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90_HB1998
New Act
65 ILCS 5/8-11-2 from Ch. 24, par. 8-11-2
220 ILCS 5/3-105 from Ch. 111 2/3, par. 3-105
220 ILCS 5/4-305 from Ch. 111 2/3, par. 4-305
220 ILCS 5/7-108
220 ILCS 5/8-404 from Ch. 111 2/3, par. 8-404
220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406
220 ILCS 5/9-212 from Ch. 111 2/3, par. 9-212
220 ILCS 5/9-213 from Ch. 111 2/3, par. 9-213
220 ILCS 5/9-214 from Ch. 111 2/3, par. 9-214
220 ILCS 5/8-402 rep.
220 ILCS 5/8-402.1 rep.
220 ILCS 5/8-407 rep.
220 ILCS 5/9-215 rep.
220 ILCS 5/9-215.1 rep.
220 ILCS 5/9-217 rep.
Creates the Electric Customer Choice and Protection Act.
Provides that consumers may purchase electricity from any
electric service provider. Requires incumbent electric
utilities to provide bundled electric service. Provides for
the establishment of bundled service rates and transition
period rates. Authorizes the imposition of a financial
viability and reliability charge. Provides for a State and
Municipal Revenue Task Force. Provides for an electricity
use tax. Creates the Illinois Low-Income Home Energy
Assistance Program Fund. Amends the Illinois Municipal Code
and the Public Utilities Act to make accommodating changes.
Effective immediately.
LRB9004576JSgcA
LRB9004576JSgcA
1 AN ACT to create the Electric Customer Choice and
2 Protection Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. Short Title. This Act may be cited as the
6 Electric Customer Choice and Protection Act.
7 Section 5. Legislative findings; electric services.
8 With respect to the provision and sale of electric power and
9 electric services within this State, the General Assembly
10 finds that:
11 (1) Over the past 20 years, the federal government and
12 State government have introduced competition in several
13 industries that previously had been regulated as natural
14 monopolies.
15 (2) Many state governments are implementing or studying
16 policies that would create a competitive market for the
17 generation of electricity.
18 (3) Because of advances in electric generation
19 technology and federal initiatives to encourage greater
20 competition in the wholesale electric market, it is now in
21 the public interest to permit retail customers to obtain
22 direct access to a competitive generation market as long as
23 safe and affordable transmission and distribution service is
24 available at levels of reliability that are currently enjoyed
25 by the citizens and business of this State.
26 (4) It is the policy of the State that by this Act
27 Illinois shall begin the transition from a regulated monopoly
28 model for the provision of electricity to a competitive
29 market for electric services in order to benefit all classes
30 of customers and to promote Illinois' ability to compete in
31 the national and global marketplace for industry and jobs.
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1 (5) In moving toward greater competition in the
2 electricity generation market, the State must reconcile
3 transition issues that affect customers, utilities,
4 investors, local communities and non-utility electricity
5 services suppliers.
6 (6) At a minimum, Illinois must ensure the safety and
7 reliability of the electric system, ensure the continued
8 provision of high quality customer services, and assist
9 low-income customers to afford electric service.
10 (7) The purpose of this Act is to amend existing law and
11 regulations and to establish standards and procedures in
12 order to establish direct access by retail electric customers
13 to the competitive market for the generation of electricity
14 while maintaining the safety and reliability of the State's
15 electric system.
16 (8) Under current law, competition is developing in the
17 wholesale market for the generation of electricity; however,
18 the generation, transmission and distribution of retail
19 electricity is provided by public utilities under combined or
20 bundled rates regulated by the Illinois Commerce Commission.
21 It is the policy of this State that laws and procedures shall
22 provide for an orderly transition from the current regulated
23 structure to a free market structure under which retail
24 customers will have direct access to the competitive market
25 for electric power and electric services.
26 (9) This Act requires electric utilities to unbundle
27 their rates and services and provide open access over their
28 delivery system to allow competitive suppliers to use that
29 system to sell electricity and electric services directly to
30 customers in Illinois. Therefore, the generation of
31 electricity will no longer be regulated as a public utility
32 except as provided by this Act.
33 (10) It is, however, in the public interest for the
34 transmission and distribution of electricity to continue to
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1 be regulated by the Illinois Commerce Commission. It is also
2 in the public interest for electric service providers to
3 register with the Commission and be required to abide by a
4 code of conduct established by the Commission. Electric
5 distribution companies should continue to be the provider of
6 last resort in order to ensure the availability of universal
7 electric service, unless another provider is approved by the
8 Illinois Commerce Commission.
9 (11) The functional unbundling of the services which are
10 presently provided by incumbent utilities should, to the
11 maximum extent practicable, be revenue neutral from the
12 perspective of the incumbent utilities, the customers,
13 municipalities and the State. The unbundling of these
14 services is not intended to provide the utilities or any
15 other party with an additional opportunity to propose a
16 change in the overall revenue requirements of the utilities,
17 nor is the unbundling of these services intended to result in
18 a shifting of cost responsibility between customers or
19 classes of customers.
20 (12) Consistent with the Public Utility Regulatory
21 Policy Act of 1978 and the National Energy Policy Act of
22 1992, it is the policy of this State to encourage and support
23 the development of cogeneration and other forms of self
24 generation as an efficient, environmentally beneficial,
25 competitive energy resource that will enhance the reliability
26 of local electric supply and promote local business growth.
27 (13) There should be created an Illinois Low-Income Home
28 Energy Assistance Program Fund for electricity for the
29 purpose of replacing eliminated federal fund assistance for
30 eligible low income residential customers.
31 Section 10. Definitions. Unless otherwise specified,
32 the following terms are used in this Act as herein defined.
33 "Aggregation" means combination of supply or combination
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1 of customer demand for electric power and electric services.
2 "Ancillary services" means those services that the
3 Federal Energy Regulatory Commission or the Illinois Commerce
4 Commission, whichever is appropriate, finds are necessary to
5 support the delivery of capacity and energy from resources to
6 loads, while maintaining reliable operation of the
7 transmission and distribution system.
8 "Bond and preferred stock maturity allowance" means the
9 amount of long-term debt and preferred stock outstanding as
10 of December 31, 1996, divided by 30.
11 "Bundled services" means the composite electric service
12 provided as a package to the customer, including
13 separately-priced components for generation, transmission,
14 distribution, ancillary and other electric service necessary
15 to provide, deliver, and measure electric power and service
16 provided to the customer and which is comparable to the
17 service that was provided as of January 1, 1997.
18 "Capital expenditures" means reasonable and prudent
19 expenditures for the improvement or betterment of a capital
20 asset, or reasonable and prudent expenditures made in the
21 purchase or sale of a non-generation capital asset.
22 "Certified capacity" means capacity of operational self
23 generation equipment which is demonstrated to be in
24 accordance with NERC or MAIN guidelines applicable to
25 generation owned or operated by a utility.
26 "Commission" means the Illinois Commerce Commission.
27 "Customer" means retail electric customer.
28 "Delivery services" means the services associated with
29 use of an electric distribution company's transmission or
30 distribution facilities, or both, to deliver electric power,
31 including, but not limited to, all services associated with
32 constructing, owning, operating, and maintaining an electric
33 transmission and distribution system.
34 "Department" means the Department of Revenue.
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1 "Direct access" means the right of electric service
2 providers and customers to utilize and interconnect with the
3 electric transmission and distribution system on a
4 nondiscriminatory basis, at rates, terms and conditions of
5 service comparable to the incumbent utility's own use of the
6 system to transport electric power from any source of
7 electric power to any customer.
8 "Director" means the Director of Revenue.
9 "Distribution company" means a person providing
10 facilities and services for the distribution of electric
11 power to retail electric customers or that portion of the
12 incumbent utility which provides facilities and services for
13 the distribution of electric power, except that it does not
14 mean a building or facility owner or owner's designee that
15 manages the internal distribution system serving such
16 building or facility.
17 "Electric distribution company" means a transmission
18 company or a distribution company, or both, and includes
19 incumbent utilities.
20 "Electric power" means electric capacity and electric
21 energy.
22 "Electric service" means the production, transmission, or
23 delivery of electric power, and any unbundled electric
24 service or ancillary service.
25 "Electric service provider" means a person engaged in the
26 selling of electric power or related retail electric
27 services, or both, to retail electric customers except for an
28 incumbent utility selling within its service area, except
29 that it does not mean a facility owner that manages the
30 internal distribution system serving such building or
31 facility and supply electric power or other related power
32 services.
33 "Facility owner" means the owner of a building or
34 facility or the owner's designee.
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1 "Financial viability" means operating cash flow
2 sufficient for payments of capital expenditures, preferred
3 dividends, bond and preferred stock maturity allowance, and
4 payments to the utility's decommissioning trust funds.
5 "Financial viability and reliability charge" means the
6 charge which provides for the financial viability and
7 reliability of the incumbent utilities.
8 "Fund" means the Illinois Low-Income Home Energy
9 Assistance Program Fund.
10 "Incumbent utility" means a public utility which is
11 regulated under the provisions of the Public Utilities Act,
12 to the extent that it is operating within its own service
13 area.
14 "Maintaining a place of business in this State," or any
15 like term, means having or maintaining within this State,
16 directly or by a subsidiary, an office, distribution house,
17 sales house, warehouse or other place of business, or any
18 agent or other representative operating within this State
19 under the authority of any person or that person's subsidiary
20 engaged in the business of distributing, supplying, wheeling,
21 transmitting, furnishing, or selling electric power or
22 electric services to persons within this State, irrespective
23 of whether the place of business or agent or other
24 representative is located here permanently or temporarily, or
25 whether the person or the person's subsidiary engaged in the
26 business of distributing, supplying, wheeling, transmitting,
27 furnishing, or selling electric power or electric services is
28 licensed to do business in this State.
29 "Operating cash flow" means the aggregate amount of
30 consolidated net income after adding thereto consolidated
31 interest expense (adjusted to include costs recognized on
32 early retirement of debt), income taxes, depreciation
33 expense, amortization expense, any noncash amortization or
34 debt issuance costs, any nonrecurring, noncash charges to
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1 earnings and any negative accretion recognition.
2 "Person" means any natural individual, firm, trust,
3 estate, partnership, association, joint stock company, joint
4 adventure, corporation, or a receiver, trustee, guardian, or
5 other representative appointed by order of any court, or any
6 city, town, county, or other political subdivision of this
7 State.
8 "Preferred dividend" means funds paid to one class of
9 stockholders in priority to that to be paid to another class.
10 "Purchase price" means the consideration paid for
11 electric power distributed, supplied, wheeled, transmitted,
12 furnished, or sold for use or consumption and not for resale,
13 and for all electric services rendered in connection
14 therewith, and includes cash, services, and property of every
15 kind and nature, and shall be determined without any
16 deduction on account of the cost of service, product, or
17 commodity supplied, the cost of materials used, labor or
18 service costs, or any other expense whatsoever. However,
19 "purchase price" does not include any of the following:
20 (1) Any charge for a dishonored check.
21 (2) Any finance or credit charge, penalty, deposit
22 or charge for delayed payment, or discount for prompt
23 payment.
24 (3) Any penalty assessed for violation of
25 provisions of the Public Utilities Act or for unlawful
26 interference with public utility service.
27 (4) Any charge for reconnection of service or for
28 replacement or relocation of facilities.
29 (5) Any advance or contribution in aid of
30 construction.
31 (6) Any charge for repair, inspection, or servicing
32 of equipment located on customer premises.
33 (7) Any charge for the leasing or rental of
34 equipment, the leasing or rental of which is not
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1 necessary to distributing, supplying, wheeling,
2 transmitting, furnishing or selling electric power.
3 (8) Any sale to a purchaser if the person engaged
4 in the business of distributing, supplying, wheeling,
5 transmitting, furnishing, or selling electric power or
6 electric services is prohibited by federal or State
7 constitution, treaty, convention, statute, or court
8 decision from recovering the related tax liability from
9 the purchaser.
10 (9) Any charges added to purchasers' bills pursuant
11 to the provisions of Section 9-221 or Section 9-222 of
12 the Public Utilities Act or any charges added to
13 purchasers' bills by persons engaged in the business of
14 distributing, supplying, wheeling, transmitting,
15 furnishing, or selling electric power or electric
16 services who are not subject to rate regulation by the
17 Illinois Commerce Commission for the purpose of
18 recovering any of the tax liabilities or other amounts
19 specified in those provisions of the Public Utilities
20 Act.
21 (10) Charges that are added to purchasers' bills on
22 account of the duty of the person engaged in the business
23 of distributing, supplying, wheeling, transmitting,
24 furnishing, or selling electric power or electric
25 services to collect, from the purchaser, the tax imposed
26 by this Act.
27 (11) Consideration paid by business enterprises
28 certified under Section 9-222.1 of the Public Utilities
29 Act to the extent of the exemption and during the period
30 of time specified by the Department of Commerce and
31 Community Affairs. In case credit is extended, the amount
32 thereof shall be included only as, and when, payments are
33 received.
34 "Purchaser" means any person who acquires electric power
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1 or electric services for use, and not for resale, for a
2 purchase price.
3 "Related retail electric services" means those services
4 which are used in the provision of electric power, including,
5 but not limited to, one or more of the following services:
6 provision of a meter; meter maintenance and testing; meter
7 reading; and billing and collection.
8 "Retail electric customer" means any person who purchases
9 electric power or electric services at retail. "Retail
10 electric customer" does not include, however: (a) customers
11 of public utilities that are owned and operated by any
12 political subdivision, public institution of higher education
13 or municipal corporation of this State, or public utilities
14 that are owned by such political subdivision, public
15 institution of higher education, or municipal corporation and
16 operated by any of its lessees or operating agents; or (b) an
17 occupant of a building or facility where the owner or owner's
18 designee owns or manages the internal distribution system
19 serving such building or facility and supply electric power
20 or other related power services to occupants of the building
21 or facility, where such owner or owner's designee is a direct
22 purchaser of electric power, and where the occupants are not
23 direct purchasers.
24 "Self Generation" means customer-owned, operated or
25 leased non-mobile generation.
26 "Service area" has the meaning given that term in the
27 Electric Supplier Act.
28 "Small commercial customer" means a nonresidential
29 customer that used less than 15,000 kilowatt-hours of energy
30 in the prior calendar year or is projected to use less than
31 15,000 kilowatt-hours in a calendar year.
32 "State General Revenue Charge" means .32 cents per
33 kilowatt-hour distributed or 5% of the purchase price for the
34 billing period, whichever is the lower rate; provided,
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1 however, if there is no sale of electric power, the rate
2 shall be 5% of the purchase price for the billing period.
3 "Transition period" means from May 1, 1998 through April
4 30, 2001.
5 "Transmission company" means an incumbent utility
6 providing transport facilities and services for the
7 transmission of electric power.
8 "Trust" means a fiduciary account in a bank or other
9 financial institution established to hold the funds collected
10 by an incumbent utility pursuant to Section 65, for the
11 purpose of the eventual utilization by the utility, if it is
12 necessary to ensure its financial viability.
13 "Unbundled service" means electric power and electric
14 service and related retail electric services elements
15 provided and priced separately.
16 "Use" means the exercise by any person of any right or
17 power over electric power or electric services, except that
18 it does not include the sale of electric power or electric
19 services in the regular course of business.
20 Section 15. Electric customer choice.
21 (a) Beginning May 1, 1998, all retail electric customers
22 shall have the right to purchase electric power, electric
23 service, and related retail electric services through direct
24 access from any electric service provider, or to remain with
25 their incumbent utility.
26 (b) Customers and electric service providers shall be
27 allowed to define by mutual consent the price, terms and
28 conditions of service consistent with the provisions of this
29 Act.
30 (c) Customers shall be free to aggregate their loads on
31 a voluntary basis, subject to reasonable operational
32 procedures and practices. Aggregation may include multiple
33 customers at a single site or a single customer at multiple
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1 sites, or any variation thereof. An aggregated load may
2 include customers of a particular customer class or it may
3 include customers from different classes.
4 Section 20. Continued provision of bundled service by
5 incumbent utility.
6 (a) All customers shall have the option to remain a
7 customer of the incumbent utility and purchase bundled
8 service, subject to subsections (b) and (c) of this Section.
9 (b) A residential or small commercial customer may elect
10 to switch from an electric service provider back to the
11 incumbent utility, upon payment of an administrative fee to
12 be determined by the Commission.
13 (c) An incumbent utility's duty to provide bundled
14 service to all other customers ends when the customer chooses
15 to purchase from an electric service provider.
16 Section 25. Restructuring plan. Within 90 days after
17 the effective date of the Act, all incumbent utilities shall
18 submit to the Commission a restructuring plan to implement
19 direct access to a competitive market. The restructuring
20 plan shall include, at a minimum, consistent with other
21 elements of this Act:
22 (1) unbundled prices or rates for bundled service and
23 unbundled service;
24 (2) proposal of how the incumbent utility intends to
25 implement competitive bidding for bundled service;
26 (3) a financial viability and reliability assessment,
27 which shall include, at a minimum: projected operating cash
28 flows; projections relating to the incumbent utility's
29 financial viability; projected financial and reliability
30 charges for the transition period; projected uses of the
31 funds which the incumbent utility intends to withdraw from
32 the trust fund;
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1 (4) procedures for ensuring that all customers have
2 non-discriminatory direct access to the competitive market,
3 including a filing of enforceable standards of conduct for
4 transactions between the incumbent utility and any division
5 or affiliate doing business in the utility's service
6 territory, and terms and conditions for electric service
7 providers to do business in the incumbent utility's service
8 area;
9 (5) projected charge to be assessed to fund nuclear
10 decommissioning expense fund;
11 (6) proposal which documents procedures for customers
12 switching their supplier; and
13 (7) market power study to document the incumbent
14 utility's market power and proposed mechanisms to eliminate
15 any market power concerns.
16 Section 30. Commission review. The Commission shall
17 review and conduct public hearings from all interested
18 parties on the restructuring plans and unbundled rates filed
19 by each incumbent utility, and within 150 days of the filing,
20 shall either accept the filed restructuring plan and
21 unbundled rates or modify the restructuring plan and
22 unbundled rates to conform to the requirements of this Act.
23 Section 35. Bundled service rates.
24 (a) Notwithstanding any other provision of this Act, no
25 incumbent utility shall be authorized to charge bundled
26 services rates for comparable service including all taxes,
27 financial viability and reliability charges, and franchise
28 fees, which exceed the rates that were in effect as of
29 January 1, 1997.
30 (b) Incumbent utilities shall charge and collect rates,
31 exclusive of all taxes, financial viability and reliability
32 charges, and franchise fees, but including a nuclear
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1 decommissioning expense adjustment clause and a normalized
2 fuel adjustment clause, for bundled electric service in
3 conformance with the following provisions:
4 (1) During the period May 1, 1998 through April 30,
5 1999, an incumbent utility shall not charge a rate for
6 bundled service that results in the utility's average
7 revenue per kilowatt-hour exceeding $0.096 for
8 residential customers, $0.69 per kilowatt-hour for small
9 commercial and industrial customers, and $0.05 per
10 kilowatt-hour for large commercial and industrial
11 customers, as those retail rate classifications are
12 defined in the incumbent utility's Federal Energy and
13 Regulatory Commission Form 1 for the year 1995.
14 (2) During the period May 1, 1999 through April 30,
15 2000, an incumbent utility shall not charge a rate for
16 bundled service that results in the utility's average
17 revenue per kilowatt-hour exceeding $0.086 for
18 residential customers, $0.063 per kilowatt-hour for small
19 commercial and industrial customers, and $0.046 per
20 kilowatt-hour for large commercial and industrial
21 customers, as those retail rate classifications are
22 defined in the incumbent utility's Federal Energy and
23 Regulatory Commission Form 1 for the year 1995.
24 (3) During the period May 1, 2000 through April 30,
25 2001, an incumbent utility shall not charge a rate for
26 bundled service that results in the utility's average
27 revenue per kilowatt-hour exceeding $0.08 for residential
28 customers, $0.063 per kilowatt-hour for small commercial
29 and industrial customers and $0.046 per kilowatt-hour for
30 large commercial and industrial customers, as those
31 retail rate classifications are defined in the incumbent
32 utility's Federal Energy and Regulatory Commission Form 1
33 for the year 1995.
34 (4) Any reductions or adjustments in per
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1 kilowatt-hour rates charged by an incumbent utility in
2 order to comply with items (1), (2), and (3) shall only
3 be taken or made on the generation component of the
4 incumbent utility's bundled rates and charges.
5 (c) The Commission shall require each applicable
6 incumbent utility to identify on each bundled service
7 customer bill a separate and distinct line item referred to
8 as the "Competition Savings Credit", which shall be equal to
9 the amount of rate reduction the customer received as a
10 result of the operation of this Act.
11 (d) Prior to June 1, 2000, an incumbent utility shall
12 file tariffs reflecting rates for bundled service on a
13 customer class basis that include transmission, distribution,
14 ancillary and related retail electric service components as
15 set by the Commission, which are comparable to its unbundled
16 service, and a charge reflecting the electric power component
17 that is to be secured by the competitive bidding process as
18 set out in this Act.
19 Section 40. Competitive bidding. An incumbent utility,
20 subject to provisions relating to affiliate transactions,
21 shall exclusively purchase and provide electric power to its
22 customers who are not supplied by direct access by way of a
23 competitive bidding process to be established by the
24 Commission to take effect no later than May 1, 2001.
25 Section 45. Duties of transmission and distribution
26 companies.
27 (a) A transmission and distribution company shall
28 provide services and facilities designed to ensure the safe
29 and reliable delivery of electric power to customers
30 regardless of the identity of the provider of electric power.
31 This obligation includes, but is not limited to:
32 (1) the obligation to connect (including the
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1 extension, in accordance with the Commission's rules and
2 applicable tariffs, of necessary electric line facilities
3 to) customers located within the utility's service area
4 to those transmission and distribution facilities used to
5 provide delivery service;
6 (2) the obligation to deliver electric power from
7 the point of receipt on the utility's transmission and
8 distribution facilities to the point of delivery
9 identified by the customer;
10 (3) the obligation to provide ancillary services;
11 and
12 (4) the obligation to provide related retail
13 electric services to the extent those services are not
14 competitive.
15 (b) Within 90 days of the effective date of this Act, a
16 transmission company shall file tariffs with the Federal
17 Energy Regulatory Commission, and, to the extent not
18 preempted by Federal law, the Commission. These tariffs
19 shall (1) make customers and electric service providers
20 selling to retail customers eligible to receive transmission
21 service and (2) conform to Federal Energy Regulatory
22 Commission standards with respect to nondiscriminatory
23 access.
24 (c) Within 90 days of the effective date of this Act, a
25 distribution company shall file unbundled tariffs with the
26 Commission pursuant to Section 50.
27 (d) Transmission and distribution companies shall allow
28 the aggregation of load, if requested, consistent with
29 reasonable operational practices and procedures contained
30 within the incumbent utility's transmission and distribution
31 tariffs. Notwithstanding any contrary provision in the
32 Public Utilities Act, in any proceeding before the Commission
33 challenging the denial of aggregation, the burden of proof
34 shall be on the transmission and distribution company.
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1 (e) A customer shall have the option to purchase
2 electric service at any delivery service voltage reasonably
3 and technically feasible from facilities serving that
4 customer's premises.
5 Section 50. Unbundled tariffs.
6 (a) Consistent with the restructuring plan provided for
7 in Section 25 of this Act, within 90 days of the effective
8 date of this Act, each incumbent utility shall file unbundled
9 tariffs with the Commission. These tariffs shall:
10 (1) permit customers to purchase unbundled services
11 from any electric service provider;
12 (2) separately identify the charges for generation,
13 transmission, distribution, ancillary services, and
14 related retail electric services in accordance with the
15 provisions of Section 50; and
16 (3) provide the terms, conditions and rates for
17 nondiscriminatory access to transmission and distribution
18 facilities.
19 (b) The Commission shall enter upon a hearing concerning
20 the incumbent utility's proposed unbundled tariffs and shall
21 establish rates, terms and conditions, or other charges which
22 it shall find to be just, reasonable, nondiscriminatory, and
23 otherwise consistent with this Act unless these tariffs are
24 filed in accordance with subsection (b) of Section 55.
25 (c) For purposes of this Section, nondiscriminatory
26 shall mean, at a minimum, access to transmission and
27 distribution facilities and services at rates, terms and
28 conditions applied consistently to all customers in a rate
29 class regardless of their supplier, including being supplied
30 by the incumbent utility.
31 (d) When establishing terms and conditions for unbundled
32 service, the Commission shall implement standards, policies,
33 and requirements consistent with those established by the
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1 Federal Energy Regulatory Commission for transmission,
2 applying the Federal Energy Regulatory Commission methodology
3 of fully embedded average costs to each unbundled rate
4 component. Unbundled service tariffs for distribution
5 services shall be categorized and made separately available
6 to customers at principal delivery service voltage levels.
7 Unbundled tariffs must provide unbundled services to all
8 persons on the same or comparable basis (including terms,
9 conditions and rates) as the utility offers to provide such
10 unbundled services to itself or any affiliate of the
11 incumbent utility.
12 (e) Any unbundled service tariffs adopted pursuant to
13 this Section shall be patterned after transmission open
14 access tariffs established by the Federal Energy Regulatory
15 Commission.
16 (f) The Commission, may, upon application by any party
17 or upon its own motion, classify any service, which has
18 previously been classified as non-competitive, as
19 competitive, to the extent that for some identifiable class
20 or group of customers in some clearly defined geographical
21 area such service, or its functional equivalent, or
22 substitute service, is reasonably available from more than
23 one provider.
24 (g) Proposed changes in rates, charges, terms and
25 conditions of service, or any classification or tariff
26 provision affecting rates, charges, terms and conditions of
27 service, for any competitive electric service shall be
28 treated as follows:
29 (1) any proposed decrease in rates or charges, or
30 proposed change in any classification or tariff resulting
31 in a decrease in rates or charges, for a competitive
32 electric service shall be permitted upon the filing of a
33 proposed change classification or tariff;
34 (2) any proposed increase in rates or charges, or
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1 proposed change in any classification or tariff resulting
2 in an increase in rates or charges, for a competitive
3 electric service shall be permitted by the filing of the
4 proposed rate, charge, classification, or tariff and
5 shall become effective 7 days after its filing.
6 Section 55. Transition period rates.
7 (a) Within 90 days of the effective date of this Act, an
8 incumbent utility shall file with the Commission rates for
9 unbundled service, to become effective May 1, 1998.
10 (b) Incumbent utilities which have filed a general rate
11 proceeding within 5 years prior to the effective date of this
12 Act shall file unbundled rates for generation, distribution,
13 ancillary services, and related retail services which shall
14 be based upon the cost-of-service study adopted by the
15 Commission in the rate proceeding which established the rates
16 which were in effect for the incumbent utility on January 1,
17 1997. The rate for transmission shall be based upon the
18 incumbent utility's Federal Energy Regulatory Commission
19 approved rate.
20 (c) Incumbent utilities which have not filed a general
21 rate proceeding within 5 years prior to the effective date of
22 this Act shall charge the following rates beginning May 1,
23 1998 and continuing until such time as the incumbent utility
24 obtains Commission approval of a different rate for any or
25 all of these services:
26 (1) For residential and small commercial customers,
27 a rate of 0.30 cents per kilowatt-hour for firm
28 transmission service, or 1.64 cents per kilowatt-hour for
29 firm primary distribution service (service voltage
30 between 1 kv and 30 kv), or 2.30 cents per kilowatt-hour
31 for firm secondary distribution service (service voltage
32 less than 1 kv);
33 (2) For customers other than residential or small
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1 commercial customers, one of the following 3 charges
2 shall be applicable: (1) a rate of $1.40 per
3 kilowatt-month for receiving firm transmission service
4 (service voltage greater than 30 kv); (2) a rate of $4.75
5 per kilowatt-month for receiving firm primary
6 distribution service (service voltage between 1 kv and 30
7 kv); or (3) a rate of $6.60 per kilowatt-month for
8 receiving firm secondary distribution service (service
9 voltage less than 1 kv);
10 (d) The incumbent utility shall provide, to the extent
11 not otherwise provided, regulation and frequency response
12 service, operating reserve-spinning reserve service,
13 operating reserve-supplemental reserve service, reactive
14 supply and voltage control form generation sources service,
15 real power loss service, and any other ancillary services, at
16 the rates approved by the Federal Energy Regulatory
17 Commission.
18 (e) A customer or facilities charge as authorized in a
19 tariff previously approved by the Commission or as previously
20 agreed upon in customer-specific contracts shall also be
21 charged by all incumbent utilities beginning May 1, 1998 and
22 continuing until such time as the Commission orders a
23 different rate for this service.
24 Section 60. Alternative rate regulation for electric
25 distribution companies. Notwithstanding any other Sections of
26 this Act or the Commission's rules, the Commission, upon
27 petition by an electric distribution company and after notice
28 and hearing, may authorize for all or part of the tariffed
29 services of that electric distribution company the
30 implementation of one or more programs for an initial period
31 not to exceed 4 years consisting of (i) alternatives to rate
32 of return regulation including, but not limited to, earnings
33 sharing rate moratoria, price caps or flexible rate options
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1 or (ii) regulatory mechanisms that reward or penalize the
2 electric distribution company through the adjustment of rates
3 based upon performance. In the case of regulatory mechanisms
4 that reward or penalize the electric distribution company
5 through the adjustment of rates based on the distribution
6 company's performance, the distribution company's performance
7 shall be compared to standards established in the Commission
8 order authorizing the implementation of the regulatory
9 mechanism. The Commission is specifically authorized to
10 approve such petitions for different forms of alternatives to
11 rate of return regulation or other regulatory mechanisms to
12 fit the particular characteristics and requirements of
13 different electric distribution companies and the customers
14 of each electric distribution company. The Commission shall
15 find that the program is reasonable based upon substantial
16 evidence in the record.
17 Section 65. Financial viability and reliability charge.
18 (a) Incumbent utilities shall be authorized, but not
19 required, to annually petition the Commission for
20 authorization to charge a financial viability and reliability
21 charge during the transition period, pursuant to the
22 provisions of this Section. The revenue received by the
23 incumbent utility pursuant to the provisions of this Section
24 shall be distributed as soon as practical to the independent
25 trustee designated by the incumbent utility as provided
26 herein.
27 (b) Upon filing a petition pursuant to this Section, the
28 incumbent utility shall have the authority to charge a
29 financial viability and reliability charge not to exceed
30 $0.003 per kilowatt-hour. The Commission shall have no
31 authority to suspend this portion of the financial viability
32 and reliability charge. This portion of the financial
33 viability and reliability charge shall be applied to all
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1 customers in a non-discriminatory manner.
2 (c) The Commission shall initiate a proceeding within 5
3 days after the incumbent utility files its financial
4 viability and reliability petition, and shall hold hearings,
5 to determine whether the financial viability and reliability
6 charge requested is just and reasonable.
7 (d) After hearings, the Commission shall have the
8 authority to order a just and reasonable financial viability
9 and reliability charge. The Commission shall have the
10 authority to order a per kilowatt-hour financial viability
11 and reliability charge which is less than $0.003 per
12 kilowatt-hour.
13 (e) The Commission shall have the authority to order a
14 financial viability and reliability charge which exceeds
15 $0.003 per kilowatt-hour pursuant to this subsection. For
16 that portion of a financial viability and reliability charge
17 authorized by the Commission that is greater than $0.003 per
18 kilowatt-hour, the total customer class responsibility shall
19 be allocated to each class of customers in proportion to the
20 customer class kilowatt demands used to design the incumbent
21 utility's rates which were in effect on January 1, 1997.
22 (1) For those customer classes which were not
23 billed under a demand rate, the charge shall be recovered
24 by means of an additional per kilowatt-hour fee equal to
25 total customer class responsibility divided by total
26 customer class kilowatt-hour sales.
27 (2) For all other customer classes, the charge
28 shall be recovered based upon a uniform monthly demand
29 charge measured in dollars per kilowatt month to be
30 applied to the individual customer's billing demand rate
31 component.
32 (f) Financial viability and reliability charges in
33 excess of $0.003 per kilowatt-hour for self-generation
34 customers shall be reduced on a monthly basis by subtracting
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1 each customer's certified capacity from that customer's total
2 peak demand. To qualify that reduction, the self-generation
3 customer must agree to operate its generation upon reasonable
4 request by the incumbent utility and after reasonable notice
5 at times of the incumbent utility peak demands.
6 (g) By March 31, 1998, an incumbent utility that intends
7 to implement a financial viability and reliability charge
8 shall:
9 (1) establish a trust which shall hold all revenues
10 resulting from these charges; and
11 (2) designate an independent trustee, subject to
12 the approval of the Commission, to administer the trust.
13 (h) The following restrictions shall apply in regard to
14 administration of the trust:
15 (1) distributions may be made from the trust only
16 to the extent authorized by the Commission;
17 (2) any assets in the trust on May 31, 2001 that
18 exceed the amount necessary to ensure the incumbent
19 utility's financial viability shall be refunded to the
20 incumbent utility that established the fund for the
21 express purpose of refunds or credits, as soon as
22 practicable, to the utility's customers;
23 (3) the trustee shall invest the trust assets only
24 in secure assets that are prudent investments for assets
25 held in trust and in such a way as to attempt to maximize
26 the after-tax returns on funds invested;
27 (4) all income earned by the trust's funds shall
28 become part of the trust's funds and subject to the
29 provisions of this Section; and
30 (5) the Commission may adopt by rule or regulation
31 such further restrictions as it deems necessary for the
32 sound management of the trust's funds, consistent with
33 the purposes of this Section.
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1 Section 70. Distributions from the financial viability
2 and reliability trust.
3 (a) Incumbent utilities shall be authorized, but not
4 required, to annually petition the Commission for
5 distributions from the financial viability and reliability
6 trust during the transition period, pursuant to the
7 provisions of this Section.
8 (b) The Commission shall initiate a proceeding within 5
9 days after the incumbent utility files its petition for a
10 distribution from the financial viability and reliability
11 trust.
12 (c) After hearings, the Commission shall have the
13 authority to make a determination regarding the amount and
14 use of funds, if any, the trustee should be authorized to
15 disburse to the incumbent utility to ensure the financial
16 viability and reliability of the incumbent utility.
17 (d) In determining the amount and use of such
18 disbursements, the Commission shall consider the impact that
19 the use of those funds will have upon the competitive market
20 in Illinois, the degree of the incumbent utility's financial
21 distress, mitigation efforts, potential market power
22 concerns, and other criteria which the Commission deems
23 relevant. Mitigation efforts should include, but are not
24 limited to, refinancing debt, renegotiation of contracts,
25 utilization of new technology and efficiencies, common stock
26 dividend payments and divestiture or sale of capital assets.
27 (e) Each year the Commission shall require an incumbent
28 utility that receives a distribution from its financial
29 viability and reliability trust to reconcile the proceeds and
30 uses of the distribution to determine if the incumbent
31 utility utilized these funds in accordance with the purposes
32 for which the funds were requested or if all or part of the
33 distribution should be refunded by the incumbent utility.
34 (f) The trustee of the trust shall report annually to
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1 the Commission, or more frequently if ordered by the
2 Commission. The report shall include:
3 (1) the trust's State and federal tax returns;
4 (2) a report on the trust's portfolio of
5 investments and the return thereon;
6 (3) the date and amount of payments received by the
7 trust from the incumbent utility;
8 (4) a copy of all correspondence between the trust
9 and the incumbent utility;
10 (5) a copy of all correspondence between the trust
11 and the Internal Revenue Service; and
12 (6) any other information the Commission orders the
13 trust to provide.
14 Section 75. Decommissioning expense adjustment clause.
15 Incumbent utilities, which on January 1, 1997 owned a nuclear
16 power plant, are required to charge nuclear decommissioning
17 costs to customers taking either bundled service or delivery
18 service, through a decommissioning expense adjustment clause
19 which charges the same amount per kilowatt-hour for all of
20 the utility's customers taking either bundled service or
21 delivery service. On the effective date of the Act, the
22 Commission shall initiate proceedings to establish
23 decommissioning expense adjustment clauses for every such
24 incumbent utility and remove the allocation of
25 decommissioning expenses from any other rates of each utility
26 by April 30, 1998. After May 1, 1998, the Commission shall
27 have the discretion to initiate a proceeding at any time to
28 investigate such utility's decommissioning expense clause and
29 the charges to customers pursuant to this clause. If the
30 Commission finds that the charges to customers through the
31 decommissioning expense adjustment clause do not comply with
32 the decommissioning expense adjustment clause approved by the
33 Commission, such utility shall refund all excessive charges
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1 plus interest to customers. If an investigation of a
2 utility's decommissioning expense adjustment clause is
3 initiated, the Commission shall issue its final order within
4 12 months of its initiation of the proceeding.
5 Section 80. Registration of electric service providers.
6 An electric service provider seeking to do business in
7 Illinois must file with the Commission, and keep current, a
8 registration application that includes the information
9 identified below and any additional information required by
10 the Commission pursuant to regulations issued to protect the
11 public interest in connection with the registration of
12 persons seeking to sell electric power to retail customers:
13 (1) legal name;
14 (2) business address;
15 (3) the name of the state where organized; the date of
16 organization; a copy of the articles of incorporation,
17 association, partnership agreement, or similar document
18 regarding legal organization;
19 (4) name and business address of all officers and
20 directors;
21 (5) name, title and address of registered agent for
22 service of process; and
23 (6) proposed electric service to be offered to
24 customers.
25 Section 85. Protection of retail electric customers.
26 Prior to May 1, 1998 the Commission shall:
27 (1) Disseminate to all customers information containing
28 a clear explanation of the basic concepts of competition in
29 the electric industry, customer risks and responsibilities,
30 current customer protections, how to use the customer's
31 energy use patterns to make decisions about purchases of
32 electricity and other related services, and available dispute
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1 resolution mechanisms. Such dissemination shall be designed
2 to reach the broadest spectrum of customers through such
3 means as the Commission deems appropriate.
4 (2) Adopt an electric power suppliers code of conduct,
5 effective as of May 1, 1998, that will be applicable to all
6 persons who have registered as an electric service provider.
7 At a minimum, the code of conduct shall require each electric
8 service provider and incumbent utility to:
9 (A) provide a reliable supply of electric power in
10 accordance with its contracts;
11 (B) include information with billing statements and
12 marketing materials that accurately disclose the prices,
13 terms and conditions of electric services and products
14 sold to and available to customers;
15 (C) provide documentation to the Commission and to
16 the customer that verifies claims regarding the sale of
17 power generated by renewable resources; and
18 (D) obtain verifiable authorization from a customer
19 prior to switching the electric service provider or
20 incumbent utility who serves that customer.
21 (3) Revise its regulations as necessary to adequately
22 protect electric customers in a competitive market for
23 electric power and electric services. The revised
24 regulations shall apply to electric service providers and the
25 incumbent utilities. The revised regulations shall include
26 minimum credit and collection procedures and practices
27 applicable in a competitive market for electric power and
28 electric services including, but not limited to:
29 (A) application for service;
30 (B) credit evaluation and deposit;
31 (C) when disconnection of service can be used as a
32 method of collection, the timing and notices of
33 disconnection and required disclosures, disconnection
34 procedures and a customer's right to a payment
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1 arrangement to prevent disconnection;
2 (D) a customer's right to retain service during a
3 temporary medical emergency;
4 (E) a tenant's right to avoid disconnection of
5 service when a landlord fails to pay an overdue bill;
6 (F) limitations on the billing of previously
7 unbilled amounts;
8 (G) when late fees may be assessed and limitations
9 on their amount and method of application to an overdue
10 amount;
11 (H) reconnection rights and limits on reconnection
12 fees; and
13 (I) rules concerning partial payment and the
14 allocation of payments and credits between the electric
15 service provider and the incumbent utility.
16 (4) Adopt regulations, including standards of conduct,
17 prohibiting affiliates or subsidiary companies of a incumbent
18 utility from competing for retail sales to customers within
19 the service territory of the incumbent utility unless the
20 Commission finds that adequate protections have been
21 established to prevent cross-subsidization of the affiliate
22 or subsidiary company by the customers of the utility.
23 (5) The Commission may impose reasonable penalties,
24 including barring a person from directly or indirectly acting
25 as an electric service provider if, upon its own motion, or
26 in response to a complaint or complaints, the Commission
27 finds that the electric service provider, electric service
28 supplier or incumbent utility has been in significant and
29 continued violation of the code of conduct or other
30 provisions of law.
31 Section 90. Market power study and mitigation. No later
32 than 12 months after the effective date of this Act, and
33 annually thereafter, the Commission shall conduct a study and
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1 issue a report to the legislature on: (i) The potential for
2 any incumbent utility or electric service provider that is
3 selling electric power and related retail electric services
4 to customers or providing delivery services to any incumbent
5 utility in Illinois to exercise undue market power over
6 prices for those services; (ii) Barriers to entry or
7 participation that may exist in retail power markets in
8 Illinois, especially those barriers relating to participation
9 by residential and small commercial customers; and (iii) Any
10 other impediments to the establishment of a fully competitive
11 power market in Illinois other than those identified under
12 items (i) and (ii). The Commission shall have authority to
13 mitigate the undue exercise of market power, barriers to
14 entry and any other impediments to a competitive power market
15 that were identified in items (i), (ii) and (iii), including
16 the power to require divestiture of incumbent utility
17 facilities if it determines, after notice and the opportunity
18 for a hearing, that such action is necessary in order to
19 eliminate the exercise of market power over electric power
20 and related services.
21 Section 95. Customer information.
22 (a) Upon request from any electric service provider and
23 payment of a reasonable fee, an electric distribution company
24 shall make available a list of the names and addresses of its
25 customers. Such lists shall not include customers that have
26 submitted written requests to the company that they be
27 excluded from such lists. No public utility may solicit its
28 customers to have the customers' names excluded from such
29 lists.
30 (b) Upon request of an electric customer or its agent
31 and payment of a reasonable fee, electric transmission and
32 distribution companies and parties providing related retail
33 electric services, shall provide to the customer or its agent
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1 the customer's billing and usage data.
2 (c) Upon request from any electric service provider and
3 payment of a reasonable fee, an incumbent utility shall make
4 available generic information concerning the usage, load
5 shape curve or other general characteristics of customers as
6 a group or rate classification.
7 (d) All such customer information shall be made
8 available in a timely fashion in an electronic format, if
9 available.
10 Section 100. Customer facilities.
11 (a) Upon request from a facility owner and payment of a
12 reasonable administrative fee, an incumbent utility shall
13 make available within 60 days information regarding the
14 depreciated cost of utility-owned facilities that are located
15 on the facility owner's site, based on the utility's historic
16 embedded costs.
17 (b) A facility owner shall have the option at any time
18 to acquire utility-owned facilities that are located on its
19 site and that can be segregated from the remainder of the
20 system. If a facility owner exercises this option, the
21 purchase price shall be the depreciated cost of the
22 facilities based on the utility's historic embedded costs.
23 The facility owner shall pay the full cost of any new
24 nonstandard facilities that are located on the facility
25 owner's site, fully dedicated to serving its needs, and that
26 can be segregated from the remainder of the system.
27 (c) The final cost paid by a customer for delivery
28 services, including charges paid to the distribution utility
29 and the purchaser of the facilities, shall not exceed the
30 charge for the delivery services if the customer were
31 purchasing the power over facilities owned entirely by the
32 distribution company. Subject to the terms and conditions of
33 an individual lease, any tenant that is a retail electric
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1 customer as of the effective date of this Act shall have
2 access to the purchased customer facilities allowing the
3 tenant to purchase from any electric service provider or
4 incumbent utility for the remainder of its lease at its
5 current site.
6 (d) If a facility owner does not exercise its option to
7 acquire utility-owned facilities which are located on its
8 site, all obligations of a distribution company set forth in
9 this Act shall apply.
10 (e) Facility owners may resell and redistribute to the
11 building's tenants electric power and electric services
12 purchased from an incumbent utility or electric service
13 provider, regardless of whether they have acquired the
14 utility-owned facilities located on their site.
15 Section 105. Switching supplier. Subject to contract
16 and tariff terms and conditions, a customer may change its
17 electric service provider or incumbent utility at any time,
18 but will remain responsible for any unpaid charges owed to a
19 provider or utility if the customer fails to give proper
20 notice of change. Any notice provision, fee or penalty to be
21 charged by the electric service provider or incumbent utility
22 associated with early termination of a contract shall be
23 conspicuously disclosed in any contract or tariff.
24 Section 110. Reporting requirements. Beginning January
25 1, 1999, the Commission shall issue an annual report to the
26 legislature on the extent of competition within the State,
27 the effect of competition on prices and rates, the level of
28 participation of residential and small commercial customers
29 in direct access, the effect of competition on service
30 quality, the extent of predatory practices by competitors,
31 and any other matter the Commission deems appropriate.
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1 Section 115. State and municipal revenue task force.
2 The legislature shall appoint a task force that will make
3 recommendations for competitively neutral mechanisms to
4 maintain state and local tax revenues and franchise fees in a
5 competitive electricity market as provided for in this Act.
6 The task force shall issue a report containing such
7 recommendations no later than 6 months after the effective
8 date of this Act.
9 Section 120. Imposition of electric revenue use tax. A
10 tax is imposed upon the privilege of using in this State
11 electric power or electric services purchased from any
12 person, other than municipal corporations owning and
13 operating a local transportation system for public service in
14 this State, engaged in the business of distributing,
15 supplying, wheeling, transmitting, furnishing, or selling
16 electric power or electric services at the rate not to exceed
17 .326 cents per kilowatt-hour distributed or 5.094% of the
18 purchase price for the billing period, whichever is the lower
19 rate; provided, however, if there is no sale of electric
20 power, the rate shall be 5.094% of the purchase price for the
21 billing period; provided further that no such tax is imposed
22 upon any transaction that is subject to the tax imposed by
23 the Public Utilities Revenue Act upon kilowatt-hours or
24 purchase price for the same transaction; and provided further
25 that the amount in excess of .32 cents per kilowatt-hour
26 distributed or 5% of the purchase price for the billing
27 period shall be collected only at the rate necessary to equal
28 the 1996 federal Low-Income Energy Assistance Program
29 contributions to this State.
30 Section 125. Collection of electric revenue use tax. A
31 person maintaining a place of business in this State who is
32 engaged in the business of distributing, supplying, wheeling,
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1 transmitting, furnishing, or selling electric power or
2 electric services to persons for use or consumption, and not
3 for resale, shall collect, from the purchaser, the tax that
4 is imposed by this Act. The tax imposed by this Act shall,
5 if and to the extent that collected, be stated as two
6 distinct and separate items apart from the selling price of
7 electric power or electric services:
8 (1) The first item, when collected, shall be referred to
9 as the "State General Revenue Charge," and shall equal .32
10 cents per kilowatt-hour distributed or 5% of the purchase
11 price for the billing period, whichever is the lower rate;
12 provided, however, if there is no sale of electric power, the
13 rate shall be 5% of the purchase price for the billing
14 period.
15 (2) The second item, if, and to the extent collected,
16 shall be referred to as the "Illinois Low-Income Home Energy
17 Assistance Program Fund Contribution," and shall not exceed
18 .006 cents per kilowatt-hour distributed or .094% of the
19 purchase price for the billing period, whichever is the lower
20 rate; provided, however, if there is no sale of electric
21 power, the rate shall not exceed .094% of the purchase price
22 for the billing period.
23 Section 130. Incorporation of applicable Sections of Use
24 Tax Act. The Department shall have full power to administer
25 and enforce this Act; to collect all taxes, penalties, and
26 interest due hereunder; to dispose of taxes, penalties, and
27 interest so collected in the manner hereinafter provided; and
28 to determine all rights to credit memoranda or refunds
29 arising on account of the erroneous payment of tax, penalty,
30 or interest hereunder. In the administration of, and
31 compliance with, this Section, the Department and persons who
32 are subject to this Section shall have the same rights,
33 remedies, privileges, immunities, powers, and duties, and be
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1 subject to the same conditions, restrictions, limitations,
2 penalties, and definitions of terms, and employ the same
3 modes of procedure, as are prescribed in Sections 2, 4, 5, 6,
4 7, 9 (except provision relating to transaction returns and
5 except that the due date for returns shall be the 15th day of
6 each month for the preceding calendar month), 10, 11, 12,
7 12a, 13, 14, 15, 18, 19, 20, 21, and 22 of the Use Tax Act
8 and as are not inconsistent with this Section, as fully as if
9 those provisions were set forth herein.
10 Section 135. Tax collected as debt owed to State. The
11 tax required under this Act to be collected by any person
12 engaged in the business of distributing, supplying, wheeling,
13 transmitting, furnishing, or selling electric power or
14 electric services under this Act, and any such tax collected
15 by that person, shall constitute a debt owed by that person
16 to this State.
17 Section 140. Return and payment of tax by person engaged
18 in the business of distributing, supplying, wheeling,
19 transmitting, furnishing, or selling electric services. A
20 person engaged in the business of distributing, supplying,
21 wheeling, transmitting, furnishing, or selling electric power
22 or electric services who is required or authorized to collect
23 the tax imposed by this Act shall make a return to the
24 Department on or before the 15th day of each month for the
25 preceding calendar month stating all of the following:
26 (1) his or her name;
27 (2) the address of his or her principal place of
28 business and the address of the principal place of business
29 (if that is a different address) from which he or she engages
30 in the business of distributing, supplying, wheeling,
31 transmitting, furnishing, or selling electric power or
32 electric services in this State;
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1 (3) the total number of kilowatt-hours for which payment
2 was received by him or her from purchasers during the
3 preceding calendar month and upon the basis of which the tax
4 is imposed;
5 (4) the purchase price which was received by him or her
6 from purchasers during the preceding calendar month from such
7 business, including budget plan amounts applied during such
8 month in payment of charges includable in gross receipts, and
9 upon the basis of which the tax is imposed;
10 (5) amount of Illinois Low-Income Home Energy Assistance
11 Program Fund Contribution and State General Revenue Charge
12 (computed based upon item 3 or 4); and
13 (6) such other reasonable information as the Department
14 may require. In making a return, the person engaged in the
15 business of distributing, supplying, wheeling, transmitting,
16 furnishing, or selling electric power or electric services
17 may use any reasonable method to derive reportable
18 "kilowatt-hours" and "purchase price" from his or her billing
19 and payment records. The provisions of Section 9 of the Use
20 Tax Act, as incorporated by Section 130 of this Act, shall
21 otherwise govern the filing of returns and payment of taxes
22 under this Act by persons engaged in the business of
23 distributing, supplying, wheeling, transmitting, furnishing,
24 or selling electric power or electric services.
25 Section 145. Direct return and payment by purchaser.
26 The tax imposed by this Act that is not collected under
27 Sections 125 and 140 of this Act by a person engaged in the
28 business of distributing, supplying, wheeling, transmitting,
29 furnishing, or selling electric power or electric services
30 shall be paid to the Department directly by the purchaser who
31 is subject to the tax imposed by this Act. The purchaser
32 shall, on or before the 15th day of each month, make a return
33 to the Department for the preceding calendar month, stating
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1 the following:
2 (1) his or her name and principal address;
3 (2) the total number of kilowatt-hours used by him or
4 her during the preceding calendar month and upon the basis of
5 which the tax is imposed;
6 (3) the purchase price of electric power or electric
7 service used by him or her during the preceding calendar
8 month and upon the basis of which the tax is imposed;
9 (4) amount of Illinois Low-Income Home Energy Assistance
10 Program Fund Contribution and State General Revenue Charge
11 (computed based upon item 2 or 3); and
12 (5) such other reasonable information as the Department
13 may require. In making a return, the purchaser may use any
14 reasonable method to derive reportable "kilowatt-hours" and
15 "purchase price" from his or her billing and payment record.
16 The purchaser making the return provided for in this Section
17 shall, at the time of making the return, pay to the
18 Department the amount of tax imposed by this Act. The
19 provisions of Sections 9 and 10 of the Use Tax Act, as
20 incorporated by Section 130 of this Act, shall otherwise
21 govern the filing of returns and payment of tax under this
22 Act by purchasers.
23 Section 150. Illinois Low-Income Home Energy Assistance
24 Program Fund. That portion of the electric revenue use tax
25 described in item (2) of Section 125 of this Act shall fund
26 the Illinois Low-Income Home Energy Assistance Program Fund.
27 The Illinois Low-Income Home Energy Assistance Program Fund
28 is established in the State Treasury as a special fund. The
29 Illinois Low-Income Home Energy Assistance Program Fund shall
30 be administered in a manner consistent with the
31 administration of the funds that this State receives pursuant
32 to the federal Low-Income Home Energy Assistance Program.
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1 Section 190. The State Finance Act is amended by adding
2 Section 5.449 as follows:
3 (30 ILCS 105/5.449 new)
4 Sec. 5.449. The Illinois Low-Income Energy Assistance
5 Program Fund.
6 Section 191. The Illinois Municipal Code is amended by
7 changing Section 8-11-2 as follows:
8 (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
9 Sec. 8-11-2. The corporate authorities of any
10 municipality may tax any or all of the following occupations
11 or privileges:
12 1. Persons engaged in the business of transmitting
13 messages by means of electricity or radio magnetic waves,
14 or fiber optics, at a rate not to exceed 5% of the gross
15 receipts from that business originating within the
16 corporate limits of the municipality.
17 2. Persons engaged in the business of distributing,
18 supplying, furnishing, or selling gas for use or
19 consumption within the corporate limits of a municipality
20 of 500,000 or fewer population, and not for resale, at a
21 rate not to exceed 5% of the gross receipts therefrom.
22 2a. Persons engaged in the business of
23 distributing, supplying, furnishing, or selling gas for
24 use or consumption within the corporate limits of a
25 municipality of over 500,000 population, and not for
26 resale, at a rate not to exceed 8% of the gross receipts
27 therefrom. If imposed, this tax shall be paid in monthly
28 payments.
29 3. Persons engaged in the business of distributing,
30 supplying, furnishing, or selling electricity for use or
31 consumption within the corporate limits of the
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1 municipality, and not for resale, at a rate not to exceed
2 that percentage which will create the same amount of
3 revenues from municipal utility taxes in each calendar
4 year, beginning with the calendar year 1998 that the
5 municipality realized from such taxes during the calendar
6 year 1996 5% of the gross receipts therefrom.
7 4. Persons engaged in the business of distributing,
8 supplying, furnishing, or selling water for use or
9 consumption within the corporate limits of the
10 municipality, and not for resale, at a rate not to exceed
11 5% of the gross receipts therefrom.
12 5. The privilege of using within the corporate
13 limits of the municipality electric power or electric
14 service purchased from any person engaged in business of
15 distributing, supplying, wheeling, transmitting,
16 furnishing, or selling electricity or supplying electric
17 service, at a rate not to exceed that percentage of the
18 purchase price for the billing period which will create
19 the same amount of revenues from municipal utility taxes
20 in each calendar year, beginning with the calendar year
21 1998 that the municipality realized from such taxes
22 during the calendar year 1996; provided, however, that no
23 such tax is imposed upon any transaction that is subject
24 to the tax imposed under item 3 for the same transaction.
25 None of the taxes authorized by this Section may be
26 imposed with respect to any transaction in interstate
27 commerce or otherwise to the extent to which the business may
28 not, under the constitution and statutes of the United
29 States, be made the subject of taxation by this State or any
30 political sub-division thereof; nor shall any persons engaged
31 in the business of distributing, supplying, furnishing, or
32 selling gas, water, or electricity, or engaged in the
33 business of transmitting messages be subject to taxation
34 under the provisions of this Section for those transactions
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1 that are or may become subject to taxation under the
2 provisions of the "Municipal Retailers' Occupation Tax Act"
3 authorized by Section 8-11-1; nor shall any tax authorized by
4 this Section be imposed upon any person engaged in a business
5 unless the tax is imposed in like manner and at the same rate
6 upon all persons engaged in businesses of the same class in
7 the municipality, whether privately or municipally owned or
8 operated.
9 Any of the taxes enumerated in this Section may be in
10 addition to the payment of money, or value of products or
11 services furnished to the municipality by the taxpayer as
12 compensation for the use of its streets, alleys, or other
13 public places, or installation and maintenance therein,
14 thereon or thereunder of poles, wires, pipes or other
15 equipment used in the operation of the taxpayer's business.
16 (a) If the corporate authorities of any home rule
17 municipality have adopted an ordinance that imposed a tax on
18 public utility customers, between July 1, 1971, and October
19 1, 1981, on the good faith belief that they were exercising
20 authority pursuant to Section 6 of Article VII of the 1970
21 Illinois Constitution, that action of the corporate
22 authorities shall be declared legal and valid,
23 notwithstanding a later decision of a judicial tribunal
24 declaring the ordinance invalid. No municipality shall be
25 required to rebate, refund, or issue credits for any taxes
26 described in this paragraph, and those taxes shall be deemed
27 to have been levied and collected in accordance with the
28 Constitution and laws of this State.
29 (b) In any case in which (i) prior to October 19, 1979,
30 the corporate authorities of any municipality have adopted an
31 ordinance imposing a tax authorized by this Section (or by
32 the predecessor provision of the "Revised Cities and Villages
33 Act") and have explicitly or in practice interpreted gross
34 receipts to include either charges added to customers' bills
-39- LRB9004576JSgcA
1 pursuant to the provision of paragraph (a) of Section 36 of
2 the Public Utilities Act or charges added to customers' bills
3 by taxpayers who are not subject to rate regulation by the
4 Illinois Commerce Commission for the purpose of recovering
5 any of the tax liabilities or other amounts specified in such
6 paragraph (a) of Section 36 of that Act, and (ii) on or after
7 October 19, 1979, a judicial tribunal has construed gross
8 receipts to exclude all or part of those charges, then
9 neither those municipality nor any taxpayer who paid the tax
10 shall be required to rebate, refund, or issue credits for any
11 tax imposed or charge collected from customers pursuant to
12 the municipality's interpretation prior to October 19, 1979.
13 This paragraph reflects a legislative finding that it would
14 be contrary to the public interest to require a municipality
15 or its taxpayers to refund taxes or charges attributable to
16 the municipality's more inclusive interpretation of gross
17 receipts prior to October 19, 1979, and is not intended to
18 prescribe or limit judicial construction of this Section. The
19 legislative finding set forth in this subsection does not
20 apply to taxes imposed after the effective date of this
21 amendatory Act of 1995.
22 (c) (Blank).
23 (d) For the purpose of the taxes enumerated in this
24 Section:
25 "Gross receipts" means the consideration received for the
26 transmission of messages, the consideration received for
27 distributing, supplying, furnishing or selling gas for use or
28 consumption and not for resale, and the consideration
29 received for distributing, supplying, furnishing or selling
30 electricity for use or consumption and not for resale, and
31 the consideration received for distributing, supplying,
32 furnishing or selling water for use or consumption and not
33 for resale, and for all services rendered in connection
34 therewith valued in money, whether received in money or
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1 otherwise, including cash, credit, services and property of
2 every kind and material and for all services rendered
3 therewith, and shall be determined without any deduction on
4 account of the cost of transmitting such messages, without
5 any deduction on account of the cost of the service, product
6 or commodity supplied, the cost of materials used, labor or
7 service cost, or any other expenses whatsoever. "Gross
8 receipts" shall not include that portion of the consideration
9 received for distributing, supplying, furnishing, or selling
10 gas, electricity, or water to, or for the transmission of
11 messages for, business enterprises described in paragraph (e)
12 of this Section to the extent and during the period in which
13 the exemption authorized by paragraph (e) is in effect or for
14 school districts or units of local government described in
15 paragraph (f) during the period in which the exemption
16 authorized in paragraph (f) is in effect.
17 For utility bills issued on or after May 1, 1996, but
18 before May 1, 1997, and for receipts from those utility
19 bills, "gross receipts" does not include one-third of (i)
20 amounts added to customers' bills under Section 9-222 of the
21 Public Utilities Act, or (ii) amounts added to customers'
22 bills by taxpayers who are not subject to rate regulation by
23 the Illinois Commerce Commission for the purpose of
24 recovering any of the tax liabilities described in Section
25 9-222 of the Public Utilities Act. For utility bills issued
26 on or after May 1, 1997, but before May 1, 1998, and for
27 receipts from those utility bills, "gross receipts" does not
28 include two-thirds of (i) amounts added to customers' bills
29 under Section 9-222 of the Public Utilities Act, or (ii)
30 amount added to customers' bills by taxpayers who are not
31 subject to rate regulation by the Illinois Commerce
32 Commission for the purpose of recovering any of the tax
33 liabilities described in Section 9-222 of the Public
34 Utilities Act. For utility bills issued on or after May 1,
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1 1998, and for receipts from those utility bills, "gross
2 receipts" does not include (i) amounts added to customers'
3 bills under Section 9-222 of the Public Utilities Act, or
4 (ii) amounts added to customers' bills by taxpayers who are
5 not subject to rate regulation by the Illinois Commerce
6 Commission for the purpose of recovering any of the tax
7 liabilities described in Section 9-222 of the Public
8 Utilities Act.
9 For purposes of this Section "gross receipts" shall not
10 include (i) amounts added to customers' bills under Section
11 9-221 of the Public Utilities Act, or (ii) charges added to
12 customers' bills to recover the surcharge imposed under the
13 Emergency Telephone System Act. This paragraph is not
14 intended to nor does it make any change in the meaning of
15 "gross receipts" for the purposes of this Section, but is
16 intended to remove possible ambiguities, thereby confirming
17 the existing meaning of "gross receipts" prior to the
18 effective date of this amendatory Act of 1995.
19 The words "transmitting messages", in addition to the
20 usual and popular meaning of person to person communication,
21 shall include the furnishing, for a consideration, of
22 services or facilities (whether owned or leased), or both, to
23 persons in connection with the transmission of messages where
24 those persons do not, in turn, receive any consideration in
25 connection therewith, but shall not include such furnishing
26 of services or facilities to persons for the transmission of
27 messages to the extent that any such services or facilities
28 for the transmission of messages are furnished for a
29 consideration, by those persons to other persons, for the
30 transmission of messages.
31 "Person" as used in this Section means any natural
32 individual, firm, trust, estate, partnership, association,
33 joint stock company, joint adventure, corporation, municipal
34 corporation or political subdivision of this State, or a
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1 receiver, trustee, guardian or other representative appointed
2 by order of any court.
3 "Public utility" shall have the meaning ascribed to it in
4 Section 3-105 of the Public Utilities Act and shall include
5 telecommunications carriers as defined in Section 13-202 of
6 that Act.
7 "Electric power" shall have the meaning ascribed to it in
8 Section 10 of the Electric Customer Choice and Protection
9 Act.
10 "Electric service" shall have the meaning ascribed to it
11 in Section 10 of the Electric Customer Choice and Protection
12 Act.
13 In the case of persons engaged in the business of
14 transmitting messages through the use of mobile equipment,
15 such as cellular phones and paging systems, the gross
16 receipts from the business shall be deemed to originate
17 within the corporate limits of a municipality only if the
18 address to which the bills for the service are sent is within
19 those corporate limits. If, however, that address is not
20 located within a municipality that imposes a tax under this
21 Section, then (i) if the party responsible for the bill is
22 not an individual, the gross receipts from the business shall
23 be deemed to originate within the corporate limits of the
24 municipality where that party's principal place of business
25 in Illinois is located, and (ii) if the party responsible for
26 the bill is an individual, the gross receipts from the
27 business shall be deemed to originate within the corporate
28 limits of the municipality where that party's principal
29 residence in Illinois is located.
30 (e) Any municipality that imposes taxes upon public
31 utilities pursuant to this Section whose territory includes
32 any part of an enterprise zone or federally designated
33 Foreign Trade Zone or Sub-Zone may, by a majority vote of its
34 corporate authorities, exempt from those taxes for a period
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1 not exceeding 20 years any specified percentage of gross
2 receipts of public utilities received from business
3 enterprises that:
4 (1) either (i) make investments that cause the
5 creation of a minimum of 200 full-time equivalent jobs in
6 Illinois or (ii) make investments that cause the
7 retention of a minimum of 1,000 full-time jobs in
8 Illinois; and
9 (2) are either (i) located in an Enterprise Zone
10 established pursuant to the Illinois Enterprise Zone Act
11 or (ii) Department of Commerce and Community Affairs
12 designated High Impact Businesses located in a federally
13 designated Foreign Trade Zone or Sub-Zone; and
14 (3) are certified by the Department of Commerce and
15 Community Affairs as complying with the requirements
16 specified in clauses (1) and (2) of this paragraph (e).
17 Upon adoption of the ordinance authorizing the exemption,
18 the municipal clerk shall transmit a copy of that ordinance
19 to the Department of Commerce and Community Affairs. The
20 Department of Commerce and Community Affairs shall determine
21 whether the business enterprises located in the municipality
22 meet the criteria prescribed in this paragraph. If the
23 Department of Commerce and Community Affairs determines that
24 the business enterprises meet the criteria, it shall grant
25 certification. The Department of Commerce and Community
26 Affairs shall act upon certification requests within 30 days
27 after receipt of the ordinance.
28 Upon certification of the business enterprise by the
29 Department of Commerce and Community Affairs, the Department
30 of Commerce and Community Affairs shall notify the Department
31 of Revenue of the certification. The Department of Revenue
32 shall notify the public utilities of the exemption status of
33 the gross receipts received from the certified business
34 enterprises. Such exemption status shall be effective within
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1 3 months after certification.
2 (f) A municipality that imposes taxes upon public
3 utilities under this Section and whose territory includes
4 part of another unit of local government or a school district
5 may by ordinance exempt the other unit of local government or
6 school district from those taxes.
7 (g) The amendment of this Section by Public Act 84-127
8 shall take precedence over any other amendment of this
9 Section by any other amendatory Act passed by the 84th
10 General Assembly before the effective date of Public Act
11 84-127.
12 (h) In any case in which, before July 1, 1992, a person
13 engaged in the business of transmitting messages through the
14 use of mobile equipment, such as cellular phones and paging
15 systems, has determined the municipality within which the
16 gross receipts from the business originated by reference to
17 the location of its transmitting or switching equipment, then
18 (i) neither the municipality to which tax was paid on that
19 basis nor the taxpayer that paid tax on that basis shall be
20 required to rebate, refund, or issue credits for any such tax
21 or charge collected from customers to reimburse the taxpayer
22 for the tax and (ii) no municipality to which tax would have
23 been paid with respect to those gross receipts if the
24 provisions of this amendatory Act of 1991 had been in effect
25 before July 1, 1992, shall have any claim against the
26 taxpayer for any amount of the tax.
27 (Source: P.A. 88-132; 89-325, eff. 1-1-96.)
28 Section 192. The Public Utilities Act is amended by
29 changing Sections 3-105, 4-305, 7-108, 8-404, 8-406, 9-212,
30 9-213, and 9-214 as follows:
31 (220 ILCS 5/3-105) (from Ch. 111 2/3, par. 3-105)
32 Sec. 3-105. "Public utility" means and includes, except
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1 where otherwise expressly provided in this Section, every
2 corporation, company, limited liability company, association,
3 joint stock company or association, firm, partnership or
4 individual, their lessees, trustees, or receivers appointed
5 by any court whatsoever that owns, controls, operates or
6 manages, within this State, directly or indirectly, for
7 public use, any plant, equipment or property used or to be
8 used for or in connection with, or owns or controls any
9 franchise, license, permit or right to engage in:
10 a. the production, storage, transmission, sale,
11 delivery or furnishing of heat, cold, power, electricity,
12 water, or light, except when used solely for
13 communications purposes;
14 b. the disposal of sewerage; or
15 c. the conveyance of oil or gas by pipe line.
16 "Public utility" does not include, however:
17 1. public utilities that are owned and operated by
18 any political subdivision, public institution of higher
19 education or municipal corporation of this State, or
20 public utilities that are owned by such political
21 subdivision, public institution of higher education, or
22 municipal corporation and operated by any of its lessees
23 or operating agents;
24 2. water companies which are purely mutual
25 concerns, having no rates or charges for services, but
26 paying the operating expenses by assessment upon the
27 members of such a company and no other person;
28 3. electric cooperatives as defined in Section
29 3-119;
30 4. residential natural gas cooperatives that are
31 not-for-profit corporations established for the purpose
32 of administering and operating, on a cooperative basis,
33 the furnishing of natural gas to residences for the
34 benefit of their members who are residential consumers of
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1 natural gas. For entities qualifying as residential
2 natural gas cooperatives and recognized by the Illinois
3 Commerce Commission as such, the State shall guarantee
4 legally binding contracts entered into by residential
5 natural gas cooperatives for the express purpose of
6 acquiring natural gas supplies for their members. The
7 Illinois Commerce Commission shall establish rules and
8 regulations providing for such guarantees. The total
9 liability of the State in providing all such guarantees
10 shall not at any time exceed $1,000,000, nor shall the
11 State provide such a guarantee to a residential natural
12 gas cooperative for more than 3 consecutive years;
13 5. sewage disposal companies which provide sewage
14 disposal services on a mutual basis without establishing
15 rates or charges for services, but paying the operating
16 expenses by assessment upon the members of the company
17 and no others;
18 6. (Blank);
19 7. cogeneration facilities, small power production
20 facilities, and other qualifying facilities, as defined
21 in the Public Utility Regulatory Policies Act and
22 regulations promulgated thereunder, except to the extent
23 State regulatory jurisdiction and action is required or
24 authorized by federal law, regulations, regulatory
25 decisions or the decisions of federal or state courts of
26 competent jurisdiction; and
27 8. the ownership or operation of a facility that
28 sells compressed natural gas at retail to the public for
29 use only as a motor vehicle fuel and the selling of
30 compressed natural gas at retail to the public for use
31 only as a motor vehicle fuel;.
32 9. the generation or production of electricity;
33 10. electric service providers; and
34 11. Any building or facility owner or owner's
-47- LRB9004576JSgcA
1 designee who holds ownership over and manages the
2 internal distribution system serving that building or
3 facility or who resells or redistributes electric power
4 purchased from an incumbent utility or electric service
5 provider.
6 For the purpose of the least-cost planning obligations of
7 Section 8-401 and for all of Section 8-402, the Illinois
8 Commerce Commission may, for good cause shown in individual
9 cases, exclude from the meaning of "public utility" the
10 electric operations of any public utility, as otherwise
11 defined in this Act, which serves less than 20,000 electric
12 customers within the State of Illinois, or the gas operations
13 of any public utility, as otherwise defined in this Act,
14 which serves less than 20,000 gas customers within the State
15 of Illinois.
16 (Source: P.A. 88-480; 89-42, eff. 1-1-96.)
17 (220 ILCS 5/4-305) (from Ch. 111 2/3, par. 4-305)
18 Sec. 4-305. Emission allowances. Beginning with the
19 first quarter of 1993, the Commission shall collect from each
20 owner of public utility and each affiliated interest of a
21 public utility owning an electric generating station
22 information relating to the acquisition or sale of emission
23 allowances as defined in Title IV of the federal Clean Air
24 Act Amendments of 1990 (P.L. 101-549), as amended. The
25 information collected shall include the number of emission
26 allowances allocated to each generating station utility, by
27 statute or otherwise, and the number of emission allowances
28 acquired or sold by each generating station utility. The
29 Commission shall establish quarterly requirements for
30 reporting the information specified under this Section.
31 Beginning with the annual report due January 31, 1994, the
32 Commission shall include the information collected under this
33 Section in the annual report required under this Act.
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1 (Source: P.A. 87-1133; 88-226.)
2 (220 ILCS 5/7-108)
3 Sec. 7-108. (a) Where a producer of electricity an
4 affiliate of an electric public utility has offered an
5 unregulated sale of electricity, and the distribution of that
6 electricity such affiliate would use a portion of the
7 utility's distribution or transmission facilities to
8 distribute or transmit the electricity that is to be so sold,
9 the utility shall make such portion of its facilities
10 available to any other person or entity that offers to make
11 such sale, at the same price and under the same terms and
12 conditions as the utility makes such portion of its
13 facilities available to its affiliate. Nothing contained in
14 this Section 7-108(a) shall be construed as requiring or
15 authorizing the Commission to require an electric public
16 utility to make any portion of its facilities available to
17 its affiliate.
18 (b) Where an affiliate of a gas public utility has
19 offered an unregulated sale of gas, and such affiliate would
20 use a portion of the utility's distribution or transmission
21 facilities to distribute or transmit the gas that is to be so
22 sold, the utility shall make such portion of its facilities
23 available to any other person or entity that offers to make
24 such sale, at the same price and under the same terms and
25 conditions as the utility makes such portion of its
26 facilities available to its affiliate. Nothing contained in
27 this Section 7-108(b) shall be construed as requiring or
28 authorizing the Commission to require a gas public utility to
29 make any portion of its facilities available to its
30 affiliate.
31 (c) As used in this Section 7-108:
32 (1) The term "affiliate" shall mean (i) every
33 corporation and person owning or holding, directly or
-49- LRB9004576JSgcA
1 indirectly, 10% or more of the voting capital stock of a
2 public utility; (ii) every corporation and person in any
3 chain of successive ownership of 10% or more of the
4 voting capital stock of such public utility; (iii) every
5 corporation, 10% or more of whose voting capital stock is
6 owned by any person or corporation owning 10% or more of
7 the voting capital stock of such public utility, or by
8 any person or corporation in any such chain of successive
9 ownership of 10% or more of the voting capital stock of
10 such public utility; (iv) every entity, 10% or more of
11 whose voting securities is owned, directly or indirectly,
12 by such public utility or by an entity described in
13 clauses (i), (ii), or (iii) of this paragraph; and (v)
14 every entity in which such public utility or an entity
15 described in clauses (i), (ii), (iii), or (iv) of this
16 paragraph owns, controls, or holds, directly or
17 indirectly, a financial interest entitling it or a
18 contract right potentially entitling it to 10% or more of
19 revenues or profits and losses of any such entity.
20 (2) the term "voting security" shall mean a "voting
21 security" as defined in the Public Utility Holding
22 Company Act of 1935, as amended, and shall also mean any
23 security giving the owner or holder thereof the privilege
24 to convert such security in whole or in part into a
25 voting security, or any security directly or indirectly
26 secured in whole or in part by the pledge of a voting
27 security.
28 (3) the term "security" shall mean a "security" as
29 defined in the Public Utility Holding Company Act of
30 1935, as amended.
31 (4) the term "unregulated sale" shall mean a sale
32 of electricity or gas to an end-user for use in
33 facilities in this State, the price of which sale is not
34 regulated by the Commission.
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1 (Source: P.A. 88-83.)
2 (220 ILCS 5/8-404) (from Ch. 111 2/3, par. 8-404)
3 Sec. 8-404. Irrespective of any energy plan submitted or
4 adopted pursuant to the provisions of Section 8-402, The
5 Commission is also authorized to require any public utility
6 to implement energy conservation, demand control, or
7 alternative supply programs, including, but not limited to,
8 programs promoting energy efficient light bulbs and motors,
9 whenever the Commission determines after hearing, that such
10 programs are likely to be cost-effective. The Commission is
11 also herein authorized to require the implementation of such
12 programs on an experimental basis for the purpose of
13 determining their cost-effectiveness.
14 (Source: P.A. 87-812.)
15 (220 ILCS 5/8-406) (from Ch. 111 2/3, par. 8-406)
16 Sec. 8-406. (a) No public utility not owning any city or
17 village franchise nor engaged in performing any public
18 service or in furnishing any product or commodity within this
19 State as of July 1, 1921 and not possessing a certificate of
20 public convenience and necessity from the Illinois Commerce
21 Commission, the State Public Utilities Commission or the
22 Public Utilities Commission, at the time this amendatory Act
23 of 1985 goes into effect, shall transact any business in this
24 State until it shall have obtained a certificate from the
25 Commission that public convenience and necessity require the
26 transaction of such business.
27 (b) No public utility shall begin the construction of
28 any new plant, equipment, property or facility which is not
29 in substitution of any existing plant, equipment, property or
30 facility or any extension or alteration thereof or in
31 addition thereto, and which in the case of gas and electric
32 utilities may affect the energy plan of the utility unless
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1 and until it shall have obtained from the Commission a
2 certificate that public convenience and necessity require
3 such construction. Whenever after a hearing the Commission
4 determines that any new construction or the transaction of
5 any business by a public utility will promote the public
6 convenience and is necessary thereto, it shall have the power
7 to issue certificates of public convenience and necessity.
8 The Commission shall determine that proposed construction
9 will promote the public convenience and necessity only if the
10 utility demonstrates: (1) that the proposed construction is
11 necessary to provide adequate, reliable and efficient service
12 to its customers and is the least-cost means of satisfying
13 the service needs of its customers; (2) with respect to gas
14 and electric utilities, that the proposed construction is
15 consistent with the most recent energy plan adopted by the
16 Commission for the utility and the State, as updated; (3)
17 that the utility is capable of efficiently managing and
18 supervising the construction process and has taken sufficient
19 action to ensure adequate and efficient construction and
20 supervision thereof; and (4) that the utility is capable of
21 financing the proposed construction without significant
22 adverse financial consequences for the utility or its
23 customers. If the Commission finds that the public
24 convenience and necessity requires a new electric generating
25 facility to be added by the utility, the Commission shall
26 evaluate the proposed construction in comparison with the
27 merits of a facility designed to use Illinois coal in an
28 environmentally acceptable way, and shall consider the
29 economic impact on employment directly or indirectly related
30 to the production of coal in Illinois over the entire period
31 of time affected by the proposed construction or its
32 alternatives.
33 (c) After the effective date of this amendatory Act of
34 1987, no construction shall commence on any new nuclear power
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1 plant to be located within this State, and no certificate of
2 public convenience and necessity or other authorization shall
3 be issued therefor by the Commission, until the Director of
4 the Illinois Environmental Protection Agency finds that the
5 United States Government, through its authorized agency, has
6 identified and approved a demonstrable technology or means
7 for the disposal of high level nuclear waste, or until such
8 construction has been specifically approved by a statute
9 enacted by the General Assembly.
10 As used in this Section, "high level nuclear waste" means
11 those aqueous wastes resulting from the operation of the
12 first cycle of the solvent extraction system or equivalent
13 and the concentrated wastes of the subsequent extraction
14 cycles or equivalent in a facility for reprocessing
15 irradiated reactor fuel and shall include spent fuel
16 assemblies prior to fuel reprocessing.
17 (d) In making its determination, the Commission shall
18 attach primary weight to the cost or cost savings to the
19 customers of the utility. The Commission may consider any or
20 all factors which will or may affect such cost or cost
21 savings.
22 (e) The Commission may issue a temporary certificate
23 which shall remain in force not to exceed one year in cases
24 of emergency, to assure maintenance of adequate service or to
25 serve particular customers, without notice or hearing,
26 pending the determination of an application for a
27 certificate, and may by regulation exempt from the
28 requirements of this Section temporary acts or operations for
29 which the issuance of a certificate will not be required in
30 the public interest.
31 A public utility shall not be required to obtain but may
32 apply for and obtain a certificate of public convenience and
33 necessity pursuant to this Section with respect to any matter
34 as to which it has received the authorization or order of the
-53- LRB9004576JSgcA
1 Commission under the Electric Supplier Act, and any such
2 authorization or order granted a public utility by the
3 Commission under that Act shall as between public utilities
4 be deemed to be, and shall have except as provided in that
5 Act the same force and effect as, a certificate of public
6 convenience and necessity issued pursuant to this Section.
7 No electric cooperative shall be made or shall become a
8 party to or shall be entitled to be heard or to otherwise
9 appear or participate in any proceeding initiated under this
10 Section for authorization of power plant construction and as
11 to matters as to which a remedy is available under The
12 Electric Supplier Act.
13 (f) Such certificates may be altered or modified by the
14 Commission, upon its own motion or upon application by the
15 person or corporation affected. Unless exercised within a
16 period of 2 years from the grant thereof authority conferred
17 by a certificate of convenience and necessity issued by the
18 Commission shall be null and void.
19 No certificate of public convenience and necessity shall
20 be construed as granting a monopoly or an exclusive
21 privilege, immunity or franchise.
22 (Source: P.A. 85-377.)
23 (220 ILCS 5/9-212) (from Ch. 111 2/3, par. 9-212)
24 Sec. 9-212. No new electric utility generating plant or
25 gas production facility, or significant addition to existing
26 facilities or plant, shall be included in a utility's rate
27 base unless and until the utility proves, and the Commission
28 determines, that such plant or facility is both prudent and
29 used and useful in providing utility service to the utility's
30 customers. For purposes of this Section, prudence prudency
31 shall mean that at the time of certification, initiation of
32 construction and each subsequent evaluation of any
33 construction project until the time of completion, based on
-54- LRB9004576JSgcA
1 the evidence introduced in any hearings and all information
2 which was known or should have been known at the time, and
3 relevant planning and certification criteria, it was prudent
4 and reasonable to conclude that the generating or production
5 facility would be used and useful in providing service to
6 customers at the time of completion. If the Commission has
7 issued a certificate of public convenience and necessity for
8 the completed facility and, to the extent that the Commission
9 approves continued construction upon reevaluation subsequent
10 to certification, such actions shall constitute prima facie
11 evidence of the prudence prudency of construction. If the
12 Commission determines as a result of reevaluation during
13 construction that the facility should not be completed, such
14 determination shall constitute prima facie evidence that
15 subsequent construction expenditures were imprudent.
16 A generation or production facility is used and useful
17 only if, and only to the extent that, it is necessary to meet
18 customer demand or economically beneficial in meeting such
19 demand. No generation or production facility shall be found
20 used and useful until and unless it is capable of generation
21 or production at significant operating levels on a consistent
22 and sustainable basis. Any pollution control devices for the
23 control of sulfur dioxide emissions installed or used in
24 accordance with, and up to the cost specified in, an order or
25 supplemental order of the Commission entered pursuant to
26 subsection (e) of Section 8-402.1 shall be deemed prudent and
27 shall, upon being placed into operation on a consistent,
28 sustainable basis by the public utility, be deemed used and
29 useful.
30 (Source: P.A. 87-173.)
31 (220 ILCS 5/9-213) (from Ch. 111 2/3, par. 9-213)
32 Sec. 9-213. The cost of new electric utility generating
33 plants and significant additions to electric utility
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1 generating plants shall not be included in the rate base of
2 any utility. unless such cost is reasonable. Prior to
3 including the cost of plants or additions to utility plants
4 in the rate base, the Commission shall conduct an audit of
5 such costs in order to ascertain whether the cost associated
6 with the new generating plant or the addition to electric
7 utility generating plant is reasonable. However, the
8 Commission may, for good cause shown in individual cases,
9 waive the auditing requirement for any generating facility
10 which meets all of the following requirements:
11 (1) The facility is wholly owned and operated by a
12 public utility, as otherwise defined in this Act, which
13 serves less than 20,000 electric customers within the
14 State of Illinois, and
15 (2) The facility is designed to generate less than
16 50 megawatts of electricity, and
17 (3) The facility is located outside of the State of
18 Illinois.
19 If the Commission is unable to conduct such an audit, the
20 Commission shall arrange for it to be conducted by persons
21 independent of the utility and selected by the Commission.
22 The cost of such an independent audit shall be borne
23 initially by the utility, but shall be recovered as an
24 expense through normal ratemaking procedures. Any such
25 audits shall be conducted in accordance with generally
26 accepted auditing standards and shall include but not be
27 limited to costs associated with materials, labor, equipment,
28 professional services and other direct and indirect costs.
29 "Significant additions to the electric utility generating
30 plant", as used in this Section, shall not include a public
31 utility's investment in pollution control devices for the
32 control of sulfur dioxide emissions. Nothing in this Section
33 is intended to affect the provisions of Section 9-214 of this
34 Act.
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1 "Reasonable", as used in this Section, means that a
2 utility's decisions, construction, and supervision of
3 construction, underlying the costs of new electric utility
4 generating plants and significant additions to electric
5 utility generating plants resulted in efficient, economical
6 and timely construction. In determining the reasonableness
7 of plant costs, the Commission shall consider the knowledge
8 and circumstances prevailing at the time of each relevant
9 utility decision or action.
10 Nothing in this Section shall prevent or limit the
11 Commission from either entering into and conducting joint
12 audits concerning such electric generating plants with the
13 regulatory authority of another state, or from relying on
14 audits conducted by the regulatory authority of another state
15 in lieu of an audit as required by this Section.
16 (Source: P.A. 87-435.)
17 (220 ILCS 5/9-214) (from Ch. 111 2/3, par. 9-214)
18 Sec. 9-214. (a) As used in this Section:
19 (1) "CWIP" means those assets which are recorded as
20 construction work in progress on a public utility's books
21 of accounts maintained in accordance with the applicable
22 regulations and orders of the Commission.
23 (2) "Rate base" means the original cost value of
24 the property on which a return is allowed.
25 (3) "CWIP ratio" means the fraction, expressed as a
26 percentage, calculated by dividing the amount of CWIP
27 included in a public utility's rate base by the utility's
28 rate base.
29 (4) "Existing CWIP" means the amount of CWIP
30 included in the rate base on December 1, 1983.
31 (b) In any determination under Section 9-201, 9-202 or
32 9-250 of this Act in a proceeding begun on or after December
33 1, 1983:
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1 (1) For any public utility with a CWIP ratio on
2 December 1, 1983, which is less than 15%, the Commission
3 shall not include in the rate base for such public
4 utility an amount for CWIP to exceed 80% of existing CWIP
5 for the period from December 1, 1983 through December 31,
6 1984, and 60% of existing CWIP for the period from
7 January 1, 1985 through December 31, 1985 and 40% of
8 existing CWIP for the period from January 1, 1986 through
9 December 31, 1986, and 20% of existing CWIP for the
10 period from January 1, 1987 through December 31, 1987.
11 (2) For any public utility with a CWIP ratio on
12 December 1, 1983 which is greater than or equal to 15%,
13 the Commission shall not include in the rate base for
14 such public utility an amount for CWIP in excess of the
15 amount of CWIP included in the rate base on December 1,
16 1983, plus 50% of the allowed construction expenses
17 incurred by the public utility from the date of the most
18 recent rate determination by the Commission prior to
19 December 1, 1983.
20 (c) The limitations set forth in paragraph (b) of this
21 Section shall not be interpreted as an expansion of the
22 Commission's authority to include CWIP in the rate base, but
23 rather solely as a limitation thereon.
24 (d) The Commission shall not include an amount for CWIP
25 in the rate base for any public utility for the period after
26 December 31, 1988.
27 (e) Notwithstanding the provisions of paragraphs (b) and
28 (d) of this Section the Commission may include in the rate
29 base of a public utility an amount for CWIP for a public
30 utility's investment which is scheduled to be placed in
31 service within 12 months of the date of the rate
32 determination. For the purposes of this paragraph nuclear
33 generating facilities shall be considered to be in service
34 upon the commencement of electric generation.
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1 (f) Notwithstanding the provisions of paragraph (b) and
2 (d), the Commission may include in the rate base of a public
3 utility an amount of CWIP for a public utility's investment
4 in pollution control devices for the control of sulfur
5 dioxide emissions and the purification of water and sewage.;
6 provided, however, that upon application by a public utility
7 which is constructing one or more pollution control devices
8 for the control of sulfur dioxide emissions as part of a
9 Clean Air Act compliance plan approved by the Commission
10 pursuant to subsection (e) of Section 8-402.1, the Commission
11 shall include in such public utility's rate base an amount of
12 CWIP equal to its investment in such pollution control device
13 or devices, but not to exceed the estimated cost of such
14 facilities specified in the Commission's order or
15 supplemental order pursuant to subsection (e) of Section
16 8-402.1. For purposes of this subsection (f), the public
17 utility's investment shall not include the amount of any
18 state, federal or other grants provided to the public utility
19 to fund the design, acquisition, construction, installation
20 and testing of pollution control devices for the control of
21 sulfur dioxide emissions.
22 (g) Except for those amounts of CWIP described in
23 paragraph paragraphs (e) and (f) of this Section, the
24 Commission shall consider, in any rate filing subsequent to
25 the coming on line of any new utility plant where CWIP funds
26 have been allowed in rate base, a rate moderation plan
27 directed towards allowing an appropriate return to ratepayers
28 for previous amounts attributable to CWIP funds.
29 The Commission shall conduct an investigation and study
30 of the costs and benefits to ratepayers of the inclusion of
31 construction work in progress in rate base. Such study shall
32 include a full opportunity for participation by the public
33 through notice and hearings. If the Commission determines
34 that in certain circumstances the inclusion of CWIP in rate
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1 base would be demonstrably beneficial to ratepayers, the
2 Commission shall report its findings with recommendations to
3 the General Assembly by December 31, 1988.
4 (Source: P.A. 87-173.)
5 (220 ILCS 5/8-402 rep.)
6 (220 ILCS 5/8-402.1 rep.)
7 (220 ILCS 5/8-407 rep.)
8 (220 ILCS 5/9-215 rep.)
9 (220 ILCS 5/9-215.1 rep.)
10 (220 ILCS 5/9-217 rep.)
11 Section 193. The Public Utilities Act is amended by
12 repealing Sections 8-402, 8-402.1, 8-407, 9-215, 9-215.1, and
13 9-217.
14 Section 199. Effective date. This Act takes effect upon
15 becoming law.