99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB0861

 

Introduced 2/11/2015, by Sen. Chris Nybo

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/16-102
220 ILCS 5/16-108.8

    Amends the Public Utilities Act. Defines "distributed generation facility" to mean the equipment used by an interconnection customer to generate or store electricity that operates in parallel with the electric distribution system. A distributed generation facility typically includes an electric generator, a prime mover or energy storage, and the interconnection equipment required to safely interconnect with the electric distribution system or local electric power system. Provides that utilities may charge fees to users to recover the costs associated with the incremental direct costs only (previously any incremental costs) to the utility associated with administration of the smart grid test bed.


LRB099 04349 MLM 24376 b

 

 

A BILL FOR

 

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1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by changing
5Sections 16-102 and 16-108.8 as follows:
 
6    (220 ILCS 5/16-102)
7    Sec. 16-102. Definitions. For the purposes of this Article
8the following terms shall be defined as set forth in this
9Section.
10    "Alternative retail electric supplier" means every person,
11cooperative, corporation, municipal corporation, company,
12association, joint stock company or association, firm,
13partnership, individual, or other entity, their lessees,
14trustees, or receivers appointed by any court whatsoever, that
15offers electric power or energy for sale, lease or in exchange
16for other value received to one or more retail customers, or
17that engages in the delivery or furnishing of electric power or
18energy to such retail customers, and shall include, without
19limitation, resellers, aggregators and power marketers, but
20shall not include (i) electric utilities (or any agent of the
21electric utility to the extent the electric utility provides
22tariffed services to retail customers through that agent), (ii)
23any electric cooperative or municipal system as defined in

 

 

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1Section 17-100 to the extent that the electric cooperative or
2municipal system is serving retail customers within any area in
3which it is or would be entitled to provide service under the
4law in effect immediately prior to the effective date of this
5amendatory Act of 1997, (iii) a public utility that is owned
6and operated by any public institution of higher education of
7this State, or a public utility that is owned by such public
8institution of higher education and operated by any of its
9lessees or operating agents, within any area in which it is or
10would be entitled to provide service under the law in effect
11immediately prior to the effective date of this amendatory Act
12of 1997, (iv) a retail customer to the extent that customer
13obtains its electric power and energy from that customer's own
14cogeneration or self-generation facilities, (v) an entity that
15owns, operates, sells, or arranges for the installation of a
16customer's own cogeneration or self-generation facilities, but
17only to the extent the entity is engaged in owning, selling or
18arranging for the installation of such facility, or operating
19the facility on behalf of such customer, provided however that
20any such third party owner or operator of a facility built
21after January 1, 1999, complies with the labor provisions of
22Section 16-128(a) as though such third party were an
23alternative retail electric supplier, or (vi) an industrial or
24manufacturing customer that owns its own distribution
25facilities, to the extent that the customer provides service
26from that distribution system to a third-party contractor

 

 

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1located on the customer's premises that is integrally and
2predominantly engaged in the customer's industrial or
3manufacturing process; provided, that if the industrial or
4manufacturing customer has elected delivery services, the
5customer shall pay transition charges applicable to the
6electric power and energy consumed by the third-party
7contractor unless such charges are otherwise paid by the third
8party contractor, which shall be calculated based on the usage
9of, and the base rates or the contract rates applicable to, the
10third-party contractor in accordance with Section 16-102.
11    An entity that furnishes the service of charging electric
12vehicles does not and shall not be deemed to sell electricity
13and is not and shall not be deemed an alternative retail
14electric supplier, and is not subject to regulation as such
15under this Act notwithstanding the basis on which the service
16is provided or billed. If, however, the entity is otherwise
17deemed an alternative retail electric supplier under this Act,
18or is otherwise subject to regulation under this Act, then that
19entity is not exempt from and remains subject to the otherwise
20applicable provisions of this Act. The installation,
21maintenance, and repair of an electric vehicle charging station
22shall comply with the requirements of subsection (a) of Section
2316-128 and Section 16-128A of this Act.
24    For purposes of this Section, the term "electric vehicles"
25has the meaning ascribed to that term in Section 10 of the
26Electric Vehicle Act.

 

 

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1    "Base rates" means the rates for those tariffed services
2that the electric utility is required to offer pursuant to
3subsection (a) of Section 16-103 and that were identified in a
4rate order for collection of the electric utility's base rate
5revenue requirement, excluding (i) separate automatic rate
6adjustment riders then in effect, (ii) special or negotiated
7contract rates, (iii) delivery services tariffs filed pursuant
8to Section 16-108, (iv) real-time pricing, or (v) tariffs that
9were in effect prior to October 1, 1996 and that based charges
10for services on an index or average of other utilities'
11charges, but including (vi) any subsequent redesign of such
12rates for tariffed services that is authorized by the
13Commission after notice and hearing.
14    "Competitive service" includes (i) any service that has
15been declared to be competitive pursuant to Section 16-113 of
16this Act, (ii) contract service, and (iii) services, other than
17tariffed services, that are related to, but not necessary for,
18the provision of electric power and energy or delivery
19services.
20    "Contract service" means (1) services, including the
21provision of electric power and energy or other services, that
22are provided by mutual agreement between an electric utility
23and a retail customer that is located in the electric utility's
24service area, provided that, delivery services shall not be a
25contract service until such services are declared competitive
26pursuant to Section 16-113; and also means (2) the provision of

 

 

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1electric power and energy by an electric utility to retail
2customers outside the electric utility's service area pursuant
3to Section 16-116. Provided, however, contract service does not
4include electric utility services provided pursuant to (i)
5contracts that retail customers are required to execute as a
6condition of receiving tariffed services, or (ii) special or
7negotiated rate contracts for electric utility services that
8were entered into between an electric utility and a retail
9customer prior to the effective date of this amendatory Act of
101997 and filed with the Commission.
11    "Delivery services" means those services provided by the
12electric utility that are necessary in order for the
13transmission and distribution systems to function so that
14retail customers located in the electric utility's service area
15can receive electric power and energy from suppliers other than
16the electric utility, and shall include, without limitation,
17standard metering and billing services.
18    "Distributed generation facility" means the equipment used
19by an interconnection customer to generate or store electricity
20that operates in parallel with the electric distribution
21system. A distributed generation facility typically includes
22an electric generator, a prime mover or energy storage, and the
23interconnection equipment required to safely interconnect with
24the electric distribution system or local electric power
25system.
26    "Electric utility" means a public utility, as defined in

 

 

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1Section 3-105 of this Act, that has a franchise, license,
2permit or right to furnish or sell electricity to retail
3customers within a service area.
4    "Mandatory transition period" means the period from the
5effective date of this amendatory Act of 1997 through January
61, 2007.
7    "Municipal system" shall have the meaning set forth in
8Section 17-100.
9    "Real-time pricing" means tariffed retail charges for
10delivered electric power and energy that vary hour-to-hour and
11are determined from wholesale market prices using a methodology
12approved by the Illinois Commerce Commission.
13    "Retail customer" means a single entity using electric
14power or energy at a single premises and that (A) either (i) is
15receiving or is eligible to receive tariffed services from an
16electric utility, or (ii) that is served by a municipal system
17or electric cooperative within any area in which the municipal
18system or electric cooperative is or would be entitled to
19provide service under the law in effect immediately prior to
20the effective date of this amendatory Act of 1997, or (B) an
21entity which on the effective date of this Act was receiving
22electric service from a public utility and (i) was engaged in
23the practice of resale and redistribution of such electricity
24within a building prior to January 2, 1957, or (ii) was
25providing lighting services to tenants in a multi-occupancy
26building, but only to the extent such resale, redistribution or

 

 

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1lighting service is authorized by the electric utility's
2tariffs that were on file with the Commission on the effective
3date of this Act.
4    "Service area" means (i) the geographic area within which
5an electric utility was lawfully entitled to provide electric
6power and energy to retail customers as of the effective date
7of this amendatory Act of 1997, and includes (ii) the location
8of any retail customer to which the electric utility was
9lawfully providing electric utility services on such effective
10date.
11    "Small commercial retail customer" means those
12nonresidential retail customers of an electric utility
13consuming 15,000 kilowatt-hours or less of electricity
14annually in its service area.
15    "Tariffed service" means services provided to retail
16customers by an electric utility as defined by its rates on
17file with the Commission pursuant to the provisions of Article
18IX of this Act, but shall not include competitive services.
19    "Transition charge" means a charge expressed in cents per
20kilowatt-hour that is calculated for a customer or class of
21customers as follows for each year in which an electric utility
22is entitled to recover transition charges as provided in
23Section 16-108:
24        (1) the amount of revenue that an electric utility
25    would receive from the retail customer or customers if it
26    were serving such customers' electric power and energy

 

 

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1    requirements as a tariffed service based on (A) all of the
2    customers' actual usage during the 3 years ending 90 days
3    prior to the date on which such customers were first
4    eligible for delivery services pursuant to Section 16-104,
5    and (B) on (i) the base rates in effect on October 1, 1996
6    (adjusted for the reductions required by subsection (b) of
7    Section 16-111, for any reduction resulting from a rate
8    decrease under Section 16-101(b), for any restatement of
9    base rates made in conjunction with an elimination of the
10    fuel adjustment clause pursuant to subsection (b), (d), or
11    (f) of Section 9-220 and for any removal of decommissioning
12    costs from base rates pursuant to Section 16-114) and any
13    separate automatic rate adjustment riders (other than a
14    decommissioning rate as defined in Section 16-114) under
15    which the customers were receiving or, had they been
16    customers, would have received electric power and energy
17    from the electric utility during the year immediately
18    preceding the date on which such customers were first
19    eligible for delivery service pursuant to Section 16-104,
20    or (ii) to the extent applicable, any contract rates,
21    including contracts or rates for consolidated or
22    aggregated billing, under which such customers were
23    receiving electric power and energy from the electric
24    utility during such year;
25        (2) less the amount of revenue, other than revenue from
26    transition charges and decommissioning rates, that the

 

 

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1    electric utility would receive from such retail customers
2    for delivery services provided by the electric utility,
3    assuming such customers were taking delivery services for
4    all of their usage, based on the delivery services tariffs
5    in effect during the year for which the transition charge
6    is being calculated and on the usage identified in
7    paragraph (1);
8        (3) less the market value for the electric power and
9    energy that the electric utility would have used to supply
10    all of such customers' electric power and energy
11    requirements, as a tariffed service, based on the usage
12    identified in paragraph (1), with such market value
13    determined in accordance with Section 16-112 of this Act;
14        (4) less the following amount which represents the
15    amount to be attributed to new revenue sources and cost
16    reductions by the electric utility through the end of the
17    period for which transition costs are recovered pursuant to
18    Section 16-108, referred to in this Article XVI as a
19    "mitigation factor":
20            (A) for nonresidential retail customers, an amount
21        equal to the greater of (i) 0.5 cents per kilowatt-hour
22        during the period October 1, 1999 through December 31,
23        2004, 0.6 cents per kilowatt-hour in calendar year
24        2005, and 0.9 cents per kilowatt-hour in calendar year
25        2006, multiplied in each year by the usage identified
26        in paragraph (1), or (ii) an amount equal to the

 

 

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1        following percentages of the amount produced by
2        applying the applicable base rates (adjusted as
3        described in subparagraph (1)(B)) or contract rate to
4        the usage identified in paragraph (1): 8% for the
5        period October 1, 1999 through December 31, 2002, 10%
6        in calendar years 2003 and 2004, 11% in calendar year
7        2005 and 12% in calendar year 2006; and
8            (B) for residential retail customers, an amount
9        equal to the following percentages of the amount
10        produced by applying the base rates in effect on
11        October 1, 1996 (adjusted as described in subparagraph
12        (1)(B)) to the usage identified in paragraph (1): (i)
13        6% from May 1, 2002 through December 31, 2002, (ii) 7%
14        in calendar years 2003 and 2004, (iii) 8% in calendar
15        year 2005, and (iv) 10% in calendar year 2006;
16        (5) divided by the usage of such customers identified
17    in paragraph (1),
18provided that the transition charge shall never be less than
19zero.
20    "Unbundled service" means a component or constituent part
21of a tariffed service which the electric utility subsequently
22offers separately to its customers.
23(Source: P.A. 97-1128, eff. 8-28-12.)
 
24    (220 ILCS 5/16-108.8)
25    Sec. 16-108.8. Illinois Smart Grid test bed.

 

 

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1    (a) Within 180 days after the effective date of this
2amendatory Act of the 97th General Assembly, each participating
3utility, as defined by Section 16-108.5 of this Act, shall
4create or otherwise designate a Smart Grid test bed, which may
5be located at one or more places within the utility's system,
6for the purposes of allowing for the testing of Smart Grid
7technologies. The objectives of this test bed shall be to:
8        (1) provide an open, unbiased opportunity for testing
9    programs, technologies, business models, and other Smart
10    Grid-related activities;
11        (2) provide on-grid locations for the testing of
12    potentially innovative Smart Grid-related technologies and
13    services, including but not limited to those funded by the
14    trust or foundation established pursuant to Section
15    16-108.7 of this Act;
16        (3) facilitate testing of business models or services
17    that help integrate Smart Grid-related technologies into
18    the electric grid, especially those business models that
19    may help promote new products and services for retail
20    customers;
21        (4) offer opportunities to test and showcase Smart Grid
22    technologies and services, especially those likely to
23    support the economic development goals of the State of
24    Illinois.
25    (b) The test bed shall reside in one or more locations on
26the participating utility's network. Such locations shall be

 

 

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1chosen by the utility to maximize the opportunity for real-time
2and real-world testing of Smart Grid technologies and services
3taking into account the safety and security of the
4participating utility's grid and grid operations.
5    (c) The participating utility, with input from the Smart
6Grid Advisory Council established pursuant to Section 16-108.6
7of this Act, shall, as part of its filing under subsection (b)
8of Section 16-108.5, include a plan for the creation,
9operation, and administration of the test bed. This plan shall
10address the following:
11        (1) how the utility proposes to comply with each of the
12    objectives set forth in subsection (a) of this Section;
13        (2) the proposed location or locations of the test bed;
14        (3) the process by which the utility will receive,
15    review, and qualify proposals to use the test bed;
16        (4) the criteria by which the utility proposes to
17    qualify proposals to use the test bed, including, but not
18    limited to, safety, reliability, security, customer data
19    security, privacy, and economic development
20    considerations;
21        (5) the engineering and operations support that the
22    utility will provide to test bed users, including provision
23    of customer data; and
24        (6) the estimated costs to establish, administer and
25    promote the availability of the test bed.
26    (d) The test bed should be open to all qualified entities

 

 

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1wishing to test programs, technologies, business models, and
2other Smart Grid-related activities, provided that the utility
3retains control of its grid and operations and may reject any
4programs, technologies, business models, and other Smart
5Grid-related activities that threaten the reliability, safety,
6security, or operations of its network, or that would threaten
7the security of customer-identifiable data in the judgment of
8the utility. The number of technologies and entities
9participating in the test bed at any time may be limited by the
10utility based on its determination of its ability to maintain a
11secure, safe, and reliable grid.
12    (e) At a minimum, the test bed shall have the ability to
13receive live signals from PJM Interconnection LLC or other
14applicable regional transmission organization, the ability to
15test new applications in a utility scale environment (to
16include ramp rate regulations for distributed wind and solar
17resources), critical peak price response, and market-based
18power dispatch.
19    (f) At the end of the fourth year of operation the test bed
20shall be subject to an independent evaluation to determine if
21the test bed is meeting the objectives of this Section or is
22likely to meet the objectives in the future. The evaluation
23shall include the performance of the utility as test bed
24operator. Subject to the findings, the utility and the trust or
25foundation established pursuant to Section 16-108.7 of this Act
26may choose to continue operating the test bed.

 

 

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1    (g) The utility shall be entitled to recover all prudently
2incurred and reasonable costs associated with evaluation of
3proposals, engineering, construction, operation, and
4administration of the test bed through the performance-based
5formula rate tariff established pursuant to Section 16-108.5 of
6this Act.
7    (h) The utility is authorized to charge fees to users of
8the test bed that shall recover the costs associated with the
9incremental direct costs to the utility associated with
10administration of the test bed, provided, however, that any
11such fees collected by the utility shall be used to offset the
12costs to be recovered pursuant to subsection (g) of this
13Section.
14    (i) On a quarterly basis, the utility shall provide the
15trust or foundation established pursuant to Section 16-108.7 of
16this Act with a report summarizing test bed activities,
17customers, discoveries, and other information as shall be
18mutually deemed relevant.
19    (j) To the extent practicable, the utility and trust or
20foundation established pursuant to Section 16-108.7 of this Act
21shall jointly pursue resources that enhance the capabilities
22and capacity of the test bed.
23    (k) If Section 16-108.5 of this Act becomes inoperative
24with respect to one or more participating utilities as set
25forth in subsection (g) or (h) of that Section, then Sections
2616-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act shall

 

 

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1become inoperative as to each affected utility and its service
2area on the same date as Section 16-108.5 become inoperative.
3(Source: P.A. 97-616, eff. 10-26-11.)