| utility served between
150,000 and 250,000 retail customers on |
21 |
| January 1, 1995,
(ii) 7.00
percentage points for each of the |
22 |
| 12-month periods ending September 30, 2000
through September |
23 |
| 30, 2008
2006 if the electric utility was providing
service to
|
24 |
| at least 1,000,000 customers in this State on January 1, 1999,
|
25 |
| or 9.00 percentage points if the
electric
utility's
average |
26 |
| residential retail rate is less than or equal to 90% of the |
27 |
| average
residential retail rate for the "Midwest Utilities", as |
28 |
| that term is defined in
subsection (b) of this Section, based |
29 |
| on data reported on Form 1 to the Federal
Energy Regulatory |
30 |
| Commission for calendar year 1995 and the electric utility
|
31 |
| served between 150,000 and 250,000 retail customers in this |
32 |
| State on January
1, 1995, (iii) 11.00 percentage points for |
33 |
| each of the
12-month periods ending
September 30, 2000 through |
34 |
| September 30, 2008
2006 , but only if the
electric
utility's |
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
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|
1 |
| average residential retail rate is less than or equal to 90% of |
2 |
| the
average residential retail rate for the "Midwest |
3 |
| Utilities", as that term is
defined in subsection (b) of this |
4 |
| Section, based on data reported on Form 1 to
the Federal Energy |
5 |
| Regulatory Commission for calendar year 1995, the electric
|
6 |
| utility served between 150,000 and 250,000 retail customers in |
7 |
| this State on
January 1, 1995, and the electric utility offers |
8 |
| delivery services on or before
June 1, 2000 to retail customers |
9 |
| whose annual electric energy use comprises 33%
of the kilowatt |
10 |
| hour sales to that group of retail
customers that are |
11 |
| classified under Division D, Groups 20 through 39 of the
|
12 |
| Standard Industrial Classifications set forth in the Standard |
13 |
| Industrial
Classification Manual published by the United |
14 |
| States Office of Management and
Budget, excluding the kilowatt |
15 |
| hour sales to those customers that are eligible
for delivery |
16 |
| services pursuant to Section 16-104(a)(1)(i), and offers |
17 |
| delivery
services to its remaining retail customers classified |
18 |
| under Division D, Groups
20 through 39 on or before October 1, |
19 |
| 2000, and, provided further, that the
electric
utility commits |
20 |
| not to petition pursuant to Section 16-108(f) for entry of an
|
21 |
| order by the Commission authorizing the electric utility to |
22 |
| implement
transition charges for an additional period after |
23 |
| December 31, 2008
2006 , or (iv)
5.00 percentage points for each |
24 |
| of the 12-month periods
ending September 30, 2000 through |
25 |
| September 30, 2008
2006 for all other
electric
utilities or |
26 |
| 7.00 percentage points for such utilities for
each of the |
27 |
| 12-month periods ending September 30, 2000 through September |
28 |
| 30,
2008
2006 for any such utility that commits not to petition |
29 |
| pursuant to
Section
16-108(f) for entry of an order by the |
30 |
| Commission authorizing the electric
utility to implement |
31 |
| transition charges for an additional period after December
31, |
32 |
| 2008
2006 or 11.00 percentage points for each of the
12-month |
33 |
| periods ending September 30, 2005 and September 30, 2008
2006
|
34 |
| for each
electric utility providing service to fewer than |
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
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|
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| 6,500, or between 75,000 and
150,000, electric
retail customers |
2 |
| in this State
on January 1, 1995 if such utility commits not to |
3 |
| petition pursuant to Section
16-108(f) for entry of an order by |
4 |
| the Commission authorizing the electric
utility to implement |
5 |
| transition charges for an additional period after December
31, |
6 |
| 2008
2006 .
|
7 |
| (1) For purposes of this subsection (e), "excess
|
8 |
| earnings" means the difference between (A) the 2-year
|
9 |
| average of the electric utility's earned rate of return
on |
10 |
| common equity, less (B) the 2-year average of the sum
of |
11 |
| (i) the Index applicable to each of the 2 years and
(ii) |
12 |
| 1.5 percentage points; provided, that "excess
earnings" |
13 |
| shall never be less than zero.
|
14 |
| (2) On or before March 31 of each year 2000 through |
15 |
| 2009
2007 each
electric
utility shall
file a report with |
16 |
| the Commission showing its earned rate
of return on common |
17 |
| equity, calculated in accordance with
this subsection, for |
18 |
| the preceding calendar year and the
average for the |
19 |
| preceding 2 calendar years.
|
20 |
| (3) If an electric utility has excess earnings,
|
21 |
| determined in accordance with paragraphs (1) and (2) of
|
22 |
| this subsection, the refunds which the electric utility
|
23 |
| shall pay to its customers beginning the first billing
day |
24 |
| of April in the following year shall be calculated
and |
25 |
| applied as follows:
|
26 |
| (i) The electric utility's excess earnings
shall |
27 |
| be multiplied by the average of the beginning
and |
28 |
| ending balances of the electric utility's common
|
29 |
| equity for the 2-year period in which excess
earnings |
30 |
| occurred.
|
31 |
| (ii) The result of the calculation in (i) shall
be |
32 |
| multiplied by 0.50 and then divided by a number
equal |
33 |
| to 1 minus the electric utility's composite
federal and |
34 |
| State income tax rate.
|
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
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|
1 |
| (iii) The result of the calculation in (ii)
shall |
2 |
| be divided by the sum of the electric
utility's |
3 |
| projected total kilowatt-hour sales to
retail |
4 |
| customers plus projected kilowatt-hours to be
|
5 |
| delivered to delivery services customers over a one
|
6 |
| year period beginning with the first billing date in
|
7 |
| April in the succeeding year to determine a cents
per |
8 |
| kilowatt-hour refund factor.
|
9 |
| (iv) The cents per kilowatt-hour refund factor
|
10 |
| calculated in (iii) shall be credited to the
electric |
11 |
| utility's customers by applying the factor
on the |
12 |
| customer's monthly bills to each kilowatt-hour sold or |
13 |
| delivered until
the total amount
calculated in (ii) has |
14 |
| been paid to customers.
|
15 |
| (f) During the mandatory transition period, an electric
|
16 |
| utility may file revised tariffs reducing the price of any
|
17 |
| tariffed service offered by the electric utility for all
|
18 |
| customers taking that tariffed service, which shall be
|
19 |
| effective 7 days after filing.
|
20 |
| (g) During the mandatory transition period, an electric
|
21 |
| utility may, without obtaining any approval of the Commission |
22 |
| other than that
provided for in this subsection and
|
23 |
| notwithstanding any other provision of this Act or any rule or
|
24 |
| regulation of the Commission that would require such approval:
|
25 |
| (1) implement a reorganization, other than a merger of |
26 |
| 2 or
more public utilities as defined in Section 3-105 or |
27 |
| their
holding companies;
|
28 |
| (2) retire generating plants from service;
|
29 |
| (3) sell, assign, lease or otherwise transfer assets to |
30 |
| an
affiliated or unaffiliated entity and as part of such
|
31 |
| transaction enter into service agreements, power purchase
|
32 |
| agreements, or other agreements with the transferee; |
33 |
| provided,
however, that the prices, terms and conditions of |
34 |
| any power
purchase agreement must be approved or allowed |
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
|
|
1 |
| into effect by
the Federal Energy Regulatory Commission; or
|
2 |
| (4) use any
accelerated cost recovery method including |
3 |
| accelerated depreciation,
accelerated amortization or |
4 |
| other capital recovery
methods, or record reductions to the |
5 |
| original cost of its
assets.
|
6 |
| In order to implement a reorganization, retire
generating |
7 |
| plants from service, or sell, assign, lease or
otherwise |
8 |
| transfer assets pursuant to this Section, the
electric utility |
9 |
| shall comply with subsections (c) and (d) of Section
16-128, if |
10 |
| applicable, and subsection (k) of this Section, if applicable,
|
11 |
| and provide the Commission with at
least 30 days notice of the |
12 |
| proposed reorganization or
transaction, which notice shall |
13 |
| include the following
information:
|
14 |
| (i) a complete statement of the entries that the
|
15 |
| electric utility will make on its books and records of
|
16 |
| account to implement the proposed reorganization or
|
17 |
| transaction together with a certification from an
|
18 |
| independent certified public accountant that such |
19 |
| entries
are in accord with generally accepted |
20 |
| accounting
principles and, if the Commission has |
21 |
| previously approved
guidelines for cost allocations |
22 |
| between the utility and
its affiliates, a |
23 |
| certification from the chief accounting
officer of the |
24 |
| utility that such entries are in accord
with those cost |
25 |
| allocation guidelines;
|
26 |
| (ii) a description of how the electric utility will
|
27 |
| use proceeds of any sale, assignment, lease or transfer
|
28 |
| to retire debt or otherwise reduce or recover the costs
|
29 |
| of services provided by such electric utility;
|
30 |
| (iii) a list of all federal approvals or approvals
|
31 |
| required from departments and agencies of this State,
|
32 |
| other than the Commission, that the electric utility |
33 |
| has
or will obtain before implementing the |
34 |
| reorganization or
transaction;
|
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
|
|
1 |
| (iv) an irrevocable commitment by the electric
|
2 |
| utility that it will not, as a result of the |
3 |
| transaction,
impose any stranded cost charges that it |
4 |
| might otherwise
be allowed to charge retail customers |
5 |
| under federal law
or increase the transition charges |
6 |
| that it is otherwise
entitled to collect under this |
7 |
| Article XVI; and
|
8 |
| (v) if the electric utility proposes to sell,
|
9 |
| assign, lease or otherwise transfer a generating plant
|
10 |
| that brings the amount of net dependable generating
|
11 |
| capacity transferred pursuant to this subsection to an
|
12 |
| amount equal to or greater than 15% of the electric
|
13 |
| utility's net dependable capacity as of the effective
|
14 |
| date of this amendatory Act of 1997, and enters into a
|
15 |
| power purchase agreement with the entity to which such
|
16 |
| generating plant is sold, assigned, leased, or |
17 |
| otherwise
transferred, the electric utility also |
18 |
| agrees, if its
fuel adjustment clause has not already |
19 |
| been eliminated,
to eliminate its fuel adjustment |
20 |
| clause in accordance
with subsection (b) of Section |
21 |
| 9-220 for a period of time
equal to the length of any |
22 |
| such power purchase agreement
or successor agreement, |
23 |
| or until January 1, 2005,
whichever is longer; if the |
24 |
| capacity of the generating
plant so transferred and |
25 |
| related power purchase agreement
does not result in the |
26 |
| elimination of the fuel adjustment
clause under this |
27 |
| subsection, and the fuel adjustment clause has not |
28 |
| already
been eliminated, the electric utility shall
|
29 |
| agree that the costs associated with the transferred
|
30 |
| plant that are included in the calculation of the rate
|
31 |
| per kilowatt-hour to be applied pursuant to the |
32 |
| electric
utility's fuel adjustment clause during such |
33 |
| period shall
not exceed the per kilowatt-hour cost |
34 |
| associated with
such generating plant included in the |
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
|
|
1 |
| electric utility's
fuel adjustment clause during the |
2 |
| full calendar year
preceding the transfer, with such |
3 |
| limit to be adjusted
each year thereafter by the Gross |
4 |
| Domestic Product
Implicit Price Deflator.
|
5 |
| (vi) In addition, if the electric utility proposes |
6 |
| to sell, assign, or
lease, (A) either (1) an amount of |
7 |
| generating plant that brings the amount of
net |
8 |
| dependable generating capacity transferred pursuant to |
9 |
| this subsection to
an amount equal to or greater than |
10 |
| 15% of its net dependable capacity on the
effective |
11 |
| date of this amendatory Act of 1997, or (2) one or more |
12 |
| generating
plants with a total net dependable capacity |
13 |
| of 1100 megawatts, or (B)
transmission and |
14 |
| distribution facilities that either (1) bring the |
15 |
| amount of
transmission and distribution facilities |
16 |
| transferred pursuant to this
subsection to an amount |
17 |
| equal to or greater than 15% of the electric utility's
|
18 |
| total depreciated original cost investment in such |
19 |
| facilities, or (2) represent
an investment of |
20 |
| $25,000,000 in terms of total depreciated original |
21 |
| cost, the
electric utility shall provide, in
addition |
22 |
| to the information listed in subparagraphs
(i) through |
23 |
| (v), the following information: (A) a description of |
24 |
| how the
electric utility will meet its service |
25 |
| obligations under this Act in a safe and
reliable |
26 |
| manner and (B) the electric utility's projected earned |
27 |
| rate of
return on common equity, calculated in |
28 |
| accordance with subsection (d) of this
Section, for |
29 |
| each year from the date of the notice through December |
30 |
| 31,
2008
2006
both with and without the proposed |
31 |
| transaction. If
the Commission has not issued an order |
32 |
| initiating a hearing on the proposed
transaction |
33 |
| within 30 days after the date the electric utility's |
34 |
| notice is
filed, the transaction shall be deemed |
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
|
|
1 |
| approved. The Commission may, after
notice and |
2 |
| hearing,
prohibit the proposed transaction if it makes |
3 |
| either or both of the following
findings: (1) that the |
4 |
| proposed transaction will render the electric utility
|
5 |
| unable to provide its tariffed services in a safe and |
6 |
| reliable manner, or (2)
that there is a strong |
7 |
| likelihood that consummation of the proposed |
8 |
| transaction
will result in the electric utility being |
9 |
| entitled to request an increase in
its base rates |
10 |
| during the mandatory transition period pursuant to |
11 |
| subsection
(d) of this Section. Any hearing initiated |
12 |
| by the Commission into the proposed
transaction shall |
13 |
| be completed, and the Commission's final order |
14 |
| approving or
prohibiting the proposed transaction |
15 |
| shall be entered, within 90 days after the
date the |
16 |
| electric utility's notice was filed.
Provided, |
17 |
| however, that a sale, assignment, or lease of |
18 |
| transmission facilities
to an independent system |
19 |
| operator that meets the requirements of Section 16-126
|
20 |
| shall not be subject to Commission approval under this |
21 |
| Section.
|
22 |
| In any proceeding conducted by the Commission |
23 |
| pursuant to this
subparagraph
(vi), intervention shall |
24 |
| be limited to parties with a direct interest in the
|
25 |
| transaction which is the subject of the hearing and any |
26 |
| statutory consumer
protection agency as defined in |
27 |
| subsection (d) of Section 9-102.1.
Notwithstanding the |
28 |
| provisions of Section 10-113 of this Act, any |
29 |
| application
seeking rehearing of an order issued under |
30 |
| this subparagraph (vi), whether
filed by the electric |
31 |
| utility or by an intervening party, shall be filed |
32 |
| within
10 days after service of the order.
|
33 |
| The Commission shall not in any subsequent proceeding or
|
34 |
| otherwise, review such a reorganization or other transaction
|
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
|
|
1 |
| authorized by this Section, but shall retain the authority to |
2 |
| allocate costs as
stated in Section 16-111(i). An entity to |
3 |
| which an electric
utility sells, assigns, leases or transfers |
4 |
| assets pursuant to
this subsection (g) shall not, as a result |
5 |
| of the transactions
specified in this subsection (g), be deemed |
6 |
| a public utility
as defined in Section 3-105. Nothing in this |
7 |
| subsection (g)
shall change any requirement under the |
8 |
| jurisdiction of the
Illinois Department of Nuclear Safety |
9 |
| including, but not
limited to, the payment of fees. Nothing in |
10 |
| this subsection
(g) shall exempt a utility from obtaining a |
11 |
| certificate
pursuant to Section 8-406 of this Act for the |
12 |
| construction of
a new electric generating facility. Nothing in |
13 |
| this
subsection (g) is intended to exempt the transactions |
14 |
| hereunder from the
operation of the federal or State antitrust
|
15 |
| laws. Nothing in this subsection (g) shall require an electric
|
16 |
| utility to use the procedures specified in this subsection for
|
17 |
| any of the transactions specified herein. Any other procedure
|
18 |
| available under this Act may, at the electric utility's
|
19 |
| election, be used for any such transaction.
|
20 |
| (h) During the mandatory transition period, the
Commission |
21 |
| shall not establish or use any rates of
depreciation, which for |
22 |
| purposes of this subsection shall
include amortization, for any |
23 |
| electric utility other than
those established pursuant to |
24 |
| subsection (c) of Section 5-104
of this Act or utilized |
25 |
| pursuant to subsection (g) of this
Section. Provided, however, |
26 |
| that in any proceeding to review an electric
utility's rates |
27 |
| for tariffed services pursuant to Section 9-201, 9-202, 9-250
|
28 |
| or
16-111(d) of this Act, the Commission may establish new |
29 |
| rates
of depreciation for the electric utility in the same |
30 |
| manner provided in
subsection (d) of Section 5-104 of this Act.
|
31 |
| An electric utility implementing an accelerated cost
recovery |
32 |
| method including accelerated depreciation,
accelerated |
33 |
| amortization or other capital recovery methods, or
recording |
34 |
| reductions to the original cost of its assets,
pursuant to |
|
|
|
09400HB3246ham001 |
- 31 - |
LRB094 09569 MKM 44867 a |
|
|
1 |
| subsection (g) of this Section, shall file a
statement with the |
2 |
| Commission describing the accelerated cost
recovery method to |
3 |
| be implemented or the reduction in the
original cost of its |
4 |
| assets to be recorded. Upon the filing
of such statement, the |
5 |
| accelerated cost recovery method or the
reduction in the |
6 |
| original cost of assets shall be deemed to be
approved by the |
7 |
| Commission as though an order had been entered
by the |
8 |
| Commission.
|
9 |
| (i) Subsequent to the mandatory transition period, the
|
10 |
| Commission, in any proceeding to establish rates and charges
|
11 |
| for tariffed services offered by an electric utility, shall
|
12 |
| consider only (1) the then current or projected revenues,
|
13 |
| costs, investments and cost of capital directly or
indirectly |
14 |
| associated with the provision of such tariffed
services; (2) |
15 |
| collection of transition charges in accordance
with Sections |
16 |
| 16-102 and 16-108 of this Act; (3) recovery of
any employee |
17 |
| transition costs as described in Section 16-128
which the |
18 |
| electric utility is continuing to incur, including
recovery of |
19 |
| any unamortized portion of such costs previously
incurred or |
20 |
| committed, with such costs to be equitably
allocated among |
21 |
| bundled services, delivery services, and
contracts with |
22 |
| alternative retail electric suppliers; and (4)
recovery of the |
23 |
| costs associated with the electric utility's
compliance with |
24 |
| decommissioning funding requirements; and
shall not consider |
25 |
| any other revenues, costs, investments
or cost of capital of |
26 |
| either the electric utility or of any
affiliate of the electric |
27 |
| utility that are not associated with the provision of
tariffed |
28 |
| services. In setting rates for tariffed services, the |
29 |
| Commission
shall equitably allocate joint and common costs and |
30 |
| investments between the
electric utility's competitive and |
31 |
| tariffed services. In determining the
justness and
|
32 |
| reasonableness of the electric power and energy component of
an |
33 |
| electric utility's rates for tariffed services subsequent
to |
34 |
| the mandatory transition period and prior to the time that
the |
|
|
|
09400HB3246ham001 |
- 32 - |
LRB094 09569 MKM 44867 a |
|
|
1 |
| provision of such electric power and energy is declared
|
2 |
| competitive, the Commission shall consider the extent to which
|
3 |
| the electric utility's tariffed rates for such component for
|
4 |
| each customer class exceed the market value determined
pursuant |
5 |
| to Section 16-112, and, if the electric power and
energy |
6 |
| component of such tariffed rate exceeds the market
value by |
7 |
| more than 10% for any customer class, may
establish such |
8 |
| electric power and energy component at a rate
equal to the |
9 |
| market value plus 10%.
In any such case, the Commission may |
10 |
| also elect to extend the provisions of
Section 16-111(e) for |
11 |
| any period in which the electric utility is collecting
|
12 |
| transition charges, using information applicable to such |
13 |
| period.
|
14 |
| (j) During the mandatory transition period, an electric
|
15 |
| utility may elect to transfer to a non-operating income
account |
16 |
| under the Commission's Uniform System of Accounts
either or |
17 |
| both of (i) an amount of unamortized investment tax
credit that |
18 |
| is in addition to the ratable amount which is
credited to the |
19 |
| electric utility's operating income account
for the year in |
20 |
| accordance with Section 46(f)(2) of the
federal Internal |
21 |
| Revenue Code of 1986, as in effect prior to P.L. 101-508, or
|
22 |
| (ii) "excess tax reserves",
as that term is defined in Section |
23 |
| 203(e)(2)(A) of the federal
Tax Reform Act of 1986, provided |
24 |
| that (A) the amount
transferred may not exceed the amount of |
25 |
| the electric
utility's assets that were created pursuant to |
26 |
| Statement of
Financial Accounting Standards No. 71 which the |
27 |
| electric
utility has written off during the mandatory |
28 |
| transition
period, and (B) the transfer shall not be effective |
29 |
| until
approved by the Internal Revenue Service. An electric |
30 |
| utility
electing to make such a transfer shall file a statement |
31 |
| with
the Commission stating the amount and timing of the |
32 |
| transfer
for which it intends to request approval of the |
33 |
| Internal
Revenue Service, along with a copy of its proposed |
34 |
| request to
the Internal Revenue Service for a ruling. The |
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
|
|
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.
|
27 |
| (Source: P.A. 91-50, eff. 6-30-99; 92-537, eff. 6-6-02; 92-690, |
28 |
| eff. 7-18-02;
revised 9-10-02.)
|
29 |
| (220 ILCS 5/16-112)
|
30 |
| Sec. 16-112. Determination of market value.
|
31 |
| (a) The market value to be used in the calculation of
|
32 |
| transition charges as defined in Section 16-102 shall be
|
33 |
| determined in accordance with either (i) a tariff that has
been |
|
|
|
09400HB3246ham001 |
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|
1 |
| filed by the electric utility with the Commission
pursuant to |
2 |
| Article IX of this Act and that provides for a
determination of |
3 |
| the market value for electric power and
energy as a function of |
4 |
| an exchange traded or other market
traded index, options or |
5 |
| futures contract or contracts
applicable to the market in which |
6 |
| the utility sells, and the
customers in its service area buy, |
7 |
| electric power and energy,
or (ii) in the event no such tariff |
8 |
| has been placed into
effect for the electric utility, or in the |
9 |
| event such tariff
does not establish market values for each of |
10 |
| the years
specified in the neutral fact-finder process |
11 |
| described in
subsections (b) through (h) of this Section, a |
12 |
| tariff
incorporating the market values resulting from the |
13 |
| neutral
fact-finder process set forth in subsections (b) |
14 |
| through (h)
of this Section.
|
15 |
| (b) Except as provided in subsection (m) of this
Section, |
16 |
| on or before April 30, 1998, on or before February 28, 1999, |
17 |
| and on or
before each April 30
from 2000 until 2009
2007 , the |
18 |
| Commission shall appoint a neutral
fact-finder to make the |
19 |
| calculations described in subsection
(c) of this Section. The |
20 |
| neutral fact-finder shall be a
member of a national public |
21 |
| accounting firm, shall not have
served as the neutral |
22 |
| fact-finder in the previous year, and
shall be selected from a |
23 |
| list of candidates provided by
a nationally
recognized provider |
24 |
| of neutral fact-finders that has
established rules for |
25 |
| maintaining confidentiality. An amount
sufficient to pay the |
26 |
| fees of the neutral fact-finder shall be
appropriated annually |
27 |
| from the Public Utility Fund in the
State treasury.
|
28 |
| (c) On or before June 1, 1998, on or before April 1, 1999, |
29 |
| and on or before
each June 1
from 2000 until 2009
2007 , or |
30 |
| until discontinued in accordance with
subsection (m) of this |
31 |
| Section, each electric utility and each
alternative retail |
32 |
| electric supplier shall submit to the neutral
fact-finder a |
33 |
| summary of (A) all contracts entered into after
June 1, 1997 |
34 |
| that are for the sale of electric power and
energy from a |
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
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|
1 |
| generating facility or facilities located in
this State or |
2 |
| located in a contiguous State and owned by an
electric utility |
3 |
| as part of its interconnected operating
system and delivery |
4 |
| during one or more of the 5 years
succeeding the date of |
5 |
| submission, and (B) all contracts
entered into after June 1, |
6 |
| 1997 for purchase and delivery of
electric power and energy in |
7 |
| or into this State during one or
more of the 5 years succeeding |
8 |
| the date of submission;
provided, however, that such contracts |
9 |
| shall not include (i)
contracts between the electric utility |
10 |
| and an affiliate; (ii)
sales, purchases, or deliveries made |
11 |
| under rates and tariffs
filed with the Commission, except for |
12 |
| tariffs filed pursuant
to subsection (d) of Section 16-110 and |
13 |
| except for special or
negotiated rate contracts between an |
14 |
| electric utility and a
retail customer to the extent that such |
15 |
| contracts are for the
provision of electric power and energy |
16 |
| after the date that
the customer becomes eligible for delivery |
17 |
| services; and (iii)
extensions or amendments to full |
18 |
| requirements wholesale
contracts existing as of the effective |
19 |
| date of this amendatory
Act of 1997, provided that such |
20 |
| contracts, extensions, or
amendments are cost of service |
21 |
| regulated by the Federal Energy
Regulatory Commission. The |
22 |
| summaries shall, at a minimum,
identify the date of the |
23 |
| contract; the year in which the
electric power or energy is to |
24 |
| be sold or delivered; the point
of delivery; defining |
25 |
| characteristics such as the
nature of the power transaction |
26 |
| (for example, reserve
responsibility (firm, non-firm)), length |
27 |
| of contract and
temporal differences (for example, season, |
28 |
| on-peak or off-peak); and the
applicable prices stated at the |
29 |
| point at which
the electric power and energy leaves the |
30 |
| electric utility's or
alternative retail electric supplier's |
31 |
| transmission system, as the
case may be, in the case of |
32 |
| contracts described in item (A)
and at the point at which the |
33 |
| electric power and energy enters
the electric utility's |
34 |
| transmission system in the case of
contracts in item (B), |
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
|
|
1 |
| provided, that the applicable price
shall be stated at the |
2 |
| point at which the electric power and
energy enters the |
3 |
| electric utility's transmission system in
the case of electric |
4 |
| power and energy generated for delivery
within the electric |
5 |
| utility's service area. In reporting to
the neutral fact-finder |
6 |
| the price of power and energy sold
under bundled service |
7 |
| contracts, electric utilities and alternative retail
electric
|
8 |
| suppliers shall deduct from the contract
price the charges for |
9 |
| delivery services, including transition
charges, applicable to |
10 |
| delivery services customers in a
utility's service area, and |
11 |
| charges for services, if any,
other than the provision of power |
12 |
| and energy or delivery
services. The Commission may adopt |
13 |
| orders setting forth
requirements governing the form and |
14 |
| content of such summaries.
|
15 |
| (d) The neutral fact-finder shall calculate market
values |
16 |
| for electric power and energy for each electric
utility, taking |
17 |
| into account the defining characteristics set
forth in |
18 |
| subsection (c) of this Section; provided, however,
that the |
19 |
| neutral fact-finder may determine that a particular
value is |
20 |
| appropriate for more than one electric utility, or
for all |
21 |
| electric utilities in this State. The neutral fact-finder shall
|
22 |
| calculate the market values for the next year
and, to the |
23 |
| extent the summaries include a sufficient number
of actual |
24 |
| contracts to represent a viable market for the sale
and |
25 |
| delivery of electric power and energy in subsequent years,
for |
26 |
| each of the 4 succeeding years.
|
27 |
| (e) In calculating market values for electric power, the
|
28 |
| neutral fact-finder shall weight contract prices (including
|
29 |
| any contract price indices) by both the amount of capacity
|
30 |
| covered by the contract and the number of hours in which
|
31 |
| capacity is to be provided under the contract in each period
of |
32 |
| the year, shall take into account all of the defining
|
33 |
| characteristics set forth in subsection (c) of this Section
and |
34 |
| shall develop such values as required to represent the
|
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
|
|
1 |
| different types of market values of electric power.
|
2 |
| (f) The neutral fact-finder shall base calculations of
the |
3 |
| market values for electric energy on the energy prices
stated |
4 |
| in the contracts, and where no explicit energy prices
or index |
5 |
| price basis are stated, on the actual energy costs of
the |
6 |
| supplier in the corresponding period of the preceding year
that |
7 |
| would have been applicable to the electric energy
provided |
8 |
| under the contract. The neutral fact-finder shall
develop |
9 |
| market values for electric energy and shall take into
account |
10 |
| the defining characteristics set forth in subsection
(c) of |
11 |
| this Section, as required to represent the market
values of |
12 |
| such electric energy.
|
13 |
| (g) If the contracts used by the neutral fact-finder
base |
14 |
| prices for future years on one or more indices, the
neutral |
15 |
| fact-finder shall identify such indices in his or her
final |
16 |
| report, develop a weighting for each index, and
calculate a |
17 |
| weighted average index. The market values shall
be calculated |
18 |
| using the weighted average index when the actual
values of the |
19 |
| component indices are known.
|
20 |
| (h) The neutral fact-finder shall publish a final report
on |
21 |
| or before July 30 of each year, except that in 1999 the neutral |
22 |
| fact finder
shall publish the report on or before May 30, |
23 |
| setting forth the
calculated market values and stating the |
24 |
| basis for such
calculations. The final report shall not, |
25 |
| however, disclose any proprietary or
confidential data.
|
26 |
| (i) The market values calculated by the neutral fact-finder |
27 |
| shall not be
admissible in any proceeding for any
purpose other |
28 |
| than the calculation of transition charges or
calculation of |
29 |
| the price for the power purchase options
provided pursuant to |
30 |
| subsection (b) and (c) of Section 16-110.
|
31 |
| (j) The Commission shall have access to all contracts
|
32 |
| described in subsection (c) of this Section and shall perform
|
33 |
| such audits as it and the neutral fact-finder deem necessary
to |
34 |
| insure the accuracy of the summaries submitted to the
neutral |
|
|
|
09400HB3246ham001 |
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|
1 |
| fact-finder. The summaries described in subsection
(c) of this |
2 |
| Section and each contract shall be accorded
confidential and |
3 |
| proprietary treatment and their review shall
be subject to the |
4 |
| provisions of Sections 4-404 and 5-108 of
this Act, and the |
5 |
| contract between the Commission and the
neutral fact-finder |
6 |
| shall contain provisions obligating the
neutral fact-finder to |
7 |
| comply with such Sections. The
summaries shall not be |
8 |
| discoverable by any party in any
proceeding absent a compelling |
9 |
| demonstration of need.
|
10 |
| (k) In determining the market values to be used for the |
11 |
| various customer
classes in
calculating transition charges as |
12 |
| defined in Section 16-102 or for the power
purchase options set |
13 |
| forth in Section 16-110,
an electric utility shall
apply the |
14 |
| market values that are determined as set forth in
subsection |
15 |
| (a) to the electric power and energy that would have
been used |
16 |
| to serve the delivery services customers' electric
power and |
17 |
| energy requirements, based on the usage specified in
Section |
18 |
| 16-102 and taking into account the daily, monthly,
annual and |
19 |
| other relevant characteristics of the customers'
demands on the |
20 |
| electric utility's system.
|
21 |
| (l) In calculating a lump sum transition charge payment
for |
22 |
| the purposes of subsection (h) of Section 16-108, the
electric |
23 |
| utility shall use the market values that were
determined as |
24 |
| provided in its tariff, or if such market values
have not been |
25 |
| determined for the full period of time covered
by such lump sum |
26 |
| calculation, such other basis as is stated in
the electric |
27 |
| utility's tariff filed pursuant to Section 16-108.
|
28 |
| (m) The Commission may approve or reject, or propose
|
29 |
| modifications to, any tariff providing for the determination
of |
30 |
| market value that has been proposed by an electric utility
|
31 |
| pursuant to subsection (a) of this Section, but shall not have
|
32 |
| the power to otherwise order the electric utility to implement
|
33 |
| a modified tariff or to place into effect any tariff for the
|
34 |
| determination of market value other than one incorporating the
|
|
|
|
09400HB3246ham001 |
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|
|
1 |
| neutral fact-finder procedure set forth in this Section.
|
2 |
| Provided, however, that if each electric utility serving at
|
3 |
| least 300,000 customers has placed into effect a tariff that
|
4 |
| provides for a determination of market value as a function of
|
5 |
| an exchange traded or other market traded index, options or
|
6 |
| futures contract or contracts, then the Commission can require
|
7 |
| any other electric utilities to file such a tariff, and can
|
8 |
| terminate the neutral fact-finder procedure for the periods
|
9 |
| covered by such tariffs.
|
10 |
| (n) To the extent that the summaries list a sufficient
|
11 |
| number of actual contracts to represent a viable market and
|
12 |
| market values can be determined for more than one year, the
|
13 |
| electric utility shall offer customers that are obligated to
|
14 |
| pay transition charges contracts that establish for one or
more |
15 |
| years, up to a maximum of the lesser of 5 years or the |
16 |
| remaining number of
years until December 31, 2010
2008 , the |
17 |
| market value or
values to be used in calculating the customer's |
18 |
| transition
charges in such years
and for which market value
|
19 |
| determinations have been made. The electric utility may
require |
20 |
| any customer to give up to one year notice prior to
entering |
21 |
| into a one or 2 year contract pursuant to this
subsection, up |
22 |
| to 2 years notice for a 3 year contract, and up
to 3 years |
23 |
| notice for a 4 or 5 year contract. Contracts of
one or 2 years |
24 |
| duration shall incorporate the market values
that were |
25 |
| determined as provided in this Section in the year
in which the |
26 |
| notice is required to be given. Contracts of
more than 2 years |
27 |
| duration shall incorporate the market values
that are |
28 |
| determined in the year prior to the first year in
which the |
29 |
| electric utility will collect transition charges
from the |
30 |
| customer under the contract. The electric utility
shall also |
31 |
| allow customers to select, at the time that a
customer gives |
32 |
| its notice, an option to revoke the notice
within 30 days |
33 |
| following the determination of the market
values that will |
34 |
| apply under the contract requested by the
customer, and may |
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
|
|
1 |
| charge customers a fee for such option that
is set forth in a |
2 |
| tariff filed pursuant to Article IX and that
is adequate to |
3 |
| allow the electric utility to recover its
transactional costs |
4 |
| and compensate it based on the cost that
would be incurred to |
5 |
| purchase an option to cover the risk
associated with the |
6 |
| customer's option to revoke. The electric
utility shall not be |
7 |
| required to offer customers a contract
under this paragraph for |
8 |
| any year for which no determination
of market value has been |
9 |
| made either by the neutral fact-finder or pursuant to
a tariff |
10 |
| filed by the electric utility.
|
11 |
| (o) An electric utility shall have no obligation to
provide |
12 |
| electric power or energy as a tariffed service for the
electric |
13 |
| power and energy requirements placed on delivery
service by any |
14 |
| customer that has entered into a contract
pursuant to |
15 |
| subsection (n) of this Section and has not
purchased and |
16 |
| exercised an option to revoke, during the term
of the contract. |
17 |
| A customer that has purchased and exercised
an option to revoke |
18 |
| under this subsection shall remain
eligible to receive any |
19 |
| tariffed service for which it would
otherwise be eligible.
|
20 |
| (Source: P.A. 90-561, eff. 12-16-97.)
|
21 |
| (220 ILCS 5/16-120)
|
22 |
| Sec. 16-120. Development of competitive market; Commission |
23 |
| study and
reports; investigation.
|
24 |
| (a) On or before December 31, 1999 and once every 3
years |
25 |
| thereafter, the Commission shall monitor and analyze
patterns |
26 |
| of entry and exit, applications for entry and exit,
and any |
27 |
| barriers to entry or participation that may exist, for
services |
28 |
| provided under this Article; shall analyze any
impediments to |
29 |
| the establishment of a fully competitive energy
and power |
30 |
| market in Illinois; and shall include its findings
together |
31 |
| with appropriate recommendations for legislative
action in a |
32 |
| report to the General Assembly.
|
33 |
| (b) Beginning in 2001, and ending in 2008
2006 , the |
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
|
|
1 |
| Commission shall prepare an
annual report regarding the |
2 |
| development of electricity markets in Illinois
which shall be |
3 |
| filed by April 1 of each year with the Joint Committee on
|
4 |
| Legislative Support Services of the General Assembly and the |
5 |
| Governor and which
shall be publicly available. Such report |
6 |
| shall include, at a minimum, the
following information:
|
7 |
| (1) the aggregate annual peak demand of retail |
8 |
| customers in the State of
Illinois in the preceding |
9 |
| calendar year;
|
10 |
| (2) the total annual kilowatt-hours delivered and sold |
11 |
| to retail customers
in the State
of Illinois by each |
12 |
| electric utility within its own service territory, each
|
13 |
| electric utility outside its service territory, and |
14 |
| alternative retail electric
suppliers in the preceding |
15 |
| calendar year;
|
16 |
| (3) the percentage of the total kilowatt-hours |
17 |
| delivered and sold to
retail customers in
the State of |
18 |
| Illinois in the preceding calendar year by each electric |
19 |
| utility
within its service territory, each electric |
20 |
| utility outside its service
territory,
and each |
21 |
| alternative retail electric supplier; and
|
22 |
| (4) any other information the Commission considers |
23 |
| significant in
assessing the development of Illinois |
24 |
| electricity markets, which may include,
to the extent |
25 |
| available, information similar to that described in items |
26 |
| 1, 2
and 3 with respect to cogeneration, self-generation |
27 |
| and other sources of
electric power and energy provided to |
28 |
| customers that do not take delivery
services or bundled |
29 |
| electric utility services.
|
30 |
| The Commission may also include such other information as |
31 |
| it deems to be
necessary or beneficial in describing or |
32 |
| explaining the results of its Report.
The Report required by |
33 |
| this Section shall be adopted by a vote of the full
Commission |
34 |
| prior to filing. Proprietary or confidential information shall |
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
|
|
1 |
| not
be disclosed publicly. Nothing contained in this Section |
2 |
| shall prohibit the
Commission from taking actions that would |
3 |
| otherwise be allowed under this
Act.
|
4 |
| (c) The Commission shall prepare a report on the value of |
5 |
| municipal
aggregation of electricity customers. The report |
6 |
| shall be filed with the
General Assembly and the Governor no |
7 |
| later than January 15, 2003 and shall be
publicly available. |
8 |
| The report shall, at a minimum, include:
|
9 |
| (1) a description and analysis of actual and potential |
10 |
| forms of
aggregation of electricity customers in Illinois |
11 |
| and in the other states,
including aggregation through |
12 |
| municipal, affinity, and other
organizations and through |
13 |
| aggregation of
consumer purchases of electricity from |
14 |
| renewable energy sources;
|
15 |
| (2) estimates of the potential benefits of municipal |
16 |
| aggregation to
Illinois electricity customers in at least 5 |
17 |
| specific municipal examples
comparing their costs under |
18 |
| bundled rates and unbundled rates, including
real-time |
19 |
| prices;
|
20 |
| (3) a description of the barriers to municipal and |
21 |
| other forms of
aggregation in Illinois, including legal, |
22 |
| economic, informational, and other
barriers; and
|
23 |
| (4) options for legislative action to foster municipal |
24 |
| and other forms of
aggregation of electricity customers.
|
25 |
| In preparing the report, the Commission shall consult with |
26 |
| persons involved
in aggregation or the study of aggregation of |
27 |
| electricity customers in
Illinois, including municipalities, |
28 |
| utilities, aggregators, and non-profit
organizations. The
|
29 |
| provisions of Section 16-122 notwithstanding, the Commission |
30 |
| may request and
utilities shall provide such aggregated load |
31 |
| data as may be necessary to
perform the analyses required by |
32 |
| this subsection;
provided, however, proprietary or |
33 |
| confidential information shall not be
disclosed publicly.
|
34 |
| (Source: P.A. 92-585, eff. 6-26-02.)
|
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
|
|
1 |
| (220 ILCS 5/16-130)
|
2 |
| Sec. 16-130. Annual Reports. The General Assembly finds |
3 |
| that it is
necessary to have reliable and accurate information |
4 |
| regarding the transition to
a competitive electric industry. In |
5 |
| addition to the annual report requirements
pursuant to Section |
6 |
| 5-109 of this Act, each electric utility shall file with
the |
7 |
| Commission a report on
the following topics in accordance with |
8 |
| the schedule set forth in subsection
(b) of this Section:
|
9 |
| (1) Data on each customer class of the electric utility |
10 |
| in which delivery
services have been elected including:
|
11 |
| (A) number of retail customers in each class that |
12 |
| have elected delivery
service;
|
13 |
| (B) kilowatt hours consumed by the customers |
14 |
| described in subparagraph
(A);
|
15 |
| (C) revenue loss experienced by the utility as a |
16 |
| result of customers
electing delivery services or |
17 |
| market-based prices as compared to continued
service |
18 |
| under otherwise applicable tariffed rates;
|
19 |
| (D) total amount of funds collected from each |
20 |
| customer class pursuant to
the transition charges |
21 |
| authorized in Section 16-108;
|
22 |
| (E) Such other information as the Commission may by |
23 |
| rule require.
|
24 |
| (2) A description of any steps taken by the electric |
25 |
| utility to mitigate
and reduce its costs, including both a |
26 |
| detailed description of steps taken
during the preceding |
27 |
| calendar year and a summary of steps taken since the
|
28 |
| effective date of this amendatory Act of 1997, and |
29 |
| including, to the extent
practicable, quantification of |
30 |
| the costs mitigated or reduced by specific
actions taken by |
31 |
| the electric utility.
|
32 |
| (3) A description of actions taken under Sections |
33 |
| 5-104,
7-204, 9-220, and 16-111 of this Act. This |
|
|
|
09400HB3246ham001 |
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LRB094 09569 MKM 44867 a |
|
|
1 |
| information shall include but not
be limited to:
|
2 |
| (A) a description of the actions taken;
|
3 |
| (B) the effective date of the action;
|
4 |
| (C) the annual savings or additional charges |
5 |
| realized by customers from
actions taken, by customer |
6 |
| class and total for each year;
|
7 |
| (D) the accumulated impact on customers by |
8 |
| customer class and total; and
|
9 |
| (E) a summary of the method used to quantify the |
10 |
| impact on customers.
|
11 |
| (4) A summary of the electric utility's use of |
12 |
| transitional funding
instruments, including a description |
13 |
| of the electric utility's use of the
proceeds of any |
14 |
| transitional funding instruments it has issued in |
15 |
| accordance
with Article XVIII of this Act.
|
16 |
| (5) Kilowatt-hours consumed in the twelve months |
17 |
| ending December 31, 1996
(which kilowatt-hours are hereby |
18 |
| referred to as "base year sales") by customer
class |
19 |
| multiplied by the revenue per kilowatt hour, adjusted to |
20 |
| remove charges
added to customers' bills pursuant to |
21 |
| Sections 9-221 and 9-222 of this Act,
during the twelve |
22 |
| months ending December 31, 1996, adjusted for the |
23 |
| reductions
required by subsection (b) of Section 16-111 and |
24 |
| the mitigation factors
contained in Section 16-102. This |
25 |
| amount shall be stated for: (i) each
calendar year |
26 |
| preceding the year in which a report is required to be |
27 |
| submitted
pursuant to subsection (b); and (ii) as a |
28 |
| cumulative total of all calendar
years beginning with 1998 |
29 |
| and ending with the calendar year preceding the year
in |
30 |
| which a report is required to be submitted pursuant to |
31 |
| subsection (b).
|
32 |
| (6) Calculations identical to those required by |
33 |
| subparagraph (5) except
that base year sales shall be |
34 |
| adjusted for growth in the electric utility's
service |
|
|
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|
1 |
| territory, in addition to the other adjustments specified |
2 |
| by the first
sentence of subparagraph (5).
|
3 |
| (7) The electric utility's total revenue and net income |
4 |
| for each calendar
year beginning with 1997 through the |
5 |
| calendar year preceding the year in which
a report is |
6 |
| required to be submitted pursuant to subsection (b) as |
7 |
| reported in
the electric utility's Form 1 report to the |
8 |
| Federal Energy Regulatory
Commission.
|
9 |
| (8) Any consideration in excess of the net book cost as |
10 |
| of the effective
date of this amendatory Act of 1997 |
11 |
| received by the electric utility during the
year from a |
12 |
| sale made subsequent to the effective date of this |
13 |
| amendatory Act
of 1997 to a non-affiliated third party of |
14 |
| any generating plant that was owned
by the electric utility |
15 |
| on the effective date of this amendatory Act of 1997.
|
16 |
| (9) Any consideration received by the electric utility |
17 |
| from sales or
transfers during the year to an affiliated |
18 |
| interest of generating plant, or
other plant that |
19 |
| represents an investment of $25,000,000 or more in terms of
|
20 |
| total
depreciated original cost, which generating or other |
21 |
| plant were owned by the
electric utility prior to the |
22 |
| effective date of this amendatory Act of 1997.
|
23 |
| (10) Any consideration received by an affiliated |
24 |
| interest of an electric
utility from sales or transfers |
25 |
| during the year to a non-affiliated third party
of |
26 |
| generating plant, but only if: (i) the electric utility had |
27 |
| previously sold
or transferred such plant to the affiliated |
28 |
| interest subsequent to the
effective date of this |
29 |
| amendatory Act of 1997; (ii) the affiliated interest
sells |
30 |
| or transfers such plant to a non-affiliated third party |
31 |
| prior to
December 31, 2008
2006 ; and (iii) the affiliated |
32 |
| interest
receives consideration for the sale or transfer of |
33 |
| such plant to the
non-affiliated third party in an amount |
34 |
| greater than the cost or price at which
such plant was sold |
|
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| or transferred to the affiliated interest by the electric
|
2 |
| utility.
|
3 |
| (11) A summary account of those expenditures made for |
4 |
| projects,
programs,
and improvements relating to |
5 |
| transmission and distribution including, without
|
6 |
| limitation, infrastructure expansion, repair and |
7 |
| replacement, capital
investments, operations and |
8 |
| maintenance, and vegetation management, pursuant
to a |
9 |
| written commitment made under subsection (k) of Section |
10 |
| 16-111.
|
11 |
| (b) The information required by subsection (a) shall be |
12 |
| filed by each
electric utility on or before March 1 of each |
13 |
| year 1999 through 2009
2007 or through
such additional years as |
14 |
| the electric utility is collecting transition charges
pursuant |
15 |
| to subsection (f) of Section 16-108, for the previous calendar |
16 |
| year.
The information required by subparagraph (6) of |
17 |
| subsection (a) for calendar
year 1997 shall be submitted by the |
18 |
| electric utility on or before March 1,
1999.
|
19 |
| (c) On or before May 15 of each year 1999 through 2008
2006
|
20 |
| or through such
additional
years as
the electric utility is |
21 |
| collecting transition charges pursuant to subsection
(f) of |
22 |
| Section 16-108, the Commission shall submit
a report to the |
23 |
| General Assembly which summarizes the information provided by
|
24 |
| each electric utility under this Section; provided, however, |
25 |
| that proprietary
or confidential information shall not be |
26 |
| publicly disclosed.
|
27 |
| (Source: P.A. 90-561, eff. 12-16-97; 91-50, eff. 6-30-99.)
|
28 |
| Section 99. Effective date. This Act takes effect upon |
29 |
| becoming law.".
|