State of Illinois
92nd General Assembly
Legislation

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92_HB0952

 
                                               LRB9207144JSpc

 1        AN ACT concerning public utilities.

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

 4        Section  5.  The  Public  Utilities  Act  is  amended  by
 5    changing  Sections  16-102,  16-116,  16-124,  and 16-128 and
 6    adding Sections 16-115C, 16-115D, and 16-115E as follows:

 7        (220 ILCS 5/16-102)
 8        Sec. 16-102.  Definitions.   For  the  purposes  of  this
 9    Article  the following terms shall be defined as set forth in
10    this Section.
11        "Alternative  retail  electric  supplier"   means   every
12    person,   cooperative,  corporation,  municipal  corporation,
13    company, association, joint  stock  company  or  association,
14    firm,   partnership,   individual,  or  other  entity,  their
15    lessees,  trustees,  or  receivers  appointed  by  any  court
16    whatsoever, that offers electric power or  energy  for  sale,
17    lease  or in exchange for other value received to one or more
18    retail  customers,  or  that  engages  in  the  delivery   or
19    furnishing  of  electric  power  or  energy  to  such  retail
20    customers,  and shall include, without limitation, resellers,
21    aggregators and power marketers, but shall  not  include  (i)
22    electric  utilities  (or any agent of the electric utility to
23    the extent the electric utility provides tariffed services to
24    retail customers  through  that  agent),  (ii)  any  electric
25    cooperative  or municipal system as defined in Section 17-100
26    to the extent that  the  electric  cooperative  or  municipal
27    system  is  serving retail customers within any area in which
28    it is or would be entitled to provide service under  the  law
29    in  effect  immediately  prior  to the effective date of this
30    amendatory Act of 1997, (iii) a public utility that is  owned
31    and operated by any public institution of higher education of
 
                            -2-                LRB9207144JSpc
 1    this  State, or a public utility that is owned by such public
 2    institution of higher education and operated by  any  of  its
 3    lessees  or  operating agents, within any area in which it is
 4    or would be entitled to provide  service  under  the  law  in
 5    effect  immediately  prior  to  the  effective  date  of this
 6    amendatory Act of 1997, (iv) a retail customer to the  extent
 7    that customer obtains its electric power and energy from that
 8    customer's  own  cogeneration  or self-generation facilities,
 9    (v) an entity that owns, operates, sells, or arranges for the
10    installation   of   a   customer's   own   cogeneration    or
11    self-generation facilities, but only to the extent the entity
12    is   engaged   in   owning,  selling  or  arranging  for  the
13    installation of such facility,  or operating the facility  on
14    behalf of such customer, provided however that any such third
15    party  owner or operator of a facility built after January 1,
16    1999, complies with the labor provisions of Section 16-128(a)
17    as  though  such  third  party  were  an  alternative  retail
18    electric supplier, or (vi)  an  industrial  or  manufacturing
19    customer  that  owns  its own distribution facilities, to the
20    extent  that  the  customer  provides   service   from   that
21    distribution  system  to  a third-party contractor located on
22    the customer's premises that is integrally and  predominantly
23    engaged   in   the  customer's  industrial  or  manufacturing
24    process; provided, that if the  industrial  or  manufacturing
25    customer  has  elected  delivery services, the customer shall
26    pay transition charges applicable to the electric  power  and
27    energy  consumed  by  the  third-party contractor unless such
28    charges are otherwise paid by  the  third  party  contractor,
29    which shall be calculated based on the usage of, and the base
30    rates  or  the  contract rates applicable to, the third-party
31    contractor in accordance with Section 16-102.
32        "Base rates" means the rates for those tariffed  services
33    that  the  electric  utility is required to offer pursuant to
34    subsection (a) of Section 16-103 and that were identified  in
 
                            -3-                LRB9207144JSpc
 1    a  rate  order  for collection of the electric utility's base
 2    rate revenue requirement, excluding  (i)  separate  automatic
 3    rate  adjustment  riders  then  in  effect,  (ii)  special or
 4    negotiated contract rates, (iii)  delivery  services  tariffs
 5    filed  pursuant to Section 16-108, (iv) real-time pricing, or
 6    (v) tariffs that were in effect prior to October 1, 1996  and
 7    that  based  charges  for  services on an index or average of
 8    other utilities' charges, but including (vi)  any  subsequent
 9    redesign   of  such  rates  for  tariffed  services  that  is
10    authorized by the Commission after notice and hearing.
11        "Competitive service" includes (i) any service  that  has
12    been declared to be competitive pursuant to Section 16-113 of
13    this  Act,  (ii)  contract service, and (iii) services, other
14    than  tariffed  services,  that  are  related  to,  but   not
15    necessary  for, the provision of electric power and energy or
16    delivery services.
17        "Contract service"  means  (1)  services,  including  the
18    provision  of  electric  power  and energy or other services,
19    that are provided by mutual  agreement  between  an  electric
20    utility and a retail customer that is located in the electric
21    utility's  service  area,  provided  that,  delivery services
22    shall not be a  contract  service  until  such  services  are
23    declared  competitive  pursuant  to  Section 16-113; and also
24    means (2) the provision of electric power and energy and  the
25    provision  of  the  services  set  forth in the definition of
26    "provider of unbundled delivery services" in this Section  by
27    an  electric utility to retail customers outside the electric
28    utility's service area pursuant to Section 16-116.  Provided,
29    however, contract service does not include  electric  utility
30    services  provided  pursuant  to  (i)  contracts  that retail
31    customers are required to execute as a condition of receiving
32    tariffed  services,  or  (ii)  special  or  negotiated   rate
33    contracts  for  electric  utility  services that were entered
34    into between an electric utility and a retail customer  prior
 
                            -4-                LRB9207144JSpc
 1    to  the  effective  date  of  this amendatory Act of 1997 and
 2    filed with the Commission.
 3        "Delivery services" means those services provided by  the
 4    electric   utility  that  are  necessary  in  order  for  the
 5    transmission and distribution systems  to  function  so  that
 6    retail  customers  located  in the electric utility's service
 7    area can receive electric power  and  energy  from  suppliers
 8    other  than  the electric utility, and shall include, without
 9    limitation, standard metering and billing services.
10        "Electric utility" means a public utility, as defined  in
11    Section  3-105  of  this  Act, that has a franchise, license,
12    permit or right to furnish  or  sell  electricity  to  retail
13    customers within a service area.
14        "Mandatory  transition  period" means the period from the
15    effective date of this amendatory Act of 1997 through January
16    1, 2005.
17        "Provider of unbundled  delivery  services"  means  every
18    person,   cooperative,  corporation,  municipal  corporation,
19    company, association, joint  stock  company  or  association,
20    firm,   partnership,   individual,  or  other  entity,  their
21    lessees,  trustees,  or  receivers  appointed  by  any  court
22    whatsoever, that offers to a retail customer for sale, lease,
23    or other value received any metering service other than  that
24    excluded  by  clause  (iv)  of  this  definition or unbundled
25    delivery  services  (other  than  those   delivery   services
26    regulated  by  the Federal Energy Regulatory Commission) that
27    is specified in a  Commission  order  requiring  an  electric
28    utility  to  unbundle  its  delivery  services  under Section
29    16-108  or  16-109,  but  the  term  "provider  of  unbundled
30    delivery services" shall not include (i) an electric  utility
31    (or  any  agent  of  the  electric  utility to the extent the
32    electric  utility  provides  tariffed  services   to   retail
33    customers  through  that  agent) within the utility's service
34    area, (ii) any electric cooperative or  municipal  system  as
 
                            -5-                LRB9207144JSpc
 1    defined  in  Section  17-100  to the extent that the electric
 2    cooperative or municipal system is serving  retail  customers
 3    within  any  area  in  which  it  is  or would be entitled to
 4    provide service under the law in effect immediately prior  to
 5    December  16,  1997, (iii) a public utility that is owned and
 6    operated by any public institution  of  higher  education  of
 7    this  State, or a public utility that is owned by such public
 8    institution of higher education and operated by  any  of  its
 9    lessees  or  operating agents, within any area in which it is
10    or would be entitled to provide  service  under  the  law  in
11    effect  immediately  prior  to  December  16, 1997, or (iv) a
12    provider  of  meter  services  that  installs,  provides,  or
13    maintains equipment on the  premises  of  a  retail  customer
14    under  circumstances in which no entity other than the retail
15    customer  relies  on  the   accuracy,   safety,   or   proper
16    installation and maintenance of the equipment.
17        "Municipal  system"  shall  have the meaning set forth in
18    Section 17-100.
19        "Real-time pricing" means charges for delivered  electric
20    power  and  energy  that  vary  on  an hour-to-hour basis for
21    nonresidential retail customers and that vary on  a  periodic
22    basis during the day for residential retail customers.
23        "Retail  customer"  means  a single entity using electric
24    power or energy at a single premises and that (A) either  (i)
25    is receiving or is eligible to receive tariffed services from
26    an  electric  utility,  or (ii) that is served by a municipal
27    system or electric cooperative within any area in  which  the
28    municipal  system  or  electric  cooperative  is  or would be
29    entitled  to  provide  service  under  the  law   in   effect
30    immediately  prior  to  the effective date of this amendatory
31    Act of 1997, or (B) an entity which on the effective date  of
32    this Act was receiving electric service from a public utility
33    and   (i)   was  engaged  in  the   practice  of  resale  and
34    redistribution of such electricity within a building prior to
 
                            -6-                LRB9207144JSpc
 1    January 2, 1957, or (ii) was providing lighting  services  to
 2    tenants in a multi-occupancy building, but only to the extent
 3    such resale, redistribution or lighting service is authorized
 4    by  the electric utility's tariffs that were on file with the
 5    Commission on the effective date of this Act.
 6        "Service area" means (i) the geographic area within which
 7    an electric utility was lawfully entitled to provide electric
 8    power and energy to retail customers as of the effective date
 9    of this  amendatory  Act  of  1997,  and  includes  (ii)  the
10    location of any retail customer to which the electric utility
11    was  lawfully  providing  electric  utility  services on such
12    effective date.
13        "Small   commercial   retail   customer"   means    those
14    nonresidential   retail  customers  of  an  electric  utility
15    consuming  15,000  kilowatt-hours  or  less  of   electricity
16    annually in its service area.
17        "Tariffed  service"  means  services  provided  to retail
18    customers by an electric utility as defined by its  rates  on
19    file  with  the  Commission  pursuant  to  the  provisions of
20    Article IX of this Act, but  shall  not  include  competitive
21    services.
22        "Transition charge" means a charge expressed in cents per
23    kilowatt-hour  that  is calculated for a customer or class of
24    customers as follows for  each  year  in  which  an  electric
25    utility is entitled to recover transition charges as provided
26    in Section 16-108:
27             (1)  the  amount of revenue that an electric utility
28        would receive from the retail customer or customers if it
29        were serving such customers' electric  power  and  energy
30        requirements  as  a  tariffed service based on (A) all of
31        the customers' actual usage during the 3 years ending  90
32        days prior to the date on which such customers were first
33        eligible   for  delivery  services  pursuant  to  Section
34        16-104, and (B) on  (i)  the  base  rates  in  effect  on
 
                            -7-                LRB9207144JSpc
 1        October  1, 1996 (adjusted for the reductions required by
 2        subsection (b)  of  Section  16-111,  for  any  reduction
 3        resulting  from  a rate decrease under Section 16-101(b),
 4        for any restatement of base  rates  made  in  conjunction
 5        with   an  elimination  of  the  fuel  adjustment  clause
 6        pursuant to subsection (b), (d), or (f) of Section  9-220
 7        and  for  any  removal of decommissioning costs from base
 8        rates  pursuant  to  Section  16-114)  and  any  separate
 9        automatic  rate   adjustment   riders   (other   than   a
10        decommissioning  rate as defined in Section 16-114) under
11        which the customers were  receiving  or,  had  they  been
12        customers,  would have received electric power and energy
13        from the electric utility  during  the  year  immediately
14        preceding  the  date  on  which such customers were first
15        eligible for delivery service pursuant to Section 16-104,
16        or (ii) to the extent  applicable,  any  contract  rates,
17        including   contracts   or   rates  for  consolidated  or
18        aggregated  billing,  under  which  such  customers  were
19        receiving electric power and  energy  from  the  electric
20        utility during such year;
21             (2)  less  the amount of revenue, other than revenue
22        from transition charges and decommissioning  rates,  that
23        the  electric  utility  would  receive  from  such retail
24        customers for delivery services provided by the  electric
25        utility,  assuming  such  customers  were taking delivery
26        services for all of their usage, based  on  the  delivery
27        services  tariffs in effect during the year for which the
28        transition charge is being calculated and  on  the  usage
29        identified in paragraph (1);
30             (3)  less  the  market  value for the electric power
31        and energy that the electric utility would have  used  to
32        supply  all  of such customers' electric power and energy
33        requirements, as a tariffed service, based on  the  usage
34        identified  in  paragraph  (1),  with  such  market value
 
                            -8-                LRB9207144JSpc
 1        determined in accordance with Section 16-112 of this Act;
 2             (4)  less the following amount which represents  the
 3        amount  to  be attributed to new revenue sources and cost
 4        reductions by the electric utility through the end of the
 5        period for which transition costs are recovered  pursuant
 6        to  Section  16-108, referred to in this Article XVI as a
 7        "mitigation factor":
 8                  (A)  for nonresidential  retail  customers,  an
 9             amount  equal  to  the  greater of (i) 0.5 cents per
10             kilowatt-hour during  the  period  October  1,  1999
11             through   December   31,   2004,   0.6   cents   per
12             kilowatt-hour  in  calendar year 2005, and 0.9 cents
13             per kilowatt-hour in calendar year 2006,  multiplied
14             in  each  year  by the usage identified in paragraph
15             (1), or  (ii)  an  amount  equal  to  the  following
16             percentages  of  the amount produced by applying the
17             applicable base  rates  (adjusted  as  described  in
18             subparagraph  (1)(B))  or contract rate to the usage
19             identified in  paragraph  (1):  8%  for  the  period
20             October  1,  1999  through December 31, 2002, 10% in
21             calendar years 2003 and 2004, 11% in  calendar  year
22             2005 and 12% in calendar year 2006; and
23                  (B)  for   residential   retail  customers,  an
24             amount equal to the  following  percentages  of  the
25             amount produced by applying the base rates in effect
26             on   October  1,  1996  (adjusted  as  described  in
27             subparagraph (1)(B))  to  the  usage  identified  in
28             paragraph  (1):  (i)  6%  from  May  1, 2002 through
29             December 31, 2002, (ii) 7% in  calendar  years  2003
30             and  2004,  (iii) 8% in calendar year 2005, and (iv)
31             10% in calendar year 2006;
32             (5)  divided  by  the  usage   of   such   customers
33        identified in paragraph (1),
34    provided  that the transition charge shall never be less than
 
                            -9-                LRB9207144JSpc
 1    zero.
 2        "Unbundled service" means a component or constituent part
 3    of a tariffed service which the electric utility subsequently
 4    offers separately to its customers.
 5    (Source: P.A. 90-561, eff. 12-16-97; 91-50, eff. 6-30-99.)

 6        (220 ILCS 5/16-115C new)
 7        Sec. 16-115C.  Obligations and certification of providers
 8    of unbundled delivery services.
 9        (a)  Any provider of  unbundled  delivery  services  must
10    obtain a certificate of service authority from the Commission
11    in accordance with this Section before providing the services
12    identified  in  the  definition  of  "provider  of  unbundled
13    delivery services" in Section 16-102.
14        (b)  A  provider of unbundled delivery services seeking a
15    certificate  of  service  authority  shall  file   with   the
16    Commission  a  verified  application  containing  information
17    showing  that  the  applicant  meets the requirements of this
18    Section.  The provider of unbundled delivery  services  shall
19    publish  notice  of  its  application  in  the official State
20    newspaper within 10 days following the date  of  its  filing.
21    No later than 45 days after the application is properly filed
22    with  the  Commission,  and  such  notice  is  published, the
23    Commission shall issue its  order  granting  or  denying  the
24    application.
25        (c)  The  Commission  shall  grant  the application for a
26    certificate of service authority if it makes the findings set
27    forth in this subsection based on  the  verified  application
28    and such other information as the applicant may submit:
29             (1)  that   the   applicant   possesses   sufficient
30        technical,   financial,   and  managerial  resources  and
31        abilities to provide the service for  which  it  seeks  a
32        certificate  of  service  authority.   In determining the
33        level of technical, financial, and  managerial  resources
 
                            -10-               LRB9207144JSpc
 1        and  abilities  which the applicant must demonstrate, the
 2        Commission shall consider the characteristics,  including
 3        the  size  and financial sophistication, of the customers
 4        that the applicant seeks to serve;
 5             (2)  that  the  applicant  will  comply   with   all
 6        applicable  federal, State, regional, and industry rules,
 7        policies,  practices,  and  procedures   for   the   use,
 8        operation,  and maintenance of the safety, integrity, and
 9        reliability  of  the  inter-connected  electric  delivery
10        system;
11             (3)  that the applicant will only provide service to
12        retail customers in an electric  utility's  service  area
13        that are taking delivery services under this Act;
14             (4)  that   the  applicant  will  comply  with  such
15        informational,   testing,   accuracy,    and    reporting
16        requirements as the Commission may by rule establish;
17             (5)  that   the   applicant  will  comply  with  the
18        provisions of Section 16-128 of this Act; and
19             (6)  that the applicant will comply with  all  other
20        applicable laws and rules.
21        (d)  The   Commission   shall   have   the  authority  to
22    promulgate rules to carry out the provisions of this Section.

23        (220 ILCS 5/16-115D new)
24        Sec.  16-115D.  Obligations  of  providers  of  unbundled
25    delivery services.
26        (a)  A provider of unbundled delivery services shall:
27             (1)  comply with the requirements imposed on  public
28        utilities  by Sections 8-201 through 8-207, 8-301, 8-302,
29        8-303, 8-305, 8-505, and 8-507 of this Act, to the extent
30        that these Sections  have  application  to  the  services
31        being  offered  by  the  provider  of  unbundled delivery
32        services; and
33             (2)  continue to comply with  the  requirements  for
 
                            -11-               LRB9207144JSpc
 1        certification   stated   in  subsection  (c)  of  Section
 2        16-115C.
 3        (b)  A provider  of  unbundled  delivery  services  shall
 4    obtain verifiable authorization from a customer, in a form or
 5    manner  approved  by the Commission in the manner provided by
 6    Section 2EE of the  Consumer  Fraud  and  Deceptive  Business
 7    Practices  Act,  before the customer is switched from another
 8    provider.

 9        (220 ILCS 5/16-115E new)
10        Sec. 16-115E.  Commission oversight of services  provided
11    by providers of unbundled delivery services.
12        (a)  The Commission shall have jurisdiction in accordance
13    with the provisions of Article X of this Act to entertain and
14    dispose  of  any  complaint against any provider of unbundled
15    delivery services alleging (i) that the provider of unbundled
16    delivery services has violated or is in  nonconformance  with
17    any  applicable provisions of Section 16-115C through Section
18    16-115D; (ii) that a provider of unbundled delivery  services
19    serving  retail customers having maximum demands of less than
20    one megawatt has failed to provide service in accordance with
21    the terms of its contract or contracts with such customer  or
22    customers;  (iii)  that  the  provider  of unbundled delivery
23    services has violated  or  is  in  non-conformance  with  the
24    delivery  services  tariff  of,  or  any  of  its  agreements
25    relating  to  delivery  services  with, the electric utility,
26    municipal system, or electric cooperative providing  delivery
27    services;  or  (iv)  that  the provider of unbundled delivery
28    services  has  violated  or  failed  to   comply   with   the
29    requirements  of  Sections 8-201 through 8-207, 8-301, 8-302,
30    8-303, 8-305, 8-505, or 8-507 of this Act as made  applicable
31    to providers of unbundled delivery services.
32        (b)  The  Commission  shall  have authority, after notice
33    and hearing held on complaint  or  on  the  Commission's  own
 
                            -12-               LRB9207144JSpc
 1    motion:
 2             (1)  to  order  a  provider  of  unbundled  delivery
 3        services  to  cease and desist, or correct, any violation
 4        of or non-conformance  with  the  provisions  of  Section
 5        16-115C or Section 16-115D;
 6             (2)  to impose financial penalties for violations of
 7        or   non-conformances  with  the  provisions  of  Section
 8        16-115C or Section 16-115D, not to exceed (i) $10,000 per
 9        occurrence or (ii) $30,000 per day for  those  violations
10        or  non-conformances  which continue after the Commission
11        issues a cease-and-desist order; and
12             (3)  to  alter,  modify,  revoke,  or  suspend   the
13        certificate   of  service  authority  of  a  provider  of
14        unbundled delivery services for substantial  or  repeated
15        violations  of or non-conformances with the provisions of
16        Section 16-115C or Section 16-115D.

17        (220 ILCS 5/16-116)
18        Sec. 16-116. Commission oversight of  electric  utilities
19    serving  retail  customers  outside  their  service  areas or
20    providing competitive, non-tariffed services.
21        (a)  An electric utility that has a tariff  on  file  for
22    delivery  services  may,  without  regard  to  any  otherwise
23    applicable tariffs on file, provide electric power and energy
24    or  services  as  described in the definition of "provider of
25    unbundled delivery services" in Section 16-102 to one or more
26    retail customers located outside its service area,  but  only
27    to  the  extent  (i) such retail customer (A) is eligible for
28    delivery services under any delivery  services  tariff  filed
29    with  the Commission by the electric utility in whose service
30    area the retail  customer  is  located  and  (B)  has  either
31    elected  to  take  such  delivery  services  or  has  paid or
32    contracted to pay the charges specified  in  Sections  16-108
33    and  16-114,  or  (ii) if such retail customer is served by a
 
                            -13-               LRB9207144JSpc
 1    municipal system or electric  cooperative,  the  customer  is
 2    eligible for delivery services under the terms and conditions
 3    for  such  service  established  by  the  municipal system or
 4    electric cooperative serving that customer.
 5        (b)  An  electric  utility  may  offer  any   competitive
 6    service  to any customer or group of customers without filing
 7    contracts  with  or  seeking  approval  of  the   Commission,
 8    notwithstanding  any  rule  or  regulation that would require
 9    such approval.  The Commission shall not increase or decrease
10    the prices, and may  not  alter  or  add  to  the  terms  and
11    conditions for the utility's competitive services, from those
12    agreed  to  by  the  electric  utility  and  the  customer or
13    customers.  Non-tariffed, competitive services shall  not  be
14    subject  to the provisions of the Electric Supplier Act or to
15    Articles V, VII, VIII or IX of the Act, except to the  extent
16    that  any  provisions of such Articles are made applicable to
17    alternative retail electric suppliers  pursuant  to  Sections
18    16-115 and 16-115A, but shall be subject to the provisions of
19    subsections  (b)  through (g) of Section 16-115A, and Section
20    16-115B to the same extent such provisions are applicable  to
21    the   services   provided   by  alternative  retail  electric
22    suppliers. Non-tariffed, competitive services related to  the
23    provision  of  meter services and unbundled delivery services
24    shall not be  subject  to  the  provisions  of  the  Electric
25    Supplier  Act or to Articles V, VII, VIII, or IX of this Act,
26    except to the extent that any provisions of such Articles are
27    made applicable to providers of unbundled  delivery  services
28    pursuant  to  Sections  16-115C  and  16-115D,  but  shall be
29    subject to the provisions  of  Section  16-115D  and  Section
30    16-115E.
31    (Source: P.A. 90-561, eff. 12-16-97.)

32        (220 ILCS 5/16-124)
33        Sec.   16-124.   Metering   for   residential  and  small
 
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 1    commercial retail customers. An electric  utility  shall  not
 2    require  a residential or small commercial retail customer to
 3    take  additional  metering  or  metering  capability   as   a
 4    condition  of  taking delivery services unless the Commission
 5    finds, after notice and hearing, that additional metering  or
 6    metering   capability   is   required   to  meet  reliability
 7    requirements.  Alternative retail electric suppliers  serving
 8    such  customers  may  provide  such  additional  metering  or
 9    metering  capability  at  their  own  expense  or  for  value
10    received  if  the  alternative  retail  electric supplier has
11    obtained a certificate of  service  authority  under  Section
12    16-115C,   or  take  such  additional  metering  or  metering
13    capability as a tariffed service from the  utility  in  whose
14    service  area  such  customers  take  service  as  a tariffed
15    service, or take such additional metering service or metering
16    capability from an electric utility other than the utility in
17    whose service area such customers take  service,  or  from  a
18    provider  of  unbundled  delivery  services.  Any  additional
19    metering requirements shall be imposed in a nondiscriminatory
20    manner.   Nothing  in  this  subsection shall be construed to
21    prevent the normal maintenance,  replacement  or  upgrade  of
22    meters as required to comply with Commission rules.
23    (Source: P.A. 90-561, eff. 12-16-97.)

24        (220 ILCS 5/16-128)
25        Sec.  16-128.  Provisions  related  to  utility employees
26    during the mandatory transition period.
27        (a)  The General Assembly finds:
28             (1)  The reliability  and  safety  of  the  electric
29        system  has  depended  on  a  workforce  of  skilled  and
30        dedicated employees, equipped with technical training and
31        experience.
32             (2)  The integrity and reliability of the system has
33        also  depended  on the industry's commitment to invest in
 
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 1        regular inspection and maintenance, to assure that it can
 2        withstand the demands of heavy service  requirements  and
 3        emergency situations.
 4             (3)  It  is  in  the State's interest to protect the
 5        interests  of  utility  employees  who   have   dedicated
 6        themselves  to  assuring reliable service to the citizens
 7        of this State, and who might  otherwise  be  economically
 8        displaced in a restructured industry.
 9        The  General  Assembly further finds that it is necessary
10    to  assure  that  employees  operating  in  the   deregulated
11    industry have the requisite skills, knowledge, and competence
12    to provide reliable and safe electrical service and therefore
13    that  alternative retail electric suppliers shall be required
14    to demonstrate the competence of their employees to  work  in
15    the industry.
16        The   knowledge,  skill,  and  competence  levels  to  be
17    demonstrated  shall  be  consistent  with   those   generally
18    required  of  or by the electric utilities in this State with
19    respect to their employees.
20        Adequate demonstration of requisite knowledge, skill  and
21    competence  shall  include  such factors as completion by the
22    employee   of   an   accredited   or   otherwise   recognized
23    apprenticeship program for the  particular  craft,  trade  or
24    skill,  or  specified  years  of  employment with an electric
25    utility performing a particular work function.
26        To  implement  this  requirement,  the   Commission,   in
27    determining   that  an  applicant  meets  the  standards  for
28    certification as an alternative retail electric  supplier  or
29    provider  of  unbundled  delivery services, shall require the
30    applicant to demonstrate (i) that the applicant  is  licensed
31    to  do  business,  and  bonded, in the State of Illinois; and
32    (ii) that  the  employees  of  the  applicant  that  will  be
33    installing,    operating,    and    maintaining   generation,
34    transmission, or distribution, or metering facilities  within
 
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 1    this  State,  or  any  entity  with  which  the applicant has
 2    contracted to perform those functions within this State, have
 3    the requisite knowledge, skills, and  competence  to  perform
 4    those  functions in a safe and responsible manner in order to
 5    provide safe and reliable service,  in  accordance  with  the
 6    criteria stated above.
 7        (b)  The  General  Assembly finds, based on experience in
 8    other industries that  have  undergone  similar  transitions,
 9    that   the  introduction  of  competition  into  the  State's
10    electric utility industry may result in workforce  reductions
11    by  electric utilities which may adversely affect persons who
12    have been employed by  this  State's  electric  utilities  in
13    functions  important  to  the public convenience and welfare.
14    The General  Assembly  further  finds  that  the  impacts  on
15    employees  and  their communities of any necessary reductions
16    in  the   utility   workforce   directly   caused   by   this
17    restructuring  of the electric industry shall be mitigated to
18    the extent  practicable  through  such  means  as  offers  of
19    voluntary    severance,    retraining,    early   retirement,
20    outplacement and related benefits. Therefore, before any such
21    reduction in the workforce during the transition  period,  an
22    electric  utility  shall  present  to  its employees or their
23    representatives a  workforce  reduction  plan  outlining  the
24    means  by  which the electric utility intends to mitigate the
25    impact of such workforce reduction on its employees.
26        (c)  In the event of  a  sale,  purchase,  or  any  other
27    transfer  of ownership during the mandatory transition period
28    of one or more Illinois divisions or business  units,  and/or
29    generating  stations  or  generating  units,  of  an electric
30    utility, the electric utility's  contract  and/or  agreements
31    with  the  acquiring entity or persons shall require that the
32    entity or persons hire a sufficient number of non-supervisory
33    employees to operate and maintain the  station,  division  or
34    unit   by  initially  making  offers  of  employment  to  the
 
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 1    non-supervisory workforce of the electric utility's division,
 2    business unit, generating station and/or generating  unit  at
 3    no  less  than  the  wage rates, and substantially equivalent
 4    fringe benefits and terms and conditions of  employment  that
 5    are  in  effect  at the time of transfer of ownership of said
 6    division,   business   unit,   generating   station,   and/or
 7    generating units;  and  said  wage  rates  and  substantially
 8    equivalent  fringe  benefits  and  terms  and  conditions  of
 9    employment  shall  continue  for  at least 30 months from the
10    time  of  said  transfer  of  ownership  unless  the  parties
11    mutually  agree  to  different  terms   and   conditions   of
12    employment  within  that  30-month period.  The utility shall
13    offer a transition  plan  to  those  employees  who  are  not
14    offered  jobs by the acquiring entity because that entity has
15    a need for fewer workers.  If there is litigation  concerning
16    the  sale,  or  other  transfer  of ownership of the electric
17    utility's divisions, business units, generating  station,  or
18    generating  units, the 30-month period will begin on the date
19    the acquiring entity or persons take control or management of
20    the  divisions,  business  units,   generating   station   or
21    generating units of the electric utility.
22        (d)  If   a   utility   transfers  ownership  during  the
23    mandatory  transition  period  of  one   or   more   Illinois
24    divisions,  business units, generating stations or generating
25    units of an electric utility to a majority-owned  subsidiary,
26    that  subsidiary  shall  continue  to  employ  the  utility's
27    employees  who were employed by the utility at such division,
28    business unit or  generating  station  at  the  time  of  the
29    transfer under the same terms and conditions of employment as
30    those  employees  enjoyed  at  the  time of the transfer.  If
31    ownership  of  the  subsidiary  is   subsequently   sold   or
32    transferred  to  a  third party during the transition period,
33    the transition provisions outlined in  subsection  (c)  shall
34    apply.
 
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 1        (e)  The  plant transfer provisions set forth above shall
 2    not apply to any generating station which was the subject  of
 3    a sales agreement entered into before January 1, 1997.
 4    (Source: P.A. 90-561, eff. 12-16-97.)

 5        Section  99.  Effective date.  This Act takes effect upon
 6    becoming law.

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