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| [ Introduced ] | [ Enrolled ] | [ Senate Amendment 001 ] |
91_HB0050eng HB0050 Engrossed LRB9100312JSgc 1 AN ACT to amend the Public Utilities Act by changing 2 Section 16-108. 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 16-108 as follows: 7 (220 ILCS 5/16-108) 8 Sec. 16-108. Recovery of costs associated with the 9 provision of delivery services. 10 (a) An electric utility shall file a delivery services 11 tariff with the Commission at least 210 days beforeprior to12 the date that it is required to begin offering such services 13 pursuant to this Act. An electric utility shall provide the 14 components of delivery services that are subject to the 15 jurisdiction of the Federal Energy Regulatory Commission at 16 the same prices, terms and conditions set forth in its 17 applicable tariff as approved or allowed into effect by that 18 Commission. The Commission shall otherwise have the authority 19 pursuant to Article IX to review, approve, and modify the 20 prices, terms and conditions of those components of delivery 21 services not subject to the jurisdiction of the Federal 22 Energy Regulatory Commission, including the authority to 23 determine the extent to which such delivery services should 24 be offered on an unbundled basis. In making any such 25 determination the Commission shall consider, at a minimum, 26 the effect of additional unbundling on (i) the objective of 27 just and reasonable rates, (ii) electric utility employees, 28 and (iii) the development of competitive markets for electric 29 energy services in Illinois. 30 (b) The Commission shall enter an order approving, or 31 approving as modified, the delivery services tariff no later HB0050 Engrossed -2- LRB9100312JSgc 1 than 30 days prior to the date on which the electric utility 2 must commence offering such services. The Commission may 3 subsequently modify such tariff pursuant to this Act. 4 (c) The electric utility's tariffs shall define the 5 classes of its customers for purposes of delivery services 6 charges. Delivery services shall be priced and made 7 available to all retail customers electing delivery services 8 in each such class on a nondiscriminatory basis regardless of 9 whether the retail customer chooses the electric utility, an 10 affiliate of the electric utility, or another entity as its 11 supplier of electric power and energy. Charges for delivery 12 services shall be cost based, and shall allow the electric 13 utility to recover the costs of providing delivery services 14 through its charges to its delivery service customers that 15 use the facilities and services associated with such costs. 16 Such costs shall include the costs of owning, operating and 17 maintaining transmission and distribution facilities. The 18 Commission shall also be authorized to consider whether, and 19 if so to what extent, the following costs are appropriately 20 included in the electric utility's delivery services rates: 21 (i) the costs of that portion of generation facilities used 22 for the production and absorption of reactive power in order 23 that retail customers located in the electric utility's 24 service area can receive electric power and energy from 25 suppliers other than the electric utility, and (ii) the costs 26 associated with the use and redispatch of generation 27 facilities to mitigate constraints on the transmission or 28 distribution system in order that retail customers located in 29 the electric utility's service area can receive electric 30 power and energy from suppliers other than the electric 31 utility. Nothing in this subsection shall be construed as 32 directing the Commission to allocate any of the costs 33 described in (i) or (ii) that are found to be appropriately 34 included in the electric utility's delivery services rates to HB0050 Engrossed -3- LRB9100312JSgc 1 any particular customer group or geographic area in setting 2 delivery services rates. 3 (d) The Commission shall establish charges, terms and 4 conditions for delivery services that are just and reasonable 5 and shall take into account customer impacts when 6 establishing such charges. In establishing charges, terms and 7 conditions for delivery services, the Commission shall take 8 into account voltage level differences. A retail customer 9 shall have the option to request to purchase electric service 10 at any delivery service voltage reasonably and technically 11 feasible from the electric facilities serving that customer's 12 premises provided that there are no significant adverse 13 impacts upon system reliability or system efficiency. A 14 retail customer shall also have the option to request to 15 purchase electric service at any point of delivery that is 16 reasonably and technically feasible provided that there are 17 no significant adverse impacts on system reliability or 18 efficiency. Such requests shall not be unreasonably denied. 19 (e) Electric utilities shall recover the costs of 20 installing, operating or maintaining facilities for the 21 particular benefit of one or more delivery services 22 customers, including without limitation any costs incurred in 23 complying with a customer's request to be served at a 24 different voltage level, directly from the retail customer or 25 customers for whose benefit the costs were incurred, to the 26 extent such costs are not recovered through the charges 27 referred to in subsections (c) and (d) of this Section. 28 (f) An electric utility shall be entitled but not 29 required to implement transition charges in conjunction with 30 the offering of delivery services pursuant to Section 16-104. 31 If an electric utility implements transition charges, it 32 shall implement such charges for all delivery services 33 customers and for all customers described in subsection (h). 34 Such charges shall be calculated as provided in Section HB0050 Engrossed -4- LRB9100312JSgc 1 16-102, and shall be collected on each kilowatt-hour 2 delivered under a delivery services tariff to a retail 3 customer from the date the customer first takes delivery 4 services until December 31, 2006 except as provided in 5 subsection (h) of this Section. Provided, however, that an 6 electric utility shall be entitled to petition for entry of 7 an order by the Commission authorizing the electric utility 8 to implement transition charges for an additional period 9 ending no later than December 31, 2008. The electric utility 10 shall file its petition with supporting evidence no earlier 11 than 16 months, and no later than 12 months, prior to 12 December 31, 2006. The Commission shall hold a hearing on 13 the electric utility's petition and shall enter its order no 14 later than 8 months after the petition is filed. The 15 Commission shall determine whether and to what extent the 16 electric utility shall be authorized to implement transition 17 charges for an additional period. The Commission may 18 authorize the electric utility to implement transition 19 charges for some or all of the additional period, and shall 20 determine the mitigation factors to be used in implementing 21 such transition charges; provided, that the Commission shall 22 not authorize mitigation factors less than 110% of those in 23 effect during the 12 months ended December 31, 2006. In 24 making its determination, the Commission shall consider the 25 following factors: the necessity to implement transition 26 charges for an additional period in order to maintain the 27 financial integrity of the electric utility; the prudence of 28 the electric utility's actions in reducing its costs since 29 the effective date of this amendatory Act of 1997; the 30 ability of the electric utility to provide safe, adequate and 31 reliable service to retail customers in its service area; and 32 the impact on competition of allowing the electric utility to 33 implement transition charges for the additional period. 34 (g) The electric utility shall file tariffs that HB0050 Engrossed -5- LRB9100312JSgc 1 establish the transition charges to be paid by each class of 2 customers to the electric utility in conjunction with the 3 provision of delivery services. The electric utility's 4 tariffs shall define the classes of its customers for 5 purposes of calculating transition charges. The electric 6 utility's tariffs shall provide for the calculation of 7 transition charges on a customer-specific basis for any 8 retail customer whose average monthly maximum electrical 9 demand on the electric utility's system during the 6 months 10 with the customer's highest monthly maximum electrical 11 demands equals or exceeds 3.0 megawatts for electric 12 utilities having more than 1,000,000 customers, and for other 13 electric utilities for any customer that has an average 14 monthly maximum electrical demand on the electric utility's 15 system of one megawatt or more, and (A) for which there 16 exists data on the customer's usage during the 3 years 17 preceding the date that the customer became eligible to take 18 delivery services, or (B) for which there does not exist data 19 on the customer's usage during the 3 years preceding the date 20 that the customer became eligible to take delivery services, 21 if in the electric utility's reasonable judgment there exists 22 comparable usage information or a sufficient basis to develop 23 such information, and further provided that the electric 24 utility can require customers for which an individual 25 calculation is made to sign contracts that set forth the 26 transition charges to be paid by the customer to the electric 27 utility pursuant to the tariff. 28 (h) An electric utility shall also be entitled to file 29 tariffs that allow it to collect transition charges from 30 retail customers in the electric utility's service area that 31 do not take delivery services but that take electric power or 32 energy from an alternative retail electric supplier or from 33 an electric utility other than the electric utility in whose 34 service area the customer is located. Such charges shall be HB0050 Engrossed -6- LRB9100312JSgc 1 calculated, in accordance with the definition of transition 2 charges in Section 16-102, for the period of time that the 3 customer would be obligated to pay transition charges if it 4 were taking delivery services, except that no deduction for 5 delivery services revenues shall be made in such calculation, 6 and usage data from the customer's class shall be used where 7 historical usage data is not available for the individual 8 customer. The customer shall be obligated to pay such 9 charges on a lump sum basis on or before the date on which 10 the customer commences to take service from the alternative 11 retail electric supplier or other electric utility, provided, 12 that the electric utility in whose service area the customer 13 is located shall offer the customer the option of signing a 14 contract pursuant to which the customer pays such charges 15 ratably over the period in which the charges would otherwise 16 have applied. 17 (i) An electric utility shall be entitled to add to the 18 bills of delivery services customers charges pursuant to 19 Sections 9-221, 9-222 (except as provided in Section 20 9-222.1), and Section 16-114 of this Act, Section 5-5 of the 21 Electricity Infrastructure Maintenance Fee Law, Section 6-5 22 of the Renewable Energy, Energy Efficiency, and Coal 23 Resources Development Law of 1997, and Section 13 of the 24 Energy Assistance Act of 1989. 25 (j) If a retail customer that obtains electric power and 26 energy from cogeneration or self-generation facilities 27 installed for its own use on or before January 1, 1997, 28 subsequently takes service from an alternative retail 29 electric supplier or an electric utility other than the 30 electric utility in whose service area the customer is 31 located for any portion of the customer's electric power and 32 energy requirements formerly obtained from those facilities 33 (including that amount purchased from the utility in lieu of 34 such generation and not as standby power purchases, under a HB0050 Engrossed -7- LRB9100312JSgc 1 cogeneration displacement tariff in effect as of the 2 effective date of this amendatory Act of 1997), the 3 transition charges otherwise applicable pursuant to 4 subsections (f), (g), or (h) of this Section shall not be 5 applicable in any year to that portion of the customer's 6 electric power and energy requirements formerly obtained from 7 those facilities, provided, that for purposes of this 8 subsection (j), such portion shall not exceed the average 9 number of kilowatt-hours per year obtained from the 10 cogeneration or self-generation facilities during the 3 years 11 prior to the date on which the customer became eligible for 12 delivery services, except as provided in subsection (f) of 13 Section 16-110. 14 (Source: P.A. 90-561, eff. 12-16-97.)