State of Illinois
92^nd General Assembly
Legislation

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92_SB2235eng

 
SB2235 Engrossed                              LRB9215298WHcsA

 1        AN ACT concerning energy.

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

 4        Section  5.  The Energy Assistance Act of 1989 is amended
 5    by changing Sections 1, 2, 4, 5, 6, 7, 8, and 13 as follows:

 6        (305 ILCS 20/1) (from Ch. 111 2/3, par. 1401)
 7        Sec. 1.  Short Title.  This Act shall be known and may be
 8    cited as the "Energy Assistance Act of 1989".
 9    (Source: P.A. 86-127.)

10        (305 ILCS 20/2) (from Ch. 111 2/3, par. 1402)
11        Sec. 2. Findings and Intent.
12        (a)  The General Assembly finds that:
13             (1)  the health,  welfare,  and  prosperity  of  the
14        people of the State of Illinois require that all citizens
15        have  access  to  receive  essential  levels  of heat and
16        electric service regardless of economic circumstance;
17             (2)  public utilities and other  entities  providing
18        such  services are entitled to receive proper payment for
19        services actually rendered;
20             (3)  declining Federal low income energy  assistance
21        funding  necessitates  a  State  response  to  ensure the
22        continuity  and  the  further   development   of   energy
23        assistance  and  related  policies  and  programs  within
24        Illinois; and
25             (4)  energy  assistance  policies  and  programs  in
26        effect in Illinois during the past 3 years have benefited
27        all  Illinois citizens, and should therefore be continued
28        with the modifications provided herein.
29        (b)  Consistent with its findings, the  General  Assembly
30    declares that it is the policy of the State that:
 
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 1             (1)  a  comprehensive  low  income energy assistance
 2        policy  and   program   should   be   established   which
 3        incorporates  income assistance, home weatherization, and
 4        other measures to assist ensure that citizens  to  obtain
 5        have access to affordable energy services;
 6             (2)  the  ability  of  public  utilities  and  other
 7        entities  to  receive  just  compensation  for  providing
 8        services should not be jeopardized by this policy;
 9             (3)  resources  applied  in  achieving  this  policy
10        should  be  coordinated  and efficiently utilized through
11        the  integration  of  public  programs  and  through  the
12        targeting of assistance; and
13             (4)  the State should utilize  all  appropriate  and
14        available  means  to fund this program and, to the extent
15        possible, should identify and utilize sources of  funding
16        which complement State tax revenues.
17    (Source: P.A. 86-127.)

18        (305 ILCS 20/4) (from Ch. 111 2/3, par. 1404)
19        Sec. 4. Energy Assistance Program.
20        (a)  The  Department of Commerce and Community Affairs is
21    hereby authorized to institute a program  to  promote  ensure
22    the  availability  and  affordability of heating and electric
23    service  to  low  income  citizens.   The  Department   shall
24    implement  the  program  by  rule promulgated pursuant to The
25    Illinois Administrative Procedure Act.   The program shall be
26    consistent with the purposes and objectives of this  Act  and
27    with  all  other  specific requirements provided herein.  The
28    Department shall ensure that the program is in  operation  by
29    November 1, 1989, and may enter into such contracts and other
30    agreements  with  local  agencies as may be necessary for the
31    purpose of administering the energy assistance program.
32        (b)  Nothing in this Act shall be construed  as  altering
33    or  limiting the authority conferred on the Illinois Commerce
 
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 1    Commission by  the  Public  Utilities  Act  to  regulate  all
 2    aspects of the provision of public utility service, including
 3    but not limited to the authority to make rules and adjudicate
 4    disputes   between   utilities   and   customers  related  to
 5    eligibility for utility service, deposits, payment practices,
 6    discontinuance of service, and the  treatment  of  arrearages
 7    owing for previously rendered utility service.
 8    (Source: P.A. 86-127.)

 9        (305 ILCS 20/5) (from Ch. 111 2/3, par. 1405)
10        Sec. 5.  Policy Advisory Council.
11        (a)  Within  the  Department  of  Commerce  and Community
12    Affairs is created a  Low  Income  Energy  Assistance  Policy
13    Advisory Council.
14        (b)  The  Council  shall  be  chaired  by the Director of
15    Commerce and Community Affairs or his or her designee.  There
16    shall  be  17  members  of  the  Low Income Energy Assistance
17    Policy Advisory Council, including the  chairperson  and  the
18    following members:
19             (1)  one  member designated by the Illinois Commerce
20        Commission;
21             (2)  one   member   designated   by   the   Illinois
22        Department of Natural Resources;
23             (3)  one member designated by  the  Illinois  Energy
24        Association   to   represent  electric  public  utilities
25        serving in excess of 1 million customers in this State;
26             (4)  one member agreed upon by gas public  utilities
27        that  serve  more  than 500,000  and fewer than 1,500,000
28        customers in this State;
29             (5)  one member agreed upon by gas public  utilities
30        that serve 1,500,000 or more customers in this State;
31             (6)  one  member  designated  by the Illinois Energy
32        Association to represent  combination  gas  and  electric
33        public utilities;
 
SB2235 Engrossed            -4-               LRB9215298WHcsA
 1             (7)  one   member   agreed   upon  by  the  Illinois
 2        Municipal Electric Agency and the Association of Illinois
 3        Electric Cooperatives;
 4             (8)  one  member  agreed  upon   by   the   Illinois
 5        Industrial Energy Consumers;
 6             (9)  three  members  designated by the Department to
 7        represent low income energy consumers;
 8             (10)  two  members  designated   by   the   Illinois
 9        Community  Action Association to represent local agencies
10        that assist in the administration of this Act;
11             (11)  one member designated by the Citizens  Utility
12        Board to represent residential energy consumers;
13             (12)  one  member  designated by the Illinois Retail
14        Merchants  Association  to  represent  commercial  energy
15        customers; and
16             (13)  one member designated  by  the  Department  to
17        represent independent energy providers.
18        (c)  Designated  and appointed members shall serve 2 year
19    terms and until their successors are appointed and qualified.
20    The designating organization shall notify the chairperson  of
21    any changes or substitutions of a designee within 10 business
22    days of a change or substitution. Members shall serve without
23    compensation,  but may receive reimbursement for actual costs
24    incurred  in  fulfilling  their  duties  as  members  of  the
25    Council.
26        (d)  The Council shall have the following duties:
27             (1)  to monitor the administration of  this  Act  to
28        ensure  effective,  efficient,  and  coordinated  program
29        development and implementation;
30             (2)  to  assist  the  Department  in  developing and
31        administering  rules  and  regulations  required  to   be
32        promulgated  pursuant  to this Act in a manner consistent
33        with the purpose and objectives of this Act;
34             (3)  to facilitate and coordinate the collection and
 
SB2235 Engrossed            -5-               LRB9215298WHcsA
 1        exchange of all program data and other information needed
 2        by the Department and others in fulfilling  their  duties
 3        pursuant to this Act;
 4             (4)  to advise the Department on the proper level of
 5        support required for effective administration of the Act;
 6             (5)  to  provide  a  written  opinion concerning any
 7        regulation proposed pursuant to this Act, and  to  review
 8        and  comment  on  any  energy  assistance or related plan
 9        required to be prepared by the Department;
10             (6)  to advise the Department on the  use  of  funds
11        collected  pursuant to Section 11 of this Act, and on any
12        changes to existing low income energy assistance programs
13        to make effective use of such funds, so long as such uses
14        and changes are consistent with the requirements  of  the
15        Act. Policy Advisory Council to be comprised of:
16             (1)  the  following  ex  officio  members  or  their
17        designees:    the  Director  of  Commerce  and  Community
18        Affairs who shall serve as Chair of  the  Committee,  the
19        Director  of  Natural  Resources,  the Secretary of Human
20        Services, and  the  Chairman  of  the  Illinois  Commerce
21        Commission; and
22             (2)  9   persons  who  shall  be  appointed  by  the
23        Governor to serve 2 year terms and until their successors
24        are appointed and qualified, 3 of whom shall  be  persons
25        who  represent  low  income  households  or organizations
26        which represent such  households,  3  of  whom  shall  be
27        representatives  of  public  utilities  or other entities
28        which provide winter energy services, and 3 of whom shall
29        be representatives  of  local  agencies  engaged  by  the
30        Department to assist in the administration of this Act.
31             (3)  6   persons  who  shall  be  appointed  by  the
32        Director of the  Department  of  Commerce  and  Community
33        Affairs  to serve 2 year terms and until their successors
34        are appointed and qualified, who shall be persons meeting
 
SB2235 Engrossed            -6-               LRB9215298WHcsA
 1        such qualifications as may be  required  by  the  federal
 2        government  for  the administration of the Weatherization
 3        Assistance Program  funded  by  the  U.S.  Department  of
 4        Energy and any such related energy assistance programs.
 5             (4)  Members  shall  serve without compensation, but
 6        may receive reimbursement for actual  costs  incurred  in
 7        fulfilling their duties as members of the Council.
 8        (b)  The Policy Advisory Council shall have the following
 9    duties:
10             (1)  to  monitor  the  administration of this Act to
11        ensure  effective,  efficient,  and  coordinated  program
12        development and implementation;
13             (2)  to assist  the  Department  in  developing  and
14        administering   rules  and  regulations  required  to  be
15        promulgated pursuant to this Act in a  manner  consistent
16        with the purpose and objectives of this Act;
17             (3)  to facilitate and coordinate the collection and
18        exchange of all program data and other information needed
19        by  the  Department and others in fulfilling their duties
20        pursuant to this Act;
21             (4)  to advise the Department on the proper level of
22        support required for effective administration of the Act;
23             (5)  to provide a  written  opinion  concerning  any
24        regulation  proposed  pursuant to this Act, and to review
25        and comment on any  energy  assistance  or  related  plan
26        required to be prepared by the Department;
27             (6)  on  or before March 1 of each year beginning in
28        1990, to prepare and submit a report to the Governor  and
29        General  Assembly  which  describes the activities of the
30        Department  in  the  development  and  implementation  of
31        energy assistance  and  related  policies  and  programs,
32        which   characterizes   progress   towards   meeting  the
33        objectives  and  requirements  of  this  Act,  and  which
34        recommends any statutory changes which might be needed to
 
SB2235 Engrossed            -7-               LRB9215298WHcsA
 1        further such progress.   The  report  submitted  in  1991
 2        shall   include   an   analysis  of  and  recommendations
 3        regarding this Act's provisions concerning State  payment
 4        of pre-program arrearages; and
 5             (7)  to  advise  the  Department on the use of funds
 6        collected pursuant to Section 13 of this Act, and on  any
 7        changes to existing low-income energy assistance programs
 8        to make effective use of such funds, so long as such uses
 9        and  changes  are  consistent  with  the  requirements of
10        subsection (a) of Section 13 of this Act.
11    (Source: P.A.  89-445,  eff.  2-7-96;  89-507,  eff.  7-1-97;
12    90-561, eff. 12-16-97.)

13        (305 ILCS 20/6) (from Ch. 111 2/3, par. 1406)
14        Sec.  6.   Eligibility,  Conditions of Participation, and
15    Energy Assistance.
16        (a)  Any person  who  is  a  resident  of  the  State  of
17    Illinois  and  whose  household income is not greater than an
18    amount determined annually by the Department, in consultation
19    with the Policy Advisory Council, may  apply  for  assistance
20    pursuant   to   this   Act  in  accordance  with  regulations
21    promulgated  by  the  Department.  In  setting   the   annual
22    eligibility  level,  the Department shall consider the amount
23    of available funding and may not set a limit higher than 150%
24    of the federal nonfarm poverty level as  established  by  the
25    federal Office of Management and Budget.
26        (b)  Applicants  who  qualify  for assistance pursuant to
27    subsection  (a)   of   this   Section   shall,   subject   to
28    appropriation  from  the  General  Assembly  and  subject  to
29    availability  of  funds  to  the  Department,  receive energy
30    assistance as provided by this  Act.   The  Department,  upon
31    receipt  of monies authorized pursuant to this Act for energy
32    assistance, shall commit funds for each  qualified  applicant
33    in  an  amount  determined by the Department.  In determining
 
SB2235 Engrossed            -8-               LRB9215298WHcsA
 1    the amounts of assistance to be provided to or on behalf of a
 2    qualified applicant, the Department  shall  ensure  that  the
 3    highest  amounts  of  assistance  go  to  households with the
 4    greatest energy costs in relation to household  income.   The
 5    Department  shall  include  factors  such  as  energy  costs,
 6    household  size,  household  income,  and region of the State
 7    when determining individual household benefits.   In  setting
 8    assistance  levels,  the  Department shall attempt to provide
 9    assistance to approximately the same number of households who
10    participated  in  the  1991  Residential  Energy   Assistance
11    Partnership   Program.    Such  assistance  levels  shall  be
12    adjusted annually on the basis of  funding  availability  and
13    energy  costs.   In promulgating rules for the administration
14    of this Section the Department shall assure that a minimum of
15    1/3 of funds available for benefits  to  eligible  households
16    with  the lowest incomes are made available to households who
17    are eligible for  public  assistance  and  that  elderly  and
18    disabled   households   are   offered  a  priority  one-month
19    application period.
20        (c)  If the applicant is not  a  customer  of  an  energy
21    provider  for winter energy services or an applicant for such
22    service,  such  applicant  shall  receive  a  direct   energy
23    assistance payment in an amount established by the Department
24    for  all  such  applicants under this Act; provided, however,
25    that such an applicant must have rental expenses for  housing
26    greater than 30% of household income.
27        (d)  If   the  applicant  is  a  customer  of  an  energy
28    provider, such applicant shall receive energy  assistance  in
29    an   amount  established  by  the  Department  for  all  such
30    applicants under this Act, such amount  to  be  paid  by  the
31    Department  to  the  energy  provider supplying winter energy
32    service to such applicant.  Such applicant shall:
33             (i)  make all reasonable efforts  to  apply  to  any
34        other appropriate source of public energy assistance; and
 
SB2235 Engrossed            -9-               LRB9215298WHcsA
 1             (ii)  sign  a  waiver  permitting  the Department to
 2        receive income information from  any  public  or  private
 3        agency providing income or energy assistance and from any
 4        employer, whether public or private.
 5        (e)  Any qualified applicant pursuant to this Section may
 6    receive  or have paid on such applicant's behalf an emergency
 7    assistance payment to enable such applicant to obtain  access
 8    to  winter  energy services.  Any such payments shall be made
 9    in accordance with regulations of the Department.
10        (f)  The  Department  may,  if   sufficient   funds   are
11    available,  provide  additional benefits to certain qualified
12    applicants:
13             (i)  for the reduction of past due amounts  owed  to
14        energy providers; and
15             (ii)  to  assist  the  household  in  responding  to
16        excessively  high  summer  temperatures  or energy costs.
17        Households containing elderly members, children, a person
18        with a disability, or a person with a  medical  need  for
19        conditioned  air  shall  receive  priority for receipt of
20        such benefits.
21    (Source: P.A. 91-936, eff. 1-10-01.)

22        (305 ILCS 20/7) (from Ch. 111 2/3, par. 1407)
23        Sec. 7.  State Weatherization Plan and Program.
24        (a)  The Department shall, after  consultation  with  the
25    Policy  Advisory  Council,  prepare  and promulgate an annual
26    State Weatherization Plan beginning  in  the  year  this  Act
27    becomes  effective.   To  the  extent  practicable, such Plan
28    shall provide for targeting use of  both  State  and  federal
29    weatherization funds to the households of eligible applicants
30    pursuant  to  this Act whose ratios of energy costs to income
31    are the highest.  The State Weatherization Plan shall include
32    but need not be limited to the following:
33             (1)  a    description     of     the     demographic
 
SB2235 Engrossed            -10-              LRB9215298WHcsA
 1        characteristics   and   energy  use  patterns  of  people
 2        eligible for assistance pursuant to this Act;
 3             (2)  the  methodology  used  by  the  Department  in
 4        targeting weatherization funds;
 5             (3)  a  description  of  anticipated  activity   and
 6        results  for  the  year covered by the Plan, including an
 7        estimate of energy cost savings expected to  be  realized
 8        by the weatherization program; and
 9             (4)  every   third   year,  beginning  in  2002,  an
10        evaluation of results from the weatherization program  in
11        the year preceding the plan year, including the effect of
12        State   Weatherization   Program  investments  on  energy
13        consumption and  cost  in  the  population  eligible  for
14        assistance  pursuant  to  this  Act,  and  the  effect of
15        targeted weatherization investments on the costs  of  the
16        energy assistance program authorized by this Act.
17        (b)  The    Department    shall   implement   the   State
18    Weatherization Plan by rule through a program which  provides
19    targeted weatherization assistance to eligible applicants for
20    energy  assistance  pursuant  to this Act. The Department may
21    enter into such contracts and other arrangements  with  local
22    agencies as may be necessary for the purpose of administering
23    the weatherization program.
24    (Source: P.A. 86-127; 87-14.)

25        (305 ILCS 20/8) (from Ch. 111 2/3, par. 1408)
26        Sec. 8.  Program Evaluation Reports.
27        (a)  The  Department  of  Natural Resources shall prepare
28    and submit to the Governor and the General  Assembly  reports
29    on  September  30 biennially March 15 of each year, beginning
30    in 2003 1991, evaluating  the  effectiveness  of  the  energy
31    assistance  and  weatherization  policies  authorized by this
32    Act.  The first report shall cover such  effects  during  the
33    first winter during which the program authorized by this Act,
 
SB2235 Engrossed            -11-              LRB9215298WHcsA
 1    is  in  operation, and successive reports shall cover effects
 2    since the issuance of the preceding report.
 3             (1) (b)  Reports issued  pursuant  to  this  Section
 4        shall  be  limited to, information concerning the effects
 5        of the policies authorized by this Act on (1) the ability
 6        of eligible applicants to obtain  and  maintain  adequate
 7        and  affordable winter energy services and (2) changes in
 8        the costs and prices of winter energy services for people
 9        who do not receive energy  assistance  pursuant  to  this
10        Act.
11             (2) (c)  The  Department  of Natural Resources shall
12        by September 30, 2002, in consultation  with  the  Policy
13        Advisory  Council,  determine  the kinds of numerical and
14        other  information  needed  to  conduct  the  evaluations
15        required by this Section, and  shall  advise  the  Policy
16        Advisory  Council  of  such information needs in a timely
17        manner.    The  Department  of  Commerce  and   Community
18        Affairs,  the  Department  of  Human  Services,  and  the
19        Illinois  Commerce  Commission  shall  each  provide such
20        information as the Department of  Natural  Resources  may
21        require   to   ensure   that   the  evaluation  reporting
22        requirement established by this Section can be met.
23        (b)  On or before December  31,  2002,  2004,  2006,  and
24    2007,  the  Department shall prepare a report for the General
25    Assembly on the expenditure of  funds  appropriated  for  the
26    programs authorized under this Act.
27        (c)  On or before December 31 of each year in 2004, 2006,
28    and  2007,  the  Department  shall,  in consultation with the
29    Council,  prepare  and  submit  evaluation  reports  to   the
30    Governor  and  the  General Assembly outlining the effects of
31    the program designed under this Act on the  following  as  it
32    relates to the propriety of continuing the program:
33             (1)  the   definition  of  an  eligible  low  income
34        residential customer;
 
SB2235 Engrossed            -12-              LRB9215298WHcsA
 1             (2)  access of low income residential  customers  to
 2        essential energy services;
 3             (3)  past  due  amounts  owed  to  utilities  by low
 4        income persons in Illinois;
 5             (4)  appropriate  measures   to   encourage   energy
 6        conservation,  efficiency,  and  responsibility among low
 7        income residential customers;
 8             (5)  the  activities  of  the  Department   in   the
 9        development  and  implementation of energy assistance and
10        related  policies  and  programs,   which   characterizes
11        progress  toward  meeting the objectives and requirements
12        of this Act, and which recommends any  statutory  changes
13        which might be needed to further such progress.
14        (d)  The  Department  shall  by  September  30,  2002  in
15    consultation  with  the  Council  determine  the   kinds   of
16    numerical   and  other  information  needed  to  conduct  the
17    evaluations required by this Section.
18        (e) (d)  The Illinois Commerce Commission  shall  require
19    each  public utility providing heating or electric service to
20    compile and submit any numerical and other information needed
21    by the Department of Natural Resources to meet its  reporting
22    obligations.
23    (Source: P.A. 89-445, eff. 2-7-96; 89-507, eff. 7-1-97.)

24        (305 ILCS 20/13)
25        Sec. 13.  Supplemental Low-Income Energy Assistance Fund.
26        (a)  The  Supplemental  Low-Income Energy Assistance Fund
27    is hereby created as a special fund in  the  State  Treasury.
28    The   Supplemental   Low-Income  Energy  Assistance  Fund  is
29    authorized to  receive,  by  statutory  deposit,  the  moneys
30    collected    pursuant    to   this   Section.    Subject   to
31    appropriation, the  Department  shall  use  moneys  from  the
32    Supplemental  Low-Income  Energy Assistance Fund for payments
33    to electric or gas public utilities,  municipal  electric  or
 
SB2235 Engrossed            -13-              LRB9215298WHcsA
 1    gas  utilities,  and electric cooperatives on behalf of their
 2    customers who are participants in the program  authorized  by
 3    Section  4  of  this Act, for the provision of weatherization
 4    services  and  for   administration   of   the   Supplemental
 5    Low-Income  Energy  Assistance Fund.  The yearly expenditures
 6    for weatherization may not exceed 10% of the amount collected
 7    during the year pursuant to  this  Section.   In  determining
 8    which   customers  will  participate  in  the  weatherization
 9    component, the Department  shall  target  weatherization  for
10    those  customers with the greatest energy burden, that is the
11    lowest  income  and  greatest  utility  bills.   The   yearly
12    administrative expenses of the Supplemental Low-Income Energy
13    Assistance  Fund  may  not exceed 10% of the amount collected
14    during that year pursuant to this Section.
15        (b)  Notwithstanding the provisions of Section 16-111  of
16    the  Public  Utilities  Act  but subject to subsection (k) of
17    this Section, each public utility, electric  cooperative,  as
18    defined  in  Section  3.4  of  the Electric Supplier Act, and
19    municipal utility, as referenced  in  Section  3-105  of  the
20    Public  Utilities  Act,  that  is  engaged in the delivery of
21    electricity or the distribution of  natural  gas  within  the
22    State  of  Illinois  shall, effective January 1, 1998, assess
23    each of its customer accounts  a  monthly  Energy  Assistance
24    Charge  for  the  Supplemental  Low-Income  Energy Assistance
25    Fund. The delivering public utility,  municipal  electric  or
26    gas   utility,   or   electric   or  gas  cooperative  for  a
27    self-assessing purchaser remains subject to the collection of
28    the fee imposed by this Section.  The monthly charge shall be
29    as follows:
30             (1)  $0.40 per month on each account for residential
31        electric service;
32             (2)  $0.40 per month on each account for residential
33        gas service;
34             (3)  $4   per   month   on    each    account    for
 
SB2235 Engrossed            -14-              LRB9215298WHcsA
 1        non-residential  electric  service which had less than 10
 2        megawatts of peak demand  during  the  previous  calendar
 3        year;
 4             (4)  $4    per    month    on   each   account   for
 5        non-residential gas service which had distributed  to  it
 6        less  than  4,000,000  therms  of gas during the previous
 7        calendar year;
 8             (5)  $300   per   month   on   each   account    for
 9        non-residential  electric  service which had 10 megawatts
10        or greater of peak demand during  the  previous  calendar
11        year; and
12             (6)  $300    per   month   on   each   account   for
13        non-residential gas service which had 4,000,000  or  more
14        therms  of  gas  distributed  to  it  during the previous
15        calendar year.
16        (c)  For purposes of this Section:
17             (1)  "residential electric service"  means  electric
18        utility  service  for  household  purposes delivered to a
19        dwelling of 2 or fewer units  which  is  billed  under  a
20        residential   rate,   or  electric  utility  service  for
21        household purposes delivered to a dwelling unit or  units
22        which   is   billed  under  a  residential  rate  and  is
23        registered by a separate meter for each dwelling unit;
24             (2)  "residential gas  service"  means  gas  utility
25        service  for household purposes distributed to a dwelling
26        of 2 or fewer units which is billed under  a  residential
27        rate,  or  gas  utility  service  for  household purposes
28        distributed to a dwelling unit or units which  is  billed
29        under  a residential rate and is registered by a separate
30        meter for each dwelling unit;
31             (3)  "non-residential   electric   service"    means
32        electric   utility   service  which  is  not  residential
33        electric service; and
34             (4)  "non-residential gas service" means gas utility
 
SB2235 Engrossed            -15-              LRB9215298WHcsA
 1        service which is not residential gas service.
 2        (d)  At least 45 days prior to the date on which it  must
 3    begin   assessing  Energy  Assistance  Charges,  each  public
 4    utility  engaged  in  the  delivery  of  electricity  or  the
 5    distribution of natural gas  shall  file  with  the  Illinois
 6    Commerce   Commission   tariffs   incorporating   the  Energy
 7    Assistance Charge in other charges stated in such tariffs.
 8        (e)  The Energy Assistance Charge  assessed  by  electric
 9    and  gas  public  utilities  shall be considered a charge for
10    public utility service.
11        (f)  By the 20th day of the month following the month  in
12    which the charges imposed by the Section were collected, each
13    public  utility,  municipal utility, and electric cooperative
14    shall remit to the Department of Revenue all moneys  received
15    as  payment  of  the  Energy  Assistance  Charge  on a return
16    prescribed and furnished by the Department of Revenue showing
17    such information as the Department of Revenue may  reasonably
18    require.   If  a  customer  makes a partial payment, a public
19    utility, municipal utility, or electric cooperative may elect
20    either: (i) to apply such partial payments first  to  amounts
21    owed  to the utility or cooperative for its services and then
22    to payment for the Energy Assistance Charge or (ii) to  apply
23    such  partial  payments  on  a pro-rata basis between amounts
24    owed to the utility or cooperative for its  services  and  to
25    payment for the Energy Assistance Charge.
26        (g)  The  Department  of  Revenue  shall deposit into the
27    Supplemental Low-Income Energy  Assistance  Fund  all  moneys
28    remitted  to  it  in  accordance  with subsection (f) of this
29    Section.
30        (h)  (Blank).  If  as  of  June  30,  2002  the   program
31    authorized  by Section 4 of this Act has not been replaced by
32    a new energy assistance program which is in  operation,  then
33    the  General  Assembly  shall  review  the  program; provided
34    however, that after that date, any public utility,  municipal
 
SB2235 Engrossed            -16-              LRB9215298WHcsA
 1    utility,  or electric cooperative shall continue to assess an
 2    Energy Assistance Charge which was originally assessed on  or
 3    before June 30, 2002 and which remains unpaid.
 4        On  or  before  December  31,  2002, the Department shall
 5    prepare a report for the General Assembly on the  expenditure
 6    of  funds  appropriated from the Low-Income Energy Assistance
 7    Block Grant Fund for the program authorized under  Section  4
 8    of this Act.
 9        (i)  The  Department  of Revenue may establish such rules
10    as it deems necessary to implement this Section.
11        (j)  The Department of Commerce and Community Affairs may
12    establish such rules as it deems necessary to implement  this
13    Section.
14        (k)  The charges imposed by this Section shall only apply
15    to  customers  of  municipal  electric  or  gas utilities and
16    electric or gas cooperatives if the municipal electric or gas
17    utility or electric or gas cooperative makes  an  affirmative
18    decision  to  impose  the charge.  If a municipal electric or
19    gas utility or an electric cooperative makes  an  affirmative
20    decision  to  impose the charge provided by this Section, the
21    municipal electric or gas  utility  or  electric  cooperative
22    shall  inform  the  Department  of Revenue in writing of such
23    decision when it begins to impose the charge.  If a municipal
24    electric or gas utility or electric or gas  cooperative  does
25    not assess this charge, the Department may not use funds from
26    the Supplemental Low-Income Energy Assistance Fund to provide
27    benefits  to  its  customers  under the program authorized by
28    Section 4 of this Act.
29        In  its  use  of  federal  funds  under  this  Act,   the
30    Department  may  not  cause a disproportionate share of those
31    federal funds to benefit customers of systems  which  do  not
32    assess the charge provided by this Section.
33        This  Section  is  repealed  effective  December 31, 2007
34    unless renewed  by  action  of  the  General  Assembly.   The
 
SB2235 Engrossed            -17-              LRB9215298WHcsA
 1    General   Assembly   shall   consider   the  results  of  the
 2    evaluations described in Section 8 in its deliberations.
 3    (Source: P.A. 90-561, eff. 12-16-97; 90-624, eff. 7-10-98.)

 4        (305 ILCS 20/7.1 rep.)
 5        (305 ILCS 20/9 rep.)
 6        (305 ILCS 20/12 rep.)
 7        (305 ILCS 20/14 rep.)
 8        Section 10.  The Energy Assistance Act of 1989 is amended
 9    by repealing Sections 7.1, 9, 12, and 14.

10        Section 15.  The Renewable Energy, Energy Efficiency, and
11    Coal Resources Development Law of 1997 is amended by changing
12    Section 6-5 as follows:

13        (20 ILCS 687/6-5)
14        (Section scheduled to be repealed on December 16, 2007)
15        Sec. 6-5. Renewable Energy Resources and Coal  Technology
16    Development Assistance Charge.
17        (a)  Notwithstanding  the provisions of Section 16-111 of
18    the Public Utilities Act but subject  to  subsection  (e)  of
19    this  Section,  each public utility, electric cooperative, as
20    defined in Section 3.4 of  the  Electric  Supplier  Act,  and
21    municipal  utility,  as  referenced  in  Section 3-105 of the
22    Public Utilities Act, that is  engaged  in  the  delivery  of
23    electricity  or  the  distribution  of natural gas within the
24    State of Illinois shall, effective January  1,  1998,  assess
25    each  of  its  customer  accounts  a monthly Renewable Energy
26    Resources and Coal Technology Development Assistance  Charge.
27    The  delivering  public  utility,  municipal  electric or gas
28    utility, or electric or gas cooperative for a  self-assessing
29    purchaser  remains  subject  to  the  collection  of  the fee
30    imposed by this Section.  The  monthly  charge  shall  be  as
31    follows:
 
SB2235 Engrossed            -18-              LRB9215298WHcsA
 1             (1)  $0.05 per month on each account for residential
 2        electric  service  as defined in Section 13 of the Energy
 3        Assistance Act of 1989;
 4             (2)  $0.05 per month on each account for residential
 5        gas service as  defined  in  Section  13  of  the  Energy
 6        Assistance Act of 1989;
 7             (3)  $0.50   per   month   on   each   account   for
 8        nonresidential electric service, as defined in Section 13
 9        of the Energy Assistance Act of 1989, which had less than
10        10  megawatts of peak demand during the previous calendar
11        year;
12             (4)  $0.50   per   month   on   each   account   for
13        nonresidential gas service, as defined in Section  13  of
14        the  Energy Assistance Act of 1989, which had distributed
15        to it less  than  4,000,000  therms  of  gas  during  the
16        previous calendar year;
17             (5)  $37.50   per   month   on   each   account  for
18        nonresidential electric service, as defined in Section 13
19        of the Energy  Assistance  Act  of  1989,  which  had  10
20        megawatts  or  greater of peak demand during the previous
21        calendar year; and
22             (6)  $37.50  per   month   on   each   account   for
23        nonresidential  gas  service, as defined in Section 13 of
24        the Energy Assistance Act of 1989, which had 4,000,000 or
25        more therms of gas distributed to it during the  previous
26        calendar year.
27        (b)  The  Renewable  Energy Resources and Coal Technology
28    Development Assistance Charge assessed by  electric  and  gas
29    public  utilities  shall  be  considered  a charge for public
30    utility service.
31        (c)  Fifty percent of the moneys  collected  pursuant  to
32    this  Section  shall  be  deposited  in  the Renewable Energy
33    Resources Trust  Fund  by  the  Department  of  Revenue.  The
34    remaining 50 percent of the moneys collected pursuant to this
 
SB2235 Engrossed            -19-              LRB9215298WHcsA
 1    Section shall be deposited in the Coal Technology Development
 2    Assistance  Fund  by  the Department of Revenue for use under
 3    the Illinois Coal Technology Development Assistance Act.
 4        (d)  By the 20th day of the month following the month  in
 5    which  the  charges  imposed  by this Section were collected,
 6    each  utility  and  alternative  retail   electric   supplier
 7    collecting  charges  pursuant  to this Section shall remit to
 8    the Department of Revenue for deposit in the Renewable Energy
 9    Resources Trust Fund  and  the  Coal  Technology  Development
10    Assistance  Fund all moneys received as payment of the charge
11    provided for in this  Section  on  a  return  prescribed  and
12    furnished   by   the   Department  of  Revenue  showing  such
13    information as  the  Department  of  Revenue  may  reasonably
14    require.
15        (e)  The charges imposed by this Section shall only apply
16    to  customers  of  municipal  electric  or  gas utilities and
17    electric or gas cooperatives if the municipal electric or gas
18    utility or electric or gas cooperative makes  an  affirmative
19    decision to impose the charge. If a municipal electric or gas
20    utility   or   an   electric  or  gas  cooperative  makes  an
21    affirmative decision to impose the charge  provided  by  this
22    Section, the municipal electric or gas utility or electric or
23    gas  cooperative  shall  inform  the Department of Revenue in
24    writing of such decision when it begins to impose the charge.
25    If a municipal electric or gas utility  or  electric  or  gas
26    cooperative  does not assess this charge, its customers shall
27    not be eligible for the Renewable Energy Resources Program.
28        (f)  The Department of Revenue may establish  such  rules
29    as it deems necessary to implement this Section.
30    (Source: P.A. 90-561, eff. 12-16-97; 90-624, eff. 7-10-98.)

31        Section  20.   The  Public  Utilities  Act  is amended by
32    changing Sections 8-207, 16-108, and 16-111 as follows:
 
SB2235 Engrossed            -20-              LRB9215298WHcsA
 1        (220 ILCS 5/8-207) (from Ch. 111 2/3, par. 8-207)
 2        Sec. 8-207. Any former residential customer whose gas  or
 3    electric  service  was used to provide or control the primary
 4    source of space heating in the dwelling and whose service  is
 5    disconnected  for  nonpayment  of  a  bill  or a deposit from
 6    December 1 of the prior winter's heating season through April
 7    1 of  the  current  heating  season  shall  be  eligible  for
 8    reconnection  and  a  deferred  payment arrangement under the
 9    provisions  of  this  Section,  subject  to   the   following
10    limitations:
11        A  utility shall not be required to reconnect service to,
12    and enter into a deferred payment arrangement with, a  former
13    customer  under  the  provisions  of  this Section (1) except
14    between November 1 and April 1 of the current heating  season
15    for former customers who do not have applications pending for
16    the  program  described in Section 6 of the Energy Assistance
17    Act of 1989, and except between October 1 and April 1 of  the
18    current  heating  season for all former customers who do have
19    applications pending for the program described in  Section  6
20    of the Energy Assistance Act of 1989 and who provide proof of
21    application  to  the utility, (2) in 2 consecutive years, (3)
22    unless that former customer has paid at least 33 1/3% of  the
23    amount  billed  for  utility service rendered by that utility
24    subsequent to December 1 of the prior year,  or  (4)  in  any
25    instance  where the utility can show there has been tampering
26    with the utility's wires, pipes,  meters  (including  locking
27    devices),  or  other service equipment and further shows that
28    the former customer enjoyed the benefit  of  utility  service
29    obtained in the aforesaid manner.
30        The   terms   and  conditions  of  any  deferred  payment
31    arrangements established by the utility and a former customer
32    shall take into consideration the  following  factors,  based
33    upon  information  available  from current utility records or
34    provided by the former customer:
 
SB2235 Engrossed            -21-              LRB9215298WHcsA
 1             (1)  the amount past due;
 2             (2)  the former customer's ability to pay;
 3             (3)  the former customer's payment history;
 4             (4)  the reasons for the accumulation  of  the  past
 5        due amounts; and
 6             (5)  any  other  relevant  factors  relating  to the
 7        former customer's circumstances.
 8        After  the  former  customer's   eligibility   has   been
 9    established  in  accordance  with the first paragraph of this
10    Section and, upon the establishment  of  a  deferred  payment
11    agreement,  the  former  customer shall pay 1/3 of the amount
12    past due (including reconnecting charge, if any) and  1/3  of
13    any deposit required by the utility.
14        Upon the payment of 1/3 of the amount past due and 1/3 of
15    any  deposit  required  by the utility, the former customer's
16    service shall  be  reconnected  as  soon  as  possible.   The
17    company  and  the  former  customer  shall agree to a payment
18    schedule for the remaining  balances  which  will  reasonably
19    allow  the  former  customer  to  make  the  payments  on the
20    remainder of the deposit  and  the  past  due  balance  while
21    paying  current  bills  during  the  winter  heating  season.
22    However,   the   utility  is  not  obliged  to  make  payment
23    arrangements extending beyond the  following  November.   The
24    utility shall allow the former customer a minimum of 4 months
25    in which to retire the past due balance and 3 months in which
26    to  pay  the  remainder  of the deposit.  The former customer
27    shall also be informed that payment on the amounts  past  due
28    and  the deposit, if any, plus the current bills must be paid
29    by the due date or  the  customer  may  face  termination  of
30    service pursuant to this Section and Section 8-206.
31        The   Commission   shall  develop  rules  to  govern  the
32    reconnection  of  a  former  customer  who   demonstrates   a
33    financial  inability  to  meet  the requirement of 1/3 of the
34    amount past due and 1/3  of  any  deposit  requested  by  the
 
SB2235 Engrossed            -22-              LRB9215298WHcsA
 1    utility.    The Commission's rules shall establish a means by
 2    which  the  former  customer's   utility   service   may   be
 3    reconnected  through  the  payment of a reasonable amount and
 4    upon entering  into a deferred payment agreement.
 5        Any payment agreement made shall be in  writing,  with  a
 6    copy  provided to the former customer.  The renegotiation and
 7    reinstatement of a customer and the establishment of a budget
 8    payment plan shall be pursuant to rules  established  by  the
 9    Commission.
10        Not  later  than September 15 of each year, every gas and
11    electric  utility  shall  conduct  a  survey  of  all  former
12    residential customers whose gas or electric service was  used
13    to  provide or control the primary source of space heating in
14    the dwelling and whose gas or electric service was terminated
15    for nonpayment of a bill or deposit from December  1  of  the
16    previous  year to September 15 of that year and where service
17    at that premises  has  not  been  restored.  Not  later  than
18    October 1 of each year the utility shall notify each of these
19    former  customers  that  the  gas or electric service will be
20    restored by the company for the coming heating season if  the
21    former  customer  contacts the utility and makes arrangements
22    with the  utility  for  reconnection  of  service  under  the
23    conditions  set forth in this Section. A utility shall notify
24    the former customer or an adult member of  the  household  by
25    personal  visit,  telephone contact or mailing of a letter by
26    first class mail to the last known  address  of  that  former
27    customer.    The  utility  shall  keep  records  which  would
28    indicate the date, form and the results of such contact.
29        Each gas and electric utility which has former  customers
30    affected   by  this  Section  shall  file  reports  with  the
31    Commission providing such information as the  Commission  may
32    deem  appropriate.  The  Commission shall notify each gas and
33    electric utility prior to August 1 of  each  year  concerning
34    the  information  which  is  to be included in the report for
 
SB2235 Engrossed            -23-              LRB9215298WHcsA
 1    that year.
 2        In no event shall any  actions  taken  by  a  utility  in
 3    compliance  with this Section be deemed to abrogate or in any
 4    way interfere with the utility's rights to pursue the  normal
 5    collection processes otherwise available to it.
 6        The  Commission  shall promulgate rules to implement this
 7    Section.
 8    (Source: P.A. 86-782; 87-469.)

 9        (220 ILCS 5/16-108)
10        Sec.  16-108.  Recovery  of  costs  associated  with  the
11    provision of delivery services.
12        (a)  An electric utility shall file a  delivery  services
13    tariff  with  the  Commission  at least 210 days prior to the
14    date that it is required  to  begin  offering  such  services
15    pursuant  to this Act.  An electric utility shall provide the
16    components of delivery  services  that  are  subject  to  the
17    jurisdiction  of  the Federal Energy Regulatory Commission at
18    the same prices,  terms  and  conditions  set  forth  in  its
19    applicable  tariff as approved or allowed into effect by that
20    Commission. The Commission shall otherwise have the authority
21    pursuant to Article IX to review,  approve,  and  modify  the
22    prices,  terms and conditions of those components of delivery
23    services not subject  to  the  jurisdiction  of  the  Federal
24    Energy  Regulatory  Commission,  including  the  authority to
25    determine the extent to which such delivery  services  should
26    be  offered  on  an  unbundled  basis.   In  making  any such
27    determination the Commission shall consider,  at  a  minimum,
28    the  effect  of additional unbundling on (i) the objective of
29    just and reasonable rates, (ii) electric  utility  employees,
30    and (iii) the development of competitive markets for electric
31    energy services in Illinois.
32        (b)  The  Commission  shall  enter an order approving, or
33    approving as modified, the delivery services tariff no  later
 
SB2235 Engrossed            -24-              LRB9215298WHcsA
 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
 
SB2235 Engrossed            -25-              LRB9215298WHcsA
 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    but  shall  not  implement  transition  charges for power and
 
SB2235 Engrossed            -26-              LRB9215298WHcsA
 1    energy that a retail  customer  takes  from  cogeneration  or
 2    self-generation  facilities located on that retail customer's
 3    premises, if such facilities meet the following criteria:
 4             (i)  the cogeneration or self-generation  facilities
 5        serve  a  single  retail customer and are located on that
 6        retail  customer's  premises  (for   purposes   of   this
 7        subparagraph  and  subparagraph  (ii),  an  industrial or
 8        manufacturing  retail  customer   and   a   third   party
 9        contractor   that   is   served  by  such  industrial  or
10        manufacturing customer through such retail customer's own
11        electrical    distribution    facilities    under     the
12        circumstances   described   in  subsection  (vi)  of  the
13        definition of "alternative retail electric supplier"  set
14        forth  in  Section  16-102,  shall be considered a single
15        retail customer);
16             (ii)  the cogeneration or self-generation facilities
17        either (A)  are  sized  pursuant  to  generally  accepted
18        engineering   standards   for   the   retail   customer's
19        electrical  load  at  that  premises (taking into account
20        standby or other reliability  considerations  related  to
21        that retail customer's operations at that site) or (B) if
22        the  facility  is  a cogeneration facility located on the
23        retail customer's premises, the retail  customer  is  the
24        thermal  host for that facility and the facility has been
25        designed to meet that retail  customer's  thermal  energy
26        requirements  resulting  in electrical output beyond that
27        retail customer's electrical  demand  at  that  premises,
28        comply   with  the  operating  and  efficiency  standards
29        applicable to "qualifying facilities" specified in  title
30        18  Code  of  Federal  Regulations  Section 292.205 as in
31        effect on the effective date of this  amendatory  Act  of
32        1999;
33             (iii)  the  retail  customer  on  whose premises the
34        facilities are located either has an exclusive  right  to
 
SB2235 Engrossed            -27-              LRB9215298WHcsA
 1        receive,  and corresponding obligation to pay for, all of
 2        the electrical capacity of the facility, or in  the  case
 3        of a cogeneration facility that has been designed to meet
 4        the retail customer's thermal energy requirements at that
 5        premises, an identified amount of the electrical capacity
 6        of the facility, over a minimum 5-year period; and
 7             (iv)  if  the cogeneration facility is sized for the
 8        retail customer's  thermal  load  at  that  premises  but
 9        exceeds the electrical load, any sales of excess power or
10        energy  are  made  only  at wholesale, are subject to the
11        jurisdiction of the Federal Energy Regulatory Commission,
12        and  are  not  for  the  purpose  of  circumventing   the
13        provisions of this subsection (f).
14    If  a  generation  facility  located  at  a retail customer's
15    premises does  not  meet  the  above  criteria,  an  electric
16    utility  implementing  transition  charges  shall implement a
17    transition charge until December 31, 2006 for any  power  and
18    energy taken by such retail customer from such facility as if
19    such  power  and  energy  had  been delivered by the electric
20    utility.   Provided,  however,  that  an  industrial   retail
21    customer that is taking power from a generation facility that
22    does  not meet the above criteria but that is located on such
23    customer's premises will  not  be  subject  to  a  transition
24    charge for the power and energy taken by such retail customer
25    from  such generation facility if the facility does not serve
26    any other retail customer and either was installed on  behalf
27    of the customer and for its own use prior to January 1, 1997,
28    or  is  both  predominantly  fueled  by  byproducts  of  such
29    customer's  manufacturing  process at such premises and sells
30    or offers an average of 300 megawatts or more of  electricity
31    produced  from  such  generation  facility into the wholesale
32    market. Such charges  shall  be  calculated  as  provided  in
33    Section  16-102, and shall be collected on each kilowatt-hour
34    delivered under  a  delivery  services  tariff  to  a  retail
 
SB2235 Engrossed            -28-              LRB9215298WHcsA
 1    customer  from  the  date  the  customer first takes delivery
 2    services until  December  31,  2006  except  as  provided  in
 3    subsection  (h)  of  this Section. Provided, however, that an
 4    electric utility, other than an  electric  utility  providing
 5    service  to  at  least  1,000,000  customers in this State on
 6    January 1, 1999, 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
 
SB2235 Engrossed            -29-              LRB9215298WHcsA
 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
 
SB2235 Engrossed            -30-              LRB9215298WHcsA
 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
 
SB2235 Engrossed            -31-              LRB9215298WHcsA
 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; 91-50, eff. 6-30-99.)

15        (220 ILCS 5/16-111)
16        Sec. 16-111. Rates and restructuring transactions  during
17    mandatory transition period.
18        (a)  During     the    mandatory    transition    period,
19    notwithstanding any provision of Article IX of this Act,  and
20    except  as  provided in subsections (b), (d), (e), and (f) of
21    this  Section,  the  Commission  shall  not   (i)   initiate,
22    authorize  or order any change by way of increase (other than
23    in connection with a request  for  rate  increase  which  was
24    filed  after September 1, 1997 but prior to October 15, 1997,
25    by an electric utility serving less than 12,500 customers  in
26    this  State),  (ii)  initiate  or,  unless  requested  by the
27    electric utility, authorize or order any  change  by  way  of
28    decrease,  restructuring or unbundling (except as provided in
29    Section 16-109A), in the rates of any electric  utility  that
30    were  in  effect  on  October  1, 1996, or (iii) in any order
31    approving any application for a merger  pursuant  to  Section
32    7-204  that  was  pending  as  of  May  16,  1997, impose any
33    condition requiring any filing for an increase, decrease,  or
 
SB2235 Engrossed            -32-              LRB9215298WHcsA
 1    change in, or other review of, an electric utility's rates or
 2    enforce  any  such  condition  of  any  such order; provided,
 3    however,  that  this  subsection  shall  not   prohibit   the
 4    Commission from:
 5             (1)  approving   the   application  of  an  electric
 6        utility to implement an alternative  to  rate  of  return
 7        regulation  or  a  regulatory  mechanism  that rewards or
 8        penalizes the  electric  utility  through  adjustment  of
 9        rates  based  on utility performance, pursuant to Section
10        9-244;
11             (2)  authorizing an electric  utility  to  eliminate
12        its  fuel  adjustment  clause  and  adjust  its base rate
13        tariffs in accordance with subsection (b), (d), or (f) of
14        Section 9-220 of this Act, to  fix  its  fuel  adjustment
15        factor in accordance with subsection (c) of Section 9-220
16        of  this  Act, or to eliminate its fuel adjustment clause
17        in accordance with subsection (e)  of  Section  9-220  of
18        this Act;
19             (3)  ordering   into  effect  tariffs  for  delivery
20        services  and  transition  charges  in  accordance   with
21        Sections  16-104  and  16-108,  for  real-time pricing in
22        accordance with Section 16-107, or the  options  required
23        by Section 16-110 and subsection  (n) of 16-112, allowing
24        a  billing  experiment in accordance with Section 16-106,
25        or modifying delivery services tariffs in accordance with
26        Section 16-109; or
27             (4)  ordering or allowing into effect any tariff  to
28        recover  charges  pursuant  to Sections 9-201.5, 9-220.1,
29        9-221, 9-222 (except as  provided  in  Section  9-222.1),
30        16-108,  and  16-114  of  this  Act,  Section  5-5 of the
31        Electricity Infrastructure Maintenance Fee  Law,  Section
32        6-5  of the Renewable Energy, Energy Efficiency, and Coal
33        Resources Development Law of 1997, and Section 13 of  the
34        Energy Assistance Act of 1989.
 
SB2235 Engrossed            -33-              LRB9215298WHcsA
 1        (b)  Notwithstanding  the  provisions  of subsection (a),
 2    each Illinois  electric  utility  serving  more  than  12,500
 3    customers  in  Illinois  shall  file  tariffs  (i)  reducing,
 4    effective August 1, 1998, each component of its base rates to
 5    residential  retail  customers  by 15% from the base rates in
 6    effect immediately prior to January 1, 1998 and (ii)  if  the
 7    public  utility  provides  electric  service to (A) more than
 8    500,000 customers but less than 1,000,000 customers  in  this
 9    State  on  January  1, 1999, reducing, effective May 1, 2002,
10    each component  of  its  base  rates  to  residential  retail
11    customers  by  an additional 5% from the base rates in effect
12    immediately prior  to  January  1,  1998,  or  (B)  at  least
13    1,000,000  customers  in  this  State  on  January  1,  1999,
14    reducing,  effective  October  1, 2001, each component of its
15    base rates to residential retail customers by  an  additional
16    5% from the base rates in effect immediately prior to January
17    1, 1998. Provided, however, that (A) if an electric utility's
18    average  residential retail rate is less than or equal to the
19    average residential  retail  rate  for  a  group  of  Midwest
20    Utilities   (consisting   of   all   investor-owned  electric
21    utilities  with  annual  system  peaks  in  excess  of   1000
22    megawatts in the States of Illinois, Indiana, Iowa, Kentucky,
23    Michigan,  Missouri,  Ohio,  and  Wisconsin),  based  on data
24    reported  on  Form  1  to  the  Federal   Energy   Regulatory
25    Commission  for  calendar  year  1995,  then it shall only be
26    required to file tariffs (i) reducing,  effective  August  1,
27    1998,  each component of its base rates to residential retail
28    customers by 5% from the base  rates  in  effect  immediately
29    prior to January 1, 1998, (ii) reducing, effective October 1,
30    2000,  each component of its base rates to residential retail
31    customers by the lesser of 5% of the  base  rates  in  effect
32    immediately  prior  to  January  1, 1998 or the percentage by
33    which the electric utility's average residential retail  rate
34    exceeds  the  average  residential retail rate of the Midwest
 
SB2235 Engrossed            -34-              LRB9215298WHcsA
 1    Utilities, based on data reported on Form 1  to  the  Federal
 2    Energy  Regulatory  Commission  for  calendar  year 1999, and
 3    (iii) reducing, effective October 1, 2002, each component  of
 4    its   base  rates  to  residential  retail  customers  by  an
 5    additional amount equal to the lesser of 5% of the base rates
 6    in effect  immediately  prior  to  January  1,  1998  or  the
 7    percentage   by   which   the   electric   utility's  average
 8    residential  retail  rate  exceeds  the  average  residential
 9    retail rate of the Midwest Utilities, based on data  reported
10    on  Form  1  to  the Federal Energy Regulatory Commission for
11    calendar year 2001; and (B) if the average residential retail
12    rate of an  electric  utility  serving  between  150,000  and
13    250,000  retail customers in this State on January 1, 1995 is
14    less than or equal to 90% of the average  residential  retail
15    rate  for  the  Midwest  Utilities, based on data reported on
16    Form 1  to  the  Federal  Energy  Regulatory  Commission  for
17    calendar  year  1995,  then it shall only be required to file
18    tariffs  (i)  reducing,  effective  August  1,   1998,   each
19    component  of  its base rates to residential retail customers
20    by 2% from the base rates  in  effect  immediately  prior  to
21    January  1,  1998;  (ii) reducing, effective October 1, 2000,
22    each component  of  its  base  rates  to  residential  retail
23    customers  by  2%  from  the  base rate in effect immediately
24    prior to January  1,  1998;  and  (iii)  reducing,  effective
25    October  1,  2002,  each  component  of  its  base  rates  to
26    residential  retail  customers  by  1% from the base rates in
27    effect  immediately  prior  to  January  1,  1998.  Provided,
28    further, that any electric utility for which  a  decrease  in
29    base  rates has been or is placed into effect between October
30    1, 1996 and the dates specified in the preceding sentences of
31    this subsection, other than pursuant to the  requirements  of
32    this  subsection,  shall  be entitled to reduce the amount of
33    any reduction or reductions in its  base  rates  required  by
34    this  subsection  by  the  amount of such other decrease. The
 
SB2235 Engrossed            -35-              LRB9215298WHcsA
 1    tariffs required under this subsection shall be filed 45 days
 2    in advance of the effective date. Notwithstanding anything to
 3    the contrary in Section 9-220 of this Act, no restatement  of
 4    base  rates  in  conjunction  with  the elimination of a fuel
 5    adjustment clause under that Section shall result in a lesser
 6    decrease in base rates than customers would otherwise receive
 7    under  this  subsection  had  the  electric  utility's   fuel
 8    adjustment clause not been eliminated.
 9        (c)  Any utility reducing its base rates by 15% on August
10    1,   1998  pursuant  to  subsection  (b)  shall  include  the
11    following statement on its bills  for  residential  customers
12    from August 1 through December 31, 1998: "Effective August 1,
13    1998,  your  rates  have  been reduced by 15% by the Electric
14    Service Customer Choice and Rate Relief Law of 1997 passed by
15    the Illinois General Assembly.".  Any  utility  reducing  its
16    base  rates  by  5% on August 1, 1998, pursuant to subsection
17    (b) shall include the following statement on  its  bills  for
18    residential  customers  from  August  1  through December 31,
19    1998:  "Effective  August  1,  1998,  your  rates  have  been
20    reduced  by  5%  by  the Electric Service Customer Choice and
21    Rate Relief Law  of  1997  passed  by  the  Illinois  General
22    Assembly.".
23        Any  utility  reducing  its base rates by 2% on August 1,
24    1998 pursuant to subsection (b) shall include  the  following
25    statement  on its bills for residential customers from August
26    1 through December 31, 1998: "Effective August 1, 1998,  your
27    rates  have  been  reduced  by  2%  by  the  Electric Service
28    Customer Choice and Rate Relief Law of  1997  passed  by  the
29    Illinois General Assembly.".
30        (d)  During  the  mandatory  transition  period,  but not
31    before January 1, 2000, and notwithstanding   the  provisions
32    of  subsection  (a),  an  electric  utility  may  request  an
33    increase   in   its   base  rates  if  the  electric  utility
34    demonstrates that the 2-year average of its  earned  rate  of
 
SB2235 Engrossed            -36-              LRB9215298WHcsA
 1    return  on  common  equity,  calculated  as  its  net  income
 2    applicable  to  common  stock  divided  by the average of its
 3    beginning and ending balances of  common  equity  using  data
 4    reported  in  the  electric  utility's  Form  1 report to the
 5    Federal Energy Regulatory Commission but adjusted  to  remove
 6    the  effects  of  accelerated depreciation or amortization or
 7    other transition or mitigation measures  implemented  by  the
 8    electric  utility  pursuant to subsection (g) of this Section
 9    and the effect of any refund paid pursuant to subsection  (e)
10    of  this  Section, is below the 2-year average for the same 2
11    years of the monthly average yields of 30-year  U.S. Treasury
12    bonds published by the Board of Governors  of  the    Federal
13    Reserve  System  in  its  weekly  H.15 Statistical Release or
14    successor  publication.  The  Commission  shall  review   the
15    electric  utility's  request, and may review the justness and
16    reasonableness  of  all  rates  for  tariffed  services,   in
17    accordance  with  the  provisions  of Article IX of this Act,
18    provided that the Commission shall consider  any  special  or
19    negotiated  adjustments  to the revenue requirement agreed to
20    between the electric utility and the  other  parties  to  the
21    proceeding.    In  setting  rates  under  this  Section,  the
22    Commission shall exclude the  costs  and  revenues  that  are
23    associated  with  competitive  services  and  any  billing or
24    pricing experiments conducted under Section 16-106.
25        (e)  For  the  purposes  of  this  subsection   (e)   all
26    calculations  and  comparisons  shall  be  performed  for the
27    Illinois operations of multijurisdictional utilities.  During
28    the  mandatory   transition   period,   notwithstanding   the
29    provisions  of  subsection  (a),  if the 2-year average of an
30    electric utility's earned rate of return  on  common  equity,
31    calculated  as  its  net  income  applicable  to common stock
32    divided by the average of its beginning and  ending  balances
33    of   common  equity  using  data  reported  in  the  electric
34    utility's Form 1 report  to  the  Federal  Energy  Regulatory
 
SB2235 Engrossed            -37-              LRB9215298WHcsA
 1    Commission  but  adjusted  to remove the effect of any refund
 2    paid under this  subsection  (e),  and  further  adjusted  to
 3    include the annual amortization of any difference between the
 4    consideration  received  by  an  affiliated  interest  of the
 5    electric utility in the sale of an asset which had been  sold
 6    or  transferred  by  the  electric  utility to the affiliated
 7    interest subsequent to the effective date of this  amendatory
 8    Act  of  1997  and the consideration for which such asset had
 9    been sold or transferred to  the  affiliated  interest,  with
10    such  difference to be amortized ratably from the date of the
11    sale by the affiliated interest to December 31, 2006, exceeds
12    the 2-year average of the Index for the same 2 years  by  1.5
13    or  more  percentage  points, the electric utility shall make
14    refunds to customers beginning the first billing day of April
15    in the following year in the manner  described  in  paragraph
16    (3)  of this subsection. For purposes of this subsection (e),
17    the "Index" shall be the sum of (A) the average  for  the  12
18    months  ended  September  30 of the monthly average yields of
19    30-year  U.S.  Treasury  bonds  published  by  the  Board  of
20    Governors of the Federal Reserve System in  its  weekly  H.15
21    Statistical  Release  or  successor publication for each year
22    1998 through 2004, and (B) (i)  4.00  percentage  points  for
23    each  of  the  12-month  periods  ending  September  30, 1998
24    through September 30, 1999 or 8.00 percentage points  if  the
25    electric  utility's  average  residential retail rate is less
26    than or equal to 90% of the average residential  retail  rate
27    for  the  "Midwest  Utilities",  as  that  term is defined in
28    subsection (b) of this Section, based  on  data  reported  on
29    Form  1  to  the  Federal  Energy  Regulatory  Commission for
30    calendar year 1995, and the electric utility  served  between
31    150,000 and 250,000 retail customers on January 1, 1995, (ii)
32    7.00  percentage  points  for  each  of  the 12-month periods
33    ending September 30, 2000 through September 30, 2004  if  the
34    electric  utility was providing service to at least 1,000,000
 
SB2235 Engrossed            -38-              LRB9215298WHcsA
 1    customers  in  this  State  on  January  1,  1999,  or   9.00
 2    percentage   points   if   the   electric  utility's  average
 3    residential retail rate is less than or equal to 90%  of  the
 4    average  residential retail rate for the "Midwest Utilities",
 5    as that term is defined in subsection (b)  of  this  Section,
 6    based  on  data  reported  on  Form  1  to the Federal Energy
 7    Regulatory Commission for calendar year 1995 and the electric
 8    utility served between 150,000 and 250,000  retail  customers
 9    in  this  State  on  January  1, 1995, (iii) 11.00 percentage
10    points for each of the 12-month periods ending September  30,
11    2000  through  September  30,  2004, but only if the electric
12    utility's average residential retail rate  is  less  than  or
13    equal  to  90% of the average residential retail rate for the
14    "Midwest Utilities", as that term is  defined  in  subsection
15    (b)  of this Section, based on data reported on Form 1 to the
16    Federal Energy Regulatory Commission for calendar year  1995,
17    the  electric  utility  served  between  150,000  and 250,000
18    retail customers in this State on January 1,  1995,  and  the
19    electric  utility  offers delivery services on or before June
20    1, 2000 to retail customers whose annual electric energy  use
21    comprises  33%  of  the  kilowatt hour sales to that group of
22    retail customers that are classified under Division D, Groups
23    20 through 39 of the Standard Industrial Classifications  set
24    forth   in  the  Standard  Industrial  Classification  Manual
25    published by the  United  States  Office  of  Management  and
26    Budget,  excluding the kilowatt hour sales to those customers
27    that are eligible for delivery services pursuant  to  Section
28    16-104(a)(1)(i),   and   offers   delivery  services  to  its
29    remaining  retail  customers  classified  under  Division  D,
30    Groups 20 through 39 on  or  before  October  1,  2000,  and,
31    provided  further,  that  the electric utility commits not to
32    petition pursuant to Section 16-108(f) for entry of an  order
33    by   the  Commission  authorizing  the  electric  utility  to
34    implement transition charges for an additional  period  after
 
SB2235 Engrossed            -39-              LRB9215298WHcsA
 1    December 31, 2006, or (iv) 5.00 percentage points for each of
 2    the  12-month  periods  ending  September  30,  2000  through
 3    September  30,  2004 for all other electric utilities or 7.00
 4    percentage points for such utilities for each of the 12-month
 5    periods ending September 30, 2000 through September 30,  2004
 6    for any such utility that commits not to petition pursuant to
 7    Section  16-108(f)  for  entry  of an order by the Commission
 8    authorizing the  electric  utility  to  implement  transition
 9    charges for an additional period after December 31, 2006.
10             (1)  For  purposes  of  this subsection (e), "excess
11        earnings" means the difference  between  (A)  the  2-year
12        average  of  the electric utility's earned rate of return
13        on common equity, less (B) the 2-year average of the  sum
14        of  (i)  the  Index applicable to each of the 2 years and
15        (ii)  1.5  percentage  points;  provided,  that   "excess
16        earnings" shall never be less than zero.
17             (2)  On or before March 31 of each year 2000 through
18        2005  each  electric utility shall file a report with the
19        Commission showing its earned rate of  return  on  common
20        equity,  calculated  in  accordance with this subsection,
21        for the preceding calendar year and the average  for  the
22        preceding 2 calendar years.
23             (3)  If  an  electric  utility  has excess earnings,
24        determined in accordance with paragraphs (1) and  (2)  of
25        this  subsection,  the refunds which the electric utility
26        shall pay  to its customers beginning the  first  billing
27        day  of  April  in the following year shall be calculated
28        and applied as follows:
29                  (i)  The  electric  utility's  excess  earnings
30             shall be multiplied by the average of the  beginning
31             and ending balances of the electric utility's common
32             equity   for  the  2-year  period  in  which  excess
33             earnings occurred.
34                  (ii)  The result  of  the  calculation  in  (i)
 
SB2235 Engrossed            -40-              LRB9215298WHcsA
 1             shall  be  multiplied  by 0.50 and then divided by a
 2             number equal  to  1  minus  the  electric  utility's
 3             composite federal and State income tax rate.
 4                  (iii)  The  result  of  the calculation in (ii)
 5             shall  be  divided  by  the  sum  of  the   electric
 6             utility's  projected  total  kilowatt-hour  sales to
 7             retail customers plus projected kilowatt-hours to be
 8             delivered to delivery services customers over a  one
 9             year period beginning with the first billing date in
10             April  in  the  succeeding year to determine a cents
11             per kilowatt-hour refund factor.
12                  (iv)  The cents per kilowatt-hour refund factor
13             calculated  in  (iii)  shall  be  credited  to   the
14             electric  utility's customers by applying the factor
15             on   the   customer's   monthly   bills   to    each
16             kilowatt-hour  sold  or  delivered  until  the total
17             amount  calculated  in  (ii)  has   been   paid   to
18             customers.
19        (f)  During  the mandatory transition period, an electric
20    utility may file revised tariffs reducing the  price  of  any
21    tariffed  service  offered  by  the  electric utility for all
22    customers  taking  that  tariffed  service,  which  shall  be
23    effective 7 days after filing.
24        (g)  During the mandatory transition period, an  electric
25    utility may, without obtaining any approval of the Commission
26    other   than   that  provided  for  in  this  subsection  and
27    notwithstanding any other provision of this Act or  any  rule
28    or  regulation  of  the  Commission  that  would require such
29    approval:
30             (1)  implement a reorganization, other than a merger
31        of 2 or more public utilities as defined in Section 3-105
32        or their holding companies;
33             (2)  retire generating plants from service;
34             (3)  sell,  assign,  lease  or  otherwise   transfer
 
SB2235 Engrossed            -41-              LRB9215298WHcsA
 1        assets  to  an  affiliated  or unaffiliated entity and as
 2        part of such transaction enter into  service  agreements,
 3        power  purchase  agreements, or other agreements with the
 4        transferee; provided, however, that the prices, terms and
 5        conditions  of  any  power  purchase  agreement  must  be
 6        approved or allowed into effect  by  the  Federal  Energy
 7        Regulatory Commission; or
 8             (4)  use   any   accelerated  cost  recovery  method
 9        including    accelerated    depreciation,     accelerated
10        amortization or other capital recovery methods, or record
11        reductions to the original cost of its assets.
12        In order to implement a reorganization, retire generating
13    plants  from  service,  or  sell,  assign, lease or otherwise
14    transfer  assets  pursuant  to  this  Section,  the  electric
15    utility shall comply with subsections (c) and (d) of  Section
16    16-128, if applicable, and subsection (k) of this Section, if
17    applicable,  and provide the Commission with at least 30 days
18    notice of the proposed reorganization or  transaction,  which
19    notice shall include the following information:
20                  (i)  a  complete  statement of the entries that
21             the electric utility will  make  on  its  books  and
22             records   of   account  to  implement  the  proposed
23             reorganization  or  transaction  together   with   a
24             certification  from  an independent certified public
25             accountant that such  entries  are  in  accord  with
26             generally accepted accounting principles and, if the
27             Commission  has  previously  approved guidelines for
28             cost  allocations  between  the  utility   and   its
29             affiliates,   a   certification   from   the   chief
30             accounting  officer of the utility that such entries
31             are in accord with those cost allocation guidelines;
32                  (ii)  a description of how the electric utility
33             will use proceeds of any sale, assignment, lease  or
34             transfer  to  retire  debt  or  otherwise  reduce or
 
SB2235 Engrossed            -42-              LRB9215298WHcsA
 1             recover the  costs  of  services  provided  by  such
 2             electric utility;
 3                  (iii)  a  list  of  all  federal  approvals  or
 4             approvals  required from departments and agencies of
 5             this State, other  than  the  Commission,  that  the
 6             electric   utility   has   or   will  obtain  before
 7             implementing the reorganization or transaction;
 8                  (iv)  an irrevocable commitment by the electric
 9             utility that  it  will  not,  as  a  result  of  the
10             transaction,  impose  any stranded cost charges that
11             it might  otherwise  be  allowed  to  charge  retail
12             customers   under   federal   law  or  increase  the
13             transition charges that it is otherwise entitled  to
14             collect under this Article XVI; and
15                  (v)  if  the electric utility proposes to sell,
16             assign, lease or  otherwise  transfer  a  generating
17             plant  that  brings  the  amount  of  net dependable
18             generating capacity  transferred  pursuant  to  this
19             subsection to an amount equal to or greater than 15%
20             of the electric utility's net dependable capacity as
21             of  the  effective  date  of  this amendatory Act of
22             1997, and enters into  a  power  purchase  agreement
23             with  the  entity  to which such generating plant is
24             sold, assigned, leased,  or  otherwise  transferred,
25             the  electric  utility  also  agrees,  if   its fuel
26             adjustment clause has not already  been  eliminated,
27             to   eliminate   its   fuel   adjustment  clause  in
28             accordance with subsection (b) of Section 9-220  for
29             a  period  of  time  equal to the length of any such
30             power purchase agreement or successor agreement,  or
31             until  January  1, 2005, whichever is longer; if the
32             capacity of the generating plant so transferred  and
33             related  power purchase agreement does not result in
34             the elimination of the fuel adjustment clause  under
 
SB2235 Engrossed            -43-              LRB9215298WHcsA
 1             this  subsection, and the fuel adjustment clause has
 2             not already been eliminated,  the  electric  utility
 3             shall  agree  that  the  costs  associated  with the
 4             transferred  plant  that   are   included   in   the
 5             calculation  of  the  rate  per  kilowatt-hour to be
 6             applied pursuant  to  the  electric  utility's  fuel
 7             adjustment  clause  during  such  period  shall  not
 8             exceed  the  per  kilowatt-hour cost associated with
 9             such  generating  plant  included  in  the  electric
10             utility's fuel adjustment  clause  during  the  full
11             calendar  year  preceding  the  transfer,  with such
12             limit to be  adjusted each year  thereafter  by  the
13             Gross Domestic Product Implicit Price Deflator.
14                  (vi)  In  addition,  if  the  electric  utility
15             proposes  to  sell, assign, or lease, (A) either (1)
16             an amount of generating plant that brings the amount
17             of net dependable  generating  capacity  transferred
18             pursuant to this subsection to an amount equal to or
19             greater  than  15% of its net dependable capacity on
20             the effective date of this amendatory Act  of  1997,
21             or  (2)  one  or more generating plants with a total
22             net dependable capacity of 1100  megawatts,  or  (B)
23             transmission and distribution facilities that either
24             (1)   bring   the   amount   of   transmission   and
25             distribution facilities transferred pursuant to this
26             subsection to an amount equal to or greater than 15%
27             of the electric utility's total depreciated original
28             cost investment in such facilities, or (2) represent
29             an  investment  of  $25,000,000  in  terms  of total
30             depreciated  original  cost,  the  electric  utility
31             shall provide, in addition to the information listed
32             in subparagraphs  (i)  through  (v),  the  following
33             information:  (A)  a description of how the electric
34             utility will meet its service obligations under this
 
SB2235 Engrossed            -44-              LRB9215298WHcsA
 1             Act in a  safe  and  reliable  manner  and  (B)  the
 2             electric  utility's  projected earned rate of return
 3             on common  equity,  calculated  in  accordance  with
 4             subsection  (d)  of this Section, for each year from
 5             the date of the notice  through  December  31,  2004
 6             both  with and without the proposed transaction.  If
 7             the Commission has not issued an order initiating  a
 8             hearing  on  the proposed transaction within 30 days
 9             after the date  the  electric  utility's  notice  is
10             filed,  the  transaction  shall  be deemed approved.
11             The  Commission  may,  after  notice  and   hearing,
12             prohibit the proposed transaction if it makes either
13             or  both  of  the  following  findings: (1) that the
14             proposed  transaction  will  render   the   electric
15             utility unable to provide its tariffed services in a
16             safe  and  reliable  manner,  or (2) that there is a
17             strong likelihood that consummation of the  proposed
18             transaction  will  result  in  the  electric utility
19             being entitled to request an increase  in  its  base
20             rates   during   the   mandatory  transition  period
21             pursuant to subsection (d)  of  this  Section.   Any
22             hearing   initiated   by  the  Commission  into  the
23             proposed transaction shall  be  completed,  and  the
24             Commission's  final  order  approving or prohibiting
25             the proposed transaction shall be entered, within 90
26             days after the date the  electric  utility's  notice
27             was   filed.   Provided,   however,   that  a  sale,
28             assignment, or lease of transmission  facilities  to
29             an   independent  system  operator  that  meets  the
30             requirements of Section 16-126 shall not be  subject
31             to Commission approval under this Section.
32                  In  any  proceeding conducted by the Commission
33             pursuant to  this  subparagraph  (vi),  intervention
34             shall  be  limited to parties with a direct interest
 
SB2235 Engrossed            -45-              LRB9215298WHcsA
 1             in the transaction  which  is  the  subject  of  the
 2             hearing and any statutory consumer protection agency
 3             as  defined  in  subsection  (d) of Section 9-102.1.
 4             Notwithstanding the provisions of Section 10-113  of
 5             this  Act,  any  application seeking rehearing of an
 6             order issued under this subparagraph  (vi),  whether
 7             filed  by  the electric utility or by an intervening
 8             party, shall be filed within 10 days  after  service
 9             of the order.
10        The  Commission shall not in any subsequent proceeding or
11    otherwise, review such a reorganization or other  transaction
12    authorized by this Section, but shall retain the authority to
13    allocate  costs  as stated in Section 16-111(i). An entity to
14    which an electric utility sells, assigns, leases or transfers
15    assets pursuant to this subsection (g) shall not, as a result
16    of the transactions specified  in  this  subsection  (g),  be
17    deemed a public utility as defined in Section 3-105.  Nothing
18    in this subsection (g) shall change any requirement under the
19    jurisdiction  of  the  Illinois  Department of Nuclear Safety
20    including, but not limited to, the payment of  fees.  Nothing
21    in  this subsection (g) shall exempt a utility from obtaining
22    a certificate pursuant to Section 8-406 of this Act  for  the
23    construction  of a new electric generating facility.  Nothing
24    in this subsection (g) is intended to exempt the transactions
25    hereunder  from  the  operation  of  the  federal  or   State
26    antitrust  laws. Nothing in this subsection (g) shall require
27    an electric utility to use the procedures specified  in  this
28    subsection for any of the transactions specified herein.  Any
29    other procedure available under this Act may, at the electric
30    utility's election, be used for any such transaction.
31        (h)  During   the   mandatory   transition   period,  the
32    Commission  shall  not  establish  or  use   any   rates   of
33    depreciation,  which  for  purposes  of this subsection shall
34    include amortization, for any  electric  utility  other  than
 
SB2235 Engrossed            -46-              LRB9215298WHcsA
 1    those established pursuant to subsection (c) of Section 5-104
 2    of  this  Act  or utilized pursuant to subsection (g) of this
 3    Section.  Provided, however, that in any proceeding to review
 4    an electric utility's rates for tariffed services pursuant to
 5    Section 9-201, 9-202, 9-250 or 16-111(d)  of  this  Act,  the
 6    Commission  may  establish  new rates of depreciation for the
 7    electric utility in the same manner  provided  in  subsection
 8    (d)  of  Section  5-104  of  this  Act.  An  electric utility
 9    implementing an accelerated cost  recovery  method  including
10    accelerated  depreciation,  accelerated amortization or other
11    capital recovery methods,  or  recording  reductions  to  the
12    original  cost  of  its assets, pursuant to subsection (g) of
13    this Section, shall file  a  statement  with  the  Commission
14    describing   the  accelerated  cost  recovery  method  to  be
15    implemented or the reduction in  the  original  cost  of  its
16    assets  to  be  recorded.  Upon the filing of such statement,
17    the accelerated cost recovery method or the reduction in  the
18    original cost of assets shall be deemed to be approved by the
19    Commission  as  though  an  order  had  been  entered  by the
20    Commission.
21        (i)  Subsequent to the mandatory transition  period,  the
22    Commission,  in any proceeding to establish rates and charges
23    for tariffed services offered by an electric  utility,  shall
24    consider  only  (1)  the  then current or projected revenues,
25    costs, investments and cost of capital directly or indirectly
26    associated with the provision of such tariffed services;  (2)
27    collection  of transition charges in accordance with Sections
28    16-102 and 16-108 of this Act; (3) recovery of  any  employee
29    transition  costs  as  described  in Section 16-128 which the
30    electric utility is continuing to incur,  including  recovery
31    of  any unamortized portion of such costs previously incurred
32    or committed, with such costs to be equitably allocated among
33    bundled  services,  delivery  services,  and  contracts  with
34    alternative retail electric suppliers; and  (4)  recovery  of
 
SB2235 Engrossed            -47-              LRB9215298WHcsA
 1    the  costs  associated with the electric utility's compliance
 2    with decommissioning  funding  requirements;  and  shall  not
 3    consider  any  other  revenues, costs, investments or cost of
 4    capital of either the electric utility or of any affiliate of
 5    the  electric  utility  that  are  not  associated  with  the
 6    provision  of  tariffed  services.   In  setting  rates   for
 7    tariffed  services,  the  Commission shall equitably allocate
 8    joint and common costs and investments between  the  electric
 9    utility's  competitive and tariffed services.  In determining
10    the justness and reasonableness of  the  electric  power  and
11    energy  component of an electric utility's rates for tariffed
12    services subsequent to the mandatory  transition  period  and
13    prior  to  the time that the provision of such electric power
14    and energy is  declared  competitive,  the  Commission  shall
15    consider  the extent to which the electric utility's tariffed
16    rates for such component for each customer class  exceed  the
17    market  value  determined pursuant to Section 16-112, and, if
18    the electric power and energy component of such tariffed rate
19    exceeds the market value by more than 10%  for  any  customer
20    class, may establish such electric power and energy component
21    at  a  rate  equal  to the market value plus 10%. In any such
22    case, the Commission may also elect to extend the  provisions
23    of  Section  16-111(e)  for  any period in which the electric
24    utility is collecting transition charges,  using  information
25    applicable to such period.
26        (j)  During  the mandatory transition period, an electric
27    utility may elect  to  transfer  to  a  non-operating  income
28    account  under  the  Commission's  Uniform System of Accounts
29    either or both of (i) an amount of unamortized investment tax
30    credit that is in addition to the  ratable  amount  which  is
31    credited  to  the electric utility's operating income account
32    for the year in  accordance  with  Section  46(f)(2)  of  the
33    federal  Internal Revenue Code of 1986, as in effect prior to
34    P.L. 101-508, or (ii) "excess tax reserves", as that term  is
 
SB2235 Engrossed            -48-              LRB9215298WHcsA
 1    defined in Section 203(e)(2)(A) of the federal Tax Reform Act
 2    of  1986,  provided  that  (A) the amount transferred may not
 3    exceed the amount of the electric utility's assets that  were
 4    created   pursuant   to  Statement  of  Financial  Accounting
 5    Standards No. 71 which the electric utility has  written  off
 6    during  the mandatory transition period, and (B) the transfer
 7    shall not be effective until approved by the Internal Revenue
 8    Service.   An  electric  utility  electing  to  make  such  a
 9    transfer shall file a statement with the  Commission  stating
10    the amount and timing of the transfer for which it intends to
11    request  approval of the Internal Revenue Service, along with
12    a copy of  its  proposed  request  to  the  Internal  Revenue
13    Service  for  a  ruling.  The Commission shall issue an order
14    within 14 days after the electric utility's filing approving,
15    subject to receipt of  approval  from  the  Internal  Revenue
16    Service, the proposed transfer.
17        (k)  If an electric utility is selling or transferring to
18    a  single  buyer  5 or more generating plants located in this
19    State with a total net dependable capacity of 5000  megawatts
20    or  more  pursuant  to subsection (g) of this Section and has
21    obtained a sale price or consideration that exceeds  200%  of
22    the  book  value  of  such  plants, the electric utility must
23    provide to  the  Governor,  the  President  of  the  Illinois
24    Senate,  the  Minority  Leader  of  the  Illinois Senate, the
25    Speaker of the Illinois House  of  Representatives,  and  the
26    Minority  Leader  of the Illinois House of Representatives no
27    later than 15 days after filing its notice  under  subsection
28    (g)  of  this  Section or 5 days after the date on which this
29    subsection (k) becomes law, whichever  is  later,  a  written
30    commitment in which such electric utility agrees to expend $2
31    billion outside the corporate limits of any municipality with
32    1,000,000  or more inhabitants within such electric utility's
33    service  area,  over  a  6-year  period  beginning  with  the
34    calendar year in which the  notice  is  filed,  on  projects,
 
SB2235 Engrossed            -49-              LRB9215298WHcsA
 1    programs,  and  improvements within its service area relating
 2    to   transmission   and   distribution   including,   without
 3    limitation, infrastructure expansion, repair and replacement,
 4    capital  investments,   operations   and   maintenance,   and
 5    vegetation management.
 6    (Source:  P.A.  90-561, eff. 12-16-97; 90-563, eff. 12-16-97;
 7    91-50, eff. 6-30-99.)

 8        Section 99.  Effective date.  This Act takes effect  upon
 9    becoming law.
 
SB2235 Engrossed            -50-              LRB9215298WHcsA
 1                                INDEX
 2               Statutes amended in order of appearance
 3    305 ILCS 20/1             from Ch. 111 2/3, par. 1401
 4    305 ILCS 20/2             from Ch. 111 2/3, par. 1402
 5    305 ILCS 20/4             from Ch. 111 2/3, par. 1404
 6    305 ILCS 20/5             from Ch. 111 2/3, par. 1405
 7    305 ILCS 20/6             from Ch. 111 2/3, par. 1406
 8    305 ILCS 20/7             from Ch. 111 2/3, par. 1407
 9    305 ILCS 20/8             from Ch. 111 2/3, par. 1408
10    305 ILCS 20/13
11    305 ILCS 20/7.1 rep.
12    305 ILCS 20/9 rep.
13    305 ILCS 20/12 rep.
14    305 ILCS 20/14 rep.
15    20 ILCS 687/6-5
16    220 ILCS 5/8-207          from Ch. 111 2/3, par. 8-207
17    220 ILCS 5/16-108
18    220 ILCS 5/16-111

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