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91_SB0024enr SB24 Enrolled LRB9100188JSgc 1 AN ACT to encourage the development of cogeneration and 2 self-generation of electricity. 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 Sections 16-102, 16-104, 16-108, 16-110, 16-111, 7 16-115, and 16-130 and adding Sections 16-111.1, 16-111.2, 8 and 16-114.1 as follows: 9 (220 ILCS 5/16-102) 10 Sec. 16-102. Definitions. For the purposes of this 11 Article the following terms shall be defined as set forth in 12 this Section. 13 "Alternative retail electric supplier" means every 14 person, cooperative, corporation, municipal corporation, 15 company, association, joint stock company or association, 16 firm, partnership, individual, or other entity, their 17 lessees, trustees, or receivers appointed by any court 18 whatsoever, that offers electric power or energy for sale, 19 lease or in exchange for other value received to one or more 20 retail customers, or that engages in the delivery or 21 furnishing of electric power or energy to such retail 22 customers, and shall include, without limitation, resellers, 23 aggregators and power marketers, but shall not include (i) 24 electric utilities (or any agent of the electric utility to 25 the extent the electric utility provides tariffed services to 26 retail customers through that agent), (ii) any electric 27 cooperative or municipal system as defined in Section 17-100 28 to the extent that the electric cooperative or municipal 29 system is serving retail customers within any area in which 30 it is or would be entitled to provide service under the law 31 in effect immediately prior to the effective date of this SB24 Enrolled -2- LRB9100188JSgc 1 amendatory Act of 1997, (iii) a public utility that is owned 2 and operated by any public institution of higher education of 3 this State, or a public utility that is owned by such public 4 institution of higher education and operated by any of its 5 lessees or operating agents, within any area in which it is 6 or would be entitled to provide service under the law in 7 effect immediately prior to the effective date of this 8 amendatory Act of 1997, (iv) aanyretail customer to the 9 extent that customer obtains its electric power and energy 10 from that customer'sitsown cogeneration or self-generation 11 facilities, (v) ananyentity that owns, operates, sells, or 12 arranges for the installation of a customer's own 13 cogeneration or self-generation facilitiesto be owned by a14retail customer described in subparagraph (iv), but only to 15 the extent the entity is engaged in owning, selling or 16 arranging for thesuchinstallation of such facility, or 17 operating the facility on behalf of such customer, provided 18 however that any such third party owner or operator of a 19 facility built after January 1, 1999, complies with the labor 20 provisions of Section 16-128(a) as though such third party 21 were an alternative retail electric supplier, or (vi) an 22 industrial or manufacturing customer that owns its own 23 distribution facilities, to the extent that the customer 24 provides service from that distribution system to a 25 third-party contractor located on the customer's premises 26 that is integrally and predominantly engaged in the 27 customer's industrial or manufacturing process; provided, 28 that if the industrial or manufacturing customer has elected 29 delivery services, the customer shall pay transition charges 30 applicable to the electric power and energy consumed by the 31 third-party contractor unless such charges are otherwise paid 32 by the third party contractor, which shall be calculated 33 based on the usage of, and the base rates or the contract 34 rates applicable to, the third-party contractor in accordance SB24 Enrolled -3- LRB9100188JSgc 1 with Section 16-102. 2 "Base rates" means the rates for those tariffed services 3 that the electric utility is required to offer pursuant to 4 subsection (a) of Section 16-103 and that were identified in 5 a rate order for collection of the electric utility's base 6 rate revenue requirement, excluding (i) separate automatic 7 rate adjustment riders then in effect, (ii) special or 8 negotiated contract rates, (iii) delivery services tariffs 9 filed pursuant to Section 16-108, (iv) real-time pricing, or 10 (v) tariffs that were in effect prior to October 1, 1996 and 11 that based charges for services on an index or average of 12 other utilities' charges, but including (vi) any subsequent 13 redesign of such rates for tariffed services that is 14 authorized by the Commission after notice and hearing. 15 "Competitive service" includes (i) any service that has 16 been declared to be competitive pursuant to Section 16-113 of 17 this Act, (ii) contract service, and (iii) services, other 18 than tariffed services, that are related to, but not 19 necessary for, the provision of electric power and energy or 20 delivery services. 21 "Contract service" means (1) services, including the 22 provision of electric power and energy or other services, 23 that are provided by mutual agreement between an electric 24 utility and a retail customer that is located in the electric 25 utility's service area, provided that, delivery services 26 shall not be a contract service until such services are 27 declared competitive pursuant to Section 16-113; and also 28 means (2) the provision of electric power and energy by an 29 electric utility to retail customers outside the electric 30 utility's service area pursuant to Section 16-116. Provided, 31 however, contract service does not include electric utility 32 services provided pursuant to (i) contracts that retail 33 customers are required to execute as a condition of receiving 34 tariffed services, or (ii) special or negotiated rate SB24 Enrolled -4- LRB9100188JSgc 1 contracts for electric utility services that were entered 2 into between an electric utility and a retail customer prior 3 to the effective date of this amendatory Act of 1997 and 4 filed with the Commission. 5 "Delivery services" means those services provided by the 6 electric utility that are necessary in order for the 7 transmission and distribution systems to function so that 8 retail customers located in the electric utility's service 9 area can receive electric power and energy from suppliers 10 other than the electric utility, and shall include, without 11 limitation, standard metering and billing services. 12 "Electric utility" means a public utility, as defined in 13 Section 3-105 of this Act, that has a franchise, license, 14 permit or right to furnish or sell electricity to retail 15 customers within a service area. 16 "Mandatory transition period" means the period from the 17 effective date of this amendatory Act of 1997 through January 18 1, 2005. 19 "Municipal system" shall have the meaning set forth in 20 Section 17-100. 21 "Real-time pricing" means charges for delivered electric 22 power and energy that vary on an hour-to-hour basis for 23 nonresidential retail customers and that vary on a periodic 24 basis during the day for residential retail customers. 25 "Retail customer" means a single entity using electric 26 power or energy at a single premises and that (A) either (i) 27 is receiving or is eligible to receive tariffed services from 28 an electric utility, or (ii) that is served by a municipal 29 system or electric cooperative within any area in which the 30 municipal system or electric cooperative is or would be 31 entitled to provide service under the law in effect 32 immediately prior to the effective date of this amendatory 33 Act of 1997, or (B) an entity which on the effective date of 34 this Act was receiving electric service from a public utility SB24 Enrolled -5- LRB9100188JSgc 1 and (i) was engaged in the practice of resale and 2 redistribution of such electricity within a building prior to 3 January 2, 1957, or (ii) was providing lighting services to 4 tenants in a multi-occupancy building, but only to the extent 5 such resale, redistribution or lighting service is authorized 6 by the electric utility's tariffs that were on file with the 7 Commission on the effective date of this Act. 8 "Service area" means (i) the geographic area within which 9 an electric utility was lawfully entitled to provide electric 10 power and energy to retail customers as of the effective date 11 of this amendatory Act of 1997, and includes (ii) the 12 location of any retail customer to which the electric utility 13 was lawfully providing electric utility services on such 14 effective date. 15 "Small commercial retail customer" means those 16 nonresidential retail customers of an electric utility 17 consuming 15,000 kilowatt-hours or less of electricity 18 annually in its service area. 19 "Tariffed service" means services provided to retail 20 customers by an electric utility as defined by its rates on 21 file with the Commission pursuant to the provisions of 22 Article IX of this Act, but shall not include competitive 23 services. 24 "Transition charge" means a charge expressed in cents per 25 kilowatt-hour that is calculated for a customer or class of 26 customers as follows for each year in which an electric 27 utility is entitled to recover transition charges as provided 28 in Section 16-108: 29 (1) the amount of revenue that an electric utility 30 would receive from the retail customer or customers if it 31 were serving such customers' electric power and energy 32 requirements as a tariffed service based on (A) all of 33 the customers' actual usage during the 3 years ending 90 34 days prior to the date on which such customers were first SB24 Enrolled -6- LRB9100188JSgc 1 eligible for delivery services pursuant to Section 2 16-104, and (B) on (i) the base rates in effect on 3 October 1, 1996 (adjusted for the reductions required by 4 subsection (b) of Section 16-111, for any reduction 5 resulting from a rate decrease under Section 16-101(b), 6 for any restatement of base rates made in conjunction 7 with an elimination of the fuel adjustment clause 8 pursuant to subsection (b), (d), or (f) of Section 9-220 9 and for any removal of decommissioning costs from base 10 rates pursuant to Section 16-114) and any separate 11 automatic rate adjustment riders (other than a 12 decommissioning rate as defined in Section 16-114) under 13 which the customers were receiving or, had they been 14 customers, would have received electric power and energy 15 from the electric utility during the year immediately 16 preceding the date on which such customers were first 17 eligible for delivery service pursuant to Section 16-104, 18 or (ii) to the extent applicable, any contract rates, 19 including contracts or rates for consolidated or 20 aggregated billing, under which such customers were 21 receiving electric power and energy from the electric 22 utility during such year; 23 (2) less the amount of revenue, other than revenue 24 from transition charges and decommissioning rates, that 25 the electric utility would receive from such retail 26 customers for delivery services provided by the electric 27 utility, assuming such customers were taking delivery 28 services for all of their usage, based on the delivery 29 services tariffs in effect during the year for which the 30 transition charge is being calculated and on the usage 31 identified in paragraph (1); 32 (3) less the market value for the electric power 33 and energy that the electric utility would have used to 34 supply all of such customers' electric power and energy SB24 Enrolled -7- LRB9100188JSgc 1 requirements, as a tariffed service, based on the usage 2 identified in paragraph (1), with such market value 3 determined in accordance with Section 16-112 of this Act; 4 (4) less the following amount which represents the 5 amount to be attributed to new revenue sources and cost 6 reductions by the electric utility through the end of the 7 period for which transition costs are recovered pursuant 8 to Section 16-108, referred to in this Article XVI as a 9 "mitigation factor": 10 (A) for nonresidential retail customers, an 11 amount equal to the greater of (i) 0.5 cents per 12 kilowatt-hour during the period October 1, 1999 13 through December 31, 2004, 0.6 cents per 14 kilowatt-hour in calendar year 2005, and 0.9 cents 15 per kilowatt-hour in calendar year 2006, multiplied 16 in each year by the usage identified in paragraph 17 (1), or (ii) an amount equal to the following 18 percentages of the amount produced by applying the 19 applicable base rates (adjusted as described in 20 subparagraph (1)(B)) or contract rate to the usage 21 identified in paragraph (1): 8% for the period 22 October 1, 1999 through December 31, 2002, 10% in 23 calendar years 2003 and 2004, 11% in calendar year 24 2005 and 12% in calendar year 2006; and 25 (B) for residential retail customers, an 26 amount equal to the following percentages of the 27 amount produced by applying the base rates in effect 28 on October 1, 1996 (adjusted as described in 29 subparagraph (1)(B)) to the usage identified in 30 paragraph (1): (i) 6% from May 1, 2002 through 31 December 31, 2002, (ii) 7% in calendar years 2003 32 and 2004, (iii) 8% in calendar year 2005, and (iv) 33 10% in calendar year 2006; 34 (5) divided by the usage of such customers SB24 Enrolled -8- LRB9100188JSgc 1 identified in paragraph (1), 2 provided that the transition charge shall never be less than 3 zero. 4 "Unbundled service" means a component or constituent part 5 of a tariffed service which the electric utility subsequently 6 offers separately to its customers. 7 (Source: P.A. 90-561, eff. 12-16-97.) 8 (220 ILCS 5/16-104) 9 Sec. 16-104. Delivery services transition plan. An 10 electric utility shall provide delivery services to retail 11 customers in accordance with the provisions of this Section. 12 (a) Each electric utility shall offer delivery services 13 to retail customers located in its service area in accordance 14 with the following provisions: 15 (1) On or before October 1, 1999, the electric 16 utility shall offer delivery services (i) to any 17 non-residential retail customer whose average monthly 18 maximum electrical demand on the electric utility's 19 system during the 6 months with the customer's highest 20 monthly maximum demands in the 12 months ending June 30, 21 1999 equals or exceeds 4 megawatts; (ii) to any 22 non-governmental, non-residential, commercial retail 23 customers under common ownership doing business at 10 or 24 more separate locations within the electric utility's 25 service area, if the aggregate coincident average monthly 26 maximum electrical demand of all such locations during 27 the 6 months with the customer's highest monthly maximum 28 electrical demands during the 12 months ending June 30, 29 1999 equals or exceeds 9.5 megawatts, provided, however, 30 that an electric utility's obligation to offer delivery 31 services under this clause (ii) shall not exceed 3.5% of 32 the maximum electric demand on the electric utility's 33 system in the 12 months ending June 30, 1999; and (iii) SB24 Enrolled -9- LRB9100188JSgc 1 to non-residential retail customers whose annual electric 2 energy use comprises 33% of the kilowatt-hour sales, 3 excluding the kilowatt-hour sales to customers described 4 in clauses (i) and (ii), to each non-residential retail 5 customer class of the electric utility. 6 (2) On or before October 1, 2000, the electric 7 utility shall offer delivery services to the eligible 8 governmental customers described in subsections (a) and 9 (b) of Section 16-125A if the aggregate coincident 10 average monthly maximum electrical demand of such 11 customers during the 6 months with the customers' highest 12 monthly maximum electrical demands during the 12 months 13 ending June 30, 2000 equals or exceeds 9.5 megawatts. 14 (2.5) On or before June 1, 2000, an electric 15 utility serving more than 1,000,000 customers in this 16 State shall offer delivery services to retail customers 17 whose annual electric energy use comprises 33% of the 18 kilowatt hour sales to that group of retail customers 19 that are classified under Division D, Groups 20 through 20 39 of the Standard Industrial Classifications set forth 21 in the Standard Industrial Classification Manual 22 published by the United States Office of Management and 23 Budget, excluding the kilowatt-hour sales to those 24 customers that are eligible for delivery services 25 pursuant to clause (1)(i), and shall offer delivery 26 services to its remaining retail customers classified 27 under Division D, Groups 20 through 39 on or before 28 October 1, 2000. 29 (3) On or before December 31, 2000, the electric 30 utility shall offer delivery services to all remaining 31 nonresidential retail customers in its service area. 32 (4) On or before May 1, 2002, the electric utility 33 shall offer delivery services to all residential retail 34 customers in its service area. SB24 Enrolled -10- LRB9100188JSgc 1 The loads and kilowatt-hour sales used for purposes of 2 this subsection shall be those for the 12 months ending June 3 30, 1999 for nonresidential retail customers. The electric 4 utility shall identify those customers to be offered delivery 5 service pursuant to clause (1)(iii) and paragraph (2.5) of 6 subsection (a) of this Section and Section 16-111(e)(B)(iii) 7 pursuant to a lottery or other random nondiscriminatory 8 selection process set forth in the electric utility's 9 delivery services implementation plan pursuant to Section 10 16-105, which process may include a registration process 11 giving each nonresidential customer the opportunity to 12 register for eligibility for delivery services under this 13 Section, with a lottery of registered customers to be 14 conducted if the annual electric energy use of all registered 15 customers exceeds the limit set forth in clause (1)(iii) or 16 clause (2.5) or Section 16-111(e)(B)(iii), as applicable; 17 provided that the provision of this amendatory Act of 1999 as 18 it relates to the registration and lottery process under 19 clause (1)(iii) is not intended to nor does it make any 20 change in the meaning of this Section, but is intended to 21 remove possible ambiguities, thereby confirming the existing 22 meaning of this Section prior to the effective date of this 23 amendatory Act of 1999. Provided, that non-residential retail 24 customers under common ownership at separate locations within 25 the electric utility's service area may elect, prior to the 26 date the electric utility conducts the lottery or other 27 random selection process for purposes of clause (1)(iii), to 28 designate themselves as a common ownership group, to be 29 excluded from such lottery and to instead participate in a 30 separate lottery for such common ownership group pursuant to 31 which delivery services will be offered to non-residential 32 retail customers comprising 33% of the total kilowatt-hour 33 sales to the common ownership group on or before October 1, 34 1999. For purposes of this subsection (a), an electric SB24 Enrolled -11- LRB9100188JSgc 1 utility may define "common ownership" to exclude sites which 2 are not part of the same business, provided, that auxiliary 3 establishments as defined in the Standard Industrial 4 Classification Manual published by the United States Office 5 of Management and Budget shall not be excluded. 6 (b) The electric utility shall allow the aggregation of 7 loads that are eligible for delivery services so long as such 8 aggregation meets the criteria for delivery of electric power 9 and energy applicable to the electric utility established by 10 the regional reliability council to which the electric 11 utility belongs, by an independent system operating 12 organization to which the electric utility belongs, or by 13 another organization responsible for overseeing the integrity 14 and reliability of the transmission system, as such criteria 15 are in effect from time to time. The Commission may adopt 16 rules and regulations governing the criteria for aggregation 17 of the loads utilizing delivery services, but its failure to 18 do so shall not preclude any eligible customer from electing 19 delivery services. The electric utility shall allow such 20 aggregation for any voluntary grouping of customers, 21 including without limitation those having a common agent with 22 contractual authority to purchase electric power and energy 23 and delivery services on behalf of all customers in the 24 grouping. 25 (c) An electric utility shall allow a retail customer 26 that generates power for its own use to include the 27 electrical demand obtained from the customer's cogeneration 28 or self-generation facilities that is coincident with the 29 retail customer's maximum monthly electrical demand on the 30 electric utility's system in any determination of the 31 customer's maximum monthly electrical demand for purposes of 32 determining when such retail customer shall be offered 33 delivery services pursuant to clause (i) of subparagraph (1) 34 of subsection (a) of this Section. SB24 Enrolled -12- LRB9100188JSgc 1 (d) The Commission shall establish charges, terms and 2 conditions for delivery services in accordance with Section 3 16-108. 4 (e) Subject to the terms and conditions which the 5 electric utility is entitled to impose in accordance with 6 Section 16-108, a retail customer that is eligible to elect 7 delivery services pursuant to subsection (a) may place all or 8 a portion of its electric power and energy requirements on 9 delivery services. 10 (f) An electric utility may require a retail customer 11 who elects to (i) use an alternative retail electric supplier 12 or another electric utility for some but not all of its 13 electric power or energy requirements, and (ii) use the 14 electric utility for any portion of its remaining electric 15 power and energy requirements, to place the portion of the 16 customer's electric power or energy requirement that is to be 17 served by the electric utility on a tariff containing charges 18 that are set to recover the lowest reasonably available cost 19 to the electric utility of acquiring electric power and 20 energy on the wholesale electric market to serve such 21 remaining portion of the customer's electric power and energy 22 requirement, reasonable compensation for arranging for and 23 providing such electric power or energy, and the electric 24 utility's other costs of providing service to such remaining 25 electric power and energy requirement. 26 (Source: P.A. 90-561, eff. 12-16-97.) 27 (220 ILCS 5/16-108) 28 Sec. 16-108. Recovery of costs associated with the 29 provision of delivery services. 30 (a) An electric utility shall file a delivery services 31 tariff with the Commission at least 210 days prior to the 32 date that it is required to begin offering such services 33 pursuant to this Act. An electric utility shall provide the SB24 Enrolled -13- LRB9100188JSgc 1 components of delivery services that are subject to the 2 jurisdiction of the Federal Energy Regulatory Commission at 3 the same prices, terms and conditions set forth in its 4 applicable tariff as approved or allowed into effect by that 5 Commission. The Commission shall otherwise have the authority 6 pursuant to Article IX to review, approve, and modify the 7 prices, terms and conditions of those components of delivery 8 services not subject to the jurisdiction of the Federal 9 Energy Regulatory Commission, including the authority to 10 determine the extent to which such delivery services should 11 be offered on an unbundled basis. In making any such 12 determination the Commission shall consider, at a minimum, 13 the effect of additional unbundling on (i) the objective of 14 just and reasonable rates, (ii) electric utility employees, 15 and (iii) the development of competitive markets for electric 16 energy services in Illinois. 17 (b) The Commission shall enter an order approving, or 18 approving as modified, the delivery services tariff no later 19 than 30 days prior to the date on which the electric utility 20 must commence offering such services. The Commission may 21 subsequently modify such tariff pursuant to this Act. 22 (c) The electric utility's tariffs shall define the 23 classes of its customers for purposes of delivery services 24 charges. Delivery services shall be priced and made 25 available to all retail customers electing delivery services 26 in each such class on a nondiscriminatory basis regardless of 27 whether the retail customer chooses the electric utility, an 28 affiliate of the electric utility, or another entity as its 29 supplier of electric power and energy. Charges for delivery 30 services shall be cost based, and shall allow the electric 31 utility to recover the costs of providing delivery services 32 through its charges to its delivery service customers that 33 use the facilities and services associated with such costs. 34 Such costs shall include the costs of owning, operating and SB24 Enrolled -14- LRB9100188JSgc 1 maintaining transmission and distribution facilities. The 2 Commission shall also be authorized to consider whether, and 3 if so to what extent, the following costs are appropriately 4 included in the electric utility's delivery services rates: 5 (i) the costs of that portion of generation facilities used 6 for the production and absorption of reactive power in order 7 that retail customers located in the electric utility's 8 service area can receive electric power and energy from 9 suppliers other than the electric utility, and (ii) the costs 10 associated with the use and redispatch of generation 11 facilities to mitigate constraints on the transmission or 12 distribution system in order that retail customers located in 13 the electric utility's service area can receive electric 14 power and energy from suppliers other than the electric 15 utility. Nothing in this subsection shall be construed as 16 directing the Commission to allocate any of the costs 17 described in (i) or (ii) that are found to be appropriately 18 included in the electric utility's delivery services rates to 19 any particular customer group or geographic area in setting 20 delivery services rates. 21 (d) The Commission shall establish charges, terms and 22 conditions for delivery services that are just and reasonable 23 and shall take into account customer impacts when 24 establishing such charges. In establishing charges, terms and 25 conditions for delivery services, the Commission shall take 26 into account voltage level differences. A retail customer 27 shall have the option to request to purchase electric service 28 at any delivery service voltage reasonably and technically 29 feasible from the electric facilities serving that customer's 30 premises provided that there are no significant adverse 31 impacts upon system reliability or system efficiency. A 32 retail customer shall also have the option to request to 33 purchase electric service at any point of delivery that is 34 reasonably and technically feasible provided that there are SB24 Enrolled -15- LRB9100188JSgc 1 no significant adverse impacts on system reliability or 2 efficiency. Such requests shall not be unreasonably denied. 3 (e) Electric utilities shall recover the costs of 4 installing, operating or maintaining facilities for the 5 particular benefit of one or more delivery services 6 customers, including without limitation any costs incurred in 7 complying with a customer's request to be served at a 8 different voltage level, directly from the retail customer or 9 customers for whose benefit the costs were incurred, to the 10 extent such costs are not recovered through the charges 11 referred to in subsections (c) and (d) of this Section. 12 (f) An electric utility shall be entitled but not 13 required to implement transition charges in conjunction with 14 the offering of delivery services pursuant to Section 16-104. 15 If an electric utility implements transition charges, it 16 shall implement such charges for all delivery services 17 customers and for all customers described in subsection (h), 18 but shall not implement transition charges for power and 19 energy that a retail customer takes from cogeneration or 20 self-generation facilities located on that retail customer's 21 premises, if such facilities meet the following criteria: 22 (i) the cogeneration or self-generation facilities 23 serve a single retail customer and are located on that 24 retail customer's premises (for purposes of this 25 subparagraph and subparagraph (ii), an industrial or 26 manufacturing retail customer and a third party 27 contractor that is served by such industrial or 28 manufacturing customer through such retail customer's own 29 electrical distribution facilities under the 30 circumstances described in subsection (vi) of the 31 definition of "alternative retail electric supplier" set 32 forth in Section 16-102, shall be considered a single 33 retail customer); 34 (ii) the cogeneration or self-generation facilities SB24 Enrolled -16- LRB9100188JSgc 1 either (A) are sized pursuant to generally accepted 2 engineering standards for the retail customer's 3 electrical load at that premises (taking into account 4 standby or other reliability considerations related to 5 that retail customer's operations at that site) or (B) if 6 the facility is a cogeneration facility located on the 7 retail customer's premises, the retail customer is the 8 thermal host for that facility and the facility has been 9 designed to meet that retail customer's thermal energy 10 requirements resulting in electrical output beyond that 11 retail customer's electrical demand at that premises, 12 comply with the operating and efficiency standards 13 applicable to "qualifying facilities" specified in title 14 18 Code of Federal Regulations Section 292.205 as in 15 effect on the effective date of this amendatory Act of 16 1999; 17 (iii) the retail customer on whose premises the 18 facilities are located either has an exclusive right to 19 receive, and corresponding obligation to pay for, all of 20 the electrical capacity of the facility, or in the case 21 of a cogeneration facility that has been designed to meet 22 the retail customer's thermal energy requirements at that 23 premises, an identified amount of the electrical capacity 24 of the facility, over a minimum 5-year period; and 25 (iv) if the cogeneration facility is sized for the 26 retail customer's thermal load at that premises but 27 exceeds the electrical load, any sales of excess power or 28 energy are made only at wholesale, are subject to the 29 jurisdiction of the Federal Energy Regulatory Commission, 30 and are not for the purpose of circumventing the 31 provisions of this subsection (f). 32 If a generation facility located at a retail customer's 33 premises does not meet the above criteria, an electric 34 utility implementing transition charges shall implement a SB24 Enrolled -17- LRB9100188JSgc 1 transition charge until December 31, 2006 for any power and 2 energy taken by such retail customer from such facility as if 3 such power and energy had been delivered by the electric 4 utility. Provided, however, that an industrial retail 5 customer that is taking power from a generation facility that 6 does not meet the above criteria but that is located on such 7 customer's premises will not be subject to a transition 8 charge for the power and energy taken by such retail customer 9 from such generation facility if the facility does not serve 10 any other retail customer and either was installed on behalf 11 of the customer and for its own use prior to January 1, 1997, 12 or is both predominantly fueled by byproducts of such 13 customer's manufacturing process at such premises and sells 14 or offers an average of 300 megawatts or more of electricity 15 produced from such generation facility into the wholesale 16 market. Such charges shall be calculated as provided in 17 Section 16-102, and shall be collected on each kilowatt-hour 18 delivered under a delivery services tariff to a retail 19 customer from the date the customer first takes delivery 20 services until December 31, 2006 except as provided in 21 subsection (h) of this Section. Provided, however, that an 22 electric utility, other than an electric utility providing 23 service to at least 1,000,000 customers in this State on 24 January 1, 1999, shall be entitled to petition for entry of 25 an order by the Commission authorizing the electric utility 26 to implement transition charges for an additional period 27 ending no later than December 31, 2008. The electric utility 28 shall file its petition with supporting evidence no earlier 29 than 16 months, and no later than 12 months, prior to 30 December 31, 2006. The Commission shall hold a hearing on 31 the electric utility's petition and shall enter its order no 32 later than 8 months after the petition is filed. The 33 Commission shall determine whether and to what extent the 34 electric utility shall be authorized to implement transition SB24 Enrolled -18- LRB9100188JSgc 1 charges for an additional period. The Commission may 2 authorize the electric utility to implement transition 3 charges for some or all of the additional period, and shall 4 determine the mitigation factors to be used in implementing 5 such transition charges; provided, that the Commission shall 6 not authorize mitigation factors less than 110% of those in 7 effect during the 12 months ended December 31, 2006. In 8 making its determination, the Commission shall consider the 9 following factors: the necessity to implement transition 10 charges for an additional period in order to maintain the 11 financial integrity of the electric utility; the prudence of 12 the electric utility's actions in reducing its costs since 13 the effective date of this amendatory Act of 1997; the 14 ability of the electric utility to provide safe, adequate and 15 reliable service to retail customers in its service area; and 16 the impact on competition of allowing the electric utility to 17 implement transition charges for the additional period. 18 (g) The electric utility shall file tariffs that 19 establish the transition charges to be paid by each class of 20 customers to the electric utility in conjunction with the 21 provision of delivery services. The electric utility's 22 tariffs shall define the classes of its customers for 23 purposes of calculating transition charges. The electric 24 utility's tariffs shall provide for the calculation of 25 transition charges on a customer-specific basis for any 26 retail customer whose average monthly maximum electrical 27 demand on the electric utility's system during the 6 months 28 with the customer's highest monthly maximum electrical 29 demands equals or exceeds 3.0 megawatts for electric 30 utilities having more than 1,000,000 customers, and for other 31 electric utilities for any customer that has an average 32 monthly maximum electrical demand on the electric utility's 33 system of one megawatt or more, and (A) for which there 34 exists data on the customer's usage during the 3 years SB24 Enrolled -19- LRB9100188JSgc 1 preceding the date that the customer became eligible to take 2 delivery services, or (B) for which there does not exist data 3 on the customer's usage during the 3 years preceding the date 4 that the customer became eligible to take delivery services, 5 if in the electric utility's reasonable judgment there exists 6 comparable usage information or a sufficient basis to develop 7 such information, and further provided that the electric 8 utility can require customers for which an individual 9 calculation is made to sign contracts that set forth the 10 transition charges to be paid by the customer to the electric 11 utility pursuant to the tariff. 12 (h) An electric utility shall also be entitled to file 13 tariffs that allow it to collect transition charges from 14 retail customers in the electric utility's service area that 15 do not take delivery services but that take electric power or 16 energy from an alternative retail electric supplier or from 17 an electric utility other than the electric utility in whose 18 service area the customer is located. Such charges shall be 19 calculated, in accordance with the definition of transition 20 charges in Section 16-102, for the period of time that the 21 customer would be obligated to pay transition charges if it 22 were taking delivery services, except that no deduction for 23 delivery services revenues shall be made in such calculation, 24 and usage data from the customer's class shall be used where 25 historical usage data is not available for the individual 26 customer. The customer shall be obligated to pay such 27 charges on a lump sum basis on or before the date on which 28 the customer commences to take service from the alternative 29 retail electric supplier or other electric utility, provided, 30 that the electric utility in whose service area the customer 31 is located shall offer the customer the option of signing a 32 contract pursuant to which the customer pays such charges 33 ratably over the period in which the charges would otherwise 34 have applied. SB24 Enrolled -20- LRB9100188JSgc 1 (i) An electric utility shall be entitled to add to the 2 bills of delivery services customers charges pursuant to 3 Sections 9-221, 9-222 (except as provided in Section 4 9-222.1), and Section 16-114 of this Act, Section 5-5 of the 5 Electricity Infrastructure Maintenance Fee Law, Section 6-5 6 of the Renewable Energy, Energy Efficiency, and Coal 7 Resources Development Law of 1997, and Section 13 of the 8 Energy Assistance Act of 1989. 9 (j) If a retail customer that obtains electric power and 10 energy from cogeneration or self-generation facilities 11 installed for its own use on or before January 1, 1997, 12 subsequently takes service from an alternative retail 13 electric supplier or an electric utility other than the 14 electric utility in whose service area the customer is 15 located for any portion of the customer's electric power and 16 energy requirements formerly obtained from those facilities 17 (including that amount purchased from the utility in lieu of 18 such generation and not as standby power purchases, under a 19 cogeneration displacement tariff in effect as of the 20 effective date of this amendatory Act of 1997), the 21 transition charges otherwise applicable pursuant to 22 subsections (f), (g), or (h) of this Section shall not be 23 applicable in any year to that portion of the customer's 24 electric power and energy requirements formerly obtained from 25 those facilities, provided, that for purposes of this 26 subsection (j), such portion shall not exceed the average 27 number of kilowatt-hours per year obtained from the 28 cogeneration or self-generation facilities during the 3 years 29 prior to the date on which the customer became eligible for 30 delivery services, except as provided in subsection (f) of 31 Section 16-110. 32 (Source: P.A. 90-561, eff. 12-16-97.) 33 (220 ILCS 5/16-110) SB24 Enrolled -21- LRB9100188JSgc 1 Sec. 16-110. Delivery services customer power purchase 2 options. 3 (a) Each electric utility shall offer a tariffed service 4 or services in accordance with the terms and conditions set 5 forth in this Section pursuant to which its non-residential 6 delivery services customers may purchase from the electric 7 utility an amount of electric power and energy that is equal 8 to or less than the amounts that are delivered by such 9 electric utility. 10 (b) Except as provided in subsection (o) of Section 11 16-112, a non-residential delivery services customer that is 12 paying transition charges to the electric utility shall be 13 permitted to purchase electric power and energy from the 14 electric utility at a price or prices equal to the sum of (i) 15 the market values that are determined for the electric 16 utility in accordance with Section 16-112 and used by the 17 electric utility to calculate the customer's transition 18 charges and (ii) a fee that compensates the electric utility 19 for any administrative costs it incurs in arranging to supply 20 such electric power and energy. The electric utility may 21 require that the customer purchase such electric power and 22 energy for periods of not less than one year and may also 23 require that the customer give up to 30 days notice for a 24 purchase of one year's duration, and 90 days notice for a 25 purchase of more than one year's duration. A non-residential 26 delivery service customer exercising the option described in 27 this subsection may sell or assign its interests in the 28 electric power or energy that the customer has purchased. In 29 the case of any such assignment or sale by any 30 non-residential delivery service customer to an alternative 31 retail electric supplier that is serving such customer and 32 has been certified pursuant to Section 16-115, an electric 33 utility serving more than 500,000 customers shall provide 34 such power and energy at the same market value as set forth SB24 Enrolled -22- LRB9100188JSgc 1 in clause (i) of this subsection, together with the fee 2 charged under clause (ii) of this subsection, less any costs 3 included in such market value or fee with respect to retail 4 marketing activities, provided, however, that in no event 5 shall an electric utility be required after June 1, 2002 to 6 provide power and energy at this market value plus fee that 7 excludes marketing costs for any such assignment or sale by a 8 non-residential customer to an alternative retail electric 9 supplier. At least twice per year, each electric utility 10 shall notify its small commercial retail customers, through 11 bill inserts and other similar means, of their option to 12 obtain electric power and energy through purchases at market 13 value pursuant to this subsection. 14 (c) After the transition charge period applicable to a 15 non-residential delivery services customer, and until the 16 provision of electric power and energy is declared 17 competitive for the customer group to which the customer 18 belongs, a non-residential delivery services customer that 19 paid any transition charges it was legally obligated to pay 20 to an electric utility shall be permitted to purchase 21 electric power and energy from the electric utility for 22 contract periods of one year at a price or prices equal to 23 the sum of (i) the market value determined for that 24 customer's class pursuant to Section 16-112 and (ii) to the 25 extent it is not included in such market value, a fee to 26 compensate the electric utility for the service of arranging 27 the supply or purchase of such electric power and energy. 28 The electric utility may require that a delivery services 29 customer give the following notice for such a purchase: (i) 30 for a small commercial retail customer, not more than 30 31 days; (ii) for a nonresidential customer which is not a small 32 commercial retail customer but which has maximum electrical 33 demand of less than 500 kilowatts, not more than 6 months; 34 (iii) for a nonresidential customer with maximum electrical SB24 Enrolled -23- LRB9100188JSgc 1 demand of 500 kilowatts or more but less than one megawatt, 2 not more than 9 months; and (iv) for a nonresidential 3 customer with maximum electrical demand of one megawatt or 4 more, not more than one year. At least twice per year, each 5 electric utility shall notify its small commercial retail 6 customers, through bill inserts or other similar means, of 7 their option to obtain electric power and energy through 8 purchases at market value pursuant to this subsection. 9 (d) After the transition charge period applicable to a 10 non-residential delivery services customer, and until the 11 provision of electric power and energy is declared 12 competitive for the customer group to which the customer 13 belongs, a non-residential delivery services customer, other 14 than a small commercial retail customer, that paid any 15 transition charges it was legally obligated to pay to an 16 electric utility shall be permitted to purchase electric 17 power and energy from the electric utility for contract 18 periods of one year at a price or prices equal to (A) the sum 19 of (i) the electric utility's actual cost of procuring such 20 electric power and energy and (ii) a broker's fee to 21 compensate the electric utility for arranging the supply, or, 22 if the utility so elects, (B) the market value of electric 23 power or energy provided by the electric utility determined 24 as set forth in the electric utility's tariff for that 25 customer's class. The electric utility may require that the 26 delivery services customer give up to 30 days notice for such 27 a purchase. 28 (e) Each delivery services customer purchasing electric 29 power and energy from the electric utility pursuant to a 30 tariff filed in accordance with this Section shall also pay 31 all of the applicable charges set forth in the electric 32 utility's delivery services tariffs and any other tariffs 33 applicable to the services provided to that customer by the 34 electric utility. SB24 Enrolled -24- LRB9100188JSgc 1 (f) An electric utility can require a retail customer 2 taking delivery services that formerly generated electric 3 power and energy for its own use and that would not otherwise 4 pay transition charges on a portion of its electric power and 5 energy requirements served on delivery services to pay 6 transition charges on that portion of the customer's electric 7 power and energy requirements as a condition of exercising 8 the delivery services customer power purchase options set 9 forth in this Section. 10 (Source: P.A. 90-561, eff. 12-16-97.) 11 (220 ILCS 5/16-111) 12 Sec. 16-111. Rates and restructuring transactions during 13 mandatory transition period. 14 (a) During the mandatory transition period, 15 notwithstanding any provision of Article IX of this Act, and 16 except as provided in subsections (b), (d), (e), and (f) of 17 this Section, the Commission shall not (i) initiate, 18 authorize or order any change by way of increase (other than 19 in connection with a request for rate increase which was 20 filed after September 1, 1997 but prior to October 15, 1997, 21 by an electric utility serving less than 12,500 customers in 22 this state), (ii) initiate or, unless requested by the 23 electric utility, authorize or order any change by way of 24 decrease, restructuring or unbundling (except as provided in 25 Section 16-109A), in the rates of any electric utility that 26 were in effect on October 1, 1996, or (iii) in any order 27 approving any application for a merger pursuant to Section 28 7-204 that was pending as of May 16, 1997, impose any 29 condition requiring any filing for an increase, decrease, or 30 change in, or other review of, an electric utility's rates or 31 enforce any such condition of any such order; provided, 32 however, that this subsection shall not prohibit the 33 Commission from: SB24 Enrolled -25- LRB9100188JSgc 1 (1) approving the application of an electric 2 utility to implement an alternative to rate of return 3 regulation or a regulatory mechanism that rewards or 4 penalizes the electric utility through adjustment of 5 rates based on utility performance, pursuant to Section 6 9-244; 7 (2) authorizing an electric utility to eliminate 8 its fuel adjustment clause and adjust its base rate 9 tariffs in accordance with subsection (b), (d), or (f) of 10 Section 9-220 of this Act, to fix its fuel adjustment 11 factor in accordance with subsection (c) of Section 9-220 12 of this Act, or to eliminate its fuel adjustment clause 13 in accordance with subsection (e) of Section 9-220 of 14 this Act; 15 (3) ordering into effect tariffs for delivery 16 services and transition charges in accordance with 17 Sections 16-104 and 16-108, for real-time pricing in 18 accordance with Section 16-107, or the options required 19 by Section 16-110 and subsection (n) of 16-112, allowing 20 a billing experiment in accordance with Section 16-106, 21 or modifying delivery services tariffs in accordance with 22 Section 16-109; or 23 (4) ordering or allowing into effect any tariff to 24 recover charges pursuant to Sections 9-201.5, 9-220.1, 25 9-221, 9-222 (except as provided in Section 9-222.1), 26 16-108, and 16-114 of this Act, Section 5-5 of the 27 Electricity Infrastructure Maintenance Fee Law, Section 28 6-5 of the Renewable Energy, Energy Efficiency, and Coal 29 Resources Development Law of 1997, and Section 13 of the 30 Energy Assistance Act of 1989. 31 (b) Notwithstanding the provisions of subsection (a), 32 each Illinois electric utility serving more than 12,500 33 customers in Illinois shall file tariffs (i) reducing, 34 effective August 1, 1998, each component of its base rates to SB24 Enrolled -26- LRB9100188JSgc 1 residential retail customers by 15% from the base rates in 2 effect immediately prior to January 1, 1998 and (ii) if the 3 public utility provides electric service to (A) more than 4 500,000 customers but less than 1,000,000 customers in this 5 State on January 1, 1999the effective date of this6amendatory Act of 1997, reducing, effective May 1, 2002, each 7 component of its base rates to residential retail customers 8 by an additional 5% from the base rates in effect immediately 9 prior to January 1, 1998, or (B) at least 1,000,000 customers 10 in this State on January 1, 1999, reducing, effective October 11 1, 2001, each component of its base rates to residential 12 retail customers by an additional 5% from the base rates in 13 effect immediately prior to January 1, 1998. Provided, 14 however, that (A) if an electric utility's average 15 residential retail rate is less than or equal to the average 16 residential retail rate for a group of Midwest Utilities 17 (consisting of all investor-owned electric utilities with 18 annual system peaks in excess of 1000 megawatts in the States 19 of Illinois, Indiana, Iowa, Kentucky, Michigan, Missouri, 20 Ohio, and Wisconsin), based on data reported on Form 1 to the 21 Federal Energy Regulatory Commission for calendar year 1995, 22 then it shall only be required to file tariffs (i) reducing, 23 effective August 1, 1998, each component of its base rates to 24 residential retail customers by 5% from the base rates in 25 effect immediately prior to January 1, 1998, (ii) reducing, 26 effective October 1, 2000, each component of its base rates 27 to residential retail customers by the lesser of 5% of the 28 base rates in effect immediately prior to January 1, 1998 or 29 the percentage by which the electric utility's average 30 residential retail rate exceeds the average residential 31 retail rate of the Midwest Utilities, based on data reported 32 on Form 1 to the Federal Energy Regulatory Commission for 33 calendar year 1999, and (iii) reducing, effective October 1, 34 2002, each component of its base rates to residential retail SB24 Enrolled -27- LRB9100188JSgc 1 customers by an additional amount equal to the lesser of 5% 2 of the base rates in effect immediately prior to January 1, 3 1998 or the percentage by which the electric utility's 4 average residential retail rate exceeds the average 5 residential retail rate of the Midwest Utilities, based on 6 data reported on Form 1 to the Federal Energy Regulatory 7 Commission for calendar year 2001; and (B) if the average 8 residential retail rate of an electric utility serving 9 between 150,000 and 250,000 retail customers in this State on 10 January 1, 1995 is less than or equal to 90% of the average 11 residential retail rate for the Midwest Utilities, based on 12 data reported on Form 1 to the Federal Energy Regulatory 13 Commission for calendar year 1995, then it shall only be 14 required to file tariffs (i) reducing, effective August 1, 15 1998, each component of its base rates to residential retail 16 customers by 2% from the base rates in effect immediately 17 prior to January 1, 1998; (ii) reducing, effective October 1, 18 2000, each component of its base rates to residential retail 19 customers by 2% from the base rate in effect immediately 20 prior to January 1, 1998; and (iii) reducing, effective 21 October 1, 2002, each component of its base rates to 22 residential retail customers by 1% from the base rates in 23 effect immediately prior to January 1, 1998. Provided, 24 further, that any electric utility for which a decrease in 25 base rates has been or is placed into effect between October 26 1, 1996 and the dates specified in the preceding sentences of 27 this subsection, other than pursuant to the requirements of 28 this subsection, shall be entitled to reduce the amount of 29 any reduction or reductions in its base rates required by 30 this subsection by the amount of such other decrease. The 31 tariffs required under this subsection shall be filed 45 days 32 in advance of the effective date. Notwithstanding anything to 33 the contrary in Section 9-220 of this Act, no restatement of 34 base rates in conjunction with the elimination of a fuel SB24 Enrolled -28- LRB9100188JSgc 1 adjustment clause under that Section shall result in a lesser 2 decrease in base rates than customers would otherwise receive 3 under this subsection had the electric utility's fuel 4 adjustment clause not been eliminated. 5 (c) Any utility reducing its base rates by 15% on August 6 1, 1998 pursuant to subsection (b) shall include the 7 following statement on its bills for residential customers 8 from August 1 through December 31, 1998: "Effective August 1, 9 1998, your rates have been reduced by 15% by the Electric 10 Service Customer Choice and Rate Relief Law of 1997 passed by 11 the Illinois General Assembly.". Any utility reducing its 12 base rates by 5% on August 1, 1998, pursuant to subsection 13 (b) shall include the following statement on its bills for 14 residential customers from August 1 through December 31, 15 1998: "Effective August 1, 1998, your rates have been 16 reduced by 5% by the Electric Service Customer Choice and 17 Rate Relief Law of 1997 passed by the Illinois General 18 Assembly.". 19 Any utility reducing its base rates by 2% on August 1, 20 1998 pursuant to subsection (b) shall include the following 21 statement on its bills for residential customers from August 22 1 through December 31, 1998: "Effective August 1, 1998, your 23 rates have been reduced by 2% by the Electric Service 24 Customer Choice and Rate Relief Law of 1997 passed by the 25 Illinois General Assembly.". 26 (d) During the mandatory transition period, but not 27 before January 1, 2000, and notwithstanding the provisions 28 of subsection (a), an electric utility may request an 29 increase in its base rates if the electric utility 30 demonstrates that the 2-year average of its earned rate of 31 return on common equity, calculated as its net income 32 applicable to common stock divided by the average of its 33 beginning and ending balances of common equity using data 34 reported in the electric utility's Form 1 report to the SB24 Enrolled -29- LRB9100188JSgc 1 Federal Energy Regulatory Commission but adjusted to remove 2 the effects of accelerated depreciation or amortization or 3 other transition or mitigation measures implemented by the 4 electric utility pursuant to subsection (g) of this Section 5 and the effect of any refund paid pursuant to subsection (e) 6 of this Section, is below the 2-year average for the same 2 7 years of the monthly average yields of 30-year U.S. Treasury 8 bonds published by the Board of Governors of the Federal 9 Reserve System in its weekly H.15 Statistical Release or 10 successor publication. The Commission shall review the 11 electric utility's request, and may review the justness and 12 reasonableness of all rates for tariffed services, in 13 accordance with the provisions of Article IX of this Act, 14 provided that the Commission shall consider any special or 15 negotiated adjustments to the revenue requirement agreed to 16 between the electric utility and the other parties to the 17 proceeding. In setting rates under this Section, the 18 Commission shall exclude the costs and revenues that are 19 associated with competitive services and any billing or 20 pricing experiments conducted under Section 16-106. 21 (e) For the purposes of this subsection (e) all 22 calculations and comparisons shall be performed for the 23 Illinois operations of multijurisdictional utilities. During 24 the mandatory transition period, notwithstanding the 25 provisions of subsection (a), if the 2-year average of an 26 electric utility's earned rate of return on common equity, 27 calculated as its net income applicable to common stock 28 divided by the average of its beginning and ending balances 29 of common equity using data reported in the electric 30 utility's Form 1 report to the Federal Energy Regulatory 31 Commission but adjusted to remove the effect of any refund 32 paid under this subsection (e), and further adjusted to 33 include the annual amortization of any difference between the 34 consideration received by an affiliated interest of the SB24 Enrolled -30- LRB9100188JSgc 1 electric utility in the sale of an asset which had been sold 2 or transferred by the electric utility to the affiliated 3 interest subsequent to the effective date of this amendatory 4 Act of 1997 and the consideration for which such asset had 5 been sold or transferred to the affiliated interest, with 6 such difference to be amortized ratably from the date of the 7 sale by the affiliated interest to December 31, 2006, exceeds 8 the 2-year average of the Index for the same 2 years by 1.5 9 or more percentage points, the electric utility shall make 10 refunds to customers beginning the first billing day of April 11 in the following year in the manner described in paragraph 12 (3) of this subsection. For purposes of this subsection (e), 13 the "Index" shall be the sum of (A) the average for the 12 14 months ended September 30 of the monthly average yields of 15 30-year U.S. Treasury bonds published by the Board of 16 Governors of the Federal Reserve System in its weekly H.15 17 Statistical Release or successor publication for each year 18 1998 through 2004, and (B) (i) 4.00 percentage points for 19 each of the 12-month periods ending September 30, 1998 20 through September 30, 1999 or 8.00 percentage points if the 21 electric utility's average residential retail rate is less 22 than or equal to 90% of the average residential retail rate 23 for the "Midwest Utilities", as that term is defined in 24 subsection (b) of this Section, based on data reported on 25 Form 1 to the Federal Energy Regulatory Commission for 26 calendar year 1995, and the electric utility served between 27 150,000 and 250,000 retail customers on January 1, 1995,or28 (ii) 7.005.00percentage points for each of the 12-month 29 periods ending September 30, 2000 through September 30, 2004 30 if the electric utility was providing service to at least 31 1,000,000 customers in this State on January 1, 1999, or 9.00 32 percentage points if the electric utility's average 33 residential retail rate is less than or equal to 90% of the 34 average residential retail rate for the "Midwest Utilities", SB24 Enrolled -31- LRB9100188JSgc 1 as that term is defined in subsection (b) of this Section, 2 based on data reported on Form 1 to the Federal Energy 3 Regulatory Commission for calendar year 1995 and the electric 4 utility served between 150,000 and 250,000 retail customers 5 in this State on January 1, 1995, (iii) 11.00 percentage 6 points for each of the 12-month periods ending September 30, 7 2000 through September 30, 2004, but only if the electric 8 utility's average residential retail rate is less than or 9 equal to 90% of the average residential retail rate for the 10 "Midwest Utilities", as that term is defined in subsection 11 (b) of this Section, based on data reported on Form 1 to the 12 Federal Energy Regulatory Commission for calendar year 1995, 13 the electric utility served between 150,000 and 250,000 14 retail customers in this State on January 1, 1995, and the 15 electric utility offers delivery services on or before June 16 1, 2000 to retail customers whose annual electric energy use 17 comprises 33% of the kilowatt hour sales to that group of 18 retail customers that are classified under Division D, Groups 19 20 through 39 of the Standard Industrial Classifications set 20 forth in the Standard Industrial Classification Manual 21 published by the United States Office of Management and 22 Budget, excluding the kilowatt hour sales to those customers 23 that are eligible for delivery services pursuant to Section 24 16-104(a)(1)(i), and offers delivery services to its 25 remaining retail customers classified under Division D, 26 Groups 20 through 39 on or before October 1, 2000, and, 27 provided further, that the electric utility commits not to 28 petition pursuant to Section 16-108(f) for entry of an order 29 by the Commission authorizing the electric utility to 30 implement transition charges for an additional period after 31 December 31, 2006, or (iv) 5.00 percentage points for each of 32 the 12-month periods ending September 30, 2000 through 33 September 30, 2004 for all other electric utilities or 7.00 34 percentage points for such utilities for each of the 12-month SB24 Enrolled -32- LRB9100188JSgc 1 periods ending September 30, 2000 through September 30, 2004 2 for any such utility that commits not to petition pursuant to 3 Section 16-108(f) for entry of an order by the Commission 4 authorizing the electric utility to implement transition 5 charges for an additional period after December 31, 2006. 6 (1) For purposes of this subsection (e), "excess 7 earnings" means the difference between (A) the 2-year 8 average of the electric utility's earned rate of return 9 on common equity, less (B) the 2-year average of the sum 10 of (i) the Index applicable to each of the 2 years and 11 (ii) 1.5 percentage points; provided, that "excess 12 earnings" shall never be less than zero. 13 (2) On or before March 31 of each year 2000 through 14 2005 each electric utility shall file a report with the 15 Commission showing its earned rate of return on common 16 equity, calculated in accordance with this subsection, 17 for the preceding calendar year and the average for the 18 preceding 2 calendar years. 19 (3) If an electric utility has excess earnings, 20 determined in accordance with paragraphs (1) and (2) of 21 this subsection, the refunds which the electric utility 22 shall pay to its customers beginning the first billing 23 day of April in the following year shall be calculated 24 and applied as follows: 25 (i) The electric utility's excess earnings 26 shall be multiplied by the average of the beginning 27 and ending balances of the electric utility's common 28 equity for the 2-year period in which excess 29 earnings occurred. 30 (ii) The result of the calculation in (i) 31 shall be multiplied by 0.50 and then divided by a 32 number equal to 1 minus the electric utility's 33 composite federal and State income tax rate. 34 (iii) The result of the calculation in (ii) SB24 Enrolled -33- LRB9100188JSgc 1 shall be divided by the sum of the electric 2 utility's projected total kilowatt-hour sales to 3 retail customers plus projected kilowatt-hours to be 4 delivered to delivery services customers over a one 5 year period beginning with the first billing date in 6 April in the succeeding year to determine a cents 7 per kilowatt-hour refund factor. 8 (iv) The cents per kilowatt-hour refund factor 9 calculated in (iii) shall be credited to the 10 electric utility's customers by applying the factor 11 on the customer's monthly bills to each 12 kilowatt-hour sold or delivered until the total 13 amount calculated in (ii) has been paid to 14 customers. 15 (f) During the mandatory transition period, an electric 16 utility may file revised tariffs reducing the price of any 17 tariffed service offered by the electric utility for all 18 customers taking that tariffed service, which shall be 19 effective 7 days after filing. 20 (g) During the mandatory transition period, an electric 21 utility may, without obtaining any approval of the Commission 22 other than that provided for in this subsection and 23 notwithstanding any other provision of this Act or any rule 24 or regulation of the Commission that would require such 25 approval: 26 (1) implement a reorganization, other than a merger 27 of 2 or more public utilities as defined in Section 3-105 28 or their holding companies; 29 (2) retire generating plants from service; 30 (3) sell, assign, lease or otherwise transfer 31 assets to an affiliated or unaffiliated entity and as 32 part of such transaction enter into service agreements, 33 power purchase agreements, or other agreements with the 34 transferee; provided, however, that the prices, terms and SB24 Enrolled -34- LRB9100188JSgc 1 conditions of any power purchase agreement must be 2 approved or allowed into effect by the Federal Energy 3 Regulatory Commission; or 4 (4) use any accelerated cost recovery method 5 including accelerated depreciation, accelerated 6 amortization or other capital recovery methods, or record 7 reductions to the original cost of its assets. 8 In order to implement a reorganization, retire generating 9 plants from service, or sell, assign, lease or otherwise 10 transfer assets pursuant to this Section, the electric 11 utility shall comply with subsections (c) and (d) of Section 12 16-128, if applicable, and subsection (k) of this Section, if 13 applicable, and provide the Commission with at least 30 days 14 notice of the proposed reorganization or transaction, which 15 notice shall include the following information: 16 (i) a complete statement of the entries that 17 the electric utility will make on its books and 18 records of account to implement the proposed 19 reorganization or transaction together with a 20 certification from an independent certified public 21 accountant that such entries are in accord with 22 generally accepted accounting principles and, if the 23 Commission has previously approved guidelines for 24 cost allocations between the utility and its 25 affiliates, a certification from the chief 26 accounting officer of the utility that such entries 27 are in accord with those cost allocation guidelines; 28 (ii) a description of how the electric utility 29 will use proceeds of any sale, assignment, lease or 30 transfer to retire debt or otherwise reduce or 31 recover the costs of services provided by such 32 electric utility; 33 (iii) a list of all federal approvals or 34 approvals required from departments and agencies of SB24 Enrolled -35- LRB9100188JSgc 1 this State, other than the Commission, that the 2 electric utility has or will obtain before 3 implementing the reorganization or transaction; 4 (iv) an irrevocable commitment by the electric 5 utility that it will not, as a result of the 6 transaction, impose any stranded cost charges that 7 it might otherwise be allowed to charge retail 8 customers under federal law or increase the 9 transition charges that it is otherwise entitled to 10 collect under this Article XVI; and 11 (v) if the electric utility proposes to sell, 12 assign, lease or otherwise transfer a generating 13 plant that brings the amount of net dependable 14 generating capacity transferred pursuant to this 15 subsection to an amount equal to or greater than 15% 16 of the electric utility's net dependable capacity as 17 of the effective date of this amendatory Act of 18 1997, and enters into a power purchase agreement 19 with the entity to which such generating plant is 20 sold, assigned, leased, or otherwise transferred, 21 the electric utility also agrees, if its fuel 22 adjustment clause has not already been eliminated, 23 to eliminate its fuel adjustment clause in 24 accordance with subsection (b) of Section 9-220 for 25 a period of time equal to the length of any such 26 power purchase agreement or successor agreement, or 27 until January 1, 2005, whichever is longer; if the 28 capacity of the generating plant so transferred and 29 related power purchase agreement does not result in 30 the elimination of the fuel adjustment clause under 31 this subsection, and the fuel adjustment clause has 32 not already been eliminated, the electric utility 33 shall agree that the costs associated with the 34 transferred plant that are included in the SB24 Enrolled -36- LRB9100188JSgc 1 calculation of the rate per kilowatt-hour to be 2 applied pursuant to the electric utility's fuel 3 adjustment clause during such period shall not 4 exceed the per kilowatt-hour cost associated with 5 such generating plant included in the electric 6 utility's fuel adjustment clause during the full 7 calendar year preceding the transfer, with such 8 limit to be adjusted each year thereafter by the 9 Gross Domestic Product Implicit Price Deflator. 10 (vi) In addition, if the electric utility 11 proposes to sell, assign, or lease, (A) either (1) 12 an amount of generating plant that brings the amount 13 of net dependable generating capacity transferred 14 pursuant to this subsection to an amount equal to or 15 greater than 15% of its net dependable capacity on 16 the effective date of this amendatory Act of 1997, 17 or (2) one or more generating plants with a total 18 net dependable capacity of 1100 megawatts, or (B) 19 transmission and distribution facilities that either 20 (1) bring the amount of transmission and 21 distribution facilities transferred pursuant to this 22 subsection to an amount equal to or greater than 15% 23 of the electric utility's total depreciated original 24 cost investment in such facilities, or (2) represent 25 an investment of $25,000,000 in terms of total 26 depreciated original cost, the electric utility 27 shall provide, in addition to the information listed 28 in subparagraphs (i) through (v), the following 29 information: (A) a description of how the electric 30 utility will meet its service obligations under this 31 Act in a safe and reliable manner and (B) the 32 electric utility's projected earned rate of return 33 on common equity, calculated in accordance with 34 subsection (d) of this Section, for each year from SB24 Enrolled -37- LRB9100188JSgc 1 the date of the notice through December 31, 2004 2 both with and without the proposed transaction. If 3 the Commission has not issued an order initiating a 4 hearing on the proposed transaction within 30 days 5 after the date the electric utility's notice is 6 filed, the transaction shall be deemed approved. 7 The Commission may, after notice and hearing, 8 prohibit the proposed transaction if it makes either 9 or both of the following findings: (1) that the 10 proposed transaction will render the electric 11 utility unable to provide its tariffed services in a 12 safe and reliable manner, or (2) that there is a 13 strong likelihood that consummation of the proposed 14 transaction will result in the electric utility 15 being entitled to request an increase in its base 16 rates during the mandatory transition period 17 pursuant to subsection (d) of this Section. Any 18 hearing initiated by the Commission into the 19 proposed transaction shall be completed, and the 20 Commission's final order approving or prohibiting 21 the proposed transaction shall be entered, within 90 22 days after the date the electric utility's notice 23 was filed. Provided, however, that a sale, 24 assignment, or lease of transmission facilities to 25 an independent system operator that meets the 26 requirements of Section 16-126 shall not be subject 27 to Commission approval under this Section. 28 In any proceeding conducted by the Commission 29 pursuant to this subparagraph (vi), intervention 30 shall be limited to parties with a direct interest 31 in the transaction which is the subject of the 32 hearing and any statutory consumer protection agency 33 as defined in subsection (d) of Section 9-102.1. 34 Notwithstanding the provisions of Section 10-113 of SB24 Enrolled -38- LRB9100188JSgc 1 this Act, any application seeking rehearing of an 2 order issued under this subparagraph (vi), whether 3 filed by the electric utility or by an intervening 4 party, shall be filed within 10 days after service 5 of the order. 6 The Commission shall not in any subsequent proceeding or 7 otherwise, review such a reorganization or other transaction 8 authorized by this Section, but shall retain the authority to 9 allocate costs as stated in Section 16-111(i). An entity to 10 which an electric utility sells, assigns, leases or transfers 11 assets pursuant to this subsection (g) shall not, as a result 12 of the transactions specified in this subsection (g), be 13 deemed a public utility as defined in Section 3-105. Nothing 14 in this subsection (g) shall change any requirement under the 15 jurisdiction of the Illinois Department of Nuclear Safety 16 including, but not limited to, the payment of fees. Nothing 17 in this subsection (g) shall exempt a utility from obtaining 18 a certificate pursuant to Section 8-406 of this Act for the 19 construction of a new electric generating facility. Nothing 20 in this subsection (g) is intended to exempt the transactions 21 hereunder from the operation of the federal or State 22 antitrust laws. Nothing in this subsection (g) shall require 23 an electric utility to use the procedures specified in this 24 subsection for any of the transactions specified herein. Any 25 other procedure available under this Act may, at the electric 26 utility's election, be used for any such transaction. 27 (h) During the mandatory transition period, the 28 Commission shall not establish or use any rates of 29 depreciation, which for purposes of this subsection shall 30 include amortization, for any electric utility other than 31 those established pursuant to subsection (c) of Section 5-104 32 of this Act or utilized pursuant to subsection (g) of this 33 Section. Provided, however, that in any proceeding to review 34 an electric utility's rates for tariffed services pursuant to SB24 Enrolled -39- LRB9100188JSgc 1 Section 9-201, 9-202, 9-250 or 16-111(d) of this Act, the 2 Commission may establish new rates of depreciation for the 3 electric utility in the same manner provided in subsection 4 (d) of Section 5-104 of this Act. An electric utility 5 implementing an accelerated cost recovery method including 6 accelerated depreciation, accelerated amortization or other 7 capital recovery methods, or recording reductions to the 8 original cost of its assets, pursuant to subsection (g) of 9 this Section, shall file a statement with the Commission 10 describing the accelerated cost recovery method to be 11 implemented or the reduction in the original cost of its 12 assets to be recorded. Upon the filing of such statement, 13 the accelerated cost recovery method or the reduction in the 14 original cost of assets shall be deemed to be approved by the 15 Commission as though an order had been entered by the 16 Commission. 17 (i) Subsequent to the mandatory transition period, the 18 Commission, in any proceeding to establish rates and charges 19 for tariffed services offered by an electric utility, shall 20 consider only (1) the then current or projected revenues, 21 costs, investments and cost of capital directly or indirectly 22 associated with the provision of such tariffed services; (2) 23 collection of transition charges in accordance with Sections 24 16-102 and 16-108 of this Act; (3) recovery of any employee 25 transition costs as described in Section 16-128 which the 26 electric utility is continuing to incur, including recovery 27 of any unamortized portion of such costs previously incurred 28 or committed, with such costs to be equitably allocated among 29 bundled services, delivery services, and contracts with 30 alternative retail electric suppliers; and (4) recovery of 31 the costs associated with the electric utility's compliance 32 with decommissioning funding requirements; and shall not 33 consider any other revenues, costs, investments or cost of 34 capital of either the electric utility or of any affiliate of SB24 Enrolled -40- LRB9100188JSgc 1 the electric utility that are not associated with the 2 provision of tariffed services. In setting rates for 3 tariffed services, the Commission shall equitably allocate 4 joint and common costs and investments between the electric 5 utility's competitive and tariffed services. In determining 6 the justness and reasonableness of the electric power and 7 energy component of an electric utility's rates for tariffed 8 services subsequent to the mandatory transition period and 9 prior to the time that the provision of such electric power 10 and energy is declared competitive, the Commission shall 11 consider the extent to which the electric utility's tariffed 12 rates for such component for each customer class exceed the 13 market value determined pursuant to Section 16-112, and, if 14 the electric power and energy component of such tariffed rate 15 exceeds the market value by more than 10% for any customer 16 class, may establish such electric power and energy component 17 at a rate equal to the market value plus 10%. In any such 18 case, the Commission may also elect to extend the provisions 19 of Section 16-111(e) for any period in which the electric 20 utility is collecting transition charges, using information 21 applicable to such period. 22 (j) During the mandatory transition period, an electric 23 utility may elect to transfer to a non-operating income 24 account under the Commission's Uniform System of Accounts 25 either or both of (i) an amount of unamortized investment tax 26 credit that is in addition to the ratable amount which is 27 credited to the electric utility's operating income account 28 for the year in accordance with Section 46(f)(2) of the 29 federal Internal Revenue Code of 1986, as in effect prior to 30 P.L. 101-508, or (ii) "excess tax reserves", as that term is 31 defined in Section 203(e)(2)(A) of the federal Tax Reform Act 32 of 1986, provided that (A) the amount transferred may not 33 exceed the amount of the electric utility's assets that were 34 created pursuant to Statement of Financial Accounting SB24 Enrolled -41- LRB9100188JSgc 1 Standards No. 71 which the electric utility has written off 2 during the mandatory transition period, and (B) the transfer 3 shall not be effective until approved by the Internal Revenue 4 Service. An electric utility electing to make such a 5 transfer shall file a statement with the Commission stating 6 the amount and timing of the transfer for which it intends to 7 request approval of the Internal Revenue Service, along with 8 a copy of its proposed request to the Internal Revenue 9 Service for a ruling. The Commission shall issue an order 10 within 14 days after the electric utility's filing approving, 11 subject to receipt of approval from the Internal Revenue 12 Service, the proposed transfer. 13 (k) If an electric utility is selling or transferring to 14 a single buyer 5 or more generating plants located in this 15 State with a total net dependable capacity of 5000 megawatts 16 or more pursuant to subsection (g) of this Section and has 17 obtained a sale price or consideration that exceeds 200% of 18 the book value of such plants, the electric utility must 19 provide to the Governor, the President of the Illinois 20 Senate, the Minority Leader of the Illinois Senate, the 21 Speaker of the Illinois House of Representatives, and the 22 Minority Leader of the Illinois House of Representatives no 23 later than 15 days after filing its notice under subsection 24 (g) of this Section or 5 days after the date on which this 25 subsection (k) becomes law, whichever is later, a written 26 commitment in which such electric utility agrees to expend $2 27 billion outside the corporate limits of any municipality with 28 1,000,000 or more inhabitants within such electric utility's 29 service area, over a 6-year period beginning with the 30 calendar year in which the notice is filed, on projects, 31 programs, and improvements within its service area relating 32 to transmission and distribution including, without 33 limitation, infrastructure expansion, repair and replacement, 34 capital investments, operations and maintenance, and SB24 Enrolled -42- LRB9100188JSgc 1 vegetation management. 2 (Source: P.A. 90-561, eff. 12-16-97; 90-563, eff. 12-16-97.) 3 (220 ILCS 5/16-111.1 new) 4 Sec. 16-111.1. Illinois Clean Energy Community Trust. 5 (a) An electric utility which has sold or transferred 6 generating facilities in a transaction to which subsection 7 (k) of Section 16-111 applies is authorized to establish an 8 Illinois clean energy community trust or foundation for the 9 purposes of providing financial support and assistance to 10 entities, public or private, within the State of Illinois 11 including, but not limited to, units of State and local 12 government, educational institutions, corporations, and 13 charitable, educational, environmental and community 14 organizations, for programs and projects that benefit the 15 public by improving energy efficiency, developing renewable 16 energy resources, supporting other energy related projects 17 that improve the State's environmental quality, and 18 supporting projects and programs intended to preserve or 19 enhance the natural habitats and wildlife areas of the State. 20 Provided, however, that the trust or foundation funds shall 21 not be used for the remediation of environmentally impaired 22 property. The trust or foundation may also assist in 23 identifying other energy and environmental grant 24 opportunities. 25 (b) Such trust or foundation shall be governed by a 26 declaration of trust or articles of incorporation and bylaws 27 which shall, at a minimum, provide that: 28 (1) There shall be 6 voting trustees of the trust 29 or foundation, one of whom shall be appointed by the 30 Governor, one of whom shall be appointed by the President 31 of the Illinois Senate, one of whom shall be appointed by 32 the Minority Leader of the Illinois Senate, one of whom 33 shall be appointed by the Speaker of the Illinois House SB24 Enrolled -43- LRB9100188JSgc 1 of Representatives, one of whom shall be appointed by the 2 Minority Leader of the Illinois House of Representatives, 3 and one of whom shall be appointed by the electric 4 utility establishing the trust or foundation, provided 5 that the voting trustee appointed by the utility shall be 6 a representative of a recognized environmental action 7 group selected by the utility. The Governor shall select 8 one of the 6 voting trustees, once appointed, to be the 9 first chairman of the trust or foundation pending the 10 first election of officers. In addition, there shall be 4 11 non-voting trustees, one of whom shall be appointed by 12 the Director of the Department of Commerce and Community 13 Affairs, one of whom shall be appointed by the Director 14 of the Illinois Environmental Protection Agency, one of 15 whom shall be appointed by the Director of the Department 16 of Natural Resources, and one of whom shall be appointed 17 by the electric utility establishing the trust or 18 foundation, provided that the non-voting trustee 19 appointed by the utility shall bring financial expertise 20 to the trust or foundation and shall have appropriate 21 credentials therefor. 22 (2) All voting trustees and the non-voting trustee 23 with financial expertise shall be entitled to 24 compensation for their services as trustees, provided, 25 however, that no member of the General Assembly and no 26 employee of the electric utility establishing the trust 27 or foundation serving as a voting trustee shall receive 28 any compensation for his or her services as a trustee, 29 and provided further that the compensation to the 30 chairman of the trust shall not exceed $25,000 annually 31 and the compensation to any other trustee shall not 32 exceed $20,000 annually. All trustees shall be entitled 33 to reimbursement for reasonable expenses incurred on 34 behalf of the trust in the performance of their duties as SB24 Enrolled -44- LRB9100188JSgc 1 trustees. All such compensation and reimbursements shall 2 be paid out of the trust. 3 (3) Trustees shall be appointed within 30 days 4 after the creation of the trust or foundation and shall 5 serve for a term of 5 years commencing upon the date of 6 their respective appointments, until their respective 7 successors are appointed and qualified. 8 (4) A vacancy in the office of trustee shall be 9 filled by the person holding the office responsible for 10 appointing the trustee whose death or resignation creates 11 the vacancy, and a trustee appointed to fill a vacancy 12 shall serve the remainder of the term of the trustee 13 whose resignation or death created the vacancy. 14 (5) The trust or foundation shall have an 15 indefinite term, and shall terminate at such time as no 16 trust assets remain. 17 (6) The trust or foundation shall be funded in the 18 minimum amount of $250,000,000, with the allocation and 19 disbursement of funds for the various purposes for which 20 the trust or foundation is established to be determined 21 by the trustees in accordance with the declaration of 22 trust or the articles of incorporation and bylaws; 23 provided, however, that this amount may be reduced by up 24 to $25,000,000 if, at the time the trust or foundation is 25 funded, a corresponding amount is contributed by the 26 electric utility establishing the trust or foundation to 27 the Board of Trustees of Southern Illinois University for 28 the purpose of funding programs or projects related to 29 clean coal and provided further that $25,000,000 of the 30 amount contributed to the trust or foundation shall be 31 available to fund programs or projects related to clean 32 coal. 33 (7) The trust or foundation shall be authorized to 34 employ an executive director and other employees, to SB24 Enrolled -45- LRB9100188JSgc 1 enter into leases, contracts and other obligations on 2 behalf of the trust or foundation, and to incur expenses 3 that the trustees deem necessary or appropriate for the 4 fulfillment of the purposes for which the trust or 5 foundation is established, provided, however, that 6 salaries and administrative expenses incurred on behalf 7 of the trust or foundation shall not exceed $500,000 in 8 the first fiscal year after the trust or foundation is 9 established and shall not exceed $1,000,000 in each 10 subsequent fiscal year. 11 (8) The trustees may create and appoint advisory 12 boards or committees to assist them with the 13 administration of the trust or foundation, and to advise 14 and make recommendations to them regarding the 15 contribution and disbursement of the trust or foundation 16 funds. 17 (c)(1) In addition to the allocation and disbursement of 18 funds for the purposes set forth in subsection (a) of 19 this Section, the trustees of the trust or foundation 20 shall annually contribute funds in amounts set forth in 21 subparagraph (2) of this subsection to the Citizens 22 Utility Board created by the Citizens Utility Board Act; 23 provided, however, that any such funds shall be used 24 solely for the representation of the interests of utility 25 consumers before the Illinois Commerce Commission, the 26 Federal Energy Regulatory Commission, and the Federal 27 Communications Commission and for the provision of 28 consumer education on utility service and prices and on 29 benefits and methods of energy conservation. Provided, 30 however, that no part of such funds shall be used to 31 support (i) any lobbying activity, (ii) activities 32 related to fundraising, (iii) advertising or other 33 marketing efforts regarding a particular utility, or (iv) 34 solicitation of support for, or advocacy of, a particular SB24 Enrolled -46- LRB9100188JSgc 1 position regarding any specific utility or a utility's 2 docketed proceeding. 3 (2) In the calendar year in which the trust or 4 foundation is first funded, the trustees shall contribute 5 $1,000,000 to the Citizens Utility Board within 60 days 6 after such trust or foundation is established; provided, 7 however, that such contribution shall be made after 8 December 31, 1999. In each of the 6 calendar years 9 subsequent to the first contribution, if the trust or 10 foundation is in existence, the trustees shall contribute 11 to the Citizens Utility Board an amount equal to the 12 total expenditures by such organization in the prior 13 calendar year, as set forth in the report filed by the 14 Citizens Utility Board with the chairman of such trust or 15 foundation as required by subparagraph (3) of this 16 subsection. Such subsequent contributions shall be made 17 within 30 days of submission by the Citizens Utility 18 Board of such report to the Chairman of the trust or 19 foundation, but in no event shall any annual contribution 20 by the trustees to the Citizens Utility Board exceed 21 $1,000,000. Following such 7-year period, an Illinois 22 statutory consumer protection agency may petition the 23 trust or foundation for contributions to fund 24 expenditures of the type identified in paragraph (1), but 25 in no event shall annual contributions by the trust or 26 foundation for such expenditures exceed $1,000,000. 27 (3) The Citizens Utility Board shall file a report 28 with the chairman of such trust or foundation for each 29 year in which it expends any funds received from the 30 trust or foundation setting forth the amount of any 31 expenditures (regardless of the source of funds for such 32 expenditures) for: (i) the representation of the 33 interests of utility consumers before the Illinois 34 Commerce Commission, the Federal Energy Regulatory SB24 Enrolled -47- LRB9100188JSgc 1 Commission, and the Federal Communications Commission, 2 and (ii) the provision of consumer education on utility 3 service and prices and on benefits and methods of energy 4 conservation. Such report shall separately state the 5 total amount of expenditures for the purposes or 6 activities identified by items (i) and (ii) of this 7 paragraph, the name and address of the external recipient 8 of any such expenditure, if applicable, and the specific 9 purposes or activities (including internal purposes or 10 activities) for which each expenditure was made. Any 11 report required by this subsection shall be filed with 12 the chairman of such trust or foundation no later than 13 March 31 of the year immediately following the year for 14 which the report is required. 15 (220 ILCS 5/16-111.2 new) 16 Sec. 16-111.2. Provisions related to proposed utility 17 transactions. 18 (a) The General Assembly finds: 19 (1) A transaction as described in paragraph (3) of 20 this subsection (a) will contribute to improved 21 reliability of the electric supply system in Illinois 22 which is one of the key purposes of the Illinois Electric 23 Service Customer Choice and Rate Relief Law of 1997. 24 (2) A transaction as described in paragraph (3) of 25 this subsection (a) is likely to promote additional 26 investment in the existing generating assets and in the 27 development of additional generation capacity in 28 Illinois, and such change in ownership is in the public 29 interest, consistent with the intent of the Illinois 30 Electric Service Customer Choice and Rate Relief Law of 31 1997 and beneficial for the citizens of this State. 32 (3) As of the date on which this amendatory Act of 33 1999 becomes law, an electric utility providing service SB24 Enrolled -48- LRB9100188JSgc 1 to more than 1,000,000 customers in this State has 2 proposed to sell or transfer to a single buyer 5 or more 3 generating plants with a total net dependable capacity of 4 5000 megawatts or more pursuant to subsection (g) of 5 Section 16-111. 6 (4) Such electric utility anticipates receiving a 7 sale price or consideration as a result of such 8 transaction exceeding 200% of the book value of these 9 plants. 10 (5) Such electric utility has presented to the 11 Governor and the leaders of the General Assembly a 12 written commitment in which such electric utility agrees 13 to expend $2,000,000,000 outside the corporate limits of 14 any municipality with 1,000,000 or more inhabitants 15 within such electric utility's service area, over a 16 6-year period beginning with this calendar year on 17 projects, programs and improvements within its service 18 area relating to transmission and distribution including, 19 without limitation, infrastructure expansion, repair and 20 replacement, capital investments, operations and 21 maintenance, and vegetation management. 22 (6) Such electric utility has committed that, if 23 the sale or transfer contemplated by paragraph (3) of 24 this subsection is consummated on or before December 31, 25 1999, the electric utility shall make contributions 26 totaling $250,000,000 to entities within this State for, 27 among other purposes, environmental and clean coal 28 initiatives pursuant to Section 16-111.1, which 29 commitment includes a contribution of $25,000,000 to the 30 Board of Trustees of Southern Illinois University for the 31 purpose of funding programs or projects related to clean 32 coal. 33 (b) That, in light of the findings in paragraphs (1) and 34 (2) of subsection (a) and, in this instance, the SB24 Enrolled -49- LRB9100188JSgc 1 circumstances described in paragraphs (3) through (6) of 2 subsection (a) and otherwise, the General Assembly hereby 3 finds that allowing the generating facilities being acquired 4 to be eligible facilities under the provisions of the 5 National Energy Policy Act of 1992 that apply to exempt 6 wholesale generators (A) will benefit consumers; (B) is in 7 the public interest; and (C) does not violate the law of this 8 State. 9 (c) Nothing in this Section shall have any effect on the 10 authority of the Commission under subsection (g) of Section 11 16-111 of this Act. 12 (220 ILCS 5/16-114.1 new) 13 Sec. 16-114.1. Recovery of decommissioning costs in 14 connection with nuclear power plant sale agreement. 15 (a) An electric utility owning a single-unit nuclear 16 power plant located in this State which enters into an 17 agreement to sell the nuclear power plant and as part of such 18 agreement agrees: (i) to make contributions to a 19 tax-qualified decommissioning trust or non-tax qualified 20 decommissioning trust, or both, as defined in Section 8-508.1 21 for the nuclear power plant, in specified amounts or for a 22 specified period of time, after the sale is consummated, or 23 (ii) to purchase an insurance instrument which provides for 24 the payment of all or a specified amount of the 25 decommissioning costs of the nuclear power plant, shall be 26 entitled, in the case of item (i), to maintain such 27 decommissioning trusts for the purpose of receiving such 28 contributions after the consummation of the sale, to 29 implement revisions to its decommissioning rate in accordance 30 with subsection (b) of this Section, and to transfer such 31 decommissioning trusts, or the balance in the trusts, to the 32 buyer of the nuclear power plant in accordance with the 33 agreement of sale, and in the case of item (ii), to implement SB24 Enrolled -50- LRB9100188JSgc 1 revisions to its decommissioning rate in accordance with 2 subsection (c) of this Section. 3 (b) An electric utility entering into an agreement of 4 sale described in subsection (a)(i) of this Section shall be 5 entitled to file a petition with the Commission for entry of 6 an order authorizing the electric utility (i) to amortize its 7 liability for decommissioning costs pursuant to the agreement 8 of sale over the period of time in which the electric utility 9 is required by such agreement to make additional 10 contributions to the tax-qualified decommissioning trust, the 11 non-tax qualified decommissioning trust, or both, and (ii) to 12 revise its decommissioning rate to a level that will recover, 13 over the time period specified in the agreement of sale, an 14 annual amount equal to the electric utility's annual 15 contributions to the decommissioning trusts which are 16 required by the agreement of sale multiplied by the 17 percentage of the output of the nuclear power plant which the 18 agreement of sale obligates the electric utility to purchase 19 in each such year. 20 (c) An electric utility entering into an agreement of 21 sale described in subsection (a)(ii) shall be entitled to 22 file a petition with the Commission for entry of an order 23 authorizing the electric utility to revise its 24 decommissioning rate to a level that will recover, over 5 25 years, the electric utility's cost of purchasing the 26 insurance instrument multiplied by the percentage of the 27 output of the nuclear power plant which the agreement of sale 28 obligates the electric utility to purchase in each such year. 29 (d) An electric utility's petition pursuant to 30 subsection (b) or subsection (c) shall state the percentage 31 of the output of the nuclear power plant which the agreement 32 of sale obligates the electric utility to purchase from the 33 new owner of the nuclear power plant in each of the years for 34 which the electric utility is seeking to implement a revised SB24 Enrolled -51- LRB9100188JSgc 1 decommissioning rate. The electric utility's petition shall 2 also state that the electric utility agrees, as conditions of 3 the Commission's order and the implementation of the revised 4 decommissioning rate, (i) to file revisions, pursuant to 5 Section 16-111(f), to its base rate tariffs applicable to 6 retail customers subject to the electric utility's 7 decommissioning rate reducing such tariffs, and (ii) to file 8 revisions to its transition charge tariffs applicable to 9 retail customers subject to the electric utility's 10 decommissioning rate incorporating a credit into the 11 calculation of the electric utility's transition charges in 12 accordance with this subsection. The reduction and the 13 credit shall be in an amount per kilowatt-hour of electricity 14 sold or delivered to retail customers equal to (i) the 15 electric utility's decommissioning rate authorized by the 16 Commission's order in accordance with subsection (b)(ii) or 17 (c), as applicable, less (ii) the product of the electric 18 utility's decommissioning rate in effect immediately prior to 19 the agreement of sale multiplied by the percentage of the 20 output of the nuclear power plant which the agreement of sale 21 obligates the electric utility to purchase from the new owner 22 of the nuclear power plant. The Commission shall issue an 23 order granting the petition within 30 days after the petition 24 is filed. The Commission's order shall state the aggregate 25 total amount which the order is authorizing the electric 26 utility to collect through its decommissioning rate. The 27 Commission's order shall state that the effectiveness of the 28 revisions to the electric utility's decommissioning rate 29 shall be conditioned on the filing by the electric utility of 30 the revisions reducing its base rate tariffs and providing 31 for credits to its transition charge tariffs as specified in 32 this subsection. Upon completion of the collection of the 33 total amount which the Commission's order authorizes the 34 electric utility to collect through its decommissioning rate, SB24 Enrolled -52- LRB9100188JSgc 1 the electric utility shall not be entitled to collect any 2 further amounts of decommissioning costs for its nuclear 3 power plant through a decommissioning rate. Nothing in this 4 Section shall be construed to permit an increase in the 5 overall tariffed rates and charges paid by the electric 6 utility's customers. 7 (e) In addition to the uses of the proceeds of the sale 8 and issuance of transitional funding instruments authorized 9 by Section 18-103(d)(1), an electric utility which has 10 entered into an agreement to sell a nuclear power plant may 11 use the proceeds from the sale and issuance of transitional 12 funding instruments to make contributions, or to reimburse 13 itself for contributions which the electric utility has made, 14 to decommissioning trusts in accordance with the agreement of 15 sale, in an amount not to exceed 20% of the aggregate 16 principal amount of transitional funding instruments which 17 the electric utility was authorized to cause to have issued 18 pursuant to Section 18-103(d)(6), including for purposes of 19 this calculation the amount of any transitional funding 20 instruments which the electric utility caused to be issued 21 prior to the date of this amendatory Act of 1999. The use of 22 proceeds authorized by this subsection shall not be subject 23 to Section 18-103(d)(1)(B) and shall not be considered in 24 determining if the percentage limitations on the use of 25 proceeds set forth in the proviso following Section 26 18-103(d)(1)(E) have been complied with. 27 (f) None of the authorizations permitted by this Section 28 may be exercised if the sale of the nuclear power plant is 29 disapproved by the Commission. 30 (220 ILCS 5/16-115) 31 Sec. 16-115. Certification of alternative retail electric 32 suppliers. 33 (a) Any alternative retail electric supplier must obtain SB24 Enrolled -53- LRB9100188JSgc 1 a certificate of service authority from the Commission in 2 accordance with this Section before serving any retail 3 customer or other user located in this State. An alternative 4 retail electric supplier may request, and the Commission may 5 grant, a certificate of service authority for the entire 6 State or for a specified geographic area of the State. 7 (b) An alternative retail electric supplier seeking a 8 certificate of service authority shall file with the 9 Commission a verified application containing information 10 showing that the applicant meets the requirements of this 11 Section. The alternative retail electric supplier shall 12 publish notice of its application in the official State 13 newspaper within 10 days following the date of its filing. 14 No later than 45 days after the application is properly filed 15 with the Commission, and such notice is published, the 16 Commission shall issue its order granting or denying the 17 application. 18 (c) An application for a certificate of service 19 authority shall identify the area or areas in which the 20 applicant intends to offer service and the types of services 21 it intends to offer. Applicants that seek to serve 22 residential or small commercial retail customers within a 23 geographic area that is smaller than an electric utility's 24 service area shall submit evidence demonstrating that the 25 designation of this smaller area does not violate Section 26 16-115A. An applicant that seeks to serve residential or 27 small commercial retail customers may state in its 28 application for certification any limitations that will be 29 imposed on the number of customers or maximum load to be 30 served. 31 (d) The Commission shall grant the application for a 32 certificate of service authority if it makes the findings set 33 forth in this subsection based on the verified application 34 and such other information as the applicant may submit: SB24 Enrolled -54- LRB9100188JSgc 1 (1) That the applicant possesses sufficient 2 technical, financial and managerial resources and 3 abilities to provide the service for which it seeks a 4 certificate of service authority. In determining the 5 level of technical, financial and managerial resources 6 and abilities which the applicant must demonstrate, the 7 Commission shall consider (i) the characteristics, 8 including the size and financial sophistication, of the 9 customers that the applicant seeks to serve, and (ii) 10 whether the applicant seeks to provide electric power and 11 energy using property, plant and equipment which it owns, 12 controls or operates; 13 (2) That the applicant will comply with all 14 applicable federal, State, regional and industry rules, 15 policies, practices and procedures for the use, 16 operation, and maintenance of the safety, integrity and 17 reliability, of the interconnected electric transmission 18 system; 19 (3) That the applicant will only provide service to 20 retail customers in an electric utility's service area 21 that are eligible to take delivery services under this 22 Act; 23 (4) That the applicant will comply with such 24 informational or reporting requirements as the Commission 25 may by rule establish and provide the information 26 required by Section 16-112. Any data related to 27 contracts for the purchase and sale of electric power and 28 energy shall be made available for review by the Staff of 29 the Commission on a confidential and proprietary basis 30 and only to the extent and for the purposes which the 31 Commission determines are reasonably necessary in order 32 to carry out the purposes of this Act; 33 (5) That if the applicant, its corporate affiliates 34 or the applicant's principal source of electricity (to SB24 Enrolled -55- LRB9100188JSgc 1 the extent such source is known at the time of the 2 application) owns or controls facilities, for public use, 3 for the transmission or distribution of electricity to 4 end-users within a defined geographic area to which 5 electric power and energy can be physically and 6 economically delivered by the electric utility or 7 utilities in whose service area or areas the proposed 8 service will be offered, the applicant, its corporate 9 affiliates or principal source of electricity, as the 10 case may be, provides delivery services to the electric 11 utility or utilities in whose service area or areas the 12 proposed service will be offered that are reasonably 13 comparable to those offered by the electric utility, and 14 provided further, that the applicant agrees to certify 15 annually to the Commission that it is continuing to 16 provide such delivery services and that it has not 17 knowingly assisted any person or entity to avoid the 18 requirements of this Section. For purposes of this 19 subparagraph, "principal source of electricity" shall 20 mean a single source that supplies at least 65% of the 21 applicant's electric power and energy, and the purchase 22 of transmission and distribution services pursuant to a 23 filed tariff under the jurisdiction of the Federal Energy 24 Regulatory Commission or a state public utility 25 commission shall not constitute control of access to the 26 provider's transmission and distribution facilities; 27 (6) With respect to an applicant that seeks to 28 serve residential or small commercial retail customers, 29 that the area to be served by the applicant and any 30 limitations it proposes on the number of customers or 31 maximum amount of load to be served meet the provisions 32 of Section 16-115A, provided, that the Commission can 33 extend the time for considering such a certificate 34 request by up to 90 days, and can schedule hearings on SB24 Enrolled -56- LRB9100188JSgc 1 such a request; 2 (7) That the applicant meets the requirements of 3 subsection (a) of Section 16-128; and 4 (8) That the applicant will comply with all other 5 applicable laws and regulations. 6 (e) A retail customer that owns a cogeneration or 7 self-generation facility and that seeks certification only to 8 provide electric power and energy from such facility to 9 retail customers at separate locations which customers are 10 both (i) owned by, or a subsidiary or other corporate 11 affiliate of, such applicant and (ii) eligible for delivery 12 services, shall be granted a certificate of service authority 13 upon filing an application and notifying the Commission that 14 it has entered into an agreement with the relevant electric 15 utilities pursuant to Section 16-118. Provided, however, that 16 if the retail customer owning such cogeneration or 17 self-generation facility would not be charged a transition 18 charge due to the exemption provided under subsection (f) of 19 Section 16-108 prior to the certification, and the retail 20 customers at separate locations are taking delivery services 21 in conjunction with purchasing power and energy from the 22 facility, the retail customer on whose premises the facility 23 is located shall not thereafter be required to pay transition 24 charges on the power and energy that such retail customer 25 takes from the facility. 26 (f) The Commission shall have the authority to 27 promulgate rules and regulations to carry out the provisions 28 of this Section. On or before May 1, 1999, the Commission 29 shall adopt a rule or rules applicable to the certification 30 of those alternative retail electric suppliers that seek to 31 serve only nonresidential retail customers with maximum 32 electrical demands of one megawatt or more which shall 33 provide for (i) expedited and streamlined procedures for 34 certification of such alternative retail electric suppliers SB24 Enrolled -57- LRB9100188JSgc 1 and (ii) specific criteria which, if met by any such 2 alternative retail electric supplier, shall constitute the 3 demonstration of technical, financial and managerial 4 resources and abilities to provide service required by 5 subsection (d) (1) of this Section, such as a requirement to 6 post a bond or letter of credit, from a responsible surety or 7 financial institution, of sufficient size for the nature and 8 scope of the services to be provided; demonstration of 9 adequate insurance for the scope and nature of the services 10 to be provided; and experience in providing similar services 11 in other jurisdictions. 12 (Source: P.A. 90-561, eff. 12-16-97.) 13 (220 ILCS 5/16-130) 14 Sec. 16-130. Annual Reports. The General Assembly finds 15 that it is necessary to have reliable and accurate 16 information regarding the transition to a competitive 17 electric industry. In addition to the annual report 18 requirements pursuant to Section 5-109 of this Act, each 19 electric utility shall file with the Commission a report on 20 the following topics in accordance with the schedule set 21 forth in subsection (b) of this Section: 22 (1) Data on each customer class of the electric 23 utility in which delivery services have been elected 24 including: 25 (A) number of retail customers in each class 26 that have elected delivery service; 27 (B) kilowatt hours consumed by the customers 28 described in subparagraph (A); 29 (C) revenue loss experienced by the utility as 30 a result of customers electing delivery services or 31 market-based prices as compared to continued service 32 under otherwise applicable tariffed rates; 33 (D) total amount of funds collected from each SB24 Enrolled -58- LRB9100188JSgc 1 customer class pursuant to the transition charges 2 authorized in Section 16-108; 3 (E) Such other information as the Commission 4 may by rule require. 5 (2) A description of any steps taken by the 6 electric utility to mitigate and reduce its costs, 7 including both a detailed description of steps taken 8 during the preceding calendar year and a summary of steps 9 taken since the effective date of this amendatory Act of 10 1997, and including, to the extent practicable, 11 quantification of the costs mitigated or reduced by 12 specific actions taken by the electric utility. 13 (3) A description of actions taken under Sections 14 5-104, 7-204, 9-220, and 16-111 of this Act. This 15 information shall include but not be limited to: 16 (A) a description of the actions taken; 17 (B) the effective date of the action; 18 (C) the annual savings or additional charges 19 realized by customers from actions taken, by 20 customer class and total for each year; 21 (D) the accumulated impact on customers by 22 customer class and total; and 23 (E) a summary of the method used to quantify 24 the impact on customers. 25 (4) A summary of the electric utility's use of 26 transitional funding instruments, including a description 27 of the electric utility's use of the proceeds of any 28 transitional funding instruments it has issued in 29 accordance with Article XVIII of this Act. 30 (5) Kilowatt-hours consumed in the twelve months 31 ending December 31, 1996 (which kilowatt-hours are hereby 32 referred to as "base year sales") by customer class 33 multiplied by the revenue per kilowatt hour, adjusted to 34 remove charges added to customers' bills pursuant to SB24 Enrolled -59- LRB9100188JSgc 1 Sections 9-221 and 9-222 of this Act, during the twelve 2 months ending December 31, 1996, adjusted for the 3 reductions required by subsection (b) of Section 16-111 4 and the mitigation factors contained in Section 16-102. 5 This amount shall be stated for: (i) each calendar year 6 preceding the year in which a report is required to be 7 submitted pursuant to subsection (b); and (ii) as a 8 cumulative total of all calendar years beginning with 9 1998 and ending with the calendar year preceding the year 10 in which a report is required to be submitted pursuant to 11 subsection (b). 12 (6) Calculations identical to those required by 13 subparagraph (5) except that base year sales shall be 14 adjusted for growth in the electric utility's service 15 territory, in addition to the other adjustments specified 16 by the first sentence of subparagraph (5). 17 (7) The electric utility's total revenue and net 18 income for each calendar year beginning with 1997 through 19 the calendar year preceding the year in which a report is 20 required to be submitted pursuant to subsection (b) as 21 reported in the electric utility's Form 1 report to the 22 Federal Energy Regulatory Commission. 23 (8) Any consideration in excess of the net book 24 cost as of the effective date of this amendatory Act of 25 1997 received by the electric utility during the year 26 from a sale made subsequent to the effective date of this 27 amendatory Act of 1997 to a non-affiliated third party of 28 any generating plant that was owned by the electric 29 utility on the effective date of this amendatory Act of 30 1997. 31 (9) Any consideration received by the electric 32 utility from sales or transfers during the year to an 33 affiliated interest of generating plant, or other plant 34 that represents an investment of $25,000,000 or more in SB24 Enrolled -60- LRB9100188JSgc 1 terms of total depreciated original cost, which 2 generating or other plant were owned by the electric 3 utility prior to the effective date of this amendatory 4 Act of 1997. 5 (10) Any consideration received by an affiliated 6 interest of an electric utility from sales or transfers 7 during the year to a non-affiliated third party of 8 generating plant, but only if: (i) the electric utility 9 had previously sold or transferred such plant to the 10 affiliated interest subsequent to the effective date of 11 this amendatory Act of 1997; (ii) the affiliated interest 12 sells or transfers such plant to a non-affiliated third 13 party prior to December 31, 2006; and (iii) the 14 affiliated interest receives consideration for the sale 15 or transfer of such plant to the non-affiliated third 16 party in an amount greater than the cost or price at 17 which such plant was sold or transferred to the 18 affiliated interest by the electric utility. 19 (11) A summary account of those expenditures made 20 for projects, programs, and improvements relating to 21 transmission and distribution including, without 22 limitation, infrastructure expansion, repair and 23 replacement, capital investments, operations and 24 maintenance, and vegetation management, pursuant to a 25 written commitment made under subsection (k) of Section 26 16-111. 27 (b) The information required by subsection (a) shall be 28 filed by each electric utility on or before March 1 of each 29 year 1999 through 2007 or through such additional years as 30 the electric utility is collecting transition charges 31 pursuant to subsection (f) of Section 16-108, for the 32 previous calendar year. The information required by 33 subparagraph (6) of subsection (a) for calendar year 1997 34 shall be submitted by the electric utility on or before March SB24 Enrolled -61- LRB9100188JSgc 1 1, 1999. 2 (c) On or before May 15 of each year 1999 through 2006 3 or through such additional years as the electric utility is 4 collecting transition charges pursuant to subsection (f) of 5 Section 16-108, the Commission shall submit a report to the 6 General Assembly which summarizes the information provided by 7 each electric utility under this Section; provided, however, 8 that proprietary or confidential information shall not be 9 publicly disclosed. 10 (Source: P.A. 90-561, eff. 12-16-97.) 11 Section 10. The Citizens Utility Board Act is amended by 12 changing Section 5 and adding Section 5.1 as follows: 13 (220 ILCS 10/5) (from Ch. 111 2/3, par. 905) 14 Sec. 5. Powers and duties. (1) The corporation shall: 15 (a) Represent and protect the interests of the 16 residential utility consumers of this State. All actions by 17 the corporation under this Act shall be directed toward such 18 duty; provided that the corporation may also give due 19 consideration to the interests of business in the State. 20 (b) Inform, in so far as possible, all utility consumers 21 about the corporation, including the procedure for obtaining 22 membership in the corporation. 23 (2) The corporation shall have all the powers necessary 24 or convenient for the effective representation and protection 25 of the interest of utility consumers and to implement this 26 Act, including the following powers in addition to all other 27 powers granted by this Act. 28 (a) To make, amend and repeal bylaws and rules for the 29 regulation of its affairs and the conduct of its business; to 30 adopt an official seal and alter it at pleasure; to maintain 31 an office; to sue and be sued in its own name, plead and be 32 impleaded; and to make and execute contracts and other SB24 Enrolled -62- LRB9100188JSgc 1 instruments necessary or convenient to the exercise of the 2 powers of the corporation. 3 (b) To employ such agents, employees and special 4 advisors as it finds necessary and to fix their compensation. 5 (c) To solicit and accept gifts, loans, including loans 6 made by the Illinois Commerce Commission from funds 7 appropriated for that purpose by law, or other aid in order 8 to support activities concerning the interests of utility 9 consumers.,Except as provided in Section 5.1,thatthe 10 corporation may not accept gifts, loans or other aid from any 11 public utility or from any director, employee or agent or 12 member of the immediate family of a director, employee or 13 agent of any public utility and,except thatafter the first 14 election the corporation, may not accept from any individual, 15 private corporation, association or partnership in any single 16 year a total of more than $1,000 in gifts. Under this 17 paragraph, "aid" does not mean payment of membership dues. 18 (d) To intervene as a party or otherwise participate on 19 behalf of utility consumers in any proceeding which affects 20 the interest of utility consumers. 21 (e) To represent the interests of utility consumers 22 before the Illinois Commerce Commission, the Federal Energy 23 Regulatory Commission, the Federal Communications Commission, 24 the courts, and other public bodies, except that no director, 25 employee or agent of the corporation may engage in lobbying 26 without first complying with any applicable statute, 27 administrative rule or other regulation relating to lobbying. 28 (f) To establish annual dues which shall be set at a 29 level that provides sufficient funding for the corporation to 30 effectively perform its powers and duties, and is affordable 31 for as many utility consumers as is possible. 32 (g) To implement solicitation for corporation funding 33 and membership. 34 (h) To seek tax exempt status under State and federal SB24 Enrolled -63- LRB9100188JSgc 1 law, including 501(c)(3) status under the United States 2 Internal Revenue Code. 3 (i) To provide information and advice to utility 4 consumers on any matter with respect to utility service, 5 including but not limited to information and advice on 6 benefits and methods of energy conservation. 7 (3) The powers, duties, rights and privileges conferred 8 or imposed upon the corporation by this Act may not be 9 transferred. 10 (4) The corporation shall refrain from interfering with 11 collective bargaining rights of any employees of a public 12 utility. 13 (Source: P.A. 83-945.) 14 (220 ILCS 10/5.1 new) 15 Sec. 5.1. Contributions. Notwithstanding anything to 16 the contrary in Section 5 of this Act, the corporation shall 17 have the authority to solicit and accept contributions made 18 pursuant to Section 16-111.1 of the Public Utilities Act. 19 Section 99. Effective date. This Act takes effect upon 20 becoming law.