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91_HB3026
LRB9109969JSpc
1 AN ACT to amend the Public Utilities Act by changing
2 Section 16-108.
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 16-108 as follows:
7 (220 ILCS 5/16-108)
8 Sec. 16-108. Recovery of costs associated with the
9 provision of delivery services.
10 (a) An electric utility shall file a delivery services
11 tariff with the Commission at least 210 days prior to the
12 date that it is required to begin offering those such
13 services pursuant to this Act. An electric utility shall
14 provide the components of delivery services that are subject
15 to the jurisdiction of the Federal Energy Regulatory
16 Commission at the same prices, terms and conditions set forth
17 in its applicable tariff as approved or allowed into effect
18 by that Commission. The Commission shall otherwise have the
19 authority pursuant to Article IX to review, approve, and
20 modify the prices, terms and conditions of those components
21 of delivery services not subject to the jurisdiction of the
22 Federal Energy Regulatory Commission, including the authority
23 to determine the extent to which such delivery services
24 should be offered on an unbundled basis. In making any such
25 determination the Commission shall consider, at a minimum,
26 the effect of additional unbundling on (i) the objective of
27 just and reasonable rates, (ii) electric utility employees,
28 and (iii) the development of competitive markets for electric
29 energy services in Illinois.
30 (b) The Commission shall enter an order approving, or
31 approving as modified, the delivery services tariff no later
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1 than 30 days prior to the date on which the electric utility
2 must commence offering such services. The Commission may
3 subsequently modify such tariff pursuant to this Act.
4 (c) The electric utility's tariffs shall define the
5 classes of its customers for purposes of delivery services
6 charges. Delivery services shall be priced and made
7 available to all retail customers electing delivery services
8 in each such class on a nondiscriminatory basis regardless of
9 whether the retail customer chooses the electric utility, an
10 affiliate of the electric utility, or another entity as its
11 supplier of electric power and energy. Charges for delivery
12 services shall be cost based, and shall allow the electric
13 utility to recover the costs of providing delivery services
14 through its charges to its delivery service customers that
15 use the facilities and services associated with such costs.
16 Such costs shall include the costs of owning, operating and
17 maintaining transmission and distribution facilities. The
18 Commission shall also be authorized to consider whether, and
19 if so to what extent, the following costs are appropriately
20 included in the electric utility's delivery services rates:
21 (i) the costs of that portion of generation facilities used
22 for the production and absorption of reactive power in order
23 that retail customers located in the electric utility's
24 service area can receive electric power and energy from
25 suppliers other than the electric utility, and (ii) the costs
26 associated with the use and redispatch of generation
27 facilities to mitigate constraints on the transmission or
28 distribution system in order that retail customers located in
29 the electric utility's service area can receive electric
30 power and energy from suppliers other than the electric
31 utility. Nothing in this subsection shall be construed as
32 directing the Commission to allocate any of the costs
33 described in (i) or (ii) that are found to be appropriately
34 included in the electric utility's delivery services rates to
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1 any particular customer group or geographic area in setting
2 delivery services rates.
3 (d) The Commission shall establish charges, terms and
4 conditions for delivery services that are just and reasonable
5 and shall take into account customer impacts when
6 establishing such charges. In establishing charges, terms and
7 conditions for delivery services, the Commission shall take
8 into account voltage level differences. A retail customer
9 shall have the option to request to purchase electric service
10 at any delivery service voltage reasonably and technically
11 feasible from the electric facilities serving that customer's
12 premises provided that there are no significant adverse
13 impacts upon system reliability or system efficiency. A
14 retail customer shall also have the option to request to
15 purchase electric service at any point of delivery that is
16 reasonably and technically feasible provided that there are
17 no significant adverse impacts on system reliability or
18 efficiency. Such requests shall not be unreasonably denied.
19 (e) Electric utilities shall recover the costs of
20 installing, operating or maintaining facilities for the
21 particular benefit of one or more delivery services
22 customers, including without limitation any costs incurred in
23 complying with a customer's request to be served at a
24 different voltage level, directly from the retail customer or
25 customers for whose benefit the costs were incurred, to the
26 extent such costs are not recovered through the charges
27 referred to in subsections (c) and (d) of this Section.
28 (f) An electric utility shall be entitled but not
29 required to implement transition charges in conjunction with
30 the offering of delivery services pursuant to Section 16-104.
31 If an electric utility implements transition charges, it
32 shall implement such charges for all delivery services
33 customers and for all customers described in subsection (h),
34 but shall not implement transition charges for power and
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1 energy that a retail customer takes from cogeneration or
2 self-generation facilities located on that retail customer's
3 premises, if such facilities meet the following criteria:
4 (i) the cogeneration or self-generation facilities
5 serve a single retail customer and are located on that
6 retail customer's premises (for purposes of this
7 subparagraph and subparagraph (ii), an industrial or
8 manufacturing retail customer and a third party
9 contractor that is served by such industrial or
10 manufacturing customer through such retail customer's own
11 electrical distribution facilities under the
12 circumstances described in subsection (vi) of the
13 definition of "alternative retail electric supplier" set
14 forth in Section 16-102, shall be considered a single
15 retail customer);
16 (ii) the cogeneration or self-generation facilities
17 either (A) are sized pursuant to generally accepted
18 engineering standards for the retail customer's
19 electrical load at that premises (taking into account
20 standby or other reliability considerations related to
21 that retail customer's operations at that site) or (B) if
22 the facility is a cogeneration facility located on the
23 retail customer's premises, the retail customer is the
24 thermal host for that facility and the facility has been
25 designed to meet that retail customer's thermal energy
26 requirements resulting in electrical output beyond that
27 retail customer's electrical demand at that premises,
28 comply with the operating and efficiency standards
29 applicable to "qualifying facilities" specified in title
30 18 Code of Federal Regulations Section 292.205 as in
31 effect on the effective date of this amendatory Act of
32 1999;
33 (iii) the retail customer on whose premises the
34 facilities are located either has an exclusive right to
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1 receive, and corresponding obligation to pay for, all of
2 the electrical capacity of the facility, or in the case
3 of a cogeneration facility that has been designed to meet
4 the retail customer's thermal energy requirements at that
5 premises, an identified amount of the electrical capacity
6 of the facility, over a minimum 5-year period; and
7 (iv) if the cogeneration facility is sized for the
8 retail customer's thermal load at that premises but
9 exceeds the electrical load, any sales of excess power or
10 energy are made only at wholesale, are subject to the
11 jurisdiction of the Federal Energy Regulatory Commission,
12 and are not for the purpose of circumventing the
13 provisions of this subsection (f).
14 If a generation facility located at a retail customer's
15 premises does not meet the above criteria, an electric
16 utility implementing transition charges shall implement a
17 transition charge until December 31, 2006 for any power and
18 energy taken by such retail customer from such facility as if
19 such power and energy had been delivered by the electric
20 utility. Provided, however, that an industrial retail
21 customer that is taking power from a generation facility that
22 does not meet the above criteria but that is located on such
23 customer's premises will not be subject to a transition
24 charge for the power and energy taken by such retail customer
25 from such generation facility if the facility does not serve
26 any other retail customer and either was installed on behalf
27 of the customer and for its own use prior to January 1, 1997,
28 or is both predominantly fueled by byproducts of such
29 customer's manufacturing process at such premises and sells
30 or offers an average of 300 megawatts or more of electricity
31 produced from such generation facility into the wholesale
32 market. Such charges shall be calculated as provided in
33 Section 16-102, and shall be collected on each kilowatt-hour
34 delivered under a delivery services tariff to a retail
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1 customer from the date the customer first takes delivery
2 services until December 31, 2006 except as provided in
3 subsection (h) of this Section. Provided, however, that an
4 electric utility, other than an electric utility providing
5 service to at least 1,000,000 customers in this State on
6 January 1, 1999, shall be entitled to petition for entry of
7 an order by the Commission authorizing the electric utility
8 to implement transition charges for an additional period
9 ending no later than December 31, 2008. The electric utility
10 shall file its petition with supporting evidence no earlier
11 than 16 months, and no later than 12 months, prior to
12 December 31, 2006. The Commission shall hold a hearing on
13 the electric utility's petition and shall enter its order no
14 later than 8 months after the petition is filed. The
15 Commission shall determine whether and to what extent the
16 electric utility shall be authorized to implement transition
17 charges for an additional period. The Commission may
18 authorize the electric utility to implement transition
19 charges for some or all of the additional period, and shall
20 determine the mitigation factors to be used in implementing
21 such transition charges; provided, that the Commission shall
22 not authorize mitigation factors less than 110% of those in
23 effect during the 12 months ended December 31, 2006. In
24 making its determination, the Commission shall consider the
25 following factors: the necessity to implement transition
26 charges for an additional period in order to maintain the
27 financial integrity of the electric utility; the prudence of
28 the electric utility's actions in reducing its costs since
29 the effective date of this amendatory Act of 1997; the
30 ability of the electric utility to provide safe, adequate and
31 reliable service to retail customers in its service area; and
32 the impact on competition of allowing the electric utility to
33 implement transition charges for the additional period.
34 (g) The electric utility shall file tariffs that
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1 establish the transition charges to be paid by each class of
2 customers to the electric utility in conjunction with the
3 provision of delivery services. The electric utility's
4 tariffs shall define the classes of its customers for
5 purposes of calculating transition charges. The electric
6 utility's tariffs shall provide for the calculation of
7 transition charges on a customer-specific basis for any
8 retail customer whose average monthly maximum electrical
9 demand on the electric utility's system during the 6 months
10 with the customer's highest monthly maximum electrical
11 demands equals or exceeds 3.0 megawatts for electric
12 utilities having more than 1,000,000 customers, and for other
13 electric utilities for any customer that has an average
14 monthly maximum electrical demand on the electric utility's
15 system of one megawatt or more, and (A) for which there
16 exists data on the customer's usage during the 3 years
17 preceding the date that the customer became eligible to take
18 delivery services, or (B) for which there does not exist data
19 on the customer's usage during the 3 years preceding the date
20 that the customer became eligible to take delivery services,
21 if in the electric utility's reasonable judgment there exists
22 comparable usage information or a sufficient basis to develop
23 such information, and further provided that the electric
24 utility can require customers for which an individual
25 calculation is made to sign contracts that set forth the
26 transition charges to be paid by the customer to the electric
27 utility pursuant to the tariff.
28 (h) An electric utility shall also be entitled to file
29 tariffs that allow it to collect transition charges from
30 retail customers in the electric utility's service area that
31 do not take delivery services but that take electric power or
32 energy from an alternative retail electric supplier or from
33 an electric utility other than the electric utility in whose
34 service area the customer is located. Such charges shall be
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1 calculated, in accordance with the definition of transition
2 charges in Section 16-102, for the period of time that the
3 customer would be obligated to pay transition charges if it
4 were taking delivery services, except that no deduction for
5 delivery services revenues shall be made in such calculation,
6 and usage data from the customer's class shall be used where
7 historical usage data is not available for the individual
8 customer. The customer shall be obligated to pay such
9 charges on a lump sum basis on or before the date on which
10 the customer commences to take service from the alternative
11 retail electric supplier or other electric utility, provided,
12 that the electric utility in whose service area the customer
13 is located shall offer the customer the option of signing a
14 contract pursuant to which the customer pays such charges
15 ratably over the period in which the charges would otherwise
16 have applied.
17 (i) An electric utility shall be entitled to add to the
18 bills of delivery services customers charges pursuant to
19 Sections 9-221, 9-222 (except as provided in Section
20 9-222.1), and Section 16-114 of this Act, Section 5-5 of the
21 Electricity Infrastructure Maintenance Fee Law, Section 6-5
22 of the Renewable Energy, Energy Efficiency, and Coal
23 Resources Development Law of 1997, and Section 13 of the
24 Energy Assistance Act of 1989.
25 (j) If a retail customer that obtains electric power and
26 energy from cogeneration or self-generation facilities
27 installed for its own use on or before January 1, 1997,
28 subsequently takes service from an alternative retail
29 electric supplier or an electric utility other than the
30 electric utility in whose service area the customer is
31 located for any portion of the customer's electric power and
32 energy requirements formerly obtained from those facilities
33 (including that amount purchased from the utility in lieu of
34 such generation and not as standby power purchases, under a
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1 cogeneration displacement tariff in effect as of the
2 effective date of this amendatory Act of 1997), the
3 transition charges otherwise applicable pursuant to
4 subsections (f), (g), or (h) of this Section shall not be
5 applicable in any year to that portion of the customer's
6 electric power and energy requirements formerly obtained from
7 those facilities, provided, that for purposes of this
8 subsection (j), such portion shall not exceed the average
9 number of kilowatt-hours per year obtained from the
10 cogeneration or self-generation facilities during the 3 years
11 prior to the date on which the customer became eligible for
12 delivery services, except as provided in subsection (f) of
13 Section 16-110.
14 (Source: P.A. 90-561, eff. 12-16-97; 91-50, eff. 6-30-99.)