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90_SB1648
220 ILCS 5/16-111
Amends the Public Utilities Act. Provides that the
electric rate reductions scheduled for August 1, 1998 and May
1, 2002 shall apply to certain retail customers that receive
service from a public utility serving more than 1,000,000
customers and that were engaged in the practice of reselling
or redistributing electricity within a building prior to
January 2, 1957. Effective immediately.
LRB9011675JSdvA
LRB9011675JSdvA
1 AN ACT to amend the Public Utilities Act by changing
2 Section 16-111.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Public Utilities Act is amended by
6 changing Section 16-111 as follows:
7 (220 ILCS 5/16-111)
8 Sec. 16-111. Rates and restructuring transactions during
9 mandatory transition period.
10 (a) During the mandatory transition period,
11 notwithstanding any provision of Article IX of this Act, and
12 except as provided in subsections (b), (d), (e), and (f) of
13 this Section, the Commission shall not (i) initiate,
14 authorize or order any change by way of increase (other than
15 in connection with a request for rate increase which was
16 filed after September 1, 1997 but prior to October 15, 1997,
17 by an electric utility serving less than 12,500 customers in
18 this state), (ii) initiate or, unless requested by the
19 electric utility, authorize or order any change by way of
20 decrease, restructuring or unbundling (except as provided in
21 Section 16-109A), in the rates of any electric utility that
22 were in effect on October 1, 1996, or (iii) in any order
23 approving any application for a merger pursuant to Section
24 7-204 that was pending as of May 16, 1997, impose any
25 condition requiring any filing for an increase, decrease, or
26 change in, or other review of, an electric utility's rates or
27 enforce any such condition of any such order; provided,
28 however, that this subsection shall not prohibit the
29 Commission from:
30 (1) approving the application of an electric
31 utility to implement an alternative to rate of return
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1 regulation or a regulatory mechanism that rewards or
2 penalizes the electric utility through adjustment of
3 rates based on utility performance, pursuant to Section
4 9-244;
5 (2) authorizing an electric utility to eliminate
6 its fuel adjustment clause and adjust its base rate
7 tariffs in accordance with subsection (b), (d), or (f) of
8 Section 9-220 of this Act, to fix its fuel adjustment
9 factor in accordance with subsection (c) of Section 9-220
10 of this Act, or to eliminate its fuel adjustment clause
11 in accordance with subsection (e) of Section 9-220 of
12 this Act;
13 (3) ordering into effect tariffs for delivery
14 services and transition charges in accordance with
15 Sections 16-104 and 16-108, for real-time pricing in
16 accordance with Section 16-107, or the options required
17 by Section 16-110 and subsection (n) of 16-112, allowing
18 a billing experiment in accordance with Section 16-106,
19 or modifying delivery services tariffs in accordance with
20 Section 16-109; or
21 (4) ordering or allowing into effect any tariff to
22 recover charges pursuant to Sections 9-201.5, 9-220.1,
23 9-221, 9-222 (except as provided in Section 9-222.1),
24 16-108, and 16-114 of this Act, Section 5-5 of the
25 Electricity Infrastructure Maintenance Fee Law, Section
26 6-5 of the Renewable Energy, Energy Efficiency, and Coal
27 Resources Development Law of 1997, and Section 13 of the
28 Energy Assistance Act of 1989.
29 (b) Notwithstanding the provisions of subsection (a),
30 each Illinois electric utility serving more than 12,500
31 customers in Illinois shall file tariffs (i) reducing,
32 effective August 1, 1998, each component of its base rates to
33 residential retail customers by 15% from the base rates in
34 effect immediately prior to January 1, 1998 and (ii) if the
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1 public utility provides electric service to more than 500,000
2 customers in this State on the effective date of this
3 amendatory Act of 1997, reducing, effective May 1, 2002, each
4 component of its base rates to residential retail customers
5 by an additional 5% from the base rates in effect immediately
6 prior to January 1, 1998. Provided, however, that (A) if an
7 electric utility's average residential retail rate is less
8 than or equal to the average residential retail rate for a
9 group of Midwest Utilities (consisting of all investor-owned
10 electric utilities with annual system peaks in excess of 1000
11 megawatts in the States of Illinois, Indiana, Iowa, Kentucky,
12 Michigan, Missouri, Ohio, and Wisconsin), based on data
13 reported on Form 1 to the Federal Energy Regulatory
14 Commission for calendar year 1995, then it shall only be
15 required to file tariffs (i) reducing, effective August 1,
16 1998, each component of its base rates to residential retail
17 customers by 5% from the base rates in effect immediately
18 prior to January 1, 1998, (ii) reducing, effective October 1,
19 2000, each component of its base rates to residential retail
20 customers by the lesser of 5% of the base rates in effect
21 immediately prior to January 1, 1998 or the percentage by
22 which the electric utility's average residential retail rate
23 exceeds the average residential retail rate of the Midwest
24 Utilities, based on data reported on Form 1 to the Federal
25 Energy Regulatory Commission for calendar year 1999, and
26 (iii) reducing, effective October 1, 2002, each component of
27 its base rates to residential retail customers by an
28 additional amount equal to the lesser of 5% of the base rates
29 in effect immediately prior to January 1, 1998 or the
30 percentage by which the electric utility's average
31 residential retail rate exceeds the average residential
32 retail rate of the Midwest Utilities, based on data reported
33 on Form 1 to the Federal Energy Regulatory Commission for
34 calendar year 2001; and (B) if the average residential retail
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1 rate of an electric utility serving between 150,000 and
2 250,000 retail customers in this State on January 1, 1995 is
3 less than or equal to 90% of the average residential retail
4 rate for the Midwest Utilities, based on data reported on
5 Form 1 to the Federal Energy Regulatory Commission for
6 calendar year 1995, then it shall only be required to file
7 tariffs (i) reducing, effective August 1, 1998, each
8 component of its base rates to residential retail customers
9 by 2% from the base rates in effect immediately prior to
10 January 1, 1998; (ii) reducing, effective October 1, 2000,
11 each component of its base rates to residential retail
12 customers by 2% from the base rate in effect immediately
13 prior to January 1, 1998; and (iii) reducing, effective
14 October 1, 2002, each component of its base rates to
15 residential retail customers by 1% from the base rates in
16 effect immediately prior to January 1, 1998. Provided,
17 further, that any electric utility for which a decrease in
18 base rates has been or is placed into effect between October
19 1, 1996 and the dates specified in the preceding sentences of
20 this subsection, other than pursuant to the requirements of
21 this subsection, shall be entitled to reduce the amount of
22 any reduction or reductions in its base rates required by
23 this subsection by the amount of such other decrease. The
24 tariffs required under this subsection shall be filed 45 days
25 in advance of the effective date. Notwithstanding anything to
26 the contrary in Section 9-220 of this Act, no restatement of
27 base rates in conjunction with the elimination of a fuel
28 adjustment clause under that Section shall result in a lesser
29 decrease in base rates than customers would otherwise receive
30 under this subsection had the electric utility's fuel
31 adjustment clause not been eliminated. For the purposes of
32 this Section, an entity that on December 16, 1997 was
33 receiving electric service from a public utility serving more
34 than 1,000,000 customers and was engaged in the practice of
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1 resale and redistribution of electricity within a building
2 prior to January 2, 1957, but only to the extent the resale
3 or redistribution is authorized by the electric utility's
4 tariffs that were on file with the Commission on December 16,
5 1997, shall be deemed a residential retail customer.
6 (c) Any utility reducing its base rates by 15% on August
7 1, 1998 pursuant to subsection (b) shall include the
8 following statement on its bills for residential customers
9 from August 1 through December 31, 1998: "Effective August 1,
10 1998, your rates have been reduced by 15% by the Electric
11 Service Customer Choice and Rate Relief Law of 1997 passed by
12 the Illinois General Assembly.". Any utility reducing its
13 base rates by 5% on August 1, 1998, pursuant to subsection
14 (b) shall include the following statement on its bills for
15 residential customers from August 1 through December 31,
16 1998: "Effective August 1, 1998, your rates have been
17 reduced by 5% by the Electric Service Customer Choice and
18 Rate Relief Law of 1997 passed by the Illinois General
19 Assembly.".
20 Any utility reducing its base rates by 2% on August 1,
21 1998 pursuant to subsection (b) shall include the following
22 statement on its bills for residential customers from August
23 1 through December 31, 1998: "Effective August 1, 1998, your
24 rates have been reduced by 2% by the Electric Service
25 Customer Choice and Rate Relief Law of 1997 passed by the
26 Illinois General Assembly.".
27 (d) During the mandatory transition period, but not
28 before January 1, 2000, and notwithstanding the provisions
29 of subsection (a), an electric utility may request an
30 increase in its base rates if the electric utility
31 demonstrates that the 2-year average of its earned rate of
32 return on common equity, calculated as its net income
33 applicable to common stock divided by the average of its
34 beginning and ending balances of common equity using data
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1 reported in the electric utility's Form 1 report to the
2 Federal Energy Regulatory Commission but adjusted to remove
3 the effects of accelerated depreciation or amortization or
4 other transition or mitigation measures implemented by the
5 electric utility pursuant to subsection (g) of this Section
6 and the effect of any refund paid pursuant to subsection (e)
7 of this Section, is below the 2-year average for the same 2
8 years of the monthly average yields of 30-year U.S. Treasury
9 bonds published by the Board of Governors of the Federal
10 Reserve System in its weekly H.15 Statistical Release or
11 successor publication. The Commission shall review the
12 electric utility's request, and may review the justness and
13 reasonableness of all rates for tariffed services, in
14 accordance with the provisions of Article IX of this Act,
15 provided that the Commission shall consider any special or
16 negotiated adjustments to the revenue requirement agreed to
17 between the electric utility and the other parties to the
18 proceeding. In setting rates under this Section, the
19 Commission shall exclude the costs and revenues that are
20 associated with competitive services and any billing or
21 pricing experiments conducted under Section 16-106.
22 (e) For the purposes of this subsection (e) all
23 calculations and comparisons shall be performed for the
24 Illinois operations of multijurisdictional utilities. During
25 the mandatory transition period, notwithstanding the
26 provisions of subsection (a), if the 2-year average of an
27 electric utility's earned rate of return on common equity,
28 calculated as its net income applicable to common stock
29 divided by the average of its beginning and ending balances
30 of common equity using data reported in the electric
31 utility's Form 1 report to the Federal Energy Regulatory
32 Commission but adjusted to remove the effect of any refund
33 paid under this subsection (e), and further adjusted to
34 include the annual amortization of any difference between the
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1 consideration received by an affiliated interest of the
2 electric utility in the sale of an asset which had been sold
3 or transferred by the electric utility to the affiliated
4 interest subsequent to the effective date of this amendatory
5 Act of 1997 and the consideration for which such asset had
6 been sold or transferred to the affiliated interest, with
7 such difference to be amortized ratably from the date of the
8 sale by the affiliated interest to December 31, 2006, exceeds
9 the 2-year average of the Index for the same 2 years by 1.5
10 or more percentage points, the electric utility shall make
11 refunds to customers beginning the first billing day of April
12 in the following year in the manner described in paragraph
13 (3) of this subsection. For purposes of this subsection (e),
14 the "Index" shall be the sum of (A) the average for the 12
15 months ended September 30 of the monthly average yields of
16 30-year U.S. Treasury bonds published by the Board of
17 Governors of the Federal Reserve System in its weekly H.15
18 Statistical Release or successor publication for each year
19 1998 through 2004, and (B) (i) 4.00 percentage points for
20 each of the 12-month periods ending September 30, 1998
21 through September 30, 1999 or 8.00 percentage points if the
22 electric utility's average residential retail rate is less
23 than or equal to 90% of the average residential retail rate
24 for the "Midwest Utilities", as that term is defined in
25 subsection (b) of this Section, based on data reported on
26 Form 1 to the Federal Energy Regulatory Commission for
27 calendar year 1995, and the electric utility served between
28 150,000 and 250,000 retail customers on January 1, 1995, or
29 (ii) 5.00 percentage points for each of the 12-month periods
30 ending September 30, 2000 through September 30, 2004 or 9.00
31 percentage points if the electric utility's average
32 residential retail rate is less than or equal to 90% of the
33 average residential retail rate for the "Midwest Utilities",
34 as that term is defined in subsection (b) of this Section,
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1 based on data reported on Form 1 to the Federal Energy
2 Regulatory Commission for calendar year 1995 and the electric
3 utility served between 150,000 and 250,000 retail customers
4 in this State on January 1, 1995.
5 (1) For purposes of this subsection (e), "excess
6 earnings" means the difference between (A) the 2-year
7 average of the electric utility's earned rate of return
8 on common equity, less (B) the 2-year average of the sum
9 of (i) the Index applicable to each of the 2 years and
10 (ii) 1.5 percentage points; provided, that "excess
11 earnings" shall never be less than zero.
12 (2) On or before March 31 of each year 2000 through
13 2005 each electric utility shall file a report with the
14 Commission showing its earned rate of return on common
15 equity, calculated in accordance with this subsection,
16 for the preceding calendar year and the average for the
17 preceding 2 calendar years.
18 (3) If an electric utility has excess earnings,
19 determined in accordance with paragraphs (1) and (2) of
20 this subsection, the refunds which the electric utility
21 shall pay to its customers beginning the first billing
22 day of April in the following year shall be calculated
23 and applied as follows:
24 (i) The electric utility's excess earnings
25 shall be multiplied by the average of the beginning
26 and ending balances of the electric utility's common
27 equity for the 2-year period in which excess
28 earnings occurred.
29 (ii) The result of the calculation in (i)
30 shall be multiplied by 0.50 and then divided by a
31 number equal to 1 minus the electric utility's
32 composite federal and State income tax rate.
33 (iii) The result of the calculation in (ii)
34 shall be divided by the sum of the electric
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1 utility's projected total kilowatt-hour sales to
2 retail customers plus projected kilowatt-hours to be
3 delivered to delivery services customers over a one
4 year period beginning with the first billing date in
5 April in the succeeding year to determine a cents
6 per kilowatt-hour refund factor.
7 (iv) The cents per kilowatt-hour refund factor
8 calculated in (iii) shall be credited to the
9 electric utility's customers by applying the factor
10 on the customer's monthly bills to each
11 kilowatt-hour sold or delivered until the total
12 amount calculated in (ii) has been paid to
13 customers.
14 (f) During the mandatory transition period, an electric
15 utility may file revised tariffs reducing the price of any
16 tariffed service offered by the electric utility for all
17 customers taking that tariffed service, which shall be
18 effective 7 days after filing.
19 (g) During the mandatory transition period, an electric
20 utility may, without obtaining any approval of the Commission
21 other than that provided for in this subsection and
22 notwithstanding any other provision of this Act or any rule
23 or regulation of the Commission that would require such
24 approval:
25 (1) implement a reorganization, other than a merger
26 of 2 or more public utilities as defined in Section 3-105
27 or their holding companies;
28 (2) retire generating plants from service;
29 (3) sell, assign, lease or otherwise transfer
30 assets to an affiliated or unaffiliated entity and as
31 part of such transaction enter into service agreements,
32 power purchase agreements, or other agreements with the
33 transferee; provided, however, that the prices, terms and
34 conditions of any power purchase agreement must be
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1 approved or allowed into effect by the Federal Energy
2 Regulatory Commission; or
3 (4) use any accelerated cost recovery method
4 including accelerated depreciation, accelerated
5 amortization or other capital recovery methods, or record
6 reductions to the original cost of its assets.
7 In order to implement a reorganization, retire generating
8 plants from service, or sell, assign, lease or otherwise
9 transfer assets pursuant to this Section, the electric
10 utility shall comply with subsections (c) and (d) of Section
11 16-128, if applicable, and provide the Commission with at
12 least 30 days notice of the proposed reorganization or
13 transaction, which notice shall include the following
14 information:
15 (i) a complete statement of the entries that
16 the electric utility will make on its books and
17 records of account to implement the proposed
18 reorganization or transaction together with a
19 certification from an independent certified public
20 accountant that such entries are in accord with
21 generally accepted accounting principles and, if the
22 Commission has previously approved guidelines for
23 cost allocations between the utility and its
24 affiliates, a certification from the chief
25 accounting officer of the utility that such entries
26 are in accord with those cost allocation guidelines;
27 (ii) a description of how the electric utility
28 will use proceeds of any sale, assignment, lease or
29 transfer to retire debt or otherwise reduce or
30 recover the costs of services provided by such
31 electric utility;
32 (iii) a list of all federal approvals or
33 approvals required from departments and agencies of
34 this State, other than the Commission, that the
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1 electric utility has or will obtain before
2 implementing the reorganization or transaction;
3 (iv) an irrevocable commitment by the electric
4 utility that it will not, as a result of the
5 transaction, impose any stranded cost charges that
6 it might otherwise be allowed to charge retail
7 customers under federal law or increase the
8 transition charges that it is otherwise entitled to
9 collect under this Article XVI; and
10 (v) if the electric utility proposes to sell,
11 assign, lease or otherwise transfer a generating
12 plant that brings the amount of net dependable
13 generating capacity transferred pursuant to this
14 subsection to an amount equal to or greater than 15%
15 of the electric utility's net dependable capacity as
16 of the effective date of this amendatory Act of
17 1997, and enters into a power purchase agreement
18 with the entity to which such generating plant is
19 sold, assigned, leased, or otherwise transferred,
20 the electric utility also agrees, if its fuel
21 adjustment clause has not already been eliminated,
22 to eliminate its fuel adjustment clause in
23 accordance with subsection (b) of Section 9-220 for
24 a period of time equal to the length of any such
25 power purchase agreement or successor agreement, or
26 until January 1, 2005, whichever is longer; if the
27 capacity of the generating plant so transferred and
28 related power purchase agreement does not result in
29 the elimination of the fuel adjustment clause under
30 this subsection, and the fuel adjustment clause has
31 not already been eliminated, the electric utility
32 shall agree that the costs associated with the
33 transferred plant that are included in the
34 calculation of the rate per kilowatt-hour to be
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1 applied pursuant to the electric utility's fuel
2 adjustment clause during such period shall not
3 exceed the per kilowatt-hour cost associated with
4 such generating plant included in the electric
5 utility's fuel adjustment clause during the full
6 calendar year preceding the transfer, with such
7 limit to be adjusted each year thereafter by the
8 Gross Domestic Product Implicit Price Deflator.
9 (vi) In addition, if the electric utility
10 proposes to sell, assign, or lease, (A) either (1)
11 an amount of generating plant that brings the amount
12 of net dependable generating capacity transferred
13 pursuant to this subsection to an amount equal to or
14 greater than 15% of its net dependable capacity on
15 the effective date of this amendatory Act of 1997,
16 or (2) one or more generating plants with a total
17 net dependable capacity of 1100 megawatts, or (B)
18 transmission and distribution facilities that either
19 (1) bring the amount of transmission and
20 distribution facilities transferred pursuant to this
21 subsection to an amount equal to or greater than 15%
22 of the electric utility's total depreciated original
23 cost investment in such facilities, or (2) represent
24 an investment of $25,000,000 in terms of total
25 depreciated original cost, the electric utility
26 shall provide, in addition to the information listed
27 in subparagraphs (i) through (v), the following
28 information: (A) a description of how the electric
29 utility will meet its service obligations under this
30 Act in a safe and reliable manner and (B) the
31 electric utility's projected earned rate of return
32 on common equity, calculated in accordance with
33 subsection (d) of this Section, for each year from
34 the date of the notice through December 31, 2004
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1 both with and without the proposed transaction. If
2 the Commission has not issued an order initiating a
3 hearing on the proposed transaction within 30 days
4 after the date the electric utility's notice is
5 filed, the transaction shall be deemed approved.
6 The Commission may, after notice and hearing,
7 prohibit the proposed transaction if it makes either
8 or both of the following findings: (1) that the
9 proposed transaction will render the electric
10 utility unable to provide its tariffed services in a
11 safe and reliable manner, or (2) that there is a
12 strong likelihood that consummation of the proposed
13 transaction will result in the electric utility
14 being entitled to request an increase in its base
15 rates during the mandatory transition period
16 pursuant to subsection (d) of this Section. Any
17 hearing initiated by the Commission into the
18 proposed transaction shall be completed, and the
19 Commission's final order approving or prohibiting
20 the proposed transaction shall be entered, within 90
21 days after the date the electric utility's notice
22 was filed. Provided, however, that a sale,
23 assignment, or lease of transmission facilities to
24 an independent system operator that meets the
25 requirements of Section 16-126 shall not be subject
26 to Commission approval under this Section.
27 In any proceeding conducted by the Commission
28 pursuant to this subparagraph (vi), intervention
29 shall be limited to parties with a direct interest
30 in the transaction which is the subject of the
31 hearing and any statutory consumer protection agency
32 as defined in subsection (d) of Section 9-102.1.
33 Notwithstanding the provisions of Section 10-113 of
34 this Act, any application seeking rehearing of an
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1 order issued under this subparagraph (vi), whether
2 filed by the electric utility or by an intervening
3 party, shall be filed within 10 days after service
4 of the order.
5 The Commission shall not in any subsequent proceeding or
6 otherwise, review such a reorganization or other transaction
7 authorized by this Section, but shall retain the authority to
8 allocate costs as stated in Section 16-111(i). An entity to
9 which an electric utility sells, assigns, leases or transfers
10 assets pursuant to this subsection (g) shall not, as a result
11 of the transactions specified in this subsection (g), be
12 deemed a public utility as defined in Section 3-105. Nothing
13 in this subsection (g) shall change any requirement under the
14 jurisdiction of the Illinois Department of Nuclear Safety
15 including, but not limited to, the payment of fees. Nothing
16 in this subsection (g) shall exempt a utility from obtaining
17 a certificate pursuant to Section 8-406 of this Act for the
18 construction of a new electric generating facility. Nothing
19 in this subsection (g) is intended to exempt the transactions
20 hereunder from the operation of the federal or State
21 antitrust laws. Nothing in this subsection (g) shall require
22 an electric utility to use the procedures specified in this
23 subsection for any of the transactions specified herein. Any
24 other procedure available under this Act may, at the electric
25 utility's election, be used for any such transaction.
26 (h) During the mandatory transition period, the
27 Commission shall not establish or use any rates of
28 depreciation, which for purposes of this subsection shall
29 include amortization, for any electric utility other than
30 those established pursuant to subsection (c) of Section 5-104
31 of this Act or utilized pursuant to subsection (g) of this
32 Section. Provided, however, that in any proceeding to review
33 an electric utility's rates for tariffed services pursuant to
34 Section 9-201, 9-202, 9-250 or 16-111(d) of this Act, the
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1 Commission may establish new rates of depreciation for the
2 electric utility in the same manner provided in subsection
3 (d) of Section 5-104 of this Act. An electric utility
4 implementing an accelerated cost recovery method including
5 accelerated depreciation, accelerated amortization or other
6 capital recovery methods, or recording reductions to the
7 original cost of its assets, pursuant to subsection (g) of
8 this Section, shall file a statement with the Commission
9 describing the accelerated cost recovery method to be
10 implemented or the reduction in the original cost of its
11 assets to be recorded. Upon the filing of such statement,
12 the accelerated cost recovery method or the reduction in the
13 original cost of assets shall be deemed to be approved by the
14 Commission as though an order had been entered by the
15 Commission.
16 (i) Subsequent to the mandatory transition period, the
17 Commission, in any proceeding to establish rates and charges
18 for tariffed services offered by an electric utility, shall
19 consider only (1) the then current or projected revenues,
20 costs, investments and cost of capital directly or indirectly
21 associated with the provision of such tariffed services; (2)
22 collection of transition charges in accordance with Sections
23 16-102 and 16-108 of this Act; (3) recovery of any employee
24 transition costs as described in Section 16-128 which the
25 electric utility is continuing to incur, including recovery
26 of any unamortized portion of such costs previously incurred
27 or committed, with such costs to be equitably allocated among
28 bundled services, delivery services, and contracts with
29 alternative retail electric suppliers; and (4) recovery of
30 the costs associated with the electric utility's compliance
31 with decommissioning funding requirements; and shall not
32 consider any other revenues, costs, investments or cost of
33 capital of either the electric utility or of any affiliate of
34 the electric utility that are not associated with the
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1 provision of tariffed services. In setting rates for
2 tariffed services, the Commission shall equitably allocate
3 joint and common costs and investments between the electric
4 utility's competitive and tariffed services. In determining
5 the justness and reasonableness of the electric power and
6 energy component of an electric utility's rates for tariffed
7 services subsequent to the mandatory transition period and
8 prior to the time that the provision of such electric power
9 and energy is declared competitive, the Commission shall
10 consider the extent to which the electric utility's tariffed
11 rates for such component for each customer class exceed the
12 market value determined pursuant to Section 16-112, and, if
13 the electric power and energy component of such tariffed rate
14 exceeds the market value by more than 10% for any customer
15 class, may establish such electric power and energy component
16 at a rate equal to the market value plus 10%. In any such
17 case, the Commission may also elect to extend the provisions
18 of Section 16-111(e) for any period in which the electric
19 utility is collecting transition charges, using information
20 applicable to such period.
21 (j) During the mandatory transition period, an electric
22 utility may elect to transfer to a non-operating income
23 account under the Commission's Uniform System of Accounts
24 either or both of (i) an amount of unamortized investment tax
25 credit that is in addition to the ratable amount which is
26 credited to the electric utility's operating income account
27 for the year in accordance with Section 46(f)(2) of the
28 federal Internal Revenue Code of 1986, as in effect prior to
29 P.L. 101-508, or (ii) "excess tax reserves", as that term is
30 defined in Section 203(e)(2)(A) of the federal Tax Reform Act
31 of 1986, provided that (A) the amount transferred may not
32 exceed the amount of the electric utility's assets that were
33 created pursuant to Statement of Financial Accounting
34 Standards No. 71 which the electric utility has written off
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1 during the mandatory transition period, and (B) the transfer
2 shall not be effective until approved by the Internal Revenue
3 Service. An electric utility electing to make such a
4 transfer shall file a statement with the Commission stating
5 the amount and timing of the transfer for which it intends to
6 request approval of the Internal Revenue Service, along with
7 a copy of its proposed request to the Internal Revenue
8 Service for a ruling. The Commission shall issue an order
9 within 14 days after the electric utility's filing approving,
10 subject to receipt of approval from the Internal Revenue
11 Service, the proposed transfer.
12 (Source: P.A. 90-561, eff. 12-16-97; 90-563, eff. 12-16-97.)
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.