HB3036 EnrolledLRB097 05714 ASK 45778 b

1    AN ACT concerning public utilities.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Findings. The General Assembly finds that:
5        (1) subsection (b-10) of Section 16-108.5 of this
6    amendatory Act of the 97th General Assembly provides
7    substantial customer assistance programs for low-income
8    customers, senior citizens, active members of the armed
9    services and reserved forces, and disabled veterans;
10        (2) subsection (b) of Section 16-108.5 of this
11    amendatory Act of the 97th General Assembly provides for
12    infrastructure improvements designed to reduce outages due
13    to storms;
14        (3) subsections (f) and (f-5) of Section 16-108.5 of
15    this amendatory Act of the 97th General Assembly require
16    improvement in a variety of performance metrics and impose
17    penalties on the electric utilities for failure to achieve
18    the statutorily set goals;
19        (4) Black & Veatch, a global engineering, consulting
20    and construction company, performed an independent
21    evaluation of Commonwealth Edison Company's Advanced
22    Metering Infrastructure ("AMI") pilot program and
23    concluded that the cost savings and benefits to ComEd
24    customers of full AMI deployment are nearly 3 times greater

 

 

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1    than the cost to deploy AMI, and further that AMI
2    deployment is estimated to result in a net savings to ComEd
3    customers of $2.8 billion over 20 years; and
4        (5) this amendatory Act of the 97th General Assembly
5    confers substantial benefits upon the State's electric
6    utility customers.
 
7    Section 5. If and only if Senate Bill 1652 of the 97th
8General Assembly becomes law, then the Public Utilities Act is
9amended by changing Sections 16-107.5, 16-108.5, 16-108.6,
1016-108.7, and 16-128 as follows:
 
11    (220 ILCS 5/16-107.5)
12    Sec. 16-107.5. Net electricity metering.
13    (a) The Legislature finds and declares that a program to
14provide net electricity metering, as defined in this Section,
15for eligible customers can encourage private investment in
16renewable energy resources, stimulate economic growth, enhance
17the continued diversification of Illinois' energy resource
18mix, and protect the Illinois environment.
19    (b) As used in this Section, (i) "eligible customer" means
20a retail customer that owns or operates a solar, wind, or other
21eligible renewable electrical generating facility with a rated
22capacity of not more than 2,000 kilowatts that is located on
23the customer's premises and is intended primarily to offset the
24customer's own electrical requirements; (ii) "electricity

 

 

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1provider" means an electric utility or alternative retail
2electric supplier; (iii) "eligible renewable electrical
3generating facility" means a generator powered by solar
4electric energy, wind, dedicated crops grown for electricity
5generation, agricultural residues, untreated and unadulterated
6wood waste, landscape trimmings, livestock manure, anaerobic
7digestion of livestock or food processing waste, fuel cells or
8microturbines powered by renewable fuels, or hydroelectric
9energy; and (iv) "net electricity metering" (or "net metering")
10means the measurement, during the billing period applicable to
11an eligible customer, of the net amount of electricity supplied
12by an electricity provider to the customer's premises or
13provided to the electricity provider by the customer.
14    (c) A net metering facility shall be equipped with metering
15equipment that can measure the flow of electricity in both
16directions at the same rate.
17        (1) For eligible customers whose electric service has
18    not been declared competitive pursuant to Section 16-113 of
19    this Act and whose electric delivery service is provided
20    and measured on a kilowatt-hour basis and electric supply
21    service is not provided based on hourly pricing, this shall
22    typically be accomplished through use of a single,
23    bi-directional meter. If the eligible customer's existing
24    electric revenue meter does not meet this requirement, the
25    electricity provider shall arrange for the local electric
26    utility or a meter service provider to install and maintain

 

 

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1    a new revenue meter at the electricity provider's expense.
2        (2) For eligible customers whose electric service has
3    not been declared competitive pursuant to Section 16-113 of
4    this Act and whose electric delivery service is provided
5    and measured on a kilowatt demand basis and electric supply
6    service is not provided based on hourly pricing, this shall
7    typically be accomplished through use of a dual channel
8    meter capable of measuring the flow of electricity both
9    into and out of the customer's facility at the same rate
10    and ratio. If such customer's existing electric revenue
11    meter does not meet this requirement, then the electricity
12    provider shall arrange for the local electric utility or a
13    meter service provider to install and maintain a new
14    revenue meter at the electricity provider's expense.
15        (3) For all other eligible customers, the electricity
16    provider may arrange for the local electric utility or a
17    meter service provider to install and maintain metering
18    equipment capable of measuring the flow of electricity both
19    into and out of the customer's facility at the same rate
20    and ratio, typically through the use of a dual channel
21    meter. If the eligible customer's existing electric
22    revenue meter does not meet this requirement, then the
23    costs of installing such equipment shall be paid for by the
24    customer.
25    (d) An electricity provider shall measure and charge or
26credit for the net electricity supplied to eligible customers

 

 

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1or provided by eligible customers whose electric service has
2not been declared competitive pursuant to Section 16-113 of the
3Act and whose electric delivery service is provided and
4measured on a kilowatt-hour basis and electric supply service
5is not provided based on hourly pricing in the following
6manner:
7        (1) If the amount of electricity used by the customer
8    during the billing period exceeds the amount of electricity
9    produced by the customer, the electricity provider shall
10    charge the customer for the net electricity supplied to and
11    used by the customer as provided in subsection (e-5) of
12    this Section.
13        (2) If the amount of electricity produced by a customer
14    during the billing period exceeds the amount of electricity
15    used by the customer during that billing period, the
16    electricity provider supplying that customer shall apply a
17    1:1 kilowatt-hour credit to a subsequent bill for service
18    to the customer for the net electricity supplied to the
19    electricity provider. The electricity provider shall
20    continue to carry over any excess kilowatt-hour credits
21    earned and apply those credits to subsequent billing
22    periods to offset any customer-generator consumption in
23    those billing periods until all credits are used or until
24    the end of the annualized period.
25        (3) At the end of the year or annualized over the
26    period that service is supplied by means of net metering,

 

 

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1    or in the event that the retail customer terminates service
2    with the electricity provider prior to the end of the year
3    or the annualized period, any remaining credits in the
4    customer's account shall expire.
5    (d-5) An electricity provider shall measure and charge or
6credit for the net electricity supplied to eligible customers
7or provided by eligible customers whose electric service has
8not been declared competitive pursuant to Section 16-113 of
9this Act and whose electric delivery service is provided and
10measured on a kilowatt-hour basis and electric supply service
11is provided based on hourly pricing in the following manner:
12        (1) If the amount of electricity used by the customer
13    during any hourly period exceeds the amount of electricity
14    produced by the customer, the electricity provider shall
15    charge the customer for the net electricity supplied to and
16    used by the customer according to the terms of the contract
17    or tariff to which the same customer would be assigned to
18    or be eligible for if the customer was not a net metering
19    customer.
20        (2) If the amount of electricity produced by a customer
21    during any hourly period exceeds the amount of electricity
22    used by the customer during that hourly period, the energy
23    provider shall apply a credit for the net kilowatt-hours
24    produced in such period. The credit shall consist of an
25    energy credit and a delivery service credit. The energy
26    credit shall be valued at the same price per kilowatt-hour

 

 

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1    as the electric service provider would charge for
2    kilowatt-hour energy sales during that same hourly period.
3    The delivery credit shall be equal to the net
4    kilowatt-hours produced in such hourly period times a
5    credit that reflects all kilowatt-hour based charges in the
6    customer's electric service rate, excluding energy
7    charges.
8    (e) An electricity provider shall measure and charge or
9credit for the net electricity supplied to eligible customers
10whose electric service has not been declared competitive
11pursuant to Section 16-113 of this Act and whose electric
12delivery service is provided and measured on a kilowatt demand
13basis and electric supply service is not provided based on
14hourly pricing in the following manner:
15        (1) If the amount of electricity used by the customer
16    during the billing period exceeds the amount of electricity
17    produced by the customer, then the electricity provider
18    shall charge the customer for the net electricity supplied
19    to and used by the customer as provided in subsection (e-5)
20    of this Section, provided that the electricity provider
21    shall assess and the customer remains responsible for all
22    taxes, fees, and utility delivery charges that would
23    otherwise be applicable to the gross amount of
24    kilowatt-hours supplied to the eligible customer by the
25    electricity provider.
26        (2) If the amount of electricity produced by a customer

 

 

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1    during the billing period exceeds the amount of electricity
2    used by the customer during that billing period, then the
3    electricity provider supplying that customer shall apply a
4    1:1 kilowatt-hour credit that reflects the kilowatt-hour
5    based charges in the customer's electric service rate to a
6    subsequent bill for service to the customer for the net
7    electricity supplied to the electricity provider. The
8    electricity provider shall continue to carry over any
9    excess kilowatt-hour credits earned and apply those
10    credits to subsequent billing periods to offset any
11    customer-generator consumption in those billing periods
12    until all credits are used or until the end of the
13    annualized period.
14        (3) At the end of the year or annualized over the
15    period that service is supplied by means of net metering,
16    or in the event that the retail customer terminates service
17    with the electricity provider prior to the end of the year
18    or the annualized period, any remaining credits in the
19    customer's account shall expire.
20    (e-5) An electricity provider shall provide electric
21service to eligible customers whose electric service has not
22been declared competitive pursuant to Section 16-113 of this
23Act and whose electric supply service is not provided based on
24hourly pricing who utilize net metering at non-discriminatory
25rates that are identical, with respect to rate structure,
26retail rate components, and any monthly charges, to the rates

 

 

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1that the customer would be charged if not a net metering
2customer. An electricity provider shall not charge net metering
3customers any fee or charge or require additional equipment,
4insurance, or any other requirements not specifically
5authorized by interconnection standards authorized by the
6Commission, unless the fee, charge, or other requirement would
7apply to other similarly situated customers who are not net
8metering customers. The customer will remain responsible for
9all taxes, fees, and utility delivery charges that would
10otherwise be applicable to the net amount of electricity used
11by the customer. Subsections (c) through (e) of this Section
12shall not be construed to prevent an arms-length agreement
13between an electricity provider and an eligible customer that
14sets forth different prices, terms, and conditions for the
15provision of net metering service, including, but not limited
16to, the provision of the appropriate metering equipment for
17non-residential customers.
18    (f) Notwithstanding the requirements of subsections (c)
19through (e-5) of this Section, an electricity provider must
20require dual-channel metering for customers operating eligible
21renewable electrical generating facilities with a nameplate
22rating up to 2,000 kilowatts and to whom the provisions of
23neither subsection (d), (d-5), nor (e) of this Section apply.
24In such cases, electricity charges and credits shall be
25determined as follows:
26        (1) The electricity provider shall assess and the

 

 

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1    customer remains responsible for all taxes, fees, and
2    utility delivery charges that would otherwise be
3    applicable to the gross amount of kilowatt-hours supplied
4    to the eligible customer by the electricity provider.
5        (2) Each month that service is supplied by means of
6    dual-channel metering, the electricity provider shall
7    compensate the eligible customer for any excess
8    kilowatt-hour credits at the electricity provider's
9    avoided cost of electricity supply over the monthly period
10    or as otherwise specified by the terms of a power-purchase
11    agreement negotiated between the customer and electricity
12    provider.
13        (3) For all eligible net metering customers taking
14    service from an electricity provider under contracts or
15    tariffs employing time of use rates, any monthly
16    consumption of electricity shall be calculated according
17    to the terms of the contract or tariff to which the same
18    customer would be assigned to or be eligible for if the
19    customer was not a net metering customer. When those same
20    customer-generators are net generators during any discrete
21    time of use period, the net kilowatt-hours produced shall
22    be valued at the same price per kilowatt-hour as the
23    electric service provider would charge for retail
24    kilowatt-hour sales during that same time of use period.
25    (g) For purposes of federal and State laws providing
26renewable energy credits or greenhouse gas credits, the

 

 

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1eligible customer shall be treated as owning and having title
2to the renewable energy attributes, renewable energy credits,
3and greenhouse gas emission credits related to any electricity
4produced by the qualified generating unit. The electricity
5provider may not condition participation in a net metering
6program on the signing over of a customer's renewable energy
7credits; provided, however, this subsection (g) shall not be
8construed to prevent an arms-length agreement between an
9electricity provider and an eligible customer that sets forth
10the ownership or title of the credits.
11    (h) Within 120 days after the effective date of this
12amendatory Act of the 95th General Assembly, the Commission
13shall establish standards for net metering and, if the
14Commission has not already acted on its own initiative,
15standards for the interconnection of eligible renewable
16generating equipment to the utility system. The
17interconnection standards shall address any procedural
18barriers, delays, and administrative costs associated with the
19interconnection of customer-generation while ensuring the
20safety and reliability of the units and the electric utility
21system. The Commission shall consider the Institute of
22Electrical and Electronics Engineers (IEEE) Standard 1547 and
23the issues of (i) reasonable and fair fees and costs, (ii)
24clear timelines for major milestones in the interconnection
25process, (iii) nondiscriminatory terms of agreement, and (iv)
26any best practices for interconnection of distributed

 

 

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1generation.
2    (i) All electricity providers shall begin to offer net
3metering no later than April 1, 2008.
4    (j) An electricity provider shall provide net metering to
5eligible customers until the load of its net metering customers
6equals 5% of the total peak demand supplied by that electricity
7provider during the previous year. Electricity providers are
8authorized to offer net metering beyond the 5% level if they so
9choose.
10    (k) Each electricity provider shall maintain records and
11report annually to the Commission the total number of net
12metering customers served by the provider, as well as the type,
13capacity, and energy sources of the generating systems used by
14the net metering customers. Nothing in this Section shall limit
15the ability of an electricity provider to request the redaction
16of information deemed by the Commission to be confidential
17business information. Each electricity provider shall notify
18the Commission when the total generating capacity of its net
19metering customers is equal to or in excess of the 5% cap
20specified in subsection (j) of this Section.
21    (l) Notwithstanding the definition of "eligible customer"
22in item (i) of subsection (b) of this Section, each electricity
23provider shall consider whether to allow meter aggregation for
24the purposes of net metering on:
25        (1) properties owned or leased by multiple customers
26    that contribute to the operation of an eligible renewable

 

 

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1    electrical generating facility, such as a community-owned
2    wind project, a community-owned biomass project, a
3    community-owned solar project, or a community methane
4    digester processing livestock waste from multiple sources;
5    and
6        (2) individual units, apartments, or properties owned
7    or leased by multiple customers and collectively served by
8    a common eligible renewable electrical generating
9    facility, such as an apartment building served by
10    photovoltaic panels on the roof.
11    For the purposes of this subsection (l), "meter
12aggregation" means the combination of reading and billing on a
13pro rata basis for the types of eligible customers described in
14this Section.
15    (m) Nothing in this Section shall affect the right of an
16electricity provider to continue to provide, or the right of a
17retail customer to continue to receive service pursuant to a
18contract for electric service between the electricity provider
19and the retail customer in accordance with the prices, terms,
20and conditions provided for in that contract. Either the
21electricity provider or the customer may require compliance
22with the prices, terms, and conditions of the contract.
23(Source: P.A. 95-420, eff. 8-24-07; 09700SB1652enr.)
 
24    (220 ILCS 5/16-108.5)
25    Sec. 16-108.5. Infrastructure investment and

 

 

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1modernization; regulatory reform.
2    (a) (Blank). The General Assembly recognizes that for well
3over a century Illinois residents and businesses have been
4well-served by and have benefitted from a comprehensive
5electric utility system. The General Assembly finds that
6electric utilities are now entering a new construction cycle
7that is needed to refurbish, rebuild, modernize, and expand
8systems to continue to provide safe, reliable, and affordable
9service to the State's current and future utility customers in
10this newly digitized age. In particular, the General Assembly
11finds that it is the policy of this State that significant
12investments must be made in the State's electric grid over the
13next decade to modernize and upgrade transmission and
14distribution facilities in the State. These investments will
15ensure that the State's electric utility infrastructure will
16promote future economic development in the State and that the
17State's electric utilities will be able to continue to provide
18quality electric service to their customers, including
19innovative technological offerings that will enhance customer
20experience and choice such as smart meters that are dependent
21on a modernized or Smart Grid. These investments, including
22programs to reinforce the safety and security of high voltage
23transmission lines, will also ensure that the State's electric
24utility infrastructure continues to be safe and reliable. The
25introduction of performance metrics will further ensure that
26reliability and other indicators are not just maintained but

 

 

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1improved over the next decade.
2    The General Assembly further recognizes that, in addition
3to attracting capital and businesses to the State, these
4investments will create training opportunities for the
5citizens of this State, all of which will create new employment
6opportunities for Illinoisans at a time when they are most
7needed, especially for minority-owned and female-owned
8business enterprises. The General Assembly further finds that
9regulatory reform measures that increase predictability,
10stability, and transparency in the ratemaking process are
11needed to promote prudent, long-term infrastructure investment
12and to mutually benefit the State's electric utilities and
13their customers, regulators, and investors.
14    (b) For purposes of this Section, "participating utility"
15means an electric utility or a combination utility serving more
16than 1,000,000 customers in Illinois that voluntarily elects
17and commits to undertake (i) the infrastructure investment
18program consisting of the commitments and obligations
19described in this subsection (b) and (ii) the customer
20assistance program consisting of the commitments and
21obligations described in subsection (b-10) of this Section,
22notwithstanding any other provisions of this Act and without
23obtaining any approvals from the Commission or any other agency
24other than as set forth in this Section, regardless of whether
25any such approval would otherwise be required. "Combination
26utility" means a utility that, as of January 1, 2011, provided

 

 

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1electric service to at least one million retail customers in
2Illinois and gas service to at least 500,000 retail customers
3in Illinois. A participating utility shall recover the
4expenditures made under the infrastructure investment program
5through the ratemaking process, including, but not limited to,
6the performance-based formula rate and process set forth in
7this Section.
8    During the infrastructure investment program's peak
9program year, a participating utility other than a combination
10utility shall create 2,000 full-time equivalent jobs in
11Illinois, and a participating utility that is a combination
12utility shall create 450 full-time equivalent jobs in Illinois
13related to the provision of electric service. These jobs shall
14include , including direct jobs, contractor positions, and
15induced jobs, but shall not include any portion of a job
16commitment, not specifically contingent on an amendatory Act of
17the 97th General Assembly becoming law, between a participating
18utility and a labor union that existed on the effective date of
19this amendatory Act of the 97th General Assembly and that has
20not yet been fulfilled. A portion of the full-time equivalent
21jobs created by each participating utility shall include
22incremental personnel hired subsequent to the effective date of
23this amendatory Act of the 97th General Assembly. For purposes
24of this Section, "peak program year" means the consecutive
2512-month period with the highest number of full-time equivalent
26jobs that occurs between the beginning of investment year 2 and

 

 

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1the end of investment year 4.
2    A participating utility shall meet one of the following
3commitments, as applicable:
4        (1) Beginning no later than 180 days after a
5    participating utility other than a combination utility
6    files a performance-based formula rate tariff pursuant to
7    subsection (c) of this Section, or, beginning no later than
8    January 1, 2012 if such utility files such
9    performance-based formula rate tariff within 14 days of the
10    effective date of this amendatory Act of the 97th General
11    Assembly, the participating utility shall, except as
12    provided in subsection (b-5):
13            (A) over a 5-year period, invest an estimated
14        $1,300,000,000 $1,100,000,000 in electric system
15        upgrades, modernization projects, and training
16        facilities, including, but not limited to:
17                (i) distribution infrastructure improvements
18            totaling an estimated $1,000,000,000, including
19            underground residential distribution cable
20            injection and replacement and mainline cable
21            system refurbishment and replacement projects;
22                (ii) training facility construction or upgrade
23            projects totaling an estimated $10,000,000,
24            provided that, at a minimum, one such facility
25            shall be located in a municipality having a
26            population of more than 2 million residents and one

 

 

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1            such facility shall be located in a municipality
2            having a population of more than 150,000 residents
3            but fewer than 170,000 residents; any such new
4            facility located in a municipality having a
5            population of more than 2 million residents must be
6            designed for the purpose of obtaining, and the
7            owner of the facility shall apply for,
8            certification under the United States Green
9            Building Council's Leadership in Energy Efficiency
10            Design Green Building Rating System; and
11                (iii) wood pole inspection, treatment, and
12            replacement programs; and
13                (iv) an estimated $200,000,000 for reducing
14            the susceptibility of certain circuits to
15            storm-related damage, including, but not limited
16            to, high winds, thunderstorms, and ice storms;
17            improvements may include, but are not limited to,
18            overhead to underground conversion and other
19            engineered outcomes for circuits; the
20            participating utility shall prioritize the
21            selection of circuits based on each circuit's
22            historical susceptibility to storm-related damage
23            and the ability to provide the greatest customer
24            benefit upon completion of the improvements; to be
25            eligible for improvement, the participating
26            utility's ability to maintain proper tree

 

 

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1            clearances surrounding the overhead circuit must
2            not have been impeded by third parties; and
3            (B) over a 10-year period, invest an estimated
4        $1,300,000,000 $1,500,000,000 to upgrade and modernize
5        its transmission and distribution infrastructure and
6        in Smart Grid electric system upgrades, including, but
7        not limited to:
8                (i) additional smart meters;
9                (ii) distribution automation;
10                (iii) associated cyber secure data
11            communication network; and
12                (iv) substation micro-processor relay
13            upgrades.
14        (2) Beginning no later than 180 days after a
15    participating utility that is a combination utility files a
16    performance-based formula rate tariff pursuant to
17    subsection (c) of this Section, or, beginning no later than
18    January 1, 2012 if such utility files such
19    performance-based formula rate tariff within 14 days of the
20    effective date of this amendatory Act of the 97th General
21    Assembly, the participating utility shall, except as
22    provided in subsection (b-5):
23            (A) over a 10-year period, invest an estimated
24        $265,000,000 in electric system upgrades,
25        modernization projects, and training facilities,
26        including, but not limited to:

 

 

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1                (i) distribution infrastructure improvements
2            totaling an estimated $245,000,000, which may
3            include bulk supply substations, transformers,
4            reconductoring, and rebuilding overhead
5            distribution and sub-transmission lines,
6            underground residential distribution cable
7            injection and replacement and mainline cable
8            system refurbishment and replacement projects;
9                (ii) training facility construction or upgrade
10            projects totaling an estimated $1,000,000; any
11            such new facility must be designed for the purpose
12            of obtaining, and the owner of the facility shall
13            apply for, certification under the United States
14            Green Building Council's Leadership in Energy
15            Efficiency Design Green Building Rating System;
16            and
17                (iii) wood pole inspection, treatment, and
18            replacement programs; and
19            (B) over a 10-year period, invest an estimated
20        $360,000,000 to upgrade and modernize its transmission
21        and distribution infrastructure and in Smart Grid
22        electric system upgrades, including, but not limited
23        to:
24                (i) additional smart meters;
25                (ii) distribution automation;
26                (iii) associated cyber secure data

 

 

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1            communication network; and
2                (iv) substation micro-processor relay
3            upgrades.
4    For purposes of this Section, "Smart Grid electric system
5upgrades" shall have the meaning set forth in subsection (a) of
6Section 16-108.6 of this Act.
7    The investments in the infrastructure investment program
8described in this subsection (b) shall be incremental to the
9participating utility's annual capital investment program, as
10defined by, for purposes of this subsection (b), the
11participating utility's average capital spend for calendar
12years 2008, 2009, and 2010 as reported in the applicable
13Federal Energy Regulatory Commission (FERC) Form 1; provided
14that where one or more utilities have merged, the average
15capital spend shall be determined using the aggregate of the
16merged utilities' capital spend reported in FERC Form 1 for the
17years 2008, 2009, and 2010. A participating utility may add
18reasonable construction ramp-up and ramp-down time to the
19investment periods specified in this subsection (b). For each
20such investment period, the ramp-up and ramp-down time shall
21not exceed a total of 6 months.
22    Within 60 days after filing a tariff under subsection (c)
23of this Section, a participating utility shall submit to the
24Commission its plan, including scope, schedule, and staffing,
25for satisfying its infrastructure investment program
26commitments pursuant to this subsection (b). The submitted plan

 

 

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1shall include a schedule and staffing plan for the next
2calendar year. The plan shall also include a plan for the
3creation, operation, and administration of a Smart Grid test
4bed as described in subsection (c) of Section 16-108.8. The
5plan need not allocate the work equally over the respective
6periods, but should allocate material increments throughout
7such periods commensurate with the work to be undertaken. No
8later than April 1 of each subsequent year, the utility shall
9submit to the Commission a report that includes any updates to
10the plan, a schedule for the next calendar year, the
11expenditures made for the prior calendar year and cumulatively,
12and the number of full-time equivalent jobs created for the
13prior calendar year and cumulatively. If the utility is
14materially deficient in satisfying a schedule or staffing plan,
15then the report must also include a corrective action plan to
16address the deficiency. The fact that the plan, implementation
17of the plan, or a schedule changes shall not imply the
18imprudence or unreasonableness of the infrastructure
19investment program, plan, or schedule. Further, no later than
2045 days following the last day of the first, second, and third
21quarters of each year of the plan, a participating utility
22shall submit to the Commission a verified quarterly report for
23the prior quarter that includes (i) the total number of
24full-time equivalent jobs created during the prior quarter,
25(ii) the total number of employees as of the last day of the
26prior quarter, (iii) the total number of full-time equivalent

 

 

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1hours in each job classification or job title, (iv) the total
2number of incremental employees and contractors in support of
3the investments undertaken pursuant to this subsection (b) for
4the prior quarter, and (v) any other information that the
5Commission may require by rule.
6    With respect to the participating utility's peak job
7commitment, if, after considering the utility's corrective
8action plan and compliance thereunder, the Commission enters an
9order finding, after notice and hearing, that a participating
10utility did not satisfy its peak job commitment described in
11this subsection (b) for reasons that are reasonably within its
12control, then the Commission shall also determine, after
13consideration of the evidence, including, but not limited to,
14evidence submitted by the Department of Commerce and Economic
15Opportunity and the utility, the deficiency in the number of
16full-time equivalent jobs during the peak program year due to
17such failure. The Commission shall notify the Department of any
18proceeding that is initiated pursuant to this paragraph. For
19each full-time equivalent job deficiency during the peak
20program year that the Commission finds as set forth in this
21paragraph, the participating utility shall, within 30 days
22after the entry of the Commission's order, pay $6,000 $3,000 to
23a fund for training grants administered under Section 605-800
24of The Department of Commerce and Economic Opportunity Law,
25which shall not be a recoverable expense.
26    With respect to the participating utility's investment

 

 

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1amount commitments, if, after considering the utility's
2corrective action plan and compliance thereunder, the
3Commission enters an order finding, after notice and hearing,
4that a participating utility is not satisfying its investment
5amount commitments described in this subsection (b), then the
6utility shall no longer be eligible to annually update the
7performance-based formula rate tariff pursuant to subsection
8(d) of this Section. In such event, the then current rates
9shall remain in effect until such time as new rates are set
10pursuant to Article IX of this Act, subject to retroactive
11adjustment, with interest, to reconcile rates charged with
12actual costs.
13    If the Commission finds that a participating utility is no
14longer eligible to update the performance-based formula rate
15tariff pursuant to subsection (d) of this Section, or the
16performance-based formula rate is otherwise terminated, then
17the participating utility's voluntary commitments and
18obligations under this subsection (b) shall immediately
19terminate, except for the utility's obligation to pay an amount
20already owed to the fund for training grants pursuant to a
21Commission order.
22    In meeting the obligations of this subsection (b), to the
23extent feasible and consistent with State and federal law, the
24investments under the infrastructure investment program should
25provide employment opportunities for all segments of the
26population and workforce, including minority-owned and

 

 

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1female-owned business enterprises, and shall not, consistent
2with State and federal law, discriminate based on race or
3socioeconomic status.
4    (b-5) Nothing in this Section shall prohibit the Commission
5from investigating the prudence and reasonableness of the
6expenditures made under the infrastructure investment program
7during the annual review required by subsection (d) of this
8Section and shall, as part of such investigation, determine
9whether the utility's actual costs under the program are
10prudent and reasonable. The fact that a participating utility
11invests more than the minimum amounts specified in subsection
12(b) of this Section or its plan shall not imply imprudence or
13unreasonableness.
14    If the participating utility finds that it is implementing
15its plan for satisfying the infrastructure investment program
16commitments described in subsection (b) of this Section at a
17cost below the estimated amounts specified in subsection (b) of
18this Section, then the utility may file a petition with the
19Commission requesting that it be permitted to satisfy its
20commitments by spending less than the estimated amounts
21specified in subsection (b) of this Section. The Commission
22shall, after notice and hearing, enter its order approving, or
23approving as modified, or denying each such petition within 150
24days after the filing of the petition.
25    In no event, absent General Assembly approval, shall the
26capital investment costs incurred by a participating utility

 

 

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1other than a combination utility in satisfying its
2infrastructure investment program commitments described in
3subsection (b) of this Section exceed $3,000,000,000 or, for a
4participating utility that is a combination utility,
5$720,000,000. If the participating utility's updated cost
6estimates for satisfying its infrastructure investment program
7commitments described in subsection (b) of this Section exceed
8the limitation imposed by this subsection (b-5), then it shall
9submit a report to the Commission that identifies the increased
10costs and explains the reason or reasons for the increased
11costs no later than the year in which the utility estimates it
12will exceed the limitation. The Commission shall review the
13report and shall, within 90 days after the participating
14utility files the report, report to the General Assembly its
15findings regarding the participating utility's report. If the
16General Assembly does not amend the limitation imposed by this
17subsection (b-5), then the utility may modify its plan so as
18not to exceed the limitation imposed by this subsection (b-5)
19and may propose corresponding changes to the metrics
20established pursuant to subparagraphs (5) through (8) of
21subsection (f) of this Section, and the Commission may modify
22the metrics and incremental savings goals established pursuant
23to subsection (f) of this Section accordingly.
24    (b-10) All participating utilities shall make
25contributions for an energy low-income and support program in
26accordance with this subsection. Beginning no later than 180

 

 

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1days after a participating utility files a performance-based
2formula rate tariff pursuant to subsection (c) of this Section,
3or beginning no later than January 1, 2012 if such utility
4files such performance-based formula rate tariff within 14 days
5of the effective date of this amendatory Act of the 97th
6General Assembly, and without obtaining any approvals from the
7Commission or any other agency other than as set forth in this
8Section, regardless of whether any such approval would
9otherwise be required, a participating utility other than a
10combination utility shall pay $10,000,000 per year for 5 years
11and a participating utility that is a combination utility shall
12pay $1,000,000 per year for 10 years to the energy low-income
13and support program, which is intended to fund customer
14assistance programs with the primary purpose being avoidance of
15imminent disconnection. Such programs may include:
16        (1) a residential hardship program that may partner
17    with community-based organizations, including senior
18    citizen organizations, and provides grants to low-income
19    residential customers, including low-income senior
20    citizens, who demonstrate a hardship;
21        (2) a program that provides grants and other bill
22    payment concessions to disabled veterans who demonstrate a
23    hardship and members of the armed services or reserve
24    forces of the United States or members of the Illinois
25    National Guard who are on active duty pursuant to an
26    executive order of the President of the United States, an

 

 

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1    act of the Congress of the United States, or an order of
2    the Governor and who demonstrate a hardship;
3        (3) a budget assistance program that provides tools and
4    education to low-income senior citizens to assist them with
5    obtaining information regarding energy usage and effective
6    means of managing energy costs;
7        (4) a non-residential special hardship program that
8    provides grants to non-residential customers such as small
9    businesses and non-profit organizations that demonstrate a
10    hardship, including those providing services to senior
11    citizen and low-income customers; and
12        (5) a performance-based assistance program that
13    provides grants to encourage residential customers to make
14    on-time payments by matching a portion of the customer's
15    payments or providing credits towards arrearages.
16    The payments made by a participating utility pursuant to
17this subsection (b-10) shall not be a recoverable expense. A
18participating utility may elect to fund either new or existing
19customer assistance programs, including, but not limited to,
20those that are administered by the utility.
21    Programs that use funds that are provided by a
22participating utility to reduce utility bills may be
23implemented through tariffs that are filed with and reviewed by
24the Commission. If a utility elects to file tariffs with the
25Commission to implement all or a portion of the programs, those
26tariffs shall, regardless of the date actually filed, be deemed

 

 

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1accepted and approved, and shall become effective on the
2effective date of this amendatory Act of the 97th General
3Assembly. The participating utilities whose customers benefit
4from the funds that are disbursed as contemplated in this
5Section shall file annual reports documenting the disbursement
6of those funds with the Commission. The Commission has the
7authority to audit disbursement of the funds to ensure they
8were disbursed consistently with this Section.
9    If the Commission finds that a participating utility is no
10longer eligible to update the performance-based formula rate
11tariff pursuant to subsection (d) of this Section, or the
12performance-based formula rate is otherwise terminated, then
13the participating utility's voluntary commitments and
14obligations under this subsection (b-10) shall immediately
15terminate.
16    (c) A participating utility may elect to recover its
17delivery services costs through a performance-based formula
18rate approved by the Commission, which shall specify the cost
19components that form the basis of the rate charged to customers
20with sufficient specificity to operate in a standardized manner
21and be updated annually with transparent information that
22reflects the utility's actual costs to be recovered during the
23applicable rate year, which is the period beginning with the
24first billing day of January and extending through the last
25billing day of the following December. In the event the utility
26recovers a portion of its costs through automatic adjustment

 

 

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1clause tariffs on the effective date of this amendatory Act of
2the 97th General Assembly, the utility may elect to continue to
3recover these costs through such tariffs, but then these costs
4shall not be recovered through the performance-based formula
5rate. In the event the participating utility, prior to the
6effective date of this amendatory Act of the 97th General
7Assembly, filed electric delivery services tariffs with the
8Commission pursuant to Section 9-201 of this Act that are
9related to the recovery of its electric delivery services costs
10that are still pending on the effective date of this amendatory
11Act of the 97th General Assembly, the participating utility
12shall, at the time it files its performance-based formula rate
13tariff with the Commission, also file a notice of withdrawal
14with the Commission to withdraw the electric delivery services
15tariffs previously filed pursuant to Section 9-201 of this Act.
16Upon receipt of such notice, the Commission shall dismiss with
17prejudice any docket that had been initiated to investigate the
18electric delivery services tariffs filed pursuant to Section
199-201 of this Act, and such tariffs and the record related
20thereto shall not be the subject of any further hearing,
21investigation, or proceeding of any kind related to rates for
22electric delivery services.
23    The performance-based formula rate shall be implemented
24through a tariff filed with the Commission consistent with the
25provisions of this subsection (c) that shall be applicable to
26all delivery services customers. The Commission shall initiate

 

 

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1and conduct an investigation of the tariff in a manner
2consistent with the provisions of this subsection (c) and the
3provisions of Article IX of this Act to the extent they do not
4conflict with this subsection (c). Except in the case where the
5Commission finds, after notice and hearing, that a
6participating utility is not satisfying its investment amount
7commitments under subsection (b) of this Section, the
8performance-based formula rate shall remain in effect at the
9discretion of the utility. The performance-based formula rate
10approved by the Commission shall do the following:
11        (1) Provide for the recovery of the utility's actual
12    costs of delivery services that are prudently incurred and
13    reasonable in amount consistent with Commission practice
14    and law. The sole fact that a cost differs from that
15    incurred in a prior calendar year or that an investment is
16    different from that made in a prior calendar year shall not
17    imply the imprudence or unreasonableness of that cost or
18    investment.
19        (2) Reflect the utility's actual capital structure for
20    the applicable calendar year, excluding goodwill, subject
21    to a determination of prudence and reasonableness
22    consistent with Commission practice and law.
23        (3) Include a cost of equity, which shall be calculated
24    as the sum of the following:
25            (A) the average for the applicable calendar year of
26        the monthly average yields of 30-year U.S. Treasury

 

 

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1        bonds published by the Board of Governors of the
2        Federal Reserve System in its weekly H.15 Statistical
3        Release or successor publication; and
4            (B) 580 600 basis points.
5        At such time as the Board of Governors of the Federal
6    Reserve System ceases to include the monthly average yields
7    of 30-year U.S. Treasury bonds in its weekly H.15
8    Statistical Release or successor publication, the monthly
9    average yields of the U.S. Treasury bonds then having the
10    longest duration published by the Board of Governors in its
11    weekly H.15 Statistical Release or successor publication
12    shall instead be used for purposes of this paragraph (3).
13        (4) Permit and set forth protocols, subject to a
14    determination of prudence and reasonableness consistent
15    with Commission practice and law, for the following:
16            (A) recovery of incentive compensation expense
17        that is based on the achievement of operational
18        metrics, including metrics related to budget controls,
19        outage duration and frequency, safety, customer
20        service, efficiency and productivity, and
21        environmental compliance. Incentive compensation
22        expense that is based on net income or an affiliate's
23        earnings per share shall not be recoverable under the
24        performance-based formula rate;
25            (B) recovery of pension and other post-employment
26        benefits expense, provided that such costs are

 

 

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1        supported by an actuarial study;
2            (C) recovery of severance costs, provided that if
3        the amount is over $3,700,000 for a participating
4        utility that is a combination utility or $10,000,000
5        for a participating utility that serves more than 3
6        million retail customers, then the full amount shall be
7        amortized consistent with subparagraph (F) of this
8        paragraph (4);
9            (D) investment return on pension assets net of
10        deferred tax benefits equal to the utility's long-term
11        debt cost of capital as of the end of the applicable
12        calendar year;
13            (E) recovery of the expenses related to the
14        Commission proceeding under this subsection (c) to
15        approve this performance-based formula rate and
16        initial rates or to subsequent proceedings related to
17        the formula, provided that the recovery shall be
18        amortized over a 3-year period; recovery of expenses
19        related to the annual Commission proceedings under
20        subsection (d) of this Section to review the inputs to
21        the performance-based formula rate shall be expensed
22        and recovered through the performance-based formula
23        rate;
24            (F) amortization over a 5-year period of the full
25        amount of each charge or credit that exceeds $3,700,000
26        for a participating utility that is a combination

 

 

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1        utility or $10,000,000 for a participating utility
2        that serves more than 3 million retail customers in the
3        applicable calendar year and that relates to a
4        workforce reduction program's severance costs, changes
5        in accounting rules, changes in law, compliance with
6        any Commission-initiated audit, or a single storm or
7        other similar expense, provided that any unamortized
8        balance shall be reflected in rate base. For purposes
9        of this subparagraph (F), changes in law includes any
10        enactment, repeal, or amendment in a law, ordinance,
11        rule, regulation, interpretation, permit, license,
12        consent, or order, including those relating to taxes,
13        accounting, or to environmental matters, or in the
14        interpretation or application thereof by any
15        governmental authority occurring after the effective
16        date of this amendatory Act of the 97th General
17        Assembly;
18            (G) recovery of existing regulatory assets over
19        the periods previously authorized by the Commission;
20            (H) historical weather normalized billing
21        determinants; and
22            (I) allocation methods for common costs.
23        (5) Provide that if the participating utility's earned
24    rate of return on common equity related to the provision of
25    delivery services for the prior rate year (calculated using
26    costs and capital structure approved by the Commission as

 

 

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1    provided in subparagraph (2) of this subsection (c),
2    consistent with this Section, in accordance with
3    Commission rules and orders, including, but not limited to,
4    adjustments for goodwill, and after any Commission-ordered
5    disallowances and taxes) is more than 50 basis points
6    higher than the rate of return on common equity calculated
7    pursuant to paragraph (3) of this subsection (c) (after
8    adjusting for any penalties to the rate of return on common
9    equity applied pursuant to the performance metrics
10    provision of subsection (f) of this Section), then the
11    participating utility shall apply a credit through the
12    performance-based formula rate that reflects an amount
13    equal to the value of that portion of the earned rate of
14    return on common equity that is more than 50 basis points
15    higher than the rate of return on common equity calculated
16    pursuant to paragraph (3) of this subsection (c) (after
17    adjusting for any penalties to the rate of return on common
18    equity applied pursuant to the performance metrics
19    provision of subsection (f) of this Section) for the prior
20    rate year, adjusted for taxes. If the participating
21    utility's earned rate of return on common equity related to
22    the provision of delivery services for the prior rate year
23    (calculated using costs and capital structure approved by
24    the Commission as provided in subparagraph (2) of this
25    subsection (c), consistent with this Section, in
26    accordance with Commission rules and orders, including,

 

 

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1    but not limited to, adjustments for goodwill, and after any
2    Commission-ordered disallowances and taxes) is more than
3    50 basis points less than the return on common equity
4    calculated pursuant to paragraph (3) of this subsection (c)
5    (after adjusting for any penalties to the rate of return on
6    common equity applied pursuant to the performance metrics
7    provision of subsection (f) of this Section), then the
8    participating utility shall apply a charge through the
9    performance-based formula rate that reflects an amount
10    equal to the value of that portion of the earned rate of
11    return on common equity that is more than 50 basis points
12    less than the rate of return on common equity calculated
13    pursuant to paragraph (3) of this subsection (c) (after
14    adjusting for any penalties to the rate of return on common
15    equity applied pursuant to the performance metrics
16    provision of subsection (f) of this Section) for the prior
17    rate year, adjusted for taxes.
18        (6) Provide for an annual reconciliation, with
19    interest as described in subsection (d) of this Section, of
20    the revenue requirement reflected in rates for each
21    calendar year, beginning with the calendar year in which
22    the utility files its performance-based formula rate
23    tariff pursuant to subsection (c) of this Section, with
24    what the revenue requirement would have been had the actual
25    cost information for the applicable calendar year been
26    available at the filing date.

 

 

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1    The utility shall file, together with its tariff, final
2data based on its most recently filed FERC Form 1, plus
3projected plant additions and correspondingly updated
4depreciation reserve and expense for the calendar year in which
5the tariff and data are filed, that shall populate the
6performance-based formula rate and set the initial delivery
7services rates under the formula. For purposes of this Section,
8"FERC Form 1" means the Annual Report of Major Electric
9Utilities, Licensees and Others that electric utilities are
10required to file with the Federal Energy Regulatory Commission
11under the Federal Power Act, Sections 3, 4(a), 304 and 209,
12modified as necessary to be consistent with 83 Ill. Admin. Code
13Part 415 as of May 1, 2011. Nothing in this Section is intended
14to allow costs that are not otherwise recoverable to be
15recoverable by virtue of inclusion in FERC Form 1.
16    After the utility files its proposed performance-based
17formula rate structure and protocols and initial rates, the
18Commission shall initiate a docket to review the filing. The
19Commission shall enter an order approving, or approving as
20modified, the performance-based formula rate, including the
21initial rates, as just and reasonable within 270 days after the
22date on which the tariff was filed, or, if the tariff is filed
23within 14 days after the effective date of this amendatory Act
24of the 97th General Assembly, then by May 31, 2012. Such review
25shall be based on the same evidentiary standards, including,
26but not limited to, those concerning the prudence and

 

 

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1reasonableness of the costs incurred by the utility, the
2Commission applies in a hearing to review a filing for a
3general increase in rates under Article IX of this Act. The
4initial rates shall take effect within 30 days after the
5Commission's order approving the performance-based formula
6rate tariff.
7    Until such time as the Commission approves a different rate
8design and cost allocation pursuant to subsection (e) of this
9Section, rate design and cost allocation across customer
10classes shall be consistent with the Commission's most recent
11order regarding the participating utility's request for a
12general increase in its delivery services rates.
13    Subsequent changes to the performance-based formula rate
14structure or protocols shall be made as set forth in Section
159-201 of this Act, but nothing in this subsection (c) is
16intended to limit the Commission's authority under Article IX
17and other provisions of this Act to initiate an investigation
18of a participating utility's performance-based formula rate
19tariff, provided that any such changes shall be consistent with
20paragraphs (1) through (6) of this subsection (c). Any change
21ordered by the Commission shall be made at the same time new
22rates take effect following the Commission's next order
23pursuant to subsection (d) of this Section, provided that the
24new rates take effect no less than 30 days after the date on
25which the Commission issues an order adopting the change.
26    A participating utility that files a tariff pursuant to

 

 

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1this subsection (c) must submit a one-time $200,000 filing fee
2at the time the Chief Clerk of the Commission accepts the
3filing, which shall be a recoverable expense.
4    In the event the performance-based formula rate is
5terminated, the then current rates shall remain in effect until
6such time as new rates are set pursuant to Article IX of this
7Act, subject to retroactive rate adjustment, with interest, to
8reconcile rates charged with actual costs. At such time that
9the performance-based formula rate is terminated, the
10participating utility's voluntary commitments and obligations
11under subsection (b) of this Section shall immediately
12terminate, except for the utility's obligation to pay an amount
13already owed to the fund for training grants pursuant to a
14Commission order issued under subsection (b) of this Section.
15    (d) Subsequent to the Commission's issuance of an order
16approving the utility's performance-based formula rate
17structure and protocols, and initial rates under subsection (c)
18of this Section, the utility shall file, on or before May 1 of
19each year, with the Chief Clerk of the Commission its updated
20cost inputs to the performance-based formula rate for the
21applicable rate year and the corresponding new charges. Each
22such filing shall conform to the following requirements and
23include the following information:
24        (1) The inputs to the performance-based formula rate
25    for the applicable rate year shall be based on final
26    historical data reflected in the utility's most recently

 

 

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1    filed annual FERC Form 1 plus projected plant additions and
2    correspondingly updated depreciation reserve and expense
3    for the calendar year in which the inputs are filed. The
4    filing shall also include a reconciliation of the revenue
5    requirement that was in effect for the prior rate year (as
6    set by the cost inputs for the prior rate year) with the
7    actual revenue requirement for the prior rate year (as
8    reflected in the applicable FERC Form 1 that reports the
9    actual costs for the prior rate year). Any over-collection
10    or under-collection indicated by such reconciliation shall
11    be reflected as a credit against, or recovered as an
12    additional charge to, respectively, with interest, the
13    charges for the applicable rate year. Provided, however,
14    that the first such reconciliation shall be for the
15    calendar year in which the utility files its
16    performance-based formula rate tariff pursuant to
17    subsection (c) of this Section and shall reconcile (i) the
18    revenue requirement or requirements established by the
19    rate order or orders in effect from time to time during
20    such calendar year (weighted, as applicable) with (ii) the
21    revenue requirement for that calendar year calculated
22    pursuant to the performance-based formula rate using (A)
23    actual costs for that year as reflected in the applicable
24    FERC Form 1, and (B) for the first such reconciliation
25    only, the cost of equity, which shall be calculated as the
26    sum of 590 basis points plus the average for the applicable

 

 

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1    calendar year of the monthly average yields of 30-year U.S.
2    Treasury bonds published by the Board of Governors of the
3    Federal Reserve System in its weekly H.15 Statistical
4    Release or successor publication approved by the
5    Commission in such order or orders in effect during that
6    year (weighted, as applicable). The first such
7    reconciliation is not intended to provide for the recovery
8    of costs previously excluded from rates based on a prior
9    Commission order finding of imprudence or
10    unreasonableness. Each reconciliation shall be certified
11    by the participating utility in the same manner that FERC
12    Form 1 is certified. The filing shall also include the
13    charge or credit, if any, resulting from the calculation
14    required by paragraph (6) of subsection (c) of this
15    Section.
16        Notwithstanding anything that may be to the contrary,
17    the intent of the reconciliation is to ultimately reconcile
18    the revenue requirement reflected in rates for each
19    calendar year, beginning with the calendar year in which
20    the utility files its performance-based formula rate
21    tariff pursuant to subsection (c) of this Section, with
22    what the revenue requirement would have been had the actual
23    cost information for the applicable calendar year been
24    available at the filing date.
25        (2) The new charges shall take effect beginning on the
26    first billing day of the following January billing period

 

 

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1    and remain in effect through the last billing day of the
2    next December billing period regardless of whether the
3    Commission enters upon a hearing pursuant to this
4    subsection (d).
5        (3) The filing shall include relevant and necessary
6    data and documentation for the applicable rate year that is
7    consistent with the Commission's rules applicable to a
8    filing for a general increase in rates or any rules adopted
9    by the Commission to implement this Section. Normalization
10    adjustments shall not be required. Notwithstanding any
11    other provision of this Section or Act or any rule or other
12    requirement adopted by the Commission, a participating
13    utility that is a combination utility with more than one
14    rate zone shall not be required to file a separate set of
15    such data and documentation for each rate zone and may
16    combine such data and documentation into a single set of
17    schedules.
18    Within 45 days after the utility files its annual update of
19cost inputs to the performance-based formula rate, the
20Commission shall have the authority, either upon complaint or
21its own initiative, but with reasonable notice, to enter upon a
22hearing concerning the prudence and reasonableness of the costs
23incurred by the utility to be recovered during the applicable
24rate year that are reflected in the inputs to the
25performance-based formula rate derived from the utility's FERC
26Form 1. During the course of the hearing, each objection shall

 

 

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1be stated with particularity and evidence provided in support
2thereof, after which the utility shall have the opportunity to
3rebut the evidence. Discovery shall be allowed consistent with
4the Commission's Rules of Practice, which Rules shall be
5enforced by the Commission or the assigned hearing examiner.
6The Commission shall apply the same evidentiary standards,
7including, but not limited to, those concerning the prudence
8and reasonableness of the costs incurred by the utility, in the
9hearing as it would apply in a hearing to review a filing for a
10general increase in rates under Article IX of this Act. The
11Commission shall not, however, have the authority in a
12proceeding under this subsection (d) to consider or order any
13changes to the structure or protocols of the performance-based
14formula rate approved pursuant to subsection (c) of this
15Section. In a proceeding under this subsection (d), the
16Commission shall enter its order no later than the earlier of
17240 days after the utility's filing of its annual update of
18cost inputs to the performance-based formula rate or December
1931. The Commission's determinations of the prudence and
20reasonableness of the costs incurred for the applicable
21calendar year shall be final upon entry of the Commission's
22order and shall not be subject to reopening, reexamination, or
23collateral attack in any other Commission proceeding, case,
24docket, order, rule or regulation, provided, however, that
25nothing in this subsection (d) shall prohibit a party from
26petitioning the Commission to rehear or appeal to the courts

 

 

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1the order pursuant to the provisions of this Act.
2    In the event the Commission does not, either upon complaint
3or its own initiative, enter upon a hearing within 45 days
4after the utility files the annual update of cost inputs to its
5performance-based formula rate, then the costs incurred for the
6applicable calendar year shall be deemed prudent and
7reasonable, and the filed charges shall not be subject to
8reopening, reexamination, or collateral attack in any other
9proceeding, case, docket, order, rule, or regulation.
10    A participating utility's first filing of the updated cost
11inputs, and any Commission investigation of such inputs
12pursuant to this subsection (d) shall proceed notwithstanding
13the fact that the Commission's investigation under subsection
14(c) of this Section is still pending and notwithstanding any
15other law, order, rule, or Commission practice to the contrary.
16    (e) Nothing in subsections (c) or (d) of this Section shall
17prohibit the Commission from investigating, or a participating
18utility from filing, revenue-neutral tariff changes related to
19rate design of a performance-based formula rate that has been
20placed into effect for the utility. Following approval of a
21participating utility's performance-based formula rate tariff
22pursuant to subsection (c) of this Section, the utility shall
23make a filing with the Commission within one year after the
24effective date of the performance-based formula rate tariff
25that proposes changes to the tariff to incorporate the findings
26of any final rate design orders of the Commission applicable to

 

 

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1the participating utility and entered subsequent to the
2Commission's approval of the tariff. The Commission shall,
3after notice and hearing, enter its order approving, or
4approving with modification, the proposed changes to the
5performance-based formula rate tariff within 240 days after the
6utility's filing. Following such approval, the utility shall
7make a filing with the Commission during each subsequent 3-year
8period that either proposes revenue-neutral tariff changes or
9re-files the existing tariffs without change, which shall
10present the Commission with an opportunity to suspend the
11tariffs and consider revenue-neutral tariff changes related to
12rate design.
13    (f) Within 30 days after the filing of a tariff pursuant to
14subsection (c) of this Section, each participating utility
15shall develop and file with the Commission multi-year metrics
16designed to achieve, ratably (i.e., in equal segments) over a
1710-year period, improvement over baseline performance values
18as follows:
19        (1) Twenty percent improvement in the System Average
20    Interruption Frequency Index, using a baseline of the
21    average of the data from 2001 through 2010.
22        (2) Fifteen percent improvement in the system Customer
23    Average Interruption Duration Index, using a baseline of
24    the average of the data from 2001 through 2010.
25        (3) For a participating utility other than a
26    combination utility, 20% improvement in the System Average

 

 

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1    Interruption Frequency Index for its Southern Region,
2    using a baseline of the average of the data from 2001
3    through 2010. For purposes of this paragraph (3) paragraph
4    (C), Southern Region shall have the meaning set forth in
5    the participating utility's most recent report filed
6    pursuant to Section 16-125 of this Act.
7        (3.5) For a participating utility other than a
8    combination utility, 20% improvement in the System Average
9    Interruption Frequency Index for its Northeastern Region,
10    using a baseline of the average of the data from 2001
11    through 2010. For purposes of this paragraph (3.5),
12    Northeastern Region shall have the meaning set forth in the
13    participating utility's most recent report filed pursuant
14    to Section 16-125 of this Act.
15        (4) Seventy-five percent improvement in the total
16    number of customers who exceed the service reliability
17    targets as set forth in subparagraphs (A) through (C) of
18    paragraph (4) of subsection (b) of 83 Ill. Admin. Code Part
19    411.140 as of May 1, 2011, using 2010 as the baseline year.
20        (5) Reduction in issuance of estimated electric bills:
21    90% improvement for a participating utility other than a
22    combination utility, and 56% improvement for a
23    participating utility that is a combination utility, using
24    a baseline of the average number of estimated bills for the
25    years 2008 through 2010.
26        (6) Consumption on inactive meters: 90% improvement

 

 

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1    for a participating utility other than a combination
2    utility, and 56% improvement for a participating utility
3    that is a combination utility, using a baseline of the
4    average unbilled kilowatthours for the years 2009 and 2010.
5        (7) Unaccounted for energy: 50% improvement for a
6    participating utility other than a combination utility
7    using a baseline of the non-technical line loss unaccounted
8    for energy kilowatthours for the year 2009.
9        (8) Uncollectible expense: reduce uncollectible
10    expense by at least $30,000,000 for a participating utility
11    other than a combination utility and by at least $3,500,000
12    for a participating utility that is a combination utility,
13    using a baseline of the average uncollectible expense for
14    the years 2008 through 2010.
15        (9) Opportunities for minority-owned and female-owned
16    business enterprises: design a performance metric
17    regarding the creation of opportunities for minority-owned
18    and female-owned business enterprises consistent with
19    State and federal law using a base performance value of the
20    percentage of the participating utility's capital
21    expenditures that were paid to minority-owned and
22    female-owned business enterprises in 2010.
23    The definitions set forth in 83 Ill. Admin. Code Part
24411.20 as of May 1, 2011 shall be used for purposes of
25calculating performance under paragraphs (1) through (3.5) (3)
26of this subsection (f), provided, however, that the

 

 

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1participating utility may exclude up to 9 extreme weather event
2days from such calculation for each year, and provided further
3that the participating utility shall exclude 9 extreme weather
4event days when calculating each year of the baseline period to
5the extent that there are 9 such days in a given year of the
6baseline period. For purposes of this Section, an extreme
7weather event day is a 24-hour calendar day (beginning at 12:00
8a.m. and ending at 11:59 p.m.) during which any weather event
9(e.g., storm, tornado) caused interruptions for 10,000 or more
10of the participating utility's customers for 3 hours or more.
11If there are more than 9 extreme weather event days in a year,
12then the utility may choose no more than 9 extreme weather
13event days to exclude, provided that the same extreme weather
14event days are excluded from each of the calculations performed
15under paragraphs (1) through (3.5) (3) of this subsection (f).
16    The metrics shall include incremental performance goals
17for each year of the 10-year period, which shall be designed to
18demonstrate that the utility is on track to achieve the
19performance goal in each category at the end of the 10-year
20period. The utility shall elect when the 10-year period shall
21commence for the metrics set forth in subparagraphs (1) through
22(4) and (9) of this subsection (f), provided that it begins no
23later than 14 months following the date on which the utility
24begins investing pursuant to subsection (b) of this Section,
25and when the 10-year period shall commence for the metrics set
26forth in subparagraphs (5) through (8) of this subsection (f),

 

 

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1provided that it begins no later than 14 months following the
2date on which the Commission enters its order approving the
3utility's Advanced Metering Infrastructure Deployment Plan
4pursuant to subsection (c) of Section 16-108.6 of this Act.
5    The metrics and performance goals set forth in
6subparagraphs (5) through (8) of this subsection (f) are based
7on the assumptions that the participating utility may fully
8implement the technology described in subsection (b) of this
9Section, including utilizing the full functionality of such
10technology and that there is no requirement for personal
11on-site notification. If the utility is unable to meet the
12metrics and performance goals set forth in subparagraphs (5)
13through (8) of this subsection (f) for such reasons, and the
14Commission so finds after notice and hearing, then the utility
15shall be excused from compliance, but only to the limited
16extent achievement of the affected metrics and performance
17goals was hindered by the less than full implementation.
18    (f-5) The financial penalties applicable to the metrics
19described in subparagraphs (1) through (8) of subsection (f) of
20this Section, as applicable, shall be applied through an
21adjustment to the participating utility's return on equity of
22no more than a total of 30 basis points in each of the first 3
23years, of no more than a total of 34 basis points in each of the
243 years thereafter, and of no more than a total of 38 basis
25points in each of the 4 years thereafter, as follows:
26        (1) With respect to each of the incremental annual

 

 

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1    performance goals established pursuant to paragraph (1) of
2    subsection (f) of this Section,
3            (A) for each year that a participating utility
4        other than a combination utility does not achieve the
5        annual goal, the participating utility's return on
6        equity shall be reduced as follows: during years 1
7        through 3, by 5 basis points; during years 4 through 6,
8        by 6 basis points; and during years 7 through 10, by 7
9        basis points; for such unachieved goal for the
10        following 12-month period, and
11            (B) for each year that a participating utility that
12        is a combination utility does not achieve the annual
13        goal, the participating utility's return on equity
14        shall be reduced as follows: during years 1 through 3,
15        by 10 basis points; during years 4 through 6, by 12
16        basis points; and during years 7 through 10, by 14
17        basis points for each such unachieved goal for the
18        following 12-month period.
19        (2) With respect to each of the incremental annual
20    performance goals established pursuant to paragraph
21    subparagraphs (2), (3), and (4) of subsection (f) of this
22    Section, as applicable, for each year that the
23    participating utility does not achieve each such goal, the
24    participating utility's return on equity shall be reduced
25    as follows: during years 1 through 3, by 5 basis points;
26    during years 4 through 6, by 6 basis points; and during

 

 

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1    years 7 through 10, by 7 basis points for each such
2    unachieved goal for the following 12-month period.
3        (3) With respect to each of the incremental annual
4    performance goals established pursuant to paragraphs (3)
5    and (3.5) of subsection (f) of this Section, for each year
6    that a participating utility other than a combination
7    utility does not achieve both such goals, the participating
8    utility's return on equity shall be reduced as follows:
9    during years 1 through 3, by 5 basis points; during years 4
10    through 6, by 6 basis points; and during years 7 through
11    10, by 7 basis points.
12        (4) With respect to each of the incremental annual
13    performance goals established pursuant to paragraph (4) of
14    subsection (f) of this Section, for each year that the
15    participating utility does not achieve each such goal, the
16    participating utility's return on equity shall be reduced
17    as follows: during years 1 through 3, by 5 basis points;
18    during years 4 through 6, by 6 basis points; and during
19    years 7 through 10, by 7 basis points.
20        (5) With respect to each of the incremental annual
21    performance goals established pursuant to subparagraph (5)
22    of subsection (f) of this Section, for each year that the
23    participating utility does not achieve at least 95% of each
24    such goal, the participating utility's return on equity
25    shall be reduced by 5 basis points for each such unachieved
26    goal for the following 12-month period.

 

 

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1        (6) (3) With respect to each of the incremental annual
2    performance goals established pursuant to paragraphs (6),
3    (7), and (8) of subsection (f) of this Section, as
4    applicable, which together measure non-operational
5    customer savings and benefits relating to the
6    implementation of the Advanced Metering Infrastructure
7    Deployment Plan, as defined in Section 16-108.6 of this
8    Act, the performance under each such goal shall be
9    calculated in terms of the percentage of the goal achieved.
10    The percentage of goal achieved for each of the goals shall
11    be aggregated, and an average percentage value calculated,
12    for each year of the 10-year period. If the utility does
13    not achieve an average percentage value in a given year of
14    at least 95%, the participating utility's return on equity
15    shall be reduced by 5 basis points for the following
16    12-month period.
17    The financial penalties shall be applied as described in
18this subsection (f-5) for the 12-month period in which the
19deficiency occurred through a separate tariff mechanism, which
20shall be filed by the utility together with its metrics. In the
21event the formula rate tariff established pursuant to
22subsection (c) of this Section terminates, the utility's
23obligations under subsection (f) of this Section and this
24subsection (f-5) shall also terminate, provided, however, that
25the tariff mechanism established pursuant to subsection (f) of
26this Section and this subsection (f-5) shall remain in effect

 

 

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1until any penalties due and owing at the time of such
2termination are applied.
3    The Commission shall, after notice and hearing, enter an
4order within 120 days after the metrics are filed approving, or
5approving with modification, a participating utility's tariff
6or mechanism to satisfy the metrics set forth in subsection (f)
7of this Section. On June 1 of each subsequent year, each
8participating utility shall file a report with the Commission
9that includes, among other things, a description of how the
10participating utility performed under each metric and an
11identification of any extraordinary events that adversely
12impacted the utility's performance. Whenever a participating
13utility does not satisfy the metrics required pursuant to
14subsection (f) of this Section, the Commission shall, after
15notice and hearing, enter an order approving financial
16penalties in accordance with this subsection (f-5). The
17Commission-approved financial penalties shall be applied
18beginning with the next rate year. Nothing in this Section
19shall authorize the Commission to reduce or otherwise obviate
20the imposition of financial penalties for failing to achieve
21one or more of the metrics established pursuant to subparagraph
22(1) through (4) of subsection (f) of this Section.
23    (g) On or before July 31, 2014, each participating utility
24shall file a report with the Commission that sets forth the
25average annual increase in the average amount paid per
26kilowatthour for residential eligible retail customers,

 

 

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1exclusive of the effects of energy efficiency programs,
2comparing the 12-month period ending May 31, 2012; the 12-month
3period ending May 31, 2013; and the 12-month period ending May
431, 2014. For a participating utility that is a combination
5utility with more than one rate zone, the weighted average
6aggregate increase shall be provided. The report shall be filed
7together with a statement from an independent auditor attesting
8to the accuracy of the report. The cost of the independent
9auditor shall be borne by the participating utility and shall
10not be a recoverable expense.
11    In the event that the average annual increase exceeds 2.5%
12as calculated pursuant to this subsection (g), then Sections
1316-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other
14than this subsection, shall be inoperative as they relate to
15the utility and its service area as of the date of the report
16due to be submitted pursuant to this subsection and the utility
17shall no longer be eligible to annually update the
18performance-based formula rate tariff pursuant to subsection
19(d) of this Section. In such event, the then current rates
20shall remain in effect until such time as new rates are set
21pursuant to Article IX of this Act, subject to retroactive
22adjustment, with interest, to reconcile rates charged with
23actual costs, and the participating utility's voluntary
24commitments and obligations under subsection (b) of this
25Section shall immediately terminate, except for the utility's
26obligation to pay an amount already owed to the fund for

 

 

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1training grants pursuant to a Commission order issued under
2subsection (b) of this Section.
3    In the event that the average annual increase is 2.5% or
4less as calculated pursuant to this subsection (g), then the
5performance-based formula rate shall remain in effect as set
6forth in this Section.
7    For purposes of this Section, the amount per kilowatthour
8means the total amount paid for electric service expressed on a
9per kilowatthour basis, and the total amount paid for electric
10service includes without limitation amounts paid for supply,
11transmission, distribution, surcharges, and add-on taxes
12exclusive of any increases in taxes or new taxes imposed after
13the effective date of this amendatory Act of the 97th General
14Assembly. For purposes of this Section, "eligible retail
15customers" shall have the meaning set forth in Section 16-111.5
16of this Act.
17    The fact that this Section becomes inoperative as set forth
18in this subsection shall not be construed to mean that the
19Commission may reexamine or otherwise reopen prudence or
20reasonableness determinations already made.
21    (h) Sections 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of
22this Act, other than this subsection, are inoperative after
23December 31, 2017 for every participating utility, after which
24time a participating utility shall no longer be eligible to
25annually update the performance-based formula rate tariff
26pursuant to subsection (d) of this Section. At such time, the

 

 

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1then current rates shall remain in effect until such time as
2new rates are set pursuant to Article IX of this Act, subject
3to retroactive adjustment, with interest, to reconcile rates
4charged with actual costs.
5    By December 31, 2017, the Commission shall prepare and file
6with the General Assembly a report on the infrastructure
7program and the performance-based formula rate. The report
8shall include the change in the average amount per kilowatthour
9paid by residential customers between June 1, 2011 and May 31,
102017. If the change in the total average rate paid exceeds 2.5%
11compounded annually, the Commission shall include in the report
12an analysis that shows the portion of the change due to the
13delivery services component and the portion of the change due
14to the supply component of the rate. The report shall include
15separate sections for each participating utility.
16    In the event Sections 16-108.5, 16-108.6, 16-108.7, and
1716-108.8 of this Act do not become inoperative after December
1831, 2017, then these Sections are inoperative after December
1931, 2022 for every participating utility, after which time a
20participating utility shall no longer be eligible to annually
21update the performance-based formula rate tariff pursuant to
22subsection (d) of this Section. At such time, the then current
23rates shall remain in effect until such time as new rates are
24set pursuant to Article IX of this Act, subject to retroactive
25adjustment, with interest, to reconcile rates charged with
26actual costs.

 

 

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1    The fact that this Section becomes inoperative as set forth
2in this subsection shall not be construed to mean that the
3Commission may reexamine or otherwise reopen prudence or
4reasonableness determinations already made.
5    (i) While a participating utility may use, develop, and
6maintain broadband systems and the delivery of broadband
7services, voice-over-internet-protocol services,
8telecommunications services, and cable and video programming
9services for use in providing delivery services and Smart Grid
10functionality or application to its retail customers,
11including, but not limited to, the installation,
12implementation and maintenance of Smart Grid electric system
13upgrades as defined in Section 16-108.6 of this Act, a
14participating utility is prohibited from offering to its retail
15customers broadband services or the delivery of broadband
16services, voice-over-internet-protocol services,
17telecommunications services, or cable or video programming
18services, unless they are part of a service directly related to
19delivery services or Smart Grid functionality or applications
20as defined in Section 16-108.6 of this Act, and from recovering
21the costs of such offerings from retail customers.
22    (j) Nothing in this Section is intended to legislatively
23overturn the opinion issued in Commonwealth Edison Co. v. Ill.
24Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137,
251-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App.
26Ct. 2d Dist. Sept. 30, 2010). This amendatory Act of the 97th

 

 

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1General Assembly shall not be construed as creating a contract
2between the General Assembly and the participating utility, and
3shall not establish a property right in the participating
4utility.
5(Source: 09700SB1652enr.)
 
6    (220 ILCS 5/16-108.6)
7    Sec. 16-108.6. Provisions relating to Smart Grid Advanced
8Metering Infrastructure Deployment Plan.
9    (a) For purposes of this Section and Sections 16-108.7 and
1016-108.8 of this Act:
11    "Advanced Metering Infrastructure" or "AMI" means the
12communications hardware and software and associated system
13software that enables Smart Grid functions by creating a
14network between advanced meters and utility business systems
15and allowing collection and distribution of information to
16customers and other parties in addition to providing
17information to the utility itself.
18    "Cost-beneficial" means a determination that the benefits
19of a participating utility's Smart Grid AMI Deployment Plan
20exceed the costs of the Smart Grid AMI Deployment Plan as
21initially filed with the Commission or as subsequently modified
22by the Commission. This standard is met if the present value of
23the total benefits of the Smart Grid AMI Deployment Plan
24exceeds the present value of the total costs of the Smart Grid
25AMI Deployment Plan. The total cost shall include all utility

 

 

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1costs reasonably associated with the Smart Grid AMI Deployment
2Plan. The total benefits shall include the sum of avoided
3electricity costs, including avoided utility operational
4costs, avoided consumer power, capacity, and energy costs, and
5avoided societal costs associated with the production and
6consumption of electricity, as well as other societal benefits,
7including the greater integration of renewable and distributed
8power resources, reductions in the emissions of harmful
9pollutants and associated avoided health-related costs, other
10benefits associated with energy efficiency measures,
11demand-response activities, and the enabling of greater
12penetration of alternative fuel vehicles.
13    "Participating utility" has the meaning set forth in
14Section 16-108.5 of this Act.
15    "Smart Grid" means investments and policies that together
16promote one or more of the following goals:
17        (1) Increased use of digital information and controls
18    technology to improve reliability, security, and
19    efficiency of the electric grid.
20        (2) Dynamic optimization of grid operations and
21    resources, with full cyber security.
22        (3) Deployment and integration of distributed
23    resources and generation, including renewable resources.
24        (4) Development and incorporation of demand-response,
25    demand-side resources, and energy efficiency resources.
26        (5) Deployment of "smart" technologies (real-time,

 

 

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1    automated, interactive technologies that optimize the
2    physical operation of appliances and consumer devices) for
3    metering, communications concerning grid operations and
4    status, and distribution automation.
5        (6) Integration of "smart" appliances and consumer
6    devices.
7        (7) Deployment and integration of advanced electricity
8    storage and peak-shaving technologies, including plug-in
9    electric and hybrid electric vehicles, thermal-storage air
10    conditioning and renewable energy generation.
11        (8) Provision to consumers of timely information and
12    control options.
13        (9) Development of open access standards for
14    communication and interoperability of appliances and
15    equipment connected to the electric grid, including the
16    infrastructure serving the grid.
17        (10) Identification and lowering of unreasonable or
18    unnecessary barriers to adoption of Smart Grid
19    technologies, practices, services, and business models
20    that support energy efficiency, demand-response, and
21    distributed generation.
22    "Smart Grid Advisory Council" means the group of
23stakeholders formed pursuant to subsection (b) of this Section
24for the purposes of advising and working with participating
25utilities on the development and implementation of a Smart Grid
26Advanced Metering Infrastructure Deployment Plan.

 

 

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1    "Smart Grid electric system upgrades" means any of the
2following:
3        (1) metering devices, sensors, control devices, and
4    other devices integrated with and attached to an electric
5    utility system that are capable of engaging in Smart Grid
6    functions;
7        (2) other monitoring and communications devices that
8    enable Smart Grid functions, including, but not limited to,
9    distribution automation;
10        (3) software that enables devices or computers to
11    engage in Smart Grid functions;
12        (4) associated cyber secure data communication
13    network, including enhancements to cyber-security
14    technologies and measures;
15        (5) substation micro-processor relay upgrades;
16        (6) devices that allow electric or hybrid-electric
17    vehicles to engage in Smart Grid functions; or
18        (7) devices that enable individual consumers to
19    incorporate distributed and micro-generation.
20    "Smart Grid electric system upgrades" does not include
21expenditures for: (1) electricity generation, transmission, or
22distribution infrastructure or equipment that does not
23directly relate to or support installing, implementing or
24enabling Smart Grid functions; (2) physical interconnection of
25generators or other devices to the grid except those that are
26directly related to enabling Smart Grid functions; or (3)

 

 

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1ongoing or routine operation, billing, customer relations,
2security, and maintenance.
3    "Smart Grid functions" means:
4        (1) the ability to develop, store, send, and receive
5    digital information concerning or enabling grid
6    operations, electricity use, costs, prices, time of use,
7    nature of use, storage, or other information relevant to
8    device, grid, or utility operations, to or from or by means
9    of the electric utility system through one or a combination
10    of devices and technologies;
11        (2) the ability to develop, store, send, and receive
12    digital information concerning electricity use, costs,
13    prices, time of use, nature of use, storage, or other
14    information relevant to device, grid, or utility
15    operations to or from a computer or other control device;
16        (3) the ability to measure or monitor electricity use
17    as a function of time of day, power quality characteristics
18    such as voltage level, current, cycles per second, or
19    source or type of generation and to store, synthesize, or
20    report that information by digital means;
21        (4) the ability to sense and localize disruptions or
22    changes in power flows on the grid and communicate such
23    information instantaneously and automatically for purposes
24    of enabling automatic protective responses to sustain
25    reliability and security of grid operations;
26        (5) the ability to detect, prevent, communicate with

 

 

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1    regard to, respond to, or recover from system security
2    threats, including cyber-security threats and terrorism,
3    using digital information, media, and devices;
4        (6) the ability of any device or machine to respond to
5    signals, measurements, or communications automatically or
6    in a manner programmed by its owner or operator without
7    independent human intervention;
8        (7) the ability to use digital information to operate
9    functionalities on the electric utility grid that were
10    previously electro-mechanical or manual;
11        (8) the ability to use digital controls to manage and
12    modify electricity demand, enable congestion management,
13    assist in voltage control, provide operating reserves, and
14    provide frequency regulation; or
15        (9) the ability to integrate electric plug-in
16    vehicles, distributed generation, and storage in a safe and
17    cost-effective manner on the electric grid.
18    (b) Within 30 days after the effective date of this
19amendatory Act of the 97th General Assembly, the Smart Grid
20Advisory Council shall be established, which shall consist of 9
217 total voting members with each member possessing either
22technical, business or consumer expertise in Smart Grid issues,
235 of whom shall be appointed by and each having been the single
24appointment of one of the following: the Governor, one of whom
25shall be appointed by the Speaker of the House, one of whom
26shall be appointed by the Minority Leader of the House, one of

 

 

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1whom shall be appointed by the President of the Senate, and one
2of whom shall be appointed by the Minority Leader of the
3Senate. Of the Governor's 5 appointments: (i) at least one must
4represent a non-profit membership organization whose mission
5is to cultivate innovation and technology-based economic
6development in Illinois by fostering public-private
7partnerships to develop and execute research and development
8projects, advocating for funding for research and development
9initiatives, and collaborating with public and private
10partners to attract and retain research and development
11resources and talent in Illinois; (ii) at least one must
12represent a non-profit public body corporate and politic
13created by law that has a duty to represent and protect
14residential utility consumers in Illinois; (iii) at least one
15must represent a membership organization that represents the
16interests of individuals and companies that own, operate,
17manage, and service commercial buildings in a municipality with
18a population of 1,000,000 or more inhabitants; and (iv) at
19least one must represent an alternative retail electric
20supplier that has obtained a certificate of service authority
21pursuant to Section 16-115 of this Act and that is not an
22affiliate of a participating utility prior to one year after
23the effective date of this amendatory Act of the 97th General
24Assembly , the Illinois Science and Technology Coalition, and
25the Citizens Utility Board.
26    The Governor shall designate one of the members of the

 

 

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1Council to serve as chairman, and that person shall serve as
2the chairman at the pleasure of the Governor. The members shall
3not be compensated for serving on the Smart Grid Advisory
4Council. The Smart Grid Advisory Council shall have the
5following duties:
6        (1) Serve as an advisor to participating utilities
7    subject to this Section and in the manner described in this
8    Section, and the recommendations provided by the Council,
9    although non-binding, shall be considered by the
10    utilities.
11        (2) Serve as trustees of the trust or foundation
12    established pursuant to Section 16-108.7 of this Act with
13    the duties enumerated thereunder.
14    (c) After consultation with the Smart Grid Advisory
15Council, each participating utility shall file a Smart Grid
16Advanced Metering Infrastructure Deployment Plan ("AMI Plan")
17with the Commission within 180 days after the effective date of
18this amendatory Act of the 97th General Assembly or by November
191, 2011, whichever is later, or in the case of a combination
20utility as defined in Section 16-108.5, by April 1, 2012,
21provided that a participating utility shall not file its plan
22until the evaluation report on the Pilot Program described in
23this subsection (c) is issued. The AMI Plan shall provide for
24investment over a 10-year period that is sufficient to
25implement the AMI Plan across its entire service territory in a
26manner that is consistent with subsection (b) of Section

 

 

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116-108.5 of this Act. The AMI Plan shall contain:
2        (1) the participating utility's Smart Grid AMI vision
3    statement that is consistent with the goal of developing a
4    cost-beneficial Smart Grid;
5        (2) a statement of Smart Grid AMI strategy that
6    includes a description of how the utility evaluates and
7    prioritizes technology choices to create customer value,
8    including a plan to enhance and enable customers' ability
9    to take advantage of Smart Grid functions beginning at the
10    time an account has billed successfully on the AMI network;
11        (3) a deployment schedule and plan that includes
12    deployment of AMI to all customers for a participating
13    utility other than a combination utility, and to 62% of all
14    customers for a participating utility that is a combination
15    utility;
16        (4) annual milestones and metrics for the purposes of
17    measuring the success of the AMI Plan in enabling Smart
18    Grid functions; and enhancing consumer benefits from Smart
19    Grid AMI; and
20        (5) a plan for the consumer education to be implemented
21    by the participating utility.
22    The AMI Plan shall be fully consistent with the standards
23of the National Institute of Standard and Technology (NIST) for
24Smart Grid interoperability that are in effect at the time the
25participating utility files its AMI Plan, shall include open
26standards and internet protocol to the maximum extent possible

 

 

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1consistent with cyber security, and shall maximize, to the
2extent possible, a flexible smart meter platform that can
3accept remote device upgrades and contain sufficient internal
4memory capacity for additional storage capabilities, functions
5and services without the need for physical access to the meter.
6    The AMI Plan shall secure the privacy of personal
7information and establish the right of consumers to consent to
8the disclosure of personal energy information to third parties
9through electronic, web-based, and other means in accordance
10with State and federal law and regulations regarding consumer
11privacy and protection of consumer data.
12    After notice and hearing, the Commission shall, within 60
13days of the filing of an AMI Plan, issue its order approving,
14or approving with modification, the AMI Plan if the Commission
15finds that the AMI Plan contains the information required in
16paragraphs (1) through (5) of this subsection (c) and further
17finds that the implementation of the AMI Plan will be
18cost-beneficial consistent with the principles established
19through the Illinois Smart Grid Collaborative, giving weight to
20the results of any Commission-approved pilot designed to
21examine the benefits and costs of AMI deployment. A
22participating utility's decision to invest pursuant to an AMI
23Plan approved by the Commission shall not be subject to
24prudence reviews in subsequent Commission proceedings. Nothing
25in this subsection (c) is intended to limit the Commission's
26ability to review the reasonableness of the costs incurred

 

 

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1under the AMI Plan. A participating utility shall be allowed to
2recover the reasonable costs it incurs in implementing a
3Commission-approved AMI Plan, including the costs of retired
4meters, and may recover such costs through its tariffs,
5including the performance-based formula rate tariff approved
6pursuant to subsection (c) of Section 16-108.5 of this Act.
7    (d) The AMI Plan shall secure the privacy of the customer's
8personal information. "Personal information" for this purpose
9consists of the customer's name, address, telephone number, and
10other personally identifying information, as well as
11information about the customer's electric usage. Electric
12utilities, their contractors or agents, and any third party who
13comes into possession of such personal information by virtue of
14working on Smart Grid technology shall not disclose such
15personal information to be used in mailing lists or to be used
16for other commercial purposes not reasonably related to the
17conduct of the utility's business. Electric utilities shall
18comply with the consumer privacy requirements of the Personal
19Information Protection Act. In the event a participating
20utility receives revenues from the sale of information obtained
21through Smart Grid technology that is not personal information,
22the participating utility shall use such revenues to offset the
23revenue requirement.
24    (e) On April 1 of each year beginning in 2013 and after
25consultation with the Smart Grid Advisory Council, each
26participating utility shall submit a report regarding the

 

 

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1progress it has made toward completing implementation of its
2AMI Plan. This report shall:
3        (1) describe the AMI investments made during the prior
4    12 months and the AMI investments planned to be made in the
5    following 12 months;
6        (2) provide sufficient detail to determine the
7    utility's progress in meeting the metrics and milestones
8    identified by the utility in its AMI Plan; and
9        (3) identify any updates to the AMI Plan.
10    Within 21 days after the utility files its annual report,
11the Commission shall have authority, either upon complaint or
12its own initiative, but with reasonable notice, to enter upon
13an investigation regarding the utility's progress in
14implementing the AMI Plan as described in paragraph (1) of this
15subsection (e). If the Commission finds, after notice and
16hearing, that the participating utility's progress in
17implementing the AMI Plan is materially deficient for the given
18plan year, then the Commission shall issue an order requiring
19the participating utility to devise a corrective action plan,
20subject to Commission approval and oversight, to bring
21implementation back on schedule consistent with the AMI Plan.
22The Commission's order must be entered within 90 days after the
23utility files its annual report. If the Commission does not
24initiate an investigation within 21 days after the utility
25files its annual report, then the filing shall be deemed
26accepted by the Commission. The utility shall not be required

 

 

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1to suspend implementation of its AMI Plan during any Commission
2investigation.
3    The participating utility's annual report regarding AMI
4Plan year 10 shall contain a statement verifying that the
5implementation of its AMI Plan is complete, provided, however,
6that if the utility is subject to a corrective action plan that
7extends the implementation period beyond 10 years, the utility
8shall include the verification statement in its final annual
9report. Following the date of a Commission order approving the
10final annual report or the date on which the final report is
11deemed accepted by the Commission, the utility's annual
12reporting obligations under this subsection (d) shall
13terminate, provided, however, that the utility shall have a
14continuing obligation to provide information, upon request, to
15the Commission and Smart Grid Advisory Council regarding the
16AMI Plan.
17    (f) Each participating utility shall pay a pro rata share,
18based on number of customers, of $5,000,000 per year to the
19trust or foundation established pursuant to Section 16-108.7 of
20this Act for each plan year of the AMI Plan, which shall be
21used for purposes of providing customer education regarding
22smart meters and related consumer-facing technologies and
23services and 70% of which shall be a recoverable expense;
24provided that other reasonable amounts expended by the utility
25for such consumer education shall not be subject to the 70%
26limitation of this subsection.

 

 

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1    (g) Within 60 days after the Commission approves a
2participating utility's AMI Plan pursuant to subsection (c) of
3this Section, the participating utility, after consultation
4with the Smart Grid Advisory Council, shall file a proposed
5tariff with the Commission that offers an opt-in market-based
6peak time rebate program to all residential retail customers
7with smart meters that is designed to provide, in a
8competitively neutral manner, rebates to those residential
9retail customers that curtail their use of electricity during
10specific periods that are identified as peak usage periods. The
11total amount of rebates shall be the amount of compensation the
12utility obtains through markets or programs at the applicable
13regional transmission organization. The utility shall make all
14reasonable attempts to secure funding for the peak time rebate
15program through markets or programs at the applicable regional
16transmission organization. The rules and procedures for
17consumers to opt-in to the peak time rebate program shall
18include electronic sign-up, be designed to maximize
19participation, and be included on the utility's website. The
20Commission shall monitor the performance of programs
21established pursuant to this subsection (g) and shall order the
22termination or modification of a program if it determines that
23the program is not, after a reasonable period of time for
24development of at least 4 years, resulting in net benefits to
25the residential customers of the participating utility.
26    (h) If Section 16-108.5 of this Act becomes inoperative

 

 

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1with respect to one or more participating utilities as set
2forth in subsection (g) or (h) of that Section, then Sections
316-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act shall
4become inoperative as to each affected utility and its service
5area on the same date as Section 16-108.5 becomes inoperative.
6(Source: 09700SB1652enr.)
 
7    (220 ILCS 5/16-108.7)
8    Sec. 16-108.7. Illinois Science and Energy Innovation
9Trust.
10    (a) Within 90 days of the effective date of this amendatory
11Act of the 97th General Assembly, the members of the Smart Grid
12Advisory Council established pursuant to Section 16-108.6 of
13this Act, or a majority of the members thereof, shall cause to
14be established an Illinois science and energy innovation trust
15or foundation for the purposes of providing financial and
16technical support and assistance to entities, public or
17private, within the State of Illinois including, but not
18limited to, units of State and local government, educational
19and research institutions, corporations, and charitable,
20educational, environmental and community organizations, for
21programs and projects that support, encourage or utilize
22innovative technologies or other methods of modernizing the
23State's electric grid that will benefit the public by promoting
24economic development in Illinois. Such activities shall be
25supported through grants, loans, contracts, or other programs

 

 

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1designed to assist and further benefit technological advances
2in the area of electric grid modernization and operation. The
3trust or foundation shall also be eligible for receipt of other
4energy and environmental grant opportunities, from public or
5private sources. The trust or foundation shall not be a
6governmental entity.
7    (b) Funds received by the trust or foundation pursuant to
8subsection (f) of Section 16-108.6 of this Act shall be used
9solely for the purpose of providing consumer education
10regarding smart meters and related consumer-facing
11technologies and services and the peak time rebate program
12described in subsection (g) of Section 16-108.6 of this Act.
13Thirty percent of such funds received from each participating
14utility shall be used by the trust or foundation for purposes
15of providing such education to each participating utility's
16low-income retail customers, including low-income senior
17citizens.
18    The trust or foundation shall use all funds received
19pursuant to subsection (f) of Section 16-108.6 of this Act in a
20manner that reflects the unique needs and characteristics of
21each participating utility's service territory and in
22proportion to each participating utility's payment.
23    (c) Such trust or foundation shall be governed by a
24declaration of trust or articles of incorporation and bylaws
25which shall, at a minimum, provide the following:
26        (1) There shall initially be 9 7 trustees of the trust

 

 

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1    or foundation, which shall consist of the members of the
2    Smart Grid Advisory Council established pursuant to
3    Section 16-108.6 of this Act. Subsequently, the
4    participating utilities shall appoint one trustee and the
5    Clean Energy Trust shall appoint one non-voting trustee who
6    shall provide expertise regarding early stage investment
7    in Smart Grid projects.
8        (2) All trustees shall be entitled to reimbursement for
9    reasonable expenses incurred on behalf of the trust in the
10    performance of their duties as trustees. All such
11    reimbursements shall be paid out of the trust.
12        (3) Trustees shall be appointed within 60 days after
13    the creation of the trust or foundation and shall serve for
14    a term of 5 years commencing upon the date of their
15    respective appointments, until their respective successors
16    are appointed and qualified.
17        (4) A vacancy in the office of trustee shall be filled
18    by the person holding the office responsible for appointing
19    the trustee whose death or resignation creates the vacancy,
20    and a trustee appointed to fill a vacancy shall serve the
21    remainder of the term of the trustee whose resignation or
22    death created the vacancy.
23        (5) The trust or foundation shall have an indefinite
24    term and shall terminate at such time as no trust assets
25    remain.
26        (6) The allocation and disbursement of funds for the

 

 

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1    various purposes for which the trust or foundation is
2    established shall be determined by the trustees in
3    accordance with the declaration of trust or the articles of
4    incorporation and bylaws.
5        (7) The trust or foundation shall be authorized to
6    employ an executive director and other employees, or
7    contract management of the trust or foundation in its
8    entirety to an outside organization found suitable by the
9    trustees, to enter into leases, contracts and other
10    obligations on behalf of the trust or foundation, and to
11    incur expenses that the trustees deem necessary or
12    appropriate for the fulfillment of the purposes for which
13    the trust or foundation is established, provided, however,
14    that salaries and administrative expenses incurred on
15    behalf of the trust or foundation shall not exceed 3% of
16    the trust's principal value, or $750,000, whichever is
17    greater, in any given year. The trustees shall not be
18    compensated by the trust or foundation.
19        (8) The trustees may create and appoint advisory boards
20    or committees to assist them with the administration of the
21    trust or foundation, and to advise and make recommendations
22    to them regarding the contribution and disbursement of the
23    trust or foundation funds.
24        (9) All funds dispersed by the trust or foundation for
25    programs and projects to meet the objectives of the trust
26    or foundation as enumerated in this Section shall be

 

 

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1    subject to a peer-review process as determined by the
2    trustees. This process shall be designed to determine, in
3    an objective and unbiased manner, those programs and
4    projects that best fit the objectives of the trust or
5    foundation. In each fiscal year the trustees shall
6    determine, based solely on the information provided
7    through the peer-review process, a budget for programs and
8    projects for that fiscal year.
9        (10) The trustees shall administer a Smart Grid
10    education fund from which it shall make grants to qualified
11    not-for-profit organizations for the purpose of educating
12    customers with regard to smart meters and related
13    consumer-facing technologies and services. In making such
14    grants the trust or foundation shall strongly encourage
15    grantees to coordinate to the extent practicable and
16    consider recommendations from the participating utilities
17    regarding the development and implementation of customer
18    education plans.
19        (11) One of the objectives of the trust or foundation
20    is to remain self-funding. In order to meet this objective,
21    the trustees may sign agreements with those entities
22    receiving funding that provide for license fees,
23    royalties, or other payments to the trust or foundation
24    from such entities that receive support for their product
25    development from the trust or foundation. Such payments,
26    however, shall be contingent on the commercialization of

 

 

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1    such products, services, or technologies enabled by the
2    funding provided by the trust or foundation.
3    (d) The trustees shall notify each participating utility as
4defined in Section 16-108.5 of this Act of the formation of the
5trust or foundation. Within 90 days after receipt of the
6notification, each participating utility that is not a
7combination utility as defined in Section 16-108.5 of this Act
8shall contribute $15,000,000 to the trust or foundation, and
9each participating utility that is a combination utility, as
10defined in Section 16-108.5 of this Act, shall contribute
11$7,500,000 to the trust or foundation established pursuant to
12this Section. Such contributions shall not be a recoverable
13expense.
14    (e) If Section 16-108.5 of this Act becomes inoperative
15with respect to one or more participating utilities as set
16forth in subsection (g) or (h) of that Section, then Sections
1716-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act shall
18become inoperative as to each affected utility and its service
19area on the same date as Section 16-108.5 becomes inoperative.
20(Source: 09700SB1652enr.)
 
21    (220 ILCS 5/16-128)
22    Sec. 16-128. Provisions related to utility employees
23during the mandatory transition period.
24    (a) The General Assembly finds:
25        (1) The reliability and safety of the electric system

 

 

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1    has depended and depends on a workforce of skilled and
2    dedicated employees, equipped with technical training and
3    experience.
4        (2) The integrity and reliability of the system also
5    requires the industry's commitment to invest in regular
6    inspection and maintenance, to assure that it can withstand
7    the demands of heavy service requirements and emergency
8    situations.
9        (3) It is in the State's interest to protect the
10    interests of utility employees who have and continue to
11    dedicate themselves to assuring reliable service to the
12    citizens of this State, and who might otherwise be
13    economically displaced in a restructured industry.
14    The General Assembly further finds that it is necessary to
15assure that employees of electric utilities and employees of
16contractors or subcontractors performing work on behalf of an
17electric utility operating in the deregulated industry have the
18requisite skills, knowledge, training, experience, and
19competence to provide reliable and safe electrical service
20under this Act.
21    The General Assembly also finds that it is necessary to
22assure that employees of alternative retail electric suppliers
23and employees of contractors or subcontractors performing work
24on behalf of an alternative retail electric supplier operating
25in the deregulated industry have the requisite skills,
26knowledge, training, experience, and competence to provide

 

 

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1reliable and safe electrical service under this Act.
2    To ensure that these findings and prerequisites for
3reliable and safe electrical service continue to prevail, each
4alternative retail electric supplier, electric utility, and
5contractors and subcontractors performing work on behalf of an
6electric utility or alternative retail electric supplier must
7demonstrate the competence of their respective employees to
8work on the distribution system.
9    The knowledge, skill, training, experience, and competence
10levels to be demonstrated shall be consistent with those
11required of or by the electric utilities in this State as of
12January 1, 2007, with respect to their employees and employees
13of contractors or subcontractors performing work on their
14behalf. Nothing in this Section shall prohibit an electric
15utility from establishing knowledge, skill, training,
16experience, and competence levels greater than those required
17as of January 1, 2007.
18    An adequate demonstration of requisite knowledge, skill,
19training, experience, and competence shall include, at a
20minimum, completion or current participation and ultimate
21completion by the employee of an accredited or otherwise
22recognized apprenticeship program for the particular craft,
23trade or skill, or specified and several years of employment
24performing a particular work function that is utilized by an
25electric utility.
26    Notwithstanding any law, tariff, Commission rule, order,

 

 

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1or decision to the contrary, the Commission shall have an
2affirmative statutory obligation to ensure that an electric
3utility is employing employees, contractors, and
4subcontractors with employees who meet the requirements of
5subsection (a) of this Section when installing, constructing,
6operating, and maintaining generation, transmission, or
7distribution facilities and equipment within this State
8pursuant to any provision in this Act or any Commission order,
9rule, or decision.
10    For purposes of this Section, "distribution facilities and
11equipment" means any and all of the facilities and equipment,
12including, but not limited to, substations, distribution
13feeder circuits, switches, meters, protective equipment,
14primary circuits, distribution transformers, line extensions
15and service extensions both above or below ground, conduit,
16risers, elbows, transformer pads, junction boxes, manholes,
17pedestals, conductors, and all associated fittings that
18connect the transmission or distribution system to either the
19weatherhead on the retail customer's building or other
20structure for above ground service or to the terminals on the
21meter base of the retail customer's building or other structure
22for below ground service.
23    To implement this requirement for alternative retail
24electric suppliers, the Commission, in determining that an
25applicant meets the standards for certification as an
26alternative retail electric supplier, shall require the

 

 

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1applicant to demonstrate (i) that the applicant is licensed to
2do business, and bonded, in the State of Illinois; and (ii)
3that the employees of the applicant that will be installing,
4operating, and maintaining generation, transmission, or
5distribution facilities within this State, or any entity with
6which the applicant has contracted to perform those functions
7within this State, have the requisite knowledge, skills,
8training, experience, and competence to perform those
9functions in a safe and responsible manner in order to provide
10safe and reliable service, in accordance with the criteria
11stated above.
12    (b) The General Assembly finds, based on experience in
13other industries that have undergone similar transitions, that
14the introduction of competition into the State's electric
15utility industry may result in workforce reductions by electric
16utilities which may adversely affect persons who have been
17employed by this State's electric utilities in functions
18important to the public convenience and welfare. The General
19Assembly further finds that the impacts on employees and their
20communities of any necessary reductions in the utility
21workforce directly caused by this restructuring of the electric
22industry shall be mitigated to the extent practicable through
23such means as offers of voluntary severance, retraining, early
24retirement, outplacement and related benefits. Therefore,
25before any such reduction in the workforce during the
26transition period, an electric utility shall present to its

 

 

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1employees or their representatives a workforce reduction plan
2outlining the means by which the electric utility intends to
3mitigate the impact of such workforce reduction on its
4employees.
5    (c) In the event of a sale, purchase, or any other transfer
6of ownership during the mandatory transition period of one or
7more Illinois divisions or business units, and/or generating
8stations or generating units, of an electric utility, the
9electric utility's contract and/or agreements with the
10acquiring entity or persons shall require that the entity or
11persons hire a sufficient number of non-supervisory employees
12to operate and maintain the station, division or unit by
13initially making offers of employment to the non-supervisory
14workforce of the electric utility's division, business unit,
15generating station and/or generating unit at no less than the
16wage rates, and substantially equivalent fringe benefits and
17terms and conditions of employment that are in effect at the
18time of transfer of ownership of said division, business unit,
19generating station, and/or generating units; and said wage
20rates and substantially equivalent fringe benefits and terms
21and conditions of employment shall continue for at least 30
22months from the time of said transfer of ownership unless the
23parties mutually agree to different terms and conditions of
24employment within that 30-month period. The utility shall offer
25a transition plan to those employees who are not offered jobs
26by the acquiring entity because that entity has a need for

 

 

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1fewer workers. If there is litigation concerning the sale, or
2other transfer of ownership of the electric utility's
3divisions, business units, generating station, or generating
4units, the 30-month period will begin on the date the acquiring
5entity or persons take control or management of the divisions,
6business units, generating station or generating units of the
7electric utility.
8    (d) If a utility transfers ownership during the mandatory
9transition period of one or more Illinois divisions, business
10units, generating stations or generating units of an electric
11utility to a majority-owned subsidiary, that subsidiary shall
12continue to employ the utility's employees who were employed by
13the utility at such division, business unit or generating
14station at the time of the transfer under the same terms and
15conditions of employment as those employees enjoyed at the time
16of the transfer. If ownership of the subsidiary is subsequently
17sold or transferred to a third party during the transition
18period, the transition provisions outlined in subsection (c)
19shall apply.
20    (e) The plant transfer provisions set forth above shall not
21apply to any generating station which was the subject of a
22sales agreement entered into before January 1, 1997.
23(Source: P.A. 90-561, eff. 12-16-97; 09700SB1652enr.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.