Full Text of HB3822 102nd General Assembly
HB3822 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB3822 Introduced 2/22/2021, by Rep. Jim Durkin SYNOPSIS AS INTRODUCED: |
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Amends the Public Utilities Act. In provisions concerning recovery of the costs associated with the purchase of zero emission credits from zero emission facilities, requires the , the electric utility to deposit the monies collected under the tariffed charges for the delivery year commencing June 1, 2020 into a separate interest bearing account of a financial institution. Provides that the Commission shall not conduct an annual review, reconciliation, and true-up associated with renewable energy resources' collections and costs for the delivery year commencing June 1, 2021, and provides that the Commission shall instead conduct a single review, reconciliation, and true-up associated with renewable energy resources' collections and costs for the 5-year period beginning June 1, 2017 and ending May 31, 2022 (rather than for the 4-year period begiinning June 1, 2017 and ending May 31, 2021). Makes conforming changes.
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| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Public Utilities Act is amended by changing | 5 | | Section 16-108 as follows:
| 6 | | (220 ILCS 5/16-108)
| 7 | | Sec. 16-108. Recovery of costs associated with the
| 8 | | provision of delivery and other services. | 9 | | (a) An electric utility shall file a delivery services
| 10 | | tariff with the Commission at least 210 days prior to the date
| 11 | | that it is required to begin offering such services pursuant
| 12 | | to this Act. An electric utility shall provide the components
| 13 | | of delivery services that are subject to the jurisdiction of
| 14 | | the Federal Energy Regulatory Commission at the same prices,
| 15 | | terms and conditions set forth in its applicable tariff as
| 16 | | approved or allowed into effect by that Commission. The
| 17 | | Commission shall otherwise have the authority pursuant to | 18 | | Article IX to review,
approve, and modify the prices, terms | 19 | | and conditions of those
components of delivery services not | 20 | | subject to the
jurisdiction of the Federal Energy Regulatory | 21 | | Commission,
including the authority to determine the extent to | 22 | | which such
delivery services should be offered on an unbundled | 23 | | basis. In making any such
determination the Commission shall |
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| 1 | | consider, at a minimum, the effect of
additional unbundling on | 2 | | (i) the objective of just and reasonable rates, (ii)
electric | 3 | | utility employees, and (iii) the development of competitive | 4 | | markets
for electric energy services in Illinois.
| 5 | | (b) The Commission shall enter an order approving, or
| 6 | | approving as modified, the delivery services tariff no later
| 7 | | than 30 days prior to the date on which the electric utility
| 8 | | must commence offering such services. The Commission may
| 9 | | subsequently modify such tariff pursuant to this Act.
| 10 | | (c) The electric utility's
tariffs shall define the | 11 | | classes of its customers for purposes
of delivery services | 12 | | charges. Delivery services shall be priced and made
available | 13 | | to all retail customers electing delivery services in each | 14 | | such class
on a nondiscriminatory basis regardless of whether | 15 | | the retail customer chooses
the electric utility, an affiliate | 16 | | of the electric utility, or another entity
as its supplier of | 17 | | electric power and energy. Charges for delivery services
shall | 18 | | be cost based,
and shall allow the electric utility to recover | 19 | | the costs of
providing delivery services through its charges | 20 | | to its
delivery service customers that use the facilities and
| 21 | | services associated with such costs.
Such costs shall include | 22 | | the
costs of owning, operating and maintaining transmission | 23 | | and
distribution facilities. The Commission shall also be
| 24 | | authorized to consider whether, and if so to what extent, the
| 25 | | following costs are appropriately included in the electric
| 26 | | utility's delivery services rates: (i) the costs of that
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| 1 | | portion of generation facilities used for the production and
| 2 | | absorption of reactive power in order that retail customers
| 3 | | located in the electric utility's service area can receive
| 4 | | electric power and energy from suppliers other than the
| 5 | | electric utility, and (ii) the costs associated with the use
| 6 | | and redispatch of generation facilities to mitigate
| 7 | | constraints on the transmission or distribution system in
| 8 | | order that retail customers located in the electric utility's
| 9 | | service area can receive electric power and energy from
| 10 | | suppliers other than the electric utility. Nothing in this
| 11 | | subsection shall be construed as directing the Commission to
| 12 | | allocate any of the costs described in (i) or (ii) that are
| 13 | | found to be appropriately included in the electric utility's
| 14 | | delivery services rates to any particular customer group or
| 15 | | geographic area in setting delivery services rates.
| 16 | | (d) The Commission shall establish charges, terms and
| 17 | | conditions for delivery services that are just and reasonable
| 18 | | and shall take into account customer impacts when establishing
| 19 | | such charges. In establishing charges, terms and conditions
| 20 | | for delivery services, the Commission shall take into account
| 21 | | voltage level differences. A retail customer shall have the
| 22 | | option to request to purchase electric service at any delivery
| 23 | | service voltage reasonably and technically feasible from the
| 24 | | electric facilities serving that customer's premises provided
| 25 | | that there are no significant adverse impacts upon system
| 26 | | reliability or system efficiency. A retail customer shall
also |
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| 1 | | have the option to request to purchase electric service
at any | 2 | | point of delivery that is reasonably and technically
feasible | 3 | | provided that there are no significant adverse
impacts on | 4 | | system reliability or efficiency. Such requests
shall not be | 5 | | unreasonably denied.
| 6 | | (e) Electric utilities shall recover the costs of
| 7 | | installing, operating or maintaining facilities for the
| 8 | | particular benefit of one or more delivery services customers,
| 9 | | including without limitation any costs incurred in complying
| 10 | | with a customer's request to be served at a different voltage
| 11 | | level, directly from the retail customer or customers for
| 12 | | whose benefit the costs were incurred, to the extent such
| 13 | | costs are not recovered through the charges referred to in
| 14 | | subsections (c) and (d) of this Section.
| 15 | | (f) An electric utility shall be entitled but not
required | 16 | | to implement transition charges in conjunction with
the | 17 | | offering of delivery services pursuant to Section 16-104.
If | 18 | | an electric utility implements transition charges, it shall | 19 | | implement such
charges for all delivery services customers and | 20 | | for all customers described in
subsection (h), but shall not | 21 | | implement transition charges for power and
energy that a | 22 | | retail customer takes from cogeneration or self-generation
| 23 | | facilities located on that retail customer's premises, if such | 24 | | facilities meet
the following criteria:
| 25 | | (i) the cogeneration or self-generation facilities | 26 | | serve a single retail
customer and are located on that |
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| 1 | | retail customer's premises (for purposes of
this | 2 | | subparagraph and subparagraph (ii), an industrial or | 3 | | manufacturing retail
customer and a third party contractor | 4 | | that is served by such industrial or
manufacturing | 5 | | customer through such retail customer's own electrical
| 6 | | distribution facilities under the circumstances described | 7 | | in subsection (vi) of
the definition of "alternative | 8 | | retail electric supplier" set forth in Section
16-102, | 9 | | shall be considered a single retail customer);
| 10 | | (ii) the cogeneration or self-generation facilities | 11 | | either (A) are sized
pursuant to generally accepted | 12 | | engineering standards for the retail customer's
electrical | 13 | | load at that premises (taking into account standby or | 14 | | other
reliability considerations related to that retail | 15 | | customer's operations at that
site) or (B) if the facility | 16 | | is a cogeneration facility located on the retail
| 17 | | customer's premises, the retail customer is the thermal | 18 | | host for that facility
and the facility has been designed | 19 | | to meet that retail customer's thermal
energy requirements | 20 | | resulting in electrical output beyond that retail
| 21 | | customer's electrical demand at that premises, comply with | 22 | | the operating and
efficiency standards applicable to | 23 | | "qualifying facilities" specified in title
18 Code of | 24 | | Federal Regulations Section 292.205 as in effect on the | 25 | | effective
date of this amendatory Act of 1999;
| 26 | | (iii) the retail customer on whose premises the |
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| 1 | | facilities are located
either has an exclusive right to | 2 | | receive, and corresponding obligation to pay
for, all of | 3 | | the electrical capacity of the facility, or in the case of | 4 | | a
cogeneration facility that has been designed to meet the | 5 | | retail customer's
thermal energy requirements at that | 6 | | premises, an identified amount of the
electrical capacity | 7 | | of the facility, over a minimum 5-year period; and
| 8 | | (iv) if the cogeneration facility is sized for the
| 9 | | retail customer's thermal load at that premises but | 10 | | exceeds the electrical
load, any sales of excess power or | 11 | | energy are made only at wholesale, are
subject to the | 12 | | jurisdiction of the Federal Energy Regulatory Commission, | 13 | | and
are not for the purpose of circumventing the | 14 | | provisions of this subsection (f).
| 15 | | If a generation facility located at a retail customer's | 16 | | premises does not meet
the above criteria, an electric utility | 17 | | implementing
transition charges shall implement a transition | 18 | | charge until December 31, 2006
for any power and energy taken | 19 | | by such retail customer from such facility as if
such power and | 20 | | energy had been delivered by the electric utility. Provided,
| 21 | | however, that an industrial retail customer that is taking | 22 | | power from a
generation facility that does not meet the above | 23 | | criteria but that is located
on such customer's premises will | 24 | | not be subject to a transition charge for the
power and energy | 25 | | taken by such retail customer from such generation facility if
| 26 | | the facility does not serve any other retail customer and |
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| 1 | | either was installed
on behalf of the customer and for its own | 2 | | use prior to January 1, 1997, or is
both predominantly fueled | 3 | | by byproducts of such customer's manufacturing
process at such | 4 | | premises and sells or offers an average of 300 megawatts or
| 5 | | more of electricity produced from such generation facility | 6 | | into the wholesale
market.
Such charges
shall be calculated as | 7 | | provided in Section
16-102, and shall be collected
on each | 8 | | kilowatt-hour delivered under a
delivery services tariff to a | 9 | | retail customer from the date
the customer first takes | 10 | | delivery services until December 31,
2006 except as provided | 11 | | in subsection (h) of this Section.
Provided, however, that an | 12 | | electric utility, other than an electric utility
providing | 13 | | service to at least 1,000,000 customers in this State on | 14 | | January 1,
1999,
shall be entitled to petition for
entry of an | 15 | | order by the Commission authorizing the electric utility to
| 16 | | implement transition charges for an additional period ending | 17 | | no later than
December 31, 2008. The electric utility shall | 18 | | file its petition with
supporting evidence no earlier than 16 | 19 | | months, and no later than 12 months,
prior to December 31, | 20 | | 2006. The Commission shall hold a hearing on the
electric | 21 | | utility's petition and shall enter its order no later than 8 | 22 | | months
after the petition is filed. The Commission shall | 23 | | determine whether and to
what extent the electric utility | 24 | | shall be authorized to implement transition
charges for an | 25 | | additional period. The Commission may authorize the electric
| 26 | | utility to implement transition charges for some or all of the |
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| 1 | | additional
period, and shall determine the mitigation factors | 2 | | to be used in implementing
such transition charges; provided, | 3 | | that the Commission shall not authorize
mitigation factors | 4 | | less than 110% of those in effect during the 12 months ended
| 5 | | December 31, 2006. In making its determination, the Commission | 6 | | shall consider
the following factors: the necessity to | 7 | | implement transition charges for an
additional period in order | 8 | | to maintain the financial integrity of the electric
utility; | 9 | | the prudence of the electric utility's actions in reducing its | 10 | | costs
since the effective date of this amendatory Act of 1997; | 11 | | the ability of the
electric utility to provide safe, adequate | 12 | | and reliable service to retail
customers in its service area; | 13 | | and the impact on competition of allowing the
electric utility | 14 | | to implement transition charges for the additional period.
| 15 | | (g) The electric utility shall file tariffs that
establish | 16 | | the transition charges to be paid by each class of
customers to | 17 | | the electric utility in conjunction with the
provision of | 18 | | delivery services. The electric utility's tariffs
shall define | 19 | | the classes of its customers for purposes of
calculating | 20 | | transition charges. The electric utility's tariffs
shall | 21 | | provide for the calculation of transition charges on a
| 22 | | customer-specific basis for any retail customer whose average
| 23 | | monthly maximum electrical demand on the electric utility's
| 24 | | system during the 6 months with the customer's highest monthly
| 25 | | maximum electrical demands equals or exceeds 3.0 megawatts for
| 26 | | electric utilities having more than 1,000,000 customers, and
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| 1 | | for other electric utilities for any customer that has an
| 2 | | average monthly maximum electrical demand on the electric
| 3 | | utility's system of one megawatt or more, and (A) for which
| 4 | | there exists data on the customer's usage during the 3 years
| 5 | | preceding the date that the customer became eligible to take
| 6 | | delivery services, or (B) for which there does not exist data
| 7 | | on the customer's usage during the 3 years preceding the date
| 8 | | that the customer became eligible to take delivery services,
| 9 | | if in the electric utility's reasonable judgment there exists
| 10 | | comparable usage information or a sufficient basis to develop
| 11 | | such information, and further provided that the electric
| 12 | | utility can require customers for which an individual
| 13 | | calculation is made to sign contracts that set forth the
| 14 | | transition charges to be paid by the customer to the electric
| 15 | | utility pursuant to the tariff.
| 16 | | (h) An electric utility shall also be entitled to file
| 17 | | tariffs that allow it to collect transition charges from
| 18 | | retail customers in the electric utility's service area that
| 19 | | do not take delivery services but that take electric power or
| 20 | | energy from an alternative retail electric supplier or from an
| 21 | | electric utility other than the electric utility in whose
| 22 | | service area the customer is located. Such charges shall be
| 23 | | calculated, in accordance with the definition of transition
| 24 | | charges in Section 16-102, for the period of time that the
| 25 | | customer would be obligated to pay transition charges if it
| 26 | | were taking delivery services, except that no deduction for
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| 1 | | delivery services revenues shall be made in such calculation,
| 2 | | and usage data from the customer's class shall be used where
| 3 | | historical usage data is not available for the individual
| 4 | | customer. The customer shall be obligated to pay such charges
| 5 | | on a lump sum basis on or before the date on which the
customer | 6 | | commences to take service from the alternative retail
electric | 7 | | supplier or other electric utility, provided, that
the | 8 | | electric utility in whose service area the customer is
located | 9 | | shall offer the customer the option of signing a
contract | 10 | | pursuant to which the customer pays such charges
ratably over | 11 | | the period in which the charges would otherwise
have applied.
| 12 | | (i) An electric utility shall be entitled to add to the
| 13 | | bills of delivery services customers charges pursuant to
| 14 | | Sections 9-221, 9-222 (except as provided in Section 9-222.1), | 15 | | and Section
16-114 of this Act, Section 5-5 of the Electricity | 16 | | Infrastructure Maintenance
Fee Law, Section 6-5 of the | 17 | | Renewable Energy, Energy Efficiency, and Coal
Resources | 18 | | Development Law of 1997, and Section 13 of the Energy | 19 | | Assistance Act.
| 20 | | (j) If a retail customer that obtains electric power and
| 21 | | energy from cogeneration or self-generation facilities
| 22 | | installed for its own use on or before January 1, 1997,
| 23 | | subsequently takes service from an alternative retail electric
| 24 | | supplier or an electric utility other than the electric
| 25 | | utility in whose service area the customer is located for any
| 26 | | portion of the customer's electric power and energy
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| 1 | | requirements formerly obtained from those facilities | 2 | | (including that amount
purchased from the utility in lieu of | 3 | | such generation and not as standby power
purchases, under a | 4 | | cogeneration displacement tariff in effect as of the
effective | 5 | | date of this amendatory Act of 1997), the
transition charges | 6 | | otherwise applicable pursuant to subsections (f), (g), or
(h) | 7 | | of this Section shall not be applicable
in any year to that | 8 | | portion of the customer's electric power
and energy | 9 | | requirements formerly obtained from those
facilities, | 10 | | provided, that for purposes of this subsection
(j), such | 11 | | portion shall not exceed the average number of
kilowatt-hours | 12 | | per year obtained from the cogeneration or
self-generation | 13 | | facilities during the 3 years prior to the
date on which the | 14 | | customer became eligible for delivery
services, except as | 15 | | provided in subsection (f) of Section
16-110.
| 16 | | (k) The electric utility shall be entitled to recover | 17 | | through tariffed charges all of the costs associated with the | 18 | | purchase of zero emission credits from zero emission | 19 | | facilities to meet the requirements of subsection (d-5) of | 20 | | Section 1-75 of the Illinois Power Agency Act. Such costs | 21 | | shall include the costs of procuring the zero emission | 22 | | credits, as well as the reasonable costs that the utility | 23 | | incurs as part of the procurement processes and to implement | 24 | | and comply with plans and processes approved by the Commission | 25 | | under such subsection (d-5). The costs shall be allocated | 26 | | across all retail customers through a single, uniform cents |
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| 1 | | per kilowatt-hour charge applicable to all retail customers, | 2 | | which shall appear as a separate line item on each customer's | 3 | | bill. Beginning June 1, 2017, the electric utility shall be | 4 | | entitled to recover through tariffed charges all of the costs | 5 | | associated with the purchase of renewable energy resources to | 6 | | meet the renewable energy resource standards of subsection (c) | 7 | | of Section 1-75 of the Illinois Power Agency Act, under | 8 | | procurement plans as approved in accordance with that Section | 9 | | and Section 16-111.5 of this Act. Such costs shall include the | 10 | | costs of procuring the renewable energy resources, as well as | 11 | | the reasonable costs that the utility incurs as part of the | 12 | | procurement processes and to implement and comply with plans | 13 | | and processes approved by the Commission under such Sections. | 14 | | The costs associated with the purchase of renewable energy | 15 | | resources shall be allocated across all retail customers in | 16 | | proportion to the amount of renewable energy resources the | 17 | | utility procures for such customers through a single, uniform | 18 | | cents per kilowatt-hour charge applicable to such retail | 19 | | customers, which shall appear as a separate line item on each | 20 | | such customer's bill. | 21 | | Notwithstanding whether the Commission has approved the | 22 | | initial long-term renewable resources procurement plan as of | 23 | | June 1, 2017, an electric utility shall place new tariffed | 24 | | charges into effect beginning with the June 2017 monthly | 25 | | billing period, to the extent practicable, to begin recovering | 26 | | the costs of procuring renewable energy resources, as those |
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| 1 | | charges are calculated under the limitations described in | 2 | | subparagraph (E) of paragraph (1) of subsection (c) of Section | 3 | | 1-75 of the Illinois Power Agency Act. Notwithstanding the | 4 | | date on which the utility places such new tariffed charges | 5 | | into effect, the utility shall be permitted to collect the | 6 | | charges under such tariff as if the tariff had been in effect | 7 | | beginning with the first day of the June 2017 monthly billing | 8 | | period. For the delivery years commencing June 1, 2017, June | 9 | | 1, 2018, and June 1, 2019, and June 1, 2020, the electric | 10 | | utility shall deposit into a separate interest bearing account | 11 | | of a financial institution the monies collected under the | 12 | | tariffed charges. Any interest earned shall be credited back | 13 | | to retail customers under the reconciliation proceeding | 14 | | provided for in this subsection (k), provided that the | 15 | | electric utility shall first be reimbursed from the interest | 16 | | for the administrative costs that it incurs to administer and | 17 | | manage the account. Any taxes due on the funds in the account, | 18 | | or interest earned on it, will be paid from the account or, if | 19 | | insufficient monies are available in the account, from the | 20 | | monies collected under the tariffed charges to recover the | 21 | | costs of procuring renewable energy resources. Monies | 22 | | deposited in the account shall be subject to the review, | 23 | | reconciliation, and true-up process described in this | 24 | | subsection (k) that is applicable to the funds collected and | 25 | | costs incurred for the procurement of renewable energy | 26 | | resources. |
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| 1 | | The electric utility shall be entitled to recover all of | 2 | | the costs identified in this subsection (k) through automatic | 3 | | adjustment clause tariffs applicable to all of the utility's | 4 | | retail customers that allow the electric utility to adjust its | 5 | | tariffed charges consistent with this subsection (k). The | 6 | | determination as to whether any excess funds were collected | 7 | | during a given delivery year for the purchase of renewable | 8 | | energy resources, and the crediting of any excess funds back | 9 | | to retail customers, shall not be made until after the close of | 10 | | the delivery year, which will ensure that the maximum amount | 11 | | of funds is available to implement the approved long-term | 12 | | renewable resources procurement plan during a given delivery | 13 | | year. The electric utility's collections under such automatic | 14 | | adjustment clause tariffs to recover the costs of renewable | 15 | | energy resources and zero emission credits from zero emission | 16 | | facilities shall be subject to separate annual review, | 17 | | reconciliation, and true-up against actual costs by the | 18 | | Commission under a procedure that shall be specified in the | 19 | | electric utility's automatic adjustment clause tariffs and | 20 | | that shall be approved by the Commission in connection with | 21 | | its approval of such tariffs. The procedure shall provide that | 22 | | any difference between the electric utility's collections | 23 | | under the automatic adjustment charges for an annual period | 24 | | and the electric utility's actual costs of renewable energy | 25 | | resources and zero emission credits from zero emission | 26 | | facilities for that same annual period shall be refunded to or |
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| 1 | | collected from, as applicable, the electric utility's retail | 2 | | customers in subsequent periods. | 3 | | Nothing in this subsection (k) is intended to affect, | 4 | | limit, or change the right of the electric utility to recover | 5 | | the costs associated with the procurement of renewable energy | 6 | | resources for periods commencing before, on, or after June 1, | 7 | | 2017, as otherwise provided in the Illinois Power Agency Act. | 8 | | Notwithstanding anything to the contrary, the Commission | 9 | | shall not conduct an annual review, reconciliation, and | 10 | | true-up associated with renewable energy resources' | 11 | | collections and costs for the delivery years commencing June | 12 | | 1, 2017, June 1, 2018, June 1, 2019, and June 1, 2020, and June | 13 | | 1, 2021, and shall instead conduct a single review, | 14 | | reconciliation, and true-up associated with renewable energy | 15 | | resources' collections and costs for the 5-year 4-year period | 16 | | beginning June 1, 2017 and ending May 31, 2022 2021 , provided | 17 | | that the review, reconciliation, and true-up shall not be | 18 | | initiated until after August 31, 2022 2021 . During the 5-year | 19 | | 4-year period, the utility shall be permitted to collect and | 20 | | retain funds under this subsection (k) and to purchase | 21 | | renewable energy resources under an approved long-term | 22 | | renewable resources procurement plan using those funds | 23 | | regardless of the delivery year in which the funds were | 24 | | collected during the 5-year 4-year period. | 25 | | If the amount of funds collected during the delivery year | 26 | | commencing June 1, 2017, exceeds the costs incurred during |
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| 1 | | that delivery year, then up to half of this excess amount, as | 2 | | calculated on June 1, 2018, may be used to fund the programs | 3 | | under subsection (b) of Section 1-56 of the Illinois Power | 4 | | Agency Act in the same proportion the programs are funded | 5 | | under that subsection (b). However, any amount identified | 6 | | under this subsection (k) to fund programs under subsection | 7 | | (b) of Section 1-56 of the Illinois Power Agency Act shall be | 8 | | reduced if it exceeds the funding shortfall. For purposes of | 9 | | this Section, "funding shortfall" means the difference between | 10 | | $200,000,000 and the amount appropriated by the General | 11 | | Assembly to the Illinois Power Agency Renewable Energy | 12 | | Resources Fund during the period that commences on the | 13 | | effective date of this amendatory act of the 99th General | 14 | | Assembly and ends on August 1, 2018. | 15 | | If the amount of funds collected during the delivery year | 16 | | commencing June 1, 2018, exceeds the costs incurred during | 17 | | that delivery year, then up to half of this excess amount, as | 18 | | calculated on June 1, 2019, may be used to fund the programs | 19 | | under subsection (b) of Section 1-56 of the Illinois Power | 20 | | Agency Act in the same proportion the programs are funded | 21 | | under that subsection (b). However, any amount identified | 22 | | under this subsection (k) to fund programs under subsection | 23 | | (b) of Section 1-56 of the Illinois Power Agency Act shall be | 24 | | reduced if it exceeds the funding shortfall. | 25 | | If the amount of funds collected during the delivery year | 26 | | commencing June 1, 2019, exceeds the costs incurred during |
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| 1 | | that delivery year, then up to half of this excess amount, as | 2 | | calculated on June 1, 2020, may be used to fund the programs | 3 | | under subsection (b) of Section 1-56 of the Illinois Power | 4 | | Agency Act in the same proportion the programs are funded | 5 | | under that subsection (b). However, any amount identified | 6 | | under this subsection (k) to fund programs under subsection | 7 | | (b) of Section 1-56 of the Illinois Power Agency Act shall be | 8 | | reduced if it exceeds the funding shortfall. | 9 | | The funding available under this subsection (k), if any, | 10 | | for the programs described under subsection (b) of Section | 11 | | 1-56 of the Illinois Power Agency Act shall not reduce the | 12 | | amount of funding for the programs described in subparagraph | 13 | | (O) of paragraph (1) of subsection (c) of Section 1-75 of the | 14 | | Illinois Power Agency Act. If funding is available under this | 15 | | subsection (k) for programs described under subsection (b) of | 16 | | Section 1-56 of the Illinois Power Agency Act, then the | 17 | | long-term renewable resources plan shall provide for the | 18 | | Agency to procure contracts in an amount that does not exceed | 19 | | the funding, and the contracts approved by the Commission | 20 | | shall be executed by the applicable utility or utilities. | 21 | | (l) A utility that has terminated any contract executed | 22 | | under subsection (d-5) of Section 1-75 of the Illinois Power | 23 | | Agency Act shall be entitled to recover any remaining balance | 24 | | associated with the purchase of zero emission credits prior to | 25 | | such termination, and such utility shall also apply a credit | 26 | | to its retail customer bills in the event of any |
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| 1 | | over-collection. | 2 | | (m)(1) An electric utility that recovers its costs of | 3 | | procuring zero emission credits from zero emission | 4 | | facilities through a cents-per-kilowatthour charge under | 5 | | to subsection (k) of this Section shall be subject to the | 6 | | requirements of this subsection (m). Notwithstanding | 7 | | anything to the contrary, such electric utility shall, | 8 | | beginning on April 30, 2018, and each April 30 thereafter | 9 | | until April 30, 2026, calculate whether any reduction must | 10 | | be applied to such cents-per-kilowatthour charge that is | 11 | | paid by retail customers of the electric utility that are | 12 | | exempt from subsections (a) through (j) of Section 8-103B | 13 | | of this Act under subsection (l) of Section 8-103B. Such | 14 | | charge shall be reduced for such customers for the next | 15 | | delivery year commencing on June 1 based on the amount | 16 | | necessary, if any, to limit the annual estimated average | 17 | | net increase for the prior calendar year due to the future | 18 | | energy investment costs to no more than 1.3% of 5.98 cents | 19 | | per kilowatt-hour, which is the average amount paid per | 20 | | kilowatthour for electric service during the year ending | 21 | | December 31, 2015 by Illinois industrial retail customers, | 22 | | as reported to the Edison Electric Institute. | 23 | | The calculations required by this subsection (m) shall | 24 | | be made only once for each year, and no subsequent rate | 25 | | impact determinations shall be made. | 26 | | (2) For purposes of this Section, "future energy |
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| 1 | | investment costs" shall be calculated by subtracting the | 2 | | cents-per-kilowatthour charge identified in subparagraph | 3 | | (A) of this paragraph (2) from the sum of the | 4 | | cents-per-kilowatthour charges identified in subparagraph | 5 | | (B) of this paragraph (2): | 6 | | (A) The cents-per-kilowatthour charge identified | 7 | | in the electric utility's tariff placed into effect | 8 | | under Section 8-103 of the Public Utilities Act that, | 9 | | on December 1, 2016, was applicable to those retail | 10 | | customers that are exempt from subsections (a) through | 11 | | (j) of Section 8-103B of this Act under subsection (l) | 12 | | of Section 8-103B. | 13 | | (B) The sum of the following | 14 | | cents-per-kilowatthour charges applicable to those | 15 | | retail customers that are exempt from subsections (a) | 16 | | through (j) of Section 8-103B of this Act under | 17 | | subsection (l) of Section 8-103B, provided that if one | 18 | | or more of the following charges has been in effect and | 19 | | applied to such customers for more than one calendar | 20 | | year, then each charge shall be equal to the average of | 21 | | the charges applied over a period that commences with | 22 | | the calendar year ending December 31, 2017 and ends | 23 | | with the most recently completed calendar year prior | 24 | | to the calculation required by this subsection (m): | 25 | | (i) the cents-per-kilowatthour charge to | 26 | | recover the costs incurred by the utility under |
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| 1 | | subsection (d-5) of Section 1-75 of the Illinois | 2 | | Power Agency Act, adjusted for any reductions | 3 | | required under this subsection (m); and | 4 | | (ii) the cents-per-kilowatthour charge to | 5 | | recover the costs incurred by the utility under | 6 | | Section 16-107.6 of the Public Utilities Act. | 7 | | If no charge was applied for a given calendar year | 8 | | under item (i) or (ii) of this subparagraph (B), then | 9 | | the value of the charge for that year shall be zero. | 10 | | (3) If a reduction is required by the calculation | 11 | | performed under this subsection (m), then the amount of | 12 | | the reduction shall be multiplied by the number of years | 13 | | reflected in the averages calculated under subparagraph | 14 | | (B) of paragraph (2) of this subsection (m). Such | 15 | | reduction shall be applied to the cents-per-kilowatthour | 16 | | charge that is applicable to those retail customers that | 17 | | are exempt from subsections (a) through (j) of Section | 18 | | 8-103B of this Act under subsection (l) of Section 8-103B | 19 | | beginning with the next delivery year commencing after the | 20 | | date of the calculation required by this subsection (m). | 21 | | (4) The electric utility shall file a notice with the | 22 | | Commission on May 1 of 2018 and each May 1 thereafter until | 23 | | May 1, 2026 containing the reduction, if any, which must | 24 | | be applied for the delivery year which begins in the year | 25 | | of the filing. The notice shall contain the calculations | 26 | | made pursuant to this Section. By October 1 of each year |
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| 1 | | beginning in 2018, each electric utility shall notify the | 2 | | Commission if it appears, based on an estimate of the | 3 | | calculation required in this subsection (m), that a | 4 | | reduction will be required in the next year. | 5 | | (Source: P.A. 99-906, eff. 6-1-17 .)
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