Full Text of HB5403 093rd General Assembly
HB5403 93RD GENERAL ASSEMBLY
|
|
|
93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 HB5403
Introduced 02/06/04, by Michael J. Madigan SYNOPSIS AS INTRODUCED: |
|
|
Amends the Public Utilities Act. Makes a technical change in a Section
concerning independent system operators.
|
| |
|
|
A BILL FOR
|
|
|
|
|
HB5403 |
|
LRB093 17303 AMC 42969 b |
|
| 1 |
| AN ACT concerning utilities.
| 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 16-126 as
follows:
| 6 |
| (220 ILCS 5/16-126)
| 7 |
| Sec. 16-126. Membership in an independent system operator.
| 8 |
| (a) The General Assembly finds that the establishment of | 9 |
| one or
more independent system operators or their functional | 10 |
| equivalents
is required to facilitate the development of an | 11 |
| open and
efficient marketplace for electric power and energy to | 12 |
| the
benefit of Illinois consumers. Therefore, an
each Illinois | 13 |
| electric
utility owning or controlling transmission facilities | 14 |
| or
providing transmission services in Illinois and that is a | 15 |
| member
of the Mid-American Interconnected Network as of the | 16 |
| effective
date of this amendatory Act of 1997 shall submit for | 17 |
| approval to
the Federal Energy Regulatory Commission an | 18 |
| application for
establishing or joining an independent system | 19 |
| operator that
shall:
| 20 |
| (1) independently manage and control transmission | 21 |
| facilities of
any electric utility;
| 22 |
| (2) provide for nondiscriminatory access to and use of | 23 |
| the
transmission system for buyers and sellers of | 24 |
| electricity;
| 25 |
| (3) direct the transmission activities of the control | 26 |
| area
operators;
| 27 |
| (4) coordinate, plan, and order the installation of new
| 28 |
| transmission facilities;
| 29 |
| (5) adopt inspection, maintenance, repair, and | 30 |
| replacement
standards for the transmission facilities | 31 |
| under its control and
direct maintenance, repair, and | 32 |
| replacement of all facilities
under its control; and
|
|
|
|
HB5403 |
- 2 - |
LRB093 17303 AMC 42969 b |
|
| 1 |
| (6) implement procedures and act to assure the | 2 |
| provision of
adequate and reliable service.
| 3 |
| These standards shall be
consistent with reliability | 4 |
| criteria no less stringent than those
established by the | 5 |
| Mid-American Interconnected Network and the
North American | 6 |
| Electric Reliability Council or their successors.
| 7 |
| (b) The requirements of this Section may be met by joining | 8 |
| or
establishing a regional independent system operator that | 9 |
| meets
the criteria enumerated in subsections (a), (c), and (d) | 10 |
| of this
Section, as determined by the Commission. To achieve | 11 |
| the
objectives set forth in subsection (a), the State of | 12 |
| Illinois,
through the appropriate officers, departments, and | 13 |
| agencies, shall
work cooperatively with the appropriate | 14 |
| officials and agencies of
those States contiguous to this State | 15 |
| and the Federal Energy
Regulatory Commission towards the | 16 |
| formation of one or more
regional independent system operators.
| 17 |
| (c) The independent system operator's governance structure | 18 |
| must be fair and
nondiscriminatory, and
the independent system | 19 |
| operator must be independent of any one market
participant or | 20 |
| class of participants. The independent system operator's rules
| 21 |
| of
governance must prevent control, or the appearance of | 22 |
| control, of
decision-making by any class of participants.
| 23 |
| (d) Participants in the independent system operator shall | 24 |
| make available to
the independent system operator all
| 25 |
| information required by the independent system operator in | 26 |
| performance of its
functions
described herein. The independent | 27 |
| system operator and the electric utilities
participating in the | 28 |
| independent system operator shall make all filings
required by | 29 |
| the
Federal Energy Regulatory Commission. The independent | 30 |
| system operator shall
ensure that
additional filings at the | 31 |
| Federal Energy Regulatory Commission
request confirmation of | 32 |
| the relevant provisions of this
amendatory Act of 1997.
| 33 |
| (e) If a spot market, exchange market, or other | 34 |
| market-based
mechanism providing transparent real-time market | 35 |
| prices for
electric power has not been developed, the | 36 |
| independent system operator or a
closely
cooperating agent of |
|
|
|
HB5403 |
- 3 - |
LRB093 17303 AMC 42969 b |
|
| 1 |
| the independent system operator may provide an efficient
| 2 |
| competitive
power exchange auction for electric power and | 3 |
| energy, open on a
nondiscriminatory basis to all suppliers, | 4 |
| which meets the loads
of all auction customers at efficient | 5 |
| prices.
| 6 |
| (f) For those electric utilities referred to in subsection | 7 |
| (a)
which have not filed with the Federal Energy Regulatory | 8 |
| Commission by June 30,
1998 an
application for establishment or | 9 |
| participation in an independent
system operator or if such | 10 |
| application has not been approved by
the Federal Energy | 11 |
| Regulatory Commission by March 31, 1999, a 5 member
Oversight | 12 |
| Board shall
be formed. The Oversight Board shall (1) oversee | 13 |
| the creation of
an Illinois independent system operator and (2) | 14 |
| determine the composition and
initial
terms of service of, and | 15 |
| appoint the initial members of, the
Illinois independent system | 16 |
| operator board of directors. The Oversight Board
shall
consist | 17 |
| of the following: (1) 3 persons appointed by the
Governor; (2) | 18 |
| one person appointed by the Speaker of the House of
| 19 |
| Representatives; and (3) one person appointed by the President | 20 |
| of
the Senate. The Oversight Board shall take the steps that | 21 |
| are
necessary to ensure the earliest possible incorporation of | 22 |
| an
Illinois independent system operator under the Business | 23 |
| Corporation Act of
1983, and
shall serve until the Illinois | 24 |
| independent system operator is incorporated.
| 25 |
| (g) After notice and hearing, the Commission shall require | 26 |
| each
electric utility referred to in subsection (a), that is | 27 |
| not
participating in an independent system operator meeting the | 28 |
| requirements of
subsections
(a) and (c), to seek authority from | 29 |
| the Federal Energy Regulatory Commission to
transfer
| 30 |
| functional control of transmission facilities to the Illinois | 31 |
| independent
system operator
for control by the Illinois | 32 |
| independent system operator consistent with the
requirements
| 33 |
| of subsection (a). Upon approval by the Federal Energy | 34 |
| Regulatory Commission,
electric utilities
may also elect to | 35 |
| transfer ownership of transmission facilities
to the Illinois | 36 |
| independent system operator. Nothing in this Act shall be
|
|
|
|
HB5403 |
- 4 - |
LRB093 17303 AMC 42969 b |
|
| 1 |
| deemed to
preclude the Illinois independent system operator | 2 |
| from (1) seeking authority,
as
necessary, to merge with or | 3 |
| otherwise combine its operations with
those of one or more | 4 |
| other entities authorized to provide
transmission services, | 5 |
| (2) purchasing or leasing transmission
assets from | 6 |
| transmission-owning entities not required by this
Section to | 7 |
| lease transmission facilities to the Illinois independent | 8 |
| system
operator, or
(3) operating as a transmission public | 9 |
| utility under the Federal
Power Act.
| 10 |
| (h) Any other owner of transmission facilities in Illinois | 11 |
| not
required by this Section to participate in an independent | 12 |
| system operator shall
be
permitted, but not required, to become | 13 |
| a member of the Illinois
independent system operator.
| 14 |
| (i) The Illinois independent system operator created under | 15 |
| this Section, and
any other
independent system operator | 16 |
| authorized by the Federal Energy Regulatory
Commission to | 17 |
| provide
transmission services as a
public utility under the | 18 |
| Federal Power Act within the State of
Illinois, shall be deemed | 19 |
| to be a public utility for purposes of
Section 8-503 and 8-509 | 20 |
| of this Act.
An independent system operator or regional | 21 |
| transmission organization that is
the subject
of an order | 22 |
| entered by the Commission under Section 8-503 need not possess | 23 |
| a
certificate
of service authority under Section 8-406 in order | 24 |
| to be authorized to take the
actions set
forth in Section | 25 |
| 8-509.
| 26 |
| (j) Electric utilities referred to in subsection (a) may | 27 |
| withdraw
from the Illinois independent system operator upon | 28 |
| becoming a member of an
independent
system operator or | 29 |
| operators conforming with the criteria in
subsections (a) and | 30 |
| (c) and whose formation and operation has
been approved by the | 31 |
| Federal Energy Regulatory Commission. This
subsection does not | 32 |
| relieve any electric utility of any
obligations under Federal | 33 |
| law.
| 34 |
| (k) Nothing in this Section shall be construed as imposing | 35 |
| any
requirements or obligations that are in conflict with | 36 |
| federal
law.
|
|
|
|
HB5403 |
- 5 - |
LRB093 17303 AMC 42969 b |
|
| 1 |
| (l) A regional transmission organization created under the | 2 |
| rules of the
Federal
Energy Regulatory Commission shall be | 3 |
| considered to be the functional
equivalent of an
independent | 4 |
| system operator for purposes of this Section, and an electric
| 5 |
| utility shall be
deemed to meet its obligations under this | 6 |
| Section through membership in a
regional
transmission | 7 |
| organization that fulfills the requirements of an independent
| 8 |
| system operator
under this Section.
| 9 |
| (Source: P.A. 92-12, eff. 7-1-01.)
|
|