State of Illinois
91st General Assembly
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91_HB3025

 
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 1        AN ACT to amend the  Public  Utilities  Act  by  changing
 2    Section 16-102.

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

 5        Section 5.   The  Public  Utilities  Act  is  amended  by
 6    changing Section 16-102 as follows:

 7        (220 ILCS 5/16-102)
 8        Sec.  16-102.   Definitions.  As used in For the purposes
 9    of this Article the following terms shall be defined  as  set
10    forth in this Section.
11        "Alternative   retail   electric  supplier"  means  every
12    person,  cooperative,  corporation,  municipal   corporation,
13    company,  association,  joint  stock  company or association,
14    firm,  partnership,  individual,  or  other   entity,   their
15    lessees,  trustees,  or  receivers  appointed  by  any  court
16    whatsoever,  that  offers  electric power or energy for sale,
17    lease or in exchange for other value received to one or  more
18    retail   customers,  or  that  engages  in  the  delivery  or
19    furnishing  of  electric  power  or  energy  to  such  retail
20    customers, and shall include, without limitation,  resellers,
21    aggregators  and  power  marketers, but shall not include (i)
22    electric utilities (or any agent of the electric  utility  to
23    the extent the electric utility provides tariffed services to
24    retail  customers  through  that  agent),  (ii)  any electric
25    cooperative or municipal system as defined in Section  17-100
26    to  the  extent  that  the  electric cooperative or municipal
27    system is serving retail customers within any area  in  which
28    it  is  or would be entitled to provide service under the law
29    in effect immediately prior to the  effective  date  of  this
30    amendatory  Act of 1997, (iii) a public utility that is owned
31    and operated by any public institution of higher education of
 
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 1    this State, or a public utility that is owned by such  public
 2    institution  of  higher  education and operated by any of its
 3    lessees or operating agents, within any area in which  it  is
 4    or  would  be  entitled  to  provide service under the law in
 5    effect immediately  prior  to  the  effective  date  of  this
 6    amendatory  Act of 1997, (iv) a retail customer to the extent
 7    that customer obtains its electric power and energy from that
 8    customer's own cogeneration  or  self-generation  facilities,
 9    (v) an entity that owns, operates, sells, or arranges for the
10    installation    of   a   customer's   own   cogeneration   or
11    self-generation facilities, but only to the extent the entity
12    is  engaged  in  owning,  selling  or   arranging   for   the
13    installation  of such facility,  or operating the facility on
14    behalf of such customer, provided however that any such third
15    party owner or operator of a facility built after January  1,
16    1999, complies with the labor provisions of Section 16-128(a)
17    as  though  such  third  party  were  an  alternative  retail
18    electric  supplier,  or  (vi)  an industrial or manufacturing
19    customer that owns its own distribution  facilities,  to  the
20    extent   that   the   customer  provides  service  from  that
21    distribution system to a third-party  contractor  located  on
22    the  customer's premises that is integrally and predominantly
23    engaged  in  the  customer's  industrial   or   manufacturing
24    process;  provided,  that  if the industrial or manufacturing
25    customer has elected delivery services,  the  customer  shall
26    pay  transition  charges applicable to the electric power and
27    energy consumed by the  third-party  contractor  unless  such
28    charges  are  otherwise  paid  by the third party contractor,
29    which shall be calculated based on the usage of, and the base
30    rates or the contract rates applicable  to,  the  third-party
31    contractor in accordance with Section 16-102.
32        "Base  rates" means the rates for those tariffed services
33    that the electric utility is required to  offer  pursuant  to
34    subsection  (a) of Section 16-103 and that were identified in
 
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 1    a rate order for collection of the  electric  utility's  base
 2    rate  revenue  requirement,  excluding (i) separate automatic
 3    rate adjustment  riders  then  in  effect,  (ii)  special  or
 4    negotiated  contract  rates,  (iii) delivery services tariffs
 5    filed pursuant to Section 16-108, (iv) real-time pricing,  or
 6    (v)  tariffs that were in effect prior to October 1, 1996 and
 7    that based charges for services on an  index  or  average  of
 8    other  utilities'  charges, but including (vi) any subsequent
 9    redesign  of  such  rates  for  tariffed  services  that   is
10    authorized by the Commission after notice and hearing.
11        "Competitive  service"  includes (i) any service that has
12    been declared to be competitive pursuant to Section 16-113 of
13    this Act, (ii) contract service, and  (iii)  services,  other
14    than   tariffed  services,  that  are  related  to,  but  not
15    necessary for, the provision of electric power and energy  or
16    delivery services.
17        "Contract  service"  means  (1)  services,  including the
18    provision of electric power and  energy  or  other  services,
19    that  are  provided  by  mutual agreement between an electric
20    utility and a retail customer that is located in the electric
21    utility's service  area,  provided  that,  delivery  services
22    shall  not  be  a  contract  service  until such services are
23    declared competitive pursuant to  Section  16-113;  and  also
24    means  (2)  the  provision of electric power and energy by an
25    electric utility to retail  customers  outside  the  electric
26    utility's service area pursuant to Section 16-116.  Provided,
27    however,  contract  service does not include electric utility
28    services provided  pursuant  to  (i)  contracts  that  retail
29    customers are required to execute as a condition of receiving
30    tariffed   services,  or  (ii)  special  or  negotiated  rate
31    contracts for electric utility  services  that  were  entered
32    into  between an electric utility and a retail customer prior
33    to the effective date of this  amendatory  Act  of  1997  and
34    filed with the Commission.
 
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 1        "Delivery  services" means those services provided by the
 2    electric  utility  that  are  necessary  in  order  for   the
 3    transmission  and  distribution  systems  to function so that
 4    retail customers located in the  electric  utility's  service
 5    area  can  receive  electric  power and energy from suppliers
 6    other than the electric utility, and shall  include,  without
 7    limitation, standard metering and billing services.
 8        "Electric  utility" means a public utility, as defined in
 9    Section 3-105 of this Act, that  has  a  franchise,  license,
10    permit  or  right  to  furnish  or sell electricity to retail
11    customers within a service area.
12        "Mandatory transition period" means the period  from  the
13    effective date of this amendatory Act of 1997 through January
14    1, 2005.
15        "Municipal  system"  shall  have the meaning set forth in
16    Section 17-100.
17        "Real-time pricing" means charges for delivered  electric
18    power  and  energy  that  vary  on  an hour-to-hour basis for
19    nonresidential retail customers and that vary on  a  periodic
20    basis during the day for residential retail customers.
21        "Retail  customer"  means  a single entity using electric
22    power or energy at a single premises and that (A) either  (i)
23    is receiving or is eligible to receive tariffed services from
24    an  electric  utility,  or (ii) that is served by a municipal
25    system or electric cooperative within any area in  which  the
26    municipal  system  or  electric  cooperative  is  or would be
27    entitled  to  provide  service  under  the  law   in   effect
28    immediately  prior  to  the effective date of this amendatory
29    Act of 1997, or (B) an entity which on the effective date  of
30    this Act was receiving electric service from a public utility
31    and   (i)   was  engaged  in  the   practice  of  resale  and
32    redistribution of such electricity within a building prior to
33    January 2, 1957, or (ii) was providing lighting  services  to
34    tenants in a multi-occupancy building, but only to the extent
 
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 1    such resale, redistribution or lighting service is authorized
 2    by  the electric utility's tariffs that were on file with the
 3    Commission on the effective date of this Act.
 4        "Service area" means (i) the geographic area within which
 5    an electric utility was lawfully entitled to provide electric
 6    power and energy to retail customers as of the effective date
 7    of this  amendatory  Act  of  1997,  and  includes  (ii)  the
 8    location of any retail customer to which the electric utility
 9    was  lawfully  providing  electric  utility  services on such
10    effective date.
11        "Small   commercial   retail   customer"   means    those
12    nonresidential   retail  customers  of  an  electric  utility
13    consuming  15,000  kilowatt-hours  or  less  of   electricity
14    annually in its service area.
15        "Tariffed  service"  means  services  provided  to retail
16    customers by an electric utility as defined by its  rates  on
17    file  with  the  Commission  pursuant  to  the  provisions of
18    Article IX of this Act, but  shall  not  include  competitive
19    services.
20        "Transition charge" means a charge expressed in cents per
21    kilowatt-hour  that  is calculated for a customer or class of
22    customers as follows for  each  year  in  which  an  electric
23    utility is entitled to recover transition charges as provided
24    in Section 16-108:
25             (1)  the  amount of revenue that an electric utility
26        would receive from the retail customer or customers if it
27        were serving such customers' electric  power  and  energy
28        requirements  as  a  tariffed service based on (A) all of
29        the customers' actual usage during the 3 years ending  90
30        days prior to the date on which such customers were first
31        eligible   for  delivery  services  pursuant  to  Section
32        16-104, and (B) on  (i)  the  base  rates  in  effect  on
33        October  1, 1996 (adjusted for the reductions required by
34        subsection (b)  of  Section  16-111,  for  any  reduction
 
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 1        resulting  from  a rate decrease under Section 16-101(b),
 2        for any restatement of base  rates  made  in  conjunction
 3        with   an  elimination  of  the  fuel  adjustment  clause
 4        pursuant to subsection (b), (d), or (f) of Section  9-220
 5        and  for  any  removal of decommissioning costs from base
 6        rates  pursuant  to  Section  16-114)  and  any  separate
 7        automatic  rate   adjustment   riders   (other   than   a
 8        decommissioning  rate as defined in Section 16-114) under
 9        which the customers were  receiving  or,  had  they  been
10        customers,  would have received electric power and energy
11        from the electric utility  during  the  year  immediately
12        preceding  the  date  on  which such customers were first
13        eligible for delivery service pursuant to Section 16-104,
14        or (ii) to the extent  applicable,  any  contract  rates,
15        including   contracts   or   rates  for  consolidated  or
16        aggregated  billing,  under  which  such  customers  were
17        receiving electric power and  energy  from  the  electric
18        utility during such year;
19             (2)  less  the amount of revenue, other than revenue
20        from transition charges and decommissioning  rates,  that
21        the  electric  utility  would  receive  from  such retail
22        customers for delivery services provided by the  electric
23        utility,  assuming  such  customers  were taking delivery
24        services for all of their usage, based  on  the  delivery
25        services  tariffs in effect during the year for which the
26        transition charge is being calculated and  on  the  usage
27        identified in paragraph (1);
28             (3)  less  the  market  value for the electric power
29        and energy that the electric utility would have  used  to
30        supply  all  of such customers' electric power and energy
31        requirements, as a tariffed service, based on  the  usage
32        identified  in  paragraph  (1),  with  such  market value
33        determined in accordance with Section 16-112 of this Act;
34             (4)  less the following amount which represents  the
 
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 1        amount  to  be attributed to new revenue sources and cost
 2        reductions by the electric utility through the end of the
 3        period for which transition costs are recovered  pursuant
 4        to  Section  16-108, referred to in this Article XVI as a
 5        "mitigation factor":
 6                  (A)  for nonresidential  retail  customers,  an
 7             amount  equal  to  the  greater of (i) 0.5 cents per
 8             kilowatt-hour during  the  period  October  1,  1999
 9             through   December   31,   2004,   0.6   cents   per
10             kilowatt-hour  in  calendar year 2005, and 0.9 cents
11             per kilowatt-hour in calendar year 2006,  multiplied
12             in  each  year  by the usage identified in paragraph
13             (1), or  (ii)  an  amount  equal  to  the  following
14             percentages  of  the amount produced by applying the
15             applicable base  rates  (adjusted  as  described  in
16             subparagraph  (1)(B))  or contract rate to the usage
17             identified in  paragraph  (1):  8%  for  the  period
18             October  1,  1999  through December 31, 2002, 10% in
19             calendar years 2003 and 2004, 11% in  calendar  year
20             2005 and 12% in calendar year 2006; and
21                  (B)  for   residential   retail  customers,  an
22             amount equal to the  following  percentages  of  the
23             amount produced by applying the base rates in effect
24             on   October  1,  1996  (adjusted  as  described  in
25             subparagraph (1)(B))  to  the  usage  identified  in
26             paragraph  (1):  (i)  6%  from  May  1, 2002 through
27             December 31, 2002, (ii) 7% in  calendar  years  2003
28             and  2004,  (iii) 8% in calendar year 2005, and (iv)
29             10% in calendar year 2006;
30             (5)  divided  by  the  usage   of   such   customers
31        identified in paragraph (1),
32    provided  that the transition charge shall never be less than
33    zero.
34        "Unbundled service" means a component or constituent part
 
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 1    of a tariffed service which the electric utility subsequently
 2    offers separately to its customers.
 3    (Source: P.A. 90-561, eff. 12-16-97; 91-50, eff. 6-30-99.)

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