97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB0680

 

Introduced 2/8/2011, by Sen. John J. Cullerton

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/16-101A

    Amends the Public Utilities Act. Makes a technical change in a Section concerning legislative findings.


LRB097 04946 ASK 44986 b

 

 

A BILL FOR

 

SB0680LRB097 04946 ASK 44986 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by changing
5Section 16-101A as follows:
 
6    (220 ILCS 5/16-101A)
7    Sec. 16-101A. Legislative findings.
8    (a) The The citizens and businesses of the State of
9Illinois have been well-served by a comprehensive electrical
10utility system which has provided safe, reliable, and
11affordable service. The electrical utility system in the State
12of Illinois has historically been subject to State and federal
13regulation, aimed at assuring the citizens and businesses of
14the State of safe, reliable, and affordable service, while at
15the same time assuring the utility system of a return on its
16investment.
17    (b) Competitive forces are affecting the market for
18electricity as a result of recent federal regulatory and
19statutory changes and the activities of other states.
20Competition in the electric services market may create
21opportunities for new products and services for customers and
22lower costs for users of electricity. Long-standing regulatory
23relationships need to be altered to accommodate the competition

 

 

SB0680- 2 -LRB097 04946 ASK 44986 b

1that could fundamentally alter the structure of the electric
2services market.
3    (c) With the advent of increasing competition in this
4industry, the State has a continued interest in assuring that
5the safety, reliability, and affordability of electrical power
6is not sacrificed to competitive pressures, and to that end,
7intends to implement safeguards to assure that the industry
8continues to operate the electrical system in a manner that
9will serve the public's interest. Under the existing regulatory
10framework, the industry has been encouraged to undertake
11certain investments in its physical plant and personnel to
12enhance its efficient operation, the cost of which it has been
13permitted to pass on to consumers. The State has an interest in
14providing the existing utilities a reasonable opportunity to
15obtain a return on certain investments on which they depended
16in undertaking those commitments in the first instance while,
17at the same time, not permitting new entrants into the industry
18to take unreasonable advantage of the investments made by the
19formerly regulated industry.
20    (d) A competitive wholesale and retail market must benefit
21all Illinois citizens. The Illinois Commerce Commission should
22act to promote the development of an effectively competitive
23electricity market that operates efficiently and is equitable
24to all consumers. Consumer protections must be in place to
25ensure that all customers continue to receive safe, reliable,
26affordable, and environmentally safe electric service.

 

 

SB0680- 3 -LRB097 04946 ASK 44986 b

1    (e) All consumers must benefit in an equitable and timely
2fashion from the lower costs for electricity that result from
3retail and wholesale competition and receive sufficient
4information to make informed choices among suppliers and
5services. The use of renewable resources and energy efficiency
6resources should be encouraged in competitive markets.
7    (f) The efficiency of electric markets depends both upon
8the competitiveness of supply and upon the
9price-responsiveness of the demand for service. Therefore, to
10ensure the lowest total cost of service and to enhance the
11reliability of service, all classes of the electricity
12customers of electric utilities should have access to and be
13able to voluntarily use real-time pricing and other
14price-response and demand-response mechanisms.
15    (g) Including cost-effective renewable resources and
16demand-response resources in a diverse electricity supply
17portfolio will reduce long-term direct and indirect costs to
18consumers by decreasing environmental impacts and by avoiding
19or delaying the need for new generation, transmission, and
20distribution infrastructure. It serves the public interest to
21allow electric utilities to recover costs for reasonably and
22prudently incurred expenses for electricity generated by
23renewable resources and demand-response resources.
24    (h) Including electricity generated by clean coal
25facilities, as defined under Section 1-10 of the Illinois Power
26Agency Act, in a diverse electricity procurement portfolio will

 

 

SB0680- 4 -LRB097 04946 ASK 44986 b

1reduce the need to purchase, directly or indirectly, carbon
2dioxide emission credits and will decrease environmental
3impacts. It serves the public interest to allow electric
4utilities to recover costs for reasonably and prudently
5incurred expenses for sourcing electricity generated by clean
6coal facilities.
7(Source: P.A. 94-977, eff. 6-30-06; 95-481, eff. 8-28-07;
895-1027, eff. 6-1-09.)