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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Public Utilities Act is amended by changing | |||||||||||||||||||||||
5 | Sections 16-101A, 16-102, and 16-107 as follows:
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6 | (220 ILCS 5/16-101A)
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7 | Sec. 16-101A. Legislative findings.
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8 | (a) The citizens and businesses of the State of Illinois
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9 | have been well-served by a comprehensive electrical utility
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10 | system which has provided safe, reliable, and affordable
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11 | service. The electrical utility system in the State of
Illinois | |||||||||||||||||||||||
12 | has historically been subject to State and federal
regulation, | |||||||||||||||||||||||
13 | aimed at assuring the citizens and businesses of
the State of | |||||||||||||||||||||||
14 | safe, reliable, and affordable service, while at
the same time | |||||||||||||||||||||||
15 | assuring the utility system of a return on its
investment.
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16 | (b) Competitive forces are affecting the market for
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17 | electricity as a result of recent federal regulatory and
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18 | statutory changes and the activities of other states.
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19 | Competition in the electric services market may create
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20 | opportunities for new products and services for customers and
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21 | lower costs for users of electricity. Long-standing regulatory
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22 | relationships need to be altered to accommodate the
competition | |||||||||||||||||||||||
23 | that could fundamentally alter the structure of
the electric | |||||||||||||||||||||||
24 | services market.
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25 | (c) With the advent of increasing competition in this
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26 | industry, the State has a continued interest in assuring that
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27 | the safety, reliability, and affordability of electrical power
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28 | is not sacrificed to competitive pressures, and to that end,
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29 | intends to implement safeguards to assure that the industry
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30 | continues to operate the electrical system in a manner that
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31 | will serve the public's interest. Under the existing
regulatory | |||||||||||||||||||||||
32 | framework, the industry has been encouraged to
undertake |
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| |||||||
1 | certain investments in its physical plant and
personnel to | ||||||
2 | enhance its efficient operation, the cost of
which it has been | ||||||
3 | permitted to pass on to consumers. The
State has an interest in | ||||||
4 | providing the existing utilities a
reasonable opportunity to | ||||||
5 | obtain a return on certain
investments on which they depended | ||||||
6 | in undertaking those
commitments in the first instance while, | ||||||
7 | at the same time, not
permitting new entrants into the industry | ||||||
8 | to take unreasonable
advantage of the investments made by the | ||||||
9 | formerly regulated
industry.
| ||||||
10 | (d) A competitive wholesale and retail market must
benefit | ||||||
11 | all Illinois citizens. The Illinois Commerce
Commission should | ||||||
12 | act to promote the development of an
effectively competitive | ||||||
13 | electricity market that operates
efficiently and is equitable | ||||||
14 | to all consumers. Consumer
protections must be in place to | ||||||
15 | ensure that all customers
continue to receive safe, reliable, | ||||||
16 | affordable, and
environmentally safe electric service.
| ||||||
17 | (e) All consumers must benefit in an equitable and timely
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18 | fashion from the lower costs for electricity that result from
| ||||||
19 | retail and wholesale competition and receive sufficient
| ||||||
20 | information to make informed choices among suppliers and
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21 | services. The use of renewable resources and energy efficiency
| ||||||
22 | resources should be encouraged in competitive markets.
| ||||||
23 | (f) The efficiency of electric markets depends both upon | ||||||
24 | the competitiveness of supply and upon the | ||||||
25 | price-responsiveness of the demand for service. Therefore, to | ||||||
26 | ensure the lowest total cost of service and to enhance the | ||||||
27 | reliability of service, all classes of the electricity | ||||||
28 | customers of electric utilities should have access to and be | ||||||
29 | able to voluntarily use real-time pricing and other price-and | ||||||
30 | demand-response mechanisms.
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31 | (Source: P.A. 90-561, eff. 12-16-97.)
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32 | (220 ILCS 5/16-102)
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33 | Sec. 16-102. Definitions. For the purposes of this
Article | ||||||
34 | the following terms shall be defined as set forth in
this | ||||||
35 | Section.
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1 | "Alternative retail electric supplier" means every
person, | ||||||
2 | cooperative, corporation, municipal corporation,
company, | ||||||
3 | association, joint stock company or association,
firm, | ||||||
4 | partnership, individual, or other entity, their lessees,
| ||||||
5 | trustees, or receivers appointed by any court whatsoever, that
| ||||||
6 | offers electric power or energy for sale, lease or in exchange
| ||||||
7 | for other value received to one or more retail customers, or
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8 | that engages in the delivery or furnishing of electric power
or | ||||||
9 | energy to such retail customers, and shall include, without
| ||||||
10 | limitation, resellers, aggregators and power marketers, but
| ||||||
11 | shall not include (i) electric utilities (or any agent of the
| ||||||
12 | electric utility to the extent the electric utility provides
| ||||||
13 | tariffed services to retail customers through that agent),
(ii) | ||||||
14 | any electric cooperative or municipal system as defined
in | ||||||
15 | Section 17-100 to the extent that the electric cooperative
or | ||||||
16 | municipal system is serving retail customers within any
area in | ||||||
17 | which it is or would be entitled to provide service
under the | ||||||
18 | law in effect immediately prior to the effective
date of this | ||||||
19 | amendatory Act of 1997, (iii) a public utility
that is owned | ||||||
20 | and operated by any public institution of higher
education of | ||||||
21 | this State, or a public utility that is owned by
such public | ||||||
22 | institution of higher education and operated by
any of its | ||||||
23 | lessees or operating agents, within any area in
which it is or | ||||||
24 | would be entitled to provide service under the
law in effect | ||||||
25 | immediately prior to the effective date of this
amendatory Act | ||||||
26 | of 1997, (iv) a retail customer to the extent
that customer | ||||||
27 | obtains its electric power and energy from that customer's
own | ||||||
28 | cogeneration or self-generation facilities, (v) an
entity that | ||||||
29 | owns, operates, sells, or arranges for the installation of
a | ||||||
30 | customer's own cogeneration or self-generation facilities, but | ||||||
31 | only to
the extent the entity is engaged in
owning,
selling or | ||||||
32 | arranging for the installation of such facility,
or operating | ||||||
33 | the facility
on behalf of such customer, provided however that | ||||||
34 | any such
third party owner or operator of a facility built | ||||||
35 | after
January 1, 1999, complies with the labor provisions of | ||||||
36 | Section 16-128(a) as
though
such third party were an |
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1 | alternative retail
electric supplier,
or (vi) an industrial or
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2 | manufacturing customer that owns
its own
distribution | ||||||
3 | facilities, to the extent that the customer provides service | ||||||
4 | from
that distribution system to a third-party contractor | ||||||
5 | located on the customer's
premises that is integrally and | ||||||
6 | predominantly engaged in the customer's
industrial or
| ||||||
7 | manufacturing process; provided, that if the industrial or | ||||||
8 | manufacturing
customer has elected delivery services, the | ||||||
9 | customer shall pay transition
charges applicable to the | ||||||
10 | electric power and energy consumed by the third-party
| ||||||
11 | contractor unless such charges are otherwise paid by the third | ||||||
12 | party
contractor, which shall be calculated based on the usage | ||||||
13 | of, and the base rates
or the contract rates applicable to, the | ||||||
14 | third-party contractor in accordance
with Section 16-102.
| ||||||
15 | "Base rates" means the rates for those tariffed services | ||||||
16 | that the electric
utility is required to offer pursuant to | ||||||
17 | subsection (a) of Section 16-103 and
that were identified in a | ||||||
18 | rate order for collection of the electric
utility's base rate | ||||||
19 | revenue requirement, excluding (i) separate automatic
rate | ||||||
20 | adjustment riders then in effect, (ii) special or negotiated | ||||||
21 | contract
rates, (iii) delivery services tariffs filed pursuant | ||||||
22 | to Section 16-108, (iv)
real-time pricing, or (v) tariffs that | ||||||
23 | were in effect prior to October 1, 1996
and that based charges | ||||||
24 | for services on an index or average of other utilities'
| ||||||
25 | charges, but including (vi) any subsequent redesign of such | ||||||
26 | rates for
tariffed
services that is authorized by the | ||||||
27 | Commission after notice and hearing.
| ||||||
28 | "Competitive service" includes (i) any service that
has | ||||||
29 | been declared to be competitive pursuant to Section
16-113 of | ||||||
30 | this Act, (ii) contract service, and (iii) services,
other than | ||||||
31 | tariffed services, that are related to, but not
necessary for, | ||||||
32 | the provision of electric power and energy or delivery | ||||||
33 | services.
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34 | "Contract service" means (1) services, including the
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35 | provision of electric power and energy or other services, that
| ||||||
36 | are provided by mutual agreement between an electric utility
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1 | and a retail customer that is located in the electric
utility's | ||||||
2 | service area, provided that, delivery services shall
not be a | ||||||
3 | contract service until such services are declared
competitive | ||||||
4 | pursuant to Section 16-113; and also means (2) the
provision of | ||||||
5 | electric power and energy by an electric utility
to retail | ||||||
6 | customers outside the electric utility's service
area pursuant | ||||||
7 | to Section 16-116. Provided, however, contract
service does not | ||||||
8 | include electric utility services provided
pursuant to (i) | ||||||
9 | contracts that retail customers are required
to execute as a | ||||||
10 | condition of receiving tariffed services, or
(ii) special or | ||||||
11 | negotiated rate contracts for electric utility
services that | ||||||
12 | were entered into between an electric utility
and a retail | ||||||
13 | customer prior to the effective date of this
amendatory Act of | ||||||
14 | 1997 and filed with the Commission.
| ||||||
15 | "Delivery services" means those services provided by the
| ||||||
16 | electric utility that are necessary in order for the
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17 | transmission and distribution systems to function so that
| ||||||
18 | retail customers located in the electric utility's service
area | ||||||
19 | can receive electric power and energy from suppliers
other than | ||||||
20 | the electric utility, and shall include, without
limitation, | ||||||
21 | standard metering and billing services.
| ||||||
22 | "Electric utility" means a public utility, as defined in
| ||||||
23 | Section 3-105 of this Act, that has a franchise, license,
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24 | permit or right to furnish or sell electricity to retail
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25 | customers within a service area.
| ||||||
26 | "Mandatory transition period" means the period from the
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27 | effective date of this amendatory Act of 1997 through January
| ||||||
28 | 1, 2007.
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29 | "Municipal system" shall have the meaning set forth in
| ||||||
30 | Section 17-100.
| ||||||
31 | "Real-time pricing" means tariffed retail charges for | ||||||
32 | delivered electric
power and energy that vary on an
| ||||||
33 | hour-to-hour and are determined from prices posted by the | ||||||
34 | Independent System Operator or by a comparable methodology | ||||||
35 | approved by the Illinois Commerce Commission
basis for
| ||||||
36 | nonresidential retail customers and that vary on a periodic
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| |||||||
1 | basis during the day for residential retail customers .
| ||||||
2 | "Retail customer" means a single entity using electric
| ||||||
3 | power or energy at a single premises and that (A) either (i)
is | ||||||
4 | receiving or is eligible to receive tariffed services from
an | ||||||
5 | electric utility, or (ii) that is served by a municipal system | ||||||
6 | or electric
cooperative within any area in which the
municipal | ||||||
7 | system or electric cooperative is or would be
entitled to | ||||||
8 | provide service under the law in effect
immediately prior to | ||||||
9 | the effective date of this amendatory Act
of 1997, or (B) an | ||||||
10 | entity which on the effective date of this
Act was receiving | ||||||
11 | electric service from a public utility and
(i) was engaged in | ||||||
12 | the practice of resale and redistribution
of such electricity | ||||||
13 | within a building prior to January 2,
1957, or (ii) was | ||||||
14 | providing lighting services to tenants in a
multi-occupancy | ||||||
15 | building, but only to the extent such resale,
redistribution or | ||||||
16 | lighting service is authorized by the
electric utility's | ||||||
17 | tariffs that were on file with the
Commission on the effective | ||||||
18 | date of this Act.
| ||||||
19 | "Service area" means (i) the geographic area within which
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20 | an electric utility was lawfully entitled to provide electric
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21 | power and energy to retail customers as of the effective date
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22 | of this amendatory Act of 1997, and includes (ii) the location
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23 | of any retail customer to which the electric utility was
| ||||||
24 | lawfully providing electric utility services on such effective
| ||||||
25 | date.
| ||||||
26 | "Small commercial retail customer" means those
| ||||||
27 | nonresidential retail customers of an electric utility
| ||||||
28 | consuming 15,000 kilowatt-hours or less of electricity
| ||||||
29 | annually in its service area.
| ||||||
30 | "Tariffed service" means services provided to retail
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31 | customers by an electric utility as defined by its rates on
| ||||||
32 | file with the Commission pursuant to the provisions of Article
| ||||||
33 | IX of this Act, but shall not include competitive services.
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34 | "Transition charge" means a charge expressed in cents
per | ||||||
35 | kilowatt-hour that is calculated for a customer or class
of | ||||||
36 | customers as follows for each year in which an electric
utility |
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| |||||||
1 | is entitled to recover transition charges as provided
in | ||||||
2 | Section 16-108:
| ||||||
3 | (1) the amount of revenue that an electric utility
| ||||||
4 | would receive from the retail customer or customers if it
| ||||||
5 | were serving such customers' electric power and energy
| ||||||
6 | requirements as a tariffed service based on (A) all of
the | ||||||
7 | customers' actual usage during the 3 years
ending 90 days | ||||||
8 | prior to the date on which such customers
were first | ||||||
9 | eligible for delivery services pursuant to
Section 16-104, | ||||||
10 | and (B) on (i) the base rates in effect
on October 1, 1996 | ||||||
11 | (adjusted for the reductions required
by subsection (b) of | ||||||
12 | Section 16-111, for any reduction resulting from a rate
| ||||||
13 | decrease under Section 16-101(b), for any restatement of | ||||||
14 | base rates made in
conjunction with an elimination
of the | ||||||
15 | fuel adjustment clause pursuant to subsection (b), (d), or | ||||||
16 | (f) of
Section
9-220
and for any removal of decommissioning | ||||||
17 | costs from base
rates pursuant to Section 16-114)
and any | ||||||
18 | separate automatic rate adjustment riders (other
than a | ||||||
19 | decommissioning rate as defined in Section 16-114)
under | ||||||
20 | which the customers were receiving or, had they
been | ||||||
21 | customers, would have received electric power and
energy | ||||||
22 | from the electric utility during the year
immediately | ||||||
23 | preceding the date on which such customers
were first | ||||||
24 | eligible for delivery service pursuant to
Section 16-104, | ||||||
25 | or (ii) to the extent applicable, any
contract rates, | ||||||
26 | including contracts or rates for consolidated or
| ||||||
27 | aggregated billing, under which such customers were
| ||||||
28 | receiving electric power and energy from the electric
| ||||||
29 | utility during such year;
| ||||||
30 | (2) less the amount of revenue, other than revenue
from | ||||||
31 | transition charges and decommissioning rates, that the | ||||||
32 | electric utility
would
receive from such retail customers | ||||||
33 | for delivery services
provided by the electric utility, | ||||||
34 | assuming such customers
were taking delivery services for | ||||||
35 | all of their usage,
based on the delivery services tariffs | ||||||
36 | in effect during
the year for which the transition charge |
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| |||||||
1 | is being
calculated and on the usage identified in | ||||||
2 | paragraph (1);
| ||||||
3 | (3) less the market value for the electric power
and | ||||||
4 | energy that the electric utility would have used to
supply | ||||||
5 | all of such customers' electric power and energy
| ||||||
6 | requirements, as a tariffed service, based on the usage
| ||||||
7 | identified in paragraph (1), with such market value
| ||||||
8 | determined in accordance with Section 16-112 of this Act;
| ||||||
9 | (4) less the following amount which represents the
| ||||||
10 | amount to be attributed to new revenue sources and cost
| ||||||
11 | reductions by the electric utility through the end of the
| ||||||
12 | period for which transition costs are recovered pursuant
to | ||||||
13 | Section 16-108, referred to in this Article XVI as a | ||||||
14 | "mitigation factor":
| ||||||
15 | (A) for nonresidential retail customers, an amount | ||||||
16 | equal to the greater
of (i) 0.5 cents per kilowatt-hour | ||||||
17 | during the period October 1, 1999
through December 31, | ||||||
18 | 2004, 0.6 cents per kilowatt-hour in calendar year | ||||||
19 | 2005,
and 0.9 cents per kilowatt-hour in calendar year | ||||||
20 | 2006, multiplied in
each year by the usage identified | ||||||
21 | in paragraph (1), or (ii) an amount equal to
the | ||||||
22 | following percentages of the amount produced by | ||||||
23 | applying the applicable
base rates (adjusted as | ||||||
24 | described in subparagraph (1)(B)) or contract rate to
| ||||||
25 | the usage identified in paragraph (1): 8% for the | ||||||
26 | period October 1, 1999
through December 31, 2002, 10% | ||||||
27 | in calendar years 2003 and 2004, 11% in calendar
year | ||||||
28 | 2005 and 12% in calendar year 2006;
and
| ||||||
29 | (B) for residential retail customers, an amount
| ||||||
30 | equal to the following percentages of the amount | ||||||
31 | produced by applying the
base rates in effect on | ||||||
32 | October 1, 1996 (adjusted as
described in subparagraph | ||||||
33 | (1)(B)) to the usage
identified in paragraph (1): (i) | ||||||
34 | 6% from May 1, 2002 through December 31,
2002, (ii) 7% | ||||||
35 | in calendar years 2003 and 2004, (iii) 8% in calendar | ||||||
36 | year
2005, and (iv) 10% in calendar year 2006;
|
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| |||||||
1 | (5) divided by the usage of such customers
identified | ||||||
2 | in paragraph (1),
| ||||||
3 | provided that the transition charge shall never be less than
| ||||||
4 | zero.
| ||||||
5 | "Unbundled service" means a component or constituent part
| ||||||
6 | of a tariffed service which the electric utility subsequently
| ||||||
7 | offers separately to its customers.
| ||||||
8 | (Source: P.A. 91-50, eff. 6-30-99; 92-537, eff. 6-6-02.)
| ||||||
9 | (220 ILCS 5/16-107)
| ||||||
10 | Sec. 16-107. Real-time pricing.
| ||||||
11 | (a) Each electric utility shall file, on or before May 1,
| ||||||
12 | 1998, a tariff or tariffs which allow nonresidential retail
| ||||||
13 | customers in the electric utility's service area to elect
| ||||||
14 | real-time pricing beginning October 1, 1998.
| ||||||
15 | (b) Each electric utility shall file, on or before May 1,
| ||||||
16 | 2000, a tariff or tariffs which allow residential retail
| ||||||
17 | customers in the electric utility's service area to elect
| ||||||
18 | real-time pricing beginning October 1, 2000.
| ||||||
19 | (b-5) Each electric utility shall file, on or before | ||||||
20 | February 1, 2006, a tariff or tariffs which allow residential | ||||||
21 | retail customers in the electric utility's service area to | ||||||
22 | elect real-time pricing beginning January 1, 2007. | ||||||
23 | The tariff or tariffs filed pursuant to this subsection | ||||||
24 | shall describe: (i) the methodology for determining the market | ||||||
25 | price of energy to be reflected in the real-time rate; (ii) | ||||||
26 | cost-based distribution and transmission charges that are no | ||||||
27 | greater than the charges made to other residential customers; | ||||||
28 | (iii) a customer charge no greater than that charged to other | ||||||
29 | residential customers; and (iv) an information system that | ||||||
30 | provides customers ready access to hourly market prices, | ||||||
31 | including, but not limited
to, day-ahead hourly energy prices, | ||||||
32 | price change notification, and other information and technical | ||||||
33 | assistance necessary to enable customers to manage electricity | ||||||
34 | use. | ||||||
35 | Each electric utility providing real-time pricing shall |
| |||||||
| |||||||
1 | install a meter capable of recording hourly interval energy use | ||||||
2 | at the service location of each customer that elects real-time | ||||||
3 | pricing pursuant to this subsection and shall install such a | ||||||
4 | meter in all new service locations unless a watt-hour meter is | ||||||
5 | specifically requested by the customer. | ||||||
6 | The electric utility shall contract with and shall fully | ||||||
7 | and adequately compensate an Illinois nonprofit corporation in | ||||||
8 | accordance with this subsection to develop and implement a | ||||||
9 | program to provide consumer outreach, enrollment, and | ||||||
10 | education concerning real-time pricing and to establish and | ||||||
11 | administer an information system and technical and other | ||||||
12 | customer assistance that is necessary to enable customers to | ||||||
13 | manage electricity use. The Illinois nonprofit corporation: | ||||||
14 | (i) shall be selected and compensated by the electric utility, | ||||||
15 | subject to Commission approval; (ii) shall have demonstrated | ||||||
16 | technical and managerial competence in the development and | ||||||
17 | administration of demand management programs; and (iii) may | ||||||
18 | develop and implement risk management, energy efficiency, and | ||||||
19 | other services related to energy use management for which it | ||||||
20 | shall be compensated by participants in the program. The | ||||||
21 | electric utility shall provide the Illinois nonprofit | ||||||
22 | corporation with all information and assistance necessary to | ||||||
23 | perform its duties, including, but not limited to, customer, | ||||||
24 | account, and energy use data. The electric utility shall permit | ||||||
25 | the contractor to include inserts in residential customer bills | ||||||
26 | at least 2 times per year to assist with customer outreach and | ||||||
27 | enrollment. | ||||||
28 | The Illinois nonprofit corporation shall submit an annual | ||||||
29 | report to the electric utility no later than April 1 of each | ||||||
30 | year describing the operation and results of the program, | ||||||
31 | including information concerning the number and types of | ||||||
32 | customers using real-time pricing, changes in customers' | ||||||
33 | energy use patterns, an assessment of the value of the program | ||||||
34 | to both participants and non-participants, and recommendations | ||||||
35 | concerning modification of the program and the tariff or | ||||||
36 | tariffs filed under this subsection. This report shall be filed |
| |||||||
| |||||||
1 | by the electric utility with the Commission within 30 days of | ||||||
2 | receipt and shall be available to the public on the | ||||||
3 | Commission's web site. | ||||||
4 | The electric utility and the Illinois nonprofit | ||||||
5 | corporation shall each work to achieve the goal of enrolling at | ||||||
6 | least 3% of residential retail customers in real-time pricing | ||||||
7 | by the year 2010.
| ||||||
8 | The electric utility shall be entitled to recover | ||||||
9 | reasonable costs incurred by the electric utility in complying | ||||||
10 | with the requirements of this subsection by imposing a uniform | ||||||
11 | charge, included in its distribution charge, on all residential | ||||||
12 | customers in its service territory.
| ||||||
13 | (c) The electric utility's tariff or tariffs filed
pursuant | ||||||
14 | to this Section shall be subject to Article IX.
| ||||||
15 | (Source: P.A. 90-561, eff. 12-16-97.)
| ||||||
16 | Section 99. Effective date. This Act takes effect upon | ||||||
17 | becoming law.
|