State of Illinois
92nd General Assembly
Legislation

   [ Search ]   [ PDF text ]   [ Legislation ]   
[ Home ]   [ Back ]   [ Bottom ]



92_HB2898

 
                                               LRB9202391JSpr

 1        AN ACT relating to public utilities.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.   The  Public  Utilities  Act  is  amended  by
 5    changing Section 16-126 as follows:

 6        (220 ILCS 5/16-126)
 7        Sec.   16-126.   Membership   in  an  independent  system
 8    operator.
 9        (a)  The General Assembly finds that the establishment of
10    one or more independent system operators or their  functional
11    equivalents  is  required to facilitate the development of an
12    open and efficient marketplace for electric power and  energy
13    to  the  benefit  of  Illinois  consumers. Therefore, an each
14    Illinois electric utility owning or controlling  transmission
15    facilities or providing transmission services in Illinois and
16    that  is  a member of the Mid-American Interconnected Network
17    as of the effective date of this amendatory Act of 1997 shall
18    submit  for  approval  to  the  Federal   Energy   Regulatory
19    Commission  an  application  for  establishing  or joining an
20    independent system operator that shall:
21             (1)  independently manage and  control  transmission
22        facilities of any electric utility;
23             (2)  provide for nondiscriminatory access to and use
24        of  the  transmission  system  for  buyers and sellers of
25        electricity;
26             (3)  direct  the  transmission  activities  of   the
27        control area operators;
28             (4)  coordinate, plan, and order the installation of
29        new transmission facilities;
30             (5)  adopt   inspection,  maintenance,  repair,  and
31        replacement standards  for  the  transmission  facilities
 
                            -2-                LRB9202391JSpr
 1        under  its  control  and  direct maintenance, repair, and
 2        replacement of all facilities under its control; and
 3             (6)  implement procedures  and  act  to  assure  the
 4        provision of adequate and reliable service.
 5        These  standards  shall  be  consistent  with reliability
 6    criteria no less stringent  than  those  established  by  the
 7    Mid-American  Interconnected  Network  and the North American
 8    Electric Reliability Council or their successors.
 9        (b)  The requirements of  this  Section  may  be  met  by
10    joining   or   establishing  a  regional  independent  system
11    operator that meets the criteria  enumerated  in  subsections
12    (a),  (c),  and  (d)  of  this  Section, as determined by the
13    Commission. To achieve the objectives set forth in subsection
14    (a), the State of Illinois, through the appropriate officers,
15    departments, and agencies, shall work cooperatively with  the
16    appropriate officials and agencies of those States contiguous
17    to  this  State  and the Federal Energy Regulatory Commission
18    towards the formation of one  or  more  regional  independent
19    system operators.
20        (c)  The   independent   system   operator's   governance
21    structure   must  be  fair  and  nondiscriminatory,  and  the
22    independent system operator must be independent  of  any  one
23    market  participant or class of participants. The independent
24    system operator's rules of governance must  prevent  control,
25    or the appearance of control, of decision-making by any class
26    of participants.
27        (d)  Participants  in  the  independent  system  operator
28    shall  make  available to the independent system operator all
29    information required by the independent  system  operator  in
30    performance   of   its   functions   described   herein.  The
31    independent  system  operator  and  the  electric   utilities
32    participating  in  the independent system operator shall make
33    all  filings  required  by  the  Federal  Energy   Regulatory
34    Commission. The independent system operator shall ensure that
 
                            -3-                LRB9202391JSpr
 1    additional   filings   at   the   Federal  Energy  Regulatory
 2    Commission request confirmation of the relevant provisions of
 3    this amendatory Act of 1997.
 4        (e)  If  a  spot  market,  exchange  market,   or   other
 5    market-based mechanism providing transparent real-time market
 6    prices  for  electric  power  has  not  been  developed,  the
 7    independent system operator or a closely cooperating agent of
 8    the  independent  system  operator  may  provide an efficient
 9    competitive power exchange auction  for  electric  power  and
10    energy,  open  on a nondiscriminatory basis to all suppliers,
11    which meets the loads of all auction customers  at  efficient
12    prices.
13        (f)  For   those   electric   utilities  referred  to  in
14    subsection (a) which have not filed with the  Federal  Energy
15    Regulatory  Commission  by  June  30, 1998 an application for
16    establishment  or  participation  in  an  independent  system
17    operator or if such application has not been approved by  the
18    Federal  Energy  Regulatory Commission by March 31, 1999, a 5
19    member Oversight Board shall be formed. The  Oversight  Board
20    shall  (1)  oversee  the  creation of an Illinois independent
21    system operator and (2) determine the composition and initial
22    terms of service of, and appoint the initial members of,  the
23    Illinois  independent system operator board of directors. The
24    Oversight Board shall consist of the following: (1) 3 persons
25    appointed by the Governor; (2) one person  appointed  by  the
26    Speaker  of  the House of Representatives; and (3) one person
27    appointed by the President of the Senate. The Oversight Board
28    shall take  the  steps  that  are  necessary  to  ensure  the
29    earliest  possible  incorporation  of an Illinois independent
30    system operator under the Business Corporation Act  of  1983,
31    and   shall  serve  until  the  Illinois  independent  system
32    operator is incorporated.
33        (g)  After  notice  and  hearing,  the  Commission  shall
34    require each electric utility referred to in subsection  (a),
 
                            -4-                LRB9202391JSpr
 1    that  is  not participating in an independent system operator
 2    meeting the requirements of subsections (a) and (c), to  seek
 3    authority  from  the  Federal Energy Regulatory Commission to
 4    transfer functional control of transmission facilities to the
 5    Illinois independent  system  operator  for  control  by  the
 6    Illinois  independent  system  operator  consistent  with the
 7    requirements of subsection (a). Upon approval by the  Federal
 8    Energy  Regulatory  Commission,  electric  utilities may also
 9    elect to transfer ownership of transmission facilities to the
10    Illinois independent system operator.  Nothing  in  this  Act
11    shall  be deemed to preclude the  Illinois independent system
12    operator from (1) seeking authority, as necessary,  to  merge
13    with or otherwise combine its operations with those of one or
14    more   other  entities  authorized  to  provide  transmission
15    services, (2) purchasing or leasing transmission assets  from
16    transmission-owning  entities not required by this Section to
17    lease transmission facilities  to  the  Illinois  independent
18    system  operator,  or  (3) operating as a transmission public
19    utility under the Federal Power Act.
20        (h)  Any  other  owner  of  transmission  facilities   in
21    Illinois  not  required  by this Section to participate in an
22    independent system  operator  shall  be  permitted,  but  not
23    required,  to  become  a  member  of the Illinois independent
24    system operator.
25        (i)  The Illinois  independent  system  operator  created
26    under this Section, and any other independent system operator
27    authorized  by  the  Federal  Energy Regulatory Commission to
28    provide transmission services as a public utility  under  the
29    Federal  Power  Act  within  the  State of Illinois, shall be
30    deemed to be a public utility for purposes of  Section  8-503
31    and 8-509 of this Act.
32        (j)  Electric utilities referred to in subsection (a) may
33    withdraw  from  the Illinois independent system operator upon
34    becoming a  member  of  an  independent  system  operator  or
 
                            -5-                LRB9202391JSpr
 1    operators conforming with the criteria in subsections (a) and
 2    (c)  and  whose  formation and operation has been approved by
 3    the Federal Energy  Regulatory  Commission.  This  subsection
 4    does  not  relieve  any  electric  utility of any obligations
 5    under Federal law.
 6        (k)  Nothing  in  this  Section  shall  be  construed  as
 7    imposing any requirements or obligations that are in conflict
 8    with federal law.
 9    (Source: P.A. 90-561, eff. 12-16-97.)

[ Top ]