Least Cost Power Procurement Committee
Filed: 3/22/2007
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1 | AMENDMENT TO HOUSE BILL 1510
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2 | AMENDMENT NO. ______. Amend House Bill 1510 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Public Utilities Act is amended by adding | ||||||
5 | Section 16-103A as follows: | ||||||
6 | (220 ILCS 5/16-103A new) | ||||||
7 | Sec. 16-103A. Provision of standard electric service after | ||||||
8 | the mandatory transition period. | ||||||
9 | (a) Beginning on the effective date of this amendatory Act | ||||||
10 | of the 95th General Assembly, residential and small commercial | ||||||
11 | customers shall be provided standard electric service. | ||||||
12 | Standard electric service shall consist of an electricity | ||||||
13 | supply service priced according to the policies adopted by this | ||||||
14 | Act.
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15 | (b) Any residential retail customer or small commercial | ||||||
16 | retail customer that is not otherwise being served by an |
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1 | alternative retail electric supplier shall be automatically | ||||||
2 | provided with standard electric service. Any residential | ||||||
3 | retail or small commercial retail customer served by an | ||||||
4 | alternative retail electric supplier shall have the option to | ||||||
5 | select standard electric service at any time.
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6 | (c) The terms and conditions for standard electric service | ||||||
7 | shall at a minimum reflect the consumer protection programs and | ||||||
8 | policies governing application for service, deposit rules, | ||||||
9 | billing, credit, and collection practices in Chapter 280 of the | ||||||
10 | Commission's rules.
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11 | (d) Each electric utility shall plan, procure, and provide | ||||||
12 | standard electric service pursuant to a procurement plan for | ||||||
13 | electric supply approved by the Commission after notice and | ||||||
14 | opportunity for public hearing.
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15 | (e) The price for standard electric service shall be based | ||||||
16 | on the underlying actual and incremental just and reasonable | ||||||
17 | costs incurred by the electric utility to plan, procure, and | ||||||
18 | provide this service. Standard electric service shall not be | ||||||
19 | structured or priced to stimulate or force the development of a | ||||||
20 | competitive retail market. Rather, this service shall operate | ||||||
21 | as a benchmark or price to compare against which alternative | ||||||
22 | retail electric suppliers may market their services.
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23 | (f) Standard electric service shall be billed and collected | ||||||
24 | by the electric utility in a bill format that identifies the | ||||||
25 | unbundled price for standard electric service, which format | ||||||
26 | shall by approved by the Commission.
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1 | (g) Within 30 days of the effective date of this amendatory | ||||||
2 | Act of the 95th General Assembly, the Commission shall require | ||||||
3 | each electric utility to undertake the development of and | ||||||
4 | submit a procurement plan for standard electric service within | ||||||
5 | 6 months of the effective date of this amendatory Act of the | ||||||
6 | 95th General Assembly. The procurement plan shall reflect a | ||||||
7 | minimum 10-year planning and acquisition period. The | ||||||
8 | procurement plan shall be updated annually. Any Standard | ||||||
9 | Electric Service procurement plan shall comply with the | ||||||
10 | following requirements:
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11 | (1) The plan shall recommend a portfolio that is most | ||||||
12 | likely to provide the lowest total price with reasonable | ||||||
13 | price stability over the term of the plan so as to avoid | ||||||
14 | unusual, anomalous or excessive prices.
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15 | (2) The plan shall reflect a diversity of electric | ||||||
16 | supply and cost-effective demand reduction contracts and | ||||||
17 | services to be procured in an overlapping pattern of fixed | ||||||
18 | periods at such times and in such a manner that are likely | ||||||
19 | to produce just, reasonable, and reasonably stable prices | ||||||
20 | over the term of the plan.
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21 | (3) The electric utility shall systematically evaluate | ||||||
22 | and have the authority to propose short-term and long-term | ||||||
23 | contracts for the procurement of electric supply; own and | ||||||
24 | operate facilities for the generation of electric supply; | ||||||
25 | make investments in demand side resources; and take such | ||||||
26 | other actions as approved by the Commission to diversify |
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1 | the standard offer service portfolio and assure compliance | ||||||
2 | with the statutory goals and objectives for this service.
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3 | (4) The recommended portfolio shall minimize the | ||||||
4 | reliance on short term or spot market transactions | ||||||
5 | consistent with a reasonable assessment of risk with | ||||||
6 | respect to both price and generation supply availability | ||||||
7 | during the term of the plan.
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8 | (5) The plan shall contain a mechanism to rely on | ||||||
9 | annual price changes for standard electric service that | ||||||
10 | reflects the actual changes in price of the various | ||||||
11 | components of the entire portfolio and minimize, to the | ||||||
12 | extent reasonable, the need for reconciliation of costs | ||||||
13 | associated with price changes in the entire portfolio on an | ||||||
14 | annual basis.
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15 | (h) The electric utility may recover the actual and | ||||||
16 | incremental costs incurred to manage the standard electric | ||||||
17 | service portfolio. The electric utility may propose an | ||||||
18 | incentive mechanism that establishes a procurement benchmark | ||||||
19 | or benchmarks that relies upon quantifiable objectives and | ||||||
20 | standards, and that balances risks and rewards for the electric | ||||||
21 | utility in meeting the portfolio management goals and | ||||||
22 | objectives as set forth in the approved procurement plan.
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23 | (i) To the extent possible, the electric utility shall rely | ||||||
24 | on competitive methods of acquiring the products, contracts, | ||||||
25 | and resources that are identified in its procurement plan for | ||||||
26 | standard electric service. The Commission shall approve any |
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1 | proposed method or methods of competitive acquisition as part | ||||||
2 | of its review of the electric utility's proposed standard offer | ||||||
3 | service procurement plan.
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4 | (j) Standard electric service shall be available to | ||||||
5 | residential and small commercial customers at any time and | ||||||
6 | without the imposition of an additional fee or charge for | ||||||
7 | switching to the service. However, the Commission may adopt | ||||||
8 | minimum terms of service (not to exceed 12 months) or | ||||||
9 | additional fees for switching to alternative retail electric | ||||||
10 | suppliers if the Commission finds, after notice and opportunity | ||||||
11 | for public hearing and comment, that a significant number of | ||||||
12 | residential or small commercial customers have switched or are | ||||||
13 | likely to switch in the near future to alternative retail | ||||||
14 | electric suppliers or aggregators, thus increasing the risk | ||||||
15 | associated with the provision of standard electric service | ||||||
16 | under stable prices for the remaining customers. Any party that | ||||||
17 | proposes to impose minimum terms of service or switching fees | ||||||
18 | on residential or small commercial customers shall demonstrate | ||||||
19 | that switching activity by such customers has or is likely to | ||||||
20 | result in an increase in total costs for standard electric | ||||||
21 | service for that class of customers that exceeds 1% on an | ||||||
22 | annual basis. | ||||||
23 | (k) For purposes of this Section, "small commercial | ||||||
24 | customer" means a group of non-residential customers that are | ||||||
25 | being served by a public utility under a commercial rate and | ||||||
26 | schedule and that are not required to have a demand meter or |
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1 | reflect demand charges in their rate schedules.
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2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.".
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