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91_SB1891
LRB9113210JSpc
1 AN ACT to amend the Public Utilities Act by changing
2 Section 16-115.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Public Utilities Act is amended by
6 changing Section 16-115 as follows:
7 (220 ILCS 5/16-115)
8 Sec. 16-115. Certification of alternative retail electric
9 suppliers.
10 (a) An Any alternative retail electric supplier must
11 obtain a certificate of service authority from the Commission
12 in accordance with this Section before serving any retail
13 customer or other user located in this State. An alternative
14 retail electric supplier may request, and the Commission may
15 grant, a certificate of service authority for the entire
16 State or for a specified geographic area of the State.
17 (b) An alternative retail electric supplier seeking a
18 certificate of service authority shall file with the
19 Commission a verified application containing information
20 showing that the applicant meets the requirements of this
21 Section. The alternative retail electric supplier shall
22 publish notice of its application in the official State
23 newspaper within 10 days following the date of its filing.
24 No later than 45 days after the application is properly filed
25 with the Commission, and such notice is published, the
26 Commission shall issue its order granting or denying the
27 application.
28 (c) An application for a certificate of service
29 authority shall identify the area or areas in which the
30 applicant intends to offer service and the types of services
31 it intends to offer. Applicants that seek to serve
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1 residential or small commercial retail customers within a
2 geographic area that is smaller than an electric utility's
3 service area shall submit evidence demonstrating that the
4 designation of this smaller area does not violate Section
5 16-115A. An applicant that seeks to serve residential or
6 small commercial retail customers may state in its
7 application for certification any limitations that will be
8 imposed on the number of customers or maximum load to be
9 served.
10 (d) The Commission shall grant the application for a
11 certificate of service authority if it makes the findings set
12 forth in this subsection based on the verified application
13 and such other information as the applicant may submit:
14 (1) That the applicant possesses sufficient
15 technical, financial and managerial resources and
16 abilities to provide the service for which it seeks a
17 certificate of service authority. In determining the
18 level of technical, financial and managerial resources
19 and abilities which the applicant must demonstrate, the
20 Commission shall consider (i) the characteristics,
21 including the size and financial sophistication, of the
22 customers that the applicant seeks to serve, and (ii)
23 whether the applicant seeks to provide electric power and
24 energy using property, plant and equipment which it owns,
25 controls or operates;
26 (2) That the applicant will comply with all
27 applicable federal, State, regional and industry rules,
28 policies, practices and procedures for the use,
29 operation, and maintenance of the safety, integrity and
30 reliability, of the interconnected electric transmission
31 system;
32 (3) That the applicant will only provide service to
33 retail customers in an electric utility's service area
34 that are eligible to take delivery services under this
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1 Act;
2 (4) That the applicant will comply with such
3 informational or reporting requirements as the Commission
4 may by rule establish and provide the information
5 required by Section 16-112. Any data related to
6 contracts for the purchase and sale of electric power and
7 energy shall be made available for review by the Staff of
8 the Commission on a confidential and proprietary basis
9 and only to the extent and for the purposes which the
10 Commission determines are reasonably necessary in order
11 to carry out the purposes of this Act;
12 (5) That if the applicant, its corporate affiliates
13 or the applicant's principal source of electricity (to
14 the extent such source is known at the time of the
15 application) owns or controls facilities, for public use,
16 for the transmission or distribution of electricity to
17 end-users within a defined geographic area to which
18 electric power and energy can be physically and
19 economically delivered by the electric utility or
20 utilities in whose service area or areas the proposed
21 service will be offered, the applicant, its corporate
22 affiliates or principal source of electricity, as the
23 case may be, provides delivery services to the electric
24 utility or utilities in whose service area or areas the
25 proposed service will be offered that are reasonably
26 comparable to those offered by the electric utility, and
27 provided further, that the applicant agrees to certify
28 annually to the Commission that it is continuing to
29 provide such delivery services and that it has not
30 knowingly assisted any person or entity to avoid the
31 requirements of this Section. For purposes of this
32 subparagraph, "principal source of electricity" shall
33 mean a single source that supplies at least 65% of the
34 applicant's electric power and energy, and the purchase
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1 of transmission and distribution services pursuant to a
2 filed tariff under the jurisdiction of the Federal Energy
3 Regulatory Commission or a state public utility
4 commission shall not constitute control of access to the
5 provider's transmission and distribution facilities;
6 (6) With respect to an applicant that seeks to
7 serve residential or small commercial retail customers,
8 that the area to be served by the applicant and any
9 limitations it proposes on the number of customers or
10 maximum amount of load to be served meet the provisions
11 of Section 16-115A, provided, that the Commission can
12 extend the time for considering such a certificate
13 request by up to 90 days, and can schedule hearings on
14 such a request;
15 (7) That the applicant meets the requirements of
16 subsection (a) of Section 16-128; and
17 (8) That the applicant will comply with all other
18 applicable laws and regulations.
19 (e) A retail customer that owns a cogeneration or
20 self-generation facility and that seeks certification only to
21 provide electric power and energy from such facility to
22 retail customers at separate locations which customers are
23 both (i) owned by, or a subsidiary or other corporate
24 affiliate of, such applicant and (ii) eligible for delivery
25 services, shall be granted a certificate of service authority
26 upon filing an application and notifying the Commission that
27 it has entered into an agreement with the relevant electric
28 utilities pursuant to Section 16-118. Provided, however, that
29 if the retail customer owning such cogeneration or
30 self-generation facility would not be charged a transition
31 charge due to the exemption provided under subsection (f) of
32 Section 16-108 prior to the certification, and the retail
33 customers at separate locations are taking delivery services
34 in conjunction with purchasing power and energy from the
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1 facility, the retail customer on whose premises the facility
2 is located shall not thereafter be required to pay transition
3 charges on the power and energy that such retail customer
4 takes from the facility.
5 (f) The Commission shall have the authority to
6 promulgate rules and regulations to carry out the provisions
7 of this Section. On or before May 1, 1999, the Commission
8 shall adopt a rule or rules applicable to the certification
9 of those alternative retail electric suppliers that seek to
10 serve only nonresidential retail customers with maximum
11 electrical demands of one megawatt or more which shall
12 provide for (i) expedited and streamlined procedures for
13 certification of such alternative retail electric suppliers
14 and (ii) specific criteria which, if met by any such
15 alternative retail electric supplier, shall constitute the
16 demonstration of technical, financial and managerial
17 resources and abilities to provide service required by
18 subsection (d) (1) of this Section, such as a requirement to
19 post a bond or letter of credit, from a responsible surety or
20 financial institution, of sufficient size for the nature and
21 scope of the services to be provided; demonstration of
22 adequate insurance for the scope and nature of the services
23 to be provided; and experience in providing similar services
24 in other jurisdictions.
25 (Source: P.A. 90-561, eff. 12-16-97; 91-50, eff. 6-30-99.)