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Public Act 097-0646 | ||||
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AN ACT concerning public utilities.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 1. Findings. The General Assembly finds that: | ||||
(1) subsection (b-10) of Section 16-108.5 of this | ||||
amendatory Act of the 97th General Assembly provides
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substantial customer assistance programs for low-income | ||||
customers, senior citizens, active
members of the armed | ||||
services and reserved forces, and disabled veterans; | ||||
(2) subsection (b) of Section 16-108.5 of this | ||||
amendatory Act of the 97th General Assembly provides for
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infrastructure improvements designed to reduce outages due | ||||
to storms; | ||||
(3) subsections (f) and (f-5) of Section 16-108.5 of | ||||
this amendatory Act of the 97th General Assembly require | ||||
improvement in a variety of performance metrics and impose | ||||
penalties on the electric utilities for
failure to achieve | ||||
the statutorily set goals;
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(4) Black & Veatch, a global engineering, consulting | ||||
and construction company, performed an independent | ||||
evaluation of Commonwealth Edison Company's Advanced | ||||
Metering Infrastructure ("AMI") pilot program and | ||||
concluded that the cost savings and benefits to ComEd | ||||
customers of full AMI deployment are nearly 3 times greater |
than the cost to deploy AMI, and further that AMI | ||
deployment is estimated to result in a net savings to ComEd
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customers of $2.8 billion over 20 years; and
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(5) this amendatory Act of the 97th General Assembly | ||
confers substantial benefits upon the State's electric
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utility customers. | ||
Section 5. If and only if Senate Bill 1652 of the 97th | ||
General Assembly becomes law, then the Public Utilities Act is | ||
amended by changing Sections 16-107.5, 16-108.5, 16-108.6, | ||
16-108.7, and 16-128 as follows: | ||
(220 ILCS 5/16-107.5)
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Sec. 16-107.5. Net electricity metering. | ||
(a) The Legislature finds and declares that a program to | ||
provide net electricity
metering, as defined in this Section,
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for eligible customers can encourage private investment in | ||
renewable energy
resources, stimulate
economic growth, enhance | ||
the continued diversification of Illinois' energy
resource | ||
mix, and protect
the Illinois environment.
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(b) As used in this Section, (i) "eligible customer" means | ||
a retail
customer that owns or operates a
solar, wind, or other | ||
eligible renewable electrical generating facility with a rated | ||
capacity of not more than
2,000 kilowatts that is
located on | ||
the customer's premises and is intended primarily to offset the | ||
customer's
own electrical requirements; (ii) "electricity |
provider" means an electric utility or alternative retail | ||
electric supplier; (iii) "eligible renewable electrical | ||
generating facility" means a generator powered by solar | ||
electric energy, wind, dedicated crops grown for electricity | ||
generation, agricultural residues, untreated and unadulterated | ||
wood waste, landscape trimmings, livestock manure, anaerobic | ||
digestion of livestock or food processing waste, fuel cells or | ||
microturbines powered by renewable fuels, or hydroelectric | ||
energy; and (iv) "net electricity metering" (or "net metering") | ||
means the
measurement, during the
billing period applicable to | ||
an eligible customer, of the net amount of
electricity supplied | ||
by an
electricity provider to the customer's premises or | ||
provided to the electricity provider by the customer.
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(c) A net metering facility shall be equipped with metering | ||
equipment that can measure the flow of electricity in both | ||
directions at the same rate. | ||
(1) For eligible customers whose electric service has | ||
not been declared competitive pursuant to Section 16-113 of | ||
this Act and whose electric delivery service is provided | ||
and measured on a kilowatt-hour basis and electric supply | ||
service is not provided based on hourly pricing, this shall | ||
typically be accomplished through use of a single, | ||
bi-directional meter. If the eligible customer's existing | ||
electric revenue meter does not meet this requirement, the | ||
electricity provider shall arrange for the local electric | ||
utility or a meter service provider to install and maintain |
a new revenue meter at the electricity provider's expense. | ||
(2) For eligible customers whose electric service has | ||
not been declared competitive pursuant to Section 16-113 of | ||
this Act and whose electric delivery service is provided | ||
and measured on a kilowatt demand basis and electric supply | ||
service is not provided based on hourly pricing, this shall | ||
typically be accomplished through use of a dual channel | ||
meter capable of measuring the flow of electricity both | ||
into and out of the customer's facility at the same rate | ||
and ratio. If such customer's existing electric revenue | ||
meter does not meet this requirement, then the electricity | ||
provider shall arrange for the local electric utility or a | ||
meter service provider to install and maintain a new | ||
revenue meter at the electricity provider's expense. | ||
(3) For all other eligible customers, the electricity | ||
provider may arrange for the local electric utility or a | ||
meter service provider to install and maintain metering | ||
equipment capable of measuring the flow of electricity both | ||
into and out of the customer's facility at the same rate | ||
and ratio, typically through the use of a dual channel | ||
meter. If the eligible customer's existing electric | ||
revenue meter does not meet this requirement, then the | ||
costs of installing such equipment shall be paid for by the | ||
customer.
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(d) An electricity provider shall
measure and charge or | ||
credit for the net
electricity supplied to eligible customers |
or provided by eligible customers whose electric service has | ||
not been declared competitive pursuant to Section 16-113 of the | ||
Act and whose electric delivery service is provided and | ||
measured on a kilowatt-hour basis and electric supply service | ||
is not provided based on hourly pricing in
the following | ||
manner:
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(1) If the amount of electricity used by the customer | ||
during the billing
period exceeds the
amount of electricity | ||
produced by the customer, the electricity provider shall | ||
charge the customer for the net electricity supplied to and | ||
used
by the customer as provided in subsection (e-5) of | ||
this Section.
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(2) If the amount of electricity produced by a customer | ||
during the billing period exceeds the amount of electricity | ||
used by the customer during that billing period, the | ||
electricity provider supplying that customer shall apply a | ||
1:1 kilowatt-hour credit to a subsequent bill for service | ||
to the customer for the net electricity supplied to the | ||
electricity provider. The electricity provider shall | ||
continue to carry over any excess kilowatt-hour credits | ||
earned and apply those credits to subsequent billing | ||
periods to offset any customer-generator consumption in | ||
those billing periods until all credits are used or until | ||
the end of the annualized period.
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(3) At the end of the year or annualized over the | ||
period that service is supplied by means of net metering, |
or in the event that the retail customer terminates service | ||
with the electricity provider prior to the end of the year | ||
or the annualized period, any remaining credits in the | ||
customer's account shall expire.
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(d-5) An electricity provider shall measure and charge or | ||
credit for the net electricity
supplied to eligible customers | ||
or provided by eligible customers whose electric service has | ||
not
been declared competitive pursuant to Section 16-113 of | ||
this Act and whose electric delivery
service is provided and | ||
measured on a kilowatt-hour basis and electric supply service | ||
is provided
based on hourly pricing in the following manner: | ||
(1) If the amount of electricity used by the customer | ||
during any hourly period exceeds the amount of electricity | ||
produced by the customer, the electricity provider shall | ||
charge the customer for the net electricity supplied to and | ||
used by the customer according to the terms of the contract | ||
or tariff to which the same customer would be assigned to | ||
or be eligible for if the customer was not a net metering | ||
customer. | ||
(2) If the amount of electricity produced by a customer | ||
during any hourly period exceeds the amount of electricity | ||
used by the customer during that hourly period, the energy | ||
provider shall apply a credit for the net kilowatt-hours | ||
produced in such period. The credit shall consist of an | ||
energy credit and a delivery service credit. The energy
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credit shall be valued at the same price per kilowatt-hour |
as the electric service provider
would charge for | ||
kilowatt-hour energy sales during that same hourly period. | ||
The delivery credit shall be equal to the net | ||
kilowatt-hours produced in such hourly period times a | ||
credit that reflects all kilowatt-hour based charges in the | ||
customer's electric service rate, excluding energy | ||
charges. | ||
(e) An electricity provider shall measure and charge or | ||
credit for the net electricity supplied to eligible customers | ||
whose electric service has not been declared competitive | ||
pursuant to Section 16-113 of this Act and whose electric | ||
delivery service is provided and measured on a kilowatt demand | ||
basis and electric supply service is not provided based on | ||
hourly pricing in the following manner: | ||
(1) If the amount of electricity used by the customer | ||
during the billing period exceeds the amount of electricity | ||
produced by the customer, then the electricity provider | ||
shall charge the customer for the net electricity supplied | ||
to and used by the customer as provided in subsection (e-5) | ||
of this Section, provided that the electricity provider | ||
shall assess and the customer remains responsible for all | ||
taxes, fees, and utility delivery charges that would | ||
otherwise be applicable to the gross amount of | ||
kilowatt-hours supplied to the eligible customer by the | ||
electricity provider. | ||
(2) If the amount of electricity produced by a customer |
during the billing period exceeds the amount of electricity | ||
used by the customer during that billing period, then the | ||
electricity provider supplying that customer shall apply a | ||
1:1 kilowatt-hour credit that reflects the kilowatt-hour | ||
based charges in the customer's electric service rate to a | ||
subsequent bill for service to the customer for the net | ||
electricity supplied to the electricity provider. The | ||
electricity provider shall continue to carry over any | ||
excess kilowatt-hour credits earned and apply those | ||
credits to subsequent billing periods to offset any | ||
customer-generator consumption in those billing periods | ||
until all credits are used or until the end of the | ||
annualized period. | ||
(3) At the end of the year or annualized over the | ||
period that service is supplied by means of net metering, | ||
or in the event that the retail customer terminates service | ||
with the electricity provider prior to the end of the year | ||
or the annualized period, any remaining credits in the | ||
customer's account shall expire. | ||
(e-5) An electricity provider shall provide electric | ||
service to eligible customers whose electric service has not | ||
been declared competitive pursuant to Section 16-113 of this | ||
Act and whose electric supply service is not provided based on | ||
hourly pricing who utilize net metering at non-discriminatory | ||
rates that are identical, with respect to rate structure, | ||
retail rate components, and any monthly charges, to the rates |
that the customer would be charged if not a net metering | ||
customer. An electricity provider shall not charge net metering | ||
customers any fee or charge or require additional equipment, | ||
insurance, or any other requirements not specifically | ||
authorized by interconnection standards authorized by the | ||
Commission, unless the fee, charge, or other requirement would | ||
apply to other similarly situated customers who are not net | ||
metering customers. The customer will remain responsible for | ||
all taxes, fees, and utility delivery charges that would | ||
otherwise be applicable to the net amount of electricity used | ||
by the customer. Subsections (c) through (e) of this Section | ||
shall not be construed to prevent an arms-length agreement | ||
between an electricity provider and an eligible customer that | ||
sets forth different prices, terms, and conditions for the | ||
provision of net metering service, including, but not limited | ||
to, the provision of the appropriate metering equipment for | ||
non-residential customers.
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(f) Notwithstanding the requirements of subsections (c) | ||
through (e-5) of this Section, an electricity provider must | ||
require dual-channel metering for customers operating eligible | ||
renewable electrical generating facilities with a nameplate | ||
rating up to 2,000 kilowatts and to whom the provisions of | ||
neither subsection (d) , (d-5), nor (e) of this Section apply. | ||
In such cases, electricity charges and credits shall be | ||
determined as follows:
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(1) The electricity provider shall assess and the |
customer remains responsible for all taxes, fees, and | ||
utility delivery charges that would otherwise be | ||
applicable to the gross amount of kilowatt-hours supplied | ||
to the eligible customer by the electricity provider. | ||
(2) Each month that service is supplied by means of | ||
dual-channel metering, the electricity provider shall | ||
compensate the eligible customer for any excess | ||
kilowatt-hour credits at the electricity provider's | ||
avoided cost of electricity supply over the monthly period | ||
or as otherwise specified by the terms of a power-purchase | ||
agreement negotiated between the customer and electricity | ||
provider. | ||
(3) For all eligible net metering customers taking | ||
service from an electricity provider under contracts or | ||
tariffs employing time of use rates, any monthly | ||
consumption of electricity shall be calculated according | ||
to the terms of the contract or tariff to which the same | ||
customer would be assigned to or be eligible for if the | ||
customer was not a net metering customer. When those same | ||
customer-generators are net generators during any discrete | ||
time of use period, the net kilowatt-hours produced shall | ||
be valued at the same price per kilowatt-hour as the | ||
electric service provider would charge for retail | ||
kilowatt-hour sales during that same time of use period.
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(g) For purposes of federal and State laws providing | ||
renewable energy credits or greenhouse gas credits, the |
eligible customer shall be treated as owning and having title | ||
to the renewable energy attributes, renewable energy credits, | ||
and greenhouse gas emission credits related to any electricity | ||
produced by the qualified generating unit. The electricity | ||
provider may not condition participation in a net metering | ||
program on the signing over of a customer's renewable energy | ||
credits; provided, however, this subsection (g) shall not be | ||
construed to prevent an arms-length agreement between an | ||
electricity provider and an eligible customer that sets forth | ||
the ownership or title of the credits.
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(h) Within 120 days after the effective date of this
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amendatory Act of the 95th General Assembly, the Commission | ||
shall establish standards for net metering and, if the | ||
Commission has not already acted on its own initiative, | ||
standards for the interconnection of eligible renewable | ||
generating equipment to the utility system. The | ||
interconnection standards shall address any procedural | ||
barriers, delays, and administrative costs associated with the | ||
interconnection of customer-generation while ensuring the | ||
safety and reliability of the units and the electric utility | ||
system. The Commission shall consider the Institute of | ||
Electrical and Electronics Engineers (IEEE) Standard 1547 and | ||
the issues of (i) reasonable and fair fees and costs, (ii) | ||
clear timelines for major milestones in the interconnection | ||
process, (iii) nondiscriminatory terms of agreement, and (iv) | ||
any best practices for interconnection of distributed |
generation.
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(i) All electricity providers shall begin to offer net | ||
metering
no later than April 1,
2008.
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(j) An electricity provider shall provide net metering to | ||
eligible
customers until the load of its net metering customers | ||
equals 5% of
the total peak demand supplied by
that electricity | ||
provider during the
previous year. Electricity providers are | ||
authorized to offer net metering beyond
the 5% level if they so | ||
choose.
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(k) Each electricity provider shall maintain records and | ||
report annually to the Commission the total number of net | ||
metering customers served by the provider, as well as the type, | ||
capacity, and energy sources of the generating systems used by | ||
the net metering customers. Nothing in this Section shall limit | ||
the ability of an electricity provider to request the redaction | ||
of information deemed by the Commission to be confidential | ||
business information. Each electricity provider shall notify | ||
the Commission when the total generating capacity of its net | ||
metering customers is equal to or in excess of the 5% cap | ||
specified in subsection (j) of this Section. | ||
(l) Notwithstanding the definition of "eligible customer" | ||
in item (i) of subsection (b) of this Section, each electricity | ||
provider shall consider whether to allow meter aggregation for | ||
the purposes of net metering on:
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(1) properties owned or leased by multiple customers | ||
that contribute to the operation of an eligible renewable |
electrical generating facility, such as a community-owned | ||
wind project, a community-owned biomass project, a | ||
community-owned solar project, or a community methane | ||
digester processing livestock waste from multiple sources; | ||
and
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(2) individual units, apartments, or properties owned | ||
or leased by multiple customers and collectively served by | ||
a common eligible renewable electrical generating | ||
facility, such as an apartment building served by | ||
photovoltaic panels on the roof.
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For the purposes of this subsection (l), "meter | ||
aggregation" means the combination of reading and billing on a | ||
pro rata basis for the types of eligible customers described in | ||
this Section.
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(m) Nothing in this Section shall affect the right of an | ||
electricity provider to continue to provide, or the right of a | ||
retail customer to continue to receive service pursuant to a | ||
contract for electric service between the electricity provider | ||
and the retail customer in accordance with the prices, terms, | ||
and conditions provided for in that contract. Either the | ||
electricity provider or the customer may require compliance | ||
with the prices, terms, and conditions of the contract.
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(Source: P.A. 95-420, eff. 8-24-07; 09700SB1652enr.)
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(220 ILCS 5/16-108.5) | ||
Sec. 16-108.5. Infrastructure investment and |
modernization; regulatory reform. | ||
(a) (Blank). The General Assembly recognizes that for well | ||
over a century Illinois residents and businesses have been | ||
well-served by and have benefitted from a comprehensive | ||
electric utility system. The General Assembly finds that | ||
electric utilities are now entering a new construction cycle | ||
that is needed to refurbish, rebuild, modernize, and expand | ||
systems to continue to provide safe, reliable, and affordable | ||
service to the State's current and future utility customers in | ||
this newly digitized age. In particular, the General Assembly | ||
finds that it is the policy of this State that significant | ||
investments must be made in the State's electric grid over the | ||
next decade to modernize and upgrade transmission and | ||
distribution facilities in the State. These investments will | ||
ensure that the State's electric utility infrastructure will | ||
promote future economic development in the State and that the | ||
State's electric utilities will be able to continue to provide | ||
quality electric service to their customers, including | ||
innovative technological offerings that will enhance customer | ||
experience and choice such as smart meters that are dependent | ||
on a modernized or Smart Grid. These investments, including | ||
programs to reinforce the safety and security of high voltage | ||
transmission lines, will also ensure that the State's electric | ||
utility infrastructure continues to be safe and reliable. The | ||
introduction of performance metrics will further ensure that | ||
reliability and other indicators are not just maintained but |
improved over the next decade. | ||
The General Assembly further recognizes that, in addition | ||
to attracting capital and businesses to the State, these | ||
investments will create training opportunities for the | ||
citizens of this State, all of which will create new employment | ||
opportunities for Illinoisans at a time when they are most | ||
needed, especially for minority-owned and female-owned | ||
business enterprises. The General Assembly further finds that | ||
regulatory reform measures that increase predictability, | ||
stability, and transparency in the ratemaking process are | ||
needed to promote prudent, long-term infrastructure investment | ||
and to mutually benefit the State's electric utilities and | ||
their customers, regulators, and investors. | ||
(b) For purposes of this Section, "participating utility" | ||
means an electric utility or a combination utility serving more | ||
than 1,000,000 customers in Illinois that voluntarily elects | ||
and commits to undertake (i) the infrastructure investment | ||
program consisting of the commitments and obligations | ||
described in this subsection (b) and (ii) the customer | ||
assistance program consisting of the commitments and | ||
obligations described in subsection (b-10) of this Section , | ||
notwithstanding any other provisions of this Act and without | ||
obtaining any approvals from the Commission or any other agency | ||
other than as set forth in this Section, regardless of whether | ||
any such approval would otherwise be required. "Combination | ||
utility" means a utility that, as of January 1, 2011, provided |
electric service to at least one million retail customers in | ||
Illinois and gas service to at least 500,000 retail customers | ||
in Illinois. A participating utility shall recover the | ||
expenditures made under the infrastructure investment program | ||
through the ratemaking process, including, but not limited to, | ||
the performance-based formula rate and process set forth in | ||
this Section. | ||
During the infrastructure investment program's peak | ||
program year, a participating utility other than a combination | ||
utility shall create 2,000 full-time equivalent jobs in | ||
Illinois, and a participating utility that is a combination | ||
utility shall create 450 full-time equivalent jobs in Illinois | ||
related to the provision of electric service . These jobs shall | ||
include , including direct jobs, contractor positions, and | ||
induced jobs , but shall not include any portion of a job | ||
commitment, not specifically contingent on an amendatory Act of | ||
the 97th General Assembly becoming law, between a participating | ||
utility and a labor union that existed on the effective date of | ||
this amendatory Act of the 97th General Assembly and that has | ||
not yet been fulfilled. A portion of the full-time equivalent | ||
jobs created by each participating utility shall include | ||
incremental personnel hired subsequent to the effective date of | ||
this amendatory Act of the 97th General Assembly . For purposes | ||
of this Section, "peak program year" means the consecutive | ||
12-month period with the highest number of full-time equivalent | ||
jobs that occurs between the beginning of investment year 2 and |
the end of investment year 4. | ||
A participating utility shall meet one of the following | ||
commitments, as applicable: | ||
(1) Beginning no later than 180 days after a | ||
participating utility other than a combination utility | ||
files a performance-based formula rate tariff pursuant to | ||
subsection (c) of this Section, or, beginning no later than | ||
January 1, 2012 if such utility files such | ||
performance-based formula rate tariff within 14 days of the | ||
effective date of this amendatory Act of the 97th General | ||
Assembly, the participating utility shall, except as | ||
provided in subsection (b-5): | ||
(A) over a 5-year period, invest an estimated | ||
$1,300,000,000 $1,100,000,000 in electric system | ||
upgrades, modernization projects, and training | ||
facilities, including, but not limited to: | ||
(i) distribution infrastructure improvements | ||
totaling an estimated $1,000,000,000, including | ||
underground residential distribution cable | ||
injection and replacement and mainline cable | ||
system refurbishment and replacement projects; | ||
(ii) training facility construction or upgrade | ||
projects totaling an estimated $10,000,000, | ||
provided that, at a minimum, one such facility | ||
shall be located in a municipality having a | ||
population of more than 2 million residents and one |
such facility shall be located in a municipality | ||
having a population of more than 150,000 residents | ||
but fewer than 170,000 residents; any such new | ||
facility located in a municipality having a | ||
population of more than 2 million residents must be | ||
designed for the purpose of obtaining, and the | ||
owner of the facility shall apply for, | ||
certification under the United States Green | ||
Building Council's Leadership in Energy Efficiency | ||
Design Green Building Rating System; and | ||
(iii) wood pole inspection, treatment, and | ||
replacement programs; and | ||
(iv) an estimated $200,000,000 for reducing | ||
the susceptibility of certain circuits to | ||
storm-related damage, including, but not limited | ||
to, high winds, thunderstorms, and ice storms; | ||
improvements may include, but are not limited to, | ||
overhead to underground conversion and other | ||
engineered outcomes for circuits; the | ||
participating utility shall prioritize the | ||
selection of circuits based on each circuit's | ||
historical susceptibility to storm-related damage | ||
and the ability to provide the greatest customer | ||
benefit upon completion of the improvements; to be | ||
eligible for improvement, the participating | ||
utility's ability to maintain proper tree |
clearances surrounding the overhead circuit must | ||
not have
been impeded by third parties; and | ||
(B) over a 10-year period, invest an estimated | ||
$1,300,000,000 $1,500,000,000 to upgrade and modernize | ||
its transmission and distribution infrastructure and | ||
in Smart Grid electric system upgrades, including, but | ||
not limited to: | ||
(i) additional smart meters; | ||
(ii) distribution automation; | ||
(iii) associated cyber secure data | ||
communication network; and | ||
(iv) substation micro-processor relay | ||
upgrades. | ||
(2) Beginning no later than 180 days after a | ||
participating utility that is a combination utility files a | ||
performance-based formula rate tariff pursuant to | ||
subsection (c) of this Section, or, beginning no later than | ||
January 1, 2012 if such utility files such | ||
performance-based formula rate tariff within 14 days of the | ||
effective date of this amendatory Act of the 97th General | ||
Assembly, the participating utility shall, except as | ||
provided in subsection (b-5): | ||
(A) over a 10-year period, invest an estimated | ||
$265,000,000 in electric system upgrades, | ||
modernization projects, and training facilities, | ||
including, but not limited to: |
(i) distribution infrastructure improvements | ||
totaling an estimated $245,000,000, which may | ||
include bulk supply substations, transformers, | ||
reconductoring, and rebuilding overhead | ||
distribution and sub-transmission lines, | ||
underground residential distribution cable | ||
injection and replacement and mainline cable | ||
system refurbishment and replacement projects; | ||
(ii) training facility construction or upgrade | ||
projects totaling an estimated $1,000,000; any | ||
such new facility must be designed for the purpose | ||
of obtaining, and the owner of the facility shall | ||
apply for, certification under the United States | ||
Green Building Council's Leadership in Energy | ||
Efficiency Design Green Building Rating System; | ||
and | ||
(iii) wood pole inspection, treatment, and | ||
replacement programs; and | ||
(B) over a 10-year period, invest an estimated | ||
$360,000,000 to upgrade and modernize its transmission | ||
and distribution infrastructure and in Smart Grid | ||
electric system upgrades, including, but not limited | ||
to: | ||
(i) additional smart meters; | ||
(ii) distribution automation; | ||
(iii) associated cyber secure data |
communication network; and | ||
(iv) substation micro-processor relay | ||
upgrades. | ||
For purposes of this Section, "Smart Grid electric system | ||
upgrades" shall have the meaning set forth in subsection (a) of | ||
Section 16-108.6 of this Act. | ||
The investments in the infrastructure investment program | ||
described in this subsection (b) shall be incremental to the | ||
participating utility's annual capital investment program, as | ||
defined by, for purposes of this subsection (b), the | ||
participating utility's average capital spend for calendar | ||
years 2008, 2009, and 2010 as reported in the applicable | ||
Federal Energy Regulatory Commission (FERC) Form 1; provided | ||
that where one or more utilities have merged, the average | ||
capital spend shall be determined using the aggregate of the | ||
merged utilities' capital spend reported in FERC Form 1 for the | ||
years 2008, 2009, and 2010. A participating utility may add | ||
reasonable construction ramp-up and ramp-down time to the | ||
investment periods specified in this subsection (b). For each | ||
such investment period, the ramp-up and ramp-down time shall | ||
not exceed a total of 6 months. | ||
Within 60 days after filing a tariff under subsection (c) | ||
of this Section, a participating utility shall submit to the | ||
Commission its plan, including scope, schedule, and staffing, | ||
for satisfying its infrastructure investment program | ||
commitments pursuant to this subsection (b). The submitted plan |
shall include a schedule and staffing plan for the next | ||
calendar year. The plan shall also include a plan for the | ||
creation, operation, and administration of a Smart Grid test | ||
bed as described in subsection (c) of Section 16-108.8. The | ||
plan need not allocate the work equally over the respective | ||
periods, but should allocate material increments throughout | ||
such periods commensurate with the work to be undertaken. No | ||
later than April 1 of each subsequent year, the utility shall | ||
submit to the Commission a report that includes any updates to | ||
the plan, a schedule for the next calendar year, the | ||
expenditures made for the prior calendar year and cumulatively, | ||
and the number of full-time equivalent jobs created for the | ||
prior calendar year and cumulatively. If the utility is | ||
materially deficient in satisfying a schedule or staffing plan, | ||
then the report must also include a corrective action plan to | ||
address the deficiency. The fact that the plan, implementation | ||
of the plan, or a schedule changes shall not imply the | ||
imprudence or unreasonableness of the infrastructure | ||
investment program, plan, or schedule. Further, no later than | ||
45 days following the last day of the first, second, and third | ||
quarters of each year of the plan, a participating utility | ||
shall submit to the Commission a verified quarterly report for | ||
the prior quarter that includes (i) the total number of | ||
full-time equivalent jobs created during the prior quarter, | ||
(ii) the total number of employees as of the last day of the | ||
prior quarter, (iii) the total number of full-time equivalent |
hours in each job classification or job title, (iv) the total | ||
number of incremental employees and contractors in support of | ||
the investments undertaken pursuant to this subsection (b) for | ||
the prior quarter, and (v) any other information that the | ||
Commission may require by rule. | ||
With respect to the participating utility's peak job | ||
commitment, if, after considering the utility's corrective | ||
action plan and compliance thereunder, the Commission enters an | ||
order finding, after notice and hearing, that a participating | ||
utility did not satisfy its peak job commitment described in | ||
this subsection (b) for reasons that are reasonably within its | ||
control, then the Commission shall also determine, after | ||
consideration of the evidence, including, but not limited to, | ||
evidence submitted by the Department of Commerce and Economic | ||
Opportunity and the utility, the deficiency in the number of | ||
full-time equivalent jobs during the peak program year due to | ||
such failure. The Commission shall notify the Department of any | ||
proceeding that is initiated pursuant to this paragraph. For | ||
each full-time equivalent job deficiency during the peak | ||
program year that the Commission finds as set forth in this | ||
paragraph, the participating utility shall, within 30 days | ||
after the entry of the Commission's order, pay $6,000 $3,000 to | ||
a fund for training grants administered under Section 605-800 | ||
of The Department of Commerce and Economic Opportunity Law, | ||
which shall not be a recoverable expense. | ||
With respect to the participating utility's investment |
amount commitments, if, after considering the utility's | ||
corrective action plan and compliance thereunder, the | ||
Commission enters an order finding, after notice and hearing, | ||
that a participating utility is not satisfying its investment | ||
amount commitments described in this subsection (b), then the | ||
utility shall no longer be eligible to annually update the | ||
performance-based formula rate tariff pursuant to subsection | ||
(d) of this Section. In such event, the then current rates | ||
shall remain in effect until such time as new rates are set | ||
pursuant to Article IX of this Act, subject to retroactive | ||
adjustment, with interest, to reconcile rates charged with | ||
actual costs. | ||
If the Commission finds that a participating utility is no | ||
longer eligible to update the performance-based formula rate | ||
tariff pursuant to subsection (d) of this Section, or the | ||
performance-based formula rate is otherwise terminated, then | ||
the participating utility's voluntary commitments and | ||
obligations under this subsection (b) shall immediately | ||
terminate, except for the utility's obligation to pay an amount | ||
already owed to the fund for training grants pursuant to a | ||
Commission order. | ||
In meeting the obligations of this subsection (b), to the | ||
extent feasible and consistent with State and federal law, the | ||
investments under the infrastructure investment program should | ||
provide employment opportunities for all segments of the | ||
population and workforce, including minority-owned and |
female-owned business enterprises, and shall not, consistent | ||
with State and federal law, discriminate based on race or | ||
socioeconomic status. | ||
(b-5) Nothing in this Section shall prohibit the Commission | ||
from investigating the prudence and reasonableness of the | ||
expenditures made under the infrastructure investment program | ||
during the annual review required by subsection (d) of this | ||
Section and shall, as part of such investigation, determine | ||
whether the utility's actual costs under the program are | ||
prudent and reasonable. The fact that a participating utility | ||
invests more than the minimum amounts specified in subsection | ||
(b) of this Section or its plan shall not imply imprudence or | ||
unreasonableness. | ||
If the participating utility finds that it is implementing | ||
its plan for satisfying the infrastructure investment program | ||
commitments described in subsection (b) of this Section at a | ||
cost below the estimated amounts specified in subsection (b) of | ||
this Section, then the utility may file a petition with the | ||
Commission requesting that it be permitted to satisfy its | ||
commitments by spending less than the estimated amounts | ||
specified in subsection (b) of this Section. The Commission | ||
shall, after notice and hearing, enter its order approving, or | ||
approving as modified, or denying each such petition within 150 | ||
days after the filing of the petition. | ||
In no event, absent General Assembly approval, shall the | ||
capital investment costs incurred by a participating utility |
other than a combination utility in satisfying its | ||
infrastructure investment program commitments described in | ||
subsection (b) of this Section exceed $3,000,000,000 or, for a | ||
participating utility that is a combination utility, | ||
$720,000,000. If the participating utility's updated cost | ||
estimates for satisfying its infrastructure investment program | ||
commitments described in subsection (b) of this Section exceed | ||
the limitation imposed by this subsection (b-5), then it shall | ||
submit a report to the Commission that identifies the increased | ||
costs and explains the reason or reasons for the increased | ||
costs no later than the year in which the utility estimates it | ||
will exceed the limitation. The Commission shall review the | ||
report and shall, within 90 days after the participating | ||
utility files the report, report to the General Assembly its | ||
findings regarding the participating utility's report. If the | ||
General Assembly does not amend the limitation imposed by this | ||
subsection (b-5), then the utility may modify its plan so as | ||
not to exceed the limitation imposed by this subsection (b-5) | ||
and may propose corresponding changes to the metrics | ||
established pursuant to subparagraphs (5) through (8) of | ||
subsection (f) of this Section, and the Commission may modify | ||
the metrics and incremental savings goals established pursuant | ||
to subsection (f) of this Section accordingly. | ||
(b-10) All participating utilities shall make | ||
contributions for an energy low-income and support program in | ||
accordance with this subsection. Beginning no later than 180 |
days after a participating utility files a performance-based | ||
formula rate tariff pursuant to subsection (c) of this Section, | ||
or beginning no later than January 1, 2012 if such utility | ||
files such performance-based formula rate tariff within 14 days | ||
of the effective date of this amendatory Act of the 97th | ||
General Assembly, and without obtaining any approvals from the | ||
Commission or any other agency other than as set forth in this | ||
Section, regardless of whether any such approval would | ||
otherwise be required, a participating utility other than a | ||
combination utility shall pay $10,000,000 per year for 5 years | ||
and a participating utility that is a combination utility shall | ||
pay $1,000,000 per year for 10 years to the energy low-income | ||
and support program, which is intended to fund customer | ||
assistance programs with the primary purpose being avoidance of
| ||
imminent disconnection. Such programs may include: | ||
(1) a residential hardship program that may partner | ||
with community-based
organizations, including senior | ||
citizen organizations, and provides grants to low-income | ||
residential customers, including low-income senior | ||
citizens, who demonstrate a hardship; | ||
(2) a program that provides grants and other bill | ||
payment concessions to disabled veterans who demonstrate a | ||
hardship and members of the armed services or reserve | ||
forces of the United States or members of the Illinois | ||
National Guard who are on active duty pursuant to an | ||
executive order of the President of the United States, an |
act of the Congress of the United States, or an order of | ||
the Governor and who demonstrate a
hardship; | ||
(3) a budget assistance program that provides tools and | ||
education to low-income senior citizens to assist them with | ||
obtaining information regarding energy usage and
effective | ||
means of managing energy costs; | ||
(4) a non-residential special hardship program that | ||
provides grants to non-residential customers such as small | ||
businesses and non-profit organizations that demonstrate a | ||
hardship, including those providing services to senior | ||
citizen and low-income customers; and | ||
(5) a performance-based assistance program that | ||
provides grants to encourage residential customers to make | ||
on-time payments by matching a portion of the customer's | ||
payments or providing credits towards arrearages. | ||
The payments made by a participating utility pursuant to | ||
this subsection (b-10) shall not be a recoverable expense. A | ||
participating utility may elect to fund either new or existing | ||
customer assistance programs, including, but not limited to, | ||
those that are administered by the utility. | ||
Programs that use funds that are provided by a | ||
participating utility to reduce utility bills may be | ||
implemented through tariffs that are filed with and reviewed by | ||
the Commission. If a utility elects to file tariffs with the | ||
Commission to implement all or a portion of the programs, those | ||
tariffs shall, regardless of the date actually filed, be deemed |
accepted and approved, and shall become effective on the | ||
effective date of this amendatory Act of the 97th General | ||
Assembly. The participating utilities whose customers benefit | ||
from the funds that are disbursed as contemplated in this | ||
Section shall file annual reports documenting the disbursement | ||
of those funds with the Commission. The Commission has the | ||
authority to audit disbursement of the funds to ensure they | ||
were disbursed consistently with this Section. | ||
If the Commission finds that a participating utility is no | ||
longer eligible to update the performance-based formula rate | ||
tariff pursuant to subsection (d) of this Section, or the | ||
performance-based formula rate is otherwise terminated, then | ||
the participating utility's voluntary commitments and | ||
obligations under this subsection (b-10) shall immediately | ||
terminate. | ||
(c) A participating utility may elect to recover its | ||
delivery services costs through a performance-based formula | ||
rate approved by the Commission, which shall specify the cost | ||
components that form the basis of the rate charged to customers | ||
with sufficient specificity to operate in a standardized manner | ||
and be updated annually with transparent information that | ||
reflects the utility's actual costs to be recovered during the | ||
applicable rate year, which is the period beginning with the | ||
first billing day of January and extending through the last | ||
billing day of the following December. In the event the utility | ||
recovers a portion of its costs through automatic adjustment |
clause tariffs on the effective date of this amendatory Act of | ||
the 97th General Assembly, the utility may elect to continue to | ||
recover these costs through such tariffs, but then these costs | ||
shall not be recovered through the performance-based formula | ||
rate. In the event the participating utility, prior to the | ||
effective date of this amendatory Act of the 97th General | ||
Assembly, filed electric delivery services tariffs with the | ||
Commission pursuant to Section 9-201 of this Act that are | ||
related to the recovery of its electric delivery services costs | ||
that are still pending on the effective date of this amendatory | ||
Act of the 97th General Assembly, the participating utility | ||
shall, at the time it files its performance-based formula rate | ||
tariff with the Commission, also file a notice of withdrawal | ||
with the Commission to withdraw the electric delivery services | ||
tariffs previously filed pursuant to Section 9-201 of this Act. | ||
Upon receipt of such notice, the Commission shall dismiss with | ||
prejudice any docket that had been initiated to investigate the | ||
electric delivery services tariffs filed pursuant to Section | ||
9-201 of this Act, and such tariffs and the record related | ||
thereto shall not be the subject of any further hearing, | ||
investigation, or proceeding of any kind related to rates for | ||
electric delivery services. | ||
The performance-based formula rate shall be implemented | ||
through a tariff filed with the Commission consistent with the | ||
provisions of this subsection (c) that shall be applicable to | ||
all delivery services customers. The Commission shall initiate |
and conduct an investigation of the tariff in a manner | ||
consistent with the provisions of this subsection (c) and the | ||
provisions of Article IX of this Act to the extent they do not | ||
conflict with this subsection (c). Except in the case where the | ||
Commission finds, after notice and hearing, that a | ||
participating utility is not satisfying its investment amount | ||
commitments under subsection (b) of this Section, the | ||
performance-based formula rate shall remain in effect at the | ||
discretion of the utility. The performance-based formula rate | ||
approved by the Commission shall do the following: | ||
(1) Provide for the recovery of the utility's actual | ||
costs of delivery services that are prudently incurred and | ||
reasonable in amount consistent with Commission practice | ||
and law. The sole fact that a cost differs from that | ||
incurred in a prior calendar year or that an investment is | ||
different from that made in a prior calendar year shall not | ||
imply the imprudence or unreasonableness of that cost or | ||
investment. | ||
(2) Reflect the utility's actual capital structure for | ||
the applicable calendar year, excluding goodwill, subject | ||
to a determination of prudence and reasonableness | ||
consistent with Commission practice and law. | ||
(3) Include a cost of equity, which shall be calculated | ||
as the sum of the following: | ||
(A) the average for the applicable calendar year of | ||
the monthly average yields of 30-year U.S. Treasury |
bonds published by the Board of Governors of the | ||
Federal Reserve System in its weekly H.15 Statistical | ||
Release or successor publication; and | ||
(B) 580 600 basis points. | ||
At such time as the Board of Governors of the Federal | ||
Reserve System ceases to include the monthly average yields | ||
of 30-year U.S. Treasury bonds in its weekly H.15 | ||
Statistical Release or successor publication, the monthly | ||
average yields of the U.S. Treasury bonds then having the | ||
longest duration published by the Board of Governors in its | ||
weekly H.15 Statistical Release or successor publication | ||
shall instead be used for purposes of this paragraph (3). | ||
(4) Permit and set forth protocols, subject to a | ||
determination of prudence and reasonableness consistent | ||
with Commission practice and law, for the following: | ||
(A) recovery of incentive compensation expense | ||
that is based on the achievement of operational | ||
metrics, including metrics related to budget controls, | ||
outage duration and frequency, safety, customer | ||
service, efficiency and productivity, and | ||
environmental compliance. Incentive compensation | ||
expense that is based on net income or an affiliate's | ||
earnings per share shall not be recoverable under the | ||
performance-based formula rate; | ||
(B) recovery of pension and other post-employment | ||
benefits expense, provided that such costs are |
supported by an actuarial study; | ||
(C) recovery of severance costs, provided that if | ||
the amount is over $3,700,000 for a participating | ||
utility that is a combination utility or $10,000,000 | ||
for a participating utility that serves more than 3 | ||
million retail customers, then the full amount shall be | ||
amortized consistent with subparagraph (F) of this | ||
paragraph (4); | ||
(D) investment return on pension assets net of | ||
deferred tax benefits equal to the utility's long-term | ||
debt cost of capital as of the end of the applicable | ||
calendar year; | ||
(E) recovery of the expenses related to the | ||
Commission proceeding under this subsection (c) to | ||
approve this performance-based formula rate and | ||
initial rates or to subsequent proceedings related to | ||
the formula, provided that the recovery shall be | ||
amortized over a 3-year period; recovery of expenses | ||
related to the annual Commission proceedings under | ||
subsection (d) of this Section to review the inputs to | ||
the performance-based formula rate shall be expensed | ||
and recovered through the performance-based formula | ||
rate; | ||
(F) amortization over a 5-year period of the full | ||
amount of each charge or credit that exceeds $3,700,000 | ||
for a participating utility that is a combination |
utility or $10,000,000 for a participating utility | ||
that serves more than 3 million retail customers in the | ||
applicable calendar year and that relates to a | ||
workforce reduction program's severance costs, changes | ||
in accounting rules, changes in law, compliance with | ||
any Commission-initiated audit, or a single storm or | ||
other similar expense, provided that any unamortized | ||
balance shall be reflected in rate base. For purposes | ||
of this subparagraph (F), changes in law includes any | ||
enactment, repeal, or amendment in a law, ordinance, | ||
rule, regulation, interpretation, permit, license, | ||
consent, or order, including those relating to taxes, | ||
accounting, or to environmental matters, or in the | ||
interpretation or application thereof by any | ||
governmental authority occurring after the effective | ||
date of this amendatory Act of the 97th General | ||
Assembly; | ||
(G) recovery of existing regulatory assets over | ||
the periods previously authorized by the Commission; | ||
(H) historical weather normalized billing | ||
determinants; and | ||
(I) allocation methods for common costs. | ||
(5) Provide that if the participating utility's earned | ||
rate of return on common equity related to the provision of | ||
delivery services for the prior rate year (calculated using | ||
costs and capital structure approved by the Commission as |
provided in subparagraph (2) of this subsection (c), | ||
consistent with this Section, in accordance with | ||
Commission rules and orders, including, but not limited to, | ||
adjustments for goodwill, and after any Commission-ordered | ||
disallowances and taxes) is more than 50 basis points | ||
higher than the rate of return on common equity calculated | ||
pursuant to paragraph (3) of this subsection (c) (after | ||
adjusting for any penalties to the rate of return on common | ||
equity applied pursuant to the performance metrics | ||
provision of subsection (f) of this Section), then the | ||
participating utility shall apply a credit through the | ||
performance-based formula rate that reflects an amount | ||
equal to the value of that portion of the earned rate of | ||
return on common equity that is more than 50 basis points | ||
higher than the rate of return on common equity calculated | ||
pursuant to paragraph (3) of this subsection (c) (after | ||
adjusting for any penalties to the rate of return on common | ||
equity applied pursuant to the performance metrics | ||
provision of subsection (f) of this Section) for the prior | ||
rate year, adjusted for taxes. If the participating | ||
utility's earned rate of return on common equity related to | ||
the provision of delivery services for the prior rate year | ||
(calculated using costs and capital structure approved by | ||
the Commission as provided in subparagraph (2) of this | ||
subsection (c), consistent with this Section, in | ||
accordance with Commission rules and orders, including, |
but not limited to, adjustments for goodwill, and after any | ||
Commission-ordered disallowances and taxes) is more than | ||
50 basis points less than the return on common equity | ||
calculated pursuant to paragraph (3) of this subsection (c) | ||
(after adjusting for any penalties to the rate of return on | ||
common equity applied pursuant to the performance metrics | ||
provision of subsection (f) of this Section), then the | ||
participating utility shall apply a charge through the | ||
performance-based formula rate that reflects an amount | ||
equal to the value of that portion of the earned rate of | ||
return on common equity that is more than 50 basis points | ||
less than the rate of return on common equity calculated | ||
pursuant to paragraph (3) of this subsection (c) (after | ||
adjusting for any penalties to the rate of return on common | ||
equity applied pursuant to the performance metrics | ||
provision of subsection (f) of this Section) for the prior | ||
rate year, adjusted for taxes. | ||
(6) Provide for an annual reconciliation, with | ||
interest as described in subsection (d) of this Section, of | ||
the revenue requirement reflected in rates for each | ||
calendar year, beginning with the calendar year in which | ||
the utility files its performance-based formula rate | ||
tariff pursuant to subsection (c) of this Section, with | ||
what the revenue requirement would have been had the actual | ||
cost information for the applicable calendar year been | ||
available at the filing date. |
The utility shall file, together with its tariff, final | ||
data based on its most recently filed FERC Form 1, plus | ||
projected plant additions and correspondingly updated | ||
depreciation reserve and expense for the calendar year in which | ||
the tariff and data are filed, that shall populate the | ||
performance-based formula rate and set the initial delivery | ||
services rates under the formula. For purposes of this Section, | ||
"FERC Form 1" means the Annual Report of Major Electric | ||
Utilities, Licensees and Others that electric utilities are | ||
required to file with the Federal Energy Regulatory Commission | ||
under the Federal Power Act, Sections 3, 4(a), 304 and 209, | ||
modified as necessary to be consistent with 83 Ill. Admin. Code | ||
Part 415 as of May 1, 2011. Nothing in this Section is intended | ||
to allow costs that are not otherwise recoverable to be | ||
recoverable by virtue of inclusion in FERC Form 1. | ||
After the utility files its proposed performance-based | ||
formula rate structure and protocols and initial rates, the | ||
Commission shall initiate a docket to review the filing. The | ||
Commission shall enter an order approving, or approving as | ||
modified, the performance-based formula rate, including the | ||
initial rates, as just and reasonable within 270 days after the | ||
date on which the tariff was filed, or, if the tariff is filed | ||
within 14 days after the effective date of this amendatory Act | ||
of the 97th General Assembly, then by May 31, 2012. Such review | ||
shall be based on the same evidentiary standards, including, | ||
but not limited to, those concerning the prudence and |
reasonableness of the costs incurred by the utility, the | ||
Commission applies in a hearing to review a filing for a | ||
general increase in rates under Article IX of this Act. The | ||
initial rates shall take effect within 30 days after the | ||
Commission's order approving the performance-based formula | ||
rate tariff. | ||
Until such time as the Commission approves a different rate | ||
design and cost allocation pursuant to subsection (e) of this | ||
Section, rate design and cost allocation across customer | ||
classes shall be consistent with the Commission's most recent | ||
order regarding the participating utility's request for a | ||
general increase in its delivery services rates. | ||
Subsequent changes to the performance-based formula rate | ||
structure or protocols shall be made as set forth in Section | ||
9-201 of this Act, but nothing in this subsection (c) is | ||
intended to limit the Commission's authority under Article IX | ||
and other provisions of this Act to initiate an investigation | ||
of a participating utility's performance-based formula rate | ||
tariff, provided that any such changes shall be consistent with | ||
paragraphs (1) through (6) of this subsection (c). Any change | ||
ordered by the Commission shall be made at the same time new | ||
rates take effect following the Commission's next order | ||
pursuant to subsection (d) of this Section, provided that the | ||
new rates take effect no less than 30 days after the date on | ||
which the Commission issues an order adopting the change. | ||
A participating utility that files a tariff pursuant to |
this subsection (c) must submit a one-time $200,000 filing fee | ||
at the time the Chief Clerk of the Commission accepts the | ||
filing, which shall be a recoverable expense. | ||
In the event the performance-based formula rate is | ||
terminated, the then current rates shall remain in effect until | ||
such time as new rates are set pursuant to Article IX of this | ||
Act, subject to retroactive rate adjustment, with interest, to | ||
reconcile rates charged with actual costs. At such time that | ||
the performance-based formula rate is terminated, the | ||
participating utility's voluntary commitments and obligations | ||
under subsection (b) of this Section shall immediately | ||
terminate, except for the utility's obligation to pay an amount | ||
already owed to the fund for training grants pursuant to a | ||
Commission order issued under subsection (b) of this Section. | ||
(d) Subsequent to the Commission's issuance of an order | ||
approving the utility's performance-based formula rate | ||
structure and protocols, and initial rates under subsection (c) | ||
of this Section, the utility shall file, on or before May 1 of | ||
each year, with the Chief Clerk of the Commission its updated | ||
cost inputs to the performance-based formula rate for the | ||
applicable rate year and the corresponding new charges. Each | ||
such filing shall conform to the following requirements and | ||
include the following information: | ||
(1) The inputs to the performance-based formula rate | ||
for the applicable rate year shall be based on final | ||
historical data reflected in the utility's most recently |
filed annual FERC Form 1 plus projected plant additions and | ||
correspondingly updated depreciation reserve and expense | ||
for the calendar year in which the inputs are filed. The | ||
filing shall also include a reconciliation of the revenue | ||
requirement that was in effect for the prior rate year (as | ||
set by the cost inputs for the prior rate year) with the | ||
actual revenue requirement for the prior rate year (as | ||
reflected in the applicable FERC Form 1 that reports the | ||
actual costs for the prior rate year). Any over-collection | ||
or under-collection indicated by such reconciliation shall | ||
be reflected as a credit against, or recovered as an | ||
additional charge to, respectively, with interest, the | ||
charges for the applicable rate year. Provided, however, | ||
that the first such reconciliation shall be for the | ||
calendar year in which the utility files its | ||
performance-based formula rate tariff pursuant to | ||
subsection (c) of this Section and shall reconcile (i) the | ||
revenue requirement or requirements established by the | ||
rate order or orders in effect from time to time during | ||
such calendar year (weighted, as applicable) with (ii) the | ||
revenue requirement for that calendar year calculated | ||
pursuant to the performance-based formula rate using (A) | ||
actual costs for that year as reflected in the applicable | ||
FERC Form 1, and (B) for the first such reconciliation | ||
only, the cost of equity , which shall be calculated as the | ||
sum of 590 basis points plus the average for the applicable |
calendar year of the monthly average yields of 30-year U.S. | ||
Treasury bonds published by the Board of Governors of the | ||
Federal Reserve System in its weekly H.15 Statistical | ||
Release or successor publication approved by the | ||
Commission in such order or orders in effect during that | ||
year (weighted, as applicable) . The first such | ||
reconciliation is not intended to provide for the recovery | ||
of costs previously excluded from rates based on a prior | ||
Commission order finding of imprudence or | ||
unreasonableness. Each reconciliation shall be certified | ||
by the participating utility in the same manner that FERC | ||
Form 1 is certified. The filing shall also include the | ||
charge or credit, if any, resulting from the calculation | ||
required by paragraph (6) of subsection (c) of this | ||
Section. | ||
Notwithstanding anything that may be to the contrary, | ||
the intent of the reconciliation is to ultimately reconcile | ||
the revenue requirement reflected in rates for each | ||
calendar year, beginning with the calendar year in which | ||
the utility files its performance-based formula rate | ||
tariff pursuant to subsection (c) of this Section, with | ||
what the revenue requirement would have been had the actual | ||
cost information for the applicable calendar year been | ||
available at the filing date. | ||
(2) The new charges shall take effect beginning on the | ||
first billing day of the following January billing period |
and remain in effect through the last billing day of the | ||
next December billing period regardless of whether the | ||
Commission enters upon a hearing pursuant to this | ||
subsection (d). | ||
(3) The filing shall include relevant and necessary | ||
data and documentation for the applicable rate year that is | ||
consistent with the Commission's rules applicable to a | ||
filing for a general increase in rates or any rules adopted | ||
by the Commission to implement this Section. Normalization | ||
adjustments shall not be required. Notwithstanding any | ||
other provision of this Section or Act or any rule or other | ||
requirement adopted by the Commission, a participating | ||
utility that is a combination utility with more than one | ||
rate zone shall not be required to file a separate set of | ||
such data and documentation for each rate zone and may | ||
combine such data and documentation into a single set of | ||
schedules. | ||
Within 45 days after the utility files its annual update of | ||
cost inputs to the performance-based formula rate, the | ||
Commission shall have the authority, either upon complaint or | ||
its own initiative, but with reasonable notice, to enter upon a | ||
hearing concerning the prudence and reasonableness of the costs | ||
incurred by the utility to be recovered during the applicable | ||
rate year that are reflected in the inputs to the | ||
performance-based formula rate derived from the utility's FERC | ||
Form 1. During the course of the hearing, each objection shall |
be stated with particularity and evidence provided in support | ||
thereof, after which the utility shall have the opportunity to | ||
rebut the evidence. Discovery shall be allowed consistent with | ||
the Commission's Rules of Practice, which Rules shall be | ||
enforced by the Commission or the assigned hearing examiner. | ||
The Commission shall apply the same evidentiary standards, | ||
including, but not limited to, those concerning the prudence | ||
and reasonableness of the costs incurred by the utility, in the | ||
hearing as it would apply in a hearing to review a filing for a | ||
general increase in rates under Article IX of this Act. The | ||
Commission shall not, however, have the authority in a | ||
proceeding under this subsection (d) to consider or order any | ||
changes to the structure or protocols of the performance-based | ||
formula rate approved pursuant to subsection (c) of this | ||
Section. In a proceeding under this subsection (d), the | ||
Commission shall enter its order no later than the earlier of | ||
240 days after the utility's filing of its annual update of | ||
cost inputs to the performance-based formula rate or December | ||
31. The Commission's determinations of the prudence and | ||
reasonableness of the costs incurred for the applicable | ||
calendar year shall be final upon entry of the Commission's | ||
order and shall not be subject to reopening, reexamination, or | ||
collateral attack in any other Commission proceeding, case, | ||
docket, order, rule or regulation, provided, however, that | ||
nothing in this subsection (d) shall prohibit a party from | ||
petitioning the Commission to rehear or appeal to the courts |
the order pursuant to the provisions of this Act. | ||
In the event the Commission does not, either upon complaint | ||
or its own initiative, enter upon a hearing within 45 days | ||
after the utility files the annual update of cost inputs to its | ||
performance-based formula rate, then the costs incurred for the | ||
applicable calendar year shall be deemed prudent and | ||
reasonable, and the filed charges shall not be subject to | ||
reopening, reexamination, or collateral attack in any other | ||
proceeding, case, docket, order, rule, or regulation. | ||
A participating utility's first filing of the updated cost | ||
inputs, and any Commission investigation of such inputs | ||
pursuant to this subsection (d) shall proceed notwithstanding | ||
the fact that the Commission's investigation under subsection | ||
(c) of this Section is still pending and notwithstanding any | ||
other law, order, rule, or Commission practice to the contrary. | ||
(e) Nothing in subsections (c) or (d) of this Section shall | ||
prohibit the Commission from investigating, or a participating | ||
utility from filing, revenue-neutral tariff changes related to | ||
rate design of a performance-based formula rate that has been | ||
placed into effect for the utility. Following approval of a | ||
participating utility's performance-based formula rate tariff | ||
pursuant to subsection (c) of this Section, the utility shall | ||
make a filing with the Commission within one year after the | ||
effective date of the performance-based formula rate tariff | ||
that proposes changes to the tariff to incorporate the findings | ||
of any final rate design orders of the Commission applicable to |
the participating utility and entered subsequent to the | ||
Commission's approval of the tariff. The Commission shall, | ||
after notice and hearing, enter its order approving, or | ||
approving with modification, the proposed changes to the | ||
performance-based formula rate tariff within 240 days after the | ||
utility's filing. Following such approval, the utility shall | ||
make a filing with the Commission during each subsequent 3-year | ||
period that either proposes revenue-neutral tariff changes or | ||
re-files the existing tariffs without change, which shall | ||
present the Commission with an opportunity to suspend the | ||
tariffs and consider revenue-neutral tariff changes related to | ||
rate design. | ||
(f) Within 30 days after the filing of a tariff pursuant to | ||
subsection (c) of this Section, each participating utility | ||
shall develop and file with the Commission multi-year metrics | ||
designed to achieve, ratably (i.e., in equal segments) over a | ||
10-year period, improvement over baseline performance values | ||
as follows: | ||
(1) Twenty percent improvement in the System Average | ||
Interruption Frequency Index, using a baseline of the | ||
average of the data from 2001 through 2010. | ||
(2) Fifteen percent improvement in the system Customer | ||
Average Interruption Duration Index, using a baseline of | ||
the average of the data from 2001 through 2010. | ||
(3) For a participating utility other than a | ||
combination utility, 20% improvement in the System Average |
Interruption Frequency Index for its Southern Region, | ||
using a baseline of the average of the data from 2001 | ||
through 2010. For purposes of this paragraph (3) paragraph | ||
(C) , Southern Region shall have the meaning set forth in | ||
the participating utility's most recent report filed | ||
pursuant to Section 16-125 of this Act. | ||
(3.5) For a participating utility other than a | ||
combination utility, 20% improvement in the System Average | ||
Interruption Frequency Index for its Northeastern Region, | ||
using a baseline of the average of the data from 2001 | ||
through 2010. For purposes of this paragraph (3.5), | ||
Northeastern Region shall have the meaning set forth in the | ||
participating utility's most recent report filed pursuant | ||
to Section 16-125 of this Act. | ||
(4) Seventy-five percent improvement in the total | ||
number of customers who exceed the service reliability | ||
targets as set forth in subparagraphs (A) through (C) of | ||
paragraph (4) of subsection (b) of 83 Ill. Admin. Code Part | ||
411.140 as of May 1, 2011, using 2010 as the baseline year. | ||
(5) Reduction in issuance of estimated electric bills: | ||
90% improvement for a participating utility other than a | ||
combination utility, and 56% improvement for a | ||
participating utility that is a combination utility, using | ||
a baseline of the average number of estimated bills for the | ||
years 2008 through 2010. | ||
(6) Consumption on inactive meters: 90% improvement |
for a participating utility other than a combination | ||
utility, and 56% improvement for a participating utility | ||
that is a combination utility, using a baseline of the | ||
average unbilled kilowatthours for the years 2009 and 2010. | ||
(7) Unaccounted for energy: 50% improvement for a | ||
participating utility other than a combination utility | ||
using a baseline of the non-technical line loss unaccounted | ||
for energy kilowatthours for the year 2009. | ||
(8) Uncollectible expense: reduce uncollectible | ||
expense by at least $30,000,000 for a participating utility | ||
other than a combination utility and by at least $3,500,000 | ||
for a participating utility that is a combination utility, | ||
using a baseline of the average uncollectible expense for | ||
the years 2008 through 2010. | ||
(9) Opportunities for minority-owned and female-owned | ||
business enterprises: design a performance metric | ||
regarding the creation of opportunities for minority-owned | ||
and female-owned business enterprises consistent with | ||
State and federal law using a base performance value of the | ||
percentage of the participating utility's capital | ||
expenditures that were paid to minority-owned and | ||
female-owned business enterprises in 2010. | ||
The definitions set forth in 83 Ill. Admin. Code Part | ||
411.20 as of May 1, 2011 shall be used for purposes of | ||
calculating performance under paragraphs (1) through (3.5) (3) | ||
of this subsection (f), provided, however, that the |
participating utility may exclude up to 9 extreme weather event | ||
days from such calculation for each year , and provided further | ||
that the
participating utility shall exclude 9 extreme weather | ||
event days when calculating each year of the baseline period to | ||
the extent that there are 9 such days in a given year of the | ||
baseline period . For purposes of this Section, an extreme | ||
weather event day is a 24-hour calendar day (beginning at 12:00 | ||
a.m. and ending at 11:59 p.m.) during which any weather event | ||
(e.g., storm, tornado) caused interruptions for 10,000 or more | ||
of the participating utility's customers for 3 hours or more. | ||
If there are more than 9 extreme weather event days in a year, | ||
then the utility may choose no more than 9 extreme weather | ||
event days to exclude, provided that the same extreme weather | ||
event days are excluded from each of the calculations performed | ||
under paragraphs (1) through (3.5) (3) of this subsection (f). | ||
The metrics shall include incremental performance goals | ||
for each year of the 10-year period, which shall be designed to | ||
demonstrate that the utility is on track to achieve the | ||
performance goal in each category at the end of the 10-year | ||
period. The utility shall elect when the 10-year period shall | ||
commence for the metrics set forth in subparagraphs (1) through | ||
(4) and (9) of this subsection (f) , provided that it begins no | ||
later than 14 months following the date on which the utility | ||
begins investing pursuant to subsection (b) of this Section , | ||
and when the 10-year period shall commence for the metrics set | ||
forth in subparagraphs (5) through (8) of this subsection (f), |
provided that it begins no later than 14 months following the | ||
date on which the Commission enters its order approving the | ||
utility's Advanced Metering Infrastructure Deployment Plan | ||
pursuant to subsection (c) of Section 16-108.6 of this Act . | ||
The metrics and performance goals set forth in | ||
subparagraphs (5) through (8) of this subsection (f) are based | ||
on the assumptions that the participating utility may fully | ||
implement the technology described in subsection (b) of this | ||
Section, including utilizing the full functionality of such | ||
technology and that there is no requirement for personal | ||
on-site notification. If the utility is unable to meet the | ||
metrics and performance goals set forth in subparagraphs (5) | ||
through (8) of this subsection (f) for such reasons, and the | ||
Commission so finds after notice and hearing, then the utility | ||
shall be excused from compliance, but only to the limited | ||
extent achievement of the affected metrics and performance | ||
goals was hindered by the less than full implementation. | ||
(f-5) The financial penalties applicable to the metrics | ||
described in subparagraphs (1) through (8) of subsection (f) of | ||
this Section, as applicable, shall be applied through an | ||
adjustment to the participating utility's return on equity of | ||
no more than a total of 30 basis points in each of the first 3 | ||
years, of no more than a total of 34 basis points
in each of the | ||
3 years thereafter, and of no more than a total of 38 basis | ||
points in each
of the 4 years thereafter, as follows: | ||
(1) With respect to each of the incremental annual |
performance goals established pursuant to paragraph (1) of | ||
subsection (f) of this Section, | ||
(A) for each year that a participating utility | ||
other than a combination utility does not achieve the | ||
annual goal, the participating utility's return on | ||
equity shall be reduced as
follows: during years 1 | ||
through 3, by 5 basis points ; during years 4 through 6, | ||
by 6 basis points; and during years 7 through 10, by 7 | ||
basis points; for such unachieved goal for the | ||
following 12-month period, and | ||
(B) for each year that a participating utility that | ||
is a combination utility does not achieve the annual | ||
goal, the participating utility's return on equity | ||
shall be reduced as follows: during years 1 through 3, | ||
by 10 basis points ; during years 4 through 6, by 12
| ||
basis points; and during years 7 through 10, by 14 | ||
basis points for each such unachieved goal for the | ||
following 12-month period . | ||
(2) With respect to each of the incremental annual | ||
performance goals established pursuant to paragraph | ||
subparagraphs (2) , (3), and (4) of subsection (f) of this | ||
Section, as applicable, for each year that the | ||
participating utility does not achieve each such goal, the | ||
participating utility's return on equity shall be reduced | ||
as follows: during years 1 through 3, by 5 basis points ; | ||
during years 4
through 6, by 6 basis points; and during |
years 7 through 10, by 7 basis points for each such | ||
unachieved goal for the following 12-month period . | ||
(3) With respect to each of the incremental annual | ||
performance goals established
pursuant to paragraphs (3) | ||
and (3.5) of subsection (f) of this Section, for each year | ||
that a participating utility other than a combination | ||
utility does not achieve both such
goals, the participating | ||
utility's return on equity shall be reduced as follows: | ||
during years 1 through 3, by 5 basis points; during years 4 | ||
through 6, by 6 basis points; and during years 7 through | ||
10, by 7 basis points. | ||
(4) With respect to each of the incremental annual | ||
performance goals established
pursuant to paragraph (4) of | ||
subsection (f) of this Section, for each year that the | ||
participating utility does not achieve each such goal, the | ||
participating utility's return
on equity shall be reduced | ||
as follows: during years 1 through 3, by 5 basis points;
| ||
during years 4 through 6, by 6 basis points; and during | ||
years 7 through 10, by 7 basis points. | ||
(5) With respect to each of the incremental annual | ||
performance goals established pursuant to subparagraph (5) | ||
of subsection (f) of this Section, for each year that the | ||
participating utility does not achieve at least 95% of each | ||
such goal, the participating utility's return on equity | ||
shall be reduced by 5 basis points for each such unachieved | ||
goal for the following 12-month period . |
(6) (3) With respect to each of the incremental annual | ||
performance goals established pursuant to paragraphs (6), | ||
(7), and (8) of subsection (f) of this Section, as | ||
applicable, which together measure non-operational | ||
customer savings and benefits
relating to the | ||
implementation of the Advanced Metering Infrastructure | ||
Deployment
Plan, as defined in Section 16-108.6 of this | ||
Act, the performance under each such goal shall be | ||
calculated in terms of the percentage of the goal achieved. | ||
The percentage of goal achieved for each of the goals shall | ||
be aggregated, and an average percentage value calculated, | ||
for each year of the 10-year period. If the utility does | ||
not achieve an average percentage value in a given year of | ||
at least 95%, the participating utility's return on equity | ||
shall be reduced by 5 basis points for the following | ||
12-month period . | ||
The financial penalties shall be applied as described in | ||
this subsection (f-5) for the 12-month period in which the | ||
deficiency occurred through a separate tariff mechanism, which | ||
shall be filed by the utility together with its metrics. In the | ||
event the formula rate tariff established pursuant to | ||
subsection (c) of this Section terminates, the utility's | ||
obligations under subsection (f) of this Section and this | ||
subsection (f-5) shall also terminate, provided, however, that | ||
the tariff mechanism established pursuant to subsection (f) of | ||
this Section and this subsection (f-5) shall remain in effect |
until any penalties due and owing at the time of such | ||
termination are applied. | ||
The Commission shall, after notice and hearing, enter an | ||
order within 120 days after the metrics are filed approving, or | ||
approving with modification, a participating utility's tariff | ||
or mechanism to satisfy the metrics set forth in subsection (f) | ||
of this Section. On June 1 of each subsequent year, each | ||
participating utility shall file a report with the Commission | ||
that includes, among other things, a description of how the | ||
participating utility performed under each metric and an | ||
identification of any extraordinary events that adversely | ||
impacted the utility's performance. Whenever a participating | ||
utility does not satisfy the metrics required pursuant to | ||
subsection (f) of this Section, the Commission shall, after | ||
notice and hearing, enter an order approving financial | ||
penalties in accordance with this subsection (f-5). The | ||
Commission-approved financial penalties shall be applied | ||
beginning with the next rate year. Nothing in this Section | ||
shall authorize the Commission to reduce or otherwise obviate | ||
the imposition of financial penalties for failing to achieve | ||
one or more of the metrics established pursuant to subparagraph | ||
(1) through (4) of subsection (f) of this Section. | ||
(g) On or before July 31, 2014, each participating utility | ||
shall file a report with the Commission that sets forth the | ||
average annual increase in the average amount paid per | ||
kilowatthour for residential eligible retail customers, |
exclusive of the effects of energy efficiency programs, | ||
comparing the 12-month period ending May 31, 2012; the 12-month | ||
period ending May 31, 2013; and the 12-month period ending May | ||
31, 2014. For a participating utility that is a combination | ||
utility with more than one rate zone, the weighted average | ||
aggregate increase shall be provided. The report shall be filed | ||
together with a statement from an independent auditor attesting | ||
to the accuracy of the report. The cost of the independent | ||
auditor shall be borne by the participating utility and shall | ||
not be a recoverable expense. | ||
In the event that the average annual increase exceeds 2.5% | ||
as calculated pursuant to this subsection (g), then Sections | ||
16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other | ||
than this subsection, shall be inoperative as they relate to | ||
the utility and its service area as of the date of the report | ||
due to be submitted pursuant to this subsection and the utility | ||
shall no longer be eligible to annually update the | ||
performance-based formula rate tariff pursuant to subsection | ||
(d) of this Section. In such event, the then current rates | ||
shall remain in effect until such time as new rates are set | ||
pursuant to Article IX of this Act, subject to retroactive | ||
adjustment, with interest, to reconcile rates charged with | ||
actual costs, and the participating utility's voluntary | ||
commitments and obligations under subsection (b) of this | ||
Section shall immediately terminate, except for the utility's | ||
obligation to pay an amount already owed to the fund for |
training grants pursuant to a Commission order issued under | ||
subsection (b) of this Section. | ||
In the event that the average annual increase is 2.5% or | ||
less as calculated pursuant to this subsection (g), then the | ||
performance-based formula rate shall remain in effect as set | ||
forth in this Section. | ||
For purposes of this Section, the amount per kilowatthour | ||
means the total amount paid for electric service expressed on a | ||
per kilowatthour basis, and the total amount paid for electric | ||
service includes without limitation amounts paid for supply, | ||
transmission, distribution, surcharges, and add-on taxes | ||
exclusive of any increases in taxes or new taxes imposed after | ||
the effective date of this amendatory Act of the 97th General | ||
Assembly. For purposes of this Section, "eligible retail | ||
customers" shall have the meaning set forth in Section 16-111.5 | ||
of this Act. | ||
The fact that this Section becomes inoperative as set forth | ||
in this subsection shall not be construed to mean that the | ||
Commission may reexamine or otherwise reopen prudence or | ||
reasonableness determinations already made. | ||
(h) Sections 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of | ||
this Act, other than this subsection, are inoperative after | ||
December 31, 2017 for every participating utility, after which | ||
time a participating utility shall no longer be eligible to | ||
annually update the performance-based formula rate tariff | ||
pursuant to subsection (d) of this Section. At such time, the |
then current rates shall remain in effect until such time as | ||
new rates are set pursuant to Article IX of this Act, subject | ||
to retroactive adjustment, with interest, to reconcile rates | ||
charged with actual costs. | ||
By December 31, 2017, the Commission shall prepare and file | ||
with the General Assembly a report on the infrastructure | ||
program and the performance-based formula rate. The report | ||
shall include the change in the average amount per kilowatthour | ||
paid by residential customers between June 1, 2011 and May 31, | ||
2017. If the change in the total average rate paid exceeds 2.5% | ||
compounded annually, the Commission shall include in the report | ||
an analysis that shows the portion of the change due to the | ||
delivery services component and the portion of the change due | ||
to the supply component of the rate. The report shall include | ||
separate sections for each participating utility. | ||
In the event Sections 16-108.5, 16-108.6, 16-108.7, and | ||
16-108.8 of this Act do not become inoperative after December | ||
31, 2017, then these Sections are inoperative after December | ||
31, 2022 for every participating utility, after which time a | ||
participating utility shall no longer be eligible to annually | ||
update the performance-based formula rate tariff pursuant to | ||
subsection (d) of this Section. At such time, the then current | ||
rates shall remain in effect until such time as new rates are | ||
set pursuant to Article IX of this Act, subject to retroactive | ||
adjustment, with interest, to reconcile rates charged with | ||
actual costs. |
The fact that this Section becomes inoperative as set forth | ||
in this subsection shall not be construed to mean that the | ||
Commission may reexamine or otherwise reopen prudence or | ||
reasonableness determinations already made. | ||
(i) While a participating utility may use, develop, and | ||
maintain broadband systems and the delivery of broadband | ||
services, voice-over-internet-protocol services, | ||
telecommunications services, and cable and video programming | ||
services for use in providing delivery services and Smart Grid | ||
functionality or application to its retail customers, | ||
including, but not limited to, the installation, | ||
implementation and maintenance of Smart Grid electric system | ||
upgrades as defined in Section 16-108.6 of this Act, a | ||
participating utility is prohibited from offering to its retail | ||
customers broadband services or the delivery of broadband | ||
services, voice-over-internet-protocol services, | ||
telecommunications services, or cable or video programming | ||
services, unless they are part of a service directly related to | ||
delivery services or Smart Grid functionality or applications | ||
as defined in Section 16-108.6 of this Act, and from recovering | ||
the costs of such offerings from retail customers. | ||
(j) Nothing in this Section is intended to legislatively | ||
overturn the opinion issued in Commonwealth Edison Co. v. Ill. | ||
Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137, | ||
1-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App. | ||
Ct. 2d Dist. Sept. 30, 2010). This amendatory Act of the 97th |
General Assembly shall not be construed as creating a contract | ||
between the General Assembly and the participating utility, and | ||
shall not establish a property right in the participating | ||
utility.
| ||
(Source: 09700SB1652enr.)
| ||
(220 ILCS 5/16-108.6) | ||
Sec. 16-108.6. Provisions relating to Smart Grid Advanced | ||
Metering Infrastructure Deployment Plan. | ||
(a) For purposes of this Section and Sections 16-108.7 and | ||
16-108.8 of this Act: | ||
"Advanced Metering Infrastructure" or "AMI" means the | ||
communications hardware and software and associated system | ||
software that enables Smart Grid functions by creating a | ||
network between advanced meters and utility business systems | ||
and allowing collection and distribution of information to | ||
customers and other parties in addition to providing | ||
information to the utility itself. | ||
"Cost-beneficial" means a determination that the benefits | ||
of a participating utility's Smart Grid AMI Deployment Plan | ||
exceed the costs of the Smart Grid AMI Deployment Plan as | ||
initially filed with the Commission or as subsequently modified | ||
by the Commission. This standard is met if the present value of | ||
the total benefits of the Smart Grid AMI Deployment Plan | ||
exceeds the present value of the total costs of the Smart Grid | ||
AMI Deployment Plan. The total cost shall include all utility |
costs reasonably associated with the Smart Grid AMI Deployment | ||
Plan. The total benefits shall include the sum of avoided | ||
electricity costs, including avoided utility operational | ||
costs, avoided consumer power, capacity, and energy costs, and | ||
avoided societal costs associated with the production and | ||
consumption of electricity, as well as other societal benefits, | ||
including the greater integration of renewable and distributed | ||
power resources, reductions in the emissions of harmful | ||
pollutants and associated avoided health-related costs, other | ||
benefits associated with energy efficiency measures, | ||
demand-response activities, and the enabling of greater | ||
penetration of alternative fuel vehicles. | ||
"Participating utility" has the meaning set forth in | ||
Section 16-108.5 of this Act. | ||
"Smart Grid" means investments and policies that together | ||
promote one or more of the following goals: | ||
(1) Increased use of digital information and controls | ||
technology to improve reliability, security, and | ||
efficiency of the electric grid. | ||
(2) Dynamic optimization of grid operations and | ||
resources, with full cyber security. | ||
(3) Deployment and integration of distributed | ||
resources and generation, including renewable resources. | ||
(4) Development and incorporation of demand-response, | ||
demand-side resources, and energy efficiency resources. | ||
(5) Deployment of "smart" technologies (real-time, |
automated, interactive technologies that optimize the | ||
physical operation of appliances and consumer devices) for | ||
metering, communications concerning grid operations and | ||
status, and distribution automation. | ||
(6) Integration of "smart" appliances and consumer | ||
devices. | ||
(7) Deployment and integration of advanced electricity | ||
storage and peak-shaving technologies, including plug-in | ||
electric and hybrid electric vehicles, thermal-storage air | ||
conditioning and renewable energy generation. | ||
(8) Provision to consumers of timely information and | ||
control options. | ||
(9) Development of open access standards for | ||
communication and interoperability of appliances and | ||
equipment connected to the electric grid, including the | ||
infrastructure serving the grid. | ||
(10) Identification and lowering of unreasonable or | ||
unnecessary barriers to adoption of Smart Grid | ||
technologies, practices, services, and business models | ||
that support energy efficiency, demand-response, and | ||
distributed generation. | ||
"Smart Grid Advisory Council" means the group of | ||
stakeholders formed pursuant to subsection (b) of this Section | ||
for the purposes of advising and working with participating | ||
utilities on the development and implementation of a Smart Grid | ||
Advanced Metering Infrastructure Deployment Plan. |
"Smart Grid electric system upgrades" means any of the | ||
following: | ||
(1) metering devices, sensors, control devices, and | ||
other devices integrated with and attached to an electric | ||
utility system that are capable of engaging in Smart Grid | ||
functions; | ||
(2) other monitoring and communications devices that | ||
enable Smart Grid functions, including, but not limited to, | ||
distribution automation; | ||
(3) software that enables devices or computers to | ||
engage in Smart Grid functions; | ||
(4) associated cyber secure data communication | ||
network, including enhancements to cyber-security | ||
technologies and measures; | ||
(5) substation micro-processor relay upgrades; | ||
(6) devices that allow electric or hybrid-electric | ||
vehicles to engage in Smart Grid functions; or | ||
(7) devices that enable individual consumers to | ||
incorporate distributed and micro-generation. | ||
"Smart Grid electric system upgrades" does not include | ||
expenditures for: (1) electricity generation, transmission, or | ||
distribution infrastructure or equipment that does not | ||
directly relate to or support installing, implementing or | ||
enabling Smart Grid functions; (2) physical interconnection of | ||
generators or other devices to the grid except those that are | ||
directly related to enabling Smart Grid functions; or (3) |
ongoing or routine operation, billing, customer relations, | ||
security, and maintenance. | ||
"Smart Grid functions" means: | ||
(1) the ability to develop, store, send, and receive | ||
digital information concerning or enabling grid | ||
operations, electricity use, costs, prices, time of use, | ||
nature of use, storage, or other information relevant to | ||
device, grid, or utility operations, to or from or by means | ||
of the electric utility system through one or a combination | ||
of devices and technologies; | ||
(2) the ability to develop, store, send, and receive | ||
digital information concerning electricity use, costs, | ||
prices, time of use, nature of use, storage, or other | ||
information relevant to device, grid, or utility | ||
operations to or from a computer or other control device; | ||
(3) the ability to measure or monitor electricity use | ||
as a function of time of day, power quality characteristics | ||
such as voltage level, current, cycles per second, or | ||
source or type of generation and to store, synthesize, or | ||
report that information by digital means; | ||
(4) the ability to sense and localize disruptions or | ||
changes in power flows on the grid and communicate such | ||
information instantaneously and automatically for purposes | ||
of enabling automatic protective responses to sustain | ||
reliability and security of grid operations; | ||
(5) the ability to detect, prevent, communicate with |
regard to, respond to, or recover from system security | ||
threats, including cyber-security threats and terrorism, | ||
using digital information, media, and devices; | ||
(6) the ability of any device or machine to respond to | ||
signals, measurements, or communications automatically or | ||
in a manner programmed by its owner or operator without | ||
independent human intervention; | ||
(7) the ability to use digital information to operate | ||
functionalities on the electric utility grid that were | ||
previously electro-mechanical or manual; | ||
(8) the ability to use digital controls to manage and | ||
modify electricity demand, enable congestion management, | ||
assist in voltage control, provide operating reserves, and | ||
provide frequency regulation; or | ||
(9) the ability to integrate electric plug-in | ||
vehicles, distributed generation, and storage in a safe and | ||
cost-effective manner on the electric grid. | ||
(b) Within 30 days after the effective date of this | ||
amendatory Act of the 97th General Assembly, the Smart Grid | ||
Advisory Council shall be established, which shall consist of 9 | ||
7 total voting members with each member possessing either | ||
technical, business or consumer expertise in Smart Grid issues , | ||
5 of whom shall be appointed by and each having been the single | ||
appointment of one of the following: the Governor, one of whom | ||
shall be appointed by the Speaker of the House, one of whom | ||
shall be appointed by the Minority Leader of the House, one of |
whom shall be appointed by the President of the Senate, and one | ||
of whom shall be appointed by the Minority Leader of the | ||
Senate . Of the Governor's 5 appointments: (i) at least one must | ||
represent a non-profit membership organization whose mission | ||
is to cultivate innovation and technology-based economic | ||
development in Illinois by fostering public-private | ||
partnerships to develop and execute research and development | ||
projects, advocating for funding for research and development | ||
initiatives, and collaborating with public and private | ||
partners to attract and retain research and development | ||
resources and talent in Illinois; (ii) at least one must | ||
represent a non-profit public body corporate and politic | ||
created by law that has a duty to represent and protect | ||
residential utility consumers in Illinois; (iii) at least one | ||
must represent a membership organization that represents the | ||
interests of individuals and companies that own, operate, | ||
manage, and service commercial buildings in a municipality with | ||
a population of 1,000,000 or more inhabitants; and (iv) at | ||
least one must represent an alternative retail electric | ||
supplier that has obtained a certificate of service authority | ||
pursuant to Section 16-115 of this Act
and that is not an | ||
affiliate of a participating utility prior to one year after | ||
the effective date of this amendatory Act of the 97th General | ||
Assembly , the Illinois Science and Technology Coalition, and | ||
the Citizens Utility Board . | ||
The Governor shall designate one of the members of the |
Council to serve as chairman, and that person shall serve as | ||
the chairman at the pleasure of the Governor. The members shall | ||
not be compensated for serving on the Smart Grid Advisory | ||
Council. The Smart Grid Advisory Council shall have the | ||
following duties: | ||
(1) Serve as an advisor to participating utilities | ||
subject to this Section and in the manner described in this | ||
Section, and the recommendations provided by the Council, | ||
although non-binding, shall be considered by the | ||
utilities. | ||
(2) Serve as trustees of the trust or foundation | ||
established pursuant to Section 16-108.7 of this Act with | ||
the duties enumerated thereunder. | ||
(c) After consultation with the Smart Grid Advisory | ||
Council, each participating utility shall file a Smart Grid | ||
Advanced Metering Infrastructure Deployment Plan ("AMI Plan") | ||
with the Commission within 180 days after the effective date of | ||
this amendatory Act of the 97th General Assembly or by November | ||
1, 2011, whichever is later, or in the case of a combination | ||
utility as defined in Section 16-108.5, by April 1, 2012, | ||
provided that a participating utility shall not file its plan | ||
until the evaluation report on the Pilot Program described in | ||
this subsection (c) is issued. The AMI Plan shall provide for | ||
investment over a 10-year period that is sufficient to | ||
implement the AMI Plan across its entire service territory in a | ||
manner that is consistent with subsection (b) of Section |
16-108.5 of this Act. The AMI Plan shall contain: | ||
(1) the participating utility's Smart Grid AMI vision | ||
statement that is consistent with the goal of developing a | ||
cost-beneficial Smart Grid; | ||
(2) a statement of Smart Grid AMI strategy that | ||
includes a description of how the utility evaluates and | ||
prioritizes technology choices to create customer value, | ||
including a plan to enhance and enable customers' ability | ||
to take advantage of Smart Grid functions beginning at the | ||
time an account has billed successfully on the AMI network; | ||
(3) a deployment schedule and plan that includes | ||
deployment of AMI to all customers for a participating | ||
utility other than a combination utility, and to 62% of all | ||
customers for a participating utility that is a combination | ||
utility; | ||
(4) annual milestones and metrics for the purposes of | ||
measuring the success of the AMI Plan in enabling Smart | ||
Grid functions; and enhancing consumer benefits from Smart | ||
Grid AMI; and | ||
(5) a plan for the consumer education to be implemented | ||
by the participating utility. | ||
The AMI Plan shall be fully consistent with the standards | ||
of the National Institute of Standard and Technology (NIST) for | ||
Smart Grid interoperability that are in effect at the time the | ||
participating utility files its AMI Plan, shall include open | ||
standards and internet protocol to the maximum extent possible |
consistent with cyber security, and shall maximize, to the | ||
extent possible, a flexible smart meter platform that can | ||
accept remote device upgrades and contain sufficient internal | ||
memory capacity for additional storage capabilities, functions | ||
and services without the need for physical access to the meter. | ||
The AMI Plan shall secure the privacy of personal | ||
information and establish the right of consumers to consent to | ||
the disclosure of personal energy information to third parties | ||
through electronic, web-based, and other means in accordance | ||
with State and federal law and regulations regarding consumer | ||
privacy and protection of consumer data. | ||
After notice and hearing, the Commission shall, within 60 | ||
days of the filing of an AMI Plan, issue its order approving, | ||
or approving with modification, the AMI Plan if the Commission | ||
finds that the AMI Plan contains the information required in | ||
paragraphs (1) through (5) of this subsection (c) and further | ||
finds that the implementation of the AMI Plan will be | ||
cost-beneficial consistent with the principles established | ||
through the Illinois Smart Grid Collaborative, giving weight to | ||
the results of any Commission-approved pilot designed to | ||
examine the benefits and costs of AMI deployment. A | ||
participating utility's decision to invest pursuant to an AMI | ||
Plan approved by the Commission shall not be subject to | ||
prudence reviews in subsequent Commission proceedings. Nothing | ||
in this subsection (c) is intended to limit the Commission's | ||
ability to review the reasonableness of the costs incurred |
under the AMI Plan. A participating utility shall be allowed to | ||
recover the reasonable costs it incurs in implementing a | ||
Commission-approved AMI Plan, including the costs of retired | ||
meters, and may recover such costs through its tariffs, | ||
including the performance-based formula rate tariff approved | ||
pursuant to subsection (c) of Section 16-108.5 of this Act. | ||
(d) The AMI Plan shall secure the privacy of the customer's | ||
personal information. "Personal information" for this purpose | ||
consists of the customer's name, address, telephone number, and | ||
other personally identifying information, as well as | ||
information about the customer's electric usage. Electric | ||
utilities, their contractors or agents, and any third party who | ||
comes into possession of such personal information by virtue of | ||
working on Smart Grid technology shall not disclose such | ||
personal information to be used in mailing lists or to be used | ||
for other commercial purposes not reasonably related to the | ||
conduct of the utility's business. Electric utilities shall | ||
comply with the consumer privacy requirements of the Personal | ||
Information Protection Act. In the event a participating | ||
utility receives revenues from the sale of information obtained | ||
through Smart Grid technology that is not personal information, | ||
the participating utility shall use such revenues to offset the | ||
revenue requirement. | ||
(e) On April 1 of each year beginning in 2013 and after | ||
consultation with the Smart Grid Advisory Council, each | ||
participating utility shall submit a report regarding the |
progress it has made toward completing implementation of its | ||
AMI Plan. This report shall: | ||
(1) describe the AMI investments made during the prior | ||
12 months and the AMI investments planned to be made in the | ||
following 12 months; | ||
(2) provide sufficient detail to determine the | ||
utility's progress in meeting the metrics and milestones | ||
identified by the utility in its AMI Plan; and | ||
(3) identify any updates to the AMI Plan. | ||
Within 21 days after the utility files its annual report, | ||
the Commission shall have authority, either upon complaint or | ||
its own initiative, but with reasonable notice, to enter upon | ||
an investigation regarding the utility's progress in | ||
implementing the AMI Plan as described in paragraph (1) of this | ||
subsection (e). If the Commission finds, after notice and | ||
hearing, that the participating utility's progress in | ||
implementing the AMI Plan is materially deficient for the given | ||
plan year, then the Commission shall issue an order requiring | ||
the participating utility to devise a corrective action plan, | ||
subject to Commission approval and oversight, to bring | ||
implementation back on schedule consistent with the AMI Plan. | ||
The Commission's order must be entered within 90 days after the | ||
utility files its annual report. If the Commission does not | ||
initiate an investigation within 21 days after the utility | ||
files its annual report, then the filing shall be deemed | ||
accepted by the Commission. The utility shall not be required |
to suspend implementation of its AMI Plan during any Commission | ||
investigation. | ||
The participating utility's annual report regarding AMI | ||
Plan year 10 shall contain a statement verifying that the | ||
implementation of its AMI Plan is complete, provided, however, | ||
that if the utility is subject to a corrective action plan that | ||
extends the implementation period beyond 10 years, the utility | ||
shall include the verification statement in its final annual | ||
report. Following the date of a Commission order approving the | ||
final annual report or the date on which the final report is | ||
deemed accepted by the Commission, the utility's annual | ||
reporting obligations under this subsection (d) shall | ||
terminate, provided, however, that the utility shall have a | ||
continuing obligation to provide information, upon request, to | ||
the Commission and Smart Grid Advisory Council regarding the | ||
AMI Plan. | ||
(f) Each participating utility shall pay a pro rata share, | ||
based on number of customers, of $5,000,000 per year to the | ||
trust or foundation established pursuant to Section 16-108.7 of | ||
this Act for each plan year of the AMI Plan, which shall be | ||
used for purposes of providing customer education regarding | ||
smart meters and related consumer-facing technologies and | ||
services and 70% of which shall be a recoverable expense; | ||
provided that other reasonable amounts expended by the utility | ||
for such consumer education shall not be subject to the 70% | ||
limitation of this subsection. |
(g) Within 60 days after the Commission approves a | ||
participating utility's AMI Plan pursuant to subsection (c) of | ||
this Section, the participating utility, after consultation | ||
with the Smart Grid Advisory Council, shall file a proposed | ||
tariff with the Commission that offers an opt-in market-based | ||
peak time rebate program to all residential retail customers | ||
with smart meters that is designed to provide, in a | ||
competitively neutral manner, rebates to those residential | ||
retail customers that curtail their use of electricity during | ||
specific periods that are identified as peak usage periods. The | ||
total amount of rebates shall be the amount of compensation the | ||
utility obtains through markets or programs at the applicable | ||
regional transmission organization. The utility shall make all | ||
reasonable attempts to secure funding for the peak time rebate | ||
program through markets or programs at the applicable regional | ||
transmission organization. The rules and procedures for | ||
consumers to opt-in to the peak time rebate program shall | ||
include electronic sign-up, be designed to maximize | ||
participation, and be included on the utility's website. The | ||
Commission shall monitor the performance of programs | ||
established pursuant to this subsection (g) and shall order the | ||
termination or modification of a program if it determines that | ||
the program is not, after a reasonable period of time for | ||
development of at least 4 years, resulting in net benefits to | ||
the residential customers of the participating utility. | ||
(h) If Section 16-108.5 of this Act becomes inoperative |
with respect to one or more participating utilities as set | ||
forth in subsection (g) or (h) of that Section, then Sections | ||
16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act shall | ||
become inoperative as to each affected utility and its service | ||
area on the same date as Section 16-108.5 becomes inoperative.
| ||
(Source: 09700SB1652enr.)
| ||
(220 ILCS 5/16-108.7) | ||
Sec. 16-108.7. Illinois Science and Energy Innovation | ||
Trust. | ||
(a) Within 90 days of the effective date of this amendatory | ||
Act of the 97th General Assembly, the members of the Smart Grid | ||
Advisory Council established pursuant to Section 16-108.6 of | ||
this Act, or a majority of the members thereof, shall cause to | ||
be established an Illinois science and energy innovation trust | ||
or foundation for the purposes of providing financial and | ||
technical support and assistance to entities, public or | ||
private, within the State of Illinois including, but not | ||
limited to, units of State and local government, educational | ||
and research institutions, corporations, and charitable, | ||
educational, environmental and community organizations, for | ||
programs and projects that support, encourage or utilize | ||
innovative technologies or other methods of modernizing the | ||
State's electric grid that will benefit the public by promoting | ||
economic development in Illinois. Such activities shall be | ||
supported through grants, loans, contracts, or other programs |
designed to assist and further benefit technological advances | ||
in the area of electric grid modernization and operation. The | ||
trust or foundation shall also be eligible for receipt of other | ||
energy and environmental grant opportunities, from public or | ||
private sources. The trust or foundation shall not be a | ||
governmental entity. | ||
(b) Funds received by the trust or foundation pursuant to | ||
subsection (f) of Section 16-108.6 of this Act shall be used | ||
solely for the purpose of providing consumer education | ||
regarding smart meters and related consumer-facing | ||
technologies and services and the peak time rebate program | ||
described in subsection (g) of Section 16-108.6 of this Act. | ||
Thirty percent of such funds received from each participating | ||
utility shall be used by the trust or foundation for purposes | ||
of providing such education to each participating utility's | ||
low-income retail customers, including low-income senior | ||
citizens. | ||
The trust or foundation shall use all funds received | ||
pursuant to subsection (f) of Section 16-108.6 of this Act in a | ||
manner that reflects the unique needs and characteristics of | ||
each participating utility's service territory and in | ||
proportion to each participating utility's payment. | ||
(c) Such trust or foundation shall be governed by a | ||
declaration of trust or articles of incorporation and bylaws | ||
which shall, at a minimum, provide the following: | ||
(1) There shall initially be 9 7 trustees of the trust |
or foundation, which shall consist of the members of the | ||
Smart Grid Advisory Council established pursuant to | ||
Section 16-108.6 of this Act. Subsequently, the | ||
participating utilities shall appoint one trustee and the | ||
Clean Energy Trust shall appoint one non-voting trustee who | ||
shall provide expertise regarding early stage investment | ||
in Smart Grid projects. | ||
(2) All trustees shall be entitled to reimbursement for | ||
reasonable expenses incurred on behalf of the trust in the | ||
performance of their duties as trustees. All such | ||
reimbursements shall be paid out of the trust. | ||
(3) Trustees shall be appointed within 60 days after | ||
the creation of the trust or foundation and shall serve for | ||
a term of 5 years commencing upon the date of their | ||
respective appointments, until their respective successors | ||
are appointed and qualified. | ||
(4) A vacancy in the office of trustee shall be filled | ||
by the person holding the office responsible for appointing | ||
the trustee whose death or resignation creates the vacancy, | ||
and a trustee appointed to fill a vacancy shall serve the | ||
remainder of the term of the trustee whose resignation or | ||
death created the vacancy. | ||
(5) The trust or foundation shall have an indefinite | ||
term and shall terminate at such time as no trust assets | ||
remain. | ||
(6) The allocation and disbursement of funds for the |
various purposes for which the trust or foundation is | ||
established shall be determined by the trustees in | ||
accordance with the declaration of trust or the articles of | ||
incorporation and bylaws. | ||
(7) The trust or foundation shall be authorized to | ||
employ an executive director and other employees, or | ||
contract management of the trust or foundation in its | ||
entirety to an outside organization found suitable by the | ||
trustees, to enter into leases, contracts and other | ||
obligations on behalf of the trust or foundation, and to | ||
incur expenses that the trustees deem necessary or | ||
appropriate for the fulfillment of the purposes for which | ||
the trust or foundation is established, provided, however, | ||
that salaries and administrative expenses incurred on | ||
behalf of the trust or foundation shall not exceed 3% of | ||
the trust's principal value, or $750,000, whichever is | ||
greater, in any given year. The trustees shall not be | ||
compensated by the trust or foundation. | ||
(8) The trustees may create and appoint advisory boards | ||
or committees to assist them with the administration of the | ||
trust or foundation, and to advise and make recommendations | ||
to them regarding the contribution and disbursement of the | ||
trust or foundation funds. | ||
(9) All funds dispersed by the trust or foundation for | ||
programs and projects to meet the objectives of the trust | ||
or foundation as enumerated in this Section shall be |
subject to a peer-review process as determined by the | ||
trustees. This process shall be designed to determine, in | ||
an objective and unbiased manner, those programs and | ||
projects that best fit the objectives of the trust or | ||
foundation. In each fiscal year the trustees shall | ||
determine, based solely on the information provided | ||
through the peer-review process, a budget for programs and | ||
projects for that fiscal year. | ||
(10) The trustees shall administer a Smart Grid | ||
education fund from which it shall make grants to qualified | ||
not-for-profit organizations for the purpose of educating | ||
customers with regard to smart meters and related | ||
consumer-facing technologies and services. In making such | ||
grants the trust or foundation shall strongly encourage | ||
grantees to coordinate to the extent practicable and | ||
consider recommendations from the participating utilities | ||
regarding the development and implementation of customer | ||
education plans. | ||
(11) One of the objectives of the trust or foundation | ||
is to remain self-funding. In order to meet this objective, | ||
the trustees may sign agreements with those entities | ||
receiving funding that provide for license fees, | ||
royalties, or other payments to the trust or foundation | ||
from such entities that receive support for their product | ||
development from the trust or foundation. Such payments, | ||
however, shall be contingent on the commercialization of |
such products, services, or technologies enabled by the | ||
funding provided by the trust or foundation. | ||
(d) The trustees shall notify each participating utility as | ||
defined in Section 16-108.5 of this Act of the formation of the | ||
trust or foundation. Within 90 days after receipt of the | ||
notification, each participating utility that is not a | ||
combination utility as defined in Section 16-108.5 of this Act | ||
shall contribute $15,000,000 to the trust or foundation, and | ||
each participating utility that is a combination utility, as | ||
defined in Section 16-108.5 of this Act, shall contribute | ||
$7,500,000 to the trust or foundation established pursuant to | ||
this Section. Such contributions shall not be a recoverable | ||
expense. | ||
(e) If Section 16-108.5 of this Act becomes inoperative | ||
with respect to one or more participating utilities as set | ||
forth in subsection (g) or (h) of that Section, then Sections | ||
16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act shall | ||
become inoperative as to each affected utility and its service | ||
area on the same date as Section 16-108.5 becomes inoperative.
| ||
(Source: 09700SB1652enr.)
| ||
(220 ILCS 5/16-128)
| ||
Sec. 16-128. Provisions related to utility employees
| ||
during the mandatory transition period . | ||
(a) The General Assembly finds:
| ||
(1) The reliability and safety of the electric system |
has depended and depends on a
workforce of skilled and | ||
dedicated employees, equipped with technical training
and | ||
experience.
| ||
(2) The integrity and reliability of the system also | ||
requires the
industry's commitment to invest in regular | ||
inspection and maintenance, to
assure that it can withstand | ||
the demands of heavy service requirements and
emergency | ||
situations.
| ||
(3) It is in the State's interest to protect the | ||
interests of utility
employees who have and continue to | ||
dedicate themselves to assuring reliable service to the
| ||
citizens of this State, and who might otherwise be | ||
economically displaced in a
restructured industry.
| ||
The General Assembly further finds that it is
necessary to | ||
assure that employees of electric utilities and employees of | ||
contractors or subcontractors performing work on behalf of an | ||
electric utility operating in the
deregulated industry have the | ||
requisite skills, knowledge, training, experience, and
| ||
competence to provide reliable and safe electrical service | ||
under this Act.
| ||
The General Assembly also finds that it is necessary to | ||
assure that employees of alternative retail electric suppliers | ||
and employees of contractors or subcontractors performing work | ||
on behalf of an alternative retail electric supplier operating | ||
in the deregulated industry have the requisite skills, | ||
knowledge, training, experience, and competence to provide |
reliable and safe electrical service under this Act. | ||
To ensure that these findings and prerequisites for | ||
reliable and safe electrical service continue to prevail, each | ||
alternative retail electric supplier, electric utility, and | ||
contractors and subcontractors performing work on behalf of an | ||
electric utility or alternative retail electric supplier must | ||
demonstrate the competence of their respective employees to | ||
work on the distribution system. | ||
The knowledge, skill, training, experience, and competence | ||
levels to be
demonstrated shall be consistent with those | ||
required
of or by the electric utilities in this State as of | ||
January 1, 2007, with respect to
their employees and employees | ||
of contractors or subcontractors performing work on their | ||
behalf. Nothing in this Section shall prohibit an electric | ||
utility from establishing knowledge, skill, training, | ||
experience, and competence levels greater than those required | ||
as of January 1, 2007.
| ||
An adequate demonstration of requisite knowledge, skill, | ||
training, experience, and
competence shall include, at a | ||
minimum, completion or current participation and ultimate | ||
completion by the
employee of an accredited or otherwise | ||
recognized
apprenticeship program for the particular craft, | ||
trade or
skill, or specified and several years of employment | ||
performing a particular work function that is utilized by an | ||
electric utility.
| ||
Notwithstanding any law, tariff, Commission rule, order, |
or decision to the contrary, the Commission shall have an | ||
affirmative statutory obligation to ensure that an electric | ||
utility is employing employees, contractors, and | ||
subcontractors with employees who meet the requirements of | ||
subsection (a) of this Section when installing, constructing, | ||
operating, and maintaining generation, transmission, or | ||
distribution facilities and equipment within this State | ||
pursuant to any provision in this Act or any Commission order, | ||
rule, or decision. | ||
For purposes of this Section, "distribution facilities and | ||
equipment" means any and all of the facilities and equipment, | ||
including, but not limited to, substations, distribution | ||
feeder circuits, switches, meters, protective equipment, | ||
primary circuits, distribution transformers, line extensions | ||
and service extensions both above or below ground, conduit, | ||
risers, elbows, transformer pads, junction boxes, manholes, | ||
pedestals, conductors, and all associated fittings that | ||
connect the transmission or distribution system to either the | ||
weatherhead on the retail customer's building or other | ||
structure for above ground service or to the terminals on the | ||
meter base of the retail customer's building or other structure | ||
for below ground service. | ||
To implement this requirement for alternative retail | ||
electric suppliers, the Commission, in
determining that an | ||
applicant meets the standards for
certification as an | ||
alternative retail electric supplier,
shall require the |
applicant to demonstrate (i) that the
applicant is licensed to | ||
do business, and bonded, in the State
of Illinois; and (ii) | ||
that the employees of the applicant that
will be installing, | ||
operating, and maintaining generation,
transmission, or | ||
distribution facilities within this State, or
any entity with | ||
which the applicant has contracted to perform
those functions | ||
within this State, have the requisite knowledge, skills, | ||
training, experience, and
competence to perform those | ||
functions in a safe and
responsible manner in order to provide | ||
safe and reliable
service, in accordance with the criteria | ||
stated above.
| ||
(b) The General Assembly finds, based on experience in
| ||
other industries that have undergone similar transitions, that
| ||
the introduction of competition into the State's electric
| ||
utility industry may result in workforce reductions by
electric | ||
utilities which may adversely affect persons who have
been | ||
employed by this State's electric utilities in functions
| ||
important to the public convenience and welfare. The General
| ||
Assembly further finds that the impacts on employees and their
| ||
communities of any necessary reductions in the utility
| ||
workforce directly caused by this restructuring of the
electric | ||
industry shall be mitigated to the extent
practicable through | ||
such means as offers of voluntary
severance, retraining, early | ||
retirement, outplacement and
related benefits. Therefore, | ||
before any such reduction in the
workforce during the | ||
transition period, an electric utility
shall present to its |
employees or their representatives a
workforce reduction plan | ||
outlining the means by which the
electric utility intends to | ||
mitigate the impact of such
workforce reduction on its | ||
employees.
| ||
(c) In the event of a sale, purchase, or any other transfer
| ||
of ownership during the mandatory transition period of one or
| ||
more Illinois divisions or business units, and/or generating
| ||
stations or generating units, of an electric utility, the
| ||
electric utility's contract and/or agreements with the
| ||
acquiring entity or persons shall require that the entity or
| ||
persons hire a sufficient number of non-supervisory employees
| ||
to operate and maintain the station, division or unit by
| ||
initially making offers of employment to the non-supervisory
| ||
workforce of the electric utility's division, business unit,
| ||
generating station and/or generating unit at no less than the
| ||
wage rates, and substantially equivalent fringe benefits and
| ||
terms and conditions of employment that are in effect at the
| ||
time of transfer of ownership of said division, business unit,
| ||
generating station, and/or generating units; and said wage
| ||
rates and substantially equivalent fringe benefits and terms
| ||
and conditions of employment shall continue for at least 30
| ||
months from the time of said transfer of ownership unless the
| ||
parties mutually agree to different terms and conditions of
| ||
employment within that 30-month period. The utility shall
offer | ||
a transition plan to those employees who are not offered
jobs | ||
by the acquiring entity because that entity has a need
for |
fewer workers. If there is litigation concerning the
sale, or | ||
other transfer of ownership of the electric utility's
| ||
divisions, business units, generating station, or
generating | ||
units, the 30-month period will begin on the date
the acquiring | ||
entity or persons take control or management
of the divisions, | ||
business units, generating station or
generating units of the | ||
electric utility.
| ||
(d) If a utility transfers ownership during the mandatory
| ||
transition period of one or more Illinois divisions, business
| ||
units, generating stations or generating units of an
electric | ||
utility to a majority-owned subsidiary, that
subsidiary shall | ||
continue to employ the utility's employees
who were employed by | ||
the utility at such division, business
unit or generating | ||
station at the time of the transfer under
the same terms and | ||
conditions of employment as those employees
enjoyed at the time | ||
of the transfer. If ownership of the
subsidiary is subsequently | ||
sold or transferred to a third
party during the transition | ||
period, the transition provisions
outlined in subsection (c) | ||
shall apply.
| ||
(e) The plant transfer provisions set forth above shall not
| ||
apply to any generating station which was the subject of a
| ||
sales agreement entered into before January 1, 1997.
| ||
(Source: P.A. 90-561, eff. 12-16-97; 09700SB1652enr.)
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law. |