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90_HB0361 SEE INDEX Amends the Public Utilities Act. Authorizes the production and sale electricity on a competitive basis. Provides that the Commence Commission may modify and waive rules. Provides for the sale or lease of generation facilities without Commission approval. Prohibits the Commission from ordering the construction of additional generating capacity. Phases in competitive services beginning on or before January 1, 2000 for retail customers using 11 or more megawatts of electricity per month. Provides for the phase-in of competitive services for smaller and residential users by January 1, 2005. Provides that an electric utility may recover transition costs. Effective June 1, 1997. LRB9000199JSgc LRB9000199JSgc 1 AN ACT to amend the Public Utilities Act in relation to 2 competitive services. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Public Utilities Act is amended by 6 changing Sections 1-102, 5-104, 6-102, 7-101, 7-102, 8-503, 7 8-510, 9-220, 10-103, and 10-113, adding Sections 4-403, 8 4-404, 7-102.5, and 10-114, and adding Article XVI as 9 follows: 10 (220 ILCS 5/1-102) (from Ch. 111 2/3, par. 1-102) 11 Sec. 1-102. Findings and Intent. The General Assembly 12 finds that the health, welfare and prosperity of all Illinois 13 citizens require the provision of adequate, efficient, 14 reliable, environmentally safe and cost-effectiveleast-cost15 public utility services at priceswhich accurately reflect16the long-term cost of such services andwhich are equitable 17 to all citizens and that competition should be permitted to 18 function, and be used, where consistent with the public 19 interest, to determine the price, variety, and availability 20 of utility services and that the economic burdens of 21 regulation should be reduced to the extent possible. It is 22 therefore declared to be the policy of the State that public 23 utilities shall continue to be regulated as set forth herein 24 and in Article XVIeffectively and comprehensively. It is 25 further declared that the goals and objectives of such 26 regulation shall be to ensure 27 (a) Efficiency: the provision of reliable and 28 cost-effective energy servicesat the least possible cost29 to the citizens of the State; in such manner that: 30 (i) physical, human and financial resources 31 are allocated efficiently; -2- LRB9000199JSgc 1 (ii) utilities are provided with the 2 flexibility necessary to participate effectively in 3 markets in which there is competition;all supply4and demand options are considered and evaluated5using comparable terms and methods in order to6determine how utilities shall meet their customers'7demands for public utility services at the least8cost;9 (iii) utilities are allowed a sufficient 10 return on investment so as to enable them to attract 11 capital in financial markets at competitive rates 12 and encourage the development of and prudent 13 investment in the facilities necessary to provide 14 utility service; 15 (iv) regulatory policies and procedures are 16 reviewed on an ongoing basis to ensure that such 17 policies and procedures benefit the public and are 18 cost-effectivetariff rates for the sale of various19public utility services are authorized such that20they accurately reflect the cost of delivering those21services and allow utilities to recover the total22costs prudently and reasonably incurred; 23 (v) differences in typevariation in costs by24customer classand time of use areistaken into 25 consideration in authorizing ratesfor each class. 26 (b) Environmental Quality: the protection of the 27 environmentfrom the adverse external costs of public28utility servicesso that 29 (i) environmental costs of proposed actions 30 having a significant impact on the environment and 31 the environmental impact of the alternatives are 32 identified, documented and considered in the 33 regulatory process; 34 (ii) the prudently and reasonably incurred -3- LRB9000199JSgc 1 costs of environmental controls are recovered. 2 (c) Reliability: the ability of utilities to 3 provide consumers with public utility services under 4 varying demand conditions in such manner that suppliers 5 of public utility services are able to provide service at 6 varying levels of economic reliability and that the 7 introduction of competition not threaten the utilities' 8 ability to perform the functions that only they can 9 providegiving appropriate consideration to the costs10likely to be incurred as a result of service11interruptions, and to the costs of increasing or12maintaining current levels of reliability consistent with13commitments to consumers. 14 (d) Equity: the fair treatment of consumers and 15 investors in order that 16 (i) the public health, safety and welfare 17 shall be protected; 18 (ii) the application of rates is based on 19 public understandability and acceptance of the 20 reasonableness of the rate structure and level; 21 (iii) (blank);the cost of supplying public22utility services is allocated to those who cause the23costs to be incurred;24 (iv) if factors other than cost of service are 25 considered in regulatory decisions, the rationale 26 for these actions is set forth; 27 (v) regulation allows for orderly transition 28 periods to accommodate changes in public utility 29 service markets; 30 (vi) regulation does not result in undue or 31 sustained adverse impact on utility earnings and 32 utilities are allowed an adequate opportunity to 33 recover the total costs prudently and reasonably 34 incurred in providing utility service; -4- LRB9000199JSgc 1 (vii) the impacts of regulatory actions on all 2 sectors of the State are carefully weighed; 3 (viii) the rates for utility services are 4 affordable and therefore preserve the availability 5 of such services to all citizens. 6 It is further declared to be the policy of the State that 7 this Act shall not apply in relation to motor carriers and 8 rail carriers as defined in the Illinois Commercial 9 Transportation Law, or to the Commission in the regulation of 10 such carriers. 11 (Source: P.A. 89-42, eff. 1-1-96.) 12 (220 ILCS 5/4-403 new) 13 Sec. 4-403. Waivers and modifications of rules. 14 (a) Upon petition of a public utility, the Commission is 15 authorized to waive or modify the application of its rules 16 and regulations to the public utility when it finds that the 17 waiver or modification will reduce the economic burdens of 18 regulation and that application of the rule or regulation in 19 the circumstances in which the waiver or modification is 20 requested is not necessary to protect the consumers of the 21 services provided by that utility. 22 (b) Upon petition, the Commission shall also grant such 23 waiver or modification to another public utility providing 24 the same type of utility services, unless the Commission 25 finds, following a hearing, that application of such rule or 26 regulation in the circumstances in which the waiver or 27 modification is requested is necessary to protect the 28 consumers of the services provided by that utility; 29 provided, however, that if no objection is filed by any 30 party or the staff of the Commission within 30 days 31 following the date the public utility's notice was published 32 pursuant to subsection (c) of this Section, the Commission 33 shall issue an order granting the public utility's petition. -5- LRB9000199JSgc 1 If a timely objection is filed, the Commission shall hold a 2 hearing and shall issue its order within 120 days following 3 the date the public utility's notice was published pursuant 4 to subsection (c) of this Section. 5 (c) A public utility filing a petition pursuant to 6 subsection (a) or (b) of this Section shall publish notice of 7 its petition in the official State newspaper within 10 days 8 following the date of the filing. 9 (220 ILCS 5/4-404 new) 10 Sec. 4-404. Protection of confidential and proprietary 11 information. The Commission shall provide adequate 12 protection for confidential, proprietary and commercially 13 sensitive information furnished, delivered or filed by any 14 person, corporation or other entity. 15 (220 ILCS 5/5-104) (from Ch. 111 2/3, par. 5-104) 16 Sec. 5-104. Depreciation accounts. 17 (a) The Commission shall have power, after hearing, to 18 require any or all public utilities to keep such accounts as 19 will adequately reflect depreciation, obsolescence and the 20 progress of the arts. The Commission may, from time to time, 21 ascertain and determine and by order fix the proper and 22 adequate rate of depreciation of the several classes of 23 property for each public utility; and each public utility 24 shall thereafter, absent further order of the Commission, 25 conform its depreciation accounts to the rates so 26 ascertained, determined, and fixed until at least the end of 27 the first full calendar year following the date of the 28 determination. 29 (b) A public utility may from time to time alter the 30 annual rates of depreciation, which for purposes of this 31 subsection (b) and subsection (c) shall include -6- LRB9000199JSgc 1 amortization, that it applies to its several classes of 2 assets so long as the rates are consistent with generally 3 accepted accounting principles. The public utility shall 4 file a statement with the Commission which shall set forth 5 the new rates of depreciation and which shall contain a 6 certification by an independent certified public accountant 7 that the new rates of depreciation are consistent with 8 generally accepted accounting principles. Upon the filing of 9 such statement, the new rates of depreciation shall be deemed 10 to be approved by the Commission as the rates of 11 depreciation to be applied thereafter by the public utility 12 as though an order had been entered pursuant to subsection 13 (a). 14 (c) In any proceeding conducted pursuant to Section 15 9-201 or 9-202 to set the public utility's rates for 16 service, the Commission may determine not to use, in 17 determining the depreciation expense component of the public 18 utility's rates for service, the rates of depreciation 19 established pursuant to subsection (b), if the Commission in 20 that proceeding finds based on the record that different 21 rates of depreciation are required to adequately reflect 22 depreciation, obsolescence and the progress of the arts, and 23 fixes by order and uses for purposes of that proceeding new 24 rates of depreciation to be thereafter employed by the 25 public utility until the end of the first full calendar year 26 following the date of the determination and thereafter until 27 altered in accordance with subsection (a) or (b) of this 28 Section. 29 (Source: P.A. 84-617.) 30 (220 ILCS 5/6-102) (from Ch. 111 2/3, par. 6-102) 31 Sec. 6-102. Authorization of issues of stock. 32 (a) Subject to the provisions of this Act and of the 33 order of the Commission issued as provided in this Act, a -7- LRB9000199JSgc 1 public utility may issue stocks and stock certificates, and 2 bonds, notes and other evidences of indebtedness payable at 3 periods of more than 12 months after the date thereof for any 4 lawful purpose. However, such public utility shall first have 5 secured from the Commission an order authorizing such issue 6 and stating the amount thereof and the purpose or purposes to 7 which the issue or the proceeds thereof are to be applied, 8 and that in the opinion of the Commission, the money, 9 property or labor to be procured or paid for by such issue is 10 reasonably required for the purpose or purposes specified in 11 the order. 12 (b) The provisions of this subsection (b) shall apply 13 only to (1) any issuances of stock in a cumulative amount, 14 exclusive of any issuances referred to in item (3), that are 15 10% or more in a calendar year or 20% or more in a 24-month 16 period of the total common stockholders' equity or of the 17 total amount of preferred stock outstanding, as the case may 18 be, of the public utility, and (2) to any issuances of 19 bonds, notes, or other evidences of indebtedness in a 20 cumulative principal amount, exclusive of any issuances 21 referred to in item (3), that are 10% or more in a calendar 22 year and 20% or more in a 24-month period of the aggregate 23 principal amount of bonds, notes, and other evidences of 24 indebtedness of the public utility outstanding, all as of the 25 date of the issuance, but shall not apply to (3) any 26 issuances of stock or of bonds, notes, or other evidences of 27 indebtedness 90% or more of the proceeds of which are to be 28 used by the public utility for purposes of refunding, 29 redeeming, or refinancing outstanding issues of stock, 30 bonds, notes, or other evidences of indebtedness. To enable 31 it to determine whether it will issue thesuchorder required 32 by subsection (a) of this Section, the Commission mayshall33 hold a hearing and may make such additional inquiry or 34 investigation, and examine such witnesses, books, papers, -8- LRB9000199JSgc 1 accounts, documents and contracts and require the filing of 2 such data as it may deem of assistance. The public utility 3 may be required by the Commission to disclose every interest 4 of the directors of such public utility in any transaction 5 under investigation. The Commission shall have power to 6 investigate all such transactions and to inquire into the 7 good faith thereof, to examine books, papers, accounts, 8 documents and contracts of public utilities, construction or 9 other companies or of firms or individuals with whom the 10 public utility shall have had financial transactions, for the 11 purpose of enabling it to verify any statements furnished, 12 and to examine into the actual value of property acquired by 13 or services rendered to such public utility. Before issuing 14 its order, the Commission, when it is deemed necessary by the 15 Commission, shall make an adequate physical valuation of all 16 property of the public utility, but a valuation already made 17 under proper public supervision may be adopted, either in 18 whole or in part, at the discretion of the Commission; and 19 shall also examine all previously authorized or outstanding 20 securities of the public utility, and fixed charges attached 21 thereto. A statement of the results of such physical 22 valuation, and a statement of the character of all 23 outstanding securities, together with the conditions under 24 which they are held, shall be included in the order. The 25 Commission may require that such information or such part 26 thereof as it thinks proper, shall appear upon the stock, 27 stock certificate, bond, note or other evidence of 28 indebtedness authorized by its order. The Commission may by 29 its order grant permission for the issue of such stock 30 certificates, or bonds, notes or other evidences of 31 indebtedness in the amount applied for, or in a lesser 32 amount, or not at all, and may attach to the exercise of its 33 permission such condition or conditions as it may deem 34 reasonable and necessary. Nothing in this Section shall -9- LRB9000199JSgc 1 prevent a public utility from seeking, nor the Commission 2 from approving, a shelf registration plan for issuing 3 securities over a reasonable period in accordance with 4 regulations established by the United States Securities and 5 Exchange Commission. Any securities issued pursuant to an 6 approved shelf registration plan need not be further approved 7 by the Commission so long as they are in compliance with the 8 approved shelf registration plan. The Commission shall have 9 the power to refuse its approval of applications to issue 10 securities, in whole or in part, upon a finding that the 11 issue of such securities would be contrary to public 12 interest. The Commission may also require the public utility 13 to compile for the information of its shareholders such facts 14 in regard to its financial transactions, in such form as the 15 Commission may direct. 16 No public utility shall, without the consent of the 17 Commission, apply the issue of any stock or stock 18 certificates, or bond, note or other evidence of 19 indebtedness, which was issued pursuant to an order of the 20 Commission entered pursuant to this subsection (b), or any 21 part thereof, or any proceeds thereof, to any purpose not 22 specified in the Commission's order or to any purpose 23 specified in the Commission's order in excess of the amount 24 authorized for such purpose; or issue or dispose of the same 25 on any terms less favorable than those specified in such 26 order, or a modification thereof. The Commission shall have 27 the power to require public utilities to account for the 28 disposition of the proceeds of all sales of stocks and stock 29 certificates, and bonds, notes and other evidences of 30 indebtedness, which were issued pursuant to an order of the 31 Commission entered pursuant to this subsection (b), in such 32 form and detail as it may deem advisable, and to establish 33 such rules and regulations as it may deem reasonable and 34 necessary to insure the disposition of such proceeds for the -10- LRB9000199JSgc 1 purpose or purposes specified in its order. 2 (c) A public utility may issue notes, for proper 3 purposes, and not in violation of any provision of this Act 4 or any other Act, payable at periods of not more than 12 5 months after the date of issuance of the same, without the 6 consent of the Commission; but no such note shall, in whole 7 or in part, be renewed or be refunded from the proceeds of 8 any other such note or evidence of indebtedness from time to 9 time without the consent of the Commission for an aggregate 10 period of longer than two years. 11 (d) Any issuance of stock or of bonds, notes, or other 12 evidences of indebtedness, other than issuances of notes 13 pursuant to subsection (c) of this Section, which is not 14 subject to subsection (b) of this Section, shall be regulated 15 by the Commission as follows: the public utility shall file 16 with the Commission, at least 15 days before the date of the 17 issuance, an informational statement setting forth the type 18 and amount of the issue and the purpose or purposes to which 19 the issue or the proceeds thereof are to be applied. Prior 20 to the date of the issuance specified in the public 21 utility's filing, the Commission, if it finds that the 22 issuance is not subject to subsection (b) of this Section, 23 shall issue a written order in conformance with subsection 24 (a) of this Section authorizing the issuance. 25 Notwithstanding any other provisions of this Act, the 26 Commission may delegate its authority to enter the order 27 required by this subsection (d) to a hearing examiner. 28 (e) The Commission shall have no power to authorize the 29 capitalization of the right to be a corporation, or to 30 authorize the capitalization of any franchise, license, or 31 permit whatsoever or the right to own, operate or enjoy any 32 such franchise, license, or permit, in excess of the amount 33 (exclusive of any tax or annual charge) actually paid to the 34 State or to a political subdivision thereof as the -11- LRB9000199JSgc 1 consideration for the grant of such franchise, license, 2 permit or right; nor shall any contract for consolidation or 3 lease be capitalized, nor shall any public utility hereafter 4 issue any bonds, notes or other evidences of indebtedness 5 against or as a lien, upon any contract for consolidation or 6 merger. 7 (f) The provisions of this Section shall not apply to 8 public utilities which are not corporations duly incorporated 9 under the laws of this State to the extent that any such 10 public utility may issue stock, bonds, notes or other 11 evidences of indebtedness not directly or indirectly 12 constituting or creating a lien or charge on, or right to 13 profits from, any property used or useful in rendering 14 service within this State. Nothing in this Section or in 15 Section 6-104 of this Act shall be construed to require a 16 common carrier by railroad subject to Part I of the 17 Interstate Commerce Act, being part of an Act of the 49th 18 Congress of the United States entitled "An Act to Regulate 19 Commerce", as amended, to secure from the Commission 20 authority to issue or execute or deliver any conditional 21 sales contract or similar contract or instrument reserving or 22 retaining title in the seller for all or part of the purchase 23 price of equipment or property used or to be used for or in 24 connection with the transportation of persons or property. 25 (Source: P.A. 84-617.) 26 (220 ILCS 5/7-101) (from Ch. 111 2/3, par. 7-101) 27 Sec. 7-101. Transactions with affiliated interests. 28 (1) The Commission shall have jurisdiction over holders 29 of the voting capital stock of all public utilities under the 30 jurisdiction of the Commission to such extent as may be 31 necessary to enable the Commission to require the disclosure 32 of the identity in respective interests of every owner of any 33 substantial interest in such voting capital stocks. One per -12- LRB9000199JSgc 1 centum or more is a substantial interest, within the meaning 2 of this subdivision. 3 (2) The Commission shall have jurisdiction over 4 affiliated interests having transactions, other than 5 ownership of stock and receipt of dividends thereon, with 6 public utilities under the jurisdiction of the Commission, to 7 the extent of access to all accounts and records of such 8 affiliated interests relating to such transactions, including 9 access to accounts and records of joint or general expenses 10 with the public utility, any portion of which is relatedmay11be applicableto such transactions; and to the extent of 12 authority to require such reports with respect to such 13 transactions to be submitted by such affiliated interests, as 14 the Commission may prescribe; provided, however, that prior 15 to requesting such access or reports from the affiliated 16 interest, the Commission shall first seek to obtain the 17 information that would be included in such accounts, records 18 or reports from the public utility. The Commission shall 19 not have access to any accounts and records of, or require 20 any reports from, an affiliated interest that are not 21 related to its transactions with the public utility. 22 Nothing in this paragraph shall limit the authority of the 23 Commission otherwise provided under this Act to have access 24 to accounts and records of, or to require reports from, the 25 public utility or to prescribe guidelines that the public 26 utility must follow in allocating costs to transactions with 27 affiliated interests. For the purpose of this Section, the 28 phrase "affiliated interests" means: 29 (a) Every corporation and person owning or holding, 30 directly or indirectly, 10% or more of the voting capital 31 stock of such public utility; 32 (b) Every corporation and person in any chain of 33 successive ownership of 10% or more of voting capital stock; 34 (c) Every corporation, 10% or more of whose voting -13- LRB9000199JSgc 1 capital stock is owned by any person or corporation owning 2 10% or more of the voting capital stock of such public 3 utility, or by any person or corporation in any such chain of 4 successive ownership of 10% or more of voting capital stock; 5 (d) Every corporation, 10% or more of whose voting 6 securities is owned, directly or indirectly by such public 7 utility; 8 (e) Every person who is an elective officer or director 9 of such public utility or of any corporation in any chain of 10 successive ownership of 10% or more of voting capital stock; 11 (f) Every corporation which has one or more elective 12 officers or one or more directors in common with such public 13 utility; 14 (g) Every corporation or person which the Commission may 15 determine as a matter of fact after investigation and hearing 16 is actually exercising any substantial influence over the 17 policies and actions of such public utility even though such 18 influence is not based upon stock holding, stockholders, 19 directors or officers to the extent specified in this 20 Section; 21 (h) Every person or corporation who or which the 22 Commission may determine as a matter of fact after 23 investigation and hearing is actually exercising such 24 substantial influence over the policies and actions of such 25 public utility in conjunction with one or more other 26 corporations or persons with which or whom they are related 27 by ownership or blood relationship or by action in concert 28 that together they are affiliated with such public utility 29 within the meaning of this Section even though no one of them 30 alone is so affiliated. 31 No such person or corporation is affiliated within the 32 meaning of this Section however, if such person or 33 corporation is otherwise subject to the jurisdiction of the 34 Commission or such person or corporation has not had -14- LRB9000199JSgc 1 transactions or dealings other than the holding of stock and 2 the receipt of dividends thereon with such public utility 3 during the 2 year period next preceding. 4 (3) No management, construction, engineering, supply, 5 financial or similar contract and no contract or arrangement 6 for the purchase, sale, lease, or exchange of any property or 7 for the furnishing of any service, property or thing, 8 hereafter made with any affiliated interest, as hereinbefore 9 defined, shall be effective unless it has first been filed 10 with and consented to by the Commission or is exempted in 11 accordance with the provisions of this Section or of Section 12 7-102.5, 16-111, or 16-117 of this Act. The Commission may 13 condition such approval in such manner as it may deem 14 necessary to safeguard the public interest. If it be found 15 by the Commission, after investigation and a hearing, that 16 any such contract or arrangement is not in the public 17 interest, the Commission may disapprove such contract or 18 arrangement. Every contract or arrangement not consented to 19 or excepted by the Commission as provided for in this Section 20 is void. 21 The consent to, or exemption or waiver of consent to, any 22 contract or arrangement under this Section or Section 23 7-102.5, 16-111, or 16-117as required above, does not 24 constitute approval of payments thereunder for the purpose of 25 computing expense of operation in any rate proceeding. 26 However, the Commission shall not require a public utility to 27 make purchases at prices exceeding the prices offered by an 28 affiliated interest, and the Commission shall not be required 29 to disapprove or disallow, solely on the ground that such 30 payments yield the affiliated interest a return or rate of 31 return in excess of that allowed the public utility, any 32 portion of payments for purchases from an affiliated 33 interest. 34 (4) The Commission may by general rules applicable alike -15- LRB9000199JSgc 1 to all public utilities affected thereby waive the filing and 2 necessity for approval of contracts and arrangements 3 described in subparagraph (3) of this Section in cases of (a) 4 contracts or arrangements made in the ordinary course of 5 business for the employment of officers or employees; (b) 6 contracts or arrangements made in the ordinary course of 7 business for the purchase of services, supplies, or other 8 personal property at prices not exceeding the standard or 9 prevailing market prices, or at prices or rates fixed 10 pursuant to law; (c) contracts or arrangements where the 11 total obligation to be incurred under the contract or 12 arrangementthereunderdoes not exceed the lesser of (i) 13 $5,000,000 or (ii) 2% of the public utility's receipts from 14 all tariffed services (as defined in Article XVI) in the 15 preceding calendar year$500; (d) the temporary leasing, 16 lending or interchanging of equipment in the ordinary course 17 of business or in case of an emergency; and (e) contracts 18 made by a public utility with a person or corporation whose 19 bid is the most favorable to the public utility, as 20 ascertained by competitive biddingunder such rules as may be21prescribed by the Commission. If the Commission, after a 22 hearing, finds that any public utility is abusing or has 23 abused such general rule and thereby is evading compliance 24 with the standard established herein, the Commission may 25 require such public utility to thereafter file and receive 26 the Commission's approval upon all such transactions, but 27 that general rule shall remain in full force and effect as to 28 all other public utilities. 29 (Source: P.A. 84-617.) 30 (220 ILCS 5/7-102) (from Ch. 111 2/3, par. 7-102) 31 Sec. 7-102. Transactions requiring Commission approval. 32 Unless the consent and approval of the Commission is first 33 obtained or unless such approval is waived by the Commission -16- LRB9000199JSgc 1 or is exempted in accordance with the provisions of this 2 Section or of any other Section of this Act: 3 (a) No 2 or more public utilities may enter into 4 contracts with each other that will enable such public 5 utilities to operate their lines or plants in connection with 6 each other; 7 (b) No public utility may purchase, lease, or in any 8 other manner acquire control, direct or indirect, over the 9 franchises, licenses, permits, plants, equipment, business or 10 other property of any other public utility; 11 (c) No public utility may assign, transfer, lease, 12 mortgage, sell (by option or otherwise), or otherwise dispose 13 of or encumber the whole or any part of its franchises, 14 licenses, permits, plant, equipment, business, or other 15 property, but the consent and approval of the Commission 16 shall not be required for the sale, lease, assignment or 17 transfer (1) by any public utility of any tangible personal 18 property which is not necessary or useful in the performance 19 of its duties to the public, or (2) by any railroad of any 20 real or tangible personal property; 21 (d) No public utility may by any means, direct or 22 indirect, merge or consolidate its franchises, licenses, 23 permits, plants, equipment, business or other property with 24 that of any other public utility; 25 (e) No public utility may purchase, acquire, take or 26 receive any stock, stock certificates, bonds, notes or other 27 evidences of indebtedness of any other public utility; 28 (f) No public utility may in any manner, directly or 29 indirectly, guarantee the performance of any contract or 30 other obligation of any other person, firm or corporation 31 whatsoever; 32 (g) No public utility may use, appropriate, or divert 33 any of its moneys, property or other resources in or to any 34 business or enterprise which is not, prior to such use, -17- LRB9000199JSgc 1 appropriation or diversion essentially and directly connected 2 with or a proper and necessary department or division of the 3 business of such public utility; provided that this 4 subsection shall not be construed as modifying subsections 5 (a) through (e) of this Section; and provided further that 6 the provision by a public utility engaged in furnishing 7 electric or gas service to the public of any product or 8 service that is related to the provision of, or customers' 9 use of, electric or gas service shall for this purpose be 10 deemed to be essentially and directly connected with the 11 business of the public utility. 12 (h) No public utility may, directly or indirectly, 13 invest, loan or advance, or permit to be invested, loaned or 14 advanced any of its moneys, property or other resources in, 15 for, in behalf of or to any other person, firm, trust, group, 16 association, company or corporation whatsoever, except that 17 no consent or approval by the Commission is necessary for the 18 purchase of stock in development credit corporations 19 organized under the Illinois Development Credit Corporation 20 Act, providing that no such purchase may be made hereunder 21 if, as a result of such purchase, the cumulative purchase 22 price of all such shares owned by the utility would exceed 23 one-fiftieth of one per cent of the utility's gross operating 24 revenue for the preceding calendar year. 25 (i) Any public utility may present to the Commission for 26 approval options or contracts to sell or lease real property, 27 notwithstanding that the value of the property under option 28 may have changed between the date of the option and the 29 subsequent date of sale or lease. If the options or contracts 30 are approved by the Commission, subsequent sales or leases in 31 conformance with those options or contracts may be made by 32 the public utility without any further action by the 33 Commission. If approval of the options or contracts is denied 34 by the Commission, the options or contracts are void and any -18- LRB9000199JSgc 1 consideration theretofore paid to the public utility must be 2 refunded within 30 days following disapproval of the 3 application. 4 The proceedings for obtaining the approval of the 5 Commission provided for it in this Section shall be as 6 follows: There shall be filed with the Commission a petition, 7 joint or otherwise, as the case may be, signed and verified 8 by the president, any vice president, secretary, treasurer, 9 comptroller, general manager, or chief engineer of the 10 respective companies, or by the person or company, as the 11 case may be, clearly setting forth the object and purposes 12 desired, and setting forth the full and complete terms of the 13 proposed assignment, transfer, lease, mortgage, purchase, 14 sale, merger, consolidation, contract or other transaction, 15 as the case may be. Upon the filing of such petition, the 16 Commission shall, if it deems necessary, fix a time and place 17 for the hearing thereon. After such hearing, or in case no 18 hearing is required, if the Commission is satisfied that such 19 petition should reasonably be granted, and that the public 20 will be convenienced thereby, the Commission shall make such 21 order in the premises as it may deem proper and as the 22 circumstances may require, attaching such conditions as it 23 may deem proper, and thereupon it shall be lawful to do the 24 things provided for in such order. The Commission shall 25 impose such conditions as will protect the interest of 26 minority and preferred stockholders. The filing of, and the 27 consent and approval of the Commission for, any assignment, 28 transfer, lease, mortgage, purchase, sale, merger, 29 consolidation, contract or other transaction by a public 30 utility with gross revenues in all jurisdictions of 31 $250,000,000 or more annually involving a sale price or 32 annual consideration in an amount of $5,000,000 or less 33 shall not be required. The Commission shall also have the 34 authority, on petition by a public utility with gross -19- LRB9000199JSgc 1 revenues in all jurisdictions of $250,000,000 or more 2 annually, to establish by order higher thresholds than the 3 foregoing for the requirement of approval of transactions by 4 the Commission pursuant to this Section for the public 5 utility, but no greater than 1% of the public utility's 6 average total gross utility plant in service in the case of 7 sale, assignment or acquisition of property, or 2.5% of the 8 public utility's total revenue in the case of other sales 9 price or annual consideration, in each case based on the 10 preceding calendar year, and subject to the power of the 11 Commission, after notice and hearing, to further revise those 12 thresholds at a later date. In addition to the foregoing, 13 the Commission shall have power by general rules applicable 14 alike to all public utilities affected thereby to waive the 15 filing and necessity for approval of the following: (a) sales 16 of property involvinga consideration of not more than17$300,000 for utilities with gross revenues in excess of18$50,000,000 annually anda consideration ofnot more than19 $100,000 or less forall otherutilities with gross revenues 20 in all jurisdictions of less than $250,000,000 annually; (b) 21 leases, easements and licenses involvinga consideration or22rental of not more than $30,000 per year for utilities with23gross revenues in excess of $50,000,000 annually anda 24 consideration or rental of not more than $10,000 per year for 25all otherutilities with gross revenues in all jurisdictions 26 of less than $250,000,000 annually; (c) leases of office 27 building space not required by the public utility in 28 rendering service to the public; (d) the temporary leasing, 29 lending or interchanging of equipment in the ordinary course 30 of business or in case of an emergency; and (e) 31 purchase-money mortgages given by a public utility in 32 connection with the purchase of tangible personal property 33 where the total obligation to be secured shall be payable 34 within a period ofnot exceedingone year or less. However, -20- LRB9000199JSgc 1 if the Commission, after a hearing, finds that any public 2 utility is abusing or has abused such general rule and 3 thereby is evading compliance with the standard established 4 herein, the Commission shall have power to require such 5 public utility to thereafter file and receive the 6 Commission's approval upon all such transactions as described 7 in this Section and not exempted pursuant to the first 8 sentence of this paragraph or to Section 7-102.5, 16-111, or 9 16-117 of this Act, but such general rule shall remain in 10 full force and effect as to all other public utilities. 11 Every assignment, transfer, lease, mortgage, sale or 12 other disposition or encumbrance of the whole or any part of 13 the franchises, licenses, permits, plant, equipment, business 14 or other property of any public utility, or any merger or 15 consolidation thereof, and every contract, purchase of stock, 16 or other transaction referred to in this Section and not 17 exempted, made otherwise than in accordance with an order of 18 the Commission authorizing the same, except as provided in 19 this Section, shall be void. The provisions of this Section 20 shall not apply to any transactions by or with a political 21 subdivision or municipal corporation of this State. 22 The provisions of this Section do not apply to the 23 purchase or sale of emission allowances created under and 24 defined in Title IV of the federal Clean Air Act Amendments 25 of 1990 (P.L. 101-549), as amended. 26 (Source: P.A. 88-604, eff. 9-1-94; 89-99, eff. 7-7-95.) 27 (220 ILCS 5/7-102.5 new) 28 Sec. 7-102.5. Sale or lease of generation facilities. 29 (a) On or before December 31, 1999, an electric utility 30 may, without obtaining approval of the Commission except as 31 provided in this Section and notwithstanding any other 32 Section of this Act that would require approval of the 33 Commission, sell or lease property, plant, and equipment -21- LRB9000199JSgc 1 used in the generation of electricity to a subsidiary of the 2 electric utility or to a subsidiary of the holding company 3 that owns the electric utility, hereinafter referred to as 4 the "transferee", after giving at least 14 days written 5 notice of the proposed transaction to the Commission, 6 provided that the electric utility includes the following in 7 its notice: 8 (1) proposed tariff sheets that eliminate the 9 electric utility's fuel adjustment clause, and adjust 10 the electric utility's base rates, as defined in Section 11 16-102 of this Act, in accordance with subsection (b) of 12 this Section, and supporting workpapers for that 13 adjustment; 14 (2) a certification that all regulatory approvals 15 for the sale or lease required under federal law, 16 including approval of the power purchase agreement 17 referred to in subsection (c) of this Section, have been 18 obtained or can reasonably be expected to be obtained 19 following consummation of the sale or lease authorized 20 by this Section; 21 (3) a complete statement of the entries which the 22 electric utility will make on its books and records of 23 account to implement the sale or lease of property, 24 plant, and equipment; and 25 (4) an irrevocable commitment by the electric 26 utility that it will not, as a result of the 27 transaction, impose any stranded cost charges that it 28 might otherwise be allowed to charge retail customers 29 under federal law or increase the transition charges 30 that it is otherwise entitled to collect under Article 31 XVI. 32 (b) The Commission shall review and shall by order 33 approve, or approve as modified, the proposed tariff sheets 34 referred to in item (1) of subsection (a) of this Section -22- LRB9000199JSgc 1 within 60 days following the electric utility's filing. The 2 Commission shall approve the proposed tariff sheets if it 3 finds that, based on actual customer usage for the most 4 recent calendar year preceding the order date, the proposed 5 tariffs would have resulted in the same jurisdictional 6 revenues to the electric utility as it actually received 7 during that year. The Commission may by its order modify 8 the proposed tariff sheets only to the extent necessary to 9 achieve the level of jurisdictional revenue described in 10 this subsection. The Commission's order shall provide for 11 any reconciliation of power supply costs and associated 12 revenues necessary through the date that the electric 13 utility's fuel adjustment clause is eliminated. The electric 14 utility shall not file proposed tariff sheets seeking, or 15 otherwise petition the Commission for, reinstatement or 16 adoption of a fuel adjustment clause until the expiration of 17 the power purchase agreement referred to in subsection (c) 18 or any successor agreements, and in no event prior to 19 January 1, 2005. 20 (c) The electric utility shall be entitled, without 21 Commission review or approval, to purchase from the 22 transferee capacity, power, and electricity of or produced 23 by the transferred property, plant, and equipment, or 24 substitute capacity, power, or electricity, in the amounts 25 and at the rates, terms and conditions provided in a power 26 purchase agreement which shall have been approved or allowed 27 to become effective by the Federal Energy Regulatory 28 Commission. The amounts, rates, terms and conditions in the 29 power purchase agreement shall not be subject to 30 disallowance or modification by the Commission in any 31 proceeding to set the electric utility's rates so long as the 32 electric utility does not have a fuel adjustment clause in 33 effect. 34 (d) Notwithstanding the operation of any other Section -23- LRB9000199JSgc 1 of this amendatory Act of 1997, the provisions of 2 subsections (a), (b), (c), (d), (e), and (f) of Section 3 16-111 added to this Act by this amendatory Act of 1997 4 shall be applicable to any electric utility that has sold or 5 leased property, plant, and equipment used in the generation 6 of electricity pursuant to this Section. 7 (e) Other than those approvals expressly provided for in 8 this Section, the electric utility shall not be required to 9 obtain the approval of the Commission for the contracts, 10 agreements and transactions specified in this Section. 11 (f) The transferee shall not, as a result of the 12 contracts, agreements, and transactions specified in this 13 Section, be deemed a "public utility" as defined in Section 14 3-105 of this Act. 15 (g) Nothing in this Section shall require an electric 16 utility to use the procedures specified in this Section to 17 sell or lease property, plant, or equipment used in the 18 generation of electricity, or any portion thereof, to a 19 subsidiary of the electric utility, to a subsidiary of a 20 holding company owning the electric utility, or to any other 21 entity. Any other procedure available under this Act may, 22 at the electric utility's election, be used for such a sale 23 or lease. 24 (h) Nothing in this Section shall change any requirement 25 under the jurisdiction of the Illinois Department of Nuclear 26 Safety including, but not limited to, the payment of fees. 27 (220 ILCS 5/8-503) (from Ch. 111 2/3, par. 8-503) 28 Sec. 8-503. Whenever the Commission, after a hearing, 29 shall find that additions, extensions, repairs or 30 improvements to, or changes in, the existing plant, 31 equipment, apparatus, facilities or other physical property 32 of any public utility or of any 2twoor more public 33 utilities are necessary and ought reasonably to be made or -24- LRB9000199JSgc 1 that a new structure or structures is or are necessary and 2 should be erected, to promote the security or convenience of 3 its employees or the public, or in any other way to secure 4 adequate service or facilities, the Commission shall make and 5 serve an order authorizing or directing that such additions, 6 extensions, repairs, improvements or changes be made, or such 7 structure or structures be erected at the location, in the 8 manner and within the time specified in said order; provided, 9 however, that the Commission shall have no authority to 10 order the construction, addition, or extension of any 11 electric generating plant unless the public utility requests 12 a certificate for the construction of the plant pursuant to 13 Section 8-406 and in conjunction with the request also 14 requests the entry of an order under this Section. If any 15 additions, extensions, repairs, improvements or changes, or 16 any new structure or structures, which the Commission has 17 authorized or ordered to be erected, require joint action by 18 2twoor more public utilities, the Commission shall notify 19 the said public utilities that such additions, extensions, 20 repairs, improvements or changes or new structure or 21 structures have been authorized or ordered and that the same 22 shall be made at the joint cost whereupon the said public 23 utilities shall have such reasonable time as the Commission 24 may grant within which to agree upon the apportionment or 25 division of cost of such additions, extensions, repairs, 26 improvements or changes or new structure or structures, which 27 each shall bear. If at the expiration of such time such 28 public utilities shall fail to file with the Commission a 29 statement that an agreement has been made for a division or 30 apportionment of the cost or expense of such additions, 31 extensions, repairs, improvements or changes, or new 32 structure or structures, the Commission shall have authority, 33 after further hearing, to make an order fixing the proportion 34 of such cost or expense to be borne by each public utility -25- LRB9000199JSgc 1 and the manner in which the same shall be paid or secured. 2 Nothing in this Act shall prevent the Commission, upon 3 its own motion or upon petition, from ordering, after a 4 hearing, the extension, construction, connection or 5 interconnection of plant, equipment, pipe, line, facilities 6 or other physical property of a public utility in whatever 7 configuration the Commission finds necessary to ensure that 8 natural gas is made available to consumers at no increased 9 cost to the customers of the utility supplying the gas. 10 Whenever the Commission finds, after a hearing, that the 11 public convenience or necessity requires it, the Commission 12 may order public utilities subject to its jurisdiction to 13 work jointly (1) for the purpose of purchasing and 14 distributing natural gas or gas substitutes, provided it 15 shall not increase the cost of gas to the customers of the 16 participating utilities, or (2) for any other reasonable 17 purpose. 18 (Source: P.A. 84-617.) 19 (220 ILCS 5/8-510) (from Ch. 111 2/3, par. 8-510) 20 Sec. 8-510. Land surveys. For the purpose of making land 21 surveys, any public utility that has been granted a 22 certificate of public convenience and necessity by, or 23 received an order under Section 8-503 of this Act from, the 24 Commission may, 30 days after providing written notice to the 25 owner thereof by registered mail, enter upon the property of 26 any owner who has refused permission for entrance upon that 27 property, but subject to responsibility for all damages which 28 may be inflicted thereby. 29 (Source: P.A. 84-617.) 30 (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220) 31 Sec. 9-220. Rate changes based on in fuel costs. 32 (a) Notwithstanding the provisions of Section 9-201, the -26- LRB9000199JSgc 1 Commission may authorize the increase or decrease of rates 2 and charges based upon changes in the cost of fuel used in 3 the generation or production of electric power, changes in 4 the cost of purchased power, or changes in the cost of 5 purchased gas through the application of fuel adjustment 6 clauses or purchased gas adjustment clauses. The Commission 7 may also authorize the increase or decrease of rates and 8 charges based upon expenditures or revenues resulting from 9 the purchase or sale of emission allowances created under the 10 federal Clean Air Act Amendments of 1990,as defined in11Section 8-402.1,through such fuel adjustment clauses, as a 12 cost of fuel. For the purposes of this paragraph, cost of 13 fuel used in the generation or production of electric power 14 shall include the amount of any fees paid by the utility for 15 the implementation and operation of a process for the 16 desulfurization of the flue gas when burning high sulfur coal 17 at any location within the State of Illinois irrespective of 18 the attainment status designation of such location, except19for any fees or costs related to a service contract which is20part of a utility's Clean Air Act compliance plan approved21pursuant to Section 8-402.1, to the extent that recovery of22comparable costs would not be permitted under this Section if23incurred directly by a utility owning and operating such a24facility; but shall not include transportation costs of coal 25 (i) except to the extent that for contracts entered into on 26 and after the effective date of this amendatory Act of 1997, 27 the cost of the coal, including transportation costs, 28 constitutes the lowest cost for adequate and reliable fuel 29 supply reasonably available to the public utility in 30 comparison to the cost, including transportation costs, of 31 other adequate and reliable sources of fuel supply 32 reasonably available to the public utility, or (ii) except as 33 otherwise provided in the next 3 sentences of this paragraph. 34 Such costs of fuel shall, when requested by a utility or at -27- LRB9000199JSgc 1 the conclusion of the utility's next general electric rate 2 proceeding, whichever shall first occur, include 3 transportation costs of coal purchased under existing coal 4 purchase contracts. For purposes of this paragraph "existing 5 coal purchase contracts" means contracts for the purchase of 6 coal in effect on the effective date of this amendatory Act 7 of 1991, as such contracts may thereafter be amended, but 8 only to the extent that any such amendment does not increase 9 the aggregate quantity of coal to be purchased under such 10 contract. Nothing herein shall authorize an electric utility 11 to recover through its fuel adjustment clause any amounts of 12 transportation costs of coal that were included in the 13 revenue requirement used to set base rates in its most recent 14 general rate proceeding. Cost shall be based upon uniformly 15 applied accounting principles. Annually, the Commission shall 16 initiate public hearings to determine whether the clauses 17 reflect actual costs of fuel, gas, power, or coal 18 transportation purchased to determine whether such purchases 19 were prudent, and to reconcile any amounts collected with the 20 actual costs of fuel, power, gas, or coal transportation 21 prudently purchased. In each such proceeding, the burden of 22 proof shall be upon the utility to establish the prudence 23prudencyof its cost of fuel, power, gas, or coal 24 transportation purchases and costs. 25 (b) A public utility providing electric service may at 26 any time during the mandatory transition period file with 27 the Commission proposed tariff sheets that eliminate the 28 public utility's fuel adjustment clause and adjust the 29 public utility's base rate tariffs to provide for recovery 30 of the power supply costs that would have been recovered 31 under the clause. Notwithstanding any contrary or 32 inconsistent provisions in Section 9-201 of this Act, in 33 subsection (a), of this Section, or in any rules or 34 regulations promulgated by the Commission pursuant to -28- LRB9000199JSgc 1 subsection (e) of this Section, the Commission shall review 2 and shall by order approve, or approve as modified, the 3 proposed tariff sheets on the basis and within the time 4 period specified in subsection (b) of Section 7-102.5 of 5 this Act. During the 5 years following the date of the 6 Commission's order, but in any event no earlier than January 7 1, 2005, a public utility whose fuel adjustment clause has 8 been eliminated pursuant to this subsection shall not file 9 proposed tariff sheets seeking, or otherwise petition the 10 Commission for, reinstatement of a fuel adjustment clause. 11 (c) Notwithstanding any contrary or inconsistent 12 provisions in Section 9-201 of this Act, in subsection (a) of 13 this Section, or in any rules or regulations promulgated by 14 the Commission pursuant to subsection (e) of this Section, a 15 public utility providing electric service may at any time 16 during the mandatory transition period file with the 17 Commission proposed tariff sheets that establish the rate 18 per kilowatt-hour to be applied pursuant to the public 19 utility's fuel adjustment clause at the average value for 20 such rate during the preceding 12 months, provided that such 21 average rate results in a credit to customers' bills, without 22 making any revisions to the public utility's base rate 23 tariffs. The proposed tariff sheets shall establish the 24 fuel adjustment rate for a specific time period of at least 25 3 years but not more than 5 years, provided that the terms 26 and conditions for any reinstatement earlier than 5 years 27 shall be set forth in the proposed tariff sheets and subject 28 to modification or approval by the Commission. The 29 Commission shall review and shall by order approve the 30 proposed tariff sheets if it finds that the requirements of 31 this subsection are met. The Commission shall not conduct 32 the hearings specified in the last 2 sentences of subsection 33 (a) of this Section for the utility for the period that the 34 factor established pursuant to this subsection is in effect. -29- LRB9000199JSgc 1 (d) A public utility providing electric or gas service 2 may file with the Commission proposed tariff sheets that 3 eliminate the public utility's fuel or purchased gas 4 adjustment clause and adjust the public utility's base rate 5 tariffs to provide for recovery of power supply costs or gas 6 supply costs that would have been recovered through such 7 clause. Notwithstanding any contrary or inconsistent 8 provisions in Section 9-201 of this Act, in subsection (a) 9 of this Section, or in any rules or regulations promulgated 10 by the Commission pursuant to subsection (e) of this 11 Section, the Commission shall review and shall by order 12 approve, or approve as modified in the Commission's order, 13 the proposed tariff sheets within 180 days after the date of 14 the public utility's filing. The Commission's order shall 15 approve rates and charges that the Commission, based on 16 information in the public utility's filing or on the record 17 if a hearing is held by the Commission, finds will recover 18 the reasonable and necessary jurisdictional power supply 19 costs or gas supply costs incurred or to be incurred by the 20 public utility during a 12 month period found by the 21 Commission to be appropriate for these purposes, provided, 22 that such period shall be either (i) a 12 month historical 23 period occurring during the 15 months ending on the date of 24 the public utility's filing, or (ii) a 12 month future 25 period ending no later than 15 months following the date of 26 the public utility's filing. If the Commission's order 27 requires modifications in the tariff sheets filed by the 28 public utility, the public utility shall have 7 days 29 following the date of the order to notify the Commission 30 whether the public utility will implement the modified 31 tariffs or elect to continue its fuel or purchased gas 32 adjustment clause in force as though no order had been 33 entered. The Commission's order shall provide for any 34 reconciliation of power supply costs or gas supply costs, as -30- LRB9000199JSgc 1 the case may be, and associated revenues through the date 2 that the public utility's fuel or purchased gas adjustment 3 clause is eliminated. During the 5 years following the date 4 of the Commission's order, a public utility whose fuel or 5 purchased gas adjustment clause has been eliminated pursuant 6 to this subsection shall not file proposed tariff sheets 7 seeking, or otherwise petition the Commission for, 8 reinstatement or adoption of a fuel or purchased gas 9 adjustment clause. 10 (e) The Commission shall have authority to promulgate 11 rules and regulations to carry out the provisions of this 12 Sectionparagraph. 13 (Source: P.A. 87-173; 88-488.) 14 (220 ILCS 5/10-103) (from Ch. 111 2/3, par. 10-103) 15 Sec. 10-103. Ex parte communications. 16 (a) In all proceedings, investigations or hearings 17 conducted by the Commission, except in the disposition of 18 matters which the Commission is authorized to entertain or 19 dispose of on an ex parte basis, any finding, decision or 20 order made by the Commission shall be based exclusively on 21 the record for decision in the case, which shall include only 22 the transcript of testimony and exhibits together with all 23 papers and requests filed in the proceeding, including, in 24 contested cases, the documents and information described in 25 Section 10-35 of the Illinois Administrative Procedure Act. 26 The provisions of Section 10-60 of the Illinois 27 Administrative Procedure Act shall apply in full to 28 Commission proceedings, including ratemaking cases, any 29 provision of the Illinois Administrative Procedure Act to the 30 contrary notwithstanding except as modified by the 31 following:.32 (1) The provisions of Section 10-60 shall not 33 apply, however,to communications between Commission -31- LRB9000199JSgc 1 employees who are engaged in investigatory, prosecutorial 2 or advocacy functions and other parties to the 3 proceeding, provided that such Commission employees are 4 still prohibited from communicating on an ex parte basis, 5 as designated in Section 10-60, directly or indirectly, 6 with members of the Commission, any hearing examiner in 7 the proceeding, or any Commission employee who is or may 8 reasonably be expected to be involved in the decisional 9 process of the proceeding. 10 (2) In any contested case before the Commission, 11 including ratemaking cases, after the case is deemed "at 12 issue", no (i) commissioner, (ii) hearing examiner 13 assigned to preside over the proceeding, or (iii) 14 Commission employee assigned to assist a commissioner or 15 hearing examiner in rendering a proposed or final order 16 in the proceeding, shall communicate, directly or 17 indirectly, with any other person concerning any issue of 18 fact or law in the proceeding, except upon notice and 19 opportunity for all parties to participate; provided, 20 however, that this requirement shall not apply to 21 communications between a commissioner and a Commission 22 employee assigned to assist the commissioner, or between 23 a hearing examiner and a Commission employee assigned to 24 assist the examiner. For purposes of this paragraph (2), 25 a case shall be deemed "at issue" when a party or a 26 representative of the Commission staff first files a 27 pleading (including a petition for leave to intervene) 28 or written evidence asserting a position on an issue of 29 fact or law in opposition to that proposed by the party 30 or parties initiating the case or to that of the 31 respondent in a case initiated by the Commission. 32 (3) The provisions of Section 10-60 of the Illinois 33 Administrative Procedure Act shall not apply to 34 proceedings before the Commission that are intended to -32- LRB9000199JSgc 1 lead to the establishment of policies, practices, rules, 2 or programs applicable to more than one utility and to 3 result in the publication and adoption of a rule 4 pursuant to the "rulemaking" provisions of the Illinois 5 Administrative Procedure Act. 6 (b) Any commissioner, any hearing examiner assigned to 7 preside over the proceeding, or any other Commission employee 8 who has been assigned to assist a commissioner or hearing 9 examiner in rendering a proposed or final order inis or may10reasonably be expected to be involved in the decisional11process ofa proceeding, who receives, or who makes or 12 knowingly causes to be made, a communication prohibited by 13 Section 10-60 of the Illinois Administrative Procedure Act as 14 modified by this Section, shall place on the public record of 15 the proceeding (1) any and all such written communications; 16 (2) memoranda stating the substance of any and all 17 such oral communications; and (3) any and all written 18 responses and memoranda stating the substance of any and 19 all oral responses to the materials described in clauses 20 (1) and (2). 21 (c) The Commission, or any commissioner or hearing 22 examiner presiding over the proceeding, shall in the event of 23 a violation of this Section, take whatever action is 24 necessary to ensure that such violation does not prejudice 25 any party or adversely affect the fairness of the 26 proceedings. 27 (Source: P.A. 88-45.) 28 (220 ILCS 5/10-113) (from Ch. 111 2/3, par. 10-113) 29 Sec. 10-113. Rescission or hearing of order. 30 (a) Anything in this Act to the contrary 31 notwithstanding, the Commission may at any time, upon notice 32 to the public utility affected, and after opportunity to be 33 heard as provided in the case of complaints, rescind, alter -33- LRB9000199JSgc 1 or amend any rule, regulation, order or decision made by it. 2 Any order rescinding, altering or amending a prior rule, 3 regulation, order or decision shall, when served upon the 4 public utility affected, have the same effect as is herein 5 provided for original rules, regulations, orders or 6 decisions. Within 30 days after the service of any rule or 7 regulation, order or decision of the Commission any party to 8 the action or proceeding may apply for a rehearing in respect 9 to any matter determined in said action or proceeding and 10 specified in the application for rehearing. The Commission 11 shall receive and consider such application and shall grant 12 or deny such application in whole or in part within 20 days 13 from the date of the receipt thereof by the Commission. In 14 case the application for rehearing is granted in whole or in 15 part the Commission shall proceed as promptly as possible to 16 consider such rehearing as allowed. No appeal shall be 17 allowed from any rule, regulation, order or decision of the 18 Commission unless and until an application for a rehearing 19 thereof shall first have been filed with and finally disposed 20 of by the Commission: provided, however, that in case the 21 Commission shall fail to grant or deny an application for a 22 rehearing in whole or in part within 20 days from the date of 23 the receipt thereof, or shall fail to enter a final order 24 upon rehearing within 150 days after such rehearing is 25 granted, the application for rehearing shall be deemed to 26 have been denied and finally disposed of, and an order to 27 that effect shall be deemed to have been served, for the 28 purpose of an appeal from the rule, regulation, order or 29 decision covered by such application. No person or 30 corporation in any appeal shall urge or rely upon any grounds 31 not set forth in such application for a rehearing before the 32 Commission. An application for rehearing shall not excuse any 33 corporation or person from complying with and obeying any 34 rule, regulation, order or decision or any requirement of any -34- LRB9000199JSgc 1 rule, regulation, order or decision of the Commission 2 theretofore made, or operate in any manner to stay or 3 postpone the enforcement thereof, except in such cases and 4 upon such terms as the Commission may by order direct. If, 5 after such rehearing and consideration of all the facts, 6 including those arising since the making of the rule, 7 regulation, order or decision, the Commission shall be of the 8 opinion that the original rule, regulation, order or decision 9 or any part thereof is in any respect unjust or unwarranted, 10 or should be changed, the Commission may rescind, alter or 11 amend the same. A rule, regulation, order or decision made 12 after such rehearing, rescinding, altering or amending the 13 original rule, regulation, order or decision shall have the 14 same force and effect as an original rule, regulation, order 15 or decision, but shall not affect any right or the 16 enforcement of any right arising from or by virtue of the 17 original rule, regulation, order or decision unless so 18 ordered by the Commission. Only one rehearing shall be 19 granted by the Commission; but this shall not be construed to 20 prevent any party from filing a petition setting up a new and 21 different state of facts after 2 years, and invoking the 22 action of the Commission thereon. 23 (b) Notwithstanding any contrary or inconsistent 24 provision in the Illinois Administrative Procedure Act, the 25 Commission may, in accordance with this Section, make a 26 change in a rule or regulation adopted or modified pursuant 27 to Section 5-40 of the Illinois Administrative Procedure 28 Act, upon consideration of an application for rehearing of 29 the Commission's order directing that the rule or 30 regulation be filed with the Secretary of State and 31 published in the Illinois Register pursuant to subsection (d) 32 of Section 5-40. If the Commission makes such a substantive 33 change in the rule or regulation pursuant to this subsection, 34 it shall provide notice of the amendment to the rule or -35- LRB9000199JSgc 1 regulation to the Joint Committee on Administrative Rules in 2 accordance with subsection (c) of Section 5-40, and shall 3 thereafter comply with the requirements of subsection (d) of 4 Section 5-40 with respect to the rule or regulation as 5 amended. The provisions of subsection (e) of Section 5-40 6 of the Illinois Administrative Procedure Act shall not 7 operate to prohibit adoption of any amendment to a rule or 8 regulation of the Commission upon rehearing in accordance 9 with this subsection. 10 (Source: P.A. 84-617.) 11 (220 ILCS 5/10-114 new) 12 Sec. 10-114. Settlement of proceedings. The Commission 13 is authorized to adopt, by order, both contested and 14 uncontested settlements of matters at issue in proceedings 15 before it so long as the following requirements are met: (i) 16 the parties to the settlement agreement shall include (A) 17 each public utility, and each non-utility electric supplier 18 as defined in Section 16-102 of this Act, that will be 19 required by the Commission's order in the proceeding to take 20 or refrain from taking any action, and (B) in a case in 21 which there are 5 or more active parties, at least 3 22 parties, that have, or represent persons or corporations 23 that have, substantial but differing interests in the 24 outcome of the proceeding; (ii) if the settlement agreement 25 is not signed by all parties to the proceeding, the 26 Commission shall hold a hearing, prior to issuing an order 27 authorized by this Section, at which any parties opposing 28 the settlement agreement shall have an opportunity to be 29 heard; and (iii) the resulting finding, rule, regulation, 30 order or decision shall address a subject within the 31 Commission's statutory jurisdiction, but may involve 32 requirements applicable to a public utility or non-utility 33 electric supplier that the Commission would not, absent such -36- LRB9000199JSgc 1 party's agreement to the proposed settlement, otherwise be 2 empowered to impose. 3 (220 ILCS 5/Art. XVI heading new) 4 ARTICLE XVI. ELECTRIC SERVICE TRANSITION AND 5 CUSTOMER CHOICE LAW 6 (220 ILCS 5/16-101 new) 7 Sec. 16-101. Title and applicability. This Article may 8 be cited as the Electric Service Transition and Customer 9 Choice Law of 1997 and shall apply to electric utilities and 10 non-utility electric suppliers as defined in this Article. 11 Except to the extent modified or supplemented by the 12 provisions of this Article, the other Articles of this Act 13 pertaining to public utilities, public utility rates and 14 services, and the regulation thereof, are fully and equally 15 applicable to the tariffed services electric utilities 16 provide, except where the context clearly renders such 17 provisions inapplicable. 18 (220 ILCS 5/16-102 new) 19 Sec. 16-102. Definitions. For the purposes of this 20 Article the following terms shall be defined as set forth in 21 this Section. 22 "Base rates" means the rates for those tariffed services 23 that the electric utility is required to offer pursuant to 24 subsection (a) of Section 16-103 and that were, or would have 25 been used had they been offered, to collect an electric 26 utility's base rate revenue requirement prior to the 27 effective date of this amendatory Act of 1997, excluding 28 separate automatic rate adjustment riders, special contract 29 rates, delivery services tariffs filed pursuant to Section 30 16-103, real time pricing, or tariffs that were in effect 31 prior to October 1, 1996 and that based charges for service -37- LRB9000199JSgc 1 on an index or average of other utilities' charges. 2 "Competitive service" includes (i) any service that the 3 Commission has declared to be competitive pursuant to Section 4 16-113 of this Act, (ii) contract service, and (iii) 5 services, other than tariffed services, that are related to, 6 but not necessary for the provision of tariffed services. 7 "Contract service" means (1) services, including the 8 provision of electric power and energy or other services, 9 that are provided by mutual agreement between an electric 10 utility and a retail customer that is located in the 11 electric utility's service area provided, that delivery 12 services shall not be a contract service until such services 13 are declared competitive pursuant to Section 16-103; and 14 also means (2) the provision of electric power and energy by 15 an electric utility to retail customers outside the electric 16 utility's service area pursuant to subsection (c) of Section 17 16-103. Provided, however, contract service does not 18 include electric utility services provided pursuant to (i) 19 contracts that retail customers are required to execute as a 20 condition of receiving tariffed services, or (ii) other 21 contracts for electric utility services entered into between 22 an electric utility and a retail customer prior to the 23 effective date of this amendatory Act of 1997. 24 "Delivery services" means those services provided by the 25 electric utility that are necessary in order for the 26 transmission and distribution systems to function so that 27 retail customers located in the electric utility's service 28 area can receive electric power and energy from suppliers 29 other than the electric utility. 30 Electric utility" means a public utility, as defined in 31 Section 3-105 of this Act, that has a franchise, license, 32 permit or right to furnish or sell electricity to retail 33 customers. 34 "Mandatory transition period" means the period from the -38- LRB9000199JSgc 1 effective date of this amendatory Act of 1997 through January 2 1, 2005. 3 "Non-utility electric supplier" means every person, 4 cooperative, corporation, municipal corporation, company, 5 association, joint stock company or association, firm, 6 partnership, individual, or other entity, their lessees, 7 trustees, or receivers appointed by any court whatsoever, 8 that offers electric power or energy for sale, lease, or in 9 exchange for other value received to one or more retail 10 customers, or that engages in the delivery or furnishing of 11 electric power or energy to such retail customers, and shall 12 include resellers, aggregators and power marketers, but 13 shall not include (i) electric utilities (or any agent of 14 the electric utility to the extent the electric utility 15 provides tariffed services to retail customers through that 16 agent), or (ii) any electric cooperative or municipal 17 corporation to the extent that it is serving retail 18 customers within any area in which it is or would be 19 entitled to provide service under the law in effect 20 immediately prior to the effective date of this amendatory 21 Act of 1997, (iii) any retail customer to the extent that 22 customer obtains its electric power and energy from its own 23 cogeneration or self-generation facilities or (iv) any entity 24 that sells or arranges for the installation of cogeneration 25 or self-generation facilities to be owned by a retail 26 customer described in subparagraph (iii), but only to the 27 extent the entity is engaged in selling or arranging for 28 such installation. 29 "Real-time pricing" means charges for delivered electric 30 power and energy that vary on an hour-to-hour basis for 31 nonresidential retail customers and that vary on a periodic 32 basis during the day for residential retail customers. 33 "Retail customer" means a single entity using electric 34 power or energy at a single premises and that either (i) is -39- LRB9000199JSgc 1 receiving or is eligible to receive tariffed services from 2 an electric utility, or (ii) that is served by a municipal 3 corporation or electric cooperative within any area in which 4 it is or would be entitled to provide service under the law 5 in effect immediately prior to the effective date of this 6 amendatory Act of 1997. 7 "Service area" means (i) the geographic area within which 8 an electric utility was lawfully entitled to provide 9 electric power and energy to retail customers as of the 10 effective date of this amendatory Act of 1997, and includes 11 (ii) the location of any retail customer to which the 12 electric utility was lawfully providing electric utility 13 services on such effective date. 14 "Tariffed service" means services provided to retail 15 customers by an electric utility as defined by its rates on 16 file with the Commission pursuant to the provisions of 17 Article IX of this Act, but shall not include competitive 18 services. 19 "Transition charges" means a charge expressed in cents 20 per kilowatt-hour that is calculated for a customer or class 21 of customers as follows for each year in which an electric 22 utility is entitled to recover transition charges as 23 provided in 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 27 requirements as a tariffed service based on (A) all of 28 the customers' actual usage during the 3 years 29 immediately preceding the date on which such customers 30 were first eligible for delivery services pursuant to 31 Section 16-104, and (B) on (i) the base rates in effect 32 on October 1, 1996 (adjusted for the reductions required 33 by subsection (b) of Section 16-111 and any elimination 34 of the fuel adjustment clause pursuant to Sections -40- LRB9000199JSgc 1 7-102.5 or 9-220) and any separate automatic rate 2 adjustment riders under which the customers were 3 receiving or would have received electric power and 4 energy from the electric utility during the year 5 immediately preceding the date on which such customers 6 were first eligible for delivery service pursuant to 7 Section 16-104, or (ii) to the extent applicable, any 8 contract rates, including contracts for consolidated or 9 aggregated billing, under which customers were receiving 10 or would have received electric power and energy from 11 the electric utility during such year; 12 (2) less the amount of revenue, other than revenue 13 from transition charges, that the electric utility would 14 receive from such retail customers for delivery services 15 provided by the electric utility and decommissioning 16 charges paid by such customers pursuant to Section 17 16-114, assuming such customers were taking delivery 18 services for all of their usage, based on the delivery 19 services and decommissioning charges tariffs in effect 20 during the year for which the transition charge is being 21 calculated and on the usage identified in paragraph (1); 22 (3) less the market value for the electric power 23 and energy that the electric utility would have used to 24 supply all of such customers' electric power and energy 25 requirements, as a tariffed service, based on the usage 26 identified in paragraph (1), with such market value 27 determined in accordance with Section 16-112 of this Act; 28 (4) less the following amount which represents the 29 amount to be attributed to new revenue sources and cost 30 reductions by the electric utility through the end of the 31 period for which transition costs are recovered pursuant 32 to Section 16-109: 33 (A) for non-residential retail customers, 0.5 34 cents per kilowatt-hour in each of the first 4 -41- LRB9000199JSgc 1 years the customer is eligible for delivery 2 services, and 0.6 cents per kilowatt-hour in the 3 fifth year that the customer is eligible for 4 delivery services, multiplied in each year by the 5 usage identified in paragraph (1); and 6 (B) for residential retail customers, an 7 amount equal to 10% of the calculation provided for 8 in paragraphs (1) through (3); 9 (5) divided by the usage of such customers 10 identified in paragraph (1), provided that the 11 transition charge shall never be less than zero. 12 "Unbundled service" means a component or constituent part 13 of a tariffed service which the electric utility 14 subsequently offers separately to its customers. 15 (220 ILCS 5/16-103 new) 16 Sec. 16-103. Services provided by electric utilities to 17 customers. 18 (a) An electric utility shall continue offering to 19 retail customers each tariffed service that it offered as a 20 distinct and identifiable service on the effective date of 21 this amendatory Act of 1997 until the service is (i) 22 declared competitive pursuant to Section 16-113, or (ii) 23 abandoned pursuant to Section 8-508. Nothing in this 24 subsection shall be construed as limiting an electric 25 utility's right to propose, or the Commission's power to 26 approve, allow or order modifications in the rates, terms and 27 conditions for such services pursuant to Section 7-102.5, 28 Article IX, or Sections 16-111 and 16-117 of this Act. 29 (b) An electric utility shall also offer, as tariffed 30 services, delivery services in accordance with this Article, 31 the power purchase options described in Section 16-110, and 32 real-time pricing as provided in Section 16-107. 33 (c) An electric utility that has a tariff on file for -42- LRB9000199JSgc 1 delivery services may, without regard to any otherwise 2 applicable tariffs on file, provide electric power and 3 energy to one or more retail customers located outside its 4 service area, but only to the extent (i) such retail 5 customer (A) is eligible for delivery services under any 6 delivery services tariff filed with the Commission by the 7 electric utility in whose service area the retail customer 8 is located and (B) has either elected to take such delivery 9 services or has paid or contracted to pay the charges 10 specified in Section 16-108 and 16-114, or (ii) if such 11 retail customer is served by a municipal electric utility or 12 electric cooperative, the customer is eligible for delivery 13 services under the terms and conditions for such service 14 established by the municipal electric utility or electric 15 cooperative serving that customer. The electric utility 16 shall make its contracts for provision of electric power and 17 energy to retail customers taking delivery services 18 available for review by the Staff of the Commission for 19 purposes of performing audits of contract summaries as 20 provided in Section 16-112. An electric utility may offer 21 any other competitive service to any customer or group of 22 customers without filing contracts with or seeking approval 23 of the Commission, notwithstanding any rule or regulation 24 that would require such approval. The Commission shall not 25 increase or decrease the prices, and may not alter or add to 26 the terms and conditions for competitive services, from 27 those agreed to by the electric utility and the customer or 28 customers. Such services shall not be subject to the 29 provisions of Article V, VII, VIII, or IX of the Act, except 30 to the extent that any provisions of such Articles are made 31 applicable to non-utility electric suppliers pursuant to 32 Section 16-115, or to the provisions of the Electric 33 Suppliers Act. 34 (d) The Commission shall not require an electric utility -43- LRB9000199JSgc 1 to offer any tariffed service other than the services 2 required by subsections (a) and (b), and shall not require 3 an electric utility to offer any competitive service. 4 (220 ILCS 5/16-104 new) 5 Sec. 16-104. Delivery services transition plan. 6 (a) Each electric utility shall offer delivery services 7 to retail customers located in its service area no later 8 than the following dates: 9 (1) On or before January 1, 2000, the electric 10 utility shall offer delivery services to any retail 11 customer whose average monthly maximum electrical demand 12 on the electric utility's system during the 6 months 13 with customer's highest monthly maximum demands in the 14 12 months ending December 31, 1999, equals or exceeds 15 11.0 megawatts. 16 (2) On or before January 1, 2001, the electric 17 utility shall offer delivery services to any retail 18 customer whose average monthly maximum electrical demand 19 on the electric utility's system during the 6 months 20 with the customer's highest monthly maximum electrical 21 demands in the 12 months ending December 31, 2000, 22 equals or exceeds 9.5 megawatts. 23 (3) On or before January 1, 2002, the electric 24 utility shall offer delivery services to: 25 (A) any retail customer whose average monthly 26 maximum electrical demand on the electric utility's 27 system during the 6 months with the customer's 28 highest monthly maximum electrical demands equals 29 or exceeds 5.0 megawatts; and 30 (B) any retail customers under common 31 ownership doing business at 3 or more separate 32 locations within the electric utility's service 33 area, if the average monthly maximum electrical -44- LRB9000199JSgc 1 demand per location for such locations equals or 2 exceeds 300 kilowatts and the aggregate coincident 3 average maximum monthly electrical demand at all 4 such sites during the 6 months with the customers' 5 highest monthly maximum electrical demands equals 6 or exceeds 5.0 megawatts, in each case during the 12 7 months ending December 31, 2001. 8 (4) On or before January 1, 2003, the electric 9 utility shall offer delivery services to: 10 (A) any retail customer whose average monthly 11 maximum electrical demand on the electric utility's 12 system during the 6 months with the customer's 13 highest monthly maximum electrical demands equals 14 or exceeds 3.0 megawatts; and 15 (B) any retail customers under common 16 ownership doing business at 3 or more separate 17 locations within the electric utility's service 18 area, if the average monthly maximum electrical 19 demand per location for such locations equals or 20 exceeds 200 kilowatts and the aggregate coincident 21 average maximum monthly electrical demand at all 22 such sites during the 6 months with the customers' 23 highest monthly maximum electrical demands equals 24 or exceeds 3.0 megawatts, in each case during the 12 25 months ending December 31, 2002. 26 (5) The electric utility shall offer delivery 27 services on an aggregated basis to all nonresidential 28 retail customers not previously offered delivery 29 services commencing January 1, 2004, and to all other 30 retail customers commencing January 1, 2005, if such 31 customers' aggregated load meets the criteria for 32 delivery of electric power and energy applicable to the 33 electric utility established by the regional reliability 34 council to which the electric utility belongs, by an -45- LRB9000199JSgc 1 independent transmission system operating organization 2 to which the electric utility belongs, or by another 3 organization responsible for overseeing the integrity 4 and reliability of the transmission system, as such 5 criteria are in effect from time to time. The 6 Commission may adopt rules and regulations governing the 7 criteria for aggregation of the loads referred to in this 8 paragraph (5) utilizing delivery services, but its 9 failure to do so shall not preclude any customer who 10 otherwise meets the requirements of this paragraph (5) 11 from electing delivery services. For purposes of this 12 paragraph (5), "aggregated basis" shall include any 13 voluntary grouping of customers having a common agent 14 with contractual authority to purchase electric power 15 and energy and delivery services on behalf of all 16 customers in the grouping. For purposes of paragraphs 17 (3)(B) and (4)(B) of this subsection (a), an electric 18 utility may define "common ownership" to exclude sites 19 that are not part of the same business, provided, that 20 auxiliary establishments as defined in the Standard 21 Industrial Classification Manual published by the United 22 States Government Office of Management and Budget shall 23 not be excluded. 24 (b) If data does not exist on a retail customer's 25 maximum monthly electrical demands, the customer may elect 26 delivery services in accordance with the schedule set forth 27 in subsection (a) if, in the electric utility's reasonable 28 judgement, there is sufficient other information to 29 demonstrate that the customer's electrical demand is 30 consistent with the requirements of that schedule. 31 (c) Subject to the terms and conditions which the 32 electric utility is entitled to impose in accordance with 33 Section 16-109, a retail customer that is eligible to elect 34 delivery services pursuant to subsection (a) may place all -46- LRB9000199JSgc 1 or a portion of its electric power and energy requirements 2 on delivery services. 3 (220 ILCS 5/16-105 new) 4 Sec. 16-105. Mandatory delivery services experiments. 5 (a) Each electric utility in this State having system 6 peak demand during the 12 months ended December 31, 1995, in 7 excess of 100 megawatts shall conduct an experiment or 8 experiments for providing delivery services to retail 9 customers located in the electric utility's service area in 10 accordance with the following requirements: 11 (1) The electric utility's experiment or 12 experiments shall begin no later than January 1, 1998, 13 and shall terminate no earlier than December 31, 1999. 14 (2) (A) The experiment or experiments of any 15 electric utility with more than 1,000,000 retail 16 customers shall provide the opportunity for the 17 scheduling and delivery of 175 megawatts of retail 18 customer demands in any hour in conjunction with the 19 provision of delivery services. 20 (B) The experiment or experiments of any 21 electric utility with more than 500,000 but less 22 than 1,000,000 retail customers shall provide the 23 opportunity for retail customers whose individual 24 maximum electrical demands total, in the aggregate, 25 75 megawatts to utilize delivery services. 26 (C) The experiment or experiments of any other 27 electric utility subject to the requirements of this 28 Section shall provide the opportunity for retail 29 customers in the electric utility's service area 30 whose individual maximum electrical demands total, 31 in the aggregate, 2% of the utility's peak load 32 during the 12 months ended December 31, 1995 to 33 utilize delivery services. -47- LRB9000199JSgc 1 (3) Any experiment or other program or tariff 2 commencing prior to the effective date of this amendatory 3 Act of 1997 and concluding no earlier than December 31, 4 1999, by which an electric utility subject to the 5 requirements of this Section offers delivery services to 6 retail customers in its service area shall be included in 7 determining if the electric utility has fulfilled the 8 requirements of this Section. 9 (b) In addition to conducting the experiment or 10 experiments required by subsection (a), each electric 11 utility in this State having system peak demand during the 12 12 months ended December 31, 1995, in excess of 100 13 megawatts shall conduct experiments for (i) providing 14 delivery services to residential retail customers located in 15 the electric utility's service area and (ii) providing 16 delivery services to any retail customer placing additional 17 electrical demand on the electric utility's system of 3 18 megawatts or more, which shall be referred to herein as the 19 "new load experiment", in accordance with the following 20 requirements: 21 (1) The electric utility's experiment for 22 residential retail customers shall begin no later than 23 January 1, 2000, and shall terminate no earlier than 24 December 31, 2004. The experiment shall provide the 25 opportunity for, at the electric utility's discretion, 26 either (i) at least 1000 residential retail customers in 27 the electric utility's service area or (ii) residential 28 retail customers in the electric utility's service area 29 whose individual maximum electrical demands total 10 30 megawatts, to utilize delivery services on an aggregated 31 basis, provided, that the minimum aggregated loads of 32 groups of retail customers participating in the 33 experiment shall satisfy the criteria referred to in 34 subsection (a)(5) of Section 16-104. -48- LRB9000199JSgc 1 (2) The electric utility's new load experiment 2 shall begin no later than January 1, 2000, and shall 3 terminate no earlier than December 31, 2002. The new 4 load experiment shall allow any retail customer placing 5 additional electrical demand of 3 megawatts or more on 6 the electric utility's system, on or after the date the 7 experiment begins, to utilize delivery services for such 8 additional demand. 9 (c) The electric utility shall have a delivery services 10 tariff on file with the Commission for each of the 11 experiments required by this Section setting forth the 12 rates, terms and conditions of the delivery services offered 13 for purposes of the experiment. For each experiment which 14 begins after the effective date of this amendatory Act of 15 1997, such tariff shall be filed no later than 150 days 16 prior to the date on which the experiment is to commence and 17 shall be effective as filed 30 days prior to the date on 18 which the experiment is to begin unless the tariff is 19 modified by the Commission, prior to such effective date, 20 after notice and hearing. 21 (d) Other than as expressly provided in subsections (a) 22 through (c), the electric utility shall determine the scope, 23 availability, customer eligibility, and other terms and 24 conditions of each experiment. Nothing in this Section shall 25 preclude an electric utility from conducting an experiment or 26 experiments of larger size, or additional experiments of 27 different scope, than prescribed in subsections (a) and (b) 28 of this Section. The offering of an experiment by an 29 electric utility pursuant to this Section to the retail 30 customers participating in the experiment, and the 31 participation by those customers in the experiment, shall 32 not create any right in any other retail customer or group 33 of customers to participate in the same or a similar 34 experiment. -49- LRB9000199JSgc 1 (220 ILCS 5/16-106 new) 2 Sec. 16-106. Billing experiments. During the period 3 from the effective date of this amendatory Act of 1997 until 4 December 31, 2005, an electric utility may at its discretion 5 conduct one or more experiments for the provision or billing 6 of services on a consolidated or aggregated basis, for the 7 provision of real-time pricing, or other billing or pricing 8 experiments, and may include experimental programs offered 9 to groups of retail customers possessing common attributes 10 as defined by the electric utility, such as the members of 11 an organization that was established to serve a well-defined 12 industry group, companies having multiple sites, or 13 closely-located or affiliated buildings, provided that such 14 groups exist for a purpose other than obtaining energy 15 services and have been in existence for at least 10 years. 16 The offering of such a program by an electric utility to 17 retail customers participating in the program, and the 18 participation by those customers in the program, shall not 19 create any right in any other retail customer or group of 20 customers to participate in the same or a similar program. 21 The Commission shall allow such experiments to go into 22 effect upon the filing by the electric utility of a 23 statement describing the program. Nothing contained in this 24 Section shall be deemed to prohibit the electric utility 25 from offering, or the Commission from approving, experimental 26 rates, tariffs, contracts, and services in addition to those 27 allowed under this Section. 28 (220 ILCS 5/16-107 new) 29 Sec. 16-107. Real-time pricing. 30 (a) Each electric utility shall file, not less than 150 31 days prior to the date it is to become effective, a tariff 32 or tariffs which allow a retail customer to elect real-time 33 pricing one year prior to the date the customer would become -50- LRB9000199JSgc 1 eligible for delivery services pursuant to the schedule set 2 forth in Section 16-104. The electric utility's tariff or 3 tariffs filed pursuant to this Section shall be subject to 4 Article IX. 5 (b) The electric utility shall allow a retail customer 6 that generates electric power and energy for its own use to 7 include the electrical demand served by the customer's 8 cogeneration or self-generation facilities that is 9 coincident with the retail customer's maximum monthly 10 electrical demand on the electric utility's system in any 11 determination of the customer's maximum monthly electrical 12 demand for purposes of determining whether the retail 13 customer is eligible to elect real-time pricing, provided, 14 that the electric utility shall be entitled to require that 15 the retail customer place its entire electric power and 16 energy requirement, including the portion of such 17 requirement obtained from the customer's cogeneration or 18 self-generation facility, on the electric utility's 19 real-time pricing tariff as a condition of receiving 20 real-time pricing pursuant to this Section. 21 (220 ILCS 5/16-108 new) 22 Sec. 16-108. Recovery of costs associated with offering 23 delivery services. 24 (a) An electric utility shall be entitled to recover the 25 costs of providing delivery services through its charges to 26 its delivery services customers. For purposes of this 27 subsection, in addition to the costs associated with 28 transmission and distribution facilities, such costs shall 29 include but not be limited to: (A) the costs of that 30 portion, if any, of generation facilities used for the 31 production and absorption of reactive power in order that 32 retail customers located in the electric utility's service 33 area can receive electric power and energy from suppliers -51- LRB9000199JSgc 1 other than the electric utility and (B) the costs, if any, 2 associated with the use and redispatch of generation 3 facilities to mitigate constraints on the transmission or 4 distribution system in order that retail customers located 5 in the electric utility's service area can receive electric 6 power and energy from suppliers other than the electric 7 utility. Such charges shall be cost-based, shall be set 8 forth in tariffs that are subject to the requirements of 9 Article IX of this Act, and shall be recovered from those 10 customers using the facilities and services associated with 11 the costs. 12 (b) An electric utility shall be entitled to recover the 13 costs of installing, operating and maintaining facilities for 14 the particular benefit of one or more delivery services 15 customers directly from the retail customer or customers 16 receiving the delivery services, to the extent such costs 17 are not recovered by the electric utility pursuant to the 18 charges referred to in subsection (a). Such charges shall 19 be cost based and shall be recovered from the customers 20 using the facilities and services associated with the costs. 21 (c) An electric utility shall be entitled but not 22 required to implement transition charges in conjunction with 23 the experiments required by subsections (a) and (b) of 24 Section 16-105 and the offering of delivery services 25 pursuant to Section 16-104. Such charges shall be 26 calculated as provided in Section 16-102 and collected on 27 each kilowatt-hour delivered under a delivery services 28 tariff to a retail customer during the experiment or for the 29 first 5 years following the date on which the customer 30 became eligible to take delivery services in accordance with 31 Section 16-104 of this Act, except as provided in subsection 32 (g) of this Section. 33 (d) The electric utility shall file tariffs that 34 establish the transition charges to be paid by each class of -52- LRB9000199JSgc 1 customers to the electric utility in conjunction with the 2 provision of delivery services, provided, that such tariffs 3 shall provide for the calculation of transition charges on a 4 customer-specific basis for any retail customer that has an 5 average monthly maximum electrical demand on the electric 6 utility's system of 3 megawatts or more as determined under 7 subsection (a)(4)(A) of Section 16-104 for electric 8 utilities having more than 1,000,000 customers, and for 9 other electric utilities for any customer that has an 10 average monthly maximum electrical demand on the electric 11 utility's system of one megawatt or more, and (A) for which 12 there exists data on the customer's usage during the 3 years 13 preceding the date that the customer became eligible to take 14 delivery services, or (B) for which there does not exist data 15 on the customer's usage during the 3 years preceding the 16 date that the customer became eligible to take delivery 17 services, if in the electric utility's reasonable judgment 18 there exists comparable usage information or a sufficient 19 basis to develop such information, and further provided that 20 the electric utility can require customers for which an 21 individual calculation is made to sign contracts that 22 establish the transition charges to be paid by the customer 23 to the electric utility pursuant to the tariff. 24 (e) A retail customer that participates in a delivery 25 services experiment offered pursuant to Section 16-105 of 26 this Act shall receive credit for any transition charges 27 specifically identified and paid in conjunction with such 28 experiment, with such credit to begin in the first year that 29 the customer takes delivery services and to be applied, 30 until exhausted, against the transition charges the customer 31 is obligated to pay under this Section. 32 (f) An electric utility shall be entitled to add to the 33 bills of delivery services customers charges pursuant to 34 Section 9-221 and 9-222 (except as provided in Section -53- LRB9000199JSgc 1 9-222.1), and Section 16-114 of this Act. 2 (g) An electric utility shall be entitled to collect 3 transition charges from retail customers in the electric 4 utility's service area that do not take delivery services but 5 that take electric power or energy from a non-utility 6 electric supplier or from an electric utility other than the 7 electric utility in whose service area the customer is 8 located. Such charges shall be calculated, in accordance 9 with the definition of transition charges in Section 16-102, 10 for the period of time that the customer would be obligated 11 to pay transition charges if it were taking delivery 12 services, except that no deduction for delivery services 13 revenues shall be made in such calculation, and usage data 14 from the customer's class shall be used where historical 15 usage data is not available for the individual customer. 16 The customer shall be obligated to pay such charges on a 17 lump sum basis on or before the date on which the customer 18 commences to take service from the non-utility electric 19 supplier or other electric utility, provided, that the 20 electric utility in whose service area the customer is 21 located shall offer the customer the option of signing a 22 contract pursuant to which the customer pays such charges 23 ratably over the period in which the charges would otherwise 24 have applied. 25 (h) If a retail customer that obtains electric power and 26 energy from cogeneration or self-generation facilities 27 installed for its own use on or before January 1, 1997, 28 subsequently takes service from a non-utility electric 29 supplier or an electric utility other than the electric 30 utility in whose service area the customer is located for 31 any portion of the customer's electric power and energy 32 requirements formerly obtained from those facilities, the 33 transition charges otherwise applicable pursuant to 34 subsection (c), (d), or (g) of this Section shall not be -54- LRB9000199JSgc 1 applicable in any year to that portion of the customer's 2 electric power and energy requirements formerly obtained 3 from those facilities, provided, that for purposes of this 4 subsection (h), such portion shall not exceed the average 5 number of kilowatt-hours per year obtained from the 6 cogeneration or self-generation facilities during the 3 7 years prior to the date on which the customer became 8 eligible for delivery services, except as provided in item 9 (2) of Section 16-109. 10 (i) An electric utility, a non-utility electric supplier 11 or electric utility other than the electric utility in whose 12 service area the customer is located, and a customer served 13 by such non-utility electric supplier or other electric 14 utility, may enter into an agreement pursuant to which the 15 non-utility electric supplier or other electric utility pays 16 the charges specified in subsections (a), (b), (c), (d), 17 (f), and (g) of this Section in lieu of such charges being 18 recovered by the electric utility directly from the 19 customer. 20 (220 ILCS 5/16-109 new) 21 Sec. 16-109. Terms and conditions of delivery services. 22 An electric utility offering delivery services as provided 23 in Sections 16-104 and 16-105 may impose the following terms 24 and conditions in connection with offering delivery 25 services: 26 (1) An electric utility may require a retail 27 customer who elects to (i) use a non-utility electric 28 supplier or another electric utility for some but not 29 all of its electric power or energy requirements, and 30 (ii) use the electric utility for any portion of its 31 remaining electric power and energy requirements, to 32 place the portion of the customer's electric power or 33 energy requirement that is to be served by the electric -55- LRB9000199JSgc 1 utility on a tariff containing charges that are set to 2 recover the lowest reasonably available cost to the 3 electric utility of acquiring electric power and energy 4 on the wholesale electric market to serve such remaining 5 portion of the customer's electric power and energy 6 requirement, reasonable compensation for arranging for 7 and providing such electric power or energy, and the 8 electric utility's other costs of providing service to 9 such remaining electric power and energy requirement. 10 (2) An electric utility can require a retail 11 customer taking delivery services that formerly 12 generated electric power and energy for its own use and 13 that, pursuant to subsection (h) of Section 16-108, 14 would not otherwise pay transition charges on a portion 15 of its electric power and energy requirements served on 16 delivery services to pay transition charges on that 17 portion of the customer's electric power and energy 18 requirement as a condition of exercising the delivery 19 services customer power purchase options set forth in 20 subsection (b) of Section 16-110. 21 (3) An electric utility shall provide the 22 components of delivery services that are subject to the 23 jurisdiction of the Federal Energy Regulatory Commission 24 at the same prices, terms and conditions set forth in 25 its transmission service tariff that has been approved 26 or allowed into effect by that Commission. The 27 Commission shall otherwise have the authority to review, 28 approve and modify the prices, terms and conditions of 29 the other components to be included in the electric 30 utility's delivery services tariff. 31 (4) An electric utility shall allow a retail 32 customer that generates power for its own use to include 33 the electrical demand obtained from the customer's 34 cogeneration or self-generation facilities that is -56- LRB9000199JSgc 1 coincident with the retail customer's maximum monthly 2 electrical demand on the electric utility's system in any 3 determination of the customer's maximum monthly 4 electrical demand for purposes of Sections 16-104 and 5 16-107. 6 (5) A customer that prior to January 1, 2000, was 7 participating in a delivery services experiment offered 8 by an electric utility pursuant to Section 16-105 shall 9 be entitled to continue to receive delivery services 10 between the termination of the experiment and the date 11 the customer is eligible to receive delivery services 12 under Section 16-104, for that portion of the customer's 13 electric power and energy requirement using delivery 14 services during the experiment. 15 (220 ILCS 5/16-110 new) 16 Sec. 16-110. Delivery services customer power purchase 17 options. 18 (a) Each electric utility shall offer a tariffed service 19 or services, in accordance with the terms and conditions set 20 forth in this Section pursuant to which its delivery 21 services customers may purchase electric power and energy 22 from such electric utility. 23 (b) Except as provided in subsection (o) Section 16-112, 24 during the 5 year transition charge recovery period 25 applicable to a delivery services customer, a customer that 26 is paying transition charges to the electric utility shall be 27 permitted to purchase electric power and energy from the 28 electric utility at a price or prices equal to the sum of 29 (i) the market values that are determined for the electric 30 utility in accordance with Section 16-112 and used by the 31 electric utility to calculate the customer's transition 32 charges and (ii) a fee that compensates the electric utility 33 for any administrative costs it incurs in arranging to -57- LRB9000199JSgc 1 supply such electric power and energy. The electric utility 2 may require that the customer purchase such electric power 3 and energy for periods of not less than one year and may 4 also require that the customer give up to 30 days notice for 5 a purchase of one year's duration, and 90 day's notice for a 6 purchase of more than one year's duration. A delivery 7 service customer exercising the option described in this 8 subsection may sell or assign its interests in the electric 9 power or energy that the customer has purchased. 10 (c) After the 5 year transition charge period applicable 11 to a delivery services customer, and until the provision of 12 electric power and energy is declared competitive for the 13 customer group to which the customer belongs, a delivery 14 services customer that paid any transition charges it was 15 obligated to pay but is no longer obligated to pay 16 transition charges to an electric utility shall be permitted 17 to purchase electric power and energy from the electric 18 utility for contract periods of one year at a price or 19 prices equal to the sum of (i) the market value determined 20 pursuant to Section 16-112 and (ii) a fee to compensate the 21 electric utility for the service of arranging the supply or 22 purchase of such electric power and energy. The electric 23 utility may require that the delivery services customer give 24 up to one year's notice for such a purchase. 25 (d) After the 5 year transition charge period applicable 26 to a delivery services customer, and until the provision of 27 power and energy is declared competitive for the customer 28 group to which the customer belongs, a delivery services 29 customer that paid any transition charges it was obligated 30 to pay but is no longer obligated to pay transition charges 31 to an electric utility shall be permitted to purchase 32 electric power and energy from the electric utility for 33 contract periods of one year at a price or prices equal to 34 (A) the sum of (i) the electric utility's actual cost of -58- LRB9000199JSgc 1 procuring such electric power and energy and (ii) a broker's 2 fee to compensate the electric utility for arranging the 3 supply, or, if the utility so elects, (B) the market value of 4 electric power or energy provided by the electric utility 5 determined as set forth in the electric utility's tariff. 6 The electric utility may require that the delivery services 7 customer give up to 30 days notice for such a purchase. 8 (e) Each delivery services customer purchasing electric 9 power and energy from the electric utility pursuant to a 10 tariff filed in accordance with this Section shall also pay 11 all of the applicable charges set forth in the electric 12 utility's delivery services tariffs and any other tariffs 13 applicable to the services provided to that customer by the 14 electric utility. 15 (220 ILCS 9/16-111 new) 16 Sec. 16-111. Rates and restructuring transactions during 17 mandatory transition period. 18 (a) During the mandatory transition period, 19 notwithstanding any provision of Article IX of this Act, and 20 except as provided in subsections (b), (c), (d), (e), and 21 (f) of this Section, the Commission shall not (i) initiate, 22 authorize or order any change by way of increase, or (ii) 23 initiate or, unless requested by the electric utility, 24 authorize or order any change by way of decrease, 25 restructuring or unbundling, in the rates of any electric 26 utility that were in effect on October 1, 1996; provided, 27 however, that this subsection shall not prohibit the 28 Commission from: 29 (1) authorizing an electric utility to implement an 30 alternative to rate of return regulation or a regulatory 31 mechanism that rewards or penalizes the electric utility 32 through adjustment of rates based on utility 33 performance, pursuant to Section 16-117; -59- LRB9000199JSgc 1 (2) authorizing an electric utility to eliminate 2 its fuel adjustment clause and adjust its base rate 3 tariffs in accordance with subsection (a)(1) of Section 4 7-102.5 or with subsection (b) or (d) of Section 9-220 5 of this Act or to fix its fuel adjustment factor in 6 accordance with subsection (c) of Section 9-220 of this 7 Act; 8 (3) ordering into effect a tariff for delivery 9 services in accordance with Sections 16-104 or 16-105, 10 for real-time pricing in accordance with Section 16-107, 11 or the options required by Section 16-110 and subsection 12 (n) of 16-112, or allowing a billing experiment in 13 accordance with Section 16-106; 14 (4) approving a rate restructuring that is proposed 15 by the electric utility within one or more individual 16 customer classes in accordance with subsection (c) of 17 this Section; or 18 (5) ordering or allowing into effect any tariff to 19 recover charges pursuant to Sections 9-201.5, 9-220.1, 20 9-221, 9-222 (except as provided in Section 9-222.1), 21 16-108 or 16-114 of this Act. 22 (b) Notwithstanding the provisions of subsection (a), 23 each electric utility shall file tariffs reducing on each of 24 January 1, 2000, January 1, 2001, January 1, 2002, January 25 1, 2003 and January 1, 2004 its base rates by an amount 26 equal to 1.5% of the revenue received by the electric utility 27 from base rates during the preceding 12 months. Provided, 28 however, that any electric utility for which a decrease in 29 base rates is placed into effect between October 1, 1996 and 30 January 1, 2004, other than pursuant to the requirements of 31 this subsection, shall be entitled to reduce the amount of 32 any reduction or reductions in its base rates required by 33 this subsection which has not yet been implemented, by the 34 amount of such other decrease. -60- LRB9000199JSgc 1 (c) During the mandatory transition period, an electric 2 utility may revise the structure or level of the charges in 3 any tariff by filing the revised tariff with the Commission, 4 to be effective upon filing, provided, (1) that the revision 5 shall be designed so as not to result in an increase in the 6 total revenues that would have been provided under the 7 tariff, as adjusted for any rate decreases in accordance 8 with subsection (b) of this Section, based on usage for a 9 recent 12 month historical period, and provided further, (2) 10 either (A) that the revision shall not result in an increase 11 of more than $2.50 per month in any existing customer 12 charge, facilities charge or other fixed monthly charge in a 13 tariff in any 12 month period and all other charges in such 14 tariff remain the same or decrease, or (B) that the revision 15 shall not result in any increase in the total amount paid by 16 any customer served under the tariff, as adjusted for rate 17 decreases in accordance with subsection (b), based on usage 18 for a recent 12 month historical period. Any tariff filing 19 pursuant to this subsection which meets the criteria in 20 clause (1) but does not meet the criteria in clause (2) shall 21 be subject to review and approval by the Commission pursuant 22 to Article IX of this Act. 23 (d) During the mandatory transition period, 24 notwithstanding the provisions of subsection (a), an 25 electric utility may request an increase in its base rates 26 if the electric utility demonstrates that the 2-year average 27 of its earned rate of return on common equity, calculated as 28 its net income applicable to common stock divided by the 29 average of its beginning and ending balances of common 30 equity using data reported in the electric utility's Form 1 31 report to the Federal Energy Regulatory Commission but 32 adjusted to remove the effects of accelerated depreciation 33 or amortization or other transition or mitigation measures 34 implemented by the electric utility pursuant to subsection -61- LRB9000199JSgc 1 (g) of this Section and the effect of any refund paid 2 pursuant to subsection (e) of this Section, is 1.5 or more 3 percentage points below the 2-year average of the Index for 4 the same 2 years. The Commission shall review the electric 5 utility's request in accordance with the provisions of 6 Article IX of this Act. For purposes of this subsection (d) 7 and of subsection (e) of this Section, the "Index" shall be 8 the sum of (1) the average for the 12 months ended September 9 30 of each year 1997 through 2004 of the monthly average 10 yields of 30-year U.S. Treasury bonds published by the Board 11 of Governors of the Federal Reserve System in its weekly 12 H.15 Statistical Release or successor publication, and (2) 13 (i) 4.00 percentage points for each of the 12-month periods 14 ending September 30, 1997 through September 30, 1999 or (ii) 15 5.00 percentage points for each of the 12-month periods 16 ending September 30, 2000 through September 30, 2004. 17 (e) (1) During the mandatory transition period, not- 18 withstanding the provisions of subsection (a), if the 19 2-year average of an electric utility's earned rate of 20 return on common equity, calculated as its net income 21 applicable to common stock divided by the average of its 22 beginning and ending balances of common equity using 23 data reported in the electric utility's Form 1 report to 24 the Federal Energy Regulatory Commission but adjusted to 25 remove the effect of any refund paid under this 26 subsection (e), exceeds the 2- year average of the Index 27 for the same 2 years by 1.5 or more percentage points, 28 the electric utility shall make refunds to customers 29 beginning the first billing day of April in the 30 following year in the manner described in paragraph (4) 31 of this subsection. 32 (2) For purposes of this subsection (e), "excess 33 earnings" means the difference between (A) the 2-year 34 average of the electric utility's earned rate of return -62- LRB9000199JSgc 1 on common equity, less (B) the 2-year average of the sum 2 of (i) the Index applicable to each of the 2 years and 3 (ii) 1.5 percentage points; provided, that "excess 4 earnings" shall never be less than zero. 5 (3) On or before March 31 of each year during the 6 mandatory transition period, each electric utility shall 7 file a report with the Commission showing its earned rate 8 of return on common equity, calculated in accordance 9 with this subsection, for the preceding calendar year 10 and the average for the preceding 2 calendar years. 11 (4) If an electric utility has excess earnings, 12 determined in accordance with paragraphs (1) and (2) of 13 this subsection, the refunds which the electric utility 14 shall pay to its customers beginning the first billing 15 day of April in the following year shall be calculated 16 and applied as follows: 17 (i) The electric utility's excess earnings 18 shall be multiplied by the average of the beginning 19 and ending balances of the electric utility's 20 common equity for the 2-year period in which excess 21 earnings occurred. 22 (ii) The result of the calculation in (i) 23 shall be multiplied by 0.50 and then divided by a 24 number equal to 1 minus the electric utility's 25 composite federal and State income tax rate. 26 (iii) The result of the calculation in (ii) 27 shall be divided by the sum of the electric 28 utility's projected total kilowatt-hour sales to 29 retail customers plus projected kilowatt-hours to 30 be delivered to delivery services customers over a 31 one year period beginning with the first billing 32 date in April in the succeeding year to determine a 33 cents per kilowatt-hour refund factor. 34 (iv) The cents per kilowatt-hour refund factor -63- LRB9000199JSgc 1 calculated in (iii) shall be credited to the 2 electric utility's customers by applying the factor 3 on the customer's monthly bills to each 4 kilowatt-hour sold or delivered until the total 5 amount calculated in (ii) has been paid to 6 customers. 7 (f) During the mandatory transition period, an electric 8 utility may file revised tariffs reducing the price of any 9 tariffed service offered by the electric utility for all 10 customers taking that tariffed service, which shall be 11 effective 7 days after filing. 12 (g) During the mandatory transition period, an electric 13 utility may, without obtaining approval of the Commission and 14 notwithstanding any other provision of this Act or any rule 15 or regulation of the Commission that would require such 16 approval, (1) implement a reorganization; (2) retire or 17 remove generating plants from service; (3) sell, assign, 18 lease, or otherwise transfer assets to an affiliated or 19 unaffiliated entity and as part of such transaction enter 20 into service agreements, power purchase agreements, or other 21 agreements with the transferee; provided, however, that the 22 prices, terms and conditions of any power purchase agreement 23 must be approved or allowed into effect by the Federal 24 Energy Regulatory Commission; or (4) use any accelerated 25 cost recovery method including accelerated depreciation, 26 accelerated amortization or other capital recovery methods, 27 or record reductions to the original cost of its assets; 28 provided, that this subsection shall not authorize 2 or more 29 electric utilities to consolidate their service areas or rate 30 schedules in a manner that would result in a rate increase to 31 any class of customers served by any of the electric 32 utilities, without obtaining such approval of the Commission 33 for the consolidation as may be required pursuant to 34 Articles VII and IX of this Act. In order to implement a -64- LRB9000199JSgc 1 reorganization, retire or remove generating plants from 2 service, or sell, assign, lease, or otherwise transfer 3 assets pursuant to this Section, the electric utility shall 4 provide the Commission with at least 30 days notice of the 5 proposed reorganization or transaction, which notice shall 6 include the following information: 7 (i) a complete statement of the entries that the 8 electric utility will make on its books and records of 9 account to implement the proposed reorganization or 10 transaction together with a certification from an 11 independent certified public accountant that such 12 entries are in accord with generally accepted accounting 13 principles and, if the Commission has previously 14 approved guidelines for cost allocations between the 15 utility and its affiliates, a certification from the 16 chief accounting officer of the utility that such 17 entries are in accord with those cost allocation 18 guidelines; 19 (ii) a description of how the electric utility will 20 use proceeds of any sale, assignment, lease, or transfer 21 to retire debt or otherwise reduce or recover the costs 22 of services provided by such electric utility; 23 (iii) a list of all federal approvals or approvals 24 required from departments and agencies of this State, 25 other than the Commission, that the electric utility has 26 or will obtain before implementing the reorganization or 27 transaction; 28 (iv) an irrevocable commitment by the electric 29 utility that it will not, as a result of the 30 transaction, impose any stranded cost charges that it 31 might otherwise be allowed to charge retail customers 32 under federal law or increase the transition charges 33 that it is otherwise entitled to collect under this 34 Article XVI; and -65- LRB9000199JSgc 1 (v) if the electric utility proposes to sell, 2 assign, lease, or otherwise transfer a generating plant 3 that brings the amount of net dependable generating 4 capacity transferred pursuant to this subsection to an 5 amount equal to or greater than 15% of the electric 6 utility's net dependable capacity as of the effective 7 date of this amendatory Act of 1997, and enters into a 8 power purchase agreement with the entity to which such 9 generating plant is sold, assigned, leased, or otherwise 10 transferred, the electric utility also agrees to 11 eliminate its fuel adjustment clause in accordance with 12 subsection (b) of Section 9-220 for a period of time 13 equal to the length of any such power purchase agreement 14 or successor agreement, or until January 1, 2005, 15 whichever is longer; if the capacity of the generating 16 plant so transferred and related power purchase 17 agreement does not result in the elimination of the fuel 18 adjustment clause under this subsection, the electric 19 utility shall agree that the costs associated with the 20 transferred plant that are included in the calculation of 21 the rate per kilowatt-hour to be applied pursuant to the 22 electric utility's fuel adjustment clause during such 23 period shall not exceed the per kilowatt-hour cost 24 associated with such generating plant included in the 25 electric utility's fuel adjustment clause during the 26 full calendar year preceding the transfer, with such 27 limit to be adjusted each year thereafter by the Gross 28 Domestic Product Implicit Price Deflator. 29 If the electric utility proposes to sell, assign, or 30 lease generating plant or its facilities used in the 31 transmission or distribution of electric power or energy, or 32 retire or remove generating plant from service, a 33 description of how it will meet its service obligations 34 under this Act in a safe and reliable manner. If at the end -66- LRB9000199JSgc 1 of the 30 day period, the Commission is of the opinion that 2 the proposed transaction will render the electric utility 3 unable to provide its tariffed services in a safe and 4 reliable manner, the Commission may extend the notice period 5 for an additional 60 days and require the electric utility 6 to show cause why an injunction should not issue, pursuant 7 to Section 4-202 of this Act, on the grounds that the 8 proposed transaction will render the electric utility unable 9 to provide its tariffed services in a safe and reliable 10 manner. In initiating any show cause proceeding, the 11 Commission shall state with specificity the reasons that the 12 Commission believes the proposed transaction will render the 13 electric utility unable to provide its tariffed services in 14 a safe and reliable manner. Prior to the end of the 15 additional 60 day period, the Commission shall issue an order 16 either dismissing the show cause proceeding or stating its 17 intent to pursue such an injunction. Such order shall 18 explain the basis of the Commission's conclusions and shall 19 be supported by findings of fact based on the record. The 20 Commission shall not in any subsequent proceeding or 21 otherwise review such a reorganization or other transaction 22 authorized by this Section. The requirements set forth in 23 this subsection (g) shall not apply to a sale or lease 24 implemented in accordance with Section 7-102.5 of this Act. 25 Nothing in this subsection (g) shall exempt a utility from 26 obtaining a certificate pursuant to Section 8-406 of this 27 Act for the construction of a new electric generating 28 facility. Nothing in this subsection (g) is intended to 29 exempt the transactions hereunder from the operation of the 30 federal antitrust laws. 31 (h) During the mandatory transition period, the 32 Commission shall not establish or use any rates of 33 depreciation, which for purposes of this subsection shall 34 include amortization, for any electric utility other than -67- LRB9000199JSgc 1 those established pursuant to subsection (b) of Section 2 5-104 of this Act or utilized pursuant to subsection (g) of 3 this Section. An electric utility implementing an 4 accelerated cost recovery method including accelerated 5 depreciation, accelerated amortization or other capital 6 recovery methods, or recording reductions to the original 7 cost of its assets, pursuant to subsection (g) of this 8 Section, shall file a statement with the Commission 9 describing the accelerated cost recovery method to be 10 implemented or the reduction in the original cost of its 11 assets to be recorded. Upon the filing of such statement, 12 the accelerated cost recovery method or the reduction in the 13 original cost of assets shall be deemed to be approved by 14 the Commission as though an order had been entered by the 15 Commission. 16 (i) Subsequent to the mandatory transition period, the 17 Commission, in any proceeding to establish rates and charges 18 for tariffed services offered by an electric utility, shall 19 consider only (1) the then current or projected revenues, 20 expenses, investments and cost of capital directly or 21 indirectly associated with the provision of such tariffed 22 services; (2) recovery of transition charges in accordance 23 with Sections 16-102 and 16-108 of this Act; and (3) 24 recovery of the costs associated with the electric utility's 25 compliance with decommissioning funding requirements; and 26 shall not consider any other revenues, expenses, investments 27 or cost of capital of either the electric utility or of any 28 affiliate of the electric utility that are not associated 29 with tariffed services. 30 (220 ILCS 5/16-112 new) 31 Sec. 16-112. Determination of market value. 32 (a) The market value to be used in the calculation of 33 transition charges as defined in Section 16-102 shall be -68- LRB9000199JSgc 1 determined in accordance with either (i) a tariff that has 2 been filed by the electric utility with the Commission 3 pursuant to Article IX of this Act and that provides for a 4 determination of the market value for electric power and 5 energy as a function of an exchange traded or other market 6 traded index, options or futures contract or contracts 7 applicable to the market in which the utility sells, and the 8 customers in its service area buy, electric power and 9 energy, or (ii) in the event no such tariff has been placed 10 into effect for the electric utility, or in the event such 11 tariff does not establish market values for each of the 12 years specified in the neutral fact-finder process described 13 in subsections (b) through (f) of this Section, a tariff 14 incorporating the market values resulting from the neutral 15 fact-finder process set forth in subsections (b) through (f) 16 of this Section. 17 (b) Except as provided in subsection (m) of this 18 Section, on or before July 30, 1997, and each July 30 19 following until 2009, the Commission shall appoint a neutral 20 fact-finder to make the calculations described in 21 subsection (c) of this Section. The neutral fact-finder 22 shall be a member of a national public accounting firm, 23 shall not have served as the neutral fact-finder in the 24 previous year, and shall be selected from a list of 25 candidates provided by the CPR Institute for Dispute 26 Resolution or other nationally recognized provider of 27 neutral fact-finders that has established rules for 28 maintaining confidentiality. An amount sufficient to pay 29 the fees of the neutral fact-finder shall be appropriated 30 annually from the Public Utility Fund in the State treasury. 31 (c) On or before September 1, 1997, and each September 1 32 following until 2009, or until discontinued in accordance 33 with subsection (m) of this Section, each electric utility 34 and each non-utility electric supplier shall submit to the -69- LRB9000199JSgc 1 neutral fact-finder a summary of (A) all contracts entered 2 into after June 1, 1997 that are for the sale of electric 3 power and energy from a generating facility or facilities 4 located in this State or located in a contiguous State and 5 owned by an electric utility as part of its interconnected 6 operating system and delivery during one or more of the 5 7 years succeeding the date of submission, and (B) all 8 contracts entered into after June 1, 1997 for purchase and 9 delivery of electric power and energy in or into this State 10 during one or more of the 5 years succeeding the date of 11 submission; provided, however, that such contracts shall not 12 include (i) contracts between the electric utility and an 13 affiliate; (ii) sales, purchases, or deliveries made under 14 rates and tariffs filed with the Commission, except for 15 tariffs filed pursuant to subsection (d) of Section 16-110 16 except for special or negotiated rate contracts between an 17 electric utility and a retail customer to the extent that 18 such contracts are for the provision of electric power and 19 energy after the date that the customer becomes eligible 20 for delivery services; and (iii) extensions or amendments to 21 full requirements wholesale contracts existing as of the 22 effective date of this amendatory Act of 1997, provided that 23 such contracts, extensions, or amendments are cost of 24 service regulated by the Federal Energy Regulatory 25 Commission. The summaries shall, at a minimum, identify the 26 date of the contract; the year in which the electric power 27 or energy is to be sold or delivered; the point of delivery; 28 defining characteristics such as the nature of the power 29 transaction (for example, reserve responsibility (firm, 30 non-firm)), length of contract and temporal differences (for 31 example, season, on-peak, or off-peak); and the applicable 32 prices stated at the point at which the electric power and 33 energy leaves the electric utility's on non-utility electric 34 supplier's transmission system, as the case may be, in the -70- LRB9000199JSgc 1 case of contracts described in item (i) and at the point at 2 which the electric power and energy enters the electric 3 utility's transmission system in the case of contracts in 4 item (B), provided, that the applicable price shall be 5 stated at the point at which the electric power and energy 6 enters the electric utility's transmission system in the case 7 of electric power and energy generated for delivery within 8 the electric utility's service area. In reporting to the 9 neutral fact-finder the price of power and energy sold under 10 bundled service contracts, electric utilities and 11 non-utility electric suppliers shall deduct from the contract 12 price the charges for delivery services, including transition 13 charges, applicable to delivery services customers in a 14 utility's service area, and charges for services, if any, 15 other than the provision of power and energy or delivery 16 services. The Commission may adopt orders setting forth 17 requirements governing the form and content of such 18 summaries. 19 (d) The neutral fact-finder shall calculate market 20 values for electric power and energy for each electric 21 utility, taking into account the defining characteristics 22 set forth in subsection (e) of this Section; provided, 23 however, that the neutral fact-finder may determine that a 24 particular value is appropriate for more than one electric 25 utility, or for all electric utilities in this State. The 26 neutral fact-finder shall calculate the market values for 27 the next year and, to the extent the summaries include a 28 sufficient number of actual contracts to represent a viable 29 market for the sale and delivery of electric power and energy 30 in subsequent years, for each of the 4 succeeding years. 31 (e) In calculating market values for electric power, the 32 neutral fact-finder shall weight contract prices (including 33 any contract price indices) by both the amount of capacity 34 covered by the contract and the number of hours in which -71- LRB9000199JSgc 1 capacity is to be provided under the contract in each period 2 of the year, shall take into account all of the defining 3 characteristics set forth in subsection (c) of this Section 4 and shall develop such values as required to represent the 5 different types of market values of electric power. 6 (f) The neutral fact-finder shall base calculations of 7 the market values for electric energy on the energy prices 8 stated in the contracts, and where no explicit energy prices 9 or index price basis are stated, on the actual energy costs 10 of the supplier in the corresponding period of the preceding 11 year that would have been applicable to the electric energy 12 provided under the contract. The neutral fact-finder shall 13 develop market values for electric energy and shall take 14 into account the defining characteristics set forth in 15 subsection (c) of this Section, as required to represent the 16 market values of such electric energy. 17 (g) If the contracts used by the neutral fact-finder 18 base prices for future years on one or more indices, the 19 neutral fact-finder shall identify such indices in his or 20 her final report, develop a weighting for each index, and 21 calculate a weighted average index. The market values shall 22 be calculated using the weighted average index when the 23 actual values of the component indices are known. 24 (h) The neutral fact-finder shall publish a final report 25 on or before October 30 of each year, setting forth the 26 calculated market values and stating the basis for such 27 calculations. 28 (i) The market values calculated by the neutral 29 fact-finder shall not be admissible in any proceeding for 30 any purpose other than the calculation of transition charges 31 or calculation of the price for the power purchase options 32 provided pursuant to subsections (b) and (c) of Section 33 16-110. 34 (j) The Commission shall have access to all contracts -72- LRB9000199JSgc 1 described in subsection (c) of this Section and shall perform 2 such audits as it and the neutral fact-finder deem necessary 3 to insure the accuracy of the summaries submitted to the 4 neutral fact-finder. The summaries described in subsection 5 (c) of this Section and each contract shall be accorded 6 confidential and proprietary treatment and their review 7 shall be subject to the provisions of Sections 4-404 and 8 5-108 of this Act, and the contract between the Commission 9 and the neutral fact-finder shall contain provisions 10 obligating the neutral fact-finder to comply with such 11 Sections. The summaries shall not be discoverable by any 12 party in any proceeding absent a special demonstration of 13 need. 14 (k) In calculating transition charges as defined in 15 Section 16-102, an electric utility shall apply the market 16 values that are determined as set forth in its tariff to the 17 electric power and energy that would have been used to serve 18 the delivery services customers' electric power and energy 19 requirements, based on the usage specified in Section 16-102 20 and taking into account the daily, monthly, annual and other 21 relevant characteristics of the customers' demands on the 22 electric utility's system. 23 (l) In calculating a lump sum transition charge payment 24 for the purposes of subsection (g) of Section 16-108, the 25 electric utility shall use the market values that were 26 determined as provided in its tariff, or if such market 27 values have not been determined for the full period of time 28 covered by such lump sum calculation, such other basis as is 29 stated in the electric utility's tariff filed pursuant to 30 Section 16-108. 31 (m) The Commission may approve or reject, or propose 32 modifications to, any tariff providing for the determination 33 of market value that has been proposed by an electric 34 utility pursuant to subsection (a) of this Section, but -73- LRB9000199JSgc 1 shall not have the power to otherwise order the electric 2 utility to implement a modified tariff or to place into 3 effect any tariff for the determination of market value 4 other than one incorporating the neutral fact-finder 5 procedure set forth in this Section. Provided, however, 6 that if each electric utility serving at least 300,000 7 customers has placed into effect a tariff that provides for 8 a determination of market value as a function of an exchange 9 traded or other market traded index, options or futures 10 contract or contracts, then the Commission can require any 11 other electric utilities to file such a tariff, and can 12 terminate the neutral fact-finder procedure for the periods 13 covered by such tariffs. 14 (n) To the extent that the summaries list a sufficient 15 number of actual contracts to represent a viable market and 16 market values can be determined for more than one year, the 17 electric utility shall offer customers that are obligated to 18 pay transition charges contracts that establish for one or 19 more years the market value or values to be used in 20 calculating the customer's transition charges in the 21 remaining years in which the customer is obligated to pay 22 such charges and for which market value determinations have 23 been made. The electric utility may require any customer to 24 give up to one year notice prior to entering into a one or 2 25 year contract pursuant to this subsection, up to 2 years 26 notice for a 3 year contract, and up to 3 years notice for a 27 4 or 5 year contract. Contracts of one or 2 years duration 28 shall incorporate the market values that were determined as 29 provided in this Section in the year in which the notice is 30 required to be given. Contracts of more than 2 years 31 duration shall incorporate the market values that are 32 determined in the year prior to the first year in which the 33 electric utility will collect transition charges from the 34 customer under a tariff filed pursuant to Section 16-108. -74- LRB9000199JSgc 1 The electric utility shall also allow customers to select, at 2 the time that a customer gives its notice, an option to 3 revoke the notice within 30 days following the determination 4 of the market values that will apply under the contract 5 requested by the customer, and may charge customers a fee 6 for such option that is set forth in a tariff filed pursuant 7 to Article IX and that is adequate to allow the electric 8 utility to recover its transactional costs and compensate it 9 based on the cost that would be incurred to purchase an 10 option to cover the risk associated with the customer's 11 option to revoke. The electric utility shall not be 12 required to offer customers a contract under this paragraph 13 for any year for which no determination of market value has 14 been made either by the neutral fact-finder or pursuant to a 15 tariff filed by the electric utility. 16 (o) An electric utility shall have no obligation to 17 provide electric power or energy as a tariffed service for 18 the electric power and energy requirements placed on 19 delivery service by any customer that has entered into a 20 contract pursuant to subsection (n) of this Section and has 21 not purchased and exercised an option to revoke, during the 22 term of the contract. A customer that has purchased and 23 exercised an option to revoke under this subsection shall 24 remain eligible to receive any tariffed service for which it 25 would otherwise be eligible. 26 (220 ILCS 5/16-113 new) 27 Sec. 16-113. Declaration of service as a competitive 28 service. 29 (a) An electric utility may by petition request the 30 Commission to declare a tariffed service provided by the 31 electric utility to be a competitive service. The electric 32 utility shall give notice of its petition to the public in 33 the same manner that public notice is provided for proposed -75- LRB9000199JSgc 1 general increases in rates for tariffed services, in 2 accordance with rules and regulations prescribed by the 3 Commission. The Commission shall hold a hearing on the 4 petition if a hearing is deemed necessary by the Commission. 5 The Commission shall declare the service to be a competitive 6 service for some identifiable customer segment or group of 7 customers, or some clearly defined geographical area within 8 the electric utility's service area, if the service or a 9 reasonably equivalent substitute service is reasonably 10 available to the customer segment or group or in the defined 11 geographical area at a comparable price from one or more 12 providers other than the electric utility or an affiliate of 13 the electric utility, and the electric utility has lost or 14 there is a reasonable likelihood that the electric utility 15 will lose business for the service to the other provider or 16 providers; provided, that the Commission may not declare the 17 provision of electric power and energy to be competitive 18 pursuant to this subsection with respect to any customer or 19 group of customers that is not eligible pursuant to Section 20 16-104 to take delivery services provided by the electric 21 utility. In determining whether to grant or deny a petition 22 to declare the provision of electric power and energy 23 competitive, the Commission shall consider, in applying the 24 above criteria, whether there is adequate transmission 25 capacity into the service area of the petitioning electric 26 utility to make electric power and energy reasonably 27 available to the customer segment or group or in the defined 28 geographical area from one or more providers other than the 29 electric utility or an affiliate of the electric utility, in 30 accordance with this subsection. The Commission shall make 31 its determination and issue its final order declaring or 32 refusing to declare the service to be a competitive service 33 within 120 days following the date that the petition is 34 filed, or otherwise the petition shall be deemed to be -76- LRB9000199JSgc 1 granted; provided, that if the petition is deemed to be 2 granted by operation of law, the Commission shall not 3 thereby be precluded from finding and ordering, in a 4 subsequent proceeding initiated by the Commission, and after 5 notice and hearing, that the service is not competitive 6 based on the criteria set forth in this subsection. 7 (b) Any customer who is taking a tariffed service that 8 is declared to be a competitive service pursuant to 9 subsection (a) of this Section shall be entitled to continue 10 to take the service from the electric utility on a tariffed 11 basis for a period of 3 years following the date that the 12 service is declared competitive, or such other period as is 13 stated in the electric utility's tariff pursuant to Section 14 16-110. This subsection shall not require the electric 15 utility to offer or provide on a tariffed basis any service 16 to any customer that was not taking such service on a 17 tariffed basis on the date the service was declared to be 18 competitive. 19 (c) If the Commission denies a petition to declare a 20 service to be a competitive service, or determines in a 21 separate proceeding that a service is not competitive based 22 on the criteria set forth in subsection (a), the electric 23 utility may file a new petition no earlier than 6 months 24 following the date of the Commission's order, requesting, on 25 the basis of additional or different facts and 26 circumstances, that the service be declared to be a 27 competitive service. 28 (d) The Commission shall not deny a petition to declare 29 a service to be a competitive service, and shall not find 30 that a service is not a competitive service, on the grounds 31 that it has previously denied the petition of another 32 electric utility to declare the same or a similar service be 33 a competitive service or has previously determined that the 34 same or a similar service provided by another electric -77- LRB9000199JSgc 1 utility is not a competitive service. 2 (e) An electric utility may declare a service, other 3 than delivery services or the provision of electric power or 4 energy, to be competitive by filing with the Commission at 5 least 14 days prior to the date on which the service is to 6 become competitive a notice describing the service that is 7 being declared competitive and the date on which it will 8 become competitive; provided, that any customer who is 9 taking a tariffed service that is declared to be a 10 competitive service pursuant to this subsection (e) shall be 11 entitled to continue to take the service from the electric 12 utility on a tariffed basis until the electric utility files, 13 and the Commission grants, a petition to declare the service 14 competitive in accordance with subsection (a) of this 15 Section. The Commission shall be authorized to find and 16 order, after notice and hearing in a subsequent proceeding 17 initiated by the Commission, that any service declared to be 18 competitive pursuant to this subsection (e) is not 19 competitive in accordance with the criteria set forth in 20 subsection (a) of this Section. 21 (220 ILCS 5/16-114 new) 22 Sec. 16-114. Decommissioning rate for delivery services 23 customers and certain other electric power users. 24 (a) On or before June 30, 1999 but no earlier than 25 January 1, 1999, each electric utility owning an interest 26 in, or having responsibility as a matter of contract or 27 statute for decommissioning costs of, one or more nuclear 28 power plants, shall file with the Commission a tariff 29 conforming to the provisions of Section 9-201.5 of this Act, 30 in addition to any decommissioning tariff already on file, 31 that is applicable to users of electric power and energy 32 located in the electric utility's service area that take 33 some or all of their electric power and energy requirements -78- LRB9000199JSgc 1 from a non-utility electric supplier or from an electric 2 utility other than the electric utility in whose service 3 area the user is located; provided, however, that for a user 4 that obtained electric power and energy from its own 5 cogeneration or self-generation facilities on or before 6 January 1, 1997, and subsequently takes services from a 7 non-utility electric supplier or an electric utility other 8 than the electric utility in whose service area the user is 9 located for any portion of its electric power and energy 10 requirements formerly obtained from those facilities, the 11 tariff required by this Section shall not be applicable in 12 any year to that portion of the user's electric power and 13 energy requirements formerly obtained from those facilities, 14 provided that for the purposes of this Section, such portion 15 shall not exceed the average number of kilowatt-hours per 16 year obtained from the cogeneration or self-generation 17 facilities during the 3 years prior to the date on which the 18 user became eligible for delivery services. The Commission 19 may, if it deems one necessary, hold a hearing on such 20 tariff but shall permit the electric utility's tariff 21 together with any modifications made as a result of the 22 hearing to become effective no later than January 1, 2000. 23 The tariff filed pursuant to this Section shall be 24 applicable to any user taking some or all of its electric 25 power and energy requirements from a non-utility electric 26 supplier or from an electric utility other than the electric 27 utility in whose service area the user is located on and 28 after the date that the user becomes eligible for delivery 29 services in accordance with Section 16-104. 30 (b) If the electric utility has in effect as of the 31 effective date of this amendatory Act of 1997 a 32 decommissioning rate as defined in Section 9-201.5 33 conforming to the requirements of that Section, the tariff 34 required by this Section shall if the electric utility -79- LRB9000199JSgc 1 requests be consistent with its decommissioning rate that is 2 already in effect. 3 (c) The tariff required by this Section shall be 4 included by the Commission in the reviews required by 5 subsection (d) of Section 9-201.5. If as a result of such 6 review the Commission eliminates the electric utility's 7 decommissioning rate as defined in that Section, the 8 Commission shall, in the same order, establish a charge 9 applicable to the users described in subsection (a) of this 10 Section which shall recover from such customers an 11 appropriately allocated portion of the electric utility's 12 decommissioning funding obligation and shall make a finding 13 that the electric utility is able, through its charges, 14 including the charges established under this Section, to meet 15 its decommissioning funding obligations. 16 (220 ILCS 5/16-115 new) 17 Sec. 16-115. Certification of non-utility electric 18 suppliers. 19 (a) Any non-utility electric supplier must obtain a 20 certificate of service authority from the Commission in 21 accordance with this Section before serving any retail 22 customer or other user located in this State. A non-utility 23 electric supplier may request, and the Commission may grant, 24 a certificate of service authority for the entire State or 25 for a specified geographic area of the State. 26 (b) A non-utility electric supplier seeking a 27 certificate of service authority shall file with the 28 Commission a verified application containing information 29 showing that the applicant meets the requirements of this 30 Section. The non-utility electric supplier shall publish 31 notice of its application in the official State newspaper 32 within 10 days following the date of its filing. No later 33 than 45 days after the application is properly filed with -80- LRB9000199JSgc 1 the Commission and such notice is published, the Commission 2 shall issue its order granting or denying the application. 3 (c) The Commission shall grant the application for a 4 certificate of service authority if it makes the following 5 findings based on the verified application and such other 6 information as the applicant may submit: 7 (1) That the applicant possesses sufficient 8 technical, financial and managerial resources and 9 abilities to provide the service for which it seeks a 10 certificate of service authority. In determining the 11 level of technical, financial, and managerial resources 12 and abilities which the applicant must demonstrate, the 13 Commission shall consider (i) the characteristics, 14 including the size and the financial sophistication, of 15 the customers that the applicant seeks to serve, and 16 (ii) whether the applicant seeks to provide electric 17 power and energy using property, plant or equipment 18 which it owns, controls or operates. 19 (2) That the applicant will comply with applicable 20 federal, State and regional statutes, rules, policies, 21 practices and procedures for the use, operation and 22 maintenance of the integrity of the interconnected 23 electric transmission system. 24 (3) That the applicant will only provide service 25 (i) to retail customers in an electric utility's service 26 area that are both eligible to take delivery services 27 under the tariffs of such electric utility and that are 28 taking delivery services or have made or are making any 29 payments they are obligated to make pursuant to 30 subsection (g) of Section 16-108 or (ii) to customers 31 that are served by and are eligible to take delivery 32 services under the terms and conditions of service 33 established by any municipal utility or electric 34 cooperative that serves such customer. -81- LRB9000199JSgc 1 (4) That the applicant has committed to and will 2 submit annually a summary of its contract data to the 3 neutral fact-finder, and make its contracts for purchase 4 and sale of electric power and energy available for 5 review by the Staff of the Commission, on a confidential 6 and proprietary basis, in the manner and only for the 7 purposes described in Section 16-112. 8 (5) That in addition to complying with the 9 requirements of paragraph (4) of this subsection (c), 10 the applicant will comply with such informational or 11 reporting requirements as the Commission may by rule 12 establish. 13 (6) That if the applicant, its corporate 14 affiliates or the applicant's principal source of 15 electricity (to the extent such source is known at the 16 time of the application) owns or controls facilities, 17 for public use, for the transmission or distribution of 18 electricity to end-users within a defined geographic 19 area to which electric power and energy can be 20 physically and economically delivered by the electric 21 utility or utilities in whose service area or areas the 22 proposed service will be offered, such applicant, its 23 corporate affiliate or principal source of electricity, 24 as the case may be, provides delivery services to the 25 electric utility or utilities in whose service area or 26 areas the proposed service will be offered that are 27 reasonably comparable to those offered by the electric 28 utility, and provided further, that the applicant agrees 29 to certify annually to the Commission that it is 30 continuing to provide such delivery services and that it 31 has not knowingly assisted any person or entity to avoid 32 the requirements of this Section. For purposes of this 33 subsection, "principal source of electricity" shall mean 34 a single source that supplies at least 65% of the -82- LRB9000199JSgc 1 applicant's power and energy, and the purchase of 2 transmission and distribution services pursuant to a 3 filed tariff under the jurisdiction of the Federal 4 Energy Regulatory Commission or a state public utility 5 commission shall not constitute control of access to the 6 provider's transmission and distribution facilities. 7 (d) A non-utility electric supplier that owns a 8 cogeneration or self-generation facility and that seeks only 9 to provide electric power and energy from such facility to 10 retail customers at separate locations which customers are 11 both (i) owned by, or a subsidiary or other corporate 12 affiliate of, such non-utility electric supplier and (ii) 13 eligible for delivery services, shall be granted a 14 certificate of service authority upon filing an application 15 and notifying the Commission that it has entered into an 16 agreement with the relevant electric utilities pursuant to 17 Section 16-116. 18 (e) Each non-utility electric supplier shall be subject 19 to and shall comply with the requirements and obligations 20 imposed on public utilities by Sections 8-201 through 8-207, 21 8-301, 8-505 and 8-507 of this Act, to the extent they have 22 application to the services offered by the non-utility 23 electric supplier. 24 (f) No non-utility electric supplier, or electric 25 utility other than the electric utility in whose service 26 area a customer is located, shall enter into or employ any 27 arrangements which have the effect of preventing a retail 28 customer with a maximum electrical demand of less than one 29 megawatt from having access to the services of the electric 30 utility in whose service area the customer is located or 31 charging for such access. 32 (g) The Commission shall have the authority to alter, 33 modify or revoke the certificate of service authority of a 34 non-utility electric supplier if the Commission finds, after -83- LRB9000199JSgc 1 notice and hearing held on complaint or on the Commission's 2 own motion, that the non-utility electric supplier has 3 violated or is no longer in conformance with the provisions 4 of subsection (c) or (f) of this Section. The Commission 5 shall also have the authority, after notice and hearing, to 6 order a non-utility electric supplier to cease and correct 7 any violation of or nonconformance with the provisions of 8 subsection (c), (e), or (f). 9 (h) The Commission shall have jurisdiction in 10 accordance with Article X of this Act to entertain and 11 dispose of any complaint against any non-utility electric 12 supplier alleging (i) that the non-utility electric supplier 13 has violated or is in nonconformance with any of the items 14 (1) through (6) of subsection (c), or subsection (f), of 15 this Section; (ii) that the non-utility electric supplier 16 serving retail customers having maximum electrical demands 17 of less than one megawatt has failed to provide service in 18 accordance with the terms of its contract or contracts with 19 such customer or customers; (iii) that the non-utility 20 electric supplier has violated or is in nonconformance with 21 the delivery services tariff of, or any of its agreements 22 relating to delivery services with, the electric utility, 23 municipal utility or electric cooperative providing delivery 24 services; or (iv) that the non-utility electric supplier has 25 violated or failed to comply with the requirements of 26 Sections 8-201 through 8-207, 8-301, 8-505 and 8-507 of this 27 Act as made applicable to non-utility electric suppliers 28 through subsection (e) of this Section. 29 (i) The Commission shall have the authority to 30 promulgate rules and regulations to carry out the provisions 31 of this Section. On or before July 1, 1998, the Commission 32 shall adopt a rule or rules applicable to the certification 33 of those non-utility electric suppliers that seek to serve 34 only retail customers with maximum electrical demands of one -84- LRB9000199JSgc 1 megawatt or more which shall provide for (1) expedited and 2 streamlined procedures, compared to those set forth in 3 subsection (b) of this Section, for certification of such 4 non-utility electric suppliers, and (2) specific criteria 5 which, if met by any such non-utility electric supplier, 6 shall constitute the demonstration of technical, financial 7 and managerial resources and abilities to provide service 8 required by subsection (c)(1) of this Section, such as a 9 requirement to post a bond or letter of credit, from a 10 responsible surety or financial institution, of sufficient 11 size for the nature and scope of the services to be 12 provided; demonstration of adequate insurance for the scope 13 and nature of the services to be provided; and experience in 14 providing similar services in other jurisdictions. 15 (220 ILCS 9/16-116 new) 16 Sec. 16-116. Services provided by electric utilities to 17 non-utility electric suppliers. Each electric utility shall 18 permit non-utility electric suppliers to interconnect 19 facilities to those owned by the utility provided they meet 20 established standards for such interconnection, and may 21 provide standby or other services to non-utility electric 22 suppliers. The non-utility electric supplier shall sign a 23 contract setting forth the prices, terms and conditions for 24 interconnection with the electric utility and the prices, 25 terms and conditions for services provided by the electric 26 utility to the non-utility electric supplier in connection 27 with the delivery by the electric utility of electric power 28 and energy supplied by the non-utility electric supplier. 29 To the extent the services provided by the electric utility 30 to such non-utility electric suppliers are not subject to 31 the jurisdiction of the Federal Energy Regulatory Commission, 32 and are not competitive services, they shall be provided 33 through tariffs that are filed with the Commission. -85- LRB9000199JSgc 1 (220 ILCS 5/16-117 new) 2 Sec. 16-117. Alternative rate regulation for electric 3 utilities. 4 (a) Notwithstanding any other Sections of this Act or 5 the Commission's rules, the Commission, upon petition by an 6 electric utility and after notice and hearing, may authorize 7 for all or part of the tariffed services of that electric 8 utility the implementation of one or more programs for an 9 initial period not to exceed 4 years consisting of (i) 10 alternatives to rate of return regulation including, but not 11 limited to, earnings sharing, rate moratoria, price caps or 12 flexible rate options, or (ii) regulatory mechanisms that 13 reward or penalize the electric utility through the 14 adjustment of rates based on utility performance. In the 15 case of regulatory mechanisms that reward or penalize the 16 electric utility through the adjustment of rates based on 17 the utility's performance, the utility's performance shall 18 be compared to standards established in the Commission order 19 authorizing the implementation of the regulatory mechanism. 20 The Commission is specifically authorized to approve in 21 response to such petitions different forms of alternatives 22 to rate of return regulation or other regulatory mechanisms 23 to fit the particular characteristics and requirements of 24 different electric utilities and their service territories. 25 The Commission shall find that the program is reasonable and 26 should be approved if it finds, based on the record, that: 27 (1) During the mandatory transition period, for any 28 service which is not subject to subsections (a) and (b) 29 of Section 16-111, and for all services subsequent to 30 December 31, 2004, the program is likely to result in 31 prices lower than rates which otherwise would have been 32 in effect under traditional rate of return regulation 33 for the services covered by the program; 34 (2) implementation of the program is likely to -86- LRB9000199JSgc 1 result in substantial and identifiable benefits which 2 will be realized by customers served under the program 3 and that would not be realized in the absence of the 4 program such as but not limited to at least 2 of the 5 following or of such other similar benefits as the 6 Commission finds based on the record: increased 7 customer understanding of the utility's prices and 8 services, increased efficiency of customers' use of the 9 electric utility's services, improved or more varied 10 service offerings, increased reliability and quality of 11 service, lower prices or rates, and enhanced 12 opportunities for economic development in the electric 13 utility's service area; 14 (3) the program is not likely to result in undue 15 discrimination to any class of customers taking tariffed 16 service from the electric utility; 17 (4) implementation of the program is not likely to 18 result in deterioration of the electric utility's 19 financial condition in a manner that would adversely 20 affect its ability to provide safe, adequate and 21 reliable electric utility service and will not adversely 22 affect the electric utility's ability to provide such 23 service; 24 (5) the electric utility has complied with or is in 25 compliance with the requirements of Sections 16-104 and 26 16- 105, to the extent that the requirements of those 27 Sections are applicable to the electric utility at the 28 time the petition is filed; 29 (6) the electric utility has complied with or is in 30 compliance with the requirements of subsections (a), (b), 31 and (e) of Section 16-111, to the extent that the 32 requirements of those subsections are applicable to the 33 electric utility at the time the petition is filed, and 34 the program will result in compliance with those -87- LRB9000199JSgc 1 subsections to the extent that they will be applicable 2 to the electric utility during the period that the 3 program is to be in effect; 4 (7) the program includes reporting and other 5 provisions that will enable the Commission to adequately 6 monitor implementation of the program; and 7 (8) the program includes provisions for an 8 equitable sharing of any net economic benefits between 9 the utility and its customers to the extent the program 10 is likely to result in such benefits. 11 The Commission shall issue its order no later than 8 12 months from the date of the filing of the petition. If the 13 Commission cannot make the required findings, it shall 14 specifically identify in its order the reason or reasons why 15 the proposed program does not meet the required criteria, 16 and shall identify any modifications supported in the record 17 that would cause the program to satisfy the criteria. In 18 the event the order identifies any such modifications it 19 shall not become a final order subject to petitions for 20 rehearing until 15 days after service of same by the 21 Commission. The electric utility shall have 14 days 22 following the time of the service of the order to notify the 23 Commission in writing whether it will accept any 24 modifications so identified in the order or whether it has 25 elected not to proceed with the program. If the electric 26 utility notifies the Commission that it will accept such 27 modifications, the Commission shall issue an amended order 28 without further hearing within 14 days following such 29 notification approving the program as modified and such 30 order shall be considered to be a final order of the 31 Commission subject to petitions for rehearing and appellate 32 procedures. 33 (b) The Commission may, upon subsequent petition by the 34 electric utility, authorize the extension of a program that -88- LRB9000199JSgc 1 was previously approved pursuant to subsection (a) or 2 approve revisions or modifications of such a program to be 3 effective, after the initially approved program has been in 4 effect for 4 years. Any such petition seeking an extension, 5 revision or modification of such a program must be 6 accompanied by an evaluation of the program addressing the 7 criteria set forth in subsection (a). The electric 8 utility's petition may, but is not required to, specify a 9 termination date for the extended, revised or modified 10 program. The Commission may require a review of the 11 extended, revised or modified program at 4 year intervals, 12 or such longer intervals as may be ordered by the 13 Commission, for the purpose of determining whether the 14 program should be revised, modified or terminated. 15 (c) The Commission (i) shall not, either on its own 16 motion or on complaint, order any revision or modification 17 of a program that was approved under subsection (a) or (b) 18 during the first 4 years that the program is in effect, and 19 (ii) shall not on its own motion or on complaint order any 20 revision or modification of a program following the first 4 21 years except after notice to the electric utility and 22 hearing and making the findings required by subsection (a) 23 with respect to such revision or modification; provided, 24 that notwithstanding (i) and (ii), the Commission shall 25 order a conforming revision or modification of a program 26 that was approved under subsection (a) or (b), and, upon 27 making the findings required by subsection (a) or (b), may 28 make such other revisions or modifications as it finds 29 appropriate based on the record, in connection with granting 30 the electric utility an increase in base rates pursuant to 31 subsection (d) of Section 16-111, and provided further, that 32 any program which has been approved under subsection (a) or 33 (b) shall continue in effect until revised, modified or 34 terminated by order of the Commission. -89- LRB9000199JSgc 1 (d) The Commission shall have authority at any time on 2 its own motion or on complaint, and upon notice to the 3 electric utility, to require the electric utility to 4 demonstrate that the terms, conditions, and prices being 5 applied by the utility pursuant to a program approved under 6 this Section are consistent with the provisions of that 7 program, as approved by the Commission and, after hearing 8 and upon a finding, based on evidence, that the terms, 9 conditions, and prices being applied by the utility pursuant 10 to that program are not consistent with the provisions of 11 that program, to order the electric utility to change the 12 administration of the terms and conditions and the 13 application of its prices to be consistent with the 14 provisions of the program; provided, however, that the 15 Commission shall not in any such order issued during the 16 first 4 years that a program previously approved by the 17 Commission is in effect direct the utility to revise, modify 18 or cancel the program. 19 (e) Nothing in this Section shall authorize the 20 Commission (i) to allow an electric utility to put into 21 effect, during the mandatory transition period, base rates 22 in excess of those permitted by subsections (a), (b), and 23 (d) of Section 16-111, or (ii) to require an electric utility 24 to put into effect, during the mandatory transition period, 25 base rates lower than those provided for in subsections (a) 26 and (b) of Section 16-111. 27 (f) The Commission shall not be authorized to allow or 28 order an electric utility to place a program into effect 29 pursuant to this Section applicable to delivery services 30 provided by the electric utility, unless the electric 31 utility already has in effect a delivery services tariff 32 conforming to the requirements of subsection (a) of Section 33 16-108 of this Act. 34 (g) Notwithstanding the provisions of Section 5-102, -90- LRB9000199JSgc 1 5-103 and 5-109 of this Act, the Commission, if requested, 2 shall, in conjunction with an order approving a program in 3 accordance with subsection (a) or (b) of this Section for 4 all of the regulated business of an electric utility, 5 authorize the electric utility to keep its accounts in the 6 form required by the Federal Energy Regulatory Commission 7 and to file its FERC annual report with the Commission, in 8 lieu of the accounts and reports otherwise required by 9 Sections 5-102, 5-103 and 5-109 of this Act. 10 (h) Subsequent to December 31, 2004, and notwithstanding 11 the provisions of Sections 7-101 or 7-102 of this Act, an 12 electric utility that has a program approved under subsection 13 (a) or (b) for all of the regulated business of that 14 electric utility shall not be required to file, or to obtain 15 the consent of the Commission for, any assignment, transfer, 16 lease, mortgage, purchase, sale, merger, consolidation, 17 contract or other transaction for which filing, consent and 18 approval would otherwise be required by Sections 7-101 or 19 7-102 of this Act when the transaction involves either (1) 20 the disposition or acquisition of property in an amount that 21 is 1% or less of the average total gross utility plant in 22 service or (2) a sale price or annual consideration in an 23 amount that is 2.5% or less of the total revenue of the 24 electric utility, as the case may be, during the preceding 25 12 months. 26 (220 ILCS 5/16-118 new) 27 Sec. 16-118. Existing contracts not affected. Nothing 28 in this Article XVI shall affect the right of an electric 29 utility to continue to provide, or the right of the customer 30 to continue to receive, service pursuant to a contract for 31 electric service between the electric utility and the 32 customer, in accordance with the prices, terms and 33 conditions provided for in that contract. Either the -91- LRB9000199JSgc 1 electric utility or the customer may require compliance with 2 the prices, terms and conditions of such contract. 3 (220 ILCS 5/16-119 new) 4 Sec. 16-119. Community Energy Assistance. 5 (a) This Section authorizes the establishment of a 6 Community Energy Assistance Program to provide continued 7 access to energy services to low income residential 8 customers in the State of Illinois and to encourage energy 9 conservation among those customers. 10 (b) As promptly as practicable following the enactment 11 of this amendatory Act of 1997, the General Assembly, or a 12 Joint Committee thereof, shall establish a Program Design 13 Group. The Program Design Group is to be chaired by the 14 Department of Commerce and Community Affairs with one person 15 to represent the interests of each of the following: (i) 16 electric utilities, (ii) gas utilities, (iii) power 17 marketers, (iv) low-income energy customers, (v) Illinois 18 community action agencies, (vi) commercial energy consumers, 19 and (vii) industrial energy consumers. 20 (c) Within 6 months of its establishment, the Program 21 Design Group shall hold public hearings to develop 22 recommendations to the General Assembly, or a Joint Committee 23 thereof, concerning the design and implementation of a 24 Community Energy Assistance Program to provide access to 25 essential energy services to low-income residential 26 customers in Illinois. The Commission must hold public 27 hearings on the Program Design Group's recommendations. The 28 program shall become effective only upon the approval of the 29 General Assembly, which may accept or reject the 30 recommendations of the Program Design Group. This Program 31 must include: 32 (1) a definition of an eligible low-income 33 residential customer based on the federal poverty line -92- LRB9000199JSgc 1 and other information the Program Design Group deems 2 appropriate; 3 (2) provisions for ensuring access to essential 4 energy services for low-income residential customers; 5 (3) consideration of arrearages for a period not to 6 exceed 12 months; 7 (4) development of demographic and other 8 information (including household consumption 9 information) necessary to determine the total number of 10 customers eligible for assistance and estimates of 11 funding requirements for the Program; 12 (5) provisions to encourage energy efficiency among 13 low-income residential customers. 14 (d) Funding for the Program shall be provided from (i) 15 funds provided by the Federal Low-Income Heating and Energy 16 Assistance Program, (ii) other funds made available in annual 17 appropriations by the General Assembly, and (iii) other 18 competitively neutral sources from the broadest possible base 19 recommended by the Program Design Group and authorized by the 20 General Assembly. 21 (e) The Program shall be administered by the Department 22 of Commerce and Community Affairs. 23 Section 10. The Public Utilities Act is amended by 24 changing Sections 8-405 and 8-405.1 and adding Section 25 8-402.5 as follows: 26 (220 ILCS 5/8-402.5 new) 27 Sec. 8-402.5. Inseverability and emergency rules for 28 retail wheeling of electricity. 29 (a) Except for the changes made by Section 10 of this 30 amendatory Act of 1997, the changes made to existing 31 statutory law by this amendatory Act of 1997 are mutually 32 dependent and inseverable. If any change, other than the -93- LRB9000199JSgc 1 changes made by Section 10 of this amendatory Act of 1997, 2 made to existing statutory law by this amendatory Act of 1997 3 or its application to any person or circumstance is held 4 invalid, then all changes, except for the changes made by 5 Section 10 of this amendatory Act of 1997, made to existing 6 law by this amendatory Act of 1997 are invalid in their 7 entirety. A declaration of the invalidity of the changes, 8 other than the changes made by Section 10 of this amendatory 9 Act of 1997, made to existing statutory law by this 10 amendatory Act of 1997 shall not affect the validity of 11 statutory law as it existed immediately before the effective 12 date of this amendatory Act of 1997. A declaration of 13 invalidity, however, shall not affect the validity of any 14 contracts entered into, transactions implemented, services 15 provided, billings rendered, or payments made in accordance 16 with the provisions of this amendatory Act of 1997 before 17 the date of such invalidity. 18 (b) If any of the changes, other than the changes made 19 by Section 10 of this amendatory Act of 1997, made to 20 existing statutory law by this amendatory Act of 1997 are 21 declared invalid, the Commission shall, within 30 days after 22 the entry of the final order of invalidity, initiate an 23 emergency rulemaking pursuant to Section 5-45 of the 24 Illinois Administrative Procedure Act and shall within 60 25 days after initiating such rulemaking adopt a rule providing 26 for wheeling to retail customers. Any such rule adopted 27 shall (1) establish a phase-in of wheeling for all customers 28 beginning on January 1, 2000 and ending January 1, 2005, and 29 (2) establish specific cost recovery mechanisms that provide 30 each electric utility with a reasonable opportunity to 31 recover those investments and other assets that were 32 included in the electric utility's rate base as of October 33 1, 1996 and its other costs of providing tariffed service 34 including its cost of complying with decommissioning funding -94- LRB9000199JSgc 1 obligations, taking into account the utility's ability and 2 efforts to reduce costs and increase efficiencies. 3 (220 ILCS 5/8-405) (from Ch. 111 2/3, par. 8-405) 4 Sec. 8-405. Energy services study. 5 (a) The Commission is authorized, to the extent 6 consistent with its energy supply planning responsibilities 7 and the energy supply planning objectives of this Act, to 8 study strategic options for changing the structure of energy 9 services markets when (a) such study is authorized by a vote 10 of the full Commission; (b) the study findings are subject to 11 full public hearings and opportunity for comment; and (c) the 12 study findings and any findings from public hearings are 13 fully reported to the General Assembly together with any 14 recommendations adopted by a vote of the Commission 15 concerning the need for legislative action. 16 Notwithstanding any provision to the contrary the 17 Commission shall not require or implement any system or means 18 for the dispatch or brokering of power from a central 19 location unless and until such action is recommended, after 20 notice and hearing, by a majority vote of the entire 21 Commission and expressly authorized by the General Assembly 22 upon consideration of the Commission recommendation. 23 (b) If any of the changes, other than the changes made 24 by Section 10 of this amendatory Act of 1997, made to 25 existing statutory law by this amendatory Act of 1997 are 26 declared invalid, then the provisions of subsection (a) of 27 this Section shall be inoperative. 28 (Source: P.A. 84-617.) 29 (220 ILCS 5/8-405.1) (from Ch. 111 2/3, par. 8-405.1) 30 Sec. 8-405.1. Feasibility of wheeling. 31 (a) The Commission, in cooperation with the Department 32 of Natural Resources, shall study the feasibility of wheeling -95- LRB9000199JSgc 1 electricity in Illinois. Such study shall include, but not 2 be limited to: 3 (a) the potential effect of wheeling on electrical rates 4 for all electrical customers; 5 (b) the effects of wheeling on rural electric 6 cooperatives and electrical suppliers in Illinois; 7 (c) the authority of the State to mandate wheeling; 8 (d) the impact on the obligation of public utilities to 9 provide service in their service areas. 10 The Commission shall report the findings of the study to 11 the General Assembly no later than January 1, 1988. 12 (b) If any of the changes, other than the changes made 13 by Section 10 of this amendatory Act of 1997, made to 14 existing statutory law by this amendatory Act of 1997 are 15 declared invalid, then the provisions of subsection (a) of 16 this Section shall be inoperative. 17 (Source: P.A. 89-445, eff. 2-7-96.) 18 (220 ILCS 5/7-108 rep.) 19 (220 ILCS 5/7-205 rep.) 20 (220 ILCS 5/7-206 rep.) 21 (220 ILCS 5/8-401 rep.) 22 (220 ILCS 5/8-402 rep.) 23 (220 ILCS 5/8-402.1 rep.) 24 (220 ILCS 5/8-404 rep.) 25 Section 15. Sections 7-108, 7-205, 7-206, 8-401, 8-402, 26 8-402.1, and 8-404 of the Public Utilities Act are repealed. 27 Section 20. The Public Utilities Revenue Act is amended 28 by adding Section 4.5 as follows: 29 (35 ILCS 620/4.5 new) 30 Sec. 4.5. Replacement taxes. The General Assembly finds 31 that existing taxes imposed on electric utilities in this -96- LRB9000199JSgc 1 State based on their gross receipts may place Illinois 2 electric utilities at a competitive disadvantage to 3 out-of-State electricity suppliers who will be allowed to 4 supply, furnish, sell, and deliver electricity to retail 5 customers in Illinois as a result of the Electric Service 6 Transition and Customer Choice Law, and that as a result, 7 the State of Illinois may suffer a reduction in the revenues 8 from those taxes. Accordingly, on or before January 1, 1999, 9 the General Assembly shall enact legislation, to be 10 effective no later than January 1, 2000, that shall amend or 11 repeal the Public Utilities Revenue Act and the tax imposed 12 by Section 2-202 of the Public Utilities Act, and, if deemed 13 necessary by the General Assembly, enact a replacement tax 14 to be applicable either (i) to the privilege of supplying, 15 furnishing, selling, and delivering electricity to retail 16 customers in this State or (ii) to the use or consumption of 17 electricity at retail in this State, to the ends (1) that 18 the same amount of tax revenues collected through those Acts 19 amended or repealed shall be collected through the 20 replacement Acts and (2) that the incidence of such tax 21 shall be equitably borne either (A) by all electric 22 utilities and non-utility electric suppliers supplying, 23 furnishing, selling, or delivering electricity to retail 24 customers in this State or (B) by all retail users of 25 electricity in this State. 26 Section 99. Effective date. This Act takes effect on 27 June 1, 1997. -97- LRB9000199JSgc 1 INDEX 2 Statutes amended in order of appearance 3 220 ILCS 5/1-102 from Ch. 111 2/3, par. 1-102 4 220 ILCS 5/4-403 new 5 220 ILCS 5/4-404 new 6 220 ILCS 5/5-104 from Ch. 111 2/3, par. 5-104 7 220 ILCS 5/6-102 from Ch. 111 2/3, par. 6-102 8 220 ILCS 5/7-101 from Ch. 111 2/3, par. 7-101 9 220 ILCS 5/7-102 from Ch. 111 2/3, par. 7-102 10 220 ILCS 5/7-102.5 new 11 220 ILCS 5/8-503 from Ch. 111 2/3, par. 8-503 12 220 ILCS 5/8-510 from Ch. 111 2/3, par. 8-510 13 220 ILCS 5/9-220 from Ch. 111 2/3, par. 9-220 14 220 ILCS 5/10-103 from Ch. 111 2/3, par. 10-103 15 220 ILCS 5/10-113 from Ch. 111 2/3, par. 10-113 16 220 ILCS 5/10-114 new 17 220 ILCS 5/Art. XVI heading new 18 220 ILCS 5/16-101 new 19 220 ILCS 5/16-102 new 20 220 ILCS 5/16-103 new 21 220 ILCS 5/16-104 new 22 220 ILCS 5/16-105 new 23 220 ILCS 5/16-106 new 24 220 ILCS 5/16-107 new 25 220 ILCS 5/16-108 new 26 220 ILCS 5/16-109 new 27 220 ILCS 5/16-110 new 28 220 ILCS 9/16-111 new 29 220 ILCS 5/16-112 new 30 220 ILCS 5/16-113 new 31 220 ILCS 5/16-114 new 32 220 ILCS 5/16-115 new 33 220 ILCS 9/16-116 new 34 220 ILCS 5/16-117 new -98- LRB9000199JSgc 1 220 ILCS 5/16-118 new 2 220 ILCS 5/16-119 new 3 220 ILCS 5/8-402.5 new 4 220 ILCS 5/8-405 from Ch. 111 2/3, par. 8-405 5 220 ILCS 5/8-405.1 from Ch. 111 2/3, par. 8-405.1 6 220 ILCS 5/7-108 rep. 7 220 ILCS 5/7-205 rep. 8 220 ILCS 5/7-206 rep. 9 220 ILCS 5/8-401 rep. 10 220 ILCS 5/8-402 rep. 11 220 ILCS 5/8-402.1 rep. 12 220 ILCS 5/8-404 rep. 13 35 ILCS 620/4.5 new