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90_HB0362sam002
SRS90HB0362JJsaam02
1 AMENDMENT TO HOUSE BILL 362
2 AMENDMENT NO. . Amend House Bill 362 by replacing
3 the title with the following:
4 "AN ACT in relation to the competitive provision of
5 utility services, amending named Acts."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "ARTICLE I
9 Section 5. The Public Utilities Act is amended by adding
10 Articles XVI, XVII, and XVIII as follows:
11 (220 ILCS 5/Art. XVI heading new)
12 ARTICLE XVI. ELECTRIC SERVICE CUSTOMER CHOICE AND RATE
13 RELIEF LAW OF 1997
14 (220 ILCS 5/16-101 new)
15 Sec. 16-101. Short title and applicability.
16 (a) This Article may be cited as the Electric Service
17 Customer Choice and Rate Relief Law of 1997 and shall apply
18 to electric utilities and alternative retail electric
19 suppliers as defined in this Article. Except to the extent
20 modified or supplemented by the provisions of this Article,
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1 or where the context clearly renders such provisions
2 inapplicable, the other Articles of the Public Utilities Act
3 pertaining to public utilities, public utility rates and
4 services and the regulation thereof, are fully and equally
5 applicable to the tariffed services electric utilities
6 provide.
7 (b) The provisions of subsections (a) through (h) of
8 Section 16-111 of this Act shall not be applicable to any
9 electric utility which elects to file biennial rate
10 proceedings before the Commission in the years 1998, 2000 and
11 2002. An electric utility electing this option shall do so
12 by filing a notice of such election with the Commission
13 within 60 days after the effective date of this amendatory
14 Act of 1997, or its right to make such election shall be
15 irrevocably waived. An electric utility electing the option
16 specified in this paragraph shall file its rate proceeding
17 with the Commission no later than August 1 of the years 1998,
18 2000, 2002. The electric utility's filing shall comply with
19 all requirements of 83 Illinois Administrative Code Parts 255
20 and 285 as though the electric utility were filing for an
21 increase in its rates, without regard to whether such filing
22 would produce an increase, a decrease or no change in the
23 electric utility's rates and the Commission shall review the
24 electric utility's filing and shall issue its order in
25 accordance with the provisions of Section 9-201 of this Act.
26 (220 ILCS 5/16-101A new)
27 Sec. 16-101A. Legislative findings.
28 (a) The citizens and businesses of the State of Illinois
29 have been well-served by a comprehensive electrical utility
30 system which has provided safe, reliable, and affordable
31 service. The electrical utility system in the State of
32 Illinois has historically been subject to State and federal
33 regulation, aimed at assuring the citizens and businesses of
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1 the State of safe, reliable, and affordable service, while at
2 the same time assuring the utility system of a return on its
3 investment.
4 (b) Competitive forces are affecting the market for
5 electricity as a result of recent federal regulatory and
6 statutory changes and the activities of other states.
7 Competition in the electric services market may create
8 opportunities for new products and services for customers and
9 lower costs for users of electricity. Long-standing
10 regulatory relationships need to be altered to accommodate
11 the competition that could fundamentally alter the structure
12 of the electric services market.
13 (c) With the advent of increasing competition in this
14 industry, the State has a continued interest in assuring that
15 the safety, reliability, and affordability of electrical
16 power is not sacrificed to competitive pressures, and to that
17 end, intends to implement safeguards to assure that the
18 industry continues to operate the electrical system in a
19 manner that will serve the public's interest. Under the
20 existing regulatory framework, the industry has been
21 encouraged to undertake certain investments in its physical
22 plant and personnel to enhance its efficient operation, the
23 cost of which it has been permitted to pass on to consumers.
24 The State has an interest in providing the existing utilities
25 a reasonable opportunity to obtain a return on certain
26 investments on which they depended in undertaking those
27 commitments in the first instance while, at the same time,
28 not permitting new entrants into the industry to take
29 unreasonable advantage of the investments made by the
30 formerly regulated industry.
31 (d) A competitive wholesale and retail market must
32 benefit all Illinois citizens. The Illinois Commerce
33 Commission should act to promote the development of an
34 effectively competitive electricity market that operates
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1 efficiently and is equitable to all consumers. Consumer
2 protections must be in place to ensure that all customers
3 continue to receive safe, reliable, affordable, and
4 environmentally safe electric service.
5 (e) All consumers must benefit in an equitable and
6 timely fashion from the lower costs for electricity that
7 result from retail and wholesale competition and receive
8 sufficient information to make informed choices among
9 suppliers and services. The use of renewable resources and
10 energy efficiency resources should be encouraged in
11 competitive markets.
12 (220 ILCS 5/16-102 new)
13 Sec. 16-102. Definitions. For the purposes of this
14 Article the following terms shall be defined as set forth in
15 this Section.
16 "Alternative retail electric supplier" means every
17 person, cooperative, corporation, municipal corporation,
18 company, association, joint stock company or association,
19 firm, partnership, individual, or other entity, their
20 lessees, trustees, or receivers appointed by any court
21 whatsoever, that offers electric power or energy for sale,
22 lease or in exchange for other value received to one or more
23 retail customers, or that engages in the delivery or
24 furnishing of electric power or energy to such retail
25 customers, and shall include, without limitation, resellers,
26 aggregators and power marketers, but shall not include (i)
27 electric utilities (or any agent of the electric utility to
28 the extent the electric utility provides tariffed services to
29 retail customers through that agent), (ii) any electric
30 cooperative or municipal system as defined in Section 17-100
31 to the extent that the electric cooperative or municipal
32 system is serving retail customers within any area in which
33 it is or would be entitled to provide service under the law
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1 in effect immediately prior to the effective date of this
2 amendatory Act of 1997, (iii) a public utility that is owned
3 and operated by any public institution of higher education of
4 this State, or a public utility that is owned by such public
5 institution of higher education and operated by any of its
6 lessees or operating agents, within any area in which it is
7 or would be entitled to provide service under the law in
8 effect immediately prior to the effective date of this
9 amendatory Act of 1997, (iv) any retail customer to the
10 extent that customer obtains its electric power and energy
11 from its own cogeneration or self-generation facilities, (v)
12 any entity that sells or arranges for the installation of
13 cogeneration or self-generation facilities to be owned by a
14 retail customer described in subparagraph (iv), but only to
15 the extent the entity is engaged in selling or arranging for
16 such installation, or (vi) an industrial or manufacturing
17 customer that owns its own distribution facilities, to the
18 extent that the customer provides service from that
19 distribution system to a third-party contractor located on
20 the customer's premises that is integrally and predominantly
21 engaged in the customer's industrial or manufacturing
22 process; provided, that if the industrial or manufacturing
23 customer has elected delivery services, the customer shall
24 pay transition charges applicable to the electric power and
25 energy consumed by the third-party contractor unless such
26 charges are otherwise paid by the third party contractor,
27 which shall be calculated based on the usage of, and the base
28 rates or the contract rates applicable to, the third-party
29 contractor in accordance with Section 16-102.
30 "Base rates" means the rates for those tariffed services
31 that the electric utility is required to offer pursuant to
32 subsection (a) of Section 16-103 and that were identified in
33 a rate order for collection of the electric utility's base
34 rate revenue requirement, excluding (i) separate automatic
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1 rate adjustment riders then in effect, (ii) special or
2 negotiated contract rates, (iii) delivery services tariffs
3 filed pursuant to Section 16-108, (iv) real-time pricing, or
4 (v) tariffs that were in effect prior to October 1, 1996 and
5 that based charges for services on an index or average of
6 other utilities' charges, but including (vi) any subsequent
7 redesign of such rates for tariffed services that is
8 authorized by the Commission after notice and hearing.
9 "Competitive service" includes (i) any service that has
10 been declared to be competitive pursuant to Section 16-113 of
11 this Act, (ii) contract service, and (iii) services, other
12 than tariffed services, that are related to, but not
13 necessary for, the provision of electric power and energy or
14 delivery services.
15 "Contract service" means (1) services, including the
16 provision of electric power and energy or other services,
17 that are provided by mutual agreement between an electric
18 utility and a retail customer that is located in the electric
19 utility's service area, provided that, delivery services
20 shall not be a contract service until such services are
21 declared competitive pursuant to Section 16-113; and also
22 means (2) the provision of electric power and energy by an
23 electric utility to retail customers outside the electric
24 utility's service area pursuant to Section 16-116. Provided,
25 however, contract service does not include electric utility
26 services provided pursuant to (i) contracts that retail
27 customers are required to execute as a condition of receiving
28 tariffed services, or (ii) special or negotiated rate
29 contracts for electric utility services that were entered
30 into between an electric utility and a retail customer prior
31 to the effective date of this amendatory Act of 1997 and
32 filed with the Commission.
33 "Delivery services" means those services provided by the
34 electric utility that are necessary in order for the
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1 transmission and distribution systems to function so that
2 retail customers located in the electric utility's service
3 area can receive electric power and energy from suppliers
4 other than the electric utility, and shall include, without
5 limitation, standard metering and billing services.
6 "Electric utility" means a public utility, as defined in
7 Section 3-105 of this Act, that has a franchise, license,
8 permit or right to furnish or sell electricity to retail
9 customers within a service area.
10 "Mandatory transition period" means the period from the
11 effective date of this amendatory Act of 1997 through January
12 1, 2005.
13 "Municipal system" shall have the meaning set forth in
14 Section 17-100.
15 "Real-time pricing" means charges for delivered electric
16 power and energy that vary on an hour-to-hour basis for
17 nonresidential retail customers and that vary on a periodic
18 basis during the day for residential retail customers.
19 "Retail customer" means a single entity using electric
20 power or energy at a single premises and that (A) either (i)
21 is receiving or is eligible to receive tariffed services from
22 an electric utility, or (ii) that is served by a municipal
23 system or electric cooperative within any area in which the
24 municipal system or electric cooperative is or would be
25 entitled to provide service under the law in effect
26 immediately prior to the effective date of this amendatory
27 Act of 1997, or (B) an entity which on the effective date of
28 this Act was receiving electric service from a public utility
29 and (i) was engaged in the practice of resale and
30 redistribution of such electricity within a building prior to
31 January 2, 1957, or (ii) was providing lighting services to
32 tenants in a multi-occupancy building, but only to the extent
33 such resale, redistribution or lighting service is authorized
34 by the electric utility's tariffs that were on file with the
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1 Commission on the effective date of this Act.
2 "Service area" means (i) the geographic area within which
3 an electric utility was lawfully entitled to provide electric
4 power and energy to retail customers as of the effective date
5 of this amendatory Act of 1997, and includes (ii) the
6 location of any retail customer to which the electric utility
7 was lawfully providing electric utility services on such
8 effective date.
9 "Small commercial retail customer" means those
10 nonresidential retail customers of an electric utility
11 consuming 15,000 kilowatt-hours or less of electricity
12 annually in its service area.
13 "Tariffed service" means services provided to retail
14 customers by an electric utility as defined by its rates on
15 file with the Commission pursuant to the provisions of
16 Article IX of this Act, but shall not include competitive
17 services.
18 "Transition charge" means a charge expressed in cents per
19 kilowatt-hour that is calculated for a customer or class of
20 customers as follows for each year in which an electric
21 utility is entitled to recover transition charges as provided
22 in Section 16-108:
23 (1) the amount of revenue that an electric utility
24 would receive from the retail customer or customers if it
25 were serving such customers' electric power and energy
26 requirements as a tariffed service based on (A) all of
27 the customers' actual usage during the 3 years ending 90
28 days prior to the date on which such customers were first
29 eligible for delivery services pursuant to Section
30 16-104, and (B) on (i) the base rates in effect on
31 October 1, 1996 (adjusted for the reductions required by
32 subsection (b) of Section 16-111, for any reduction
33 resulting from a rate decrease under Section 16-101(b),
34 for any restatement of base rates made in conjunction
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1 with an elimination of the fuel adjustment clause
2 pursuant to subsection (b), (d), or (f) of Section 9-220
3 and for any removal of decommissioning costs from base
4 rates pursuant to Section 16-114) and any separate
5 automatic rate adjustment riders (other than a
6 decommissioning rate as defined in Section 16-114) under
7 which the customers were receiving or, had they been
8 customers, would have received electric power and energy
9 from the electric utility during the year immediately
10 preceding the date on which such customers were first
11 eligible for delivery service pursuant to Section 16-104,
12 or (ii) to the extent applicable, any contract rates,
13 including contracts or rates for consolidated or
14 aggregated billing, under which such customers were
15 receiving electric power and energy from the electric
16 utility during such year;
17 (2) less the amount of revenue, other than revenue
18 from transition charges and decommissioning rates, that
19 the electric utility would receive from such retail
20 customers for delivery services provided by the electric
21 utility, assuming such customers were taking delivery
22 services for all of their usage, based on the delivery
23 services tariffs in effect during the year for which the
24 transition charge is being calculated and on the usage
25 identified in paragraph (1);
26 (3) less the market value for the electric power
27 and energy that the electric utility would have used to
28 supply all of such customers' electric power and energy
29 requirements, as a tariffed service, based on the usage
30 identified in paragraph (1), with such market value
31 determined in accordance with Section 16-112 of this Act;
32 (4) less the following amount which represents the
33 amount to be attributed to new revenue sources and cost
34 reductions by the electric utility through the end of the
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1 period for which transition costs are recovered pursuant
2 to Section 16-108, referred to in this Article XVI as a
3 "mitigation factor":
4 (A) for nonresidential retail customers, an
5 amount equal to the greater of (i) 0.5 cents per
6 kilowatt-hour during the period October 1, 1999
7 through December 31, 2004, 0.6 cents per
8 kilowatt-hour in calendar year 2005, and 0.9 cents
9 per kilowatt-hour in calendar year 2006, multiplied
10 in each year by the usage identified in paragraph
11 (1), or (ii) an amount equal to the following
12 percentages of the amount produced by applying the
13 applicable base rates (adjusted as described in
14 subparagraph (1)(B)) or contract rate to the usage
15 identified in paragraph (1): 8% for the period
16 October 1, 1999 through December 31, 2002, 10% in
17 calendar years 2003 and 2004, 11% in calendar year
18 2005 and 12% in calendar year 2006; and
19 (B) for residential retail customers, an
20 amount equal to the following percentages of the
21 amount produced by applying the base rates in effect
22 on October 1, 1996 (adjusted as described in
23 subparagraph (1)(B)) to the usage identified in
24 paragraph (1): (i) 6% from May 1, 2002 through
25 December 31, 2002, (ii) 7% in calendar years 2003
26 and 2004, (iii) 8% in calendar year 2005, and (iv)
27 10% in calendar year 2006;
28 (5) divided by the usage of such customers
29 identified in paragraph (1),
30 provided that the transition charge shall never be less than
31 zero.
32 "Unbundled service" means a component or constituent part
33 of a tariffed service which the electric utility subsequently
34 offers separately to its customers.
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1 (220 ILCS 5/16-103 new)
2 Sec. 16-103. Service obligations of electric utilities.
3 (a) An electric utility shall continue offering to
4 retail customers each tariffed service that it offered as a
5 distinct and identifiable service on the effective date of
6 this amendatory Act of 1997 until the service is (i)
7 declared competitive pursuant to Section 16-113, or (ii)
8 abandoned pursuant to Section 8-508. Nothing in this
9 subsection shall be construed as limiting an electric
10 utility's right to propose, or the Commission's power to
11 approve, allow or order modifications in the rates, terms and
12 conditions for such services pursuant to Article IX or
13 Section 16-111 of this Act.
14 (b) An electric utility shall also offer, as tariffed
15 services, delivery services in accordance with this Article,
16 the power purchase options described in Section 16-110 and
17 real-time pricing as provided in Section 16-107.
18 (c) Notwithstanding any other provision of this Article,
19 each electric utility shall continue offering to all
20 residential customers and to all small commercial retail
21 customers in its service area, as a tariffed service, bundled
22 electric power and energy delivered to the customer's
23 premises consistent with the bundled utility service provided
24 by the electric utility on the effective date of this
25 amendatory Act of 1997. Upon declaration of the provision of
26 electric power and energy as competitive, the electric
27 utility shall continue to offer to such customers, as a
28 tariffed service, bundled service options at rates which
29 reflect recovery of all cost components for providing the
30 service. For those components of the service which have been
31 declared competitive, cost shall be the market based prices.
32 Market based prices as referred to herein shall mean, for
33 electric power and energy, either (i) those prices for
34 electric power and energy determined as provided in Section
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1 16-112, or (ii) the electric utility's cost of obtaining the
2 electric power and energy at wholesale through a competitive
3 bidding or other arms-length acquisition process.
4 (d) Any residential or small commercial retail customer
5 which elects delivery services is entitled to return to the
6 electric utility's bundled utility tariffed service offering
7 provided in accordance with subsection (c) of this Section
8 upon payment of a reasonable administrative fee which shall
9 be set forth in the tariff, provided, however, that the
10 electric utility shall be entitled to impose the condition
11 that such customer may not elect delivery services for up to
12 24 months thereafter.
13 (e) The Commission shall not require an electric utility
14 to offer any tariffed service other than the services
15 required by this Section, and shall not require an electric
16 utility to offer any competitive service.
17 (220 ILCS 5/16-104 new)
18 Sec. 16-104. Delivery services transition plan. An
19 electric utility shall provide delivery services to retail
20 customers in accordance with the provisions of this Section.
21 (a) Each electric utility shall offer delivery services
22 to retail customers located in its service area in accordance
23 with the following provisions:
24 (1) On or before October 1, 1999, the electric
25 utility shall offer delivery services (i) to any
26 non-residential retail customer whose average monthly
27 maximum electrical demand on the electric utility's
28 system during the 6 months with the customer's highest
29 monthly maximum demands in the 12 months ending June 30,
30 1999 equals or exceeds 4 megawatts; (ii) to any
31 non-governmental, non-residential, commercial retail
32 customers under common ownership doing business at 10 or
33 more separate locations within the electric utility's
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1 service area, if the aggregate coincident average monthly
2 maximum electrical demand of all such locations during
3 the 6 months with the customer's highest monthly maximum
4 electrical demands during the 12 months ending June 30,
5 1999 equals or exceeds 9.5 megawatts, provided, however,
6 that an electric utility's obligation to offer delivery
7 services under this clause (ii) shall not exceed 3.5% of
8 the maximum electric demand on the electric utility's
9 system in the 12 months ending June 30, 1999; and (iii)
10 to non-residential retail customers whose annual electric
11 energy use comprises 33% of the kilowatt-hour sales,
12 excluding the kilowatt-hour sales to customers described
13 in clauses (i) and (ii), to each non-residential retail
14 customer class of the electric utility.
15 (2) On or before October 1, 2000, the electric
16 utility shall offer delivery services to the eligible
17 governmental customers described in subsections (a) and
18 (b) of Section 16-125A if the aggregate coincident
19 average monthly maximum electrical demand of such
20 customers during the 6 months with the customers' highest
21 monthly maximum electrical demands during the 12 months
22 ending June 30, 2000 equals or exceeds 9.5 megawatts.
23 (3) On or before December 31, 2000, the electric
24 utility shall offer delivery services to all remaining
25 nonresidential retail customers in its service area.
26 (4) On or before May 1, 2002, the electric utility
27 shall offer delivery services to all residential retail
28 customers in its service area.
29 The loads and kilowatt-hour sales used for purposes of
30 this subsection shall be those for the 12 months ending June
31 30, 1999 for nonresidential retail customers. The electric
32 utility shall identify those customers to be offered delivery
33 service pursuant to clause (1)(iii) pursuant to a lottery or
34 other random non-discriminatory selection process set forth
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1 in the electric utility's delivery services implementation
2 plan pursuant to Section 16-105. Provided, that
3 non-residential retail customers under common ownership at
4 separate locations within the electric utility's service area
5 may elect, prior to the date the electric utility conducts
6 the lottery or other random selection process for purposes of
7 clause (1)(iii), to designate themselves as a common
8 ownership group, to be excluded from such lottery and to
9 instead participate in a separate lottery for such common
10 ownership group pursuant to which delivery services will be
11 offered to non-residential retail customers comprising 33% of
12 the total kilowatt-hour sales to the common ownership group
13 on or before October 1, 1999. For purposes of this
14 subsection (a), an electric utility may define "common
15 ownership" to exclude sites which are not part of the same
16 business, provided, that auxiliary establishments as defined
17 in the Standard Industrial Classification Manual published by
18 the United States Office of Management and Budget shall not
19 be excluded.
20 (b) The electric utility shall allow the aggregation of
21 loads that are eligible for delivery services so long as such
22 aggregation meets the criteria for delivery of electric power
23 and energy applicable to the electric utility established by
24 the regional reliability council to which the electric
25 utility belongs, by an independent system operating
26 organization to which the electric utility belongs, or by
27 another organization responsible for overseeing the integrity
28 and reliability of the transmission system, as such criteria
29 are in effect from time to time. The Commission may adopt
30 rules and regulations governing the criteria for aggregation
31 of the loads utilizing delivery services, but its failure to
32 do so shall not preclude any eligible customer from electing
33 delivery services. The electric utility shall allow such
34 aggregation for any voluntary grouping of customers,
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1 including without limitation those having a common agent with
2 contractual authority to purchase electric power and energy
3 and delivery services on behalf of all customers in the
4 grouping.
5 (c) An electric utility shall allow a retail customer
6 that generates power for its own use to include the
7 electrical demand obtained from the customer's cogeneration
8 or self-generation facilities that is coincident with the
9 retail customer's maximum monthly electrical demand on the
10 electric utility's system in any determination of the
11 customer's maximum monthly electrical demand for purposes of
12 determining when such retail customer shall be offered
13 delivery services pursuant to clause (i) of subparagraph (1)
14 of subsection (a) of this Section.
15 (d) The Commission shall establish charges, terms and
16 conditions for delivery services in accordance with Section
17 16-108.
18 (e) Subject to the terms and conditions which the
19 electric utility is entitled to impose in accordance with
20 Section 16-108, a retail customer that is eligible to elect
21 delivery services pursuant to subsection (a) may place all or
22 a portion of its electric power and energy requirements on
23 delivery services.
24 (f) An electric utility may require a retail customer
25 who elects to (i) use an alternative retail electric supplier
26 or another electric utility for some but not all of its
27 electric power or energy requirements, and (ii) use the
28 electric utility for any portion of its remaining electric
29 power and energy requirements, to place the portion of the
30 customer's electric power or energy requirement that is to be
31 served by the electric utility on a tariff containing charges
32 that are set to recover the lowest reasonably available cost
33 to the electric utility of acquiring electric power and
34 energy on the wholesale electric market to serve such
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1 remaining portion of the customer's electric power and energy
2 requirement, reasonable compensation for arranging for and
3 providing such electric power or energy, and the electric
4 utility's other costs of providing service to such remaining
5 electric power and energy requirement.
6 (220 ILCS 5/16-105 new)
7 Sec. 16-105. Delivery services implementation plan. To
8 ensure the safe and orderly implementation of delivery
9 services, each electric utility shall submit to the
10 Commission no later than March 1, 1999, a delivery services
11 implementation plan for non-residential customers and no
12 later than August 1, 2001, a delivery services implementation
13 plan for residential customers. The delivery services
14 implementation plan shall detail the process and procedures
15 by which each electric utility will offer delivery services
16 to each customer class and shall be designed to insure an
17 orderly transition and the maintenance of reliable service.
18 The Commission shall enter an order approving, or approving
19 as modified, the delivery services implementation plan of
20 each electric utility no later than 60 days prior to the date
21 on which the electric utility must commence offering such
22 services.
23 (220 ILCS 5/16-106 new)
24 Sec. 16-106. Billing experiments. During the mandatory
25 transition period, an electric utility may at its discretion
26 conduct one or more experiments for the provision or billing
27 of services on a consolidated or aggregated basis, for the
28 provision of real-time pricing, or other billing or pricing
29 experiments, and may include experimental programs offered to
30 groups of retail customers possessing common attributes as
31 defined by the electric utility, such as the members of an
32 organization that was established to serve a well-defined
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1 industry group, companies having multiple sites, or
2 closely-located or affiliated buildings, provided that such
3 groups exist for a purpose other than obtaining energy
4 services and have been in existence for at least 10 years.
5 The offering of such a program by an electric utility to
6 retail customers participating in the program, and the
7 participation by those customers in the program, shall not
8 create any right in any other retail customer or group of
9 customers to participate in the same or a similar program.
10 The Commission shall allow such experiments to go into effect
11 upon the filing by the electric utility of a statement
12 describing the program. Nothing contained in this Section
13 shall be deemed to prohibit the electric utility from
14 offering, or the Commission from approving, experimental
15 rates, tariffs and services in addition to those allowed
16 under this Section. The Commission shall review and report
17 annually the progress, participation and effects of such
18 experiments to the General Assembly. Based upon its review,
19 recommendations for modification of such experiments may be
20 made by the Commission to the Illinois General Assembly.
21 (220 ILCS 5/16-107 new)
22 Sec. 16-107. Real-time pricing.
23 (a) Each electric utility shall file, on or before May
24 1, 1998, a tariff or tariffs which allow nonresidential
25 retail customers in the electric utility's service area to
26 elect real-time pricing beginning October 1, 1998.
27 (b) Each electric utility shall file, on or before May
28 1, 2000, a tariff or tariffs which allow residential retail
29 customers in the electric utility's service area to elect
30 real-time pricing beginning October 1, 2000.
31 (c) The electric utility's tariff or tariffs filed
32 pursuant to this Section shall be subject to Article IX.
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1 (220 ILCS 5/16-108 new)
2 Sec. 16-108. Recovery of costs associated with the
3 provision of delivery services.
4 (a) An electric utility shall file a delivery services
5 tariff with the Commission at least 210 days prior to the
6 date that it is required to begin offering such services
7 pursuant to this Act. An electric utility shall provide the
8 components of delivery services that are subject to the
9 jurisdiction of the Federal Energy Regulatory Commission at
10 the same prices, terms and conditions set forth in its
11 applicable tariff as approved or allowed into effect by that
12 Commission. The Commission shall otherwise have the authority
13 pursuant to Article IX to review, approve, and modify the
14 prices, terms and conditions of those components of delivery
15 services not subject to the jurisdiction of the Federal
16 Energy Regulatory Commission, including the authority to
17 determine the extent to which such delivery services should
18 be offered on an unbundled basis. In making any such
19 determination the Commission shall consider, at a minimum,
20 the effect of additional unbundling on (i) the objective of
21 just and reasonable rates, (ii) electric utility employees,
22 and (iii) the development of competitive markets for electric
23 energy services in Illinois.
24 (b) The Commission shall enter an order approving, or
25 approving as modified, the delivery services tariff no later
26 than 30 days prior to the date on which the electric utility
27 must commence offering such services. The Commission may
28 subsequently modify such tariff pursuant to this Act.
29 (c) The electric utility's tariffs shall define the
30 classes of its customers for purposes of delivery services
31 charges. Delivery services shall be priced and made
32 available to all retail customers electing delivery services
33 in each such class on a non-discriminatory basis regardless
34 of whether the retail customer chooses the electric utility,
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1 an affiliate of the electric utility, or another entity as
2 its supplier of electric power and energy. Charges for
3 delivery services shall be cost based, and shall allow the
4 electric utility to recover the costs of providing delivery
5 services through its charges to its delivery service
6 customers that use the facilities and services associated
7 with such costs. Such costs shall include the costs of
8 owning, operating and maintaining transmission and
9 distribution facilities. The Commission shall also be
10 authorized to consider whether, and if so to what extent, the
11 following costs are appropriately included in the electric
12 utility's delivery services rates: (i) the costs of that
13 portion of generation facilities used for the production and
14 absorption of reactive power in order that retail customers
15 located in the electric utility's service area can receive
16 electric power and energy from suppliers other than the
17 electric utility, and (ii) the costs associated with the use
18 and redispatch of generation facilities to mitigate
19 constraints on the transmission or distribution system in
20 order that retail customers located in the electric utility's
21 service area can receive electric power and energy from
22 suppliers other than the electric utility. Nothing in this
23 subsection shall be construed as directing the Commission to
24 allocate any of the costs described in (i) or (ii) that are
25 found to be appropriately included in the electric utility's
26 delivery services rates to any particular customer group or
27 geographic area in setting delivery services rates.
28 (d) The Commission shall establish charges, terms and
29 conditions for delivery services that are just and reasonable
30 and shall take into account customer impacts when
31 establishing such charges. In establishing charges, terms and
32 conditions for delivery services, the Commission shall take
33 into account voltage level differences. A retail customer
34 shall have the option to request to purchase electric service
-20- SRS90HB0362JJsaam02
1 at any delivery service voltage reasonably and technically
2 feasible from the electric facilities serving that customer's
3 premises provided that there are no significant adverse
4 impacts upon system reliability or system efficiency. A
5 retail customer shall also have the option to request to
6 purchase electric service at any point of delivery that is
7 reasonably and technically feasible provided that there are
8 no significant adverse impacts on system reliability or
9 efficiency. Such requests shall not be unreasonably denied.
10 (e) Electric utilities shall recover the costs of
11 installing, operating or maintaining facilities for the
12 particular benefit of one or more delivery services
13 customers, including without limitation any costs incurred in
14 complying with a customer's request to be served at a
15 different voltage level, directly from the retail customer or
16 customers for whose benefit the costs were incurred, to the
17 extent such costs are not recovered through the charges
18 referred to in subsections (c) and (d) of this Section.
19 (f) An electric utility shall be entitled but not
20 required to implement transition charges in conjunction with
21 the offering of delivery services pursuant to Section 16-104.
22 If an electric utility implements transition charges, it
23 shall implement such charges for all delivery services
24 customers and for all customers described in subsection (h).
25 Such charges shall be calculated as provided in Section
26 16-102, and shall be collected on each kilowatt-hour
27 delivered under a delivery services tariff to a retail
28 customer from the date the customer first takes delivery
29 services until December 31, 2006 except as provided in
30 subsection (h) of this Section. Provided, however, that an
31 electric utility shall be entitled to petition for entry of
32 an order by the Commission authorizing the electric utility
33 to implement transition charges for an additional period
34 ending no later than December 31, 2008. The electric utility
-21- SRS90HB0362JJsaam02
1 shall file its petition with supporting evidence no earlier
2 than 16 months, and no later than 12 months, prior to
3 December 31, 2006. The Commission shall hold a hearing on
4 the electric utility's petition and shall enter its order no
5 later than 8 months after the petition is filed. The
6 Commission shall determine whether and to what extent the
7 electric utility shall be authorized to implement transition
8 charges for an additional period. The Commission may
9 authorize the electric utility to implement transition
10 charges for some or all of the additional period, and shall
11 determine the mitigation factors to be used in implementing
12 such transition charges; provided, that the Commission shall
13 not authorize mitigation factors less than 110% of those in
14 effect during the 12 months ended December 31, 2006. In
15 making its determination, the Commission shall consider the
16 following factors: the necessity to implement transition
17 charges for an additional period in order to maintain the
18 financial integrity of the electric utility; the prudence of
19 the electric utility's actions in reducing its costs since
20 the effective date of this amendatory Act of 1997; the
21 ability of the electric utility to provide safe, adequate and
22 reliable service to retail customers in its service area; and
23 the impact on competition of allowing the electric utility to
24 implement transition charges for the additional period.
25 (g) The electric utility shall file tariffs that
26 establish the transition charges to be paid by each class of
27 customers to the electric utility in conjunction with the
28 provision of delivery services. The electric utility's
29 tariffs shall define the classes of its customers for
30 purposes of calculating transition charges. The electric
31 utility's tariffs shall provide for the calculation of
32 transition charges on a customer-specific basis for any
33 retail customer whose average monthly maximum electrical
34 demand on the electric utility's system during the 6 months
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1 with the customer's highest monthly maximum electrical
2 demands equals or exceeds 3.0 megawatts for electric
3 utilities having more than 1,000,000 customers, and for other
4 electric utilities for any customer that has an average
5 monthly maximum electrical demand on the electric utility's
6 system of one megawatt or more, and (A) for which there
7 exists data on the customer's usage during the 3 years
8 preceding the date that the customer became eligible to take
9 delivery services, or (B) for which there does not exist data
10 on the customer's usage during the 3 years preceding the date
11 that the customer became eligible to take delivery services,
12 if in the electric utility's reasonable judgment there exists
13 comparable usage information or a sufficient basis to develop
14 such information, and further provided that the electric
15 utility can require customers for which an individual
16 calculation is made to sign contracts that set forth the
17 transition charges to be paid by the customer to the electric
18 utility pursuant to the tariff.
19 (h) An electric utility shall also be entitled to file
20 tariffs that allow it to collect transition charges from
21 retail customers in the electric utility's service area that
22 do not take delivery services but that take electric power or
23 energy from an alternative retail electric supplier or from
24 an electric utility other than the electric utility in whose
25 service area the customer is located. Such charges shall be
26 calculated, in accordance with the definition of transition
27 charges in Section 16-102, for the period of time that the
28 customer would be obligated to pay transition charges if it
29 were taking delivery services, except that no deduction for
30 delivery services revenues shall be made in such calculation,
31 and usage data from the customer's class shall be used where
32 historical usage data is not available for the individual
33 customer. The customer shall be obligated to pay such
34 charges on a lump sum basis on or before the date on which
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1 the customer commences to take service from the alternative
2 retail electric supplier or other electric utility, provided,
3 that the electric utility in whose service area the customer
4 is located shall offer the customer the option of signing a
5 contract pursuant to which the customer pays such charges
6 ratably over the period in which the charges would otherwise
7 have applied.
8 (i) An electric utility shall be entitled to add to the
9 bills of delivery services customers charges pursuant to
10 Sections 9-221, 9-222 (except as provided in Section
11 9-222.1), and Section 16-114 of this Act, Section 5-5 of the
12 Electricity Infrastructure Maintenance Fee Law, Section 6-5
13 of the Renewable Energy, Energy Efficiency, and Coal
14 Resources Development Law of 1997, and Section 13 of the
15 Energy Assistance Act of 1989.
16 (j) If a retail customer that obtains electric power and
17 energy from cogeneration or self-generation facilities
18 installed for its own use on or before January 1, 1997,
19 subsequently takes service from an alternative retail
20 electric supplier or an electric utility other than the
21 electric utility in whose service area the customer is
22 located for any portion of the customer's electric power and
23 energy requirements formerly obtained from those facilities
24 (including that amount purchased from the utility in lieu of
25 such generation and not as standby power purchases, under a
26 cogeneration displacement tariff in effect as of the
27 effective date of this amendatory Act of 1997), the
28 transition charges otherwise applicable pursuant to
29 subsections (f), (g), or (h) of this Section shall not be
30 applicable in any year to that portion of the customer's
31 electric power and energy requirements formerly obtained from
32 those facilities, provided, that for purposes of this
33 subsection (j), such portion shall not exceed the average
34 number of kilowatt-hours per year obtained from the
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1 cogeneration or self-generation facilities during the 3 years
2 prior to the date on which the customer became eligible for
3 delivery services, except as provided in subsection (f) of
4 Section 16-110.
5 (220 ILCS 5/16-109 new)
6 Sec. 16-109. Unbundling of delivery services; Commission
7 review. The General Assembly finds that the offering of
8 delivery services will, and is intended to, facilitate the
9 development of competition for generation services, and that
10 competition may develop for other services currently offered
11 on a tariffed basis by the electric utility. The Commission
12 shall open a proceeding to investigate the need for and
13 desirability of different or additional unbundling of
14 delivery services for some or all electric utilities 3 years
15 from the date that a tariff for delivery services is first
16 approved or allowed into effect pursuant to this Section.
17 The Commission shall open an additional proceeding to again
18 investigate the need for and desirability of different or
19 additional unbundling of delivery services for some or all
20 electric utilities, 3 years after the entry of its final
21 order in the first investigation proceeding. The Commission
22 shall issue its final order in each investigation proceeding
23 no later than 6 months after the proceeding is initiated. In
24 each such proceeding the Commission shall consider, at a
25 minimum, the effect of additional unbundling on (i) the
26 objective of just and reasonable rates, (ii) electric utility
27 employees, and (iii) the development of competitive markets
28 for electric energy services in Illinois. Specific changes
29 to the delivery services tariffs of individual electric
30 utilities to implement findings and directives stated in an
31 order in an investigation proceeding initiated under this
32 Section shall be addressed through individual electric
33 utility tariff filings. The Commission may also, in
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1 accordance with Section 16-108, upon complaint or upon its
2 own initiative without complaint, upon reasonable notice,
3 enter upon a hearing concerning the need and desirability of
4 requiring additional or other unbundling of delivery services
5 offered by electric utilities.
6 (220 ILCS 5/16-109A new)
7 Sec. 16-109A. Unbundling of prices for tariffed
8 services; Commission investigation. In addition to the
9 unbundling authorized under Sections 16-108 and 16-109, the
10 Commission shall have the authority to investigate the need
11 for, and to require, the restructuring or unbundling of
12 prices for tariffed services, other than delivery services,
13 offered by an electric utility; provided, however, that the
14 Commission shall not enter an order requiring the
15 restructuring or unbundling of prices for any such tariffed
16 services for a customer class of an electric utility prior to
17 the date that the class first becomes eligible for delivery
18 services pursuant to Section 16-104.
19 (220 ILCS 5/16-110 new)
20 Sec. 16-110. Delivery services customer power purchase
21 options.
22 (a) Each electric utility shall offer a tariffed service
23 or services in accordance with the terms and conditions set
24 forth in this Section pursuant to which its non-residential
25 delivery services customers may purchase from the electric
26 utility an amount of electric power and energy that is equal
27 to or less than the amounts that are delivered by such
28 electric utility.
29 (b) Except as provided in subsection (o) of Section
30 16-112, a non-residential delivery services customer that is
31 paying transition charges to the electric utility shall be
32 permitted to purchase electric power and energy from the
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1 electric utility at a price or prices equal to the sum of (i)
2 the market values that are determined for the electric
3 utility in accordance with Section 16-112 and used by the
4 electric utility to calculate the customer's transition
5 charges and (ii) a fee that compensates the electric utility
6 for any administrative costs it incurs in arranging to supply
7 such electric power and energy. The electric utility may
8 require that the customer purchase such electric power and
9 energy for periods of not less than one year and may also
10 require that the customer give up to 30 days notice for a
11 purchase of one year's duration, and 90 day's notice for a
12 purchase of more than one year's duration. A non-residential
13 delivery service customer exercising the option described in
14 this subsection may sell or assign its interests in the
15 electric power or energy that the customer has purchased. At
16 least twice per year, each electric utility shall notify its
17 small commercial retail customers, through bill inserts and
18 other similar means, of their option to obtain electric power
19 and energy through purchases at market value pursuant to this
20 subsection.
21 (c) After the transition charge period applicable to a
22 non-residential delivery services customer, and until the
23 provision of electric power and energy is declared
24 competitive for the customer group to which the customer
25 belongs, a non-residential delivery services customer that
26 paid any transition charges it was legally obligated to pay
27 to an electric utility shall be permitted to purchase
28 electric power and energy from the electric utility for
29 contract periods of one year at a price or prices equal to
30 the sum of (i) the market value determined for that
31 customer's class pursuant to Section 16-112 and (ii) to the
32 extent it is not included in such market value, a fee to
33 compensate the electric utility for the service of arranging
34 the supply or purchase of such electric power and energy.
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1 The electric utility may require that a delivery services
2 customer give the following notice for such a purchase: (i)
3 for a small commercial retail customer, not more than 30
4 days; (ii) for a nonresidential customer which is not a small
5 commercial retail customer but which has maximum electrical
6 demand of less than 500 kilowatts, not more than 6 months;
7 (iii) for a nonresidential customer with maximum electrical
8 demand of 500 kilowatts or more but less than one megawatt,
9 not more than 9 months; and (iv) for a nonresidential
10 customer with maximum electrical demand of one megawatt or
11 more, not more than one year. At least twice per year, each
12 electric utility shall notify its small commercial retail
13 customers, through bill inserts or other similar means, of
14 their option to obtain electric power and energy through
15 purchases at market value pursuant to this subsection.
16 (d) After the transition charge period applicable to a
17 non-residential delivery services customer, and until the
18 provision of electric power and energy is declared
19 competitive for the customer group to which the customer
20 belongs, a non-residential delivery services customer, other
21 than a small commercial retail customer, that paid any
22 transition charges it was legally obligated to pay to an
23 electric utility shall be permitted to purchase electric
24 power and energy from the electric utility for contract
25 periods of one year at a price or prices equal to (A) the sum
26 of (i) the electric utility's actual cost of procuring such
27 electric power and energy and (ii) a broker's fee to
28 compensate the electric utility for arranging the supply, or,
29 if the utility so elects, (B) the market value of electric
30 power or energy provided by the electric utility determined
31 as set forth in the electric utility's tariff for that
32 customer's class. The electric utility may require that the
33 delivery services customer give up to 30 days notice for such
34 a purchase.
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1 (e) Each delivery services customer purchasing electric
2 power and energy from the electric utility pursuant to a
3 tariff filed in accordance with this Section shall also pay
4 all of the applicable charges set forth in the electric
5 utility's delivery services tariffs and any other tariffs
6 applicable to the services provided to that customer by the
7 electric utility.
8 (f) An electric utility can require a retail customer
9 taking delivery services that formerly generated electric
10 power and energy for its own use and that would not otherwise
11 pay transition charges on a portion of its electric power and
12 energy requirements served on delivery services to pay
13 transition charges on that portion of the customer's electric
14 power and energy requirements as a condition of exercising
15 the delivery services customer power purchase options set
16 forth in this Section.
17 (220 ILCS 5/16-111 new)
18 Sec. 16-111. Rates and restructuring transactions during
19 mandatory transition period.
20 (a) During the mandatory transition period,
21 notwithstanding any provision of Article IX of this Act, and
22 except as provided in subsections (b), (d), (e), and (f) of
23 this Section, the Commission shall not (i) initiate,
24 authorize or order any change by way of increase (other than
25 in connection with a request for rate increase which was
26 filed after September 1, 1997 but prior to October 15, 1997,
27 by an electric utility serving less than 12,500 customers in
28 this state), (ii) initiate or, unless requested by the
29 electric utility, authorize or order any change by way of
30 decrease, restructuring or unbundling (except as provided in
31 Section 16-109A), in the rates of any electric utility that
32 were in effect on October 1, 1996, or (iii) in any order
33 approving any application for a merger pursuant to Section
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1 7-204 that was pending as of May 16, 1997, impose any
2 condition requiring any filing for an increase, decrease, or
3 change in, or other review of, an electric utility's rates or
4 enforce any such condition of any such order; provided,
5 however, that this subsection shall not prohibit the
6 Commission from:
7 (1) approving the application of an electric
8 utility to implement an alternative to rate of return
9 regulation or a regulatory mechanism that rewards or
10 penalizes the electric utility through adjustment of
11 rates based on utility performance, pursuant to Section
12 9-244;
13 (2) authorizing an electric utility to eliminate
14 its fuel adjustment clause and adjust its base rate
15 tariffs in accordance with subsection (b), (d), or (f) of
16 Section 9-220 of this Act, to fix its fuel adjustment
17 factor in accordance with subsection (c) of Section 9-220
18 of this Act, or to eliminate its fuel adjustment clause
19 in accordance with subsection (e) of Section 9-220 of
20 this Act;
21 (3) ordering into effect tariffs for delivery
22 services and transition charges in accordance with
23 Sections 16-104 and 16-108, for real-time pricing in
24 accordance with Section 16-107, or the options required
25 by Section 16-110 and subsection (n) of 16-112, allowing
26 a billing experiment in accordance with Section 16-106,
27 or modifying delivery services tariffs in accordance with
28 Section 16-109; or
29 (4) ordering or allowing into effect any tariff to
30 recover charges pursuant to Sections 9-201.5, 9-220.1,
31 9-221, 9-222 (except as provided in Section 9-222.1),
32 16-108, and 16-114 of this Act, Section 5-5 of the
33 Electricity Infrastructure Maintenance Fee Law, Section
34 6-5 of the Renewable Energy, Energy Efficiency, and Coal
-30- SRS90HB0362JJsaam02
1 Resources Development Law of 1997, and Section 13 of the
2 Energy Assistance Act of 1989.
3 (b) Notwithstanding the provisions of subsection (a),
4 each Illinois electric utility serving more than 12,500
5 customers in Illinois shall file tariffs (i) reducing,
6 effective August 1, 1998, each component of its base rates to
7 residential retail customers by 15% from the base rates in
8 effect immediately prior to January 1, 1998 and (ii) if the
9 public utility provides electric service to more than 500,000
10 customers in this State on the effective date of this
11 amendatory Act of 1997, reducing, effective May 1, 2002, each
12 component of its base rates to residential retail customers
13 by an additional 5% from the base rates in effect immediately
14 prior to January 1, 1998. Provided, however, that if an
15 electric utility's average residential retail rate is less
16 than or equal to the average residential retail rate for a
17 group of Midwest Utilities (consisting of all investor-owned
18 electric utilities with annual system peaks in excess of 1000
19 megawatts in the States of Illinois, Indiana, Iowa, Kentucky,
20 Michigan, Missouri, Ohio, and Wisconsin), based on data
21 reported on Form 1 to the Federal Energy Regulatory
22 Commission for calendar year 1995, then it shall only be
23 required to file tariffs (i) reducing, effective August 1,
24 1998, each component of its base rates to residential retail
25 customers by 5% from the base rates in effect immediately
26 prior to January 1, 1998, (ii) reducing, effective October 1,
27 2000, its base rates to residential retail customers by the
28 lesser of 5% of the base rates in effect immediately prior to
29 January 1, 1998 or the percentage by which the electric
30 utility's average residential retail rate exceeds the average
31 residential retail rate of the Midwest Utilities, based on
32 data reported on Form 1 to the Federal Energy Regulatory
33 Commission for calendar year 1999, and (iii) reducing,
34 effective October 1, 2002, each component of its base rates
-31- SRS90HB0362JJsaam02
1 to residential retail customers by an additional amount equal
2 to the lesser of 5% of the base rates in effect immediately
3 prior to January 1, 1998 or the percentage by which the
4 electric utility's average residential retail rate exceeds
5 the average residential retail rate of the Midwest Utilities,
6 based on data reported on Form 1 to the Federal Energy
7 Regulatory Commission for calendar year 2001. Provided,
8 further, that any electric utility for which a decrease in
9 base rates has been or is placed into effect between October
10 1, 1996 and the dates specified in the preceding sentences of
11 this subsection, other than pursuant to the requirements of
12 this subsection, shall be entitled to reduce the amount of
13 any reduction or reductions in its base rates required by
14 this subsection by the amount of such other decrease. The
15 tariffs required under this subsection shall be filed 45 days
16 in advance of the effective date. Notwithstanding anything to
17 the contrary in Section 9-220 of this Act, no restatement of
18 base rates in conjunction with the elimination of a fuel
19 adjustment clause under that Section shall result in a lesser
20 decrease in base rates than customers would otherwise receive
21 under this subsection had the electric utility's fuel
22 adjustment clause not been eliminated.
23 (c) Any utility reducing its base rates by 15% on August
24 1, 1998 pursuant to subsection (b) shall include the
25 following statement on its bills for residential customers
26 from August 1 through December 31, 1998: "Effective August 1,
27 1998, your rates have been reduced by 15% by the Electric
28 Service Customer Choice and Rate Relief Law of 1997 passed by
29 the Illinois General Assembly.". Any utility reducing its
30 base rates by 5% on August 1, 1998, pursuant to subsection
31 (b) shall include the following statement on its bills for
32 residential customers from August 1 through December 31,
33 1998: "Effective August 1, 1998, your rates have been
34 reduced by 5% by the Electric Service Customer Choice and
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1 Rate Relief Law of 1997 passed by the Illinois General
2 Assembly.".
3 (d) During the mandatory transition period, but not
4 before January 1, 2000, and notwithstanding the provisions
5 of subsection (a), an electric utility may request an
6 increase in its base rates if the electric utility
7 demonstrates that the 2-year average of its earned rate of
8 return on common equity, calculated as its net income
9 applicable to common stock divided by the average of its
10 beginning and ending balances of common equity using data
11 reported in the electric utility's Form 1 report to the
12 Federal Energy Regulatory Commission but adjusted to remove
13 the effects of accelerated depreciation or amortization or
14 other transition or mitigation measures implemented by the
15 electric utility pursuant to subsection (g) of this Section
16 and the effect of any refund paid pursuant to subsection (e)
17 of this Section, is below the 2-year average for the same 2
18 years of the monthly average yields of 30-year U.S. Treasury
19 bonds published by the Board of Governors of the Federal
20 Reserve System in its weekly H.15 Statistical Release or
21 successor publication. The Commission shall review the
22 electric utility's request, and may review the justness and
23 reasonableness of all rates for tariffed services, in
24 accordance with the provisions of Article IX of this Act,
25 provided that the Commission shall consider any special or
26 negotiated adjustments to the revenue requirement agreed to
27 between the electric utility and the other parties to the
28 proceeding. In setting rates under this Section, the
29 Commission shall exclude the costs and revenues that are
30 associated with competitive services and any billing or
31 pricing experiments conducted under Section 16-106.
32 (e) For the purposes of this subsection (e) all
33 calculations and comparisions shall be performed for the
34 Illinois operations of multijurisdictional utilities. During
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1 the mandatory transition period, notwithstanding the
2 provisions of subsection (a), if the 2-year average of an
3 electric utility's earned rate of return on common equity,
4 calculated as its net income applicable to common stock
5 divided by the average of its beginning and ending balances
6 of common equity using data reported in the electric
7 utility's Form 1 report to the Federal Energy Regulatory
8 Commission but adjusted to remove the effect of any refund
9 paid under this subsection (e), and further adjusted to
10 include the annual amortization of any difference between the
11 consideration received by an affiliated interest of the
12 electric utility in the sale of an asset which had been sold
13 or transferred by the electric utility to the affiliated
14 interest subsequent to the effective date of this amendatory
15 Act of 1997 and the consideration for which such asset had
16 been sold or transferred to the affiliated interest, with
17 such difference to be amortized ratably from the date of the
18 sale by the affiliated interest to December 31, 2006, exceeds
19 the 2-year average of the Index for the same 2 years by 1.5
20 or more percentage points, the electric utility shall make
21 refunds to customers beginning the first billing day of April
22 in the following year in the manner described in paragraph
23 (3) of this subsection. For purposes of this subsection (e),
24 the "Index" shall be the sum of (A) the average for the 12
25 months ended September 30 of the monthly average yields of
26 30-year U.S. Treasury bonds published by the Board of
27 Governors of the Federal Reserve System in its weekly H.15
28 Statistical Release or successor publication for each year
29 1998 through 2004, and (B) (i) 4.00 percentage points for
30 each of the 12-month periods ending September 30, 1998
31 through September 30, 1999 or (ii) 5.00 percentage points for
32 each of the 12-month periods ending September 30, 2000
33 through September 30, 2004.
34 (1) For purposes of this subsection (e), "excess
-34- SRS90HB0362JJsaam02
1 earnings" means the difference between (A) the 2-year
2 average of the electric utility's earned rate of return
3 on common equity, less (B) the 2-year average of the sum
4 of (i) the Index applicable to each of the 2 years and
5 (ii) 1.5 percentage points; provided, that "excess
6 earnings" shall never be less than zero.
7 (2) On or before March 31 of each year 2000 through
8 2005 each electric utility shall file a report with the
9 Commission showing its earned rate of return on common
10 equity, calculated in accordance with this subsection,
11 for the preceding calendar year and the average for the
12 preceding 2 calendar years.
13 (3) If an electric utility has excess earnings,
14 determined in accordance with paragraphs (1) and (2) of
15 this subsection, the refunds which the electric utility
16 shall pay to its customers beginning the first billing
17 day of April in the following year shall be calculated
18 and applied as follows:
19 (i) The electric utility's excess earnings
20 shall be multiplied by the average of the beginning
21 and ending balances of the electric utility's common
22 equity for the 2-year period in which excess
23 earnings occurred.
24 (ii) The result of the calculation in (i)
25 shall be multiplied by 0.50 and then divided by a
26 number equal to 1 minus the electric utility's
27 composite federal and State income tax rate.
28 (iii) The result of the calculation in (ii)
29 shall be divided by the sum of the electric
30 utility's projected total kilowatt-hour sales to
31 retail customers plus projected kilowatt-hours to be
32 delivered to delivery services customers over a one
33 year period beginning with the first billing date in
34 April in the succeeding year to determine a cents
-35- SRS90HB0362JJsaam02
1 per kilowatt-hour refund factor.
2 (iv) The cents per kilowatt-hour refund factor
3 calculated in (iii) shall be credited to the
4 electric utility's customers by applying the factor
5 on the customer's monthly bills to each
6 kilowatt-hour sold or delivered until the total
7 amount calculated in (ii) has been paid to
8 customers.
9 (f) During the mandatory transition period, an electric
10 utility may file revised tariffs reducing the price of any
11 tariffed service offered by the electric utility for all
12 customers taking that tariffed service, which shall be
13 effective 7 days after filing.
14 (g) During the mandatory transition period, an electric
15 utility may, without obtaining any approval of the Commission
16 other than that provided for in this subsection and
17 notwithstanding any other provision of this Act or any rule
18 or regulation of the Commission that would require such
19 approval:
20 (1) implement a reorganization, other than a merger
21 of 2 or more public utilities as defined in Section 3-105
22 or their holding companies;
23 (2) retire generating plants from service;
24 (3) sell, assign, lease or otherwise transfer
25 assets to an affiliated or unaffiliated entity and as
26 part of such transaction enter into service agreements,
27 power purchase agreements, or other agreements with the
28 transferee; provided, however, that the prices, terms and
29 conditions of any power purchase agreement must be
30 approved or allowed into effect by the Federal Energy
31 Regulatory Commission; or
32 (4) use any accelerated cost recovery method
33 including accelerated depreciation, accelerated
34 amortization or other capital recovery methods, or record
-36- SRS90HB0362JJsaam02
1 reductions to the original cost of its assets.
2 In order to implement a reorganization, retire generating
3 plants from service, or sell, assign, lease or otherwise
4 transfer assets pursuant to this Section, the electric
5 utility shall comply with subsections (c) and (d) of Section
6 16-128, if applicable, and provide the Commission with at
7 least 30 days notice of the proposed reorganization or
8 transaction, which notice shall include the following
9 information:
10 (i) a complete statement of the entries that
11 the electric utility will make on its books and
12 records of account to implement the proposed
13 reorganization or transaction together with a
14 certification from an independent certified public
15 accountant that such entries are in accord with
16 generally accepted accounting principles and, if the
17 Commission has previously approved guidelines for
18 cost allocations between the utility and its
19 affiliates, a certification from the chief
20 accounting officer of the utility that such entries
21 are in accord with those cost allocation guidelines;
22 (ii) a description of how the electric utility
23 will use proceeds of any sale, assignment, lease or
24 transfer to retire debt or otherwise reduce or
25 recover the costs of services provided by such
26 electric utility;
27 (iii) a list of all federal approvals or
28 approvals required from departments and agencies of
29 this State, other than the Commission, that the
30 electric utility has or will obtain before
31 implementing the reorganization or transaction;
32 (iv) an irrevocable commitment by the electric
33 utility that it will not, as a result of the
34 transaction, impose any stranded cost charges that
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1 it might otherwise be allowed to charge retail
2 customers under federal law or increase the
3 transition charges that it is otherwise entitled to
4 collect under this Article XVI; and
5 (v) if the electric utility proposes to sell,
6 assign, lease or otherwise transfer a generating
7 plant that brings the amount of net dependable
8 generating capacity transferred pursuant to this
9 subsection to an amount equal to or greater than 15%
10 of the electric utility's net dependable capacity as
11 of the effective date of this amendatory Act of
12 1997, and enters into a power purchase agreement
13 with the entity to which such generating plant is
14 sold, assigned, leased, or otherwise transferred,
15 the electric utility also agrees, if its fuel
16 adjustment clause has not already been eliminated,
17 to eliminate its fuel adjustment clause in
18 accordance with subsection (b) of Section 9-220 for
19 a period of time equal to the length of any such
20 power purchase agreement or successor agreement, or
21 until January 1, 2005, whichever is longer; if the
22 capacity of the generating plant so transferred and
23 related power purchase agreement does not result in
24 the elimination of the fuel adjustment clause under
25 this subsection, and the fuel adjustment clause has
26 not already been eliminated, the electric utility
27 shall agree that the costs associated with the
28 transferred plant that are included in the
29 calculation of the rate per kilowatt-hour to be
30 applied pursuant to the electric utility's fuel
31 adjustment clause during such period shall not
32 exceed the per kilowatt-hour cost associated with
33 such generating plant included in the electric
34 utility's fuel adjustment clause during the full
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1 calendar year preceding the transfer, with such
2 limit to be adjusted each year thereafter by the
3 Gross Domestic Product Implicit Price Deflator.
4 (vi) In addition, if the electric utility
5 proposes to sell, assign, or lease, (A) either (1)
6 an amount of generating plant that brings the amount
7 of net dependable generating capacity transferred
8 pursuant to this subsection to an amount equal to or
9 greater than 15% of its net dependable capacity on
10 the effective date of this amendatory Act of 1997,
11 or (2) one or more generating plants with a total
12 net dependable capacity of 1100 megawatts, or (B)
13 transmission and distribution facilities that either
14 (1) bring the amount of transmission and
15 distribution facilities transferred pursuant to this
16 subsection to an amount equal to or greater than 15%
17 of the electric utility's total depreciated original
18 cost investment in such facilities, or (2) represent
19 an investment of $25,000,000 in terms of total
20 depreciated original cost, the electric utility
21 shall provide, in addition to the information listed
22 in subparagraphs (i) through (v), the following
23 information: a description of how the electric
24 utility will meet its service obligations under this
25 Act in a safe and reliable manner. If the Commission
26 has not issued an order initiating a hearing on the
27 proposed transaction within 30 days after the date
28 the electric utility's notice is filed, the
29 transaction shall be deemed approved. The
30 Commission may, after notice and hearing, prohibit
31 the proposed transaction if it makes either or both
32 of the following findings: (1) that the proposed
33 transaction will render the electric utility unable
34 to provide its tariffed services in a safe and
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1 reliable manner, or (2) that there is a strong
2 likelihood that consummation of the proposed
3 transaction will result in the electric utility
4 being entitled to request an increase in its base
5 rates during the mandatory transition period
6 pursuant to subsection (d) of this Section. Any
7 hearing initiated by the Commission into the
8 proposed transaction shall be completed, and the
9 Commission's final order approving or prohibiting
10 the proposed transaction shall be entered, within 90
11 days after the date the electric utility's notice
12 was filed. Provided, however, that a sale,
13 assignment, or lease of transmission facilities to
14 an independent system operator that meets the
15 requirements of Section 16-126 shall not be subject
16 to Commission approval under this Section.
17 In any proceeding conducted by the Commission
18 pursuant to this subparagraph (vi), intervention
19 shall be limited to parties with a direct interest
20 in the transaction which is the subject of the
21 hearing and any statutory consumer protection agency
22 as defined in subsection (d) of Section 9-102.1.
23 Notwithstanding the provisions of Section 10-113 of
24 this Act, any application seeking rehearing of an
25 order issued under this subparagraph (vi), whether
26 filed by the electric utility or by an intervening
27 party, shall be filed within 10 days after service
28 of the order.
29 The Commission shall not in any subsequent proceeding or
30 otherwise, review such a reorganization or other transaction
31 authorized by this Section, but shall retain the authority to
32 allocate costs as stated in Section 16-111(i). An entity to
33 which an electric utility sells, assigns, leases or transfers
34 assets pursuant to this subsection (g) shall not, as a result
-40- SRS90HB0362JJsaam02
1 of the transactions specified in this subsection (g), be
2 deemed a public utility as defined in Section 3-105. Nothing
3 in this subsection (g) shall change any requirement under the
4 jurisdiction of the Illinois Department of Nuclear Safety
5 including, but not limited to, the payment of fees. Nothing
6 in this subsection (g) shall exempt a utility from obtaining
7 a certificate pursuant to Section 8-406 of this Act for the
8 construction of a new electric generating facility. Nothing
9 in this subsection (g) is intended to exempt the transactions
10 hereunder from the operation of the federal or State
11 antitrust laws. Nothing in this subsection (g) shall require
12 an electric utility to use the procedures specified in this
13 subsection for any of the transactions specified herein. Any
14 other procedure available under this Act may, at the electric
15 utility's election, be used for any such transaction.
16 (h) During the mandatory transition period, the
17 Commission shall not establish or use any rates of
18 depreciation, which for purposes of this subsection shall
19 include amortization, for any electric utility other than
20 those established pursuant to subsection (c) of Section 5-104
21 of this Act or utilized pursuant to subsection (g) of this
22 Section. Provided, however, that in any proceeding to review
23 an electric utility's rates for tariffed services pursuant to
24 Section 9-201, 9-202, 9-250 or 16-111(d) of this Act, the
25 Commission may establish new rates of depreciation for the
26 electric utility in the same manner provided in subsection
27 (d) of Section 5-104 of this Act. An electric utility
28 implementing an accelerated cost recovery method including
29 accelerated depreciation, accelerated amortization or other
30 capital recovery methods, or recording reductions to the
31 original cost of its assets, pursuant to subsection (g) of
32 this Section, shall file a statement with the Commission
33 describing the accelerated cost recovery method to be
34 implemented or the reduction in the original cost of its
-41- SRS90HB0362JJsaam02
1 assets to be recorded. Upon the filing of such statement,
2 the accelerated cost recovery method or the reduction in the
3 original cost of assets shall be deemed to be approved by the
4 Commission as though an order had been entered by the
5 Commission.
6 (i) Subsequent to the mandatory transition period, the
7 Commission, in any proceeding to establish rates and charges
8 for tariffed services offered by an electric utility, shall
9 consider only (1) the then current or projected revenues,
10 costs, investments and cost of capital directly or indirectly
11 associated with the provision of such tariffed services; (2)
12 collection of transition charges in accordance with Sections
13 16-102 and 16-108 of this Act; (3) recovery of any employee
14 transition costs as described in Section 16-128 which the
15 electric utility is continuing to incur, including recovery
16 of any unamortized portion of such costs previously incurred
17 or committed, with such costs to be equitably allocated among
18 bundled services, delivery services, and contracts with
19 alternative retail electric suppliers; and (4) recovery of
20 the costs associated with the electric utility's compliance
21 with decommissioning funding requirements; and shall not
22 consider any other revenues, costs, investments or cost of
23 capital of either the electric utility or of any affiliate of
24 the electric utility that are not associated with the
25 provision of tariffed services. In setting rates for
26 tariffed services, the Commission shall equitably allocate
27 joint and common costs and investments between the electric
28 utility's competitive and tariffed services. In determining
29 the justness and reasonableness of the electric power and
30 energy component of an electric utility's rates for tariffed
31 services subsequent to the mandatory transition period and
32 prior to the time that the provision of such electric power
33 and energy is declared competitive, the Commission shall
34 consider the extent to which the electric utility's tariffed
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1 rates for such component for each customer class exceed the
2 market value determined pursuant to Section 16-112, and, if
3 the electric power and energy component of such tariffed rate
4 exceeds the market value by more than 10% for any customer
5 class, may establish such electric power and energy component
6 at a rate equal to the market value plus 10%. In any such
7 case, the Commission may also elect to extend the provisions
8 of Section 16-111(e) for any period in which the electric
9 utility is collecting transition charges, using information
10 applicable to such period.
11 (j) During the mandatory transition period, an electric
12 utility may elect to transfer to a non-operating income
13 account under the Commission's Uniform System of Accounts
14 either or both of (i) an amount of unamortized investment tax
15 credit that is in addition to the ratable amount which is
16 credited to the electric utility's operating income account
17 for the year in accordance with Section 46(f)(2) of the
18 federal Internal Revenue Code of 1986, as in effect prior to
19 P.L. 101-508, or (ii) "excess tax reserves", as that term is
20 defined in Section 203(e)(2)(A) of the federal Tax Reform Act
21 of 1986, provided that (A) the amount transferred may not
22 exceed the amount of the electric utility's assets that were
23 created pursuant to Statement of Financial Accounting
24 Standards No. 71 which the electric utility has written off
25 during the mandatory transition period, and (B) the transfer
26 shall not be effective until approved by the Internal Revenue
27 Service. An electric utility electing to make such a
28 transfer shall file a statement with the Commission stating
29 the amount and timing of the transfer for which it intends to
30 request approval of the Internal Revenue Service, along with
31 a copy of its proposed request to the Internal Revenue
32 Service for a ruling. The Commission shall issue an order
33 within 14 days after the electric utility's filing approving,
34 subject to receipt of approval from the Internal Revenue
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1 Service, the proposed transfer.
2 (220 ILCS 5/16-112 new)
3 Sec. 16-112. Determination of market value.
4 (a) The market value to be used in the calculation of
5 transition charges as defined in Section 16-102 shall be
6 determined in accordance with either (i) a tariff that has
7 been filed by the electric utility with the Commission
8 pursuant to Article IX of this Act and that provides for a
9 determination of the market value for electric power and
10 energy as a function of an exchange traded or other market
11 traded index, options or futures contract or contracts
12 applicable to the market in which the utility sells, and the
13 customers in its service area buy, electric power and energy,
14 or (ii) in the event no such tariff has been placed into
15 effect for the electric utility, or in the event such tariff
16 does not establish market values for each of the years
17 specified in the neutral fact-finder process described in
18 subsections (b) through (h) of this Section, a tariff
19 incorporating the market values resulting from the neutral
20 fact-finder process set forth in subsections (b) through (h)
21 of this Section.
22 (b) Except as provided in subsection (m) of this
23 Section, on or before April 30, 1998, on or before February
24 28, 1999, and on or before each April 30 from 2000 until
25 2007, the Commission shall appoint a neutral fact-finder to
26 make the calculations described in subsection (c) of this
27 Section. The neutral fact-finder shall be a member of a
28 national public accounting firm, shall not have served as the
29 neutral fact-finder in the previous year, and shall be
30 selected from a list of candidates provided by a nationally
31 recognized provider of neutral fact-finders that has
32 established rules for maintaining confidentiality. An amount
33 sufficient to pay the fees of the neutral fact-finder shall
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1 be appropriated annually from the Public Utility Fund in the
2 State treasury.
3 (c) On or before June 1, 1998, on or before April 1,
4 1999, and on or before each June 1 from 2000 until 2007, or
5 until discontinued in accordance with subsection (m) of this
6 Section, each electric utility and each alternative retail
7 electric supplier shall submit to the neutral fact-finder a
8 summary of (A) all contracts entered into after June 1, 1997
9 that are for the sale of electric power and energy from a
10 generating facility or facilities located in this State or
11 located in a contiguous State and owned by an electric
12 utility as part of its interconnected operating system and
13 delivery during one or more of the 5 years succeeding the
14 date of submission, and (B) all contracts entered into after
15 June 1, 1997 for purchase and delivery of electric power and
16 energy in or into this State during one or more of the 5
17 years succeeding the date of submission; provided, however,
18 that such contracts shall not include (i) contracts between
19 the electric utility and an affiliate; (ii) sales, purchases,
20 or deliveries made under rates and tariffs filed with the
21 Commission, except for tariffs filed pursuant to subsection
22 (d) of Section 16-110 and except for special or negotiated
23 rate contracts between an electric utility and a retail
24 customer to the extent that such contracts are for the
25 provision of electric power and energy after the date that
26 the customer becomes eligible for delivery services; and
27 (iii) extensions or amendments to full requirements wholesale
28 contracts existing as of the effective date of this
29 amendatory Act of 1997, provided that such contracts,
30 extensions, or amendments are cost of service regulated by
31 the Federal Energy Regulatory Commission. The summaries
32 shall, at a minimum, identify the date of the contract; the
33 year in which the electric power or energy is to be sold or
34 delivered; the point of delivery; defining characteristics
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1 such as the nature of the power transaction (for example,
2 reserve responsibility (firm, non-firm)), length of contract
3 and temporal differences (for example, season, on-peak or
4 off-peak); and the applicable prices stated at the point at
5 which the electric power and energy leaves the electric
6 utility's or alternative retail electric supplier's
7 transmission system, as the case may be, in the case of
8 contracts described in item (A) and at the point at which the
9 electric power and energy enters the electric utility's
10 transmission system in the case of contracts in item (B),
11 provided, that the applicable price shall be stated at the
12 point at which the electric power and energy enters the
13 electric utility's transmission system in the case of
14 electric power and energy generated for delivery within the
15 electric utility's service area. In reporting to the neutral
16 fact-finder the price of power and energy sold under bundled
17 service contracts, electric utilities and alternative retail
18 electric suppliers shall deduct from the contract price the
19 charges for delivery services, including transition charges,
20 applicable to delivery services customers in a utility's
21 service area, and charges for services, if any, other than
22 the provision of power and energy or delivery services. The
23 Commission may adopt orders setting forth requirements
24 governing the form and content of such summaries.
25 (d) The neutral fact-finder shall calculate market
26 values for electric power and energy for each electric
27 utility, taking into account the defining characteristics set
28 forth in subsection (c) of this Section; provided, however,
29 that the neutral fact-finder may determine that a particular
30 value is appropriate for more than one electric utility, or
31 for all electric utilities in this State. The neutral
32 fact-finder shall calculate the market values for the next
33 year and, to the extent the summaries include a sufficient
34 number of actual contracts to represent a viable market for
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1 the sale and delivery of electric power and energy in
2 subsequent years, for each of the 4 succeeding years.
3 (e) In calculating market values for electric power, the
4 neutral fact-finder shall weight contract prices (including
5 any contract price indices) by both the amount of capacity
6 covered by the contract and the number of hours in which
7 capacity is to be provided under the contract in each period
8 of the year, shall take into account all of the defining
9 characteristics set forth in subsection (c) of this Section
10 and shall develop such values as required to represent the
11 different types of market values of electric power.
12 (f) The neutral fact-finder shall base calculations of
13 the market values for electric energy on the energy prices
14 stated in the contracts, and where no explicit energy prices
15 or index price basis are stated, on the actual energy costs
16 of the supplier in the corresponding period of the preceding
17 year that would have been applicable to the electric energy
18 provided under the contract. The neutral fact-finder shall
19 develop market values for electric energy and shall take into
20 account the defining characteristics set forth in subsection
21 (c) of this Section, as required to represent the market
22 values of such electric energy.
23 (g) If the contracts used by the neutral fact-finder
24 base prices for future years on one or more indices, the
25 neutral fact-finder shall identify such indices in his or her
26 final report, develop a weighting for each index, and
27 calculate a weighted average index. The market values shall
28 be calculated using the weighted average index when the
29 actual values of the component indices are known.
30 (h) The neutral fact-finder shall publish a final report
31 on or before July 30 of each year, except that in 1999 the
32 neutral fact finder shall publish the report on or before May
33 30, setting forth the calculated market values and stating
34 the basis for such calculations. The final report shall not,
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1 however, disclose any proprietary or confidential data.
2 (i) The market values calculated by the neutral
3 fact-finder shall not be admissible in any proceeding for any
4 purpose other than the calculation of transition charges or
5 calculation of the price for the power purchase options
6 provided pursuant to subsection (b) and (c) of Section
7 16-110.
8 (j) The Commission shall have access to all contracts
9 described in subsection (c) of this Section and shall perform
10 such audits as it and the neutral fact-finder deem necessary
11 to insure the accuracy of the summaries submitted to the
12 neutral fact-finder. The summaries described in subsection
13 (c) of this Section and each contract shall be accorded
14 confidential and proprietary treatment and their review shall
15 be subject to the provisions of Sections 4-404 and 5-108 of
16 this Act, and the contract between the Commission and the
17 neutral fact-finder shall contain provisions obligating the
18 neutral fact-finder to comply with such Sections. The
19 summaries shall not be discoverable by any party in any
20 proceeding absent a compelling demonstration of need.
21 (k) In determining the market values to be used for the
22 various customer classes in calculating transition charges as
23 defined in Section 16-102 or for the power purchase options
24 set forth in Section 16-110, an electric utility shall apply
25 the market values that are determined as set forth in
26 subsection (a) to the electric power and energy that would
27 have been used to serve the delivery services customers'
28 electric power and energy requirements, based on the usage
29 specified in Section 16-102 and taking into account the
30 daily, monthly, annual and other relevant characteristics of
31 the customers' demands on the electric utility's system.
32 (l) In calculating a lump sum transition charge payment
33 for the purposes of subsection (h) of Section 16-108, the
34 electric utility shall use the market values that were
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1 determined as provided in its tariff, or if such market
2 values have not been determined for the full period of time
3 covered by such lump sum calculation, such other basis as is
4 stated in the electric utility's tariff filed pursuant to
5 Section 16-108.
6 (m) The Commission may approve or reject, or propose
7 modifications to, any tariff providing for the determination
8 of market value that has been proposed by an electric utility
9 pursuant to subsection (a) of this Section, but shall not
10 have the power to otherwise order the electric utility to
11 implement a modified tariff or to place into effect any
12 tariff for the determination of market value other than one
13 incorporating the neutral fact-finder procedure set forth in
14 this Section. Provided, however, that if each electric
15 utility serving at least 300,000 customers has placed into
16 effect a tariff that provides for a determination of market
17 value as a function of an exchange traded or other market
18 traded index, options or futures contract or contracts, then
19 the Commission can require any other electric utilities to
20 file such a tariff, and can terminate the neutral fact-finder
21 procedure for the periods covered by such tariffs.
22 (n) To the extent that the summaries list a sufficient
23 number of actual contracts to represent a viable market and
24 market values can be determined for more than one year, the
25 electric utility shall offer customers that are obligated to
26 pay transition charges contracts that establish for one or
27 more years, up to a maximum of the lesser of 5 years or the
28 remaining number of years until December 31, 2008, the market
29 value or values to be used in calculating the customer's
30 transition charges in such years and for which market value
31 determinations have been made. The electric utility may
32 require any customer to give up to one year notice prior to
33 entering into a one or 2 year contract pursuant to this
34 subsection, up to 2 years notice for a 3 year contract, and
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1 up to 3 years notice for a 4 or 5 year contract. Contracts
2 of one or 2 years duration shall incorporate the market
3 values that were determined as provided in this Section in
4 the year in which the notice is required to be given.
5 Contracts of more than 2 years duration shall incorporate the
6 market values that are determined in the year prior to the
7 first year in which the electric utility will collect
8 transition charges from the customer under the contract. The
9 electric utility shall also allow customers to select, at the
10 time that a customer gives its notice, an option to revoke
11 the notice within 30 days following the determination of the
12 market values that will apply under the contract requested by
13 the customer, and may charge customers a fee for such option
14 that is set forth in a tariff filed pursuant to Article IX
15 and that is adequate to allow the electric utility to recover
16 its transactional costs and compensate it based on the cost
17 that would be incurred to purchase an option to cover the
18 risk associated with the customer's option to revoke. The
19 electric utility shall not be required to offer customers a
20 contract under this paragraph for any year for which no
21 determination of market value has been made either by the
22 neutral fact-finder or pursuant to a tariff filed by the
23 electric utility.
24 (o) An electric utility shall have no obligation to
25 provide electric power or energy as a tariffed service for
26 the electric power and energy requirements placed on delivery
27 service by any customer that has entered into a contract
28 pursuant to subsection (n) of this Section and has not
29 purchased and exercised an option to revoke, during the term
30 of the contract. A customer that has purchased and exercised
31 an option to revoke under this subsection shall remain
32 eligible to receive any tariffed service for which it would
33 otherwise be eligible.
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1 (220 ILCS 5/16-113 new)
2 Sec. 16-113. Declaration of service as a competitive
3 service.
4 (a) An electric utility may, by petition, request the
5 Commission to declare a tariffed service provided by the
6 electric utility to be a competitive service. The electric
7 utility shall give notice of its petition to the public in
8 the same manner that public notice is provided for proposed
9 general increases in rates for tariffed services, in
10 accordance with rules and regulations prescribed by the
11 Commission. The Commission shall hold a hearing on the
12 petition if a hearing is deemed necessary by the Commission.
13 The Commission shall declare the service to be a competitive
14 service for some identifiable customer segment or group of
15 customers, or some clearly defined geographical area within
16 the electric utility's service area, if the service or a
17 reasonably equivalent substitute service is reasonably
18 available to the customer segment or group or in the defined
19 geographical area at a comparable price from one or more
20 providers other than the electric utility or an affiliate of
21 the electric utility, and the electric utility has lost or
22 there is a reasonable likelihood that the electric utility
23 will lose business for the service to the other provider or
24 providers; provided, that the Commission may not declare the
25 provision of electric power and energy to be competitive
26 pursuant to this subsection with respect to (i) any retail
27 customer or group of retail customers that is not eligible
28 pursuant to Section 16-104 to take delivery services provided
29 by the electric utility and (ii) any residential and small
30 commercial retail customers prior to the last date on which
31 such customers are required to pay transition charges. In
32 determining whether to grant or deny a petition to declare
33 the provision of electric power and energy competitive, the
34 Commission shall consider, in applying the above criteria,
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1 whether there is adequate transmission capacity into the
2 service area of the petitioning electric utility to make
3 electric power and energy reasonably available to the
4 customer segment or group or in the defined geographical area
5 from one or more providers other than the electric utility or
6 an affiliate of the electric utility, in accordance with this
7 subsection. The Commission shall make its determination and
8 issue its final order declaring or refusing to declare the
9 service to be a competitive service within 120 days following
10 the date that the petition is filed, or otherwise the
11 petition shall be deemed to be granted; provided, that if the
12 petition is deemed to be granted by operation of law, the
13 Commission shall not thereby be precluded from finding and
14 ordering, in a subsequent proceeding initiated by the
15 Commission, and after notice and hearing, that the service is
16 not competitive based on the criteria set forth in this
17 subsection.
18 (b) Any customer except a customer identified in
19 subsection (c) of Section 16-103 who is taking a tariffed
20 service that is declared to be a competitive service pursuant
21 to subsection (a) of this Section shall be entitled to
22 continue to take the service from the electric utility on a
23 tariffed basis for a period of 3 years following the date
24 that the service is declared competitive, or such other
25 period as is stated in the electric utility's tariff pursuant
26 to Section 16-110. This subsection shall not require the
27 electric utility to offer or provide on a tariffed basis any
28 service to any customer (except those customers identified in
29 subsection (c) of Section 16-103) that was not taking such
30 service on a tariffed basis on the date the service was
31 declared to be competitive.
32 (c) If the Commission denies a petition to declare a
33 service to be a competitive service, or determines in a
34 separate proceeding that a service is not competitive based
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1 on the criteria set forth in subsection (a), the electric
2 utility may file a new petition no earlier than 6 months
3 following the date of the Commission's order, requesting, on
4 the basis of additional or different facts and circumstances,
5 that the service be declared to be a competitive service.
6 (d) The Commission shall not deny a petition to declare
7 a service to be a competitive service, and shall not find
8 that a service is not a competitive service, on the grounds
9 that it has previously denied the petition of another
10 electric utility to declare the same or a similar service to
11 be a competitive service or has previously determined that
12 the same or a similar service provided by another electric
13 utility is not a competitive service.
14 (e) An electric utility may declare a service, other
15 than delivery services or the provision of electric power or
16 energy, to be competitive by filing with the Commission at
17 least 14 days prior to the date on which the service is to
18 become competitive a notice describing the service that is
19 being declared competitive and the date on which it will
20 become competitive; provided, that any customer who is taking
21 a tariffed service that is declared to be a competitive
22 service pursuant to this subsection (e) shall be entitled to
23 continue to take the service from the electric utility on a
24 tariffed basis until the electric utility files, and the
25 Commission grants, a petition to declare the service
26 competitive in accordance with subsection (a) of this
27 Section. The Commission shall be authorized to find and
28 order, after notice and hearing in a subsequent proceeding
29 initiated by the Commission, that any service declared to be
30 competitive pursuant to this subsection (e) is not
31 competitive in accordance with the criteria set forth in
32 subsection (a) of this Section.
33 (220 ILCS 5/16-114 new)
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1 Sec. 16-114. Recovery of decommissioning charges. On or
2 before April 1, 1999, each electric utility owning an
3 interest in, or having responsibility as a matter of contract
4 or statute for decommissioning costs as defined in Section
5 8-508.1 of, one or more nuclear power plants shall file with
6 the Commission a tariff or tariffs conforming to the
7 provisions of Section 9-201.5 of this Act, to be applicable
8 to each and every kilowatt-hour of electricity delivered or
9 sold at retail in the electic utility's service area,
10 including, but not limited to, sales by the electric utility
11 to tariffed services retail customers, sales by the electric
12 utility to retail customers pursuant to special contracts or
13 other negotiated arrangements, sales by alternative retail
14 electric suppliers, and sales by an electric utility other
15 than the electric utility in whose service area the retail
16 customer is located; provided, however, that for a user that
17 obtained electric power and energy from its own cogeneration
18 or self-generation facilities on or before January 1, 1997,
19 and subsequently takes services from an alternative retail
20 electric supplier or an electric utility other than the
21 electric utility in whose service area the user is located
22 for any portion of its electric power and energy requirements
23 formerly obtained from those facilities, the tariff required
24 by this Section shall not be applicable in any year to that
25 portion of the user's electric power and energy requirements
26 formerly obtained from those facilities, provided that for
27 the purposes of this Section, such portion shall not exceed
28 the average number of kilowatt-hours per year obtained from
29 the cogeneration or self-generation facilities during the 3
30 years prior to the date on which the user became eligible for
31 delivery services.
32 The Commission shall determine whether the tariff meets
33 the requirements of Sections 9-201 and 9-201.5 and of this
34 Section, and shall permit the electric utility's tariff
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1 together with any modifications made after hearing to become
2 effective no later than October 1, 1999. In making its
3 determination, the Commission shall retain the authority it
4 possessed prior to the effective date of this amendatory Act
5 of 1997 to make jurisdictional allocations of decommissioning
6 expense recovery. The tariff filed pursuant to this Section
7 shall be applicable to any user taking some or all of its
8 electric power and energy requirements from an alternative
9 retail electric supplier or from an electric utility other
10 than the electric utility in whose service area the user is
11 located on and after the date that the user becomes eligible
12 for delivery services in accordance with Section 16-104. If
13 the electric utility has in effect as of the effective date
14 of this amendatory Act of 1997 a decommissioning rate as
15 defined in Section 9-201.5 conforming to the requirements of
16 that Section, the tariff or tariffs required by this Section
17 shall if the electric utility requests be consistent with its
18 decommissioning rate that is already in effect; provided,
19 that the tariff or tariffs filed pursuant to this Section
20 shall provide for the removal from base rates of any
21 decommissioning costs that are included in the electric
22 utility's base rates and their inclusion in the tariff or
23 tariffs required by this Section. The tariff required by this
24 Section shall be included by the Commission in the reviews
25 required by subsection (d) of Section 9-201.5.
26 (220 ILCS 5/16-115 new)
27 Sec. 16-115. Certification of alternative retail electric
28 suppliers.
29 (a) Any alternative retail electric supplier must obtain
30 a certificate of service authority from the Commission in
31 accordance with this Section before serving any retail
32 customer or other user located in this State. An alternative
33 retail electric supplier may request, and the Commission may
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1 grant, a certificate of service authority for the entire
2 State or for a specified geographic area of the State.
3 (b) An alternative retail electric supplier seeking a
4 certificate of service authority shall file with the
5 Commission a verified application containing information
6 showing that the applicant meets the requirements of this
7 Section. The alternative retail electric supplier shall
8 publish notice of its application in the official State
9 newspaper within 10 days following the date of its filing.
10 No later than 45 days after the application is properly filed
11 with the Commission, and such notice is published, the
12 Commission shall issue its order granting or denying the
13 application.
14 (c) An application for a certificate of service
15 authority shall identify the area or areas in which the
16 applicant intends to offer service and the types of services
17 it intends to offer. Applicants that seek to serve
18 residential or small commercial retail customers within a
19 geographic area that is smaller than an electric utility's
20 service area shall submit evidence demonstrating that the
21 designation of this smaller area does not violate Section
22 16-115A. An applicant that seeks to serve residential or
23 small commercial retail customers may state in its
24 application for certification any limitations that will be
25 imposed on the number of customers or maximum load to be
26 served.
27 (d) The Commission shall grant the application for a
28 certificate of service authority if it makes the findings set
29 forth in this subsection based on the verified application
30 and such other information as the applicant may submit:
31 (1) That the applicant possesses sufficient
32 technical, financial and managerial resources and
33 abilities to provide the service for which it seeks a
34 certificate of service authority. In determining the
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1 level of technical, financial and managerial resources
2 and abilities which the applicant must demonstrate, the
3 Commission shall consider (i) the characteristics,
4 including the size and financial sophistication, of the
5 customers that the applicant seeks to serve, and (ii)
6 whether the applicant seeks to provide electric power and
7 energy using property, plant and equipment which it owns,
8 controls or operates;
9 (2) That the applicant will comply with all
10 applicable federal, State, regional and industry rules,
11 policies, practices and procedures for the use,
12 operation, and maintenance of the safety, integrity and
13 reliability, of the interconnected electric transmission
14 system;
15 (3) That the applicant will only provide service to
16 retail customers in an electric utility's service area
17 that are eligible to take delivery services under this
18 Act;
19 (4) That the applicant will comply with such
20 informational or reporting requirements as the Commission
21 may by rule establish and provide the information
22 required by Section 16-112. Any data related to
23 contracts for the purchase and sale of electric power and
24 energy shall be made available for review by the Staff of
25 the Commission on a confidential and proprietary basis
26 and only to the extent and for the purposes which the
27 Commission determines are reasonably necessary in order
28 to carry out the purposes of this Act;
29 (5) That if the applicant, its corporate affiliates
30 or the applicant's principal source of electricity (to
31 the extent such source is known at the time of the
32 application) owns or controls facilities, for public use,
33 for the transmission or distribution of electricity to
34 end-users within a defined geographic area to which
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1 electric power and energy can be physically and
2 economically delivered by the electric utility or
3 utilities in whose service area or areas the proposed
4 service will be offered, the applicant, its corporate
5 affiliates or principal source of electricity, as the
6 case may be, provides delivery services to the electric
7 utility or utilities in whose service area or areas the
8 proposed service will be offered that are reasonably
9 comparable to those offered by the electric utility, and
10 provided further, that the applicant agrees to certify
11 annually to the Commission that it is continuing to
12 provide such delivery services and that it has not
13 knowingly assisted any person or entity to avoid the
14 requirements of this Section. For purposes of this
15 subparagraph, "principal source of electricity" shall
16 mean a single source that supplies at least 65% of the
17 applicant's electric power and energy, and the purchase
18 of transmission and distribution services pursuant to a
19 filed tariff under the jurisdiction of the Federal Energy
20 Regulatory Commission or a state public utility
21 commission shall not constitute control of access to the
22 provider's transmission and distribution facilities;
23 (6) With respect to an applicant that seeks to
24 serve residential or small commercial retail customers,
25 that the area to be served by the applicant and any
26 limitations it proposes on the number of customers or
27 maximum amount of load to be served meet the provisions
28 of Section 16-115A, provided, that the Commission can
29 extend the time for considering such a certificate
30 request by up to 90 days, and can schedule hearings on
31 such a request;
32 (7) That the applicant meets the requirements of
33 subsection (a) of Section 16-128; and
34 (8) That the applicant will comply with all other
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1 applicable laws and regulations.
2 (e) A retail customer that owns a cogeneration or
3 self-generation facility and that seeks certification only to
4 provide electric power and energy from such facility to
5 retail customers at separate locations which customers are
6 both (i) owned by, or a subsidiary or other corporate
7 affiliate of, such applicant and (ii) eligible for delivery
8 services, shall be granted a certificate of service authority
9 upon filing an application and notifying the Commission that
10 it has entered into an agreement with the relevant electric
11 utilities pursuant to Section 16-118.
12 (f) The Commission shall have the authority to
13 promulgate rules and regulations to carry out the provisions
14 of this Section. On or before May 1, 1999, the Commission
15 shall adopt a rule or rules applicable to the certification
16 of those alternative retail electric suppliers that seek to
17 serve only nonresidential retail customers with maximum
18 electrical demands of one megawatt or more which shall
19 provide for (i) expedited and streamlined procedures for
20 certification of such alternative retail electric suppliers
21 and (ii) specific criteria which, if met by any such
22 alternative retail electric supplier, shall constitute the
23 demonstration of technical, financial and managerial
24 resources and abilities to provide service required by
25 subsection (d) (1) of this Section, such as a requirement to
26 post a bond or letter of credit, from a responsible surety or
27 financial institution, of sufficient size for the nature and
28 scope of the services to be provided; demonstration of
29 adequate insurance for the scope and nature of the services
30 to be provided; and experience in providing similar services
31 in other jurisdictions.
32 (220 ILCS 5/16-115A new)
33 Sec. 16-115A. Obligations of alternative retail electric
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1 suppliers.
2 (a) An alternative retail electric supplier shall:
3 (i) comply with the requirements imposed on public
4 utilities by Sections 8-201 through 8-207, 8-301, 8-505
5 and 8-507 of this Act, to the extent that these sections
6 have application to the services being offered by the
7 alternative retail electric supplier; and
8 (ii) continue to comply with the requirements for
9 certification stated in subsection (d) of Section 16-115.
10 (b) An alternative retail electric supplier shall obtain
11 verifiable authorization from a customer, in a form or manner
12 approved by the Commission consistent with Section 2EE of the
13 Consumer Fraud and Deceptive Business Practices Act, before
14 the customer is switched from another supplier.
15 (c) No alternative retail electric supplier, or electric
16 utility other than the electric utility in whose service area
17 a customer is located, shall (i) enter into or employ any
18 arrangements which have the effect of preventing a retail
19 customer with a maximum electrical demand of less than one
20 megawatt from having access to the services of the electric
21 utility in whose service area the customer is located or (ii)
22 charge retail customers for such access. This subsection
23 shall not be construed to prevent an arms-length agreement
24 between a supplier and a retail customer that sets a term of
25 service, notice period for terminating service and provisions
26 governing early termination through a tariff or contract as
27 allowed by Section 16-119.
28 (d) An alternative retail electric supplier that is
29 certified to serve residential or small commercial retail
30 customers shall not:
31 (1) deny service to a customer or group of
32 customers nor establish any differences as to
33 prices, terms, conditions, services, products,
34 facilities, or in any other respect, whereby such
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1 denial or differences are based upon race, gender or
2 income.
3 (2) deny service to a customer or group of
4 customers based on locality nor establish any
5 unreasonable difference as to prices, terms,
6 conditions, services, products, or facilities as
7 between localities.
8 (e) An alternative retail electric supplier shall comply
9 with the following requirements with respect to the
10 marketing, offering and provision of products or services to
11 residential and small commercial retail customers:
12 (i) Any marketing materials which make statements
13 concerning prices, terms and conditions of service shall
14 contain information that adequately discloses the prices,
15 terms and conditions of the products or services that the
16 alternative retail electric supplier is offering or
17 selling to the customer.
18 (ii) Before any customer is switched from another
19 supplier, the alternative retail electric supplier shall
20 give the customer written information that adequately
21 discloses, in plain language, the prices, terms and
22 conditions of the products and services being offered and
23 sold to the customer.
24 (iii) An alternative retail electric supplier shall
25 provide documentation to the Commission and to customers
26 that substantiates any claims made by the alternative
27 retail electric supplier regarding the technologies and
28 fuel types used to generate the electricity offered or
29 sold to customers.
30 (iv) The alternative retail electric supplier shall
31 provide to the customer (1) itemized billing statements
32 that describe the products and services provided to the
33 customer and their prices, and (2) an additional
34 statement, at least annually, that adequately discloses
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1 the average monthly prices, and the terms and conditions,
2 of the products and services sold to the customer.
3 (f) An alternative retail electric supplier may limit
4 the overall size or availability of a service offering by
5 specifying one or more of the following: a maximum number of
6 customers, maximum amount of electric load to be served, time
7 period during which the offering will be available, or other
8 comparable limitation, but not including the geographic
9 locations of customers within the area which the alternative
10 retail electric supplier is certificated to serve. The
11 alternative retail electric supplier shall file the terms and
12 conditions of such service offering including the applicable
13 limitations with the Commission prior to making the service
14 offering available to customers.
15 (g) Nothing in this Section shall be construed as
16 preventing an alternative retail electric supplier, which is
17 an affiliate of, or which contracts with, (i) an industry or
18 trade organization or association, (ii) a membership
19 organization or association that exists for a purpose other
20 than the purchase of electricity, or (iii) another
21 organization that meets criteria established in a rule
22 adopted by the Commission, from offering through the
23 organization or association services at prices, terms and
24 conditions that are available solely to the members of the
25 organization or association.
26 (220 ILCS 5/16-115B new)
27 Sec. 16-115B. Commission oversight of services provided
28 by alternative retail electric suppliers.
29 (a) The Commission shall have jurisdiction in accordance
30 with the provisions of Article X of this Act to entertain and
31 dispose of any complaint against any alternative retail
32 electric supplier alleging (i) that the alternative retail
33 electric supplier has violated or is in nonconformance with
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1 any applicable provisions of Section 16-115 through Section
2 16-115A; (ii) that an alternative retail electric supplier
3 serving retail customers having maximum demands of less than
4 one megawatt has failed to provide service in accordance with
5 the terms of its contract or contracts with such customer or
6 customers; (iii) that the alternative retail electric
7 supplier has violated or is in non-conformance with the
8 delivery services tariff of, or any of its agreements
9 relating to delivery services with, the electric utility,
10 municipal system, or electric cooperative providing delivery
11 services; or (iv) that the alternative retail electric
12 supplier has violated or failed to comply with the
13 requirements of Sections 8-201 through 8-207, 8-301, 8-505,
14 or 8-507 of this Act as made applicable to alternative retail
15 electric suppliers.
16 (b) The Commission shall have authority, after notice
17 and hearing held on complaint or on the Commission's own
18 motion:
19 (1) To order an alternative retail electric
20 supplier to cease and desist, or correct, any violation
21 of or non-conformance with the provisions of Section
22 16-115 or 16-115A;
23 (2) To impose financial penalties for violations of
24 or non-conformances with the provisions of Section 16-115
25 or 16-115A, not to exceed (i) $10,000 per occurrence or
26 (ii) $30,000 per day for those violations or
27 non-conformances which continue after the Commission
28 issues a cease-and-desist order; and
29 (3) To alter, modify, revoke or suspend the
30 certificate of service authority of an alternative retail
31 electric supplier for substantial or repeated violations
32 of or non-conformances with the provisions of Section
33 16-115 or 16-115A.
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1 (220 ILCS 5/16-116 new)
2 Sec. 16-116. Commission oversight of electric utilities
3 serving retail customers outside their service areas or
4 providing competitive, non-tariffed services.
5 (a) An electric utility that has a tariff on file for
6 delivery services may, without regard to any otherwise
7 applicable tariffs on file, provide electric power and energy
8 to one or more retail customers located outside its service
9 area, but only to the extent (i) such retail customer (A) is
10 eligible for delivery services under any delivery services
11 tariff filed with the Commission by the electric utility in
12 whose service area the retail customer is located and (B) has
13 either elected to take such delivery services or has paid or
14 contracted to pay the charges specified in Sections 16-108
15 and 16-114, or (ii) if such retail customer is served by a
16 municipal system or electric cooperative, the customer is
17 eligible for delivery services under the terms and conditions
18 for such service established by the municipal system or
19 electric cooperative serving that customer.
20 (b) An electric utility may offer any competitive
21 service to any customer or group of customers without filing
22 contracts with or seeking approval of the Commission,
23 notwithstanding any rule or regulation that would require
24 such approval. The Commission shall not increase or decrease
25 the prices, and may not alter or add to the terms and
26 conditions for the utility's competitive services, from those
27 agreed to by the electric utility and the customer or
28 customers. Non-tariffed, competitive services shall not be
29 subject to the provisions of the Electric Supplier Act or to
30 Articles V, VII, VIII or IX of the Act, except to the extent
31 that any provisions of such Articles are made applicable to
32 alternative retail electric suppliers pursuant to Sections
33 16-115 and 16-115A, but shall be subject to the provisions of
34 subsections (b) through (g) of Section 16-115A, and Section
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1 16-115B to the same extent such provisions are applicable to
2 the services provided by alternative retail electric
3 suppliers.
4 (220 ILCS 5/16-117 new)
5 Sec. 16-117. Commission consumer education program.
6 (a) The restructuring of the electricity industry will
7 create a new electricity market with new marketers and
8 sellers offering new goods and services, many of which the
9 average consumer will not be able to readily evaluate. It is
10 the intent of the General Assembly that (i) electricity
11 consumers be provided with sufficient and reliable
12 information so that they are able to compare and make
13 informed selections of products and services provided in the
14 electricity market; and (ii) mechanisms be provided to enable
15 consumers to protect themselves from marketing practices that
16 are unfair or abusive.
17 (b) The Commission shall implement and maintain a
18 consumer education program to provide residential and small
19 commercial retail customers with information to help them
20 understand their service options in a competitive electric
21 services market, and their rights and responsibilities.
22 (c) The Commission shall form a working group following
23 the enactment of this amendatory Act of 1997. This group
24 shall consist of 5 representatives of the investor-owned
25 electric utilities in this State, 2 of which shall be
26 appointed by electric utilities serving over 1,000,000 retail
27 customers in this State; 2 representatives of alternative
28 retail electric suppliers; 3 representatives of organizations
29 representing the interests of residential and small
30 commercial retail customers; and the Commission.
31 (d) By March 1, 1999, with respect to educational
32 materials for small commercial customers and by November 1,
33 2001 with respect to educational materials for residential
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1 customers, the working group appointed pursuant to this
2 Section shall develop a package of printed educational
3 materials which meet the requirements of subsection (e) and
4 shall submit such package to the Commission for approval,
5 along with recommendations for implementing this consumer
6 education program. Such materials shall consider the needs of
7 different types of consumers in this State, such as elderly,
8 low-income, multilingual, minority, rural and disabled
9 customers. The working group shall issue recommendations to
10 the Commission on how such education program can be
11 implemented through a variety of communication methods,
12 including specifically mass media, distribution of printed
13 material, public service announcements, and posting on the
14 Internet.
15 (e) At a minimum, the materials constituting the
16 consumer education program submitted to the Commission by the
17 working group shall include concise explanations or
18 descriptions of the following:
19 (1) the structure of the electric utility industry
20 following this amendatory Act of 1997 and a glossary of
21 basic terms;
22 (2) the choices available to consumers to take
23 electric service from an alternative retail electric
24 supplier or remain as a retail customer of an electric
25 utility;
26 (3) a customer's rights, risks and responsibilities
27 in receiving service from an alternative retail electric
28 supplier or remaining as a retail customer of an electric
29 utility;
30 (4) the legal obligations of alternative retail
31 electric suppliers;
32 (5) those services that may be offered on a
33 competitive basis in a deregulated electric services
34 market, including services that could be packaged with
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1 the delivery of electric power and energy;
2 (6) services that an electric utility is required
3 to provide pursuant to tariffed rates;
4 (7) the components of a bill that could be received
5 by a customer taking delivery services;
6 (8) the complaint procedures set forth in Section
7 10-108 of this Act by which consumers may seek a redress
8 of grievances against an electric utility or an
9 alternative retail electric supplier and a list of phone
10 numbers of the Commission, the Attorney General or other
11 entities that can provide information and assistance to
12 customers; and
13 (9) additional information available from the
14 Commission upon request.
15 (f) Within 45 days following the submission required of
16 the working group by subsection (d) of this Section, the
17 Commission shall approve or disapprove the educational
18 materials and recommendations for program implementation.
19 The Commission shall be deemed to have approved the
20 educational program materials and recommendations unless the
21 Commission disapproves of any such material or recommendation
22 within 45 days following the date of receipt.
23 (g) Once approved by the Commission, materials
24 comprising the consumer education program contemplated by
25 this Section shall be distributed as follows:
26 (1) Electric utilities shall mail printed
27 educational materials specified by the working group and
28 approved by the Commission (a) to all residential and
29 small commercial retail customers within a reasonable
30 period prior to the date that such customers become
31 eligible to purchase power from alternative retail
32 electric suppliers, such "reasonable period" to be
33 determined by the Commission; and (b) once the applicable
34 customer class becomes eligible to receive delivery
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1 services, to all new residential and small commercial
2 retail customers at the time that such customers begin
3 taking services from the electric utility.
4 (2) Alternative retail electric suppliers shall
5 include such materials with all initial mailings to
6 potential residential and small commercial retail
7 customers but in all circumstances prior to the time by
8 which an alternative retail electric supplier executes
9 any agreements or contracts with such customers for the
10 supply of electric services.
11 (3) Both electric utilities and alternative retail
12 electric suppliers shall provide such materials at no
13 charge to residential and small commercial retail
14 customers upon request.
15 (4) The Commission shall make available upon
16 request and at no charge, and shall make available to the
17 public on the Internet through the State of Illinois
18 World Wide Web Site:
19 (A) all printed educational materials
20 developed by the working group and approved by the
21 Commission;
22 (B) a list of all certified alternative retail
23 electric suppliers serving residential and small
24 commercial retail customers within the service
25 territory of each electric utility;
26 (C) a list of alternative retail electric
27 suppliers serving residential or small commercial
28 retail customers which have been found in the last 3
29 years by the Commission pursuant to Section 10-108
30 to have failed to provide service in accordance with
31 the terms of their contracts with such retail
32 customers; and
33 (D) guidelines to assist customers in
34 determining which energy supplier is most
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1 appropriate for each customer.
2 (h) The Commission may also adopt a uniform disclosure
3 form which alternative retail electric suppliers would be
4 required to complete enabling consumers to compare prices,
5 terms and conditions offered by such suppliers.
6 (i) The Commission shall make available to the public
7 staff with the ability and knowledge to respond to consumer
8 inquiries.
9 (j) The costs of printing educational materials approved
10 by the Commission pursuant to this Section shall be payable
11 solely from funding as provided in this subsection.
12 Each year the General Assembly shall appropriate money to
13 the Commission from the General Revenue Fund for the expenses
14 of the Commission associated with this Section. The cost of
15 the consumer education program contemplated by this Section
16 shall not exceed the amount of such appropriation. In no
17 event shall any electric utility, alternative retail electric
18 supplier or customer be liable for the costs of printing
19 consumer education program material in accordance with this
20 Section. The obligations associated with this consumer
21 education program shall not exceed the amounts appropriated
22 for this program pursuant to this Section.
23 (k) The Commission shall study the effectiveness of the
24 consumer education program. Such study shall include a
25 notice and an opportunity for participation and comment by
26 all interested and potentially affected parties. Such study
27 shall be completed by January 31st of each year during the
28 mandatory transition period and a summary thereof, together
29 with any legislative recommendations, shall be included in
30 the Commission's Annual Report due in accordance with Section
31 4-304 of this Act.
32 (220 ILCS 5/16-118 new)
33 Sec. 16-118. Services provided by electric utilities to
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1 alternative retail electric suppliers.
2 (a) It is in the best interest of Illinois energy
3 consumers to promote fair and open competition in the
4 provision of electric power and energy and to prevent
5 anticompetitive practices in the provision of electric power
6 and energy. Therefore, to the extent an electric utility
7 provides electric power and energy or delivery services to
8 alternative retail electric suppliers and such services are
9 not subject to the jurisdiction of the Federal Energy
10 Regulatory Commission, and are not competitive services, they
11 shall be provided through tariffs that are filed with the
12 Commission, pursuant to Article IX of this Act. Each electric
13 utility shall permit alternative retail electric suppliers to
14 interconnect facilities to those owned by the utility
15 provided they meet established standards for such
16 interconnection, and may provide standby or other services to
17 alternative retail electric suppliers. The alternative retail
18 electric supplier shall sign a contract setting forth the
19 prices, terms and conditions for interconnection with the
20 electric utility and the prices, terms and conditions for
21 services provided by the electric utility to the alternative
22 retail electric supplier in connection with the delivery by
23 the electric utility of electric power and energy supplied by
24 the alternative retail electric supplier.
25 (b) An electric utility shall file a tariff pursuant to
26 Article IX of the Act that would allow alternative retail
27 electric suppliers or electric utilities other than the
28 electric utility in whose service area retail customers are
29 located to issue single bills to the retail customers for
30 both the services provided by such alternative retail
31 electric supplier or other electric utility and the delivery
32 services provided by the electric utility to such customers.
33 The tariff filed pursuant to this subsection shall (i)
34 require partial payments made by retail customers to be
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1 credited first to the electric utility's tariffed services,
2 (ii) impose commercially reasonable terms with respect to
3 credit and collection, including requests for deposits, (iii)
4 retain the electric utility's right to disconnect the retail
5 customers, if it does not receive payment for its tariffed
6 services, in the same manner that it would be permitted to if
7 it had billed for the services itself, and (iv) require the
8 alternative retail electric supplier or other electric
9 utility that elects the billing option provided by this
10 tariff to include on each bill to retail customers an
11 identification of the electric utility providing the delivery
12 services and a listing of the charges applicable to such
13 services. The tariff filed pursuant to this subsection may
14 also include other just and reasonable terms and conditions.
15 In addition, an electric utility, an alternative retail
16 electric supplier or electric utility other than the electric
17 utility in whose service area the customer is located, and a
18 customer served by such alternative retail electric supplier
19 or other electric utility, may enter into an agreement
20 pursuant to which the alternative retail electric supplier
21 or other electric utility pays the charges specified in
22 Section 16-108, or other customer-related charges, including
23 taxes and fees, in lieu of such charges being recovered by
24 the electric utility directly from the customer.
25 (220 ILCS 5/16-119 new)
26 Sec. 16-119. Switching suppliers. An electric utility or
27 an alternative retail electric supplier may establish a term
28 of service, notice period for terminating service and
29 provisions governing early termination through a tariff or
30 contract. A customer may change its supplier subject to
31 tariff or contract terms and conditions. Any notice
32 provisions; or provision for a fee, charge or penalty with
33 early termination of a contract; shall be conspicuously
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1 disclosed in any tariff or contract. A customer shall remain
2 responsible for any unpaid charges owed to an electric
3 utility or alternative retail electric supplier at the time
4 it switches to another provider.
5 (220 ILCS 5/16-119A new)
6 Sec. 16-119A. Functional separation.
7 (a) Within 90 days after the effective date of this
8 amendatory Act of 1997, the Commission shall open a
9 rulemaking proceeding to establish standards of conduct for
10 every electric utility described in subsection (b). To
11 create efficient competition between suppliers of generating
12 services and sellers of such services at retail and
13 wholesale, the rules shall allow all customers of a public
14 utility that distributes electric power and energy to
15 purchase electric power and energy from the supplier of their
16 choice in accordance with the provisions of Section 16-104.
17 In addition, the rules shall address relations between
18 providers of any 2 services described in subsection (b) to
19 prevent undue discrimination and promote efficient
20 competition. Provided, however, that a proposed rule shall
21 not be published prior to May 15, 1999.
22 (b) The Commission shall also have the authority to
23 investigate the need for, and adopt rules requiring,
24 functional separation between the generation services and the
25 delivery services of those electric utilities whose principal
26 service area is in Illinois as necessary to meet the
27 objective of creating efficient competition between suppliers
28 of generating services and sellers of such services at retail
29 and wholesale. After January 1, 2003, the Commission shall
30 also have the authority to investigate the need for, and
31 adopt rules requiring, functional separation between an
32 electric utility's competitive and non-competitive services.
33 (c) In establishing or considering the need for rules
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1 under subsections (a) and (b), the Commission shall take into
2 account the effects on the cost and reliability of service
3 and the obligation of the utility to provide bundled service
4 under this Act. The Commission shall adopt rules that are a
5 cost effective means to ensure compliance with this Section.
6 (d) Nothing in this Section shall be construed as
7 imposing any requirements or obligations that are in conflict
8 with federal law.
9 (220 ILCS 5/16-120 new)
10 Sec. 16-120. Development of competitive market;
11 Commission study and reports; investigation.
12 (a) On or before December 31, 1999 and once every 3 years
13 thereafter, the Commission shall monitor and analyze patterns
14 of entry and exit, applications for entry and exit, and any
15 barriers to entry or participation that may exist, for
16 services provided under this Article; shall analyze any
17 impediments to the establishment of a fully competitive
18 energy and power market in Illinois; and shall include its
19 findings together with appropriate recommendations for
20 legislative action in a report to the General Assembly.
21 (b) Beginning in 2001, and ending in 2006, the
22 Commission shall prepare an annual report regarding the
23 development of electricity markets in Illinois which shall be
24 filed by April 1 of each year with the Joint Committee on
25 Legislative Support Services of the General Assembly and the
26 Governor and which shall be publicly available. Such report
27 shall include, at a minimum, the following information:
28 (1) the aggregate annual peak demand of retail
29 customers in the State of Illinois in the preceding calendar
30 year;
31 (2) the total annual kilowatt-hours delivered and
32 sold to retail customers in the State of Illinois by each
33 electric utility within its own service territory, each
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1 electric utility outside its service territory, and
2 alternative retail electric suppliers in the preceding
3 calendar year;
4 (3) the percentage of the total kilowatt-hours
5 delivered and sold to retail customers in the State of
6 Illinois in the preceding calendar year by each electric
7 utility within its service territory, each electric utility
8 outside its service territory, and each alternative retail
9 electric supplier; and
10 (4) any other information the Commission considers
11 significant in assessing the development of Illinois
12 electricity markets, which may include, to the extent
13 available, information similar to that described in items 1,
14 2 and 3 with respect to cogeneration, self-generation and
15 other sources of electric power and energy provided to
16 customers that do not take delivery services or bundled
17 electric utility services.
18 The Commission may also include such other information as
19 it deems to be necessary or beneficial in describing or
20 explaining the results of its Report. The Report required by
21 this Section shall be adopted by a vote of the full
22 Commission prior to filing. Proprietary or confidential
23 information shall not be disclosed publicly. Nothing
24 contained in this Section shall prohibit the Commission from
25 taking actions that would otherwise be allowed under this
26 Act.
27 (220 ILCS 5/16-121 new)
28 Sec. 16-121. Non-discrimination; adoption of rules and
29 regulations. The Commission shall adopt rules and regulations
30 no later than 180 days after the effective date of this
31 amendatory Act of 1997 governing the relationship between the
32 electric utility and its affiliates, and ensuring
33 non-discrimination in services provided to the utility's
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1 affiliate and any alternative retail electric supplier,
2 including without limitation, cost allocation,
3 cross-subsidization and information sharing.
4 (220 ILCS 5/16-122 new)
5 Sec. 16-122. Customer information.
6 (a) Upon the request of a retail customer, or a person
7 who presents verifiable authorization and is acting as the
8 customer's agent, and payment of a reasonable fee, electric
9 utilities shall provide to the customer or its authorized
10 agent the customer's billing and usage data.
11 (b) Upon request from any alternative retail electric
12 supplier and payment of a reasonable fee, an electric utility
13 serving retail customers in its service area shall make
14 available generic information concerning the usage, load
15 shape curve or other general characteristics of customers by
16 rate classification. Provided however, no customer specific
17 billing, usage or load shape data shall be provided under
18 this subsection unless authorization to provide such
19 information is provided by the customer pursuant to
20 subsection (a) of this Section.
21 (c) All such customer information shall be made
22 available in a timely fashion in an electronic format, if
23 available.
24 (220 ILCS 5/16-123 new)
25 Sec. 16-123. Establishment of customer information
26 centers for electric utilities and alternative retail
27 electric suppliers. All electric utilities and alternative
28 retail electric suppliers shall be required to maintain a
29 customer call center where customers can reach a
30 representative and receive current information. Customers
31 shall periodically be notified on how to reach the call
32 center. The Commission shall have the authority to establish
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1 reporting requirements for such centers.
2 (220 ILCS 5/16-124 new)
3 Sec. 16-124. Metering for residential and small
4 commercial retail customers. An electric utility shall not
5 require a residential or small commercial retail customer to
6 take additional metering or metering capability as a
7 condition of taking delivery services unless the Commission
8 finds, after notice and hearing, that additional metering or
9 metering capability is required to meet reliability
10 requirements. Alternative retail electric suppliers serving
11 such customers may provide such additional metering or
12 metering capability at their own expense or take such
13 additional metering or metering capability from the utility
14 as a tariffed service. Any additional metering requirements
15 shall be imposed in a nondiscriminatory manner. Nothing in
16 this subsection shall be construed to prevent the normal
17 maintenance, replacement or upgrade of meters as required to
18 comply with Commission rules.
19 (220 ILCS 5/16-125 new)
20 Sec. 16-125. Transmission and distribution reliability
21 requirements.
22 (a) To assure the reliable delivery of electricity to
23 all customers in this State and the effective implementation
24 of the provisions of this Article, the Commission shall,
25 within 180 days of the effective date of this Article, adopt
26 rules and regulations for assessing and assuring the
27 reliability of the transmission and distribution systems and
28 facilities that are under the Commission's jurisdiction.
29 (b) These rules and regulations shall require each
30 electric utility or alternative retail electric supplier
31 owning, controlling, or operating transmission and
32 distribution facilities and equipment subject to the
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1 Commission's jurisdiction, referred to in this Section as
2 "jurisdictional entities", to adopt and implement procedures
3 for restoring transmission and distribution services to
4 customers after transmission or distribution outages on a
5 non-discriminatory basis without regard to whether a customer
6 has chosen the electric utility, an affiliate of the electric
7 utility, or another entity as its provider of electric power
8 and energy. These rules and regulations shall also, at a
9 minimum, specifically require each jurisdictional entity to
10 submit annually to the Commission.
11 (1) the number and duration of planned and
12 unplanned outages during the prior year and their impacts
13 on customers;
14 (2) outages that were controllable and outages that
15 were exacerbated in scope or duration by the condition of
16 facilities, equipment or premises or by the actions or
17 inactions of operating personnel or agents;
18 (3) customer service interruptions that were due
19 solely to the actions or inactions of an alternative
20 retail electric supplier or a public utility in supplying
21 power or energy;
22 (4) a detailed report of the age, current
23 condition, reliability and performance of the
24 jurisdictional entity's existing transmission and
25 distribution facilities, which shall include, without
26 limitation, the following data:
27 (i) a summary of the jurisdictional entity's
28 outages and voltage variances reportable under the
29 Commission's rules;
30 (ii) the jurisdictional entity's expenditures
31 for transmission construction and maintenance, the
32 ratio of those expenditures to the jurisdictional
33 entity's transmission investment, and the average
34 remaining depreciation lives of the entity's
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1 transmission facilities, expressed as a percentage
2 of total depreciation lives;
3 (iii) the jurisdictional entity's expenditures
4 for distribution construction and maintenance, the
5 ratio of those expenditures to the jurisdictional
6 entity's distribution investment, and the average
7 remaining depreciation lives of the entity's
8 distribution facilities, expressed as a percentage
9 of total depreciation lives;
10 (iv) a customer satisfaction survey covering,
11 among other areas identified in Commission rules,
12 reliability, customer service, and understandability
13 of the jurisdictional entity's services and prices;
14 and
15 (v) the corresponding information, in the same
16 format, for the previous 3 years, if available;
17 (5) a plan for future investment and reliability
18 improvements for the jurisdictional entity's transmission
19 and distribution facilities that will ensure continued
20 reliable delivery of energy to customers and provide the
21 delivery reliability needed for fair and open
22 competition; and
23 (6) a report of the jurisdictional entity's
24 implementation of its plan filed pursuant to subparagraph
25 (5) for the previous reporting period.
26 (c) The Commission rules shall set forth the criteria
27 that will be used to assess each jurisdictional entity's
28 annual report and evaluate its reliability performance. Such
29 criteria must take into account, at a minimum: the items
30 required to be reported in subsection (b); the relevant
31 characteristics of the area served; the age and condition of
32 the system's equipment and facilities; good engineering
33 practices; the costs of potential actions; and the benefits
34 of avoiding the risks of service disruption.
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1 (d) At least every 3 years, beginning in the year the
2 Commission issues the rules required by subsection (a) or the
3 following year if the rules are issued after June 1, the
4 Commission shall assess the annual report of each
5 jurisdictional entity and evaluate its reliability
6 performance. The Commission's evaluation shall include
7 specific identification of, and recommendations concerning,
8 any potential reliability problems that it has identified as
9 a result of its evaluation.
10 (e) In the event that more than 30,000 customers of an
11 electric utility are subjected to a continuous power
12 interruption of 4 hours or more that results in the
13 transmission of power at less than 50% of the standard
14 voltage, or that results in the total loss of power
15 transmission, the utility shall be responsible for
16 compensating customers affected by that interruption for 4
17 hours or more for all actual damages, which shall not
18 include consequential damages, suffered as a result of the
19 power interruption. The utility shall also reimburse the
20 affected municipality, county, or other unit of local
21 government in which the power interruption has taken place
22 for all emergency and contingency expenses incurred by the
23 unit of local government as a result of the interruption. A
24 waiver of the requirements of this subsection may be granted
25 by the Commission in instances in which the utility can show
26 that the power interruption was a result of any one or more
27 of the following causes:
28 (1) Unpreventable damage due to weather events or
29 conditions.
30 (2) Customer tampering.
31 (3) Unpreventable damage due to civil or
32 international unrest or animals.
33 (4) Damage to utility equipment or other actions by
34 a party other than the utility, its employees, agents,
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1 or contractors.
2 Loss of revenue and expenses incurred in complying with this
3 subsection may not be recovered from ratepayers.
4 (f) In the event of a power surge or other fluctuation
5 that causes damage and affects more than 30,000 customers,
6 the electric utility shall pay to affected customers the
7 replacement value of all goods damaged as a result of the
8 power surge or other fluctuation unless the utility can show
9 that the power surge or other fluctuation was due to one or
10 more of the following causes:
11 (1) Unpreventable damage due to weather events or
12 conditions.
13 (2) Customer tampering.
14 (3) Unpreventable damage due to civil or
15 international unrest or animals.
16 (4) Damage to utility equipment or other actions by
17 a party other than the utility, its employees, agents,
18 or contractors.
19 Loss of revenue and expenses incurred in complying with this
20 subsection may not be recovered from ratepayers. Customers
21 with respect to whom a waiver has been granted by the
22 Commission pursuant to subparagraphs (1)-(4) of subsections
23 (e) and (f) shall not count toward the 30,000 customers
24 required therein.
25 (g) Whenever an electric utility must perform planned
26 or routine maintenance or repairs on its equipment that will
27 result in transmission of power at less than 50% of the
28 standard voltage, loss of power, or power fluctuation (as
29 defined in subsection (f)), the utility shall make
30 reasonable efforts to notify potentially affected customers
31 no less than 24 hours in advance of performance of the
32 repairs or maintenance.
33 (h) Remedies provided for under this Section may be
34 sought exclusively through the Illinois Commerce Commission
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1 as provided under Section 10-109 of this Act. Damages
2 awarded under this Section for a power interruption shall be
3 limited to actual damages, which shall not include
4 consequential damages, and litigation costs. Damage awards
5 may not be paid out of utility rate funds.
6 (i) The provisions of this Section shall not in any way
7 diminish or replace other civil or administrative remedies
8 available to a customer or a class of customers.
9 (j) The Commission shall by rule require an electric
10 utility to maintain service records detailing information on
11 each instance of transmission of power at less than 50% of
12 the standard voltage, loss of power, or power fluctuation
13 (as defined in subsection (f)), that affects 10 or more
14 customers. Occurrences that are momentary shall not be
15 required to be recorded or reported. The service record
16 shall include, for each occurrence, the following
17 information:
18 (1) The date.
19 (2) The time of occurrence.
20 (3) The duration of the incident.
21 (4) The number of customers affected.
22 (5) A description of the cause.
23 (6) The geographic area affected.
24 (7) The specific equipment involved in the
25 fluctuation or interruption.
26 (8) A description of measures taken to restore
27 service.
28 (9) A description of measures taken to remedy the
29 cause of the power interruption or fluctuation.
30 (10) A description of measures taken to prevent
31 future occurrence.
32 (11) The amount of remuneration, if any, paid to
33 affected customers.
34 (12) A statement of whether the fixed charge was
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1 waived for affected customers.
2 Copies of the records containing this information shall
3 be available for public inspection at the utility's offices,
4 and copies thereof may be obtained upon payment of a fee not
5 exceeding the reasonable cost of reproduction. A copy of
6 each record shall be filed with the Commission and shall be
7 available for public inspection. Copies of the records may
8 be obtained upon payment of a fee not exceeding the
9 reasonable cost of reproduction.
10 (k) The requirements of subsections (e) through (j) of
11 this Section shall apply only to an electric public utility
12 having 1,000,000 or more customers.
13 (220 ILCS 5/16-125A new)
14 Sec. 16-125A. Consolidated billing provision for
15 established intergovernmental agreement participants.
16 (a) The tariffs of each electric utility serving at
17 least 1,000,000 customers shall permit governmental
18 customers acting through an intergovernmental agreement that
19 was in effect 30 days prior to the date specified in
20 subsection (b) and which provides for these governmental
21 customers to work cooperatively in the purchase of electric
22 energy to aggregate their monthly kilowatt-hour energy usage
23 and monthly kilowatt billing demand.
24 (b) In implementing the provisions of this Section, the
25 rates and charges applicable under the combined billing
26 tariff of the serving utility in effect on May 1, 1997 shall
27 apply to all load of eligible government customers selected
28 by the governmental customers including, but not limited to,
29 load served under contract.
30 (c) For purposes of this Section, "governmental
31 customers" shall mean any customer that is a municipality,
32 municipal corporation, unit of local government, park
33 district, school district, community college district,
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1 forest preserve district, special district, public
2 corporation, body politic and corporate, sanitary or water
3 reclamation district, or other local government agencies,
4 including any entity created by intergovernmental agreement
5 among any of the foregoing entities to implement the
6 arrangements permitted by subsections (a) and (b) of this
7 Section.
8 (d) Electric utilities shall file tariffs that comply
9 with the requirements of this Section within 60 days after
10 the effective date of this amendatory Act of 1997.
11 (220 ILCS 5/16-126 new)
12 Sec. 16-126. Membership in an independent system
13 operator.
14 (a) The General Assembly finds that the establishment of
15 one or more independent system operators or their functional
16 equivalents is required to facilitate the development of an
17 open and efficient marketplace for electric power and energy
18 to the benefit of Illinois consumers. Therefore, each
19 Illinois electric utility owning or controlling transmission
20 facilities or providing transmission services in Illinois and
21 that is a member of the Mid-American Interconnected Network
22 as of the effective date of this amendatory Act of 1997 shall
23 submit for approval to the Federal Energy Regulatory
24 Commission an application for establishing or joining an
25 independent system operator that shall:
26 (1) independently manage and control transmission
27 facilities of any electric utility;
28 (2) provide for nondiscriminatory access to and use
29 of the transmission system for buyers and sellers of
30 electricity;
31 (3) direct the transmission activities of the
32 control area operators;
33 (4) coordinate, plan, and order the installation of
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1 new transmission facilities;
2 (5) adopt inspection, maintenance, repair, and
3 replacement standards for the transmission facilities
4 under its control and direct maintenance, repair, and
5 replacement of all facilities under its control; and
6 (6) implement procedures and act to assure the
7 provision of adequate and reliable service.
8 These standards shall be consistent with reliability
9 criteria no less stringent than those established by the
10 Mid-American Interconnected Network and the North American
11 Electric Reliability Council or their successors.
12 (b) The requirements of this Section may be met by
13 joining or establishing a regional independent system
14 operator that meets the criteria enumerated in subsections
15 (a), (c), and (d) of this Section, as determined by the
16 Commission. To achieve the objectives set forth in subsection
17 (a), the State of Illinois, through the appropriate officers,
18 departments, and agencies, shall work cooperatively with the
19 appropriate officials and agencies of those States contiguous
20 to this State and the Federal Energy Regulatory Commission
21 towards the formation of one or more regional independent
22 system operators.
23 (c) The independent system operator's governance
24 structure must be fair and non-discriminatory, and the
25 independent system operator must be independent of any one
26 market participant or class of participants. The independent
27 system operator's rules of governance must prevent control,
28 or the appearance of control, of decision-making by any class
29 of participants.
30 (d) Participants in the independent system operator
31 shall make available to the independent system operator all
32 information required by the independent system operator in
33 performance of its functions described herein. The
34 independent system operator and the electric utilities
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1 participating in the independent system operator shall make
2 all filings required by the Federal Energy Regulatory
3 Commission. The independent system operator shall ensure that
4 additional filings at the Federal Energy Regulatory
5 Commission request confirmation of the relevant provisions of
6 this amendatory Act of 1997.
7 (e) If a spot market, exchange market, or other
8 market-based mechanism providing transparent real-time market
9 prices for electric power has not been developed, the
10 independent system operator or a closely cooperating agent of
11 the independent system operator may provide an efficient
12 competitive power exchange auction for electric power and
13 energy, open on a nondiscriminatory basis to all suppliers,
14 which meets the loads of all auction customers at efficient
15 prices.
16 (f) For those electric utilities referred to in
17 subsection (a) which have not filed with the Federal Energy
18 Regulatory Commission by June 30, 1998 an application for
19 establishment or participation in an independent system
20 operator or if such application has not been approved by the
21 Federal Energy Regulatory Commission by March 31, 1999, a 5
22 member Oversight Board shall be formed. The Oversight Board
23 shall (1) oversee the creation of an Illinois independent
24 system operator and (2) determine the composition and initial
25 terms of service of, and appoint the initial members of, the
26 Illinois independent system operator board of directors. The
27 Oversight Board shall consist of the following: (1) 3 persons
28 appointed by the Governor; (2) one person appointed by the
29 Speaker of the House of Representatives; and (3) one person
30 appointed by the President of the Senate. The Oversight Board
31 shall take the steps that are necessary to ensure the
32 earliest possible incorporation of an Illinois independent
33 system operator under the Business Corporation Act of 1983,
34 and shall serve until the Illinois independent system
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1 operator is incorporated.
2 (g) After notice and hearing, the Commission shall
3 require each electric utility referred to in subsection (a),
4 that is not participating in an independent system operator
5 meeting the requirements of subsections (a) and (c), to seek
6 authority from the Federal Energy Regulatory Commission to
7 transfer functional control of transmission facilities to the
8 Illinois independent system operator for control by the
9 Illinois independent system operator consistent with the
10 requirements of subsection (a). Upon approval by the Federal
11 Energy Regulatory Commission, electric utilities may also
12 elect to transfer ownership of transmission facilities to the
13 Illinois independent system operator. Nothing in this Act
14 shall be deemed to preclude the Illinois independent system
15 operator from (1) seeking authority, as necessary, to merge
16 with or otherwise combine its operations with those of one or
17 more other entities authorized to provide transmission
18 services, (2) purchasing or leasing transmission assets from
19 transmission-owning entities not required by this Section to
20 lease transmission facilities to the Illinois independent
21 system operator, or (3) operating as a transmission public
22 utility under the Federal Power Act.
23 (h) Any other owner of transmission facilities in
24 Illinois not required by this Section to participate in an
25 independent system operator shall be permitted, but not
26 required, to become a member of the Illinois independent
27 system operator.
28 (i) The Illinois independent system operator created
29 under this Section, and any other independent system operator
30 authorized by the Federal Energy Regulatory Commission to
31 provide transmission services as a public utility under the
32 Federal Power Act within the State of Illinois, shall be
33 deemed to be a public utility for purposes of Section 8-503
34 and 8-509 of this Act.
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1 (j) Electric utilities referred to in subsection (a) may
2 withdraw from the Illinois independent system operator upon
3 becoming a member of an independent system operator or
4 operators conforming with the criteria in subsections (a) and
5 (c) and whose formation and operation has been approved by
6 the Federal Energy Regulatory Commission. This subsection
7 does not relieve any electric utility of any obligations
8 under Federal law.
9 (k) Nothing in this Section shall be construed as
10 imposing any requirements or obligations that are in conflict
11 with federal law.
12 (220 ILCS 5/16-127 new)
13 Sec. 16-127. Environmental disclosure.
14 (a) Effective January 1, 1999, every electric utility
15 and alternative retail electric supplier shall provide the
16 following information, to the maximum extent practicable,
17 with its bills to its customers on a quarterly basis:
18 (i) the known sources of electricity supplied,
19 broken-out by percentages, of biomass power, coal-fired
20 power, hydro power, natural gas-fired power, nuclear
21 power, oil-fired power, solar power, wind power and other
22 resources, respectively; and
23 (ii) a pie-chart which graphically depicts the
24 percentages of the sources of the electricity supplied as
25 set forth in subparagraph (i) of this subsection.
26 (b) In addition, every electric utility and alternative
27 retail electric supplier shall provide, to the maximum extent
28 practicable, with its bills to its customers on a quarterly
29 basis, a standardized chart in a format to be determined by
30 the Commission in a rule following notice and hearings which
31 provides the amounts of carbon dioxide, nitrous oxides and
32 sulfur dioxide emissions and nuclear waste attributable to
33 the known sources of electricity supplied as set forth in
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1 subparagraph (i) of subsection (a) of this Section.
2 (c) The electric utilities and alternative retail
3 electric suppliers may provide their customers with such
4 other information as they believe relevant to the information
5 required in subsections (a) and (b) of this Section.
6 (d) For the purposes of subsection (a) of this Section,
7 "biomass" means dedicated crops grown for energy production
8 and organic wastes.
9 (e) All of the information provided in subsections (a)
10 and (b) of this Section shall be presented to the Commission
11 for inclusion in its World Wide Web Site.
12 (220 ILCS 5/16-128 new)
13 Sec. 16-128. Provisions related to utility employees
14 during the mandatory transition period.
15 (a) The General Assembly finds:
16 (1) The reliability and safety of the electric
17 system has depended on a workforce of skilled and
18 dedicated employees, equipped with technical training and
19 experience.
20 (2) The integrity and reliability of the system has
21 also depended on the industry's commitment to invest in
22 regular inspection and maintenance, to assure that it can
23 withstand the demands of heavy service requirements and
24 emergency situations.
25 (3) It is in the State's interest to protect the
26 interests of utility employees who have dedicated
27 themselves to assuring reliable service to the citizens
28 of this State, and who might otherwise be economically
29 displaced in a restructured industry.
30 The General Assembly further finds that it is necessary
31 to assure that employees operating in the deregulated
32 industry have the requisite skills, knowledge, and competence
33 to provide reliable and safe electrical service and therefore
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1 that alternative retail electric suppliers shall be required
2 to demonstrate the competence of their employees to work in
3 the industry.
4 The knowledge, skill, and competence levels to be
5 demonstrated shall be consistent with those generally
6 required of or by the electric utilities in this State with
7 respect to their employees.
8 Adequate demonstration of requisite knowledge, skill and
9 competence, shall include such factors as completion by the
10 employee of an accredited or otherwise recognized
11 apprenticeship program for the particular craft, trade or
12 skill, or specified years of employment with an electric
13 utility performing a particular work function.
14 To implement this requirement, the Commission, in
15 determining that an applicant meets the standards for
16 certification as an alternative retail electric supplier,
17 shall require the applicant to demonstrate (i) that the
18 applicant is licensed to do business, and bonded, in the
19 State of Illinois; and (ii) that the employees of the
20 applicant that will be installing, operating, and maintaining
21 generation, transmission, or distribution facilities within
22 this State, or any entity with which the applicant has
23 contracted to perform those functions within this State, have
24 the requisite knowledge, skills, and competence to perform
25 those functions in a safe and responsible manner in order to
26 provide safe and reliable service, in accordance with the
27 criteria stated above.
28 (b) The General Assembly finds, based on experience in
29 other industries that have undergone similar transitions,
30 that the introduction of competition into the State's
31 electric utility industry may result in workforce reductions
32 by electric utilities which may adversely affect persons who
33 have been employed by this State's electric utilities in
34 functions important to the public convenience and welfare.
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1 The General Assembly further finds that the impacts on
2 employees and their communities of any necessary reductions
3 in the utility workforce directly caused by this
4 restructuring of the electric industry shall be mitigated to
5 the extent practicable through such means as offers of
6 voluntary severance, retraining, early retirement,
7 outplacement and related benefits. Therefore, before any such
8 reduction in the workforce during the transition period, an
9 electric utility shall present to its employees or their
10 representatives a workforce reduction plan outlining the
11 means by which the electric utility intends to mitigate the
12 impact of such workforce reduction on its employees.
13 (c) In the event of a sale, purchase, or any other
14 transfer of ownership during the mandatory transition period
15 of one or more Illinois divisions or business units, and/or
16 generating stations or generating units, of an electric
17 utility, the electric utility's contract and/or agreements
18 with the acquiring entity or persons shall require that the
19 entity or persons hire a sufficient number of non-supervisory
20 employees to operate and maintain the station, division or
21 unit by initially making offers of employment to the
22 non-supervisory workforce of the electric utility's division,
23 business unit, generating station and/or generating unit at
24 no less than the wage rates, and substantially equivalent
25 fringe benefits and terms and conditions of employment that
26 are in effect at the time of transfer of ownership of said
27 division, business unit, generating station, and/or
28 generating units; and said wage rates and substantially
29 equivalent fringe benefits and terms and conditions of
30 employment shall continue for at least 30 months from the
31 time of said transfer of ownership unless the parties
32 mutually agree to different terms and conditions of
33 employment within that 30-month period. The utility shall
34 offer a transition plan to those employees who are not
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1 offered jobs by the acquiring entity because that entity has
2 a need for fewer workers. If there is litigation concerning
3 the sale, or other transfer of ownership of the electric
4 utility's divisions, business units, generating station, or
5 generating units, the 30-month period will begin on the date
6 the acquiring entity or persons take control or management of
7 the divisions, business units, generating station or
8 generating units of the electric utility.
9 (d) If a utility transfers ownership during the
10 mandatory transition period of one or more Illinois
11 divisions, business units, generating stations or generating
12 units of an electric utility to a majority-owned subsidiary,
13 that subsidiary shall continue to employ the utility's
14 employees who were employed by the utility at such division,
15 business unit or generating station at the time of the
16 transfer under the same terms and conditions of employment as
17 those employees enjoyed at the time of the transfer. If
18 ownership of the subsidiary is subsequently sold or
19 transferred to a third party during the transition period,
20 the transition provisions outlined in subsection (c) shall
21 apply.
22 (e) The plant transfer provisions set forth above shall
23 not apply to any generating station which was the subject of
24 a sales agreement entered into before January 1, 1997.
25 (220 ILCS 5/16-129 new)
26 Sec. 16-129. Existing contracts not affected. Nothing
27 in this Article XVI shall affect the right of an electric
28 utility to continue to provide, or the right of the customer
29 to continue to receive, service pursuant to a contract for
30 electric service between the electric utility and the
31 customer, in accordance with the prices, terms and
32 conditions provided for in that contract. Either the
33 electric utility or the customer may require compliance with
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1 the prices, terms and conditions of such contract.
2 (220 ILCS 5/16-130 new)
3 Sec. 16-130. Annual Reports. The General Assembly finds
4 that it is necessary to have reliable and accurate
5 information regarding the transition to a competitive
6 electric industry. In addition to the annual report
7 requirements pursuant to Section 5-109 of this Act, each
8 electric utility shall file with the Commission a report on
9 the following topics in accordance with the schedule set
10 forth in subsection (b) of this Section:
11 (1) Data on each customer class of the electric
12 utility in which delivery services have been elected
13 including:
14 (A) number of retail customers in each class
15 that have elected delivery service;
16 (B) kilowatt hours consumed by the customers
17 described in subparagraph (A);
18 (C) revenue loss experienced by the utility as
19 a result of customers electing delivery services or
20 market-based prices as compared to continued service
21 under otherwise applicable tariffed rates;
22 (D) total amount of funds collected from each
23 customer class pursuant to the transition charges
24 authorized in Section 16-108;
25 (E) Such other information as the Commission
26 may by rule require.
27 (2) A description of any steps taken by the
28 electric utility to mitigate and reduce its costs,
29 including both a detailed description of steps taken
30 during the preceding calendar year and a summary of steps
31 taken since the effective date of this amendatory Act of
32 1997, and including, to the extent practicable,
33 quantification of the costs mitigated or reduced by
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1 specific actions taken by the electric utility.
2 (3) A description of actions taken under Sections
3 5-104, 7-204, 9-220, and 16-111 of this Act. This
4 information shall include but not be limited to:
5 (A) a description of the actions taken;
6 (B) the effective date of the action;
7 (C) the annual savings or additional charges
8 realized by customers from actions taken, by
9 customer class and total for each year;
10 (D) the accumulated impact on customers by
11 customer class and total; and
12 (E) a summary of the method used to quantify
13 the impact on customers.
14 (4) A summary of the electric utility's use of
15 transitional funding instruments, including a description
16 of the electric utility's use of the proceeds of any
17 transitional funding instruments it has issued in
18 accordance with Article XVIII of this Act.
19 (5) Kilowatt-hours consumed in the twelve months
20 ending December 31, 1996 (which kilowatt-hours are hereby
21 referred to as "base year sales") by customer class
22 multiplied by the revenue per kilowatt hour, adjusted to
23 remove charges added to customers bills pursuant to
24 Sections 9-221 and 9-222 of this Act, during the twelve
25 months ending December 31, 1996, adjusted for the
26 reductions required by subsection (b) of Section 16-111
27 and the mitigation factors contained in Section 16-102.
28 This amount shall be stated for: (i) each calendar year
29 preceding the year in which a report is required to be
30 submitted pursuant to subsection (b); and (ii) as a
31 cumulative total of all calendar years beginning with
32 1998 and ending with the calendar year preceding the year
33 in which a report is required to be submitted pursuant to
34 subsection (b).
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1 (6) Calculations identical to those required by
2 subparagraph (5) except that base year sales shall be
3 adjusted for growth in the electric utility's service
4 territory, in addition to the other adjustments specified
5 by the first sentence of sub-paragraph (5).
6 (7) the electric utility's total revenue and net
7 income for each calendar year beginning with 1997 through
8 the calendar year preceding the year in which a report is
9 required to be submitted pursuant to subsection (b) as
10 reported in the electric utility's Form 1 report to the
11 Federal Energy Regulatory Commission.
12 (8) any consideration in excess of the net book
13 cost as of the effective date of this amendatory Act of
14 1997 received by the electric utility during the year
15 from a sale made subsequent to the effective date of this
16 amendatory Act of 1997 to a non-affiliated third party of
17 any generating plant that was owned by the electric
18 utility on the effective date of this amendatory Act of
19 1997.
20 (9) any consideration received by the electric
21 utility from sales or transfers during the year to an
22 affiliated interest of generating plant, or other plant
23 that represents an investment of $25,000,000 or more in
24 terms of total depreciated original cost, which
25 generating or other plant were owned by the electric
26 utility prior to the effective date of this amendatory
27 Act of 1997.
28 (10) any consideration received by an affiliated
29 interest of an electric utility from sales or transfers
30 during the year to a non-affiliated third party of
31 generating plant, but only if: (i) the electric utility
32 had previously sold or transferred such plant to the
33 affiliated interest subsequent to the effective date of
34 this amendatory Act of 1997; (ii) the affiliated interest
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1 sells or transfers such plant to a non-affiliated third
2 party prior to December 31, 2006; and (iii) the
3 affiliated interest receives consideration for the sale
4 or transfer of such plant to the non-affiliated third
5 party in an amount greater than the cost or price at
6 which such plant was sold or transferred to the
7 affiliated interest by the electric utility.
8 (b) The information required by subsection (a) shall
9 be filed by each electric utility on or before March 1 of
10 each year 1999 through 2007 or through such additional years
11 as the electric utility is collecting transition charges
12 pursuant to subsection (f) of Section 16-108, for the
13 previous calendar year. The information required by
14 subparagraph (6) of subsection (a) for calendar year 1997
15 shall be submitted by the electric utility on or before March
16 1, 1999.
17 (c) On or before May 15 of each year 1999 through
18 2006 or through such additional years as the electric utility
19 is collecting transition charges pursuant to subsection (f)
20 of Section 16-108, the Commission shall submit a report to
21 the General Assembly which summarizes the information
22 provided by each electric utility under this Section;
23 provided, however, that proprietary or confidential
24 information shall not be publicly disclosed.
25 (220 ILCS 5/Art. XVII heading new)
26 ARTICLE XVII. ELECTRIC COOPERATIVES AND MUNICIPAL
27 SYSTEMS
28 (220 ILCS 5/17-100 new)
29 Sec. 17-100. Exemption from provisions of this
30 amendatory Act of 1997. Electric cooperatives, as defined in
31 Section 3.4 of the Electric Supplier Act, and public
32 utilities that are owned and operated by any political
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1 subdivision, or municipal corporation of this State, or owned
2 by such an entity and operated by any lessee or any operating
3 agent thereof, hereinafter referred to as municipal systems,
4 shall not be subject to the provisions of this amendatory Act
5 of 1997, except as hereinafter provided in this Article XVII.
6 (220 ILCS 5/17-200 new)
7 Sec. 17-200. Election to provide existing or future
8 customers access to alternative retail electric suppliers.
9 (a) An electric cooperative or municipal system each
10 may, by appropriate action and at the sole discretion of the
11 governing body of each, from time to time make one or more
12 elections to cause one or more of the existing or future
13 customers of each respective system to be eligible to take
14 service from an alternative retail electric supplier for a
15 specified period of time. Provided that, and subject to
16 their authority to serve customers pursuant to the Electric
17 Supplier Act with respect to electric cooperatives and
18 pursuant to the Illinois Municipal Code with respect to
19 municipal systems, each shall continue to provide exclusive
20 distribution facilities for any existing and future customers
21 that the electric cooperative or municipal system are now or
22 in the future otherwise entitled to serve and which customers
23 are now or in the future receiving service provided by an
24 alternative retail electric supplier.
25 (b) Notification of election to provide existing or
26 future customers access to alternative retail electric
27 suppliers. The election by an electric cooperative or
28 municipal system authorizing access to alternative retail
29 electric suppliers for existing or future customers shall be
30 made by filing notice thereof with the Commission and shall
31 be made effective only by such filing.
32 (220 ILCS 5/17-300 new)
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1 Sec. 17-300. Election to be an alternative retail
2 electric supplier.
3 (a) An electric cooperative or municipal system may, by
4 appropriate action, and at the sole discretion of the
5 governing body of each, make an election to become an
6 alternative retail electric supplier.
7 (b) Commission authority over an electric cooperative or
8 municipal system electing to be an alternative retail
9 electric supplier. An electric cooperative or municipal
10 system electing to be an alternative retail electric supplier
11 shall provide those services in accordance with Sections
12 16-115A and 16-115B of this Act, to the extent that these
13 Sections have application to the services being offered by
14 the electric cooperative or municipal system as an
15 alternative retail electric supplier. In no case shall these
16 provisions apply to the existing or future customers taking
17 delivery services from an electric cooperative or municipal
18 system pursuant to their respective authority under the
19 Electric Supplier Act or the Illinois Municipal Code.
20 (c) Notification of election to be an alternative retail
21 electric supplier. Upon filing notice of intent by an
22 electric cooperative or a municipal system to become an
23 alternative retail electric supplier, the Commission shall
24 issue within 45 days a certificate of service authority for
25 the entire State or for a specified geographic area of the
26 State, as specified in the notice. Issuance of a certificate
27 of service authority shall constitute compliance with Section
28 16-115 of this Act.
29 (d) Delivery services provided by electric cooperatives
30 or municipal systems. Municipal systems or electric
31 cooperatives making an election under this Section shall be
32 required to provide delivery services on their respective
33 systems to the electric utility or utilities in whose service
34 area or areas the proposed service will be offered. Such
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1 required delivery services to be provided by the electric
2 cooperatives and municipal systems shall be reasonably
3 comparable to the delivery services provided to the electric
4 cooperative's and municipal system's own customers.
5 (e) Exclusive authority over distribution facilities.
6 Provided that, and subject to their authority to serve
7 customers pursuant to the Electric Supplier Act with respect
8 to electric cooperatives and pursuant to the Illinois
9 Municipal Code with respect to municipal systems, each shall
10 continue to provide the exclusive distribution facilities for
11 any existing and future customers that the electric
12 cooperative or municipal system is now or in the future
13 otherwise entitled to serve, and which customers are now or
14 in the future receiving service provided by an alternative
15 retail electric supplier.
16 (220 ILCS 5/17-400 new)
17 Sec. 17-400. Conditions prohibiting municipal system
18 participation. At no time shall a municipal system make an
19 election under Sections 17-200 or 17-300 of this Article if
20 such election places at risk:
21 (1) Any status held by the municipal system or municipal
22 corporation or political subdivision which provides exemption
23 from State or federal tax statutes; or
24 (2) Any debt, credit instrument or other contractual
25 financial obligation held by, or on behalf of the municipal
26 system which was entered into under an exemption from State
27 or federal tax statutes.
28 (220 ILCS 5/17-500 new)
29 Sec. 17-500. Jurisdiction. Except as provided in the
30 Electric Supplier Act, the Illinois Municipal Code, and this
31 Article XVII, the Commission, or any other agency or
32 subdivision thereof of the State of Illinois or any private
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1 entity shall have no jurisdiction over any electric
2 cooperative or municipal system regardless of whether any
3 election or elections as provided for herein have been made,
4 and all control regarding an electric cooperative or
5 municipal system shall be vested in the electric
6 cooperative's board of directors or trustees or the
7 applicable governing body of the municipal system.
8 (220 ILCS 5/17-600 new)
9 Sec. 17-600. Rights of electric cooperatives and
10 municipal systems in conflict herewith. Except as expressly
11 provided for herein, this Article XVII shall not be construed
12 to conflict with the rights of an electric cooperative or a
13 municipal system as declared in the Electric Supplier Act or
14 as set forth in the Illinois Municipal Code or the public
15 policy against duplication of facilities as set forth
16 therein.
17 (220 ILCS 5/17-700 new)
18 Sec. 17-700. Right to create municipal utility
19 unaffected. Nothing in this amendatory Act of 1997 shall
20 limit the right of a municipality to form a municipal utility
21 in accordance with Article 11, Division 117 of the Illinois
22 Municipal Code and the provisions of this Article XVII shall
23 apply to any municipal utility formed after the effective
24 date of this amendatory Act of 1997.
25 (220 ILCS 5/Art. XVIII heading new)
26 ARTICLE XVIII. ELECTRIC UTILITY TRANSITIONAL FUNDING LAW
27 (220 ILCS 5/18-101 new)
28 Sec. 18-101. Short title and applicability. This Article
29 may be cited as the Electric Utility Transitional Funding Law
30 of 1997 and shall apply to electric utilities as defined in
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1 this Article.
2 (220 ILCS 5/18-102 new)
3 Sec. 18-102. Definitions. For the purposes of this
4 Article the following terms shall be defined as set forth in
5 this Section. Terms defined in Article XVI shall have the
6 same meanings in this Article.
7 "Assignee" means any party, other than an electric
8 utility or grantee, to which an interest in intangible
9 transition property shall have been assigned, sold or
10 transferred. The term "assignee" includes any corporation,
11 public authority, trust, financing vehicle, partnership,
12 limited liability company or other entity.
13 "Grantee" means any party, other than an electric utility
14 or an assignee which acquires its interest from an electric
15 utility, to whom or for whose benefit the Commission shall
16 create, establish and grant rights in, to and under
17 intangible transition property. The term "grantee" includes
18 any corporation, public authority, trust, financing vehicle,
19 partnership, limited liability company or other entity.
20 "Grantee instruments" means (a) any instruments,
21 documents, notes, debentures, bonds or other evidences of
22 indebtedness evidencing any contractual right to receive the
23 payment of money from a grantee or (b) any certificates of
24 participation, certificates of beneficial interest or other
25 instruments evidencing a beneficial or ownership interest in
26 a grantee or in intangible transition property of such
27 grantee which are (i) issued (A) by or on behalf of a grantee
28 pursuant to a transitional funding order and (B) pursuant to
29 an executed indenture, pooling agreement, security agreement
30 or other similar agreement of such grantee creating a
31 security interest, ownership interest or other beneficial
32 interest in intangible transition property and (ii) payable
33 solely from proceeds of intangible transition property,
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1 including amounts received with respect to the related
2 instrument funding charges.
3 "Holder" means any holder of transitional funding
4 instruments, including a trustee, collateral agent, nominee
5 or other such party acting for the benefit of such a holder.
6 "Instrument funding charge" means a non-bypassable charge
7 expressed in cents per kilowatt-hour authorized in a
8 transitional funding order to be applied and invoiced to each
9 retail customer, class of retail customers of an electric
10 utility or other person or group of persons obligated to pay
11 any base rates, transition charges or other rates for
12 tariffed services from which such instrument funding charge
13 has been deducted and stated separately pursuant to
14 subsection (j) of Section 18-104.
15 "Intangible transition property" means the right, title,
16 and interest of an electric utility or grantee or assignee
17 arising pursuant to a transitional funding order to impose
18 and receive instrument funding charges, and all related
19 revenues, collections, claims, payments, money, or proceeds
20 thereof, including all right, title, and interest of an
21 electric utility, grantee or assignee in, to, under and
22 pursuant to such transitional funding order, whether or not
23 such intangible transition property described above is
24 characterized on the books of the electric utility as a
25 regulatory asset or as a cost incurred by the electric
26 utility or otherwise. Intangible transition property shall
27 arise and exist only when, as, and to the extent that
28 instrument funding charges are authorized in a transitional
29 funding order that has become effective in accordance with
30 this Article and shall thereafter continuously exist to the
31 extent provided in the order.
32 "Issuer" means any party, other than an electric utility,
33 which has issued transitional funding instruments. The term
34 "issuer" includes any corporation, public authority, trust,
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1 financing vehicle, partnership, limited liability company or
2 other entity.
3 "Transitional funding instruments" means any instruments,
4 pass-through certificates, notes, debentures, certificates of
5 participation, bonds, certificates of beneficial interest or
6 other evidences of indebtedness or instruments evidencing a
7 beneficial interest (i) which are issued by or on behalf of
8 an electric utility or issuer pursuant to a transitional
9 funding order, (ii) which are issued pursuant to an executed
10 indenture, pooling agreement, security agreement or other
11 similar agreement of an electric utility or issuer creating a
12 security interest, ownership interest or other beneficial
13 interest in intangible transition property or grantee
14 instruments, if any, and (iii) the proceeds of which are to
15 be used for the purposes set forth in subparagraph (1) of
16 subsection (d) of Section 18-103 of this Article.
17 "Transitional funding order" means an order of the
18 Commission issued in accordance with the provisions of this
19 Article creating and establishing intangible transition
20 property and the rights of any party therein and approving
21 the sale, pledge, assignment or other transfer of intangible
22 transition property and grantee instruments, if any, the
23 issuance of transitional funding instruments and grantee
24 instruments, if any, and the imposition and collection of
25 instrument funding charges.
26 (220 ILCS 5/18-103 new)
27 Sec. 18-103. Transitional funding orders.
28 (a) Notwithstanding any other provision of this Act or
29 other law, the Commission is hereby authorized to issue
30 transitional funding orders in accordance with the
31 provisions of this Section, in order to facilitate (i) the
32 issuance of transitional funding instruments by or on behalf
33 of electric utilities or issuers and (ii) the issuance of
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1 grantee instruments by or on behalf of grantees.
2 (b) A transitional funding order may be issued by the
3 Commission only upon the application of an electric utility
4 and shall become effective in accordance with its terms only
5 after such electric utility files with the Commission its
6 written consent to all terms and conditions of such order.
7 After the issuance of a transitional funding order, the
8 electric utility or grantee shall retain sole discretion
9 regarding whether to assign, sell, pledge or otherwise
10 transfer intangible transition property and grantee
11 instruments, if any, or to cause transitional funding
12 instruments and grantee instruments, if any, to be issued,
13 including the right to defer or postpone such assignment,
14 sale, transfer, pledge or issuance or to change the terms
15 thereof as allowed by such order.
16 (c) After the effective date of this amendatory Act of
17 1997, an electric utility may file any number of applications
18 for transitional funding orders. Each application for a
19 transitional funding order shall contain detailed information
20 regarding the electric utility's proposal for (i) the
21 assignment, sale, pledge or other transfer of, or the
22 establishment, creation and granting of rights in and to,
23 intangible transition property and grantee instruments, if
24 any, (ii) the issuance of transitional funding instruments
25 and grantee instruments, if any, (iii) the total dollar
26 amount of intangible transition property to be created and
27 the amount to be sold, pledged, assigned or otherwise
28 transferred or granted hereunder (which amount may be in
29 excess of the principal and interest payable on the
30 transitional funding instruments and grantee instruments, if
31 any, in order to provide for servicing costs and the funding
32 or maintenance of debt service and other reserves, costs and
33 fees as security to the holders of the transitional funding
34 instruments and grantee instruments, if any), (iv) the amount
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1 of transitional funding instruments and grantee instruments,
2 if any, to be issued, (v) the amount, expressed in cents per
3 kilowatt-hour, of instrument funding charges to be collected
4 from retail customers or other persons, (vi) the time to
5 maturity for the transitional funding instruments and grantee
6 instruments, if any, and (vii) the electric utility's planned
7 use of the proceeds from the issuance of transitional funding
8 instruments including the amounts allocated for the
9 respective uses specified in subparagraph (1) of subsection
10 (d) of Section 18-103 of this Article.
11 (d) The Commission shall, after proper notice, hold a
12 hearing for the sole purpose of determining whether the
13 application and requested transitional funding order are in
14 compliance with this Article and shall complete its review of
15 the application and issue its final transitional funding
16 order by no later than 90 days after the filing of such
17 application by the electric utility; provided, that, in
18 contested cases where the public interest is in issue
19 pursuant to subparagraph (1)(B) of this subsection (d) or
20 pursuant to subsection (m) of Section 18-104, the Commission
21 may complete its review and issue its final transitional
22 funding order by no later than 120 days after the filing of
23 such application. The order shall create and establish the
24 proposed intangible transition property in the amount
25 requested by the applicant and approve the proposed sale,
26 pledge, assignment or other transfer of, or the
27 establishment, creation and granting of rights in and to,
28 intangible transition property and grantee instruments, if
29 any, the proposed issuance of transitional funding
30 instruments and grantee instruments, if any, and the proposed
31 imposition and collection of the corresponding instrument
32 funding charges, if the Commission finds that each of the
33 following conditions are met:
34 (1) the electric utility will use the proceeds of
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1 the sale and issuance of the transitional funding
2 instruments for one or more of the following purposes:
3 (A) to refinance debt or equity, or both, in a
4 manner which the electric utility reasonably
5 demonstrates will result in an overall reduction in
6 its cost of capital, taking into account the costs
7 of financing; provided, however, that any proceeds
8 transferred to a parent company through a common
9 stock repurchase transaction shall be used to retire
10 publicly traded common stock of the parent company
11 or to pay commercially reasonable transaction costs
12 associated with such retirement;
13 (B) if the Commission finds that the sale or
14 issuance of transitional funding instruments for the
15 following purposes is in the public interest, then
16 the following uses of proceeds: (i) to repay or
17 retire fuel contracts or obligations related to
18 nuclear spent fuel previously incurred by the
19 electric utility in providing electric power or
20 energy services prior to the effective date of this
21 amendatory Act of 1997 or (ii) to pay any
22 expenditures required to be undertaken by such
23 electric utility by the provisions of Section 16-128
24 of this Act including labor severance costs and
25 employee retraining costs;
26 (C) to fund debt service and other reserves,
27 commercially reasonable costs and fees necessary or
28 desirable in connection with the marketing of the
29 transitional funding instruments and grantee
30 instruments, if any;
31 (D) to pay for commercially reasonable costs
32 associated with the issuance and collateralization
33 of transitional funding instruments and grantee
34 instruments, if any; and
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1 (E) to pay for the commercially reasonable
2 costs associated with the issuance of such
3 transitional funding instruments, including the
4 costs incurred since the effective date of this
5 amendatory Act of 1997, or to be incurred, in
6 connection with transactions to recapitalize,
7 refinance or retire stock and/or debt, any
8 associated taxes, and the costs incurred or to be
9 incurred to obtain, collateralize, issue, service
10 and administer transitional funding instruments and
11 grantee instruments, including interest and other
12 related fees, costs and charges;
13 provided, (i) that the transitional funding order shall
14 require the electric utility to use (1) at least 80% of
15 such proceeds for the purposes specified in subparagraphs
16 (A) and (B) above and (2) no more than 20% of the maximum
17 amount of such proceeds permitted under subparagraph
18 (6)(B) of this subsection for purposes other than those
19 specified in subparagraph (A) above ; (ii) that the
20 electric utility's use of such proceeds for the purposes
21 specified in subparagraph (A) above shall not, as of the
22 date of application of such proceeds, result in the
23 common equity component of its capital structure,
24 exclusive of the portion of its capital structure that
25 consists of obligations representing transitional funding
26 instruments or grantee instruments, being reduced below
27 the lesser of (1) 40% and (2) the common equity
28 percentage as of December 31, 1996 adjusted to reflect
29 any write-off of assets or common equity implemented or
30 required to be implemented as a result of this amendatory
31 Act of 1997; and (iii) in no event shall the electric
32 utility use the proceeds of the sale of grantee
33 instruments or transitional funding instruments to repay
34 or retire obligations incurred by any affiliate of the
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1 electric utility (other than in connection with any
2 refinancing of grantee instruments or transitional
3 funding instruments issued by such affiliate), without
4 the consent of the Commission;
5 (2) the expected maturity date for the grantee
6 instruments or the transitional funding instruments, and
7 the final date on which the electric utility, grantee or
8 assignee shall be entitled to charge and collect
9 instrument funding charges, shall each be set to occur no
10 later than December 31, 2008, subject to the provisions
11 of subsections (l) and (m) of Section 18-104;
12 (3) the instrument funding charges authorized in
13 such order will be deducted and stated separately from
14 base rates and transition charges, and, where applicable,
15 other rates for tariffed services, all as provided in
16 subsection (j) of Section 18-104 and in a manner
17 conforming to the allocation of the instrument funding
18 charges implemented pursuant to subparagraph (4) of this
19 subsection;
20 (4) the instrument funding charges authorized in
21 such order shall have been allocated among classes of
22 retail customers in accordance with percentage ratios
23 determined by dividing the base rate revenue from each
24 class by the electric utility's total base rate revenue
25 for the 1996 calendar year;
26 (5) the issuance of the transitional funding
27 instruments will not cause the rates for tariffed
28 services to increase over the rates then in existence as
29 adjusted for the rate decreases provided in subsection
30 (b) of Section 16-111; and
31 (6) the aggregate principal amount of grantee
32 instruments or, if such transitional funding order does
33 not provide for the issuance of grantee instruments,
34 transitional funding instruments, to be issued pursuant
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1 to such order, together with the aggregate amount of such
2 instruments issued under any prior orders requested by
3 such electric utility, shall not exceed:
4 (A) during the twelve-month period commencing
5 August 1, 1998, an amount equal to 25% of
6 the applicable electric utility's total
7 capitalization, including both debt and
8 equity, as of December 31, 1996, multiplied
9 by the ratio of the electric utility's
10 revenues from Illinois electric utility
11 retail customers in the 1996 calendar year
12 to its total electric retail revenues for
13 such 1996 year; and
14 (B) thereafter, an amount equal to 50% of the
15 applicable electric utility's total
16 capitalization, including both debt and
17 equity, as of December 31, 1996 multiplied
18 by the ratio of the electric utility's
19 revenues from Illinois electric utility
20 retail customers in the 1996 calendar year
21 to its total electric retail revenues for
22 such 1996 year.
23 (220 ILCS 5/18-104 new)
24 Sec. 18-104. Terms and provisions of transitional funding
25 orders.
26 (a) Each transitional funding order shall create and
27 establish intangible transition property in an amount not to
28 exceed the sum of (i) the rate base established by the
29 Commission in the electric utility's last rate case prior to
30 the effective date of this amendatory Act of 1997, plus (ii)
31 any expenditures required to be undertaken by such electric
32 utility by the provisions of Section 16-128 of this Act,
33 including labor severance costs and employee retraining
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1 costs, plus (iii) amounts necessary to fund debt service and
2 other reserves, commercially reasonable costs and fees
3 necessary in connection with the marketing of the
4 transitional funding instruments and grantee instruments, if
5 any, plus (iv) commercially reasonable costs incurred from
6 and after the effective date of this amendatory Act of 1997
7 or to be incurred which are associated with the issuance and
8 collateralization of transitional funding instruments and
9 grantee instruments, if any, plus (v) commercially reasonable
10 costs incurred from and after the effective date of this
11 amendatory Act of 1997 or to be incurred which are associated
12 with issuance of such transitional funding instruments,
13 including the costs incurred from and after the effective
14 date of this amendatory Act of 1997, or to be incurred, in
15 connection with transactions to recapitalize, refinance or
16 retire stock and/or debt, any associated taxes and the costs
17 incurred to obtain, collateralize, issue, service and/or
18 administer transitional funding instruments and grantee
19 instruments, if any, including interest and other related
20 fees, costs and charges (all of the foregoing costs described
21 in clauses (i) through (v) above to include any taxes, where
22 applicable, to the extent the costs thereof would otherwise
23 have been recoverable by an electric utility through rates
24 for tariffed services under the Public Utilities Act as in
25 effect prior to this amendatory Act of 1997), minus (vi) the
26 amount of any intangible transition property previously
27 created and established at the request of and for the benefit
28 of such electric utility in a prior transitional funding
29 order. The transitional funding order shall authorize (A)
30 the sale, pledge, assignment or other transfer of, or the
31 establishment, creation and granting of an electric
32 utility's, assignee's or grantee's rights in and to, a
33 specific dollar amount of intangible transition property
34 (which amount may be in excess of the principal and interest
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1 payable on the transitional funding instruments and grantee
2 instruments, if any, in order to provide for servicing costs
3 and the funding or maintenance of debt service and other
4 reserves as security to the holders of the transitional
5 funding instruments), (B) the issuance of a specific dollar
6 amount of grantee instruments or, if the transitional funding
7 order does not provide for the issuance of grantee
8 instruments, a specific dollar amount of transitional funding
9 instruments, by or on behalf of an electric utility,
10 assignee, issuer or grantee, as the case may be, and (C) the
11 imposition and collection of a specific amount of instrument
12 funding charges projected to be sufficient to pay when due
13 the principal of and interest on the corresponding grantee
14 instruments or, if the transitional funding order does not
15 provide for the issuance of grantee instruments, the
16 corresponding transitional funding instruments, in each case,
17 together with premium, servicing fees and other fees, costs
18 and charges related thereto, and to maintain any required
19 reserves. Except as otherwise specifically set forth in the
20 transitional funding order, the transitional funding
21 instruments issued pursuant to such order shall be
22 non-recourse to the credit or to any assets of the electric
23 utility other than any assets comprising intangible
24 transition property or grantee instruments, as applicable.
25 The obligation of retail customers and other persons to pay
26 instrument funding charges shall be contingent upon the
27 receipt by such retail customers and other persons of
28 electric power and energy, the kilowatt hours of which are
29 included in the calculation of the dollar amount of such
30 instrument funding charges, but the transitional funding
31 order shall specifically provide that such instrument funding
32 charges will not be subject to any defense, counterclaim or
33 right of set off arising as a result of failure by the
34 pertinent electric utility, upon whose application the
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1 intangible transition property was created, to perform or
2 provide past, present or future services. For purposes of
3 the foregoing sentence, an electric utility or alternative
4 retail electric supplier obligated to pay transition charges
5 under subsection (b) of Section 16-118 on behalf of certain
6 retail customers shall be deemed to have received the
7 electric power and energy provided to such retail customers.
8 The transitional funding order shall also set forth the time
9 to maturity for the grantee instruments or, if the
10 transitional funding order does not provide for the issuance
11 of grantee instruments, the time to maturity for the
12 transitional funding instruments issued thereunder.
13 Concurrently with the sale, pledge, assignment or other
14 transfer of, or the establishment, creation and granting of
15 an electric utility's, assignee's or grantee's rights in and
16 to, intangible transition property and grantee instruments,
17 if any, and the issuance of transitional funding instruments,
18 an electric utility, grantee, issuer or an assignee shall
19 begin to impose and collect the specified instrument funding
20 charges from retail customers, classes of retail customers,
21 and any other persons or groups of persons as set forth in
22 the pertinent transitional funding order and shall file
23 tariffs in accordance with subsection (j) of Section 18-104
24 of this Article.
25 (b) The transitional funding order shall require that
26 the proceeds from the issuance of transitional funding
27 instruments shall be used for the purposes set forth in
28 subparagraph (1) of subsection (d) of Section 18-103 of this
29 Article.
30 (c) Notwithstanding any other provision of law, neither
31 the transitional funding order nor the intangible transition
32 property created and established thereby nor the instrument
33 funding charges authorized to be imposed and collected
34 thereunder shall be subject to reduction, postponement,
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1 impairment or termination by any subsequent action of the
2 Commission; provided, however, that nothing in this paragraph
3 is intended to supersede any right of any party to the
4 Commission's proceeding relating to the transitional funding
5 order to seek judicial review of such transitional funding
6 order.
7 (d) The Commission shall provide in any transitional
8 funding order for a procedure for periodic adjustments to the
9 instrument funding charges set forth therein in order to
10 ensure the repayment in accordance with the projections set
11 forth in the transitional funding order of all grantee
12 instruments or, if such transitional funding order does not
13 provide for the issuance of grantee instruments, the
14 corresponding transitional funding instruments authorized
15 therein and to reconcile the revenues received from
16 instrument funding charges during the applicable adjustment
17 period with the revenues projected to be received from such
18 charges as set forth in the relevant transitional funding
19 order. Unless the transitional funding order otherwise
20 provides, such adjustments shall be required whenever the
21 instrument funding charges actually collected during the
22 applicable adjustment period by the appropriate party or
23 parties were greater or less than the instrument funding
24 charges projected in the relevant transitional funding order
25 to be collected in such adjustment period; provided that, if
26 so requested by an electric utility in any application for a
27 transitional funding order, the transitional funding order
28 may (i) specify a dollar or percentage amount of variation
29 from the projected revenues within which no such adjustments
30 will be required and/or (ii) set forth a maximum adjustment
31 amount for the instrument funding charges. The electric
32 utility (or such other party as may be specified in the
33 pertinent transitional funding order) shall determine, within
34 90 days of the end of each adjustment period (or such shorter
-112- SRS90HB0362JJsaam02
1 period as may be provided in the documents relating to the
2 pertinent transitional funding instruments or grantee
3 instruments, as applicable), whether any adjustments
4 described above in this subsection (d) of Section 18-104 are
5 required. If any such adjustments are so required, such
6 adjustments shall be implemented by the electric utility,
7 grantee, issuer or assignee, as applicable, with written
8 notice to the Commission, within such 90-day period (or such
9 shorter period as may be provided for in the documents
10 relating to the pertinent transitional funding instruments or
11 grantee instruments, as applicable). Any such adjustment
12 shall be calculated to include amounts necessary for recovery
13 of any additional costs incurred by the grantee, electric
14 utility, assignee or issuer as a result of the relevant delay
15 in collections of instrument funding charges. If, as a
16 result of any adjustment, the amount of any instrument
17 funding charge, as so adjusted, will exceed an amount per
18 kilowatt-hour greater than the amount per kilowatt-hour of
19 the instrument funding charge initially authorized by the
20 Commission in its transitional funding order, then the
21 relevant electric utility shall be obligated to file
22 amendatory tariffs in compliance with subsection (k) of
23 Section 18-104.
24 (e) Except where this Article specifically requires
25 otherwise, the collection of instrument funding charges and
26 the allocation of any such collections as among holders,
27 assignees, issuers, grantees and any other parties entitled
28 to receive portions thereof, may be accomplished according to
29 the provisions set forth in the applicable transitional
30 funding order, or, if the order is silent on any such
31 matters, according to the provisions set forth in the
32 documents relating to the pertinent transitional funding
33 instruments or grantee instruments, as applicable.
34 Notwithstanding the foregoing, the electric utility, grantee,
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1 issuer or assignee, as applicable, shall determine no later
2 than 90 days after the stated maturity date of each series of
3 grantee instruments or, if the related transitional funding
4 order does not provide for the issuance of grantee
5 instruments, the stated maturity date of transitional funding
6 instruments, whether the aggregate amount of instrument
7 funding charges collected prior to such stated maturity date
8 exceeds the amount required to provide for the payment of all
9 principal, interest, premium and servicing and other fees,
10 costs and charges owing under such grantee instruments or
11 transitional funding instruments, as the case may be. If it
12 is determined that the aggregate amount of instrument funding
13 charges collected exceeds the amount required to provide for
14 the payment of all principal, interest, premium and servicing
15 and other fees, costs and charges related to such grantee
16 instruments or transitional funding instruments, as the case
17 may be, such excess, together with any investment earnings
18 thereon, shall be paid to the owner of the pertinent
19 intangible transition property.
20 (f) Notwithstanding any other provision of law, on such
21 conditions as the Commission may approve in the pertinent
22 transitional funding order, the interest of an electric
23 utility, assignee, issuer or grantee in intangible transition
24 property or grantee instruments, as applicable, may be
25 assigned, sold or otherwise transferred, in whole or in part,
26 and may, in whole or in part, be pledged or assigned as
27 security to or for the benefit of a holder or holders. To
28 the extent that any such interest or portion thereof is
29 assigned, sold or otherwise transferred or is established,
30 created and granted to a grantee or is pledged or assigned as
31 security, the Commission, in the pertinent transitional
32 funding order, shall authorize the electric utility or any
33 affiliate thereof to contract with the grantee, issuer,
34 assignee or holders to collect the applicable instrument
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1 funding charges for the benefit and account of the grantee,
2 issuer, assignee or holder, and such electric utility or
3 affiliate will, except as otherwise specified in the
4 transitional funding order, account for and remit the
5 applicable instrument funding charge, without the obligation
6 to remit any investment earnings thereon, to or for the
7 account of the grantee, issuer, assignee or holder. The
8 obligation of such electric utility or affiliate to collect
9 and remit the applicable instrument funding charges hereunder
10 shall continue irrespective of whether such electric utility
11 is providing electric power and/or other services to the
12 retail customers and other persons obligated to pay such
13 instrument funding charges. If the documents creating the
14 transitional funding instruments or grantee instruments, if
15 any, so provide, such obligations shall, in the event of a
16 default by such electric utility or affiliate in performing
17 such obligations, be undertaken and performed by any other
18 entity selected by the assignee or any holder, group of
19 holders or trustee or agent on behalf of such holder or
20 holders, as the case may be, (i) which provides electric
21 power or services to a person that was a retail customer of
22 such electric utility and (ii) from whom such electric
23 utility is entitled to recover transition charges under
24 Section 16-108; provided, however, that any failure by the
25 designated party to perform such obligations shall not affect
26 the existence of the intangible transition property or the
27 instrument funding charges or the validity or enforceability
28 of the instrument funding charges in accordance with their
29 terms.
30 (g) In its transitional funding order, the Commission
31 shall afford flexibility in establishing the terms and
32 conditions of the transitional funding instruments and the
33 grantee instruments, if any, including repayment schedules,
34 collateral, required debt service and other reserves,
-115- SRS90HB0362JJsaam02
1 interest rates and other financing costs and the ability of
2 the electric utility, at its option, to effect a series of
3 issuances of transitional funding instruments and grantee
4 instruments and correlated assignments, sales, pledges or
5 other transfers of intangible transition property and grantee
6 instruments, if any, not to exceed the aggregate dollar
7 amounts approved in the transitional funding order.
8 (h) The electric utility shall file a statement of the
9 final terms of the issuance of any series of transitional
10 funding instruments or grantee instruments, if any, with the
11 Commission within 90 days of the receipt of proceeds from
12 such issuance. In addition, the Commission may require the
13 electric utility to file periodic reports on its use of the
14 proceeds at intervals of not less than one year.
15 (i) Any adjustment to instrument funding charges that is
16 necessary due to subsequent refinancing of transitional
17 funding instruments or grantee instruments, if any, shall be
18 authorized by the Commission in a supplemental order.
19 (j) In connection with the issuance of a transitional
20 funding order and as a precondition to the imposition of any
21 instrument funding charges authorized thereby, the relevant
22 electric utility shall file tariffs directing that the amount
23 of such instrument funding charges be deducted, stated, and
24 collected separately from the amounts otherwise billed by
25 such electric utility for base rates and transition charges
26 and, where applicable, other rates for tariffed services as
27 set forth in the transitional funding order. Upon the
28 effectiveness of such tariff, the amounts of instrument
29 funding charges thereby deducted and to be deducted shall
30 have become intangible transition property as specified in
31 the transitional funding order. The Commission shall have no
32 authority to review such tariffs except to confirm that the
33 instrument funding charges authorized in the transitional
34 funding order have been deducted, stated, and collected
-116- SRS90HB0362JJsaam02
1 separately from base rates and transition charges and, where
2 applicable, other rates for tariffed services otherwise in
3 effect at such time, and the filing of any such tariff may
4 not be suspended for any other reason. No such deductions
5 referred to in this subsection shall be construed as a change
6 in or otherwise require a recalculation of the authorized
7 amounts of such base rates, transition charges, and other
8 rates for tariffed services under Section 16-102, 16-107,
9 16-108, or 16-110, as applicable. Instrument funding charges
10 shall be recoverable with respect to electric power and
11 energy or other services for which the deductions provided in
12 this subsection have become effective and no such deduction
13 shall be effective with respect to any services or power in
14 respect of which instrument funding charges have not been so
15 authorized and imposed.
16 (k) If any adjustment under subsection (d) of Section
17 18-104 results in the amount of any instrument funding charge
18 as so adjusted exceeding an amount per kilowatt-hour greater
19 than the amount per kilowatt-hour of the instrument funding
20 charge initially authorized by the Commission in its
21 transitional funding order, the relevant electric utility
22 shall file amendatory tariffs reducing the amounts otherwise
23 billed by such electric utility for base rates and transition
24 charges or, where applicable, other rates for tariffed
25 services, by the amount of such excess. Such amendatory
26 tariff shall be subject to the provisions of subsection (j)
27 of Section 18-104, except that (i) the failure of such
28 amendatory tariff to become effective for any reason shall
29 not delay or impair the effectiveness of the adjustments
30 required under subsection (d) of Section 18-104 and (ii) the
31 obligation of retail customers and other persons or groups of
32 persons to pay instrument funding charges as so adjusted
33 shall not be subject to any defense, counterclaim or right of
34 set off arising as a result of failure by the pertinent
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1 electric utility to comply with this subsection (k) of
2 Section 18-104. Nothing in this subsection (k) of Section
3 18-104 shall restrict any retail customer or other person
4 from bringing any suit in any court or from exercising any
5 other legal or equitable remedy against an electric utility
6 for any failure by such electric utility to comply with this
7 subsection (k) of Section 18-104.
8 (l) The intangible transition property created under a
9 transitional funding order and the authority of the grantee,
10 assignee, issuer, electric utility or other person authorized
11 thereunder to impose and collect instrument funding charges
12 shall continue beyond the final date set forth in the
13 applicable transitional funding order until such time as all
14 grantee instruments authorized in such order or, if the
15 applicable transitional funding order does not provide for
16 grantee instruments, the related transitional funding
17 instruments authorized in such order, have been paid in full.
18 Upon the later of the final date set forth in the
19 applicable transitional funding order for the imposition and
20 collection of instrument funding charges or the repayment in
21 full of any grantee instruments or transitional funding
22 instruments, as applicable, authorized in such order, the
23 authority to impose and collect the related instrument
24 funding charges shall cease and the relevant electric utility
25 shall be entitled to file tariffs revoking any deductions
26 from base rates, transition charges or other rates for
27 tariffed services which were granted in connection with such
28 instrument funding charges pursuant to subsection (j) of
29 Section 18-104 or subsection (k) of Section 18-104. The
30 Commission shall have no authority to review such tariffs
31 except to determine that the rates and charges resulting from
32 such revocation do not exceed the applicable base rates,
33 transition charges, or other rates for tariffed services
34 which would otherwise have been in effect at the time of such
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1 revocation had no instrument funding charges ever been
2 deducted therefrom.
3 (m) If so requested by an electric utility in its
4 application for a transitional funding order, the Commission,
5 in the relevant transitional funding order, may authorize (i)
6 the issuance of grantee instruments and/or transitional
7 funding instruments with expected maturity dates later than
8 December 31, 2008 but not later than December 31, 2010 and
9 (ii) the imposition and collection of instrument funding
10 charges by electric utilities, grantees, or assignees later
11 than December 31, 2008 but not later than December 31, 2010
12 if the electric utility includes in its application a pro
13 forma calculation of the impact of the issuance of the
14 transitional funding instruments or grantee instruments and
15 the associated use of proceeds on the revenue requirement
16 established by the Commission in the electric utility's last
17 rate case, with such calculation to be presented for
18 illustrative purposes only, and the Commission, in its review
19 of the relevant application for the transitional funding
20 order, finds that such action is in the public interest and
21 that the instrument funding charges to be applied toward
22 payment of transitional funding instruments after December
23 31, 2008 will be deducted, stated, and collected separately
24 from base rates and, where applicable, other rates for
25 tariffed services otherwise in effect at such time and as
26 scheduled to be in effect through such expected maturity
27 date.
28 (220 ILCS 5/18-105 new)
29 Sec. 18-105. Intangible transition property.
30 (a) Notwithstanding any other provision of this Act or
31 other law, the Commission is hereby authorized, in accordance
32 with the application for a transitional funding order, to
33 create, establish and grant rights in, to and under
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1 intangible transition property in and to any grantee,
2 electric utility, issuer or assignee, and such party shall be
3 granted the power to levy general tariffs on retail customers
4 of an electric utility or any other person required to pay an
5 instrument funding charge in order to collect the instrument
6 funding charges related to the intangible transition property
7 in which such party has been granted rights and in order to
8 facilitate the issuance of transitional funding instruments
9 and grantee instruments, if any, to, by or on behalf of
10 electric utilities, grantees, issuers or assignees. The
11 Commission shall be authorized to create, establish and grant
12 such rights hereunder in and to such party with or without
13 receiving consideration from such party.
14 (b) The State pledges to and agrees with the holders of
15 any transitional funding instruments who may enter into
16 contracts with an electric utility, grantee, assignee or
17 issuer pursuant to this Article XVIII that the State will not
18 in any way limit, alter, impair or reduce the value of
19 intangible transition property created by, or instrument
20 funding charges approved by, a transitional funding order so
21 as to impair the terms of any contract made by such electric
22 utility, grantee, assignee or issuer with such holders or in
23 any way impair the rights and remedies of such holders until
24 the pertinent grantee instruments or, if the related
25 transitional funding order does not provide for the issuance
26 of grantee instruments, the pertinent transitional funding
27 instruments and interest, premium and other fees, costs and
28 charges related thereto, as the case may be, are fully paid
29 and discharged. Electric utilities, grantees and issuers are
30 authorized to include these pledges and agreements of the
31 State in any contract with the holders of transitional
32 funding instruments or with any assignees pursuant to this
33 Article XVIII and any assignees are similarly authorized to
34 include these pledges and agreements of the State in any
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1 contract with any issuer, holder or any other assignee.
2 Nothing in this Article XVIII shall preclude the State of
3 Illinois from requiring adjustments as may otherwise be
4 allowed by law to the electric utility's base rates,
5 transition charges, delivery services charges, or other
6 charges for tariffed services, so long as any such adjustment
7 does not directly affect or impair any instrument funding
8 charges previously authorized by a transitional funding order
9 issued by the Commission.
10 (c) Transitional funding instruments and grantee
11 instruments, if any, issued under this Article do not
12 constitute debt or liability of the State or of any political
13 subdivision thereof, and transitional funding orders
14 authorizing such issuance do not constitute a pledge of the
15 full faith and credit of the State or of any of its political
16 subdivisions. The issuance of transitional funding
17 instruments and grantee instruments, if any, under this
18 Article shall not directly, indirectly or contingently
19 obligate the State or any political subdivision thereof to
20 levy or to pledge any form of taxation therefor or to make
21 any appropriation for their payment, and any such
22 transitional funding instruments and grantee instruments, if
23 any, shall be payable solely from the intangible transition
24 property or grantee instruments, as the case may be, or from
25 such other proceeds or property as may be pledged therefor.
26 Nothing in this Section shall be construed to prevent the
27 State or any political subdivision thereof from owning any
28 interest in a grantee, assignee or issuer or to prevent any
29 electric utility, issuer, grantee or assignee from selling,
30 pledging or assigning intangible transition property or
31 grantee instruments, as the case may be, or from providing
32 recourse or guarantees or any other third-party credit
33 enhancement in connection with such sale, pledge or
34 assignment.
-121- SRS90HB0362JJsaam02
1 (220 ILCS 5/18-106 new)
2 Sec. 18-106. Grantee instruments.
3 (a) If an electric utility to which grantee instruments
4 have been issued discontinues providing electric power and
5 energy services prior to the maturity date of such grantee
6 instruments, such electric utility shall not be entitled to
7 receive any payment on such grantee instruments on and after
8 the date of such discontinuance.
9 (b) Notwithstanding the provisions of subsection (a) of
10 this Section, any assignee holding such grantee instruments
11 or any holder of transitional funding instruments which are
12 secured by such grantee instruments shall nevertheless be
13 entitled to recover amounts payable by such grantee under
14 such grantee instruments in accordance with their terms as if
15 such electric utility had not discontinued the provision of
16 electric power and energy.
17 (c) Notwithstanding any other provision of law, the
18 issuance of any grantee instruments in accordance with the
19 terms and provisions of a transitional funding order shall
20 for all purposes be exempt from the application of Article 39
21 of the Criminal Code of 1961 and the Interest Act.
22 (220 ILCS 5/18-107 new)
23 Sec. 18-107. Security interests in intangible transition
24 property and grantee instruments.
25 (a) Notwithstanding any other provision of law, neither
26 intangible transition property, grantee instruments nor any
27 right, title or interest therein, shall constitute property
28 in which a security interest may be created under the Uniform
29 Commercial Code nor shall any such rights be deemed proceeds
30 of any property which is not intangible transition property
31 or grantee instruments, as the case may be. For purposes of
32 the foregoing, the terms "account" and "general intangible"
33 (as defined under Section 9-106 of the Uniform Commercial
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1 Code) and the term "instrument" (as defined under Section
2 9-105 of the Uniform Commercial Code) shall, as used in the
3 Uniform Commercial Code, be deemed to exclude any such
4 intangible transition property, grantee instruments or any
5 right, title, or interest therein.
6 (b) The granting, perfection and enforcement of security
7 interests in intangible transition property or grantee
8 instruments are governed by this Section rather than by
9 Article 9 of the Uniform Commercial Code.
10 (c) A valid and enforceable security interest in
11 intangible transition property and in grantee instruments
12 shall attach and be perfected only by the means set forth
13 below in this subsection (c) of Section 18-107:
14 (1) To the extent transitional funding instruments
15 or grantee instruments are purported to be secured by
16 intangible transition property or to the extent
17 transitional funding instruments are purported to be
18 secured by grantee instruments, as the case may be, as
19 specified in the applicable transitional funding order,
20 the lien of the transitional funding instruments and
21 grantee instruments, if any, shall attach automatically
22 to such intangible transition property and grantee
23 instruments, if any, from the time of issuance of the
24 transitional funding instruments and grantee instruments,
25 if any. Such lien shall be a valid and enforceable
26 security interest in the intangible transition property
27 or the grantee instruments, as the case may be, securing
28 the transitional funding instruments and grantee
29 instruments, if any, and shall be continuously perfected
30 if, before the date of issuance of the applicable
31 transitional funding instruments or grantee instruments,
32 if any, or within no more than 10 days thereafter, a
33 filing has been made by or on behalf of the holder with
34 the Chief Clerk of the Commission stating that such
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1 transitional funding instruments or grantee instruments,
2 if any, have been issued. Any such filing made with the
3 Commission in respect to such transitional funding
4 instruments or grantee instruments shall take precedence
5 over any subsequent filing except as may otherwise be
6 provided in the applicable transitional funding order.
7 (2) The liens under subparagraph (1) are
8 enforceable against the electric utility, any assignee,
9 grantee or issuer, and all third parties, including
10 judicial lien creditors, subject only to the rights of
11 any third parties holding security interests in the
12 intangible transition property or grantee instruments
13 previously perfected in the manner described in this
14 subsection if value has been given by the purchasers of
15 transitional funding instruments or grantee instruments.
16 A perfected lien in intangible transition property and
17 grantee instruments, if any, is a continuously perfected
18 security interest in all then existing or thereafter
19 arising revenues and proceeds arising with respect to the
20 associated intangible transition property or grantee
21 instruments, as the case may be, whether or not the
22 electric power and energy included in the calculation of
23 such revenues and proceeds have been provided. The lien
24 created under this subsection is perfected and ranks
25 prior to any other lien, including any judicial lien,
26 which subsequently attaches to the intangible transition
27 property or grantee instruments, as the case may be, and
28 to any other rights created by the transitional funding
29 order or any revenues or proceeds of the foregoing. The
30 relative priority of a lien created under this subsection
31 is not defeated or adversely affected by changes to the
32 transitional funding order or to the instrument funding
33 charges payable by any retail customer, class of retail
34 customers or other person or group of persons obligated
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1 to pay such charges.
2 (3) The relative priority of a lien created under
3 this subsection is not defeated or adversely affected by
4 the commingling of revenues arising with respect to
5 intangible transition property or grantee instruments
6 with funds of the electric utility or other funds of the
7 assignee, issuer or grantee.
8 (4) If an event of default occurs under
9 transitional funding instruments or grantee instruments,
10 the holders thereof or their authorized representatives,
11 as secured parties, may foreclose or otherwise enforce
12 the lien in the grantee instruments or in the intangible
13 transition property securing the transitional funding
14 instruments or grantee instruments, as applicable,
15 subject to the rights of any third parties holding prior
16 security interests in the intangible transition property
17 or grantee instruments previously perfected in the manner
18 provided in this subsection. Upon application by the
19 holders or their authorized representatives, without
20 limiting their other remedies, the Commission shall order
21 the sequestration and payment to the holders or their
22 authorized representatives of revenues arising with
23 respect to the intangible transition property or grantee
24 instruments pledged to the holders. An order under this
25 subsection shall remain in full force and effect
26 notwithstanding any bankruptcy, reorganization, or other
27 insolvency proceedings with respect to the electric
28 utility, grantee, assignee or issuer.
29 (5) The Commission shall maintain segregated
30 records which reflect the date and time of receipt of all
31 filings made under this subsection. The Commission may
32 provide that transfers of intangible transition property
33 or of grantee instruments be filed in accordance with the
34 same system.
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1 (220 ILCS 5/18-108 new)
2 Sec. 18-108. Characterization of transfer. A sale,
3 assignment or other transfer of intangible transition
4 property or grantee instruments which is expressly stated in
5 the documents governing such transaction to be a sale or
6 other absolute transfer, in a transaction approved in a
7 transitional funding order, shall be treated as an absolute
8 transfer of all of the transferor's right, title and interest
9 in, to and under such intangible transition property or
10 grantee instruments which places such transferred property
11 beyond the reach of the transferor or its creditors, as in a
12 true sale, and not as a pledge or other financing, of such
13 intangible transition property or grantee instruments, as the
14 case may be; provided, however, that whether or not such
15 transfer is deemed to be a sale for federal tax purposes
16 shall be governed by applicable law without regard to this
17 Section 18-108. The characterization of any such transfer as
18 an absolute transfer and the corresponding characterization
19 of the transferee's property interest shall not be defeated
20 or adversely affected by, among other things: (i) the
21 commingling of revenues arising with respect to intangible
22 transition property or grantee instruments, as the case may
23 be, with funds of the electric utility or other funds of the
24 assignee, issuer or grantee; (ii) granting to holders of
25 transitional funding instruments a preferred right to the
26 intangible transition property, whether direct or indirect;
27 (iii) the provision by the electric utility, grantee,
28 assignee, or issuer of any recourse, collateral or credit
29 enhancement with respect to transitional funding instruments
30 or grantee instruments, as the case may be; (iv) the
31 retention by the assigning party of a partial interest in any
32 intangible transition property, whether direct or indirect,
33 or whether subordinate or otherwise; or (v) the electric
34 utility's responsibilities for collecting instrument funding
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1 charges and any retention of bare legal title for the purpose
2 of such collection activities; provided, however, that
3 nothing in this Section 18-108 is intended to preclude
4 consideration of such provisions in determining whether or
5 not such transfer is deemed to be a sale for federal tax
6 purposes under other applicable law. A sale, assignment, or
7 other transfer of intangible transition property or grantee
8 instruments, as the case may be, shall be deemed perfected as
9 against third persons, including any judicial lien creditors,
10 when all of the following have taken place:
11 (1) The Commission has issued the transitional
12 funding order creating the intangible transition
13 property; and
14 (2) A sale, assignment or transfer of the
15 intangible transition property or grantee instruments, as
16 the case may be, has been executed and delivered in
17 writing by the electric utility.
18 (220 ILCS 5/18-109 new)
19 Sec. 18-109. Actions with respect to intangible
20 transition property and related instrument funding charges.
21 (a) Notwithstanding any other provision of this Act or
22 other law, any electric utility, issuer, assignee, grantee or
23 holder shall be expressly permitted hereby to bring action
24 against a retail customer or other person for nonpayment of
25 any instrument funding charges constituting a part of the
26 intangible transition property then held by such electric
27 utility, issuer, assignee, grantee or holder. Notwithstanding
28 any other provision of this Act, any such action shall be
29 subject to any and all applicable consumer credit protection
30 laws and other laws relating to origination, collection and
31 reporting of consumer credit obligations.
32 (b) Notwithstanding any other provision of this Act or
33 other law, the Commission shall have exclusive jurisdiction
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1 over any dispute arising out of the obligations to impose and
2 collect instrument funding charges of an electric utility,
3 its successor or any other entity which provides electric
4 power or energy or delivery services to a person from whom
5 the electric utility is authorized to recover transition
6 charges under Section 16-108. Nothing in this Section shall
7 prevent holders from bringing any suit in any court or from
8 exercising any other legal or equitable remedy against an
9 electric utility for failure to distribute collections of
10 instrument funding charges from retail customers, classes of
11 retail customers or other persons or from bringing suit
12 against an electric utility for damages arising from any
13 failure by such electric utility to perform the contractual
14 obligations agreed to by it under any documents pertaining to
15 or executed in connection with the transitional funding
16 instruments issued by or on behalf of such electric utility.
17 (220 ILCS 5/18-110 new)
18 Sec. 18-110. Taxation of transfers of intangible
19 transition property and grantee instruments.
20 (a) Any sale, pledge, assignment or other transfer of
21 intangible transition property and grantee instruments, if
22 any, shall be exempt from any State or local sales, income,
23 transfers, gains, receipts or similar taxes.
24 (b) Any transfer of intangible transition property and
25 grantee instruments, if any, shall be treated as a pledge or
26 other financing for State tax purposes, including State and
27 local income and franchise taxes, unless the documents
28 governing such transfer specifically state that the transfer
29 is intended to be treated otherwise.
30 (225 ILCS 5/18-111 new)
31 Sec. 18-111. Limitations on issuance of transitional
32 funding orders, collection of instrument funding charges, and
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1 use of proceeds from issuance of transitional funding
2 instruments and grantee instruments.
3 Notwithstanding any other provisions of this Article
4 XVIII:
5 (1) The Commission shall be prohibited from issuing any
6 transitional funding order prior to January 1, 1998, and no
7 electric utility shall issue any transitional funding
8 instrument or grantee instrument, prior to August 1, 1998, or
9 after December 31, 2004.
10 (2) The Commission shall be authorized to include in any
11 transitional funding order an expiration date after which
12 date the electric utility shall no longer be authorized to
13 issue transitional funding instruments or grantee instruments
14 pursuant to such order, provided, that any such expiration
15 date specified in a transitional funding order shall be no
16 earlier than 24 months following the date of issuance of the
17 relevant transitional funding order.
18 (3) No electric utility shall be allowed to increase its
19 rates for tariffed services, including delivery charges, or
20 its transition charges, above the level or levels which would
21 have been allowed in accordance with this Act if the electric
22 utility were not authorized to impose and collect instrument
23 funding charges.
24 (4) Any transitional funding order issued by the
25 Commission shall set forth, based on the information set
26 forth in the electric utility's application, the procedures
27 to be followed by the electric utility for assuring that
28 proceeds from the issuance of the transitional funding
29 instruments or grantee instruments authorized by such order
30 are applied in accordance with the terms of the order. Any
31 use by an electric utility of the proceeds from issuance of
32 transitional funding instruments or grantee instruments other
33 than in accordance with the purposes specified in the
34 relevant transitional funding order of the Commission,
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1 pursuant to subsection (d) of Section 18-103, shall be void.
2 Section 10. The Public Utilities Act is amended by
3 changing Sections 3-105, 5-104, 6-102, 7-101, 7-102, 7-204,
4 7-206, 8-406, 8-503, 8-510, 9-201.5, 9-220, 9-244, and 10-113
5 and adding Section 4-404 as follows:
6 (220 ILCS 5/3-105) (from Ch. 111 2/3, par. 3-105)
7 Sec. 3-105. Public utility. "Public utility" means and
8 includes, except where otherwise expressly provided in this
9 Section, every corporation, company, limited liability
10 company, association, joint stock company or association,
11 firm, partnership or individual, their lessees, trustees, or
12 receivers appointed by any court whatsoever that owns,
13 controls, operates or manages, within this State, directly or
14 indirectly, for public use, any plant, equipment or property
15 used or to be used for or in connection with, or owns or
16 controls any franchise, license, permit or right to engage
17 in:
18 a. the production, storage, transmission, sale,
19 delivery or furnishing of heat, cold, power, electricity,
20 water, or light, except when used solely for
21 communications purposes;
22 b. the disposal of sewerage; or
23 c. the conveyance of oil or gas by pipe line.
24 "Public utility" does not include, however:
25 1. public utilities that are owned and operated by
26 any political subdivision, public institution of higher
27 education or municipal corporation of this State, or
28 public utilities that are owned by such political
29 subdivision, public institution of higher education, or
30 municipal corporation and operated by any of its lessees
31 or operating agents;
32 2. water companies which are purely mutual
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1 concerns, having no rates or charges for services, but
2 paying the operating expenses by assessment upon the
3 members of such a company and no other person;
4 3. electric cooperatives as defined in Section
5 3-119;
6 4. residential natural gas cooperatives that are
7 not-for-profit corporations established for the purpose
8 of administering and operating, on a cooperative basis,
9 the furnishing of natural gas to residences for the
10 benefit of their members who are residential consumers of
11 natural gas. For entities qualifying as residential
12 natural gas cooperatives and recognized by the Illinois
13 Commerce Commission as such, the State shall guarantee
14 legally binding contracts entered into by residential
15 natural gas cooperatives for the express purpose of
16 acquiring natural gas supplies for their members. The
17 Illinois Commerce Commission shall establish rules and
18 regulations providing for such guarantees. The total
19 liability of the State in providing all such guarantees
20 shall not at any time exceed $1,000,000, nor shall the
21 State provide such a guarantee to a residential natural
22 gas cooperative for more than 3 consecutive years;
23 5. sewage disposal companies which provide sewage
24 disposal services on a mutual basis without establishing
25 rates or charges for services, but paying the operating
26 expenses by assessment upon the members of the company
27 and no others;
28 6. (Blank);
29 7. cogeneration facilities, small power production
30 facilities, and other qualifying facilities, as defined
31 in the Public Utility Regulatory Policies Act and
32 regulations promulgated thereunder, except to the extent
33 State regulatory jurisdiction and action is required or
34 authorized by federal law, regulations, regulatory
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1 decisions or the decisions of federal or State courts of
2 competent jurisdiction; and
3 8. the ownership or operation of a facility that
4 sells compressed natural gas at retail to the public for
5 use only as a motor vehicle fuel and the selling of
6 compressed natural gas at retail to the public for use
7 only as a motor vehicle fuel; and.
8 9. alternative retail electric suppliers as defined
9 in Article XVI.
10 For the purpose of the least-cost planning obligations of
11 Section 8-401 and for all of Section 8-402, the Illinois
12 Commerce Commission may, for good cause shown in individual
13 cases, exclude from the meaning of "public utility" the
14 electric operations of any public utility, as otherwise
15 defined in this Act, which serves less than 20,000 electric
16 customers within the State of Illinois, or the gas operations
17 of any public utility, as otherwise defined in this Act,
18 which serves less than 20,000 gas customers within the State
19 of Illinois.
20 (Source: P.A. 88-480; 89-42, eff. 1-1-96.)
21 (220 ILCS 5/4-404 new)
22 Sec. 4-404. Protection of confidential and proprietary
23 information. The Commission shall provide adequate
24 protection for confidential and proprietary information
25 furnished, delivered or filed by any person, corporation or
26 other entity.
27 (220 ILCS 5/5-104) (from Ch. 111 2/3, par. 5-104)
28 Sec. 5-104. Depreciation accounts.
29 (a) The Commission shall have power, after hearing, to
30 require any or all public utilities, except electric public
31 utilities, to keep such accounts as will adequately reflect
32 depreciation, obsolescence and the progress of the arts. The
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1 Commission may, from time to time, ascertain and determine
2 and by order fix the proper and adequate rate of depreciation
3 of the several classes of property for each public utility;
4 and each public utility shall conform its depreciation
5 accounts to the rates so ascertained, determined and fixed.
6 (b) The Commission shall have the power, after hearing,
7 to require any or all electric public utilities to keep such
8 accounts as will adequately reflect depreciation,
9 obsolescence, and the progress of the arts. The Commission
10 may, from time to time, ascertain and determine and by order
11 fix the proper and adequate rate of depreciation of the
12 several classes of property for each electric public utility;
13 and each electric public utility shall thereafter, absent
14 further order of the Commission, conform its depreciation
15 accounts to the rates so ascertained, determined and fixed
16 until at least the end of the first full calendar year
17 following the date of such determination.
18 (c) An electric public utility may from time to time
19 alter the annual rates of depreciation, which for purposes of
20 this subsection (c) and subsection (d) shall include
21 amortization, that it applies to its several classes of
22 assets so long as the rates are consistent with generally
23 accepted accounting principles. The electric public utility
24 shall file a statement with the Commission which shall set
25 forth the new rates of depreciation and which shall contain a
26 certification by an independent certified public accountant
27 that the new rates of depreciation are consistent with
28 generally accepted accounting principles. Upon the filing of
29 such statement, the new rates of depreciation shall be deemed
30 to be approved by the Commission as the rates of depreciation
31 to be applied thereafter by the public utility as though an
32 order had been entered pursuant to subsection (b).
33 (d) In any proceeding conducted pursuant to Section
34 9-201 or 9-202 to set an electric public utility's rates for
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1 service, the Commission may determine not to use, in
2 determining the depreciation expense component of the public
3 utility's rates for service, the rates of depreciation
4 established pursuant to subsection (c), if the Commission in
5 that proceeding finds based on the record that different
6 rates of depreciation are required to adequately reflect
7 depreciation, obsolescence and the progress of the arts, and
8 fixes by order and uses for purposes of that proceeding new
9 rates of depreciation to be thereafter employed by the
10 electric public utility until the end of the first full
11 calendar year following the date of the determination and
12 thereafter until altered in accordance with subsection (b) or
13 (c) of this Section.
14 (Source: P.A. 84-617.)
15 (220 ILCS 5/6-102) (from Ch. 111 2/3, par. 6-102)
16 Sec. 6-102. Authorization of issues of stock.
17 (a) Subject to the provisions of this Act and of the
18 order of the Commission issued as provided in this Act, a
19 public utility may issue stocks and stock certificates, and
20 bonds, notes and other evidences of indebtedness payable at
21 periods of more than 12 months after the date thereof for any
22 lawful purpose. However, such public utility shall first have
23 secured from the Commission an order authorizing such issue
24 and stating the amount thereof and the purpose or purposes to
25 which the issue or the proceeds thereof are to be applied,
26 and that in the opinion of the Commission, the money,
27 property or labor to be procured or paid for by such issue is
28 reasonably required for the purpose or purposes specified in
29 the order.
30 (b) The provisions of this subsection (b) shall apply
31 only to (1) any issuances of stock in a cumulative amount,
32 exclusive of any issuances referred to in item (3), that are
33 10% or more in a calendar year or 20% or more in a 24-month
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1 period of the total common stockholders' equity or of the
2 total amount of preferred stock outstanding, as the case may
3 be, of the public utility, and (2) to any issuances of bonds,
4 notes or other evidences of indebtedness in a cumulative
5 principal amount, exclusive of any issuances referred to in
6 item (3), that are 10% or more in a calendar year or 20% or
7 more in a 24-month period of the aggregate principal amount
8 of bonds, notes and other evidences of indebtedness of the
9 public utility outstanding, all as of the date of the
10 issuance, but shall not apply to (3) any issuances of stock
11 or of bonds, notes or other evidences of indebtedness 90% or
12 more of the proceeds of which are to be used by the public
13 utility for purposes of refunding, redeeming or refinancing
14 outstanding issues of stock, bonds, notes or other evidences
15 of indebtedness. To enable it to determine whether it will
16 issue the such order required by subsection (a) of this
17 Section, the Commission may shall hold a hearing and may make
18 such additional inquiry or investigation, and examine such
19 witnesses, books, papers, accounts, documents and contracts
20 and require the filing of such data as it may deem of
21 assistance. The public utility may be required by the
22 Commission to disclose every interest of the directors of
23 such public utility in any transaction under investigation.
24 The Commission shall have power to investigate all such
25 transactions and to inquire into the good faith thereof, to
26 examine books, papers, accounts, documents and contracts of
27 public utilities, construction or other companies or of firms
28 or individuals with whom the public utility shall have had
29 financial transactions, for the purpose of enabling it to
30 verify any statements furnished, and to examine into the
31 actual value of property acquired by or services rendered to
32 such public utility. Before issuing its order, the
33 Commission, when it is deemed necessary by the Commission,
34 shall make an adequate physical valuation of all property of
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1 the public utility, but a valuation already made under proper
2 public supervision may be adopted, either in whole or in
3 part, at the discretion of the Commission; and shall also
4 examine all previously authorized or outstanding securities
5 of the public utility, and fixed charges attached thereto. A
6 statement of the results of such physical valuation, and a
7 statement of the character of all outstanding securities,
8 together with the conditions under which they are held, shall
9 be included in the order. The Commission may require that
10 such information or such part thereof as it thinks proper,
11 shall appear upon the stock, stock certificate, bond, note or
12 other evidence of indebtedness authorized by its order. The
13 Commission may by its order grant permission for the issue of
14 such stock certificates, or bonds, notes or other evidences
15 of indebtedness in the amount applied for, or in a lesser
16 amount, or not at all, and may attach to the exercise of its
17 permission such condition or conditions as it may deem
18 reasonable and necessary. Nothing in this Section shall
19 prevent a public utility from seeking, nor the Commission
20 from approving, a shelf registration plan for issuing
21 securities over a reasonable period in accordance with
22 regulations established by the United States Securities and
23 Exchange Commission. Any securities issued pursuant to an
24 approved shelf registration plan need not be further approved
25 by the Commission so long as they are in compliance with the
26 approved shelf registration plan. The Commission shall have
27 the power to refuse its approval of applications to issue
28 securities, in whole or in part, upon a finding that the
29 issue of such securities would be contrary to public
30 interest. The Commission may also require the public utility
31 to compile for the information of its shareholders such facts
32 in regard to its financial transactions, in such form as the
33 Commission may direct.
34 No public utility shall, without the consent of the
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1 Commission, apply the issue of any stock or stock
2 certificates, or bond, note or other evidence of
3 indebtedness, which was issued pursuant to an order of the
4 Commission entered pursuant to this subsection (b), or any
5 part thereof, or any proceeds thereof, to any purpose not
6 specified in the Commission's order or to any purpose
7 specified in the Commission's order in excess of the amount
8 authorized for such purpose; or issue or dispose of the same
9 on any terms less favorable than those specified in such
10 order, or a modification thereof. The Commission shall have
11 the power to require public utilities to account for the
12 disposition of the proceeds of all sales of stocks and stock
13 certificates, and bonds, notes and other evidences of
14 indebtedness, which were issued pursuant to an order of the
15 Commission entered pursuant to this subsection (b), in such
16 form and detail as it may deem advisable, and to establish
17 such rules and regulations as it may deem reasonable and
18 necessary to insure the disposition of such proceeds for the
19 purpose or purposes specified in its order.
20 (c) A public utility may issue notes, for proper
21 purposes, and not in violation of any provision of this Act
22 or any other Act, payable at periods of not more than 12
23 months after the date of issuance of the same, without the
24 consent of the Commission; but no such note shall, in whole
25 or in part, be renewed or be refunded from the proceeds of
26 any other such note or evidence of indebtedness from time to
27 time without the consent of the Commission for an aggregate
28 period of longer than 2 two years.
29 (d) Any issuance of stock or of bonds, notes or other
30 evidences of indebtedness, other than issuances of notes
31 pursuant to subsection (c) of this Section, which is not
32 subject to subsection (b) of this Section, shall be regulated
33 by the Commission as follows: the public utility shall file
34 with the Commission, at least 15 days before the date of the
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1 issuance, an informational statement setting forth the type
2 and amount of the issue and the purpose or purposes to which
3 the issue or the proceeds thereof are to be applied. Prior
4 to the date of the issuance specified in the public utility's
5 filing, the Commission, if it finds that the issuance is not
6 subject to subsection (b) of this Section, shall issue a
7 written order in conformance with subsection (a) of this
8 Section authorizing the issuance. Notwithstanding any other
9 provisions of this Act, the Commission may delegate its
10 authority to enter the order required by this subsection (d)
11 to a hearing examiner.
12 (e) The Commission shall have no power to authorize the
13 capitalization of the right to be a corporation, or to
14 authorize the capitalization of any franchise, license, or
15 permit whatsoever or the right to own, operate or enjoy any
16 such franchise, license, or permit, in excess of the amount
17 (exclusive of any tax or annual charge) actually paid to the
18 State or to a political subdivision thereof as the
19 consideration for the grant of such franchise, license,
20 permit or right; nor shall any contract for consolidation or
21 lease be capitalized, nor shall any public utility hereafter
22 issue any bonds, notes or other evidences of indebtedness
23 against or as a lien, upon any contract for consolidation or
24 merger.
25 (f) The provisions of this Section shall not apply to
26 public utilities which are not corporations duly incorporated
27 under the laws of this State to the extent that any such
28 public utility may issue stock, bonds, notes or other
29 evidences of indebtedness not directly or indirectly
30 constituting or creating a lien or charge on, or right to
31 profits from, any property used or useful in rendering
32 service within this State. Nothing in this Section or in
33 Section 6-104 of this Act shall be construed to require a
34 common carrier by railroad subject to Part I of the
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1 Interstate Commerce Act, being part of an Act of the 49th
2 Congress of the United States entitled "An Act to Regulate
3 Commerce", as amended, to secure from the Commission
4 authority to issue or execute or deliver any conditional
5 sales contract or similar contract or instrument reserving or
6 retaining title in the seller for all or part of the purchase
7 price of equipment or property used or to be used for or in
8 connection with the transportation of persons or property.
9 (Source: P.A. 84-617.)
10 (220 ILCS 5/7-101) (from Ch. 111 2/3, par. 7-101)
11 Sec. 7-101. Transactions with affiliated interests.
12 (1) The Commission shall have jurisdiction over holders
13 of the voting capital stock of all public utilities under the
14 jurisdiction of the Commission to such extent as may be
15 necessary to enable the Commission to require the disclosure
16 of the identity in respective interests of every owner of any
17 substantial interest in such voting capital stocks. One per
18 centum or more is a substantial interest, within the meaning
19 of this subdivision.
20 (2) (i) Except as provided in subparagraph (ii) of this
21 subsection (2), tThe Commission shall have jurisdiction over
22 affiliated interests having transactions, other than
23 ownership of stock and receipt of dividends thereon, with
24 public utilities under the jurisdiction of the Commission, to
25 the extent of access to all accounts and records of such
26 affiliated interests relating to such transactions, including
27 access to accounts and records of joint or general expenses,
28 any portion of which may be applicable to such transactions;
29 and to the extent of authority to require such reports with
30 respect to such transactions to be submitted by such
31 affiliated interests, as the Commission may prescribe.
32 (ii) The Commission shall have jurisdiction over
33 affiliated interests having transactions, other than
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1 ownership of stock and receipt of dividends thereon, with
2 electric and gas public utilities under the jurisdiction of
3 the Commission, to the extent of access to all accounts and
4 records of such affiliated interests relating to such
5 transactions, including access to accounts and records of
6 joint and general expenses with the electric or gas public
7 utility any portion of which is related to such transactions;
8 and to the extent of authority to require such reports with
9 respect to such transactions to be submitted by such
10 affiliated interests, as the Commission may prescribe;
11 provided, however, that prior to requesting such access or
12 reports from the affiliated interest, the Commission shall
13 first seek to obtain the information that would be included
14 in such accounts, records or reports from the public utility.
15 The Commission shall not have access to any accounts and
16 records of, or require any reports from, an affiliated
17 interest that are not related to a transaction, including
18 without limitation a transfer or exchange of tangible or
19 intangible assets, with the electric or gas public utility.
20 Nothing in this paragraph shall limit the authority of the
21 Commission otherwise provided under this Act to have access
22 to accounts and records of, or to require reports from, the
23 electric or gas public utility or to prescribe guidelines
24 which the electric or gas public utility must follow in
25 allocating costs to transactions with affiliated interests.
26 For the purpose of this Section, the phrase "affiliated
27 interests" means:
28 (a) Every corporation and person owning or holding,
29 directly or indirectly, 10% or more of the voting capital
30 stock of such public utility;
31 (b) Every corporation and person in any chain of
32 successive ownership of 10% or more of voting capital stock;
33 (c) Every corporation, 10% or more of whose voting
34 capital stock is owned by any person or corporation owning
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1 10% or more of the voting capital stock of such public
2 utility, or by any person or corporation in any such chain of
3 successive ownership of 10% or more of voting capital stock;
4 (d) Every corporation, 10% or more of whose voting
5 securities is owned, directly or indirectly by such public
6 utility;
7 (e) Every person who is an elective officer or director
8 of such public utility or of any corporation in any chain of
9 successive ownership of 10% or more of voting capital stock;
10 (f) Every corporation which has one or more elective
11 officers or one or more directors in common with such public
12 utility;
13 (g) Every corporation or person which the Commission may
14 determine as a matter of fact after investigation and hearing
15 is actually exercising any substantial influence over the
16 policies and actions of such public utility even though such
17 influence is not based upon stock holding, stockholders,
18 directors or officers to the extent specified in this
19 Section;
20 (h) Every person or corporation who or which the
21 Commission may determine as a matter of fact after
22 investigation and hearing is actually exercising such
23 substantial influence over the policies and actions of such
24 public utility in conjunction with one or more other
25 corporations or persons with which or whom they are related
26 by ownership or blood relationship or by action in concert
27 that together they are affiliated with such public utility
28 within the meaning of this Section even though no one of them
29 alone is so affiliated.
30 No such person or corporation is affiliated within the
31 meaning of this Section however, if such person or
32 corporation is otherwise subject to the jurisdiction of the
33 Commission or such person or corporation has not had
34 transactions or dealings other than the holding of stock and
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1 the receipt of dividends thereon with such public utility
2 during the 2 year period next preceding.
3 (3) No management, construction, engineering, supply,
4 financial or similar contract and no contract or arrangement
5 for the purchase, sale, lease or exchange of any property or
6 for the furnishing of any service, property or thing,
7 hereafter made with any affiliated interest, as hereinbefore
8 defined, shall be effective unless it has first been filed
9 with and consented to by the Commission or is exempted in
10 accordance with the provisions of this Section or of Section
11 16-111 of this Act. The Commission may condition such
12 approval in such manner as it may deem necessary to safeguard
13 the public interest. If it be found by the Commission, after
14 investigation and a hearing, that any such contract or
15 arrangement is not in the public interest, the Commission may
16 disapprove such contract or arrangement. Every contract or
17 arrangement not consented to or excepted by the Commission as
18 provided for in this Section is void.
19 The consent to, or exemption or waiver of consent to, any
20 contract or arrangement under this Section or Section 16-111
21 as required above, does not constitute approval of payments
22 thereunder for the purpose of computing expense of operation
23 in any rate proceeding. However, the Commission shall not
24 require a public utility to make purchases at prices
25 exceeding the prices offered by an affiliated interest, and
26 the Commission shall not be required to disapprove or
27 disallow, solely on the ground that such payments yield the
28 affiliated interest a return or rate of return in excess of
29 that allowed the public utility, any portion of payments for
30 purchases from an affiliated interest.
31 (4) The Commission may by general rules applicable alike
32 to all public utilities affected thereby waive the filing and
33 necessity for approval of contracts and arrangements
34 described in subparagraph (3) of this Section in cases of (a)
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1 contracts or arrangements made in the ordinary course of
2 business for the employment of officers or employees; (b)
3 contracts or arrangements made in the ordinary course of
4 business for the purchase of services, supplies, or other
5 personal property at prices not exceeding the standard or
6 prevailing market prices, or at prices or rates fixed
7 pursuant to law; (c) contracts or arrangements where the
8 total obligation to be incurred under such contract or
9 arrangement thereunder does not exceed the lesser of (i)
10 $5,000,000 or (ii) 2% of the public utility's receipts from
11 all tariffed services (as defined in Article XVI) in the
12 preceding calendar year $500; (d) the temporary leasing,
13 lending or interchanging of equipment in the ordinary course
14 of business or in case of an emergency; and (e) contracts
15 made by a public utility with a person or corporation whose
16 bid is the most favorable to the public utility, as
17 ascertained by competitive bidding under such rules as may be
18 prescribed by the Commission. If the Commission, after a
19 hearing, finds that any public utility is abusing or has
20 abused such general rule and thereby is evading compliance
21 with the standard established herein, the Commission may
22 require such public utility to thereafter file and receive
23 the Commission's approval upon all such transactions, but
24 that general rule shall remain in full force and effect as to
25 all other public utilities.
26 (Source: P.A. 84-617.)
27 (220 ILCS 5/7-102) (from Ch. 111 2/3, par. 7-102)
28 Sec. 7-102. Transactions requiring Commission approval.
29 Unless the consent and approval of the Commission is first
30 obtained or unless such approval is waived by the Commission
31 or is exempted in accordance with the provisions of this
32 Section or of any other Section of this Act:
33 (a) No 2 or more public utilities may enter into
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1 contracts with each other that will enable such public
2 utilities to operate their lines or plants in connection with
3 each other;
4 (b) No public utility may purchase, lease, or in any
5 other manner acquire control, direct or indirect, over the
6 franchises, licenses, permits, plants, equipment, business or
7 other property of any other public utility;
8 (c) No public utility may assign, transfer, lease,
9 mortgage, sell (by option or otherwise), or otherwise dispose
10 of or encumber the whole or any part of its franchises,
11 licenses, permits, plant, equipment, business, or other
12 property, but the consent and approval of the Commission
13 shall not be required for the sale, lease, assignment or
14 transfer (1) by any public utility of any tangible personal
15 property which is not necessary or useful in the performance
16 of its duties to the public, or (2) by any railroad of any
17 real or tangible personal property;
18 (d) No public utility may by any means, direct or
19 indirect, merge or consolidate its franchises, licenses,
20 permits, plants, equipment, business or other property with
21 that of any other public utility;
22 (e) No public utility may purchase, acquire, take or
23 receive any stock, stock certificates, bonds, notes or other
24 evidences of indebtedness of any other public utility;
25 (f) No public utility may in any manner, directly or
26 indirectly, guarantee the performance of any contract or
27 other obligation of any other person, firm or corporation
28 whatsoever;
29 (g) No public utility may use, appropriate, or divert
30 any of its moneys, property or other resources in or to any
31 business or enterprise which is not, prior to such use,
32 appropriation or diversion essentially and directly connected
33 with or a proper and necessary department or division of the
34 business of such public utility; provided that this
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1 subsection shall not be construed as modifying subsections
2 (a) through (e) of this Section;
3 (h) No public utility may, directly or indirectly,
4 invest, loan or advance, or permit to be invested, loaned or
5 advanced any of its moneys, property or other resources in,
6 for, in behalf of or to any other person, firm, trust, group,
7 association, company or corporation whatsoever, except that
8 no consent or approval by the Commission is necessary for the
9 purchase of stock in development credit corporations
10 organized under the Illinois Development Credit Corporation
11 Act, providing that no such purchase may be made hereunder
12 if, as a result of such purchase, the cumulative purchase
13 price of all such shares owned by the utility would exceed
14 one-fiftieth of one per cent of the utility's gross operating
15 revenue for the preceding calendar year.
16 (i) Any public utility may present to the Commission for
17 approval options or contracts to sell or lease real property,
18 notwithstanding that the value of the property under option
19 may have changed between the date of the option and the
20 subsequent date of sale or lease. If the options or contracts
21 are approved by the Commission, subsequent sales or leases in
22 conformance with those options or contracts may be made by
23 the public utility without any further action by the
24 Commission. If approval of the options or contracts is denied
25 by the Commission, the options or contracts are void and any
26 consideration theretofore paid to the public utility must be
27 refunded within 30 days following disapproval of the
28 application.
29 The proceedings for obtaining the approval of the
30 Commission provided for it in this Section shall be as
31 follows: There shall be filed with the Commission a petition,
32 joint or otherwise, as the case may be, signed and verified
33 by the president, any vice president, secretary, treasurer,
34 comptroller, general manager, or chief engineer of the
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1 respective companies, or by the person or company, as the
2 case may be, clearly setting forth the object and purposes
3 desired, and setting forth the full and complete terms of the
4 proposed assignment, transfer, lease, mortgage, purchase,
5 sale, merger, consolidation, contract or other transaction,
6 as the case may be. Upon the filing of such petition, the
7 Commission shall, if it deems necessary, fix a time and place
8 for the hearing thereon. After such hearing, or in case no
9 hearing is required, if the Commission is satisfied that such
10 petition should reasonably be granted, and that the public
11 will be convenienced thereby, the Commission shall make such
12 order in the premises as it may deem proper and as the
13 circumstances may require, attaching such conditions as it
14 may deem proper, and thereupon it shall be lawful to do the
15 things provided for in such order. The Commission shall
16 impose such conditions as will protect the interest of
17 minority and preferred stockholders.
18 The Commission shall have power by general rules
19 applicable alike to all public utilities, other than electric
20 and gas public utilities, affected thereby to waive the
21 filing and necessity for approval of the following: (a) sales
22 of property involving a consideration of not more than
23 $300,000 for utilities with gross revenues in excess of
24 $50,000,000 annually and a consideration of not more than
25 $100,000 for all other utilities; (b) leases, easements and
26 licenses involving a consideration or rental of not more than
27 $30,000 per year for utilities with gross revenues in excess
28 of $50,000,000 annually and a consideration or rental of not
29 more than $10,000 per year for all other utilities; (c)
30 leases of office building space not required by the public
31 utility in rendering service to the public; (d) the temporary
32 leasing, lending or interchanging of equipment in the
33 ordinary course of business or in case of an emergency; and
34 (e) purchase-money mortgages given by a public utility in
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1 connection with the purchase of tangible personal property
2 where the total obligation to be secured shall be payable
3 within a period not exceeding one year. However, if the
4 Commission, after a hearing, finds that any public utility to
5 which such rule is applicable is abusing or has abused such
6 general rule and thereby is evading compliance with the
7 standard established herein, the Commission shall have power
8 to require such public utility to thereafter file and receive
9 the Commission's approval upon all such transactions as
10 described in this Section, but such general rule shall remain
11 in full force and effect as to all other public utilities to
12 which such rule is applicable.
13 The filing of, and the consent and approval of the
14 Commission for, any assignment, transfer, lease, mortgage,
15 purchase, sale, merger, consolidation, contract or other
16 transaction by an electric or gas public utility with gross
17 revenues in all jurisdictions of $250,000,000 or more
18 annually involving a sale price or annual consideration in an
19 amount of $5,000,000 or less shall not be required. The
20 Commission shall also have the authority, on petition by an
21 electric or gas public utility with gross revenues in all
22 jurisdictions of $250,000,000 or more annually, to establish
23 by order higher thresholds than the foregoing for the
24 requirement of approval of transactions by the Commission
25 pursuant to this Section for the electric or gas public
26 utility, but no greater than 1% of the electric or gas public
27 utility's average total gross utility plant in service in the
28 case of sale, assignment or acquisition of property, or 2.5%
29 of the electric or gas public utility's total revenue in the
30 case of other sales price or annual consideration, in each
31 case based on the preceding calendar year, and subject to the
32 power of the Commission, after notice and hearing, to further
33 revise those thresholds at a later date. In addition to the
34 foregoing, the Commission shall have power by general rules
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1 applicable alike to all electric and gas public utilities
2 affected thereby to waive the filing and necessity for
3 approval of the following: (a) sales of property involving a
4 consideration of $100,000 or less for electric and gas
5 utilities with gross revenues in all jurisdictions of less
6 than $250,000,000 annually; (b) leases, easements and
7 licenses involving a consideration or rental of not more than
8 $10,000 per year for electric and gas utilities with gross
9 revenues in all jurisdictions of less than $250,000,000
10 annually; (c) leases of office building space not required by
11 the electric or gas public utility in rendering service to
12 the public; (d) the temporary leasing, lending or
13 interchanging of equipment in the ordinary course of business
14 or in the case of an emergency; and (e) purchase-money
15 mortgages given by an electric or gas public utility in
16 connection with the purchase of tangible personal property
17 where the total obligation to be secured shall be payable
18 within a period of one year or less. However, if the
19 Commission, after a hearing, finds that any electric or gas
20 public utility is abusing or has abused such general rule and
21 thereby is evading compliance with the standard established
22 herein, the Commission shall have power to require such
23 electric or gas public utility to thereafter file and receive
24 the Commission's approval upon all such transactions as
25 described in this Section and not exempted pursuant to the
26 first sentence of this paragraph or to subsection (g) of
27 Section 16-111 of this Act, but such general rule shall
28 remain in full force and effect as to all other electric and
29 gas public utilities.
30 Every assignment, transfer, lease, mortgage, sale or
31 other disposition or encumbrance of the whole or any part of
32 the franchises, licenses, permits, plant, equipment, business
33 or other property of any public utility, or any merger or
34 consolidation thereof, and every contract, purchase of stock,
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1 or other transaction referred to in this Section and not
2 exempted in accordance with the provisions of the immediately
3 preceding paragraph of this Section, made otherwise than in
4 accordance with an order of the Commission authorizing the
5 same, except as provided in this Section, shall be void. The
6 provisions of this Section shall not apply to any
7 transactions by or with a political subdivision or municipal
8 corporation of this State.
9 The provisions of this Section do not apply to the
10 purchase or sale of emission allowances created under and
11 defined in Title IV of the federal Clean Air Act Amendments
12 of 1990 (P.L. 101-549), as amended.
13 (Source: P.A. 88-604, eff. 9-1-94; 89-99, eff. 7-7-95.)
14 (220 ILCS 5/7-204) (from Ch. 111 2/3, par. 7-204)
15 Sec. 7-204. Reorganization; defined; Commission approval
16 therefore.
17 (a) For purposes of this Section, "reorganization" means
18 any transaction which, regardless of the means by which it is
19 accomplished, results in a change in the ownership of a
20 majority of the voting capital stock of an Illinois public
21 utility; or the ownership or control of any entity which owns
22 or controls a majority of the voting capital stock of a
23 public utility; or by which 2 public utilities merge, or by
24 which a public utility acquires substantially all of the
25 assets of another public utility; provided, however, that
26 "reorganization" as used in this Section shall not include a
27 mortgage or pledge transaction entered into to secure a bona
28 fide borrowing by the party granting the mortgage or making
29 the pledge.
30 In addition to the foregoing, "reorganization" shall
31 include for purposes of this Section any transaction which,
32 regardless of the means by which it its is accomplished, will
33 have the effect of terminating the affiliated interest status
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1 of any entity as defined in paragraphs (a), (b), (c) or (d)
2 of subsection (2) of Section 7-101 of this Act where such
3 entity had transactions with the public utility, in the 12
4 twelve calendar months immediately preceding the date of
5 termination of such affiliated interest status subject to
6 subsection (3) of Section 7-101 of this Act with a value
7 greater than 15% of the public utility's revenues for that
8 same 12-month twelve-month period. If the proposed
9 transaction would have the effect of terminating the
10 affiliated interest status of more than one Illinois public
11 utility, the utility with the greatest revenues for the
12 12-month twelve-month period shall be used to determine
13 whether such proposed transaction is a reorganization for the
14 purposes of this Section. The Commission shall have
15 jurisdiction over any reorganization as defined herein.
16 (b) No reorganization shall take place without prior
17 Commission approval. The Commission shall not approve any
18 proposed reorganization if the Commission finds, after notice
19 and hearing, that the reorganization will adversely affect
20 the utility's ability to perform its duties under this Act.
21 In reviewing any proposed reorganization, the Commission must
22 find that:
23 (1) (a) the proposed reorganization will not
24 diminish the utility's ability to provide adequate,
25 reliable, efficient, safe and least-cost public utility
26 service;
27 (2) (b) the proposed reorganization will not result
28 in the unjustified subsidization of non-utility
29 activities by the utility or its customers;
30 (3) (c) costs and facilities are fairly and
31 reasonably allocated between utility and non-utility
32 activities in such a manner that the Commission may
33 identify those costs and facilities which are properly
34 included by the utility for ratemaking purposes;
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1 (4) (d) the proposed reorganization will not
2 significantly impair the utility's ability to raise
3 necessary capital on reasonable terms or to maintain a
4 reasonable capital structure;
5 (5) (e) the utility will remain subject to all
6 applicable laws, regulations, rules, decisions and
7 policies governing the regulation of Illinois public
8 utilities.
9 (6) the proposed reorganization is not likely to
10 have a significant adverse effect on competition in those
11 markets over which the Commission has jurisdiction;
12 (7) the proposed reorganization is not likely to
13 result in any adverse rate impacts on retail customers.
14 (c) The Commission shall not approve a reorganization
15 without ruling on: (i) the allocation of any savings
16 resulting from the proposed reorganization; and (ii) whether
17 the companies should be allowed to recover any costs incurred
18 in accomplishing the proposed reorganization and, if so, the
19 amount of costs eligible for recovery and how the costs will
20 be allocated.
21 (d) The Commission shall issue its Order approving or
22 denying the proposed reorganization within 11 months after
23 the application is filed. The Commission may extend the
24 deadline for a period equivalent to the length of any delay
25 which the Commission finds to have been caused by the
26 Applicant's failure to provide data or information requested
27 by the Commission or that the Commission ordered the
28 Applicant to provide to the parties. The Commission may also
29 extend the deadline by an additional period not to exceed 3
30 months to consider amendments to the Applicant's filing, or
31 to consider reasonably unforeseeable changes in circumstances
32 subsequent to the Applicant's initial filing.
33 (e) Subsections (c) and (d) and subparagraphs (6) and
34 (7) of subsection (b) of this Section shall apply only to
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1 merger applications submitted to the Commission subsequent to
2 April 23, 1997. No other Commission approvals shall be
3 required for mergers that are subject to this Section.
4 (f) In approving any proposed reorganization pursuant to
5 this Section the Commission may impose such terms, conditions
6 or requirements as, in its judgment, are necessary to protect
7 the interests of the public utility and its customers.
8 (Source: P.A. 84-617; 84-1025.)
9 (220 ILCS 5/7-206) (from Ch. 111 2/3, par. 7-206)
10 Sec. 7-206. Separate accounts for nonpublic business of
11 public utility. The Commission may require every public
12 utility engaged directly or indirectly in any other than a
13 public utility business, as defined by law, to keep
14 separately in like manner and form the accounts of all such
15 other business, and the Commission may provide for the
16 examination and inspection of the books, accounts, papers and
17 records of such other business, in so far as may be necessary
18 to enforce any provisions of this Act. The Commission shall
19 have the power to inquire as to and prescribe the
20 apportionment of capitalization, earnings, debts and expenses
21 fairly and justly to be awarded to or borne by the ownership,
22 operation, management or control of such public utility as
23 distinguished from such other business. Provided, however,
24 that an electric or gas public utility shall not be required
25 to maintain the accounts of any non-public utility business
26 in the same manner and form as the electric or gas public
27 utility is required to keep the accounts of its public
28 utility business unless expressly ordered by the Commission.
29 (Source: P.A. 84-617.)
30 (220 ILCS 5/8-406) (from Ch. 111 2/3, par. 8-406)
31 Sec. 8-406. Certificate of public convenience and
32 necessity.
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1 (a) No public utility not owning any city or village
2 franchise nor engaged in performing any public service or in
3 furnishing any product or commodity within this State as of
4 July 1, 1921 and not possessing a certificate of public
5 convenience and necessity from the Illinois Commerce
6 Commission, the State Public Utilities Commission or the
7 Public Utilities Commission, at the time this amendatory Act
8 of 1985 goes into effect, shall transact any business in this
9 State until it shall have obtained a certificate from the
10 Commission that public convenience and necessity require the
11 transaction of such business.
12 (b) No public utility shall begin the construction of
13 any new plant, equipment, property or facility which is not
14 in substitution of any existing plant, equipment, property or
15 facility or any extension or alteration thereof or in
16 addition thereto, and which in the case of gas and electric
17 utilities may affect the energy plan of the utility unless
18 and until it shall have obtained from the Commission a
19 certificate that public convenience and necessity require
20 such construction. Whenever after a hearing the Commission
21 determines that any new construction or the transaction of
22 any business by a public utility will promote the public
23 convenience and is necessary thereto, it shall have the power
24 to issue certificates of public convenience and necessity.
25 The Commission shall determine that proposed construction
26 will promote the public convenience and necessity only if the
27 utility demonstrates: (1) that the proposed construction is
28 necessary to provide adequate, reliable, and efficient
29 service to its customers and is the least-cost means of
30 satisfying the service needs of its customers; (2) with
31 respect to gas and electric utilities, that the proposed
32 construction is consistent with the most recent energy plan
33 adopted by the Commission for the utility and the State, as
34 updated; (2) (3) that the utility is capable of efficiently
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1 managing and supervising the construction process and has
2 taken sufficient action to ensure adequate and efficient
3 construction and supervision thereof; and (3) (4) that the
4 utility is capable of financing the proposed construction
5 without significant adverse financial consequences for the
6 utility or its customers. If the Commission finds that the
7 public convenience and necessity requires a new electric
8 generating facility to be added by the utility, the
9 Commission shall evaluate the proposed construction in
10 comparison with the merits of a facility designed to use
11 Illinois coal in an environmentally acceptable way, and shall
12 consider the economic impact on employment directly or
13 indirectly related to the production of coal in Illinois over
14 the entire period of time affected by the proposed
15 construction or its alternatives.
16 (c) After the effective date of this amendatory Act of
17 1987, no construction shall commence on any new nuclear power
18 plant to be located within this State, and no certificate of
19 public convenience and necessity or other authorization shall
20 be issued therefor by the Commission, until the Director of
21 the Illinois Environmental Protection Agency finds that the
22 United States Government, through its authorized agency, has
23 identified and approved a demonstrable technology or means
24 for the disposal of high level nuclear waste, or until such
25 construction has been specifically approved by a statute
26 enacted by the General Assembly.
27 As used in this Section, "high level nuclear waste" means
28 those aqueous wastes resulting from the operation of the
29 first cycle of the solvent extraction system or equivalent
30 and the concentrated wastes of the subsequent extraction
31 cycles or equivalent in a facility for reprocessing
32 irradiated reactor fuel and shall include spent fuel
33 assemblies prior to fuel reprocessing.
34 (d) In making its determination, the Commission shall
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1 attach primary weight to the cost or cost savings to the
2 customers of the utility. The Commission may consider any or
3 all factors which will or may affect such cost or cost
4 savings.
5 (e) The Commission may issue a temporary certificate
6 which shall remain in force not to exceed one year in cases
7 of emergency, to assure maintenance of adequate service or to
8 serve particular customers, without notice or hearing,
9 pending the determination of an application for a
10 certificate, and may by regulation exempt from the
11 requirements of this Section temporary acts or operations for
12 which the issuance of a certificate will not be required in
13 the public interest.
14 A public utility shall not be required to obtain but may
15 apply for and obtain a certificate of public convenience and
16 necessity pursuant to this Section with respect to any matter
17 as to which it has received the authorization or order of the
18 Commission under the Electric Supplier Act, and any such
19 authorization or order granted a public utility by the
20 Commission under that Act shall as between public utilities
21 be deemed to be, and shall have except as provided in that
22 Act the same force and effect as, a certificate of public
23 convenience and necessity issued pursuant to this Section.
24 No electric cooperative shall be made or shall become a
25 party to or shall be entitled to be heard or to otherwise
26 appear or participate in any proceeding initiated under this
27 Section for authorization of power plant construction and as
28 to matters as to which a remedy is available under The
29 Electric Supplier Act.
30 (f) Such certificates may be altered or modified by the
31 Commission, upon its own motion or upon application by the
32 person or corporation affected. Unless exercised within a
33 period of 2 years from the grant thereof authority conferred
34 by a certificate of convenience and necessity issued by the
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1 Commission shall be null and void.
2 No certificate of public convenience and necessity shall
3 be construed as granting a monopoly or an exclusive
4 privilege, immunity or franchise.
5 (Source: P.A. 85-377.)
6 (220 ILCS 5/8-503) (from Ch. 111 2/3, par. 8-503)
7 Sec. 8-503. Whenever the Commission, after a hearing,
8 shall find that additions, extensions, repairs or
9 improvements to, or changes in, the existing plant,
10 equipment, apparatus, facilities or other physical property
11 of any public utility or of any 2 two or more public
12 utilities are necessary and ought reasonably to be made or
13 that a new structure or structures is or are necessary and
14 should be erected, to promote the security or convenience of
15 its employees or the public, or in any other way to secure
16 adequate service or facilities, the Commission shall make and
17 serve an order authorizing or directing that such additions,
18 extensions, repairs, improvements or changes be made, or such
19 structure or structures be erected at the location, in the
20 manner and within the time specified in said order; provided,
21 however, that the Commission shall have no authority to order
22 the construction, addition or extension of any electric
23 generating plant unless the public utility requests a
24 certificate for the construction of the plant pursuant to
25 Section 8-406 and in conjunction with such request also
26 requests the entry of an order under this Section. If any
27 additions, extensions, repairs, improvements or changes, or
28 any new structure or structures, which the Commission has
29 authorized or ordered to be erected, require joint action by
30 2 two or more public utilities, the Commission shall notify
31 the said public utilities that such additions, extensions,
32 repairs, improvements or changes or new structure or
33 structures have been authorized or ordered and that the same
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1 shall be made at the joint cost whereupon the said public
2 utilities shall have such reasonable time as the Commission
3 may grant within which to agree upon the apportionment or
4 division of cost of such additions, extensions, repairs,
5 improvements or changes or new structure or structures, which
6 each shall bear. If at the expiration of such time such
7 public utilities shall fail to file with the Commission a
8 statement that an agreement has been made for a division or
9 apportionment of the cost or expense of such additions,
10 extensions, repairs, improvements or changes, or new
11 structure or structures, the Commission shall have authority,
12 after further hearing, to make an order fixing the proportion
13 of such cost or expense to be borne by each public utility
14 and the manner in which the same shall be paid or secured.
15 Nothing in this Act shall prevent the Commission, upon
16 its own motion or upon petition, from ordering, after a
17 hearing, the extension, construction, connection or
18 interconnection of plant, equipment, pipe, line, facilities
19 or other physical property of a public utility in whatever
20 configuration the Commission finds necessary to ensure that
21 natural gas is made available to consumers at no increased
22 cost to the customers of the utility supplying the gas.
23 Whenever the Commission finds, after a hearing, that the
24 public convenience or necessity requires it, the Commission
25 may order public utilities subject to its jurisdiction to
26 work jointly (1) for the purpose of purchasing and
27 distributing natural gas or gas substitutes, provided it
28 shall not increase the cost of gas to the customers of the
29 participating utilities, or (2) for any other reasonable
30 purpose.
31 (Source: P.A. 84-617.)
32 (220 ILCS 5/8-510) (from Ch. 111 2/3, par. 8-510)
33 Sec. 8-510. Land surveys. For the purpose of making land
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1 surveys, any public utility that has been granted a
2 certificate of public convenience and necessity by, or
3 received an order under Section 8-503 of this Act from, the
4 Commission may, 30 days after providing written notice to the
5 owner thereof by registered mail, enter upon the property of
6 any owner who has refused permission for entrance upon that
7 property, but subject to responsibility for all damages which
8 may be inflicted thereby.
9 (Source: P.A. 84-617.)
10 (220 ILCS 5/9-201.5)
11 Sec. 9-201.5. Decommissioning nuclear power plants;
12 rates.
13 (a) The Commission may after hearing, in a rate case or
14 otherwise, authorize the institution of rate provisions or
15 tariffs that increase or decrease charges to customers to
16 reflect changes in, or additional or reduced costs of,
17 decommissioning nuclear power plants, including accruals for
18 estimates of those costs, irrespective of any changes in
19 other costs or revenues; provided the revenues collected
20 under such rates or tariffs are used to recover costs
21 associated with contributions to appropriate decommissioning
22 trust funds or to reduce the amounts to be charged under such
23 rates or tariffs in the future. These provisions or tariffs
24 shall hereinafter be referred to as "decommissioning rates".
25 (b) A public utility that does not have a
26 decommissioning rate in effect on the effective date of this
27 amendatory Act of 1994 may not place a decommissioning rate
28 in effect before January 1, 1995. Changes in charges under a
29 decommissioning rate shall not be subject to the notice and
30 filing requirements of subsection (a) of Section 9-201 of
31 this Act, but a decommissioning rate of a utility that does
32 not have such a rate in effect before the effective date of
33 this amendatory Act of 1994 shall provide that no increase in
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1 charges under that rate may take effect until 60 days after
2 the utility provides the proposed increased charge to the
3 Commission for review. The Commission may require that a
4 decommissioning rate contain provisions for reconciling
5 amounts collected under the rate with both reasonably
6 projected costs and actual costs prudently incurred. As used
7 in this Section, "decommissioning costs" and "decommissioning
8 trust fund" have the same meaning as in Section 8-508.1 of
9 this Act.
10 (c) Nothing contained in this amendatory Act of 1994
11 shall affect any determination of the authority of the
12 Commission before the effective date of this amendatory Act
13 of 1994. Nothing contained in this amendatory Act of 1994
14 shall be used in any determination of the authority of the
15 Commission after the effective date of this amendatory Act of
16 1994, except with respect to decommissioning rates.
17 (d) A decommissioning rate authorized by the Commission
18 under this Section and the decommissioning cost studies
19 underlying the rate shall be subject to hearing and review,
20 in a rate case or otherwise, not less than once every 6
21 years, and the decommissioning rate shall be discontinued by
22 the Commission unless specifically approved for continuation
23 by the Commission after the hearing.
24 (Source: P.A. 88-653, eff. 1-1-95.)
25 (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220)
26 Sec. 9-220. Rate changes based on changes in fuel costs.
27 (a) Notwithstanding the provisions of Section 9-201, the
28 Commission may authorize the increase or decrease of rates
29 and charges based upon changes in the cost of fuel used in
30 the generation or production of electric power, changes in
31 the cost of purchased power, or changes in the cost of
32 purchased gas through the application of fuel adjustment
33 clauses or purchased gas adjustment clauses. The Commission
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1 may also authorize the increase or decrease of rates and
2 charges based upon expenditures or revenues resulting from
3 the purchase or sale of emission allowances created under the
4 federal Clean Air Act Amendments of 1990, as defined in
5 Section 8-402.1, through such fuel adjustment clauses, as a
6 cost of fuel. For the purposes of this paragraph, cost of
7 fuel used in the generation or production of electric power
8 shall include the amount of any fees paid by the utility for
9 the implementation and operation of a process for the
10 desulfurization of the flue gas when burning high sulfur coal
11 at any location within the State of Illinois irrespective of
12 the attainment status designation of such location, except
13 for any fees or costs related to a service contract which is
14 part of a utility's Clean Air Act compliance plan approved
15 pursuant to Section 8-402.1, to the extent that recovery of
16 comparable costs would not be permitted under this Section if
17 incurred directly by a utility owning and operating such a
18 facility; but shall not include transportation costs of coal
19 (i) except to the extent that for contracts entered into on
20 and after the effective date of this amendatory Act of 1997,
21 the cost of the coal, including transportation costs,
22 constitutes the lowest cost for adequate and reliable fuel
23 supply reasonably available to the public utility in
24 comparison to the cost, including transportation costs, of
25 other adequate and reliable sources of fuel supply reasonably
26 available to the public utility, or (ii) except as otherwise
27 provided in the next 3 sentences of this paragraph. Such
28 costs of fuel shall, when requested by a utility or at the
29 conclusion of the utility's next general electric rate
30 proceeding, whichever shall first occur, include
31 transportation costs of coal purchased under existing coal
32 purchase contracts. For purposes of this paragraph "existing
33 coal purchase contracts" means contracts for the purchase of
34 coal in effect on the effective date of this amendatory Act
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1 of 1991, as such contracts may thereafter be amended, but
2 only to the extent that any such amendment does not increase
3 the aggregate quantity of coal to be purchased under such
4 contract. Nothing herein shall authorize an electric utility
5 to recover through its fuel adjustment clause any amounts of
6 transportation costs of coal that were included in the
7 revenue requirement used to set base rates in its most recent
8 general rate proceeding. Cost shall be based upon uniformly
9 applied accounting principles. Annually, the Commission shall
10 initiate public hearings to determine whether the clauses
11 reflect actual costs of fuel, gas, power, or coal
12 transportation purchased to determine whether such purchases
13 were prudent, and to reconcile any amounts collected with the
14 actual costs of fuel, power, gas, or coal transportation
15 prudently purchased. In each such proceeding, the burden of
16 proof shall be upon the utility to establish the prudence
17 prudency of its cost of fuel, power, gas, or coal
18 transportation purchases and costs. The Commission shall
19 issue its final order in each such annual proceeding for an
20 electric utility by December 31 of the year immediately
21 following the year to which the proceeding pertains,
22 provided, that the Commission shall issue its final order
23 with respect to such annual proceeding for the years 1996 and
24 earlier by December 31, 1998.
25 (b) A public utility providing electric service, other
26 than a public utility described in subsections (e) or (f) of
27 this Section, may at any time during the mandatory transition
28 period file with the Commission proposed tariff sheets that
29 eliminate the public utility's fuel adjustment clause and
30 adjust the public utility's base rate tariffs by the amount
31 necessary for the base fuel component of the base rates to
32 recover the public utility's average fuel and power supply
33 costs per kilowatt-hour for the 2 most recent years for which
34 the Commission has issued final orders in annual proceedings
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1 pursuant to subsection (a), where the average fuel and power
2 supply costs per kilowatt-hour shall be calculated as the sum
3 of the public utility's prudent and allowable fuel and power
4 supply costs as found by the Commission in the 2 proceedings
5 divided by the public utility's actual jurisdictional
6 kilowatt-hour sales for those 2 years. Notwithstanding any
7 contrary or inconsistent provisions in Section 9-201 of this
8 Act, in subsection (a) of this Section or in any rules or
9 regulations promulgated by the Commission pursuant to
10 subsection (g) of this Section, the Commission shall review
11 and shall by order approve, or approve as modified, the
12 proposed tariff sheets within 60 days after the date of the
13 public utility's filing. The Commission may modify the
14 public utility's proposed tariff sheets only to the extent
15 the Commission finds necessary to achieve conformance to the
16 requirements of this subsection (b). During the 5 years
17 following the date of the Commission's order, but in any
18 event no earlier than January 1, 2005, a public utility whose
19 fuel adjustment clause has been eliminated pursuant to this
20 subsection shall not file proposed tariff sheets seeking, or
21 otherwise petition the Commission for, reinstatement of a
22 fuel adjustment clause.
23 (c) Notwithstanding any contrary or inconsistent
24 provisions in Section 9-201 of this Act, in subsection (a) of
25 this Section or in any rules or regulations promulgated by
26 the Commission pursuant to subsection (g) of this Section, a
27 public utility providing electric service, other than a
28 public utility described in subsection (e) or (f) of this
29 Section, may at any time during the mandatory transition
30 period file with the Commission proposed tariff sheets that
31 establish the rate per kilowatt-hour to be applied pursuant
32 to the public utility's fuel adjustment clause at the average
33 value for such rate during the preceding 24 months, provided
34 that such average rate results in a credit to customers'
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1 bills, without making any revisions to the public utility's
2 base rate tariffs. The proposed tariff sheets shall
3 establish the fuel adjustment rate for a specific time period
4 of at least 3 years but not more than 5 years, provided that
5 the terms and conditions for any reinstatement earlier than 5
6 years shall be set forth in the proposed tariff sheets and
7 subject to modification or approval by the Commission. The
8 Commission shall review and shall by order approve the
9 proposed tariff sheets if it finds that the requirements of
10 this subsection are met. The Commission shall not conduct
11 the annual hearings specified in the last 3 sentences of
12 subsection (a) of this Section for the utility for the period
13 that the factor established pursuant to this subsection is in
14 effect.
15 (d) A public utility providing electric service, or a
16 public utility providing gas service may file with the
17 Commission proposed tariff sheets that eliminate the public
18 utility's fuel or purchased gas adjustment clause and adjust
19 the public utility's base rate tariffs to provide for
20 recovery of power supply costs or gas supply costs that would
21 have been recovered through such clause; provided, that the
22 provisions of this subsection (d) shall not be available to a
23 public utility described in subsections (e) or (f) of this
24 Section to eliminate its fuel adjustment clause.
25 Notwithstanding any contrary or inconsistent provisions in
26 Section 9-201 of this Act, in subsection (a) of this Section,
27 or in any rules or regulations promulgated by the Commission
28 pursuant to subsection (g) of this Section, the Commission
29 shall review and shall by order approve, or approve as
30 modified in the Commission's order, the proposed tariff
31 sheets within 240 days after the date of the public utility's
32 filing. The Commission's order shall approve rates and
33 charges that the Commission, based on information in the
34 public utility's filing or on the record if a hearing is held
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1 by the Commission, finds will recover the reasonable, prudent
2 and necessary jurisdictional power supply costs or gas supply
3 costs incurred or to be incurred by the public utility during
4 a 12 month period found by the Commission to be appropriate
5 for these purposes, provided, that such period shall be
6 either (i) a 12 month historical period occurring during the
7 15 months ending on the date of the public utility's filing,
8 or (ii) a 12 month future period ending no later than 15
9 months following the date of the public utility's filing.
10 The public utility shall include with its tariff filing
11 information showing both (1) its actual jurisdictional power
12 supply costs or gas supply costs for a 12 month historical
13 period conforming to (i) above and (2) its projected
14 jurisdictional power supply costs or gas supply costs for a
15 future 12 month period conforming to (ii) above. If the
16 Commission's order requires modifications in the tariff
17 sheets filed by the public utility, the public utility shall
18 have 7 days following the date of the order to notify the
19 Commission whether the public utility will implement the
20 modified tariffs or elect to continue its fuel or purchased
21 gas adjustment clause in force as though no order had been
22 entered. The Commission's order shall provide for any
23 reconciliation of power supply costs or gas supply costs, as
24 the case may be, and associated revenues through the date
25 that the public utility's fuel or purchased gas adjustment
26 clause is eliminated. During the 5 years following the date
27 of the Commission's order, a public utility whose fuel or
28 purchased gas adjustment clause has been eliminated pursuant
29 to this subsection shall not file proposed tariff sheets
30 seeking, or otherwise petition the Commission for,
31 reinstatement or adoption of a fuel or purchased gas
32 adjustment clause. Nothing in this subsection (d) shall be
33 construed as limiting the Commission's authority to eliminate
34 a public utility's fuel adjustment clause or purchased gas
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1 adjustment clause in accordance with any other applicable
2 provisions of this Act.
3 (e) Notwithstanding any contrary or inconsistent
4 provisions in Section 9-201 of this Act, in subsection (a)
5 of this Section, or in any rules promulgated by the
6 Commission pursuant to subsection (g) of this Section, a
7 public utility providing electric service to more than
8 1,000,000 customers in this State may, within the first 6
9 months after the effective date of this amendatory Act of
10 1997, file with the Commission proposed tariff sheets that
11 eliminate, effective January 1, 1997, the public utility's
12 fuel adjustment clause without adjusting its base rates, and
13 such tariff sheets shall be effective upon filing. To the
14 extent the application of the fuel adjustment clause had
15 resulted in net charges to customers after January 1, 1997,
16 the utility shall also file a tariff sheet that provides for
17 a refund stated on a per kilowatt-hour basis of such charges
18 over a period not to exceed 6 months; provided however, that
19 such refund shall not include the proportional amounts of
20 taxes paid under the Use Tax Act, Service Use Tax Act,
21 Service Occupation Tax Act, and Retailers' Occupation Tax Act
22 on fuel used in generation. The Commission shall issue an
23 order within 45 days after the date of the public utility's
24 filing approving or approving as modified such tariff sheet.
25 If the fuel adjustment clause is eliminated pursuant to this
26 subsection, the Commission shall not conduct the annual
27 hearings specified in the last 3 sentences of subsection (a)
28 of this Section for the utility for any period after
29 December 31, 1996 and prior to any reinstatement of such
30 clause. A public utility whose fuel adjustment clause has
31 been eliminated pursuant to this subsection shall not file a
32 proposed tariff sheet seeking, or otherwise petition the
33 Commission for, reinstatement of the fuel adjustment clause
34 prior to January 1, 2005.
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1 (f) Notwithstanding any contrary or inconsistent
2 provisions in Section 9-201 of this Act, in subsection (a) of
3 this Section, or in any rules or regulations promulgated by
4 the Commission pursuant to subsection (g) of this Section, a
5 public utility providing electric service to more than
6 500,000 customers but fewer than 1,000,000 customers in this
7 State may, within the first 6 months after the effective date
8 of this amendatory Act of 1997, file with the Commission
9 proposed tariff sheets that eliminate, effective January 1,
10 1997, the public utility's fuel adjustment clause and adjust
11 its base rates by the amount necessary for the base fuel
12 component of the base rates to recover 91% of the public
13 utility's average fuel and power supply costs for the 2 most
14 recent years for which the Commission, as of January 1, 1997,
15 has issued final orders in annual proceedings pursuant to
16 subsection (a), where the average fuel and power supply costs
17 per kilowatt-hour shall be calculated as the sum of the
18 public utility's prudent and allowable fuel and power supply
19 costs as found by the Commission in the 2 proceedings divided
20 by the public utility's actual jurisdictional kilowatt-hour
21 sales for those 2 years, provided, that such tariff sheets
22 shall be effective upon filing. To the extent the
23 application of the fuel adjustment clause had resulted in net
24 charges to customers after January 1, 1997, the utility shall
25 also file a tariff sheet that provides for a refund stated on
26 a per kilowatt-hour basis of such charges over a period not
27 to exceed 6 months. Provided however, that such refund shall
28 not include the proportional amounts of taxes paid under the
29 Use Tax Act, Service Use Tax Act, Service Occupation Tax Act,
30 and Retailers' Occupation Tax Act on fuel used in generation.
31 The Commission shall issue an order within 45 days after the
32 date of the public utility's filing approving or approving as
33 modified such tariff sheet. If the fuel adjustment clause is
34 eliminated pursuant to this subsection, the Commission shall
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1 not conduct the annual hearings specified in the last 3
2 sentences of subsection (a) of this Section for the utility
3 for any period after December 31, 1996 and prior to any
4 reinstatement of such clause. A public utility whose fuel
5 adjustment clause has been eliminated pursuant to this
6 subsection shall not file a proposed tariff sheet seeking, or
7 otherwise petition the Commission for, reinstatement of the
8 fuel adjustment clause prior to January 1, 2005.
9 (g) The Commission shall have authority to promulgate
10 rules and regulations to carry out the provisions of this
11 Section paragraph.
12 (Source: P.A. 87-173; 88-488.)
13 (220 ILCS 5/9-244) (from Ch. 111 2/3, par. 9-244)
14 Sec. 9-244. Alternative rate regulation.
15 (a) Notwithstanding any of the ratemaking provisions of
16 this Article IX or other Sections of this Act, or the
17 Commission's rules that are deemed to require rate of return
18 regulation, and except as provided in Article XVI, the
19 Commission, upon petition by an electric or gas public
20 utility, and after notice and hearing, may authorize for some
21 or all of the regulated services of that utility, the
22 implementation of one or more programs consisting of (i)
23 alternatives to rate of return regulation, including but not
24 limited to earnings sharing, rate moratoria, price caps or
25 flexible rate options, or (ii) other regulatory mechanisms
26 that reward or penalize the utility through the adjustment of
27 rates based on utility performance. In the case of other
28 regulatory mechanisms that reward or penalize utilities
29 through the adjustment of rates based on utility performance,
30 the utility's performance shall be compared to standards
31 established in the Commission order authorizing the
32 implementation of other regulatory mechanisms. The
33 Commission is specifically authorized to approve in response
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1 to such petitions different forms of alternatives to rate of
2 return regulation or other regulatory mechanisms to fit the
3 particular characteristics and requirements of different
4 utilities and their service territories.
5 (b) The Commission shall approve the program if it
6 finds, based on the record, that:
7 (1) the program is likely to result in rates lower
8 than otherwise would have been in effect under
9 traditional rate of return regulation for the services
10 covered by the program and that are consistent with the
11 provisions of Section 9-241 of the Act; and
12 (2) the program is likely to result in other
13 substantial and identifiable benefits that would be
14 realized by customers served under the program and that
15 would not be realized in the absence of the program; and
16 (3) the utility is in compliance with applicable
17 Commission standards for reliability and implementation
18 of the program is not likely to adversely affect service
19 reliability; and
20 (4) implementation of the program is not likely to
21 result in deterioration of the utility's financial
22 condition; and
23 (5) implementation of the program is not likely to
24 adversely affect the development of competitive markets;
25 and
26 (6) the electric utility is in compliance with its
27 obligation to offer delivery services pursuant to Article
28 XVI; and
29 (7) the program includes annual reporting
30 requirements and other provisions that will enable the
31 Commission to adequately monitor its implementation of
32 the program; and
33 (8) the program includes provisions for an
34 equitable sharing of any net economic benefits between
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1 the utility and its customers to the extent the program
2 is likely to result in such benefits.
3 The Commission shall issue its order approving or denying
4 the program no later than 270 days from the date of filing of
5 the petition. Any program approved under this Section shall
6 continue in effect until revised, modified or terminated by
7 order of the Commission as provided in this Section. If the
8 Commission cannot make the above findings, it shall
9 specifically identify in its order the reason or reasons why
10 the proposed program does not meet the above criteria, and
11 shall identify any modifications supported in the record, if
12 any, that would cause the program to satisfy the above
13 criteria. In the event the order identifies any such
14 modifications it shall not become a final order subject to
15 petitions for rehearing until 15 days after service of same
16 by the Commission. The utility shall have 14 days following
17 the date of service of the order to notify the Commission in
18 writing whether it will accept any modifications so
19 identified in the order or whether it has elected not to
20 proceed with the program. If the utility notifies the
21 Commission that it will accept such modifications, the
22 Commission shall issue an amended order, without further
23 hearing, within 14 days following such notification,
24 approving the program as modified and such order shall be
25 considered to be a final order of the Commission subject to
26 petitions for rehearing and appellate procedures.
27 (c) The Commission shall open a proceeding to review any
28 program approved under subsection (b) 2 years after the
29 program is first implemented to determine whether the program
30 is meeting its objectives, and may make such revisions, no
31 later than 270 days after the proceeding is opened, as are
32 necessary to result in the program meeting its objectives. A
33 utility may elect to discontinue any program so revised. The
34 Commission shall not otherwise direct a utility to revise,
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1 modify or cancel a program during its term of operation,
2 except as found necessary, after notice and hearing, to
3 ensure system reliability.
4 (d) Upon its own motion or complaint, the Commission may
5 investigate whether the utility is implementing an approved
6 program in accordance with the Commission order approving the
7 program. If the Commission finds after notice and hearing,
8 that the utility is not implementing the program in
9 accordance with such order, the Commission shall order the
10 utility to comply with the terms of the order. Complaints
11 relating to the program filed under Section 9-250 of this
12 Act, alleging that the program does not comply with that
13 Section or the requirements of subsection (b) shall not be
14 filed sooner than one year after the review provided for in
15 subsection (c). The complainant shall bear the burden of
16 proving the allegations in the complaint.
17 (e) The Commission shall not be authorized to allow or
18 order an electric utility to place a program into effect,
19 pursuant to this Section, applicable to delivery services
20 provided by a utility, unless the utility already has in
21 effect a delivery services tariff conforming to the
22 requirements of Section 16-108 of this Act.
23 (f) The Commission may, upon subsequent petition by the
24 utility, after notice and hearing, authorize the extension of
25 a program that was previously approved pursuant to this
26 Section or approve revisions or modifications of such a
27 program to be effective, after the initially approved program
28 has been in effect. Any such petition seeking an extension,
29 revision, or modification of such a program must be
30 accompanied by an evaluation of the program addressing the
31 criteria set forth in subsection (b) hereof. The utility's
32 petition may, but is not required to, specify a termination
33 date for the extended, revised or modified program. The
34 Commission may require a review of the extended, revised, or
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1 modified program at such intervals as may be ordered by the
2 Commission, for the purpose of determining whether the
3 program should be revised, modified, or terminated.
4 Performance based rates. Notwithstanding any other Sections
5 of this Act or the Commission's rules, the Commission, upon
6 petition by a public utility and after hearing, may authorize
7 for that utility on an experimental basis, the implementation
8 of one or more programs consisting of (a) alternatives to
9 rate of return regulation or (b) other regulatory mechanisms
10 that reward or penalize utilities through the adjustment of
11 rates based on utility performance. In the case of other
12 regulatory mechanisms that reward or penalize utilities
13 through the adjustment of rates based on utility performance,
14 the utility's performance shall be compared to standards
15 established in the Commission order authorizing the
16 implementation of the other regulatory mechanisms. Before
17 authorizing the implementation of programs that are either
18 alternatives to rate of return regulation or other regulatory
19 mechanisms that reward or penalize utilities through the
20 adjustment of rates based on utility performance, the
21 Commission shall:
22 (1) make a finding that the implementation of such
23 programs is in the public interest;
24 (2) make a finding that the implementation of such
25 programs will produce fair, just, and reasonable rates,
26 consistent with the provisions of Section 9-241 of this
27 Act;
28 (3) where appropriate, make a finding that the
29 programs respond to changes in the utility's industry
30 that are in fact occurring;
31 (4) specifically identify how the programs'
32 departure from traditional rate of return rate making
33 principles will benefit ratepayers through the
34 realization of one or more of the following: efficiency
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1 gains; cost savings; or improvements in productivity.
2 The Commission shall issue its order no later than 11
3 months from the date of the filing of the petition. Any such
4 programs shall not extend beyond the public utility's service
5 territory and shall not extend beyond June 30, 2000. No later
6 than December 31, 2000, the Commission shall report to the
7 General Assembly, with appropriate legislative
8 recommendations.
9 (Source: P.A. 89-194, eff. 1-1-96.)
10 (220 ILCS 5/10-113) (from Ch. 111 2/3, par. 10-113)
11 Sec. 10-113. Rescission or hearing of order.
12 (a) Anything in this Act to the contrary
13 notwithstanding, the Commission may at any time, upon notice
14 to the public utility affected, and after opportunity to be
15 heard as provided in the case of complaints, rescind, alter
16 or amend any rule, regulation, order or decision made by it.
17 Any order rescinding, altering or amending a prior rule,
18 regulation, order or decision shall, when served upon the
19 public utility affected, have the same effect as is herein
20 provided for original rules, regulations, orders or
21 decisions. Within 30 days after the service of any rule or
22 regulation, order or decision of the Commission any party to
23 the action or proceeding may apply for a rehearing in respect
24 to any matter determined in said action or proceeding and
25 specified in the application for rehearing. The Commission
26 shall receive and consider such application and shall grant
27 or deny such application in whole or in part within 20 days
28 from the date of the receipt thereof by the Commission. In
29 case the application for rehearing is granted in whole or in
30 part the Commission shall proceed as promptly as possible to
31 consider such rehearing as allowed. No appeal shall be
32 allowed from any rule, regulation, order or decision of the
33 Commission unless and until an application for a rehearing
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1 thereof shall first have been filed with and finally disposed
2 of by the Commission: provided, however, that in case the
3 Commission shall fail to grant or deny an application for a
4 rehearing in whole or in part within 20 days from the date of
5 the receipt thereof, or shall fail to enter a final order
6 upon rehearing within 150 days after such rehearing is
7 granted, the application for rehearing shall be deemed to
8 have been denied and finally disposed of, and an order to
9 that effect shall be deemed to have been served, for the
10 purpose of an appeal from the rule, regulation, order or
11 decision covered by such application. No person or
12 corporation in any appeal shall urge or rely upon any grounds
13 not set forth in such application for a rehearing before the
14 Commission. An application for rehearing shall not excuse any
15 corporation or person from complying with and obeying any
16 rule, regulation, order or decision or any requirement of any
17 rule, regulation, order or decision of the Commission
18 theretofore made, or operate in any manner to stay or
19 postpone the enforcement thereof, except in such cases and
20 upon such terms as the Commission may by order direct. If,
21 after such rehearing and consideration of all the facts,
22 including those arising since the making of the rule,
23 regulation, order or decision, the Commission shall be of the
24 opinion that the original rule, regulation, order or decision
25 or any part thereof is in any respect unjust or unwarranted,
26 or should be changed, the Commission may rescind, alter or
27 amend the same. A rule, regulation, order or decision made
28 after such rehearing, rescinding, altering or amending the
29 original rule, regulation, order or decision shall have the
30 same force and effect as an original rule, regulation, order
31 or decision, but shall not affect any right or the
32 enforcement of any right arising from or by virtue of the
33 original rule, regulation, order or decision unless so
34 ordered by the Commission. Only one rehearing shall be
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1 granted by the Commission; but this shall not be construed to
2 prevent any party from filing a petition setting up a new and
3 different state of facts after 2 years, and invoking the
4 action of the Commission thereon.
5 (b) Notwithstanding any contrary or inconsistent
6 provision in the Illinois Administrative Procedure Act, the
7 Commission may, in accordance with this Section, make a
8 change in a rule or regulation adopted or modified pursuant
9 to Section 5-40 of the Illinois Administrative Procedure Act,
10 upon consideration of an application for rehearing of the
11 Commission's order directing that the rule or regulation be
12 filed with the Secretary of State and published in the
13 Illinois Register pursuant to subsection (d) of Section 5-40.
14 The Commission shall provide the parties to the original
15 hearing in which the rule was adopted or modified no less
16 than 7 days notice to provide responses to the change the
17 Commission proposes to make. Any such change shall be based
18 upon evidence submitted in the record in the original hearing
19 or in the rehearing. If the Commission makes such a
20 substantive change in the rule or regulation pursuant to this
21 subsection, it shall provide notice of the amendment to the
22 rule or regulation to the Joint Committee on Administrative
23 Rules in accordance with subsection (c) of Section 5-40, and
24 shall thereafter comply with the requirements of subsection
25 (d) of Section 5-40 with respect to the rule or regulation as
26 amended. The running of the time period specified in
27 subsection (e) of Section 5-40 of the Illinois Administrative
28 Procedure Act for completing a rulemaking proceeding shall be
29 tolled for the period of time necessary for the Commission to
30 receive and consider an application for rehearing and to
31 conduct any proceedings on rehearing, provided, that such
32 tolling shall not serve to extend any of the time periods
33 provided for in subsection (a) of this Section.
34 (Source: P.A. 84-617.)
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1 Section 15. Except as otherwise provided in Section 60
2 of this amendatory Act of 1997, iIf any provision added by
3 this amendatory Act of 1997 is held invalid, this entire
4 amendatory Act of 1997 shall be deemed invalid, and the
5 provisions of Section 1.31, "Severability", of the Statute on
6 Statutes are hereby expressly declared not applicable to this
7 amendatory Act of 1997; provided, however (i) that any
8 contracts entered into and performed, transactions completed,
9 orders issued, services provided, billings rendered, or
10 payments made in accordance with the provisions of this
11 amendatory Act of 1997, other than as provided in clause (ii)
12 below, prior to the date of the determination of such
13 invalidity, shall not thereby be rendered invalid; (ii) that
14 no presumption as to the validity or invalidity of any
15 contracts, transactions, orders, billings, or payments
16 pursuant to Article XVIII of the Public Utilities Act shall
17 result from a determination of invalidity of this amendatory
18 Act of 1997; and (iii) that the provisions of proviso (i)
19 shall not be deemed to preserve the validity of any executory
20 contracts or transactions, of any actions to be taken
21 pursuant to orders issued, or of any services to be
22 performed, billings to be rendered, or payments to be made,
23 pursuant to provisions of this amendatory Act of 1997
24 subsequent to the date of determination of such invalidity.
25 (220 ILCS 5/8-402 rep.)
26 (220 ILCS 5/8-402.1 rep.)
27 (220 ILCS 5/8-404 rep.)
28 Section 18. Sections 8-402, 8-402.1, and 8-404 of the
29 Public Utilities Act are hereby repealed.
30 ARTICLE 2
31 Section 2-1. Short title. This Article may be cited as
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1 the Electricity Excise Tax Law.
2 Section 2-2. Findings and intent. The General Assembly
3 finds that the deregulation and restructuring of the electric
4 utility industry in this State mandated and implemented by
5 this amendatory Act of 1997, including the unbundling of
6 services and the authorization of competition in the
7 provision of those services such that consumers may in the
8 future transact with multiple providers to obtain the
9 services that were formerly provided by a single franchised
10 monopoly supplier of electricity, renders the system of
11 taxation embodied in the Public Utilities Revenue Act
12 impracticable and infeasible. The General Assembly further
13 finds that the deregulation and restructuring of the electric
14 utility industry necessitate changes to the existing system
15 of taxation in order to preserve revenue neutrality in tax
16 collections for the State of Illinois, to avoid placing any
17 supplier engaged in the business of distributing, supplying,
18 furnishing, selling, transmitting or delivering electricity
19 at a competitive disadvantage, to minimize additional
20 administrative costs and burdens of collection, and to avoid
21 the imposition of increased tax burdens on individual
22 consumers of electricity, particularly residential electric
23 users virtually all of whom, pursuant to Section 2 of the
24 Public Utilities Revenue Act, presently bear the economic
25 burden of the tax imposed thereunder at the rate of .32 cents
26 per kilowatt-hour distributed, supplied, furnished, sold,
27 transmitted or delivered to them. The General Assembly
28 further finds that to change the current rates at which
29 non-residential users bear the economic burden of the Public
30 Utilities Revenue Tax, thereby resulting in increases in the
31 amount of tax for which non-residential users bear the
32 economic burden, could impose additional cost burdens on
33 businesses in this State and adversely affect economic
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1 development and business retention in Illinois unless such
2 users are provided options for paying an excise tax on the
3 basis of purchase price. The General Assembly therefore
4 finds that there is a compelling public need to modify the
5 system of taxation embodied in the Public Utilities Revenue
6 Act by repealing the tax imposed by Section 2 of that Act and
7 imposing this electricity excise tax so as to:
8 (1) Impose the electricity excise tax on the
9 privilege of electric use measured by the kilowatt-hours
10 delivered to the purchaser;
11 (2) As part of this amendatory Act of 1997, repeal
12 the tax imposed by Section 2-202 of the Public Utilities
13 Act as applicable to electric utilities and establish the
14 rates of tax imposed under the electricity excise tax in
15 order to collect substantially the same amount of revenue
16 as was collected under Section 2-202 of that Act; and
17 (3) Allow non-residential consumers of electricity
18 to elect to register with the Department of Revenue as
19 self-assessing purchasers and to pay the electricity
20 excise tax directly to the Department at a rate which is
21 established as a percentage of such consumer's purchase
22 price for electricity distributed, supplied, furnished,
23 sold, transmitted or delivered to the purchaser.
24 Section 2-3. Definitions. As used in this Law, unless
25 the context clearly requires otherwise:
26 (a) "Department" means the Department of Revenue of the
27 State of Illinois.
28 (b) "Director" means the Director of the Department of
29 Revenue of the State of Illinois.
30 (c) "Person" means any natural individual, firm, trust,
31 estate, partnership, association, joint stock company, joint
32 venture, corporation, limited liability company, or a
33 receiver, trustee, guardian, or other representative
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1 appointed by order of any court, or any city, town, village,
2 county, or other political subdivision of this State.
3 (d) "Purchase price" means the consideration paid for
4 the distribution, supply, furnishing, sale, transmission or
5 delivery of electricity to a person for non-residential use
6 or consumption (and for both residential and non-residential
7 use or consumption in the case of electricity purchased from
8 a municipal system or electric cooperative described in
9 subsection (b) of Section 2-4) and not for resale, and for
10 all services directly related to the production, transmission
11 or distribution of electricity distributed, supplied,
12 furnished, sold, transmitted or delivered for non-residential
13 use or consumption, and includes transition charges imposed
14 in accordance with Article XVI of the Public Utilities Act
15 and instrument funding charges imposed in accordance with
16 Article XVIII of the Public Utilities Act, as well as cash,
17 services and property of every kind or nature, and shall be
18 determined without any deduction on account of the cost of
19 the service, product or commodity supplied, the cost of
20 materials used, labor or service costs, or any other expense
21 whatsoever. However, "purchase price" shall not include
22 consideration paid for:
23 (i) any charge for a dishonored check;
24 (ii) any finance or credit charge, penalty or
25 charge for delayed payment, or discount for prompt
26 payment;
27 (iii) any charge for reconnection of service or for
28 replacement or relocation of facilities;
29 (iv) any advance or contribution in aid of
30 construction;
31 (v) repair, inspection or servicing of equipment
32 located on customer premises;
33 (vi) leasing or rental of equipment, the leasing or
34 rental of which is not necessary to furnishing, supplying
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1 or selling electricity;
2 (vii) any purchase by a purchaser if the supplier
3 is prohibited by federal or State constitution, treaty,
4 convention, statute or court decision from recovering the
5 related tax liability from such purchaser; and
6 (viii) any amounts added to purchasers' bills
7 because of charges made pursuant to the tax imposed by
8 this Law.
9 In case credit is extended, the amount thereof shall be
10 included only as and when payments are made.
11 "Purchase price" shall not include consideration received
12 from business enterprises certified under Section 9-222.1 of
13 the Public Utilities Act, as amended, to the extent of such
14 exemption and during the period of time specified by the
15 Department of Commerce and Community Affairs.
16 (e) "Purchaser" means any person who acquires
17 electricity for use or consumption and not for resale, for a
18 valuable consideration.
19 (f) "Non-residential electric use" means any use or
20 consumption of electricity which is not residential electric
21 use.
22 (g) "Residential electric use" means electricity used or
23 consumed at a dwelling of 2 or fewer units, or electricity
24 for household purposes used or consumed at a building with
25 multiple dwelling units where the electricity is registered
26 by a separate meter for each dwelling unit.
27 (h) "Self-assessing purchaser" means a purchaser for
28 non-residential electric use who elects to register with and
29 to pay tax directly to the Department in accordance with
30 Sections 2-10 and 2-11 of this Law.
31 (i) "Delivering supplier" means any person engaged in
32 the business of delivering electricity to persons for use or
33 consumption and not for resale and who, in any case where
34 more than one person participates in the delivery of
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1 electricity to a specific purchaser, is the last of the
2 suppliers engaged in delivering the electricity prior to its
3 receipt by the purchaser.
4 (j) "Delivering supplier maintaining a place of business
5 in this State", or any like term, means any delivering
6 supplier having or maintaining within this State, directly or
7 by a subsidiary, an office, generation facility, transmission
8 facility, distribution facility, sales office or other place
9 of business, or any employee, agent or other representative
10 operating within this State under the authority of such
11 delivering supplier or such delivering supplier's subsidiary,
12 irrespective of whether such place of business or agent or
13 other representative is located in this State permanently or
14 temporarily, or whether such delivering supplier or such
15 delivering supplier's subsidiary is licensed to do business
16 in this State.
17 (k) "Use" means the exercise by any person of any right
18 or power over electricity incident to the ownership of that
19 electricity, except that it does not include the generation,
20 production, transmission, distribution, delivery or sale of
21 electricity in the regular course of business or the use of
22 electricity for such purposes.
23 Section 2-4. Tax imposed.
24 (a) Except as provided in subsection (b), a tax is
25 imposed on the privilege of using in this State electricity
26 purchased for use or consumption and not for resale, other
27 than by municipal corporations owning and operating a local
28 transportation system for public service, at the following
29 rates per kilowatt-hour delivered to the purchaser:
30 (i) For the first 2000 kilowatt-hours used or consumed
31 in a month: 0.330 cents per kilowatt- hour;
32 (ii) For the next 48,000 kilowatt-hours used or consumed
33 in a month: 0.319 cents per kilowatt-hour;
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1 (iii) For the next 50,000 kilowatt-hours used or
2 consumed in a month: 0.303 cents per kilowatt-hour;
3 (iv) For the next 400,000 kilowatt-hours used or
4 consumed in a month: 0.297 cents per kilowatt-hour;
5 (v) For the next 500,000 kilowatt-hours used or consumed
6 in a month: 0.286 cents per kilowatt-hour;
7 (vi) For the next 2,000,000 kilowatt-hours used or
8 consumed in a month: 0.270 cents per kilowatt-hour;
9 (vii) For the next 2,000,000 kilowatt-hours used or
10 consumed in a month: 0.254 cents per kilowatt-hour;
11 (viii) For the next 5,000,000 kilowatt-hours used or
12 consumed in a month: 0.233 cents per kilowatt-hour;
13 (ix) For the next 10,000,000 kilowatt-hours used or
14 consumed in a month: 0.207 cents per kilowatt-hour;
15 (x) For all electricity in excess of 20,000,000
16 kilowatt-hours used or consumed in a month: 0.202 cents per
17 kilowatt-hour.
18 Provided, that in lieu of the foregoing rates, the tax is
19 imposed on a self-assessing purchaser at the rate of 5.1% of
20 the self-assessing purchaser's purchase price for all
21 electricity distributed, supplied, furnished, sold,
22 transmitted and delivered to the self-assessing purchaser in
23 a month.
24 (b) A tax is imposed on the privilege of using in this
25 State electricity purchased from a municipal system or
26 electric cooperative, as defined in Article XVII of the
27 Public Utilities Act, which has not made an election as
28 permitted by either Section 17-200 or Section 17-300 of such
29 Act, at the lesser of 0.32 cents per kilowatt hour of all
30 electricity distributed, supplied, furnished, sold,
31 transmitted, and delivered by such municipal system or
32 electric cooperative to the purchaser or 5% of each such
33 purchaser's purchase price for all electricity distributed,
34 supplied, furnished, sold, transmitted, and delivered by such
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1 municipal system or electric cooperative to the purchaser,
2 whichever is the lower rate as applied to each purchaser in
3 each billing period.
4 (c) The tax imposed by this Section 2-4 is not imposed
5 with respect to any use of electricity by business
6 enterprises certified under Section 9-222.1 of the Public
7 Utilities Act, as amended, to the extent of such exemption
8 and during the time specified by the Department of Commerce
9 and Community Affairs; or with respect to any transaction in
10 interstate commerce, or otherwise, to the extent to which
11 such transaction may not, under the Constitution and statutes
12 of the United States, be made the subject of taxation by this
13 State.
14 Section 2-5. Multistate exemption. To prevent actual
15 multi-state taxation of the privilege that is subject to
16 taxation under this Law, any purchaser, upon proof that
17 purchaser has paid a tax in another state on such event,
18 shall be allowed a credit against the tax imposed by this
19 Law, to the extent of the amount of the tax properly due and
20 paid in the other state.
21 Section 2-6. Sunset of exemptions, credits and
22 deductions. The application of every exemption, credit and
23 deduction against tax imposed by this Law, shall be limited
24 by a reasonable and appropriate sunset date. A purchaser
25 subject to the tax imposed by this Law is not entitled to
26 take the exemption, credit, or deduction beginning on the
27 sunset date and thereafter. If a reasonable and appropriate
28 sunset date is not specified in the Public Act that creates
29 the exemption, credit, or deduction, a purchaser shall not be
30 entitled to take the exemption, credit, or deduction
31 beginning 5 years after the effective date of the Public Act
32 creating the exemption, credit, or deduction and thereafter.
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1 The provisions of this Section shall not apply to the
2 exemption provided by Section 2-5 of this Law.
3 Section 2-7. Collection of electricity excise tax. The
4 tax imposed by this Law shall be collected from the
5 purchaser, other than a self-assessing purchaser who provides
6 a copy of an active certification described in Sections 2-10
7 and 2-10.5 of this Law, by any delivering supplier
8 maintaining a place of business in this State at the rates
9 stated in Section 2-4 with respect to the electricity
10 delivered by such delivering supplier to or for the
11 purchaser, and shall be remitted to the Department as
12 provided in Section 2-9 of this Law. All sales to a purchaser
13 are presumed subject to tax collection unless the purchaser
14 provides the delivering supplier with a copy of an active
15 certification described in Sections 2-10 and 2-10.5 of this
16 Law. Upon receipt of an active certification from a
17 purchaser, the delivering supplier is relieved of all
18 liability for the collection and remittance of tax from the
19 self-assessing purchaser who has provided the certification.
20 The delivering supplier is relieved of the liability for the
21 collection of the tax from a self-assessing purchaser until
22 such time as the delivering supplier is notified in writing
23 by the purchaser that the purchaser's certification as a
24 self-assessing purchaser is no longer in effect. Delivering
25 suppliers shall collect the tax from purchasers by adding the
26 tax to the amount of the purchase price received from the
27 purchaser for delivering electricity for or to the purchaser.
28 Where a delivering supplier does not collect the tax from a
29 purchaser, other than a self-assessing purchaser, as provided
30 herein, such purchaser shall pay the tax directly to the
31 Department.
32 Section 2-7.5. Registration of delivering suppliers. A
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1 person who engages in business as a delivering supplier of
2 electricity in this State shall register with the Department.
3 Application for a certificate of registration shall be made
4 to the Department upon forms furnished by the Department and
5 shall contain any reasonable information the Department may
6 require. Upon receipt of the application for a certificate
7 of registration in proper form, the Department shall issue
8 to the applicant a certificate of registration.
9 The Department may deny a certificate of registration to
10 any applicant if such applicant is in default for moneys
11 due under this Law.
12 Any person aggrieved by any decision of the Department
13 under this Section may, within 20 days after notice of such
14 decision, protest and request a hearing, whereupon the
15 Department shall give notice to such person of the time and
16 place fixed for such hearing and shall hold a hearing in
17 conformity with the provisions of this Law and then issue
18 its final administrative decision in the matter to such
19 person. In the absence of such a protest within 20 days, the
20 Department's decision shall become final without any further
21 determination being made or notice given.
22 Section 2-7.6. Revocation of certificate of registration.
23 The Department may, after notice and a hearing as provided
24 herein, revoke the certificate of registration of any person
25 who violates any of the provisions of this Law. Before
26 revocation of a certificate of registration, the Department
27 shall, within 90 days after non-compliance and at least 7
28 days prior to the date of the hearing, give the person so
29 accused notice in writing of the charge against him or her,
30 and on the date designated shall conduct a hearing upon this
31 matter. The lapse of such 90 day period shall not preclude
32 the Department from conducting revocation proceedings at a
33 later date if necessary. Any hearing held under this
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1 Section shall be conducted by the Director or by any officer
2 or employee of the Department designated in writing by the
3 Director.
4 Upon the hearing of any such proceeding, the Director or
5 any officer or employee of the Department designated in
6 writing by the Director may administer oaths, and the
7 Department may procure by its subpoena the attendance of
8 witnesses and, by its subpoena duces tecum, the production
9 of relevant books and papers. Any circuit court, upon
10 application either of the accused or of the Department, may,
11 by order duly entered, require the attendance of witnesses
12 and the production of relevant books and papers before the
13 Department in any hearing relating to the revocation of
14 certificates of registration. Upon refusal or neglect to
15 obey the order of the court, the court may compel obedience
16 thereof by proceedings for contempt.
17 The Department may, by application to any circuit court,
18 obtain an injunction requiring any person who engages in
19 business as a delivering supplier of electricity to obtain a
20 certificate of registration. Upon refusal or neglect to obey
21 the order of the court, the court may compel obedience by
22 proceedings for contempt.
23 Section 2-8. Tax collected as debt owed to State. The
24 tax herein required to be collected by any delivering
25 supplier maintaining a place of business in this State, and
26 any such tax collected by that person, shall constitute a
27 debt owed by that person to this State, provided, that the
28 delivering supplier shall be allowed credit for such tax
29 related to deliveries of electricity the charges for which
30 are written off as uncollectible, and provided further, that
31 if such charges are thereafter collected, the delivering
32 supplier shall be obligated to remit such tax. For purposes
33 of this Section, any partial payment not specifically
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1 identified by the purchaser shall be deemed to be for the
2 delivery of electricity.
3 Section 2-9. Return and payment of tax by delivering
4 supplier. Each delivering supplier who is required or
5 authorized to collect the tax imposed by this Law shall make
6 a return to the Department on or before the 15th day of each
7 month for the preceding calendar month stating the following:
8 (1) The delivering supplier's name.
9 (2) The address of the delivering supplier's principal
10 place of business and the address of the principal place of
11 business (if that is a different address) from which the
12 delivering supplier engaged in the business of delivering
13 electricity in this State.
14 (3) The total number of kilowatt-hours which the
15 supplier delivered to or for purchasers during the preceding
16 calendar month and upon the basis of which the tax is
17 imposed.
18 (4) Amount of tax, computed upon Item (3) at the rates
19 stated in Section 2-4.
20 (5) An adjustment for uncollectible amounts of tax in
21 respect of prior period kilowatt-hour deliveries, determined
22 in accordance with rules and regulations promulgated by the
23 Department.
24 (6) Such other information as the Department reasonably
25 may require.
26 In making such return the delivering supplier may use any
27 reasonable method to derive reportable "kilowatt-hours" from
28 the delivering supplier's records.
29 If the average monthly tax liability to the Department of
30 the delivering supplier does not exceed $2,500, the
31 Department may authorize the delivering supplier's returns to
32 be filed on a quarter-annual basis, with the return for
33 January, February and March of a given year being due by
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1 April 30 of such year; with the return for April, May and
2 June of a given year being due by July 31 of such year; with
3 the return for July, August and September of a given year
4 being due by October 31 of such year; and with the return for
5 October, November and December of a given year being due by
6 January 31 of the following year.
7 If the average monthly tax liability to the Department of
8 the delivering supplier does not exceed $1,000, the
9 Department may authorize the delivering supplier's returns to
10 be filed on an annual basis, with the return for a given year
11 being due by January 31 of the following year.
12 Such quarter-annual and annual returns, as to form and
13 substance, shall be subject to the same requirements as
14 monthly returns.
15 Notwithstanding any other provision in this Law
16 concerning the time within which a delivering supplier may
17 file a return, any such delivering supplier who ceases to
18 engage in a kind of business which makes the person
19 responsible for filing returns under this Law shall file a
20 final return under this Law with the Department not more than
21 one month after discontinuing such business.
22 Each delivering supplier whose average monthly liability
23 to the Department under this Law was $10,000 or more during
24 the preceding calendar year, excluding the month of highest
25 liability and the month of lowest liability in such calendar
26 year, and who is not operated by a unit of local government,
27 shall make estimated payments to the Department on or before
28 the 7th, 15th, 22nd and last day of the month during which
29 tax liability to the Department is incurred in an amount not
30 less than the lower of either 22.5% of such delivering
31 supplier's actual tax liability for the month or 25% of such
32 delivering supplier's actual tax liability for the same
33 calendar month of the preceding year. The amount of such
34 quarter-monthly payments shall be credited against the final
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1 tax liability of such delivering supplier's return for that
2 month. An outstanding credit approved by the Department or a
3 credit memorandum issued by the Department arising from such
4 delivering supplier's overpayment of his or her final tax
5 liability for any month may be applied to reduce the amount
6 of any subsequent quarter-monthly payment or credited against
7 the final tax liability of such delivering supplier's return
8 for any subsequent month. If any quarter-monthly payment is
9 not paid at the time or in the amount required by this
10 Section, such delivering supplier shall be liable for penalty
11 and interest on the difference between the minimum amount due
12 as a payment and the amount of such payment actually and
13 timely paid, except insofar as such delivering supplier has
14 previously made payments for that month to the Department in
15 excess of the minimum payments previously due.
16 If the Director finds that the information required for
17 the making of an accurate return cannot reasonably be
18 compiled by such delivering supplier within 15 days after the
19 close of the calendar month for which a return is to be made,
20 the Director may grant an extension of time for the filing of
21 such return for a period not to exceed 31 calendar days. The
22 granting of such an extension may be conditioned upon the
23 deposit by such delivering supplier with the Department of an
24 amount of money not exceeding the amount estimated by the
25 Director to be due with the return so extended. All such
26 deposits shall be credited against such delivering supplier's
27 liabilities under this Law. If the deposit exceeds such
28 delivering supplier's present and probable future liabilities
29 under this Law, the Department shall issue to such delivering
30 supplier a credit memorandum, which may be assigned by such
31 delivering supplier to a similar person under this Law, in
32 accordance with reasonable rules and regulations to be
33 prescribed by the Department.
34 The delivering supplier making the return provided for in
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1 this Section shall, at the time of making such return, pay to
2 the Department the amount of tax imposed by this Law.
3 A delivering supplier who has an average monthly tax
4 liability of $10,000 or more shall make all payments
5 required by rules of the Department by electronic funds
6 transfer. The term "average monthly tax liability" shall be
7 the sum of the delivering supplier's liabilities under this
8 Law for the immediately preceding calendar year divided by
9 12. Any delivering supplier not required to make payments
10 by electronic funds transfer may make payments by electronic
11 funds transfer with the permission of the Department. All
12 delivering suppliers required to make payments by electronic
13 funds transfer and any delivering suppliers authorized to
14 voluntarily make payments by electronic funds transfer shall
15 make those payments in the manner authorized by the
16 Department.
17 Each month the Department shall pay into the Public
18 Utility Fund in the State treasury an amount determined by
19 the Director to be equal to 3.0% of the funds received by the
20 Department pursuant to this Section. The remainder of all
21 moneys received by the Department under this Section shall be
22 paid into the General Revenue Fund in the State treasury.
23 Section 2-10. Election to be self-assessing purchaser.
24 Any purchaser for non-residential electric use may elect to
25 register with the Department as a self-assessing purchaser
26 and to pay the tax imposed by Section 2-4 directly to the
27 Department, at the rate stated in that Section for
28 self-assessing purchasers, rather than paying the tax to such
29 purchaser's delivering supplier. The election by a purchaser
30 to register as a self-assessing purchaser may not be revoked
31 by the purchaser for at least 12 months thereafter. A
32 purchaser who revokes his or her registration as a
33 self-assessing purchaser shall not thereafter be permitted to
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1 register as a self-assessing purchaser within the succeeding
2 12 months. A self-assessing purchaser shall renew his or her
3 registration every 12 months, or the registration shall be
4 deemed to be revoked.
5 Section 2-10.5. Registration of self-assessing
6 purchaser. Application for a certificate of registration as
7 a self-assessing purchaser shall be made to the Department
8 upon forms furnished by the Department and shall contain any
9 reasonable information the Department may require. Upon
10 receipt of the application for a certificate of registration
11 in proper form and payment of a bi-annual renewal fee not to
12 exceed $200, the Department shall issue to the applicant a
13 certificate of registration that permits the person to whom
14 it was issued to pay the tax incurred under this Law
15 directly to the Department for a period of 2 years. A
16 certificate of registration under this Section shall
17 automatically be renewed, subject to revocation as provided
18 by this Law, for additional 2-year periods from the date of
19 its expiration unless otherwise notified by the Department.
20 Upon the expiration or revocation of a certificate of
21 registration as a self-assessing purchaser, the person to
22 whom such certificate had been issued shall provide written
23 notice of the expiration or revocation of the certificate to
24 that person's delivering supplier or suppliers.
25 The Department may deny a certificate of registration to
26 any applicant if the owner, any partner, any manager or
27 member of a limited liability company, or a corporate
28 officer of the applicant, is or has been the owner, a
29 partner, a manager or member of a limited liability company,
30 or a corporate officer, of another self-assessing purchaser
31 that is in default for moneys due under this Law.
32 Any person aggrieved by any decision of the Department
33 under this Section may, within 20 days after notice of such
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1 decision, protest and request a hearing, whereupon the
2 Department shall give notice to such person of the time and
3 place fixed for such hearing and shall hold a hearing in
4 conformity with the provisions of this Law and then issue
5 its final administrative decision in the matter to such
6 person. In the absence of such a protest within 20 days, the
7 Department's decision shall become final without any further
8 determination being made or notice given.
9 Section 2-10.6. Revocation of certificate of
10 registration. The Department may, after notice and a
11 hearing as provided herein, revoke the certificate of
12 registration of any person who violates any of the
13 provisions of this Law. Before revocation of a certificate
14 of registration the Department shall, within 90 days after
15 non-compliance and at least 7 days prior to the date of the
16 hearing, give the person so accused notice in writing of the
17 charge against him or her, and on the date designated shall
18 conduct a hearing upon this matter. The lapse of such 90
19 day period shall not preclude the Department from conducting
20 revocation proceedings at a later date if necessary. Any
21 hearing held under this Section shall be conducted by the
22 Director of Revenue or by any officer or employee of the
23 Department designated, in writing, by the Director of
24 Revenue.
25 Upon the hearing of any such proceeding, the Director of
26 Revenue, or any officer or employee of the Department
27 designated, in writing, by the Director of Revenue, may
28 administer oaths, and the Department may procure by its
29 subpoena the attendance of witnesses and, by its subpoena
30 duces tecum, the production of relevant books and papers.
31 Any circuit court, upon application either of the accused or
32 of the Department, may, by order duly entered, require the
33 attendance of witnesses and the production of relevant books
-191- SRS90HB0362JJsaam02
1 and papers, before the Department in any hearing relating to
2 the revocation of certificates of registration. Upon refusal
3 or neglect to obey the order of the court, the court may
4 compel obedience thereof by proceedings for contempt.
5 Section 2-11. Direct return and payment by
6 self-assessing purchaser. When electricity is used or
7 consumed by a self-assessing purchaser subject to the tax
8 imposed by this Law who did not pay the tax to a delivering
9 supplier maintaining a place of business within this State
10 and required or authorized to collect the tax, that
11 self-assessing purchaser shall, on or before the 15th day of
12 each month, make a return to the Department for the preceding
13 calendar month, stating all of the following:
14 (1) The self-assessing purchaser's name and
15 principal address.
16 (2) The aggregate purchase price paid by the
17 self-assessing purchaser for the distribution, supply,
18 furnishing, sale, transmission and delivery of such
19 electricity to or for the purchaser during the preceding
20 calendar month, including budget plan and other
21 purchaser-owned amounts applied during such month in
22 payment of charges includible in the purchase price, and
23 upon the basis of which the tax is imposed.
24 (3) Amount of tax, computed upon Item 2 at the rate
25 stated in Section 2-4.
26 (4) Such other information as the Department
27 reasonably may require.
28 In making such return the self-assessing purchaser may
29 use any reasonable method to derive reportable "purchase
30 price" from the self-assessing purchaser's records.
31 If the average monthly tax liability of the
32 self-assessing purchaser to the Department does not exceed
33 $2,500, the Department may authorize the self-assessing
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1 purchaser's returns to be filed on a quarter-annual basis,
2 with the return for January, February and March of a given
3 year being due by April 30 of such year; with the return for
4 April, May and June of a given year being due by July 31 of
5 such year; with the return for July, August, and September of
6 a given year being due by October 31 of such year; and with
7 the return for October, November and December of a given year
8 being due by January 31 of the following year.
9 If the average monthly tax liability of the
10 self-assessing purchaser to the Department does not exceed
11 $1,000, the Department may authorize the self-assessing
12 purchaser's returns to be filed on an annual basis, with the
13 return for a given year being due by January 31 of the
14 following year.
15 Such quarter-annual and annual returns, as to form and
16 substance, shall be subject to the same requirements as
17 monthly returns.
18 Notwithstanding any other provision in this Law
19 concerning the time within which a self-assessing purchaser
20 may file a return, any such self-assessing purchaser who
21 ceases to be responsible for filing returns under this Law
22 shall file a final return under this Law with the Department
23 not more than one month thereafter.
24 Each self-assessing purchaser whose average monthly
25 liability to the Department pursuant to this Section was
26 $10,000 or more during the preceding calendar year, excluding
27 the month of highest liability and the month of lowest
28 liability during such calendar year, and which is not
29 operated by a unit of local government, shall make estimated
30 payments to the Department on or before the 7th, 15th, 22nd
31 and last day of the month during which tax liability to the
32 Department is incurred in an amount not less than the lower
33 of either 22.5% of such self-assessing purchaser's actual tax
34 liability for the month or 25% of such self-assessing
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1 purchaser's actual tax liability for the same calendar month
2 of the preceding year. The amount of such quarter-monthly
3 payments shall be credited against the final tax liability of
4 the self-assessing purchaser's return for that month. An
5 outstanding credit approved by the Department or a credit
6 memorandum issued by the Department arising from the
7 self-assessing purchaser's overpayment of the self-assessing
8 purchaser's final tax liability for any month may be applied
9 to reduce the amount of any subsequent quarter-monthly
10 payment or credited against the final tax liability of such
11 self-assessing purchaser's return for any subsequent month.
12 If any quarter-monthly payment is not paid at the time or in
13 the amount required by this Section, such person shall be
14 liable for penalty and interest on the difference between the
15 minimum amount due as a payment and the amount of such
16 payment actually and timely paid, except insofar as such
17 person has previously made payments for that month to the
18 Department in excess of the minimum payments previously due.
19 If the Director finds that the information required for
20 the making of an accurate return cannot reasonably be
21 compiled by a self-assessing purchaser within 15 days after
22 the close of the calendar month for which a return is to be
23 made, the Director may grant an extension of time for the
24 filing of such return for a period of not to exceed 31
25 calendar days. The granting of such an extension may be
26 conditioned upon the deposit by such self-assessing purchaser
27 with the Department of an amount of money not exceeding the
28 amount estimated by the Director to be due with the return so
29 extended. All such deposits shall be credited against such
30 self-assessing purchaser's liabilities under this Law. If
31 the deposit exceeds such self-assessing purchaser's present
32 and probable future liabilities under this Law, the
33 Department shall issue to such self-assessing purchaser a
34 credit memorandum, which may be assigned by such
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1 self-assessing purchaser to a similar person under this Law,
2 in accordance with reasonable rules and regulations to be
3 prescribed by the Department.
4 The self-assessing purchaser making the return provided
5 for in this Section shall, at the time of making such return,
6 pay to the Department the amount of tax imposed by this Law.
7 A self-assessing purchaser who has an average monthly tax
8 liability of $10,000 or more shall make all payments
9 required by rules of the Department by electronic funds
10 transfer. The term "average monthly tax liability" shall be
11 the sum of the self-assessing purchaser's liabilities under
12 this Law for the immediately preceding calendar year divided
13 by 12. Any self-assessing purchaser not required to make
14 payments by electronic funds transfer may make payments by
15 electronic funds transfer with the permission of the
16 Department. All self-assessing purchasers required to make
17 payments by electronic funds transfer and any self-assessing
18 purchasers authorized to voluntarily make payments by
19 electronic funds transfer shall make those payments in the
20 manner authorized by the Department.
21 Each month the Department shall pay into the Public
22 Utility Fund in the State treasury an amount determined by
23 the Director to be equal to 3.0% of the funds received by the
24 Department pursuant to this Section. The remainder of all
25 moneys received by the Department under this Section shall be
26 paid into the General Revenue Fund in the State treasury.
27 Section 2-12. Applicability of Retailers' Occupation Tax
28 Act, Public Utilities Revenue Act and Uniform Penalty and
29 Interest Act. The Department shall have full power to
30 administer and enforce this Law; to collect all taxes,
31 penalties and interest due hereunder; to dispose of taxes,
32 penalties and interest so collected in the manner herein
33 provided; and to determine all rights to credit memoranda or
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1 refunds arising on account of the erroneous payment of tax,
2 penalty or interest hereunder.
3 All of the provisions of Sections 4 (except that the time
4 limitation provisions shall run from the date when the tax is
5 due rather than from the date when gross receipts are
6 received), 5 (except that the time limitation provisions on
7 the issuances of notices of tax liability shall run from the
8 date when the tax is due rather than from the date when gross
9 receipts are received and except that in the case of a
10 failure to file a return required by this Law, no notice of
11 tax liability shall be issued on and after each July 1 and
12 January 1 covering tax due with that return during any month
13 or period more than 6 years before that July 1 or January 1,
14 respectively, and except that the 30% penalty provided for in
15 Section 5 shall not apply), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i
16 and 5j of the Retailers' Occupation Tax Act, and Sections 6,
17 8, 9, 10 and 11 of the Public Utilities Revenue Act, which
18 are not inconsistent with this Law, and the Uniform Penalty
19 and Interest Act shall apply, as far as practicable, to the
20 subject matter of this Law to the same extent as if such
21 provisions were included herein. References in such
22 incorporated Sections of the Retailers' Occupation Tax Act
23 and Public Utilities Revenue Act and to taxpayers and to
24 persons engaged in the business of selling tangible personal
25 property at retail means both purchasers and delivering
26 suppliers maintaining a place of business in this State, as
27 required by the particular context, when used in this Law.
28 References in such incorporated Sections of the Retailers'
29 Occupation Tax Act and Public Utilities Revenue Act to gross
30 receipts and to gross receipts received means purchase price
31 or kilowatt-hours used or consumed by the purchaser, as
32 required by the particular context.
33 Section 2-13. Inspection of books and records. Every
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1 delivering supplier maintaining a place of business in this
2 State who is obligated to collect and remit the tax imposed
3 on a purchaser by this Law, and every self-assessing
4 purchaser who is obligated to pay the tax imposed by this Law
5 directly to the Department, shall keep books, records,
6 papers and other documents which are adequate to reflect the
7 information which such supplier or such self-assessing
8 purchaser, as the case may be, is required by Section 2-9 or
9 Section 2-11 of this Law to report to the Department by
10 filing returns with the Department. All books and records
11 and other papers and documents required by this Law to be
12 kept shall be kept in the English language and shall, at all
13 times during business hours of the day, be subject to
14 inspection by the Department or its duly authorized agents
15 and employees. Books and records reflecting purchase price
16 paid and kilowatt-hours delivered, used or consumed during
17 any period with respect to which the Department is authorized
18 to establish liability as provided in Section 2-12 of this
19 Law shall be preserved until the expiration of such period
20 unless the Department, in writing, authorizes their
21 destruction or disposal at an earlier date.
22 The Department may, upon written authorization of the
23 Director, destroy any returns or any records, papers or
24 memoranda pertaining to such returns upon the expiration of
25 any period covered by such returns with respect to which the
26 Department is authorized to establish liability.
27 Section 2-14. Rules and regulations; hearing; review
28 under Administrative Review Law; death or incompetency of
29 party. The Department may make, promulgate and enforce such
30 reasonable rules and regulations relating to the
31 administration and enforcement of this Law as may be deemed
32 expedient.
33 Whenever notice to a purchaser or to a delivering
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1 supplier is required by this Law, such notice may be
2 personally served or given by United States certified or
3 registered mail, addressed to the purchaser or delivering
4 supplier concerned at his or her last known address, and
5 proof of such mailing shall be sufficient for the purposes of
6 this Law. In the case of a notice of hearing, the notice
7 shall be mailed not less than 21 days prior to the date fixed
8 for the hearing.
9 All hearings provided for in this Law with respect to a
10 purchaser or to a delivering supplier having its principal
11 address or principal place of business in any of the several
12 counties of this State shall be held in the county wherein
13 the purchaser or delivering supplier has its principal
14 address or principal place of business. If the purchaser or
15 delivering supplier does not have its principal address or
16 principal place of business in this State, such hearings
17 shall be held in Sangamon County. The Circuit Court of any
18 county wherein a hearing is held shall have power to review
19 all final administrative decisions of the Department in
20 administering the provisions of this Law. If, however, the
21 administrative proceeding which is to be reviewed judicially
22 is a claim for refund proceeding commenced in accordance with
23 this Law and Section 2a of the State Officers and Employees
24 Money Disposition Act, the Circuit Court having jurisdiction
25 of the action for judicial review under this Section and
26 under the Administrative Review Law shall be the same court
27 that entered the temporary restraining order or preliminary
28 injunction which is provided for in Section 2a of the State
29 Officers and Employees Money Disposition Act and which
30 enables such claim proceeding to be processed and disposed of
31 as a claim for refund proceeding rather than as a claim for
32 credit proceeding.
33 The provisions of the Administrative Review Law, and the
34 rules adopted pursuant thereto, shall apply to and govern all
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1 proceedings for the judicial review of final administrative
2 decisions of the Department hereunder. The term
3 "administrative decision" is defined as in Section 3-101 of
4 the Code of Civil Procedure.
5 Service upon the Director or Assistant Director of the
6 Department of Revenue of summons issued in any action to
7 review a final administrative decision is service upon the
8 Department. The Department shall certify the record of its
9 proceedings if the person commencing such action shall pay to
10 it the sum of 75 cents per page of testimony taken before the
11 Department and 25 cents per page of all other matters
12 contained in such record, except that these charges may be
13 waived where the Department is satisfied that the aggrieved
14 party is a poor person who cannot afford to pay such charges.
15 Whenever any proceeding provided by this Law has been
16 begun by the Department or by a person subject thereto and
17 such person thereafter dies or becomes a person under legal
18 disability before the proceeding has been concluded, the
19 legal representative of the deceased person or a person under
20 legal disability shall notify the Department of such death or
21 legal disability. The legal representative, as such, shall
22 then be substituted by the Department in place of and for the
23 person.
24 Within 20 days after notice to the legal representative
25 of the time fixed for that purpose, the proceeding may
26 proceed in all respects and with like effect as though the
27 person had not died or become a person under legal
28 disability.
29 Section 2-15. Illinois Administrative Procedure Act;
30 application. The Illinois Administrative Procedure Act is
31 hereby expressly adopted and shall apply to all
32 administrative rules and procedures of the Department under
33 this Law, except that: (1) paragraph (b) of Section 5-10 of
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1 the Illinois Administrative Procedure Act does not apply to
2 final orders, decisions and opinions of the Department, (2)
3 subparagraph (a)(ii) of Section 5-10 of the Illinois
4 Administrative Procedure Act does not apply to forms
5 established by the Department for use under this Law, and (3)
6 the provisions of Section 10-45 of the Illinois
7 Administrative Procedure Act regarding proposals for decision
8 are excluded and not applicable to the Department under this
9 Law.
10 Section 2-16. Violations. Any purchaser or delivering
11 supplier who is required to but fails to make a return, or
12 who makes a fraudulent return, or who wilfully violates any
13 other provision of this Law or any rule or regulation of the
14 Department for the administration and enforcement of this
15 Law, is guilty of a business offense and, upon conviction
16 thereof, shall be fined not less than $750 nor more than
17 $7,500.
18 Section 2-17. Office of Attorney General; Consumer
19 Utilities Unit. From the moneys collected under this Law,
20 the General Assembly shall appropriate sufficient moneys to
21 the Office of the Attorney General to pay the expenses of the
22 Consumer Utilities Unit incurred in the performance of its
23 duties under Section 6.5 of the Attorney General Act.
24 ARTICLE 3
25 Section 25. The Public Utilities Revenue Act is amended
26 by changing Sections 1, 2a.1, 2a.2, 5, and 7 and adding
27 Section 1a as follows:
28 (35 ILCS 620/1) (from Ch. 120, par. 468)
29 Sec. 1. For the purposes of this Law:
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1 "Consumer Price Index" means the Consumer Price Index For
2 All Urban Consumers for all items published by the United
3 States Department of Labor; provided that if this index no
4 longer exists, the Department of Revenue shall prescribe the
5 use of a comparable, substitute index.
6 "Gross receipts" means the consideration received for
7 electricity distributed, supplied, furnished or sold to
8 persons for use or consumption and not for resale, and for
9 all services (including the transmission of electricity for
10 an end-user) rendered in connection therewith, and includes
11 cash, services and property of every kind or nature, and
12 shall be determined without any deduction on account of the
13 cost of the service, product or commodity supplied, the cost
14 of materials used, labor or service costs, or any other
15 expense whatsoever. However, "gross receipts" shall not
16 include receipts from:
17 (i) any minimum or other charge for electricity or
18 electric service where the customer has taken no
19 kilowatt-hours of electricity;
20 (ii) any charge for a dishonored check;
21 (iii) any finance or credit charge, penalty or
22 charge for delayed payment, or discount for prompt
23 payment;
24 (iv) any charge for reconnection of service or for
25 replacement or relocation of facilities;
26 (v) any advance or contribution in aid of
27 construction;
28 (vi) repair, inspection or servicing of equipment
29 located on customer premises;
30 (vii) leasing or rental of equipment, the leasing
31 or rental of which is not necessary to distributing,
32 furnishing, supplying, selling or transporting
33 electricity;
34 (viii) any sale to a customer if the taxpayer is
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1 prohibited by federal or State constitution, treaty,
2 convention, statute or court decision from recovering the
3 related tax liability from such customer; and
4 (ix) any charges added to customers' bills pursuant
5 to the provisions of Section 9-221 or Section 9-222 of
6 the Public Utilities Act, as amended, or any charges
7 added to customers' bills by taxpayers who are not
8 subject to rate regulation by the Illinois Commerce
9 Commission for the purpose of recovering any of the tax
10 liabilities or other amount specified in such provisions
11 of such Act. In case credit is extended, the amount
12 thereof shall be included only as and when payments are
13 received.
14 "Gross receipts" shall not include consideration received
15 from business enterprises certified under Section 9-222.1 of
16 the Public Utilities Act, as amended, to the extent of such
17 exemption and during the period of time specified by the
18 Department of Commerce and Community Affairs.
19 "Department" means the Department of Revenue of the State
20 of Illinois.
21 "Director" means the Director of Revenue for the
22 Department of Revenue of the State of Illinois.
23 "Distributing electricity" means delivering electric
24 energy to an end user over facilities owned, leased, or
25 controlled by the taxpayer.
26 "Taxpayer" for purposes of the tax on the distribution of
27 electricity imposed by this Act means an electric
28 cooperative, an electric utility, or an alternative retail
29 electric supplier (other than a person that is an alternative
30 retail electric supplier solely pursuant to subsection (e) of
31 Section 16-115 of the Public Utilities Act), as those terms
32 are defined in the Public Utilities Act, a person engaged in
33 the business of distributing, supplying, furnishing or
34 selling electricity in this State for use or consumption and
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1 not for resale.
2 "Taxpayer" for purposes of the Public Utilities Revenue
3 Tax means a person engaged in the business of distributing,
4 suppling, furnishing or selling electricity for use or
5 consumption and not for resale.
6 "Person" means any natural individual, firm, trust,
7 estate, partnership, association, joint stock company, joint
8 adventure, corporation, limited liability company, or a
9 receiver, trustee, guardian or other representative appointed
10 by order of any court, or any city, town, county or other
11 political subdivision of this State.
12 "Invested capital" means that amount equal to (i) the
13 average of the balances at the beginning and end of each
14 taxable period of the taxpayer's total stockholder's equity
15 and total long-term debt, less investments in and advances to
16 all corporations, as set forth on the balance sheets included
17 in the taxpayer's annual report to the Illinois Commerce
18 Commission for the taxable period; (ii) multiplied by a
19 fraction determined under Sections 301 and 304(a) of the
20 "Illinois Income Tax Act" and reported on the Illinois income
21 tax return for the taxable period ending in or with the
22 taxable period in question. However, notwithstanding the
23 income tax return reporting requirement stated above,
24 beginning July 1, 1979, no taxpayer's denominators used to
25 compute the sales, property or payroll factors under
26 subsection (a) of Section 304 of the Illinois Income Tax Act
27 shall include payroll, property or sales of any corporate
28 entity other than the taxpayer for the purposes of
29 determining an allocation for the invested capital tax. This
30 amendatory Act of 1982, Public Act 82-1024, is not intended
31 to and does not make any change in the meaning of any
32 provision of this Act, it having been the intent of the
33 General Assembly in initially enacting the definition of
34 "invested capital" to provide for apportionment of the
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1 invested capital of each company, based solely upon the
2 sales, property and payroll of that company. in the case of
3 an electric cooperative subject to the tax imposed by Section
4 2a.1, "invested capital" means an amount equal to the product
5 determined by multiplying, (i) the average of the balances at
6 the beginning and end of the taxable period of the taxpayer's
7 total equity (including memberships, patronage capital,
8 operating margins, non-operating margins, other margins and
9 other equities), as set forth on the balance sheets included
10 in the taxpayer's annual report to the United States
11 Department of Agriculture Rural Utilities Services
12 Electrification Administration (established pursuant to the
13 federal Rural Electrification Act of 1936, as amended), by
14 (ii) the fraction determined under Sections 301 and 304(a) of
15 the Illinois Income Tax Act, as amended, for the taxable
16 period.
17 "Taxable period" means each calendar year period which
18 ends after the effective date of this Act and which is
19 covered by an annual report filed by the taxpayer with the
20 Illinois Commerce Commission. In the case of an electric
21 cooperative subject to the tax imposed by Section 2a.1,
22 "taxable period" means each calendar year ending after the
23 effective date of this Act and covered by an annual report
24 filed by the taxpayer with the United States Department of
25 Agriculture Rural Utilities Services Electrification
26 Administration.
27 (Source: P.A. 88-480.)
28 (35 ILCS 620/1a new)
29 Sec. 1a. Legislative Intent. The General Assembly
30 previously imposed a tax on the invested capital of electric
31 utilities to replace in part the personal property tax that
32 was abolished by the Illinois Constitution of 1970.
33 Subsequent to the enactment and imposition of the invested
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1 capital tax on electric utilities, State and federal laws
2 regulating the provision of electricity have been enacted
3 which provide for the restructuring of the electric power
4 industry into a competitive industry. In response to this
5 restructuring, this amendatory Act of 1997 is intended to
6 provide for a replacement for the invested capital tax on
7 electric utilities, other than electric cooperatives, and
8 replace it with a new tax based on the quantity of
9 electricity that is delivered in this State. The General
10 Assembly finds and declares that this new tax is a fairer and
11 more equitable means to replace that portion of the personal
12 property tax that was abolished by the Illinois Constitution
13 of 1970 and previously replaced by the invested capital tax
14 on electric utilities, while maintaining a comparable
15 allocation among electric utilities in this State for payment
16 of taxes imposed to replace the personal property tax.
17 (35 ILCS 620/2a.1) (from Ch. 120, par. 469a.1)
18 Sec. 2a.1. Imposition of tax on invested capital and
19 on distribution of electricity.
20 (a) In addition to the tax taxes imposed by the Illinois
21 Income Tax Act and Section 2 of this Act, there is hereby
22 imposed upon every taxpayer persons engaged in the business
23 of distributing, supplying, furnishing or selling electricity
24 and subject to the tax imposed by this Act (other than an
25 electric cooperative, a school district or unit of local
26 government as defined in Section 1 of Article VII of the
27 Illinois Constitution of 1970 and other than persons subject
28 to the tax imposed by Section 2a.1 of the "Gas Revenue Tax
29 Act), an additional tax as follows: in an amount equal to .8%
30 of such persons' invested capital for the taxable period.
31 (i) For the first 500,000,000 kilowatt-hours
32 distributed by the taxpayer in this State during the
33 taxable period, 0.031 cents per kilowatt-hour;
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1 (ii) For the next 1,000,000,000 kilowatt-hours
2 distributed by the taxpayer in this State during the
3 taxable period, 0.050 cents per kilowatt-hour;
4 (iii) For the next 2,500,000,000 kilowatt-hours
5 distributed by the taxpayer in this State during the
6 taxable period, 0.070 cents per kilowatt-hour;
7 (iv) For the next 4,000,000,000 killowatt-hours
8 distributed by the taxpayer in this State during the
9 taxable period, 0.140 cents per kilowatt-hour;
10 (v) For the next 7,000,000,000 kilowatt-hours
11 distributed by the taxpayer in this State during the
12 taxable period, 0.180 cents per kilowatt-hour;
13 (vi) For the next 3,000,000,000 killowatt-hours
14 distributed by the taxpayer in this State during the
15 taxable period, 0.142 cents per kilowatt-hour; and
16 (vii) For all kilowatt-hours distributed by the
17 taxpayer in this State during the taxable period in
18 excess of 18,000,000,000 kilowatt-hours, 0.131 cents per
19 killowatt-hour.
20 (b) There is imposed on electric cooperatives that are
21 required to file reports with the Rural Utilities Service a
22 tax equal to 0.8% of such cooperative's invested capital for
23 the taxable period. The invested capital tax imposed by this
24 subsection shall not be imposed on electric cooperatives not
25 required to file reports with the Rural Utilities Service.
26 (c) If, for any taxable period, the total amount
27 received by the Department from the tax imposed by subsection
28 (a) exceeds $145,279,553 plus, for taxable periods subsequent
29 to 1998, an amount equal to the lesser of (i) 5% or (ii) the
30 percentage increase in the Consumer Price Index during the
31 immediately preceding taxable period, of the total amount
32 received by the Department from the tax imposed by subsection
33 (a) for the immediately preceding taxable period, determined
34 after allowance of the credit provided for in this
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1 subsection, the Department shall issue credit memoranda in
2 the aggregate amount of the excess to each of the taxpayers
3 who paid any amount of tax under subsection (a) for that
4 taxable period in the proportion which the amount paid by the
5 taxpayer bears to the total amount paid by all such
6 taxpayers. Any credit memorandum issued to a taxpayer under
7 this subsection may be used as a credit by the taxpayer
8 against its liability in future taxable periods for tax under
9 subsection (a). Any amount credited to a taxpayer shall not
10 be refunded to the taxpayer unless the taxpayer demonstrates
11 to the reasonable satisfaction of the Department that it will
12 not incur future liability for tax under subsection (a). The
13 Department shall adopt reasonable regulations for the
14 implementation of the provisions of this subsection.
15 If such persons are not liable for such additional tax
16 for the entire taxable period, such additional tax shall be
17 computed on the portion of the taxable period during which
18 such persons were liable for such additional tax. The
19 invested capital tax imposed by this Section shall not be
20 imposed upon persons who are not regulated by the Illinois
21 Commerce Commission or who are not required, in the case of
22 electric cooperatives, to file reports with the Rural
23 Electrification Administration.
24 (Source: P.A. 87-205; 87-313.)
25 (35 ILCS 620/2a.2) (from Ch. 120, par. 469a.2)
26 Sec. 2a.2. Annual return, collection and payment. A
27 return with respect to the tax imposed by Section 2a.1 shall
28 be made by every person for any taxable period for which such
29 person is liable for such tax. Such return shall be made on
30 such forms as the Department shall prescribe and shall
31 contain the following information:
32 1. Taxpayer's name;
33 2. Address of taxpayer's principal place of
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1 business, and address of the principal place of business
2 (if that is a different address) from which the taxpayer
3 engages in the business of distributing, supplying,
4 furnishing or selling electricity in this State;
5 3. The total proprietary capital and total
6 long-term debt as of the beginning and end of the taxable
7 period as set forth on the balance sheets included in the
8 taxpayer's annual report to the Illinois Commerce
9 Commission (or, total equity, in the case of electric
10 cooperatives, in the annual reports filed with the Rural
11 Utilities Service Electrification Administration) for the
12 taxable period;
13 3a. The total kilowatt-hours of electricity
14 distributed by a taxpayer, other than an electric
15 cooperative, in this State for the taxable period covered
16 by the return;
17 4. The taxpayer's base income allocable to Illinois
18 under Sections 301 and 304(a) of the "Illinois Income Tax
19 Act", for the period covered by the return;
20 4. 5. The amount of tax due for the taxable period
21 (computed on the basis of the amounts set forth in Items
22 3 and 3a 4); and
23 5. 6. Such other reasonable information as may be
24 required by forms or regulations prescribed by the
25 Department.
26 The returns prescribed by this Section shall be due and
27 shall be filed with the Department not later than the 15th
28 day of the third month following the close of the taxable
29 period. The taxpayer making the return herein provided for
30 shall, at the time of making such return, pay to the
31 Department the remaining amount of tax herein imposed and due
32 for the taxable period. Each taxpayer shall make estimated
33 quarterly payments on the 15th day of the third, sixth, ninth
34 and twelfth months of each taxable period. Such estimated
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1 payments shall be 25% of the tax liability for the
2 immediately preceding taxable period or the tax liability
3 that would have been imposed in the immediately preceding
4 taxable period if this amendatory Act of 1979 had been in
5 effect. All moneys received by the Department under Sections
6 2a.1 and 2a.2 shall be paid into the Personal Property Tax
7 Replacement Fund in the State Treasury.
8 (Source: P.A. 87-205.)
9 (35 ILCS 620/5) (from Ch. 120, par. 472)
10 Sec. 5. All of the provisions of Sections 4, (except that
11 the time limitation provisions shall run from the date when
12 the tax is due rather than from the date when gross receipts
13 are received), 5 (except that the time limitation provisions
14 on the issuance of notices of tax liability shall run from
15 the date when the tax is due rather than from the date when
16 gross receipts are received and except that, in the case of a
17 failure to file a return required by this Act, no notice of
18 tax liability shall be issued covering tax due with that
19 return more than 6 years after the original due date of that
20 return, and except that the 30% penalty provided for in
21 Section 5 shall not apply), 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i
22 and 5j of the Retailers' Occupation Tax Act, which are not
23 inconsistent with this Act, and Section 3-7 of the Uniform
24 Penalty and Interest Act shall apply, as far as practicable,
25 to the subject matter of this Act to the same extent as if
26 such provisions were included herein. References in such
27 incorporated Sections of the Retailers' Occupation Tax Act to
28 retailers, to sellers or to persons engaged in the business
29 of selling tangible personal property mean persons engaged in
30 the business of distributing, supplying, furnishing or
31 selling electricity when used in this Act. References in such
32 incorporated Sections of the Retailers' Occupation Tax Act to
33 purchasers of tangible personal property mean purchasers of
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1 electricity when used in this Act. References in such
2 incorporated Sections of the Retailers' Occupation Tax Act to
3 sales of tangible personal property mean the distributing,
4 supplying, furnishing or selling of electricity when used in
5 this Act.
6 (Source: P.A. 87-205.)
7 (35 ILCS 620/7) (from Ch. 120, par. 474)
8 Sec. 7. Every taxpayer under this Act shall keep books,
9 records, papers and other documents which are adequate to
10 reflect the information which such taxpayers are required by
11 Section 2a.2 3 of this Act to report to the Department by
12 filing annual monthly returns with the Department. The
13 Department may adopt rules that establish requirements,
14 including record forms and formats, for records required to
15 be kept and maintained by taxpayers. For purposes of this
16 Section, "records" means all data maintained by the taxpayer,
17 including data on paper, microfilm, microfiche or any type of
18 machine-sensible data compilation. All books and records and
19 other papers and documents required by this Act to be kept
20 shall be kept in the English language and shall, at all times
21 during business hours of the day, be subject to inspection by
22 the Department or its duly authorized agents and employees.
23 Books and records reflecting kilowatt-hours of electricity
24 distributed gross receipts received during any period with
25 respect to which the Department is authorized to establish
26 liability as provided in Section Sections 4 and 5 of this Act
27 shall be preserved until the expiration of such period unless
28 the Department, in writing, authorizes their destruction or
29 disposal at an earlier date.
30 The Department may, upon written authorization of the
31 Director, destroy any returns or any records, papers or
32 memoranda pertaining to such returns upon the expiration of
33 any period covered by such returns with respect to which the
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1 Department is authorized to establish liability.
2 (Source: P.A. 88-480.)
3 (35 ILCS 620/2 rep.)
4 (35 ILCS 620/2a.3 rep.)
5 (35 ILCS 620/3 rep.)
6 Section 26. The Public Utilities Revenue Act is amended
7 by repealing Sections 2, 2a.3, and 3.
8 Section 30. The Gas Revenue Tax Act is amended by
9 changing Section 2a.1 as follows:
10 (35 ILCS 615/2a.1) (from Ch. 120, par. 467.17a.1)
11 Sec. 2a.1. Imposition of tax on invested capital. In
12 addition to the taxes imposed by the Illinois Income Tax Act
13 and Section 2 of this Act, there is hereby imposed upon
14 persons engaged in the business of distributing, supplying,
15 furnishing or selling gas and subject to the tax imposed by
16 this Act (other than a school district or unit of local
17 government as defined in Section 1 of Article VII of the
18 Illinois Constitution of 1970), an additional tax in an
19 amount equal to .8% of such persons' invested capital for the
20 taxable period. If such persons are not liable for such
21 additional tax for the entire taxable period, such additional
22 tax shall be computed on the portion of the taxable period
23 during which such persons were liable for such additional
24 tax. The invested capital tax imposed by this Section shall
25 not be imposed upon persons who are not regulated by the
26 Illinois Commerce Commission. Provided, in the case of any
27 person which is subject to the invested capital tax imposed
28 by this Section and which is also subject to the tax on the
29 distribution of electricity imposed by Section 2a.1 of the
30 Public Utilities Revenue Act, the invested capital tax
31 imposed by this Section shall be an amount equal to 0.8% of
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1 such person's invested capital for the taxable period
2 multiplied by a fraction the numerator of which is the
3 average of the beginning and ending balances of such person's
4 gross gas utility plant in service and the denominator of
5 which is the average of the beginning and ending balances of
6 such person's gross electric and gas utility plant in
7 service, as set forth in such person's annual report to the
8 Illinois Commerce Commission for the taxable period.
9 (Source: P.A. 87-205; 87-313.)
10 Section 35. The Public Utilities Act is amended by
11 changing Section 2-202 as follow:
12 (220 ILCS 5/2-202) (from Ch. 111 2/3, par. 2-202)
13 Sec. 2-202. (a) It is declared to be the public policy of
14 this State that in order to maintain and foster the effective
15 regulation of public utilities under this Act in the
16 interests of the People of the State of Illinois and the
17 public utilities as well, the public utilities subject to
18 regulation under this Act and which enjoy the privilege of
19 operating as public utilities in this State, shall bear the
20 expense of administering this Act by means of a tax on such
21 privilege measured by the annual gross revenue of such public
22 utilities in the manner provided in this Section. For
23 purposes of this Section, "expense of administering this Act"
24 includes any costs incident to studies, whether made by the
25 Commission or under contract entered into by the Commission,
26 concerning environmental pollution problems caused or
27 contributed to by public utilities and the means for
28 eliminating or abating those problems. Such proceeds shall be
29 deposited in the Public Utility Fund in the State treasury.
30 (b) All of the ordinary and contingent expenses of the
31 Commission incident to the administration of this Act shall
32 be paid out of the Public Utility Fund except the
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1 compensation of the members of the Commission which shall be
2 paid from the General Revenue Fund. Notwithstanding other
3 provisions of this Act to the contrary, the ordinary and
4 contingent expenses of the Commission incident to the
5 administration of the Illinois Commercial Transportation Law
6 may be paid from appropriations from the Public Utility Fund
7 through the end of fiscal year 1986.
8 (c) A tax is imposed upon each public utility subject to
9 the provisions of this Act equal to .08% of its gross revenue
10 for each calendar year commencing with the calendar year
11 beginning January 1, 1982, except that the Commission may, by
12 rule, establish a different rate no greater than 0.1%. For
13 purposes of this Section, "gross revenue" shall not include
14 revenue from the production, transmission, distribution,
15 sale, delivery, or furnishing of electricity.
16 (d) Annual gross revenue returns shall be filed in
17 accordance with paragraph (1) or (2) of this subsection (d).
18 (1) Except as provided in paragraph (2) of this
19 subsection (d), on or before January 10 of each year each
20 public utility subject to the provisions of this Act
21 shall file with the Commission an estimated annual gross
22 revenue return containing an estimate of the amount of
23 its gross revenue for the calendar year commencing
24 January 1 of said year and a statement of the amount of
25 tax due for said calendar year on the basis of that
26 estimate. Public utilities may also file revised returns
27 containing updated estimates and updated amounts of tax
28 due during the calendar year. These revised returns, if
29 filed, shall form the basis for quarterly payments due
30 during the remainder of the calendar year. In addition,
31 on or before February 15 of each year, each public
32 utility shall file an amended return showing the actual
33 amount of gross revenues shown by the company's books and
34 records as of December 31 of the previous year. Forms and
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1 instructions for such estimated, revised, and amended
2 returns shall be devised and supplied by the Commission.
3 (2) Beginning January 1, 1993, the requirements of
4 paragraph (1) of this subsection (d) shall not apply to
5 any public utility in any calendar year for which the
6 total tax the public utility owes under this Section is
7 less than $1,000. For such public utilities with respect
8 to such years, the public utility shall file with the
9 Commission, on or before January 31 of the following
10 year, an annual gross revenue return for the year and a
11 statement of the amount of tax due for that year on the
12 basis of such a return. Forms and instructions for such
13 returns and corrected returns shall be devised and
14 supplied by the Commission.
15 (e) All returns submitted to the Commission by a public
16 utility as provided in this subsection (e) or subsection (d)
17 of this Section shall contain or be verified by a written
18 declaration by an appropriate officer of the public utility
19 that the return is made under the penalties of perjury. The
20 Commission may audit each such return submitted and may,
21 under the provisions of Section 5-101 of this Act, take such
22 measures as are necessary to ascertain the correctness of the
23 returns submitted. The Commission has the power to direct the
24 filing of a corrected return by any utility which has filed
25 an incorrect return and to direct the filing of a return by
26 any utility which has failed to submit a return. A
27 taxpayer's signing a fraudulent return under this Section is
28 perjury, as defined in Section 32-2 of the Criminal Code of
29 1961.
30 (f) (1) For all public utilities subject to paragraph
31 (1) of subsection (d), at least one quarter of the annual
32 amount of tax due under subsection (c) shall be paid to the
33 Commission on or before the tenth day of January, April,
34 July, and October of the calendar year subject to tax. In
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1 the event that an adjustment in the amount of tax due should
2 be necessary as a result of the filing of an amended or
3 corrected return under subsection (d) or subsection (e) of
4 this Section, the amount of any deficiency shall be paid by
5 the public utility together with the amended or corrected
6 return and the amount of any excess shall, after the filing
7 of a claim for credit by the public utility, be returned to
8 the public utility in the form of a credit memorandum in the
9 amount of such excess or be refunded to the public utility in
10 accordance with the provisions of subsection (k) of this
11 Section. However, if such deficiency or excess is less than
12 $1, then the public utility need not pay the deficiency and
13 may not claim a credit.
14 (2) Any public utility subject to paragraph (2) of
15 subsection (d) shall pay the amount of tax due under
16 subsection (c) on or before January 31 next following the end
17 of the calendar year subject to tax. In the event that an
18 adjustment in the amount of tax due should be necessary as a
19 result of the filing of a corrected return under subsection
20 (e), the amount of any deficiency shall be paid by the public
21 utility at the time the corrected return is filed. Any excess
22 tax payment by the public utility shall be returned to it
23 after the filing of a claim for credit, in the form of a
24 credit memorandum in the amount of the excess. However, if
25 such deficiency or excess is less than $1, the public utility
26 need not pay the deficiency and may not claim a credit.
27 (g) Each installment or required payment of the tax
28 imposed by subsection (c) becomes delinquent at midnight of
29 the date that it is due. Failure to make a payment as
30 required by this Section shall result in the imposition of a
31 late payment penalty, an underestimation penalty, or both, as
32 provided by this subsection. The late payment penalty shall
33 be the greater of:
34 (1) $25 for each month or portion of a month that
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1 the installment or required payment is unpaid or
2 (2) an amount equal to the difference between what
3 should have been paid on the due date, based upon the
4 most recently filed estimate, and what was actually paid,
5 times 1% one percent, for each month or portion of a
6 month that the installment or required payment goes
7 unpaid. This penalty may be assessed as soon as the
8 installment or required payment becomes delinquent.
9 The underestimation penalty shall apply to those public
10 utilities subject to paragraph (1) of subsection (d) and
11 shall be calculated after the filing of the amended return.
12 It shall be imposed if the amount actually paid on any of the
13 dates specified in subsection (f) is not equal to at least
14 one-fourth of the amount actually due for the year, and shall
15 equal the greater of:
16 (1) $25 for each month or portion of a month that
17 the amount due is unpaid or
18 (2) an amount equal to the difference between what
19 should have been paid, based on the amended return, and
20 what was actually paid as of the date specified in
21 subsection (f), times a percentage equal to 1/12 of the
22 sum of 10% and the percentage most recently established
23 by the Commission for interest to be paid on customer
24 deposits under 83 Ill. Adm. Code 280.70(e)(1), for each
25 month or portion of a month that the amount due goes
26 unpaid, except that no underestimation penalty shall be
27 assessed if the amount actually paid on each of the dates
28 specified in subsection (f) was based on an estimate of
29 gross revenues at least equal to the actual gross
30 revenues for the previous year. The Commission may
31 enforce the collection of any delinquent installment or
32 payment, or portion thereof by legal action or in any
33 other manner by which the collection of debts due the
34 State of Illinois may be enforced under the laws of this
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1 State. The executive director or his designee may excuse
2 the payment of an assessed penalty if he determines that
3 enforced collection of the penalty would be unjust.
4 (h) All sums collected by the Commission under the
5 provisions of this Section shall be paid promptly after the
6 receipt of the same, accompanied by a detailed statement
7 thereof, into the Public Utility Fund in the State treasury.
8 (i) During the month of October of each odd-numbered
9 year the Commission shall:
10 (1) determine the amount of all moneys deposited in
11 the Public Utility Fund during the preceding fiscal
12 biennium plus the balance, if any, in that fund at the
13 beginning of that biennium;
14 (2) determine the sum total of the following items:
15 (A) all moneys expended or obligated against
16 appropriations made from the Public Utility Fund during
17 the preceding fiscal biennium, plus (B) the sum of the
18 credit memoranda then outstanding against the Public
19 Utility Fund, if any; and
20 (3) determine the amount, if any, by which the sum
21 determined as provided in item (1) exceeds the amount
22 determined as provided in item (2).
23 If the amount determined as provided in item (3) of this
24 subsection exceeds $2,500,000, the Commission shall then
25 compute the proportionate amount, if any, which (x) the tax
26 paid hereunder by each utility during the preceding biennium,
27 and (y) the amount paid into the Public Utility Fund during
28 the preceding biennium by the Department of Revenue pursuant
29 to Sections 2-9 and 2-11 of the Electricity Excise Tax Law,
30 bears to the difference between the amount determined as
31 provided in item (3) of this subsection (i) and $2,500,000.
32 The Commission shall cause the proportionate amount
33 determined with respect to payments made under the
34 Electricity Excise Tax Law to be transferred into the General
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1 Revenue Fund in the State Treasury, and notify each public
2 utility that it may file during the 3 month period after the
3 date of notification a claim for credit for the in such
4 proportionate amount determined with respect to payments made
5 hereunder by the public utility. If the proportionate amount
6 is less than $10, no notification will be sent by the
7 Commission, and no right to a claim exists as to that amount.
8 Upon the filing of a claim for credit within the period
9 provided, the Commission shall issue a credit memorandum in
10 such amount to such public utility. Any claim for credit
11 filed after the period provided for in this Section is void.
12 (j) Credit memoranda issued pursuant to subsection (f)
13 and credit memoranda issued after notification and filing
14 pursuant to subsection (i) may be applied for the 2 year
15 period from the date of issuance, against the payment of any
16 amount due during that period under the tax imposed by
17 subsection (c), or, subject to reasonable rule of the
18 Commission including requirement of notification, may be
19 assigned to any other public utility subject to regulation
20 under this Act. Any application of credit memoranda after the
21 period provided for in this Section is void.
22 (k) The chairman or executive director may make refund
23 of fees, taxes or other charges whenever he shall determine
24 that the person or public utility will not be liable for
25 payment of such fees, taxes or charges during the next 24
26 months and he determines that the issuance of a credit
27 memorandum would be unjust.
28 (Source: P.A. 86-209; 87-971.)
29 Section 40. The Attorney General Act is amended by
30 adding Section 6.5 as follows:
31 (15 ILCS 205/6.5 new)
32 Sec. 6.5. Consumer Utilities Unit.
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1 (a) The General Assembly finds that the health, welfare,
2 and prosperity of all Illinois citizens, and the public's
3 interest in adequate, safe, reliable, cost-effective electric
4 services, requires effective public representation by the
5 Attorney General to protect the rights and interests of the
6 public in the provision of all elements of electric service
7 both during and after the transition to a competitive market,
8 and that to ensure that the benefits of competition in the
9 provision of electric services to all consumers are attained,
10 there shall be created within the Office of the Attorney
11 General a Consumer Utilities Unit.
12 (b) As used in this Section: "Electric services" means
13 services sold by an electric service provider. "Electric
14 service provider" shall mean anyone who sells, contracts to
15 sell, or markets electric power, generation, distribution,
16 transmission, or services (including metering and billing) in
17 connection therewith. Electric service providers shall
18 include any electric utility and any alternative retail
19 electric supplier as defined in Section 16-102 of the Public
20 Utilities Act.
21 (c) There is created within the Office of the Attorney
22 General a Consumer Utilities Unit, consisting of Assistant
23 Attorneys General appointed by the Attorney General, who,
24 together with such other staff as is deemed necessary by the
25 Attorney General, shall have the power and duty on behalf of
26 the people of the State to intervene in, initiate, enforce,
27 and defend all legal proceedings on matters relating to the
28 provision, marketing, and sale of electric service whenever
29 the Attorney General determines that such action is necessary
30 to promote or protect the rights and interest of all Illinois
31 citizens, classes of customers, and users of electric
32 services.
33 (d) In addition to the investigative and enforcement
34 powers available to the Attorney General, including without
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1 limitation those under the Consumer Fraud and Deceptive
2 Business Practices Act and the Illinois Antitrust Act, the
3 Attorney General shall be a party as a matter of right to all
4 proceedings, investigations, and related matters involving
5 the provision of electric services before the Illinois
6 Commerce Commission and shall, upon request, have access to
7 and the use of all files, records, data, and documents in the
8 possession or control of the Commission, which material the
9 Attorney General's office shall maintain as confidential, to
10 be used for law enforcement purposes only, which material may
11 be shared with other law enforcement officials. Nothing in
12 this Section is intended to take away or limit any of the
13 powers the Attorney General has pursuant to common law or
14 other statutory law.
15 Section 45. The Consumer Fraud and Deceptive Business
16 Practices Act is amended by changing Section 2P and adding
17 Sections 2EE, 2FF, 2GG, and 2HH as follows:
18 (815 ILCS 505/2EE new)
19 Sec. 2EE. Electric service provider selection. An
20 electric service provider shall not submit or execute a
21 change in a subscriber's selection of a provider of electric
22 service except as follows:
23 The new electric service provider has obtained the
24 customer's written authorization in a form that meets the
25 following requirements:
26 (1) An electric service provider shall obtain any
27 necessary written authorization from a subscriber for a
28 change in electric service by using a letter of agency as
29 specified in this Section. Any letter of agency that
30 does not conform with this Section is invalid.
31 (2) The letter of agency shall be a separate
32 document (an easily separable document containing only
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1 the authorization language described in subparagraph (5)
2 of this Section) whose sole purpose is to authorize an
3 electric service provider change. The letter of agency
4 must be signed and dated by the subscriber requesting the
5 electric service provider change.
6 (3) The letter of agency shall not be combined with
7 inducements of any kind on the same document.
8 (4) Notwithstanding subparagraphs (1) and (2) of
9 this Section, the letter of agency may be combined with
10 checks that contain only the required letter of agency
11 language prescribed in paragraph (5) of this Section and
12 the necessary information to make the check a negotiable
13 instrument. The letter of agency check shall not contain
14 any promotional language or material. The letter of
15 agency check shall contain in easily readable, bold-face
16 type on the face of the check, a notice that the consumer
17 is authorizing an electric service provider change by
18 signing the check. The letter of agency language also
19 shall be placed near the signature line on the back of
20 the check.
21 (5) At a minimum, the letter of agency must be
22 printed with a print of sufficient size to be clearly
23 legible, and must contain clear and unambiguous language
24 that confirms;
25 (i) The subscriber's billing name and address;
26 (ii) The decision to change the electric
27 service provider from the current provider to the
28 prospective provider;
29 (iii) The terms, conditions, and nature of the
30 service to be provided to the subscriber must be
31 clearly and conspicuously disclosed, in writing, and
32 an electric service provider must directly establish
33 the rates for the service contracted for by the
34 subscriber; and
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1 (iv) That the subscriber understand that any
2 electric service provider selection the subscriber
3 chooses may involve a charge to the subscriber for
4 changing the subscriber's electric service provider.
5 (6) Letters of agency shall not suggest or require
6 that a subscriber take some action in order to retain the
7 subscriber's current electric service provider.
8 (7) If any portion of a letter of agency is
9 translated into another language, then all portions of
10 the letter of agency must be translated into that
11 language.
12 For purposes of this Section, "electric service provider"
13 shall have the meaning given that phrase in Section 6.5 of
14 the Attorney General Act.
15 (815 ILCS 505/2FF new)
16 Sec. 2FF. Electric service fraud; elderly persons or
17 disabled persons; additional penalties. With respect to the
18 advertising, sale, provider selection, billings, or
19 collections relating to the provision of electric service,
20 where the consumer is an elderly person or disabled person, a
21 civil penalty of $50,000 may be imposed for each violation.
22 For purposes of this Section:
23 (1) "Elderly person" means a person 60 years of age or
24 older.
25 (2) "Disabled person" means a person who suffers from a
26 permanent physical or mental impairment resulting from
27 disease, injury, functional disorder or congenital condition.
28 (3) "Electric service" shall have the meaning given that
29 term in Section 6.5 of the Attorney General Act.
30 (815 ILCS 505/2GG new)
31 Sec. 2GG. Electric service advertising. Any
32 advertisement for electric service that lists rates shall
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1 clearly and conspicuously disclose all associated costs for
2 such service including, but not limited to, access fees and
3 service fees.
4 (815 ILCS 505/2HH new)
5 Sec. 2HH. Billing and collection practices of electric
6 service providers. Each person selling generation,
7 transmission, distribution, metering, or billing of electric
8 service shall display the name, the toll-free telephone
9 number of such service provider, and a description of the
10 services provided on all bills submitted to subscribers of
11 such services. All personal information relating to the
12 subscriber of generation, transmission, distribution,
13 metering, or billing of electric service shall be maintained
14 by the service providers solely for the purpose of generating
15 the bill for such services, and shall not be divulged to any
16 other persons with the exception of credit bureaus,
17 collection agencies, and persons licensed to market electric
18 service in the State of Illinois, without the written consent
19 of the subscriber.
20 (815 ILCS 505/2P) (from Ch. 121 1/2, par. 262P)
21 Sec. 2P. Offers of free prizes, gifts, or gratuities;
22 disclosure of conditions. It is an unlawful practice for any
23 person to promote or advertise any business, product, utility
24 service, including but not limited to, the provision of
25 electric, telecommunication, or gas service, or interest in
26 property, by means of offering free prizes, gifts, or
27 gratuities to any consumer, unless all material terms and
28 conditions relating to the offer are clearly and
29 conspicuously disclosed at the outset of the offer so as to
30 leave no reasonable probability that the offering might be
31 misunderstood.
32 (Source: P.A. 84-1308.)
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1 Section 65. The Illinois Municipal Code is amended by
2 changing Section 8-11-2 as follows:
3 (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
4 Sec. 8-11-2. The corporate authorities of any
5 municipality may tax any or all of the following occupations
6 or privileges:
7 1. Persons engaged in the business of transmitting
8 messages by means of electricity or radio magnetic waves,
9 or fiber optics, at a rate not to exceed 5% of the gross
10 receipts from that business originating within the
11 corporate limits of the municipality.
12 2. Persons engaged in the business of distributing,
13 supplying, furnishing, or selling gas for use or
14 consumption within the corporate limits of a municipality
15 of 500,000 or fewer population, and not for resale, at a
16 rate not to exceed 5% of the gross receipts therefrom.
17 2a. Persons engaged in the business of
18 distributing, supplying, furnishing, or selling gas for
19 use or consumption within the corporate limits of a
20 municipality of over 500,000 population, and not for
21 resale, at a rate not to exceed 8% of the gross receipts
22 therefrom. If imposed, this tax shall be paid in monthly
23 payments.
24 3. The privilege of using or consuming electricity
25 acquired in a purchase at retail and used or consumed
26 within the corporate limits of the municipality at rates
27 not to exceed the following maximum rates, calculated on
28 a monthly basis for each purchaser:
29 (i) For the first 2,000 kilowatt-hours used or
30 consumed in a month; 0.61 cents per kilowatt-hour;
31 (ii) For the next 48,000 kilowatt-hours used or
32 consumed in a month; 0.40 cents per kilowatt-hour;
33 (iii) For the next 50,000 kilowatt-hours used or
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1 consumed in a month; 0.36 cents per kilowatt-hour;
2 (iv) For the next 400,000 kilowatt-hours used or
3 consumed in a month; 0.35 cents per kilowatt-hour;
4 (v) For the next 500,000 kilowatt-hours used or
5 consumed in a month; 0.34 cents per kilowatt-hour;
6 (vi) For the next 2,000,000 kilowatt-hours used or
7 consumed in a month; 0.32 cents per kilowatt-hour;
8 (vii) For the next 2,000,000 kilowatt-hours used or
9 consumed in a month; 0.315 cents per kilowatt-hour;
10 (viii) For the next 5,000,000 kilowatt-hours used
11 or consumed in a month; 0.31 cents per kilowatt-hour;
12 (ix) For the next 10,000,000 kilowatt-hours used or
13 consumed in a month; 0.305 cents per kilowatt-hour; and
14 (x) For all electricity used or consumed in excess
15 of 20,000,000 kilowatt-hours in a month, 0.30 cents per
16 kilowatt-hour.
17 If a municipality imposes a tax at rates lower than
18 either the maximum rates specified in this Section or the
19 alternative maximum rates promulgated by the Illinois
20 Commerce Commission, as provided below, the tax rates
21 shall be imposed upon the kilowatt hour categories set
22 forth above with the same proportional relationship as
23 that which exists among such maximum rates.
24 Notwithstanding the foregoing, until December 31, 2008,
25 no municipality shall establish rates that are in excess
26 of rates reasonably calculated to produce revenues that
27 equal the maximum total revenues such municipality could
28 have received under the tax authorized by this
29 subparagraph in the last full calendar year prior to the
30 effective date of Section 65 of this amendatory Act of
31 1997; provided that this shall not be a limitation on the
32 amount of tax revenues actually collected by such
33 municipality.
34 Upon the request of the corporate authorities of a
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1 municipality, the Illinois Commerce Commission shall,
2 within 90 days after receipt of such request, promulgate
3 alternative rates for each of these kilowatt-hour
4 categories that will reflect, as closely as reasonably
5 practical for that municipality, the distribution of the
6 tax among classes of purchasers as if the tax were based
7 on a uniform percentage of the purchase price of
8 electricity. A municipality that has adopted an
9 ordinance imposing a tax pursuant to subparagraph 3 as it
10 existed prior to the effective date of Section 65 of this
11 amendatory Act of 1997 may, rather than imposing the tax
12 permitted by this amendatory Act of 1997, continue to
13 impose the tax pursuant to that ordinance with respect to
14 gross receipts received from residential customers
15 through July 31, 1999, and with respect to gross receipts
16 from any non-residential customer until the first bill
17 issued to such customer for delivery services in
18 accordance with Section 16-104 of the Public Utilities
19 Act but in no case later than the last bill issued to
20 such customer before December 31, 2000. No ordinance
21 imposing the tax permitted by this amendatory Act of 1997
22 shall be applicable to any non-residential customer until
23 the first bill issued to such customer for delivery
24 services in accordance with Section 16-104 of the Public
25 Utilities Act but in no case later than the last bill
26 issued to such non-residential customer before December
27 31, 2000. Persons engaged in the business of
28 distributing, supplying, furnishing, or selling
29 electricity for use or consumption within the corporate
30 limits of the municipality, and not for resale, at a rate
31 not to exceed 5% of the gross receipts therefrom.
32 4. Persons engaged in the business of distributing,
33 supplying, furnishing, or selling water for use or
34 consumption within the corporate limits of the
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1 municipality, and not for resale, at a rate not to exceed
2 5% of the gross receipts therefrom.
3 None of the taxes authorized by this Section may be
4 imposed with respect to any transaction in interstate
5 commerce or otherwise to the extent to which the business or
6 privilege may not, under the constitution and statutes of the
7 United States, be made the subject of taxation by this State
8 or any political sub-division thereof; nor shall any persons
9 engaged in the business of distributing, supplying,
10 furnishing, or selling or transmitting gas, water, or
11 electricity, or engaged in the business of transmitting
12 messages, or using or consuming electricity acquired in a
13 purchase at retail, be subject to taxation under the
14 provisions of this Section for those transactions that are or
15 may become subject to taxation under the provisions of the
16 "Municipal Retailers' Occupation Tax Act" authorized by
17 Section 8-11-1; nor shall any tax authorized by this Section
18 be imposed upon any person engaged in a business or on any
19 privilege unless the tax is imposed in like manner and at the
20 same rate upon all persons engaged in businesses of the same
21 class in the municipality, whether privately or municipally
22 owned or operated, or exercising the same privilege within
23 the municipality.
24 Any of the taxes enumerated in this Section may be in
25 addition to the payment of money, or value of products or
26 services furnished to the municipality by the taxpayer as
27 compensation for the use of its streets, alleys, or other
28 public places, or installation and maintenance therein,
29 thereon or thereunder of poles, wires, pipes or other
30 equipment used in the operation of the taxpayer's business.
31 (a) If the corporate authorities of any home rule
32 municipality have adopted an ordinance that imposed a tax on
33 public utility customers, between July 1, 1971, and October
34 1, 1981, on the good faith belief that they were exercising
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1 authority pursuant to Section 6 of Article VII of the 1970
2 Illinois Constitution, that action of the corporate
3 authorities shall be declared legal and valid,
4 notwithstanding a later decision of a judicial tribunal
5 declaring the ordinance invalid. No municipality shall be
6 required to rebate, refund, or issue credits for any taxes
7 described in this paragraph, and those taxes shall be deemed
8 to have been levied and collected in accordance with the
9 Constitution and laws of this State.
10 (b) In any case in which (i) prior to October 19, 1979,
11 the corporate authorities of any municipality have adopted an
12 ordinance imposing a tax authorized by this Section (or by
13 the predecessor provision of the "Revised Cities and Villages
14 Act") and have explicitly or in practice interpreted gross
15 receipts to include either charges added to customers' bills
16 pursuant to the provision of paragraph (a) of Section 36 of
17 the Public Utilities Act or charges added to customers' bills
18 by taxpayers who are not subject to rate regulation by the
19 Illinois Commerce Commission for the purpose of recovering
20 any of the tax liabilities or other amounts specified in such
21 paragraph (a) of Section 36 of that Act, and (ii) on or after
22 October 19, 1979, a judicial tribunal has construed gross
23 receipts to exclude all or part of those charges, then
24 neither those municipality nor any taxpayer who paid the tax
25 shall be required to rebate, refund, or issue credits for any
26 tax imposed or charge collected from customers pursuant to
27 the municipality's interpretation prior to October 19, 1979.
28 This paragraph reflects a legislative finding that it would
29 be contrary to the public interest to require a municipality
30 or its taxpayers to refund taxes or charges attributable to
31 the municipality's more inclusive interpretation of gross
32 receipts prior to October 19, 1979, and is not intended to
33 prescribe or limit judicial construction of this Section. The
34 legislative finding set forth in this subsection does not
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1 apply to taxes imposed after the effective date of this
2 amendatory Act of 1995.
3 (c) The tax authorized by subparagraph 3 shall be
4 collected from the purchaser by the person maintaining a
5 place of business in this State who delivers the electricity
6 to the purchaser. This tax shall constitute a debt of the
7 purchaser to the person who delivers the electricity to the
8 purchaser and if unpaid, is recoverable in the same manner as
9 the original charge for delivering the electricity. Any tax
10 required to be collected pursuant to an ordinance authorized
11 by subparagraph 3 and any such tax collected by a person
12 delivering electricity shall constitute a debt owed to the
13 municipality by such person delivering the electricity,
14 provided, that the person delivering electricity shall be
15 allowed credit for such tax related to deliveries of
16 electricity the charges for which are written off as
17 uncollectible, and provided further, that if such charges are
18 thereafter collected, the delivering supplier shall be
19 obligated to remit such tax. For purposes of this subsection
20 (c), any partial payment not specifically identified by the
21 purchaser shall be deemed to be for the delivery of
22 electricity. Persons delivering electricity shall collect the
23 tax from the purchaser by adding such tax to the gross charge
24 for delivering the electricity, in the manner prescribed by
25 the municipality. Persons delivering electricity shall also
26 be authorized to add to such gross charge an amount equal to
27 3% of the tax to reimburse the person delivering electricity
28 for the expenses incurred in keeping records, billing
29 customers, preparing and filing returns, remitting the tax
30 and supplying data to the municipality upon request. If the
31 person delivering electricity fails to collect the tax from
32 the purchaser, then the purchaser shall be required to pay
33 the tax directly to the municipality in the manner prescribed
34 by the municipality. Persons delivering electricity who file
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1 returns pursuant to this paragraph (c) shall, at the time of
2 filing such return, pay the municipality the amount of the
3 tax collected pursuant to subparagraph 3. (Blank).
4 (d) For the purpose of the taxes enumerated in this
5 Section:
6 "Gross receipts" means the consideration received for the
7 transmission of messages, the consideration received for
8 distributing, supplying, furnishing or selling gas for use or
9 consumption and not for resale, and the consideration
10 received for distributing, supplying, furnishing or selling
11 electricity for use or consumption and not for resale, and
12 the consideration received for distributing, supplying,
13 furnishing or selling water for use or consumption and not
14 for resale, and for all services rendered in connection
15 therewith valued in money, whether received in money or
16 otherwise, including cash, credit, services and property of
17 every kind and material and for all services rendered
18 therewith, and shall be determined without any deduction on
19 account of the cost of transmitting such messages, without
20 any deduction on account of the cost of the service, product
21 or commodity supplied, the cost of materials used, labor or
22 service cost, or any other expenses whatsoever. "Gross
23 receipts" shall not include that portion of the consideration
24 received for distributing, supplying, furnishing, or selling
25 gas, electricity, or water to, or for the transmission of
26 messages for, business enterprises described in paragraph (e)
27 of this Section to the extent and during the period in which
28 the exemption authorized by paragraph (e) is in effect or for
29 school districts or units of local government described in
30 paragraph (f) during the period in which the exemption
31 authorized in paragraph (f) is in effect.
32 For utility bills issued on or after May 1, 1996, but
33 before May 1, 1997, and for receipts from those utility
34 bills, "gross receipts" does not include one-third of (i)
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1 amounts added to customers' bills under Section 9-222 of the
2 Public Utilities Act, or (ii) amounts added to customers'
3 bills by taxpayers who are not subject to rate regulation by
4 the Illinois Commerce Commission for the purpose of
5 recovering any of the tax liabilities described in Section
6 9-222 of the Public Utilities Act. For utility bills issued
7 on or after May 1, 1997, but before May 1, 1998, and for
8 receipts from those utility bills, "gross receipts" does not
9 include two-thirds of (i) amounts added to customers' bills
10 under Section 9-222 of the Public Utilities Act, or (ii)
11 amount added to customers' bills by taxpayers who are not
12 subject to rate regulation by the Illinois Commerce
13 Commission for the purpose of recovering any of the tax
14 liabilities described in Section 9-222 of the Public
15 Utilities Act. For utility bills issued on or after May 1,
16 1998, and for receipts from those utility bills, "gross
17 receipts" does not include (i) amounts added to customers'
18 bills under Section 9-222 of the Public Utilities Act, or
19 (ii) amounts added to customers' bills by taxpayers who are
20 not subject to rate regulation by the Illinois Commerce
21 Commission for the purpose of recovering any of the tax
22 liabilities described in Section 9-222 of the Public
23 Utilities Act.
24 For purposes of this Section "gross receipts" shall not
25 include (i) amounts added to customers' bills under Section
26 9-221 of the Public Utilities Act, or (ii) charges added to
27 customers' bills to recover the surcharge imposed under the
28 Emergency Telephone System Act. This paragraph is not
29 intended to nor does it make any change in the meaning of
30 "gross receipts" for the purposes of this Section, but is
31 intended to remove possible ambiguities, thereby confirming
32 the existing meaning of "gross receipts" prior to the
33 effective date of this amendatory Act of 1995.
34 The words "transmitting messages", in addition to the
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1 usual and popular meaning of person to person communication,
2 shall include the furnishing, for a consideration, of
3 services or facilities (whether owned or leased), or both, to
4 persons in connection with the transmission of messages where
5 those persons do not, in turn, receive any consideration in
6 connection therewith, but shall not include such furnishing
7 of services or facilities to persons for the transmission of
8 messages to the extent that any such services or facilities
9 for the transmission of messages are furnished for a
10 consideration, by those persons to other persons, for the
11 transmission of messages.
12 "Person" as used in this Section means any natural
13 individual, firm, trust, estate, partnership, association,
14 joint stock company, joint adventure, corporation, limited
15 liability company, municipal corporation, the State or any of
16 its or political subdivisions subdivision of this State, any
17 State university created by statute, or a receiver, trustee,
18 guardian or other representative appointed by order of any
19 court.
20 "Person maintaining a place of business in this State"
21 shall mean any person having or maintaining within this
22 State, directly or by a subsidiary or other affiliate, an
23 office, generation facility, distribution facility,
24 transmission facility, sales office or other place of
25 business, or any employee, agent, or other representative
26 operating within this State under the authority of the person
27 or its subsidiary or other affiliate, irrespective of whether
28 such place of business or agent or other representative is
29 located in this State permanently or temporarily, or whether
30 such person, subsidiary or other affiliate is licensed or
31 qualified to do business in this State.
32 "Public utility" shall have the meaning ascribed to it in
33 Section 3-105 of the Public Utilities Act and shall include
34 telecommunications carriers as defined in Section 13-202 of
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1 that Act and alternative retail electric suppliers as defined
2 in Section 16-102 of that Act.
3 "Purchase at retail" shall mean any acquisition of
4 electricity by a purchaser for purposes of use or
5 consumption, and not for resale, but shall not include the
6 use of electricity by a public utility directly in the
7 generation, production, transmission, delivery or sale of
8 electricity.
9 "Purchaser" shall mean any person who uses or consumes,
10 within the corporate limits of the municipality, electricity
11 acquired in a purchase at retail.
12 In the case of persons engaged in the business of
13 transmitting messages through the use of mobile equipment,
14 such as cellular phones and paging systems, the gross
15 receipts from the business shall be deemed to originate
16 within the corporate limits of a municipality only if the
17 address to which the bills for the service are sent is within
18 those corporate limits. If, however, that address is not
19 located within a municipality that imposes a tax under this
20 Section, then (i) if the party responsible for the bill is
21 not an individual, the gross receipts from the business shall
22 be deemed to originate within the corporate limits of the
23 municipality where that party's principal place of business
24 in Illinois is located, and (ii) if the party responsible for
25 the bill is an individual, the gross receipts from the
26 business shall be deemed to originate within the corporate
27 limits of the municipality where that party's principal
28 residence in Illinois is located.
29 (e) Any municipality that imposes taxes upon public
30 utilities or upon the privilege of using or consuming
31 electricity pursuant to this Section whose territory includes
32 any part of an enterprise zone or federally designated
33 Foreign Trade Zone or Sub-Zone may, by a majority vote of its
34 corporate authorities, exempt from those taxes for a period
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1 not exceeding 20 years any specified percentage of gross
2 receipts of public utilities received from, or electricity
3 used or consumed by, business enterprises that:
4 (1) either (i) make investments that cause the
5 creation of a minimum of 200 full-time equivalent jobs in
6 Illinois, (ii) make investments of at least $175,000,000
7 that cause the creation of a minimum of 150 full-time
8 equivalent jobs in Illinois, or (iii) make investments
9 that cause the retention of a minimum of 1,000 full-time
10 jobs in Illinois; and
11 (2) are either (i) located in an Enterprise Zone
12 established pursuant to the Illinois Enterprise Zone Act
13 or (ii) Department of Commerce and Community Affairs
14 designated High Impact Businesses located in a federally
15 designated Foreign Trade Zone or Sub-Zone; and
16 (3) are certified by the Department of Commerce and
17 Community Affairs as complying with the requirements
18 specified in clauses (1) and (2) of this paragraph (e).
19 Upon adoption of the ordinance authorizing the exemption,
20 the municipal clerk shall transmit a copy of that ordinance
21 to the Department of Commerce and Community Affairs. The
22 Department of Commerce and Community Affairs shall determine
23 whether the business enterprises located in the municipality
24 meet the criteria prescribed in this paragraph. If the
25 Department of Commerce and Community Affairs determines that
26 the business enterprises meet the criteria, it shall grant
27 certification. The Department of Commerce and Community
28 Affairs shall act upon certification requests within 30 days
29 after receipt of the ordinance.
30 Upon certification of the business enterprise by the
31 Department of Commerce and Community Affairs, the Department
32 of Commerce and Community Affairs shall notify the Department
33 of Revenue of the certification. The Department of Revenue
34 shall notify the public utilities of the exemption status of
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1 the gross receipts received from, and the electricity used or
2 consumed by, the certified business enterprises. Such
3 exemption status shall be effective within 3 months after
4 certification.
5 (f) A municipality that imposes taxes upon public
6 utilities or upon the privilege of using or consuming
7 electricity under this Section and whose territory includes
8 part of another unit of local government or a school district
9 may by ordinance exempt the other unit of local government or
10 school district from those taxes.
11 (g) The amendment of this Section by Public Act 84-127
12 shall take precedence over any other amendment of this
13 Section by any other amendatory Act passed by the 84th
14 General Assembly before the effective date of Public Act
15 84-127.
16 (h) In any case in which, before July 1, 1992, a person
17 engaged in the business of transmitting messages through the
18 use of mobile equipment, such as cellular phones and paging
19 systems, has determined the municipality within which the
20 gross receipts from the business originated by reference to
21 the location of its transmitting or switching equipment, then
22 (i) neither the municipality to which tax was paid on that
23 basis nor the taxpayer that paid tax on that basis shall be
24 required to rebate, refund, or issue credits for any such tax
25 or charge collected from customers to reimburse the taxpayer
26 for the tax and (ii) no municipality to which tax would have
27 been paid with respect to those gross receipts if the
28 provisions of this amendatory Act of 1991 had been in effect
29 before July 1, 1992, shall have any claim against the
30 taxpayer for any amount of the tax.
31 (Source: P.A. 89-325, eff. 1-1-96; 90-16, eff. 6-16-97.)
32 ARTICLE 4
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1 Section 75. Effective date of Articles 2 and 5 and
2 Sections 25, 26, 30, 35 and 65. Sections 25 and 30 of this
3 amendatory Act of 1997 take effect January 1, 1998. Articles
4 2 and 5 and Sections 26, 35 and 65 of this amendatory Act of
5 1997 take effect August 1, 1998.
6 ARTICLE 5
7 Section 5-1. Short title. This Article shall be known
8 and may be cited as the Electricity Infrastructure
9 Maintenance Fee Law.
10 Section 5-2. Legislative intent. This Law is intended
11 to create a uniform system for the imposition and collection
12 of fees associated with the privilege of using the public
13 right of way for the delivery of electricity.
14 Section 5-3. Definitions. For the purposes of this Law:
15 (a) "Electricity deliverer" means any person who uses
16 any portion of any public rights of way of an Illinois
17 municipality for the purpose of distributing, transmitting,
18 or otherwise delivering electricity, regardless of its
19 source, for use or consumption within that municipality, and
20 not for resale. For purposes of this definition, use of the
21 public rights of way shall not include the use of real
22 property pursuant to the terms of an easement, lease, or
23 other similar property interest held over municipally-owned
24 property.
25 (b) "Delivery of electricity" means the distribution,
26 transmission, or other delivery of electricity through the
27 use of the municipality's public rights of way, regardless of
28 the source of the electricity, for use or consumption within
29 that municipality, and not for resale. The term includes the
30 delivery of electricity for use or consumption by the
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1 electricity deliverer, except for electricity used or
2 consumed by the electricity deliverer for the production or
3 distribution of electricity.
4 (c) "Person" means any natural individual, firm, trust,
5 estate, partnership, association, joint stock company, joint
6 adventure, corporation, limited liability company, municipal
7 corporation, the State or any of its political subdivisions,
8 any State university created by statute, or a receiver,
9 trustee, guardian, or other representative appointed by order
10 of any court.
11 (d) "Public rights of way" means streets, alleys, and
12 similar public ways, and all areas over and under such public
13 ways, title to which is owned by the municipality, and which
14 are dedicated exclusively to public use.
15 (e) "Purchaser" means any person who uses or consumes,
16 within the corporate limits of the municipality, electricity
17 acquired in a purchase at retail.
18 (f) "Resale" includes any and all sales of electricity
19 for the purpose of a subsequent sale to another, including
20 the sale of electric energy within the meaning of the Federal
21 Power Act (16 U.S.C. 824), but excluding the distribution of
22 electricity to occupants of a building or buildings, or to a
23 group of customers within the municipality, by a person who
24 owns, controls or manages, or acts as agent for, the
25 building, buildings, or group of customers.
26 Section 5-4. Right to franchise contract. A
27 municipality shall be entitled to require a franchise
28 contract from an electricity deliverer as a condition of
29 allowing the electricity deliverer to use any portion of any
30 public right of way within the municipality for the placement
31 and maintenance of facilities for distributing, transmitting,
32 or delivering electricity. Such franchise contract shall be
33 established by ordinance and shall be valid when accepted in
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1 writing by the electricity deliverer.
2 Section 5-5. Municipal electricity infrastructure
3 maintenance fee.
4 (a) Any municipality that on the effective date of this
5 Law had in effect a franchise agreement with an electricity
6 deliverer may impose an infrastructure maintenance fee upon
7 electricity deliverers, as compensation for granting
8 electricity deliverers the privilege of using public rights
9 of way, in an amount specified in subsection (b) of this
10 Section. If more than one electricity deliverer is
11 responsible for the delivery of the same electricity to the
12 same consumer, the fee related to that electricity shall be
13 imposed upon the electricity deliverer who last physically
14 uses the public way for delivery of that electricity prior to
15 its consumption.
16 (b) (1) In municipalities with a population greater than
17 500,000, the amount of the infrastructure maintenance fee
18 imposed under this Section shall not exceed the following
19 maximum rates for kilowatt-hours delivered within the
20 municipality to each purchaser:
21 (i) For the first 2,000 kilowatt-hours of
22 electricity used or consumed in a month: 0.53 cents per
23 kilowatt-hour;
24 (ii) For the next 48,000 kilowatt-hours of
25 electricity used or consumed in a month: 0.35 cents per
26 kilowatt-hour;
27 (iii) For the next 50,000 kilowatt-hours of
28 electricity used or consumed in a month: 0.31 cents per
29 kilowatt-hour;
30 (iv) For the next 400,000 kilowatt-hours of
31 electricity used or consumed in a month: 0.305 cents per
32 kilowatt-hour;
33 (v) For the next 500,000 kilowatt-hours of
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1 electricity used or consumed in a month: 0.30 cents per
2 kilowatt-hour;
3 (vi) For the next 2,000,000 kilowatt-hours of
4 electricity used or consumed in a month: 0.28 cents per
5 kilowatt-hour;
6 (vii) For the next 2,000,000 kilowatt-hours of
7 electricity used or consumed in a month: 0.275 cents per
8 kilowatt-hour;
9 (viii) For the next 5,000,000 kilowatt-hours of
10 electricity used or consumed in a month: 0.27 cents per
11 kilowatt-hour;
12 (ix) For the next 10,000,000 kilowatt-hours used or
13 consumed in a month: 0.265 cents per kilowatt-hour;
14 (x) For all kilowatt-hours of electricity in excess
15 of 20,000,000 kilowatt-hours used or consumed in a month:
16 0.26 cents per kilowatt-hour.
17 (2) In municipalities with a population of 500,000 or
18 less, the amount of the infrastructure maintenance fee
19 imposed under this Section shall be imposed based on the
20 kilowatt-hour categories set forth above and shall be
21 calculated on a monthly basis for kilowatt-hours of
22 electricity delivered to each purchaser; provided, that if,
23 immediately prior to imposing an infrastructure maintenance
24 fee, such municipality receives franchise fees, permit fees,
25 free electrical service, or other forms of compensation
26 pursuant to an existing franchise agreement, the rates
27 established for these kilowatt-hour categories for such
28 infrastructure maintenance fee during the term of the
29 franchise agreement shall not exceed rates reasonably
30 calculated, at the time such infrastructure maintenance fee
31 is initially imposed, to generate an amount of revenue
32 equivalent to the value of the compensation received or
33 provided under the franchise agreement.
34 (3) Notwithstanding any other provision of this
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1 subsection (b), a fee shall not be imposed if and to the
2 extent that imposition or collection of the fee would violate
3 the Constitution or statutes of the United States or the
4 statutes or Constitution of the State of Illinois.
5 (c) Any electricity deliverer may collect the amount of
6 a fee imposed under this Section from the purchaser using or
7 consuming the electricity with respect to which the fee was
8 imposed. The fee may be collected by the electricity
9 deliverer from the purchaser as a separately stated charge on
10 the purchaser's bills or in any other manner permitted from
11 time to time by law or by the electricity deliverer's
12 tariffs. The electricity deliverer shall be allowed credit
13 for any portion of the fee related to deliveries of
14 electricity the charges for which are written off as
15 uncollectible, provided, that if such charges are thereafter
16 collected, the electricity deliverer shall be obligated to
17 pay such fee. For purposes of this Section, any partial
18 payment not specifically identified by the purchaser shall be
19 deemed to be for the delivery of electricity. No ordinance
20 imposing the fee authorized by this Section with respect to
21 the kilowatt-hours delivered to non-residential customers
22 shall be effective until October 1, 1999. For purposes of
23 this Law, the period of time from the effective date of this
24 Law through and including September 30, 1999 shall be
25 referred to as the "Initial Period."
26 (d) As between the electricity deliverer and the
27 municipality, the fee authorized by this Section shall be
28 collected, enforced, and administered by the municipality
29 imposing the fee. Any municipality adopting an ordinance
30 imposing an infrastructure maintenance fee under this Law
31 shall give written notice to each electricity deliverer
32 subject to the fee not less than 60 days prior to the date
33 the fee is imposed.
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1 Section 5-6. Validity of existing franchise fees and
2 agreement; police powers.
3 (a) On and after the effective date of this Law, no
4 electricity deliverer paying an infrastructure maintenance
5 fee imposed under this Law may be denied the right to use,
6 directly or indirectly, public rights of way because of the
7 failure to pay any other fee or charge for the right to use
8 those rights of way except to the extent that the electricity
9 deliverer during the Initial Period fails under any existing
10 franchise agreement to pay franchise fees which are based on
11 the gross receipts or gross revenues attributable to
12 non-residential customers or to provide free electrical
13 service or other compensation attributable to non-residential
14 customers. A municipality that imposes an infrastructure
15 maintenance fee pursuant to Section 5-5 shall impose no other
16 fees or charges upon electricity deliverers for such use
17 except as provided by subsections (b) or (c) of this Section.
18 (b) Agreements between electricity deliverers and
19 municipalities regarding use of the public way shall remain
20 valid according to and for their stated terms. However, a
21 municipality that, pursuant to a franchise agreement in
22 existence on the effective date of this Law, receives any
23 franchise fees, permit fees, free electrical service or other
24 compensation for use of the public rights of way, may impose
25 an infrastructure maintenance fee pursuant to this Law only
26 if the municipality: (1) waives its right to receive all
27 compensation from the electricity deliverer for use of the
28 public rights of way during the time the infrastructure
29 maintenance fee is imposed, except as provided in subsection
30 (c), and except that during the Initial Period any
31 municipality may continue to receive franchise fees, free
32 electrical service or other compensation from the electricity
33 deliverer which are equal in value to the Initial Period
34 Compensation; and (2) provides written notice of this waiver
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1 to the appropriate electricity deliverer at the time that the
2 municipality provides notice of the imposition of the
3 infrastructure maintenance fee under subsection (d) of
4 Section 5-5. For purposes of this Section, "Initial Period
5 Compensation" shall mean the total amount of compensation due
6 under the existing franchise agreement during the Initial
7 Period less the amount of the infrastructure maintenance fee
8 imposed under this Section during the Initial Period.
9 (c) Nothing in this Law prohibits a municipality from
10 the reasonable exercise of its police powers over the public
11 rights of way. In addition, a municipality may require an
12 electricity deliverer to reimburse any special or
13 extraordinary expenses or costs reasonably incurred by the
14 municipality as a direct result of damages to its property or
15 public rights of way, such as the costs of restoration of
16 streets damaged by a electricity deliverer that does not make
17 timely repair of the damage, or for the loss of revenue due
18 to the inability to use public facilities as a direct result
19 of the actions of the electricity deliverer, such as parking
20 meters that are required to be removed because of work of an
21 electricity deliverer.
22 ARTICLE 6
23 Section 6-1. Short title. This Article may be cited as
24 the Renewable Energy, Energy Efficiency, and Coal Resources
25 Development Law of 1997.
26 Section 6-2. Findings and intent. The General Assembly
27 finds and declares that it is desirable to obtain the
28 environmental quality, public health, and fuel diversity
29 benefits of developing new renewable energy resources and
30 clean coal technologies for use in Illinois and to lower the
31 cost of renewable energy resources and clean coal resources
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1 provided to utility consumers. The General Assembly finds and
2 declares that the benefits of electricity from renewable
3 energy resources and clean coal technologies accrue to the
4 public at large, thus consumers and electric utilities and
5 alternative retail electric suppliers share an interest in
6 developing and using a significant level of these
7 environmentally preferable resources in the State's
8 electricity supply portfolio. The General Assembly finds and
9 declares that encouraging energy efficiency will improve the
10 environmental quality and public health in the State of
11 Illinois.
12 Section 6-3. Renewable energy resources program.
13 (a) The Department of Commerce and Community Affairs, to
14 be called the "Department" hereinafter in this Law, shall
15 administer the Renewable Energy Resources Program to provide
16 grants, loans, and other incentives to foster investment in
17 and the development and use of renewable energy resources.
18 (b) The Department shall establish eligibility criteria
19 for grants, loans, and other incentives to foster investment
20 in and the development and use of renewable energy resources.
21 These criteria shall be reviewed annually and adjusted as
22 necessary. The criteria should promote the goal of fostering
23 investment in and the development and use, in Illinois, of
24 renewable energy resources.
25 (c) The Department shall accept applications for grants,
26 loans, and other incentives to foster investment in and the
27 development and use of renewable energy resources.
28 (d) To the extent that funds are available and
29 appropriated, the Department shall provide grants, loans, and
30 other incentives to applicants that meet the criteria
31 specified by the Department.
32 (e) The Department shall conduct an annual study on the
33 use and availability of renewable energy resources in
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1 Illinois. Each year, the Department shall submit a report on
2 the study to the General Assembly. This report shall include
3 suggestions for legislation which will encourage the
4 development and use of renewable energy resources.
5 (f) As used in this Law, "renewable energy resources"
6 includes energy from wind, solar thermal energy, photovoltaic
7 cells and panels, dedicated crops grown for energy production
8 and organic waste biomass, hydropower that does not involve
9 new construction or significant expansion of hydropower dams,
10 and other such alternative sources of environmentally
11 preferable energy. "Renewable energy resources" does not
12 include, however, energy from the incineration, burning or
13 heating of waste wood, tires, garbage, general household,
14 institutional and commercial waste, industrial lunchroom or
15 office waste, landscape waste, or construction or demolition
16 debris.
17 Section 6-4. Renewable Energy Resources Trust Fund.
18 (a) A fund to be called the Renewable Energy Resources
19 Trust Fund is hereby established in the State Treasury.
20 (b) The Renewable Energy Resources Trust Fund shall be
21 administered by the Department to provide grants, loans, and
22 other incentives to foster investment in and the development
23 and use of renewable energy resources as provided in Section
24 6-3 of this Law.
25 (c) All funds used by the Department for the Renewable
26 Energy Resources Program shall be subject to appropriation by
27 the General Assembly.
28 Section 6-5. Renewable Energy Resources and Coal
29 Technology Development Assistance Charge.
30 (a) Beginning January 1, 1998, the following charges
31 shall be imposed:
32 (1) $0.05 per month on each account for residential
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1 electric service as defined in Section 13 of the Energy
2 Assistance Act of 1989;
3 (2) $0.05 per month on each account for residential
4 gas service as defined in Section 13 of the Energy
5 Assistance Act of 1989;
6 (3) $0.50 per month on each account for
7 nonresidential electric service, as defined in Section 13
8 of the Energy Assistance Act of 1989, taking less than 10
9 megawatts of peak demand during the previous calendar
10 year;
11 (4) $0.50 per month on each account for
12 nonresidential gas service, as defined in Section 13 of
13 the Energy Assistance Act of 1989, taking less than
14 4,000,000 therms of gas during the previous calendar
15 year;
16 (5) $37.50 per month on each account for
17 nonresidential electric service, as defined in Section 13
18 of the Energy Assistance Act of 1989, taking 10 megawatts
19 or greater of peak demand during the previous calendar
20 year; and
21 (6) $37.50 per month on each account for
22 nonresidential gas service, as defined in Section 13 of
23 the Energy Assistance Act of 1989, taking 4,000,000 or
24 more therms of gas during the previous calendar year.
25 (b) Except as provided in subsection (e) of this
26 Section, this charge is to be collected by electric and gas
27 utilities, whether owned by investors, municipalities or
28 cooperatives, and alternative retail electric suppliers on a
29 monthly basis from their respective customers.
30 (c) Fifty percent of the moneys collected pursuant to
31 this Section shall be deposited in the Renewable Energy
32 Resources Trust Fund. The remaining 50 percent of the moneys
33 collected pursuant to this Section shall be deposited in the
34 Coal Technology Development Assistance Fund for use under the
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1 Illinois Coal Technology Development Assistance Act.
2 (d) On a monthly basis, each utility and alternative
3 retail electric supplier collecting charges pursuant to this
4 Section shall remit to the Department for deposit in the
5 Renewable Energy Resources Trust Fund all moneys received as
6 payment of the charge provided for in this Section.
7 (e) The charges imposed by this Section shall only apply
8 to customers of municipal electric utilities and electric
9 cooperatives if the municipal electric utility or electric
10 cooperative makes an affirmative decision to impose the
11 charge. If a municipal electric utility or electric
12 cooperative does not assess this charge, its customers shall
13 not be eligible for the Renewable Energy Resources Program.
14 Section 6-6. Energy efficiency program.
15 (a) For the year beginning January 1, 1998, and
16 thereafter as provided in this Section, each electric utility
17 and each alternative retail electric supplier supplying
18 electric power and energy to retail customers located in the
19 State of Illinois shall contribute annually to the Department
20 a pro rata share of a total amount of $3,000,000 based upon
21 the number of kilowatt-hours sold by each such entity in the
22 12 months preceding the year of contribution. These
23 contributions shall be remitted to the Department on or
24 before June 30 of each year the contribution is due. The
25 funds received by the Department pursuant to this Section
26 shall be subject to the appropriation of funds by the General
27 Assembly. The Department shall place the funds remitted
28 under this Section in a trust fund, that is hereby created in
29 the State Treasury, called the Energy Efficiency Trust Fund.
30 (b) The Department shall disburse the moneys in the
31 Energy Efficiency Trust Fund to residential electric
32 customers to fund projects which the Department has
33 determined will promote energy efficiency in the State of
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1 Illinois. The Department shall establish a list of projects
2 eligible for grants from the Energy Efficiency Trust Fund
3 including, but not limited to, supporting energy efficiency
4 efforts for low-income households, replacing energy
5 inefficient windows with more efficient windows, replacing
6 energy inefficient appliances with more efficient appliances,
7 replacing energy inefficient lighting with more efficient
8 lighting, insulating dwellings and buildings, and such other
9 projects which will increase energy efficiency in homes and
10 rental properties.
11 (c) The Department shall establish criteria and an
12 application process for this grant program.
13 (d) The Department shall conduct a study of other
14 possible energy efficiency improvements and evaluate methods
15 for promoting energy efficiency and conservation, especially
16 for the benefit of low-income customers.
17 (e) The Department shall submit an annual report to the
18 General Assembly evaluating the effectiveness of the projects
19 and programs provided in this Section, and recommending
20 further legislation which will encourage additional
21 development and implementation of energy efficiency projects
22 and programs in Illinois and other actions that help to meet
23 the goals of this Section.
24 Section 6-7. Repeal. The provisions of this Law are
25 repealed 10 years after the effective date of this amendatory
26 Act of 1997 unless renewed by act of the General Assembly.
27 Section 80. The Illinois Coal Technology Development
28 Assistance Act is amended by changing Section 3 as follows:
29 (30 ILCS 730/3) (from Ch. 96 1/2, par. 8203)
30 Sec. 3. Transfers to Coal Technology Development
31 Assistance Funds. As soon as may be practicable after the
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1 first day of each month, the Department of Revenue shall
2 certify to the Treasurer an amount equal to 1/64 of the
3 revenue realized from the tax imposed by the Electricity
4 Excise Tax Law, Section 2 of the Public Utilities Revenue
5 Act, Section 2 of the Messages Tax Act, and Section 2 of the
6 Gas Revenue Tax Act, during the preceding month. Upon
7 receipt of the certification, the Treasurer shall transfer
8 the amount shown on such certification from the General
9 Revenue Fund to the Coal Technology Development Assistance
10 Fund, which is hereby created as a special fund in the State
11 treasury, except that no transfer shall be made in any month
12 in which the Fund from moneys received under this Section has
13 reached the following balance:
14 (1) $7,000,000 during fiscal year 1994.
15 (2) $8,500,000 during fiscal year 1995.
16 (3) $10,000,000 during fiscal year 1996 and each
17 year thereafter.
18 (Source: P.A. 88-391.)
19 Section 85. The Energy Assistance Act of 1989 is amended
20 by changing Section 5 and adding Sections 13 and 14 as
21 follows:
22 (305 ILCS 20/5) (from Ch. 111 2/3, par. 1405)
23 (Text of Section before amendment by P.A. 89-507)
24 Sec. 5. Policy Advisory Council.
25 (a) Within the Department of Commerce and Community
26 Affairs is created a Policy Advisory Council to be comprised
27 of:
28 (1) the following ex officio members or their
29 designees: the Director of Commerce and Community
30 Affairs who shall serve as Chair of the Committee, the
31 Director of Natural Resources, the Director of Public
32 Aid, and the Chairman of the Illinois Commerce
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1 Commission; and
2 (2) 9 persons who shall be appointed by the
3 Governor to serve 2 year terms and until their successors
4 are appointed and qualified, 3 of whom shall be persons
5 who represent low income households or organizations
6 which represent such households, 3 of whom shall be
7 representatives of public utilities or other entities
8 which provide winter energy services, and 3 of whom shall
9 be representatives of local agencies engaged by the
10 Department to assist in the administration of this Act.
11 (3) 6 persons who shall be appointed by the
12 Director of the Department of Commerce and Community
13 Affairs to serve 2 two year terms and until their
14 successors are appointed and qualified, who shall be
15 persons meeting such qualifications as may be required by
16 the federal government for the administration of the
17 Weatherization Assistance Program funded by the U.S.
18 Department of Energy and any such related energy
19 assistance programs.
20 (4) Members shall serve without compensation, but
21 may receive reimbursement for actual costs incurred in
22 fulfilling their duties as members of the Council.
23 (b) The Policy Advisory Council shall have the following
24 duties:
25 (1) to monitor the administration of this Act to
26 ensure effective, efficient, and coordinated program
27 development and implementation;
28 (2) to assist the Department in developing and
29 administering rules and regulations required to be
30 promulgated pursuant to this Act in a manner consistent
31 with the purpose and objectives of this Act;
32 (3) to facilitate and coordinate the collection and
33 exchange of all program data and other information needed
34 by the Department and others in fulfilling their duties
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1 pursuant to this Act;
2 (4) to advise the Department on the proper level of
3 support required for effective administration of the Act;
4 (5) to provide a written opinion concerning any
5 regulation proposed pursuant to this Act, and to review
6 and comment on any energy assistance or related plan
7 required to be prepared by the Department; and
8 (6) on or before March 1 of each year beginning in
9 1990, to prepare and submit a report to the Governor and
10 General Assembly which describes the activities of the
11 Department in the development and implementation of
12 energy assistance and related policies and programs,
13 which characterizes progress towards meeting the
14 objectives and requirements of this Act, and which
15 recommends any statutory changes which might be needed to
16 further such progress. The report submitted in 1991
17 shall include an analysis of and recommendations
18 regarding this Act's provisions concerning State payment
19 of pre-program arrearages; and.
20 (7) to advise the Department on the use of funds
21 collected pursuant to Section 13 of this Act, and on any
22 changes to existing low-income energy assistance programs
23 to make effective use of such funds, so long as such uses
24 and changes are consistent with the requirements of
25 subsection (a) of Section 13 of this Act.
26 (Source: P.A. 89-445, eff. 2-7-96.)
27 (Text of Section after amendment by P.A. 89-507)
28 Sec. 5. Policy Advisory Council.
29 (a) Within the Department of Commerce and Community
30 Affairs is created a Policy Advisory Council to be comprised
31 of:
32 (1) the following ex officio members or their
33 designees: the Director of Commerce and Community
34 Affairs who shall serve as Chair of the Committee, the
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1 Director of Natural Resources, the Secretary of Human
2 Services, and the Chairman of the Illinois Commerce
3 Commission; and
4 (2) 9 persons who shall be appointed by the
5 Governor to serve 2 year terms and until their successors
6 are appointed and qualified, 3 of whom shall be persons
7 who represent low income households or organizations
8 which represent such households, 3 of whom shall be
9 representatives of public utilities or other entities
10 which provide winter energy services, and 3 of whom shall
11 be representatives of local agencies engaged by the
12 Department to assist in the administration of this Act.
13 (3) 6 persons who shall be appointed by the
14 Director of the Department of Commerce and Community
15 Affairs to serve 2 two year terms and until their
16 successors are appointed and qualified, who shall be
17 persons meeting such qualifications as may be required by
18 the federal government for the administration of the
19 Weatherization Assistance Program funded by the U.S.
20 Department of Energy and any such related energy
21 assistance programs.
22 (4) Members shall serve without compensation, but
23 may receive reimbursement for actual costs incurred in
24 fulfilling their duties as members of the Council.
25 (b) The Policy Advisory Council shall have the following
26 duties:
27 (1) to monitor the administration of this Act to
28 ensure effective, efficient, and coordinated program
29 development and implementation;
30 (2) to assist the Department in developing and
31 administering rules and regulations required to be
32 promulgated pursuant to this Act in a manner consistent
33 with the purpose and objectives of this Act;
34 (3) to facilitate and coordinate the collection and
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1 exchange of all program data and other information needed
2 by the Department and others in fulfilling their duties
3 pursuant to this Act;
4 (4) to advise the Department on the proper level of
5 support required for effective administration of the Act;
6 (5) to provide a written opinion concerning any
7 regulation proposed pursuant to this Act, and to review
8 and comment on any energy assistance or related plan
9 required to be prepared by the Department; and
10 (6) on or before March 1 of each year beginning in
11 1990, to prepare and submit a report to the Governor and
12 General Assembly which describes the activities of the
13 Department in the development and implementation of
14 energy assistance and related policies and programs,
15 which characterizes progress towards meeting the
16 objectives and requirements of this Act, and which
17 recommends any statutory changes which might be needed to
18 further such progress. The report submitted in 1991
19 shall include an analysis of and recommendations
20 regarding this Act's provisions concerning State payment
21 of pre-program arrearages; and.
22 (7) to advise the Department on the use of funds
23 collected pursuant to Section 13 of this Act, and on any
24 changes to existing low-income energy assistance programs
25 to make effective use of such funds, so long as such uses
26 and changes are consistent with the requirements of
27 subsection (a) of Section 13 of this Act.
28 (Source: P.A. 89-445, eff. 2-7-96; 89-507, eff. 7-1-97.)
29 (305 ILCS 20/13 new)
30 Sec. 13. Supplemental Low-Income Energy Assistance Fund.
31 (a) The Supplemental Low-Income Energy Assistance Fund
32 is hereby created as a special fund in the State Treasury.
33 The Supplemental Low-Income Energy Assistance Fund is
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1 authorized to receive, by statutory deposit, the moneys
2 collected pursuant to this Section. Subject to
3 appropriation, the Department shall use moneys from the
4 Supplemental Low-Income Energy Assistance Fund for payments
5 to electric or gas public utilities, municipal electric or
6 gas utilities, and electric cooperatives on behalf of their
7 customers who are participants in the program authorized by
8 Section 4 of this Act, for the provision of weatherization
9 services and for administration of the Supplemental
10 Low-Income Energy Assistance Fund. The yearly expenditures
11 for weatherization may not exceed 10% of the amount collected
12 during the year pursuant to this Section. In determining
13 which customers will participate in the weatherization
14 component, the Department shall target weatherization for
15 those customers with the greatest energy burden, that is the
16 lowest income and greatest utility bills. The yearly
17 administrative expenses of the Supplemental Low-Income Energy
18 Assistance Fund may not exceed 10% of the amount collected
19 during that year pursuant to this Section.
20 (b) Notwithstanding the provisions of Section 16-111 of
21 the Public Utilities Act, each public utility, electric
22 cooperative, as defined in Section 3.4 of the Electric
23 Supplier Act, and municipal utility, as referenced in Section
24 3-105 of the Public Utilities Act, that is engaged in the
25 delivery of electricity or the distribution of natural gas
26 within the State of Illinois shall, effective January 1,
27 1998, assess each of its customer accounts a monthly Energy
28 Assistance Charge for the Supplemental Low-Income Energy
29 Assistance Fund. The monthly charge shall be as follows:
30 (1) $0.40 per month on each account for residential
31 electric service;
32 (2) $0.40 per month on each account for residential
33 gas service;
34 (3) $4 per month on each account for
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1 non-residential electric service which had less than 10
2 megawatts of peak demand during the previous calendar
3 year;
4 (4) $4 per month on each account for
5 non-residential gas service which had distributed to it
6 less than 4,000,000 therms of gas during the previous
7 calendar year;
8 (5) $300 per month on each account for
9 non-residential electric service which had 10 megawatts
10 or greater of peak demand during the previous calendar
11 year; and
12 (6) $300 per month on each account for
13 non-residential gas service which had 4,000,000 or more
14 therms of gas distributed to it during the previous
15 calendar year.
16 (c) For purposes of this Section:
17 (1) "residential electric service" means electric
18 utility service for household purposes delivered to a
19 dwelling of 2 or fewer units which is billed under a
20 residential rate, or electric utility service for
21 household purposes delivered to a dwelling unit or units
22 which is billed under a residential rate and is
23 registered by a separate meter for each dwelling unit;
24 (2) "residential gas service" means gas utility
25 service for household purposes distributed to a dwelling
26 of 2 or fewer units which is billed under a residential
27 rate, or gas utility service for household purposes
28 distributed to a dwelling unit or units which is billed
29 under a residential rate and is registered by a separate
30 meter for each dwelling unit;
31 (3) "non-residential electric service" means
32 electric utility service which is not residential
33 electric service; and
34 (4) "non-residential gas service" means gas utility
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1 service which is not residential gas service.
2 (d) At least 45 days prior to the date on which it must
3 begin assessing Energy Assistance Charges, each public
4 utility engaged in the delivery of electricity or the
5 distribution of natural gas shall file with the Illinois
6 Commerce Commission tariffs incorporating the Energy
7 Assistance Charge in other charges stated in such tariffs.
8 (e) The Energy Assistance Charge assessed by electric
9 and gas public utilities shall be considered a charge for
10 public utility service.
11 (f) On a monthly basis, each public utility, municipal
12 utility, and electric cooperative shall remit to the
13 Department of Revenue all moneys received as payment of the
14 Energy Assistance Charge. If a customer makes a partial
15 payment, a public utility, municipal utility, or electric
16 cooperative may elect either: (i) to apply such partial
17 payments first to amounts owed to the utility or cooperative
18 for its services and then to payment for the Energy
19 Assistance Charge or (ii) to apply such partial payments on a
20 pro-rata basis between amounts owed to the utility or
21 cooperative for its services and to payment for the Energy
22 Assistance Charge.
23 (g) The Department of Revenue shall deposit into the
24 Supplemental Low-Income Energy Assistance Fund all moneys
25 remitted to it in accordance with subsection (f) of this
26 Section.
27 (h) If as of December 31, 2002 the program authorized by
28 Section 4 of this Act has not been replaced by a new energy
29 assistance program which is in operation, then the General
30 Assembly shall review the program; provided however, that
31 after that date, any public utility, municipal utility, or
32 electric cooperative shall continue to assess an Energy
33 Assistance Charge which was originally assessed on or before
34 December 31, 2002 and which remains unpaid.
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1 On or before December 31, 2003, the Department shall
2 prepare a report for the General Assembly on the expenditure
3 of funds appropriated from the Low-Income Energy Assistance
4 Block Grant Fund for the program authorized under Section 4
5 of this Act.
6 (i) The Department of Revenue may establish such rules
7 as it deems necessary to implement this Section.
8 (j) The Department of Commerce and Community Affairs may
9 establish such rules as it deems necessary to implement this
10 Section.
11 (k) The charges imposed by this Section shall only apply
12 to customers of municipal electric utilities and electric
13 cooperatives if the municipal electric utility or electric
14 cooperative makes an affirmative decision to impose the
15 charge. If a municipal electric utility or electric
16 cooperative does not assess this charge, the Department may
17 not use funds from the Supplemental Low-Income Energy
18 Assistance Fund to provide benefits to its customers under
19 the program authorized by Section 4 of this Act.
20 (305 ILCS 20/14 new)
21 Sec. 14. Energy Assistance Program Design Group.
22 (a) This Section establishes an Energy Assistance
23 Program Design Group to advise the General Assembly with
24 respect to designing a low-income energy assistance program
25 for the period beginning on January 1, 2003.
26 (b) As promptly as practicable following the enactment
27 of this amendatory Act of 1997, the General Assembly, or a
28 Joint Committee thereof, shall establish an Energy Assistance
29 Program Design Group. The Energy Assistance Program Design
30 Group shall be chaired by the Director of the Department of
31 Commerce and Community Affairs and shall include one
32 representative of each of the following: (i) the Illinois
33 Commerce Commission; (ii) the Department of Natural
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1 Resources; (iii) electric public utilities; (iv) gas public
2 utilities; (v) combination gas and electric public utilities;
3 (vi) municipal utilities and electric cooperatives; (vii)
4 electricity and natural gas marketers; (viii) low-income
5 energy customers; (ix) local agencies engaged by the
6 Department of Commerce and Community Affairs to assist in the
7 administration of the Energy Assistance Act of 1989; (x)
8 residential energy customers; (xi) commercial energy
9 customers; and (xii) industrial energy customers.
10 (c) Within 3 months of its establishment, the Energy
11 Assistance Program Design Group shall meet to begin
12 consideration of the design and implementation of an energy
13 assistance program in Illinois for the period beginning on
14 January 1, 2003. Within 12 months of its establishment, the
15 Program Design Group shall hold public hearings to assist its
16 deliberations.
17 (d) The Program Design Group shall provide a report
18 containing its recommendations to the General Assembly on or
19 before January 1, 2002. This report must include the
20 following:
21 (1) recommendations on the definition of an
22 eligible low-income residential customer;
23 (2) recommendations regarding the continuation of
24 the program authorized by Section 4 of this Act and the
25 Supplemental Low-Income Energy Assistance Fund;
26 (3) recommendations on ensuring low-income
27 residential customers have access to essential energy
28 services;
29 (4) recommendations on addressing past due amounts
30 owed to utilities by low-income persons in Illinois;
31 (5) demographic and other information (including
32 household consumption information) necessary to determine
33 the total number of customers eligible for assistance,
34 the total number of customers likely to apply for
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1 assistance, and funding estimates for any recommended
2 program;
3 (6) recommendations on appropriate measures to
4 encourage energy conservation, efficiency, and
5 responsibility among low-income residential customers;
6 (7) any recommended changes to existing
7 legislation; and
8 (8) an estimate of the cost of implementing the
9 Program Design Group's recommendations.
10 (e) The recommendations adopted by the Program Design
11 Group shall be competitively neutral in their impact on
12 providers in the energy market and shall spread program costs
13 across the broadest possible base.
14 (f) The Department of Commerce and Community Affairs
15 shall hold public hearings on the recommendations of the
16 Energy Assistance Program Design Group during calendar year
17 2002.
18 Section 90. The State Finance Act is amended by adding
19 Sections 5.449, 5.450, and 5.451 as follows:
20 (30 ILCS 105/5.449 new)
21 Sec. 5.449. The Renewable Energy Resources Trust Fund.
22 (30 ILCS 105/5.450 new)
23 Sec. 5.450. The Energy Efficiency Trust Fund.
24 (30 ILCS 105/5.451 new)
25 Sec. 5.451. The Supplemental Low-Income Energy Assistance
26 Fund.
27 Section 95. The Illinois Antitrust Act is amended by
28 changing Section 5 as follows:
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1 (740 ILCS 10/5) (from Ch. 38, par. 60-5)
2 Sec. 5. No provisions of this Act shall be construed to
3 make illegal:
4 (1) the activities of any labor organization or of
5 individual members thereof which are directed solely to labor
6 objectives which are legitimate under the laws of either the
7 State of Illinois or the United States;
8 (2) the activities of any agricultural or horticultural
9 cooperative organization, whether incorporated or
10 unincorporated, or of individual members thereof, which are
11 directed solely to objectives of such cooperative
12 organizations which are legitimate under the laws of either
13 the State of Illinois or the United States;
14 (3) the activities of any public utility, as defined in
15 Section 3-105 of the Public Utilities Act to the extent that
16 such activities are subject to a clearly articulated and
17 affirmatively expressed State policy to replace competition
18 with regulation, where the conduct to be exempted is actively
19 supervised by the State itself the jurisdiction of the
20 Illinois Commerce Commission;
21 (4) The activities of a telecommunications carrier, as
22 defined in Section 13-202 of the Public Utilities Act, to the
23 extent those activities relate to the provision of
24 noncompetitive telecommunications services under the Public
25 Utilities Act and are subject to the jurisdiction of the
26 Illinois Commerce Commission or to the activities of
27 telephone mutual concerns referred to in Section 13-202 of
28 the Public Utilities Act to the extent those activities
29 relate to the provision and maintenance of telephone service
30 to owners and customers;
31 (5) the activities (including, but not limited to, the
32 making of or participating in joint underwriting or joint
33 reinsurance arrangement) of any insurer, insurance agent,
34 insurance broker, independent insurance adjuster or rating
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1 organization to the extent that such activities are subject
2 to regulation by the Director of Insurance of this State
3 under, or are permitted or are authorized by, the Insurance
4 Code or any other law of this State;
5 (6) the religious and charitable activities of any
6 not-for-profit corporation, trust or organization established
7 exclusively for religious or charitable purposes, or for both
8 purposes;
9 (7) the activities of any not-for-profit corporation
10 organized to provide telephone service on a mutual or
11 co-operative basis or electrification on a co-operative
12 basis, to the extent such activities relate to the marketing
13 and distribution of telephone or electrical service to owners
14 and customers;
15 (8) the activities engaged in by securities dealers who
16 are (i) licensed by the State of Illinois or (ii) members of
17 the National Association of Securities Dealers or (iii)
18 members of any National Securities Exchange registered with
19 the Securities and Exchange Commission under the Securities
20 Exchange Act of 1934, as amended, in the course of their
21 business of offering, selling, buying and selling, or
22 otherwise trading in or underwriting securities, as agent,
23 broker, or principal, and activities of any National
24 Securities Exchange so registered, including the
25 establishment of commission rates and schedules of charges;
26 (9) the activities of any board of trade designated as a
27 "contract market" by the Secretary of Agriculture of the
28 United States pursuant to Section 5 of the Commodity Exchange
29 Act, as amended;
30 (10) the activities of any motor carrier, rail carrier,
31 or common carrier by pipeline, as defined in the Common
32 Carrier by Pipeline Law of the Public Utilities Act, to the
33 extent that such activities are permitted or authorized by
34 the Act or are subject to regulation by the Illinois Commerce
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1 Commission;
2 (11) the activities of any state or national bank to the
3 extent that such activities are regulated or supervised by
4 officers of the state or federal government under the banking
5 laws of this State or the United States;
6 (12) the activities of any state or federal savings and
7 loan association to the extent that such activities are
8 regulated or supervised by officers of the state or federal
9 government under the savings and loan laws of this State or
10 the United States;
11 (13) the activities of any bona fide not-for-profit
12 association, society or board, of attorneys, practitioners of
13 medicine, architects, engineers, land surveyors or real
14 estate brokers licensed and regulated by an agency of the
15 State of Illinois, in recommending schedules of suggested
16 fees, rates or commissions for use solely as guidelines in
17 determining charges for professional and technical services;
18 (14) Conduct involving trade or commerce (other than
19 import trade or import commerce) with foreign nations unless:
20 (a) such conduct has a direct, substantial, and
21 reasonably foreseeable effect:
22 (i) on trade or commerce which is not trade or
23 commerce with foreign nations, or on import trade or
24 import commerce with foreign nations; or
25 (ii) on export trade or export commerce with
26 foreign nations of a person engaged in such trade or
27 commerce in the United States; and
28 (b) such effect gives rise to a claim under the
29 provisions of this Act, other than this subsection (14).
30 (c) If this Act applies to conduct referred to in
31 this subsection (14) only because of the provisions of
32 paragraph (a)(ii), then this Act shall apply to such
33 conduct only for injury to export business in the United
34 States which affects this State; or
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1 (15) the activities of a unit of local government or
2 school district and the activities of the employees, agents
3 and officers of a unit of local government or school
4 district.
5 (Source: P.A. 90-185, eff. 7-23-97.)
6 Section 97. No acceleration or delay. Where this Act
7 makes changes in a statute that is represented in this Act by
8 text that is not yet or no longer in effect (for example, a
9 Section represented by multiple versions), the use of that
10 text does not accelerate or delay the taking effect of (i)
11 the changes made by this Act or (ii) provisions derived from
12 any other Public Act.
13 ARTICLE 8
14 Section 99. Effective date. Except as provided in
15 Article 4, this Act takes effect on becoming law.".