Full Text of SB0861 099th General Assembly
SB0861 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB0861 Introduced 2/11/2015, by Sen. Chris Nybo SYNOPSIS AS INTRODUCED: |
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220 ILCS 5/16-102 |
| 220 ILCS 5/16-108.8 | |
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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.
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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 | | Sections 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 | 8 | | the following terms shall be defined as set forth in
this | 9 | | Section.
| 10 | | "Alternative retail electric supplier" means every
person, | 11 | | cooperative, corporation, municipal corporation,
company, | 12 | | association, joint stock company or association,
firm, | 13 | | partnership, individual, or other entity, their lessees,
| 14 | | trustees, or receivers appointed by any court whatsoever, that
| 15 | | offers electric power or energy for sale, lease or in exchange
| 16 | | for other value received to one or more retail customers, or
| 17 | | that engages in the delivery or furnishing of electric power
or | 18 | | energy to such retail customers, and shall include, without
| 19 | | limitation, resellers, aggregators and power marketers, but
| 20 | | shall not include (i) electric utilities (or any agent of the
| 21 | | electric utility to the extent the electric utility provides
| 22 | | tariffed services to retail customers through that agent),
(ii) | 23 | | any electric cooperative or municipal system as defined
in |
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| 1 | | Section 17-100 to the extent that the electric cooperative
or | 2 | | municipal system is serving retail customers within any
area in | 3 | | which it is or would be entitled to provide service
under the | 4 | | law in effect immediately prior to the effective
date of this | 5 | | amendatory Act of 1997, (iii) a public utility
that is owned | 6 | | and operated by any public institution of higher
education of | 7 | | this State, or a public utility that is owned by
such public | 8 | | institution of higher education and operated by
any of its | 9 | | lessees or operating agents, within any area in
which it is or | 10 | | would be entitled to provide service under the
law in effect | 11 | | immediately prior to the effective date of this
amendatory Act | 12 | | of 1997, (iv) a retail customer to the extent
that customer | 13 | | obtains its electric power and energy from that customer's
own | 14 | | cogeneration or self-generation facilities, (v) an
entity that | 15 | | owns, operates, sells, or arranges for the installation of
a | 16 | | customer's own cogeneration or self-generation facilities, but | 17 | | only to
the extent the entity is engaged in
owning,
selling or | 18 | | arranging for the installation of such facility,
or operating | 19 | | the facility
on behalf of such customer, provided however that | 20 | | any such
third party owner or operator of a facility built | 21 | | after
January 1, 1999, complies with the labor provisions of | 22 | | Section 16-128(a) as
though
such third party were an | 23 | | alternative retail
electric supplier,
or (vi) an industrial or
| 24 | | manufacturing customer that owns
its own
distribution | 25 | | facilities, to the extent that the customer provides service | 26 | | from
that distribution system to a third-party contractor |
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| 1 | | located on the customer's
premises that is integrally and | 2 | | predominantly engaged in the customer's
industrial or
| 3 | | manufacturing process; provided, that if the industrial or | 4 | | manufacturing
customer has elected delivery services, the | 5 | | customer shall pay transition
charges applicable to the | 6 | | electric power and energy consumed by the third-party
| 7 | | contractor unless such charges are otherwise paid by the third | 8 | | party
contractor, which shall be calculated based on the usage | 9 | | of, and the base rates
or the contract rates applicable to, the | 10 | | third-party contractor in accordance
with Section 16-102.
| 11 | | An entity that furnishes the service of charging electric | 12 | | vehicles does not and shall not be deemed to sell electricity | 13 | | and is not and shall not be deemed an alternative retail | 14 | | electric supplier, and is not subject to regulation as such | 15 | | under this Act notwithstanding the basis on which the service | 16 | | is provided or billed. If, however, the entity is otherwise | 17 | | deemed an alternative retail electric supplier under this Act, | 18 | | or is otherwise subject to regulation under this Act, then that | 19 | | entity is not exempt from and remains subject to the otherwise | 20 | | applicable provisions of this Act. The installation, | 21 | | maintenance, and repair of an electric vehicle charging station | 22 | | shall comply with the requirements of subsection (a) of Section | 23 | | 16-128 and Section 16-128A of this Act. | 24 | | For purposes of this Section, the term "electric vehicles" | 25 | | has the
meaning ascribed to that term in Section 10 of the | 26 | | Electric Vehicle
Act. |
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| 1 | | "Base rates" means the rates for those tariffed services | 2 | | that the electric
utility is required to offer pursuant to | 3 | | subsection (a) of Section 16-103 and
that were identified in a | 4 | | rate order for collection of the electric
utility's base rate | 5 | | revenue requirement, excluding (i) separate automatic
rate | 6 | | adjustment riders then in effect, (ii) special or negotiated | 7 | | contract
rates, (iii) delivery services tariffs filed pursuant | 8 | | to Section 16-108, (iv)
real-time pricing, or (v) tariffs that | 9 | | were in effect prior to October 1, 1996
and that based charges | 10 | | for services on an index or average of other utilities'
| 11 | | charges, but including (vi) any subsequent redesign of such | 12 | | rates for
tariffed
services that is authorized by the | 13 | | Commission after notice and hearing.
| 14 | | "Competitive service" includes (i) any service that
has | 15 | | been declared to be competitive pursuant to Section
16-113 of | 16 | | this Act, (ii) contract service, and (iii) services,
other than | 17 | | tariffed services, that are related to, but not
necessary for, | 18 | | the provision of electric power and energy or delivery | 19 | | services.
| 20 | | "Contract service" means (1) services, including the
| 21 | | provision of electric power and energy or other services, that
| 22 | | are provided by mutual agreement between an electric utility
| 23 | | and a retail customer that is located in the electric
utility's | 24 | | service area, provided that, delivery services shall
not be a | 25 | | contract service until such services are declared
competitive | 26 | | pursuant to Section 16-113; and also means (2) the
provision of |
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| 1 | | electric power and energy by an electric utility
to retail | 2 | | customers outside the electric utility's service
area pursuant | 3 | | to Section 16-116. Provided, however, contract
service does not | 4 | | include electric utility services provided
pursuant to (i) | 5 | | contracts that retail customers are required
to execute as a | 6 | | condition of receiving tariffed services, or
(ii) special or | 7 | | negotiated rate contracts for electric utility
services that | 8 | | were entered into between an electric utility
and a retail | 9 | | customer prior to the effective date of this
amendatory Act of | 10 | | 1997 and filed with the Commission.
| 11 | | "Delivery services" means those services provided by the
| 12 | | electric utility that are necessary in order for the
| 13 | | transmission and distribution systems to function so that
| 14 | | retail customers located in the electric utility's service
area | 15 | | can receive electric power and energy from suppliers
other than | 16 | | the electric utility, and shall include, without
limitation, | 17 | | standard metering and billing services.
| 18 | | "Distributed generation facility" means the equipment used | 19 | | by an interconnection customer to generate or store electricity | 20 | | that operates in parallel with the electric distribution | 21 | | system. A distributed generation facility typically includes | 22 | | an electric generator, a prime mover or energy storage, and the | 23 | | interconnection equipment required to safely interconnect with | 24 | | the electric distribution system or local electric power | 25 | | system. | 26 | | "Electric utility" means a public utility, as defined in
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| 1 | | Section 3-105 of this Act, that has a franchise, license,
| 2 | | permit or right to furnish or sell electricity to retail
| 3 | | customers within a service area.
| 4 | | "Mandatory transition period" means the period from the
| 5 | | effective date of this amendatory Act of 1997 through January
| 6 | | 1, 2007.
| 7 | | "Municipal system" shall have the meaning set forth in
| 8 | | Section 17-100.
| 9 | | "Real-time pricing" means tariffed retail charges for | 10 | | delivered electric
power and energy that vary
hour-to-hour and | 11 | | are determined from wholesale market prices using a methodology | 12 | | approved by the Illinois Commerce Commission.
| 13 | | "Retail customer" means a single entity using electric
| 14 | | power or energy at a single premises and that (A) either (i)
is | 15 | | receiving or is eligible to receive tariffed services from
an | 16 | | electric utility, or (ii) that is served by a municipal system | 17 | | or electric
cooperative within any area in which the
municipal | 18 | | system or electric cooperative is or would be
entitled to | 19 | | provide service under the law in effect
immediately prior to | 20 | | the effective date of this amendatory Act
of 1997, or (B) an | 21 | | entity which on the effective date of this
Act was receiving | 22 | | electric service from a public utility and
(i) was engaged in | 23 | | the practice of resale and redistribution
of such electricity | 24 | | within a building prior to January 2,
1957, or (ii) was | 25 | | providing lighting services to tenants in a
multi-occupancy | 26 | | building, but only to the extent such resale,
redistribution or |
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| 1 | | lighting service is authorized by the
electric utility's | 2 | | tariffs that were on file with the
Commission on the effective | 3 | | date of this Act.
| 4 | | "Service area" means (i) the geographic area within which
| 5 | | an electric utility was lawfully entitled to provide electric
| 6 | | power and energy to retail customers as of the effective date
| 7 | | of this amendatory Act of 1997, and includes (ii) the location
| 8 | | of any retail customer to which the electric utility was
| 9 | | lawfully providing electric utility services on such effective
| 10 | | date.
| 11 | | "Small commercial retail customer" means those
| 12 | | nonresidential retail customers of an electric utility
| 13 | | consuming 15,000 kilowatt-hours or less of electricity
| 14 | | annually in its service area.
| 15 | | "Tariffed service" means services provided to retail
| 16 | | customers by an electric utility as defined by its rates on
| 17 | | file with the Commission pursuant to the provisions of Article
| 18 | | IX of this Act, but shall not include competitive services.
| 19 | | "Transition charge" means a charge expressed in cents
per | 20 | | kilowatt-hour that is calculated for a customer or class
of | 21 | | customers as follows for each year in which an electric
utility | 22 | | is entitled to recover transition charges as provided
in | 23 | | Section 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),
| 18 | | provided that the transition charge shall never be less than
| 19 | | zero.
| 20 | | "Unbundled service" means a component or constituent part
| 21 | | of a tariffed service which the electric utility subsequently
| 22 | | offers 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 | 2 | | amendatory Act of the 97th General Assembly, each participating | 3 | | utility, as defined by Section 16-108.5 of this Act, shall | 4 | | create or otherwise designate a Smart Grid test bed, which may | 5 | | be located at one or more places within the utility's system, | 6 | | for the purposes of allowing for the testing of Smart Grid | 7 | | technologies. 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 | 26 | | the participating utility's network. Such locations shall be |
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| 1 | | chosen by the utility to maximize the opportunity for real-time | 2 | | and real-world testing of Smart Grid technologies and services | 3 | | taking into account the safety and security of the | 4 | | participating utility's grid and grid operations. | 5 | | (c) The participating utility, with input from the Smart | 6 | | Grid Advisory Council established pursuant to Section 16-108.6 | 7 | | of this Act, shall, as part of its filing under subsection (b) | 8 | | of Section 16-108.5, include a plan for the creation, | 9 | | operation, and administration of the test bed. This plan shall | 10 | | address 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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| 1 | | wishing to test programs, technologies, business models, and | 2 | | other Smart Grid-related activities, provided that the utility | 3 | | retains control of its grid and operations and may reject any | 4 | | programs, technologies, business models, and other Smart | 5 | | Grid-related activities that threaten the reliability, safety, | 6 | | security, or operations of its network, or that would threaten | 7 | | the security of customer-identifiable data in the judgment of | 8 | | the utility. The number of technologies and entities | 9 | | participating in the test bed at any time may be limited by the | 10 | | utility based on its determination of its ability to maintain a | 11 | | secure, safe, and reliable grid. | 12 | | (e) At a minimum, the test bed shall have the ability to | 13 | | receive live signals from PJM Interconnection LLC or other | 14 | | applicable regional transmission organization, the ability to | 15 | | test new applications in a utility scale environment (to | 16 | | include ramp rate regulations for distributed wind and solar | 17 | | resources), critical peak price response, and market-based | 18 | | power dispatch. | 19 | | (f) At the end of the fourth year of operation the test bed | 20 | | shall be subject to an independent evaluation to determine if | 21 | | the test bed is meeting the objectives of this Section or is | 22 | | likely to meet the objectives in the future. The evaluation | 23 | | shall include the performance of the utility as test bed | 24 | | operator. Subject to the findings, the utility and the trust or | 25 | | foundation established pursuant to Section 16-108.7 of this Act | 26 | | may choose to continue operating the test bed. |
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| 1 | | (g) The utility shall be entitled to recover all prudently | 2 | | incurred and reasonable costs associated with evaluation of | 3 | | proposals, engineering, construction, operation, and | 4 | | administration of the test bed through the performance-based | 5 | | formula rate tariff established pursuant to Section 16-108.5 of | 6 | | this Act. | 7 | | (h) The utility is authorized to charge fees to users of | 8 | | the test bed that shall recover the costs associated with the | 9 | | incremental direct costs to the utility associated with | 10 | | administration of the test bed, provided, however, that any | 11 | | such fees collected by the utility shall be used to offset the | 12 | | costs to be recovered pursuant to subsection (g) of this | 13 | | Section. | 14 | | (i) On a quarterly basis, the utility shall provide the | 15 | | trust or foundation established pursuant to Section 16-108.7 of | 16 | | this Act with a report summarizing test bed activities, | 17 | | customers, discoveries, and other information as shall be | 18 | | mutually deemed relevant. | 19 | | (j) To the extent practicable, the utility and trust or | 20 | | foundation established pursuant to Section 16-108.7 of this Act | 21 | | shall jointly pursue resources that enhance the capabilities | 22 | | and capacity of the test bed. | 23 | | (k) If Section 16-108.5 of this Act becomes inoperative | 24 | | with respect to one or more participating utilities as set | 25 | | forth in subsection (g) or (h) of that Section, then Sections | 26 | | 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act shall |
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| 1 | | become inoperative as to each affected utility and its service | 2 | | area on the same date as Section 16-108.5 become inoperative.
| 3 | | (Source: P.A. 97-616, eff. 10-26-11.)
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